Bishkek, Kyrgyz Republic, January 28, 2016 – Corruption, a lack of governmental transparency, and an unpredictable legal and regulatory environment are key constraints to business in the Kyrgyz Republic, says a survey released today by IFC, a member of the World Bank Group.
The report, “Investment Climate in Kyrgyz Republic – Views of Foreign Investors,” also identifies the ‘pain points’ within the country’s investment policy and offers recommendations to make the Kyrgyz Republic more investor friendly.
“The government recognizes the need for a robust investment climate that is transparent and encouraging,” said Alymbek Orozbekov, Head of Investments Department of the Ministry of Economy. “We are grateful to IFC for this analysis of whether the current regulations are investment-conducive and look forward to implementing recommendations and best practices in business regulations and regulatory governance in an effort to spur investment, create jobs, and boost growth.”
While it is fairly easy to enter the Kyrgyz market and register a company, operating a business and doing it effectively is much less so. A transparent and predictable legal environment is critical to encouraging investment, and the Kyrgyz government should continue to simplify and streamline regulations, specifically in the areas of permits and licensing.
The report highlights public order and security as other critical concerns and sees considerable potential for boosting foreign investment. Among the top five determining factors for investors are the importance of investing in a domestic market, the ease of company registration procedures, the ease of obtaining necessary permits and licenses, legislation conducive to business development, and access to cheap labor.
“Foreign direct investment can bring more and better jobs, improve productivity, and foster economic growth,” said Serhiy Osavolyuk, IFC Project Manager. “But to attract investors, the Kyrgyz Republic must first eliminate bottlenecks to doing business. These include reforms that target investment entry regulations and investment incentives, help reduce uncertainty for investors, and enable the government to attract more and better-quality investments
The initiative is part of the Central Asia Investment Climate Program, which is funded by the government of Switzerland and the United Kingdom’s Department for International Development, and implemented by the World Bank Group Trade and Competitiveness Global Practice.
About the World Bank Group
The World Bank Group is one of the world's largest sources of funding and knowledge for developing countries. It comprises five closely associated institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), which together form the World Bank; the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Each institution plays a distinct role in the mission to fight poverty and improve living standards for people in the developing world. For more information, please visit www.worldbank.org, www.miga.org, and www.ifc.org.