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					           KYRGYZSTAN




RESULTS, REVIEW AND RESOURCE REQUEST
                     (R4)




       USAID Central Asia Regional Mission

             ALMATY, KAZAKHSTAN
                 February 1998
                                         TABLE OF CONTENTS



I.     OVERVIEW AND FACTORS AFFECTING PROGRAM
       PERFORMANCE ........................................................................................... 1


II.    PROGRESS TOWARDS OBJECTIVES ...................................................... 2

       Summary Table of Strategic Objectives .......................................................... 3

       A.       SO 1.2: Increased Soundness of Fiscal Policies and Fiscal
                Management Practices ........................................................................... 5
       B.       SO 1.3: Accelerated Development and Growth of Private
                Enterprises ........................................................................................... 11
       C.       SO 1.4: A More Competitive and Market-responsive Private
                Financial Sector ................................................................................... 17
       D.       SO 2.1: Increased, Better Informed Citizens’ Participation in
                Political and Economic Decision-making.............................................. 22
       E.       SO 2.3: More Effective, Responsive and Accountable Local
                Government........................................................................................... 38
       F.       SO 3.2: Improved Sustainabliity of Selected Social Benefits
                and Services ......................................................................................... 44
       G.       SO 4.1: Special Initiatives .................................................................. 50


III.   STATUS OF THE MANAGEMENT CONTRACT..................................... 57


IV.    RESOURCE REQUIREMENTS .................................. (Separate Submission)
I. OVERVIEW AND FACTORS AFFECTING PROGRAM PERFORMANCE

The development context in Kyrgyzstan has not changed significantly over the past year.
Political and economic reform are proceeding apace. On the economic front, the currency is
remarkably stable, inflation is under control and falling, real interest rates have fallen, and
economic performance is improving. In fact, the overall growth rate for calendar year 1997
may well exceed seven percent and, according to a November 1997 article in the Economist
magazine, Kyrgyzstan has one of the three most rapidly growing economies in the former
Soviet Union. However, the Kyrgyzstani economy received a large boost from the coming
on line of a gold-mining venture. With gold prices falling, it remains to be seen how much
further such ventures can take the economy.

Kyrgyzstan continues to receive support from the International Monetary Fund and other
donors, a sure sign of confidence in the economic results already realized in this mountainous
country. Approximately three-fifths of the economy is in private hands, and a small but
burgeoning stock market facilitates further privatization and secondary trading. Bank reform
has resulted in an increasingly strong financial sector; international accounting standards have
helped increase transparency and should curb corruption in this sector and in other sectors as
well. Substantial progress has been made toward accession to the World Trade Organization.
The accession process itself has served to facilitate harmonization of Kyrgyzstani practices
with world trading practices. Complementing such activity has been ongoing work on the
creation of key commercial laws. A foreign investment law, procurement law, tax code, and
new customs code have all been passed. Work is underway on a new civil code and other
business-related legislation.

On the political side, press freedom may be enhanced through improved draft legislation
which President Akayev intends to introduce to the existing criminal code in the Parliament
or through executive pardons for journalists tried under libel charges. A religious group,
formerly denied registration, has now been registered. Many other groups engage in religious
activities without difficulty. Hundreds of non-governmental organizations engage actively on
these and other questions. Parliamentary elections were held in 1997, but electoral practises
cannot yet be considered fully evolved. That said, the parliament has become one of the most
active in the former Soviet Union. New legislation has in many ways clarified the legal
status of citizens, businesses, and other organizations, but to date the courts remain weak and
relatively ineffective. Kyrgyzstanis who have received training from US entities are now
modifying traditional practices in government offices, developing NGOs, advising
international organizations, and generally helping to promote a more effective civil society.
Independent radio and television stations have received support on managing effectively,
boosting revenue through advertising sales, and enhancing journalistic standards.

Despite the encouraging political and economic environment, widespread poverty is evident in
Kyrgyzstan and high unemployment means that many Kyrgyz experience numerous
difficulties in meeting minimum daily needs. To improve this situation, cost-effective,
market-based approaches to maintain basic services in health and housing have been

                                               1
implemented. Notably, key laws were passed on condominium formation as well as on a
unified property registration system and a national housing policy. Also of note, health
reform based on efficient health care models initiated by USAID/CAR has been welcomed in
all six oblasts of Kyrgyzstan. National roll-out was in August 1997. Use of World Health
Organization guidelines have resulted in substantive cost savings per cured patient. An
infectious disease program targetted child morbidity and mortality. These activities,
complemented by a health partnership program, have transferred much needed technology and
tools to decision-makers to develop and strengthen both primary and tertiary health care.

Global climate change is also of concern in Kyrgyzstan and throughout Central Asia. Over
the next five years, Mission efforts in this area will be based upon existing legal and
regulatory reforms and environmental programs in the areas of oil and gas and electricity
generation, as explained more fully in the Regional R4 for Central Asia.

II. PROGRESS TOWARD OBJECTIVES

To enable Kyrgyzstan to use scarce resources efficiently and fairly, the Mission supports
activities under the strategic objectives in the chart below. In this connection, the Mission
would like to underscore that health earmarks for medical partnerships, infectious diseases,
and family planning are all described under SO 4.1 (Special Initiatives). These earmarks
support health reform initiatives. Also, the Mission would further like to emphasize that the
cross-cutting nature of activities under SO 4.2 (Cross-cutting programs) and the fact that the
impact of such activities is measured in other strategic objectives means that a formal R4
framework and assessment are not required. Finally, the Mission notes that SO 1.5 (An
effective policy framework in place to achieve private investment in an environmentally
sound, regionally efficient, market-oriented energy sector) and SO 1.6 (Reduction in regional
economic and political tensions generated by transboundary environmental issues) are regional
strategic objectives with activities in Kyrgyzstan. A complete description of their activities is
in the Mission's Regional R4 for Central Asia.




                                                2
Summary Table of Strategic Objectives

 Strategic Objective                      Rating           Evaluation Findings
 1.2     Increased soundness of fiscal    On track         No recent evaluations
         policies and fiscal management
         practices
 1.3     Accelerated development and      On track         No recent evaluations
         growth of private enterprises
 1.4     A more competitive and           Better than      No recent evaluations
         market-responsive private        expected
         financial sector
 2.1     Increased, better-informed       Exceeds          No recent evaluations
         citizens' participation in       expectations
         political and economic
         decision-making
  2.3    More effective, responsive,      New strategic    New SO -- not applicable
         and accountable local            objective
         government
 3.2     Improved sustainability of       Better than      The Mission’s health reform
         selected social benefits and     expected         activities, implemented by ABT,
         services                                          were recently evaluated. All
                                                           recommendations have been
                                                           incorporated in Mission activities.

 4.1     Special Initiatives              Satisfactory     Recent evaluations include 1) the
                                                           Mission’s SOMARC project for
                                                           contraceptive social marketing
                                                           and 2) Mission activities in
                                                           infectious diseases. All
                                                           recommendations have been
                                                           incorporated in Mission activities.

 4.2     Cross-Cutting Programs           Not              No recent evaluations
                                          applicable for
                                          this R4
 1.5     An effective policy framework    Described in     See Regional R4 for Central Asia
         in place to achieve private      Regional R4
         investment in an                 for Central
         environmentally sound,           Asia
         regionally efficient, market-
         oriented energy sector


                                             3
 1.6     Reduction in regional              Described in    See Regional R4 for Central Asia
         economic and political             Regional R4
         tensions generated by              for Central
         transboundary environmental        Asia
         issues

As a final note, there are no environmental issues related to Kyrgyzstan initiatives.




                                                4
A. SO 1.2: INCREASED SOUNDNESS OF FISCAL POLICES AND FISCAL
MANAGEMENT PRACTICES

Overall progress in the strategic objective “Increased Soundness of Fiscal Polices and Fiscal
Management Practices” is on track and is expected to make rapid progress in 1998. In
December 1997, USAID signed a Memorandum of Understanding (MOU) with the
Government of Kyrgyzstan (GOK) that commits the GOK to a comprehensive set of specific
reform measures during 1998 in each of the major fiscal areas: tax policy, tax administration,
and budget/intergovernmental finance reforms. These measures include:

       -fundamental reorganization of the State Tax Inspectorate to allow more efficient
       distribution of work responsibilities;

       -rapid enactment of a comprehensive set of tax administration policies and procedures;

       -rapid development and implementation of a state-of-the-art automated system for tax
       administration;

       -establishment of modern program budgeting for all GOK Ministries and Agencies;

       -adoption of measures to increase the transparency of the budget and budget process;

       -revision of the tax code to make it more fully accord with international standards;

       -further restructuring of the current system of intergovernmental finance to allow for a
       more effective distribution of expenditure and revenue-raising authorities between the
       national government and local governments.

The GOK has thus indicated that it is strongly committed to rapid fiscal reforms in 1998 with
USAID assistance.

1. Performance analysis

SO 1.2 Increased soundness of fiscal policies and fiscal management practices. In 1997,
the indicator (General Government Deficit as a percent of GDP) has exceeded the target.
Through cuts in production and consumption subsidies and short-term cash management
measures, the Ministry of Finance has enhanced fiscal control, resulting in a further budget
deficit reduction (to approximately 4 percent of GDP in 1997 down from 6 percent in 1996).

This progress is evidence of the GOK's strong commitment to fiscal reform. Implementation
of the MOU described above should lead to further progress on this indicator in 1998 and
1999.

Progress rating: Better than expected

                                               5
IR 1.2.1 Central government shifted roles and responsibilities as primary fiscal manager
and regulator vis-a-vis local government, state owned enterprises and private sector.
While progress was made in 1997 relative to the previous year in this indicator, it was not
sufficient to meet the overly ambitious target. To date the GOK has taken the first critical
steps to stabilize the revenue base for local governments, through adoption of fixed sharing
rates for three major taxes -- corporate income tax, individual income tax, and domestic
excise taxes. The GOK has committed to taking further steps to rationalize fiscal
responsibilities across all levels of government, such as providing formula-based grants to
local governments, that should result in further substantial gains in this indicator in 1998 and
1999.

Progress rating: On track

IR 1.2.2 Government complied with international financial institutions' conditions. In
1997, the GOK was in compliance with conditions set forth by the IFIs. The GOK satisfied
all of the performance criteria set in its program with the IMF for 1997, and it is in
compliance with World Bank programs. Moreover, the GOK has maintained compliance with
IFI programs for a number of years, proving its commitment to economic reforms.

Progress rating: Solid performance

IR 1.2.3 Taxes are more fairly and broadly applied and enforced. The indicator is
generally on track although the actual number this year is lower than the target. Progress in
this area was less than expected largely because of amendments to the tax code that reduced
the revenue base in 1997. USAID advisors are currently addressing these changes in
proposed amendments to the tax code that when enacted should lead to continued progress on
this indicator.

Progress rating: Less than expected

IR 1.2.4 Improved budget management. The actual result in 1997 outperforms the target.
The positive results are largely the result of the GOK reducing salary arrears.

Progress rating: Exceeds expectations

IR 1.2.4.2 Government borrowing is less inflationary. While the actual result in 1997 is
better than in 1996, it still does not meet the extremely aggressive target that was set. This
indicator is largely an analog of IR 1.2.4.1 (volume of T-Bill trading), which actually
exceeded its target. Thus it appears that the target for this indicator was overly ambitious for
1997. Further strong progress on this indicator is expected to occur in 1998 as the volume of
T-Bill trading increases, thus allowing the GOK to finance a greater share of the fiscal deficit
using budgeted funds from the Ministry of Finance instead of credits from the National Bank.

Progress rating: On track

                                               6
2. Expected Progress Through FY 2000 And Management Actions

Fiscal activities will continue into FY 2000. The project’s efforts will shift to the
implementation of a modern tax administration system, which should enhance revenue
performance and provide greater equity for taxpayers. USAID advisers will also continue to
concentrate on training and assisting the State Tax Inspectorate in the further development
and utilization of a comprehensive, computerized tax processing system. Local staff at the
Office of Tax Analysis will be further trained in order to maintain new fiscal functions. In
the policy area, USAID-funded advisers will focus on the passage of national and local
budget legislation and continue to support intergovernmental finance reform, thus promoting
a more efficient and equitable allocation of expenditure and revenue-raising responsibilities
across levels of government, as well as greater local autonomy in the budget-setting process.
Finally, efforts to further improve the Government's government securities issuance and
management polices will continue through FY 2000. The most crucial long-range support
decisions to be made will be in the inter-governmental finance and tax administration areas.




