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Kyrgyzstan
>> Regional Overview >> Kyrgyzstan Overview
Program Summary
Previous Years' Activities
2001, 2000, 1999, 1998, 1997
Last updated: 04
Introduction
Although small, land-locked, and bereft of major resources, Kyrgyzstan is important to the United States. Its location at the headwaters of major river systems in Central Asia enable it to affect critical and sensitive issues such as agriculture, electricity generation, and the environment in the down-river countries of Kazakhstan, Uzbekistan, and Turkmenistan. Poverty, ethnic differences, and a porous southern border with Tajikistan are potential sources of conflict that could seriously affect regional stability and pose a threat to American economic and political interests in Central Asia. Armed incursions into southern Kyrgyzstan by Islamic rebels reinforce the need for assistance to accelerate economic growth and promote political and social stability in the region.
Development Challenge
The overall challenge is to expand small enterprise, trade, civic and social organizations and local public services to provide better livelihoods for citizens, and thus ensure stability for Kyrgyzstan.
Although it inherited one of the least efficient and least competitive industrial sectors of the former Soviet countries, Kyrgyzstan was the first Central Asian Republic to undertake meaningful economic reform. Positive signs of macro-economic stabilization continue. GDP rose by 5.1 percent in 2000 and inflation declined from 39.9% to 9.6% between 1999 and 2000. Nevertheless, the country's standard of living has not changed since independence. A little more than 55% of the population still lives at or below the poverty line. This poverty, coupled with limited access to trade routes, a heavy burden of external debt, and weaknesses in the banking sector, is a threat to economic reform efforts. Poverty and limited economic opportunities jeopardize the country's stability in the South where radicalism and ethnic tensions are problems.
Despite international pressure on the Government to hold free and fair elections, and USAID and NGO contributions in developing an improved elections law and more competent election administration systems, last year's parliamentary and presidential elections were a significant disappointment. Most opposition parties and many opposition candidates were not allowed to participate in the election and those that did faced considerable harassment from local authorities. Many NGOs, with USAID assistance, prepared citizens for the elections and monitored precincts on election day. The widespread public outcry provoked by fraud in some elections is testament to citizens' desire for reform. Despite the flawed elections, the Parliament is asserting its independence towards the Government. With USAID assistance, the new Parliament is holding public meetings that involve non-governmental experts and interest groups. Successful USAID-assisted local government and condominium programs promoted greater transparency, citizens' participation and efficiency. Local heads of self-government cities have formed an Association of Cities that advocates decentralization.
Government-supplied social services, critical to maintaining public support for reform, are underfunded and inadequate. The Government of Kyrgyzstan has become a regional leader in health reform. USAID helped the Government to develop, test and adopt reforms that, with loan funding from the World Bank and Asian Development Bank, have been adopted on a country-wide basis. These reforms permit people to choose their primary health care provider and make high quality, essential health care more accessible and affordable. USAID's health partnership program, reproductive health, and infectious disease control programs have all contributed to a healthier society.
The headwaters of Central Asia's major river systems are located in Kyrgyzstan. Its neighboring countries depend upon water resources originating in Kyrgyzstan to meet their agricultural and domestic water supply needs. Furthermore, Kyrgyzstan depends on its water resources for a large portion of its electricity requirements. Consequently it is important that Kyrgyzstan, in cooperation with its neighbors, manage its water resources in the most sustainable manner possible.
Partnerships, training and exchanges remain an important component of USAID assistance. Under the Global Training for Development Project, USAID trained over 1,200 reform-minded government leaders, professionals, and citizens (38% were women), in areas related to democracy, health and a free-market economy. The USAID mission takes advantage of several centrally-managed programs in the Global Bureau, including the inter-agency agreement with the Center for Disease Control and a variety of mechanisms for reproductive health. The Farmer-to-Farmer program financed through P.L. 480 and managed by the Office of Private and Voluntary Cooperation in the Bureau for Humanitarian Response is active in Kyrgyzstan. USAID also supports a number of institutional partnerships that seek to build lasting relationships between the United States and Kyrgyzstan.
Other Donors
The World Bank and the Swiss and German Governments support land reform. The Dutch Centre for legal cooperation is supporting judicial reform. The World Bank is implementing a small and medium enterprise lending program and the Asian Development Bank is funding a financial sector reform program. The World Bank and the Asian Development Bank have large health sector loans. The World Health Organization and the German and Japanese Governments also support health sector activities. Due to the Government's high level of indebtedness, a second World Bank health sector loan has been delayed. The United Nations Development Program (UNDP), The United Nations High Commission for Refugees (UNHCR), Organization for Security and Cooperation in Europe, Office for Democratic Institutions and Human Rights, International NGO Training and Research Center (INTRAC), and the Soros Foundation all support local NGOs with small grants. UNHCR and the European Union are co-funding civil society support centers along with USAID. In cooperation with USAID, the European Union also supports efforts to strengthen a legal media defense fund. The Swiss and German Governments are working in the area of natural resources management.
FY 2002 Program
USAID will continue to place priority on enterprise growth, democratization and the prevention of conflict in the South, including expanded programs throughout the Fergana Valley.
USAID will help the private sector and government create freer markets where micro-, small- and medium-sized enterprises can thrive. In FY 2002, this effort includes technical advice on deregulation, increasing access to credit, expanding business skills and knowledge, and increasing awareness of private land ownership laws. USAID will work selectively with the government to develop the stock market, strengthen banking, and improve tax administration and intergovernmental finance.
Programs in political reform will continue to strengthen civil society, promote independent media, expand information dissemination, solidify the rule of law, and improve local public services. To facilitate accountability at the local level, USAID will assist local governments to improve legal authorities and financial and administrative operations, deliver services efficiently, and strengthen the role of elected local councils. Increased attention will be paid to improving women's legal rights and their participation in the political process. In the social sectors, USAID will deepen and expand health reform as well as continue support for maternal and child health, reproductive health and control of infectious diseases. In the area of water resources management, the emphasis will be on training and the development of demonstration models of selected management concepts and technologies. USAID will also help Kyrgyzstan and other countries in the region reach consensus on transboundary resource issues.
Activity Data Sheets
- 116-012 Increased Soundness of Tax and Budget Policies and Administration
- 116-0131 Improved Environment for the Growth of Small and Medium Enterprises
- 116-0161 Improved Management of Critical Natural Resources Including Energy
- 116-0211 Strengthened democratic culture among citizens and target institutions
- 116-023 More Effective, Responsive, and Accountable Local Governance
- 116-031 Human Suffering Reduced
- 116-032 Increased Utilization of Quality Primary Health Care for Select Populations
- 116-042 Cross-Cutting
Country Background Information Resources
CIA Factbook
Library of CongressNational Geographic Country Maps
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Last Updated on: May 29, 2002 |
