Donor-Kyrgyz Partnership for Development and Fighting Poverty

Bishkek, October 10, 2002 —The government and the donors pledged themselves today to a renewed and strengthened partnership for fighting poverty in the Kyrgyz Republic. This partnership will be guided by the principles of country ownership, inclusion, and donor coordination.

The pledge took place at the Meeting of the Consultative Group (CG) for the Kyrgyz Republic held in Bishkek on October 9-10. This is the first time such a meeting was held in the Kyrgyz Republic, a reflection of the “strong partnership that has developed between Kyrgyzstan and the international community” and “the active participation of the State, private sector, and the civil society,” stated President Askar Akaev in his opening remarks.

The “Consultative Group Meeting presents a good opportunity for the Government and the donor community to bring the new global developmental agenda to action in the Kyrgyz Republic,” emphasized Mr. Johannes Linn, Vice President of the World Bank for Europe and Central Asia Region. The new agenda emphasizes “moving from words to actions” and “the importance of partnership between all players under the leadership of the government, with private sector, civil society, multilateral and bilateral donors all coming together.”

The Meeting was jointly organized by the Kyrgyz Government and the World Bank. It was held under the co-chairmanship of Mr. Nikolay Tanaev, Prime Minister of the Kyrgyz Republic, and Mr. Dennis de Tray, Regional Director for Central Asia, the World Bank. H. E. Askar Akaev, President of the Kyrgyz Republic attended all sessions of the CG Meeting. The Meeting was attended by representatives of Canada, China, France, Germany, India, Italy, Japan, Korea, Netherlands, Norway, Pakistan, Russia, Sweden, Switzerland, Turkey, UK, USA, ADB, Aga-Khan Development Network, EBRD, European Commission, IMF, IOM, Islamic Development Bank, OSCE, UNDP, UNESCO, UNHCR, UNICEF, UNIDO, WHO, and the World Bank Group. Civil society and private sector representatives also participated in the Consultative Group Meeting1. The government presented to the CG its National Poverty Reduction Strategy (NPRS). The NPRS was developed in full consultations with civil society, private sector, and the regions. The Government outlined an agenda to promote a fair society, build an effective state and achieve sustainable economic growth, the key pillars of the NPRS.

“Kyrgyzstan considers poverty reduction and human development the highest priority” upon which the “Comprehensive Development Framework and the National Poverty Reduction Strategy were built,” affirmed President Akaev.

The donors welcomed the Government’s commitment to fighting poverty and congratulated the government for putting into place the basic elements for sustainable market based economy. The Government and the donors agreed that an improved investment climate is needed for increasing private investment, which is essential to accelerate growth and reduce poverty. Promoting good governance was highlighted as an important ingredient to foster investment and growth and reduce poverty. The Government confirmed its commitment to further implement the reform program, particularly in the banking sector, private sector development, health and education reform, development of the export sector and the rural infrastructure.

Donors expressed their strong support for the NPRS and provided an indicative figure of about 700 million dollars in commitments. More than half of this would be in grant form. The high level of grants is significant because it will enable the Kyrgyz Republic to implement its development agenda while maintaining macro-economic stability and achieving debt sustainability.

There was a strong sense that successful implementation of the NPRS requires more prioritization in line with financial resources and Government implementation capacity.

The Government and the donors also agreed on the need for an improved process to ensure effective implementation of priority actions. This includes the Government’s commitment to strengthening donor coordination and reviewing progress under NPRS annually.

“The 2002 Consultative Group Meeting for the Kyrgyz Republic was an exceptionally productive event. The President’s full participation was, at least for me, unique among the more than a dozen CG meetings in which I have participated,” concluded Mr. De Tray in his closing remarks.

On October 11, following the meetings in Bishkek, the delegations are planning a field trip to the city of Osh, located in the south of the Kyrgyz Republic, in the Fergana Valley. The trip is a unique opportunity for the donor community to witness reform achievements and, on the other hand, to see regional dimensions of poverty within the Kyrgyz Republic, implementation challenges, the water-energy nexus and challenges for Central Asia regional cooperation.

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The Meeting was attended by representatives of Canada, China, France, Germany, India, Italy, Japan, Korea, Netherlands, Norway, Pakistan, Russia, Sweden, Switzerland, Turkey, UK, USA, ADB, Aga-Khan Development Network, EBRD, European Commission, IMF, IOM, Islamic Development Bank, OSCE, UNDP, UNESCO, UNHCR, UNICEF, UNIDO, WHO, and the World Bank Group.