July 11, 2016Michael Sutherland-Shaw
In a move that should see improved public sector governance and strengthened private sector competitiveness, the World Bank approved a US$24 million operation for the Kyrgyz Republic.
The operation – Programmatic Governance and Competitiveness Development Policy Operation (DPO) – comprises a credit of US$13.2 million and a grant of US$10.8 million from the International Development Association.
However, the DPO can only be successful through true policy reforms.
With that being said, the Kyrgyz Republic will take aim at strengthening public sector integrity, improving the quality of public services, supporting the implementation of the public procurement law, and improving transparency and accountability within the energy sector.
“Successful implementation of policy actions supported by this DPO will lead to fair and transparent government procedures and institutions, which, in turn, will result in a better, client oriented provision of public services, especially to citizens with the lowest income,” said Jean-Michel Happi, Country Manager for the Kyrgyz Republic.
In addition, the operation will improve business dealings throughout the country by supporting trade and promoting connectivity.
“With improvement in the business and regulatory climate, this will facilitate the much needed growth of the private sector, where the bottom 40% of the population engages in labour activities. The proposed operation will bring positive impact on economic growth and the sustainability of the Kyrgyz economy over medium to long run and will contribute to achieving shared prosperity and inclusive growth,” said Happi.
For Jana Kunicová, senior public sector specialist at the World Bank, the proposed DPO builds on previous reforms in the areas of public personnel integrity, public procurement management, energy sector governance, and business environment improvements.
Since 1992, the World Bank’s mission in the Kyrgyz Republic has been aimed at reducing poverty and promoting economic growth.