Center for Strategic Assessment and forecasts

Autonomous non-profit organization

Home / Economy and Finance / New technologies in the financial markets / Articles
Ten steps Kyrgyzstan towards Islamic financial centre
Material posted: Publication date: 10-09-2012

Despite some formal similarities, the Islamic economy is not identical to the capitalist. It is more correct to say that the alternative Islamic economy does not exclude the presence she has in common not only with the capitalist, but with socialist economy.

It is necessary to emphasize that in the Islamic economic model helps to overcome the shortcomings of the capitalist and socialist systems of management. This is reflected, in particular, that in the Islamic economy found the Golden mean between the absolutization of private property under capitalism and its almost complete negation of socialism in the Soviet model.

Of course, it cannot be assumed that the notion of absolute property with capitalism, compared to the attitudes in Islam faithful. After all, in Islam in the relations between people protected by the right of ownership no less, and perhaps more strictly than in the West. For example, for a crime classified as theft, Islamic law is punishable by the amputation of the hand. If you imagine that Islamic Bank was established in the Soviet Union, important postulates of Islamic Economics, such as the rejection of usury, social orientation, etc. would be quite atheistic in the command-administrative economy.

Thus, the first step Kyrgyzstan towards Islamic financial centre should take place in the economic sphere, but rather through the liberalization of their economies and through the freedom from ideological prejudice to anything that has the name "Islamic Economics". Because existing obstacles on the way private entrepreneurs are obvious and only the free market of enterprise, trade and free economic relation is able to demonstrate the economic potential of the country. Because the business has no borders and no religion, it is obvious that the introduction of financial products and services of Islamic banking in the Kyrgyz economy, the country will no doubt make a great leap forward in its path.

Step 2 - Financial liberalization and automation

Liberalization in this area means full deliverance and accelerated the reduction of registration procedures and opening Bank accounts for individuals and legal entities in Kyrgyzstan. The minimum amount to open banking accounts in conventional and Islamic banking institutions of Kyrgyzstan shall be established at the lowest level, with the opportunity to obtain Bank cards that should be enshrined in legislation and in the relevant Directive of the National Bank of the KYRGYZ Republic. Banks and other financial institutions dissent or non-compliance with the Directive of the National Bank should lose its license to conduct its operating activities.

Financial liberalization in this case means not only the alleviation of procedure of accounts opening by Banks, but also relief from the state and other controlling bodies (tax authorities, etc.) to the requirements of accounting and maximum limits for withdrawing and depositing cash from Bank accounts. Facilitation of financial transactions should take place in parallel to the tightening of the requirement to legal persons not using the services of a banking institution, perhaps the principal application of relevant tax leverage for these companies, pre-revere to keep their revenues and cash flows "in stockings", rather than deposited in the Treasury of the Bank.
Automation of this sector implies the widespread introduction of modern technical means of reception and transfer payments to major places of trade and places of payments of government fees and taxes, and other payments. To encourage arrival on the market of Kyrgyzstan IT companies and other local companies offering similar software products and technologies, it is appropriate to declare a 5-year exemption from all taxes in the initial years of its work. Among the objects falling under the automation of payment transactions should become the main government offices and main shopping flea markets of Kyrgyzstan, for example trading market "Dordoi". A significant reduction of cash transactions and the transition to automated calculations in these markets will ensure the safety and security of daily payment transactions among market workers, which in turn will raise the current assets of large banks of Kyrgyzstan, the branches of which could provide their services directly within these markets, providing cash-in and cash-out ATMs within walking distance from the shopping areas.

Step 3 – Tax, the liberalization and automation

For the development of any financial centre, including Islamic financial centre and the market of Halal products tax incentive-stimulation of financial market participants and producers of Halal, as well as the removal of bureaucratic barriers is vital. The availability of tax incentives for opening a similar institution, at least Malaysia shows a quick payback and attractiveness of one's own projects. State support for the food industry produces Halal products needed, as all make-NML need tax breaks, but today we see that most of the food Kyrgyzstan produces either for export to neighbouring countries or importing cheap products from his neighbor's CI-Ty, far from producing Halal products. Thus there is a natural growth in consumer demand within the Kyrgyzstan on products certified as Halal, due to the increase in the number of Muslim German population. For example, high-tech companies, and companies producing Halal products in Malaysia of the trade are tax benefits until the exemption from tax for the first 5-10 years. Thanks to this world-famous corporations (in particular, Sony, Panasonic, and many others) opened and open in Malaysia, its production, and the world-famous port in Penang, became an international free trade zone Halal products, generating billions of dollars in the state budget of Malaysia. Moreover, practice so-called "fiscal holidays", that is, exemption from almost all taxes for companies registered in a certain period.

