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




Kyrgyzstan Review, 10 years ago




Main Elements of the NPRS

The NPRS proposes actions in three broad areas to reduce poverty levels:
 
Formation of an Effective State: The overall vision in the NPRS is for a smaller and more professional state apparatus, that works in an inclusive, decentralized manner, adjusting itself according to the feedback from civil society and the private sector. Most areas critical to good governance are covered, including the need to address local capacity and resource constraints that may emerge from the decentralization process. The NPRS also indicates the need to address corruption, to build democratic institutions, and to improve the effectiveness and integrity of the state. This will require greater transparency and professionalism in public administration, public expenditure management, and the legal system. There is also a need to eliminate overlapping functions and to improve coordination among the different agencies. It will also involve constitutional reforms to strengthen the role of Parliament and Courts.
 
Building a Fair Society: The NPRS is candid in its recognition that the levels of funding for social assistance are inadequate and as an overall approach indicates the need for greater efficiency and targeting, combined with a gradual increase in the use of cash and in funding levels. The top priority for education is to improve the overall access to quality education, particularly for pre-school, primary and secondary institutions and in the rural areas. In health there is a need for greater attention to streamlining the use of hospital use, specialists, and family health care, and a stronger attention to public health and combating communicable diseases, including building a public awareness campaign on health issues such as smoking, TB and HIV/AIDS. Pension reform, including the long term goal of moving towards individual retirement accounts, is also noted. The NPRS also recognizes the importance of strengthening gender equality through improved public employment processes, improved education and health services, and through micro-finance. The NPRS indicates that the most important priority in the field of labor is job creation, the strengthening of market based mechanisms for wages, the gradual rise in salaries for social sector workers, and the inclusion of workers in the official economy
 
Promoting Sustainable Economic Growth: The NPRS underlines that the foundation of sustainable economic growth is macro-stability and outlines goals to achieve this including keeping inflation to about 4 percent per annum, limiting new debt, and strengthening tax collection. The plan recognizes the importance of public investments but also the need to limit this to below 4 percent of GDP by 2005. Financial institutions and the regulatory framework require strengthening and access to differing types of investments (loans, leasing, venture capital etc) needs to be increased, with particular attention to increasing access to micro-finance. The privatization process needs to be continued and the private sector environment needs to be improved. The NPRS also recognizes the importance of improved corporate governance. Improving productivity in agriculture, including agro-processing, is a key area of focus. Other sources of growth are identified as small-scale industry and services (telecom, transport, tourism, energy etc). Finally, the NPRS outlines priorities for ensuring growth is environmentally sustainable, including the need to improve water management and quality, and reduce the degradation of forest lands and protect endangered species.
 
To measure and monitor progress in the fight against poverty, the Government has selected sixteen poverty indicators, including some Millennium Development Goals, setting time-bound quantitative targets for each (Table 3 below).
 
Table 3: Main NPRS Poverty Alleviation Targets
 
Indicators
1999 (actual)
2005 Target
Level of population below poverty line (%)
55.3
38.9
Primary education coverage (% of total children)
89.5
97.0
Infant mortality (under one year) rate per one thousand live births
22.7
22.0
Child mortality (under five) rate per one thousand live births
35.5
28.0
Maternal mortality per 100,000 live births
42.3
40.0
Mortality from infectious diseases (per 100,000 population)
32.9
25.0
Percent of population with access to health care services
85.6
90.0
Percent of population with access to safe drinking water
85.9
87.8
GDP growth rate (percent change from 1999)
100.0
128.7
Percent of private sector in GDP
82.7
84.3
External debt as percent of GDP
134.0
78.0
External debt service as a percent of public expenditures 1)
4.4
3.6
External debt as a percent of total exports
279.0
231.2
General unemployment as percent of economically active pop. 2)
7.2
8.4
Telephone lines subscribed per 1000 population
78
80
Personal computers in use per 1000 population 3)
25997 3)
37000 4)