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					                     DFID – RosAgroFond - UNDP
        Rural Development Programmes in Tajikistan and Uzbekistan

       Zarafshan Regional Development Initiative

Strengthening and improving sustainable economic growth and public policy in
                        support of poverty reduction

                               PHASE 1

                          FINAL REPORT

                         January – December 2005

SOME RELEVANT INFORMATION ............................................................................... 4

TERMS OF REFERENCE ............................................................................................... 5

1. EXECUTIVE SUMMARY ............................................................................................ 6

ZARAFSHAN VALLEY ................................................................................................... 9

2.1. Brief description of pilot regions .........................................................................................................................9
   2.1.1. The Republic of Tajikistan, Penjikent and Ayni districts ...............................................................................9
   2.1.2. The Republic of Uzbekistan, Bulungur and Urgut districts ..........................................................................11

2.2. Rural poverty monitoring methods. Assessing poverty level ..........................................................................12
   2.2.1. Approaches to rural poverty monitoring in a district ....................................................................................12
   2.2.2. Key concepts and definitions ........................................................................................................................14
   2.2.3. Objectively verifiable indicators ...................................................................................................................15
   2.2.4. Data sources on rural incomes ......................................................................................................................21
   2.2.5. Poverty profile ..............................................................................................................................................25
   2.2.6. Mobility of income groups ............................................................................................................................26
   2.2.7. Conclusion ....................................................................................................................................................28

POVERTY REDUCTION ............................................................................................... 29

POVERTY REDUCTION ............................................................................................... 29

3.1. Creating Jamoat Resource Centres ...................................................................................................................29
   3.1.1. Reasons for creating, underlying legal basis, setting up procedure and organizational structure of Jamoat
   Resource (and Advocacy) Centres ..........................................................................................................................29
   3.1.2. Revolving Fund: set-up and operations mechanisms ....................................................................................32
   3.1.3. JRC activities aimed at social infrastructure rehabilitation ...........................................................................37

3.2. Securing access to land and water resources ....................................................................................................39
   3.2.1. Dehkan farmers‟ rights to land ......................................................................................................................39
   3.2.2. Access to land in pilot Jamoats .....................................................................................................................40
   3.2.3. Constraints to realization of rights to land ....................................................................................................41
   3.2.4. Securing access to land .................................................................................................................................44
   3.2.5. Securing access to water ...............................................................................................................................45

3.3. Set of measures to reorganize farm enterprises and collectively-owned dehkan family farms ...................47
   3.3.1. Need for developing farm enterprise reorganization mechanism..................................................................47
   3.3.2. Reorganization plan for state-owned farm enterprise “Marguidar” ..............................................................48
   3.3.3. Collectively-owned dekhan family farms reorganization .............................................................................49
   3.3.4. Impact of Uzbek shirkat farms reorganization on rural employment and incomes ......................................51

3.4. Securing access to small loans............................................................................................................................51
   3.4.1. Status of the problem and approaches to analysis .........................................................................................51
   3.4.2. Formation of credit organizations .................................................................................................................52
   3.4.3. Selecting effective types of economic activities ...........................................................................................53
   3.4.4. Developing a lending policy .........................................................................................................................54
   3.4.5. Outcomes of micro-credit scheme implementation ......................................................................................55

3.5. Co-operation of family (dekhan and household plot holders’) farms ............................................................57

    3.5.1. Models of co-operation .................................................................................................................................57
    3.5.2. Setting up a co-operative for service provision to household plot holders and dekhan farmers. ..................60

3.6. Developing off farm businesses ..........................................................................................................................62

3.7. Lesson sharing and application of successful experience of international sustainable livelihoods projects
    3.7.1. Co-ordination with UNDP ............................................................................................................................65
    3.7.2. Building partnerships: co-operation with international organizations and national NGOs ...........................65
    3.7.3. Lesson sharing Workshop “Strategy and Mechanisms for Sustainable Rural Development in CIS
    Countries” conducted in partnership with UNDP ...................................................................................................69
    3.7.4. Organisation and outcomes of the Project supported study tours .................................................................69

    4.1. State of local infrastructure and sources of funding .........................................................................................76
    4.2. Grants to support social infrastructure development of kishlaks .....................................................................82
    4.3 Social adaptation of women ..............................................................................................................................91


5.1. Proposed improvements to legislation to facilitate poverty alleviation ..........................................................93
   5.1.1. Land related legislation .................................................................................................................................93
   5.1.2. Legislation related to organizational and legal forms of farm enterprises and to restructuring of farm
   enterprises and collectively owned Dehkan farms ..................................................................................................94
   5.1.3. Legislation related to establishment and operations of credit co-operatives and micro-finance organizations

5.2. Key recommendations to the local authorities on the Area Development Plan ............................................97

5.3 Recommendations to the district, regional and republican authorities on the Project dissemination .......102

6. APPENDICES ......................................................................................................... 106

                           Some Relevant Information
Zarafshan Regional Development Initiative, Phase 1 was implemented from January to
December 2005. The funding for the Project was provided by UK Department for International
Development (DfID). RosAgroFond was contracted to implement Phase 1 of the Project. Some
of the Project components have been implemented with UNDP‟s participation. DfID and UNDP
Representative Offices in Tajikistan and Uzbekistan have provided their on-going support to
the Project implementation.
The project pilot territories included four districts (rayons) located in Zarafshan Valley, two of
which – Penjikent and Ayni are in Tajikistan, and two – Bulungur and Urgut – in
The present Final Report describes briefly the outcomes of the Project Phase 1 and has been
written for district, regional and republican authorities as well as for DfID.
The Report focuses on the main results achieved under each Project component, offers
recommendations to government regulatory bodies (Jamoats, district Hukumats, regional and
republican authorities) and outlines further activities to be implemented under Phase 2 of the
Project (provided such a decision is made). The Appendices to the Report contain
complementary materials with the description of the pilot territories, analysis of rural poverty, as
well as some methodological materials and legal and normative documents developed under the

The Report has been compiled by the Project team, including:
  RosAgroFond: Project Manager R. Yanbykh (; Consultant on Project
   implementation methodology professor V. Uzun (; Consultant on land
   issues and problems of farm reorganization N. Shagaida (; Consultant
   on micro finance organizations N. Melnikov (; Consultant-Sociologist on
   rural development G. Rodionova (; Legal Consultant T.
   Voskoboinikova (; and Specialist in household farms and dekhan
   farms co-operation V. Saraikin (
  UNDP: UNDP Community Development Programme Manager in Tajikistan Akhad
   Makhmudov (; UNDP specialists Mubin Rustamov
   ( ) and Firuz Khamidov ( ).

The authors would also like to express their acknowledgements to the heads of the pilot districts
administrations, and particularly to Mr Samadov and Mrs Boboeva, to the heads and specialists
of the pilot Jamoats, and particularly to Mr Negmatov and Mr Bokiev, to UNDP consultants and
“Madadkor” Association specialists, as well as to all the local staff for providing overall
support and assistance in carrying out the present research and preparing the Final Report.

The views expressed in this Final Report are those of the authors and do not necessarily reflect
the official view of DfID. For any comments or queries please contact Dr. Renata Yanbykh

                                 Terms of Reference
In dialogue with the Government, World Bank and other potential donor partners, and at request
from both, Tajikistan and Uzbekistan‟s Governments, DfID is in the process of defining a
collaborative initiative to assess the potential of developing Zarafshan Valley as the evidence
base for policies to improve economic growth. The PRSP Monitoring Unit in Tajikistan is keen
for DfID to support and to use DfID work in the region to progress PRSP implementation and
monitoring. Based on discussions on poverty levels and causes, social-economic potential and
the problems of spatial exclusion and isolation from traditional markets (now across the border in
Samarkand, Uzbekistan) the Project, that is currently being implemented, is an intervention
to test approaches for support of pro-poor growth in the Tajik part of the Zarafshan Valley
and share lessons and benefits of this work with the neighbouring Samarkand region of
Uzbekistan‟s Zarafshan Valley.
The purpose of the present Project is to contribute to Output 1: Strengthen sustainable economic
growth and public policy in support of poverty reduction, in line with the Government‟s Poverty
Reduction Strategy. This will contribute to the Goal of the wider DfID Tajikistan country
programme, to reduce poverty in Tajikistan through improved evidence based policy making and
strengthened policy structures. To achieve the project’s purpose “to develop replicable
approaches for achieving improvements in pro-poor economic growth and contribute to
evidence based policy” the Project has focused its activities on four linked areas:

 i)     An analysis of poverty and social-economic conditions in the Zarafshan Valley
        including the constraints to improvements of livelihoods and an analysis of the
        willingness and local capacity to systematically address these constraints in partnership
        with government, private sector, civil society and communities including the cross
        border dimension;
 ii)    Approaches to improving sustainable pro-poor economic growth: economic coping
        strategies and income generating activities;
 iii)   Practical approaches to community driven development, asset rehabilitation and disaster
 iv)    Linkages between practice and policy established in the joint process of developing a
        regional development plan with local governance structures with consultation with the
        inter-ministerial working group and PRSP monitoring unit.

