2011年-世界发展银行全球_Kyrgyz_Republic___Agricultural_Policy_Update_Volume1_Overview_27页_836kb

Kyrgyz Republic Agricultural Policy Update Summary

Overview

This document provides an analysis of Kyrgyzstan's agricultural policy and investment framework from 2003 to 2010. It outlines the sector's performance, identifies key challenges, and proposes future priorities for sustainable development. The report emphasizes the need to refocus on completing foundational reforms and investments that supported early agricultural successes, while addressing new challenges like political instability and fiscal constraints.

Core Content

• Agricultural Reforms and Performance: Kyrgyzstan was considered one of the most advanced countries in Central Asia in terms of agricultural reform. The sector saw rapid expansion between 1996 and 1999, followed by moderate growth until 2005. However, growth has been low and erratic since the 2005 crisis, especially in response to the 2008 food price crisis.

• Sector Growth and Constraints: Despite modest growth, the agricultural sector has faced challenges such as low productivity, inadequate investment in infrastructure, limited use of certified seeds and fertilizers, weak marketing systems, and poor business environments for agroprocessing. These factors have constrained productivity and competitiveness.

• Food Security Policy: The government shifted towards a more interventionist approach post-2008, focusing on food self-sufficiency and market stabilization. However, this policy is criticized for not addressing the root causes of food insecurity, which stem from low rural incomes rather than food availability.

• Public Investment and Expenditure Trends: Real public expenditure on agriculture declined by about one fifth between 2003 and 2009, in line with the sector's declining contribution to GDP. Recurrent spending was mainly directed towards irrigation and animal health, while investment spending shifted towards market interventions, which are deemed ineffective and poorly prioritized.

• Land Market and Privatization: Land privatization is largely complete, and the land market is now efficient. However, restrictions on land ownership and use, such as the requirement to exchange land shares within the same aiyl okmotu, limit the market's potential and the use of land as collateral.

• Agricultural Finance: Credit to agriculture has increased, particularly from Aiyl Bank and Microfinance Organizations (MFOs). The sector is concentrated in livestock, but lending is slowly diversifying. MFOs have shown strong performance with low default rates, indicating their potential for further growth.

• Irrigation and Water Management: The irrigation system serves 80% of the total cultivated area. Water Users Associations (WUAs) manage on-farm systems, while the State Committee for Water Resources and Land Improvement (SCWRLI) oversees off-farm systems. WUA development has improved, with increasing user contributions and the formation of Water Councils and Federations.

• Institutional Reforms and Governance: The report highlights the need for institutional reforms, including the establishment of a State Water Authority (SWA) to separate water regulation and delivery functions. SCWRLI should focus on irrigation delivery, while WUAs and their federations should manage off-farm systems with appropriate support and funding.

Main Views and Key Information

Strategic Objectives

• The government's strategic objectives for agriculture have focused on food provision, market stability, competitiveness and trade, and environmental preservation.
• A more comprehensive approach is needed, emphasizing rural income growth, protection of vulnerable consumers, and long-term food security.

Sector Performance

• Agricultural GDP growth was low and erratic, averaging 2.27% per annum between 2003 and 2010.
• Despite low growth, rural poverty declined sharply due to labor migration and increased non-farm employment.
• Regional disparities in food insecurity persist, with high-altitude areas remaining more vulnerable.

Public Expenditure

• Recurrent expenditure on agriculture remained largely constant, with irrigation and animal health being the primary areas.
• Investment spending shifted towards market interventions post-2008, which are seen as ineffective and poorly targeted.
• The Public Investment Program (PIP) for agriculture has declined, especially in irrigation and drainage rehabilitation.

Food Security Policy

• The 2008 Food Security Law introduced intervention measures, including price ceilings and the establishment of the Food Security Council.
• The report argues that these measures are unaffordable and ineffective, and that food security should focus on improving rural incomes and access to resources rather than price control.

Land Market

• Land privatization is largely complete, with an efficient land registry and active lease market.
• The Land Reallocation Fund (LRF) aims to support land access for vulnerable groups but its effectiveness and transparency require further review.

Agricultural Finance

• Aiyl Bank and MFOs have increased lending to agriculture, with a high concentration in livestock.
• The report recommends promoting competition, reducing interest rate controls, and improving transparency in financial institutions.

Irrigation and Drainage

• The irrigation system covers 80% of cultivated land, managed by WUAs for on-farm systems and SCWRLI for off-farm systems.
• WUA development has improved, with increasing user contributions and institutional capacity.
• The report suggests transferring off-farm management to WUAs and WUA Federations to reduce public expenditure burden.

Future Priorities

• Completing Fundamental Reforms: Focus on land market development, rural finance market strengthening, irrigation rehabilitation, and private sector involvement in seeds and machinery.
• Improving Institutional Efficiency: Establish a State Water Authority (SWA) to separate water regulation and delivery, and provide sufficient funding for WUA Support Units.
• Enhancing Rural Advisory Services and Research: Encourage public-private partnerships to improve advisory services and research.
• Promoting Agroprocessing and Investment: Improve the business environment for private investment in agroprocessing.
• Strengthening Fiscal Discipline: Address the budget deficit by better prioritizing public spending on essential services and infrastructure.
• Enhancing Food Safety and Quality: Improve food safety and quality to increase competitiveness in regional markets and reduce reliance on imports.

Conclusion

The report concludes that Kyrgyzstan's agricultural sector needs to refocus on foundational reforms and investments that have historically supported growth and development. It emphasizes the importance of market-oriented policies, improved governance, and fiscal discipline to achieve long-term stability and food security.