Regions and Countries

	Table of Contents
p. 15 of 20 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies IV. Regional Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work Program IX. Local Cost Financing

Country Assistance Plans - Tajikistan

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IV. Economic Regional Cooperation

59. Extreme distances separate Tajikistan (and the other landlocked republics in Central Asia) from the industrialized world's markets. Cooperation directed towards developing and maintaining regional infrastructure and a policy environment encouraging trade and traffic are essential elements in promoting sustainable growth and development. Also, each district of the country is isolated among precipitous mountains. Consequently, economic networks have been historically formed, with neighboring sub-regions, especially with other Central Asian republics (CARs), rather than with other domestic districts. As a result, sub-regional relations have played a leading role in maintaining and developing the economy of major cities, including Dushanbe.

60. In addition, Tajikistan was deeply isolated from the external world, including other CARs, during its five-year civil war. Neighboring countries strictly controlled their borders, fearing that the political and social instability might spread, and movement of Tajik people and goods was severely restricted, resulting in a deterioration of the overall economy. An urgent restoration of the transportation and economic network with neighboring countries is a high priority for Tajikistan to ensure further economic development. A new road construction crossing the eastern border, which was completed in 1999, is expected to be a new path to People's Republic of China (PRC) and to other parts of Asia. The recent social and economic recovery is accelerating the restoration of relationships with CARs and PRC. However, relations with Afghanistan are not yet expected due to the instability there.

61. Since early 1997, ADB has been providing a regional technical assistance (RETA: Regional Economic Cooperation in Central Asia) to help resolve sub-regional and cross-border issues among its developing member countries in Central Asia (Kazakhstan, the Kyrgyz Republic, Uzbekistan, and the Xinjiang Uygur Autonomous Region of PRC). Phase I (1997-1998) of this RETA concentrated on identifying infrastructure needs and policy issues specifically in the areas of energy, trade, and transportation. Subsequent activities in Phase II, commencing in 1999, have stayed tightly focused, emphasizing areas with a good implementation record at ADB, particularly in transport and energy. The trade environment has deteriorated and ADB's policy dialogue needs to be continued and strengthened. Following the membership of Tajikistan in 1998, a special study was undertaken to assess the suitability of Tajikistan's joining the RETA, and it is now participating in Phase II.

62. In addition to the RETA activities, steps are being taken to broaden ADB's regional initiative in areas such as rural finance and education where ADB has strong programs of assistance with the governments involved. Under the RETA on Rural Financial Systems Workshop in Central Asia, workshops were held in 1999, which aimed at contributing to capacity building for developing a sustainable rural financial system. The RETA on Sub-regional Cooperation in Managing Education Reform in CARs was approved in March 2000.

63. The Government expressed strong interest in ADB's regional cooperation activities. In addition to the areas in which ADB initiated activities related to the regional cooperation, the Government noted the importance of strengthening cooperation in the areas of water management, environmental protection, and security control.

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