                               1. Executive Summary
      Main outcomes resulting from the Project implementation activities
1. A methodology to assess rural income levels based on registered employment and self
   employment has been developed and the pilot Jamoats population categories depending on
   their income level identified. The methodology has been approved by the PRSP Monitoring
   Unit in Tajikistan. A sample survey of budgets of households living in the pilot
   Kolkhozchiyon and Rarz Jamoats has been conducted to determine income baselines for
   further research into rural poverty level and monitoring of its changes.
   In 2004, the average per capita income was 1.63 somoni ($0.55) per day in Kolkhozchiyon
   Jamoat and 1.41 somoni ($0.47) per day in Rarz Jamoat. The share of rural residents living
   in households with incomes below the poverty level ($1 a day) was 84% in
   Kolkhozchiyon and 89% in Rarz Jamoat.
   Over half of the total able-bodied population (50.4% in Rarz and 61% in Kolkhozchiyon
   Jamoat) is unemployed. Money sent home by labour migrants and produce grown on
   household plots are the main income sources of rural residents.
2. Jamoat Resource and Advocacy Centres (JRCs) have been set up to shape and develop
   rural civil society and ensure a more active involvement of target Jamoats‟ rural population.
   The elections have been carried out in a transparent and understandable for the general public
   manner. Training has been provided to the JRC members in micro-finance activities and in
   how to identify the most acute and supported by the majority of the population needs for
   support of rural infrastructure and how to apply for infrastructure grants.
3. Accessibility to land resources for dekhan farmers has been analysed and findings presented;
   constraints impeding the access to land identified; relevant information materials developed;
   information points established in the pilot Jamoats; clarifications and training in obtaining
   land and setting up dekhan farms following farm enterprise and collectively-owed dekhan
   farm reorganization provided. Twenty five information boards have been put up,
   nineteen information meetings held, eleven workshops provided. The total number of
   participants in information and training events has amounted to approximately 1,700
4. Reorganization of the state-owned farm “Marguidar” of Penjikent district has been
   completed. A set of documents in support of each stage of the reorganization process has
   been developed that enabled land share holders to realize their rights for land and property.
   As a result of the residents‟ active involvement in the reorganization process 83 individual
   family farms, including 15 headed by women, have been set up on the territory of the
   former state-owned farm.
5. Micro finance organizations (Revolving Funds) have been set up within Jamoat Resource
   and Advocacy Centres, Credit Officers trained, income generating capacity of various farm
   and off farm activities rated, and lending policy developed. Rural residents assisted by the
   Credit Officers are applying to the Revolving Funds for loans. If the analysis of the
   application proves the feasibility of loan repayment the loan is granted to the applicant. The
   Revolving Fund is based on capital circulation principle, and all the funds once credited to its
   account remain within the Jamoat.
   105,000 sonomi have been disbursed as loans to 351 rural residents of Rarz Jamoat,
   and 86,000 somoni – to 273 rural residents of Kolkhozchiyon Jamoat. About 20% of the
   total rural households living in the pilot Jamoats received loans over the first six months of
   this component implementation. About the same number of applications remains unsatisfied
   due to insufficient funds available within the Revolving Funds.

   The greater part of loans has been disbursed to support beef fattening (43.4%), dairy cattle
   (18.3%), wheat production (16.8%) and potato growing (8.9%). The loan repayment rate
   has been 100 %.
   A Credit Union has been established and operational in Bulungur district of Samarkand
   region of Uzbekistan.
6. Participatory mechanisms have been elaborated to involve rural residents in rehabilitation
   and development of rural social infrastructure and in implementation of social projects. The
   residents themselves prioritize, select and determine the community contribution in project
   implementation. Application forms for social infrastructure rehabilitation projects have been
   developed, criteria for their evaluation and selection agreed, and tender procedure for their
   implementation established. In Kolkhozchiyon Jamoat a water supply system in Gusar
   kishlak has been repaired using the allocated grants, and in Rarz Jamoat a pedestrian
   bridge over the Matcha River in Fatmev kishlak and a new water supply system in
   Fatmovut kishlak have been constructed.
7. A tender to disburse small scale social grants has been conducted. Residents of the pilot
   Jamoats have had a chance to have their project ideas realized. In total 20 social
   infrastructure support projects worth $12,000 have been implemented. The small scale
   social grants have enabled the Project to involve into the implementation process almost all
   the kishlaks. The projects that have demonstrated the highest social value are Mobile
   Medical Crew and Rural Russian Language Centre (training centre for prospective labour
8. Schemes to create dekhan farmers‟ co-operatives for agricultural produce marketing, inputs
   supplies and service provision have been developed. In Bulungur district of Samarkand
   region of Uzbekistan a consumer co-operative providing services to family farmers and
   household plot holders has been set up and operational.
9. The feasibility of priority development of off farm businesses, particularly in Ayni district
   where irrigated land is in shortage (about 0.02 ha per resident), has been justified.
   Monitoring of possible types of economic activities and availability of resources to support
   them has been conducted. Rural residents (40 people) have received training in sewing and
   currying and selling animal skins. Partnerships between rural residents and individual
   entrepreneurs willing to act as intermediaries have been formed.
10. Access of rural residents to legal, economic and technical advice has been improved. “Best
    practice” farms have been identified and their owners – specialists or enthusiastic amateurs –
    are providing advice to rural residents on farming, veterinary and other issues.
    Communication of animal disease has been prevented; work is under way to set up a
    veterinary drugstore; contact has been established between rural residents and an
    experimental farm to promote replacement of ordinary seeds with high productivity seeds;
    qualifications of the local specialists have been upgraded.
11. Partnerships with other donors (Mercy Corps, German Agro Action, World Bank, etc.) have
    been established. A workshop “Strategy and Mechanisms for Sustainable Rural Development
    in CIS Countries” has been delivered jointly with UNDP Uzbekistan and UNDP Tajikistan.
    The workshop has been attended by Project beneficiaries from all the four pilot districts,
    Samarkand region authorities (Uzbekistan), Sogd region authorities (Tajikistan), as well as
    by consultants working in DfID rural development projects in Ukraine and Moldova.
12. A series of study tours for Project beneficiaries and stakeholders (decision makers) from
    Tajikistan and Uzbekistan have been conducted. The study tour destinations included
    Scotland, Oryol and Leningrad regions of the Russian Federation (post-project pilot sites of
    the DfID supported Sustainable Rural Livelihoods Project), Makariivsky district of Kiev
    region of Ukraine (experience in setting up and running consumer co-operatives),

    Muminabad district of Tajikistan (experience in setting up and running Local Development
    Centres, created with support of Swiss Cooperation Office).
13. Partnerships with local authorities (Jamoat and Hukumat administrations) and national
    authorities (Tajikistan State Land Committee, Ministry of Agriculture, Poverty Reduction
    Strategy Paper Monitoring Unit of the President‟s Administration, etc.) have been formed.
    Advisory (Co-ordination) Boards to address poverty issues have been set up in Penjikent and
    Ayni districts.
14. Recommendations have been developed suggesting improvements to the legislation related
    to land relations, farm enterprise and collectively-owned dekhan farms reorganization,
    organizational and legal forms of agricultural enterprises, credit co-operation and micro
    finance organizations. Respective draft laws have been submitted to the Parliament of the
    Republic of Tajikistan and to executive authorities.
15. Recommendations to the local authorities on the Areas Development Plans for 2006-
    2008 have been developed. Suggestions have been made to include the poverty reduction
    activities that have been successfully tested under Phase I of the Project in the two pilot
    Jamoats of Penjikent and Ayni districts into the Area Development Plan for these districts to
    be implemented in all the Jamoats. Resource requirements for the implementation of the
    above plan have been estimated ($3,610,000 in total per 2 districts over 3 years),
    possible funding sources have been identified (56% – donor funding, 19% – bank loans,
    17% – central budget, 4.5% – regional budget, 3.5% – district budget).
16. Recommendations to the district, regional and central authorities on the Project
    dissemination have been developed. Each level authorities have received recommendations
    listing specific activities which implementation will contribute to the overall Project
    dissemination. In addition to the responsibility to provide budget funding the list of activities
        district level – setting up District Co-ordination Councils to address poverty
         reduction issues, providing training to representatives of all the Jamoats;
        regional level – delivering training for regional officials and representatives of all
         districts of Sogd region to raise their awareness of the poverty reduction activities that
         are being implemented in the pilot districts;
        republican level – refining the legislation, securing loans from the World Bank and
         other banks to support the development of a republican network of micro-finance
         organizations, making arrangements for smooth and effective information collection
         necessary to measure poverty levels in individual rural administrations and districts,
         holding a republic level workshop to be attended by representatives of all the regions
         and district Hukumats to present the poverty reduction experience accumulated in the
         pilot districts.

 2. Analysis of poverty and socio-economic conditions in the
                       Zarafshan Valley

2.1. Brief description of pilot regions
2.1.1. The Republic of Tajikistan, Penjikent and Ayni districts
Tajikistan. Rural residents account for 73% of the country population. In 2002, the share of
agriculture in the GDP was 27%. Availability of land for use by citizens is extremely low – less
than 0.20 ha per rural resident. In remote areas this figure is even lower – 0.02-0.03 ha per
The agrarian reform is being implemented with the government retaining ownership for land.
Household plot holders are the main agricultural producers. They have small holdings attached to
their houses (subsidiary plots) assigned to them for hereditary use. In the course of the reform
implementation household plot holders received the right to use the so-called President‟s land.
These land parcels are allocated for grain production. They are located, as a rule, far beyond the
population clusters. It is not allowed to construct any buildings or plant trees and bushes on this
The reform resulted in creation of individual, family and collectively-owned dekhan farms.
Collectively-owned dekhan farms usually have hundreds, sometimes thousands of members. The
Project findings show that this form of economic activity is even less effective than a
collectively-owned farm (kolkhoz). The Tajik Government plans to complete farm reorganization
in 2005. However in the majority of cases farm reorganization has been a mere formality.
Farm enterprises and collectively-owned dekhan farms have contracts with futures dealers
(cotton exporters and other buyers of agricultural produce). They have become heavily indebted
to the futures dealers over the recent years. Most farms have debts exceeding their assets.
All debts to the state, state non-budgetary funds and other state run organizations were written
off as of 1 January 2003. However the debts have been accumulated again over the past two
years. The problem of debts in Tajikistan has been the main concern and in focus of both the
government‟s (at all levels) and donors‟ attention.
The main constraint for successful economic development of the Republic is unemployment. A
high birth rate provides labour supply that cannot be consumed within the country. According to
expert estimates one third of the Tajik able-bodied population are working abroad, mainly in
Penjikent district, a remote area of Sogd region, is located along the Zerafshan river banks and
borders on Samarkand region of Uzbekistan. Road transport through the Anzob and Shakhristan
Passes is the main means of communication between the district and the capital, as well as the
region centre. In winter, air travel, that is relatively regular, is the only alternative.
The district population numbers 214,000 people with about 35,000 living in urban areas. The rest
of the population lives in 14 rural Jamoats (156 kishlaks). Tajik nationals (70%) prevail over
Uzbeks (about 30%). A significant share of able-bodied male population is involved in seasonal
work outside the country, migrating mainly to Russia.
The core economic activity of the population is agriculture. There are 10,000 ha of irrigated land,
5,000 ha of gardens and vineyards in the district. In addition there are about 10,000 ha of dry
arable land and over 140,000 ha of effective pastures and hayfields. The key agricultural
industries include horticulture, viniculture, tobacco-growing and animal husbandry.

