evidence: International disputes: territorial dispute with Tajikistan on southwestern boundary in Isfara Valley area Climate: dry continental to polar in high Tien Shan; subtropical in southwest (Fergana Valley); temperate in northern foothill zone [...] Overview: Kyrgyzstan is one of the smallest and poorest states of the former Soviet Union. Its economy is heavily agricultural, producing cotton and tobacco on irrigated land in the south, grain in the foothills of the north, and sheep and goats on mountain pastures. Its small and obsolescent industrial sector, concentrated around Bishkek, is heavily dependent on Russia and other CIS countries for customers and for inputs, including most of its fuel. Since 1990, the economy has contracted by almost 40%. Kyrgyzstan's inflation was high in 1993, about 23% per month, but rates were declining at the end of the year. Kyrgyzstan introduced its national currency, the som, in May 1993, it has privatized 28% of its former state assets, and plans call for a massive voucher privatization in 1994. Although Kyrgyzstan will receive relatively large flows of foreign aid, ongoing economic restructuring will continue to be painful with an anticipated increase in unemployment as uneconomic enterprises close. President AKAYEV will be under strong political pressure to backtrack on some reform measures.