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Central Asian Free Market Institute

ACHIEVEMENTS’09
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December 2009 Issue #1 www.freemarket.kg
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Promoting ideas
of freedom and
SUCCESSFUL LAUNCH: GOOD responsibility in
Central Asia
OUTREACH IN A SHORT PERIOD

MORE THEN 1066 PEOPLE


TOOK PART IN OUR
PROGRAMS IN 2009

FREE MARKET SCHOOL


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

Andrei Illarionov at FMS


NIGHT OF IDEAS - IDEANIGHT Poster of IdeaNight, October 2 2009
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...

NON CONFERENCE – RECAMP Continued on page 9

150 people participated in a non-traditional


conference on free market economics and Berlin Wall Fell in Central Europe but it is
ways of developing Central Asia Emerging in Central Asia
Continued on page 6
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 Major Donors:
expand individual freedom and responsibility in Central Asia. We strive to strengthen the ‣ Friedrich Naumann
Foundation
foundation of market economy, sanctity of private of private property and the rule of law.
‣ Atlas Economic Research
Foundation
THE INSTITUTE ACHIEVES ITS ‣ To build relationships with leading think- ‣ Soros-Kyrgyzstan
STRATEGIC GOALS BY: tanks in Europe, Asia and North America Foundation
‣ Actively working with experts to study ‣ To educate young leaders, who will help ‣ International Republican
us disseminate the message of freedom and Institute
economic problems in the region to be used
for making holistic solutions to the country’s apply it ‣ OSI Assistance
legislators Foundation for Tajikistan
GOALS OF CAFMI
‣ To carry out educational events for ‣ To disseminate and advocate for
students, entrepreneurs, politicians and the Date of Registration:
individual freedom
public at large on basic principles of ‣ To disseminate and promote the ideas of ‣ April 6, 2009
freedom and responsibility private property and free markets
Headquarters:
‣ To popularize the idea of limited
CAFMI STRATEGY  government, in economic and social terms, ‣ Bishkek, Kyrgyzstan
‣ To form coalitions, of business people, and show the practical benefits of it
experts or organizations, for the detailed through our research Target Audience:
study of concrete problems. ‣ Professional preparation and support for ‣ Researchers and
‣ To disseminate the research findings individuals and organizations who are journalists
among CAFMI’s target groups supporters of individual and economic ‣ Businessmen and
freedom 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 ‣ Founder:
Mirsulzhan Namazaliev
two people. Interns and help is procured as per needs of projects and work load.

Contact people: Bank Details: ‣ Registration Number:


‣ Mirsulzhan Namzaliev, CJSC Demir Kyrgyz International Bank 105147-3301-ОФ
Executive Director, SWIFT: DEMIKG22 ‣ TIN: 0064200910052
mirsulzhan@freemarket.kg, BIC: 118005 ‣ OKPO Code: 26604400
+996555101202 ‣ Registered at STI at: 1st
‣ Gulmira Aidaralieva, For KGS: 1180000018741115 May STI on 17.04.2009 y.
Program Manager, For USD: 1180000018741216 Code: 004
gulmira@freemarket.kg, +996778171088 For Euro: 1180000018741317
‣ Kamila Murzaeva, ‣ Legal address:
Project Coordinator, Bank Address 163/10 Moskovskaya,
kamila@freemarket.kg, +996555415253 Chui 245 str., Bishkek 720 001, Kyrgyzstan: Bishkek, Kyrgyzstan
‣ Sabina Tohmatova (Reingold),
PR- Specialist, sabina@freemarket.kg, Bank Tel: ‣ De-facto address:
+996550207769 +996 312 610610, 610 445 14/8 Togolok Moldo str.,
‣ Asel Abykeeva, Bishkek, 720017,
Administrative Coordinator, Kyrgyzstan
aselya@freemarket.kg, +996777101044
‣ Work phone:
Central Asian Central Asian Free Market Institute was registered in Bishkek branch of the Ministry of +996312612493
Justice of Kyrgyz Republic, as a public foundation.
‣ Website:
www.freemarket.kg
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.