                                              7
3. Performance Data Tables

 STRATEGIC OBJECTIVE 1.2: Increased Soundness of Fiscal Policies and Fiscal Management Practices
 APPROVED: 12/07/96       COUNTRY/ORGANIZATION: Kyrgyzstan/USAID/CAR
 RESULT NAME: SO 1.2. Increased soundness of fiscal policies and fiscal management practices
 INDICATOR: General government deficit as a percent of GDP
 UNIT OF MEASURE: Percent                                           YEAR        PLANNED       ACTUAL
                                                                    1995(B)                   12.5
 SOURCE: USAID Fiscal Reform Project, Kyrgyzstan
                                                                    1996        7.0           6.1
 INDICATOR DESCRIPTION: Expenditures less revenues as a             1997        5.0           4.1
 percent of GDP                                                     1998        4.0
                                                                    1999        3.0
 COMMENTS: Good results obtained here. Kyrgyzstan is clearly
 making excellent progress in reducing its fiscal deficit.          2000        2.5
                                                                    2001(T)     2.0




 STRATEGIC OBJECTIVE 1.2: Increased Soundness of Fiscal Policies and Fiscal Management Practices
 APPROVED: 12/07/96       COUNTRY/ORGANIZATION: Kyrgyzstan/USAID/CAR
 RESULT NAME: IR 1.2.1. Central government shifted roles and responsibilities as primary fiscal manager and
 regulator vis-a-vis local government, state owned enterprises and private sector.
 INDICATOR: Decentralization Ratio
 UNIT OF MEASURE: Percent                                           YEAR        PLANNED       ACTUAL
                                                                    1995(B)                   41.5
 SOURCE: USAID Fiscal Reform Project, Kyrgyzstan
                                                                    1996        41.0          36.0
 INDICATOR DESCRIPTION: Local government revenues as a              1997        41.5          36.5
 percent of total government revenues                               1998        42.0
                                                                    1999        43.0
 COMMENTS: Improved decentralization ratio.
                                                                    2000        44.0
                                                                    2001(T)     45.0




                                                     8
STRATEGIC OBJECTIVE 1.2: Increased Soundness of Fiscal Policies and Fiscal Management Practices
APPROVED: 12/07/96       COUNTRY/ORGANIZATION: Kyrgyzstan/USAID/CAR
RESULT NAME: IR 1.2.2. Government of Kyrgyzstan complied with the International Financial Institution's
conditions.
INDICATOR: Compliance
UNIT OF MEASURE: Yes/No/Partial                                     YEAR       PLANNED       ACTUAL
                                                                    1995(B)                  Y
SOURCE: USAID Fiscal Reform Project, Kyrgyzstan
                                                                    1996       Y             Y
INDICATOR DESCRIPTION: Government of Kyrgyzstan adheres             1997       Y             Y
to conditions set forth by the IFIs for additional assistance.      1998       Y
                                                                    1999       Y
COMMENTS: The GOK was in compliance with conditions set forth
by the IFIs.                                                        2000       Y
                                                                    2001(T)    Y




STRATEGIC OBJECTIVE 1.2: Increased Soundness of Fiscal Policies and Fiscal Management Practices
APPROVED: 12/07/96       COUNTRY/ORGANIZATION: Kyrgyzstan/USAID/CAR
RESULT NAME: IR 1.2.3 Taxes are more fairly and broadly applied and enforced
INDICATOR: Tax compliance rate
UNIT OF MEASURE: Percent                                            YEAR       PLANNED       ACTUAL
                                                                    1995(B)                  13.6
SOURCE: USAID Fiscal Reform Project, Kyrgyzstan
                                                                    1996       15.0          14.5
INDICATOR DESCRIPTION: Tax revenues as a percent of GDP             1997       16.0          12.2
                                                                    1998       17.0
COMMENTS: In 1997, new amendments to the Tax Code had
come into effect which narrowed the tax base of VAT.                1999       18.0
                                                                    2000       19.0
                                                                    2001(T)    20.0




                                                    9
STRATEGIC OBJECTIVE 1.2: Increased Soundness of Fiscal Policies and Fiscal Management Practices
APPROVED: 12/07/96       COUNTRY/ORGANIZATION: Kyrgyzstan/USAID/CAR
RESULT NAME: IR 1.2.4. Improved budget management
INDICATOR: Fiscal arrears as a percent of GDP
UNIT OF MEASURE: Percent                                                YEAR       PLANNED   ACTUAL
                                                                        1995(B)              0.98
SOURCE: USAID Fiscal Reform Project, Kyrgyzstan
                                                                        1996       0.7       0.49
INDICATOR DESCRIPTION: General fiscal deficit (accrued basis)           1997       0.4       0.3
less general fiscal deficit (cash basis) as a percent of GDP            1998       0.3
                                                                        1999       0.2
COMMENTS: The actual result in 1997 outperforms expectations.
                                                                        2000       0.1
                                                                        2001(T)    0.09



STRATEGIC OBJECTIVE 1.2: Increased Soundness of Fiscal Policies and Fiscal Management Practices
APPROVED: 12/07/96       COUNTRY/ORGANIZATION: Kyrgyzstan/USAID/CAR
RESULT NAME: IR 1.2.4.2 Government borrowing less inflationary
INDICATOR: National Bank of Kyrgyzstan (NBK) share in deficit financing
UNIT OF MEASURE: Percent                                                YEAR       PLANNED   ACTUAL
                                                                        1995                 46.5
SOURCE: USAID Fiscal Reform Project, Kyrgyzstan
                                                                        1996       45.0      41.7
INDICATOR DESCRIPTION: Share of NBKR credit to the
                                                                        1997       30.0      39.5
Government as a percentage of total deficit financing
                                                                        1998       20.0
COMMENTS: While the actual result in 1997 is better than in
                                                                        1999       10.0
1996, it still does not meet the extremely aggressive target that
was set. This indicator is largely an analog of IR 1.2.4.1 (volume of   2000       9.0
T-Bill trading), which actually exceeded its target. Thus it appears
that the target for this indicator was overly ambitious for 1997.       2001 (T)   8.0




                                                       10
B. SO 1.3: ACCELERATED DEVELOPMENT AND GROWTH OF PRIVATE
ENTERPRISES

No significant changes have taken place in the development context of Strategic Objective
1.3. “Accelerated Development and Growth of Private Enterprises.”

1.   Performance Analysis

SO 1.3 Accelerated development and growth of private enterprises. In accordance with
all the performance indicators provided, the overall achievement of Strategic Objective 1.3 is
meeting or exceeding expectations. The specific objectives described below demonstrate
significant progress in the areas of legal and regulatory reform, including in the crucial area
of WTO accession, commercial law training of legal and administrative personnel, and
promotion of human resources able to function in a market economy.

Progress rating: On track

IR 1.3.1 Improved operating environment for private sector growth. This indicator
shows a slight decrease in private sector capital investment as a percentage of total
investment. The indicator was influenced by two main factors: 1) an intensified public sector
investment program in 1997 (as seen for example in the new road construction between Osh
and Bishkek) and 2) the fact that the extraordinary KUMTOR gold mine investment program
(Kumtor production alone represented approximately 20% of Kyrgyz GDP) completed its
capital investment program in 1996. Given the continued strong private-sector orientation of
Kyrgyzstan's economic reforms, further gains in this indicator are expected in the coming
years.

Progress rating: As expected

IR 1.3.1.1 Improved policies, laws and regulations in place to ensure competition and
allow for easy market entry and exit. The project exceeded its target of assisting in the
drafting and implementation of legislation and policies designed to improve the investment
climate and open competition in the Kyrgyz Republic. The most significant among these
included pro-market amendments to the Foreign Investment Law, significant changes to the
Bankruptcy Law (including the elevation of the status of secured creditors), adoption of the
Law on Pledge, development of a special part of the Civil Code, company and business
partnership law, procurement legislation, amendments to customs legislation, and other key
regulatory reforms. In addition, the Project has fostered a government policy of open
competition and free trade as reflected in the Kyrgyz Republic's advanced program on WTO
accession. In fact Kyrgyzstan is engaged in very intensive multilateral and bilateral
negotiations with the Geneva Working Group and WTO accession in 1998 is a very realistic
possibility. In addition USAID has accelerated its technical and training support program in
the business accounting area. In 1997 Kyrgyzstan joined Kazakhstan as the only NIS
countries to officially adopt international accounting standards for the corporate sector. The

                                               11
standards became effective in January 1998, and USAID is already carrying out conversion
support activities in 60 enterprises; having already provided training to over 260 accounting
specialists in training institutions, audit and accounting firms, and enterprises undergoing
conversion. Finally, the CAAEF continues its financial investment and lending development.
As of late 1997, a total of 4 equity investments for $3.7 million had been approved ($2.5
million actually disbursed); and 24 loans for approx. $1.05 million approved ($616,000
disbursed). The total volume of equity and loan investments in Kyrgyzstan has been
surprisingly small, in light of the favorable macro stabilization and investment climate relative
to many other NIS countries.

In the microenterprise area, USAID is supporting the development of a vibrant micro-lending
market through FINCA in Kyrgyzstan. FINCA is currently administering a $6.2 million grant
from USAID covering the 1994-98 period. In December 14, 1997 a two-year, no-cost
extension to the Grant was granted, with a new expiration date of August 2000. Through
December 1997, the microlending program had provided over $2.3 million in loans to 7,263
recipients. In addition, the CAAEF plans to replicate its current microlending program in
Kazakhstan (operated through a grant to Mercy Corp.) in Kyrgyzstan during the 1998-99
period.

Progress rating: Better than expected

IR 1.3.1.2 Courts and administrative agencies strengthened to enforce policies, laws and
regulations. One of USAID's more successful programs in the Kyrgyz Republic has been its
legal and administrative training regime, focusing primarily on justices, attorneys, customs
officials and other administrative personnel. The overall targets were exceeded; progress was
significant in this area due to the heavy emphasis of the Project on the training of (a) judges
and lawyers on a wide variety of commercial law issues, (b) officials from the state property
committee on bankruptcy and liquidation procedures, and c) customs officials regarding
effective customs procedures and the latest customs legislation and regulations. The
exceptional number of judicial and legal personnel trained by USAID reflected the enthusiasm
of Kyrgyz participants for training which was narrowly focussed to practical commercial law
adjudication needs. The training itself was also quite effective because of heavy participation
from, and coordination with, other USAID contractors and experts.

Progress rating: As expected

IR 1.3.2 Human resources improved to function in a market economy. The project far
exceeded its human resource targets by conducting training on a wide variety of individuals
and entrepreneurs. Efforts ranged from training foreign and domestic business people
regarding critical changes or developments in the law, monthly roundtables regarding industry
specific topics, training Kyrgyz individuals on the practice of bankruptcy and liquidation of
enterprises, training commercial bank managers on western commercial banking standards and
operations, training numerous individuals regarding financial analysis, accounting and due
diligence techniques, etc. The Project exceeded the target primarily because everyday activity

                                               12
required constant interaction with individuals, either in consultation, meetings or training
sessions.

Progress rating: As expected

2. Expected Progress Through FY 2000 And Management Actions

The Project is generally on track to meet all of its objectives through FY 2000. Within that
time frame, the Project expects to complete essentially all tasks included in SO 1.3, including
commercial law reform, trade and investment reform and accession of Kyrgyz Republic to the
WTO. USAID/CAR sees its support effort in the WTO accession area continuing through
FY2000; for purposes of supporting accession efforts through their final stages and supporting
the full implementation of appropriate WTO-related regulatory reforms. Actual accession is
projected for 1998. Broad support in the commercial law reform area will continue also to
focus on the topic where progress is most urgently required now, i.e., in the establishment of
a legal/regulatory infrastructure (including a transparent and professional administrative law
regime) which will build investor confidence in the legitimacy and stability of the investment
climate in Kyrgyzstan. USAID/CAR will support the GOK's attempt to fully develop and
establish a commercial law framework which effectively promotes cost-effective business
formation and operation. Training efforts will be more and more tightly concentrated on
practical enforcement issues related to adjudication of disputes involving market agents. By
this time, Kyrgyzstan will have a full body of legislative and regulatory norms in place to
effectively support the operation of a market economy. It will also have in place a judiciary
infrastructure which has significantly improved the quality of protection (including the speed
of jurisprudence) afforded to market participants in exercising property and commercial
transactions rights; and a network of attorneys which understand and can effectively pursue
adjudication of those rights. It is assumed that by the year 2000 both the progress achieved
in these areas and the availability of alternative (e.g. World Bank) sources of financial support
will permit USAID/CAR to phase out support in this area.




                                               13
3. Performance Data Tables

 STRATEGIC OBJECTIVE: 1.3          Accelerated development and growth of private enterprises.
 APPROVED: 7/12/1996                COUNTRY/ORGANIZATION: Kyrgyzstan/USAID/CAR
 RESULT NAME: Accelerated development and growth of private enterprises.
 INDICATOR: Increase in private sector GDP market shares.
 UNIT OF MEASURE: Percent                                        YEAR           PLANNED         ACTUAL

 SOURCE: Ministry of Finance                                     1995             -              73.2

                                                                 1996             75.0           78.3
 INDICATOR DESCRIPTION: Share of GDP generated by
 private enterprises.
                                                                 1997             80.0           78.2

 COMMENTS: This indicator is explained by the fact that          1998             85.0
 privatization is suspended. The Government is delaying
 the privatization of some of the largest industrial             1999             87.0
 enterprises, and it is suspended for the nine largest
 enterprises, including the largest in the energy sector.        2000             90.0

                                                                 2001             95.0




 STRATEGIC OBJECTIVE: 1.3 Accelerated development and growth of private enterprises.
 APPROVED: 7/12/1996       COUNTRY/ORGANIZATION: Kyrgyzstan/USAID/CAR
 RESULT NAME: 1.3.1 Improved operating environment for private sector growth.
 INDICATOR: Increase in private sector capital investment.
 UNIT OF MEASURE: Percent                                        YEAR           PLANNED         ACTUAL

 SOURCE: Ministry of Finance                                     1995             -             78.3

                                                                 1996             75.0          73.3
 INDICATOR DESCRIPTION: Percent of total capital
 investment in the private sector.
                                                                 1997             75.0          69.0

 COMMENTS: The public sector investment program has              1998             80.0
 been intensified in 1997, explaining the decline shown by
 the private sector percentage in the indicator. An additional   1999             82.0
 major cause of the decline of the percentage in private
 investment is due to the completion by the (private joint
                                                                 2000             85.0
 venture) KUMTOR gold mine of its major investment
 program at the beginning of last year.
                                                                 2001             90.0




                                                         14
STRATEGIC OBJECTIVE: 1.3          Accelerated development and growth of private enterprises.
APPROVED: 7/12/1996                COUNTRY/ORGANIZATION: Kyrgyzstan/USAID/CAR
RESULT NAME: 1.3.1.1 Improved policies, laws and regulations in place to ensure competition and allow for
easy market entry and exit.
INDICATOR: Critical policies, laws and regulations that are consistent with international standards are
published.
UNIT OF MEASURE:                                                  YEAR          PLANNED           ACTUAL
1) Number of policies, laws and regulations
2) Number of major legislative initiatives, treaty accessions
                                                                  1995          0.00               0.00
and significant policy determinations

                                                                  1996          1) 49             1) 50
SOURCE: USAID Trade and Investment and Commercial
                                                                                2) 6              2) 9
Law Projects' reports.

