Country Readiness Assessment Report – Kyrgyzstan • • • • • mineral and water resources; information and telecommunication technologies; new materials, construction; development of tourism; and fundamental research. Key directions in the field of Information and Telecommunication technologies are as follows: • optical electronic components and their usage in communications and computers • high density memory • fiber optical networks • information technologies and Internet in education The Kyrgyz Republic’s economy is in transition stage and has very few opportunities to invest in science and technology. As such, the country relies on international community grants and programmes. Significant results have been achieved via research co-operation with foreign countries, and an agreement has been signed between the Kyrgyz Republic and the International Association on Co-operation with Newly Independent States (INTAS). Kyrgyzstan is a landlocked state located on the crossroads between Asia and Europe and 90 % of its territory is covered with mountains. There are many earth metal deposits in the country and over the last two centuries a mining industry has developed. The semiconductor production process requires heavy usage of electric power. The Kyrgyz Republic has, in fact, excellent natural conditions for producing hydro electricity and, before the break-up of the Soviet Union, a series of hydro electric plants were built in the country which also exported hydro electricity to neighboring States. At this time, the semiconductor production industry was successfully functioning and there were several high- tech equipment manufacturing plants oriented towards the military sector. With the collapse of the Soviet Union, however, there is no demand for these products and the entire sector has ceased to function. The country, which has great potential for a semiconductor industry - raw materials, inexpensive hydro energy, and qualified personnel – needs investment opportunities. At the same time, investors from South Korea are expressing interest in the semiconductor industry in the Kyrgyz Republic. Kyrgyzstan has the most liberal regime of the Central Asian States. The Internet with its highly democratic principles are implemented into algorithms of the network operations and are sensitive to any restrictions in network access and management. This country has the most favorable conditions for development of network software applications and access to online informational resources and it can serve as a hub for the entire Central Asian region for information and telecommunication initiatives. The development of international transport corridors such as Traceka and the Silk Road, which pass through the territory of the Kyrgyz Republic, will stimulate a demand for all types of IT services to facilitate day-to-day operations of transport routes. 37