ACHIEVEMENTS’09

DQ UAR TER Tog : olok 720 017 Mol , Bi do 1 shke 4 k, K /8, P yrgy +99 HONE zsta 6 31 n 2 61 249 MO 3 BIL +99 E 655 551 012 02 HEA

Central Asian Free Market Institute

December 2009

Issue #1

www.freemarket.kg

SUCCESSFUL LAUNCH: GOOD OUTREACH IN A SHORT PERIOD
MORE THEN 1066 PEOPLE TOOK PART IN OUR PROGRAMS IN 2009
FREE MARKET SCHOOL

Promoting ideas of freedom and responsibility in Central Asia

Former chief economic adviser to the President of Russia shared his ideas on economic analysis.
Continued on page 4 Participants of English Liberty Camp, Oru-Say, September 2009

ENGLISH LIBERTY CAMP

Educating on the benefits of individual freedom to forty young leaders of Kyrgyzstan in English language.
Continued on page 5

NIGHT OF IDEAS - IDEANIGHT

Poster of IdeaNight, October 2 2009

Andrei Illarionov at FMS

168 took part, although our high expectations were of 100, in a new meeting format.
Continued on page 7

Fake Medicine’s Eradication is Stymied by Restrictive Trade Laws...
Continued on page 9

NON CONFERENCE – RECAMP

150 people participated in a non-traditional conference on free market economics and ways of developing Central Asia
Continued on page 6

Berlin Wall Fell in Central Europe but it is Emerging in Central Asia
Continued on page 12

Central Asian Free Market Institute, 14/8 Togolok Moldo, 720017, Bishkek, Kyrgyzstan | office@freemarket.kg

ACHIEVEMENTS ’09!

PAGE

2

Free Market School, October 4-9, 2009

ReCamp, October 4, 2009

Central Asian Free Market Institute is an independent analytical center, with a mission to expand individual freedom and responsibility in Central Asia. We strive to strengthen the foundation of market economy, sanctity of private of private property and the rule of law.
THE INSTITUTE ACHIEVES ITS STRATEGIC GOALS BY: ‣ Actively working with experts to study economic problems in the region to be used for making holistic solutions to the country’s legislators ‣ To carry out educational events for students, entrepreneurs, politicians and the public at large on basic principles of freedom and responsibility CAFMI STRATEGY  ‣ To form coalitions, of business people, experts or organizations, for the detailed study of concrete problems. ‣ To disseminate the research findings among CAFMI’s target groups ‣ To build relationships with leading thinktanks in Europe, Asia and North America ‣ To educate young leaders, who will help us disseminate the message of freedom and apply it GOALS OF CAFMI ‣ To disseminate and advocate for individual freedom ‣ To disseminate and promote the ideas of private property and free markets ‣ To popularize the idea of limited government, in economic and social terms, and show the practical benefits of it through our research ‣ Professional preparation and support for individuals and organizations who are supporters of individual and economic freedom

Major Donors: ‣ Friedrich Naumann Foundation ‣ Atlas Economic Research Foundation ‣ Soros-Kyrgyzstan Foundation ‣ International Republican Institute ‣ OSI Assistance Foundation for Tajikistan Date of Registration: ‣ April 6, 2009 Headquarters: ‣ Bishkek, Kyrgyzstan Target Audience: ‣ Researchers and journalists ‣ Businessmen and entrepreneurs ‣ Policymakers ‣ Young professionals

Central Asian Free Market Institute, 14/8 Togolok Moldo, 720017, Bishkek, Kyrgyzstan | office@freemarket.kg

ДОСТИЖЕНИЯ ’09!

СТР.

3

English Liberty Camp, September 25-30, 2009

ReCamp agenda

Central Asian Free Market Institute is headquartered in Bishkek, Kyrgyzstan. Its staff is made up of two people. Interns and help is procured as per needs of projects and work load.
Contact people: ‣ Mirsulzhan Namzaliev, Executive Director, mirsulzhan@freemarket.kg, +996555101202 ‣ Gulmira Aidaralieva, Program Manager, gulmira@freemarket.kg, +996778171088 ‣ Kamila Murzaeva, Project Coordinator, kamila@freemarket.kg, +996555415253 ‣ Sabina Tohmatova (Reingold), PR- Specialist, sabina@freemarket.kg, +996550207769 ‣ Asel Abykeeva, Administrative Coordinator, aselya@freemarket.kg, +996777101044 Bank Details: CJSC Demir Kyrgyz International Bank SWIFT: DEMIKG22 BIC: 118005 For KGS: 1180000018741115 For USD: 1180000018741216 For Euro: 1180000018741317 Bank Address Chui 245 str., Bishkek 720 001, Kyrgyzstan: Bank Tel: +996 312 610610, 610 445

