Building Self-Reliance in Kyrgyzstan

This paper presents the case of Ak-Jar village in Kyrgyzstan to illustrate the manner in which microcredit has helped the poor in the country. Ak-Jar village was prosperous in the communist rule, but after Kyrgyzstan broke away from the USSR, the economic condition of the people declined. UNDP has intervened at the request of the government to assist isolated communities that felt abandoned and did not know how to rebuild themselves.

Some of the chief characteristics of the Participatory Poverty Alleviation Program of UNDP are:

• Partnership with the World Bank supported Kyrgyz Agricultural Finance Corporation (AFC) of UNDP;
• Identification of priority areas for assistance;
• Introduction of microcredit programs in these areas using group principles;
• Widening and deepening of the micro credit program as it matures.

As a result of the association of UNDP, the Ak-Jar village has become more prosperous. The microcredit program has flourished with repayment rates of 100%, and this has encouraged the AFC to set up a bank in Ak-Jar.