: / Strategies / National Poverty Reduction Strategy (2003-2005)

Kyrgyzstan Review, 10 years ago

C. Jalal-Abad Oblast

587. The population in the Jalal-Abad oblast represents 18.3 percent of the total population of the Republic. Its area is 33.7 square kilometers. The level of poverty decreased by 12.9 percent and comprised 55 percent, but it is still higher than the average republican level by 4.7 percent. Per capita income in 2001 increased by 16 percent and amounted to 3,947 soms or 39.6 percent of the average republican level. Benefits for utilities, electricity and heating, natural gas and health treatments are granted to 12.7 percent of inhabitants; 27 percent of families receive state allowances allocated for the poor.
588. Social Sphere and Social Mobilization
The Jalal-Abad oblast is one of the few where new schools have been established each year. Basically this is the result of the consistent work conducted by local governments, assistance from donor countries and international financial organizations. Under the projects Educational Sector Development and Provision and Financing of Social Services supported by the ADB, schools have been repaired and constructed, equipment and textbooks have been procured. At the same time, general problems in the sphere of education connected with insufficient financing and ineffective management systems remain. Low salaries and lack of proper incentives lead to the loss of qualified specialists to other occupations so there is a shortage of teachers, in particular, in rural areas. Shortage of textbooks and educational and methodological manuals significantly decreases the quality of and access to educational services. Further reforming of the educational system will be mainly connected with a transfer to new methods of financing.
The oblast has a well-established system of health care, 55 hospitals and 163 FOPs. There were 138 FGPs established in the oblast, of which 78 work under the system of mandatory medical insurance. A branch of the Center of Family Medicine has been established in Jalal-Abad City where family group practitioners from the whole oblast are trained. Starting from July 1, 2002, a phased implementation of a supplementary program on mandatory medical insurance on medication provision at the primary level is envisaged for all cities and rayons of the oblast. It is assumed that poor citizens with medical insurance will be able to buy medical preparations at reduced prices at the expense of the Fund of Mandatory Medical Insurance. Hospitals and FOPs are repaired, equipment is procured within the projects, Healthcare Reform-2 and Provision and Financing of Social Services.
One of the pressing problems in the oblast is supply of clean potable water. At present, only 81.2 percent of the population has access to clean potable water. In order to expand access to clean water under the ADB-supported project, Water Supply and Sanitation, it is planned to rehabilitate and construct water pipelines in 224 villages of the oblast and Jalal-Abad City, starting in 2003. Resources of the republican and local budgets, non-governmental organizations, including co-financing from aiyl-okmotu and local communities, will be attracted for rehabilitation and construction of water pipelines in 191 villages that have not been included into the above project. Hundreds of community-based organizations, associations of inhabitants and other forms of citizens self-government actively participate in the solution of these problems and other social issues. A significant assistance in expanding this work is provided by the Congress of Local Communities of the Kyrgyz Republic, which implements the pilot project, Decentralization, supported by the UNDP.
As of July 1, 2002 there were 17,220 citizens looking for job registered in the Jalal-Abad oblast, of which 68.2 percent have an official status of the unemployed. In June of the current year 558 unemployed were provided with jobs, 1,154 people were engaged in paid public works, 341 unemployed attended training courses. In the first half of 2002 the Employment Service Fund allocated micro-credits to 163 unemployed for the amount of 900 thousand soms. The KAFC extended micro-credits without any collateral for the amount of 5.9 million soms. Community-based organizations established with the assistance of local governments, international organizations take an active part in the solution of the tasks on self-employment of the population.
589. Real Sector
The Jalal-Abad oblast produces 17.8 percent of the total republican GDP and it is one of the more industrially developed oblasts of the Kyrgyz Republic. More than 100 industrial enterprises are located here, they represent practically all industrial sectors: production of electricity, electronics, garments and shoes, extraction of coal and other mineral resources, processing of agricultural products. There is the Toktogul HPP cascade located at the Naryn River in the oblast that produces about 80 percent of the electric power. The JSC Mailuu-Suu Electric Bulb Plant, JSC Kyrgyzneftegaz, Makmal Gold Mining Industrial Complex, JV Kyrgyz Petroleum Company, dealing with oil processing. Processing industry of the oblast consists of 27 large enterprises that produce cotton fibers, fermented tobacco, canned vegetables and fruit, liquors, wine, soft drinks, mineral water, flour, bakery and confectionery products, meat and dairy products and vegetable oils. The construction of a factory for production of canned vegetables and fruit, natural juices, preserved fruit, jams was completed in 2002. It is planned that a Kyrgyz-Turkish joint venture will start production of vegetable oil. In a medium term, sustainable growth of industrial output will be ensured by an increase in the volume of crude oil extraction and processing, production of electric bulbs, completion of construction and putting in operation of HPPs under construction, expanding of SMEs engaged in processing of agricultural products.