Dr. Tom Palmer, Atlas Institute, and Anna


Andrei Illarionov is explaining the concept of limited government Krasinskaya, InLiberty.Ru editor

Sponsors of the project: Date and place: Main Results:


‣ Friedrich Naumann Foundation October 4-9, 2009 Fountain Resort-Issyk Kul - Tajikistan Free Market Center is launched
‣ Atlas Economic Research Foundation Participants: in Dushanbe
‣ OSI Assistance Foundation for Tajikistan 43 people from Kyrgyzstan, Kazakhstan and - National Debate Cup was held in
Tajikistan 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 post-
camp surveys
Project Sponsors: Date and place: Successes:
‣ Friedrich Naumann Foundation September 25-30, 2009, Oru-Say, Bishkek Free market clubs opened in Kyrgyzstan’s
‣ Soros-Kyrgyzstan Foundation Participants: 40 people 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
Dr. Tom Palmer (Atlas Foundation, Cato Emil Umetaliev, CEO of Kyrgyz Concept, a
gave the event unusual flexibility and vitality that
Institute,USA) leading tourist company, on economic reforms in
drew so many people to it. Kyrgyzstan

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 155 attendees of ReCamp Sasha Tamm, Director of the Moscow bureau of
total of thirty different presentations.
the Friedrich Naumann Foundation

Sponsors and partners of the project: Date and place:


‣ Friedrich Naumann Foundation October 4, 2009 AUCA
‣ Social Research Center AUCA Participants:
‣ Youth Integration Service 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: Date and place:


‣ International Republican Institute October 2, 2009, Sweet 60s cafe
‣ Friedrich Naumann Foundation 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 INVEST IN YOUNG WHY WORK


CONSEQUENCES PROFESSIONALS WITH US
We are convinced that They are an ideal We treat our
ideas have group to work with beneficiaries with
consequences. because young same care and respect
professional is a that companies treat
Ideas on freedom and highly motivated their clients.
responsibility are an person with a proven
alternative that we track record who can We are transparent,
want people to promote free market flexible, ambitious
understand and ideas among his peers and young. We value
believe in. and the population at measurable results.
large.

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 A fake medicine can cause at least one and even three of these effects.
constitute 10% of the global drug market and 25% in less developed The most common effect is the failure to provide a successful
countries. The UN estimates the figure to be 10% in the CIS. Studies treatment. This can occur when a fake contains insufficient quantity of
have more found that among Kyrgyzstan’s biggest economic fake the necessary ingredient or if the delivery mechanism (the other
drugs make up a large portion of the market: ingredients that enables the drug to be taken up by the body) does not
‣ 35% in Uzbekistan function properly. The paper notes that a particularly pernicious
‣ 30% in Kazakhstan instance of a failure to treat occurs as a result of “trick” fakes. These
‣ 10% in Russia drugs are entirely ineffective against a disease but contain ingredients
which only negate the symptoms, while the actual cause survives.

40
In some cases fake drugs cause direct harm. Fortunately, no such
cases were registered in Kyrgyzstan yet, but a batch of counterfeit was
30
exported to the US and killed 62 americans in 2008.
Another possible harm from fakes is the presence of insufficient active
20
ingredients to eradicate the microorganisms. The surviving
microorganisms breed, resulting in drug-resistant strains. Hence, the
10
real medicine becomes less effective at treating the disease. This has
0 been a particularly severe problem in treating malaria, for in the 1980s
Russia and 1990s antimalarial drugs such as chloroquine were used
Kazakhstan inappropriately so that parasites became resistant to them.
Uzbekistan
Causes
There is lack of hard data as to the share of the fake drugs on The causes for prevalence of fake medicines are numerous. Some
Kyrgyzstan’s drug market due to lack of such research but a regional suggest that because fakes are more widespread in less developed
comparative analysis suggests it is in the range between 20% and countries; consumers in these countries are less willing to pay for
30%. Furthermore, according to Vladimir Pluzhnik, Director of the quality medicine. While the first part of the claim is true the second part
Center for Protecting Consumer’s Rights “Vigens”, the number of is not. Claiming that poor people are are unwilling to pay for quality
complaints about fake drugs is increasing by the year. medicine implies that the poor are unable to make rational decisions;
hence, are willing to consume harmful medicine, which is a clear logical
According to WHO most faked medicines in developing countries were fallacy.
antibiotics (28%) and hormones and steroids (14%). Rustam
Kurmanov, director of the pharmaceutical supply department at Rather the prevalence of fake medicines in poor countries is best
Kyrgyzstan’s Ministry of Health, concurs that most prevalent fakes are explained by:
antibiotics. Yet, the authors of the research paper admit that most
‣ defective legal systems and
cases of counterfeit drugs are not known to governments since there is
‣ government distortions of the pharmaceutical market
no systematic mechanism for discovering and disclosing them.