‣ Founder: Mirsulzhan Namazaliev ‣ Registration Number: 105147-3301-ОФ ‣ TIN: 0064200910052 ‣ OKPO Code: 26604400 ‣ Registered at STI at: 1st May STI on 17.04.2009 y. Code: 004 ‣ Legal address: 163/10 Moskovskaya, Bishkek, Kyrgyzstan ‣ De-facto address: 14/8 Togolok Moldo str., Bishkek, 720017, Kyrgyzstan ‣ Work phone: +996312612493 ‣ Website: www.freemarket.kg

Central Asian Central Asian Free Market Institute was registered in Bishkek branch of the Ministry of Justice of Kyrgyz Republic, as a public foundation.
Central Asia lies along the legendary Silk Road and has the potential to regain its stature as one of the centers of global trade. CAFMI researches for policy solutions that would promote greater regional and world exchange in goods. We believe that people have an inalienable to trade. More people trading translates into increased prosperity with a greater stake in peace.

Central Asian Free Market Institute, 14/8 Togolok Moldo, 720017, Bishkek, Kyrgyzstan | office@freemarket.kg

ACHIEVEMENTS ’09!

PAGE

4

Reaching peaks of Central Asia

FREE MARKET SCHOOL
The School took place October 4-9, 2009. The event had a select group of 43 participants from Central Asia. World renowned economic experts from around the world came to instruct, including Tom Palmer, Sasha Tamm, Andrei Illarionov and Vadim Novikov.
Free Market School aims to create a tight network of free-market advocates among young adults of Central Asia, who will help one another in promoting freedom. Participants had extensive discussion about private property, free trade, open borders, taxation and individual freedom, both among themselves and with the experts.

Andrei Illarionov is explaining the concept of limited government

Dr. Tom Palmer, Atlas Institute, and Anna Krasinskaya, InLiberty.Ru editor

Sponsors of the project: ‣ Friedrich Naumann Foundation ‣ Atlas Economic Research Foundation ‣ OSI Assistance Foundation for Tajikistan

Date and place: October 4-9, 2009 Fountain Resort-Issyk Kul Participants: 43 people from Kyrgyzstan, Kazakhstan and Tajikistan

Main Results: - Tajikistan Free Market Center is launched in Dushanbe - National Debate Cup was held in Kazakhstan on topics proposed at school

ACHIEVEMENTS ’09!

PAGE

5

Learn freedom, learn english

ENGLISH LIBERTY CAMP
Fall camp was instructed in English language and was co-organized with the Language of Liberty Institute (USA). Participants had a chance to study freedom from different angles- modern economy, philosophy, history and law, while they practiced their English skills.
The camp took place at the tourist center, Oru Say, from September 25 to 30, 2009. The camp helped young active thinkers to understand principles of free-market economy, its benefits to Kyrgyzstan and how to promote the ideas in Kyrgyzstan. Experts who gave presentations were Glenn Cripe (USA), Andy Eyschen (Malaysia), Robin Coerner (U.K.), David Huzelman (U.S.A. ), Pedro Ulteras (Mexico), and Uluk Kydyrbaev and Seyitbek Usmanov from Kyrgyzstan.

Andy Eyschen – Consultant to governments of Malaysia and UAE

17% 83%
More then 80% of participants would have paid to attend, according to postcamp surveys
Project Sponsors: ‣ Friedrich Naumann Foundation ‣ Soros-Kyrgyzstan Foundation Date and place: September 25-30, 2009, Oru-Say, Bishkek Participants: 40 people Successes: Free market clubs opened in Kyrgyzstan’s top universities (AUCA, KRSU)

ACHIEVEMENTS ’09!