The conditions for developing agriculture in the district are quite favourable. According to Sh.
Samadov, head of the administration, nine of every ten years are good for the crops. It is possible
to grow two harvests a year (e.g. wheat – sunflower). Besides, there are opportunities for
expanding beans crops for export purposes.
Five industrial plants are operating in the district, including a tobacco factory, winery, Tajik-
Britain gold mining joint venture “Zerovshon”, tinned food factory, and marble factory.
Twenty five NGOs (non-governmental organizations) are working in the district. There is a
Third Party Arbitration Court (TPAC) office there as well. In addition, a number of international
organizations are also active there.
The main problem of the district is lack of markets for selling the produce. This is particularly
relevant to perishable agricultural goods (vegetables, fruit, grapes). In the past, the produce used
to be sold in Samarkand or exported in large quantities to Russia. Now the border with
Uzbekistan is closed, the access to the Russian market is limited, while road communication with
other Tajik territories is impossible for the most part of the year due to closed mountain passes.
In view of the above the opportunities available for increasing the production of vegetables, fruit
and grapes are not exploited.
Ayni district, located along the Zeravshan river banks in the gorge between two mountain
ranges, is a rather large area. It is a hard-to-reach mountainous district of Sogd region. Road
travel is the main communication with the capital and the region centre. In winter, when the
Anzob and Shakhristan Passes are closed, air travel is the only alternative.
The population of the district is 72,000 people. Practically all of them, including the residents of
the district centre live in rural areas. The territory is divided into 8 Jamoats, including 7 rural and
1 settlement (district centre). The population is mono-national with over 98% being Tajik
nationals. A significant share of the able-bodied male population is involved in seasonal work
outside the country, migrating mainly to Russia.
The core economic activity of the district residents is agriculture (horticulture, tobacco-growing
and animal husbandry). However agricultural employment is insufficient to engage the entire
population as there are only 1,800 ha of irrigated land in the district (the total district territory
being over 5,000 square metres). On average land is less than 0.03 ha per person. Apparently, the
availability of land per person in Ayni district is lowest in the Republic of Tajikistan.
There are 10 farm enterprises in the district, 9 of which have already been reorganized, the
remaining one to be reorganized in the current year. The reorganization resulted mainly in
creation of collectively-owned dekhan farms. Individual and family dekhan farms are cultivating
an insignificant part of arable land. There is an Association of Dekhan Farmers in the district.
There is a mining-and-processing integrated complex in the district (the Anzob Mining-and-
Processing Integrated Works), however it practically does not work. There are also two
brickyards which construction has not been finished.
The district budget is subsidized with 35% deficit. The roads have not been once repaired during
the reform period and are in potholes and ditches all over. A number of NGOs are registered in
the district and many international organizations are implementing their programmes there.
There is also a TPAC office in Ayni district.
The main problem is unemployment. According to Sh. Bobojonov, deputy head of
administration, of 28,000 able-bodied population, 12,000 are working in agriculture, 2,000 – in
production and other industries, the rest have migrated to other countries in search of
employment, mainly to Russia.
Agriculture is incapable of providing employment for the entire district population. Alternative
off farm employment can be a solution. Identifying such types of activity should become one of
the Project priorities.
Many of the district problems could be solved if a tunnel through the Anzob Pass is constructed,
thus providing a reliable transport connection with other districts of the Republic of Tajikistan.
More detailed descriptions of Penjikent and Ayni districts are given in Appendix 2.1.1.

2.1.2. The Republic of Uzbekistan, Bulungur and Urgut districts
Uzbekistan. Agriculture in Uzbekistan is a prevailing industry. 62% of the population live in
rural areas. The agrarian sector accounts for over 30% of the GDP, 55% of currency revenues
and 70% of the Republic turnover.
The agrarian reform is being implemented using a stage-by-stage approach. The first stage
involved reorganization of collectively and state owned farms (kolkhozes and sovkhozes) into
agricultural co-operatives (shirkats) based on intra-farm contracts signed with families. The
current second stage involves reorganization of the above shirkat farms to create family farms
(mainly for cotton and grain production). Individual dekhan farms (household plots) are also
widely spread in Uzbekistan. They are the main producers of cattle, vegetables, fruit, and grapes.
In recent years, family farms sized 3-40 ha and using hired labour have enjoyed priority support
of the government (Uzbek President‟s Decree dd. October 2003). Such family farms are more
effective than shirkat farms. They account for 14.1% of the agricultural gross output, 37.8% of
cotton and 35.6 % of grain production (as of 2003).
Individual dekhan farmers (household plots holders) received land for lifelong hereditary use.
Family farmers rent their land, the lease period being 50 years. The only way to obtain such land
is through a tender.
Most Uzbek rural residents, however, have not received any rights to land. Those who received
land pay land tax. Individual dekhan farmers (household plot holders) can also make
contributions to the Pension Fund.
In accordance with the Uzbek President‟s Decree of 1,840 shirkat farms 1,020 (55%) will have
been reorganized by the end of 2006 to create family farms. The reorganization process is strictly
regulated by the authorities‟ instructions and is mainly assigned to winter months.
Farm enterprises and family farms receive state orders for cotton and grain production (about
30% of the total output). There is also an informal state order for silk cocoon and silkworm
The producers implementing state orders receive inputs (fertilizers, fuel) at prices lower than
those currently established on the market. The state-ordered produce is also bought at lower than
market prices. Loans within the established limits to purchase inputs for state-ordered production
are issued at privilege interest rates (12-24 %).
Family farmers can buy inputs for state-ordered production only through an Association of
Family Farmers. Each family farm must be a member of such an association. Each association
must have at least 50 members and be registered with the Uzbek Ministry of Justice.
The established system of state regulation upsets the balance both in financial and marketing
sectors creating shortages. For example, with the Central Bank established annual interest rate
being 16%, commercial banks issue loans at 3-4% per month (36-48% annual interest rate),
while residents lend money to each other at 10-25% per month (120-300% annual interest rate).
There is also a big discrepancy between the value of cash and cashless settlements.
The Republic economy cannot ensure employment and decent incomes of the population. A
significant part of the able-bodied population is working in other countries (Russia, Kazakhstan,
Turkey, etc.)

Bulungur district. The district population is 133,000 people. They are mainly engaged in
vegetable, fruit, grapes and grain production.
There were 14 kolkhozes and sovkhozes (collectively and state owned farms) which were
reorganized into 14 shirkat farms. As of 2005 beginning, 9 farms had been reorganized allowing
to set up about 1,600 family farms. An average size of a newly created farm is about 10 ha. The
usual number of members is 5-10 people. Family farms also use hired labour. The remaining
shirkat farms are scheduled for reorganization in 2005-2006.
The family farms of Bulungur district are members of either of the two associations, one
numbering about 1,500 members, the other (“Madadkor”) – 80. The association members pay
membership fees. The fee for “Madadkor” members is $10 per 1 ha, for the district association –
3% of the total sale.
The Family Farmers‟ Associations provide services in inputs supply. “Madadkor”, provides
additional consultancy services in book-keeping and farming techniques and offers economic
and legal advice. Besides, the association provides loans to its members from its own loan capital
($35,000) created under a DfID project in 1997-2001. Loans are issued at 4% annual interest
rate. Loan sizes vary from $500 to $1,200. In 2004, ten loans were disbursed.
Urgut district. The district population is 360,000 people. The population is mostly rural, with
only 62,000 people living in urban areas (17% of the total population).
The core agricultural crop in the district is tobacco. Tobacco production accounts for the main
revenues and employment in rural areas. Potato production is also well developed.
There were 22 shirkat farms in the district, only two of which have been reorganized. The main
reorganization work is scheduled for 2005-2006.
Samarkand credit co-operative “Shardo” provides loans to women entrepreneurs under a project
that is being implemented in one of the kishlaks. The project includes about 100 women-
participants. Loans are issued in cash at 4% monthly interest rate. The loan size varies from $300
to $500.
Urgut district was formerly famous for well developed gold-embroidery craft.

2.2. Rural poverty monitoring methods. Assessing poverty level
2.2.1. Approaches to rural poverty monitoring in a district
According to the Tajik State Statistics Committee (Goscomstat) the majority of the poor live in
rural areas. The findings of the Poverty Reduction Monitoring Survey (PRMS) showed that
52.9% of the rural poor belong to the two poor quintiles (27.1% to the first and 25.8% - to the
second quintile), while the most prosperous quintile accounts for only 5.4% of rural residents.1
The depth of rural poverty is also larger. The Poverty Reduction Strategy Paper (PRSP) sets out
the task of creating benefits for the majority of the population, particularly for its poor part.
Implementation of the Poverty Reduction Strategy requires identification of the most
disadvantaged territories. Rural poverty monitoring in various districts is of great importance
because three quarters of the Tajik population live in rural areas that account for the majority of
the extremely poor2. In view of the above to assess the efficiency of the developed measures it is
necessary to compare the poverty indicators relevant both to an individual territory in different
periods of time, and to various districts at the same period of time. Poverty indicators
characterizing individual rural territories are also essential when implementing targeted social
policies. The above requirements make it impossible to use a traditional method of statistical

    Poverty Reduction Monitoring Survey, 2002. Dushanbe, 2003, page 40.
    Poverty Reduction Strategy Paper. Dushanbe, 2002, page 179.

observation that does not address the issues of measuring poverty among the rural poor in an
individual Jamoat, district and even region.
To analyse poverty and socio-economic conditions in the Zarafshan Valley the Project used
information available from various sources of different levels (republic, district, Jamoat).
The main republic level documents used by the Project include:
    1. Information Bulletin on Food Security and Poverty in the Republic of Tajikistan,
       February 2004. The above document also contains some findings of the Tajik Living
       Standards Survey carried out by the WB in 1999 and 2003.
    2. Poverty Reduction Monitoring Survey – 2002. The document was published in 2003 and
       describes the findings of the survey carried out by the Tajik Republic Goscomstat under
       the “Developing a poverty monitoring mechanism in the Republic of Tajikistan” Project
       funded by the Asian Development Bank (ADB). The findings are presented both for the
       Republic as a whole and by regions3;
    3. Socio-economic Conditions in the Republic of Tajikistan, January 2003. The document
       contains many socio-economic indicators for the Republic as a whole and some
       indicators for individual regions.
To analyze the situation at the district level the Project used the findings of the 2002 Survey of
the National Social Investment Fund of Tajikistan (NSIFT) conducted in Ayni and Penjikent
districts, as well as the data of the district socio-economic passports and information provided by
various district authorities.
The most detailed information on the rural living standards at Jamoat level is available from
household records that contain information on individual households that are annually updated
by Jamoat staff.
A representative sample panel survey of households may be the basis for monitoring rural
poverty in an administrative unit (district). However this option is rather expensive and requires
funding equivalent to the cost of the social programme that is currently being implemented in the

