Shaakeeva Gulbarchyn Turatbekovna, Shakirova Klara Kapanovna ECONOMIC INSTRUMENTS AND ORGANIZATIONAL FOUNDATIONS FOR THE SUSTAINABLE DEVELOPMENT OF THE FORESTRY SECTOR IN THE KYRGYZ REPUBLIC .pdf

ECONOMIC INSTRUMENTS AND ORGANIZATIONAL FOUNDATIONS FOR THE SUSTAINABLE DEVELOPMENT OF THE FORESTRY SECTOR IN THE KYRGYZ REPUBLIC .pdf
Date of publication
04 february 2026
Release
№1, 2026: Scientific discoveries
Chapter
ECONOMIC SCIENCES
Author: Shaakeeva Gulbarchyn Turatbekovna
graduate student
Kyrgyz State University named after I. Arabaev
Bishkek с., Kyrgyzstan
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Author: Shakirova Klara Kapanovna
Doctor of Economics, Professor.o. professors
Kyrgyz National University named after J. Balasagyn
Bishkek c.
ECONOMIC INSTRUMENTS AND ORGANIZATIONAL FOUNDATIONS FOR THE SUSTAINABLE DEVELOPMENT OF THE FORESTRY SECTOR IN THE KYRGYZ REPUBLIC
Key words: forestry, sustainable development, economic instruments, ecosystem services, forest degradation, Kyrgyzstan, financing, institutions, green economy, forest restoration.
Annotation. The article examines economic instruments and organizational
foundations for the sustainable development of the forestry sector in the Kyrgyz
Republic. Forest ecosystems, covering approximately 1.35 million hectares or 5.3% of
the country’s territory, perform essential ecological, economic, and social functions,
including water regulation, soil erosion prevention, biodiversity conservation, and
providing livelihoods for local communities. Analysis of the forest condition revealed
that 70% of forests are degraded, with 30% severely degraded and 40% moderately
degraded. The main causes of degradation include illegal logging (35%), overgrazing
(25%), wildfires (15%), and climate change effects (25%).
The study identified limited use of economic instruments: the state budget covers
80% of forestry financing, private investments account for 15%, and international
assistance provides 5%. Implementation of ecosystem service payments, forest product
certification, and incentive-based taxation could increase financing by 20–25% and
reduce degraded forest areas by 5–7%.
The results indicate that effective sustainable forest management requires the
integration of economic incentives, institutional mechanisms, and community
participation. Applying a comprehensive approach could enhance ecosystem service
preservation by 15–20%, increase local incomes by 10–12%, and ensure long-term
sustainability of the forestry sector.
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