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Central Asian Free Market Institute

Central Asian Free Market Institute, 14/8 Togolok Moldo, 720017, Bishkek, Kyrgyzstan | [email protected]

December 2009

Promoting ideasof freedom andresponsibility in

Central Asia

MORE THEN 1066 PEOPLETOOK PART IN OURPROGRAMS IN 2009

FREE MARKET SCHOOL

Former chief economic adviser to the

President of Russia shared his ideas on

economic analysis.

Continued on page 4

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

168 took part, although our high expectationswere of 100, in a new meeting format.

Continued on page 7

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

Fake Medicines Eradication is Stymied byRestrictive Trade Laws...

Continued on page 9

Issue #1 www.freemarket.kg

HEADQUARTER:TogolokMoldo14/8,

720017, Bishkek, Kyrgyzstan

PHONE+996312612493 MOBILE+9965555101202

Participants of English Liberty Camp, Oru-Say, September 2009

Poster of IdeaNight, October 2 2009Andrei Illarionov at FMS

Berlin Wall Fell in Central Europe but it isEmerging in Central Asia

Continued on page 12
http://www.freemarket.kg/http://www.freemarket.kg/


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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 countrys

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 CAFMIs target groups

To build relationships with leading think-

tanks 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

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.
mailto:[email protected]:[email protected]


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Contact people:

Mirsulzhan Namzaliev,

Executive Director,

[email protected],

+996555101202 Gulmira Aidaralieva,

Program Manager,

[email protected], +996778171088

Kamila Murzaeva,

Project Coordinator,


Sabina Tohmatova (Reingold),

PR- Specialist, [email protected],

+996550207769

Asel Abykeeva,

Administrative Coordinator,


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:

+996312 610610, 610 445

Founder:

Mirsulzhan Namazaliev

Registration Number:

105147-3301-

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

English Liberty Camp, September 25-30, 2009

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.

Central Asian Central Asian Free Market Institute was registered in Bishkek branch of the Ministry of

Justice of Kyrgyz Republic, as a public foundation.

ReCamp agenda

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.
mailto:[email protected]://www.freemarket.kg/http://www.freemarket.kg/mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


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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

FREE MARKET SCHOOLThe 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 governmentDr. Tom Palmer, Atlas Institute, and Anna

Krasinskaya, InLiberty.Ru editor


5/18

Project Sponsors:


Soros-Kyrgyzstan Foundation

Date and place:

September 25-30, 2009, Oru-Say, Bishkek

Participants: 40 people

Successes:

Free market clubs opened in Kyrgyzstans

top universities (AUCA, KRSU)

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.

ENGLISH LIBERTY CAMPFall 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.

More then 80% of participants wouldhave paid to attend, according to post-

camp surveys

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


6/18

Sponsors and partners of the project:


Social Research Center AUCA

Youth Integration Service

Date and place:

October 4, 2009 AUCA

Participants:

155 people from Kyrgyzstan, Kazakhstan and Tajikistan

RECAMP - NON-CONFERENCEThe 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. Its 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 Germanys 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.

Emil Umetaliev, CEO of Kyrgyz Concept, aleading tourist company, on economic reforms inKyrgyzstan

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

Dr. Tom Palmer (Atlas Foundation, CatoInstitute,USA)

155 attendees of ReCamp


7/18

Project sponsors:

International Republican Institute


Date and place:

October 2, 2009, Sweet 60s cafe

Participants:

168 people from Kyrgyzstan

IDEANIGHT - INFORMAL MEETINGThe aim of the event is to create a platform for a rapid exchange of ideas on freedom, to meet criticalthinkers 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 stillexists 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.


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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 atlarge.

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.

DO

NAT

E|

SUPPORT

If you wish to become Institutes donor or sponsor students to attend

English Liberty Camp or Free Market School please contact Institutes

Director, Mirsulzhan Namazaliev: Office: +996 312 612493,

Mobile: +996 555 101202, Email: [email protected]


9/18

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 Kyrgyzstans biggest economic fake

drugs make up a large portion of the market:

35% in Uzbekistan

30% in Kazakhstan

10% in Russia

There is lack of hard data as to the share of the fake drugs on

Kyrgyzstans 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 Consumers 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

Kyrgyzstans 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.

