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RESOLUTION OF THE CABINET OF MINISTERS OF THE KYRGYZ REPUBLIC

of September 4, 2024 No. 542

About the organization of clusters in the Kyrgyz Republic

For the purpose of execution of the resolution of the Cabinet of Ministers of the Kyrgyz Republic "About implementation of cluster policy in the Kyrgyz Republic" of April 29, 2023 No. 231 and practical realization of the state investment policy, ensuring efficiency of private and state investments in the Kyrgyz Republic, according to articles 13, of the 17th constitutional Law of the Kyrgyz Republic "About the Cabinet of Ministers of the Kyrgyz Republic" the Cabinet of Ministers of the Kyrgyz Republic decides:

1. Approve Regulations on the organization of clusters in the Kyrgyz Republic according to appendix 1.

2. Approve methodological basis of cluster development of economy of the Kyrgyz Republic according to appendix 2.

3. Recommend to business entities to be guided by the Regulations on the organization of clusters in the Kyrgyz Republic approved by this resolution.

4. This resolution becomes effective after seven days from the date of official publication.

Chairman of the Cabinet of Ministers of the Kyrgyz Republic

A. Zhaparov

Appendix 1

to the Resolution of the Cabinet of Ministers of the Kyrgyz Republic of September 4, 2024 No. 542

Regulations on the organization of clusters in the Kyrgyz Republic

1. General provisions

1. This Provision is developed for the purpose of creation of conditions for development of clusters in the Kyrgyz Republic.

The provision determines procedure for creation of the clusters supported by the state, forming of governing bodies with participation of state regulation, implementation and the organization of activities of clusters for the purpose of growth of rates of sustainable development of the Kyrgyz Republic.

2. Determination of cluster

2. Cluster - set of the subjects of economic activity connected by the cooperation relations of functional dependence within creation and (or) realization of competitive goods and services.

The participant of cluster - the subject of economic activity and the organization registered in the territory of the Kyrgyz Republic which activities correspond to industry specialization of cluster and signed the agreement with governing bodies of cluster on participation in cluster.

Participants of cluster are the subjects of economic activity and the organization combined by production chain or industry specialization in one or several allied industries which joint activities are directed to increase in cost efficiency and effectiveness of activities of each participant at the expense of high extent of their cooperation connected by value added chain.

3. Purpose, tasks and principles of cluster activities

3. The purpose of cluster activities is creation, development and support of competitive environment in the course of interaction of participants of cluster.

4. Clusters can be formed independently on the basis of voluntary initiatives of subjects of economic activity of the Kyrgyz Republic as a result of market mechanisms without participation of the state, and also at the initiative of the state or municipalities of domicile on the basis of provision of certain incentives.

5. In case of the organization of cluster on the basis of voluntary initiatives of subjects of economic activity of the Kyrgyz Republic participants of cluster independently determine forms and methods of development with compliance with law of the Kyrgyz Republic.

6. In the cluster formed at the initiative of the state or municipalities of domicile, priorities, the purposes, tasks and the list of participants of cluster, and also governing bodies are determined by industry authorized state body. With participation in development of cluster initiative of contribution of the international organizations of development or financial institutions, governing bodies of cluster join also authorized representatives of data of the organizations.

7. After determination of all parameters - as a result of dialogue of the state and representatives of business community, participants of cluster development of cluster by limited state intervention and limited intervention of municipalities of domicile is provided.

8. Can act as participants of cluster:

1) legal entities, and also associations of legal entities who are subject of economic activity, registered according to the legislation of the Kyrgyz Republic;

2) educational and (or) educational and research institutions which activities are aimed at providing development of cluster;

3) representatives of authorized state bodies and international organizations.

9. Participants of cluster participate in the management of cluster according to the procedure determined according to the charter of cluster and the legislation of the Kyrgyz Republic.

10. Activities of governing bodies of cluster are regulated by the charter of cluster or other internal documents of cluster.

4. Main objectives

11. Creation of higher productivity in the identified clusters.

12. Increase in efficiency of chains of value added.

13. Receipt of the income in case of the smallest costs by economy in expenditure of means and increases in efficiency of their use.

14. Transition from raw export to creation of chain of value added with high value added in the allocated priority clusters.

15. Implementation of innovations and advanced technologies in all links of chain of value added.

16. Support of investment institutes.

17. Forming of inclusive steady institutes of management of clusters.

5. Basic principles

18. Share in the market of at least 10%, except for the new created companies. The share can be determined as in the level which developed for the beginning of work of cluster, and in the planned level for 3-5 years from the moment of the beginning of work of cluster.

19. The participants who are part of cluster compete as with subjects of external environment, and among themselves within cluster taking into account rules of cooperation and interests of cluster.

20. Each participant of cluster in case of observance of the certain rules established in cluster can leave on own initiative its structure or enter taking into account obligations owing to the received resources, services, technologies, technical assistance and incentives.

21. Participants undertake obligations on interaction with other participants of cluster, keeping legal, commercial and production and technological independence.

22. The relations between participants of cluster shall promote achievement of common goals of cluster.

23. Participants keep freedom and independence in the activities, at the same time having opportunity to transfer to the general level of regulation the solution of number of questions on activities coordination.

24. Changes in methods of conducting production, different innovative processes, and also incentives of cluster shall be available to all participants of cluster.

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