ORDER OF THE GOVERNMENT OF THE REPUBLIC OF TAJIKISTAN

of May 30, 2002 No. 209

About approval of the Document of Strategy of reducing poverty

For the purpose of determination of the main directions of social and economic development of the country and priority measures for the medium-term period for ensuring sustained economic growth, the Government of the Republic of Tajikistan decides:

Approve the Document of Strategy of reducing poverty and submit it for approval in Majlisi namoyandagon of Majlisi Oli of the Republic of Tajikistan.

Document of Strategy of reducing poverty

MAIN DATA ON THE COUNTRY

 
      Столица Душанбе
   Территория                      143,1тыс.км2, плотность населения
                                   - 44,3 на км2

   Население на 01.01.2002г.       6,3416млн.чел., городское
                                   1,66959млн.чел., сельское
                                   4,6457млн.чел.

   Население занимает              7% территории
   День Независимости              9 сентября
   Административное деление Горно-Бадахшанская Автономная
                                   область: территория - 63,7тыс.км2,
                                   население0,2100млн.чел.,
                                   Согдийская область: территория
                                   26,1тыс.км2, население
                                   1,9151млн.чел., Хатлонская область:
                                   территория24,6тыс.км2,
                                   население2,2916млн.чел.,
                                   город Душанбе: население
                                   581,1тыс.чел. Районы Республи-
                                   канского Подчинения: территория:
                                   28,7тыс.км2, население
                                   1,3891млн.чел.
  Этнический состав                Таджики - 80%, Узбеки - 15.3%,
                                   Русские - 1,1%,
                                   другие национальности - 3,6%
  Языки                            Таджикскийгосударственный,
                                   Русский - язык межнационального
                                   общения

  Национальная валюта              Сомони (1 доллар США =
                                   2,3725 сомони)

  ВВП на душу населения (2001г.)   396,13 сомони
  Средняя заработная плата (2001г) 25,07 сомони (10,6 долларов США)
  Потребительская корзина (2000г.) 25,8 сомони (11,7 долларов США)
  Продолжительность жизни          68,4 года
  Уровень младенческой смертности  36,7 случаев смерти на 1000
  (2000г.)                         родившихся
  Уровень материнской смертности   43,1 случая смерти на каждые 100000
  (2000г.)                         родившихся живых детей
  Количество населения на 1 врача  463
  Доступ к чистой питьевой воде    51,2% населения
  Индекс человеческого развития    0,551

               МАКРОЭКОНОМИЧЕСКИЕ ПОКАЗАТЕЛИ 2001 год
  ВВП (в тысячах сомони) 2512112,8
  Темп роста ВВП (в %) 10,2
  Производство товаров (в % от ВВП) 52,5
  Сельское хозяйство (в % от ВВП) 22,1
  Промышленное производство (в % от ВВП) 18,7
  Услуги (в % от ВВП) 37,9
  Налоговые поступления (в % от ВВП) 14,0
  Доходы гос.бюджета (в % от ВВП) 15,2
  Расходы гос.бюджета (в % от ВВП) 15,0
  Экспорт (млн.долларов США) 651,6
  Импорт (млн.долларов США) 687,5
  Сальдо (млн.долларов США) -35,9

                     ФИНАНСОВАЯ ПОМОЩЬ - 2001 год
  Гуманитарная помощь (млн.долларов США) 82,7
  Прямые зарубежные инвестиции (в млн.долларов США) 8,1
  Общий внешний долг (в млн.долларов США) 970,0
 

INTRODUCTION

Ten years ago, after disintegration of the Soviet Union, the Republic of Tajikistan became the sovereign state. Unfortunately, at the initial stage of formation of statehood Tajikistan was fully not fated to use benefits and the benefits which are born in itself by independence. The social and economic and political problems saved decades were used by external and internal forces for kindling in the country of civil war therefore tens of thousands of people died, many tadzhikistanets were forced to leave the Homeland, and enormous damage was caused to national economy and the welfare sphere.