PAGE

6

RECAMP - NON-CONFERENCE
The event drew experts in the field of economics from Central Asian countries and also from Europe and the U.S., who gave presentations in the field of economic freedom and its application to the host region.
ReCamp is called a [non]-conference because its program was not planned ahead. It’s general theme was ‘Market Economics and Social Development in Central Asia.’ Participants gave presentations on work they have done in this field and took part in discussions. The program of the conference was not planned ahead, but improvised on the spot. Speakers set a time and location for their presentation. This format gave the event unusual flexibility and vitality that drew so many people to it. Participants attended events of their liking. Of particular interest was presentation of Sasha Tamm, who explained the dynamics of the resounding success of the liberal party in Germany’s recent federal elections. Following the presentation of Tom Palmer, Vice President for International Relations at the Atlas Foundation, in the common session there were a total of thirty different presentations.

Dr. Tom Palmer (Atlas Foundation, Cato Institute,USA)

Emil Umetaliev, CEO of Kyrgyz Concept, a leading tourist company, on economic reforms in Kyrgyzstan

155 attendees of ReCamp

Sasha Tamm, Director of the Moscow bureau of the Friedrich Naumann Foundation

Sponsors and partners of the project: ‣ Friedrich Naumann Foundation ‣ Social Research Center AUCA ‣ Youth Integration Service

Date and place: October 4, 2009 AUCA Participants: 155 people from Kyrgyzstan, Kazakhstan and Tajikistan

ACHIEVEMENTS ’09!

PAGE

7

IDEANIGHT - INFORMAL MEETING
The aim of the event is to create a platform for a rapid exchange of ideas on freedom, to meet critical thinkers and find allies and partners for realizing projects that are aimed to promote economic, individual and political freedom.
IdeaNight saw robust discussions of topics in freedom and economic and social progress. The audience were mostly young activists, business and NGO representatives. A particularly interesting presentation was given on the topic of ‘ propiska’, a Soviet relic intended to limit peoples movement and still exists in Kyrgyzstan today.

To enable the rapid exchange of ideas succinct and concise presentations were delivered. Presentations were limited to 10 slides and five minutes, and five minutes was given for Q&A. Our expectation of participants was about 100 people, however, we counted an astounding 168 people. 9 presentations were delivered and themes of the presentations can be seen in the graphs below.

Project sponsors: ‣ International Republican Institute ‣ Friedrich Naumann Foundation

Date and place: October 2, 2009, Sweet 60s cafe Participants: 168 people from Kyrgyzstan

ACHIEVEMENTS ’09!

PAGE

8

DONATE | SUPPORT

FINANCING STUDENTS EDUCATION YOU INVEST IN THE FUTURE OF FREEDOM AND THE REGION

IDEAS HAVE CONSEQUENCES
We are convinced that ideas have consequences. Ideas on freedom and responsibility are an alternative that we want people to understand and believe in.

INVEST IN YOUNG PROFESSIONALS
They are an ideal group to work with because young professional is a highly motivated person with a proven track record who can promote free market ideas among his peers and the population at large.

WHY WORK WITH US
We treat our beneficiaries with same care and respect that companies treat their clients. We are transparent, flexible, ambitious and young. We value measurable results.

If you wish to become Institute’s donor or sponsor students to attend English Liberty Camp or Free Market School please contact Institute’s Director, Mirsulzhan Namazaliev: Office: +996 312 612493, Mobile: +996 555 101202, Email: mirsulzhan@freemarket.kg

ACHIEVEMENTS ’09!

PAGE

9

COMBATING THE SPREAD OF FAKE DRUGS IN KYRGYZSTAN
The Central Asian Free Market Institute co-sponsored a recent research paper authored by Julian Harris, Philip Stevens and Julian Morris of the London based International Policy Network. The paper titled, Keeping it Real: Combating the Spread of Fake Drugs in Poor Countries, highlights the effect of fake drugs, which are having devastating effects on peoples of developing countries, including Kyrgyzstan. Fake drugs are both drugs that are intentionally manufactured to mislead the consumer of their identity and those that have deteriorated in quality due to mishandling or aging.
The World Health Organization estimates that counterfeit drugs constitute 10% of the global drug market and 25% in less developed countries. The UN estimates the figure to be 10% in the CIS. Studies have more found that among Kyrgyzstan’s biggest economic fake drugs make up a large portion of the market: ‣ 35% in Uzbekistan ‣ 30% in Kazakhstan ‣ 10% in Russia A fake medicine can cause at least one and even three of these effects. The most common effect is the failure to provide a successful treatment. This can occur when a fake contains insufficient quantity of the necessary ingredient or if the delivery mechanism (the other ingredients that enables the drug to be taken up by the body) does not function properly. The paper notes that a particularly pernicious instance of a failure to treat occurs as a result of “trick” fakes. These drugs are entirely ineffective against a disease but contain ingredients which only negate the symptoms, while the actual cause survives.

