Identifier
Created
Classification
Origin
07DUSHANBE335
2007-03-07 11:56:00
UNCLASSIFIED
Embassy Dushanbe
Cable title:
AGAINST THE GRAIN - IMPROVING THE INVESTMENT CLIMATE IN
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UNCLAS DUSHANBE 000335
SIPDIS
SIPDIS
STATE FOR SCA/CEN
E.O. 12958: N/A
TAGS: EINV ECON EFIN EIND EAID ETRD PGOV TI
SUBJECT: AGAINST THE GRAIN - IMPROVING THE INVESTMENT CLIMATE IN
TAJIKISTAN
UNCLAS DUSHANBE 000335
SIPDIS
SIPDIS
STATE FOR SCA/CEN
E.O. 12958: N/A
TAGS: EINV ECON EFIN EIND EAID ETRD PGOV TI
SUBJECT: AGAINST THE GRAIN - IMPROVING THE INVESTMENT CLIMATE IN
TAJIKISTAN
1. (U) SUMMARY. The newly-formed State Committee on
Investments and State Property will seek to attract foreign
direct investment to Tajikistan. However, the committee has few
tools and resources to fully realize its well intentioned
programs. U.S. technical assistance will support the committee
in its uphill battle to improve the investment climate. END
SUMMARY.
2. (SBU) In an introductory meeting with the Ambassador
February 28, Committee Chair Sharif Rahimov explained that the
new committee hoped to help foreign investors by creating an
English-language website and by establishing a "one-stop-shop"
for registration and licensing in Tajikistan. Rahimov and his
staff understand that the information vacuum prevents foreign
companies from investigating investment opportunities in
Tajikistan. Rahimov would also like to create a fund to provide
micro-credit to small and medium businesses. "Medium-sized
businesses most want a stable economy, so we need to work with
them more than with small or big businesses," Rahimov remarked,
asserting that both small and big businesses evade the law
rather than work with it.
3. (U) The committee faces severe financial problems in
implementing its program. The committee has no email or
computer network for document sharing; they lack funds for
translating documents into English; and cannot afford to pay for
web design. Rahimov requested U.S. technical assistance to
train the committee's staff, to help create the website, to
review legislation, identify and eliminate barriers for the
private sector, and develop registration procedures and
investment packages for foreign investors.
4. (U) USAID's new Business Environment Improvement Project
implemented by Pragma will provide the committee technical
assistance in drafting laws, conducting analysis, and liaising
with the private sector. Increasing the capacity of this
committee would positively improve the investment climate in
Tajikistan; however, lack of funding prevents us from providing
the necessary assistance.
5. (SBU) COMMENT: The creation of the new State Committee on
Investments, like the new Anti-Corruption Agency, should be seen
as a positive indicator that President Rahmonov and his
government recognize the importance of these issues. However,
in order to have an impact beyond window dressing, the new
institutions will need both further Government of Tajikistan
resources, as well as foreign assistance. Challenging the
status quo and those who benefit from it is a long-term process
requiring substantial political will.
JACOBSON
SIPDIS
SIPDIS
STATE FOR SCA/CEN
E.O. 12958: N/A
TAGS: EINV ECON EFIN EIND EAID ETRD PGOV TI
SUBJECT: AGAINST THE GRAIN - IMPROVING THE INVESTMENT CLIMATE IN
TAJIKISTAN
1. (U) SUMMARY. The newly-formed State Committee on
Investments and State Property will seek to attract foreign
direct investment to Tajikistan. However, the committee has few
tools and resources to fully realize its well intentioned
programs. U.S. technical assistance will support the committee
in its uphill battle to improve the investment climate. END
SUMMARY.
2. (SBU) In an introductory meeting with the Ambassador
February 28, Committee Chair Sharif Rahimov explained that the
new committee hoped to help foreign investors by creating an
English-language website and by establishing a "one-stop-shop"
for registration and licensing in Tajikistan. Rahimov and his
staff understand that the information vacuum prevents foreign
companies from investigating investment opportunities in
Tajikistan. Rahimov would also like to create a fund to provide
micro-credit to small and medium businesses. "Medium-sized
businesses most want a stable economy, so we need to work with
them more than with small or big businesses," Rahimov remarked,
asserting that both small and big businesses evade the law
rather than work with it.
3. (U) The committee faces severe financial problems in
implementing its program. The committee has no email or
computer network for document sharing; they lack funds for
translating documents into English; and cannot afford to pay for
web design. Rahimov requested U.S. technical assistance to
train the committee's staff, to help create the website, to
review legislation, identify and eliminate barriers for the
private sector, and develop registration procedures and
investment packages for foreign investors.
4. (U) USAID's new Business Environment Improvement Project
implemented by Pragma will provide the committee technical
assistance in drafting laws, conducting analysis, and liaising
with the private sector. Increasing the capacity of this
committee would positively improve the investment climate in
Tajikistan; however, lack of funding prevents us from providing
the necessary assistance.
5. (SBU) COMMENT: The creation of the new State Committee on
Investments, like the new Anti-Corruption Agency, should be seen
as a positive indicator that President Rahmonov and his
government recognize the importance of these issues. However,
in order to have an impact beyond window dressing, the new
institutions will need both further Government of Tajikistan
resources, as well as foreign assistance. Challenging the
status quo and those who benefit from it is a long-term process
requiring substantial political will.
JACOBSON