Fatimakhon Ahmedova
Tajikistan

PROBLEM OF POVERTY IN TAJIKISTAN
AND INTERNATIONAL ASSISTANCE

    Even before independence Tajikistan was the poorest of all the Soviet republics. Since independence, the effects of the break-up of the Union, civil conflict and severe natural disasters have hit Tajikistan. Today the country’s GDP is now only about 40 percent of its level at independence and the majority of the population of Tajikistan is thought to be living below the poverty line. Single women, female-headed households, children and orphans are thought to be particularly vulnerable, as are those living in more remote areas. The results of a recent UNDP/World Bank survey are still under analysis. However, official information on the level and patterns of income and expenditures suggests that poverty is a severe problem in Tajikistan.
    Although the average monthly salary has increased to US $11 in 1998 from a low of USA $ 7 in 1995, prices have continued to outstrip wage rises and so average income in relation to the cost of the consumption basket has continued to fall. It is estimated that four-fifths of the population of Tajikistan now have an income below the level of the minimum consumption basket.
    One indication of poverty is the share of income spent on foodstuffs. A commonly used threshold is that any household that spends more than 70% of its income on food is poor. In Tajikistan in 1998, the average was 71%. But not everyone has suffered equally during transition. As well as rising poverty, the last 5 years have also seen in increase in inequality.
    The structure of incomes in Tajikistan has undergone a rapid transformation since independence. The share of wage and salaries, once the primarily component of family income, has dropped substantially with inflation, and there has been an increase in other activities. This shift in the composition of household income -the rich have got richer and the poor, poorer. An initial increase in inequality during economic transition is not expected as wages adjust in a competitive labor market. However, beyond a certain level, inequality may become divisive as large income disparities give rise to social differentiation and the exclusion of certain groups from participation in society. Care must be taken that too many people do not fall into the chasm that is opening up between the new rich and new poor.
    Development is a multidimensional undertaking to achieve a higher quality of life for all people. Economic development, environmental protection, social development and human development are mutually reinforcing components of sustainable development. Human development embodies four main concepts: Productivity, Equity, Empowerment, and Participation. All policies in Tajikistan should be oriented towards increasing the participation, productivity, equity and empowerment of the citizens of Tajikistan. In order to do so, policies need to center on:

  1. Strengthening peace and security.
  2. Fostering democracy and governance.
  3. Public participation.
  4. Gender equality.
  5. Eradication of Poverty.

    Concerning the last one, the existence of poverty inhibits the full and effective enjoyment of human rights and capabilities. The goal of eradication poverty is a national, social, political and economic imperative. It can only be achieved through a multidimensional and integrated approach that combines programmes targeted at people living in poverty with policies and strategies that meet the basic needs of all. Broad based economic growth and environmental protection are crucial for raising living standards and for eliminating poverty in a sustained manner. Investments in health, and education are particularly critical in the development of human resources. It is also important to promote access to land, resources and technology for farmers, in particular women, whose role is crucial in food supply and food security.
    One of the main measures in alleviating poverty is increasing employment opportunities: The key to reducing poverty is economic growth. Balanced economic growth will both increase wages for those in work and create new employment opportunities for the unemployed. Land reform and farm restructuring will provide jobs and increase the incomes of the rural poor. The establishment of micro-credit schemes that encourage small-scale income generating activities will also do much to alleviate poverty whilst accelerating growth, as will the promotion of small and medium-sized enterprises. The empowerment of the poor and their participation in the process of development are critical for both reducing poverty and sustaining future growth.
    Both the Government and the NGO sector are already actively pursuing this new agenda. Micro-credit schemes have been set up by NGOs, TASIF (under the World Bank Poverty Alleviation Project), the UN Agencies and the Ministry of Social Protection plans to expand this type of help. Credits are targeted on activities that provide sustainable income generation and the participation of poor people.
    The first steps on the promotion of non-traditional forms of social protection have proved to be very effective. Instead of providing cash benefits, Save the Children Foundation/UK gave each family a cow, wheat and potato seeds, linen and school equipment. Thus, rather that supplying income, they supplied households with the means to generate income. The population positively received this in-kind assistance and many households have empowered to lift themselves out of poverty. The WID Bureau’s initial project in Kofarnihon, started in 1995, has provided women with the training and micro credits necessary to undertake income generating activities, while creating the new self-sustaining NGO "Bonuvon".
    Although increasing I employment opportunities is a necessary condition for reducing poverty, it is not sufficient. For those who are unable to work, either due to poor health, disability or old age, a social safety net to provide an adequate level of income remains critical.
    International assistance in the long-term is aimed at the sustainable development of local capacity. In the short term however, as the damage of the armed conflict and natural disasters to Tajikistan was estimated by the Government at over US $ 1 billion, international assistance to Tajikistan has focused both on humanitarian relief and development co-operation.