The Cluster Law in Kyrgyzstan: A Powerful Tool for Development Still Waiting to Be Unlocked

Why the Cluster Law Matters for Fast and Sustainable Development

A tourism cluster is built on a collaborative approach where local communities, private investors, and the government work hand in hand to develop a region. This model, proven effective in many countries, could become a game changer for Kyrgyzstan — especially in promising areas like Issyk-Kul or Jeti-Oguz.

The cluster approach:

• Fosters innovation and boosts competitiveness by bringing together actors from the same sector.
• Creates economic momentum by encouraging local entrepreneurship and synergy among businesses.
• Attracts investment by providing a more structured and profitable environment.
• Drives infrastructure development: roads, lodging, waste management, renewable energy, etc.
• Ensures fair distribution of benefits among all involved — from local residents to investors.

Why Is the Ministry of Economy Struggling to Embrace It?

Despite strong political will, the law’s implementation is stalling for several reasons:

• Short-term thinking: A cluster is a long-term strategy, while public administration often focuses on immediate results.
• Lack of intersectoral coordination: Clusters require collaboration between various ministries (Economy, Tourism, Environment, Transport, Culture), which is not yet in place.
• Resistance to decentralization: Clusters promote local governance, which may be seen as a loss of control by the central government.

What Needs to Be Done to Move Forward?

To unlock the potential of the Cluster Law, several actions are needed:

• Raise awareness among policymakers, using concrete case studies and success stories from other countries.
• Train civil servants on the principles of clusters and their long-term economic impact.
• Launch pilot projects: for instance, the Kyrgyz Mountain Cluster Association is already working on initiatives in the Issyk-Kul region, especially around Jeti-Oguz.
• Actively involve local stakeholders: DMOs, tour operators, CBTs, artisans, and accommodation providers — the ones who best understand local needs and realities.

Clusters aren’t just a trendy buzzword — they’re a new way of thinking. This isn’t just about growing tourism, but about developing regions with a comprehensive, collaborative, and sustainable approach that builds on local strengths and partnerships. In a country like Kyrgyzstan, with so much untapped potential, it's time to shift from words to action.