  “Monitoring of the Poverty Reduction Strategy requires regular data collection through a system of frequent
surveys focused on the key living standards indicators:
   demographic
   education
   population health
   labour market development
   housing conditions and utilities
   priorities of households
   enjoyed social services and access to them.

i.e. the survey that can provide a rapid assessment of the population‟s living standards. Poverty Reduction
Monitoring Survey of 2002 (PRMS) is deemed such a survey.
According to the agreement with the Tajik Republic Government dd. 13 September 2001, the Asian Development
Bank (ADB) endorsed the technical assistance programme for Tajikistan to build a poverty monitoring mechanism.
The ADB Project “Developing a poverty monitoring mechanism in the Republic of Tajikistan” was signed off on 3
October 2001.
In August-September 2002, the Tajik Republic Goscomstat (State Statistics Committee) that is an implementing
organization under the above programme (Project ТА-3719-TAJ) carried out a Poverty Reduction Monitoring
Survey (PRMS) of the population covering 6,000 households (2,000 urban and 4,000 rural), located in all parts of
the Republic. This has been the largest survey in terms of the number of households that were selected to provide
information on living standards of the population”, Poverty Reduction Monitoring Survey 2002, Dushanbe 2003, pp.

district. Moreover the monitoring tools used for surveying households‟ budgets are rather
complicated and require accurate keeping of household diaries.
In disadvantaged districts economic hardships are accompanied by degradation of human
resources which affects their abilities to keep regular records accurately. In Tajikistan,
unemployment and permanent stress associated with the fear of losing a job and not being able to
find another one, not receiving the wages in time, being unable to buy the essentials for the
children‟s school year are reasons for increasing drugs abuse. Families affected by this process
are unable to fully and accurately record all their expenses and incomes because drug addicts
conceal from their near and dear their spendings, while the drug addicts themselves are incapable
of keeping regular records of what they made and spent. Unemployment, wages arrears and other
factors causing such stress are more numerous and widely spread in rural areas as compared to
urban areas. As a result the share of rural families affected by degradation is also larger. Constant
stress and increasingly poor education without drugs or alcohol abuse are strong enough factors
to have a negative impact on the people‟s capabilities to keep records of all household incomes
and expenditures thoroughly and accurately for a long period of time. In view of the above it will
be practically impossible to comply with the principle of equal probability for getting a random
household into a sample. In case the economic situation deteriorates the share of rural residents
incapable of using the above monitoring tools may be only increasing over years to come.
The Zarafshan Regional Development Initiative Project offers another approach to monitoring
which is based on the data obtained from official household records and existing state and
administrative statistics supplemented with the data obtained from one-off sample surveys and
expert conclusions. This allows to minimize the monitoring costs and to obtain sufficiently
reliable information on changes in rural poverty.
Household records are the main source of information on rural incomes under such an approach.
The format of household records has been developed by state authorities. They are filled in by
Jamoat staff. The household records contain annually updated information on each household
located on the target area, including:
       list of residents,
       date of birth of each resident,
       education,
       employment (job and position),
       pension;
       size of land plot,
       areas under crop for main crops,
       number of animals owned by the household.
Maintenance of household records is the responsibility of Jamoats. District Statistics
Departments accumulate all the data. Household records are updated once every several years in
a consistent way which enables to make comparisons of various years.

2.2.2. Key concepts and definitions
Poverty level, the most common indicator, is a share of the population whose incomes are below
the poverty line or subsistence minimum (SM). If an “n” number of residents live in a given area
and “q” of them live in households with incomes below the subsistence minimum, the poverty
level will equal to “q/n”.

Subsistence minimum (SM) is the cost value of an in-kind set of foodstuffs taking into account
diet requirements and ensuring the minimal necessary calories as well as the cost of
indispensable non-food goods and services. Until the Republic of Tajikistan adopts the Law on
Subsistence Minimum the poverty line may be considered equal to a certain value accepted in
international practice.
Securing access of all residents to legal income sources in contrast to achieving a certain
consumption standard is of crucial importance for the successful Poverty Reduction Strategy
implementation. Such an approach entails a less paternalistic state orientation on the one hand
and a more active position of the residents on the other hand.
Statisticians around the world are currently debating whether the income level or consumption
level should be compared to the subsistence minimum. The Project believes it should be the
income level.
Here is why the Project favours using the income related rather than consumption related
Firstly, the income indicator better reflects the accessibility of various benefits to households
than the consumption indicator. Low consumption level may be a voluntary choice made by
well-off people, so if we use the consumption indicator we will have to add this group of people
to the poor category which is not true. The changes in the consumption level over the
implementation period of this or that programme can be measured through qualitative survey
methods (for instance, conducting focus-groups using PRA techniques). Such surveys should be
conducted at the preliminary and final stages of the programme which will complement the
overall analysis based on studying the dynamics of the income indicators.
The second reason in favour of comparing incomes and not consumption to the subsistence
minimum is the fact that the list of income sources of the majority of the population is relatively
short. Having obtained estimations of incomes per each income source we will have sufficiently
full information on the access of each rural household to legal sources of income.
The produce grown on household plots that was not sold but consumed by the family can be
assessed as an in-kind income calculated at average local market prices for respective products.
It is true that over a period of one year the level of rural income changes more sharply than the
level of consumption, however the annual averages will not be affected by the difference.
Resources constraints for monitoring poverty (or prosperity) that make a representative sample
panel survey of households in each district (and even in each region) unaffordable should also be
taken into account.

2.2.3. Objectively verifiable indicators
The proposed methodology to calculate objectively verifiable indicators (OVIs) is based on
official records that ensure a certain comparability of quantifiable indicators. However official
records have a number of drawbacks – they are not complete and, besides, may be inaccessible to
the Project specialists (very much depends on the good will of relevant officials).
The OVIs given below characterize access of residents to:

I.    legal sources of income (salaries, pensions, household plots)
II.   jobs, including self-employment
III. land
IV. education

V.    technical resources
VI. housing conditions

Group I:               Residents’ incomes
1. In 2004, the average income per capita in Kolkhozchiyon Jamoat was 1.63 somoni per
   day (0.55 USD), in Rarz Jamoat – 1.41 somoni per day (0.47 USD).
2. The poverty level – share of rural residents living in households whose incomes are
   below the subsistence minimum – (until the Law on Subsistence Minimum is adopted the
   poverty level is considered to be $1 which purchasing power is determined by local prices of
   the current year) was 84% in Kolkhozchiyon Jamoat and 89% - in Rarz Jamoat.
Information sources: household records and residents‟ survey.

Group II:              Access to jobs
3. share of residents having a job in the total able-bodied population;
4. share of women having a job in the total able-bodied female population.

                                                                                           Table 2.1
As of 01.01.2005
In kishlaks                  Share of residents having a job of   Share of women having a job of the
                            the total able-bodied population, %      total able-bodied women, %
Gusar                                        28.2                                27.0
Mazori Sharif                                40.0                                39.1
Bakhor                                       69.6                                64.3
Novobad                                      39.4                                35.2
Varzikanda                                   69.7                                40.9
Kumok                                        58.3                                67.0
Zavron                                       67.5                                42.9
In Kolkhozchiyon Jamoat                      39.0                                36.3
Fatmev                                       48.8                                43.4
Guzari Bod                                   45.6                                33.8
Ispagn                                       65.7                                48.1
Rarz                                         62.8                                49.1
Pokhut                                       45.4                                35.1
Sairon                                       59.3                                34.4
Fatmovut                                     38.2                                27.6
Shavatki Poyon                               36.7                                26.6
Shavatki Bolo                                44.2                                40.0
In Rarz Jamoat                               49.6                                38.6

Information source: household records

With one exception the share of unemployed women is higher than that of unemployed men in
all the kishlaks. We should bear in mind that the household records do not contain information
on employment and positions of labour migrants the majority of whom are men. The household
records characterize access to local jobs only.

Group III:            Access to land
5. average area under crops per kishlak resident;
6. average irrigated area under crops per kishlak resident.
                                                                                        Table 2.2
Land used by households, as of 01.01.2005
In kishlaks                      Average area under crops      Average irrigated area under crops
                                  per kishlak resident, ha          per kishlak resident, ha
Gusar                                      0.028                             0.022
Mazori Sharif                              0.033                             0.025
Bakhor                                     0.055                             0.039
Novobad                                    0.041                             0.041
Varzikanda                                 0.055                             0.055
Kumok                                      0.027                             0.027
Zavron                                     0.048                             0.048
In Kolkhozchiyon Jamoat                    0.035                             0.030
Fatmev                                     0.012                             0.012
Guzari Bod                                 0.012                             0.012
Ispagn                                     0.011                             0.011
Rarz                                       0.014                             0.014
Pokhut                                     0.022                             0.022
Sairon                                     0.017                             0.017
Fatmovut                                   0.019                             0.019
Shavatki Poyon                             0.013                             0.013
Shavatki Bolo                              0.013                             0.013
In Rarz Jamoat                             0.015                             0.015

Information source: household records

The distribution of land used by households per kishlak is not equal. In Kolkhozchiyon Jamoat
the most populated kishlak – Gusar – has the least land per resident. Residents of distant
Varzikand and Zavron kishlaks have more land per capita. In mountainous kishlaks of Rarz
Jamoat the availability of land is even lower and does not exceed 0.022 ha per resident (Table
The average figures per kishlak, though, do not give the idea of how the land is distributed
among families. Computerisation of household records could make it possible to get data on how
land and other resources are distributed among rural families.

Group IV:             Access to education
7. share of literate adult population.
As of 01.01.2005, the figure for Kolkhozchiyon Jamoat was 100%, and for Rarz Jamoat – 98%,
which is almost universal literacy – part of the Soviet legacy. Household records do not contain
data on school attendance. This can only be obtained through a survey.

8. share of residents with higher education in the total able-bodied population;
9. share of women with higher education in the total able-bodied female population.

