By Abdul Kerimkhanov
Tajikistan is among the 10 most successful economies in the world in terms of ease of doing business in the Doing Business 2020 ranking of the World Bank Group, according to the WB’s updated ranking on October 24.
The WB’s Doing Business 2020 report pointed three interrelated business climate reforms implemented in 2018 that allowed Tajikistan to become one of the top 10 most successful economies in the world in terms of ease of doing business.
As WB office in Tajikistan informed that the country has taken a big step forward, taking 106th place in the world with an estimate of 61.3 out of 100.
“Against the backdrop of ambitious development objectives and emerging trade opportunities, Tajikistan has realized that an improved business climate for small and medium-size enterprises holds the key to investments, innovation, employment generation, and sustainable domestic resource mobilization,” said Jan-Peter Olters, World Bank Country Manager for Tajikistan.
Among the reforms carried out by Tajikistan are the introduction of a social identification number in the company incorporation certificate at the time of registration; improved access to credit by launching a unified, modern and notice-based collateral registry, the establishment of a functional secured-transactions system, the broadening of the scope of assets that can be used as collateral, the allowance of the general description of debts and obligations, the granting of absolute priority to secured creditors, and the provision of a time limit and clear grounds for relief from automatic stays during reorganization procedures; facilitation of the export of goods by prioritizing customs clearance of perishable products.
The most significant improvements in Tajikistan were related to obtaining loans. The expansion of legislation on secured transactions facilitated the financing of entrepreneurs, making it less risky and less costly. Currently, Tajikistan’s assessment is 11 out of 12 in terms of the effectiveness of the legal rights index and ranks 11th in the world on this indicator.
Tajikistan also has improved the process of registering new business entities. Now entrepreneurs receive a social identification number at the time of registration of the company with the Tax Committee. The time required to start a business in Tajikistan was reduced to seven days, which is less than the regional average.
Over the past decade, Tajikistan has made steady progress in reducing poverty and growing its economy. Between 2000 and 2017, the poverty rate fell from 83 to 29.5 percent of the population, while the economy grew at an average rate of seven percent per year.
The National Development Strategy NDS to 2030 sets a target of increasing domestic incomes by up to 3.5 times by 2030 and reducing poverty by half. This target is achievable if Tajikistan transforms its current growth model and gives the private sector more opportunities to invest, create jobs, and contribute to the economy.
Abdul Kerimkhanov is AzerNews’ staff journalist, follow him on Twitter: @AbdulKerim94
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