Alexander Kremer, the World Bank’s Country Manager in the Kyrgyz Republic, discusses the Bank’s activities over the past two decades.
European Times: What are the World Bank’s projects in the Kyrgyz Republic?
Alexander Kremer: We have been active in the Kyrgyz Republic for 20 years and have provided financing of over €774.5 million, including €154.9 million since April 2010. Our financing is 45% grants and 55% highly concessional loans. We operate in practically every sector of the economy as well as in the social sphere; urban and rural infrastructure, transport, energy, private-sector development, education and healthcare. In terms of funding volume, the larger part of our support is directed into agriculture and rehabilitation of irrigation schemes.
Our overall goal is to help the country achieve macroeconomic stability. We are now in the middle of a two-year assistance programme which was devised in the aftermath of the April 2010 events and is aimed at ensuring stabilisation through supporting stable macroeconomic and fiscal balance, improving governance and fighting corruption, and working for social stability in the Kyrgyz Republic.
European Times: How is the government performing?
Alexander Kremer: Back in June 2010, even the most optimistic scenario did not envisage all the progress that has been made. Kyrgyzstan has held a successful constitutional referendum and two successful general elections − parliamentary and presidential. The macroeconomic programme agreed on with the IMF is on track despite major challenges. Construction and services have been growing and mining should be growing as well by 2013. In addition, the government has made sincere efforts to fight corruption. One positive achievement is the reform which has made land registration open, transparent and quicker. A very important ongoing process is the reform of the legal and institutional framework for the mining sector. The World Bank has been providing advisory support to the Kyrgyz government in this area as well.
European Times: What does Kyrgyzstan need to do to attract more investors?
Alexander Kremer: The interface between the state and private investors needs to become more transparent, and the Kyrgyz government is working on this. It is now less a matter of changing the rules, but more a matter of changing the behaviour of institutions to make sure that the rules are applied. Reforms of the mining sector, improvements in education, the ongoing battle against corruption and the need for higher energy tariffs, are issues the government will have to face.
European Times: Where do you see Kyrgyzstan in five years?
Alexander Kremer: When you look at what the country has gone through since April 2010, you realise there is probably no challenge that it cannot deal with. Kyrgyzstan is certainly capable of strong growth. I advise international investors to come here and meet the Kyrgyz people, who are quite extraordinary in their entrepreneurialism and openness to new ideas.
