The first investment Forum “Pamir-Invest” was conducted in Khorog recently. Local business communities had believed in this event, though there were some skeptical opinions.
What benefit got oblast from this Forum? Were the opinions of critics justified or not? What can promote to economic development of GBAO? Boimamad Alibakhshev, the chairman of association of entrepreneurs and mountain farmers had answered to all these questions.
As we know, your Association had conducted this Forum. Are you satisfied with the results of this Forum?
– It should be noted that this event was the first event with such format and topic in the oblast. Many conferences, round tables were conducted in the oblast, but they usually have scientific character, and I think they were not tied to the practice, especially to economic sphere. The initiator of the Forum was our Association, but it has become possible with the support of local executive body of GBAO and State Committee on Investment of the country. We have received about 300 applications for participation, many of whom were investors. From this number we have invited 150 participants but about 200 people took part. Among them about 20 investors, more than 50 representatives of international organizations, about 30 from nearby regions neighboring with Tajikistan countries. I am talking about it in details because I want to show to skeptics the interest of donors, investors, domestic and foreign businessmen to Tajikistan and especially to Gorno Badakhshan and other mountainous regions.
And now the results. The most important result was the communication of local entrepreneurs with international donors, foreign and domestic investors, international and domestic experts. Many of them had the first experience to present their business concept and projects. The entrepreneurs have learned about the requirements of investors to local partners from the investors themselves. A comparison of a situation, the one in which they are now, in which they should be to cooperate with investors, will give a great push to assimilate the oblast’s possibilities.
The Forum has also helped us to widely disseminate information about Gorno Badakhshan, its natural resources, real development for opportunities and problems, existing obstacles in business development.
Another valuable result of the Forum was the thing that it could gather all representatives of state bodies at the level of ministries and departments of the country, local authorities, international and local organizations of internal and external businesses to discuss potential opportunities and the ways for economic development of Gorno Badakhshan and other mountainous regions of the country. Another helpful thing was the presentations of the representatives of ministries and departments of the country, international banks and investment companies. About 14 memorandums and agreements were signed out of 30.
-Some participants believe that the reports of the representatives of state bodies were uninteresting and could not attract the investors …
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The representatives of state bodies in their presentations gave extensive information on the activities of their departments, the status and the opportunities for oblast’s development. Unfortunately, they said little about what has been done to implement the state program for Gorno Badakhshan till 2015 and what should be done in future to attract and use the investments.
It is also possible that their position does not suit investors and entrepreneurs. This is actually the same issues that concern the whole business of the country: the lack of favorable conditions and sufficient security guarantee for investments, difficult access to mineral deposits.
In today’s world lots of investors and donors are ready to invest unconditionally in certain projects.
For instance, since last year the Institute of Central Asia from US has built more than 200 schools in Kashmir, Northern Pakistan, mountainous Badakhshan of Afghanistan and through its representatives expressed his desire to build schools in the territory of GBAO. Local executive government of oblast and Ministry of education have given the permission to construct these schools but the issue of registration of investor and regulatory approval for construction was delayed several months. Unfortunately this existing procedure is for all and there is nothing to be done yet.
-Also they think that it would be better to give a word to investors, to know their opinion in what area they would like to invest…
-During the organizational work our team has been negotiating with potential participants including investors. They had no any idea about our mountainous region. Therefore, no one expressed the desire to make presentation in the Forum. They carefully studied the material, listened to the presentations and reports in the forum. But after the Forum some of them stayed for several days in the oblast, met the entrepreneurs, got acquainted with real opportunities of investment in the region.
-One could here in the Forum the opinion that it is impossible to develop a private business, that here is no need for investments but grants…
-Unfortunately this belief does exist and sometimes it can be heard from the people who have contributed to the development of the oblast and appeal to support business and entrepreneurship. And as a fact these are those people who work with grants. I would like to emphasize that personally I don’t like grants. For the past 10-15 years international organizations as well as local government have spent lots of money for the development of the region as grant. Millions of dollars were invested in support of agriculture, for instance, assimilation of irrigated land, establishment of new gardens, development of cattle breeding, poultry keeping, bee keeping, improvement of small and medium business and etc. Grants are generally very inefficient and also prone to corruption and misuse.
As for business development in GBAO it depends on the selected strategy related to economic development.
By the way, during a conversation with one of the participants from USA Agrawal Naresh, who stayed in oblast for one more week after the Forum, he emphasized that there are real opportunities for agriculture, construction of enterprises on cement production, stone processing, construction of micro Hydro Power stations and etc. And also other investors expressed confidence that GBAO with its natural resources could become a platform for the production and supply of construction materials and food products on Afghanistan market.
Now, at the request of investors, Association continues to work on a variety business projects, strengthening of business contacts of entrepreneurs with investors and international organizations. Coordinator of the projects and the web site
www.pamirinvest.tj
will continue their work as well. Also with the request of the participants the Forum will be conducted annually. I hope that donors will support the Forum, especially the general sponsor of the Forum “Pamir Invest 2011” Gesellschaft fuer Internationale Zusammenarbeit (GIZ) Gmb in Tajikistan.
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How do you rate the role of the state in oblast’s development? It does not feel at first glance…
– The state develops the strategy for the oblast regarding this issue. The Program of social economic development of GBAO, compiled by scientists and experts of the ministries and corresponding departments of the country, and in my opinion this is the national strategy for development of oblast. It considers investments both from the budget as well as through investments over 700 million dollars. Unfortunately, the implementation of the program, especially for the construction of roads, social facilities are mostly covered at the expense of state budget and state investments.
In addition, as we all know, Free Economic Zone of “Ishkashim” was established by the decision of the Government and Parliament. At the moment the administration of the Free Economic Zone starts its functioning. According to the elaborated concept it is considered to develop international trade and various production like processing of Langar marble and other semi precious stones, talcum field development and establishment of production of paints and other building materials, establishment of pharmaceutical companies on the basis of valuable medicinal herbs, processing of agricultural products…… Nobody till now is not engaged in attracting investors and investments due to lack of faith in business development in the region.
I think that the attitude towards business development in the region and support to small business is unfair and indirectly is the negation of the above programs and projects. If today we do not support our entrepreneurs, do not help them to believe in themselves and develop their business, it turns out that in near future the whole estate of the oblast including land goes to the hand of visiting and more wealthy businessmen, whose who can afford to buy everything…
