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The Consultative Council on Improvement of Business Climate under theThe Consultative Council on Improvement of Business Climate under the

President of Republic of TajikistanPresident of Republic of Tajikistan -- as instrument to facilitate politicalas instrument to facilitate political

dialogue between the state and the private sectordialogue between the state and the private sector

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Poverty Reduction Strategy of the Republic of Tajikistan for 2007-2009 envisages establishment of the

Consultative Council on Improvement of Investment Climate under the President of Republic of Tajikistan The Council is a consultative and advisory body which provides proposals for improvement of the

business environment and investment climate to the President of the Republic of Tajikistan, theGovernment of the Republic of Tajikistan and state executive authorities based on mutual andconstructive cooperation with state agencies, businesses and business associations.

The Consultative Council is aimed at activation of the work of the state bodies on improvement of the investmentclimate and establishment of a constructive dialogue between the Government and the private sector.

The main task of the Consultative Council is to ensure preparation of agreed recommendations andproposals for the President and the Government of Republic of Tajikistan on issues related to theimprovement of business and investment climate.

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The activities of Consultative Council is carried out on the basis of freediscussion of all the issues and collective decision making.

The Consultative Council applies the following principles:

voluntariness;

publicity;

free discussion;

independency in the process of makingdecisions on the issues within its competencies

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The Consultative Council has been established by the PresidentialDecree as consultative-advisory body aimed to consider and elaboratethe political decisions that will be made on improvement of investmentclimate and business environment issues.

The Council has promoted informal dialogue between the governmentand private sector on a continuing basis (quarterly meetings).

In the environment of imperfections in the system of nationaldevelopment, creation of the Consultative Council for Improvementof the Investment Climate under the President of the Republic ofTajikistan became a catalyst for the public private dialogue.

The creation of the Consultative Council initiated the promotion of the

business community activity The Council promotes the reforms required for private sector

development

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Members of the Consultative Council

The Chairman of the Consultative Council isthe President of the Republic of Tajikistan;

Members of the Consultative Council:

The Prime Minister of the Republic of Tajikistan;

The Chairman of the State Committee onInvestments and State Property Managementof the Republic of Tajikistan - the ExecutiveSecretary of the Council;

Representative of multilateral international donors organizations;

Representative of bilateral international donors organizations; Two representatives of foreign investors;

Four representatives from national entrepreneurs and their unions;

Head of the Secretariat of the Consultative Council.

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The procedures for selection of the members of the

Consultative Council

The Head of the Secretariat of the Consultative Councilis selected by procedures of European Bank forReconstruction and Development.

The Executive Secretary of the Consultative Council willsubmit for consideration of the Consultative Councilapplication of candidates of all representatives forapproval. The candidates are approved by majority votesof the members of the Consultative Council.

The members of the Consultative Council frominternational donor organizations, foreign investors andnational business structures will be rotated according tothe established rules.

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Donor support and cooperation with the Consultative

Council

EBRD, GTZ and USAID support in developments ofthe necessary documents, preparation of legalanalysis on proposed draft normative acts, technicalsupport of working groups and consultations withexperts participation as well as strengthening thecapacity of the Secretariat.

IFC is assisting the Secretariat in organization of the private sector with theview of identification of the problems and issues.

Cooperation with the World Bank on the issues related to improvement ofthe Doing Business indicators of the Republic of Tajikistan

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Activities of the SecretariatActivities of the Secretariat as working body of theas working body of the

Consultative Council on Improvement of InvestmentConsultative Council on Improvement of Investment

Climate under the President of Republic of TajikistanClimate under the President of Republic of Tajikistan

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The activities of the Secretariat of theThe activities of the Secretariat of the

Consultative CouncilConsultative Council

The Secretariat of the Consultative Council: Is working body, supporting the continued activity of the Consultative

Council;

Supports the work of the Executive Secretary of the Consultative

Council and the Head of Secretariat on issues related toorganizational, methodological and technical aspects of the activitiesof the Consultative Council;

Is formed as special group of experts responsible for the daily workof the Consultative Council;

Works as facilitator of public private dialogue;

Consists of the Head of Secretariat and 4 experts, including legal,economic , financial and information experts.

