“Problems and perspectives of the business development in Free Economic Zones”

September 27, 2019

Opening Statement by Naoko Takasu, UNDP Deputy Resident Representative a.i.

September 27, 2019, Serena Hotel

Mr. Tojiddin Jurazoda, Deputy Minister of Economic Development and Trade of the Republic of Tajikistan,

Representative from Organization for Security and Cooperation in Europe,

Ladies and gentlemen, a very good morning!

On behalf of the United Nations Development Programme, it is a great pleasure to be here with you today at this round table to discuss opportunities and challenges for private sector investment in free economic zones in Tajikistan.

I really mean it, because my first job, almost 25 years ago, was in private sector to promote Japanese direct investment in Asia, Europe, Middle East and Latin America. I still remember my visits to the special economic zone in Shenzhen in 1997-1998.  Therefore, I am excited to learn about situations in Free Economic Zones in Tajikistan today. 

What I learned from colleagues is that the Free Economic Zones are being promoted by the Tajikistan Government as a tool for industrialization and supporting under-developed regions. I also learned that Tajikistan has achieved noteworthy progress; more than 70 national and foreign companies successfully operate in free economic zones. 

For the past few years UNDP, jointly with other partners, was providing support to the Government of Tajikistan for the development of strategies and programmes to improve trade and export policies, the investment climate and business environment. We supported functioning of the inter-ministerial working groups and Public-Private Dialogue platforms at the national and regional level. UNDP organized a number of study visits to the advanced foreign Free Economic Zones for national experts. As a result, new forms of Free Economic Zone administration and new services were introduced. We contributed to the Business to Government dialogue with participation of private sector, experts, and civil society which resulted in adoption of the new Law on operation of free economic zones.

Here are some of questions I have today: are all existing free economic zones fully occupied and functional?  Are companies getting promised incentives?  Is technology transfer taken place?  Is competitiveness of products in Tajikistan increasing?  Are rights of employees and workers protected?  Are surrounding communities of free economic zones benefited?  If not, let us discuss what are the bottlenecks and what the Government, private sector and development partners can do to remove such bottlenecks.

I would like to conclude my remarks by thanking our partners in the Government of Tajikistan and particularly the Ministry of Economic Development and Trade for their leadership and commitment to promotion of investment and for the excellent cooperation with UNDP and other development partners in this sphere.  UNDP is committed to continue supporting to the Ministry’s efforts to achieve the goals set by the National Development Strategy 2030 and the Agenda 2030 for Sustainable Development through improving the investment climate.  I would also like to thank all of you here today to join this round table discussion.  I look forward to hearing practical recommendations and the way forward to support the Government of Tajikistan to maximize the benefit of Free Economic Zones. 

Thank you.