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PROGRAMME FOR COUNTRY PARTNERSHIP

KYRGYZSTAN

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TIMELINE

  • UNIDO’s PCP Kyrgyzstan Team receives the Kyrgyz Delegation led by Emil Osmonbetov, Chairman of the State Committee on Industry, Energy and Subsoil Use, to discuss progress and follow-up activities related to the PCP, at the occasion of the 46th session of the UNIDO Industrial Development Board.

    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.

    The State Committee on Industry, Energy and Subsoil Use of the Kyrgyz Republic submits the draft Industrial Development Strategy of Kyrgyzstan to the Parliament for consideration and approval.

  • UNIDO submits the draft Industrial Development Strategy of Kyrgyzstan 2018-2022 to the Government for endorsement.

  • President Sooronbai Jeenbekov endorses the National Development Strategy of Kyrgyzstan 2018-2040, defining the strategic benchmarks for the long-term development of the country.

  • 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 a national industrial development strategy for Kyrgyzstan in Bishkek. 

    National stakeholders validate methodology, workplan and deliverables.

  • UNIDO completes the PCP Kyrgyzstan Country Diagnostic identifying challenges faced by industrial sectors, and opportunities and solutions for accelerating industrialization in the country. 

  • The Government of the Kyrgyz Republic, with the support of UNIDO, commences the formulation of a national industrial development strategy for 2018-2022.

    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 2018 Kyrgyzstan’s accession to the Eurasian Economic Union (EAEU) 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) seeks 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 agencies, financial institutions and the business sector, under the overall leadership of the national government.

PCP Kyrgyzstan is aligned with government priorities in the National Strategy for Sustainable Development of the Kyrgyz Republic 2018-2040, the programme "Jany Doorgo Kyrk Kadam 2018-2023” (40 Steps to a New Era 2018-2023), the Programme for the Development of the Kyrgyz Republic 2018-2022, the Agriculture and Food Security Strategy – Concept of Food Security for 2009-2019, the Programme for the Development of Food and Processing Industry of the Kyrgyz Republic for 2017-2021, and the Programme for the Development of Tourism until 2020, among others.

UNIDO has been supporting the government in formulating an overarching industrial strategy to drive inclusive and sustainable economic growth, in line with existing national development strategies. The draft PCP Kyrgyzstan Programme Document was developed building on the findings of the UNIDO country diagnostic, the national Industrial Development Strategy, and extensive consultations with the Kyrgyz Government, counterpart institutions and other partners.

PCP Kyrgyzstan will focus on six priority areas: (i) developing agro-processing value chains with a focus on food and beverages; (ii) upgrading the textiles and apparel industry; (iii) promoting renewable energy with a focus on hydropower; (iv) developing sustainable tourism and its linkages with productive industries; v) modernizing the construction materials industry; and vi) supporting the sustainable development of the mining sector.

These will be supported by cross-cutting interventions in areas such as quality infrastructure and trade facilitation, environmental management and sustainable energy, access to finance and investment promotion, implementation of multilateral environmental agreements, and information and communication technology.

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.

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. Inter-Ministerial Working Group

    An Inter-Ministerial Working Group is being established under the leadership of the Government of Kyrgyzstan. It will be composed of representatives from: Ministry of Economy, Ministry of Foreign Affairs; Ministry of Culture; Information and Tourism; Ministry of Transport and Communication; Ministry of Agriculture and Melioration; Ministry of Education and Science; and the State Committee on Industry, Energy and Subsoil Use, among other national counterparts.

    This Inter-Ministerial Working Group will meet regularly to provide strategic direction to the PCP and oversee resource mobilization efforts for PCP activities. It will also ensure coordination among the various partners involved in the programme.

  2. PCP Working Groups

    Working Groups will be established for each PCP priority area. Each Working Group will hold regular coordination meetings and provide the necessary technical updates on implementation.

OUTLOOK FOR 2019

The national Industrial Development Strategy is expected to be approved by the Government of Kyrgyzstan in 2019, which will lead to the finalization of the PCP Kyrgyzstan Programme Document and related technical interventions.

DOCUMENTS

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