Client: Foreign, Commonwealth & Development Office
Duration: 2019-2023
Region: Eastern Europe and Central Asia
Country: Kyrgyzstan, Tajikistan
Solutions: Economic Growth
Kyrgyzstan and Tajikistan have a relatively short history of “restrained capitalism” and budding entrepreneurial culture. Shadows of the former Communist system are still evident in many areas, and frail rule of law gives way to corruption and weak property rights, undermining private sector investment and business growth. As of 2018, 27 percent of Kyrgyzstan’s population and 30 percent of Tajikistan’s population still live below the national poverty line. Both countries’ economies have been adversely affected by internal and external shocks, including the economic downturn in Russia. Excessive reliance on remittances, lack of economic diversity, and the slow pace of reform threaten growth. It is in the United Kingdom’s interests that these fragile states and regions are supported to be successful, prosperous, and stable.
The Enterprise and Innovation Programme (EIP) supports inclusive and sustainable economic growth in the countries, principally through the creation of business and innovation centers, the strengthening of company-investor linkages, the provision of market-making activities, and the improvement of the business advisory infrastructure. EIP is the UK Government’s new instrument to promote a stronger, diversified, and inclusive private sector, leading to prosperity and stability in Tajikistan and Kyrgyzstan by increasing innovation and growth in startups and micro-, small-, and medium-sized companies (MSMEs) through the establishment of business and innovation centers and the improvement of the business advisory infrastructure.
By focusing on supporting inclusive and sustainable economic growth in Kyrgyzstan and Tajikistan, EIP works in key business sectors that have the potential to be transformative to the countries’ economies and are well-positioned to generate new jobs, increase household incomes, or create new economic opportunities for the poor and near-poor, women and youth, and disadvantaged communities. Working in tandem with its sister program, the DAI-implemented Policy Innovation Facility, EIP brings about positive and impactful improvements in the ways the business sector operates at present, and will expand the horizons of economic opportunity, by being pro-poor, conducive to women’s and minorities’ economic empowerment, politically aware, and sensitive to the country context, conflict, and business environment.
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