Tajikistan

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Development Challenge The USAID Program Other Program Elements Other Donors Program Data Sheets Summary Tables USAID Search: Tajikistan Previous Years' Activities 2002, 2001, 2000, 1999, 1998, 1997 Last updated: 31     (text taken from the FY 2003 Congressional Budget Justification) THE DEVELOPMENT CHALLENGE: Tajikistan is a front line state in the War on Terrorism and, despite risks from its own Islamists, quickly gave the United States necessary access for the intervention in Afghanistan. Tajikistan's role in the conflict and humanitarian relief effort has been essential. The most disadvantaged of the Central Asian Republics (CARs), Tajikistan has limited resources, is landlocked with few transportation links, was ravaged by several years of civil war, and is one of the poorest countries in Asia. Lawlessness and trafficking in both arms and drugs remain U.S. concerns. Notwithstanding its disadvantages, Tajikistan is successfully, if haltingly, making a transition to civil order and democracy. Despite several potentially destabilizing events during 2001, e.g. the assassination of cabinet officials by unknown assailants, the various parties remain committed to peace even as they struggle for influence within the political landscape. The government continues to work to maintain a balance among various factions, such as between the president's party and former opposition members integrated into the government following the 1997 Peace Accord. The peace process resulted in a unique coalition government of Islamists and former Communists. Yet, governance and rule of law remain weak. In 2001, Freedom House characterized Tajikistan as "not free", and its political rights and civil liberties ratings are both 6 out of 7, with 7 designated as the lowest degree of freedom. Corruption and local abuse of power are pervasive. Anecdotal evidence suggests that bribery is necessary for most transactions with the government, as well as for health services and training. Weak government institutions, deteriorated infrastructure and social services, and a largely subsistence (and criminalized) economy limit the pace of reform. Reforms are, however, moving forward, and the economy grew by about 10% last year. Since privatization began in 1991, Tajikistan has privatized nearly 5,500, an estimated 83% of its small state-owned properties. The agricultural sector, which employs over 60% of the population, is seriously constrained by the deterioration of the country's irrigation infrastructure and a lack of quality inputs. The economy as a whole remains overly dependent on its two main exports, cotton and aluminum, the earnings from which are controlled by politically connected elites. Tajikistan has the lowest per capita GDP ($286) among the 15 former Soviet republics, and inflation in 2001 was 35.5%. Thus far, the government has not been able to establish the rule of law sufficiently to attract the domestic and foreign investment needed to spur economic growth. The perceived inability of the government to prevent Islamic extremists and drug traffickers from transiting Uzbekistan prompted the Government of Uzbekistan to severely restrict movements across their common border, effectively shutting off much of Tajikistan's international trade and migratory labor. Two successive years of drought have further exacerbated the country's economic condition. USAID programs are expanding in Tajikistan. One of the poorest and weakest countries in Asia, it is nevertheless making surprising headway with economic and political reforms and is the only Central Asian republic with a coalition government. Tajikistan's social indicators reflect the seriousness of the problem it faces: 80% of the population is below the poverty line, with 17% in extreme poverty. A recent national nutritional assessment found 17.3% of those surveyed suffering from acute malnutrition, with 4.2% with severe malnutrition, and 37.9% with chronic malnutrition. Tajikistan has the highest rates of infant mortality in Central Asia, with an estimated 116 deaths per every 1,000 live births. According to World Bank estimates, Tajikistan's total external debt is slightly over $1.2 billion, 129% of GDP, mostly to Russia and Uzbekistan. Debt servicing is expected to require 50% of total government revenues in 2002. There has been no negotiated reduction in Tajikistan's debt despite a net present value of debt above 400 % of revenues, well above the Highly Indebted Poor Country threshold of 250%. THE USAID PROGRAM: FY 2002 Estimate: $43.37 million FY 2003 Request: $22.50 million To meet these challenges, USAID's goal in Tajikistan is to expand opportunities for citizens to participate in economic and political decsion-making, to increase their livelihoods and to improve their quality of life. The Program Data Sheets provided below cover four objectives for which USAID is requesting funds: small enterprise and agriculture, primary health care, democratic culture and institutions, and water and energy management, with cross-cutting objectives in conflict mitigation, youth and education, gender, anti-corruption and rule of law. The State Department's lifting of security restrictions is alleviating the primary constraint to USAID programs in Tajikistan. FY 2002 funds will be used to implement the program as planned and described in the FY 2002 Congressional Budget Justification. Supplemental funding from the War on Terrorism will be used for increased efforts in micro-credit, irrigated agriculture, and community development. With the War on Terrorism, USAID will place greater emphasis on conflict mitigation through media, education and community development. New initiatives include broader community development, an irrigation management pilot, micro-credit training and legislation, a Regional Trade Network, and expanded infectious disease control. Specific activities to be funded by FY 2002 and FY 2003 appropriations are described in the Program Data Sheets that follow. USAID will use the full $17.85 million of the FY 2003 request to fund ongoing efforts. On-going Programs for Which No FY 2002 or FY 2003 Funding is Requested: USAID is not requesting new funds, but is continuing to expend funds already appropriated for the following: Number: Title: Last Notified: Planned Completion: 119-031 Human Suffering FY 02 CBJ, p. 632 FY 2002 119-041 Special Initiatives FY 02 CBJ, p. 632 FY 2002 OTHER PROGRAM ELEMENTS: Funding from USAID's Child Survival Matching Grant program will continue a successful primary and reproductive health care activity in the isolated and under-served Zarafshan Valley in northern Tajikistan. USAID/CAR takes advantage of several centrally managed programs, including the agreement with the Centers for Disease Control and the Monitoring and Evaluation to Use and Assess Results (MEASURE)/Evaluation Program. The Office of Foreign Disaster Assistance has given disaster grants and has had a presence in Tajikistan since October 2001. The Farmer-to-Farmer program, managed by USAID/Washington, is also active. The Eurasia Foundation has a modest small grants program in education, small business and civil society. The Departments of Defense, Agriculture (food aid), and State also manage programs complementary to USAID field activities in various sectors. OTHER DONORS: The World Bank is Tajikistan's largest donor, providing loans in health reform and private sector development. The United States is the largest bilateral donor, providing assistance through USAID, the State Department, USDA (food aid), and others. The second biggest bilateral donor is Japan, which provides assistance for rehabilitation of the agricultural sector, and food security and poverty reduction programs through international NGOs, many of which are also partners of USAID. The European Union supports a number of humanitarian programs through the European Commission Humanitarian Office (ECHO). Other bilateral donors include Switzerland, Germany and the United Kingdom. Multilateral donors include the Asian Development Bank (social service sector rehabilitation, transportation, irrigation, hydroelectric generation) and the European Bank for Reconstruction and Development (telecommunications and airport navigation). USAID works closely with the Swiss Development Agency on water management issues, judicial reform and training, and conflict-mitigation activities, and with ECHO in implementing humanitarian assistance programs. Program Data Sheets 119-0131  An Improved Environment for the Growth of Small and Medium Enterprises 119-0161  Improved Management of Critical Natural Resources, including Energy 119-0211  Strengthened Democratic Culture Among Citizens and Targeted Institutions 119-0320  Improved Utilization of Quality Primary Health Care for Select Populations 119-0420  Cross-cutting Programs Country Background Information Resources     CIA Factbook Library of Congress National Geographic Country Maps State Dept. Country Information

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