Publication: Kyrgyz Republic - Systematic Country Diagnostic Update: From Vulnerability to Resilience
Loading...
Published
2023-05-04
ISSN
Date
2023-08-16
Author(s)
Editor(s)
Abstract
The Kyrgyz Republic has recorded steady progress in poverty reduction and shared prosperity over the past twenty years. The government’s national development program to 2040 sets a clear target for continued growth and improved living standards. The overarching theme of the Systematic Country Diagnostic (SCD) update is the need to improve the economic environment to create jobs and efficiently provide public goods and services while ensuring the efficiency of natural resources to build climate resilience, reduce vulnerability, and support green growth. The central goals of rising prosperity and falling poverty face three threats in the current international context: (i) slowing global growth and higher vulnerability to external shocks - disruptions to trade and transit, food, and energy price shocks that jeopardize the progress on fighting poverty, and climate shocks; (ii) a decline in competitiveness as relative productivity performance deteriorates because of poor opportunities for the private sector amidst dominant state owned enterprises (SOEs), large infrastructure gaps, and inadequate banking and capital markets; and (iii) institutional under-preparedness to address the new generation of complex development tasks and manage risks through long neglect, especially in public policy and governance, but also in capabilities to handle climate change risks. In this context, this report finds that the transition of the Kyrgyz economy to productivity driven growth is constrained by the following key issues: continued dependence on old drivers of growth; progress on poverty reduction and inclusion stalls, and the potential for further gains remains uncertain; little progress on institutional reforms and governance strengthening; and increased environmental risks, natural resource degradation, and vulnerabilities.
Link to Data Set
Citation
“World Bank. 2023. Kyrgyz Republic - Systematic Country Diagnostic Update: From Vulnerability to Resilience. © World Bank. http://hdl.handle.net/10986/40210 License: CC BY-NC 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Romania - Systematic Country Diagnostic Update(Washington, DC, 2023)This report is an update to the first comprehensive Romania Systematic Country Diagnostic (SCD), published in 2018, which identified a set of development priorities for Romania to achieve the twin goals of poverty reduction and shared prosperity. While the earlier diagnostic remains largely valid, several emerging themes have become prominent in recent years, bringing both challenges and opportunities for the country to reach the development goals in the medium and long term. These include impacts from the COVID‐19 pandemic and Russia’s invasion of Ukraine on Romania’s economy and people, a drive toward the digital and green transformations, and access to sizable EU funds. Alongside these trends, challenges around demography, institutions, and governance continue to play a crucial role on Romania’s development agenda. This report validates the relevance of priorities identified in the SCD 2018, revises the priorities and high‐level outcomes based on new evidence, and provides the analytical underpinnings for the next Country Partnership Framework. Romania continues its economic progress of growth and income convergence, yet the ‘tale of two Romania’s’ persists. The SCD 2018 summarized the overarching narrative of the country’s socio‐economic development as a tale of two Romania’s: one urban, dynamic, and integrated with the EU; the other rural, poor, and isolated. Five years on, the country has made some progress in addressing constraints to growth as well as in reducing poverty and inequality, despite several unprecedented shocks, such as the COVID‐ 19 pandemic, and Russia’s invasion of Ukraine. Romania’s growth rate remains among the highest in the EU, boosting convergence in living standards with the average Europeans. However, Romania’s poverty rate is still the highest in the EU. Inequality also remains relatively high compared with other EU countries, with sizeable disparities across Romania’s regions. This SCD identifies six High‐Level Outcomes (HLOs) to expedite Romania’s achievement of the twin goals, reduced poverty and shared prosperity. The HLOs, if achieved over the next five to ten years, would mark an improvement in the wellbeing of the population, and especially the poorest and most vulnerable. These are (i) predictable institutional and economic environment for people and businesses; (ii) equal access to high‐quality public services at central and local government; (iii) better health and education outcomes for all; (iv) favorable conditions for more and better private sector jobs; (v) climate change mitigation for environmental sustainability of economic activity; and (vi) resilience to shocks and adaptation to climate change, especially for vulnerable households. While many HLOs are connected, HLO‐1, Predictable political and economic environment for people and businesses, is the most cross‐ cutting. This reiterates the key lesson from the SCD 2018: despite impressive economic growth, achieving shared prosperity and sustainable welfare improvements will remain a distant reality if Romania does not address its governance challenges.Publication Cote d’Ivoire - Systematic Country Diagnostic Update(Washington, DC, 2023)Côte d’Ivoire experienced strong growth over the last decade. For the next ten years, the government has set ambitious targets, including reaching emerging market status by 2030. This would require maintaining a fast growth path to double gross domestic product (GDP) per capita. To achieve this and make economic growth more inclusive. Economic success has been associated with a sharp decline in poverty, and a moderate expansion of the middle class. Although