Transitioning to Better Jobs in the Kyrgyz Republic

Abstract

This report takes an in-depth look at
 the development of jobs in the Kyrgyz Republic over the past
 decade to understand why the country has not realized better
 job outcomes. Drawing on evidence at the macro, household,
 and firm level, it examines key shortcomings in the current
 migration-led, remittance-driven development model that have
 weakened the country’s ability to create sufficient and
 high-quality employment opportunities and are likely to
 result in deteriorating job outcomes in the future. The
 report argues that several broad transformations will be
 needed to develop engines of growth in the Kyrgyz Republic
 outside remittances and shift to a better jobs path. The
 distortions and obstacles that currently prevent the
 expansion of private sector employment need to be unraveled;
 macroeconomic, regulatory, and logistical impediments to
 greater, more diversified export orientation need to be
 strategically addressed; the compensation of public
 employees must be reformed to reduce the level of corruption
 that discourages business growth; and the migration
 phenomenon, which will be a part of the employment mosaic
 for at least another decade, must be made to contribute to
 domestic employment creation and the country’s development.