In Kyrgyzstan, however, still has no clear policy in this area to stimulate domestic producers of Halal products. That is why substantial fiscal incentives such as tax Amnesty and exemption from VAT and other taxes for Halal products, in the initial 5-year period of business activity, would transform the economic structure and change the model from import-oriented to export-oriented. In addition there will be a cleansing of the economy of Kyrgyzstan, whose ethical values in production since independence has suffered under the onslaught of free market relations. There is no doubt that today all that we see in our economy has no nravstvennyh or moral values. Moral degradation of society began with the moment when the alcohol producers in Kyrgyzstan started to grow as "mushrooms after rain" without worrying about what is possible from their products destroyed the lives of hundreds of thousands of individuals and families.

And foreign commercial banks were giving easy loans with onerous interest rates and place beyond the heavens for any purpose, not even caring about the business, the debtor intends to invest these funds. The lust for profit, fast and huge profits in a country where there is a high increase of alcohol consumption, were the main incentives for alcohol companies. Unfortunately, the state is raising fees and excise taxes for these companies was their accomplice, and sometimes members of Parliament have become lobbyists for some major alcohol monopolies and banks, as they were presiding over the representatives of these companies. Therefore encouraging the production of Halal products and promotion of healthy foods is of paramount importance for the future prosperity of Kyrgyzstan, because this step will give the movement of investment to new high-tech companies-producers of Halal products, where the quality is not only consistent with the norms of Shariah, but is consistent with other international quality standards (packaging, design and condition of production).

For a financial company and a banking institution that has a window, or branches operating in accordance with the principles of Islamic financing also required the above-mentioned fiscal incentives. That would allow banks, financial institutions, and Halal producers, open slip your business to overcome fear for the success and profitability of their business, which will be offered new banking products and services and products that comply with the principles of Shariah. And that fiscal-ing preferences, spelled out in the legislation can serve as a good shim lever for development in the future in place of the Free Economic Zone "Bishkek" offshore trade zone and offshore financial prices-tra, where companies can register in a simplified order-ke, which may be established Halal Park (free trade zone Halal products). All fiscal reform in this sector can be successfully generated only under one important condition – in the implementation of automation of the process of submission of tax reports for all entrepreneurs and mi-minimal involvement of the human factor in the work of the fiscal authorities.

Step 4 – Administrative liberalization and automation

In the heart of the success of any economic reforms, including, if we take an example from the history of the development of the Singapore reforms of former Prime Minister Lee Kuan yew, lay a couple of factors. The main one of course was the liberalization and automation of all administrative bodies. It was a logical consequence of market economic policies and has shown that liberal economy can peacefully coexist with strict government regulation with proper implementation of high technologies in solving bureaucratic issues. A course for gradual transition to high technology, electronics and telecommunications will help to eliminate all loopholes of corruption in the administrative apparatus. It will also simplify many of the procedures of registration, liquidation and conversion of private company.

Administrative reform should also address the procedure for issuing visas to foreign nationals. When visas are issued, the basis must lie the national interests of the state, the interests of the economy and entrepreneurs. Relief of administrative barriers when opening foreign businessmen joint venture should enable Kyrgyzstan to create a favorable investment climate, taking into account interests of citizens of Kyrgyzstan.


Step 5 – Financial literacy

A modern society cannot remain aloof from the development of global financial markets. To convert Kyrgyzstan into a global financial center, is of paramount importance financial literacy of its population. To become financially literate to every citizen of the KYRGYZ Republic, requires the introduction into the educational system new approaches in teaching. Thus, the effect of their introduction will be reflected so that the work with shares, divi-dengami, income from operations with securities should be for Kyrgyz citizens the same standard as secondary education.