Having realized malignancy of effects of war for future Tajik people, the Government of the country, after recovery of the constitutional power, took the firm political policy directed to peace-making and national consent exclusively peacefully - by dialogue. The way to peace for Tajikistan was long and difficult. For achievement of peace and consent it was necessary to make occasionally incredible efforts, to show strong will, self-control and the sequence. Signing of the General agreement about the world and national consent and complete implementation of his arrangements put the last end to one of the most long and fierce conflicts in the former Soviet Union. Along with search of ways of peace-making the Government of the country had to solve also problem of transformation of economy as it was only this way possible to remove it from the hardest crisis, to eliminate effects of the civil conflict, and also natural disasters falling upon the country.

As a result of the performed measures for reforming of economy in Tajikistan the significant progress in macroeconomic and financial stabilization was made. Number of measures for the structural transformations necessary for effective functioning of market economy were undertaken. However the social and economic situation in the Republic of Tajikistan still remains very difficult.

Tajikistan takes the 103rd place among 174 estimated states on index of human development. Now the majority of the population of Tajikistan live at the level or below the poverty line. The poverty determined by the level of the income and consumption, the access level to education, health care, water supply, different energy resources, transport services, mass media first of all is reflected in socially unprotected segments of the population. Especially brightly it is expressed in the rural zone.

At the same time, Tajikistan is rich with minerals, has the huge potential of natural resources based on which the companies of ore mining industry, the industry of construction materials, pharmaceutical industry, power, and also the company for conversion of cotton-fiber, silk and fruit and vegetable products can be constructed.

For the purpose of increase in level of living of the population and the solution of social and economic problems. The president of the Republic of Tajikistan E.Sh.Rakhmonov initiated development of the comprehensive Document of Strategy of Reducing Poverty (DSRP). Goal achievement of DSSB taking into account economic realities is priority activity of the Government of the Republic of Tajikistan.

The document confirms vital need and importance of deepening of economic transformations and ensuring sustained economic growth. On this basis creation of benefits for the majority of the population, especially for poor segments of the population, from economic growth by means of the mechanisms determined in DSSB is supposed. In DSSB the main directions in which it is necessary to go in reducing poverty are determined. The document serves as starting point for determination of specific actions on reducing poverty in the country.

By preparation of this document were used the Interim Document of Strategy of reducing poverty, President's letters of the Republic of Tajikistan in Majlisi Oli (Parliament) (2001-2002g.g.), poverty assessment in Tajikistan, the Program of the state investments and technical assistance for 2001 - 2003 years, data of the State committee of statistics of RT, the offer of the ministries and departments, and also results of social researches of number of the international organizations working in Tajikistan.

The Government of RT plans the developed strategy to perform with assistance of the International Monetary Fund (IMF), the World Bank (WB), the Asian Development Bank (ADB), the Development program of the UN (PROON), other international financial institutions and the donor countries.

1. PARTICIPATION PROCESS

For development of the Document of Strategy of Reducing Poverty (DSRP) the Presidential decree of March 24, 2000 created the Presidential Working Group (PWG). The leading scientists and officials of Tajikistan entered into structure of group which was headed by the Counselor of state of the President of the Republic of Tatarstan on economic policy. In October, 2000. The Interim Document of Strategy of Reducing Poverty which formed the basis of development and creation of final DSSB was developed by presidential working group. The interim document was published in the central national newspapers in three languages: Tajik, Russian and Uzbek.

For the purpose of ensuring broad participation of the public 9 sectoral working groups into which representatives of Parliament, Government, regional authorities, research institutions and universities, private sector, NGO and other sectors of society in the following directions entered were formed: macroeconomic; reform of public administration; social protection; education; health care, agricultural industry; privatization, work and private sector development; infrastructure and communication; tourism, rest and environmental protection. For coordination of work of PRG the Coordination Center (CC) was created.

From March to June, 2001 56 seminars and "round tables" on discussion of the sectoral developments of the Document of strategy of reducing poverty which covered more than 2000 participants from all sectors of society were held. The purposes, tasks, and also the taken measures and actions of the Government for reducing poverty were repeatedly lit in media (on television and radio). In addition to seminars and round tables 2 researches were for more information conducted: poverty research by creation of focal groups; research NGO and local communities of problems of poverty. These researches were complete respectively in March and May, 2001.