INDICATOR DESCRIPTION: Number of policies, laws,                  1997          1) 35             1) 75
regulations published with drafting and implementation                          2) 4              2) 11
assistance provided by USAID.                                     1998          1) 25
                                                                                2) 4
COMMENTS: The USAID Commercial law project easily
                                                                  1999          1) 15
exceeded its target of legislative acts on which USAID
                                                                                2) 3
assisted. Primary among these include the Bankruptcy
Code, the Foreign Investment Law, the Labor Code, Civil           2000          -
Code, Part III (not yet adopted) and others.
                                                                  2001          -



STRATEGIC OBJECTIVE: 1.3 Accelerated development and growth of private enterprises.
APPROVED: 07/12/1996      COUNTRY/ORGANIZATION: Kyrgyzstan/ USAID/CAR
RESULT NAME: 1.3.1.2 Courts and administrative agencies strengthened to enforce policies, laws and
regulations.
INDICATOR: Number of legal positions filled with personnel trained by USAID.
UNIT OF MEASURE:                                                         YEAR       PLANNED          ACTUAL
1) Number of key judicial positions filled with USAID trained
professionals.                                                           1995           0.00         0.00
2) Number of key legal and administrative positions filled with
USAID trained professionals.
                                                                         1996           1) 90        1) 123
                                                                                        2) 270       2) 355
SOURCE: USAID Commercial Law, Trade and Investment and
Commercial Law Projects' reports.                                        1997           1) 100       1) 291
                                                                                        2) 400       2) 413

INDICATOR DESCRIPTION: Number of key legal and                           1998           1) 125
administrative positions filled USAID trained professionals.                            2) 400
                                                                         1999           1) 90
COMMENTS: Through the USAID Commercial Law Training                                     2) 200
program and other training efforts from other USAID contractors,         2000           -
USAID was able to exceed the planned number of administrative
and legal personnel to be trained in commercial law reform topics.       2001           -




                                                        15
STRATEGIC OBJECTIVE: 1.3 Accelerated development and growth of private enterprises.
APPROVED: 07/12/1996      COUNTRY/ORGANIZATION: Kyrgyzstan/USAID/CAR
RESULT NAME: IR 1.3.2 Human resources improved to function in a market economy.
INDICATOR: Number of people trained.
UNIT OF MEASURE: Number                                     YEAR        PLANNED       ACTUAL

SOURCE: USAID Commercial Law Training and Trade             1995          -            0.00
and Investment Projects' reports.
                                                            1996          250          780

INDICATOR DESCRIPTION: Number of people trained             1997          300          311
through seminars, round tables or one -on-one encounters.
                                                            1998          500
COMMENTS: The result includes people trained at the
Ministry of Finance (formal and on-the-job), Ministry of    1999          300
Trade and Industry, Patent Office, Standards Committee,
Customs Committee, Procurement Department, Ministry of      2000          200
Justice, Antimonopoly Committee, Parliamentarians.
                                                            2001          100




                                                    16
C. SO 1.4: A MORE COMPETITIVE AND MARKET-RESPONSIVE PRIVATE
FINANCIAL SECTOR

1. Performance Analysis

SO 1.4 A more competitive and market-responsive private financial sector. Overall
financial sector reform performance continued to be strong. The National Bank continued to
implement flexible and stable monetary management and financial oversight policies; as
reflected in positive real interest rates on rediscount funds and strong inflation performance
for the year (annual 1997 inflation was just under 15 percent). The financial solvency status
of most commercial banks is gradually improving. Bank deposits as a percent of GDP
improved significantly in 1997, meeting the planned level. Also funds invested by
institutional investors, when measured as percent of GDP, was also somewhat lower than
expected (0.3 percent instead of 0.4 percent). Public confidence in the integrity and stability
of the banking system should improve as stable monetary policies continue to be implemented
and financial performance requirements for banks are tightened further.

Progress rating: On track

IR 1.4.1 Governmental regulatory agencies supervise, administer and enforce legislation.
In the Republic of Kyrgyzstan the regulatory readiness of the National Bank is exemplary.
The Chairman of the National Bank is a progressive reformer who has brought to action
much of the bank regulatory advice USAID has provided him. Not only have the reforms
been agreed upon, but tremendous operational effort has been expended by the National Bank
to adopt and implement these broad sweeping banking reforms. Moreover, conversion to
international accounting standards has been fully implemented in half of all commercial
banking institutions. The National Security Commission (NSC) has adopted many of the
reforms USAID has advised, and the NSC is endeavoring to ensure their full implementation.
The regulatory readiness of the National Securities Commission can be characterized as
"partial", because adopted reforms are not fully implemented.

Progress rating: Better than expected.

IR 1.4.2 More forms of financial intermediation are institutionalized and effectively
supply the private sector on a competitive basis. Financial services including demand
deposits, time deposits, electronic fund transfers, self-liquidating accounts, letters of credit,
custodial services, securities clearance and settlement, life insurance, etc., are now being
provided in Kyrgyzstan.

Progress rating: Better than expected

IR 1.4.1.2 Regulatory framework and reporting systems are broadly applied to
effectively screen out deficient institutions. In 1997, the percent of banks meeting capital
adequacy requirements exceeded its target for that year. This increase was a result of the

                                                 17
aggressive program by the National Bank to close insolvent banks.

Progress rating: Better than expected

2. Expected Progress Through FY 2000 And Management Actions

In 1998, USAID will continue to support further consolidation of banking sector institutions
and modernization of their accounting and other key operating practices. In addition,
USAID/CAR will envisage continuing its comprehensive support of the securities market
development process in this country. This will include further support on the regulatory
reform side in addition to further technical/organizational support to promote the development
of key securities market intermediary institutions (including the development of OTC market).
Moreover, additional efforts will be put in establishment of the necessary legal framework
which will define the parameters of operation for each sector participant, the reporting
relationships between private firms and their regulatory agencies, and the working structure of
inter-related service providers.




                                              18
3. Performance Data Tables

 STRATEGIC OBJECTIVE 1.4:         A More Competitive and Market Responsive Private Financial Sector
 APPROVED: 07/12/1996              COUNTRY/ORGANIZATION: Kyrgyzstan/USAID/CAR
 RESULT NAME: A more competitive and market responsive private financial sector
 INDICATOR: Bank deposits as percent of GDP
 UNIT OF MEASURE: percent                                               YEAR      PLANNE     ACTUAL
                                                                                  D
 SOURCE: National Bank of Kyrgyzstan                                    1995(B)              4.0
                                                                        1996      5.0        4.2
 INDICATOR DESCRIPTION: Private sector deposits in
 Kyrgyzstan's banking system as percent of GDP                          1997      6.0        5.9
                                                                        1998      7.0
 COMMENTS: Target was met in 1997.
                                                                        1999      9.0
                                                                        2000      15.0
                                                                        2001      20.0



 STRATEGIC OBJECTIVE 1.4: A More Competitive and Market Responsive Private Financial Sector
 APPROVED: 07/12/1996      COUNTRY/ORGANIZATION: Kyrgyzstan/USAID/CAR
 RESULT NAME: A More Competitive and Market Responsive Private Financial Sector.
 INDICATOR: Funds invested by institutional investors as percent of GDP
 UNIT OF MEASURE: percent                                               YEAR      PLANNED    ACTUAL

 SOURCE: National Securities Commission, Ministry of Social             1995(B)              N/A
 Protection.
                                                                        1996      0.2        0.27
 INDICATOR DESCRIPTION: Funds invested by institutional                 1997      0.4        0.3
 investors (Pension Funds, Investment Funds) as percent of GDP.
                                                                        1998      0.6
 COMMENTS: Privatization Investments Funds (PIFs) were the
 largest institutional investors in the market. In mid 1997 mass        1999      1.4
 privatization was completed and no larger-scale assets were made
 available to portfolio investors, so the percent of GDP held by PIFs   2000      2.0
 plaited.
                                                                        2001      5.0




                                                        19
STRATEGIC OBJECTIVE 1.4: A More Competitive and Market Responsive Private Financial Sector
APPROVED: 07/12/1996      COUNTRY/ORGANIZATION: Kyrgyzstan/USAID/CAR
RESULT NAME: Governmental regulatory agencies supervise, administer and enforce legislation
INDICATOR: Assessed regulatory capacity in place and functioning
UNIT OF MEASURE: Yes/No/Partial                                     YEAR      PLANNED    ACTUAL

                                                                    1995(B)              Y
SOURCE: National Bank of Kyrgyzstan
                                                                    1996      Y          Y
INDICATOR DESCRIPTION: USAID assessment of regulatory
readiness of National Bank                                          1997      Y          Y

COMMENTS: In the Republic of Kyrgyzstan the regulatory              1998      Y
readiness of the National Bank is exemplary. The Chairman of the
National Bank is a progressive reformer who has brought to action   1999      Y
much of the bank regulatory advice USAID has provided him. Not
                                                                    2000      Y
only have the reforms been agreed upon, but tremendous
operational effort has been expended by the National Bank to
                                                                    2001      Y
adopt and implement these broad sweeping banking reforms.




STRATEGIC OBJECTIVE 1.4: A More Competitive and Market Responsive Private Financial Sector
APPROVED: 07/12/1996      COUNTRY/ORGANIZATION: USAID/Kyrgyzstan
RESULT NAME: Governmental regulatory agencies supervise, administer and enforce legislation
INDICATOR: Assessed regulatory capacity in place and functioning
UNIT OF MEASURE: Yes/No/Partial                                     YEAR      PLANNED    ACTUAL
                                                                    1995(B)              N
SOURCE: National Securities Commission (NSC)
                                                                    1996      N          N
INDICATOR DESCRIPTION: USAID assessment of regulatory               1997      N          P
readiness of National Security Commission
                                                                    1998      P
COMMENTS: The NSC has adopted many of the reforms USAID             1999      P
has advised, and is continuing to adopt and implement additional
needed reforms.                                                     2000      P
                                                                    2001      Y




                                                     20
STRATEGIC OBJECTIVE 1.4:        A More Competitive and Market Responsive Private Financial Sector
APPROVED: 07/12/1996             COUNTRY/ORGANIZATION: Kyrgyzstan/USAID/CAR
RESULT NAME: More forms of financial intermediation are institutionalized and effectively supply the private
sector on a competitive basis.
INDICATOR: Increasing number of financial services available
UNIT OF MEASURE: number                                              YEAR        PLANNED        ACTUAL
                                                                     1996        12             20
SOURCE: National Bank of Kyrgyzstan, Ministry of Finance,
National Securities Commission                                       1997        16             22
                                                                     1998        18
INDICATOR DESCRIPTION: Number of distinct services available
                                                                     1999        20
COMMENTS: There are financial services in Kyrgyzstan such as         2000        23
demand deposits, time deposits, electronic fund transfers, self-
liquidating accounts, letters of credit, etc.                        2001        25




STRATEGIC OBJECTIVE 1.4:        A More Competitive and Market Responsive Private Financial Sector
APPROVED: 07/12/1996             COUNTRY/ORGANIZATION: KYRGYZSTAN/USAID/CAR
RESULT NAME: Regulatory framework and reporting systems are broadly applied effectively screen out
deficient institutions
INDICATOR: increasing percent of banks meeting capital adequacy requirements
UNIT OF MEASURE: percent                                             YEAR        PLANNED        ACTUAL
                                                                     1995(B)                    42
SOURCE: National Bank of Kyrgyzstan
                                                                     1996        55             60
INDICATOR DESCRIPTION: Percentage of all banks that meet             1997        65             85
capital adequacy requirements                                        1998        88
                                                                     1999        95
COMMENTS: Targets exceeded in 1997 following aggressive
program by the National Bank to close insolvent banks.               2000        97
                                                                     2001        98




                                                     21
D. SO 2.1: INCREASED, BETTER-INFORMED CITIZENS' PARTICIPATION IN
POLITICAL AND ECONOMIC DECISION-MAKING

There have been no significant changes in the broader development context over the past year
that would require a change in strategy. The strategy for increased, better-informed citizens’
participation in economic and political decision making in the Kyrgyz Republic combines
three areas of development: strengthening citizen participation through NGOs, increasing the
availability of information, and increasing accountability and responsiveness in Government
by developing and working with those Government officials interested in working with
citizens.

The underlying rationale for this approach in the Kyrgyz Republic is that the Government will
give NGOs the opportunity for development, but that these organizations lack the skills and
resources to develop sustainable organizations and that the Government will give NGOs the
opportunity for development. The Government is in fact doing such. For example, a religious
group (the Naryn Baptists), formerly denied registration, is now fully registered. Many other
groups engage in religious practices without difficulty. Hundreds of NGOs are in active
dialogue on these and other issues.

