If you are interested in the development of the NIS. Kyrgyzstan is one of the poorest countries of the new independent states of the former SU (the level of extreme poverty 4.4%). The poverty in the country is reduced not only insufficient income and consumption, but is expressed in the absence of access to decent living conditions and to social services. The submission examines the current situation in the country, the issues of financing for development, national priorities of Kyrgyzstan and the priorities of major multi and bilateral donors. Particular emphasis is given to the partnership Kyrgyz Republic with Russia.

1. for sustainable development of
Kyrgyzstan
Final Project Digital Artifact
Financing for Development by The World Bank Group
on Coursera
by Elena B/Yatsenko (Russia)

2. Structure
of the presentation
I. Kyrgyzstan: the difficult path of development
II. International Development Assistance for
Kyrgyzstan
III.Russia for Sustainable Development of
Kyrgyzstan

3.  The state of the March (2005) and April (2010) revolutions, the
tragic events in the South (2010);
 the transition to a parliamentary form of government (2010);
 Russian language is the official language (by Constitution of KR);
 finding ways to strengthen peace and inter-ethnic harmony;
 high level of corruption and criminalization of society, the growth of
religious extremism;
 the existence of serious cross-border problems and unresolved
border issues…
The current situation in the country

4. The current situation in the country
the country is among the two poorest in the CIS. The level of
poverty increased (from 31.7% in 2009 to 38% in 2012). The
HDI for Kyrgyzstan ranks 126th place among 187 countries of
the world;
the systemic crisis gradually overcome, but economic
development remains fragile and highly susceptible to internal
and external risks and challenges;
outside the country - about 1 million labour migrants (up to 700
thousand - in Russia)
remittances to the country in 2013 has exceeded about 2.2
billion U.S. dollars

5. The current situation in the country
 the quality of education and health care is reduced;
 country is on the drug trafficking (from Central Asia to
Russia annually receives more than 70 tons of heroin)
 environmental problems: degradation of natural
resources and the risks associated with frequent
natural disasters and uranium tailings issues

6. The situation in the country (other problems)
 The incompleteness of the reforms:
 state and administrative-territorial governance;
 the judiciary and law enforcement agencies impeding
effective anti-corruption measures;
 The investment climate is not attractive enough;
 A large informal sector in the economy (estimates vary from
39 to 60% of GDP);
 Low levels of social, food, energy and other forms of security;
 Low efficiency of resource utilization and the real sector of
economy needs to be modernized

7.  National sustainable development strategy for the period
2013-2017 :
 the formation of legal state and rule of law;
 the unity of the people as a condition of statehood and
successful development;
 the solution of social problems in the fields of education,
science, health, improving the efficiency of social
protection and pension provision, the creation of a cultural
environment, developing sports and youth initiatives,
strengthening the role of family and gender equality;
National priorities

8.  economic development priorities: sustained economic
growth and macroeconomic stability, improving business
environment and investment climate, financial sector
development, strategic industries – agribusiness, energy,
transport and communications, tourism and services, and
regional economic development;
 the implementation of major national projects
 The programme of the Government of Kyrgyzstan for
transition to sustainable development for the period
up to 2017;
National priorities (continued)

9. National priorities (continued)
 A set of national policies and programmes in different
fields and sectors;
 International obligations of Kyrgyzstan in the field of
human rights, sustainable development and others (the
Millennium Development Goals of the UN, including in
the period after 2015) included in national policies and
programmes;
 Preparation and entry into the Eurasian Economic
Union

10. II. IDA for Kyrgyzstan
 In the USSR (in 80-ies) the annual irretrievable subsidies
from the state budget to Kyrgyzstan were the equivalent of
$ 1 billion. USA (capital investment in real and social sector,
infrastructure, levelling of incomes, etc);
During the years of independence credit government
borrowing Kyrgyzstan from external donor amounted to
approximately $ 4.7 billion. USA (taking into account already
repaid, including decommissioned by the Paris club, Russia,
Turkey, etc);
the national debt in March 2014 was $ 3.2 billion. USA
(44% of GDP), while 57.3% - multilateral debt, and 42.7% -
bilateral debt

11. The largest donors in Kyrgyzstan
 The main multilateral donors - the World Bank ($ 677 million),
ADB (623.2 million), the IMF ($ 190,5mln);
 Among the multilateral donors, the EBRD, IBRD, OPEC, the
number of funds with a total volume of loans of about $ 78 million
 Major donor countries: Russia ($ 489 million.); China ($ 527.4
million); Japan ($ 361.2 million); Germany ($ 78.8 million)
 Among other donor countries - Turkey, Germany, Switzerland,
Pakistan, Denmark, Korea, Kuwait, France with a total volume of
lending to about $ 45 million
 The share of loans of multilateral institutions in total aid has
declined over the last 4 years to 5%

12. Structure of external debt of KR by sectors (2014)

13. The main lending priorities of multilateral donors
 World Bank - Country Partnership Strategy for 2013-2017: i)
public administration and the quality of the civil service; ii)
business environment and investment climate; iii) management
of natural resources and physical infrastructure ;
 ADB - Strategy for 2013-2017: (i) management in the public
sector to improve the investment climate (ii) transport and
logistics; (iii) energy; (iv) education and training; (v) water
supply and sanitation (WSS);
 EBRD - Strategy 2011-2015: i) support for local private
enterprises, SMB; ii) strengthening the financial sector; iii)
development of critical infrastructure

14. The lending priorities of major bilateral donors
Russia: budget support, economic development assistance,
electric power industry, gas industry, mining;
China: infrastructure projects - road and railways, gas pipelines,
processing and mining, petroleum refining, the Bishkek CHP;
Japan: support the management of transport infrastructure and
the settlement of regional disparities; reconstruction of social
infrastructure; energy conservation and mineral resources,
promoting regional cooperation
Germany: promoting sustainable development of the economy
and health care reform

15. III. Russia for Sustainable Development of Kyrgyzstan
 Focus on the priorities of Russia and Kyrgyzstan – the creation of
sustainable partnerships for development
 International context: donor support by Russia of international
initiatives in the field of development, taken with her participation:
 SDG until 2030;
 the Declaration on assistance in the field of development
(Paris, Rio, Busan, etc.);
 The St. Petersburg development strategy, adopted by the
heads of States of G20(September 2013)

16. The priorities of Russian IDA-Program for Kyrgyzstan
 The Russian context:
 The program conforms to the Concept of state policy of the
Russian Federation in the area of development assistance;
 Consolidation of priorities of the national programmes on
international cooperation with KR in the IDA-program (
compatriots, culture, education, etc.);
 Russia's participation in all coordination mechanisms for
external assistance to Kyrgyzstan, including participation in joint
donor programmes;

17. The priorities of Russian IDA Program for Kyrgyzstan
(logical sequel)
 Regional context : participation/facilitation of the implementation
of regional Central Asian countries – Russia development
programmes: Technical assistance to major cross-border infrastructure
and trade-economic projects;
 Bilateral context: Russia-Kyrgyzstan:
 inter-state agreement, the joint statement following the visit of RF-
President Vladimir Putin to Kyrgyzstan (September 2012);
 bilateral agreements and agreements on social and economic
cooperation (the EAEU, Russian-Kyrgyz development Fund, energy,
infrastructure, etc);
 Regional agreements of subjects of the Russian Federation and
Kyrgyz Republic

18. I believe and hope that Kyrgyzstan will be
a brighter future through sustainable
development with partners together!!