population of 5.4 Mio. people is primarily rural, only about 35% of the population live in the urban centres of Bishkek, Osh, and Jalal-Abad. An estimated one third of the population lives below the poverty line. Kyrgyzstan’s geography is dominated by the Pamir and Tian Shan mountain ranges, and in fact 65% of the country’s territory is mountainous. Kyrgyzstan has abundant water resources, but the use of these resources either to generate electricity during winter or for irrigation during summer is a source of strain with downstream countries. Water may be plenti-ful, but many Kyrgyz citizen have little access to safe drinking water.Kyrgyzstan’s transition to democracy has been tur-bulent. Public anger at perceived government cor-ruption and at continued widespread poverty led to the popular revolt in 2005 known as the Tulip Revo-lution, in which President Askar Akayev was swept from power.His successor President Kurmanbek Bakiyev was not able to restore full public confidence in the govern-ment, and widespread dissatisfaction over alleged corruption and erosion of civil liberties continued. President Bakiyev was forced to leave office in April 2010, and instability in Kyrgyzstan was then increased by a violent flare up in June of that year between Kyrgyz and Uzbek communities in the south. Over 400 people were killed and an estimated 100’000 ethnic Uzbeks fled across the border to neighbouring Uzbekistan. Many have since returned, and there has been no repeat of the ethnic violence, but tensions between the two communities remain.In May of 2010, Roza Otunbayeva became interim president. Her government introduced a new consti-tution establishing a parliamentary regime, and the new constitution was approved in a referendum in July of the same year. In October of 2010, parliamen-tary elections were held. One year later, Almazbek Atambayev became president, receiving over 60% of the vote in elections which passed off peacefully.

Country Facts and Figures

Population: 5,571,200 (2012)

Life expectancy:female: 73.91 years, male: 65.27 years (2012)

Literacy rate of 15–24-year-olds: 99.6% (2010)

Gross Domestic Product (GDP)/capita:1070 US dollars (2011)

Country Context

The Kyrgyz Republic, part of the Soviet Union until it became independent in 1991, remains one of the poorest among the former Soviet republics. Unlike its neighbours, Kyrgyzstan has few natural resources to boost its economy. The country’s main exports include gold, textiles, fruit and vegetables. In addition remit-tances from an estimated one Mio. Kyrgyz migrants in Kazakhstan and Russia contribute 28% of the country’s gross national product (GNP). Kyrgyzstan’s

SWITZERLAND’S COOPERATION IN KYRGYZSTAN

COUNTRY FACTSHEETFebruary 2013

Bishkek

AzerbaijanArmenia

Bahrain

Bhutan

Georgia

Iraq

KuwaitNepal

India

Qatar

Russia

Afghanistan

Kyrgyzstan

Kazakhstan

China

Pakistan

TajikistanTurkmenistan

Uzbekistan

Tashkent

Dushanbe

Osh

Jalal-Abad Naryn

KarakolKant

Ferghana Valley

Switzerland’s Cooperation in Kyrgyzstan February 2013 1

A national health reform policy supported by Swit-zerland, Germany, Great Britain and the World Bank began in 1996. The reforms are designed to move Kyrgyzstan away from the old Soviet style health sys-tem with its many large and costly hospitals, to a more efficient community health model, with a focus on preventive medicine. Improvements are already being seen: universal coverage has been reached for some basic services, and some key indicators, such as child mortality, have decreased significantly.The main areas of Swiss cooperation include sup-port for medical training, including the introduction of new courses and teaching methods, resulting in more, and better qualified health professionals working in rural areas. The creation of community health committees has proved a particular success: here rural communities are encouraged to define their health problems and priorities themselves, and then work towards solutions with the support of the Ministry of Health. Health committees are set up to give advice on healthy lifestyles. Naryn province has seen such positive effects on health, and on local participation, that the programme is now being ex-tended across the country. Hospital autonomy is also being encouraged, with a special focus on human resources, quality and financial management. A further project is addressing hospital waste, which can be a risk to personal and environmental health if not managed properly. 119 health centres across the country have introduced safe waste management practices, and these are being supported by infec-tion control measures designed to reduce hospital acquired infections.The projects are being implemented primarily by the national health authorities, the World Bank and the Swiss Red Cross.