These two causes create an environment in which fake drugs thrive.


Danger Buying cars many people often simply go by the brand, associating
Fake drugs can cause health damage, even death, due to: Toyota to longevity, Mercedes to quality and Lada’s to catastrophe.
‣ poisoning, Manufacturers go to great pains to retain their stellare reputation as
‣ failure to cure disease and when Coca Cola recalled 2.37 million bottles in 2006 in Japan.
‣ provocation of drug resistance.

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 The country’s current approach to increase spending on detection and
have a reputation for quality and effectiveness so that they maintain seizure of counterfeit drugs is likely to have positive effect of stopping
strong sales and large profits. 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 trading and delivering fake drugs their actual effect may be less
difficult to enforce trademarks. Therefore, the paper finds, “where effective and…even be counterproductive.” Stronger criminal penalties
trademarks cannot be enforced, cheaply produced poor quality copies will likely drive activities further into the hands of organized criminal
will typically crowd out good quality drugs” simply because they are cells. They will also likely result in increased corruption, as criminal
cheaper and it is hard to distinguish quality from fake. The weakness of cells seek to infiltrate law-enforcement agencies. This was the case in
trademark protection means that producers of high quality medicines 1930s with the start of Prohibition in the US and the USSR in 1980s
are unable to protect their brands, which might even deter them from and is the reality in many developing countries like Kyrgyzstan and
entering the market altogether, therefore, leaving consumers no choice Mexico that have outlawed drugs.
fakes.
The fundamental problem is that as long as consumers lack reliable
The other legal failure allowing the existence of fake drugs is the means of ensuring the identity (brand) of the drugs they are purchasing
weakness in civil law. Civil law protects consumers against defective the problem of fake drugs remains. The fundamental problem is in the
goods. It enables the consumer (or their relative) to obtain inability of consumers to identify a drugs identity. Harris, Stevens and
compensation from the manufacture or supplier of a harmful product. Morris recommend measures by the private sector to prevent
This discourages the manufacturer or supplier from producing and counterfeiting as these seem to be most effective in curbing trade in
selling fakes. However; in Kyrgyzstan civil law is poorly defined or fake drugs.
inadequate to be effective. Vladimir Pluzhnik concedes that although it
is possible to take to court the pharmacy that sold the fake drug, the The simple measures undertaken by private initiative already prevail in
legal hurdles are enormous and benefits minimal; therefore, few Kyrgyzstan:
actually do. Actually, no such cases have been registered. ‣ Oddly shaped pill shapes
‣ Tamper-evident packaging
Solution ‣ Holographic images
Kyrgyzstan’s government has adopted policies to tackle the problem of However; even these challenges have been overcome by
fake medicines. On April 27, 2009, Prime Minister Igor Chudinov counterfeiters. Current private efforts focus focus on more complex
signed legislation ratifying Kyrgyzstan’s fight against fake drugs, as systems that are believed to be sufficiently complex to render
part of the Commonwealth of Independent States agreement.The counterfeit activities uneconomical.
Ministry of Health and the State Customs Committee are responsible
for the implementation of the law. continued on next page...
ACHIEVEMENTS ’09! PAGE 11

