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Working with the Business Community in Tajikistan Selected Indicators • Population: 7,011,556 • Human Development Index: Value is 0.677 (2001) Ranking 113 out of 175 countries (2003) • GDP - Purchasing Power Parity: USD 6.996m • GDP per capita- Purchasing Power Parity: USD 1000 • GDP Growth rate: 9.9% • Population below poverty line: 60% • 67.2% of the labor force work in Agriculture – Main produce are: Cotton, grain, fruits, grapes, vegetables; cattle, sheep, goats • Industries: aluminum, zinc, lead, chemicals and fertilizers, cement, vegetable oil, metal-cutting machine tools, refrigerators and freezers Tajikistan and the MDG’s • As is noted in the Government's 2003 Millennium Development Goal Report, Tajikistan is unlikely to meet its MDG targets • The UN's most recent Human Development Report has identified Tajikistan as the only Top Priority country for meeting the MDGs in the Central Asian and Eastern European region • Tajikistan will be able to supply only a small part of the total financing requirements for the MDGs • Therefore, partnering with the Business community in Tajikistan will add value to UNDP’s efforts in Tajikistan to attain the goals Socio-economic issues • Civil war 1992-1997, Peace Accords signed in 1997, the war left 60 000 casualties and violence has continued largely by opposition groups • As a result of the civil war, there is a large degree of women-led households • Labor migration (Russian Federation, UAE and other countries) stands at 800 000 people according to IOM (+10%) • Growing number of Drug addicts, Commercial sex workers and registered HIV/AIDS cases • Tajikistan seizes roughly 80 percent of all drugs captured in Central Asia and stands third world-wide in seizures of opiates (heroin and raw opium) Issues and constraints working on Business Sector Development • Weak banking sector – Little or no access to credit for companies • Corruption • State control of several industries • Rules and regulations - the enabling environment is not there • Informal business sector is large: low levels of capital, skills, access to organized markets and technology, low and unstable incomes and poor and unpredictable working conditions What are the next steps? Opportunities and Ideas • UNDP’ BRSP resource person undertakes mission to Tajikistan • Continue stakeholder meetings and undertake a more comprehensive assessment of the situation • Working outside government structures – with limited bureaucracy - Business sector focus – while development in governance issues are taking place cont. • Linking Business partnerships to existing projects whenever possible • Large potential – Business development is a new challenge – UNDP role will be defined • UNDP’s role in working on Business community development has to be defined • Linking Business Community Development to the MDG’s Envisaged Activities Sep 2004 - BRSP mission to Tajikistan completed Nov 2004 - Comprehensive stakeholder analysis made by various consultations and liaison with business- and other key stakeholders Jan 2005 - Sensitization event March 2005 - Workshop April 2005 - Press releases/Media May 2005 - Launching the Tajikistan Glocal Compact