secondary data review on the food security situation in the kyrgyz ...

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Since 2005, the State sector has seen rapid wage growth. However, in 2007-08, raisingconsumer price inflation has led to higher wage demands elsewhere, with nominal wagegrowth reaching 36% in June 2008. Recorded wages remain low, but many supplementtheir incomes with remittances sent from relatives working abroad, and with incomes earnedin the large shadow economy.Year January May December2,5572,8084,4042006(US$62) (US$69) (US$114)Average gross monthly wage3,1453,7695,6572007(Som/US$)(US$82) (US$99) (US$162)4,3355,146 482008-(US$121) (US$141)Kyrgyzstan Country Report August 2008 - The Economist Intelligence UnitExamples of monthly salariesActivityAverage monthly salaryDoctor (2004)1126 Som/month (US$31)Teacher, highly qualified, high workload compared to 1380 Som/month (~US$38)standards (2004)Young graduate of higher educational institutions 400-500 Som/month (~US$11-14)Child mentor in orphanage or boarding school (2004) 800 Som/month (~US$22)Forester (2005)600-800 Som/month (~US$15-22)Public Expenditure Review on Social Sector in the Kyrgyz Republic – UNICEF, 2006Ensuring Sustainable of Forests and Livelihoods through Improved Governance and Control of IllegalLogging for Economies in Transition - Working document, Kyrgyz Republic for the World Bank, 2005Migrants and remittances Rural areas, because of low income levels and lack of diverse job opportunities, are themajor source of internal and external migrants in the Kyrgyz Republic. Internal migration seems to have reached a peak in 1994-98, with some 100,000 migrantsper year, but fell between 1999 and 2003, with some 50,000 people (1% of the population),changing their place of residence each year 49 . Only Bishkek city and the Chui oblast in thenorth saw in-migration, and all other oblasts had negative balances. This shows cleardirection of labour from mostly rural peripherals into economically developed capital city andrelatively land abundant Chui oblast. These are <strong>data</strong> based on administrative records, and the number of internal migrants islikely to be considerably higher. New established settlements around capital city (‘novostroiki’) are mainly occupied withinternal migrants with most of the residents not being registered. As of 2007, there were 26such settlements around Bishkek, with an estimated 200,000 people, but the real number ishigher due to lack of residence permission for a large portion of residents. Internal migration is putting pressure on urban labour markets. It increases demand forpublic services, puts pressure on housing prices, and creates tensions in urban labourmarkets. With regard to external migration, since 2000, remittances played a significant role inraising welfare and reducing poverty both directly and indirectly. Yet, these remittances aremostly used to increase private consumption and the construction of housing rather thaninvestment in the economy. The increase in money from abroad led to an expansion in thedemand for services locally and an increase in imports.48 At an exchange rate of 36.4 Som for 1 US$49 Kyrgyz Republic Poverty Assessment. Volume 1: Growth, Employment and Poverty - World BankReport No.40864, September 200725
Many young Kyrgyz workers find it more lucrative to work abroad in menial jobs than to takelow-paid employment at home – for which they often lack sufficient qualifications in anycase. Estimates of the number of Kyrgyz labour migrants working abroad vary widely. Someput it at 1 million 50 , while others mentioned about half this number 51 . The majority of themigrants are from the rural south, including Osh, Jalal-Abad and Batken oblasts. Migration significantly mitigates the problem of unemployment inside the country and servesas an important source of foreign exchange inflow. However, the majority of migrants whowork in Russia and Kazakhstan have neither proper registration nor employment permits,which makes them legally and socially very vulnerable (no legal protection and access tobasic social services). Also, inefficient and costly channels for remittances decrease their economic value,especially in poor and rural areas for which they represent a crucial source of income. The poverty profiling exercise conducted in 2003 indicated that private transfers tended tobe more important