CEU Electronic Theses and Dissertations, 2013
| Author | Musaev, Maksat |
|---|---|
| Title | NATIONALIZATION OF KUMTOR: POSSIBLE CONSEQUENCES FOR THE ECONOMY OF KYRGYZSTAN |
| Summary | One of the biggest and influential companies in Kyrgyzstan became an epicenter of heated debates in the parliament, society and media. Canadian based gold mining company Centerra Gold is now accused of imposing unjust investment terms and of causing environmental damage. In the light of these events, the nationalization of the local subsidiary of Centerra Gold is actively propagated by certain political parties and interest groups. The present work investigated the possible consequences of nationalization for the economy of the country. In order to set a sound ground for analysis the thesis reviewed and evaluated the nationalization experience of the country, the experience at the international arbitration processes, and assessed the performance of the state-owned enterprises. The paper revealed that the policy towards nationalization may lead to negative consequences to the economy for the following reasons: the country does not have adequate experience in managing companies of this scale, high level of corruption in the public sector may degrade the performance of the company, the nationalization will damage the investment image of the country and decrease capital inflows into the country. Based on the current situation around Kumtor, the thesis proposes alternative policy which suggests the government to propose the Centerra Gold other gold fields in the country in return for revision of the current agreement. |
| Supervisor | Horvath Julius |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2013/musaev_maksat.pdf |
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