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Tajikistan
FY 2001 Program Description and Activity Data Sheets
>> Regional Overview >> Tajikistan Overview FY 2001 Program
USAID will continue to emphasize the inter-Tajik peace process, integration of former combatants, and national reconciliation. The size and nature of USAID's programs will be determined by the political and security situation of Tajikistan. USAID will also promote micro-credit, private enterprise, and the evolution of a commercial legal and regulatory structure.
There may also be some assistance to the private banking sector as the majority of Tajikistan’s 19 banks are small and financially weak. USAID will continue to support the development of non-governmental organizations (NGOs), with a focus on those that contribute to the peace process through reconciliation and local community development. USAID also promotes reconciliation and limited economic development efforts through microfinance opportunities, agricultural growth, community-based projects, and health reform. USAID will continue to support independent electronic media, focusing on how media stations can contribute to public understanding of the peace initiatives and upcoming elections. After the election of the new parliament, and contingent upon election proceedings, USAID intends to work on strengthening the institutional capacity of the parliament. In the social sector, USAID will continue to work closely with other donors, private voluntary organizations and NGOs.
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ACTIVITY DATA SHEET
PROGRAM: Tajikstan
TITLE AND NUMBER: Accelerated Development and Growth of Private Enterprises, 119-013
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $750,000 FSA
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $2,000,000 FSA
STATUS: Continuing ActINITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE: FY 2002
Summary: This objective is critical to rebuilding Tajikistan’s war-torn economy and providing income and jobs to those displaced by years of civil conflict. While the economic policy environment has improved noticeably, chronic security problems resulted in the relocation of USAID personnel to Kazakhstan. This relocation diminished progress toward objectives. Long-term USAID development activities are just beginning.
USAID’s initial training in commercial law reform has been well received. USAID is helping to establish the legal structure necessary for the emerging private sector. The government made significant progress toward a market economy in 1998 by privatizing 23% of Tajikistan's enterprises, raising the total privatized from 50% to 73%.
Key Results: Three key results are necessary to achieve this objective: 1) an improved operating environment for private sector growth; 2) improved human resources, so as to enhance the functioning of a market economy; and 3) increased availability and accessibility of capital and technological resources for the private sector.
Performance and Prospects: Private economic activity has displayed remarkable dynamism in recent years. Service sector growth, particularly in private catering and retail trade establishments, has outstripped average growth. This dynamism, rather than privatization per se, lies behind a very rapid increase in the private sector share of GDP, to more than 30% in 1998. This is up from 15% in 1994. Restructuring of state-owned companies, by contrast, has been slow. Lack of restructuring has limited the interest of strategic outside investors. Foreign direct investment amounts to just $160 million since 1991, or $25 per person.
During 1999, Central Asian-American Enterprise Fund (CAAEF) made five loans totaling $800,000 to private businesses. A "Special Cooperation Agreement" between CAAEF and the government was signed in 1999. Winrock’s Farmer-to-Farmer volunteers assisted enterprises in preparing business plans, and loan and equity proposals for CAAEF; and acted as consultants on post-investment management. In late 1999, a new micro credit project was started, and lending operations will start in 2000.
If the government remains committed to economic reforms and continued political stability, USAID will continue modest commercial law assistance in 2000 and 2001. The objective is to develop a market-oriented commercial infrastructure, including key reforms in the law. The program will initially focus on drafting the following laws: bankruptcy, collateral law, and foreign investment. Other areas will include promotion of the transfer of assets to the private sector and the strengthening of the rights of private investors. Practical constraints to business formation and operation (e.g., licensing and registration) will also be addressed. In addition to commercial law reform, in-country training will be provided to officials (i.e., judges, lawyers, and prosecutors) involved with the implementation of a market-friendly regulatory regime.
During 2000, CAAEF will review its loan portfolio, which is experiencing higher than expected levels of loan delinquencies. CAAEF is undertaking a review of the situation with its local partner banks, which tend to be undercapitalized with the central bank. Through 2000, USAID will support the Kazakhstan Institute of Management, Economics, and Strategic Research to research current economic issues in Tajikistan.
Possible Adjustments to Plans: A key focus in the coming years will be the Fergana Valley, for it is one of the most dynamic regions for private enterprise growth in Central Asia. If the security opportunity presents itself, USAID will provide business and economic training. During 2000, USAID will conduct an assessment of the trade and investment environment in Tajikistan to determine future directions. Also, USAID will develop policy reform benchmarks as part of a U.S. Department of Agriculture food assistance program.
