AT A GLANCE
- The Kyrgyz Republic joined CAREC in 1997
- Since 2001, more than $1.12 billion has been invested in transport, trade, and energy
- 20 ongoing CAREC projects
- 4 completed CAREC projects
CAREC in the Kyrgyz Republic
The Kyrgyz Republic has participated in the CAREC Program since 1997, when, as a recently independent state, it embraced a vision of mutual cooperation with its neighbors in fostering a new era of development and prosperity following the collapse of the Soviet Union.
The country shares its borders with Kazakhstan to the north and northwest, Uzbekistan to the southwest, Tajikistan to the south, and the People’s Republic of China to the southeast.
As a key node in an international land-transport network that is improving livelihoods across the vast Central Asian region, and as a founding member of the CAREC partnership, the Kyrgyz Republic is working to promote shared solutions to the problems posed by barriers to growth and connectivity. It also aims to put Central Asia at the heart of Eurasia's trade and commerce as global markets increasingly integrate.
Since its formal inception in 2001, CAREC has mobilized around $1.08 billion for 24 projects with a regional dimension that included the Kyrgyz Republic. These projects have helped improve transport, trade, and energy infrastructure and policies, based on the premise that better connections are key to unlocking Central Asia’s vast resources and human potential.
Among these are large investment projects in infrastructure—such as the rehabilitation of major roads and the construction of new power grids—that are expected to help invigorate the economy. Many other projects with a regional dimension, including additional power grids and hydropower plants, are in negotiations as of 2013.
Achieving sustainable economic growth remains the major challenge. The government has drafted a long-term development strategy that focuses on inclusive growth, poverty reduction, and wide-ranging reforms in various economic sectors—all in support of sustainable growth. The CAREC Program will help the government achieve its goals.
Highlights from the Asian Development Outlook 2015:
Growth slowed to 3.6% in 2014 as the economies of the Russian Federation and Kazakhstan weakened, while local currency depreciation of about 19% pushed inflation to 7.5%. With economic contraction expected in the Russian Federation, growth will likely slow further to 1.7% in 2015 before recovering slightly to 2.0% in 2016 as the external environment shows some improvement. Inflation will likely reach or exceed 10%, and the current account deficit 15% of GDP. Read full report
The United Nations Development Programme prepares reports on human development in the Kyrgyz Republic.