Tajikistan Development Forum Outlines the Roadmap for Future

                 Contacts at the World Bank:
                 In Dushanbe: Dilya Zoirova (+992-372) 21 07 56
                 dzoirova@worldbank.org
                 In Washington: Steven Jouy (+1-202) 473 4215
                 sjouy@worldbank.org

DUSHANBE, June 2, 2007 – Representatives of the Tajik Government, international development agencies, bilateral donors, civil society and private sector came together in Dushanbe today for the Tajikistan Development Forum that took stock of the country’s development efforts to date, defined further priorities and the way forward. 

The Forum was organized by Tajik Government with the support of the World Bank and other development partners. President of the Republic of Tajikistan Emomali Rahmon participated at the Forum that was co-chaired by Mr. Akil Akilov, Prime Minister of Tajikistan and Ms. Annette Dixon, World Bank Country Director for Central Asia. The Forum was attended by key Government officials and representatives of 20 countries and 26 development agencies. It included  delegations of Afghanistan, Canada, China, France, Germany, India, Iran, South Korea, Japan, Kazakhstan, Pakistan, Russia, Sweden, Switzerland. Turkey, Turkmenistan, UK, UAE, USA and Uzbekistan. There were also representatives of Abu Dhabi Development Fund, Asian Development Bank, Aga Khan Development Network, Arab Fund for Economic and Social Development, OPEC, KfW, GTZ, EBRD, European Commission, IFAD, IFC, IMF, IOM, Islamic Development Bank, JICA, MIGA, OECD, OSCE, TICA, United Nations and World Bank. Civil society and private sector representatives also participated at the meeting.

The discussions focused on the challenges for future development and determining the role each partner can play in contributing to the Government’s development vision.  The forum provided an opportunity to assess the implementation of the Tajikistan first Poverty Reduction Strategy and discuss the implementation of the country’s National Development Strategy and the second Poverty Reduction Strategy recently adopted by the Government. To that end, the National Development Council, comprising key Government officials and civil society representatives, will be established that will define main strategic directions and oversee the implementation of the country’s development programs.

“The major aim of the National Development Strategy is to ensure sustained economic growth which would translate into better living standards for our citizens,” said President of Tajikistan Emomali Rahmon, addressing the Forum participants. “We have great challenges ahead of us and we believe that broad economic cooperation with our development partners will make a considerable contribution into the national goals.”

Among other specific issues discussed at the Forum were energy sector development strategy, development of the country’s human potential, rural programs and resolution of cotton farm debt, investment climate improvement and public administration reforms.

“Tajikistan is at a new development stage when deeper structural reforms are needed to ensure socio-economic stability to benefit the people of the country. This Development Forum is an opportunity to address Tajikistan’s development objectives and make sure that assistance of development partners is aligned with country’s priorities.” said Ms. Annette Dixon, the World Bank Country Director for Central Asia.
 
Development partners particularly noted the Government’s progress in stabilizing the country socially and economically and the broad vision set out in the National Development Strategy and the second PRS. High levels of economic growth helped the country recover after the civil war and economic distress. Building on this stability, the country is now well positioned to deepen reforms and increase the absorption capacity for investments which would accelerate the improvement of living standards in Tajikistan.  

President Rahmon and donors alike stressed that the successful political consolidation and stable macro-economic performance provide a solid platform for the implementation of an accelerated reform agenda by the Government. Participants commended Government’s achievements in economic growth and poverty reduction over the last five years.  Economic growth has averaged 9.4 percent for 2000 to 2005 and inflation has been relatively stable and kept at lower than 10 percent per year. Growth in traditional sectors, such as cotton and aluminum, combined with remittances has enabled Tajikistan to sustain its economic growth performance. Participants recognized that much work remains to be done to achieve the development outcomes envisaged in the National Development Strategy. 

Participants noted that consolidating and building on the achievements ahead will require continued efforts, notably managing macroeconomic and external debt sustainability, improving health, education, and sustaining broad-based economic growth by intensifying and using more widely the country’s natural comparative advantages. Donors expressed their strong commitment to support the Government’s efforts in these areas. Government and donors also committed to implement the Paris Declaration on Foreign Aid Effectiveness. In particular, donors expressed their strong interest in starting to work on a joint country partnership strategy in the near future.