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UNCLAS DUSHANBE 000335 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR SCA/CEN 
 
E.O. 12958: N/A 
TAGS: EINV ECON EFIN EIND EAID ETRD PGOV TI
SUBJECT: AGAINST THE GRAIN - IMPROVING THE INVESTMENT CLIMATE IN 
TAJIKISTAN 
 
¶1.  (U) SUMMARY.  The newly-formed State Committee on 
Investments and State Property will seek to attract foreign 
direct investment to Tajikistan.  However, the committee has few 
tools and resources to fully realize its well intentioned 
programs.  U.S. technical assistance will support the committee 
in its uphill battle to improve the investment climate.  END 
SUMMARY. 
 
¶2.  (SBU) In an introductory meeting with the Ambassador 
February 28, Committee Chair Sharif Rahimov explained that the 
new committee hoped to help foreign investors by creating an 
English-language website and by establishing a "one-stop-shop" 
for registration and licensing in Tajikistan.  Rahimov and his 
staff understand that the information vacuum prevents foreign 
companies from investigating investment opportunities in 
Tajikistan.  Rahimov would also like to create a fund to provide 
micro-credit to small and medium businesses.  "Medium-sized 
businesses most want a stable economy, so we need to work with 
them more than with small or big businesses," Rahimov remarked, 
asserting that both small and big businesses evade the law 
rather than work with it. 
 
¶3.  (U) The committee faces severe financial problems in 
implementing its program.  The committee has no email or 
computer network for document sharing; they lack funds for 
translating documents into English; and cannot afford to pay for 
web design.  Rahimov requested U.S. technical assistance to 
train the committee's staff, to help create the website, to 
review legislation, identify and eliminate barriers for the 
private sector, and develop registration procedures and 
investment packages for foreign investors. 
 
¶4.  (U) USAID's new Business Environment Improvement Project 
implemented by Pragma will provide the committee technical 
assistance in drafting laws, conducting analysis, and liaising 
with the private sector.  Increasing the capacity of this 
committee would positively improve the investment climate in 
Tajikistan; however, lack of funding prevents us from providing 
the necessary assistance. 
 
¶5.  (SBU) COMMENT: The creation of the new State Committee on 
Investments, like the new Anti-Corruption Agency, should be seen 
as a positive indicator that President Rahmonov and his 
government recognize the importance of these issues.  However, 
in order to have an impact beyond window dressing, the new 
institutions will need both further Government of Tajikistan 
resources, as well as foreign assistance.  Challenging the 
status quo and those who benefit from it is a long-term process 
requiring substantial political will. 
 
JACOBSON