Tajikistan. Tajikistan: trends in its Human Development Index indicator

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1 Tajikistan Demographics of Tajikistan Tajikistan has a population of 7,349,145 (July 2009 est.)of which 70% are under the age of 30 and 35% are between the ages of 14 and 30. Tajiks who speak Tajik (a dialect of Persian) are the main ethnic group, although there are sizable minorities of Uzbeks and Russians, whose numbers are declining due to emigration. The Pamiris of Badakhshan, a small population of Yaghnobi people, and a sizeable minority of Ismail s are all considered to belong to the larger group of Tajiks. All citizens of Tajikistan are called Tajikistanis. Tajikistan: trends in its Human Development Index indicator In 1989, ethnic Russians in Tajikistan made up 7.6% of the population, but they are now less than 0.5%, after the civil war spurred Russian emigration. The ethnic German population of Tajikistan has also declined due to emigration and was 38,853 in 1979, but the German community has almost vanished since the collapse of the Soviet Union. The official and vernacular language of Tajikistan is Tajik although Russian is routinely used in business and communication. The Constitution mentioned Russian as the "language for inter-ethnic communication", but an amendment passed in 2009 removed all Russian's official roles. Despite its poverty, Tajikistan has a high rate of literacy due to the old Soviet system of free education, with an estimated 99.5% of the population having the ability to read and write. The majority of the population follow Sunni Islam. In 2009 nearly one million Tajik men and many women worked abroad (mainly in Russia).More than 70% of the female population lives in traditional villages. 1

2 Economy of Tajikistan Tajikistan was the poorest republic of the Soviet Union and is the poorest country in Central Asia as well as in the former Soviet Union today. In 2006, GDP per capita of Tajikistan was 85% of 1990s level,while the population has increased from 5.3 million in 1991 to 8 million in % of Tajikistan's GDP comes from immigrant remittances (from Tajiks working in Russia). The current economic situation remains fragile, largely owing to corruption, uneven economic reforms, and economic mismanagement. With foreign revenue precariously dependent upon remittances from migrant workers overseas and exports of aluminum and cotton, the economy is highly vulnerable to external shocks. In FY 2000, international assistance remained an essential source of support for rehabilitation programs that reintegrated former civil war combatants into the civilian economy, which helped keep the peace. International assistance also was necessary to address the second year of severe drought that resulted in a continued shortfall of food production. On August 21, 2001, the Red Cross announced that a famine was striking Tajikistan, and called for international aid for Tajikistan and Uzbekistan, however access to food remains a problem today. In January 2012, 680,152 of the people living in Tajikistan were living with food insecurity. Out of those, 676,852 were at risk of Phase 3 (Acute Food and Livelihoods Crisis) food insecurity and 3,300 were at risk of Phase 4 (Humanitarian Emergency). Those with the highest risk of food insecurity were living in the remote Murghob District of GBAO The Tajik aluminum smelting plant, Tad AZ, in Tursunzoda, is the largest aluminums manufacturing plant in Central Asia, and Tajikistan's chief industrial asset. 2

3 Tajikistan's economy grew substantially after the war. The GDP of Tajikistan expanded at an average rate of 9.6% over the period of according to the World Bank data. This improved Tajikistan's position among other Central Asian countries (namely Turkmenistan and Uzbekistan), which seem to have degraded economically ever since. The primary sources of income in Tajikistan are aluminum production, cotton growing and remittances from migrant workers. Cotton accounts for 60% of agricultural output, supporting 75% of the rural population, and using 45% of irrigated arable land. The aluminum industry is represented by the state-owned Tajik Aluminum Company - the biggest aluminum plant in Central Asia and one of the biggest in the world. Tajikistan's rivers, such as the Vakhsh and the Panj, have great hydropower potential, and the government has focused on attracting investment for projects for internal use and electricity exports. Tajikistan is home to the Nurek Dam, the highest dam in the world. Lately, Russia's RAO UES energy giant has been working on the Sangtuda-1 hydroelectric power station (670 MW capacity) commenced operations on 18 January 2008.Other projects at the development stage include Sangtuda-2 by Iran, Zerafshan by the Chinese company Sino Hydro, and the Rogun power plant that, at a projected height of 335 meters (1,099 ft.), would supersede the Nurek Dam as highest in the world if it is brought to completion. A planned project, CASA 1000, will transmit 1000 MW of surplus electricity from Tajikistan to Pakistan with power transit through Afghanistan. The total length of transmission line is 750 km while the project is planned to be on Public-Private Partnership basis with the support of WB, IFC, ADB and IDB. The project cost is estimated to be around US$865 million. Other energy resources include sizable coal deposits and smaller reserves of natural gas and petroleum. Graphical depiction of Tajikistan's product exports in 28 color-coded categories. 3

