VZCZCXRO5115
PP RUEHLN RUEHVK RUEHYG
DE RUEHDBU #2000 3041259
ZNR UUUUU ZZH
P 311259Z OCT 06
FM AMEMBASSY DUSHANBE
TO RUEHC/SECSTATE WASHDC PRIORITY 8970
INFO RUEHBS/USEU BRUSSELS PRIORITY 1115
RUCNCIS/CIS COLLECTIVE
RUEHDBU/AMEMBASSY DUSHANBE PRIORITY 0445
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUCPDOC/USDOC WASHDC PRIORITY 0104

UNCLAS DUSHANBE 002000 
 
SIPDIS 
 
SIPDIS 
STATE FOR SCA/CEN 
DOC FOR BISNIS 
 
E.O. 12958: N/A 
TAGS: ECON ECIN EIND EFIN EAID PREL TBIO ETRD PGOV TI
SUBJECT: "PLEASE TRAIN OUR WORKERS" -- TAJIK BUSINESS ROUNDTABLE 
 
 
¶1.  (U) Summary.  While the upper echelons of the Tajik 
government focus on immense energy projects, a frank and lively 
discussion by local businesspeople offered fresh examples of 
corruption and decay in the small and medium enterprise sector, 
especially related to customs, standards, and the lack of 
business associations.  At an Embassy-hosted round-table, five 
business representatives asked for U.S. assistance for 
vocational training opportunities for Tajik workers, bemoaning 
their lack of readiness for the modern, post-Soviet world.  End 
Summary. 
 
¶2.  (U) The Embassy hosted a roundtable October 25 with 
representatives from small and medium-sized enterprises (SMEs) 
to discuss difficulties in the Tajik business operating 
environment.  Tajik participants included Maruf Orifov and 
Gulnora Mahmudova from the Orima supermarket chain; Matluba 
Uljabaeva of the Association of Small and Medium Enterprises; 
Khalilov Jalil, a customs broker; and Tamara Khalikova of the 
Association of Construction Enterprises. 
 
¶3.  (U) Uljabaeva lamented the lack of effective business 
associations in Tajikistan, laying blame squarely on the Tajiks 
who are afraid of speaking out for themselves.  She lambasted 
the Special Commission on Business Promotion under the Ministry 
of Economy and Trade as utterly ineffective and described how 
ongoing complications with inspections and licensing, 
standardization, and taxes all hinder small business growth. 
She spoke in favor of a U.S.-Tajik Chamber of Commerce in 
Tajikistan and endorsed the EBRD's plans for a Tajik business 
council. 
 
¶4.  (U) Khalilov Jalil, a local customs broker, enumerated 
concrete examples of problems with customs and standards. 
Gosstandart, the State Agency for Industrial Standards, charges 
a heavy 0.3 to 1.5% for standardization services on imported 
goods to Tajikistan, and does not publish a specific list of 
goods that need to be certified.  They try to license all goods 
that enter Tajikistan, with sometimes humorous results.  For 
example, when a Tajik company attempted to import a plane, 
Gosstandart required the company to receive a government 
license, but Gosstandart did not have the equipment to check the 
plane.  He described the difficulties Russian Hotels is having 
with customs clearance to build the Hyatt in Dushanbe.  The lack 
of clear mechanisms for regulating customs allows massive fraud, 
waste, and mismanagement to occur.  In another example, 
Gosstandart certifies food products for three months regardless 
of whether they last three months or three years.  For the Orima 
Supermarket chain that imports 13,000 different goods, this 
presents a serious obstacle for business.  They noted that the 
market reports produced by the U.S. Department of Commerce 
BISNIS program provide some of the best information on Tajik 
customs and regulatory processes not only for foreign investors, 
but for domestic companies. 
 
¶5.  (U) Representatives marveled at certain government 
peculiarities.  For instance, the government places high 
protective import tariffs on goods even when there is no 
domestic production to protect.  Business visas to Tajikistan 
cost different amounts depending on the country of origin, and 
remain onerous to obtain. 
 
¶6.  (U) Participants all complained about the Tajik workforce's 
inexperience.  Orima has opened up its own training center for 
its employees to teach them basic accounting, management, and 
customer service.  U.S. exchanges and technical assistance could 
provide needed support in this area. 
 
¶7.  (U) Comment:  The small businesses' complaints about customs 
and inspections are familiar, but their recognition of the 
severe shortcomings in human capacity is new.  The government 
frequently touts its low-cost workforce as an incentive for 
foreign investors to come to Tajikistan, but employers often get 
what they pay for.  A workforce short on education and 
competency is not necessarily an advantage even at cut-rate 
wages.  Until human capital improves, foreign investors in 
Tajikistan could end up being as frustrated as Tajik businessmen 
themselves.  End Comment. 
 
JACOBSON