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Major challenges

DFID: Working to reduce poverty in Kyrgyzstan

Making aid effective | Health and HIV/AIDS | Governance and Financial management | Community Development | Water and sanitation

DFID has been active in Kyrgyz Republic since 1997. Current expenditure on the bilateral programme is £7 million per year. We use a range of aid instruments including, technical assistance projects, programme-based support and a health sector budget support operation that is unique in the region. Key themes of DFID support are governance, service delivery, accountability and HIV and AIDS.

Making aid effective

Kyrgyzstan is an OECD-DAC pilot country on Aid Effectiveness, and this is central to DFID’s work. We are members of a Joint Country Support Strategy (JCSS) (2007-10) with the World Bank, Asian Development Bank, the Swiss Government, the EC, the German Government and the UN.

Through the JCSS we support implementation of the Government’s Country Development Strategy (CDS) (2007-10). The CDS presents a change in emphasis following the March 2005 “Tulip Revolution” with a greater focus on job creation and economic growth. Achievement of poverty reduction is anchored on four strategic pillars—economic development, governance and transparency in public administration, human resource development, and environmental sustainability.


Health and HIV/AIDS

DFID provides £7M of health sector budget support in a co-financing arrangement with four other donors to support implementation of the National Health Strategy (Manas Taalimi). This has been an excellent example of applying aid effectiveness principles in practice and creating a positive impact on sector performance. Additional safeguards have been put in place to ensure proper and accountable use of sector funds.

DFID provides regional support on HIV and AIDS through our Central Asia Harm Reduction Project (CARHAP) (2004-9), which covers Kyrgyzstan, Tajikistan and Uzbekistan. The project supports harm reduction activities for high-risk groups, and implementation of national strategies to combat the disease. One of the results of this project is establishment of harm reduction centres that offer syringe and needles exchange and condom distribution in the beneficiary countries.

DFID also provides co-financing to the World Bank regional project on Central Asia HIV and AIDS (CAAP), and we work very closely with UNAIDS, USAID and other UN agencies across the region.


Governance and Financial management

Promoting good governance cuts across all of our work. DFID assists the GoK in tackling governance issues and taking forward Public Financial Management reform through our PFM project. This support aims to:

  • improve the budget formulation process;
  • strengthen internal audit; help rationalise and re-organise the Ministry of Finance;
  • and strengthen voice and participation to increase accountability and transparency particularly in public expenditure.

Aid effectiveness principles are applied and DFID has galvanised much better donor co-ordination in PFM under government leadership.

DFID also works with the World Bank, IMF, EBRD and civil society organisations in assisting Kyrgyzstan to implement the Extractive Industry Transparency Initiative (EITI). Work with civil society ensures active and productive engagement in EITI, and attention to transparency issues. We are now exploring opportunities to assist the Government in applying the EITI principles to the pharmaceutical industry, under the Medicines Transparency Alliance (MeTA) initiative. Kyrgyzstan is a pilot country for two years (2008-2010).


Community Development

DFID has allocated £7 million to the second phase of the Village Investment Programme, which aims to reduce rural poverty through empowering communities to improve access to social and economic infrastructure services. DFID co-finances with the WB and German Government with all funds managed by ARIS, the national Community Development and Investment Agency. ARIS provides project coverage to 100% of village municipalities in the country. The impact is likely to be far reaching: improved access to essential infrastructure services, better and more accessible education, sanitary and health facilities, more employment opportunities, better access to markets and a general revitalisation of rural communities.


Water and sanitation

DFID supported the water sector through the Rural Water Supply and Sanitation Project (2002-2008) implemented jointly with the World Bank. The main goal of this project is to improve water supply, hygiene and sanitation facilities at village level in three oblasts in the north of Kyrgyzstan. The Asian Development Bank assists the government in covering the four remaining oblasts. DFID’s £4,5m technical assistance was geared towards capacity building of the Department of Rural Water Supply and mobilising and training Community Development Water Users’ Union to effectively run and maintain newly built or rehabilitated water supply systems. Following the request of the Kyrgyz Government, WB and DFID are jointly developing a follow up project to further increase the access to clean water and improve sanitation in the country.