Development partners see a key role for the private sector in advancing Tajikistan’s development priorities. They say the private sector will have to play a key role in ongoing efforts to set Tajikistan’s economy onto a transformational “innovative-industrial” track that fosters investments, innovation, and exports, necessitating important reforms to modernize Tajikistan’s economy and strengthen its business climate.
Favorable external developments (such as the opening of large markets in Tajikistan’s immediate neighborhood), paired with strategic decisions taken to invest into an export-oriented energy sector, have created a unique window of opportunity to transform Tajikistan’s economy and create conditions for increased employment and higher wages, according to the Development Coordination Council (DCC).
The DCC members expressed their support to the socio-economic transformation agenda, formulated along the lines of the National Development Strategy up to 2030 and Sustainable Development Goals. With this message, the development partners shared their vision at the 2018 meeting of the National Development Council and Development Forum that took place in Dushanbe on July 3,
“Overcoming post-independence isolation, Tajikistan has an historic opportunity to reconnect to the legacy of the ancient Silk Road, at the intersection between Central, East, and South Asia,” said Jan-Peter Olters, DCC Chair. “The members of the Development Coordination Council are convinced that Tajikistan can take advantage of emerging opportunities and avoid corresponding risks.”
Development partners note that for Tajikistan to be able to benefit from a virtuous cycle of investments, exports, and socio-economic development, it requires vision, courage, and commitment to ensure the ability to 1) finance public investments within a stable and sustainable macro-fiscal framework; 2) implement complementary reforms to reinforce effective institutions; and 3) strengthen confidence among potential investors that Tajikistan is indeed becoming a country of new opportunities and rapid development. If private sector is provided with sufficient confidence into its future, the country, with resultant “green field” investments, will be able to leapfrog several development stages and build a modern, up-to-date industry with technology that is competitive on neighboring markets. High rates of “catch-up” growth come with additional employment and rising wages—presupposing that a healthy and educated workforce will be able to exploit emerging opportunities.
Development partners encouraged close attention to investments in human capital and public services.
Members of the DCC—consisting of 29 multilateral, bilateral, and United Nations-based organizations—and the Government of Tajikistan discussed the need for accelerated efforts to improve the macro-fiscal stability, tax policy and administration, the importance of public investments in education, health, and social protection to improve social welfare and poverty reduction, particularly in rural areas. They reaffirmed their commitment to strengthen and deepen development collaboration in joint efforts to build the foundation for a modern, wealth- and employment-creating economy.
With an overall objective to strengthen aid effectiveness in Tajikistan, the Development Coordination Council (DCC) was established to facilitate information exchange and collaboration within the development community, as well as foster dialogue on shared priorities with the Government of Tajikistan. The DCC functions as development partners’ coordination mechanism with the Government of Tajikistan in support of the National Development Strategy.
The Chair of the DCC serves as the spokesperson for development partners at formal meetings with the government and is the official point of contact on general coordination matters. The heads (or in their absence, deputies) of 29 bilateral, multilateral, and UN agencies comprise the Council.
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