Building the Right Skills for Human Capital

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Executive Summary

ABSTRACT As a budding democracy and a demographically young nation, the

Kyrgyz Republic is seeking a trajectory of sustainable growth that is less dependent on remittances, natural resources, and a large informal economy. Raising human capital can build a skilled and enterprising workforce, allowing the Kyrgyz Republic to reap the dividends of a youth bulge, be resilient to ­disruptive technology, and create quality formal-economy jobs for its large and fast-­ growing young population.

A changing demand for skills can be seen across the world in the 21st century. In some instances, technology can disrupt labor markets, altering the

manner in which businesses and consumers operate and interact. Technological advancements also provide significant opportunities to create new jobs and enhance productivity and effectiveness. The changing landscape for technological innovation translates to a required change in education and skills within the marketplace. The Kyrgyz Republic is no exception, although the shift is slower than that in some other European and Central Asian countries. Through implementation of the National Sustainable Development Strategy (2018–23), the Kyrgyz Republic is planning for technological innovation. Such innovation requires a skilled workforce.

In the Kyrgyz Republic, global trends and technological disruption intersect with demographic growth and structural economic challenges. School age children account for more than 30 percent of the

country’s population, which is increasing demand for access to quality preschool and basic education. This will translate into increased demand for postsecondary and tertiary education to produce workers with the relevant skills for the changing nature of the workplace. Although it is a major challenge to meet the demand for quality education that builds the necessary skills, the young population of the Kyrgyz Republic also provides an opportunity. If the Kyrgyz Republic succeeds in raising the quality of education, it will improve the skills of

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