Reforming the stock market of the KYRGYZ Republic is impossible without targeted promotion of financial literacy through systemic-mechanical discussion of the various issues in the media. Today, much to our surprise, not even one transmission to domestic TV channels devoted to business and financial literacy. But it lacks an abundance of entertainment programs and shows. In such a situation, the public support in the media coverage of investment issues and adequately management of assets is essential because of the lack of news broadcasts and channels. Today there is an urgent need to educate people the right to invest their savings. Because Kyrgyz society is suffering from unwise and inappropriate use of cash accumulated in the course of his life. The majority of citizens of Kyrgyzstan most of their savings instead of investing in the real estate market or the domestic industrial enterprises, spend on buying used cars from Europe, turning the country into a scrap yard, or to conduct the ceremony, various toys and feasts end, which never happened. But some citizens are debtors of commercial banks, trying to pay the costs of holding this event. Suffer from financial illiteracy businessmen, traders markets and migrant workers, when all the operations carried out in cash and keep their savings in houses, sometimes becoming victims of fraud and robbery.

The advent of modern technology makes it easier to date people to enjoy many banking and financial operations and services-Gami, but unfortunately its popularity is low among the citizens of Kyrgyzstan, in connection with the financial illiteracy of the population. Hence arises the problem of theft and non-payments by the population, companies that provide utilities and services electricity. Since in both cases the ima-et the human factor and the lack of payment opportunities, using modern technology.

The task of improving financial literacy can not only lie on the shoulders of the state because the business community itself must be interested in the development of the stock market and consequently to increase the level of financial literacy. High financial literacy and awareness about the securities market will allow the company s carry out local placement shares, spending more transparent corporate policies that are consistent with international standards of financial-howl and book-keeping. The growth of corporate identity is another next step in the development of Kyrgyzstan as a financial center.


Step 6 – Corporate governance Reforms and the development of corporate identity

The corporate sector in the XX-XXI century has undergone colossal changes, together with the development of global financial markets. Developed and some developing States carried out a huge work to reform the corporate sector in order to make it more transparent and attractive to domestic and foreign investors. The development in the sphere of corporate governance is particularly important for the development of any financial centre. Corporate spirit of the modern political leaders of the state have to move the main reforms of Kyrgyzstan. Unfortunately today's politicians can't tell debit from credit or share of the bond, while from the stands does not stop foaming at the mouth to declare that Kyrgyzstan can peresmotret agreement with the Canadians, after "train long gone" and mysteriously the share of Kyrgyzstan in Centerra was transformed from 67% to 33% and where the share of profits, unfortunately, did not affect the distribution of the finished products produced at Kumtor. Corporate law, unfortunately, is safely forgotten as sa-mostojatelnym discipline in many higher educational institutions of Kyrgyzstan.

The lack of low corporate identity has led to controversial leaders nationalized the mobile operator "MegaCom" in turn one after the other was behind bars. Such owner, as the state is unable to put their hands the management and control of a large company on the rails of stable development and increase profits. Here to the aid can come only knowledge of the basics of corporate law and Islamic creeds. It is known for example that companies of Malaysia have Sharia councils, which are the Supervisory and control bodies, with banks and other financial institutions. In every Islamic Bank the members of the Board of Directors is tested for compliance with the Shariah and other ethical standards. It is a measure of how effectively implementation in corporate culture of ethics, morality and moral values promoted by the Islamic creed, which certainly leads to progress. Strict adherence to corporate and in the field of Islamic law has allowed Malaysia to the banking sector to take the lead of South-East Asia.

However Kyrgyzstan is at the moment unable to follow even the unwritten human law, to the example set by their Parliament. In the case of "Megacolon" the state having made the nationalization, decided to turn the private corporate structure almost to the "plant named after Lenin" Soviet model, where a leading and dominant role starts playing "Lord-a feudal Lord with an army of relatives." This form of corporate governance, if you look at history, was characteristic of the first companies to manufacturers in the late 19th to the early 20th century in Europe and the USA. Then there were strong family and clan ties in production. As a rule, the company belonged solely to the Director, in which advisors and employees were bound by kinship or belonged to the same species and all decisions were made individually. With changing legislation in the UK in the field of corporate law and the growth of industrial enterprise and technology, the 20th century revolutionary and radically transformed corporate relations in society. As Western corporate system was based on the Anglo-Saxon legal system, the growth of corporate identity soared in those countries where a huge impact was the Anglo-Saxon system of law (UK, USA, Australia, Singapore, Malaysia etc.).

