INTERVIEW-Graft limits investment in Tajikistan -US envoy
23 Apr 2007 10:21:16 GMT Source: Reuters
By Roman Kozhevnikov DUSHANBE, April 23 (Reuters) - Corruption, red tape and the lack of both free media and independent courts are holding back Western investment in the Central Asian republic of Tajikistan, the U.S. ambassador said. The poorest of the five ex-Soviet states in Central Asia is still recovering from the consequences of a 1992-97 civil war, and has in recent years attracted significant investment only from government-run bodies in China, Iran and Russia. Its long and porous border with Afghanistan, a key route for drugs-smuggling to Europe, has lent Tajikistan strategic importance but, lacking major hydrocarbon reserves, the mountainous country is often overlooked. "Corruption is a big issue, bribery, conflicts of interests", U.S. ambassador Tracey Ann Jacobson told Reuters in an interview. "The challenges in Tajikistan to attracting foreign investment especially from the West are to create ... transparent and predictable conditions." There have been signs that Tajikistan may be seeking better ties with states beyond traditional partner Russia. In a move charged with symbolism, President Imomali Rakhmon this month shed the Russian ending on his surname, saying he wanted to emphasise his Persian roots. In power since 1992, he was known as Rakhmonov and emerged on the winning side of the civil war thanks to support from Moscow. Foreign Minister Khamrohon Zarifi last week said Tajikistan has an "open door" policy to investment and the government has let it be known it may look beyond Russian investors for a big hydroelectric project at Rogun that has been beset by delays. "Foreign investors need to see that if they come to a country and they have a dispute with the government or they have a dispute with another, for instance a Tajik company, that the courts will treat them in a fair way," Jacobson said. She said there were 22 different government organisations regulating business and it took on average 60 days to start up an enterprise, compared to five in the United States. Rakhmon set up an anti-corruption agency earlier this year. It has yet to make a public statement on its activities. Jacobson said she believed Tajikistan was working to fight corruption and cut red tape. "But Western investors want to see some results before they commit money." She added that Washington, the main humanitarian donor to Tajikistan, wanted to see progress on democracy. Rakhmon last year won a third seven-year term in office in a vote judged flawed by international election monitors. His main opponents are either in prison or have died. "There needs to be a more open environment for political pluralism and a more secure environment for civil society and for independent media", Jacobson said.
