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 This email address is being protected from spambots. You need JavaScript enabled to view it.
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.