The Kyrgyz Republic is a landlocked, mountainous country of 5.3 million. In 2000, the Kyrgyz Republic was in a difficult economic situation, with critical levels of foreign debt, poverty at more than 60 percent and high dependency on external aid. Since the 1990s, when the country gained its independence, government had pursued various approaches to economic development that were not supported by the budget and lacked specific objectives.
In recent years, however, Government has taken measures to reduce the debt burden through strong economic growth, firm fiscal discipline and successful bilateral negotiations for debt restructuring. The Kyrgyz Republic has managed average economic growth of around 5.5% since 2003, making significant inroads into poverty, which declined from 63% in 2000 to 35% in 2007.
The country is on track to achieve two of its MDGs – on income poverty and universal primary enrolment. However, it is still some distance off the targets on child mortality, maternal health, infectious diseases and safe drinking water. Poverty rates are higher in rural areas, particularly where geography and remoteness constrains access to markets.
In 2007, the government launched the Country Development Strategy (CDS) for 2007-2010 focusing on four pillars: economic development; governance and transparency; human development; and environmental sustainability.
The Ministry for Economic Development and Trade plays the lead role in development planning and aid coordination. The Development Partner Coordination Council provides a forum for dialogue among the donors. There are plans to establish a Donor Liaison Committee for high-level government officials and heads of donor agencies, to provide a basis a for high-level dialogue on CDS implementation.
The Kyrgyz Republic and its donor partners have developed a National Action Plan on Harmonisation and Alignment. It consists of a matrix setting out aid effectiveness goals, associated medium-term tasks with the timing and responsible agencies identified, and a set of indicators.
Seven donors (ADB, Swiss Cooperation, DFID, World Bank and the UN agencies) have combined their efforts to produce a Joint Country Support Strategy for the Kyrgyz Republic (JCSS). The JCSS, which is closely aligned to the government's development goals, is a medium-term strategy for managing development cooperation, developed in accordance with the Paris principles, and represents a framework for improving the quality of donor engagement while minimising the burden on the recipient administration. It sets out common priorities to implementing strategic reforms, including a common approach to analytical work and capacity building, and a joint strategy to managing risk. The JCSS is monitored using a results framework derived from the government's Comprehensive Development Strategy.
Author(s): Government of the Kyrgyz Republic, ADB, Islamic Development Bank, KfW, World Bank Year: 2008
The main development banks operating in the Kyrgyz Republic conduct an annual Joint Country Portfolio Review to assess the performance of their programmes, identify positive and negative factors affecting portfolio performance, and agree on corrective actions. The 2008 review found overall satisfactory portfolio performance, while producing a number of recommendations for strengthening it, including the development of sectoral strategies, improved inter-agency coordination, capacity development in ministries and greater use of results management.
Author(s): Government of the Kyrgyz Republic, ADB, Islamic Development Bank, KfW, World Bank Year: 2008
The health sector has the Kyrgyz Republic's first Sector Wide Approach, with pooled funds of around US$7m and a similar volume of parallel fund provided in support of the government's health sector strategy, programmed through an annual sector expenditure framework and a medium-term budget framework. Among the benefits have been improved budget processes, and greater reliance on country systems and processes, with consequent capacity building effects. The SWAP is monitored through a Joint Annual Review and a bi-annual Health Summit. This presentation reviews the main stages in the development of the SWAP and its achievements to date.
In 2004, the Kyrgyz government and donors commissioned a systematic review of the country's PFM systems. A joint government-donor Steering Committee was established to oversee the process. The review followed the guidelines and indicators established by the PEFA Secretariat, and provides a baseline for monitoring the results of on-going PFM reform efforts. A number of donors used the PEFA assessment as the basis of their fiduciary risk analysis in respect of proposed budget support.
A joint government/World Bank team analysed the Kyrgyz procurement system against international standards, according to indicators developed jointly by the OECD-DAC and the World Bank. The methodology focuses on four areas: the regulatory framework; the institutional framework and management capacity; purchasing operations and market practices; and the integrity and transparency of the system. The review found that the legislative framework met international standards, but that the other pillars exhibited significant deficiencies. The review provides a benchmark for measuring the impact of on-going procurement reforms.
This review of fiduciary capacity in the education sector was undertaken jointly by a World Bank/government team. It analysed financial management, procurement arrangements and capacity in the Ministry of Education and Science at central and provincial levels. An initial assessment was prepared, and used as the basis for preparing a short-term fiduciary capacity building plan. It will be followed up by a second assessment to determine whether fiduciary conditions are favourable for the introduction of new support modalities, such as a SWAP.
Author(s): Sultan Akhmatov; Jyldyz Urbaeva Year: 2008
The Kyrgyz Ministry of Economic Development and Trade has developed an M&E system to monitor the national development strategy. The results framework includes a matrix of well-defined, short-term, measurable indicators, together with specific activities required to achieve the MDGs. The Ministry collects information on the indicators and presents them to the National Council for Strategic Development in the form of an annual report. There is also an online, public access database on indicator results.
: 