14 October, 2020

Session 1. Issues of conducting analysis and preparation of recommendations for improving the investment climate in the field of information and communication technologies

Excellency, Mr. Davlatali Said, First Deputy Prime Minister

Excellencies Representative of Ministries and government entities.

Colleagues from Development Partners 

Thank you for the opportunity to make some remarks from UNDP’s experience of investing in ICT to advance socio-economic development and good governance, as prioritized in the National Development Strategy 2030 of Tajikistan. 

As we know, the SDG agenda recognizes the potential of ICT and global interconnectedness in accelerating human development, job creation, financial inclusion, sustainable food security and overall socio-economic well- being of people and SDG9 in particular focuses on ICT infrastructure, inclusive industrialization, innovation and smart solutions. The on-going COVID19 pandemic has further amplified the necessity and urgency for transformation to digital economy, contactless transaction, e-governance, digital public service delivery. Investing in this “new normal” of how people and institutions would work, interact and communicate in future will accelerate significant behavior change but will also determine success or failure of any nation in recovering from socio-economic impact of the pandemic.

Like in all the countries, In Tajikistan too we have witnessed that COVID-related restrictions pushed people and businesses to shift to online service delivery and marketing; and use of mobile and lo-touch technologies to manage finances and payments. While COVID has been an unexpected catalyst for the process of digitization, UNDP’s recent assessment of socio-economic impact of COVID-19 on SMEs and lives, livelihoods of vulnerable population revealed that very few people and businesses were actually able to utilize the opportunities offered by digitalization, despite recognizing its potential benefit to them. For instance, only 22.5% of SMEs surveyed could use text messaging service and only 4.1% of businesses used web-based resources for marketing because of their low computer literacy, lack of guidance and advisory services for on-line transactions; cost and speed of mobile services and internet connectivity.

Government with support from UNDP and SDC is undertaking civil registration reforms and moving to digital registration of vital civil acts which will also pave way for digital governance and public administration in the country. However, in this year because of the pandemic and necessary precautions and technical factors, we witnessed 30% drop in registration. In case pandemic precautions become the new norm then we would need to find alternative ways for people to continue with registration, perhaps on-line from home and pay for the services on a digital platform. 

In another rapid assessment conducted by UNDP in 2019 on innovative financing and financial inclusion revealed lack of qualified IT specialists, even for basic skills like data entry in various sectors with potential for digital service delivery. Banking sector in specific mentioned difficulty in finding skilled coders and programmers, despite offering good salaries. The study also found lack of teachers and training institutions for computer literacy courses across the country but especially in rural areas and in general very few women enrolment.

From the analysis and our experience, we would like to highlight that while investing in the ICT hardware including high speed ICT infrastructure, policy reforms, incentives and regulatory framework is absolutely essential, we cannot ignore the importance of strengthening human capacity to use the ICT to improve their lives. There has to be equal attention given to enhancing investment in knowledge and skills development, especially of the digital generation- the young men and women who comprise 70% of Tajikistan’s population. 

Transformation to digital economy and digital governance cannot happen without investing in widespread basic computer literacy and specialized IT courses in rural and urban areas to both men and women at affordable cost. It is imperative to invest in bridging the digital divide and gender divide in ICT.  This could also be a potential area for south-south cooperation to bring qualified trainers and teachers to support Tajikistan in jump starting ICT skills development.

There is also a need for a comprehensive study on demand for IT skills in different sectors to better understand capacity gaps, which then should lead to undertaking education reforms and manpower planning to address demand and supply in the job market.  

Also, there is a huge potential to invest in designing of innovative and user-friendly public service delivery apps for on-line utility payments, banking transactions and loans, distance-learning, medical consultations, business advisory services and a host of digital solutions. UNDP and many other development partners have been investing in un-leasing the growing interest of young men and women in innovation, digital technology and digital entrepreneurship by supporting them in generating innovative business ideas for sustainable development and platforms to pitch their ideas for financing. Already there are some very good development ideas and emergence of technology start-ups, etc. It is the right time to capitalize on the appetite of young men and women to learn and be part of development solutions, however efforts are needed to set up an enabling ecosystem for start-ups, business incubation and financing for innovations. 

Excellency, I once again thank you for the opportunity to share some ideas and assure you of UNDP’s commitment to continue supporting capacity building for digital economy and governance for inclusive, equitable and  sustainable development of Tajikistan.