UN and EU facilitate integrated national framework for financing national sustainable development priorities and the SDGs in Kyrgyzstan

December 16, 2022


13 December 2022 / Bishkek, Kyrgyzstan – Today, President’s Administration of the Kyrgyz Republic together with UNDP and UNICEF hosted the first meeting of the Integrated National Financing Framework (INFF) aimed to engage policymakers and development partners on some of the most pressing socio-economic challenges prioritized in the National Development Strategy  and in pursuing Sustainable Development Goals (SDGs).

INFF is a platform that helps countries strengthen planning processes and overcome existing barriers to financing sustainable development and achieving the SDGs at the country level. In 2019, 16 countries committed to pioneering INFFs to finance their national SDG efforts. The COVID-19 pandemic and its economic fallout have further heightened interest in INFFs, with several countries adopting them in support of their recovery plans. Now, governments in around 70 countries, including Kyrgyzstan, are following suit.

“Kyrgyzstan has launched its INFF process in 2020 to align policies and financing with the SDGs. With this initiative we want to ensure a more efficient, transparent, and results-oriented use of public financial resources, as well as a more coordinated and integrated use of private financing for funding national development priorities. The INFF process is particularly valuable considering the back-to-back crises that have arisen due to the recent global shocks as COVID-19 and the conflict in Ukraine.” – said Bakyt Sydykov, the Head of the Department for SDGs and Donor Coordination under the President's Office of the Kyrgyz Republic.

To support Kyrgyzstan in mobilizing greater amounts of private and public resources to finance its development agenda, the international community led by the United Nations and supported by the European Union has responded by combining and aligning resources and tools in support of the country’s national efforts, including through methodological guidance and targeted technical assistance. The proposed INFF will help the Government explore innovative financing instruments that may link government with private sector and development partners to utilize integrated mechanisms in financing the NDS/SDGs.

“Mobilizing and channeling resources in the increasingly complex financing landscapes presents significant challenges for many countries. Governments are called to manage many diverse resource streams in a way that maximizes impact for unprecedented adversities including the pandemic, inequality, and climate change. A comprehensive response to these disturbances requires a more strategic and holistic approach. A call from countries was made clear under the Addis Ababa Action Agenda of the Third International Conference on Financing for Development, to formulate Integrated National Financing Frameworks. With the support from United Nations and European Union, increasing number of countries are applying the INFF and we are pleased to see Kyrgyzstan joining the ranks” – said Louise Chamberlain, UNDP Resident Representative in the Kyrgyz Republic.

To kick off the INFF process, a Development Finance Assessment (DFA) is being conducted, providing an up-to-date overview of the current financing landscape. Furthermore, in 2022, Kyrgyzstan adopted a new Tax Code, which aligns the tax incentives with the country's development priorities. The Code has a requirement to regularly evaluate the efficiency of tax incentives, which will allow the authorities to regularly evaluate the effectiveness of each tax incentive and make appropriate and timely decisions on their relevance to the country’s development priorities. This, in turn, will allow the Government to generate more revenue to finance the priorities of the National Development Strategy and introduce tax incentives that could attract and nurture private investment for the country's sustainable development priorities.

“The tax incentives aligned with the country’s development priorities, remittances channeled to local development, and official development assistance can be a key factor in the development of the Kyrgyz economy as well as in many developing countries. INFF helps Kyrgyzstan incorporate financing into national planning processes and get the right people in the room to make decisions and coordinate action to increase investment, boost impact, manage risk, and align finance with development that is equitable, inclusive, and sustainable. » - said Peter Middlebrook, UNDP expert.