Development of an independent electronic media, previously slow, is now on target. Unlike
most of Central Asia, in the Kyrgyz Republic the printed press is often highly critical of
Government officials, particularly members of Parliament. However, the press is often
irresponsible and not always objective. Accordingly, many members of Parliament would like
to restrain the free press, but the President has not allowed this to happen. He recently vetoed
legislation that would have prohibited the media from reporting on on-going court cases,
stating that such would unjustifiably restrain free speech. On the down side, many journalists
have been put in jail for alleged slander and libel, but after much adverse publicity regarding
this, the President, in a major step forward for freedom of press in the Kyrgyz Republic,
recently stated in public that he supports de-criminalization of such offenses.

Most notable in the Kyrgyz Republic when compared to other Central Asian republics, the
Government genuinely appears to support transparency and accountability in Government. The
Parliament has become one of the most active in the former Soviet Union and now routinely
asserts its independence and initiative. New legislation has helped clarify the legal status of
citizen, businesses, and other organizations, and the number of open hearings, due largely to
USAID/CAR assistance, has increased ten-fold. The prospects for having genuinely contested
elections in 1999 are high, and the Central Election Commission's cooperation with
USAID/CAR has been exemplary. With significant USAID/CAR assistance, it is presently
revising the election law and recently sponsored the country's first nationally televised debates
for a parliamentary seat.

While the courts remain weak and relatively ineffective, the broader context in which they


                                               22
operate is positive. With USAID/CAR assistance, judges have taken significant steps towards
organizing themselves, improving their training and adopting ethical codes of conduct. The
political context for the democracy program, therefore, is positive, and democracy is taking
hold. The USAID/CAR democracy program is making maximum effort to further this process.


Based on concerns that performance indicators for SO 2.1 were not adequately reflecting
progress toward achieving the strategic objective, USAID/CAR significantly revised its SO
2.1 indicators at all levels. Since the indicators were revised late in 1997, we have not been
able to collect data for some of the new indicators, particularly those requiring the
procurement of public opinion surveys. USAID/CAR is confident that the revised set of
indicators provides a more accurate representation of USAID/CAR’s performance in the
democracy sector.

1. Performance Analysis

IR 2.1.1 Increased citizens' participation. USAID/CAR changed many of its indicators for
this Intermediate Result during FY97, in order to reflect the capabilities and relevant activities
of NGOs. It is therefore difficult to describe performance as judged against previous year
targets and indicators.

Kyrgyzstan boasts the most active NGO sector in Central Asia, with 234 NGOs contacting the
media regarding their work. That far exceeds both the FY96 total of 70 and the FY97 target
of 25. Only 27 NGOs reported contacts with government officials, which exceeded its target
of 15, but fell short of the 74 respondents from FY96. 30 percent of those contacts met a
positive response from government officials. 29 percent of NGOs have a community outreach
program.

These responses indicate a more active, sophisticated NGO sector, but lead the democracy
team to question why there is not more contact reported with government officials.
USAID/CAR is uncertain as to why the results for this indicator do not follow the trend
evident in related indicators; therefore, USAID/CAR is investigating possible reasons,
including faulty or incomplete data collection. The significant increase in NGOs reporting
media contacts may be due to the democracy team's increased emphasis on this area of NGO
development. Overall, the indicator accurately portray an increasingly enthusiastic NGO
sector.

Performance rating: Exceeds expectations

IR 2.1.2 Increased availability of information. USAID/CAR changed its indicators for this
Intermediate Result during FY97, in order to reflect the number of citizens who can access
independent news, rather than the number of independent television and radio stations. It is


                                               23
therefore difficult to describe performance in terms of previous year targets and indicators.

As noted in last year's R4, the democracy team changed the structure of its electronic media
assistance in Kyrgyzstan. In addition to seminars, USAID/CAR now provides residencies and
other forms of long-term and continual assistance to individual stations. 20 percent of major
cities in Kyrgyzstan receive daily non-governmental news broadcasts. There is a much greater
level of activity and quality of programming among the stations as compared to previous
years, and that is in direct correlation to increased efforts by the democracy team. The
stations have formed a strong media association, have passed an ethics code and are
participating in legislative efforts with the parliament.

On the down side, the stations appear to be broadcasting more information than news. This
may be in reaction to the newspapers, which publish sensationalism and take no responsibility
for what they print - and thus frequently have trouble with the law. There is currently more
freedom of the press in Bishkek than in the outlying regions, as the outlying regions are
under greater control of the local governments and people are less aware of their rights.

Progress rating: Meets expectations

IR 2.1.3 Increased transparency, responsiveness and accountability on the part of the
government. USAID/CAR's assistance in this area contributed to significant progress toward
achieving the IR. Demonstrating the parliament's realization of its accountability to citizens
and of the value of nongovernmental input, the number of parliamentary hearings and
committee meetings addressing legislation /policy issues that received nongovernmental input
increased dramatically from 2 in 1996 to 20 in 1997. A lower level result, more effective and
independent elected officials, which is measured by the number of major changes in draft
laws by legislatures or refusals to pass legislation, needs only more time at its present state to
institutionalize the practice in order for the result to be achieved and made irreversible. It has
become routine practice for the parliament to assert its independence and its legislative
initiative.

Another lower level result performance indicator that has nearly been achieved relates to the
development of relationships between deputies and their constituents. About 80% of
parliamentarians regularly conduct interviews in newspapers and on television and routinely
issue press releases. Some have appeared on television talk shows to discuss issues such as
ethics, and an increasing number of deputies conduct town hall-type meetings with
constituents and local media.

For the first time in the Kyrgyz Republic, parliamentary candidates confronted each other in a
nationally televised debate. Six candidates vying for one parliamentary seat in a by-election
in Osh oblast participated in the ninety minute debate broadcast on television and radio
throughout Kyrgyzstan. This "new style" of campaigning constituted a significant step toward


                                               24
increasing transparency and openness in the political process. Publicly televising the debates
raised citizen awareness and understanding that parliamentarians are accountable to their
constituents. The candidates noted that the event was a "real" example of democracy in action
and called for similar debates in future elections. The event was fully supported by the
election authorities in Bishkek and Osh, ensuring progression of USAID/CAR objectives in
electoral reforms in Kyrgyzstan.

Progress rating: Significantly above expectations


2. Expected Progress Through FY2000 And Management Actions

IR 2.1.1 Increased citizens' participation. The Democratic Transition Team took over
management of the NGO assistance program from the Social Transition Team during FY97.
The result has been a significant management change as well as focus of the program. While
this program previously assisted every NGO which made a request, the current program
focuses on democracy NGOs and NGOs which organize to make a difference in their
communities. The new target sectors are: Rule of Law, environment, NGOs that work on
women’s issues, business, media, human rights, trade union NGOs, consumer rights, civic
education NGOs, advocacy, elections, housing, and professional associations. USAID/CAR
expects to continue a high level of progress, but expects lower quantity indicators as a result
of narrowing its NGO clientele.

IR 2.1.2 Increased availability of information. USAID/CAR does not expect the number of
stations to increase in Kyrgyzstan, and the number may actually decrease as inefficiencies
lose out to economies of scale. The democracy team anticipates a greater degree of unity
among the television stations and continuing relative freedom of the press. The democracy
team also anticipates a slow improvement in the willingness to broadcast real news and
investigative reporting. Progress should be greater in Bishkek, with the outlying regions
following. The Government of Kyrgyzstan is likely to formalize the allocation of its
broadcast frequencies between now and FY2000. This brings a threat as Kyrgyz stations look
to the Kazakhstan example, and may be a cause of the stations' hesitance to broadcast hard
news. USAID/CAR is hopeful that the new frequency commission under the president will
be open and responsive to democratic principles and the stations' needs when it develops the
broadcast frequency allocation procedures.

IR 2.1.3 Increased transparency, responsiveness and accountability on the part of the
government. Though the constitution of Kyrgyzstan provides extensive powers to the
president, President Akaev has not curtailed the evolution of a truly independent parliament.
USAID/CAR expects the parliament to continue asserting itself and expects that parliamentary
independence will be thoroughly imbued and well on its way to being irreversible by 2000.
Parliamentary assistance will begin to shift its focus in 1998 toward building the technical


                                              25
capacity of the parliament to draft/initiate legislation and to ingraining in parliamentarians the
importance of constituent representation.

Building on the success of the televised election debates, USAID/CAR will expand its
assistance in the area of civic/voter education and technical election assistance, in preparation
for the parliamentary and presidential elections in 1999 and 2000. USAID/CAR, with the
cooperation of the Ministry of Education and the Central Election Commission (CEC), will
initiate a curriculum reform program to bring civic and voter education into the high schools
and universities, where such efforts will have nationwide impact on first-time voters in the
upcoming elections. In addition to curriculum reform, USAID/CAR will advance civic
education efforts through IFES's proposed regional NGO workshops aimed at promoting
election awareness among the citizens of Kazakhstan. The CEC's openness to technical
assistance has resulted in nearly all of IFES's recommendations being incorporated into a
fourth version of the CEC's draft electoral law, which will be submitted to the parliament
when the draft is finalized in 1998.




                                                26
3. Performance Data Tables

OBJECTIVE: 2.1 Increased, better-informed citizens' participation in political and economic decision-making
APPROVED:      10/1/97                          COUNTRY/ORGANIZATION: Kyrgyz Republic; USAID/CAR
RESULT NAME: SO 2.1.1 Increased, better-informed citizens' participation in political and economic decision making.
INDICATOR: Percent of population that consider NGOs to be either essential or necessary.
UNIT OF MEASURE: Using the question below, which IFES included in its          YEAR     PLANNED        ACTUAL
1996 Kyrgyz Republic poll.
                                                                               1995     NA             48*
Unit of measure: BRIF or other organization annual public opinion poll will
ask: How necessary are such organizations - essential, necessary, not very     1996     NA             43*
necessary at all?
                                                                               1997     NA             **
SOURCE: Survey by the private polling company.
                                                                                1998    50
INDICATOR DESCRIPTION: Goal is that a high percent of the population
consider NGOs essential or necessary, indicating that NGOs are serving as
effective instruments of citizen involvement in political and economic decision 1999    55
- making.
                                                                                2000    60
COMMENTS:
*FY 95 and FY96 results are from a previous IFES survey.                       2001     65
**FY97 data on the questions above are not available because survey will
not be complete in time for R4 presentation.                                   2002     65




                                                       27
OBJECTIVE: 2.1 Increased, better-informed citizens' participation in political and economic decision-making
APPROVED:      10/1/97                            COUNTRY/ORGANIZATION: Kyrgyz Republic; USAID/CAR
RESULT NAME: SO 2.1.2 Increased, better-informed citizens' participation in political and economic decision making.
INDICATOR: Percent of citizens who demonstrate they are informed about government institutions and officials.
UNIT OF MEASURE: A list of basic information questions will be included in YEAR         PLANNED        ACTUAL
survey to determine what percentage of the population is made up of
informed citizens.                                                         1995         NA             NA

Unit of measure: BRIF or other organization's annual public opinion poll.
                                                                                1996    NA             40*
Standard list of 5 questions will be asked annually testing knowledge.

SOURCE: Survey by private polling company.                                      1997    NA             **

INDICATOR DESCRIPTION: Goal is to increase the number of positive               1998    45
responses, which will indicate that the news offered by independent news
media is creating better-informed citizens.                                     1999    50

COMMENTS:                                                                       2000    55
*FY96 results are from a previous IFES survey which asked generally about
citizens' knowledge about government institutions and officials.                2001    60
**FY97 data on the questions above are not available because survey will
not be complete in time for R4 presentation.                                    2002    65



OBJECTIVE: 2.1 Increased, better-informed citizens' participation in political and economic decision-making
APPROVED:      10/1/97                            COUNTRY/ORGANIZATION: Kyrgyz Republic; USAID/CAR
RESULT NAME: SO 2.1.3 Increased, better-informed citizens' participation in political and economic decision making.
INDICATOR: Ratio of number of contacts by NGOs on government decisions that have positive reception to total
number of such contacts.
UNIT OF MEASURE: Percent of sample of NGOs who report attempting to             YEAR    PLANNED        ACTUAL
influence government that indicate that officials contacted listened to their
positions and appeared interested in understanding their viewpoint, whether     1995    NA
or not policy was changed as a result. This indicator is a proxy for
acceptance by government of increased citizen/citizen group participation in
decision making.                                                                1996    NA

SOURCE: Counterpart data base.                                                  1997    NA             30%

INDICATOR DESCRIPTION: Percent of sample of NGOs who report                     1998    35
attempting to influence government that indicate that officials contacted
listened to their positions and appeared interested in understanding their
                                                                                1999    40
viewpoint, whether or not policy was changed as a result.

                                                                                2000    45
COMMENTS: New indicator.
                                                                                2001    50




                                                        28
OBJECTIVE: 2.1 Increased, better-informed citizens' participation in political and economic decision-making
APPROVED:      10/1/97    COUNTRY/ORGANIZATION: Kyrgyz Republic; USAID/CAR
RESULT NAME: SO 2.1.4 Increased, better-informed citizens' participation in political and economic decision making.
INDICATOR: Elections are held per international standards at the presidential, parliamentary, and local levels(reported
separately).
UNIT OF MEASURE: IFES and NDI will assess using 10 point scale.               YEAR         PLANNED        ACTUAL
Goal: Compliance with all standards.
                                                                                            par/           par/ loca/presl
                                                                                           loca/pres
SOURCE: IFES, NDI
                                                                              1995         NA/NA/NA       6.5 / - /5
INDICATOR DESCRIPTION: The international standards are defined by the
Copenhagen Document (Conference on the Human Dimension of the OSCE, 1996                   NA/NA/NA        NA/NA/NA
Copenhagen 1990. [Paragraphs 6,7 and 8]).
                                                                              1997         NA/NA/NA       7.5/ NA /NA
COMMENTS: New indicator. 1995 data is based on IFES technical
assessment reports. 1997 data is for parliamentary by-elections.              1998         8/NA/NA
                                                                              1999         8.5/8.5/NA
                                                                              2000         NA/NA/9
                                                                              2001         NA/NA/NA
                                                                              2002         NA/NA/NA



OBJECTIVE: 2.1 Increased, better-informed citizens' participation in political and economic
decision-making
APPROVED: 10/1/97 COUNTRY/ORGANIZATION:Kyrgyz Republic; USAID/CAR
RESULT NAME: IR 2.1.1.1 NGO participation in civil society strengthened.

