EU-Tajikistan Partnership

Shirin Dehkan Farm in Buston Village, A. Jomi District, Khatlan Province, Tajikistan. The rural development sector, which includes agriculture, energy and water, is one of the key focus areas of the EU's latest partnership strategy with Tajikistan. Photo by: Ganga Shreedhar / IFPRI South Asia / CC BY-NC-ND Following the signing of a peace treaty in 1997 that ended civil conflict, Tajikistan made considerable strides in economic development and poverty reduction — growth of its gross domestic product averaged 7.1 percent over the past five years, according to World Bank data. Meanwhile, the country’s poverty rate dropped significantly from 72.4 percent in 2003 to 39.6 percent in 2012. Extreme poverty likewise took a dip, from 41.5 percent in 2003 to 17.5 percent in 2009. Yet in spite of its progress, many of Tajikistan’s long-standing problems still linger. Health services have deteriorated considerably since the dissolution of the Soviet Union, suffering from outmoded health care systems and mismanagement of funds. Similarly, problems in the education sector stem from outdated curriculums and learning materials, and a shortage in teaching personnel thanks to low salaries and lack of incentives. These gaps in the education sector have led to a skills mismatch between the Tajik workforce and the labor market, causing high unemployment rates. Meanwhile, Tajikistan remains highly reliant on agriculture both for livelihoods and food supply. Agricultural activities account for the employment of 60 percent of the population, while 80 percent of rural dwellers rely on farming for their daily food consumption. Further, the agriculture sector is credited for 40 percent of the country’s tax revenue, 25 percent of GDP and 25 percent of export revenue. Environmental conditions, however, are far from ideal and cause serious constraints in a sector that contributes significantly to country’s economy. Tajikistan has a mountainous topography and finds itself in a seismic zone, making it highly susceptible to the effects of climate change and natural disasters. The country does not have enough arable land, limiting crop production to a mere 7 percent of its total land area. Much of the existing irrigation infrastructures are considered dysfunctional and lead to further soil damage, specifically through waterlogging and salinization. Additionally, smallholders lack access to much-needed financial services, farming inputs and machinery. This is compounded by the limited supply of electricity in rural areas, particularly during winter season. In light of these challenges, the government has designed its national development strategy to set long-term priorities, which will be carried out through three-year implementation plans. The government is currently on the third year of its implementation plan dubbed Strategy for Improving the Welfare of the Population of the Republic of Tajikistan, which aims to address the main causes of poverty. Six themes have been identified as crucial for this goal: public administration, private sector development, building human capital, energy security, food sufficiency and improving connectivity. The European Union has followed the government’s lead and tailored its 2014-2020 multiannual indicative program to fit these national objectives. FUNDING LEVELS AND PRIORITIES Under the new multiannual program, Tajikistan will receive 251 million euros ($277.13 million) from the EU’s Development Cooperation Instrument — up 80 percent from the previous multiyear allocation. Over the course of the seven-year partnership, the EU will focus on three main sectors: health, education and rural development. Allocations for 2014-2020 are as follows. Health The EU’s overall objective in the health sector is to reduce poverty by increasing the quality of primary health care and enabling marginalized segments of the population to avail of it. This entails scaling up leadership and governance in health systems through the development and implementation of an evidence-based policy cycle, while also supporting policy formulation, planning and midterm budget formulation. Governance in the health sector will also be supported by strengthening the managerial capacity of public institutions as well as heightening autonomy among service providers. In addition, the EU will broaden coverage, ensure availability and lower prices of health services especially for the most at-risk members of the population. To achieve these objectives, focus will be given on strengthening the delivery of primary health care particularly for the poor and most vulnerable, including children below 5 years of age, pregnant women and people with disabilities. Public finance management in the health sector will also be targeted for support. Education Support for this program component will be geared toward elevating secondary education and vocational education and training to match the demands of the labor market. The EU will contribute to the improvement of planning and budgeting processes, as well as strengthen the financial management capabilities of education sector ministries through capacity building measures. Other measures include the development of a competency-based curriculum, as well as reinforcing teacher education and overall training to foster gender sensitivity and inclusiveness. Rural development The EU intends to stimulate inclusive growth, foster sustainable on-farm and off-farm wealth creation, as well as create employment-generating opportunities in rural communities. Smallholder farmers will be supported to build resilience against natural disasters and increase livelihood security. Additionally, value chains will be strengthened and diversified to increase competitiveness and modernize small-scale farming. Further efforts in climate change mitigation will be supported through the establishment of an integrated water and natural resource management system in selected areas. To achieve this, capacity building activities will be rolled out in aid of river basin planning and management systems. Assistance will also be allocated to strengthen the management of the upper watershed catchment, while water sanitation services in target communities will be improved to increase accessibility and quality. The EU will also support the energy sector as part of its rural development initiative by financing conservation and loss-reduction efforts as well as scaling up the use of renewable energy sources. Energy efficiency and accessibility will be improved by providing assistance to small-scale hydropower governance, enhancing regulations and incentives, and refining the commercial, financial and operational performance of existing utilities. Funding will also be allocated to strengthen governance at the subnational and community levels to further decentralization efforts and improve public management in rural areas. As such, the EU will support local government units in areas of strategic planning and policy development as well as budgeting and finance. Program planning and implementation will also be improved by strengthening policies and the legal framework. This will enable local authorities to widen the scope of public services and strengthen their administrative functions. To help program implementation across all focus sectors, the EU has set aside 3.8 million euros for support measures. This amount will cover the identification of intervention areas and the design of program activities. DEVEX ANALYSIS Tajikistan is included in the EU’s broader strategy for Central Asia, which ensures heightened engagement between the two parties for several years to come. The regional strategy seeks to support policy and catalyze institutional reforms, particularly by sharing expertise and best practices with EU partners. This is echoed in the multiannual program for Tajikistan as many of the risks associated with sector interventions lie in the government’s weak institutional capacity. In the health sector, possible setbacks include insufficient budget allocation by the government and the lack of coordination between public institutions. The EU notes there is considerable risk that investments in health infrastructure and equipment from both domestic and external sources might not be enough. As such, mitigation measures will include close coordination with other donors as well as frequent policy dialogues with the government and key ministries. Periodic assessments of capital investment needs are also expected to reduce risks in this area. Similarly, factors within the government, including corruption and a lack of political will, are expected to hamper initiatives in the education sector. Policy support will be of huge importance to dampen these threats. Rural development will be most challenging as it encompasses multiple sectors, including agriculture, energy and water. On top of the government’s institutional limitations in coordinating efforts and budgeting, several environmental factors threaten program implementation. Tajikistan is prone to heavy rains, mudflows, droughts and extremely cold temperatures — all of which pose serious problems in agriculture. The EU proposes climate screening be employed to identify possible adaptation measures to counteract these environmental threats. Contact Delegation of the European Union to Tajikistan Tel: (992-37) 221-7407 Fax: (992-37) 221-4321 Email: