Tajikistan, in Reform Mode

In the six-year history of Doing Business, it has become evident that indeed what gets measured gets done. Often, the Doing Business data stimulates debate among policymakers prompting them to address challenges in the regulatory environment in their countries. And policy-makers are often inspired by other reformers. Last year, Kyrgyzstan was the first Central Asian country to make it into the top 10 reformers’ list. This year, two of its neighbors – Kazakhstan and Tajikistan – are also in reform mode.

Earlier in March, a Doing Business reform advisory team visited Tajikistan to support the Government’s business climate reform efforts. Ranked 159th out of 181 economies on the ease of doing business – and last in the Eastern European and Central Asian (ECA) region – Tajikistan seems determined to improve its business climate this year, led by the State Committee on Investments and the President’s Office.

As one of the poorest countries in the ECA region with remittances from its diaspora constituting half its GDP, Tajikistan may at first glance not strike one as an obvious reformer. But its drive to improve the business climate and its consultations with its top-reformer neighbor Kyrgyzstan may indicate otherwise. In fact, there is no better time than the present to reform in Tajikistan. As a result of the financial crisis, a lot of Tajik labor migrants are expected to return to their home country, bringing back capital with them. With a successful reform agenda, Tajikistan may provide a unique opportunity for them to make a new life in a more favorable environment for business.