Country Readiness Assessment Report – Kyrgyzstan 1.1.1 Introduction All social relationships have been fundamentally changed by modern information and communication technologies (ICT) that have established a new information society. New technologies alter not only how goods and services are produced, but also create new opportunities in the spheres of civic rights, personal development, knowledge gathering, education for the younger generation and leisure time activities. In an information society the importance of geographical distance is diminished, globalisation occurs, and there are unprecedented opportunities for regional development. During recent years the Kyrgyz Republic has made considerable progress in the development of an information infrastructure, and in the informatisation of state organisations and private companies. This has required the development of relevant legislative and the improvement of education levels. The first telecommunications project and TAE Projects have been completed; the State Computer Network (SCN hereinafter) has been established; information projects are being carried out in various economic sectors; and Internet pages of state and non-governmental organizations and commercial structures are being created. Alluding to this, the President of the Kyrgyz Republic, Askar Akaev, declared in the World Economic Forum in Davos (Switzerland) in 1998: ‘Kyrgyzstan chooses the informational society’. Problems with ICT development in the Kyrgyz Republic have demonstrated the need to move away from a one-sided policy of just developing communications and information technologies, to the formulation of a nation-wide strategy for integration with the world information society. Given the technological opportunities already available, main policy directions could include the formation of an interconnecting information space in the country; and the development of information resources, data bases, knowledge and information infrastructures, which could be used by both state structures and the general public on the parity basis. These directions will involve the development of informational law, technological facilities, and organisations. The National Strategy ‘Information and Communication Technologies for Development in the Kyrgyz Republic’ (National Strategy) sets out the main priorities, objectives and tasks, principles, provisions and directions of the national ICT policy. The National Strategy is viewed as an important area for development for implementation of the Complex Development Framework up to 2010 (CDF hereinafter). ICT provides opportunities to achieve CDF objectives, accelerate economic development and reduce poverty. ICT has the potential to become a catalyst and a driving force in the development of Kyrgyzstan. Potential benefits from ICT development include: achievement of effective management; increased labour productivity; availability of new export opportunities, in particular in the area of software exporting and delivery of ICT services; provision of information to farmers on agricultural markets and weather conditions; creation of primary consultative medical assistance; expansion of distance learning capabilities; improved cooperation between the state, local communities and private sector in regions; and an improved quality of state services rendered to the general population. ICT sector share in GDP needs to increase to 5% by 2010. The National Strategy also describes the organisational, economic and financial mechanisms necessary for its implementation. The mechanisms are based on a targeted programme which respects and is subject to regular monitoring and transparency execution. These mechanisms reflect the speech made by the President of the Kyrgyz Republic, Mr A. Akaev, during the First 5