40 30 20 10 0 Russia Kazakhstan Uzbekistan
There is lack of hard data as to the share of the fake drugs on Kyrgyzstan’s drug market due to lack of such research but a regional comparative analysis suggests it is in the range between 20% and 30%. Furthermore, according to Vladimir Pluzhnik, Director of the Center for Protecting Consumer’s Rights “Vigens”, the number of complaints about fake drugs is increasing by the year. According to WHO most faked medicines in developing countries were antibiotics (28%) and hormones and steroids (14%). Rustam Kurmanov, director of the pharmaceutical supply department at Kyrgyzstan’s Ministry of Health, concurs that most prevalent fakes are antibiotics. Yet, the authors of the research paper admit that most cases of counterfeit drugs are not known to governments since there is no systematic mechanism for discovering and disclosing them. Danger Fake drugs can cause health damage, even death, due to: ‣ poisoning, ‣ failure to cure disease and ‣ provocation of drug resistance.

In some cases fake drugs cause direct harm. Fortunately, no such cases were registered in Kyrgyzstan yet, but a batch of counterfeit was exported to the US and killed 62 americans in 2008. Another possible harm from fakes is the presence of insufficient active ingredients to eradicate the microorganisms. The surviving microorganisms breed, resulting in drug-resistant strains. Hence, the real medicine becomes less effective at treating the disease. This has been a particularly severe problem in treating malaria, for in the 1980s and 1990s antimalarial drugs such as chloroquine were used inappropriately so that parasites became resistant to them. Causes The causes for prevalence of fake medicines are numerous. Some suggest that because fakes are more widespread in less developed countries; consumers in these countries are less willing to pay for quality medicine. While the first part of the claim is true the second part is not. Claiming that poor people are are unwilling to pay for quality medicine implies that the poor are unable to make rational decisions; hence, are willing to consume harmful medicine, which is a clear logical fallacy. Rather the prevalence of fake medicines in poor countries is best explained by: ‣ defective legal systems and ‣ government distortions of the pharmaceutical market These two causes create an environment in which fake drugs thrive. Buying cars many people often simply go by the brand, associating Toyota to longevity, Mercedes to quality and Lada’s to catastrophe. Manufacturers go to great pains to retain their stellare reputation as when Coca Cola recalled 2.37 million bottles in 2006 in Japan. continued on next page...

ACHIEVEMENTS ’09!

PAGE

10

COMBATING THE SPREAD OF FAKE DRUGS IN KYRGYZSTAN
Similarly, it is in the interest of drug makers to have trademark that have a reputation for quality and effectiveness so that they maintain strong sales and large profits. The country’s current approach to increase spending on detection and seizure of counterfeit drugs is likely to have positive effect of stopping their reach to victims. On the other hand, this approach’s long term effect on solving the problem is doubtful for it fails to address the root cause: trade in counterfeit medicines. Another common method used to fight fake drugs has been to introduce heftier criminal punishments for people involved in the trade of fake medicines. In June 2008, Peru increased the stakes for anyone found guilty of selling, storing, packaging or producing fake medicines by making the maximum penalty 10 years. At the extreme, China and India introduced the death penalty for severe offenses in fake drugs, and recently China executed the former head of the Food and Drug Regulatory Agency. The papers authors, Harris, Stevens and Morris are convinced that while these "measures suggest powerful signals to those involved in Unfortunately; in many developing countries like Kyrgyzstan it is difficult to enforce trademarks. Therefore, the paper finds, “where trademarks cannot be enforced, cheaply produced poor quality copies will typically crowd out good quality drugs” simply because they are cheaper and it is hard to distinguish quality from fake. The weakness of trademark protection means that producers of high quality medicines are unable to protect their brands, which might even deter them from entering the market altogether, therefore, leaving consumers no choice fakes. The fundamental problem is that as long as consumers lack reliable The other legal failure allowing the existence of fake drugs is the weakness in civil law. Civil law protects consumers against defective goods. It enables the consumer (or their relative) to obtain compensation from the manufacture or supplier of a harmful product. This discourages the manufacturer or supplier from producing and selling fakes. However; in Kyrgyzstan civil law is poorly defined or inadequate to be effective. Vladimir Pluzhnik concedes that although it is possible to take to court the pharmacy that sold the fake drug, the legal hurdles are enormous and benefits minimal; therefore, few actually do. Actually, no such cases have been registered. Solution Kyrgyzstan’s government has adopted policies to tackle the problem of fake medicines. On April 27, 2009, Prime Minister Igor Chudinov signed legislation ratifying Kyrgyzstan’s fight against fake drugs, as part of the Commonwealth of Independent States agreement.The Ministry of Health and the State Customs Committee are responsible for the implementation of the law. continued on next page... The simple measures undertaken by private initiative already prevail in Kyrgyzstan: ‣ Oddly shaped pill shapes ‣ Tamper-evident packaging ‣ Holographic images However; even these challenges have been overcome by counterfeiters. Current private efforts focus focus on more complex systems that are believed to be sufficiently complex to render counterfeit activities uneconomical. means of ensuring the identity (brand) of the drugs they are purchasing the problem of fake drugs remains. The fundamental problem is in the inability of consumers to identify a drugs identity. Harris, Stevens and Morris recommend measures by the private sector to prevent counterfeiting as these seem to be most effective in curbing trade in fake drugs. trading and delivering fake drugs their actual effect may be less effective and…even be counterproductive.” Stronger criminal penalties will likely drive activities further into the hands of organized criminal cells. They will also likely result in increased corruption, as criminal cells seek to infiltrate law-enforcement agencies. This was the case in 1930s with the start of Prohibition in the US and the USSR in 1980s and is the reality in many developing countries like Kyrgyzstan and Mexico that have outlawed drugs.

