The World Bank notes that since independence, Tajikistan has done a remarkable job in reducing poverty. Between 2000 and early 2009, poverty reportedly fell from over 83 to about 47%, and it fell further from 37 to 30.3% between 2012 and 2016. Tajikistan’s pace of poverty reduction over the past 15 years has been among the top 10% in the world, according to the World Bank.
However, progress has been slower in reducing non-monetary poverty, the World Bank notes. Recently available micro-data suggest that limited or no access to education, heating, and sanitation are the main contributors to non-monetary poverty. These three are the most unequally distributed services, with access to education varying by income level and heating and sanitation by location.
The World Bank suggests that to achieve higher growth, Tajikistan should implement a deeper structural reform agenda designed to: (a) reduce the role of the state and enlarge that of the private sector in the economy through a more favorable business climate, thus increasing private investment and generating more productive jobs; (b) modernize and improve the efficiency and social inclusiveness of basic public services; and (c) enhance the country’s connectivity to regional and global markets and knowledge.
Averaging about 15% of GDP annually since 2008, total investment is low by regional and international standards. The main obstacles cited by local and foreign entrepreneurs are inadequate infrastructure, in particular an insufficient and unreliable energy supply; weak rule of law, especially with regard to property rights; and an overly burdensome tax policy and administration.
The Government of Tajikistan has reportedly set goals to be reached by 2020: to double GDP; expand the middle class; and reduce poverty to 20 percent.
