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Kyrgyzstan
The difficult path to reform

As a small country with large neighbours, the Kyrgyz Republic has to rely on sound and well-balanced foreign relations. The Kyrgyz economy is not very diversified and is susceptible to external shocks. Its most important export and a source of foreign exchange is gold. Still, Kyrgyzstan belongs to the group of lower middle-income countries. Around one third of the population lives below the national poverty line. Hundreds of thousands of Kyrgyz nationals earn their living by working in neighbouring countries to support their families back home. In the first years of its independence, Kyrgyzstan was considered to have an above-average commitment to reform. As the necessary reforms have become increasingly complex, the pace of reform has slowed. Within the scope of development cooperation, the primary aim is to promote economic development and the healthcare sector.
As part of the BMZ 2030 reform strategy, the Federal Ministry for Economic Cooperation and Development (BMZ) is ending bilateral development cooperation with Kyrgyzstan. Aside from the projects and measures still underway, no further commitments are planned.
The main goal of German development cooperation is to improve the overall conditions for the private sector, enabling it to create urgently needed jobs. KfW Development Bank has designed several programmes for this purpose. For example, micro and small rural enterprises are granted loans at favourable conditions to enable them to better integrate into agricultural value chains and thus increase their market opportunities. This improves the opportunities families have to earn a living, and further diversifies the national economy. KfW Development Bank also supports financing for housing, so that low-to-medium income households can make urgently needed investments in the construction and renovation of their homes, thus improving their living conditions.
The healthcare sector of the Kyrgyz Republic is undergoing changes. However, the Kyrgyz government lacks the resources to ensure adequate medical care for the population. As a result, it receives support from the international donor community, including KfW Development Bank. KfW participates in the Program for Results, which aims to strengthen basic healthcare. KfW also supports projects to modernise hospital and laboratory infrastructure. The aim is to improve the quality of services, especially in priority areas such as mother-child health, tuberculosis treatment and emergency care, and to provide easier access to these services for the population in rural areas.
Further information
Local office
KfW Office Tashkent
Director KfW Office: Dr. Andreas Schneider
7 A., Chimkentskaya Str.
100029 Tashkent
Uzbekistan
Phone: +99 871 280 6759
Fax: +99 871 280 6760