Kyrgyzstan’s crackdown on civil society: Are international development banks doing enough?

If approved by the country’s parliament in its upcoming third and final hearing, both draft laws will impose firmer control on the registration and continuing presence of non-governmental organisations and media outlets. This will have implications for the ability of many Kyrgyz organisations to access financial support from international donors, otherwise unavailable locally. The proposed laws, which infringe on the rights of freedom of expression, association and assembly, also impose heavy penalties and sanctions, including prison sentences of up to five years.  

Kyrgyz journalists have also come under increasing pressure, reporting persistent persecution and reprisals, with several independent media outlets facing criminal proceedings. In a ruling last year, the Kyrgyz court ordered Radio Azattyk to cease operations. In January 2024, further legal actions were brought against local media outlets along with the arrests of several prominent journalists previously involved in anti-corruption investigations. And in February, the same court issued a ruling to liquidate Kloop Media.  

In its pursuit of further economic development, Kyrgyzstan has heavily relied on international investment for many years, receiving millions of euros in financial assistance from major European and Asian development institutions. According to recent reports, last year’s borrowings from international financial institutions rose by USD 258.5 million.  

No accountability without civil society 

Civil society is crucial for reducing the risks of implementing investment projects. Public engagement ensures transparency and builds trust among communities. The participation of civil society in monitoring these investments helps identify potential issues early on and find alternative solutions. Public engagement minimises conflicts and fosters a sense of ownership among community members. All of this contributes to the overall success and sustainability of investment projects.   

At the end of 2023, Bankwatch sent a formal letter to three major development banks active in the country – the World Bank, the European Bank for Reconstruction and Development (EBRD) and the Asian Development Bank (ADB). In a letter to the banks’ management, we raised concerns about the situation unravelling in Kyrgyzstan. We strongly advised the banks to reinforce their joint efforts in signalling to the Kyrgyz government that the proposed laws jeopardise the country’s democratic direction and future economic development. In particular, we urged local authorities to take the following steps:   

• encourage all development partners and donors to coordinate efforts to signal that the current legislative crackdown on non-governmental organisations runs counter to the spirit and principles of development assistance to the Kyrgyz Republic;
• revitalise the existing Development Partners’ Coordination Council (DPCC) by jointly developing and adopting specific proposals and recommendations for the Government of the Kyrgyz Republic, including clear conditions for their implementation;
• facilitate greater systematic engagement between international donors, partners and local civil society, such as organising multi-stakeholder platforms involving government, donors, civil society, business and other groups with the aim of encouraging open discussions and inviting feedback on government policies and decisions. 
• develop and communicate specific positions on the enactment of repressive legislation in bilateral discussions with government, sharing these positions with national civil society and publicising where possible.

Will the banks follow through on their commitments? 

In their response to our letter, the World Bank and the EBRD acknowledged that they were monitoring the situation and confirmed their commitments to democratic values. The ADB has yet to formally respond.  

Speaking at the launch of the World Bank’s new Country Partnership Framework (CPF) with the Kyrgyz Republic in October 2023, Tatiana Proskuryakova, the World Bank’s Regional Director for Central Asia, announced that the bank’s investments would ‘focus on the key priority sectors of energy, water and agriculture to create a better and more sustainable future for the citizens of the Kyrgyz Republic’.  

But as the World Bank’s commitments in Kyrgyzstan reach USD 1.1 billion, public involvement in these investments – a major tool of accountability and due diligence – is at serious risk. It is difficult to imagine how the bank will ensure its objectives bring about a brighter future for the country’s citizens amidst intensifying reprisals against citizens themselves. 

These financial institutions should confirm their positions on the potential risks that the present situation poses for international investments in the country. They should convey to the Kyrgyz government the necessity for coordinating investment project objectives with the needs of citizens and insist that meaningful public participation with a strong civil society is crucial for successful project implementation. The World Bank in particular should monitor risks associated with the new proposed laws and introduce effective measures and procedures to assess and mitigate such risks and impacts to ensure project compliance with its Environmental and Social Standards.  

Safeguards for green initiatives should not overshadow social risk assessments 

Since 1992, the EBRD has invested around EUR 900 million in Kyrgyzstan through projects that support the private sector, the transition to a green economy, and sustainable infrastructure. Like other development banks, the EBRD seems to have steadily increased its focus on green projects in recent years.  

It is true that Kyrgyzstan currently faces significant environmental challenges. But the country is also blessed with a large number of non-governmental organisations that are determined to share their knowledge and expertise to help the country resolve these issues. These and other representatives of Kyrgyz civil society, as well as media outlets, are under immediate existential threat as a consequence of the proposed legislative changes and recent surge in persecution.  

What’s important to remember is that the EBRD’s political mandate stipulates that its countries of operations should maintain their democratic course. In her response to Bankwatch’s letter, the EBRD’s Regional Director Aytem Rustamova assured us of the EBRD’s intent ‘to address the issues relating to recent political developments in Kyrgyzstan in its new Country Strategy’, which is currently being developed.   

Bankwatch will continue to keep a trained eye on these developments. Hopefully, both environmental and social risks will be reflected with equal importance, reinforcing the bank’s commitment to achieving its objectives and helping Kyrgyzstan return to its democratic path.