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New IFC Study Reveals Business Environment Improvements and Challenges in Tajikistan
Dushanbe, May 31, 2007—IFC, the
private sector arm of the World Bank, has released the results of a comprehensive
study of Tajikistan’s business environment, revealing two years of strong
progress and identifying areas where additional reforms are needed to sustain
a thriving small business sector in the country. IFC officially presented
its 2006 SME Survey report to the government of Tajikistan last week. A
strong small business sector is critical for economic progress as the country
continues its transition to a market economy.
The report, based on a survey of more
than 2,500 entrepreneurs and small business owners, is part of a continued
effort by the Tajikistan Business Enabling Environment/SME Policy Project,
financed by Switzerland’s State Secretariat for Economic Affairs to monitor
and improve the country’s business environment. The results show that
a number of positive steps have been undertaken since the survey was last
conducted in 2003.
Despite these efforts, critical issues
remain for small and medium enterprises. According to the study, larger
companies are most affected by burdensome administrative procedures, and
corruption remains a problem. Survey respondants sent contradictory
signals about business confidence: most small businesses are anticipating
improvements, while indicating that they would not restart their business
if given a choice.
The report makes recommendations to
simplify regulations, which will reduce the burden on businesses and remove
an incentive to seek unofficial solutions. Additional improvements are
outlined in the report as well: consolidating reforms in areas such as
access to finance and registration; implementing legislative changes for
licensing and inspections; and addressing problems related to permits,
standardization, and taxation.
At the presentation, F. Khamraliyev,
head of Tajikistan’s Economic Reforms and Investment Department, said,
“The IFC report is a useful tool for us to monitor the business environment
of the small and midsize business sector, which the government of Tajikistan
considers to be one of the key priorities in the country’s economic development.”
“This survey is very useful and relevant
in identifying the critical administrative barriers impeding the development
of the SME sector,” added Shahbaz Mavaddat, IFC Director for Southern
Europe and Central Asia. “I am very pleased that IFC can support
Tajikistan in removing these barriers, in particular by reducing the burden
of inspections and making them more effective.”
Other government representatives who
attended the presentation included M. Kaldiyorova, advisor to the President
on Economic Policy; S. Rakhimov, Chairman of the State Investment Committee;
and M. Alimardonov, head of the National Bank.
About IFC
IFC, the private sector arm of the World
Bank Group, promotes open and competitive markets in developing countries.
IFC supports sustainable private sector companies and other partners
in generating productive jobs and delivering basic services, so that people
have opportunities to escape poverty and improve their lives. Through FY06,
IFC Financial Products has committed more than $56 billion in funding for
private sector investments and mobilized an additional $25 billion in syndications
for 3,531 companies in 140 developing countries. IFC Advisory Services
and donor partners have provided more than $1 billion in program support
to build small enterprises, to accelerate private participation in infrastructure,
to improve the business enabling environment, to increase access to finance,
and to strengthen environmental and social sustainability. For more information,
please visit www.ifc.org.
IFC Business Enabling Environment
/ SME Policy Project
The project was launched in 2003 and
is financed by Switzerland’s State Secretariat for Economic Affairs. In
addition to monitoring the business environment by conducting regular surveys,
the project is helping implement the new inspections law, conducting preliminary
analysis for the permits reform, and raising SME awareness through training
and events. For more information, please visit www.ifc.org/tajikistan/sme.
About SECO
The State Secretariat for Economic Affairs
is the Swiss Confederation's competence center for all the core issues
related to economic policy. Its aim is to create basic regulatory and economic
policy conditions to enable business to flourish and benefit all. SECO
also represents Switzerland in the large multilateral trade organizations
and international negotiations, and is involved in efforts to reduce poverty
and help developing countries with transition economies build sustainable
democratic societies and viable market economies. Each year, Switzerland
spends about 1.9 billion francs on development cooperation and transition
assistance to countries.
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