The study focuses on the high levels ofpoverty in the Kyrgyz Republic, where the trend has been oneof increasing poverty in the last decade. The first chapterreviews the economic situation, based on data sources,particularly the household level data, collected by theNational Statistical Committee, which measure not only thelevels, and depth of poverty, but identifies thedeterminants of poverty, and other social outcomes andindicators as well. Economic growth dropped in the early1990s, rose in 1996-97, and then fell in the wake of theRussian financial crisis, with significant lower resourcesavailable to the government. Furthermore, governmentspending as a share of GDP maybe at unsustainable levels,and may need to be reduced; this creates the dilemma that,as poverty increases, the government has fewer resources toprovide assistance, and services. Chapter II presents anoverview of poverty, indicating extreme poverty affectedtwenty three percent of the population, with a significantshortfall in consumption. Chapters III and IV explore thelivelihoods of the poor, and issues affecting them, focusedon the lower levels in labor force participation by thepoor, the hidden differences in unemployment among thewelfare groups, and, limited employment opportunities.Dissatisfaction concerning utilities, education, and healthis prevalent, where the poor pay a disproportionately highshare of total income (consumption) for services.Conclusions, and recommendations are presented in Chapter V,emphasizing on public spending policies targeting poverty,through social assistance programs, all of which willrequire sectoral reform, and rationalization of services.
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