The project assists the Government of Tajikistan in reforming the legislation policy influencing the SME sector to create a business environment supportive to start and develop business activities.
The project also coordinated a SME Legal Environment working group with the participation of most organizations active in private sector development in Tajikistan.
Inspections: implementing the new law
IFC’s 2006 survey of SMEs in Tajikistan revealed that the inspections process is one of the most complex administrative procedures for the country’s small and medium enterprises (SMEs). Over 96% of small businesses are inspected each year in Tajikistan, with each SME undergoing an average of 13 inspections per year, which, if summarized, last a total of 7 business days.
On July 28, 2006 the new Inspection Law [PDF] was adopted. Now the project, in coordination with the State Committee on Investments and Management of the State Property is:
Supporting the Government in completing the reform of inspections’ legal framework
Leading a Government working group on inspections checklists elaboration
Assisting pilot agencies, State Fire Fighting Service and National Center of State Sanitary and Epidemiologic Supervision, in implementing and rolling-out the new inspection process.
The video below shows how IFC collaborated with the government of Tajikistan for the new law on Inspections approved in 2006. The next issue for the government is to implement the new law throughout its agencies, and IFC is actively involved in it starting from the Fire Department. The project had in all its phases a persistent visibility in mass media of Tajikistan.
Click on "play" button in the video box (or download a higher resolution versionhere).
How the law was adopted?
Creating the conditions for development of a thriving private sector is a tall order in a country blighted by the aftermath of a civil war, poverty, isolation, and bad policies. Here is the story, how the law was adopted and what lessons did we learn from this valuable experience. To read Smart Lessons paper [PDF]
Permits: reviewing the system
Along with further implementation of inspections law, the Project team will continue its aspiration to improve other legislative policies. For the Phase III the issue of Permits was selected. The Survey 2006 highlighted that permits represent a significant barrier for business development, in particular due to their pervasiveness. A preliminary analysis developed by the project highlighted a lack of comprehensive legislation on permits (which in fact are not defined in the Tajik legislative system) that would regulate the application process.
With the support of the Presidential Office and the State Committee on Investments and Management of the State Property, the project will, over the coming months, launch a comprehensive review of the permits system as the basic step to initiate legislative reforms.