ACHIEVEMENTS ’09!

PAGE

11

the beginning is at the page 9-10

COMBATING THE SPREAD OF FAKE DRUGS IN KYRGYZSTAN
Conclusion The fight against fake medicines has the advantage that many criminals involved are unlikely to have a particular commitment to this activity. At present it is simply an easy and convenient way to make money. By addressing the root causes that enable such profitable opportunities, their incentives can be diminished, thereby reclaiming the market for high quality medicines. This paper suggests that the supply of fake drugs could  considerably reduced by: ‣ Strengthening local institutions, in particular the rule of law ‣ Governments intervening less in the pharmaceutical market ‣ Better use of technologies for identity preservation. Governments have a role to play beyond improving the rule of law. Many government interventions in the pharmaceutical market have restricted supplies of quality medicines, driving up prices and simply leading to gaps in the market. These have then been exploited by purveyors of fake medicines. Governments could substantially reduce these problems by removing impediments to the supply of quality medicines, such as taxes, tariffs, price controls and arbitrary regulations. Central Asian Free Market Institute, September 2009 be

A particularly interesting solution is the use of SMSs. Mobile phones are now sufficiently widespread in Kyrgyzstan, about 60% penetration 2008, that access can be considered near-universal. SMSs could be used to check the authenticity of medicine. Each drug is given a unique identifying code in the form of a simple series of numbers, which is printed on the pack and concealed. When the pack is bought, the purchaser scratches off the concealing panel to reveal the code and sends the code by SMS to a central registry, which contains a copy of each code made for the medicine. If the code is unique and matches the number in the registry then the purchaser will receive a message informing them that the medicine is unique. If the code is not in the system or is not unique, then they will be told than the medicine is likely counterfeit. Such SMS systems have been developed in Ghana, India and USA, and are currently being offered across Asia and Africa. Kyrgyzstan’s government took laudable steps in 2008 for scrapping VAT on imported medicine. This causes the price differential between quality medicines and fakes to diminish and removes opportunities for fake medicines who don’t bother to pay VAT anyway. Secondary benefit of minimizing costs of quality drugs is that such tariffs as VAT and import duties removes extra layers of slow- moving customs bureaucracy. This gives customs officials opportunities to solicit bribes to decide which drugs are help up and which are fast tracked- “a situation which favors importers willing to behave illegally,” believe the papers authors.

Please help our research team grow: ‣ Research for us is an original product analytical report that we wish policy makers to read and believe in ‣ Our research is available to all ‣ Our main goal is to raise the freemarket conscience of the society through media and our events ‣ Strategic areas for our research are: free trade, taxation, private property and individual freedom.
Support us: www.freemarket.kg/support

ACHIEVEMENTS ’09!