the poverty rate declined substantially, it remains high, as does inequality, and disparities within the country are concerning. The global Coronavirus (COVID-19) pandemic had a significant impact on the economy, with the swift response helping to mitigate the impact. The pandemic also had a significant impact on poverty and livelihoods. As the country exits the COVID-19 crisis with limited fiscal space, it needs to renew its emphasis on structural reforms. The country is coming out of the crisis with limited fiscal space and higher public debt, restricting its ability to continue pursuing high public investments and ensuring adequate levels of social spending. The impact of COVID-19 on advanced economies may also mean a sustained decline in Foreign direct investment (FDI) inflows. The analysis of this Systematic country diagnostic (SCD) update indicates that Cote d’Ivoire will need to continue to remove market frictions, sustain investment in infrastructure and human capital for higher-productivity and long-term growth. Although, the report is prepared in a complex global economic context with geopolitical tensions, a climate emergency, and rising regional security risks, the fundamental challenges to inclusive growth and poverty reduction have not significantly changed since the 2015 SCD. The key policy challenges and opportunities to promote shared prosperity and reduce poverty are structured along three pathways: (1) Improving agricultural productivity and rural incomes; (2) Creating jobs through private sector–led growth; and (3) Enhancing service delivery and public spending to accelerate human capital development.Publication Democratic Republic of Congo Systematic Country Diagnostic(World Bank, Washington, DC, 2018-03)The Democratic Republic of the Congo (DRC) is a classic example of the paradox of plenty, since the country is extremely rich in natural resources while its population is extremely poor. It is the largest country in Sub-Saharan Africa (SSA) with a total surface area of about 234 million hectares (equivalent to the size of Western Europe). Poverty in the DRC remains pervasive, and greater than the SSA average. About two-thirds of the population lives below the poverty line. Chapter 2 of the systematic country diagnostic (SCD) shows that between 2005 and 2012 the proportion of people living below the poverty line declined from 69.3 percent to 64 percent, respectively. Demographic trends, reinforced by gender discrimination and lack of social policies, contributed to maintaining poverty at relatively high levels. The poor state of infrastructure is a major constraint on sustainable and inclusive growth in the country. The country’s weak institutions failed to build the foundations of a resilient economy and absorb external shocks, hence exposing the society to cycles of violence and impoverishment. The report identifies five major emerging opportunities and priority areas where policy actions can provide quick wins and build cumulative and virtuous cycles to sustain inclusive growth and foster resilience and shared prosperity over the next decade: (1) building the resilience of the macroeconomic framework; (2) building inclusive institutions and strengthening governance; (3) leveraging natural resources, infrastructure, and agriculture; (4) building human capital; and (5) leveraging the private sector by effectively implementing investment climate reforms, and strengthening institutions that support markets.Publication Belize Systematic Country Diagnostic(World Bank, Washington, DC, 2016-01-29)Belize has a rich history that dates back thousands of years. The country was first inhabited by the Mayans with records of their presence dating from 1500 BC. The first recorded European settlement was established circa 1638 by the British who called the country the Colony of British Honduras. The official name of the territory was changed from British Honduras to Belize in June 1973, and full independence was granted on September 21, 1981. There were several obstacles in the path toward independence, as illustrated by Guatemala's long-standing claim to the entire territory. It was only in November 1980, after several frustrated negotiations with Guatemala that Belizean diplomacy managed to obtain international support that led to the United Nations passing of a resolution that demanded the independence of Belize, but it was only in 1992 that Guatemala formally recognized Belize’s independence. After independence, Belize successfully implemented a development strategy which emphasized economic diversification and private sector development at a time where the terms of trade were favorable to the country. As a small, open economy, that is also extremely vulnerable to climate change and natural disasters, Belize’s ability to promote faster poverty reduction and greater shared prosperity will depend on how well the country deals with its main sources of vulnerability. In addition to weaknesses in infrastructure and in the skills of the labor force, several studies have pinpointed crime and violence and problems in the financial sector as important deterrents to growth. The analysis in this report confirms the centrality of these two factors. The predicament in the financial sector is largely driven by the small economic size of the country and the lack of competition in the banking sector, a common feature in small state economies that limits the availability of credit to small and medium enterprises. Stability issues in the sector complicate matters as these impose non-negligible risks to the health of the financial sector. On the other hand, the rise in the inflow of migrants from neighboring Central American countries with a history of crime and violence has been raised as a potential cause for high crime rates in Belize, but there is not enough evidence to substantiate that claim at this point. Policy interventions that could help halt the rise in criminality rates include