4 Foreign remittance flows from Tajik migrant workers abroad, mainly in Russia, has become by far the main source of income for millions of Tajikistan's people and represents additional 36.2% of country's GDP directly reaching the povertystricken population.according to some estimates about 20% of the population lives on less than US$1.25 per day. Migration from Tajikistan and the consequent remittances have been unprecedented in their magnitude and economic impact. In 2010, remittances from Tajik labour migrants totaled an estimated $2.1 billion US dollars, an increase from Tajikistan has achieved transition from a planned to a market economy without substantial and protracted recourse to aid (of which it by now receives only negligible amounts), and by purely market-based means, simply by exporting its main commodity of comparative advantage cheap labor.the World Bank Tajikistan Policy Note 2006 concludes that remittances have played an important role as one of the drivers of Tajikistan's robust economic growth during the past several years, have increased incomes, and as a result helped significantly reduce poverty. Drug trafficking is the major illegal source of income in Tajikistan as it is an important transit country for Afghan narcotics bound for Russian and, to a lesser extent, Western European markets; some opium poppy is also raised locally for the domestic market. However, with the increasing assistance from international organizations, such as UNODC, and cooperation with the US, Russian, EU and Afghan authorities a level of progress on the fight against illegal drug-trafficking is being achieved. Tajikistan holds third place in the world for heroin and raw opium 4

5 confiscations ( kg of heroin and kg of raw opium in the first half of 2006). Drug money corrupts the country's government; according to some experts the well-known personalities that fought on both sides of the civil war and have held the positions in the government after the armistice was signed are now involved in the drug trade.unodc is working with Tajikistan to strengthen border crossings, provide training, and set up joint interdiction teams. It also helped to establish Tajikistani Drug Control Agency. Tajikistan is an active member of the Economic Cooperation Organization (ECO). Education Public education in Tajikistan consists of 11 years of primary and secondary education but the government has plans to implement a 12 year system in There is a relatively large number of tertiary education institutions including Khujand State University which has 76 departments in 15 faculties, Tajikistan State University of Law, Business, & Politics, Khorugh State University, Agricultural University of Tajikistan, Tajik State National University, and several other institutions. Most, but not all, universities were established during the Soviet Era. As of 2008 tertiary education enrollment was 17%, significantly below the sub-regional average of 37%. Many Tajiks left the education system due to low demand in the labor market for people with extensive educational training or professional skills. Public spending on education was relatively constant between and fluctuated from 3.5% to 4.1% of GDP significantly below the OECD average of 6%. The United Nations reported that the level of spending was "severely inadequate to meet the requirements of the country s high-needs education system 5

6 Tajik State National University in Dushanbe. According to a UNICEF-supported survey, about 25 percent of girls in Tajikistan fail to complete compulsory primary education because of poverty and gender bias although literacy is generally high in Tajikistan. Estimates of out of school children range from 4.6% to 19.4% and vast majority are girls. Tourism Attraction Tajikistan is a landlocked country in Central Asia that borders Afghanistan to the south, China to the east, Kyrgyzstan to the north, and Uzbekistan to the west and northwest. The ancient Silk Road passed through it. The nation is unique in that the majority culture is non-turkic, unlike its neighbors to the north and west and east. 6

7 Tajikistan is the poorest country out of the former soviet states, the poorest country in Central Asia and one of the world's poorest, largely owing to a devastating civil war that broke out shortly after independence in Climate Mid-latitude continental, hot summers, mild winters; semiarid to polar in the Pamir Mountains. Terrain The Pamir and Alay Mountains dominate Tajikistan's landscape. The western Fergana Valley is in north, and the Kofarnihon and Vakhsh Valleys are in the southwest. The country's lowest point is at Syr Darya (300 m), and its highest point is at Qullai Ismoili Somoni (7,495 m). History The region covering today's Tajikistan was part the of Persian empires for much of its history. This region has been an important place for flourishing Persian culture and language. In recent history, Tajikistan has experienced three changes in government and a five-year civil war since it gained independence from the USSR in A peace agreement among rival factions was signed in 1997 and implemented in The central government's less than total control over some areas of the country has forced it to compromise and forge alliances among factions. Attention by the international community in the wake of the war in Afghanistan has brought increased economic development assistance, which could create jobs and increase stability in the long term. Tajikistan is in the early stages of seeking World Trade Organization membership and has joined NATO's Partnership for Peace. In recent years, Unemployment has been fought by the government with a huge success, though the country has been unable to cope up with the problems left behind of the civil war. Today, most prospects of change are clearly being evident to help recover the country, though much of these measures are proving to be inefficient and unfulfilling. Regions Ferghana Valley 7

