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Economic Transformation and Institutional Development in Tajikistan

Listed author(s):
  • Iwasaki, Ichiro

In Tajikistan, economic reform was substantially delayed in the initial period of transition. The negative effects of the long lasted civil war can be grasped here. But in the late 1990's, the Government abruptly accelerated its steps towards a market economy. For instance, domestic pricing was almost liberalized between 1995 and late 1996, and the state order system was completely abolished as early as before 1996. Moreover, the Government succeeded in establishing a relatively liberal trade and exchange system by late 1998. However, in striking contrast with the remarkable success in economic liberalization, privatization of state-owned industrial enterprises showed little progress. In addition, the Rakhmonov administration strove to prolong the life of inefficient enterprises by maintaining a soft budget and institutional constraint - inherited from the communist regime. For these reasons, marketization in Tajikistan, as a whole, is greatly out of balance. Hence, the Government ought to put in operation more drastic measures in such a way as to benefit from being a late starter in its economic transition.

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Paper provided by Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University in its series Discussion Paper with number 120.

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Length: 26 p.
Date of creation: Oct 2002
Handle: RePEc:hit:piedp1:120
Note: This research work was supported by the grants named "Scientific Researches of Priority Areas (B) 603: Project on Intergenerational Equity" and the grants named "Research Project on Economic Development and Stability in Central Asia and Caucasus" (Project No. 14203004) from the Ministry of Education, Culture, Sports, Science and Technology of Japan. For preparation of this article, the Institute for Russian & East European Economic Studies (ROTOBO) also provided financial and technical support in 2001. Editorial assistance by Ms. Yuko Fujiwara is gratefully acknowledged. This paper is the extended version of my paper (2002).
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