Public Sector Reform and Infrastructure

Public sector reform is a top priority for the govern-ment of Kyrgyzstan, as it seeks to address years of public dissatisfaction over lack of good services, in-equalities of access, and allegations of corruption. The main goal of Switzerland’s support for public sector reform is to promote transparent and efficient use of public resources.A key activity is at central government level, where Switzerland is supporting government depart-ments, chief among them the Ministry of Finance, to improve the management of state finances. Ex-pertise and advice are being shared to strengthen the budgeting process, mobilize internal resources for development and enhance transparency with re-gard to the use of public funds. Support is also be-ing provided to develop accurate economic analyses and forecasts. Switzerland also provides support to the National Bank to strengthen its oversight super-visory capacities, thereby contributing to financial stability.

Switzerland’s Support to the Kyrgyz Republic

Switzerland has been present in Kyrgyzstan since 1992. Throughout that time Switzerland has endeav-oured to support a peaceful social and economic transition process, by supporting projects which as-sist both public and private institutions to deliver bet-ter services in an equitable and effective way.

Switzerland’s strategy for 2012 to 2015 in Kyrgyzstan focuses on three priority areas: health, the public sector (reform and infrastructure), and private sec-tor development. Programmes in these areas will be supported by the Swiss Agency for Development and Cooperation (SDC) and the Swiss State Secre-tariat for Economic Affairs (SECO) and implemented together with partner organisations. Switzerland is also supporting a regional water man-agement programme in Kyrgyzstan, Tajikistan and Uzbekistan.

Health

Kyrgyzstan’s health system suffered dramatic under-funding in the years following the break up of the Soviet Union, while at the same time its citizens en-dured a double burden of diseases common to both low income and more developed countries. Infant and maternal mortality rates remained high, and cardiovascular diseases increased: they are now the main cause of death.

Key fact: Annual expenditure on health per head of population:Kyrgyzstan $102Switzerland $4011

Switzerland’s Cooperation in Kyrgyzstan February 2013 2

At local level Switzerland is supporting rural com-munities to know their rights and make their voices heard about their public services, with a view to im-proving both access and accountability. As part of improving public service delivery, Switzerland sup-ports the construction of new and the rehabilitation of existing infrastructures in the field of water and energy. The infrastructure investments are accom-panied by measures to improve the management of public water companies.One key project is the rehabilitation of the water and wastewater management systems in the cities of Osh and Jalal-Abad, which aims to guarantee a safe and sustainable water supply, and a reliable sewage ser-vice, by 2014. Similar projects are also underway in Bishkek, Karakol, and Kant.The projects are being implemented through the Ministry of Finance, municipalities, local govern-ments, civil society and communities.

Private Sector Development

While Kyrgyzstan’s economic growth has been dy-namic, a key to further successful development, and ultimately to the alleviation of poverty, is the expan-sion of a thriving private sector, in which new jobs and businesses are created. With a view to promo-ting this, Switzerland is supporting a variety of pro-jects, with a focus on improving the investment climate and access to finance for small and medium-sized enterprises (SME).Reducing the gap between a relatively sound legal framework and poor implementation is a priority.

Projects to improve access to finance are underway, financial literacy of business and individuals will be improved, and financial institutions are advised on best practices in making fast and accurate decisions about applications for credit.Interventions at the market level, improving govern-ance and transparency in the financial sector, are of key importance. In view to enable Kyrgyzstan to develop its export potential Switzerland both sup-ports reforms on the national as well as firm level. Through the establishment of a national quality con-trol institution Switzerland contributes to enhancing access for Kyrgyz produced goods to international markets. Switzerland also supports the development of exportable goods sectors, such as in the field of bio-cotton or in the textile and garment sector. As-sistance is geared towards establishing adequate framework conditions for private companies to flour-ish as well as providing direct support to exporting companies. Switzerland also promotes SME develop-ment and entrepreneurship through business devel-opment services in the country.A particular priority is the development of employ-ment possibilities for people in remote rural areas in the south. Here Switzerland plans to support the cre-ation of new business and training opportunities for young people. The goal is to provide young people with new perspectives – lack of hope for the future is regarded as one of the causes of Kyrgyzstan’s recent ethnic conflicts.The projects are being implemented by the Ministry of Economy, the civil society, international financial institutions and NGOs.