8 Central Asia's notoriously unstable, but fascinating, culturally vibrant region spans three countries in one of the world's most convoluted political geographical jumbles. Karategin The Tajik heartland, home to the capital, Dushanbe. Khatlon Tajikistan's diverse southwestern province, and the center of the rebellion that led to Tajikistan's disastrous post-soviet civil war. Pamirs One of the world's highest mountain regions, with soaring landscapes, trekking, climbing, and one incredible drive down the Pamir Highway. Zeravshan Beautiful Valleys Amidst the majestic Fann Mountains, and ancient ruins by Panjakent. Cities Dushanbe The capital and largest city by far. Isfara an Ancient Silk Road town in the center of the Ferhghana Valley on the Kyrgyzstani border. Istaravshan an Old city home to the well known and beautiful Abdullatif Madrassah and Mosque. Khorugh Largest City of & Gateway to the Pamirs. Khujand The Center of Tajikistan's Ferghana Valley region, and the nation's second largest city. Konibodom in the heart of the Ferghana Valley, on the Uzbekistani border. Kulob The Country's Third Largest City. Qurghonteppa the largest city in Khatlon, and the political heart of the rebellion in Tajikistan's last civil war. 8

9 Tursunzoda An Aluminum town west of Dushanbe on the road and railroad to Uzbekistan. Other destinations Pamir mountains, with passes between 3200 and 4500 meters, and Lake Karakol. Penjikent, a town next to the border, 70km from Samarkand, Uzbekistan, with ruins of an ancient city. Zeravshan valley including the Fan Mountains, one of Central Asia's prime trekking and climbing destinations. Tajikistan Unemployment Rate Unemployment Rate in Tajikistan remained unchanged at 2.40 percent in January of 2015 from 2.40 percent in December of Unemployment Rate in Tajikistan averaged 2.43 percent from 2000 until 2015, reaching an all time high of 3.13 percent in January of 2000 and a record low of 2 percent in December of Unemployment Rate in Tajikistan is reported by the National Bank of Tajikistan. In Tajikistan, the unemployment rate measures the number of people actively looking for a job as a percentage of the labour force. This page provides - Tajikistan Unemployment Rate - actual values, historical data, forecast, chart, 9

10 statistics, economic calendar and news. Content for - Tajikistan Unemployment Rate - was last refreshed on Friday, March 20, Tajikistan Labor Unemployment Rate Last Previous Highest Lowest Unit percent Employed Thousand Persons Unemployed Thousand Persons Wages TJS Population Million Industries in Tajikistan Since independence, Tajikistan gradually followed the path of transition economy, reforming its economic policies. With foreign revenue precariously dependent upon exports of cotton and aluminum, the economy is highly vulnerable to external shocks. In fiscal year (FY) 2000, international assistance remained an essential source of support for rehabilitation programs that reintegrated former civil war combatants into the civilian economy, thus helping keep the peace. International assistance also was necessary to address the second year of severe drought that resulted in a continued shortfall of food production. Tajikistan's economy grew substantially after the war. The gross domestic product (GDP) of Tajikistan expanded at an average rate of 9.6% over the period of according to the World Bank data. This improved Tajikistan's position among other Central Asian countries (namely Turkmenistan and Uzbekistan), which have degraded economically ever since. As of August 2009, an estimated 60% of Tajikistani citizens live below the poverty line. The 2008 global financial crisis has hit Tajikistan hard, both domestically and internationally. Tajikistan has been hit harder than many countries because it already has a high poverty rate and because many of its citizens depend on remittances from expatriate Tajikistanis. Agriculture 10

