: / Strategies / Kyrgyz Republic Country Assistance Strategy (2003)

Kyrgyzstan Review, 10 years ago

Assessment of the NPRS

The NPRS builds on the strengths of the I-PRSP and the CDF, particularly the inclusive nature of its formulation process. The development of a quality data set for basic poverty analysis, supported by a joint IDA/government Poverty Assessment, is another strength of the NPRS, as is its candid recognition of human rights issues and the importance of reducing corruption in the public sector. The NPRS also lays out a vision of empowering local self-governments, continuing key reform such as in health, education, and the financial sector, and further developing the agro-processing, energy, and mining industries.
The NPRS emphasizes the need to maintain real GDP growth at about 5 percent per annum over the next three years, in order to significantly reduce poverty, although this could be considered challenging due to fragile growth prospects. The NPRS also clearly recognizes the severe external debt problem and thus the need for fiscal restraint, including through limits on the Public Investment Program. In light of these constraints, the NPRS appropriately recognizes the critical role that private sector investments will have to play for stimulating broad-based growth. Nevertheless, specific measures needed to reduce corruption and create an enabling environment for greater private sector participation in agro-processing, tourism, energy and mining are not well developed.
Overall, there remain areas where further progress is needed. Although the basic poverty diagnosis is sound, it needs to be sharpened further, and the link between the poverty diagnosis, poverty reduction strategy objectives and priority actions strengthened. Further progress is also needed in the areas of costing and prioritization of policy actions, and their link with annual budgets within the recently introduced Medium Term Expenditure Framework (MTEF). The NPRS correctly recognizes the need for improved tax collection and effective decentralization of service provision, but further work is needed to identify specific actions to improve tax administration and inter-governmental financial relations. Further work is needed on identifying specific measures to carry most NPRS policy reforms including pensions, health, education, and the respective roles of public and private sector in agriculture, energy and mining forward in a sustainable manner.
Finally, successful implementation of the NPRS will require continued institutional capacity building within the government for strategy formulation, implementation, and monitoring and evaluation. Particular attention will need to be paid to ensuring the reliability of base-lines for indicators, to establishing easy and cost-effective ways of collecting and measuring data, and to ensuring that this data is effectively used in policy and budget formulation. Stronger attention will also need to be paid to resource management, including aid mobilization and coordination on the basis of the NPRS. Progress on all of these fronts will need to be addressed and monitored through the Annual NPRS Progress Report.