Key fact: In 2011 Kyrgyzstan was ranked 70 out of 183 countries in the World Bank’s ‘Doing Business’ survey

Additional Activities in Kyrgyzstan

Peace Building: Following the clashes in the south of Kyrgyzstan in 2010, Switzerland supported the affected civilian population with humanitarian aid. Today Switzer-land is supporting the Organization for Security and Co-operation in Europe (OSCE) initiative that ensures the safety of the population through train-ing of community leaders and local police. In ad-dition, Switzerland is renovating social institutions in the South.

Culture:Cultural life is important too; since 1998 Switzer-land has been supporting the arts and culture in Kyrgyzstan, and at regional level across Central Asia. This work will continue into 2015. With the aim of achieving more open, dynamic and con-nected Central Asian societies, support is given to a huge variety of cultural productions. Reviv-ing cultural activities in deprived and rural areas of Kyrgyzstan and intercultural co-productions are the most characteristic interventions of this pro-gramme.

Switzerland’s Cooperation in Kyrgyzstan February 2013 3

Water Management is a Regional Issue

Kyrgyzstan, like its neighbours Tajikistan and Uzbeki-stan, depends almost entirely on irrigation for its ag-ricultural production, and in fact almost 90% of the country’s fresh water supply is used up on irrigation systems. Disputes over water management issues have led to strain between Kyrgyzstan, Uzbekistan and Ta-jikistan, particularly in the Ferghana valley, which all three countries share, and which accounts for a third of all Central Asia’s agricultural production.Switzerland has been working in the Ferghana valley since 2001, supporting a water resource manage-ment programme which aims to boost a more ef-ficient use of water, and to encourage local users to take part in decisions over water allocation. A long term goal is to support regional stability by helping all three countries to address the complex and often troubled issue of water through open dia-logue based on facts and objective analysis.This regional programme is implemented mainly in partnership with the World Bank, the Asian Develop-ment Bank and others.

Cross-Cutting Themes

Switzerland promotes increased female representa-tion at all levels of the public and private sector, and the participation of women at all levels of decision-making. One of the measures for achieving this is to provide access to information and knowledge about rights and procedures. It is also important that women are not victims of any discrimination when obtaining access to justice, when seeking employ-ment, or when they require medical care.

Sensitivity to possible ethnic tensions is key to any intervention and Switzerland operates a strict ‘do no harm’ policy in all its activities, while at the same time encouraging conflict mitigation through the promo-tion of, for example, multi-ethnic health committees, facilitating equal access to public services and foster-ing employment in the South of Kyrgyzstan.

By facilitating a better dialogue and cooperation be-tween the government, private businesses and civil society Switzerland promotes “good governance” as one of the conditions necessary for the coun-try’s development. Of the five governance principles adopted by Switzerland (accountability, transparen-cy, non-discrimination, participation and efficiency), accountability, transparency and participation are re-ceiving special emphasis, for example by encourag-ing communities to participate in local development planning together with the authorities.

Financial Input 2012–2015

The overall budget for Kyrgyzstan amounts to 67.5 Mio. CHF over four years. Based on the decision by the Swiss parliament, additional funding may be available in the course of this period.

In addition Switzerland is supporting regional water management with a budget of 40 Mio. CHF over four years.

Swiss International Aid

For the period 2013–2016 the Swiss parliament has approved the Message on International Coopera-tion, which outlines the four main operational areas of Swiss cooperation, among them the cooperation with the states of Eastern Europe and the Common-wealth of Independent States (CIS).

This cooperation aims at strengthening human rights and democracy and promoting economic and social development. Switzerland’s cooperation efforts in Central Asia are led by two government agencies, the Swiss Agency for Development and Cooperation (SDC), and the State Secretariat for Economic Affairs SECO).

Gender, conflict sensitive programme management, and governance are crosscutting themes for all of Switzer-land’s activities in Kyrgyzstan

Management Costs and Non-core Programme Budget: CHF 6.5 Mio.

Health Budget: CHF 14 Mio.

Private Sector Development Budget: CHF 17.5 Mio.

Public Sector Reform Budget: CHF 29.5 Mio.

Imprint

Federal Department of Foreign Affairs FDFA

Swiss Agency for Development and Cooperation SDC

3003 Bern, Switzerland

www.deza.admin.ch

Federal Department of Economic Affairs FDEA

State Secretariat for Economic Affairs SECO

3003 Bern, Switzerland

www.seco-cooperation.admin.ch

Key fact: Irrigation consumes 90% of Kyrgyzstan’s water

Switzerland’s Cooperation in Kyrgyzstan February 2013 4