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PROGRAMME FOR COUNTRY PARTNERSHIP

KYRGYZSTAN

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TIMELINE

  • UNIDO's PCP Programme Manager conducts a mission to Bishkek to discuss the next steps for the PCP Kyrgyzstan with national stakeholders and development partners.

  • UNIDO revises the draft PCP Programme Document based on inputs from the Government, and submits a revised version for approval.

  • Kyrgyz delegation participates in the 18th Session of the UNIDO General Conference. UNIDO's DG, LI Yong, meets with Emil Osmonbetov, Chairman of the State Committee on Industry, Energy and Subsoil Use of the Kyrgyz Republic, to discuss the ongoing cooperation between UNIDO and Kyrgyzstan within the framework of the PCP.

    In line with the newly adopted Strategy for the Sustainable Industrial Development of the Kyrgyz Republic 2019-2023, UNIDO submits a revised and streamlined version of the draft PCP Programme Document (in English and Russian) for review to the Government.

  • The Kyrgyz Government adopts the Strategy for the Sustainable Industrial Development of the Kyrgyz Republic 2019-2023, together with an accompanying Action Plan (Government Decree No. 502). The Strategy was developed in cooperation with UNIDO and will serve as the guiding document for the PCP.

  • UNIDO submits a revised Strategy for Sustainable Industrial Development to the Government for endorsement. It includes an Action Plan focusing on priority areas identified by the Kyrgyz Government, as well as a list of indicators for the monitoring of progress.

    UNIDO holds meetings with PCP counterparts in Kyrgyzstan and presents the PCP initiative at the VII Kyrgyz-Russian Inter-Regional Conference.

  • High-level Kyrgyz delegation participates in the 46th Session of the UNIDO Industrial Development Board to discuss progress and follow-up activities related to PCP Kyrgyzstan.

    Emil Osmonbetov, Chairman of the State Committee on Industry, Energy and Subsoil Use of the Kyrgyz Republic, meets UNIDO’s DG and participates as a panelist in the Advanced Session of the Seventh ISID Forum.

  • UNIDO submits the draft Strategy for the Sustainable Industrial Development of the Kyrgyz Republic to the Government for endorsement.

  • UNIDO shares the draft PCP Kyrgyzstan Programme Document (English and Russian) with Kyrgyz counterparts for comments.

    UNIDO presents PCP Kyrgyzstan at the 5th International Economic Forum in Issyk-Kul during Kyrgyzstan's Economic Week from 16-21 July 2018.

  • The Project Steering Committee holds a meeting on the formulation of the national Strategy for Sustainable Industrial Development for Kyrgyzstan in Bishkek. National stakeholders validate methodology, workplan and deliverables.

  • UNIDO completes the PCP Kyrgyzstan Country Diagnostic. 

  • The Government of the Kyrgyz Republic, with the support of UNIDO, commences the formulation of a national Strategy for Sustainable Industrial Development.

    UNIDO organizes a roundtable on “The Programme for Country Partnership and Inclusive and Sustainable Industrial Development of the Kyrgyz Republic: Contribution to Regional Development” in Bishkek.

  • UNIDO announces Kyrgyzstan as the pilot PCP for the Europe and Central Asia region at the occasion of the 17th UNIDO General Conference.

    UNIDO launches the PCP Kyrgyzstan Country Diagnostic to help identify the main opportunities and bottlenecks for advancing industrialization and support the design and development of the PCP Programme Document.

  • UNIDO Executive Board approves the development of PCP Kyrgyzstan.

    UNIDO conducts a programming mission to the Kyrgyz Republic.

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Introducing Kyrgyzstan

The Kyrgyz Republic has favorable conditions for steady and sustainable industrial growth, primarily due to the country’s rich natural resources and immediate proximity to growing neighboring markets. Classified as a lower-middle-income country by the World Bank, the Kyrgyz Republic has maintained relatively steady annual GDP growth rates, ranging from 4.6 % to 5.5 % over the past five years, and ranks 97/140 in the Global Competitiveness Report 2019 Kyrgyzstan’s accession to the Eurasian Economic Union in August 2015 demonstrates the country’s efforts to enter the international market and establish a stable market economy.

