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IFC, Kyrgyz Republic Make Inspections More Effective, Helping Small Businesses

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 key reforms.
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 changes.
“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.
About IFC
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 .
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