INDICATOR: Increase in number of indigenous NGOs that seek to influence the government or get government support
or attention for their activities (advocacy).
UNIT OF MEASURE: Counterpart data base.                                       YEAR         PLANNED        ACTUAL

                                                                                           med./gov.off   med./gov.off
SOURCE: Counterpart
                                                                              1995         NA     NA      NA       NA
INDICATOR DESCRIPTION: Contacts with media or government officials
reported in grant/contract monitoring documents in response to the
                                                                              1996         10      10     70       74
questions:

1. Did you have any contacts with media organizations regarding NGOs          1997         25     15      NA       27*
work or issues during the past year?
                                                                              1998         50     30

2. Did you have any contacts with government officials regarding NGOs         1999         75     40
work or issues during the past year?
                                                                              2000         75     50

COMMENTS:Targets revised (see Performance Analysis).                          2001         75     50

                                                                              2002         75     50




                                                       29
OBJECTIVE: 2.1 Increased, better-informed citizens' participation in political and economic decision-making
APPROVED:      10/1/97      COUNTRY/ORGANIZATION: Kyrgyz Republic; USAID/CAR
RESULT NAME: IR 2.1.1.2 NGO participation in civil society strengthened.
INDICATOR: Percent of NGOs that demonstrate their improved skills in advocacy, community organizing, government
relations, and public outreach/education.
UNIT OF MEASURE: Counterpart data base.                                        YEAR   PLANNED       ACTUAL

SOURCE: Counterpart                                                            1995   NA

                                                                               1996   NA
INDICATOR DESCRIPTION: Increased media exposure by NGOs
highlighting their role in a democratic society and their achievements in
providing services to the community and advocating on their behalf; joint      1997   NA            30%
NGO/government seminars and public forums on the need for an effective
legal structure to protect the rights of the NGO sector and public interest;   1998   35%
growth of NGO coalitions and advocacy groups actively engaged in
influencing public policy governing the NGO sector; increased number of        1999   45%
community advisory councils; professional associations, and coalitions
seeking to influence government policies and community services.               2000   60%

                                                                               2001   75%
COMMENTS: New indicator
                                                                               2002   75%



OBJECTIVE: 2.1 Increased, better-informed citizens' participation in political and economic decision-making
APPROVED:      10/1/97                            COUNTRY/ORGANIZATION: Kyrgyz Republic; USAID/CAR
RESULT NAME: IR 2.1.1.3 NGO participation in civil society strengthened.
INDICATOR: Increased number of sector coalitions.

UNIT OF MEASURE: Counterpart data base.                                        YEAR   PLANNED       ACTUAL
                                                                               1995   0             0
SOURCE: Counterpart                                                            1996   0             0

INDICATOR DESCRIPTION: Groups of NGOs which are formed around an
issue, and have met to discuss this issue.                                     1997   2             3
                                                                               1998   4
COMMENTS: Increased targets for FY98 through FY2002, due to high
                                                                               1999   8
performance.
                                                                               2000   10
                                                                               2001   15
                                                                               2002   20




                                                        30
OBJECTIVE: 2.1 Increased, better-informed citizens' participation in political and economic decision-making
APPROVED:      10/1/97                            COUNTRY/ORGANIZATION: Kyrgyz Republic; USAID/CAR
RESULT NAME: IR 2.1.1.4 NGO participation in civil society strengthened.

INDICATOR: Improved NGO sustainability.

UNIT OF MEASURE: The democracy roundtable will calculate the NGO                 YEAR       PLANNED   ACTUAL
sustainability index (per ENI model) every twelve months.                        1995       NA

SOURCE: SO 2.1 Extended team                                                     1996       NA

INDICATOR DESCRIPTION: The democracy roundtable will use the ENI                 1997       NA        3.84
NGO sustainability index to assess the sustainability of the NGO sector.
                                                                                 1998       3.5

COMMENTS:                                                                        1999       3.2
New indicator. 1 is best, 7 is worst.
                                                                                 2000       3.0
                                                                                 2001       2
                                                                                 2002       2



OBJECTIVE: 2.1 Increased, better-informed citizens' participation in political and economic decision-making
APPROVED:      10/1/97                            COUNTRY/ORGANIZATION: Kyrgyz Republic; USAID/CAR
RESULT NAME: IR 2.1.2.1 Information on domestic economic policies and
politics available
INDICATOR: Public availability of draft laws prior to passage by government.
Long term target: Law requiring publication of draft laws prior to passage by government.
UNIT OF MEASURE: Performance will be the total points measured against           YEAR       PLANNED   ACTUAL
four point criteria.
                                                                                 1995       NA        1
SOURCE: ABA, NDI
                                                                                 1996       NA        1
INDICATOR DESCRIPTION:

1) Passed laws are published.                                                    1997       NA        1.5


2) Practice of making draft law, that has been submitted to Parliament for       1998       2
review, available after the first reading in a public place for review is common
practice.                                                                        1999       2.5

3) Law requires the public availability of draft laws prior to second reading.   2000       3

4) Schedule of Parliamentary meetings and hearings is publicly available.        2001       3.5

COMMENTS: New Indicator.
                                                                                 2002       4




                                                         31
OBJECTIVE: 2.1 Increased, better-informed citizens' participation in political and economic decision-making
APPROVED:      10/1/97                            COUNTRY/ORGANIZATION: Kyrgyz Republic; USAID/CAR
RESULT NAME: IR 2.1.2.2 Information on domestic economic policies and politics available
INDICATOR: Increased number of viewers watching independent TV news.
UNIT OF MEASURE: Rating will be provided by independent rating              YEAR      PLANNED     ACTUAL
service(BRIF).
                                                                            1995      NA

SOURCE: Ratings survey by the private polling company.                      1996      NA

INDICATOR DESCRIPTION: Interviews with a sample of citizens in Naryn,       1997      NA
Bishkek, Jalal-Abad, Kara-Kol, Osh will produce ratings of TV viewership.
Goals: Increased viewership on independent channels.                        1998
                                                                          1999
COMMENTS: New indicator. Information will not be available in time for R4
presentation.                                                             2000
                                                                            2001
                                                                            2002



OBJECTIVE: 2.1 Increased, better-informed citizens' participation in political and economic decision-making
APPROVED:      10/1/97                            COUNTRY/ORGANIZATION:Kyrgyz Republic; USAID/CAR
RESULT NAME: IR 2.1.2.3 Information on domestic economic policies and politics available
INDICATOR: Average daily independent electronic media local TV news programming.
UNIT OF MEASURE: Unit: Average daily number of minutes from Internews       YEAR      PLANNED     ACTUAL
data.
                                                                            1995      NA          3
SOURCE: Internews                                                           1996      7           5

INDICATOR DESCRIPTION: Average daily minutes of independent local
news programming from sample of television and radio stations.              1997      10          4.5

                                                                            1998      6
Stations: Ayan(Naryn),NBT(Bishkek), Pyramida(Bishkek), Mahabat Jhildzy
(Jalal-Abad),EMTV(Kara-Kol), Osh TV(Osh).                                   1999      8

                                                                            2000      10
COMMENTS: Decreased targets for FY98 through FY 2000 due to low
performance.                                                                2001      12

                                                                            2002      15




                                                     32
OBJECTIVE: 2.1 Increased, better-informed citizens' participation in political and economic decision-making
APPROVED:      10/1/97                            COUNTRY/ORGANIZATION: Kyrgyz Republic; USAID/CAR
RESULT NAME: IR 2.1.2.4 Information on domestic economic policies and politics available
INDICATOR: Increased willingness of in-dependent media to report on democratic processes, public policy issues.
UNIT OF MEASURE: Questionnaire                                                 YEAR     PLANNED        ACTUAL
                                                                               1995     NA
SOURCE: Questionnaire
                                                                               1996     NA
INDICATOR DESCRIPTION: A selected group of Peace Corps volunteers              1997     NA
will be given a questionnaire, prepared by Internews, which they will use to
evaluate the objectivity of reporting by independent media.                    1998
                                                                          1999
COMMENTS: New indicator. Questionnaire data will not be available at time
of R4 presentation.                                                       2000
                                                                          2001
                                                                               2002




                                                       33
OBJECTIVE: 2.1 Increased, better-informed citizens' participation in political and economic decision-making
APPROVED:      10/1/97                            COUNTRY/ORGANIZATION: Kyrgyz Republic; USAID/CAR
RESULT NAME: IR 2.1.3.1 Increased responsiveness and accountability of Government to citizens/citizens
organizations.
INDICATOR: Improved election laws and procedures.

UNIT OF MEASURE: Unit: On a scale of seven possible attributes, how              YEAR   PLANNED     ACTUAL
many are present in the law.

SOURCE: IFES                                                                     1995   NA          3

INDICATOR DESCRIPTION: Reform of existing laws and adoption of
comprehensive codes:                                                             1996   NA          3

1) Establish independent and permanent election administration structure;
                                                                                 1997   NA          3
2) Facilitate the participation of political parties in the many phases of the
electoral process;
                                                                                 1998   5
3) Establish legal basis for participation of domestic monitors;

4) Establish transparent and fair procedures for candidate registration;         1999   6


5) Establish methods to address complaints and adjudicate grievances;
                                                                                 2000   6

6) Provide for adequate public and or private campaign finance
                                                                                 2001
7) Establish ethical standards for candidates and mechanisms for addressing
violations.
                                                                                 2002
COMMENTS:
New indicator


OBJECTIVE: 2.1 Increased, better-informed citizens' participation in political and economic decision-making
APPROVED:      10/1/97                            COUNTRY/ORGANIZATION: Kyrgyz Republic; USAID/CAR
RESULT NAME: IR 2.1.3.2 Increased responsiveness and accountability of Government to citizens/citizens
organizations.
INDICATOR: Increase in citizen understanding of election procedures and rights.




                                                          34
UNIT OF MEASURE: Unit of measure: BRIF or other organization public            YEAR   PLANNED   ACTUAL
opinion survey.

SOURCE: Private survey firm.

INDICATOR DESCRIPTION: Public opinion survey will determine percent
of population that is aware of basic election procedures and rights.
1. Which of the following organizations have the rights to nominate
candidates for the Jogorku Kenesh?
a. President
b. Political Parties
c. Akim
d. Public Associations
e. Self - nomination
f. Labor collectives
g. Election commissions
(more than one choice allowed)
2. Does the election law allow you to cast a ballot in place of your spouse?
    * Yes
    * No
3. Do citizens of the Kyrgyz Republic vote directly for members of the
Legislative Assembly?
    * Yes
    * No
4. Candidates are elected to the Jogorku Kenesh on the basis of :
   * which ever candidate receives the most votes
     * which ever candidate receives 50% of the votes
     * proportional representation

COMMENTS:
*FY95 and FY96 results are from a previous IFES survey which asked
generally about citizens' knowledge of electoral procedures.
**FY97 data on the questions above are not available because survey will
not be complete in time for R4 presentation




                                                                               1995   NA        33*




                                                                               1996   NA        38*




                                                                               1997   NA        **




                                                                               1998   45




                                                                               1999   50
                                                       35

                                                                               2000   55
OBJECTIVE: 2.1 Increased, better-informed citizens' participation in political and economic decision-making
APPROVED:      10/1/97                            COUNTRY/ORGANIZATION: Kyrgyz Republic; USAID/CAR
RESULT NAME: IR 2.1.3.3 Increased responsiveness and accountability of Government to citizens/citizens
organizations.
INDICATOR: Number of parliamentary hearings and committee meetings addressing legislative/policy issues that receive
non-governmental input on the national level.
UNIT OF MEASURE: ABA and NDI report                                         YEAR        PLANNED        ACTUAL
                                                                            1995        NA             0
SOURCE: NDI, ABA.                                                           1996        NA             2

INDICATOR DESCRIPTION: ABA and NDI report on number of
parliamentary hearings.                                                     1997        5              20
                                                                            1998        25
COMMENTS:
                                                                            1999        30
Due to high performance, the targets for 1998 on have been revised.
                                                                            2000        45
                                                                            2001        45
                                                                            2002        45



OBJECTIVE: 2.1 Increased, better-informed citizens' participation in political and economic decision-
making
APPROVED:      10/1/97                            COUNTRY/ORGANIZATION: Kyrgyz Republic;
USAID/CAR
RESULT NAME: LAIR 2.1.3.1.4 Number of deputies using media to reach constituents.
INDICATOR: The use of news stories, press releases, paid advertisements, television and press interviews, and
non-interview television programs by deputies to inform constituents about an issue or legislative action.
UNIT OF MEASURE: ABA and NDI reports.                                       YEAR        PLANNED        ACTU
                                                                                                       AL
SOURCE: ABA, NDI                                                            1995        NA
                                                                            1996        NA
INDICATOR DESCRIPTION:
                                                                            1997        NA             80
COMMENTS: New Indicator.                                                    1998        *
*Due to the extremely high performance (see Performance Analysis), the
                                                                            1999
indicator will be revised.
                                                                            2000
                                                                            2001
                                                                            2002




                                                     36
OBJECTIVE: 2.1 Increased, better-informed citizens' participation in political and economic decision-
making
APPROVED:      10/1/97       COUNTRY/ORGANIZATION: Kyrgyz Republic; USAID/CAR
RESULT NAME: LAIR 2.1.3.3.1 More effective and independent elected officials.
INDICATOR: Number of major changes in draft laws by legislatures or refusals to pass legislation.
UNIT OF MEASURE: ABA and NDI reports.                                          YEAR      PLANNED ACTUAL

SOURCE: ABA, NDI                                                               1995      NA
INDICATOR DESCRIPTION: ABA and NDI will count the number of laws,
submitted from the ministries to the parliament, that the parliament refuses to 1996     NA         3
pass or to which the parliament makes considerable changes that are then
adopted into the bill which is passed.
                                                                                1997     3          *
Since most legislation in Kyrgyzstan originates in the ministries, a refusal to
act, a refusal to ratify, or some equivalent will be used as measures of the    1998     5**
independence of the national legislature and considered equivalent to a veto.