                                                                                              Table 2.3
As of 01.01.2005
In kishlaks                    Share of residents with higher         Share of women with higher
                             education in the total able-bodied     education in the total able-bodied
                                      population, %                      female population, %
Gusar                                        2.9                                   4.5
Mazori Sharif                                2.5                                   0.3
Bakhor                                       3.3                                   0.3
Novobad                                      5.4                                   2.1
Varzikanda                                   8.4                                   0.8
Kumok                                        2.9                                   0.3
Zavron                                        0                                     0
In Kolkhozchiyon Jamoat                      5.0                                   2.9
Fatmev                                       6.7                                   0.3
Guzari Bod                                   5.6                                   0.4
Ispagn                                       7.9                                   2.6
Rarz                                         5.3                                   3.0
Pokhut                                       2.9                                   1.3
Sairon                                       6.0                                   1.9
Fatmovut                                    11.2                                    0
Shavatki Poyon                               5.5                                   0.7
Shavatki Bolo                                7.1                                   0.6
In Rarz Jamoat                               5.3                                   1.4
Information source: household records.
Traditionally, Tajik families do their best to ensure that their sons, their future breadwinners, get
a higher education in the first place. In Rarz Jamoat which is farther from any big towns this
trend is more obvious than in Kolkhozchiyon Jamoat. Daughters as a rule leave their parents‟
home after marriage and do most of the household chores in their husbands‟ families which is
considered not to require any special education. Rural residents who managed to get a higher or
secondary vocational education tend to look for employment in cities where it is easier for them
to find a job that matches their qualification. Therefore, in general, the share of rural residents
with a higher or secondary vocational education is not large (less than 10%).
10. share of residents with secondary vocational education in the total able-bodied population;
11. share of women with secondary vocational education in the total able-bodied female
                                                                                              Table 2.4
As of 01.01.2005
         In Kishlaks           Share of residents with secondary        Share of women with secondary
                                vocational education in the total       vocational education in the total
                                  able-bodied population, %            able-bodied female population, %
Gusar                                         4.3                                     4.8
Mazori Sharif                                 1.9                                     1.0
Bakhor                                        4.4                                     3.9
Novobad                                       4.8                                     3.3
Varzikanda                                    3.5                                     1.5
Kumok                                         3.5                                     3.4
Zavron                                         0                                       0
In Kolkhozchiyon Jamoat                       4.1                                     3.8
Fatmev                                        4.4                                     0.7
Guzari Bod                                    6.5                                     3.7
Ispagn                                        3.6                                     1.3
Rarz                                         3.3                                       3.7
Pokhut                                       10.2                                      1.0
Sairon                                       8.2                                        0
Fatmovut                                     5.6                                        0
Shavatki Poyon                               5.1                                       0.5
Shavatki Bolo                                5.3                                       1.7
In Rarz Jamoat                               6.1                                       1.8
Information source: household records.

Group V:              Access to machinery
The increasing role of household plot farming in agricultural production and importance of
household plots as a source of livelihoods requires improved access of rural families to
machinery and other technical resources. Household records contain information that enables to
monitor the following indicators:
12. Share of households having a tractor in the total households;
13. Share of households having a car in the total households;
14. Share of households having a motor-block unit in the total households.
                                                                                              Table 2.5
As of 01.01.2005
       In kishlaks           Share of households        Share of households     Share of households
                               having a tractor            having a car       having a motor-block unit
Gusar                                0.4                       12.2                     2.1
Mazori Sharif                        0.7                        8.0                     1.7
Bakhor                               0.3                        4.8                     0.6
Novobad                              0.5                       15.6                     1.9
Varzikanda                           0.3                        3.2                     0.3
Kumok                                0.7                        9.2                     3.9
Zavron                                0                         1.2                      0
In Kolkhozchiyon Jamoat              0.4                       10.8                     1.8
Fatmev                                0                         6.7                      0
Guzari Bod                            0                         5.8                      0
Ispagn                                0                         5.5                     1.8
Rarz                                  0                         4.2                      0
Pokhut                                0                         8.2                      0
Sairon                                0                         4.2                      0
Fatmovut                              0                         3.8                      0
Shavatki Poyon                        0                         2.2                      0
Shavatki Bolo                         0                         2.1                      0
In Rarz Jamoat                        0                         4.7                     0.05
Information source: household records.
Cars in rural families are not so rare: in Kolkhozchiyon, every ninth family has a car, in Rarz –
every twentieth. As for agricultural machinery – motor-block units and tractors – these have been
so far practically inaccessible to rural families.

Group VI:             Housing conditions
Household records enable to identify the following indicators for rural housing conditions:
15. share of households having a gas supply installation in total households;

16. share of households having a water supply system;
17. share of households having a telephone.
                                                                                               Table 2.6
As of 01.01.2005
       In kishlaks           Share of households         Share of households     Share of households
                             having a gas supply        having a water supply   having a telephone, %
                               installation, %               system, %
Gusar                                 0                         20.1                    27.6
Mazori Sharif                         0                         12.3                    0.7
Bakhor                                0                         14.0                    0.6
Novobad                               0                         27.3                    13.4
Varzikanda                            0                           0                     1.6
Kumok                                 0                           0                     0.7
Zavron                                0                          7.2                     0
In Kolkhozchiyon Jamoat               0                         17.7                    15.9
Fatmev                                0                           0                      0
Guzari Bod                            0                           0                      0
Ispagn                                0                           0                      0
Rarz                                  0                           0                      0
Pokhut                                0                           0                      0
Sairon                                0                           0                      0
Fatmovut                              0                           0                      0
Shavatki Poyon                        0                           0                      0
Shavatki Bolo                         0                           0                      0
In Rarz Jamoat                        0                           0                      0
Information source: household records.
Although the electricity supply system is installed in every kishlak the electricity supply is quite
restricted, particularly in winter time. In their attempt to heat their houses residents cut down
trees, including juniper forests. This presents a major threat to the environment increasing the
mudflow risk.
There are households that have a water supply system and a telephone almost in every kishlak of
Kolkhozchiyon Jamoat, however they are not many: 17.7% and 15.9% on average respectively.
In Rarz Jamoat, there are no households with a water supply system or telephone whatsoever.
Amongst the OVIs which have been grouped into categories there are no indicators
characterising health of the population. Health statistics is in the same poor condition as health
care institutions themselves, particularly in rural areas. Access to medical services and their
quality is extremely difficult to estimate. The Project‟s attempt to get the information on the
number of children with disabilities (physically handicapped children) in the pilot Jamoat of
Kolkhozchiyon revealed that the actual number of such children was several times higher than
the number of officially registered children with disabilities who had had access to social
protection resources.

Integrated indicators:
18. average age at death by Jamoat
It can be assumed that the health situation has an impact on the mortality structure of the
population. The primary data to calculate the average age at death for a particular year can be
found in the household records. By proposing this indicator we assume that the better people live
the longer their lifetime period is.

The average age at death in Kolkhozchiyon Jamoat in 2004 was 59.0 y.o., in Rarz – 65.6 y.o.
Information source: household records.
The integrated indicators that follow characterize labour migration:
19. number of labour migrants;
20. share of labour migrants in the total able-bodied population
                                                                                            Table 2.7
As of 01.01.2005
         In kishlaks               Number of labour migrants         Share of labour migrants in the
                                                                     total able-bodied population, %
Gusar                                          607                                 14.7
Mazori Sharif                                  120                                 20.3
Bakhor                                         100                                 15.0
Novobad                                        301                                 16.4
Varzikanda                                      83                                 28.9
Kumok                                           88                                 12.9
Zavron                                           4                                 5.0
In Kolkhozchiyon Jamoat                       1303                                 15.8
Fatmev                                          53                                 0.8
Guzari Bod                                      51                                 9.5
Ispagn                                           0                                  0
Rarz                                            87                                 6.8
Pokhut                                          42                                 3.0
Sairon                                           3                                 0.9
Fatmovut                                         1                                 1.1
Shavatki Poyon                                  37                                 4.9
Shavatki Bolo                                   49                                 8.1
In Rarz Jamoat                                 323                                 5.6
Information source: household records and Jamoat administration data.
In Kolkhozchiyon, the share of migrants in the total able-bodied population is three times larger
than in Rarz. However this is most probably explained by a better developed interaction with the
Tajik community living in Moscow rather than by lower availability of jobs.
As a Russian saying has it, a man always seeks a better life. If household records were to be kept
electronically it could be possible to promptly compare those who move in with those who move
out of the area and see the changes in education and qualification to be able to monitor the
changes in the human potential as one of the most important development resources.
Although all aspects of livelihoods are equally important for monitoring, the analysis of the
situation usually starts with the first group of indicators characterizing access to legal (i.e. crime
free, not associated with any criminal activities) sources of income.

2.2.4. Data sources on rural incomes
The expert survey conducted under the current Project Stage helped to identify the following
sources of rural income in the pilot districts:
    1. wages
    2. pensions
    3. produce grown on household plots
    4. social allowances (child support, etc.)
    5. dole
    6. income from entrepreneurial activities
    7. income from property (land share rental payments, dividends from shareholding; for the
       majority of residents the latter income source may be more relevant in future than it is
    8. help from relatives working abroad.

The sources of information for each of the above points are described below:
1. Jamoats have data on average wages for enterprises located on the territory under their
   responsibility. Hukumats have data on average salary of budget sphere employees.
2. The District Social Protection Department has data by individual on pensions paid out within
   a year to each pensioner. This allows in principle to assign the information to each individual
   household. However, in contrast to Russia, the above data is not computerized.
3. The information on each private household farm can be obtained from household records that
   contain data on cattle and areas under main crops available to each family.
4. The District Social Protection Department has data by individual on social allowances paid
   out within a year. The data are not computerized.
5. The Employment Service has data by individual on paid out doles and students‟ maintenance
   allowances. The data are not computerized.
6. The estimation of income received through entrepreneurial activities can be obtained from
   entrepreneurs themselves (this will not be difficult as their number in rural areas is not big;
   alternatively, we can consider a hypothesis stating that incomes of registered entrepreneurs
   exceed subsistence minimum for their family).
7. So far rural residents have not received any land share rental payments or dividends on their
   shareholding. Renting out a flat (house), or providing any other rural tourism services are not
   yet popular.
8. Jamoats collect data on labour migrants for every rural family on a regular basis (particularly
   during the election campaigns). However to quantify such assistance provided by labour
   migrants to their families is deemed possible only though a survey.
The above mentioned information sources do not allow to estimate unregistered 4 economic
activity that is not evidenced by any official documents: additional earnings from working for
well-off neighbours, entrepreneurs, operating off farm businesses or providing services from
homes. Despite the favourable environmental situation and natural beauty of the area rural
tourism is practically non-existent. Local residents, as a rule, have no skills in providing
adequate services for tourists.
According to specialists of the District Statistics Department, household records that are kept for
all rural territories of Tajikistan are the most complete and quite reliable source of information
on demographic, including dependency burden, and educational structure of the rural
households. This is one of the best designed and maintained forms of reporting. Household
records contain information on every household. The important thing is that the records are
updated every year. There one can find the information on permanent employment of every
working family member, old-age or disability pensioners, household plot farm, machinery
available and housing conditions. This information can be used as a basis for computed estimates