Unfortunately, the Soviet period has had negative repercussions on the countries of the USSR in terms of development of corporate law because it completely denied the existence of private property. Today, unfortunately, Kyrgyzstan is reaping the benefits from a lack of corporate thinking on the state level, for this reason. The Soviet system of civil law, unfortunately, has not worked for effective corporate governance, as well as the legislation and practical execution of the requirement of corporate law remained only on the conscience of the leaders themselves. Now, however, we understand that to manage alone cellular company and the plant named after Lenin, and that was it. The basis of the modern theory of corporate governance is more basic approach. Among all the basic Agency theory is the relation between Directors and the Corporation where the Directors are entrusted with the governmental entities and the shareholders of the Corporation or investors.

Remuneration in this regard is considered as a payment for actions in the best interests of the cor-poration and its shareholders. In many joint stock companies of Kyrgyzstan has not developed a policy regarding the remuneration paid to the members of JSOC Bashneft Board of Directors. Among the main responsibilities of the Board of Directors must be bona fide and reasonable execution of duties in the interests of society as a whole. This means that we can not allow personal interests of the Director took up INTA over the resources of society. It is also prohibited to use the property and who-the ability of the company for personal purposes and use the obtained from the society information and business opportunities for personal you, years. As for the "MegaCom", then the status of the Director and company's legal status remains unclear. It was known that the company was already nationalized, but the salary and remuneration to the Director personally installed by the same Director, without the consent of any of the members of the Board of Directors.

That is, if we follow the logic that the company is public, it is obvious that the remuneration must be established by special law by the head of Government or by the Parliament. However, the Director continued to receive the same money wage as in the old days, when "MegaCom" was a joint-stock company, fully owned by private investors. Thus, the mediocrity of government officials emerges outside because their wines with the same success can be proven in court, because with their acquiescence decisions about the amount of compensation, and absent any postanowienie or legislative decision regarding the status of the head of public-private "two-headed mutant" called "MegaCom".

However, the Outlook still seen optimistic. In the conditions of transition but with the socialist to the market economy of capitalism, the above-mentioned "costs" are inevitable. This will give impetus to further vsmysle of the value of legal mechanisms of economic management in a state of law and the role of corporate law in economic development.

Step 7 – Financial offshore

An offshore company is a reliable and, importantly, the legal instrument used by businessmen. Offshore company related to a resident company, allow to nearly eliminate or greatly reduce the amount of income taxes. It is therefore unsurprising that while investors are rushing to invest only in offshore areas of Malaysia, Cyprus, Singapore, but interest in Central Asia is low. The Central Asian region with the ski on the other hand has a favorable geopolitical and financial the new location. In the North of Central Asia is Russia and other CIS countries, where underdeveloped financial market. Jurisdiction of such countries as Russia does not allow to develop the Islamic capital market, because of ideological prejudices and lack of understanding of Islamic financial products. Therefore, the prospects of establishing an Islamic financial structures are seen there misty. But the demand on the capital market at fixed Islamic bonds and other instruments is huge. Today, commercial banks and financial companies of the CIS after the South-East Asia and the Middle East covered by the search for reliable financial tools of investment and liquidity.

Europe and the United States are already causing concerns among financiers, in connection with the riskiness of investing in these countries issued securities. In this situation, Kyrgyzstan could take advantage of geographical location to create a transnational offshore platforms for the placement of Islamic securities and financial instruments. That is, the Kyrgyzstan will attract investors and will be a venue for the placement of Islamic bonds (sukuk) and many other tools, thanks to its attractive legislation, winning the competition in creating "smart" laws. It is, for example, the creation of an offshore financial centre, where companies from Russia will be able to accommodate Islamic bonds (sukuk) in rubles or dollars, and investors from the Middle East will be the buyers (investors) of these sukuk.

In the same way, companies from the Middle East can place sukuk, other neighbouring countries will be able to redeem these securities. That is, Central Asia could become a kind of bridge connecting the East, West, Russia and China, and the Foundation of this bridge will be beneficial taxation conditions when the placement of securities, the establishment of SPV companies and securities trading, as well as modern high technology and communication networks.


Step 8 - the reform of the religious institution CU

Financial sector reforms, specifically the introduction of Islamic financial products will inevitably require a large number of specialists and great-wavedom with quality education in Islamic law. The bodies of the spiritual administration of Kyrgyzstan will have to undertake some economic function in the development of the industry, improving their human resources and introducing more managerial approach to the organization of their event. Spiritual administration of Muslims of Kyrgyzstan should be more focus on systemic organization of the pilgrimage tourism, as well as on international economic cooperation with other foreign Hajj funds and spiritual administrations of the countries of the Middle East and Southeast Asia.