                                                                               1999      7**
COMMENTS:
New indicator.                                                                 2000      9**
*The parliament routinely makes major changes to draft laws submitted by
the ministries. The intended result is nearly met, needing only
institutionalization (to become irreversible). This will be possible if the    2001      12**
parliament continues to assert itself in this manner. To help gauge
USAID/CAR’s progress toward this LAIR, a new indicator measuring the
number of laws initiated by the parliament will be added in 1998.              2002      15**
**Listed are the targets proposed at the 1996 R4 presentation.




                                                       37
E. SO 2.3 MORE EFFECTIVE, RESPONSIVE, AND ACCOUNTABLE LOCAL
GOVERNMENT

SO 2.3 was submitted without resource request as a Conceptual Objective in FY 97. Funds
for this SO were requested and were obtained through the R4 submission for FY 1998 and
the program utilizing those funds is in the final stages of design. The design has resulted in a
refinement of the Strategic Framework for the SO. With the new funding we will move
during FY1998 from collecting and encouraging results in other strategic objectives to
supporting specific results-oriented activities in this strategic objective.

1. Performance Analysis

The Kyrgyz Republic has made significant progress in transitioning toward more effective,
responsible and accountable local governments. While democratic institutions and practices
are fragile, a more away from authorization rule and towards a sustainable democracy is
clearly discernable. The national government has created an Office of Local Government
with an agenda to strengthen local government. A companion NGO called the National
Association of Local Self-Government comprised of the elected village leaders (Councillors)
and the elected mayor of Bishkek has been incorporated into a larger Congress of
Communities, which includes NGOs as well as subunits such as block and neighborhood
committees.

The government has moved from the bottom up in implementing the local self-governance
program. Elections have been held in the 455 villages for the Kenesh or council. A new
position Baschi was created; the Baschi is both the executive officer and elected head of the
Kenesh. The Baschi is selected from among the elected council members by the rayon akim
(municipal chief administrator) but must be approved by the Kenesh and once in office the
Baschi can be removed by a no confidence vote of the Kenesh. All of the villages have
enacted charters and the 19 towns plus Bishkek are in the process of doing so. As a further
move to strengthen local government, the national government has begun a process of
transferring state-owned assets to local governments. While still in its early stages of
nationwide implementation, the state-owned assets (approximately 3,000 properties) have
already been transferred to the capital city of Bishkek. In the first half of 1997, the National
Association of Local Governments administered competency tests for its members, which
results showed that most of them are weak in fundamental financing and management skills.
Likewise, the Presidential apparat stated that training is a critical area in which it needs
assistance in order for the new local government system to work. The institution charged with
responsibility for in-service training of local officials, the Academy of Management, has
asked for assistance in developing such a training program.

 Despite the serious progress made to date, an enormous amount remains to be done in the
area of local government empowerment. Villages, towns and cities have been severely


                                               38
constrained by the Ministry of Finance's control over their budgets. The newly enacted tax
law provides for a number of local taxes and fees but these sources provide only a fraction
of local revenue needs and most of the resources are still provided through the central budget.
Slow but steady progress toward further intergovernmental fiscal reform is being achieved.
Fixed revenue-sharing formulas, which provide municipalities with a measure of predictability
previously absent, have been adopted for several taxes and more are promised, as is the
adoption of formulas for awarding subventions which are based on need.

Therefore it is timely to make a major commitment to this Strategic Objective. This SO 2.3
will work to create more effective, responsive and accountable local governments through
three intermediate results: (1) promoting and facilitating citizen involvement in local
government; (2) adopting practices and policies that improve local government delivery of
service and management of resources, (i.e. improve governments performance), and (3)
establishing the necessary enabling environment for local government.

IR 2.3.1 Practices promoting citizen input and involvement adopted. In the past, activity
related to this new IR had been undertaken under SO 2.1, principally in terms of
strengthening NGOs so they are better able to involve citizens in local government. The new
Local Government Program will build on this work with NGOs (which will continue under
SO 2.1) by working with local governments so they are more receptive to citizen
involvement.

IR 2.3.2 Practices improving delivery of services and management of resources adopted.
The widespread adoption by local governments of practices and policies that improve their
delivery of services to citizens and their allocation and management of resources and assets is
essential to the achievement of more effective local government. In the past, activities related
to this IR have been undertaken under 3.2 and major achievements have been obtained with
respect to management of the housing stock. A condominium law was adopted in 1997
which facilitates ownership and management of housing through resident associations. As
opposed to the situation in Kazakhstan the law is permissive only and only a fraction of the
residential apartment buildings have resident management. Building on this significant
progress, efforts will concentrate on creation of more resident associations and their
democratic governance and on the development and promotion of other good practices for
resource management and service delivery.

IR 2.3.3 Measures increasing local government's legal and financial foundation adopted.
In the past, activities related to this IR have been undertaken under SO 1.2. Efforts to
achieve fiscal decentralization through the Fiscal Reform Project are proceeding slowly. The
Fiscal Reform Project will continue its work an fiscal decentralization and municipal financial
management activities undertaken in the Local Government Program will be closely
coordinated with those efforts.



                                               39
2. Expected Progress Through FY2000 And Management Actions

The concept of local self-government, with little control from the center, is a concept quite
alien to the political culture of Kyrgyzstan and will take some time to take root. There is
concern that too much local autonomy will result in ethnic strife and possible succession.
The current government appears to be committed to decentralization of authority (less so with
respect to financial resources), while at the same time retaining the ability of the center to
reassert control if things get out of hand. There are a number of progressive local officials
interested in undertaking reforms. Within this environment it is expected that over the next
three years local governments in Kyrgyzstan can be strengthened to the point where services
can be delivered with a greater degree of efficiency by local officials who operate more
transparently and with a greater degree of responsiveness to local citizens. By expanding the
role of the locally elected councils and professionalizing the job of the chief administrator
(akim) the opportunity exists to move local government in Kyrgyzstan to a system
approximating that of the U.S.city manager/council system of local government (a key
difference being that in the US the council hires the manager) Thus AID proposes to work
with the locally elected councils so they can begin to play a more meaningful oversight role
in the municipal affairs and to work with the chief administrators and their staffs to enhance
their skills so they become more professional city managers responsive to democratically
elected councils and citizens in general. AID will also propose that the Mission’s fiscal team
provide assistance to develop program budgets.

The FY 1998 program has several ambitious initial steps. Demonstrations of good practices
promoting citizen input and involvement and improving delivery of services and management
of resources will be developed in specific localities and the experience disseminated to other
local governments. The specific practices will be (1) an informative budget format and end-
of-year financial report, (2) an improved financial management system and budget process &
organization, (3) an asset management system and (4) a competitive procurement system.

 In addition, an in-service training curriculum will be developed at the institute responsible
for training local officials that will provide the base of skills in municipal governance and
management on which the next stages of the program can build. Training will focus on
management, including financial management skills, needed by professional mangers, and
leadership skills needed by local council deputies and chief administrators. Trainees will be
expected to indicate how they intend to apply their newly acquired skills and beginning in FY
1999 technical assistance will be offered to these officials in their municipalities to aid them
in applying the skills in implement new systems, procedures and policies.

The FY 1998 program will also continue for an additional year activities which will
consolidate and expand the substantial gains made under SO 3.2 in shifting the responsibility
for managing housing from municipalities to resident associations. This shift empowers
individuals to control a major aspect of their environment, their living space, and relieves


                                               40
local government of a major responsibility it is ill equipped to carry out.

Emphasis will be also be placed on strengthening the Association of Local Governments for
long term sustainability of technical exchanges and for advocacy work on the development of
the legal basis.




                                               41
3. Performance Data Tables

 STRATEGIC OBJECTIVE: 2.3 More effective, responsible, and accountable local government
 APPROVED: 7/97
 COUNTRY/ORGANIZATION: Kyrgyzstan, USAID/CAR
 RESULT NAME: SO 2.3 - Demonstrate more effective, responsible, and accountable local government
 INDICATOR: Average rating for effectiveness, responsiveness and accountability in random sample of target
 municipalities.
 UNIT OF MEASURE: Rating based on one point per criteria of effective,           YEAR           PLANNED      ACTUAL
 responsive and accountable local government based on a qualitative
 assessment.
 Average taken from a representative sampling of target municipalities.          1998                        0
 Criteria (to be elaborated but may include) demonstrated improvements in:       baseline
 1) transparency/openness
                                                                                 1999           TBD
 2) accessibility to citizens
 3) responsiveness to citizens
 4) improved management techniques                                               2000           TBD
 5) improved service delivery
 6) resource allocation by priority
 7) budget process improved                                                      2001           TBD

 SOURCE:
                                                                                 2002           TBD
 INDICATOR DESCRIPTION:

 COMMENTS:                                                                       2003           TBD




 STRATEGIC OBJECTIVE: 2.3 More effective, responsible, and accountable local government
 APPROVED: 7/97          COUNTRY/ORGANIZATION: Kyrgyzstan, USAID/CAR
 RESULT NAME: IR 2.3.1 Practices promoting citizen input and involvement adopted
 INDICATOR: % target municipalities adopting techniques that facilitate citizen participation
 UNIT OF MEASURE: % of local bodies that create vehicles for citizen             YEAR           PLANNED      ACTUAL
 involvement such as open hearings, task forces, commissions,
                                                                                 1998                        0
 understandable budget documents, information offices.
                                                                                 baseline

 SOURCE:                                                                         1999           TBD
                                                                                 2000           TBD
 INDICATOR DESCRIPTION:
                                                                                 2001           TBD
 COMMENTS:                                                                       2002           TBD
                                                                                 2003           TBD




 STRATEGIC OBJECTIVE: 2.3 More effective, responsible, and accountable local government
 APPROVED:    7/97                          COUNTRY/ORGANIZATION: Kyrgyzstan, USAID/CAR


                                                        42
RESULT NAME: IR 2.3.2 Practices improving delivery of services and management of resources adopted
INDICATOR: % target municipalities using improved management techniques
UNIT OF MEASURE: % of local governments that adopt techniques such         YEAR          PLANNED      ACTUAL
as competitive procurement, program-based budget format, market-oriented
zoning procedures                                                          1998                       0
                                                                           baseline
SOURCE:                                                                    1999          TBD

INDICATOR DESCRIPTION:                                                     2000          TBD

COMMENTS:                                                                  2001          TBD

                                                                           2002          TBD

                                                                           2003          TBD



STRATEGIC OBJECTIVE: 2.3 More effective, responsible, and accountable local government
APPROVED:    7/97        COUNTRY/ORGANIZATION: Kyrgyzstan, USAID/CAR
RESULT NAME: IR 2.3.3 Measures increasing local government's legal and financial foundation adopted
INDICATOR: Number of conditions that exist and enable local government autonomy
UNIT OF MEASURE: Rating of 1-6 based on establishment of necessary         YEAR          PLANNED      ACTUAL
criteria for local government to function:

Conditions are:                                                            1998                       0
1) authority to manage services delivered at local level                   baseline
2) access to revenue base they can influence
3) power to make budget decisions independently                            1999          TBD
4) leadership accountable to citizens through elections
5) control over local property
6) department heads are accountable to the municipal government and not    2000          TBD
the central government

SOURCE:                                                                    2001          TBD

INDICATOR DESCRIPTION:
                                                                           2002          TBD
COMMENTS:

                                                                           2003          TBD




                                                    43
F. SO 3.2 IMPROVED SUSTAINABILITY OF SOCIAL BENEFITS AND SERVICES

Over the past three years, assistance toward this goal has focused on increasing the efficiency
and effectiveness of the health sector and developing private sector capacity in the housing
and health sectors.

The activities under this SO are designed to introduce efficient models in the health and
housing sectors, build a policy consensus and legal framework for the reforms, provide
technical assistance to develop and implement specific products or interventions, provide
training to make change a reality, and finally, to inform the public about the reforms and their
impact on the population’s daily lives. There are changes that can be made to maintain the
social system: restructuring the delivery system, introducing competition, improving
financing mechanisms, introducing modern management techniques, involving the population
in decision-making, and developing a set of minimum benefits which are essential and
affordable. The activities under SO 3.2 represent an integrated package of reforms which
together accomplish the goal of improving the sustainability of social benefits and services.