In 2001, the share of industrial output produced by SMEs in total industrial output of the oblast was 27.8 percent, and excluding electricity production, more than 55 percent. The Program for Entrepreneurship Development for 2001-2003 has been approved in order to develop SMEs in the oblast. Development of SMEs in the oblast is promoted by the financial system, as well as creation of favorable conditions as a result of simplification of registration procedures, reduction in the number of inspections and permits for conducting business activities, transfer to a simplified taxation system, including by introducing a patent-based tax. Unique Arslanbob fruit and nut forests, Besh-Aral and Sary-Chelek reserves located in the oblast, create opportunities for tourism development and other services activities. 
The agricultural sector grows gains, cotton, tobacco, potatoes, vegetables, and grapes. In term of livestock breeding the share of the oblast is 16.5 percent of cattle, 15.6 percent of sheep and goats out of the total cattle stock of the Republic. Growth of agricultural output is possible as a result of increasing crop capacity, involvement of unused and new lands in agricultural turnover. In this connection it is planned to construct a number of irrigation channels and a water reservoir that will ensure irrigated water for an additional 8,659 hectares. Under the project, On-Farm Irrigation, financed by the World Bank, there have been 41 associations of water users established, responsible for distribution of irrigation water and participation in rehabilitation and construction of irrigation systems.
Development of agriculture and SMEs in the oblast is promoted by the financial system. The KAFC has significantly increased its volume of loans, amounting to 90.5 million in the first half of 2002 soms, while in the whole of 2001 the amount was 77 million soms. The volume of credits extended to the real sector in January-July of 2002 from all sources totaled 167.5 million soms.
The total volume of capital investments in the Jalal-Abad oblast in 2001 amounted to 1,380.5 million soms. Basically this is connected with the funds spent for implementation of the projects included in the PIP, as well as own resources of enterprises aimed at development of production. In 2001 the oblast attracted foreign direct investment for the amount of US$4,896,400, and in the first quarter of 2002, US$1,064,900. In general it is necessary to significantly increase the inflow of investment, in particular private investment, to ensure sustainable development of the oblast.  
It is necessary to ensure broad export opportunities for sustainable growth of production. Elimination of barriers in trade and movement of goods among neighboring countries will allow access to large markets of Uzbekistan, Kazakhstan and Russia. In addition, it is necessary to take measures to combat smuggling.
To resolve the existing problems and attain the major goal of poverty reduction, the work of local executive bodies, local self-governments of the Jalal-Abad oblast will be focused on the following priority policy directions:
  • Broaden access to clean potable water by means of rehabilitation and construction of water pipelines in villages of the oblast, including at the expense of credit resources provided by the Asian Development Bank;.
  • Increase access of the population to high-quality services of health care and education by means of repair, construction and equipping schools, medical units, improving the system of financial management.
  • Reduce the total level of unemployment by supporting and developing small and medium businesses, individual entrepreneurship, retraining of unemployed in specialties demanded by the labor market.
  • Rehabilitate and construct irrigation networks in villages of the oblast with participation of the associations of water users established within the project On-Farm Irrigation financed by the World Bank. This will allow rural inhabitant to increase agricultural output and their own income.
  • Conduct timely preventive works to prevent natural calamities, including measures on removal of the population from territories exposed to environmental risks.
  • Create a favorable investment climate and search for investors for development of electric power generation, processing industry (tobacco, cotton, forestry products), in particular mini-processing production in small cities and towns.
  • Intensify processing of vegetables and fruit by means of cooperation of processing enterprises with peasants farms.
  • Establish and develop cooperation among farming enterprises and peasants farms, broadening of service maintenance, marketing and financial services.
  • Assist in selling products, promotion of their export.
  • Increase electricity generation and export by:

completing construction of the Kambar-Ata HPP cascade;

development and implementation of the program on development of small HPPs; and

attracting investments for construction of small HPPs.

  • Increase coal production by replacing obsolete equipment.
  • Strengthen customs services, creation of necessary infrastructure.