ustries play a considerable role in the economy, as Kyrgyzstan is rich in minerals. However, the services sector, created since transition began, may have the most potential as it is not burdened with any inheritance from the centrally planned Soviet economy.
Agriculture is a priority development sector for the government, which aims to increase production levels to meet domestic needs and export any surplus. Increasing net export income in agriculture would consolidate the sector s position in economic development. Stimulating an active agribusiness sector through improved efficiency is another government objective. The main agricultural product is grain, followed by vegetables, cotton and tobacco. Adverse weather conditions and an unprecedented drought in the region yielded lower than expected production levels in 2000. (Investment Profile, Business Forum, Major sectors of the economy, London, 2001). are several government projects under way to boost agribusiness, supported by international financial institutions. The Agriculture Area Development Project, worth a total of US $ 45 million, to which the Asian Development Bank (ADB) has contributed a concessional loan equivalent to US $ 36 million, aims to develop agribusiness in the Chui region in the north. The balance of costs is being met by the government and beneficiary farmers. Of the total project cost, US $ 7 million will be used to develop agribusiness, US $ 12.5 million to strengthen agribusiness materials and technology, and US $ 21 million to upgrade the irrigation systems. The Chui region has been selected for investment because it accounts for 30 per cent of the country s agricultural output, has high potential for agricultural growth and is the focus of other investments designed to raise farm productivity. Agriculture in Chui depends on irrigation, but there is a lack of well regulated water inflows. This project aims to increase the income of farming households threefold to US $ 50 per hectare of irrigated land over the next decade. It complements a World Bank project to provide other agricultural support services. The two IFIs are forming a joint implementation unit for drainage and irrigation, and the World Bank is considering extending a US $ 8.4 million credit line for the further development of irrigation systems in Chui Valley. The ADB will extend some US $ 180 million credit over the next three years for the development of the agro-industrial complex in Kyrgyzstan. Kyrgyzstan s Agricultural Financial Corporation also extends cheap credits to farmers.is also a pilot country in the World Bank s Comprehensive Development Framework (CDF). The CDF takes a holistic approach to development and seeks a better balance in policy making by highlighting the interrelationship between all elements of development - social, structural, human governance, environmental, economic, and financial. Under this approach, the Kyrgyz government is designing and defining its Kyrgyz 2010 Vision with the active participation of key domestic actors - parliament, civil society, the business and international communities - and is developing the first National Poverty Reduction Strategy. The objectives of the World Bank s assistance programme for the Kyrgyz republic in agriculture is basically to facilitate restoration of economic growth, particularly in the rural sector. To this end, The World Bank has various projects, among which is an Agricultura...