COMBATING THE SPREAD OF FAKE DRUGS IN KYRGYZSTAN


the beginning is at the page 9-10

A particularly interesting solution is the use of SMSs. Mobile phones Conclusion


are now sufficiently widespread in Kyrgyzstan, about 60% penetration
2008, that access can be considered near-universal. SMSs could be The fight against fake medicines has the advantage that many
used to check the authenticity of medicine. Each drug is given a unique criminals involved are unlikely to have a particular commitment to this
identifying code in the form of a simple series of numbers, which is activity. At present it is simply an easy and convenient way to make
printed on the pack and concealed. When the pack is bought, the money. By addressing the root causes that enable such profitable
purchaser scratches off the concealing panel to reveal the code and opportunities, their incentives can be diminished, thereby reclaiming
sends the code by SMS to a central registry, which contains a copy of the market for high quality medicines.
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 This paper suggests that the supply of fake drugs could  be
informing them that the medicine is unique. If the code is not in the considerably reduced by:
system or is not unique, then they will be told than the medicine is ‣ Strengthening local institutions, in particular the rule of law
likely counterfeit. Such SMS systems have been developed in Ghana, ‣ Governments intervening less in the pharmaceutical market
India and USA, and are currently being offered across Asia and Africa. ‣ Better use of technologies for identity preservation.

Kyrgyzstan’s government took laudable steps in 2008 for scrapping Governments have a role to play beyond improving the rule of law.
VAT on imported medicine. This causes the price differential between Many government interventions in the pharmaceutical market have
quality medicines and fakes to diminish and removes opportunities for restricted supplies of quality medicines, driving up prices and simply
fake medicines who don’t bother to pay VAT anyway. Secondary leading to gaps in the market. These have then been exploited by
benefit of minimizing costs of quality drugs is that such tariffs as VAT purveyors of fake medicines. Governments could substantially reduce
and import duties removes extra layers of slow- moving customs these problems by removing impediments to the supply of quality
bureaucracy. This gives customs officials opportunities to solicit bribes medicines, such as taxes, tariffs, price controls and arbitrary
to decide which drugs are help up and which are fast tracked- “a regulations.
situation which favors importers willing to behave illegally,” believe the
papers authors. Central Asian Free Market Institute, September 2009

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 free-
market 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

CENTRAL ASIA, TEAR DOWN THE WALL


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 ‣ Meanwhile, Uzbekistan has been erecting a cybernetic wall to keep
Iron Curtain that had separated an entire continent, the end of the out the internet for the last five years.  Although the cyber-wall is
Wall is often seen as something distinctly European. ostensibly to protect the morals of the Uzbek population, according to
Ferghana.ru, in reality the target of prohibition has not been porn
But the Berlin Wall’s history is multifaceted and extends beyond websites but mostly independent political and opposition mass media.
Europe to encompass the entire former Soviet Union.  In particular, it ‣ A similar cybernetic wall is being erected in Kazakhstan with
bears lessons for today’s Central Asian republics, all of whom, in one legislation of new internet regulations.  According to neweurasia,
way or another, are still continuing the very policies that led to its among other problematic things, the new regulations do not
destruction. differentiate between readers who leave comments on blog posts and
the original authors themselves.  This opens the door to direct control
A powerful state apparatus; the maximum limit on economic and over the Kazakh blogosphere by authorities.
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 Several countries throughout the world have managed to minimize
felt no need to mourn its collapse. Whatever came next had to be governmental paternalism, most notably the United States and Europe. 
better”. Their citizens are economically, politically, and mentally free.  It’s no
surprise that they score first again and again in global rankings for
Yet, when we look at the everyday realities of our lives here in Central productivity, creativity, and the sciences.
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 In contrast, too often it seems that the populations of Central Asia
are three examples: 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
‣ Turkmenistan banned students from attending the American must be things that happen to a society, not things to be worked
University of Central Asia in Bishkek.  According to neweurasia, toward.
attempts by the students to find out why were met with accusations of
treason and threats of punishment. The Berlin Wall of the mind is seductive: it promises security and
certainty, but in exchange for real fulfillment.  The peoples of Central
‣ Uzbekistan has started erecting a concrete wall along the border with Asia must resist the temptation.  We must reject the myth that
Kyrgyzstan. According to Johns Hopkins University’s Central Asia- government control brings more benefits than the private initiatives of
Caucasus Institute, the wall will be five- to seven-meter tall, replete free men and women.  The future can be ours — if only we tear down
with a trench.  The decision to build the wall was done unilaterally by that wall.
the Uzbek government under the pretext of combating extremism. Mirsulzhan Namazaliev, CAFMI’s director, at neweurasia.net
ACHIEVEMENTS ’09! PAGE 13

FINANCIAL MANAGEMENT Monitoring the quality financial management is


achieved by tracking CAFMI’s quality indicators.