PAGE

12

Editor’s note: Twenty years ago the Berlin Wall fell, but long after its physical form was broken down, its spirit persists in Central Asia.  Mirsulzhan highlights the continuities between the policies of today and those that led to the Wall’s collapse and shows how it is not only state control that diminishes the region’s potential, but the lingering Soviet mentality behind it.
Twenty years ago the Berlin Wall tumbled. As the symbol of the Iron Curtain that had separated an entire continent, the end of the Wall is often seen as something distinctly European. But the Berlin Wall’s history is multifaceted and extends beyond Europe to encompass the entire former Soviet Union.  In particular, it bears lessons for today’s Central Asian republics, all of whom, in one way or another, are still continuing the very policies that led to its destruction. A powerful state apparatus; the maximum limit on economic and political freedoms of citizens; violence, threats, and merciless punishment reigned in the territory of so-called German Democratic Republic. There was resistance, of course — the now-famous graffiti was spray painted on the Western side of the wall while tunnels were dug underneath it, ranging in length from 30 to 200 meters.  Yet, only about 300 people ever managed to escape to the West, and many died in the attempt. So, I think the BBC’s Brian Hanrahan speaks for all of us in the journalism community when, reflecting on the night the Wall fell, he writes, “For me it was that rare occasion when a story was unqualified good news.  After years watching the way communism was practiced, I felt no need to mourn its collapse. Whatever came next had to be better”. Yet, when we look at the everyday realities of our lives here in Central Asia, not to mention North Korea or Cuba, it’s obvious that even if the Berlin Wall physically fell, it remains spiritually as strong as ever.  Here are three examples: ‣ Turkmenistan banned students from attending the American University of Central Asia in Bishkek.  treason and threats of punishment. ‣ Uzbekistan has started erecting a concrete wall along the border with Kyrgyzstan. According to Johns Hopkins University’s Central AsiaCaucasus Institute, the wall will be five- to seven-meter tall, replete with a trench.  The decision to build the wall was done unilaterally by the Uzbek government under the pretext of combating extremism. According to neweurasia, attempts by the students to find out why were met with accusations of out the internet for the last five years. 

CENTRAL ASIA, TEAR DOWN THE WALL
‣ Meanwhile, Uzbekistan has been erecting a cybernetic wall to keep Although the cyber-wall is ostensibly to protect the morals of the Uzbek population, according to Ferghana.ru, in reality the target of prohibition has not been porn websites but mostly independent political and opposition mass media. ‣ A similar cybernetic wall is being erected in Kazakhstan with legislation of new internet regulations.  According to neweurasia, among other problematic things, the new regulations do not differentiate between readers who leave comments on blog posts and the original authors themselves.  This opens the door to direct control over the Kazakh blogosphere by authorities.

Several countries throughout the world have managed to minimize governmental paternalism, most notably the United States and Europe.  Their citizens are economically, politically, and mentally free.  It’s no surprise that they score first again and again in global rankings for productivity, creativity, and the sciences. In contrast, too often it seems that the populations of Central Asia continue to lay about, waiting for a Stalin or Putin to lift them from their morass.  Their inertia testifies to a belief that prosperity and freedom must be things that happen to a society, not things to be worked toward. The Berlin Wall of the mind is seductive: it promises security and certainty, but in exchange for real fulfillment.  The peoples of Central Asia must resist the temptation.  We must reject the myth that government control brings more benefits than the private initiatives of free men and women.  The future can be ours — if only we tear down that wall. Mirsulzhan Namazaliev, CAFMI’s director, at neweurasia.net

ACHIEVEMENTS ’09!

PAGE

13

FINANCIAL MANAGEMENT
Quality indicators: ‣ Diversified funding sources ‣ Financial stability at minimal risk ‣ Transparent budget for donors, partners and staff of CAFMI ‣ To optimize spending and use donor funding most wisely Financial Management by: ‣ Mirsulzhan Namazaliev (signatory) ‣ Gulmira Aidaralieva (cashier) ‣ Asel Abykeeva (accountant) We understand that financial management is based on raising funds, tracking the spending, and ensuring that Institute’s aims and projects are achieved at minimal cost and maximum effect. The Central Asian Free Market Institute began operation in May 2009. Within the eight months the Institute has succeeded in diversifying its funding sources and earning the trust of its donors. CAFMI’s chief donors are located in Germany, USA and local offices of international organizations, such as the Soros Foundation. Currently, we are working at attracting resources from private companies that have vested interest in the promotion of liberal ideas in Kyrgyzstan. Our donor’s funds are sign of support in our mission to promote free-market ideas in Central Asia. It is a desire of our donor organizations, businesses and tax payers that their money helps in the improvement of society. Because we are servants of our donors and they are the community that we serve CAFMI strives for absolute transparency in managing our resources.