  The term unregistered means economic activity that is not formally recorded according to the existing legislation
requirements. Criminal economic activity is part of unregistered economic activity.

of incomes generated by a household. Having studied household records the Project revealed that
not all their columns are filled in accurately and fully. The best completed columns are the ones
that contain the first and family names of a rural resident, his/her gender, age, education, place of
employment, whether he/she receives any pension, as well as the columns that describe the
availability of cattle and subsidiary land holdings. Information describing areas under this or that
crop is often omitted.
Each Jamoat employs specialists who fill in household records based on the information
provided by every rural family. Almost all these specialists live in the same rural area where the
households which records they are keeping are located. It is true that the information provided
for the records may be inaccurate because some residents tend to give incorrect information on
purpose, for example, they may underreport cattle heads. However these distortions can hardly
be significant as production and consumption processes in rural areas are relatively transparent.
These distortions will be even less significant when considering the changes that are reflected
through indicators‟ correlation/ratios over a number of years. There are no grounds to believe
that the distortions in the primary data of the household records are higher than those of a sample
survey. Statistical calculations and estimates published by authorities is quite another matter. The
distortions there may turn out to be quite significant. However the Project monitoring is based
on the primary household records data, and not on official estimations.
Direct data on the size of such income as wages, pensions and allowances received by household
members are not registered in household records, therefore for the purpose of income estimation
the information taken from household records should be supplemented by information taken
from other sources. There are two alternatives to address this issue. First, household records can
be supplemented with personified information on pensions and social allowances obtained from
the district Social Protection Departments and Employments Services, and information on
average wages paid at each enterprise where such residents work. Second, missing data can be
obtained through a survey of residents. The first option would be easier to use if the personified
data were stored in computers. Unfortunately this is not the case for the Zarafshan Valley, so the
Project decided to obtain the missing information through a direct survey of residents (See
Appendix 1). The survey was carried out in October-November 2005. By that time the ZRDI
project staff had won sufficient respect of the local rural residents by their project work. Carrying
out a survey on such a delicate matter as income sources at the beginning of the project was not
The survey allowed the Project to collect personified data on various sources of rural incomes,
    wages of family members;
    additional earnings;
    pensions;
    produce grown on household plots;
    social allowances (child support, etc.);
    dole;
    income from entrepreneurial activities;
    help from relatives working abroad;
    income from property (rental payments for leasing a land share or/and providing a lodging,
     dividends from shareholding)
Rural teachers who received special training acted as interviewers. In Kolkhozchiyon Jamoat, a
sample survey was conducted in every kishlak. The households were selected from the total

households listed in the household records using a fixed step interval. In the most populated
kishlkas (with total households exceeding 800) every tenth household was selected. In the
kishlaks numbering over 200 households (but less than 800) the selected households comprised
30% of the total; in small kishlaks (numbering less than 200 households) the figure was 50%.
Refusals to take part in the survey were extremely rare. The surveyed sample in Kolkhozchiyon
Jamoat included 646 households with 3,965 residents.
In Rarz Jamoat, a general survey (census) was conducted in one kishlak called Fatmev (250
households with 1,249 residents).
                                                                                            Table 2.8
                                   Rural income sources in 2004
                                                Per resident per year,               %
               Income sources                          somoni
                                               Kolkhozchiyon      Rarz     Kolkhozchiyon      Rarz
 1.  Wages                                               100.8 115.9                 16.9      22.6
 2.  Additional earnings                                  53.1 110.5                  8.9      21.5
 3.  Pensions                                             27.6     14.7               4.6       2.9
 4.  Produce grown on household plots                    167.8 184.5                 28.2      35.9
 5.  Social allowances (child support, etc.)               3.4      0.7               0.6       0.1
 6.  Doles                                                 1.3         0              0.2          0
 7.  Income from entrepreneurial activities               43.2     23.2               7.2       4.5
 8.  Help from relatives working abroad                  180.7     63.4              30.4      12.3
 9.  Income from property (land share rental
     payments, dividends from shareholding)              17.3       1.3               2.9        0.2
 10. Other                                                0.3         0               0.1          0
 TOTAL                                                  595.5     514.3              100        100

The most important income sources include earnings of labour migrants, which they share with
their relatives living in kishlaks, and produce grown on household plots. The changes in the
former of the above income sources are difficult to monitor using any other methods but a
survey. It is also difficult to estimate how much this source of income is understated by the
respondents. However it can be concluded with all certainty that labour migration, mainly to
Russia, is a vital for the population process and therefore should not be ignored when managing
rural development issues. The Project suggests three lines of activities to support current and
future labour migrants:
       improving their language skills for working abroad;
       increasing awareness of their rights and ways to protect them;
       creating conditions that will ensure local demand for skilled workers as an alternative to
        working abroad.
Produce grown on household plots is another important income source. Virtually all rural
families are engaged in this type of activity. The survey findings have revealed that productivity
of such labour is extremely low. It can be improved by introducing and developing information
and consultancy services, co-operation, demonstration farms, etc. However expanded household
plot farms with improved productivity are unlikely to become the main source of rural income
and remove the problem of rural poverty. When the economic situation gets better rural residents
prefer employment in various enterprises to self-employment on their private household plot
farms. The experience of Russian rural development projects confirms that a rural family strives
to secure a certain minimum of resources focusing first of all on accumulating monetary rather
than in kind reserves. Since the main source of monetary income is wages (pensions – for elderly

people) the decision to expand or reduce production on a household plot farm depends on
whether or not wages and pensions ensure the necessary monetary minimum for the family:
1. In case wages are not paid or their payment is delayed rural families in order to ensure their
   monetary minimum start growing more products on their household plots for their further
   sale. Under such conditions household plot farms tend to expand. Roscomstat (Russian
   Statistics Committee) data show that household plots production growth was highest in the
   period when the share of population with incomes lower than the subsistence level increased
   (Table 2.9, correlation of the given indicators exceeds 0.7 and is significant at 0.05 level).
                                                                                                        Table 2.9
                Poverty level and increase in production on household plot farms
                Indicators                   1995     1996     1997    1998     1999    2000     2001      2002
% of population with monetary income
lower than subsistence minimum
                                             24.7     22.0     20.7    23.3     28.3    28.9     27.3      25.0
Index of physical volume of products grown
on household plots of the population, in %
                                             103.4    100.4    99.4    94.6     102.9   108.0    103.0     100.1
to previous year

2. In case the wages and pensions ensure the monetary minimum the family decides what to do
   with the grown produce to their advantage – to sell or consume5. The high adaptability of
   private household plot farms is explained by their low production volumes – if a family has
   1-2 calves for finishing and several sheep the difficulties with marketing are easily
   compensated by improved household consumption.
3. In case the wages, having exceeded the necessary minimum, continue to grow, household
   plot holders reduce production following the decreased sales because rural residents, young
   people in particular, prefer waged jobs to self-employment on household plot farms, which in
   its turn reduces the time available for work on their private plot.
Further development of private household plot farms and other income sources will show if the
above hypothesis is true for Tajikistan. Under the conditions when local wages are extremely
low work on household plots remains vital for rural families to survive.
Further growth of household plot farms‟ profitability in market economy is only possible if they
undertake specialization and increase the share of produce grown for sale. So far the produce of
household plot farms has been mainly produced for family consumption.
The least significance in the total aggregate rural income have such sources as child support
allowances and doles – together they account for less than 1%. The role of pensions is not
significant either – less than 5%, which is explained both by a relatively small number of
pensioners in the total population (less than 7%) and by a very low pension size.

2.2.5. Poverty profile
Generally poverty risk is higher for those living in rural areas. Tajikistan is no exception in this
respect. However depending on prevalence of a particular poverty group the priority in the
poverty reduction effort will be:

  For instance, in Lodeinoye Pole rayon (Russia), the meat prices in 2001 were nearly one and a half times higher
than in 2000 and the volume of meat sold by household plot holders increased by the same amount. The next year
when the wages started to go up the meat prices dropped and the volume of meat sold decreased by five times.

          either securing access of the most vulnerable categories of population – aged citizens,
           disabled, large families – to targeted social protection programmes,
          or increasing incomes through enhancing opportunities for employment and self-
           employment, increasing productivity of labour, farm revitalization, support to small
           scale businesses, and diversification of rural economy. In this case development
           programmes are primarily targeting the population groups having relatively higher
           professional and educational potential, and in a lesser extent those with a lower work
In the pilot districts, the population groups that run the highest risk of drifting into poverty are
the same as everywhere. The most vulnerable households are those having small children,
particularly large families. Unemployment also makes the risk of poverty higher even if the
unemployed manages to get a dole. So far, the increased pensions have not enabled single
pensioners to drift out of poverty. The main risk group among adults are young people aged 16-
19 who are unable to continue their education after school and acquire a qualification that would
allow them to get a job with a salary at least equal to the subsistence minimum. Many of them
have to migrate in search of employment.
The poverty reduction effort in the pilot Jamoats should be based on the second listed strategy
because the able-bodied population accounts for over a half of the total population (53% in
Kolkhozchiyon and 58% in Rarz). The residents‟ educational potential is quite high – in
Kolkhozchiyon, there are no illiterate among adults; in Rarz, their share in the able-bodied
population is 1.5%. Over a half of total residents have general secondary education (10-11
classes at school) or post-secondary education. It is obvious, therefore, that the Project should
seek to increase incomes through enhanced employment and self-employment and improved
labour productivity in the first place. This, however, does not mean that working with the most
vulnerable groups of the population is not necessary. The ZRDI Project has undertaken an effort
to improve access of disabled children to medical services and social protection resources. In
Kolkhozchiyon Jamoat, a mobile medical crew has been set up on the basis of the local rural
hospital that has examined sick children from all the kishlaks, drawn up medical opinion
statements determining the disability group (when appropriate) and collected the documents
necessary for issuing disability pensions.

