Tajikistan : Reinvigorating Growth in the Khatlon Oblast

Abstract

This report assesses the challenges and opportunities for the development of the Khatlon oblast in Tajikistan. The report argues that the rise in the strategic significance of Khatlon must be matched by responses in public policy and a strong upturn in private investment to strengthen economic prospects. The report identifies four key reform imperatives for stimulating growth in the oblast. These are: (i) promoting cities and internal connectivity to build labor skills, realize scale economies, and diversify output; (ii) harnessing the potential of agriculture for exports; (iii) reshaping public policies to encourage entrepreneurship and reduce corruption; and (iv) retooling free economic zones to build in internal supply chains and conform to modern management practices. The report also recognizes the critical importance of building security and antinarcotics defenses, but details in these areas lie outside the scope of the work. The underlying belief behind the assessment of the growth prospects of the oblast is that a rapidly prosperous Khatlon with rising private investment will itself be stabilizing.