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This paper presents key findings of the Joint Staff Assessment of Tajikistan's Poverty Reduction Strategy Paper Progress Report. Macroeconomic management has improved, and some structural reforms have been implemented, but serious institutional weaknesses hinder effective policy implementation. Privatization of a number of hitherto state-owned enterprises and increasing remittances from migrant workers have facilitated the development of private sector activities in the service sector, and thus contributed to a gradual diversification of the sources of growth. Good progress has also been achieved in maintaining the fiscal discipline.
This paper reviews Tajikistan’s Poverty Reduction Strategy Paper (PRSP) Progress Report. There are positive signs in the initial implementation stages of the Poverty Reduction Strategy process. The revenue performance has improved, and expenditures are managed with tight fiscal discipline. The expenditures in the social sectors were almost 43 percent of the budget in 2003. Cash compensations, increased public sector salaries and increased pensions have targeted social sector spending better. The cash compensations totaled 12 million Sm. in the 2003 budget.
The Poverty Reduction Strategy (PRS) of the Republic of Tajikistan for 2010–12 aims to serve as a medium-term program for the implementation of the National Development Strategy up to 2015. It will determine the major socioeconomic development of the country during this period, taking into account the impact of the global economic and financial crisis. The PRS, taking into account available resources and additional needs, indicates concrete actions for implementing institutional and economic reforms.
1. The Government of the Republic of Tajikistan in April 2007 formally approved its Second Poverty Reduction Strategy (PRS 2) for 2007-2009. Building on the first PRS for 2002-05, the PRS 2 presents the first three-year plan to operationalize the country's long-term development vision laid out in the National Development Strategy (NDS) for 2006-2015. The PRS 2 reflects lessons learned during the implementation of the first PRS. These include strengthening the monitoring and evaluation framework, improving the approach for prioritizing and sequencing interventions, and enhancing coordination of development partner support. The PRS 2 also incorporates key elements of its predecessor, emphasizing prudent macroeconomic management and allocating an increasing share of the budget to the social sectors, while improving the effectiveness of spending.
The International Monetary Fund (IMF) and the World Bank introduced the Poverty Reduction Strategy Paper (PRSP) process in 1999 to strengthen the poverty alleviation focus of their assistance to low-income countries. This report reviews Tajikistan s experience with the PRSP process, focusing on the effectiveness of IMF and World Bank support to the process and the extent to which the two institutions lending and non-lending activities in the country are aligned to the objectives of the PRSP approach. The rest of the report is organized as follows. Part two provides brief background accounts of political and economic developments since independence in 1991, including poverty incidence in the late 1990s. The relevance of the PRSP approach, application of the underlying principles, and preliminary evidence on results, are examined in part three. Part four considers the effectiveness of World Bank support, including alignment of that support to the objectives of the PRSP approach. The effectiveness of IMF support, including alignment of programs supported under the Poverty Reduction and Growth Facility (PRGF) and its predecessor, the Enhanced Structural Adjustment Facility (ESAF), to PRSP objectives, is assessed in part five. Part six reviews IMF-World Bank collaboration, include the Joint Staff Assessments (JSA) of the PRSP and of collaboration on country operations. Part seven presents main conclusions and lessons.
The National Development Strategy of the Republic of Tajikistan mainly complements future renewals and ensures implementation of the development process of the country. The fields of activity of the world community outlined in the Millennium Declaration comply with the national goals and priorities of Tajikistan. In accordance with the National Development Strategy of the Republic of Tajikistan and Poverty Reduction Strategy for the period of 2010–12, priority areas for further development of complex spheres in separate sectors are unified, which basically covers public administration reform and private sector development.