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Since its independence in 1991, the Kyrgyz Republic has taken steps to liberalize its economy and adopt political reforms with the aim of promoting sustained economic growth. The Kyrgyz Republic was one of the first former Soviet republics to implement economic reforms and to move toward a market-based economy. The multiple economic and political reforms that have been implemented, together with regional and global trends, have dramatically changed the structure of the economy in the Kyrgyz Republic. Immediately after the fall of the Soviet Union, the lack of jobs caused workers to shift toward employment in the agricultural sector. This report employs a simple framework to analyze the main constraints to jobs outcomes in the Kyrgyz Republic. There are three main categories of constraints, in order of their impact are: (i) labor demand constraints, (ii) labor supply constraints, and (iii) labor matching constraints. These constraints limit job creation, job productivity, job quality, and job inclusiveness. The Kyrgyz Republic has a large informal sector which means that policymakers need to understand the constraints to productivity growth in the informal as well as the formal sector. The framework adopted here does not distinguish between formal and informal sectors. The framework is fleshed out in more detail in Chapter III, but the introduction provides a brief outline to help structure the report
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