Quality indicators:
‣ Diversified funding sources
Sources of funding for 2009
‣ Financial stability at minimal risk Atlas Foundation Friedrich Naumann
‣ Transparent budget for donors, partners
Soros Kyrgyzstan OSI Soros Tajikistan
and staff of CAFMI
IRI Kyrgyzstan
‣ To optimize spending and use donor
funding most wisely

Financial Management by:


‣ Mirsulzhan Namazaliev (signatory)
16.5%
‣ Gulmira Aidaralieva (cashier) 2.5%
‣ Asel Abykeeva (accountant)
1.2%
We understand that financial management is
based on raising funds, tracking the 34.8%
spending, and ensuring that Institute’s aims
and projects are achieved at minimal cost
and maximum effect.
44.9%
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
If we could find funding or volunteers
international organizations, such as the Soros
Foundation.
to conduct a financial audit of the
Institute, we would be extremely glad.
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.
ACHIEVEMENTS ’09! PAGE 14

EVENT MANAGEMENT
Education and discussion events have strategic value for CAFMI
because we strive to build a network of youth who would go on to
Events: promote free market principles in Central Asia
‣ English Liberty Camp Beside Free Market School, English Liberty can present their ideas and critical feedback
‣ Free Market School Camp, ReCamp and IdeaNight, we held a and possibly find supporters.
‣ IdeaNight – Informal youth forum string of discussion seminars, reading nights,
‣ ReCamp – [Non]conference on screening of documentary movies on
economic reforms on economic and economics as well as trainings on
social development in Kyrgyzstan professional development for CAFMI staff
‣ Lectures on ‘wheels’ from leading and our volunteers.
international economic experts for
students and young professionals Furthermore, Andrei Illarionov’s speech on
‣ Discussion seminars economic freedom in Russia and in general
‣ Liberty Nights received coverage from local media and drew
‣ Events with our local partners more than 140 people to hear him.

CAFMI Advantage: We attract alumni of our events to take part in


‣ Pursuit for practical results research. Also, we hold events where people
‣ Desire for quality and
professionalism in everything we do

Partners: Education and research – chief pillars of the Institute.


‣ Social Research Center at AUCA
In 2009, 1,066 people from Central Asia took direct part in the
‣ Youth Integration Service
events of the Institute.
‣ Club of Intellectual Games
‣ Club of Liberal Youth 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 Understanding that our Institute has 2 full- When we organized major events like
‣ 2 staff time staff and four volunteers, we developed ReCamp and IdeaNight, we sought additional
‣ 4 interns a program for effectively managing our volunteers through our partner organizations
human resources. to help us in moderating, registering,
Number of volunteers at peak: navigating and providing technical help.
‣ 45 people The Institute’s staff and volunteers hold
responsibility for specific projects, which Many people help us on a volunteer basis
Payment System: motivates responsibility and success. because they support our mission and
‣ Payment per successful completion of without them many of our events could not
an event Our team’s spheres of work are: program have been possible.
management, accounting, PR-Coordination,
Plans: project coordination and a research assistant. We are planning on further using volunteer
‣ Full-time accountants resources to save on our donors funds,
‣ Full-time project coordinator Among responsibilities of the Institute’s whenever it is feasible.
‣ We are in the process of implementing director are: promotion of the Institute, event
a corporate code for effectively oversight, fundraising and overall
branding the Institute. responsibility for the Institute’s success.