Other Donors Programs: USAID will continue to coordinate closely with the World Bank and IMF, on private sector development and economic restructuring activities. USAID activities are also coordinated with those of other donors such as the European Union and UN Development Program on economic reform issues. The German Agency for Technical Cooperation and the Asian Development Bank are both beginning legal assistance efforts in Tajikistan, with USAID serving as coordinator. USAID is also working with the Center for International Legal Cooperation in Leiden, the Netherlands, to develop a multinational program of assistance to Tajikistan in the elaboration and adoption of a proposed Civil Code.
Principal Contractors, Grantees, and Implementing Agencies: USAID assistance activities are implemented through Associates in Rural Development/Checchi which does commercial law drafting and implementation and commercial law training. The U.S. private voluntary agency, International Executive Service Corps, provides short-term technical assistance and consulting services to develop business plans. CAAEF provides loans to small- and medium-sized private enterprises. The Academy for Educational Development coordinates participant training.
Selected Performance Measures:
Baseline
Actual
(1998)Target
(1999)Target
(2000)Target
(2001)Govt. of Tajikistan adherence to conditions of international financial institutions Yes (1997) Yes Yes Yes Yes Share of GDP generated by private enterprises
20%(1996) 30% 50% 65% 75% Dollar value of the joint venture funds* Percent of total capital investment in the private sector* *During FY 1998, USAID programs were being consolidated and a new strategy was being developed. Decisions were made about the relevance of the indicators for the program. Subsequently, data were not collected on these indicators.
ACTIVITY DATA SHEET
PROGRAM: Tajikstan
TITLE AND NUMBER: Increased Citizen’s Participation in Political and Economic Decision-making, 119-021
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $1,000,000 FSA
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $1,000,000 FSA
STATUS: ContinuingFREEDOM Support Act
INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE: FY 2002Summary: Citizen participation in political and economic decision making is not only a foundation for democracy in Tajikistan, but a cornerstone for building peace in the aftermath of the five-year civil war. A return to war may preclude further progress, and would likely reverse any democratic gains made to date. Thus, this assistance is closely linked to the process of building lasting peace. USAID activities under this objective support the U.S. Embassy Mission Performance Plan’s priority to increase government adherence to democratic practices and respect for human rights by building the capacity of citizens and citizens’ organizations to expect, and advocate for, a responsive government.
USAID suspended its voter registration system development project following irregularities in Tajikistan’s presidential elections last fall. However, USAID is continuing some its election-related assistance this year in light of guarded optimism that upcoming parliamentary elections will be freer and fairer. This assistance includes training for poll workers and judges (on election adjudication) and voter education. The outcome of the parliamentary elections will determine the nature and extent of any further USAID assistance in this area.
In the area of civil society, USAID supports local, non-governmental organizations (NGOs) working to rehabilitate the country through repatriation of refugees, conflict resolution, and other activities. USAID’s media program complements the civil society and political process activities by supporting the free flow of information during the elections, and by highlighting to journalists the importance of unbiased and accurate reporting about the peace process. Direct beneficiaries of these activities are assisted media organizations, and members and leaders of assisted NGOs. Indirectly, all of the citizens of Tajikistan will benefit from a strengthened civil society.
USAID also supports judicial reform through this objective. Tajikistan started the process of judicial reform with adoption by referendum of a constitutional provision for a Council of Judges. USAID is assisting the government in developing a modern model for the council as a means to develop the independence of the judiciary and, thereby, improve rule of law. USAID helped the government enact a civil code in mid 1999. The direct beneficiaries are all the citizens of Tajikistan who will benefit from a stronger and more equitable judicial system.
Key Results: Three key results are necessary to achieve this objective. (1) NGO participation in civil society is strengthened. (2) Information on domestic economic policies and politics becomes readily available. (3) The government becomes more responsive and accountable to citizens and citizen organizations.
Performance and Prospects: The return of the American staff of USAID-implementing partners has improved the performance of some of the democracy programs. With USAID assistance, a working group of NGOs and parliamentarians drafted a new NGO law that is scheduled to be presented to the Parliament early next calendar year. USAID continues to work with civil society organizations to promote their involvement in peace in the country.
Assistance to independent media continues to be important given the government’s use of the media law against media outlets and future demands of the peace process. As such, USAID’s implementing partner has developed a comprehensive plan of legal assistance and training for media outlets throughout Tajikistan. The production of Pairachi Zindagi ("The Path of Life"), a national news exchange, has become an expanded source of local news with critical reporting of community issues. Finally, USAID recently helped register the National Association of Independent Mass Media. This organization now provides a stronger opportunity for media advocacy efforts in the country.