Monitoring the quality financial management is achieved by tracking CAFMI’s quality indicators.

Sources of funding for 2009
Atlas Foundation Soros Kyrgyzstan IRI Kyrgyzstan Friedrich Naumann OSI Soros Tajikistan

16.5%

2.5%
1.2%

34.8% 44.9%

If we could find funding or volunteers to conduct a financial audit of the Institute, we would be extremely glad.

ACHIEVEMENTS ’09!

PAGE

14

EVENT MANAGEMENT
Events: ‣ English Liberty Camp ‣ Free Market School ‣ IdeaNight – Informal youth forum ‣ ReCamp – [Non]conference on economic reforms on economic and social development in Kyrgyzstan ‣ Lectures on ‘wheels’ from leading international economic experts for students and young professionals ‣ Discussion seminars ‣ Liberty Nights ‣ Events with our local partners CAFMI Advantage: ‣ Pursuit for practical results ‣ Desire for quality and professionalism in everything we do Partners: ‣ Social Research Center at AUCA ‣ Youth Integration Service ‣ Club of Intellectual Games ‣ Club of Liberal Youth Furthermore, Andrei Illarionov’s speech on economic freedom in Russia and in general received coverage from local media and drew more than 140 people to hear him. We attract alumni of our events to take part in research. Also, we hold events where people

Education and discussion events have strategic value for CAFMI because we strive to build a network of youth who would go on to promote free market principles in Central Asia
Beside Free Market School, English Liberty Camp, ReCamp and IdeaNight, we held a string of discussion seminars, reading nights, screening of documentary movies on economics as well as trainings on professional development for CAFMI staff and our volunteers. can present their ideas and critical feedback and possibly find supporters.

Education and research – chief pillars of the Institute. In 2009, 1,066 people from Central Asia took direct part in the events of the Institute. In 2010 we are working on doubling the number of participants to 3,000

ACHIEVEMENTS ’09!

PAGE

15

HR - MANAGEMENT
Wisely managing human resources, in particularly our interns, is of highest importance because they ensure the quality organization of our events and the operational support to the research teams.
CAFMI Team ‣ 2 staff ‣ 4 interns Number of volunteers at peak: ‣ 45 people Payment System: ‣ Payment per successful completion of an event Plans: ‣ Full-time accountants ‣ Full-time project coordinator ‣ We are in the process of implementing a corporate code for effectively branding the Institute. Among responsibilities of the Institute’s director are: promotion of the Institute, event oversight, fundraising and overall responsibility for the Institute’s success. Our team’s spheres of work are: program management, accounting, PR-Coordination, project coordination and a research assistant. We are planning on further using volunteer resources to save on our donors funds, whenever it is feasible. The Institute’s staff and volunteers hold responsibility for specific projects, which motivates responsibility and success. Many people help us on a volunteer basis because they support our mission and without them many of our events could not have been possible. Understanding that our Institute has 2 fulltime staff and four volunteers, we developed a program for effectively managing our human resources. When we organized major events like ReCamp and IdeaNight, we sought additional volunteers through our partner organizations to help us in moderating, registering, navigating and providing technical help.

Number of external organizers of the largest three events

Organizations that helped us in finding volunteers for our events were our partner organizations: Youth Integration Service and Club of Intellectual Games.

‣ACHIEVEMENTS ’09!

PAGE

16

PR - MANAGEMENT
PR Team: ‣ Sabina Reingold ‣ Asel Abykeeva CAFMI on internet: ‣ Facebook (540 fans) ‣ Twitter (145 followers, following 697) ‣ freemarket.kg (over 1,000 unique visitors in the last two months)

Our long-term goal in managing PR is that journalists cover everyday news from the perspective of the Institute, that is freemarkets and individual freedom.
CAFMI is positioning itself as an independent analytical and research center (think-tank), whose research and events gain traction with the population at large. The Institute adheres to the following PR strategy: ‣ Building friendly relationships with heads of news agencies and journalists ‣ To present interesting research on the Institute’s webpage ‣To take advantage of new-media (blogs, social networking sites) for achieving our goals.

Probably the greatest PR exposure the Institute is currently getting is done by the Mirsulzhan Namazaliev, who is the producer and co-author of a program titled ‘Bay Bol’ (Get Rich in Kyrgyz) on the National TV Channel that is transmitted across Kyrgyzstan every Tuesday at 6.40pm.