The Mission has narrowed the USAID strategic objective to "Reform strategies in selected
social sectors developed and implemented." This objective is on target for completion.

1. Performance Analysis

SO 3.2 Improved sustainability of selected social benefits and services. The timeframe
for achieving the above strategic objective was established at two to five years. Progress in
many of the stated intermediate results and indicators demonstrates that some aspects of
reform, as noted below, are moving more rapidly than others towards the achievement of the
mission strategic objective.

Progress rating: Progress to date is better than projected.

Four intermediate results are considered to be most significant in accomplishing SO 3.2.
They are: 3.2.1, Critical social benefits and services needs identified for vulnerable
populations; 3.2.2, Demonstration that quality health care and municipal services (housing)
can be made available on a cost effective basis; 3.2.3, National legal and regulatory
framework established for housing and health reforms; and 3.2.3.3, Increased participation by
other donors. The performance of each of these areas is described below.

IR 3.2.1 Critical social benefits and services. Two targeted performance indicators are
used, one which demonstrates the successful assessment of the vulnerable population for
targeting and the other which deals with strengthening local capacity to meet the needs of the
people. Concerning strengthening local capacity, the non-government organization (NGO)
support project has been successful and is now reported under strategic objective 2.1 (Citizen


                                               44
Participation).

Progress rating: The overall progress was satisfactory.

IR 3.2.2 Demonstrate that quality health care and municipal (housing) services can be
made available on a cost effective basis. The indicator monitoring the increase in the
number of independent primary care practices demonstrates tremendous progress toward
achieving this objective. For example, 81 Family Group Practices (FGPs) are now fully
operational in the pilot site of Issyk-kul Oblast. Approximately 85 percent of the population
in the pilot site have now enrolled in a FGP of their choice -the first time ever that such
choice was made available to people in Kyrgyzstan. An NGO, the Family Group Practice
Association supports and strengthens FGP’s. Family planning and infectious diseases are
being incorporated into FGP’s through training and the introduction of improved clinical
information systems. The Family Medicine Training Center provided a year long course for
12 trainers in family medicine and was accepted as an official affiliate of the Medical
Post-Graduate Institute in Bishkek.

Establishing FGP’s to strengthen primary care resulted in a major restructuring of the health
delivery system. It demonstrates improved access to health care as well as better targeting of
the government’s health budget, as primary health care is the most cost effective health
service. FGP’s introduce economic incentives to improve quality and reduce costs by
lowering unnecessary high cost referrals to hospitals and allowing the population to select
their family group provider. Finally, family planning and infectious diseases are included in
the primary care structure to establish comprehensive delivery of health care.

The housing program was successfully completed and lessons learned and policy initiatives
are being incorporated within SO 2.3 (local government) and 1.2 (fiscal reform).

Progress rating: Overall progress is better than expected.

IR 3.2.3 National legal and regulatory framework established for housing and health
reforms. A national policy and legal framework has been established for health reform. A
major element of this framework is redefinition of the institutional relationship between the
Ministry of Health (MOH) and the Health Insurance Fund (HIF) through creation of a set of
jointly used systems. Establishment of five jointly used systems --information, payment,
accounting, quality, and benefits coordination --resolved conflicts and technical problems
between the MOH and HIF and allowed extension of the health reforms from the pilot site to
the national level to begin. Extensive technical assistance provided to a MOH and HIF Joint
Working Group resulted in the establishment of this framework and provides a solid vehicle
for future policy advice.

Health insurance was established as an integral part of a broader social insurance policy and


                                              45
legal framework. One entity (the Social Insurance Fund) will collect all taxes and one social
protection card with a unique identifier number and a linked information system will
determine eligibility for all social benefits, including health. The Health Insurance Fund
began operation in 1997. They adopted and began national implementation of the hospital
payment system developed in the Issyk-kul pilot as well as the accompanying computerized
management information and billing systems. A new quality management system was also
implemented nationally. Finally, a public information campaign, including a video televised
nationally, resulted in increased awareness by the public of health insurance and health
reform.

Progress rating: The overall progress for this IR is ahead of schedule and performing
excellently towards meeting the Mission SO and is accorded exceptional rating.

IR 3.2.3.3 Increased participation by other donors. A $20 million World Bank health
reform project rolling-out the USAID Issyk-kul model began in 1997. This project was key
to influencing policy directives at the national level and is an excellent example of leveraging
donor assistance. A Memorandum of Understanding between the Government of the US and
the Government of Kyrgyzstan for health reform signed in September includes a process for
coordination between USAID and the World Bank to ensure that the health reforms are
integrated and produce maximum benefit. The USAID pilot site and roll-out by the World
Bank means that health reforms reach 50% of the population of Kyrgyzstan.

Work in the housing sector has been successfully completed, and lessons learned have been
incorporated into SO 2.3 (local government).

Progress rating: The overall progress for this IR has exceeded expectation and is accorded
exceptional rating.

2. Expected Progress through FY2000 and Management Actions

In health reform, the integrated model of reform will continue to be refined in the pilot area.
The national policy and legal framework will be expanded, solidified, and institutionalized.
USAID will collaborate with the World Bank to ensure that their projected roll-out in the
pilot area is consistent and integrated with the USAID model. The health reform model will
be expanded to two additional oblasts by USAID, resulting in health reforms reaching 90% of
the population by the year 2000. USAID/CAR will continue to emphasize that our program
is not providing "relief", but is designed to create financially viable, politically acceptable
social services.




                                               46
3. Performance Data Tables

STRATEGIC OBJECTIVE: 3.2 Improved sustainability of social benefits and services
APPROVED: 7/26/96                      COUNTRY/ORGANIZATION: Kyrgyzstan, USAID/CAR
RESULT NAME: IR 3.2.2 Demonstrate that quality health care and municipal services can be made available on cost
effective basis.
INDICATOR: Number of independent primary care practices increased.
UNIT OF MEASURE: Number of primary care practices.                       YEAR           PLANNED       ACTUAL

                                                                         1996           32            40
SOURCE: Data base: Health Reform project
                                                                         1997           60            81
INDICATOR DESCRIPTION: Increase in # of primary care practices
actually staffed and providing services in demonstration oblasts.        1998           80

                                                                         1999           100
COMMENTS:
                                                                         2000           complete



STRATEGIC OBJECTIVE: 3.2 Improved sustainability of social benefits and services
APPROVED: 7/26/96                                   COUNTRY/ORGANIZATION: Kyrgyzstan, USAID/CAR
RESULT NAME: IR 3.2.1.1.1 NGOs providing sustainable social services established.
INDICATOR: Number of social service NGOs.
UNIT OF MEASURE: Number of NGOs in Counterpart Database                  YEAR           PLANNED       ACTUAL

SOURCE: Counterpart data base.                                           1995                         17

INDICATOR DESCRIPTION: Number of Health NGOs as a proxy of Social        1996           25            35
Service NGOs.
                                                                         1997           35
COMMENTS:    this activity is moved to another SO
                                                                         1998




                                                   47
STRATEGIC OBJECTIVE: 3.2 Improved sustainability of social benefits and services
APPROVED: 7/24/96                               COUNTRY/ORGANIZATION: Kyrgyzstan, USAID/CAR
RESULT NAME: IR 3.2.2.3 Shift from public to private ownership and maintenance of housing.
INDICATOR: Increase in number of cooperatives managing buildings.
UNIT OF MEASURE: # of cooperatives.                                          YEAR        PLANNED       ACTUAL

SOURCE: International City/County Managers Association (ICMA)                1995        NA            0
INDICATOR DESCRIPTION: The number of housing cooperatives that are
known to USAID implementing partner.                                         1996        10            15

COMMENTS:
                                                                              1997       30            30 YTD
The number of cooperatives is expected to rise by the end of the fiscal year.

Activity completed                                                           1998        completed




STRATEGIC OBJECTIVE: 3.2 Improved sustainability of social benefits and services.
APPROVED: 7/26/96                           COUNTRY/ORGANIZATION: Kyrgyzstan, USAID/CAR
RESULT NAME: IR 3.2.3 National legal and regulatory framework established for housing and health reforms.
INDICATOR: Government policies adopted.
UNIT OF MEASURE: # of successful project/interventions rolled out            YEAR        PLANNED       ACTUAL
# cities exposed to better information on housing and health care reform.

SOURCE: Office of Social Transition and project data sources
                                                                             1996        N/A
INDICATOR DESCRIPTION: Number of decrees, laws, or regulations
requiring the use of techniques developed and tested on a pilot basis that
are enacted nationally.
                                                                             1997        1             3
                                                                                         national      national
COMMENTS:
FY 1997 - Health
Government decree establishing jointly used systems
                                                                             1998        2
HIF regulations implementing health insurance
                                                                                         national
MOH family group practice regulations




                                                       48
STRATEGIC OBJECTIVE: 3.2 Improved sustainability of social benefits and services
APPROVED: 7/26/96                                COUNTRY/ORGANIZATION: Kyrgyzstan, USAID/CAR
RESULT NAME: IR 3.2.2.1.2 Increased consumer participation in market based human services delivery.
INDICATOR: Percentage of people actively choosing their primary health care provider in pilot oblasts.
UNIT OF MEASURE: % of Oblast population.                                      YEAR           PLANNED     ACTUAL

SOURCE: Data base: Health Reform project                                      1996           0           80

INDICATOR DESCRIPTION: Percent of population in pilot Oblasts enrolled        1997           85          85
in family group practices.
                                                                              1998           90
COMMENTS:
1996 -1997 refers to the pilot in Issyk-Kul Oblast.                           1999



STRATEGIC OBJECTIVE: 3.2 Improved sustainability of selected social benefits and services.
APPROVED: 7/26/96                           COUNTRY/ORGANIZATION: Kyrgyzstan, USAID/CAR
RESULT NAME: IR 3.2.3.2 Increased participation by other donors.
INDICATOR: Successful pilot projects rolled out by other donors.
UNIT OF MEASURE: Number of USAID initiated projects expanded or               YEAR           PLANNED     ACTUAL
extended by other donors.
                                                                              1996           NA          0
SOURCE: Project data base

INDICATOR DESCRIPTION: Other donors initiating and expanding USAID            1997           1           2
pilot projects to other oblasts through additional funding.
                                                                              1998           2
COMMENTS: With the World Bank roll-out to two other Oblasts 50 percent
of the population of the country is covered by health care reforms.           1999




                                                      49
G. SO 4.1 SPECIAL INITIATIVES

USAID/CAR does not have a strategy tree or results framework for Special Initiatives.
Activities under this initiatives are funded from congressional earmarks for reproductive
health, infectious diseases and medical partnerships. They contribute to strategy objective 3.2
but are too disparate to be integrated into that framework

In the area of reproductive health, the objective of USAID/CAR's Reproductive Health
Services Expansion Program (RHSEP) was to promote the use of safe, modern contraceptives
in order to decrease the dependence on abortions to control fertility. During FY 1997, three
USAID Cooperating Agencies (CAs) implemented this program. The Johns Hopkins Program
for International Education in Obstetrics and Gynecology (JHPIEGO); Access to Voluntary
Safe Contraception (AVSC); and The Futures Group through its Social Marketing for Change
(SOMARC) Project. AVSC conducted training in contraceptive technology update,
counseling, Intrauterine device (IUD) clinical skills, and infection prevention. JHPIEGO
trained trainers and assisted in the development of the family planning guidelines. SOMARC
Project worked with customers, private pharmacies, distributors, and international
manufacturers to make modern contraceptives and information about them available to
customers, and health professionals in Kyrgyzstan. However, no activity in the social
marketing project was undertaken in 1997. In addition the Demographic Health Survey
(DHS) was conducted to provide decision makers health related data for monitoring and
programming purposes.

A recently completed 19997-2000 USAID/CAR Reproductive Health Strategy for Kyrgyzstan
recommended continued support in reproductive health and to shift the focus towards
strengthening of the family group practices to provide reproductive health services. These
family group practices are being established in pilot areas under USAID/CAR support and are
being replicated nationwide under the World Bank loan.

There is one medical partnership activity in Kyrgyzstan. This is between the Kyrgyzstan
Institute of Oncology and Radiology, the Institute of Obstetrics and Pediatrics, the Institute
of Cardiology and Internal Medicine in Bishkek and the University of Kansas Medical
Center (KUMC), Kansas. Nurse education, introduction of family medicine, management
training, pediatric oncology, laparoscopic surgery, prosthetics and orthotics, neonatology,
respiratory disease, emergency and burn care, and continuing education has been the general
areas of focus for this partnership. The program ends in September 1998 and a new medical
partnership program is under design. The partnerships have contributed immensely in hospital
based technology transfer between the partners. Efforts to expand to primary health care were
initiated in 1997, but have been limited to date.

Under infectious disease program, Kyrgyzstan is introducing more effective, efficient, and
cost-effective surveillance measures; and working on reducing morbidity and mortality due to


                                              50
acute respiratory infections, and childhood diarrheal diseases in Osh Oblast of Kyrgyzstan.
Models now exist to better manage these diseases, preventing unnecessary childhood deaths.
This work has been effectively integrated within USAID/CAR's Health Reform Demonstration
areas under SO 3.2. A new tuberculosis initiative has been initiated in 1998. The World
Bank and WHO have started implementing the WHO approved Directly Observed Treatment,
Short-course (DOTS) therapy nationwide. USAID/CAR assistance will fill in the gaps for
training in clinical methods and quality assurance, thus strengthening diagnostic capabilities of
family group practices and educating the public about tuberculosis.

Per guidance from USAID/W, one indicator was selected for each earmark activity to best
reflect their results.

