Speeches and Transcripts
Statement by the Coordinator of U.S. Assistance to Europe and Eurasia, U.S. Department of State, Thomas Adams
World Bank Development Forum
Dushanbe, Tajikistan
June 2, 2007
Thank you all for such informative presentations. It’s a great honor for me and the U.S. delegation to be here today at this Development Forum for Tajikistan.
The United States supports the joint World Bank/ADB proposal for resolving the cotton debt. The President raised the urgency of resolving this. It is a sensible compromise that will allow Tajikistan’s farmers to begin responding to the market, spurring personal prosperity, and national economic growth.
The United States commends the Government of Tajikistan for working with the IMF to reach agreement on a new program. The government’s offer to take on a debt cap demonstrates its seriousness in maintaining macroeconomic stability.
The Government of Tajikistan deserves great credit for bringing security and stability to this country. This past decade of stability creates an opportunity for the government to move decisively forward on reform to improving the lives of Tajikistan’s citizens. The United States is pleased to support the government in these efforts with a variety of assistance programs. I would like to focus briefly on four additional areas where we believe the government can take action to accelerate results.
Unleash the power of small- and medium-sized enterprise job creation: Additional airline routes and better hotels are paving the way for greater numbers of investors. The Poverty Reduction Strategy emphasizes that Tajikistan needs to improve its business environment. In most economies, small and medium-sized businesses account for the majority of employment. But in Tajikistan, there is currently only one SME per 1000 residents as compared to the 30 in Europe. The PRS points out that given Tajikistan’s isolation and poverty, its investment climate must be even better than that of other countries. Tajikistan is beginning to take steps to address this. But the task is large – According to the 2006 World Bank Doing Business Indicators, Tajikistan placed 133 out of 175. (Kazakhstan, for comparison is 63.) It was particularly worrisome that the indicator for the ease of starting a business was 166 and protecting investors was 172. Tajikistan’s efforts to alleviate poverty will be hampered until it can take the steps recommended in the strategy to create a one-stop shop and reducing the number of permits needed to start a business. The World Bank’s Doing Business report provides a good roadmap. The good news is that countries that follow the recommendations in this roadmap show an almost immediate boost in investment and economic performance.
Become regional trade, transit, and electricity hub: Tajikistan correctly identified the developing infrastructure, energy, and industry as its priorities to generate growth. India, China, Russia, Kazakhstan, and Pakistan are some of the world’s fastest growing economies. With the improvements to its business environment and infrastructure, Tajikistan can capitalize on its strategic location to become the hub that links their trade, transit, and electricity. This is an ambitious goal, particularly given the social tensions that can arise with energy price increases needed to make these systems financially sustainable.
Empower citizens to participate in governance: Countries going through difficult transitions need full buy-in from their citizens. The 2006 presidential elections were the best in Tajikistan’s history. But instead of building on those gains, the two recent by-elections, surprisingly, fell short. Tajik history is rich with literary and cultural achievements. But Tajikistan’s media today is hobbled. Civil society is still stunted by the civil war. The new NGO law is better than the first draft. But it does not appear to help civil society take its needed place as a well informed partner in governance.
Allow assistance partners to help you more effectively: As you can see from the number of donors represented here, Tajikistan has strong partners in its development. But each partner active here will tell you that our programs would be able to help you much faster if it were not for the many hassles lower-level government officials put in the way. We are constantly asked for yet another fee, yet another diplomatic note, yet another license, etc.
We heard your appeal, Mr. President, for greater donor assistance to meet the many challenges your country faces. You and your government will help me secure greater assistance funding for Tajikistan from the United States Congress by making clear progress on good governance and greatly accelerating the pace of implementing reforms agreed on here today. Your participation and that of your government here today with donors underscores your seriousness in this regard. When your government takes the concrete actions to advance reform in the areas I mentioned, the United States, and I believe other donors, will continue their support for your efforts.