Because consistency in the organization of the pilgrimage culture and increases transparency, which in turn leads to a reduction of risk of corruption manifestations among dishonest scams. For these purposes, it is advisable to establish the Department of Economic DOOM CU. When the reform of the organization of the Hajj-the pilgrimage this area should also not lag behind the achievement of modern technology and communication. For example, banking institutions of Kyrgyzstan in the provision of its services could facilitate the payment of the Hajj through the creation of special funded Bank products, and modern Internet technology has long been allow you to submit applications and documents for registration for Hajj. It would be much easier the procedure of registration of pilgrims from remote regions of the country. Unfortunately, reform of the mufti left: Chubak ajy Jalilov, not adequately understanding and support among non-progressive parts of the Muslim community of Kyrgyzstan who wish to revert to the old corruption mechanisms registration of pilgrims.


9 Step Banking reform and foreign exchange reserves

Bank reform is a necessary step for the recovery of the Kyrgyz economy. The primary object of reform should be a national Bank of Kyrgyzstan. Major reforms that should affect monetary policy through foreign exchange reserves and coinage of gold coins of various denominations to regulate the money supply of the population and improved methods of regulating Bank interest rates and refinancing rates. The reform policy of the National Bank was long overdue. She in fact never reformed after the collapse of the USSR. The mechanisms of the decision still remain the old Soviet command-administrative. Which is reflected in the lack of team spirit, leadership initiative in carrying out fundamental reforms. In addition, the laws governing the status of the National Bank of the KYRGYZ Republic to this day forbid him to be a full participant of the financial market, especially when it comes to the introduction of new types of financial services or the development of alternative and innovative financial instruments market. The bureaucratic framework of the chief banking regulator of the country do not allow to undertake the development of the market for Islamic banking services. Unfortunately, the short-sightedness of leaders of the Bank of Kyrgyzstan for a long time will slow the arrival on the market of the country, for example, Islamic insurance companies – Takaful.

Future reforms may also require the establishment of an Islamic financial market liquidity and commodity exchanges, where trading transactions will be carried out on the basis of the scheme Murabaha Commodity (Commodity Murabaha) and Tawarruq (Tawarruq). The uniqueness of such exchanges and schemes is that banks and entrepreneurs have the opportunity using Islamic contracts, obtain liquidity through such deals in the course of electronic trading, avoiding the physical delivery assets that are tangible. This asset can be any commodity which is produced in the country, the production of which has been expended some effort (energy, intellectual labor, depreciation). For example commodity exchange Malaysia uses as such asset palm oil. Kyrgyzstan could create a unique first of its kind in the Central Asian exchange of water and energy resources. More precisely hydropower exchange, asset transactions which are kilovat the electricity generated by several hydro power plants in Kyrgyzstan. Or as an option asset can also be fresh water produced by the plant for the production of beverages. All these reforms must be implemented in parallel to the creation of a market for Islamic bonds (sukuk).

The build-up of interest-free financing through the Islamic capital market should be the replacement borrowing by issuing bonds. Since it is obvious that the bond issue does not justify himself, as occupying the at interest increases the risk of inflation and default, since the top payout percentage of the coupon rests a great burden on the already fragile budget of Kyrgyzstan. Instead of borrowing t-bills, STB, inherited from the Soviet Union Kyrgyzstan could go the way of the Middle East and Southeast Asia, where modern markets practically have not remained government bonds, and are used only Suva is noted Islamic bonds sukuk, the advantages of which have long been known to many countries even in the West. The introduction of metal accounts in commercial banks will give the opportunity to cast ingots of "Kyrgyzaltyn". The Kyrgyz citizens could keep their money in gold. Since it is also a tool to generate revenue and control of the money supply in the hands of the population. Foreign exchange for passes of Kyrgyzstan to this policy can significantly replenished, which would give the economy and the exchange rate of the national currency stability.

The important point is that the modern world monetary policy goes towards replenishing the national reserves, which are supposed to be providing for the issue of the money supply. It is therefore important gold reserves and the rate of growth of the money supply, which in turn may affect inflation. The creation of the aforementioned financial institutions and exchanges have a positive effect on the stabilization of prices in the energy market, as they will be prevented speculative mechanisms. Such exchanges can also be established by analogy to the agricultural produce market to establish fair prices for the products of farmers and pastoralists.