2.2.6. Mobility of income groups
RosAgroFond‟s previous experience in rural development projects has shown that measuring
poverty using both methodologies – household budgets survey and using database of household
records – produces similar results. However it is the methodology that is based on household
records that allows to monitor mobility of various household groups in terms of changes in their
income and to reveal their responsiveness to various poverty reduction programmes as well as to
measure the impact of such programmes.
The timescale did not allow the Project to conduct a meaningful analysis of changes in incomes
and reveal the responsiveness to project facilitated opportunities during Phase 1 of the Project.
However, when designed, the methodology was not supposed to fit into the given timescale. It
was developed to meet the request of the Monitoring Department of the President‟s
Administration to offer a rural poverty monitoring methodology for Tajikistan.
To illustrate, below are some findings of the Russian SRLP project received for 532 households,
for which the data was available in household records for the years 1999, 2000 and 2001 (the
other households either were newly created or went out of existence over the given period of
                                                                                         Table 2.10

     Economic mobility (by income) of various household categories over 1999-2001*, %
         Household category                 Income decreased       Income             Remained
                                                                  increased           unchanged
Single persons of working age                     14.8              55.6                 29.6
Single persons of pension age                     41.0              14.3                 44.8
Spouses without children                          29.3              26.8                 43.9
Spouses with children below 16                    0.0               60.0                 40.0
One-parent families with children                 5.6               50.0                 44.4
below 16
All households                                    18.6              38.5                 42.9
            * according to Household Records Database
All households were divided into three groups: (1) – with income below the food basket (FB),
(2) – with income above the FB but below the subsistence minimum (SM), and (3) – with
income above the SM. If, in 2001, a household moved to a lower income group it manifested
income decrease; if it moved to a higher income group it manifested income growth; if it
remained in the same group as in 1999 its income status was considered to remain unchanged.
The most vulnerable over the given period of time proved to be single pensioners (Table 2.10).
They need social welfare assistance – the share of those whose income decreased in this category
is higher than in other categories and than for all households: 41.0% against 18.6%. The project
that mainly aimed at increasing employment had the least effect on households of aged single
persons and aged spouses. They had not been attracted by the project offered mechanisms in
support of employment and self-employment (entrepreneurial activities).
Families with children under 16, both one-parent and two-parent families, more frequently
improved their status (Table 2.10). They were also the ones who had manifested a higher
involvement in the project. Other surveys and research, including the ones conducted under the
project, also confirmed that availability of children-dependants in a family was the most
powerful incentive for the economic activities of the parents.
What changes did the project participating households manifest?
                                                                                          Table 2.11
                                 Changes in rural households’ incomes*, %
      Income level                          1999                                 2001
                               project         non-participants     project         non-participants
                             participants                         participants
 Below FB                        38.4                   35.1          20.8                34.3
 Above FB but below              47.2                   42.1          35.8                30.3
 Above SM                      14.5                 22.8             43.4                35.4
 All households             159 (100%)           373 (100%)       159 (100%)          373 (100%)
            * according to Household Records Database
Firstly, the project involved households which wellbeing was relatively low. Secondly, despite
the worse starting conditions they manifested better results getting out of poverty in 2001 than
those who did not participate in the project. If in 1999, the income level of participating
households was lower than that of non-participants, in 2001, the situation changed – only 21% of
project participants continued to have income below the food basket, i.e. twice as few as in 1999
(whereas non-participants manifested practically no change). The number of project participants
who started earning more than the subsistence minimum increased threefold as compared to
1999 (whereas the number of non-participants increased only by 1.5 times).
Better response to project offered opportunities was also facilitated by education level – the share
of people with higher and special secondary education who sought assistance from the project
was almost 1.5 times higher than of those who did not participate in the project.
The above experience accumulated during the rural development project implementation in
Russia can be used to contribute to the realization of the Tajikistan Poverty Reduction Strategy,
both for identifying target groups and for poverty reduction monitoring.

2.2.7. Conclusion
Household records are a state required document containing detailed and annually updated
information on each rural household. Using this information for poverty monitoring in a
particular district (or any other rural territory) makes conducting a sample survey of households‟
budgets in the given district unnecessary. As a result the Project can save resources. In Jamoats,
household records are maintained on paper (not electronically). However, since the demand for
such information by numerous departments and agencies grows it is recommended that Jamoats
are gradually equipped with computers and the data be transferred to electronic media.
In the course of rural development projects implementation RosAgroFond developed a software
for household records maintenance. Using this software will significantly reduce labour intensity
associated with the household records maintenance even taking into account the extra workload
related to collecting additional data.
The above additional data is necessary as the information on the size of such income as wages,
pensions and welfare allowances of household members is not recorded in the household records.
There are two alternatives to address this issue. First, household records can be expanded to
include data on family income from various sources. This information will be provided by the
residents on a voluntary basis. However refusal to provide such information will make them
ineligible to obtaining public welfare payments. Poor people as a rule do not try to conceal their
income sources. Besides when applying for various public welfare payments the applicants
always have to provide information on their income, therefore expanding the household records
forms is unlikely to cause any problems. Relatively well-off people whose income significantly
exceeds the subsistence minimum will be less inclined to reveal their income.
The second option to obtain the additional data would be to conduct a survey asking residents
about their income. The Project used this approach because household records forms are
approved for the period of 5 years and it was not possible to amend them in any way during
Phase 1 of the Project. Therefore we will limit our recommendations to improvements of
household records keeping.
Since keeping household records equals to continuous survey of households the Project after
introducing some improvements to the process will get a chance to more accurately measure the
changes in incomes of various categories of households and monitor the impact of the Project
interventions on these categories. For example, families with under-age children more willingly
and more often participated in project supported economic activities and initiatives aimed at
enhancing employment opportunities and as a result many of them managed to improve their
well-being. Young people who just finished school and had neither a profession nor any work
habits nor children to take care of continued to run a high risk of drifting into poverty. Obviously
this group requires some very specific support, i.e. creating opportunities that will enable them to
acquire professional worker‟s skills that are in demand on the existing labour market. These
findings following the analysis of the data received look quite logical now, however they were
not so obvious when we only started implementing the project and conducting poverty
monitoring. The household records based methodology enables to monitor mobility of various

household groups depending on their incomes, to identify their responsiveness to Project
interventions and to assess the Project impact.
Measuring poverty in Russia using both methodologies – household budgets survey and
enhanced household records maintenance – produced similar results thus proving the reliability
of received assessments. Since the format of household records keeping in Tajikistan is very
similar to that used in Russia the application of Russian experience seems justified.

 3. Developing mechanisms for sustainable rural livelihoods
                  and poverty reduction

3. Developing mechanisms for sustainable rural livelihoods
and poverty reduction
3.1. Creating Jamoat Resource Centres
3.1.1. Reasons for creating, underlying legal basis, setting up procedure
and organizational structure of Jamoat Resource (and Advocacy) Centres
Jamoat Resource Centres (JRCs) are crucial and effective mechanisms used by UNDP for
community mobilization. JRCs are formed with direct participation of communities living in the
pilot Jamoats. JRCs contribute to local governance by encouraging participation of individuals
and civil society in representing the interests of their territories and involving officials in
addressing problems of the community.
The aim behind setting up JRCs was to contribute to poverty reduction by assisting citizens in
exercising and protecting their civil, economic and social rights and freedoms; providing
consultation support; awareness raising and supporting local authorities in addressing socio-
economic needs. To achieve the above the Jamoat Resource Centres have been assisting local
authorities and communities in improving social and economic living conditions through:
    disseminating socially important information among residents;
    assisting in implementing social infrastructure rehabilitation projects, issuing loans
     (including micro loans);
    organizing cultural and sports events;
    conducting awareness raising campaigns;
    publishing and disseminating printed mass media (newspapers, magazines, bulletins,
    providing consultation support on farming, veterinary, economics, environment and other
JRCs are independent, non-governmental, non-for-profit public organizations that carry out their
operations in conformity with the Constitution, effective laws of the Republic of Tajikistan,
international agreements signed by the Republic of Tajikistan, other legislative documents and
their own Charters. All the JRCs established and functioning in the Republic of Tajikistan with
support of the UN Development Programme are formally registered in conformity with the Law
“On Public Organizations” and are, therefore, legal entities with all the rights and liabilities
consequent thereon.
UNDP specialists working in Tajikistan have an extensive experience in community
mobilization and setting up public organizations at Jamoat level, the first Jamoat Resource

Centres being established in the Rasht Valley as far back as 2001. To date, over 90 JRCs have
been set up and operational in different parts of Tajikistan. In the course of implementation of
various development programmes and projects UNDP developed and introduced a number of
practical methods for creating Jamoat Resource Centres, building their capacity and providing
support to local initiatives.
The above methods have been successfully tested and proved effective. They were used by
UNDP and RosAgroFond specialists to set up JRCs in Rarz Jamoat of Ayni district and
Kolkhozchiyon Jamoat of Penjikent district of Tajikistan under the Zarafshan Regional
Development Initiative. In their effort to set up the JRCs the specialists applied a certain
sequence of actions that depending on their nature and objectives could be sub-divided into
several stages:
    holding initial familiarization meetings with the administration and most active Jamoat
     members to present the goal and objectives of the project, securing agreement to and
     endorsement of the idea to set up a public organization – Jamoat Resource Centre. The
     meeting at this stage requires participation of representatives of all kishlaks that make up
     the Jamoat;
    holding meetings in every kishlak of the Jamoat to elect through secret balloting leaders
     and kishlak representatives to be delegated to participate in the JRC General Meetings;
    holding a final general meeting attended by all the elected members of the General
     Meeting to elect the JRC executive body comprising the director, deputy director and
    selecting through open competition qualified staff for salaried work in JRCs, namely,
     Accountant, Revolving Fund Manager, and Credit Officers;
    carrying out registration formalities for the newly created organization;
    developing and delivering training to build capacity of JRC members and staff.
During the initial local meetings held in Jamoats the Project specialists discussed the Project goal
and objectives not only with the Jamoat Chairman but also with kishlaks‟ representatives and
leaders – heads of Makhalla (neighbourhood) Committees. At the same meeting the issue of
providing premises for the Jamoat Resource Centre by the Jamoat administration was also
A crucial condition for conducting successful meetings within communities was maximum
participation of the kishlak population. In this way the Project created favourable conditions for
further elections, ensuring their transparency and legitimacy in the opinion of the community
members. As a result the community representatives delegated to work in the JRC acquired a
status of “people‟s envoys” reducing the chances of any further conflicts to a minimum. Another
challenge for the Project facilitators was to offer the people an appropriate voting method that
could guarantee their truly democratic choice. As practice showed, open ballot turned out to be
an unacceptable alternative, therefore the UNDP approach calls for ensuring secret ballot by all
possible means. Using labour-intensive and expensive ballot papers was not justified for the
Zarafshan Valley with its remote and difficult to access population clusters. Therefore UNDP
specialists used a number of simple but quite effective secret ballot methods to work with rural
These included simplified voting cards (voters wrote down their candidate‟s names on cards and
dropped them into the voting box) and matrix voting (voters chose the voting box that carried the
name of their preferred candidate to drop their cards). UNDP and RosAgroFond specialists
applied the first of the above mentioned methods when facilitating elections in the kishlaks of the
pilot Jamoats. This ensured a high level of democracy during the elections. As a result each

community (kishlak) meeting elected three representatives one of which was to become a regular
JRC member and the other two – members of the JRC General Meeting.
A final general founding meeting attended by all the elected members was the second step in
setting up a JRC. This meeting elects through secret ballot the management of the organization,
discusses and approves its Charter. The minutes of the meeting are the basis for further official
registration of the JRC as a public organization.
To ensure effective functioning of the JRC as an organization the decision is made to employ a
salaried Accountant. As this position, as well as the positions of the Revolving Fund Manager
and Credit Officers, requires a high level of responsibility and qualification the JRC holds a
competition to fill in the vacancies. The competition is organized and conducted with direct
involvement of UNDP specialists which enables the JRC to select the most qualified and
motivated specialists among the Jamoat residents.
The last but not least step in the process of setting up a JRC involves work aimed at capacity
building of the newly created JRC. This includes provision of not only an appropriate office
space and modern office equipment but also, and to a larger extent, training aimed at enhancing
skills and knowledge of JRC members and staff. This entails development and delivery of a
training package and organization of study visits to more mature JRCs located in other parts of
the country. The most effective training package developed and currently used by UNDP
consists of four blocks and includes 15 topics.

