Despite Kyrgyzstan's solid economic growth up to 2009, lack of transparency, corruption, and the inconsistent and selective enforcement of the law have plagued the country's economic development. Observers argue that a focus on constitutional crafting shifted the attention of both politicians and the public away from fighting corruption, while new legislation had been put on hold due to political instability. However, tackling corruption has been on the political agenda in Kyrgyzstan for some time now and has formed the backbone of electoral campaigns, the 2005 Tulip Revolution and the spring 2010 ousting of former President Bakiyev.

Positive developments in relation to corruption and investment:

• In 2005, Kyrgyzstan ratified the United Nations Convention against Corruption and established the National Agency for the Prevention of Corruption (NAPC).
• In early March 2011, Kyrgyzstan achieved full compliance with the Extractive Industries Transparency Initiative (EITI) principles and criteria, which should ensure increased transparency over its extractive industries.
• Former President Bakiyev launched a new Anti-Corruption Strategy and its implementation Action Plan in 2009, designed to fight graft in government, education, health care, business, and law enforcement. The strategy highlights the importance of collaboration with both local civil society groups and the international community in fighting corruption.
• The former interim President, Rosa Otunbayeva, has signed a decree in September 2010, requiring polygraph testing for a number of positions, including the Financial Police, the Customs and the Tax Service, to ensure recruitment of 'clean' state employees. 
• The former government also established a one-stop shop licence and permits office under the Ministry of Economic Development and Trade, which assists investors with bureaucratic procedures.

Risks of corruption:

• Corruption is ingrained in government structures, and paying a bribe is a normal part of everyday life. Trading across borders, paying taxes and obtaining licences for standard business operations are highlighted as some of the hardest factors to deal with in terms of administrative rigidity.
• There is a lack of clarity between the responsibilities of different anti-corruption agencies, a lack of agency coordination, and a lack of practical corruption-specific training of public institutions and employees.
• The Kyrgyz legal and regulatory environment is still developing and remains highly bureaucratic, inconsistent and fraught with corruption. Despite hundreds of arrests based on suspected official bribe-taking and embezzlement, there have been no successful prosecutions under the corruption section of the Criminal Code.
• Due to potential legal complications and judicial deficiencies, it is recommended that companies include a provision for international arbitration within their contracts.