For several years, the donor community have been concerned with the growing evidence that, over time, the wide variety of donor requirements and processes for preparing, delivering, and monitoring development assistance are generating unproductive transaction costs for the partner countries. These concerns have been met by attempts to reduce transaction costs and improve the effectiveness of aid delivery and management through harmonization of donor procedures at the global, regional and country levels.
The High Level Forum on Harmonization in Rome identified three countries in ECA Region which would be pilot countries for harmonization: Kyrgyz Republic, Tajikistan and Serbia. Following the Rome meeting, the Government of the Kyrgyz Republic passed the Resolution in March, 2003 and appointed the Ministry of Finance (MoF) as the executing agency for harmonization program.