Tajikistan and ADB
In the Spotlight
Diversifying the Economy and Structural Reforms are Key for Fighting External Shocks in Tajikistan: ADB
Landlocked and possessing limited arable land and a narrow industrial base, Tajikistan is highly vulnerable to external shocks. In 2014, growth slowed to 6.7% from 7.4% a year earlier, reflecting sharp declines in remittances and aluminum and cotton exports, ADB says in its annual economic report.
ADB has agreed to boost its assistance to Tajikistan by around $20 million in 2015, raising its full year planned assistance program to $79 million.
Tatiana Evstifeeva from ADB’s Tajikistan Resident Mission explains how a national business competition made her realize the importance of the contribution of women entrepreneurs to her country’s development.
ADB welcomed Tajikistan as a member in 1998. During 15 years of partnership with the country, ADB has helped improve the welfare of the Tajik people. The partnership has promoted social development, restored or built new infrastructure, expanded agriculture production, and encouraged regional cooperation and trade.
Landlocked in the midst of east, south, and central Asia, Tajikistan boasts some of the world’s highest mountains, which cover a staggering 93% of its territory.
In 2014, Tajikistan’s economic growth eased back from 2013 levels, but remained robust. Despite these positive economic indicators, Tajikistan’s economy remains vulnerable to external shocks caused by its narrow economic base and a heavy reliance on remittances by labor migrants.
Key development challenges facing country include the lack of reliable power supply, unstable food security, poor transport connectivity, and low levels of private sector investment.
ADB is Tajikistan’s largest multilateral development partner, and plays an invaluable role in aligning the country’s aid with ongoing necessary reforms.