DEVELOPMENT CHALLENGES
Having declared its independence in 1991, Tajikistan’s economy demonstrated record growth rates averaging nearly 9% per annum during the 2000s. Classified as a “low income” country, Tajikistan’s GNI per capita has doubled between 2006 and 2010, increasing from US$400 to US$800. Although economic growth fell to 3.9% in 2009 during the peak of the financial crisis due to a drastic fall in remittances and foreign direct investment (FDI), a timely response and generally good macroeconomic management helped the country to recover slowly. Nevertheless, the country remains the poorest in the region of Eastern Europe and Central Asia, with a “medium” Human Development Index (HDI) of 0.607, placing Tajikistan in 127th place of 187 countries. The country faces significant development challenges.
- Poverty and inequality
- Lack of employment opportunities, labour migration, and heavy reliance on remittances
- Weak public administration
- Skills gap
KEY TRADE ISSUES
- Product concentration, weak competitiveness, low productive capacity and trade deficit
- Market concentration and WTO accession
- Limited access to finance
- Cumbersome regulatory and business environment
- Weak physical infrastructure
- Underdeveloped quality management infrastructure
GOVERNMENT PRIORITIES
The overarching long-term development goal of Tajikistan, as defined in the National Development Strategy of the Republic of Tajikistan for the Period to 2015, is to strengthen social and political stability and to achieve the economic prosperity and social well-being of the people of Tajikistan in an environment shaped by the supremacy of the principles of a market economy, freedom, human dignity and equal opportunities.
With a view to successful achievement of this overarching goal, the main priorities are to:
- Improve the public administration system in accordance with the requirements of a market economy, and create a modern, professional civil service;
- Improve management of government finances, tax administration, the macroeconomic planning, forecasting and statistics system, monetary policy and the financial sector;
- Develop administrative-territorial governance and form a full-fledged local self-government;
- Reform the judicial and law enforcement systems in accordance with democratic principles;
- Diversify the economy and enhance export potential;
- Reinforce legislation to improve the investment and entrepreneurial climate;
- Better organize procedures for regulating the activities of economic entities under all forms of ownership;
- Expand support for business;
- Further develop regional cooperation; and
- Integrate into the global partnership system.
More detailed information on Tajikistan can be found here.