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Tajikistan's Political Economy

In Tajikistan, GDP per capita is Intl $ 1,816. This falls within the range of $1,816 (Tajikistan) and $11,807 (Belarus) in the Commonwealth of Independent States (see Table 7).34

Table 7: GDP per capita (Intl $): Commonwealth of Independent States (plus Mongolia) 2004

Country

 

 

GDP per capita

(Int $)

 

Armenia

5,697

Azerbaijan

4,337

Belarus

11,807

Georgia

4,829

Kazakhstan

9,982

Kyrgyzstan

3,287

Mongolia

2,373

Republic of Moldova

2,709

Russian Federation

10,865

Tajikistan

1,816

Turkmenistan

5,947

Ukraine

6,216

Uzbekistan

3,125

Source: WHO World Health Report 2006

In Tajikistan, only 6% of the land area is arable; cotton is the most important crop. Mineral resources, varied but limited in amount, include silver, gold, uranium, and tungsten. Industry consists only of a large aluminium plant, hydropower facilities, and small obsolete factories mostly in light industry and food processing.35Tajikistan counts as one of the 20 poorest countries in the world, with an estimated 80 per cent of the population below the poverty line.36 Even though many of its people continue to live in abject poverty, Tajikistan has experienced steady economic growth since 1997, but experienced a slight drop in its growth rate to 8% in 2005 from 10.6% in 2004. Continued privatization of medium and large state-owned enterprises would further increase productivity. Tajikistan's economic situation, however, remains fragile due to uneven implementation of structural reforms, widespread unemployment, and the external debt burden. A debt restructuring agreement was reached with Russia in December 2002, including a $250 million write-off of Tajikistan's $300 million debt to Russia. Tajikistan ranks third in the world in terms of water resources per head. A proposed investment to finish the hydropower dams Rogun and Sangtuda would substantially add to electricity production. If finished, Rogun will be the world's tallest dam.37 The post-independence development of Tajikistan has been badly affected by civil war, by interruptions to inter-country trade, and by its location in a politically volatile region. Between 1992-7 Tajikistan underwent widespread civil war, which required the intervention of a peace-keeping force from the CIS. Since 11th September 2001 it has also been caught up in major world events and conflicts. GDP is extremely difficult to estimate and the country has huge foreign debts. On independence, the country had a budget deficit of 45 per cent, previously absorbed by Moscow.38


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