Regions and Countries

	Table of Contents
p. 16 of 20 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies IV. Regional Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work Program IX. Local Cost Financing

Country Assistance Plans - Kyrgyz Republic

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V. Donor Activities and Aid Coordination

43. Within the framework of the Consultative Group, the International Monetary Fund (IMF) and the World Bank play a lead role in mobilizing support in the foreign donor community for the transition of the Kyrgyz Republic to a market economy. In 1993, the IMF provided support through a Standby Arrangement and also made resources available under the Systemic Transformation Facility. IMF efforts have continued since July 1994 with a three-year ESAF, which was completed last year. A second three-year ESAF arrangement was approved by the Fund on 29 June 1998; as stated in para. 5 a PRGF was approved in February 2000. The World Bank has concentrated on supporting structural reforms, focusing particularly on enterprise and banking reform and agriculture. Its Agriculture Privatization and Enterprise Adjustment Credit supported reforms in land titling and farm restructuring. The World Bank also supports projects in social protection, labor market transformation, and energy. There is an informal understanding between the World Bank and ADB regarding the social sectors that the former will focus on assisting the health sector and ADB on the education sector. However, recently the World Bank has expressed an interest in reviewing this understanding. Discussions will be initiated between the two sides and the ADB will reassess the division of responsibilities and decide whether to continue or modify these arrangements as appropriate. The EBRD has focused on promoting private sector activities through equity participation and loans for mining and agro-processing enterprises and a line of credit for small and medium enterprises. It has provided technical assistance in such sectors as hydropower, agriculture, telecommunications, and tourism. The United States has provided TA programs to support privatization and economic restructuring. Financial and technical assistance has also been provided by the United Nations Development Program, Japan, Denmark, European Union, Germany, the Netherlands, the United Kingdom, Pakistan, Switzerland, and Turkey.

44. Aid coordination takes place through (i) regular contact between ADB’s Kyrgyz Resident Mission and visiting staff with the representative offices of donors at Bishkek; and (ii) the annual Consultative Group Meetings chaired by the World Bank. In addition, UNDP convenes local donor coordination meetings every month. There is very close coordination between ADB and the representative offices of the major donors to the country such as the World Bank, the IMF, EBRD, USAID, and the UNDP. Excellent relations exist with these organizations and there is generally a free exchange of operational information and documents. A summary of overall external assistance to the Kyrgyz Republic is given in Appendix 3. The Kyrgyz Republic is one of the pilot countries selected under the Comprehensive Development Framework (CDF) initiative proposed by the World Bank. In the inaugural Workshop held in Bishkek in July 1999, the foundation of the Kyrgyz CDF for 2000-2010 was enunciated by President Akayev. It was stated that the CDF requires a concerted effort from all parties, including the legislative and executive branches of the Government, civil society, private sector, and the international community. This joint effort must be aimed at designing the best path towards common objectives, such as reducing poverty to one third, doubling per capita income, improving living conditions, introducing an effective governance as well as creating the necessary conditions for sustainable economic growth. In the CDF, macroeconomic and financial aspects will be given due consideration, particularly in the short-term, since economic stability is essential for successful development. The three main thrusts of the CDF are identified as (i) poverty alleviation and social protection; (ii) sustainable economic growth; and (iii) good governance, legal and judicial reform. Workshops to be conducted from February to December 2000 will help firm up the details of the Government’s policies and priorities in these areas. As a major donor to the country, ADB has been participating in the CDF exercise.

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