DUSHANBE, November 8, 2008, Asia-Plus — The global financial crisis will not affect Tajikistan directly because the country’s economy is isolated from global financial market, World Bank Lead Economist, Mr. Sudarshan Kanagaraja (phonetically spelled), remarked at a press conference in Dushanbe on November 7.
However, Tajikistan should take efforts to avoid problems in the future, the expert said.
Firstly, the country ought to accumulate enough reserves in order to be able to take up loans from neighboring countries on them if problems arise in the future.
Besides, the government should also give attention to monetary policy. The monetary policy must no be allowed to fail, the expert said.
According to him, to prevent heavy impact the global crisis could have on Tajikistan it is necessary to limit financing of state-control unprofitable industrial enterprises. It is unproductive financing because the country’s budget does not have enough funds for education and health sectors.
The government should also lift all restrictions on entrepreneurial activity, in particular opening of business and agricultural activity in the regions. Such measures will help the country create additional jobs in which labor migrants returning from Russia and Kazakhstan could be placed.
Besides, in the framework of the anti-crisis plan the government must see to it that the national bank does not increase foreign borrowings because there are no means to pay off foreign debts. In this connection, Tajikistan ought to refrain from large-scale projects, the expert said.