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The Secretariat shall :

ensure arrangement of materials necessary forconducting the Consultative Council sessions andadopting its decisions;

ensure overall coordination and cooperation between state executiveauthorities, businesses and business associations, international organizations,foreign investors and working groups working to arrangement of materialsnecessary for conducting the Consultative Council meetings and adoptingdecisions;

summarize and make conclusion on the proposals on improvement of thebusiness environment and investment climate in the Republic of Tajikistansubmitted to the Consultative Council;

conduct monitoring of implementation of decisions made by the ConsultativeCouncil;

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Works with representatives of the private sector, state bodies, and internationalorganizations on the issues related to improvement of business environment(organization of round tables, participation in working groups);

develop proposals on establishment of new mechanisms encouraging foreigninvestments (including identification of new strategies and priorities) with a

view to promoting improvement of the business environment ;

deal with providing information about the Consultative Council activity ;

Informs public about ongoing reforms through publications and mass media;

Issues Bulletin periodically and updates the web-site of the Consultative Council.

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The Strategic Programs on improvement ofThe Strategic Programs on improvement of

business climate of Republic of Tajikistanbusiness climate of Republic of Tajikistanapproved by the Consultative Councilapproved by the Consultative Council

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The Strategic documents aimed at improvement of businessThe Strategic documents aimed at improvement of business

climateclimate

The Action Plan on first-priority activities ofthe Government of the Republic of Tajikistanfor improvement of international ratingindicators of the Republic of Tajikistan

approved during the 2nd session of theConsultative Council;

The Program Improving business environment - 200 days of reforms- approved by the Government in 2 July 2009 386;

The Plan on further measures of the Government of the Republic of

Tajikistan on improving investment climate and indicators of theRepublic of Tajikistan in international rating 29 May 2010 276.

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The Action plan on first priority activities of the Government of

Republic of Tajikistan for improvement of international ratings

of Republic of Tajikistan

Development and adoption of the Plan was the initiative ofthe Government of Tajikistan to improve the ranking in theDoing Business Report of the World Bank where Tajikistan

ranks 152 out of 181 countries, included in the report.

The initiative on development of the Plan also emanated fromentrepreneurs, who considered that current tax system is noteffective and transparent to ensure growth and developmentof business.

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The Program Improving business environment

200 days of reform

The Program was aimed at advancing of administrative andregulatory reforms in support of business development in thecountry. The measures of the program are extension of earlier decisions on reduction and elimination of administrative barriers on the way of business development.

The measures on improvement of administrative proceduresenvisaged a comprehensive introduction of the principle ofOne Stop Shop on several directions: on businessregistration, licensing, permitting, and external tradeoperations.

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The Program Improving business environment

200 days of reform

Part of the program measures was aimed at increasing thenumber and identification of advantages of the simplifiedform of taxation, creation of infrastructure for businessdevelopment.

A number of measures on preparation of base for conductingthe long term reforms aimed at protection of interest of thebusiness was included in the program.

Implementation of the set objectives allowed improvement ofDoing Business Indicators of Tajikistan in the World BankDoing Business Report.

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The Plan on further measures of the Government of Republic

of Tajikistan on improvement of investment climate andinternational rating of Republic of Tajikistan

The Plan includes the following reforms: Simplification of export-import procedures;

Strengthening protection of borrowers and lenders rights;

Simplification of administrative procedures in the construction area;

Harmonization of the legislation in establishment of legal entities andstate registration;

Full introduction of state registration according to the principle of onestop shop.

The issues related to taxation of leasing operations; Development of medium term strategy for development of national

production and promotion of local producers.

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Further activities

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