IKS
GROUP OF COMPANIES

Dushanbe, July 17, 2006 – The World Bank has recently launched the Strategy for Agriculture Sector Development in Tajikistan. The report preparation activities were funded jointly by the World Bank and the Swiss State Secretariat for Economic Affairs (SECO). The study reviews recent trends and performance of the agriculture and provides a strategic framework for policy discussions and formulation of the operational proposals in the key agricultural sub-sectors. The main thrust of this work is preparation by the Government of the forward-looking operational strategy focused on short- to medium-term positive impact on the sector output growth, rural poverty reduction and increased private sector activity.

Agriculture sector growth has made a powerful contribution to post-war economic recovery in Tajikistan, accounting for approximately one third of overall economic growth from 1998 to 2004. Sector output increased by 65% in real terms during this period, and has now returned to the level extant at independence in 1990. Rural poverty has fallen significantly in response to these trends with 65% of rural people living below the poverty line in 2004, compared to 82% in 1999. Despite this progress, there is legitimate concern that this growth is unsustainable. The presented strategy for agriculture sector development responds directly to these concerns, identifying the priority reforms and actions required to achieve sustainable growth.

“Successful completion of the Strategy is due in large part to the support and cooperation of many people in government, the private sector, and members of the rural community. A preliminary version of this strategy was reviewed with over one hundred members of government, academia and the private sector in September 2005. The suggestions contributed were much appreciated and resulted in improvements to the final document, the inclusion of a policy matrix, and the addition of technical annexes on key sub-sectors”, says Bekzod Shamsiev, leader of the World Bank team producing the report, adding that “ We look forward to working with the government of Tajikistan to support the implementation of this Strategy“.

The strategy begins with a review of the principal issues facing the agriculture sector and identifies the factors which currently prevent it from achieving its obvious potential for increased production and productivity. It then proposes a series of short and medium-term measures for action by government and the international community, as the basis for achieving sustainable growth. The major emphasis of the report is on the most critical agricultural sub-sectors: cotton, livestock and horticulture.

The analysis shows that land privatization and reform of the cotton sub-sector are the pillars on which a viable strategy for agriculture sector development must be based. These are the preconditions for sustainable agriculture sector growth. The ensuing discussion outlines the measures needed to build this foundation over the next 3-5 years. Reform will require considerable commitment by government and the donor community.

“The strategy’s recommendations are acute and now need to be integrated into the national development agenda, PRS and NDS process accordingly” said Mr Sobir Kurbanov, National Program Officer for Economic Affairs, Swiss Cooperation Office. “It is important to follow the process and to translate the study’s findings and recommendations into real policies and reforms in the agriculture sector.”

A series of shorter, policy technical notes has also been produced to guide policy makers in the areas of land reform, cotton sector reform, rural finance, institutional reform and agricultural taxation; together with more detailed technical annexes on domestic and international cotton production, livestock production, horticulture, sources of agricultural growth and rural poverty.

The Republic of Tajikistan became a member of the World Bank in 1993. Since that time, the World Bank has approved twenty-nine lending and grant-funded projects for a total commitment of approximately US$415 million, of which around US$350 million has already been disbursed.