Öz In this survey by referring to the factors leading to the collapse of socialism, it is emphasized that notion of equalities especially due to the collapse of system plunged into recession turned out to be inequalities. Kyrgyzstan declaring its independence with collapse of the system left for behind transitional economies because of unfair conditions in the beginning. The fact of having no governmental organization and being subject to privat- izations as a result of socialist system made difficult for Kyrgyzstan to built corporate governmental institution. Absence of corporate governmental institutions has led the transitional recession painful and has prevented realization of welfare of year 1989 yet in Kyrgyzstan. In addition to retardation at the level of welfare, growing income inequity paved way to inevitable social outburst and this case was followed by political instability and economic uncertainty. In this situation whereas Kyrgyzstan suffering lack of capital, this need can only be acquired through the achievement of political stability. It is significant to observe the competitive advantage of Kyrgyzstan as well as local investment performance for international foreign capital investment. Thus sectors in which Kyrgyzstan has competitive advantage are determined by Balassa Index, prominent revealed comparative advantage index. As to index result it is ascertained that Kyrgyzstan has comparative advantages in labor intensive sectors which are suitable for factor endowments. It is expected to give foreign investors anticipation via this index result.