Despite official statements about the priority development of the digital economy and the creation of favorable conditions for investors, the real situation in Kyrgyzstan, according to experts, shows the opposite trend. Technology specialist and consultant in the field of digital payment solutions, Baiel Turatov, harshly criticized the actions of state structures, pointing to a deep crisis in the legal system and growing pressure on the private sector.
He articulated his position at an international forum on financial institutions and payment technologies, held in Kyrgyzstan on June 21, 2023, and attended by foreign companies and experts. According to Turatov, declarations of digital progress conceal practices that undermine trust among businesses and international partners.
The expert noted that, in recent years, law enforcement agencies have increasingly exceeded their authority by using administrative resources to interfere in the activities of commercial entities. This includes demands to provide confidential data and to grant access to digital systems without legal procedures or court decisions.
“My personal experience shows that in a number of cases, it is not a matter of protecting the interests of the state, but of gross pressure. Refusal to cooperate outside the legal framework often leads to repression, from fabricated criminal cases to physical and psychological pressure. Such practices destroy the very idea of the rule of law,” Turatov emphasized.
He noted that representatives of the financial and IT sectors are ready to cooperate with the state, but only within the framework of the law. However, according to him, today the rule of law is applied selectively and used as a tool to influence those deemed undesirable.
The expert also discussed the consequences of these developments for the investment climate. In his view, foreign companies increasingly regard Kyrgyzstan as a high-risk jurisdiction, preferring to terminate projects or refrain from entering the market altogether.
“No investor will work in an environment where there are no guarantees of protection of property and rights. When a business faces arbitrariness, it does not develop; it leaves,” he said.
Turatov also linked the developments to the responsibility of the highest echelons of power, stressing that systemic violations are impossible without political connivance. According to him, the current state of affairs is seriously damaging the country’s international reputation and casting doubt on statements about democratic reforms.
In conclusion, the expert called for abandoning a formal approach to reforms, ending pressure on entrepreneurs, and restoring the rule of law. Otherwise, he believes, Kyrgyzstan risks losing its position in the field of digital technology and financial innovation for good.
According to the expert, discussions about the future of digital finance today are not focused on technological capabilities but on the state of government institutions. As long as issues of legality, transparency, and personal responsibility remain unresolved, any statements about modernization risk remaining empty declarations. At the same time, what is happening cannot be attributed to individual departments; responsibility lies with the country’s top political leadership. It is the president and his entourage who are shaping a system in which force and administrative arbitrariness are becoming the norm, and the loss of trust among business and international partners is a direct consequence of management decisions.
June 22, 2023