DUSHANBE, December 11, 2008, Asia-Plus — Despite expectations of some experts, the global financial crisis may have quite serious effects on developing economies, including Tajikistan, Ms. Gulchehra Bozorova, chairperson of the Majlisi Namoyandagon (Tajikistan’s lower chamber of parliament) Committee on Economy, Budget, Finance and Taxes, told Asia-Plus today.
According to her, the crisis will affect all countries in the post-Soviet area “but in deferent extent and with different consequences.”
“I think that no country and no market will be able to avoid losses,” said Bozorova, “In my opinion, the developed countries and those developing countries that have not yet realized that their future is directly connected with development of their domestic economy will be affected by the crisis most.”
MP expects the global crisis to lead to decrease in investments, increase of prices of basic food products, increase of inflation, and decrease in bank lending.
The crisis may also lead to decrease in labor migrants’ remittances that will bring to increase in the number of poor people in the country, she said.
“To mitigate effects of the financial crisis it is necessary to ensure efficient distribution of state funds, increase the revenue part of the budget through increasing tax payments, and attract of foreign investments and external aid,” Bozorova said.