‣ACHIEVEMENTS ’09!

PAGE

17

2010 PLANS
‣ In 2010 we will carry out 42 events that will attract 3,000 people ‣ In 2010 CAFMI’s representative in Dushanbe operation and holding events in Tajikistan. In 2010 we will put extra emphasis on conducting research. We will produce 10 original policy papers, 20 analytical articles and also seek extensive coverage in media.

More then 3,000 people will take part in our events in 2010
‣ Free Market School in Kyrgyzstan (50 people) ‣ Free Market School in Tajikistan (50.) ‣ English Liberty Camp in Kyrgyzstan (40) ‣ Idea Night, (150 x 3= 450) ‣ ReCamp (150) ‣ Discussion Seminars (20*11=220 people) ‣ Discussion seminars with experts (10*9=90) ‣ Lectures on wheels (7*150=1,050) ‣ Student conference (300) ‣ Conference on ‘Free Trade’ and additional seminars on the theme (350) ‣ Discussion seminars across the regions (7x 30=350 ) In 2010 we will help the creation clubs in leading universities of Kyrgyzstan, Kazakhstan and Tajikistan that promote individual freedom, free markets and open borders. For example, we will continue to support debate tournaments that that will debate topics on freeFurthermore, we will take part in co-organizing events of our partner organizations that help us achieve our Institute’s mission.

3,000 PEOPLE WILL TAKE PART IN OUR PROGRAMS IN 2010

market and individual freedom, and had more then 200 participants. Also, we will support other events that promote the spread of the message of individual freedom.

2010 RESEARCHES

FREE TRADE AND PEACE
Using concrete examples we show the consequences of raising barriers to trade on raising children, providing quality medicine and construction cost.

TAXATION & SPENDINGS
We research the benefits of decreasing the tax and bureaucratic burden on the economy. Eventually, we hope to create an Index of Economic Freedom for Central Asia.

OPEN BORDERS

MONITORING NEW LAWS

The goal of this research is to understand the benefits of canceling of visas to Kyrgyzstan and the ‘propiska’, a soviet relic.

We track the repercussions of new and existing legislation on economic freedom on the Central Asian states.

ACHIEVEMENTS ’09!
CAFMI’S BOARD OF DIRECTORS Dr. Tom G. Palmer,  Vice-President for International Relations at the Atlas Foundation, director of Cato University and a Senior Fellow at the Cato Institute.

PAGE

18

Emil Umetaliev, President of Kyrgyz Concept. He is a co-founder of the Bishkek Business Club, one of the largest business groups in Kyrgyzstan, and a member of the Board of Trustees at American University of Central Asia.

Dr. Krassen Stanchev, Chairman of the Economic School of Bulgaria, former member and chairman of the Constitutional Assembly, and one of the most highly cited experts in Bulgaria and an author of a number of market reforms.

Timur Shaihutdinov, Co-chairman of Alliance of Liberal Youth “Free Generation”, a founder of the Young Liberals Club and a founder of the youth group “Birge!” In 2005 he was a member of the Constitutional Reform group.

CAFMI STAFF Mirsulzhan Namazaliev, founder and director. He is a political economist, a media consultant, and new media expert, and has successful track record of working at a private company. Asel Abykeeva, administrative manager. She is finishing up her degree in Economics at the National University of Kyrgyzstan. She has experience in the sphere of finance, communication, journalism in different companies and organizations in Kyrgyzstan. Sabina Reingold, PR-specialist. She is a contributor to regional news sites: freedolina.net and neweurasia.net. She is also the organizer of a poetry group Kovcheg and a correspondent for IWPR. Excerpt from Ayn Rand’s Fountainhead: - "Do you mean to tell me that you're thinking seriously of building that way, when and if you are an architect?" - "Yes." - "My dear fellow, who will let you?" - "That's not the point. The point is, who will stop me?" More about us: www.freemarket.kg/about

Gulmira Aidaralieva, program manager. Prior to CAFMI she has worked at Nexi, Clienterra, Center for Analysis of Methods of Education and Teaching and Funky Bishkek. Kamila Murzaeva, project coordinator. She received her Masters at Academy of Management under President of Kyrgyz Republic. She organized English Liberty Camp and Free Market School.

Sign up to vote on this title
UsefulNot useful