How Tajikistan’s economy is recovering
Tajikistan is actively working to eliminate the effects of the pandemic. To this end, the government is implementing a program of new reforms. The main objective is to rebuild Tajikistan’s economy towards sustainable development. As part of the strategy, the president of the country met with the vice president of the World Bank to discuss further cooperation and develop measures to improve the economy. One of the main issues remains support for social programs and increased funding for health care. In addition, the World Bank is helping the government of Tajikistan to purchase vaccines against COVID-19.
The pandemic has had a serious impact on the country’s economy and on the well-being of its citizens. Many Tajik citizens have lost their jobs and their incomes have decreased, resulting in a shrinking middle class. In 2020, economic development slowed down by 4.5%, but already in 2021, the dynamics have improved. In the first 6 months, the economy showed a growth of 8.7%, the good dynamics are still there. This result is primarily due to the export of precious metals, as well as an increase in remittances.
The representatives of the World Bank note that the priority areas for the development of Tajikistan are reforms in the taxation system. In addition, clean and renewable energy deserves special attention, which will allow the country to move towards an environmental strategy. The country needs digitalization and improvement of business approaches. In turn, the government plans to use the funds from the World Bank to create new jobs.
The head of the financial organization during the meeting with the government mentioned the importance of the modernization of agriculture. According to Ana Bjerde, local producers have excellent prospects for increasing exports and entering new markets. The World Bank and the country’s authorities are now implementing a new program to commercialize the industry. The project will expand opportunities for farmers. In addition, enterprises will be modernized to increase productivity and become more competitive.
The World Bank is providing financial support to Tajikistan for 23 projects with a total amount of $1.2 billion in monetary assistance. Cooperation between the partners has been carried out since 1996, during this time the country has received more than 2 billion dollars in the form of IDA grants, as well as loans and trusts.
World Bank representatives note the positive improvement in Tajikistan’s economic processes and intend to support the country’s development in the future. The main goal of the financial organization considers the support of young people, providing them with jobs and decent wages. However, this can be achieved only with the introduction of innovation in the economy and the taxation system.