The participants explored how citizens can participate in the budgetary process, plan the local development of economy, space and society, and monitor services based on the experiences from several countries, such as Switzerland, Kazakhstan, Uzbekistan, Latvia, the Netherlands, the Russian Federation, Turkey, Mongolia and the Kyrgyz Republic. The participants learned about the Online Civic Budget experience during the pandemic in Kyrgyzstan and how local services are provided with the support of NGOs of Kyrgyzstan. Lessons from Russia, Mongolia, Switzerland, and Kazakhstan were also discussed. All conference materials and best practice examples will be posted at the Best Practice Portal.

The international conference was held in the framework of the “Strengthening Voice and Accountability” project financed by the Swiss Government and implemented by the Development Policy Institute. The project has contributed to improved access of citizens to local decision-making. Since 2015, over 100’000 participated in budgetary hearings and over 700’000 benefitted from the improvements in local service provision and social infrastructure, such as pre-school and school facilities, better drinking water provision and solid waste management, installed or rehabilitated street lightening, improved or diversified services in the area of recreation, sports and culture.

“In today's world, success of a territory is determined not so much by available resources as by the ability and skills to apply new management tools and benefit from creative engagement of the population. An important factor in the success of local self-government is meaningful and effective interaction with citizens, providing them with opportunities to make a difference and improve life in their community by contributing to local development”, says Bekbolot Bekiev, the project manager.

Olivier Bangerter, Ambassador of Switzerland to the Kyrgyz Republic, says: “In Switzerland many concerns of citizens are addressed and solved at the local level. This works well because it is the fastest way to identify an issue and solve it. Local governance is a key element of Switzerland’s development, including of the economy.”

The conference was co-hosted by the State Agency on Civil Service and Local Self-Government of the Kyrgyz Republic under the Cabinet of Ministers of the Kyrgyz Republic, the Union of Local Self-Governments of the Kyrgyz Republic, the “Development Policy Institute” and the Academy of Local Governance of Central Asia.

Read more about the project results at the webpages of the implementing partner and of the Swiss project. 

IFC, a member of the World Bank Group, supported the home improvements through a 10-year-long partnership with Kyrgyz microfinance organizations. IFC helped the institutions develop an innovative lending product that combined a traditional micro-housing loan with construction-related support, including do-it-yourself home improvement videos, cost estimates for select home improvements, and discounts for quality construction materials. 

The initiative, called the Housing Microfinance Project in the Kyrgyz Republic, helped channel $44.1 million of private funds to 41,505 families, allowing them to construct new homes or renovate existing ones. An additional $15.7 million was channeled to 15,434 families, helping them improve the energy efficiency of their houses, saving them a combined $7.5 million in heating costs. Those 57,000 households were home to 192,000 people.

The project was implemented in partnership with the Swiss Government.

“Improvement of the population’s well-being is what the Swiss development program aspires to achieve in the Kyrgyz Republic,” said Dr. Olivier Bangerter, Swiss Ambassador to the Kyrgyz Republic. “The housing microfinance project directly contributed to this aim as it reached low-income earners and helped them to fulfil their need of housing.”

Many low-income households struggle to secure loans in the Kyrgyz Republic, where banks are often hesitant to lend to people without substantial collateral. World Bank Group data shows that just 18 percent of people in the Kyrgyz Republic have access to credit while only a handful of lenders provide home improvement loans.

“Housing projects like this can deliver multiple benefits, such as encouraging home ownership, lifting consumption and investment, and, ultimately, helping drive economic growth and development,” said Cassandra Colbert, IFC's Senior Manager for Central Asia. “IFC’s collaboration with local financial institutions to promote housing micro-loans helped thousands of families build new homes or renovate existing ones while also bringing them security and a sense of ownership.”

The initiative is part of a broader IFC efforts to support private sector development in the Kyrgyz Republic and improve access to finance for low-income people.