The tribal communities inhabiting the Central Tien Shan, Issyk-Kul, Chui, and Talas valleys engaged in nomadic animal husbandry, which was combined to varying degrees with agriculture and hunting. The ancient population of Kyrgyzstan raised cows, sheep, and Bactrian camels. Horses were, of course, a particular concern. It is possible that the Sakas were the first to learn how to prepare kumys. In winter, livestock was kept in pens, and feed was prepared in advance. In the late Bronze Age, the number of cows in households significantly decreased while the number of horses increased, which was related to the need for constant movement in search of pastures. Thus, nomadic animal husbandry emerged.
The Sakas in the northern part of Kyrgyzstan primarily engaged in animal husbandry, while the population of the Fergana Valley, alongside livestock breeding, also practiced agriculture. The herders raised coarse-wool sheep, mountain-adapted horses, large cattle, and Bactrian camels. In regions with favorable climates, irrigated agriculture developed, growing wheat, barley, and millet. Signs of social inequality became increasingly evident in society: power and a large portion of the wealth created and increased by the labor of all community members were concentrated in the hands of the tribal nobility, meaning it belonged to the entire clan.
The main activity of the Usuns was animal husbandry. They raised horses, cows, sheep, and goats. Chinese sources reported: "The Usuns engage in both agriculture and horticulture. They lead a nomadic lifestyle, moving from one place to another in search of rich pastures for their livestock, as well as convenient water sources." This information dates back to the late 2nd century BC. Wealthy Usuns had 4-5 thousand horses. They had preferential rights to use the pastures. The development of production required additional labor. For this, the labor of slaves was used, who were mainly captured warriors. However, the main productive force was the poor layers of the population. Thus, all the prerequisites for the division of Usun society into classes were created.
While part of the Usuns engaged in nomadic animal husbandry, another part, having mastered agriculture, established sedentary settlements. The remains of Usun residential settlements discovered by archaeologists in the Chui (near the modern city of Kara-Balta) and Issyk-Kul valleys represent a vivid example of agricultural economies with an extensive network of artificial irrigation.
Hunting played a significant role in the everyday culture of the ancient nomadic population of Kyrgyzstan. Hunting (both group and individual) remained one of the traditional means of subsistence for the population. Falconry was widely practiced. Hunting also served as a unique form of training and toughening for warriors. In conditions of constant threats from devastating wars and raids by external enemies, it contributed to the development of qualities necessary for warriors—bravery, agility, resourcefulness, observance, and endurance.
In southern Kyrgyzstan, in the Fergana Valley, another culture was forming at that time—the culture of sedentary agricultural tribes. The main type of their economic activity was agriculture—they grew wheat, barley, oats, and millet. This culture was characterized by a higher level of craft production, but animal husbandry still remained a secondary occupation. Bronze and stone sickles were used for harvesting. Ancient stone sickles made in Fergana were found at Issyk-Kul, in Nookat, and also in Eastern Turkestan. Grain was stored in pits dug in the dwellings, some of which could hold up to a ton of grain. Typical Chust settlements were discovered near modern Uzgen, Kurshab, and Nookat. The most studied settlement is on the slope of Sulayman Mountain in the city of Osh.
In the 2nd century BC, Fergana (Dawan) represented a strong state with developed branches of the economy. The basis of its economy was irrigated agriculture. Fergana occupied a worthy place in the sedentary agricultural civilization of the East. This was facilitated, first of all, by the development and use of an artificial irrigation system by its inhabitants. Thus, already in ancient times, artificial irrigation canals (for example, the John-Aryk) were built in Fergana, which significantly increased the efficiency of agriculture. In the 4th-1st centuries BC, a more progressive technology for flour preparation was used here compared to other regions of Central Asia. This is evidenced by the discovered remains of millstones, although the population also widely used stone grain grinders.
An important branch of the economy was the breeding of thoroughbred horses, which were famous far beyond Fergana (according to local legends, they descended from heavenly horses). The Ferganese took pride in their purebred argamaks, passing down the secrets of their care and preservation from generation to generation.
In addition, the population raised cows, sheep, goats, and camels. However, excavations of the Shoro-Bashat archaeological culture (4th-1st centuries BC) convince that there were few large cattle in the households.
Various crafts—pottery, weaving, jewelry, and others—developed widely. The appearance of the potter's wheel and the use of bellows in firing facilitated the production of ceramic dishes. Some craftsmen mastered the technique of making products from bone.
The convenient geographical location of Dawan allowed it to occupy important points of trade routes connecting the West of Asia with Eastern Turkestan even before the emergence of the Great Silk Road. The population profitably utilized these advantages to produce goods for sale in other countries. When the Chinese traveler Zhang Qian arrived in the Dawan state, he saw the famous local gaited horses. "The heavenly argamaks of Dawan, sweating blood," pleased him so much that he convinced the Chinese emperor to open a trade route for exchanging Chinese silk for Dawan horses. Thus, in the 2nd century BC, the Great Silk Road (GSR) was opened.
The total length of the GSR trade route was about 7,000 km. It took three years to traverse this path. Since ancient times, three branches of the GSR crossed the territory of Kyrgyzstan. The city of Osh has been a transit city on the Fergana branch of the Great Silk Road for thousands of years. Therefore, images of Dawan horses can be found on Sulayman Mountain, in Aravan, and Ayyrmach-Tuu near Osh.
Over time, the Great Silk Road became a great bridge between the East and the West. Osh was the most important transit point on this route, and Sulayman-Tuu ("the stone tower of Ptolemy") served as a convenient landmark for trade caravans. To create favorable conditions for foreign traders, roads were built, caravanserais were erected, and various craft workshops were established. To this day, the remains of one such ancient structure—a stone caravanserai in Doroot-Kurgan (Alai Valley)—have been preserved.
The geographical range of Dawan's trade contacts was wide—North Africa and Rome, Western Asia and India, Eastern Turkestan, China, and other developed regions and states.