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In its first two decades of existence, the Government of Kyrgyzstan officially known as the Kyrgyz Republic transformed the core sector of its economy — agriculture — by abolishing state-owned and collectively operated production enterprises in favor of privately owned and operated smallholder, peasant farms and garden plots.
While the post-Soviet period was ushered in by a short period of economic collapse, after the more privatized agricultural operations were established, average rates of growth were among the best in Central Asia. Poverty levels, while still significant, began to decline in the late s. Growth in Kyrgyzstan faltered during the — global economic downturn, and an outbreak of political instability in raised uncertainties about the future.
While water and land use issues had reportedly fueled earlier conflicts between Uzbek and Kyrgyz populations, the cause of the conflict was in the view of some reporters more complex, reflecting broader concerns related to political power and economic opportunity.
However, a new government has made efforts to restore order and is likely to continue to respond to what seems to be a strong consensus that new initiatives are needed to boost agriculture-based economic growth to levels high enough to further reduce poverty.