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: Our long-term goal in managing PR is that journalists cover
‣ Sabina Reingold everyday news from the perspective of the Institute, that is free-
‣ Asel Abykeeva markets and individual freedom.
CAFMI is positioning itself as an independent
CAFMI on internet:
analytical and research center (think-tank),
‣ Facebook (540 fans)
whose research and events gain traction with
‣ Twitter (145 followers, following 697)
the population at large.
‣ freemarket.kg (over 1,000 unique
visitors in the last two months)
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 In 2010 we will put extra emphasis on
will attract 3,000 people conducting research. We will produce 10
‣ In 2010 CAFMI’s representative in Dushanbe original policy papers, 20 analytical
operation and holding events in Tajikistan. 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) Furthermore, we will take part in co-organizing events of our partner
‣ Free Market School in Tajikistan (50.) organizations that help us achieve our Institute’s mission.
‣ English Liberty Camp in Kyrgyzstan (40)
‣ Idea Night, (150 x 3= 450) For example, we will continue to support debate
‣ ReCamp (150) tournaments that that will debate topics on free-
‣ Discussion Seminars (20*11=220 people) 3,000 PEOPLE WILL TAKE market and individual freedom, and had more then
‣ Discussion seminars with experts (10*9=90) PART IN OUR PROGRAMS 200 participants. Also, we will support other events
‣ Lectures on wheels (7*150=1,050) IN 2010 that promote the spread of the message of individual
‣ Student conference (300) freedom.
‣ Conference on ‘Free Trade’ and additional seminars
on the theme (350) In 2010 we will help the creation clubs in leading universities of
‣ Discussion seminars across the regions (7x 30=350 ) Kyrgyzstan, Kazakhstan and Tajikistan that promote individual freedom, free
markets and open borders.

2010 RESEARCHES FREE TRADE TAXATION & OPEN BORDERS MONITORING


AND PEACE SPENDINGS NEW LAWS

Using concrete
We research
examples we The goal of
the benefits
show the this research We track the
of decreasing
consequences is to repercussions
the tax and
of raising understand the of new and
bureaucratic
barriers to benefits of existing
burden on the
trade on canceling of legislation on
economy.
raising visas to economic
Eventually, we
children, Kyrgyzstan and freedom on the
hope to create
providing the Central Asian
an Index of
quality ‘propiska’, a states.
Economic
medicine and soviet relic.
Freedom for
construction
Central Asia.
cost.
ACHIEVEMENTS ’09! PAGE 18
CAFMI’S BOARD OF DIRECTORS
Emil Umetaliev,
Dr. Tom G. Palmer, 
President of Kyrgyz Concept. He
Vice-President for International
is a co-founder of the Bishkek
Relations at the Atlas Foundation,
Business Club, one of the largest
director of Cato University and a
business groups in Kyrgyzstan,
Senior Fellow at the Cato
and a member of the Board of
Institute.
Trustees at American University
of Central Asia.

Dr. Krassen Stanchev, Timur Shaihutdinov,


Chairman of the Economic Co-chairman of Alliance of
School of Bulgaria, former Liberal Youth “Free Generation”,
member and chairman of the a founder of the Young Liberals
Constitutional Assembly, and one Club and a founder of the youth
of the most highly cited experts in group “Birge!” In 2005 he was a
Bulgaria and an author of a member of the Constitutional
number of market reforms. Reform group.

CAFMI STAFF
Asel Abykeeva, administrative
Mirsulzhan Namazaliev, manager. She is finishing up her
founder and director. He is a political degree in Economics at the
economist, a media consultant, and National University of
new media expert, and has successful Kyrgyzstan. She has experience
track record of working at a private in the sphere of finance,
company. communication, journalism in
different companies and
organizations in Kyrgyzstan.

Sabina Reingold,
Gulmira Aidaralieva,
PR-specialist. She is a contributor
program manager. Prior to CAFMI
to regional news sites:
she has worked at Nexi, Clienterra,
freedolina.net and
Center for Analysis of Methods of
neweurasia.net. She is also the
Education and Teaching and Funky
organizer of a poetry group
Bishkek.
Kovcheg and a correspondent for
IWPR.
Kamila Murzaeva, Excerpt from Ayn Rand’s Fountainhead:
project coordinator. She received her - "Do you mean to tell me that you're thinking
Masters at Academy of Management seriously of building that way, when and if you
under President of Kyrgyz Republic. are an architect?"
She organized English Liberty Camp - "Yes."
and Free Market School. - "My dear fellow, who will let you?"
- "That's not the point. The point is, who will
stop me?"

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