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support, actually has no chances to change the regime by achievement of success at the presidential elections.
It is quite probable that president of Azerbaijan I. Aliyev (or at least the Aliyevs clan) will hold power for a long time. The lack of perspectives to change the ruling regime by the constitutional way under conditions of the social-economic systemic backwardness and of a great gap in levels of income between the elite and the rest of the population result in the growth of social tension. It creates favorable conditions for activities of the extremist forces, which urge towards usage of Islam for political aims and towards seizure of power with its assistance in Azerbaijan.
"Vneshnie svyazi stran Prikaspiya v usloviyakh globalnogo krizisa i interesy Rossii", M., 2010, p.103-108.
R. Bekkin,
orientalist
THE ISLAMIC FINANCIAL MODEL
IMPLEMENTING IN KYRGYZSTAN
In April 2006 the counselor to the then President K. Bakiev and the Manager in the Islamic development bank from the Kyrgyz Republic Sh. M. Murtazaliev had serious words with the author of these lines about short-range plans on Islamization of the total sector of Kyrgyzstan. Such declaration couldn't but set wondering. In spite of the fact that 84% of the Kyrgyz population are the Moslems the Islam influence in the republic isn't so much as, for the example, in the neighboring Uzbekistan or Tajikistan. The fact that the most part of the Kyrgyz population don't employ bank services is evidence of not so much ethnically-oriented economic behavior of the country citizens as a poor financial culture of the society as a whole. For the most part of the
population Islam is a moral factor influencing on value creating in the society.
According to the inquiry in 2003 by the Kyrgyz expert Chotaeva the Uzbeks living in Kyrgyzstan show the maximum consistency in performing the Islamic duty. The second group of the most religious respondents is the representatives of the national minorities: the Dungans, the Uigurs and etc. The third place is for the Kyrgyz: only 25,9% of the respondents declared that they always observed the religious rules. Since the situation had changed little.
It's clear that the number of mosques isn't also the absolute index for the religious population. In 1991 there were 39 mosques but in 2003 - 1600 in Kyrgyzstan. At the same time according to inquires in the different regions of the country carried out in 2003 54,5% of the Kyrgyz declared that they don't go to mosques. Nevertheless, the words of the Manager in the Islamic development bank from the Kyrgyzstan on introducing the Islamic finance methods in the bank sector weren't only good intentions. On 16 May 206 one signed the Memorandum on mutual understanding between the Republic Kyrgyzstan, OAO "EkoBank" (from 2010 this bank is called as EkoIslamic Bank) and the Islamic development bank. The memorandum contains the regulations establishing cooperation mechanism between Kyrgyzstan and the Islamic development bank in banking developing in the country.
One planned to introduce the Islamic finance methods in the country in four stages according to the article II of the Memorandum.
1. The first stage included the Steering Committee forming on the memorandum implementation, the definition of the necessary minimal changes in the legislation to realize the Islamic banking and forming a special unit on the Islamic banking in the structure of "EkoBank".
2. The second stage was "EkoBank" recapitalization and the necessary measure taking to ensure a possibility to participate of all the interested structures in its capital including the Government of the Republic Kyrgyzstan, the Islamic development bank and the other financial institutions of the countries-members of the IDB.
3. Within the framework of the third stage one supposed to adopt normative legal documents being necessary for developing the Islamic financial services.
4. The fourth stage provides for that the Steering committee gave its conclusions and recommendations for the parties having signed the memorandum about perspectives to change the capital of the Republic Kyrgyzstan - the town Bishkek- into the center of the Islamic finances in the region in case of a successful fulfillment of the tasks planned in the course of the first three stages.
At the present Kyrgyzstan is on the third stage of the plan implementing concerning introducing the Islamic methods of financing in the country. Basic normative legal treaties are adopted creating equal conditions for the Islamic and traditional finance institution work. So, on 3 April 2009 the President of Kyrgyzstan signed the Laws "On making additions to the Law of the Republic Kyrgyzstan "About banks and banking in the Republic Kyrgyzstan", "About making changes and additions to the Law of the Republic Kyrgyzstan "About the National bank of the Republic Kyrgyzstan" and others. These amendments open possibilities to use the Islamic methods of financing by the Islamic and the traditional banks having the Islamic "windows". In September 2009 the government of Kyrgyzstan approved "Regulations on insurance according to the Islamic principles (takaful) and "Regulations on stock issued according to the Islamic principles of financing (sukuk)". So, the legal basis is prepared for the developing not only the Islamic banks but also the other Islamic finance institutions and instruments.
