The CDF has been developed and adopted in order to mobilize the efforts of all elements of the state and society in the Kyrgyz Republic to implement social, political and economic development programs. The strategy was also designed to coordinate the external assistance from donor states and international agencies and will serve as the logical continuation of existing policy of borrowing focusing on higher implementation efficiency of programs and projects.
Analytical work on all aspects of social, political and economic development that has been undertaken with the assistance of donors will be extensively used in further designing and implementing the various components of the strategy (see Appendix F).
The recently adopted National vision and subsequent goals and objectives require active and in some cases drastic measures in addressing issues that emerged in the transition period. A system approach has been developed for the required initiatives to be implemented.
The main elements of the overall strategy are as follows:
· Commence immediate action to reform and reorganize the machinery of government in order to render the administration of the state more efficient and accountable. This will include the passage of legislation and the institutional changes that are necessary to facilitate these and other improvements contemplated under the strategy.
· Create an environment encouraging initiatives to be taken by the private sector, civil society and foreign investors to support the CDF approach to national renewal.
· Direct joint efforts of the state, private sector, civil society and international donors at poverty reduction. The state will refine and improve its activities in the social sphere so that the lives of the more vulnerable members of society are made more tolerable. The private sector will be responsible for generating new job opportunities through active investment in productive ventures, supported by foreign direct investment. Civil society and foreign donors will support state efforts in the social sphere.
· Achieve efficient external debt management with concurrent attraction of investments required for the economic development. The dependence on official borrowing abroad will be reduced in the next several years, with reduction compensated by promotion of domestic and foreign private direct investments. These steps will allow to provide for macroeconomic stability and will be strengthened through better tax administration and reduced interference by the bureaucracy in the affairs of the private sector.
The diagram below illustrates the broad CDF strategy.
The following principles will be applied in implementing the many components of the strategy:
· Partnership and participation The state, the private sector, civil society, donor-countries and international organizations will agree and coordinate their efforts in attaining CDF goals. Regular hearings on issues of interest for the community must be introduced into the practice of all branches of power and involve participation of the private sector as well as the civil society. In implementing the strategy, the partnership must be built on a voluntary and egalitarian basis.
· Transparent governance Regular, open hearings on matters affecting community interests must become the practice at all levels of government, and involve the private sector and civil society.
· Separation of powers Before any law or regulation is considered for enactment or enforced, it must be scrutinized to ensure that it conforms to the principles of the separation of powers as set forth in the Constitution of the Kyrgyz Republic.
· Rule of law The legitimate private interests of citizens must be protected by the law and respected by public officials and others. A competitive environment must be created and maintained in the economy, and equal rules for the legitimate economic activities of all participants established.
· Larger participation of the private sector All development activities that are within the competence of the private sector should be left to it for implementation. Government bodies may intervene in the solution of problems only when there are no appropriate market means available for doing so.
· Realism The Strategy includes only those activities that can be implemented within the means available.
· Complementarity Components of the strategy should be designed and implemented so as to complement and support each other.
· Innovation Quality improvements in all aspects of development should be achieved through the application of appropriate new knowledge and technologies.
· Focus on results Activities to achieve the objectives of CDF will be monitored and their effectiveness will be assessed through delivered results.
· Preventive development Components of the strategy should include measures to overcome anticipated potential impediments to the attainment of CDF objectives.
· Openness to the global community Components of the strategy should work towards the integration of the Kyrgyz Republic into the global community on the basis of an unequivocal commitment to universal human values.
The three main parts of the overall strategy are: effective and transparent administration of the state, a fair society providing human development and protection, and sustainable economic growth.