2008 - present
Supported with funds from the Government of Switzerland.
The project is designed to contribute to the creation of a regulatory environment that supports the development of small and medium enterprises and improve the overall business environment in Kyrgyz Republic.
The challenge
According to official estimates, in Kyrgyz Republic the private sector accounts for 75 percent of GDP and 80 percent of employment. A difficult business environment – marked by excessive and often haphazard government regulation, complicated administrative procedures, and contradictory legal provisions – remains a key barrier to further private sector growth and employment creation. Entrepreneurs’ lack of understanding of their rights and responsibilities exacerbates the situation.
IFC approach
This project builds on IFC’s significant hands-on experience in improving business processes in the region. In the Kyrgyz Republic, IFC works with relevant government agencies and donor organizations to streamline inspections practices and tax administration.
In the tax sphere, the project assists the government in developing and implementing a risk-based audit system, and works to streamline special tax regimes for small and medium businesses with the goal of balancing administrative simplicity and equitable treatment of all taxpayers. In the field of inspections, the project focuses on in-depth work with inspecting agencies to improve legislation governing inspections procedures and to assist in translating these legislative changes into improvements on the ground.
The project monitors changes to the business environment in the Kyrgyz Republic through regular surveys of the private sector. The project also rolls out a wide-reaching public education campaign to increase private sector awareness of their rights, through mass media attention, training events for entrepreneurs and development of easy-to-understand publications.
Learn more from Project brochure.
