Kyrgyzstan is a priority country of Switzerland’s transition cooperation with Central Asia. The focus of Swiss engagement for Central Asia, and thus for Kyrgyzstan, is on supporting economic, social and democratic development, strengthening economic ties, promoting good governance as well as an integrated and regional approach in the complex field of transboundary water management. In partnership with the Kyrgyz Government and private stakeholders, SECO supports programmes improving the macroeconomic framework conditions and the efficiency of the public financial management system, fostering a conducive business environment, and promoting the management of their water resources in a climate-resilient, sustainable and inclusive way. In 2022, Switzerland and Kyrgyzstan also celebrated 30 years of collaboration within the Constituency of the Bretton-Woods Institutions (IMF, World Bank).
Kyrgyzstan has witnessed significant changes over the past two years, accompanied by policy uncertainty. Civil society and democratic institutions are under increasing pressure. Overall, the economic situation is still very vulnerable to external shocks and was further complicated by security concerns arising from border conflicts and Russia’s military aggression against Ukraine. The country faces serious challenges of over-indebtedness. Kyrgyzstan has not succeeded in capitalising on its Eurasian Economic Union membership, and the slow pace of strategic reforms by consecutive governments has discouraged investments. Kyrgyzstan is very dependent on its gold production and its economic relations with Russia. Thus, the diversification of its economy through private-sector development and skills training is crucial. The country offers great potential for hydroelectricity production, the expansion of the agriculture sector and tourism.
What are SECO’s objectives?
SECO and the Swiss Agency for Development and Cooperation (SDC) jointly define and implement the Swiss cooperation programme 2022 - 2025 for Central Asia. As an overall goal, Switzerland will contribute to peace and social cohesion as well as to responsive and strengthened institutions and sustainable development in order to improve the resilience of the population in Central Asia. In this framework, SECO focuses on inclusive accountable governance, sound macroeconomic resilience and a conducive business environment, as well as on climate change and sustainable water management infrastructure, including:
- Water, infrastructure and climate change
SECO supports Kyrgyz’s efforts to provide climate change resilient, reliable and sustainable urban water management. It also fosters energy efficiency in public buildings in Kyrgyzstan and the development of legal and policy frameworks for implementing integrated water resource management and managing climate-resilient and inclusive urban development.
- Effective Public Financial Management (PFM)
SECO supports the Kyrgyz Government in implementing reforms and capacity building of relevant national and local administrations and macro-economic institutions to enable them to manage public finances effectively.
- Competitive and environmentally friendly Business Environment
SECO is working to strengthen the framework conditions that increase the financial and private sector resiliency to external and internal shocks. It also fosters that micro, small and medium-sized enterprises (MSMEs) operate in a sustainable business environment with access to capital/investments, business services, innovative technologies and a skilled workforce.
Climate change and environmental protection, good governance, gender equality and social inclusion are integrated in a transversal manner in all the interventions.
From 2022 to 2025, a total of some CHF 85.3 million is foreseen for Swiss transition cooperation with Kyrgyzstan, of which around CHF 40 million is from SECO.