Capacity Building for Economic Management Grant

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The Capacity Building for Economic Management Grant Project development objective is to establish and institutionalize a sound framework and capacity for economic policy making and implementation in the Kyrgyz Republic. The most important project objectives are: a) contribute to government-wide coherent macro-economic policy development and decision making through establishing strong inter-ministerial coordination and interface; b) support process of economic policy development and implementation through enabling public institutions (and particularly the Ministry of Economic Development and Trade (MEDT), through capacity building and restructuring) to formulate sound and analytically informed policy measure and proposals; and c) support reform of employment practices and wages in the civil service by building the capacity in a special task force in this area. There are four components to the project. The first component of the project is institutional and technical framework for government-wide macroeconomic policy development and co-ordination. This component will have a Government-wide focus on establishing effective inter-agency co-operation in the development and implementation of economic policy. In addition, the consultants will provide on the job training to a seconded secretariat of senior officials who will provide technical support to a formal cabinet level coordination mechanism to strengthen the Council for Macroeconomic policy. The second component of the project is strengthening the capacity for economic management, analysis and policy development in key Government entities responsible for economic policy making and implementation. This component will focus on developing capacity within MEDT, and selectively in the ministry of finance (MoF) so that they are better able to support the government and other line ministries in the formulation and implementation of both macroeconomic and structural economic policies including particularly those to improve the business environment. The third component of the project is development of capacity to carry out a pay and grading reform in the civil service. This component will focuses on a key issue impacting on all areas of development in the Kyrgyz Republic the need for pay and grading reform within the civil service. It will follow up on the technical note on civil service wage reform developed under the programmatic public expenditure review (PPER). The fourth component of the project is project management and coordination. This component will finance two local senior policy advisors (one on macro fiscal issues and the other on growth, business environment issues and institutional issues) reporting to a steering committee of the principal agencies involved in the project to provide substantive guidance (under component first) as well as to undertake the necessary project management of the project.