Bishkek, 21 February 2025 — The United Nations Development Programme (UNDP) is launching a new initiative aimed at strengthening the handicraft value chain in Kyrgyzstan as part of the Aid for Trade project. This project is designed to enhance the production and export potential of Kyrgyzstan’s traditional felt and leather products (handicrafts), which have growing demand in both foreign markets and among international tourists.

The selection of the handicrafts value chain is based on comprehensive studies of green value-added chains in Kyrgyzstan (2023). Alongside natural honey, dried fruits and walnuts, and adventure tourism, handicrafts emerged as a priority sector due to its alignment with green economy principles, export potential, and capacity for job creation. Traditional crafts offer a sustainable industry with minimal environmental impact, leveraging local resources and skills while providing economic opportunities, particularly for rural women and youth.

This initiative aligns with Kyrgyzstan’s national priorities as outlined in key strategic frameworks, including the National Development Strategy of the Kyrgyz Republic for 2018–2040 and the Export Development Program for 2025-2028. By promoting sustainable industries and enhancing export capabilities, UNDP supports the country’s long-term vision of inclusive economic growth and global market integration.

By integrating traditional crafts into the tourism sector, UNDP aims to create new economic opportunities in rural regions. The initiative will strengthen craft associations, expand their international reach, introduce modern production technologies, and provide specialized training to artisans. Additionally, it will develop digital sales channels and forge strategic partnerships with tourism stakeholders to increase market access. Financial support mechanisms will help craftspeople modernize production, ensuring that traditional handicraft remains a key component of Kyrgyzstan’s tourism sector.

“UNDP is committed to strengthening local value chains that drive sustainable development,” said Alexandra Solovieva, UNDP Resident Representative. “By empowering artisans, linking their crafts to tourism, and creating international market opportunities, we are preserving Kyrgyzstan’s rich cultural heritage while fostering inclusive economic growth for rural communities, especially women and youth.”

The initiative will also boost the competitiveness of Kyrgyz handicrafts in global markets, particularly in Europe, where felt products benefit from the Generalized System of Preferences (GSP+) program. By connecting artisans with tourism operators, traditional crafts such as felt-making, leatherworking, and embroidery will not only safeguard cultural traditions but also serve as a catalyst for economic vitality in rural areas.

With the majority of unemployed women in Kyrgyzstan living in rural areas, strengthening the handicrafts value chain offers a clear path to self-employment and income generation, addressing gender disparities while improving household livelihoods.

This initiative is part of the fifth phase of the regional Aid for Trade in Central Asia project, funded by the Government of Finland. The project spans Kyrgyzstan, Tajikistan, and Uzbekistan, promoting “green” value chains to increase economic competitiveness and foster gender-sensitive diversification in response to evolving market trends. By prioritizing sustainable sectors like handicrafts, UNDP is contributing to the creation of more resilient and inclusive economies across the region.