ramping up the quality of education, keeping children at school, promoting education equivalency programs and job training, besides more direct approaches such as investing in safe neighborhood programs.Publication Republic of Zambia Systematic Country Diagnostic(World Bank, Washington, DC, 2018-03-15)Zambia has successfully raised its average annual gross domestic product (GDP) growth rate since the early 2000s. Between 2004 and 2014, it averaged 7.4 percent per year. This success was driven by an improvement in the macroeconomic indicators (relative to the 1980s and 1990s), debt relief, heavy investment in the social sectors (by the government and cooperating partners), and a large increase in mining and agricultural production since 2004. This success raised average p Rapid urbanization has been accompanied by a decrease in urban poverty incidence, but masks sluggish growth in small towns and cities. After a decade of de-urbanization in the 1990s, urbanization has been an important driver of change over the past 15 years. However, from 2000 to 2014, urban growth in Zambia has been significantly more focused on the capital city than the average for Sub-Saharan Africa. The annual population growth of Lusaka is over twice the average for Sub-Saharan Africa (1 percent). In contrast, the share of secondary towns in Zambia is growing more slowly than in the rest of Africa (by only 0.7 percent in Zambia compared with 1.8 percent elsewhere). These disparities may exacerbate uneven territorial development, as small towns and cities play a crucial role in strengthening the links among firms; between firms and consumers; and within local, provincial, national, and international supply chains. er capita incomes after decades of economic volatility since the country’s independence in 1964. The current development model being pursued has imposed environmental and resource liabilities. Agricultural growth has been based on increasing land use rather than improved productivity, leading to rapid deforestation. Mining activities have resulted in pollution, and Zambia also faces high and growing climate change impacts. Copper price volatility also continues to challenge macroeconomic and fiscal management. Debt levels have soared to risky levels only 12 years after the Heavily Indebted Poor Country (HIPC) and the Multilateral Debt Relief Initiative (MDRI) programs provided US$6.5 billion of debt relief from 2005.
Users also downloaded
Showing related downloaded files
Publication Classroom Assessment to Support Foundational Literacy(Washington, DC: World Bank, 2025-03-21)This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.Publication Morocco Economic Update, Winter 2025(Washington, DC: World Bank, 2025-04-03)Despite the drought causing a modest deceleration of overall GDP growth to 3.2 percent, the Moroccan economy has exhibited some encouraging trends in 2024. Non-agricultural growth has accelerated to an estimated 3.8 percent, driven by a revitalized industrial sector and a rebound in gross capital formation. Inflation has dropped below 1 percent, allowing Bank al-Maghrib to begin easing its monetary policy. While rural labor markets remain depressed, the economy has added close to 162,000 jobs in urban areas. Morocco’s external position remains strong overall, with a moderate current account deficit largely financed by growing foreign direct investment inflows, underpinned by solid investor confidence indicators. Despite significant spending pressures, the debt-to-GDP ratio is slowly declining.Publication Argentina Country Climate and Development Report(World Bank, Washington, DC, 2022-11)The Argentina Country Climate and Development Report (CCDR) explores opportunities and identifies trade-offs for aligning Argentina’s growth and poverty reduction policies with its commitments on, and its ability to withstand, climate change. It assesses how the country can: reduce its vulnerability to climate shocks through targeted public and private investments and adequation of social protection. The report also shows how Argentina can seize the benefits of a global decarbonization path to sustain a more robust economic growth through further development of Argentina’s potential for renewable energy, energy efficiency actions, the lithium value chain, as well as climate-smart agriculture (and land use) options. Given Argentina’s context, this CCDR focuses on win-win policies and investments, which have large co-benefits or can contribute to raising the country’s growth while helping to adapt the economy, also considering how human capital actions can accompany a just transition.Publication World Development Report 2006(Washington, DC, 2005)This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.Publication Europe and Central Asia Economic Update, Spring 2025: Accelerating Growth through Entrepreneurship, Technology Adoption, and Innovation(Washington, DC: World Bank, 2025-04-23)Business dynamism and economic growth in Europe and Central Asia have weakened since the late 2000s, with productivity growth driven largely by resource reallocation between firms and sectors rather than innovation. To move up the value chain, countries need to facilitate technology adoption, stronger domestic competition, and firm-level innovation to build a more dynamic private sector. Governments should move beyond broad support for small- and medium-sized enterprises and focus on enabling the most productive firms to expand and compete globally. Strengthening competition policies, reducing the presence of state-owned enterprises, and ensuring fair market access are crucial. Limited availability of long-term financing and risk capital hinders firm growth and innovation. Economic disruptions are a shock in the short term, but they provide an opportunity for implementing enterprise and structural reforms, all of which are essential for creating better-paying jobs and helping countries in the region to achieve high-income status.