Local consultants prepared protocols of all seminars with the offers and recommendations received at seminars. Part of these offers and recommendations were considered in case of completion of sector documents DSSB. The international organizations also took part in preparation of DSSB also (the IMF, the WB, ABR, PROON). Consultants of these organizations provided comments under draft documents of sectoral working groups. Process of participation with assistance of the Government was highly appreciated as within the country, and the international community during the Advisory meeting of the donor countries which took place in May, 2001 in Tokyo, Japan.

2. POVERTY IN TAJIKISTAN AND THE FACTORS DETERMINING IT

The poverty problem is not new to Tajikistan as before finding of independence in the country the lowest income per capita among the Soviet republics in case of the highest percent of the population living in poverty was observed.

In the most part, the economic policy which did not consider comparative advantages of the country and its regions became the reason for that.

The structure of economy inherited since 1991 was not competitive in new economic environment, and civil war delayed implementation of structural reforms. Transition period and war weakened official and unofficial mechanisms of social protection that brought into increase in number of the poor. As a result of transition from command and administrative economy to market, changes of relative prices, gap of economic bonds with the republics of the former USSR, the termination of the budgetary appropriations from Moscow constituting 40% of the budget of Tajikistan and long civil war, GDP of the country it was reduced in high gear since 1991 up to 1996. It led to mass release of labor power, generally in the latent form. The high rate of inflation led to reducing real incomes of the population, promoted increase in economic disparity and undermined the investment climate.

Self-produced insufficient level led to increase in import, gap in the balance of payments and devaluation of national currency. In these conditions the external debt of the state quickly grew, payments on its servicing undermine stability of fiscal system now.

Poverty in Tajikistan is the multidimensional phenomenon. As showed different researches, the poverty determined on the basis of the income and consumption is very high. It takes place mainly because of limitation of the opportunities providing the sufficient level of the income that is confirmed by the low salary level, especially in agricultural industry, and also limited access of the population to production assets and the decreasing access to such main state services as education, health care, water supply.

Poverty level considerably varies depending on the used criteria of determination of poverty. The poverty line in Tajikistan varies from 17 to 97% depending on the criteria developed by the different international and domestic organizations. By results of one of researches, about 60% of the population consider themselves the poor. The government accepted population self-assessment as criterion of determination of poverty.

The actual income of average tadzhikistanets is very low and consists generally of the income from sale of food and household goods. The size of cash social benefits is insignificant. Among those households which are considered the poorest monetary compensations and the public assistance constitutes only 8% of their total income. It is also important to note that the main source of the income constitutes only a third of all income among the lower quantile (the fifth part) of poor families and about a half among the upper quantile.

Economic disparity increased. Expenses of group of the richest households exceed expenses of group of the poorest households four times. The poorest households spend about 80% of the income for food. They cover the most part of the needs for food due to own natural production and the humanitarian assistance. Results of the Overview of the level of living in Tajikistan (OUZhT) which is carried out in 1999 show that nearly three quarters of the population of Tajikistan live in the rural zone to which share the most part of extremely poor population (% 23,4), in comparison with the city (18.6%) falls. In regional section, from all poor population of the country of 45,7 of % live in Khatlon Region, % 26,1 - in Sughd area, % 19,2 in RRP, 6, 9%v GBAO and only % 2,1 - in Dushanbe. However the poorest population is concentrated in GBAO (39%).

The most vulnerable national groups of society - children, the elderly population and patients or disabled people. The risk of poverty sharply increases depending on number of children aged up to 15 years living in household. Only 7% of the lonely people living in households without children are the poor in comparison with 31% of those who live in households with 5 and more children. As a result of last civil war, the problem of "street children" became aggravated. Children under institutional guardianship cause special concern in respect of their financial, physical, intellectual and emotional development. There is tendency that such children face problems of receipt of further education or perspective work.

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