among poor households. However (as in the case with pensions), theaverage size of the transfers received by the richest quintile was almost twice higher thanthat of the poorest quintile 52 . Early 2007, the Asian Development Bank (ADB) undertook a regional study on remittancesand poverty which covered Armenia, Kyrgyzstan and Tajikistan. In Kyrgyzstan, about4,200 households were randomly selected throughout the country and in Bishkek city.Results 53 showed that:ooooooAbout 20% of households had at least 1 migrant member. Of these, 72% had just onemigrant (15% of all households) and 20% had 2 migrants. Households with more than1 migrant were mostly found in other urban areas and rural areas, than in the capital.About 79% of the migrants did send back remittances, hence some 16% ofhouseholds received remittances from migrants abroad.Average remittances per household amounted to US$1,400 per year in cash,representing about half of the recipient household’s total income. The equivalentof almost US$300 was sent in-kind.Some 44% of the remittance beneficiaries indicated that the level of remittancesreceived in 2006 was the same as in 2005 and 44% said that it increased. About 32%confirmed an increase in the share of remittances in their total income.Almost 78% of migrants used bank or money transfer office services to send theirremittances. However, the balance of migrants used other transfer channels includingdelivery by the migrants themselves as well as by relatives, friends and other privateindividuals. The amount of funds transferred through these informal channelsrepresented 22% of the total volume of remittances. Households in the poorestquintile were less likely to use banks and money transfer offices (68%).An earlier survey conducted in 2005 54 had found a much lower proportion of migrantsusing banks or money transfer offices (34%) and a larger proportion delivering theremittances directly (61%). The reasons for rapid changes of procedures are not clearand may also be due to different survey procedures.50 Kyrgyzstan Country Report August 2008 – The Economist Intelligence Unit51 Kyrgyzstan at a New Stage of Development – UNDP and Government of the Kyrgyz Republic,Bishkek, 200552 Kyrgyz Republic Poverty Update. Profile of Living Standards in 2003 – World Bank Report No.36602,August 200553 A Study on International Migrants’ Remittances in Central Asia and South Caucasus. Country Reporton Remittances of International Migrants and Poverty in the Kyrgyz Republic – Draft for discussion atthe Country Seminar in Bishkek, November 2007 – S. Ibragimova, T. Burzhubaev, A. Temirov, Centerfor Social and Economic Research (SocEconic), November 2007.54 Study conducted by the “Bishkek Consensus” Institute of Economic Policy, 200526
Page 1 and 2: SECONDARY DATA REVIEW ON THE FOOD S
Page 3 and 4: Food consumption, nutritional statu
Page 5 and 6: II - Demography and societyDemograp
Page 7 and 8: The country has gone through a diff
Page 9 and 10: for services and 47% for industry).
Page 11 and 12: The national food balance situation
Page 13 and 14: Livestock The livestock sector suff
Page 15 and 16: Energy policies do not seem to cont
Page 17 and 18: For the 2007/08 agricultural campai
Page 19 and 20: VI - Economic situation and poverty
Page 21 and 22: of its TACIS programme), UNDP, Isla
Page 23 and 24: 4% to 5% were noted. Extreme povert
Page 25 and 26: the poor were twice higher than of
Page 27: Unemployment rose to 8% in 2005. Ho
Page 31 and 32: oRemittances contribute significant
Page 33 and 34: largest among the poor irrespective
Page 35 and 36: destination of products purchased i
Page 37 and 38: ooochildren under 16 years (and pup
Page 39 and 40: Nonetheless, the UMB programme rema
Page 41 and 42: The main difference between them ma
Page 43 and 44: At national level, per capita calor
Page 45 and 46: o19% of the population are both poo
Page 47 and 48: There is also a need to set up a re
Page 49 and 50: Initiation (anybreastfeeding)Exclus
Page 51 and 52: health insurance (in 2006) has enab
Page 53 and 54: low in Jalal-Abad, Naryn and Talas
Page 55 and 56: A continuing surge in consumer pric
Page 57 and 58: Overall producer price inflation wa
Page 59 and 60: However, faced with the risk of foo
Page 61 and 62: oofinancing a topping up of unit be
Page 63 and 64: Fuel imports could be reduced by mo

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