The foreign experts give a high assessment for Kyrgyzstan's achievements in the Islamic finance sector development. So, according to the former director of the regional representation of IBD in Alma-Ata, Nick Zainal Abidin, less than two years Kyrgyzstan worked its way which takes more than 10 years for the other countries.
On 12 July 2006 the president K. Bakiev signed the decree N 373 "About pilot project for introducing the Islamic financing principles in Kyrgyzstan" after two months of having signed the memorandum. It was approved to develop the Islamic finance sector parallel with the traditional one. In other words, a dualistic model of economy development was given preference over. All the existing banks in the country were offered a choice: whether to continue realizing interest operations or becoming transformed into the Islamic banks.
The above-mentioned "EkoBank" was selected as the field of the experiment to introduce the Islamic methods of financing or rather its affiliated branch located in Bishkek. The given affiliated branch was practically granted a status of the Islamic "window" in the traditional commercial bank. The state isn't a shareholder of the bank but its leadership was in close relations with the ex-president K. Bakiev and the government. As it's known it's a key success factor in such region as Central Asia. It's difficult to foresee what effect the change of power in Kyrgyzstan will have on the position of "EkoIslamicBank"
In December 2006 the National bank of Kyrgyzstan permitted to use the Islamic methods of financing within the framework of a pilot project of "EkoBank" according to Regulations "About the Islamic principle realization in Kyrgyzstan within the framework of a pilot project". The special committee having worked over the Islamic "window" in "EkoBank" prepared for more than 20 documents associated with the Islamic finance using in economy of Kyrgyzstan.
In July 2007 the president of the country K. Bakiev and the president of IDB, Ahmed Mohammed 'Ali, were present at the official ceremony of the Islamic "window" project opening.
From May 2008 not only the legal but also the physical entities had a possibility to open savings account kard hasan where the interest isn't added for the remains. In August of the same year the bank began depositing sums till calls for based on a treaty of keeping and fixed investment deposits based on mudaraby. Today "EkoIslamicBank" offers many banking services for its clients (both physical and legal entities). Income on some of them (in particular, on investment deposit based on mudaraba) exceeds income on the traditional deposits in the other banks of Kyrgyzstan.
Comparative table on the income on the Islamic deposits and the traditional deposits in the banks of Kyrgyzstan (for 1.02.2009)
Term The Islamic deposits in "EkoBank" Average rate of interest in the main commercial banks of Kyrgyzstan
In terms of soms (% per annum) In terms of US dollars (% per anum) In terms of soms (% per annum) In terms of US dollars (% per annum)
6 months 10,01 10,01 8,92 7,44
12 months 12,52 12,52 12,02 10,73
18 months 15,02 15,02 13,37 12,02
24 months 17,52 17,52
Nevertheless, one should hardly expect that introducing the Islamic methods of financing in the banking sector of Kyrgyzstan will be mass. The most optimistic scenario is creating of the Islamic "windows" by the traditional commercial banks.
The intention of "EkoIslamic Bank" leadership to transfer its experience on financing introducing according to sharia beyond Kyrgyzstan, in particular, in the other states of Central Asia and Russia gives rise to doubt because "EkoIslamicBank" has no enough resources. Bishkek will be hardly give a good run for Alma-Ata's money as the regional center of the Islamic finances when Kazakhstan's becoming active at the market of the Islamic finance services, i.e. to put the fourth stage into practice foreseen by the above-mentioned memorandum on the mutual understanding between Kyrgyzstan, "EkoBank" and the Islamic development bank.
As for the other states of Central Asia then Tajikistan is tipped to achieve success in the market development of the Islamic finance services. There is the working group under the National bank to study and introduce the Islamic financing in the Republic. IDB actively supports the working group. A special unit specializing on developing the Islamic finance products is in one of the leading Tajik banks -"Agroinvestbank".
"Islamskaya ekologicheskaya model'Isovremennost",
M, 2010, p. 272-276.
G. Rudov,
THE WORTH OF SOVEREIGNTY AND THE GENESIS OF POWER IN POST-SOVIET STATES OF THE CENTRAL ASIA
From the time of declaration of independence and disintegration of the USSR, the states of the Central Asia (CA) go through a difficult