With USAID assistance, the judicial association played an active role over the past year in promoting an independent judiciary as the Council for National Reconciliation considered constitutional amendments.
Possible Adjustments to Plans: USAID democracy assistance will continue to be focused on strengthening the peace process. In particular, USAID will look for new opportunities to integrate ex-combatants and displaced persons into the community activities of civil society organizations. Furthermore, USAID intends to work more closely with other donor partners on cross-sectoral integration and synergies in our programming.
Other Donor Programs: USAID is working closely with the United Nations Mission of Observers in Tajikistan and the Organization for Security and Cooperation in Europe on coordinating election-related assistance, as well as civic education projects. Other joint activities include co-sponsoring constitutional reform and election workshops and the rehabilitation of various newspapers. The UN High Commission for Refugees provides additional financial support for USAID-supported NGO resource centers throughout the country. Other donors, including the European Union and various United Nations agencies, are also involved in a variety of activities that promote democracy and the peace efforts. Donors meet regularly to discuss areas of common concern, and this coordination will continue.
Principal Contractors, Grantees, Implementing Agencies: Several USAID-funded American NGOs, such as the American Bar Association/Central and Eastern European Law Institute, Internews, and the International Foundation for Electoral System, are playing a role in promoting democracy and the peace effort in Tajikistan. The Counterpart Consortium comprised of Counterpart International and the International Center for Not-for-profit Law, also participates in local NGO development. The NGO, Initiative for Social Action and Renewal in Eurasia, will also participate in the development of local environmental NGOs. The Academy for Educational Development coordinates participant training.
Selected Performance Measures:
Baseline
Actual
(1998)Target
(1999)Target
(2000)Target
(2001)Number of NGOs involved in advocacy that contacted media/government 9/9(1997) 31/44 40/50 50/60 60/70 Average daily minutes of local news programming
5 (1996) 10 12 14 16 Number of Parliamentary hearings and committee meetings addressing legislative/policy 0 (1994) 2 2 2 5
ACTIVITY DATA SHEET
PROGRAM: Tajikistan
TITLE AND NUMBER: Reduced Human Suffering and Impact of Crisis, 119-031
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $2,000,000 FSA
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $1,500,000 FSA
STATUS: ContinuingFREEDOM Support Act
INITIAL OBLIGATION: FY 1993 ESTIMATED COMPLETION DATE: FY 2001Summary: Tajikistan has experienced five years of civil war between regional and ideological factions, a war which left 50,000 dead and 700,000 displaced along with a legacy of animosity and hatred. This objective aims to reduce suffering and the impact of two parallel crises: the civil war, and the economic upheaval of transition from a centrally-planned to a market economy. However, there has been a conscious programmatic shift from strictly humanitarian assistance towards assistance which also promotes economic growth when opportunities for longer-term development emerge. USAID activities in this area support the U.S. Embassy’s Mission Performance Plan’s goal to ensure local and regional stability.
In June 1997, the Government of Tajikistan and key opposition leaders signed a peace accord and it seemed that the country had at last established the basis for genuine peace. A number of violent incidents combined with setbacks in implementation of the 1997 Peace Accords, however, slowed USAID assistance. The closing of the U.S. Embassy in Dushanbe and the withdrawal of all U.S. citizens compounded the problem.
Support for the peace and reconciliation process has assumed utmost priority for USAID. Assistance for peacemaking is expected to lead to national reconciliation and reintegration of ex-combatants into society. Three-quarters of the available development resources in 1998 were directed towards this end. This expected result is improved capability to build an environment for peace at both the national and community level. USAID will introduce the communities most impacted by civil unrest to methods of reconciliation and reconstruction, and provide support at the national level to peacemaking initiatives.
Simultaneous support in other areas will provide tools for longer-term development initiatives. These activities will address specific development constraints in areas of income generation. Direct beneficiaries of this assistance are the communities impacted by the civil war, former soldiers who have elected to become engaged in implementing the peace agreements, and those displaced refugees who elect to resettle in designated areas.
Key Results: Two key results deemed critical to achieving this objective are: 1) increased opportunities for citizens to earn incomes, and 2) strengthened community institutions.
Performance and Prospects: Development-oriented humanitarian programs introduced since 1996 have achieved increasingly noteworthy results. The Technical Assistance Social Investment Fund (TASIF) project has enabled the formation of 70, community-based organizations to identify, contract and manage water projects in rural Tajikistan. The treatment, distribution, and maintenance of potable water systems has been one of the results of the TASIF project, thereby improving the health and well-being of villagers once subject to annual water-borne diseases such as typhoid.
