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Social Protection System Review of Kyrgyzstan

image of Social Protection System Review of Kyrgyzstan

Social protection is at the heart of Kyrgyzstan’s development and is a priority of public policy. Pension coverage among today’s elderly is universal and a large number of contributory and non-contributory programmes are in place to cover a wide range of risks. Kyrgyzstan has succeeded in maintaining the entitlements dating from the Soviet era while introducing programmes appropriate for its transition to a market economy. However, severe fiscal constraints have limited the coverage of these new arrangements and their capacity to adapt to challenges such as poverty, pervasive informality and emigration.

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A forward-looking assessment of social protection needs

OECD Development Centre

Following the shock of the collapse of the Soviet Union and the disruption caused by the rapid transition to a market economy, Kyrgyzstan is enjoying a period of economic and political stability. However, the decline in income poverty has slowed over the past decade and certain measures of broader deprivation are alarmingly high, reflecting the challenge of improving services in a context of severe fiscal constraints. Tight labour market conditions are resulting in high levels of international migration, which is a boon for the Kyrgyz economy but socially disruptive. Major long-term threats related to demographics and climate change are on the horizon.

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