Step 10 – create a regulatory framework for the Waqf Funds and the Hajj-Fund of Kyrgyzstan (introduction of the Institute of top managers and top imams)

In 2011, thanks to well-conducted organization of Hajj for the first time in the budget of Kyrgyzstan was assessed 1 miilion 400 thousand dollars. It is obvious that the amount collected in 2011, including the cost of the Hajj pilgrimage in the amount of 2600 dollars for each pilgrim with puts a considerable amount of 13 million dollars. Obviously, this NEMA-bark may be administered by professionally operating a Hajj Fund, highly qualified personnel top managers, financiers and lawyers. If you take the total number of Kyrgyz pilgrims willing to perform Hajj over a 5 year period and are ready to book your seats in advance for 5 years, then the amount of the share capital, or pool of collected money of the Fund reaches 65 million dollars.

It certainly gives a chance to create a large Hajj-Fund under whose control may be the savings of citizens of Kyrgyzstan and it is possible these assets to invest in the real sector of the Kyrgyz economy, or to invest in gold bullion, the market price, which according to analysts, will only grow in the future. Still one of the most important institutions of Islamic law, which is necessary to Kyrgyzstan is the Waqf Fund. In the history of Central Asia have long been known to the people of Waqf funds Bukhara and other cities. Today, the state virtually tax all charities, as it does not provide mechanisms to exempt them from taxation, while the Waqf would significantly reduce social tensions and help the development of education in rural areas. According to the definition of legal scholars “In and f” it is the property, the ownership of which by the will of the founder is limited to the use of all or part of the income or product.

This property can be passed as a separate legal person, group of persons or intended for use in the public benefit. The Waqf has a strictly defined purpose and often has charitable character, and if, for example, he bequeathed to the de-the children of the founder, after their death, the Waqf is not transferred to their heirs, and transferred in favor of the poor. Today in the world there is a huge amount of Waqf, the largest of which are located in Turkey, Tunisia, Middle East and Southeast Asia. It exists in North America in the form of special funds, mainly for religious and charitable. There are tens of thousands of foundations in the United States alone. Famous hadith, which describes the purpose of this Institute. According to a hadith narrated that Ibn Umar, may Allah be pleased with them both, said, "Having the earth after [the conquest and partition of] Khaybar,' Umar, Allah be pleased with him, came to the Prophet, sallallaahu ' alayhi WA sallam, to ask him for advice about it, and said, "O messenger of Allah, I have got land in Khaibar, and I have never had property, more valuable than [the land]. What'd you say I should do with it?" [The messenger of Allah, may Allah bless him and welcomed-em] said, "If you want, saveway as the basis of Waqf and give sadaqa [due to the fact that it will bring you to]". And ' Umar began to give sadaqa, [saying], what [this land cannot be] neither sell nor buy, nor bequeath or to give. [As for the income it brought,] Umar [directed them to provide] assistance to the poor, relatives and travellers, for [freeing] slaves, for [expenditure] in the way of Allah, and for [the reception of] guests. If the Manager [of such property] to eat [what it brings] within a [reasonable] or feed his friend without getting [any profit], it wouldn't be anything bad." Generally, a Waqf can be religious educational institutions the deposits or buildings of schools, kindergartens for children. Also known Waqf funds of books, agricultural machinery, cattle, shares and cash. Is apparent that the benefits of implementation of this institution in Kyrgyzstan, most in connection with the increasing number of homeless and orphans.

The state, if itself is not able to ensure social well-being of vulnerable people is obliged at least to contribute to foreign charities by creating a regulatory framework for seamless recording and providing tax benefits to such funds.

In the long term, the gradual functioning of the aforementioned institutions will be able to stabilize the economy and to smooth social tensions, emerged the best after the well-known conflict. It is for this needed focus-the management Board of action in the political arena of Kyrgyzstan to explain the essence of these economic reforms. Unfortunately, the disunity of the Muslim Ummah of Kyrgyzstan, for example, scandals with the organization of the Hajj pilgrimage shows a low level of understanding of Islamic economic reforms. For many people the Waqf Fund is associated with the corruption diagram, rather than the institution of Islamic law. And only the arrival of the new young clergy of the religious elite and the Islamic political organizations and parties in Parliament, where they will represent the interests of a unified Muslim Ummah of Kyrgyzstan to guarantee the success of the aforementioned reforms.


Daniyar Mamyrov


RELATED MATERIALS: Economy and Finance