Challenges remain however due the strong dependence of the economy on three major but highly volatile sources of income: the exploitation of gold (accounting for about 10 % of GDP), worker remittances (27 % of GDP in 2017), and foreign aid and loans (UNIDO, 2018). In order to counter fluctuations in GDP growth figures, revenues and poverty rates, Kyrgyzstan needs to further diversify economic activities focusing on its strongest assets, including inter alia agriculture, textiles/apparel and water resources, and to establish mechanisms to utilize these competitive advantages. Increasing private sector development and improving occupational skills and productivity in the labor market, especially for youth, are also essential for Kyrgyzstan to reach its full potential.

PCP Kyrgyzstan

The Programme for Country Partnership for the Kyrgyz Republic (PCP Kyrgyzstan) aims to mobilize partners, resources and expertise to accelerate inclusive and sustainable industrialization in Kyrgyzstan.

The PCP rests on a multi-stakeholder partnership between development partners, UN entities, financial institutions and the business sector, under the overall leadership of the national government.Through the PCP, UNIDO provides policy advice to the government, delivers multidisciplinary technical assistance focused on selected priority areas, and facilitates overall PCP coordination and the convening of partners. The various technical projects and programmes are implemented by UNIDO and other development partners, and coordinated through national governing bodies.

UNIDO initiated the programming phase in 2017. The Country Diagnostic for Kyrgyzstan was completed in March 2018, and identified the main challenges and opportunities for advancing industrialization. Based on the results of the Diagnostic, UNIDO supported the Kyrgyz Government in formulating a Strategy for Sustainable Industrial Development for the period 2019-2023 and an accompanying Action Plan. Both the Strategy and the Action Plan were adopted by the Kyrgyz Government on 27 September 2019 (Government Decree No. 502), and will serve as guiding documents for the PCP. The draft PCP Programme Document was revised in line with the priorities of the Strategy and submitted to the Government for approval.

PCP Kyrgyzstan will focus on five priority areas: (i) Modernizing energy infrastructure; (ii) Developing agro-processing value chains with a focus on food and beverages; (iii) Modernizing the construction materials industry; (iv) Upgrading the textiles and apparel industry; and (v) Developing sustainable tourism and its linkages with productive industries.

These will be supported by cross-cutting interventions in areas such as institutional capacity-building in the areas of industrial development, access to finance and investment promotion, export promotion and related quality infrastructure, regional development, environmental sustainability, and information and communication technology infrastructure. The PCP also emphasizes the importance of gender mainstreaming and women's economic empowerment for inclusive and sustainable industrial development.

NATIONAL DEVELOPMENT GOALS

The PCP supports the following national targets from the country’s Programme for the Development of the Kyrgyz Republic 2018-2022, inter alia:

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COORDINATION STRUCTURE

  1. National Coordination Body

    The Government of Kyrgyzstan will set up a National Coordination Body (NCB) to oversee the strategic management to the PCP and lead  implementation. The NCB will comprise high-level representatives from all relevant national government entities, including the State Committee on Industry, Energy and Subsoil Use of the Kyrgyz Republic, which has been an operational focal point during the PCP's programming phase.

  2. UNIDO PCP Team

    A multi-disciplinary technical team of UNIDO experts, both at headquarters and the field, will support the National Coordination Body in the implementation and coordination of the programme. The UNIDO Country Office in the Kyrgyz Republic will play a fundamental role in facilitating field operations and interactions with counterparts and partners.

OUTLOOK FOR 2020

The PCP Kyrgyzstan Programme Document is expected to be signed in 2020, paving the way for the start of implementation. A PCP National Coordination Body will be established under the leadership of the Government.  

DOCUMENTS

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