11 Although the government has announced an expedited land reform program, many Soviet-era state farms still existed in 2006, and the state retains control of production and harvesting on privatized farms. Privatization of cotton farms has been especially slow, and unresolved debts of cotton farmers remained a problem in In the early 2000s, the major crops were cotton (which occupied one-third of arable land in 2004 but decreased after that date), cereals (mainly wheat), potatoes, vegetables (mainly onions and tomatoes), fruits, and rice. Cotton makes an important contribution to both the agricultural sector and the national economy. Cotton accounts for 60 percent of agricultural output, supports 75 percent of the rural population, and uses 45 percent of irrigated arable land.[9] More than 80% of the 8,800 square kilometers of land in use for agriculture depends on irrigation. Tajikistan must import grain from Kazakhstan and Uzbekistan. Forestry About 5% of Tajikistan is wooded, mainly at elevations between 1,000 and 3,000 meters. No forest region is classified as commercially usable; most are under state protection. Wood production is negligible, but local inhabitants harvest non-wood forest products. Fishing Streams and lakes produce a limited amount of fish, and some fish is produced by aquaculture. In 2003 some 158 tons of fish were caught and 167 tons raised on fish farms. Mining and Minerals Tajikistan has rich deposits of gold, silver, and antimony. The largest silver deposits are in Sughd Province, where Tajikistan s largest gold mining operation also is located. Russia s Norilsk nickel company has explored a large new silver deposit at Bolshoy Kanimansur. Tajikistan also produces strontium, salt, lead, zinc, fluorspar, and mercury. Uranium, an important mineral in the Soviet era, remains in some quantity but no longer is extracted. Fossil fuel deposits are limited to coal, of which about 30,000 tons are mined annually. Tajikistan s extensive aluminium processing industry depends entirely on imported ore. Industry and Manufacturing The output of most industries declined sharply during the mid-1990s; despite widespread privatization, in the early 2000s industry rallied very slowly. In

12 an estimated one-third of Tajikistan s 700 major industrial enterprises were completely idle, and the remainder were operating at 20 or 25% of capacity. The causes are outmoded equipment, low investment levels, and lack of markets. To revitalize the sector, in 2006 the government was considering renationalizing some enterprises. Tajikistan s only major heavy industries are aluminum processing and chemical production. The former, which provided 40% of industrial production in 2005, is centered at the Tursunzoda processing plant, the latter in Dushanbe, Qurghonteppa, and Yavan. Aluminum production increased by 6% in Some small light industrial plants produce textiles and processed foods, using mainly domestic agricultural products. The textile industry processes about 20% of domestically grown cotton. The expansion of light industry output contributed significantly to GDP growth in The construction industry, about half of which is stateowned, has suffered from low investment in capital projects and from shoddy workmanship that has discouraged international contracts. However, new infrastructure projects and increased housing construction brought a 60% increase in output from 2004 to 2005.[8] As of 2009, one third of industrial plants and factories are inactive, according to Tajikistan's Institute of Economic Studies. Industrial output has fallen by 13% in the first six months of 2009, leading to a fall in export revenues of 48%. Energy The rivers of Tajikistan, such as the Vakhsh and the Panj, have great hydropower potential, and the government has focused on attracting investment for projects for internal use and electricity exports. Tajikistan is home to the hydroelectric power station Nurek, the highest dam in the world.[10] Sangtuda 1 Hydroelectric Power Plant of 670 megawatts (MW) capacity, operated by Russian Inter RAO UES, commenced operations on 18 January 2008 and was officially commissioned on 31 July 2009.] Other projects at the development stage include Sangduta 2 by Iran, Zerafshan by Chinese SinoHydro and Rogun power plant, which, at 335 metres (1,099 ft), is projected to supersede the Nurek Dam as tallest in the world if completed. The Rogun Dam was originally planned to be built by Russia's Inter RAO UES, but following disagreements, Russia pulled out. In 2010, production resumed with Iranian investment and Chinese assistance. Besides hydropower, other energy resources include sizable coal deposits and smaller reserves of natural gas and 12

13 petroleum. In December 2010, Russian Gazprom announced discovery of significant natural gas reserves in Sarykamish field with 60 bcm of natural gas, enough for 50 years of Tajikistan's domestic consumption. The national power company is Barqi Tojik. Tajikistan is a partner country of the EU INOGATE energy programme, which has four key topics: enhancing energy security, convergence of member state energy markets on the basis of EU internal energy market principles, supporting sustainable energy development, and attracting investment for energy projects of common and regional interest.[19] Services Throughout the early 2000s, the overall output of the services sector has increased steadily. The banking system has improved significantly because of strengthened oversight by the National Bank of Tajikistan, relaxed restrictions on participation by foreign institutions, and regulatory reform. The system includes 16 commercial banks and the central bank, or National Bank. The state controls the system, although in principle most banks have been privatized. An internationally assisted restructuring program was completed in Banks provide a narrow range of services, concentrating on providing credit to state-owned enterprises. Only an estimated 10% of the capital in Tajikistan moves through the banking system, and small businesses rarely borrow from banks. Despite substantial potential, the tourism industry, which was eliminated by the civil war, has not re-established itself since the war because of poor infrastructure, lack of promotion, and security concerns. Some small insurance companies began operations in the early 2000s. Abdujabbor Shirinov, Chairman of the National Bank of Tajikistan announced 142 credit organizations, including 16 banks and 299 their branches, two non-bank financial institutions and 124 microfinance organizations functioned in Tajikistan at the first of