Though Foreign Minister Zafiri has stated that Tajikistan has an “open door policy” to foreign investment, barriers do remain:
A. Two official comments from the United States:
On April 13, Deputy Assistant Secretary of State for South and Central Asian Affairs Evan Feigenbaum announced that Tajikistan's investment climate is hindered by its high level of corruption, and the continued lack of democracy, rule of law, and press freedoms. He also announced a 53% increase in U.S. aid to Tajikistan, to USD 50 million, directed toward infrastructure and less to humanitarian relief. Basic math: That would mean that previous annual aid was below USD 33 million.
Ten days later, US Ambassador to Tajikistan Jacobsen reiterated the problems of corruption in Tajikistan as a barrier to Western investment. Twenty-two different organizations regulate and permit business in Tajikistan. Entrepreneurial start-ups therefore take 60 days, as opposed to the U.S. average of about five.
B. In related news, sometimes contradictory to US official statements:
In a kind of triple dynamic between mining investment, hydropower utilities, and bilateral state-to-statediplomacy, Tajik investment appears to rely less on Russia and China. Iran's investment in Tajikistan seems to be increasing, along with increased potential investment from other Middle Eastern states.
Tajikistan traded a northward neighbor as an investment partner in Tajikistan's aluminum to seek a more Westerly one‚ in Dubai. On a visit to the United Arab Emirates, His Excellency President Rakhmon visited Dubai Aluminum (DUBAL) on April 12th; Tajikistan and Russian aluminum (RUSAL) decided not to continue their joint investment on the Rogun hydroelectric power plant on April 24th. It remains to be seen if DUBAL picks up the deficit in hydropower or aluminum mining. It could be that aluminum extraction infrastructure required Rogun plant upgrades.
But if not, power plants remain a focus for investment. Iran's news agency IRNA reports that Iran might help develop Tajikistan's Sangtoudeh-2 power plant.
The TajIran venture in tractor production, however, has hit some snags due to lack of investment and unfettered tariffication for imported parts. IRNA reported no changes in tariffication, but new banking measures will be undertaken so that Tajikistan's farmers may purchase tractors. Would this be at the high, tariff-added price? If so, can Tajik agriculturists take the hit?
About that free trade: maybe Ambassador Jacobsen has a point.
Photos: U.S. Department of State; enrin.grida.no
A few months ago, I wrote about the early stages of the conflict in Ukraine through the lens of Sun Tzu’s The Art of War. While it appears likely that the war will carry on into the foreseeable future, enough time has passed for us to make an honest assessment of each side’s relative […]
The Ukrainian Army has made dramatic strides in the last few weeks. Ukraine’s tactical commanders have outfoxed their Russian counterparts, and by issuing a feint towards the south the UA has been able to earn substantial gains in the north of their country. The impact of these efforts have been compounded by the steady stream […]
In mid-May the Irish political party, Sinn Féin, won the plurality of seats in the Northern Ireland Assembly. Many American readers might not fully understand the significance of Sinn Féin’s political victory- but rest assured that subjects of the United Kingdom and a wide range of political movements the world over have heard the message […]
The first wave of the Russian offensive in Ukraine has fallen short of Russian autocrat Vladmir Putin’s ambitions. Most analysts deduced that Putin had hoped to achieve a decapitation strike of the Ukrainian government- taking Kiev and replacing Ukrainian President Vladimir Zolinski with a pro-Kremlin voice. Kiev has been threatened repeatedly through the course of […]
On the weekend of March 26th, the notorious MS-13 gang went on a massive killing spree in El Salvador which left more than 70 people dead by Sunday. Even for a country where powerful gangs hold massive sway, this recent tragedy stands out considering that it was the bloodiest day on record since the civil […]