0

10

20

30

40

Russia

Kazakhstan

Uzbekistan

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.

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 Ladas to catastrophe.

Manufacturers go to great pains to retain their stellare reputation aswhen Coca Cola recalled 2.37 million bottles in 2006 in Japan.

continued on next page...

COMBATING THE SPREAD OF FAKE DRUGS IN KYRGYZSTANThe 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 itReal: 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.


10/18

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.

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 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

Kyrgyzstans government has adopted policies to tackle the problem of

fake medicines. On April 27, 2009, Prime Minister Igor Chudinov

signed legislation ratifying Kyrgyzstans 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.

The countrys 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 approachs 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 andIndia 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

trading and delivering fake drugs their actual effect may be less

effective andeven 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.

The fundamental problem is that as long as consumers lack reliable

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.

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.

continued on next page...

COMBATING THE SPREAD OF FAKE DRUGS IN KYRGYZSTAN


11/18

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 thesystem 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.

Kyrgyzstans 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 opportunit ies for

fake medicines who dont 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.

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 beconsiderably 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

COMBATING THE SPREAD OF FAKE DRUGS IN KYRGYZSTANthe beginning is at the page 9-10

Please help our research team

grow:

Research for us is an originalproduct analytical report that we wishpolicy 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 researchare: free trade, taxation, private

property and individual freedom.

Support us: www.freemarket.kg/support


12/18

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 Walls history is multifaceted and extends beyond

Europe to encompass the entire former Soviet Union. In particular, itbears lessons for todays Central Asian republics, all of whom, in oneway 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 about300 people ever managed to escape to the West, and many died in the

attempt.

So, I think the BBCs 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, Ifelt 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, its obvious that even if theBerlin Wall physically fell, it remains spiritually as strong as ever. Hereare three examples:

Turkmenistan banned students from attending the American

University of Central Asia in Bishkek. According to neweurasia,attempts by the students to find out why were met with accusations of

treason and threats of punishment.

Uzbekistan has started erecting a concrete wall along the border with

Kyrgyzstan. According to Johns Hopkins Universitys Central Asia-

Caucasus Institute, the wall will be five- to seven-meter tall, replete

with a trench. The decision to build the wall was done unilaterally bythe Uzbek government under the pretext of combating extremism.

Meanwhile, Uzbekistan has been erecting a cybernetic wall to keep

out the internet for the last five years. Although the cyber-wall isostensibly 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 controlover 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. Its nosurprise 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 freedommust 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 thatgovernment control brings more benefits than the private initiatives of

free men and women. The future can be ours if only we tear downthat wall.

Mirsulzhan Namazaliev, CAFMIs director, at neweurasia.net

CENTRAL ASIA, TEAR DOWN THE WALLEditors note: Twenty years ago the Berlin Wall fell, but long after its physical form was broken down, its spiritpersists in Central Asia. Mirsulzhan highlights the continuities between the policies of today and those thatled to the Walls collapse and shows how it is not only state control that diminishes the regions potential, but

the lingering Soviet mentality behind it.
http://www.cacianalyst.org/?q=node/5143http://www.neweurasia.net/tag/turkmen-auca-crisis/http://news.bbc.co.uk/2/hi/europe/8347695.stmhttp://news.bbc.co.uk/2/hi/europe/8347695.stmhttp://news.bbc.co.uk/2/hi/europe/8347695.stmhttp://www.cacianalyst.org/?q=node/5143http://www.neweurasia.net/tag/kaznet/http://www.neweurasia.net/tag/kaznet/http://www.neweurasia.net/tag/kaznet/http://enews.ferghana.ru/article.php?id=2542http://enews.ferghana.ru/article.php?id=2542http://enews.ferghana.ru/article.php?id=2542http://enews.ferghana.ru/article.php?id=2542http://www.cacianalyst.org/?q=node/5143http://www.cacianalyst.org/?q=node/5143http://www.cacianalyst.org/?q=node/5143http://www.cacianalyst.org/?q=node/5143http://www.neweurasia.net/tag/turkmen-auca-crisis/http://www.neweurasia.net/tag/turkmen-auca-crisis/http://www.neweurasia.net/tag/turkmen-auca-crisis/http://www.neweurasia.net/tag/turkmen-auca-crisis/http://news.bbc.co.uk/2/hi/europe/8347695.stmhttp://news.bbc.co.uk/2/hi/europe/8347695.stm


13/18

FINANCIAL MANAGEMENTMonitoring the quality financial management is

achieved by tracking CAFMIs quality indicators.