1. Performance analysis

SO 4.1 Special Initiatives. SO 4.1 does not have its own tree and intermediate results. The
following four indicators were selected to report on progress. As ongoing programs are
completed, existing indicators will be modified to reflect new program thrusts, for example
tuberculosis.

a) Reduction in General Abortion Rate.          Induced abortions have serious detrimental
effect on women's health and is one of the major factors contributing to maternal mortality.
Therefore, USAID/CAR programs in reproductive health under the RHSEP was directed at
increasing the options women have in selecting their method of contraceptive as well as
making contraceptives widely available. The relationship between increase use of modern
contraceptives and decreased abortion rates is well established in scientific literature and from
experience in other countries.

Significant results have been achieved under the RHSEP. As contraceptive use has increased
abortion rates have declined. Ministry of Health data, and data from the Demographic Health
Survey, show that General Abortion rates have declined from 33.4 per 1000 women in 1994
to 26.6 in 1996. Data for 1997 will be available in March 1998.

Progress rating: Satisfactory

Increase in couple years of protection (CYP). The main activity during FY1997 to measure
this indicator was the Social Marketing Project. In the case of the Social Marketing project
performance, CYP is calculated utilizing the number of Red Apple ( program name )
contraceptives sold by manufacturers to distributors. The social marketing project was
operational on a very limited scale in FY97. The FY1996 family planning earmark funding
was redirected at conducting the Demographic Health Survey because the Government lacked
accurate and reliable information on health indicators. Therefore, CYP data are not available
at this point. In addition, there were contractual issue which affected project implementation.


                                               51
Progress rating: Cannot rate the progress because data are not available.

The Kyrgyz Republic Demographic and Health Survey was initiated in 1997 and data
collected. A data processing center has been established at the Institute of Obstetrics and
Pediatrics and data entry is scheduled for completion by early December 1997.

c) Number of health providers trained in modern management techniques and clinical
practices. The common area of focus for partnership activities is training in areas such as
nurse education, pediatric oncology, laparoscopic surgery, prosthetics, orthotics, neonatology,
 infection control, reconstructive surgery and rehabilitation techniques for burn patients,
mammography and ultrasound, family practice program, and new methods of bronchial
asthma treatment. Although this one indicator does not capture the range of partnership
activities, much of the work done under the partnerships has involved technology transfer and
training. It was therefore selected as the main indicator for reporting purposes. Obtaining
this information, from the implementing partner, however has been difficult. In 1997, 86
health providers were trained in different areas while the target was 107. However the
opening of Nursing Learning Resource Center (NLRC) is worth mentioning as it expands the
role of the nurses in the medical profession.

Progress rating: Satisfactory

d) Percentage of Oblasts using modern approaches to disease surveillance. Centers for
Disease Control and prevention are implementing this program. 100% use of computer-
based applications for polio and diphtheria was achieved in 1996. In 1997 additional diseases
such as tuberculosis and hepatitis have been added to the surveillance assistance.

Progress rating: This indicator for polio and diphtheria was achieved in 1996.

Results have also been achieved in the management of childhood diseases, especially for
acute respiratory infections (ARI) and diarrheal disease control (DDC), two major causes of
childhood and infant deaths. At the end of the project, September 1997, new treatment
protocols and training modules exist for replication that will contribute towards improved
management of childhood diseases, especially ARI and DDC. In addition, in conjunction
with the World Health Organization (WHO), a cost-effectiveness study was completed. It
compared the traditional and WHO-recommended short course therapy (DOTS) currently
being implemented with World Bank funding in two rayons in Issyk-kul Oblast. The purpose
of this study was to determine the relative cost to the health care system and to patients of
each of the two different therapies ("traditional" vs. "DOTS"). This study was instrumental in
the design of the World Bank, WHO tuberculosis program in Kyrgyzstan.



                                              52
A new initiative started in 1998 for prevention and treatment of tuberculosis in collaboration
with ongoing efforts by the World Bank and WHO. A new indicator for this initiative is
percent of oblasts following DOTS effectively.


2. Expected Progress Through FY2000 and Management Actions

Reproductive health

Starting in FY1998, USAID/CAR will focus the reproductive health activity towards the
support of Family Group practices in Kyrgyzstan, starting with the pilot health reform oblasts.
These FGP's are the first point of contact for women for referrals and treatment. To date
there are 81 FGP's in the pilot area. By the year 2000 it is expected that each oblast will
have FGPs established to cover the population. USAID's initial efforts in FY1998 in one
oblast will be expanded to the World Bank oblasts as FGP's get developed under the loan.

Infectious disease program

USAID/CAR has embarked on a new tuberculosis initiative in Central Asia, providing
technical assistance to address this problem. Working through the collaborative efforts of the
U.S. Centers for Disease Control and Prevention (CDC), Project HOPE, and Abt Associates’
ZdravReform Project, USAID/CAR hopes to build on its on-going health reform efforts to
reform the existing TB diagnostic, treatment, and control practices in this region. In
Kyrgyzstan, USAID/CAR's assistance will fill in the technical assistance gaps which are not
provided under the World Bank and WHO program. In particular, USAID/CAR will provide
support to the National Institute of tuberculosis in quality assurance and laboratory equipment.
At the oblast level, USAID/CAR will strengthen the FGP's capacity to conduct timely
referrals and will educate the public about the TB disease and its prevention.

Medical partnership

USAID/CAR hopes to direct future medical partnerships to support the overall health reform
agenda and towards strengthening of primary health care in Kyrgyzstan. Nursing reform
through practical skills development is another area which needs to continue as a focus.
Partnerships between health professionals such as the FGP's and health institutions supporting
community health actions are needed. Starting September 1998, a new partnership program
will be in place. This program is currently being designed in USAID/W.




                                              53
3. Performance Data Tables

 OBJECTIVE: 4.1 Earmark-Reproductive Health
 APPROVED: 1997                             COUNTRY/ORGANIZATION:Kyrgyzstan, USAID/CAR
 RESULT NAME: N/A-Congressionally mandated earmark
 INDICATOR: Reduction in General Abortion Rate (GAR)
 UNIT OF MEASURE: General Abortion Rate (GAR)                                     YEAR   PLANNED     ACTUAL

 SOURCE: Ministry of Health (MOH)
                                                                                  1994   -           33.4
 INDICATOR DESCRIPTION: Induced abortions per 1000 women ages 15-
 49.
                                                                                  1995   -           29.6
 COMMENTS:
 1. Data is calendar year data. The MOU will share the dates in March for
 the prior calendar year. *                                                       1996   -           26.6
 2. The 1997 Demographic and Health Survey data will be compared to
 MOH data to confirm validity and reliability.

                                                                                  1997   25
                                                                                                         *


 OBJECTIVE: 4.1 Earmark-Reproductive Health
 APPROVED: 1997                             COUNTRY/ORGANIZATION: Kyrgyzstan, USAID/CAR
 RESULT NAME: N/A-Congressionally mandated earmark
 INDICATOR: Increase in Couple Years of Protection (CYP)
 UNIT OF MEASURE: Couple Years of Protection (CYP)                                YEAR   PLANNED     ACTUAL

 SOURCE: International manufacturers of Red Apple (Contraceptive Social
 Marketing Program logo) contraceptives.                                          1994   -           0


 INDICATOR DESCRIPTION: Couple Years of Protection is the theoretical             1995   -           -
 number of couples receiving contraceptive protection for a year. It is
 calculated using contraceptive specific denominators: 15 cycles of oral
 contraceptives equals one CYP; 100 condoms equals one CYP; 4 doses of
                                                                                  1996   10,000      no data
 Depo-Provera and six doses of Noresterat equals one CYP.
                                                                                                     available
 COMMENTS:
 1.) For this activity CYP is calculated utilizing the number of contraceptives   1997   -           no data
 sold by manufacturers to distributors.                                                              available
 2.) Kyrgyzstan entered the Red Apple program in 1995. Prior to that
 SOMARC focused on training pharmacists and physicians on Depo-Provera            1998   change in
 due to large delivery by UNFPA and no training available.                               activity




                                                         54
OBJECTIVE: 4.1 Earmark - Medical Partnerships
APPROVED: 1997                              COUNTRY/ORGANIZATION: Kyrgyzstan; USAID/CAR

RESULT NAME:N/A - Congressionally mandated earmark. (Modern Management Techniques and Clinical Practices
Introduced)
INDICATOR: Number of health providers trained in modern management techniques and clinical practices.
UNIT OF MEASURE: Number of health providers.                               YEAR          PLANNED        ACTUAL

SOURCE: American International Health Alliance (AIHA).

INDICATOR DESCRIPTION: Increase in number of health providers trained
in modern management techniques and clinical practices.

COMMENTS:                                                                   1996                        47
1. The current indicator replaces the previous one “Increase in Number of
Facilities Using Modern Management Techniques and Clinical Practices.”
The previous indicator was based on a 1994 baseline of 23 with targets of
25 facilities in 1995 and 28 facilities in 1996 using modern management
techniques and clinical practices. AIHA is unable to provide data needed by
the indicator. AIHA reports on numbers of persons trained.
2. Planned 1997 target is cumulative (includes 1996 actual plus 1997
                                                                            1997         107            86
specific). The 1997 actual is as of 1/09/98.




OBJECTIVE: 4.1 Earmark-Infectious Disease
APPROVED: 1997                                   COUNTRY/ORGANIZATION: Kyrgyzstan; USAID/CAR
RESULT NAME: N/A - Congressionally mandated earmark
INDICATOR: Percent of oblasts using modern approaches to disease surveillance
UNIT OF MEASURE: Percent                                                   YEAR          PLANNED        ACTUAL

SOURCE: Centers for Disease Control and Prevention (CDC) in Central
Asia

INDICATOR DESCRIPTION: Increase in the number of oblasts using             1998          TBD
computer-based applications for case specific diseases

COMMENTS: This indicator refers to the modern methods applied to TB
hepatitis, and vacine preventable disease.




                                                    55
OBJECTIVE: 4.1 Earmark-Infectious Disease
APPROVED: 1997                                  COUNTRY/ORGANIZATION: Kyrgyzstan; USAID/CAR
RESULT NAME: N/A - Congressionally mandated earmark
INDICATOR: Number of smear positive cases who covert to a negative smear at the end of the intensive phase therapy
UNIT OF MEASURE: Number                                                   YEAR           PLANNED        ACTUAL

SOURCE: Centers for Disease Control and Prevention (CDC) in Central
Asia

INDICATOR DESCRIPTION: Increase in the number of cases who                1998 (TBD)     TBD
complete their intensive therapy and whose smears are negative

COMMENTS: This indicator refers to the DOTS program for TB
prevention and control.




                                                   56
III. STATUS OF THE MANAGEMENT CONTRACT

The Management Contract agreed to by the Mission and Washington during last spring's R4
reviews has not been significantly altered for Kyrgyzstan. However, it is important to note
the following for this year's R4 discussions:

A. Strategic Objective Changes or Refinements. The Mission's two regional strategic
objectives, both of which include activities in Kyrgyzstan, were approved during last year's
R4 review. Following this approval and subsequent to Washington's creation of the new
environmental strategic objective 1.6, USAID/CAR eliminated the Mission's SO 3.3
(Reduction in regional economic and political tensions generated by transboundary
environmental issues) and adopted SO 1.6 (Reduction in regional economic and political
tensions generated by transboundary environmental issues). Technical assistance activities
were affected by this change, as described in the Regional R4 for Central Asia. Also, the
wording of the Mission's SO 1.5 was changed from "A more economically sound and
environmentally sustainable energy system as the primary engine of growth in Central Asia"
to "An effective policy framework in place to achieve private investment in an
environmentally sound, regionally efficient, market-oriented energy sector" to more fully
reflect USAID/CAR activities in the energy sector. Technical assistance activities were not
affected by this change.

The wording of the Mission’s SO 3.2 was changed from "Reform strategies in selected social
sectors developed and implemented" to "Improved sustainability of selected social benefits
and services" during the Mission’s internal program review in December 1997. Technical
assistance efforts are not affected by this change.

The Mission's SO 2.3 (More effective, responsible, and accountable local government) was
officially approved for Kyrgyzstan and Kazakstan in July 1997. Hence, the Mission has
initiated a strong local government program in these two countries with the hiring of a local
government specialist and the allocation of budgetary resources to local government.
Additionally, the Mission is working diligently to fully exploit the strong complementarities
between the local government strategic objective and other strategic objectives in such areas
such as fiscal reform and health reform.

Recent budget developments have meant that the Mission's participant training program under
SO 4.2 (Cross-cutting programs) may have to be eliminated. This development will
negatively impact the number of Kyrgyz counterparts that can be trained both in-country and
in the United States.

B. Partnerships. The Mission sponsors seven active partnership-type activities in
Kyrgyzstan in health, energy, agriculture, environment, and NGOs. These include work
between the Osh Farmers Association and the Oregon Farm Bureau; links between the Talent


                                              57
Support Fund in Bishek and the USPVO Aid-to-Artisans; and a utility partnership involving
the United States Energy Association and the Kyrgyz National Energy Holding Company.
With the notable exception of the earmark-imposed health partnerships, these partnerships
form an integral part of the Mission program. To further support the State Department's
Partnership for Freedom initiative, the Mission is planning and will implement new
partnerships and pre-partnerships in Kyrgyzstan in FY 98. These partnerships will support
Mission reform efforts in the economic, democratic, and social spheres by linking key
counterparts and institutions in Kyrgyzstan with appropriate partners in the US. The Mission
anticipates that these partnerships will be initiated in the next four months.




                                             58

				
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