A USAID-supported, small loan program for farmers permits loan repayment in kind directly to local institutions such as hospitals and orphanages, thereby benefitting both farmers and vulnerable groups. Repayment rates exceed over 90% in this program. In the agricultural and agro-processing sector, USAID-financed activities have increased crop yields in Gorno-Badakhshan, an autonomous oblast in Eastern Tajikistan with a population of 230,000; and a region that once relied almost exclusively on food aid imports. By 1999, 65% of the staple food needs (potatoes and wheat) were being met from local production as a result of a USAID-financed program. Another example of USAID assistance is a farmer’s association project from which 8,000 farm families of Leninsky District have benefited from modern inputs and basic agricultural services. USAID has provided critically needed funding to the United Nations Mission of Observers in Tajikistan as a key contribution to maintaining personnel and peacekeeping activities at a critical time in the implementation of the peace process.
USAID also provided support for the UN Development Program (UNDP) and UN Operations Support activities (UNOPS); particularly a UNDP rural reconstruction project for war-affected areas. In these areas, over 1000 former combatants are employed in rehabilitating and improving public structures damaged during the civil conflict. In 1998, USAID initiated assistance to a project of the Aga Khan Foundation to support establishment of private farmers in a war-affected area and to promote community-based measures in the Gharm region. This assistance will increase agricultural production by providing technical assistance in modern farming methods.
Other programs have improved access to basic health services for 260,000 people, and established 62 village health committees covering approximately 85,000 beneficiaries. A revolving pharmaceutical fund, established with USAID support, has enabled 17,000 patients to purchase or receive needed medications.
Possible Adjustments: It is expected that assistance through the year 2000 will continue to focus on economic and social development activities which support the peace and reconciliation process.
Other Donor Programs: Donor coordination in Tajikistan is excellent and is regarded as among the most effective in the former Soviet Union. Various donor groups meet weekly to discuss programs and exchange information on important developmental and security issues affecting Tajikistan. Lead organizations include: the United Nations (UNDP, UNOPS, UNICEF, WHO, etc.); the Organizations for Security and Cooperation in Europe; bilateral donors including various European organizations; and a variety of U.S. and international PVOs. Both the World Bank and the UNDP support initiatives that rely largely on local and foreign non-governmental organizations to deliver badly needed goods and services to many areas of Tajikistan.
Principal Contractors, Grantees, or Implementing Agencies: Groups that have received USAID funds to support the peace process, reduce suffering, and prepare for long-term development include Save the Children, Relief International, CARE, World Food Program, Mercy Corps International, Counterpart Consortium, the United Methodist Committee on Relief and Aga Khan Foundation. The Academy for Educational Development coordinates participant training.
Selected Performance Measures:
Baseline
Actual
(1998)Target
(1999)Target
(2000)Target
(2001)Number of citizens assisted in income generation 0(1996) 7070 * * * Number of community institutions Strengthened
0(1996) 238 * * * Humanitarian/crises activities** Reconciliation/development programs** *New targets are being established as part of an ongoing review.
**During FY 1998, USAID programs were being consolidated and a new strategy was being developed. Decisions were made about the relevance of the indicators for the program. Subsequently, data were not collected on these indicators.
EXPLANATION FOR SPECIAL INITIATIVES and CROSS-CUTTING PROGRAMS
Title: Special Initiatives, 119-041
Planned FY 2000 Obligation and Funding Source: $3,200,000 FSA
Proposed FY 2001 Obligation and Funding Source: $4,500,000 FSASummary: This objective includes all of the 632 allocations and transfers to other USG entities. The funding in this objective goes to the State Department for public diplomacy, humanitarian transport, international narcotics and law enforcement programs.
USAID activities under this objective meet criteria oulined in Agency guidance for special objectives and interests. That is, they are of linited scope and/or duration and respond to particular windows of opportunity. For USAID/Tajikistan, these activities generally support health care improvement.
Title: Cross-cutting Programs, 119-042
Planned FY 2000 Obligation and Funding Source: $2,250,000 FSA
Proposed FY 2001 Obligation and Funding Source: $3,000,000 FSASummary: This objective is designed to accommodate activities that make significant contributions to more than one objective. The activities included in this objective for Tajikistan are the exchanges and training program, and program development and support activities.
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Last Updated on: February 01, 2001 |
