We landed in Bishkek, Kyrgyzstan, with the usual hopes of finding adventure and opportunity. Expectations were muted after seeing so many far-flung places before which held so much promise, but didn’t deliver. To my surprise, Kyrgyzstan would be different.

The plane touched down in Bishkek’s Manas International Airport at 04:00, which was dated but functional. The drive into the city center began with a smooth new tree-lined road, which apparently was built the previous year in preparation for the Nomad Games. The streets of Bishkek were well-lit and organized, and the buildings reminiscent of a 1970s USSR but with a touch more neon lighting. It was exciting to see highway signs pointing to silk road cities such as Tashkent and Almaty, stirring up ideas for an exotic road trip.

The intersection of history and geography in Kyrgyzstan is part of what makes it a place of such intrigue and opportunity. As a former-Soviet republic, the Russian influence is very evident, with the widespread use of the Russian language, Cyrillic alphabet, and Soviet architecture. Its large border with China shines through in its cuisine, with hand-pulled noodles and meat-filled dumplings as a delicious starting point to experience Kyrgyzstan’s culinary offerings. The 24/7 energetic spirit of the city with seemingly no rules on opening hours, and pubs continuing to serve food and drinks well after sunrise, reaffirmed that I was indeed in Asia. This was certainly no sleepy, quiet city. A visit to Osh Bazaar, and to Tzum — a sort of flea market built as a mall — highlights a deeply ingrained trading culture like you would find in Turkey. Even the heavy hand of communism could not dampen the Kyrgyz entrepreneurial spirit. Osh Bazaar is overflowing with exotic spices and dry fruit, and the sellers understand commerce and salesmanship. Unlike in other parts of the former communist world, the Kyrgyz people understand customer service, and the treatment received as a customer was always exceptional.

Scenery and nature are major highlights for most visitors to Kyrgyzstan. Lake Issyk Kul, a few hours from the capital, is the world’s second-largest alpine lake. At nearly 6300 square kilometers, the lake is dotted with towns around its perimeter, and buzzing with life and a sense of emerging regional tourism. I have no doubt that this will increase in the future, but I hope it does not spoil the charm of the place. The country is mountainous, and the beautiful snow capped peaks could be mistaken for the Swiss alps. Within 45 minutes of Bishkek you can climb some of them at Ala Archa national park. There is even a developed ski resort at Karakol, overlooking Lake Issyk Kul.

Something must be said about the Kyrgyz people, their openness, and their hospitality. It wasn’t possible to go for more than an hour without experiencing it. Stopping to look at a map invites people to come help you find directions. The locals are interested in visitors, and were always enthusiastic to show us around, while refusing anything in return. At one point I stopped at a busy bakery to pick up some pastries and a man insisted on buying us all the available offerings. He then offered a hug and sent us on our way with his best wishes.

The energy of the locals extends to the country’s nightlife, with an emerging culture of microbreweries, experimental pubs, and clubs — many of which never seem to close, and are busy even on weeknights. As far as the outskirts of the small town of Balykchy, a roadside restaurant called Shafran turns into a disco after 9pm. This seems to be a recurring theme in Central Asia, and if a restaurant has two floors, the upper floor is bound to have music and dancing after a certain hour. This is a very far cry from the quiet conservatism of countries like Azerbaijan or the defeated feelings of perpetual depression in Moldova.

There is a small but tight-knit ex-pat community in Bishkek, including quite a few westerners, who are also convinced by Kyrgyzstan’s prospects. Some are working for the local universities, and while they only intended to stay a short time, have ultimately extended their stay for the past 4–5 years and longer. Others are there for business, including one who shared his fascinating experience in starting a [soon-to-be] chain of restaurants in Central Asia, which began in Bishkek. Several others were of a similar mindset, and had been accelerating the growth of internationally-minded bars and cafes in Kyrgyzstan.

Part of the attraction of Kyrgyzstan is that it is the only democracy in the region. While the other “Stans” are under firm control of legacy political leadership from Soviet times, and neighbouring China maintains single-party rule, the Kyrgyz people have ousted presidents when there have been concerns of rigging, and continue to hold democratic elections (including the most recent one in 2017). It’s worth mentioning that these alternative systems might be producing stability and positive results, and that our visit to neighbouring Kazakhstan showcased a thoroughly modern, developed, and impeccably clean country with growing oil, agricultural, and financial sectors. However, the openness of Kyrgyzstan has definitely attracted many creative thinkers and scrappy entrepreneurs.

Kyrgyzstan offers the most attractive tax regime in the region, and the lowest tax burden in the Eurasian Customs Union (EACU), with a flat 10 percent rate on both personal and corporate income. The free-floating currency with an absence of capital controls allow the domestic economy, which is heavily dependent on trade, to naturally adjust to shocks, and without impediments to capital flows for business. The Kyrgyz and Russian Cyrillic alphabets are relatively easy to learn, and this lends itself to an easier path of commerce straight to China’s doorstep.

The economy of Kyrgyzstan has seen GDP growth average more than 4 percent for the previous few years, with growth expected to slow somewhat for 2018–19. However, this has been achieved recently with low inflation (3.2% in 2017 and 0.4% in 2016). During this period, the current account deficit decreased significantly. The fiscal deficit is covered by foreign aid, and should continue to recede as the technical acumen of the tax authorities improves. One point to note, is that in 2017, Kyrgyzstan’s land registration services were recognised by the World Bank’s Doing Business Report as among the best in the world. This makes the country especially conducive to a shift in the tax burden towards a land value tax, away from income tax, were this to be on the political agenda. The government’s fiscal concerns make the transparency of an LVT even more attractive. In turn, this highlights the possibility to promote The New Physiocratic League platform in Kyrgyzstan.

Kyrgyzstan is still a relatively low income country, with a GDP per capita adjusted for PPP still under $4000, which means ample room for growth. It also has not suffered from an overvalued currency and Dutch Disease, which has afflicted some of its resource-rich neighbours. Its companies are privately held, as one of the earliest post-Soviet reformers, and its publicly listed companies, rumour has it, have shockingly low PE ratios.

Sandwiched between rapidly growing China and wealthy Kazakhstan, and given the outstanding qualities this country has, one might expect stronger growth from Kyrgyzstan. The free movement of goods, capital, and labour that the EACU provides should promote convergence of economic output, while Kyrgyzstan’s border with China and the attractive Kyrgyz tax regime should provide further impetus for growth. The mountainous terrain indeed creates some challenges for development, however it would not be the first nation to carve out a prosperous alpine home. Perhaps it is just a matter of time and marketing before the world turns its eye to this gem of a country. Or perhaps its landlocked position necessitates an even deeper expansion of sound policy to ensure its prosperity.

Kyrgyzstan has the essential ingredients for a prosperous future, and we would like to see the platform of The New Physiocratic League implemented to ensure that it happens. These are policies which also ensure that the prosperity is accompanied by a preservation of the beautiful culture, environment, and way of life — all of which make Kyrgyzstan so precious.