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Kyrgyz Republic :, Selected Issues

Kyrgyz Republic :, Selected Issues
This Selected Issues paper identifies constraints to economic growth in the Kyrgyz Republic, using the Hausmann-Velasco-Rodrik diagnostic approach. It finds that large infrastructure gaps, weak governance and rule of law, and high cost of finance appear to be the most binding constraints to private investment and growth. Additional critical factors are the quality of education and onerous regulations. There is room to improve both the quality and cost/efficiency of education spending. Although relatively low, labor costs have exceeded productivity growth and there is room to improve labor market efficiency. Despite important investments, the infrastructure gap remains large and the country ranks relatively low on infrastructure quality. Weak governance undermines growth through various channels: investment, human capital, and productivity. Weak institutions increase the cost of doing business and make the appropriation of investment returns less certain, overall reducing investor’s risk appetite to invest. Public debt is on the high side and the composition of spending is tilted toward current spending
international or intergovernmental publication
Literary Form
non fiction
Main title
Kyrgyz Republic :
Nature of contents
Oclc number
Series statement
IMF Staff Country Reports
Sub title
Selected Issues
Table Of Contents
Cover -- CONTENTS -- CONSTRAINTS TO PRIVATE INVESTMENT AND ECONOMIC GROWTH IN THE KYRGYZ REPUBLIC -- A. Background -- B. Growth Diagnostic Methodology -- C. Private Sector Growth Constraints in the Kyrgyz Republic -- FIGURES -- 1. Private Investment and Business Climate -- 2. Decision Tree of Growth Diagnostic Methodology -- 3. Infrastructure, Human Capital, and Labor Market -- 4. Governance -- 5. Fiscal Policy -- 6. Cost of Finance -- References -- KYRGYZ REPUBLIC: UNLEASHING THE POTENTIAL OF THE ELECTRICITY SECTOR -- A. Overview and Potential Economic Benefit of Electricity Sector Reforms -- B. Challenges Facing the Kyrgyz Electricity Sector -- C. A Reform Roadmap -- BOX -- International Experiences on Reforming Electricity Subsidies -- FIGURES -- 1. Kyrgyz Republic: Electricity Sector Performance -- 2. Impact of Individual Electricity Sector Indicators on Per Capita GDP -- 3. Kyrgyz Republic: Electricity Sector Indicators -- TABLES -- 1. Impact of Electricity Sector Development on Per Capita GDP -- 2. Kyrgyz Republic: Cost of Services versus Revenue by Customer Class, 2017 -- APPENDICES -- I. Construction of Electricity Sector Index -- II. List of Countries Used in Empirical Analysis -- References