Recently, a round table was held in Bishkek on the topic "Global Trends in Central Asia: From Security Provision to the Extraction of Critical Minerals." The event was organized by the Expert Initiatives Center "Oiy Ordo" in collaboration with the Council for Sustainable Development in the Context of Climate Change under the Speaker of the Jogorku Kenesh of the Kyrgyz Republic.
During the discussions, the focus was on the strategic interaction of Central Asian countries with key foreign policy players. Participants examined the economic prospects of the region against the backdrop of growing geopolitical competition and the global struggle for strategic resources, as well as the experience of "Kumtor" as a model for protecting national environmental and economic interests, including possible cooperation formats with Washington, London, Beijing, Brussels, and Moscow.
Particular attention was paid to the opportunities that could bring the greatest benefit to Kyrgyzstan and Central Asian countries in the context of maintaining resource sovereignty in 2026 and beyond.
According to Kaldan Ernazaroа, director of the Public Fund "Institute for the Development of Public Relations in Central Asia," under the Constitution of Kyrgyzstan, natural resources belong to the state; however, in reality, the state is not their owner.
"The state manages these resources on behalf of the people, who remain the primary bearer of sovereignty and have the supreme right of control. Resources should be used in the interests of the entire country. Land, subsoil, water, and forests are part of sovereignty, not private property of officials," she emphasized.
The conclusion is obvious: resources must work for the country's economy, and revenues should go to the budget to ensure infrastructure, energy, and social needs.
If resources are used against the interests of the people, this constitutes a violation of the constitutional principle, even if everything appears formally legal. Society has the right to demand transparency in the use of budget funds, the protection of strategic facilities, and decision-making that aligns with national interests.
The situation with "Kumtor" has shown that returning the deposit under state control was a logical step. Now, revenues remain in the country, and responsibility is borne within the state. However, the return does not resolve other issues, such as the quality of management and accountability of those who entered into unfavorable agreements. This highlights the problem of the lack of systemic accountability among officials, which Kyrgyzstan has faced for many years.
The politicization of subsoil use, opaque contracts, environmental issues, conflicts with local populations, and rumors of kickbacks all undermine trust in both the state and investors. Strategic resources should not be instruments of political games or pressure, as this affects taxes, the budget, and economic stability.
Although there have been fewer major conflicts around deposits, serious investors are still hesitant to come. The reasons lie in weak geological exploration, lack of state funding, insufficient infrastructure, and brain drain. Without a systemic approach, the industry remains in limbo, despite the presence of specialized educational institutions and professionals.
To exit this situation, it is necessary to develop a long-term strategy for managing strategic resources with the involvement of professionals. This should include not just general discussions about legislative improvements but specific laws regarding resources such as gold, uranium, antimony, and other critical materials, with a clear distribution of roles for the state and prioritization of national interests.
The institutional model is also important. Instead of weak administration through ministries, it is advisable to create state-owned companies to manage various resources. For example, "Kyrgyz Altyn" could handle gold, while other strategic resources could be managed by specialized state companies responsible for extraction and working with investors. This would enhance manageability, transparency, and accountability," noted Kaldan Ernazaroа.
She cited Mongolia as an example, where part of the revenue from resources is directed to a wealth fund, and state control is firmly established. This approach reduces politicization and increases economic returns; for Kyrgyzstan, it could serve as a useful benchmark.
For reference: in April 2024, the Parliament of Mongolia approved a law to establish a National Wealth Fund to manage revenues from natural resources. The goal of the fund is to ensure fair distribution of wealth and invest in infrastructure projects, reducing the economy's dependence on the mining sector.
Mongolian Prime Minister Luvsannamsrain Oyun-Erdene reminded that the discussion of the law lasted more than 30 years. The fund will consist of three parts: a future heritage fund, a savings fund, and a development fund. The first will accumulate resources for future generations, while the second will be directed to support healthcare, education, and housing programs. Major projects will be financed from the development fund.
Every citizen of Mongolia will have a personal savings account to which funds from the savings fund will be credited, managed by the Central Bank. With the adoption of the law, mining companies will deposit up to 34% of their profits into the National Wealth Fund. This law underscores a turning point in the management of Mongolia's natural resources.
The key principle is maximum openness. When society understands that it participates and receives results, trust in the state and companies increases. At the same time, it is necessary to move away from the raw material model and develop processing, at least to semi-finished products, to form industrial clusters.
Selling raw materials does not ensure sustainable growth. Resources must work not only for current revenues but also for future generations. For this, an optimal management model, strong institutions, state control, and a clear understanding that sovereignty begins with how a country manages its subsoil are necessary.
Kyrgyzstan has significant reserves of strategic raw materials; however, only a portion of them actually generates economic and geopolitical value. The remaining resources remain potential assets that have not been converted into development due to institutional and technological constraints. It is time to develop a real strategy to move from the status of a "poor country with rich resources" to a level of a self-sufficient developed country, ensuring natural wealth for the benefit of the people of Kyrgyzstan.
Source: centrasia.institute