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 Institutes 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 earningthe trust of its donors.

CAFMIs 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 donors 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.

If we could find funding or volunteers

to conduct a financial audit of the

Institute, we would be extremely glad.

44.9%

34.8%

16.5%2.5%

1.2%

Atlas Foundation Friedrich Naumann

Soros Kyrgyzstan OSI Soros Tajikistan

IRI Kyrgyzstan

Sources of funding for 2009


14/18

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.

Furthermore, Andrei Illarionovs 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

can present their ideas and critical feedback

and possibly find supporters.

EVENT MANAGEMENT

Education and discussion events have strategic value for CAFMIbecause we strive to build a network of youth who would go on to

promote free market principles in Central AsiaEvents: 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

Education and research chief pillars of the Institute.

In 2009, 1,066 people from Central Asia took direct part in theevents of the Institute.

In 2010 we are working on doubling the number

of participants to 3,000


15/18

Understanding that our Institute has 2 full-

time staff and four volunteers, we developed

a program for effectively managing our

human resources.

The Institutes staff and volunteers hold

responsibility for specific projects, which

motivates responsibility and success.

Our teams spheres of work are: program

management, accounting, PR-Coordination,

project coordination and a research assistant.

Among responsibilities of the Institutes

director are: promotion of the Institute, event

oversight, fundraising and overall

responsibility for the Institutes success.

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.

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.

We are planning on further using volunteer

resources to save on our donors funds,

whenever it is feasible.

HR - MANAGEMENT

Wisely managing human resources, in particularly our interns, is of highest importance because theyensure 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.

Organizations that helped us in finding volunteers for our

events were our partner organizations: Youth Integration

Service and Club of Intellectual Games.

Number of external organizers of the largest three events


16/18

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

Institutes webpage

To take advantage of new-media (blogs,

social networking sites) for achieving our

goals.

PR - MANAGEMENT

Our long-term goal in managing PR is that journalists covereveryday news from the perspective of the Institute, that is free-

markets and individual freedom.

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)

Probably the greatest PR exposure the Institute is currently

getting is done by the Mirsulzhan Namazaliev, who is theproducer 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.


17/18

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 )

Furthermore, we will take part in co-organizing events of our partner

organizations that help us achieve our Institutes mission.

For example, we will continue to support debate

tournaments that that will debate topics on free-

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.

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.

In 2010 we will carry out 42 events that

will attract 3,000 people In 2010 CAFMIs representative in Dushanbe

operation and holding events in Tajikistan.

2010 RESEARCHES FREE TRADE

AND PEACE

TAXATION &

SPENDINGS

OPEN BORDERS MONITORING

NEW LAWS

Using concrete

examples we

show the

consequences

of raising

barriers to

trade on

raising

children,

providing

quality

medicine and

construction

cost.

We research

the benefits

of decreasing

the tax and

bureaucratic

burden on the

economy.

Eventually, we

hope to create

an Index of

EconomicFreedom for

Central Asia.

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.

2010 PLANS

In 2010 we will put extra emphasis on

conducting research. We will produce 10original policy papers, 20 analytical

articles and also seek extensive coverage

in media.


18/18

More about us: www.freemarket.kg/about

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.

Dr. Krassen Stanchev,

Chairman of the Economic

School of Bulgaria, former

member and chairman of theConstitutional Assembly, and one

of the most highly cited experts in

Bulgaria and an author of a

number of market reforms.

Emil Umetaliev,

President of Kyrgyz Concept. He

is a co-founder of the BishkekBusiness Club, one of the largest

business groups in Kyrgyzstan,

and a member of the Board of

Trustees at American University

of Central Asia.

Timur Shaihutdinov,

Co-chairman of Alliance of

Liberal Youth Free Generation,

a founder of the Young LiberalsClub and a founder of the youth

group Birge! In 2005 he was a

member of the Constitutional

Reform group.

CAFMIS BOARD OF DIRECTORS

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.

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.

Asel Abykeeva, administrative

manager. She is finishing up herdegree 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.

CAFMI STAFF

Excerpt from Ayn Rands 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?"

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