Bishkek, Kyrgyz Republic, July 26, 2014—IFC,
a member of the World Bank Group, is advising the Kyrgyz government to
help improve business inspections in an effort to reduce compliance costs
and stimulate the growth of small and medium enterprises.
IFC today signed an agreement with the Kyrgyz State Inspectorate for Economic
and Technical Safety to help implement previously adopted business inspections
reforms. Joint efforts should close a gap between the government’s ability
to craft new legislation and its ability to fully and consistently implement
IFC’s recent study of the quality of regulatory interactions included
specific recommendations on improving the implementation of new regulations.
It showed that many businesses report consistent problems even after laws
are adopted, continuing to endure unpredictable interpretation by government
officials and a lack of transparency about policy, legal and regulatory
“IFC is our key counterpart in streamlining business inspections in order
to reduce inspection coverage by the Inspectorate and lower the burden
of inspections on businesses,” said Daurbek Sakyev, Head of Department
of the State Inspectorate for Economic and Technical Security. “There
are still challenges ahead, and we rely on IFC assistance during the next
stage of implementation of the reforms, which could make a significant
difference for the private sector.”
Serhiy Osavoluk, IFC Project Manager, said: “IFC has helped the government
to reform legislation governing business inspections. However, regulatory
and institutional obstacles still hinder businesses from growth and one
of the main remaining issues is the poor implementation of reforms. By
continuing to work with the Inspectorate, we will help to close the existing
gap between the de-jure and de-facto implementation of reforms”.
IFC has been working with the Kyrgyz government since 2008 to establish
transparent and effective business regulations, and create a favorable
environment for entrepreneurs. In 2011, IFC helped adopt new legislation
on inspections introducing a risk-based approach.
The initiative is part of IFC’s effort to improve the investment climate
in the region by facilitating investments and reducing compliance costs
for businesses. The Central Asia Investment Climate Program is made possible
with financial support from the government of Switzerland and the United
Kingdom’s Department for International Development.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in more than 100 countries, we use our capital, expertise,
and influence to help eliminate extreme poverty and promote shared prosperity.
In FY13, our investments climbed to an all-time high of nearly $25 billion,
leveraging the power of the private sector to create jobs and tackle the
world’s most pressing development challenges. For more information, visit
To learn more about Swiss Assistance, visit www.swiss-cooperation.admin.ch/centralasia.
To learn more about the UK’s Department for International Development,