“Tajikistan has just been admitted to the World Trade Organization (WTO) and the much awaited news, while highly encouraging, has undoubtedly added urgency to the need to accelerate reforms in the energy, transport, finance, agriculture, and water sectors. Improving physical infrastructure is another priority,” a statement released by Mr. C.C. Yu, Country Director, the Asian Development Bank (ADB) Tajikistan resident Mission (TJRM) noted.

“Experience from other countries which have recently joined WTO indicates that accession can bring unprecedented opportunities and challenges, potentially transforming a country far beyond just increased trade.  The Asian Development Bank (ADB) will support Tajikistan as it strives to capitalize on the opportunity WTO membership offers to improve the lives of its people.

“As WTO Director-General Pascal Lamy has noted, “As a new member, Tajikistan will be in a better position to use trade as a tool for its development and growth, as others have done.”  However, whether such benefits can materialize largely depends on the country’s readiness to fulfill its pledge to open its trade regime and accelerate integration into the world economy.  More importantly, Tajikistan must ready itself to compete globally not only in sectors where it is traditionally strong, such as cotton and aluminum, but should also be able to diversity its economic base to develop new areas of growth such as services, agribusiness and ecotourism.  The key to achieving this lies in more private sector investment. Without a booming and innovative private sector, no amount of donor money will ever be enough to lift the Tajik people out of poverty, and the country will never realize its full development potential.

“ADB’s country partnership strategy focuses on removing bottlenecks in key sectors such as energy and transport that hinder economic development.  The program for 2013-2014 reflects these priorities by investing in cost-effective solutions to solve energy shortages through rehabilitating an existing hydropower plant and continuing to build regional transport corridors.  Aside from investing in improving physical infrastructure, ADB, together with other development partners, has been working closely with the Government pursuing other reforms.  The overall thrust of these is to try to create an enabling environment for private investors, including both potential foreign investors and Tajik entrepreneurs.  Many of the local businessmen and women are flush with remittance dollars and are willing to start business in their homeland – but only if the conditions are ripe.  Presently, these potential investors are often deterred by the country’s inadequate infrastructure and banking services, complex business procedures, and a myriad of taxes, duties, fees and charges. Despite some recent progress, Tajikistan currently ranks 141st out of 185 countries in the 2013 IFC Ease of Doing Business Index.

“As a new country director for ADB’s Tajikistan resident mission, I have had opportunities to interact with government officials.  I am strongly encouraged by the consensus, at the highest level, on the need for more foreign direct investment, along with domestic entrepreneurship.  President Emomali Rahmon himself stressed the need for reform and cutting out corruption in a very open manner at the recent Tajikistan Development Forum attended by high level government officials and all the major development partners.  WTO accession provides an excellent opportunity for the country to carry out much needed reforms in key sectors of the economy to leverage investments, particularly from the private sector, and accelerate inclusive growth.”