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Kyrgyz Republic

Lessons from Five Years of Helping Governments Foster Incentives Transparency

Harald Jedlicka's picture

Global competition to attract foreign and domestic direct investment is so high that nearly all countries offer incentives (such as tax holidays, customs duty exemptions and subsidized loans) to lure in investors. In the European Union, the 28 member states spent 93.5 billion euros on non-crisis State Aid to businesses in 2014. In the United States, local governments provided and average of US$80.4 billion in incentives each year from 2007 to 2012.

In order to better understand the prevalence of incentives worldwide, the Investment Climate team in the Trade & Competitiveness Global Practice of the World Bank Group reviewed the incentives policy of 137 countries. Results showed that all of the countries that were surveyed provide incentives, either as tax or customs-duty exemptions or in other forms. Table 1 (below) shows the rate at which these instruments are used across advanced and emerging economies. For instance, tax holidays are least common in OECD countries and are most prevalent in developing economies. In some regions they are the most-used incentive.[1]





However, despite offering incentives, few countries meet all the requirements of a fully transparent incentives policy. These include: mandating by law, and maintaining in practice, a database and inventory of incentives available to investors; listing in the inventory all aspects of key relevance to stakeholders (such as the specific incentive provided, the eligibility criteria, the awarding and administration process, the legal reference and the awarded amounts); making the inventory publicly available in a user-friendly format; requiring by law the publication of all formal references of incentives; and making the incentives easily accessible to stakeholders in practice. A T&C study now under way on incentives transparency in the Middle East and North Africa (MENA) region showed that none of the eight countries analyzed has a fully transparent incentives policy. (See Graph 1, below.)




People’s living standards – do numbers tell the whole story?

Giorgia DeMarchi's picture
Numbers don’t lie. That’s why, in our day-to-day lives, we rely heavily on numbers from household surveys, from national accounts, and from other traditional sources to describe the world around us: to calculate, to compare, to measure, to understand economic and social trends in the countries where we work.

But do we perhaps rely too much on numbers to gain an understanding of people’s lives and the societies in which they live? Do numbers really tell us the whole story, or give us the full picture?


 

Are we listening to our ancestors’ warnings?

Ko Takeuchi's picture
Also available in: Russian
Photo via Wikimedia Commons
The “miracle pine,” a 250-year-old tree that survived the 2011 tsunami in Japan, has been preserved as a memorial to the 19,000 victims of the disaster. (Photo via Wikimedia Commons)

In disaster risk management, we often pay close attention to the latest technological boosts to better understand risks and help communities prepare for the next disaster. While such efforts are commendable, I noticed that insightful messages from our ancestors can also help us better anticipate tomorrow’s disaster risks.

Such messages teach us how to keep hazards away from people (reducing existing risks) as well as how to keep people away from hazards (avoid creating new risks). On my latest trip to Japan, we hosted government officials from Armenia, Kyrgyz Republic, and Tajikistan as part of an experts’ visit focusing on disaster risk management, acting on Japan’s rich culture of passing on such decisive messages to future generations.

Powering up Central and South Asia

Annette Dixon's picture
Can One Country's Electricity Surplus Be Another Country's Gain?

The opening ceremonies in Dushanbe, Tajikistan starting Wednesday for construction works on the CASA-1000 project mark an important milestone. The project could bring a trade in sustainable electricity between Central and South Asia; address energy shortages in Afghanistan and Pakistan; and will provide financing for new investments and improve winter energy supplies for Central Asian countries.

This ambitious project, costing $1.17 billion, is based on a simple idea.

Oil price impact is felt beyond borders

Donna Barne's picture

Oil pumps in southern Russia © Gennadiy Kolodkin/World Bank

Two recently released World Bank reports — one on commodities and the other on remittances — lend insight into an unfolding dynamic in the world today. As oil prices dropped from more than $100 per barrel in June 2014 to as low as $27 in the last few months, the money sent home from people working abroad in oil-producing countries also fell. This drop is a major reason remittances to developing countries declined in 2015 to their lowest growth rate since the 2008-2009 financial crisis.

Remnants of the Soviet past: Restrictions on women's employment in the Commonwealth of Independent States

Alena Sakhonchik's picture


My father is a long-distance trucker based in Belarus. As a young girl, I spent long hours on the road with him. I loved traveling to neighboring and faraway cities and—even though I could barely reach the pedals at the time—dreamed of becoming a truck driver myself one day. Life ended up taking me on another path, but it wasn’t until I was older that I learned that the option of being a truck driver was never open to me to begin with.

Why?

Because my native country prohibits women from being truck drivers, one of the 182 professions out of bounds for women.

Implementing stronger and more credible student assessment systems

Alan Ruby's picture
Students in a READ-financed Mozambique program take their exams. Photo by Jem Heinzel Nelson

Ed: This guest post is by Alan Ruby, senior scholar at the University of Pennsylvania’s Alliance for Higher Education and Democracy who also serves as a consultant to the World Bank, an adviser to  the Nazarbayev University in Kazakhstan, the Head Foundation in Singapore, and the American Institutes of Research. 

Nearly 50 years ago, 40 classmates and I spent the last two weeks of November taking our higher school certificate examinations. In a cavernous, hot, and poorly ventilated hall, we sat in widely-spaced rows, writing essays, solving mathematics and science problems, and answering multiple-choice questions. 

Collaboration is key to food security in Central Asia

Polina Bogomolova's picture


Central Asia is a fascinating region with a diverse natural environment and a rich food culture. A visitor to the region might be surprised, therefore, to discover that access to “sufficient, safe and nutritious food” on a daily basis can be challenging for many people.

A highly agrarian region, with over 40% of the population living in rural areas, Central Asia faces a number of food security challenges – shaped by both traditional and modern food practices. While undernourishment, mostly driven by traditional diet, remains a challenge in countries such as Tajikistan and the Kyrgyz Republic, obesity and over-weight attributed to recent welfare improvements and newly-opened access to a wide variety of non-traditional foodstuffs, have already become a concern in many countries of the region.
 

"Shaken, not stirred"

Joaquin Toro's picture

Since October 29, 2015, Central Asia experienced fifteen earthquakes of moment magnitude 5.0 or greater, which on average amounts to an earthquake every 6 days.  Among these events are two notable ones that occurred on December 7th and 25th of 2015. The first earthquake was a 7.2 magnitude event in Murghob district of Tajikistan.

This was the largest earthquake in the country since the 1949 Khait earthquake and it brought widespread damage throughout the Gorno-Badakhshan Autonomous Region, Tajikistan's largest province located in the Pamir mountains. Losses consisted of 2 fatalities caused by landslides,  multiple injuries, complete or partial destruction of over 650 houses and 15 schools and kindergartens, damages to several health centers and a small hydroelectric power station, and loss of livestock. Estimates suggest that 4,000 people have been displaced and over 124,000 were affected by the earthquake, leaving many people homeless over the harsh winter period.

Working from home: a Kyrgyz jobs diagnostic

Jennifer Keller's picture
We recently undertook a Jobs Diagnostic in the Kyrgyz Republic to help the country move away from a migration-led development model. The jobs challenge in the Kyrgyz Republic extends beyond creating more jobs.  The country also needs better jobs in terms of higher productivity and wages.  Many Kyrgyz have moved abroad to find jobs. The incomes of these migrants and the remittances they sent allowed the country to pull itself out of the deep economic collapse following independence. But the country now needs policies that allow these workers to stay home.

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