2004年-世界发展银行全球_Kyrgyz_Republic_-_Agricultural_Policy_Update___Sustaining_Pro-poor_Rural_Growth_Rural_Challenges_for_Government_and_Donors_99页_3mb

Kyrgyz Republic Agricultural Policy Update Summary

Core Content

This document provides an analysis of the agricultural sector in the Kyrgyz Republic, focusing on performance, policy reforms, and future challenges. It outlines the importance of the agricultural sector in the economy and highlights the need for sustainable growth and poverty reduction strategies.

Main Points

Agricultural Performance

• Agricultural Growth: Kyrgyzstan's agricultural growth has been impressive, with an annual rate of about 5% since 1999. Rural poverty has declined at a rate of about 8% per year.
• Sector Impact: Agriculture contributes 36% to GDP and 53% to employment, making it a key driver of economic growth and employment.
• Success Story: The country's agricultural reforms and growth represent an unusual success in transition economies, outperforming Central Asian neighbors and FSU countries.

Structural Changes

• Land Reforms: Accelerated after 1995, leading to the transfer of state land to peasant farms. By 2002, most state farms had been privatized.
• Peasant Farms: Small family farms now operate 71% of arable land and produce about half of the value of agricultural output. They have shown greater efficiency in resource use compared to previous landowners.
• Productivity: Improvements in productivity have been driven by better management of resources and regional price increases for crops and livestock.

Rural Development

• Rural Incomes: The rural non-farm economy is growing, and agricultural growth can help reduce poverty by generating employment and increasing wages.
• Non-Farm Economy: Agricultural growth has indirect effects on non-farm activities through income and employment multipliers.
• Poorest Households: These households rely more on non-farm employment and food market purchases, and thus benefit from agricultural growth through lower food prices and more job opportunities.

Key Challenges and Opportunities

Emerging Challenges

• Market Constraints: Domestic markets are high cost, risky, and poorly integrated, requiring policy reforms and infrastructure development.
• Public Expenditure: Current public expenditure programs are facing sustainability issues due to increasing costs and limited government revenue.
• Taxation: Agriculture is lightly taxed, which may hinder the development of a formal and competitive market. VAT is inhibiting market activity and pushing small enterprises into the informal sector.

Policy Reforms

• Land Reforms: Completion of land reforms, especially in the North, is critical for further growth. The Land Redistribution Fund holds 25% of arable land for potential allocation.
• Irrigation: Continued rehabilitation and cost recovery of irrigation infrastructure are necessary. Water User Associations (WUA) are key to this process.
• Market Development: Improving market access, reducing administrative barriers, and enhancing tax policies (especially VAT) are essential for supporting small farmers.

Public Expenditure

• Sustainability: Public expenditure must shift towards supporting private sector growth and its ability to pay. This includes improving advisory services, applied research, and extension.
• Infrastructure Investment: Rural infrastructure such as roads, water supply, telecommunications, and electricity must be developed.
• Fiscal Decentralization: Local governments need to receive an adequate share of local taxes to support rural development.

Strategic Framework

• Focus on Peasant Farms: The agricultural strategy should prioritize supporting peasant farms for continuous productivity growth in a conducive marketing environment.
• Private Sector Integration: Encouraging private sector involvement in service delivery, technology transfer, and market development is crucial.
• Donor Coordination: Donor support should be coordinated to ensure that public agricultural expenditure becomes more sustainable.

Future Directions

• Program Lending: A shift towards program lending is recommended to provide a consistent framework for donor activities and government coordination.
• Fiscal Space: Increasing fiscal space through user fees and tax reforms is necessary to support public investment in agriculture and rural development.
• Legal and Institutional Reforms: Legal frameworks, including the new Water Code, should be passed to enable cost recovery and support the transfer of management responsibilities to the private sector.

Recommendations

• Policy Side:
  • Reform input market regulations to allow private traders and producers.
  • Improve tax policies to reduce disincentives for market entry and investment.
  • Reduce administrative barriers to encourage private sector activity.
• Public Expenditure Side:
  • Strengthen essential public services like animal health and plant protection.
  • Improve human capacity and institutional reorganization.
  • Establish a new fee schedule for irrigation and increase user fees.
  • Accelerate the establishment of Water User Associations and transfer management responsibilities to them.

Further Work Required

• Analytical Activities: Further analysis is needed on the costs and benefits of public support for marketing and technology transfer.
• Infrastructure Needs: Assess local government and community capacity for planning, financing, and maintaining rural infrastructure.
• Technical Input: Focus on restructuring farm debt, land degradation, agricultural machinery, and external trade barriers.

Conclusion

Sustaining pro-poor rural growth requires a strategic shift in agricultural policy and public expenditure. The focus should be on supporting peasant farms, improving market access, and enhancing rural infrastructure. Donor coordination and legal reforms are essential to achieve these goals.