                    Block 1                                             Expected Outputs
  1    NGO and a community                             Participants have skills and knowledge necessary
  2    Strategic planning                              to do strategic planning, define job responsibilities
                                                       of JRC members, and manage micro-finance
  3    RT Law on public organizations                  projects in conformity with the current RT
  4    Team building and conflict management           legislation; are aware of and able to apply
  5    Micro-financing                                 international standards of accounting, manage the
  6    Organization of micro-finance activities        Revolving Fund, monitor targeted use of borrowed
  7    Business planning                               capital by project beneficiaries, etc.
  8    Financial management
  9    Basic accounting
                                                Block 2
  10   Facilitation skills                          JRC members and Revolving Fund staff have
  11   Participatory prioritization of rural needs skills and knowledge in the area of facilitation,
       (PRA)                                        community mobilization and community driven
  12   Project proposal development                 problem solving; are aware of and able to identify
  13   Funds raising. Project sustainability.       priorities, develop project proposals and funds
                                                    raising plan.
                                                Block 3
  14   Computer literacy                            JRC members and Revolving Fund staff are
                                                    computer literate and are constantly improving
                                                    their computer skills.
                                                Block 4
  15   Advocacy                                     JRC members and Revolving Fund staff
                                                    understand the concept of advocacy and have basic
                                                    knowledge in the area of advocating interests of
                                                    various civic groups, civil society and influencing
                                                    decision making processes.

To increase the efficiency of training and ensure better learning conditions for JRC members
UNDP sometimes contract experienced NGOs. For example, UNDP signed a contract with the

Association for Support of Development Processes “NAU” to provide highly professional
training for JRC members under the Zarafshan Regional Development Initiative. The training
was delivered using interactive techniques, including role plays, discussions and group work that
kept the participants focused all through the workshop and encouraged their more active
UNDP specialists are continuously monitoring such training events ensuring in this way their
high quality and availability of professionally-developed handouts.
In addition a 2-day study visit to a more mature JRC of Asht district, Sogd region, was
organized. Rarz and Kolkhozchiyon JRCs members had a chance to see in practice the work of
their counterparts. In other words, theoretical knowledge was complemented with an opportunity
to watch practical work that produced a highly positive effect.

3.1.2. Revolving Fund: set-up and operations mechanisms
Zarafshan Regional Development Initiative established Revolving Funds within Rarz (Ayni
district) and Kolkhozchiyon (Penjikent district) Jamoat Resource Centres. The Revolving Funds
(RFs) are public non-for-profit foundations. The interest rate they offer enables economically
active population to take loans which otherwise they are unable to obtain (e.g. bank loans).
The Revolving Funds use borrowed or non-repayable capital and are set up to improve access to
financial resources and in this way to contribute to overall poverty reduction.
Revolving Funds are staffed through open competition and employ Manager, Accountant and
Credit Officers. More specialists are hired as the loan portfolio grows in size. Each RF staff
member has a clearly defined scope of responsibilities with regard to RF capital management. To
improve their efficiency RF personnel together with JRC members go through a series of training
in loan portfolio management, book-keeping, basics of micro-financing, working with clients,
The non-repayable capital (grant) is legalized through a grant agreement in accordance with the
donor requirements and current legislation and is credited to the current account of the JRC.
Loans are provided in cash. All accounting operations are formalized through a bank and are in
strict conformity with the current legislation.
A Revolving Fund is run by the Loan Management Committee that comprises representatives of
makhallas and kishlaks of the Jamoat, RF Accountant, Manager, Credit Officers, representatives
of local self-government, donor organization, specialists of projects which funds are used to
achieve the agreed target. Each Loan Management Committee member enjoys one vote in
decision making. The casting vote belongs to the person who chairs the meeting. Loan
Management Committee members take turns to be in the chair.
The Committee meets once a month to consider applications of potential borrowers. The key
responsibilities of the Loan Management Committee may include:
    Evaluating applications and analyzing documents prepared by Credit Officers.
    Approving, rejecting or adjusting the loan size recommended by the RF Credit Officer
     and Manager.
    Keeping minutes of the Loan Management Committee meeting and submitting them for
     consideration and approval by the organization.
    Analyzing and approving/ rejecting RF monthly operational reports submitted by the RF

Once the Revolving Funds receive the money they carry out marketing research and develop
financial products. The information on loans that can be provided is advertised in mass media,
posted on information stands of the pilot territories, and disseminated at meetings with residents.
The applications submitted are all recorded in the log-book for registering loan applications. The
RFs develop selection criteria for borrowers, scheme and loan repayment period. Following the
formation of solidarity groups the RF staff carry out initial client monitoring to determine if the
prospective loan supported business conforms to the purpose for which the loan is to be issued.
They also check the availability of land, other assets, collateral status, etc.
The targeted borrowers are mainly residents of rural areas. Initial loans are small in size. Those
who completed the first cycle successfully can claim a subsequent loan that may be provided for
a larger amount of money and a longer period of time.
All the loan applications are subject to mandatory consideration and the applicant is to be
informed about the decision made. Any application is to be considered within 30 days of the
submission date. The clients whose applications have been approved are granted the requested
funds. In case of rejection the applicant is informed of the reasons for this decision.
Loans are provided following individual and group schemes. An individual loans ranges between
900 and 3,000 somoni and is secured by a collateral in the form of real estate, machinery,
valuables worth at least 150% of the requested amount. If notary public witnessing and/or
registration of the collateral is for some reason impossible loans are given following the group
scheme. In this case a group of 4 to 8 members is set up who act in solidarity and are ready to
support each other in case of failure to repay. Each member of the group is held accountable for
the loans given to the group members. Each group member can get from 150 to 900 somoni
following this scheme.
Loans using either of the above schemes are given for the following purposes and periods:
      Trading – up to 2 months
      Services – up to 9 months
      Agriculture – up to 12 months
The interest rate for loans is fixed for:
      Trading – at 3% a month
      Services – at 2% a month
      Agriculture – at 1.5% a month
Individual loan schemes are mainly used to support small scale production projects that create
two and more jobs for local residents, e.g. hairdresser‟s, mini-bakery, shoe repair, etc.
Loan repayment is carried out against a schedule every two months with a grace period of two
months. The advantage of the given scheme is that by the end of the repayment period the
borrower is in possession of an asset which encourages his/her more active approach. The given
repayment scheme also enables the JRC/RF to have cash available at all times and meet their
own operational needs and the needs of their clients. A table illustrating possible repayment
options following a floating schedule is given below:

  Loan      Month 2       Month 4       Month 6         Month 8   Month 10    Month 12
               1st           2nd           3rd          4th           5th         6th
 months                                                                                    Total
           repayment     repayment     repayment    repayment     repayment   repayment
 2           100.0%                                                                       100.0%
 4           30.0%          70.0%                                                         100.0%

6             10.0%          30.0%         60.0%                                                 100.0%
8             10.0%          20.0%         20.0%         50.0%                                   100.0%
10            10.0%          10.0%         20.0%         20.0%         40.0%                     100.0%
12            10.0%          10.0%         10.0%         20.0%         20.0%          30.0%      100.0%

Loans are mainly given to support such types of economic activities as wheat growing,
vegetables, corn and other cereal crops, oil-yielding crops, melons and gourds, peanuts, as well
as for fruit drying, horticulture, animal husbandry (beef cattle and small cattle), agricultural
machinery repair, providing services to the public, small scale trading (wholesale and retail),
production, etc. When selecting among loan applicants the members of the JRC and Loan
Management Committee apply the following criteria:
      the applicant should be resident of the given Jamoat;
      the applicant should be between 20 and 55 years old;
      the applicant proposed activity should fall under the activities supported by the
      the applicant should have practical experience in proposed economic activity;
      the applicant should ensure targeted use of the loan;
      the applicant should have collateral (if applying for an individual loan);
      the applicant should form a solidarity group (if applying for a group loan);
      time and amount of the requested loan should fall within the established parameters;
      the applicant should have sufficient funds to ensure his/her own contribution into the
       proposed economic activity;
      the applicant should provide a business plan that confirms the profitability of the
       proposed activity.
Risks analysis and creditworthiness check of the loan applicant are carried out by Credit
Officers. Business plans are developed by applicants with assistance from Credit Officers.
Loan applicants receive a one-day training in making tables to record costs and revenues of their
production activity, filling out necessary forms, developing business plans, and analyzing cash
flows of their production activities.
Stage-by-stage scheme of working with borrowers
№                                                      Stages
1     Identifying a prospective client, having a preliminary discussion with him/her and registering
      him/her in the log-book for applications.
2     Monitoring to get initial information on the solidarity group, client‟s business and collateral,
      starting a client‟s file
3     Providing training to prospective borrowers and filling out financial forms of the analytical report
      written by RF Manager and Credit Officers and developing a full package of documents for the
      Loan Management Committee, conducting interview with the applicants at the Loan Management
      Committee session.
4     Filling in a loan agreement and issuing a micro loan
5     Monitoring of the client‟s activities all through the loan repayment period
6     Stage-by-stage loan repayment
7     Working with problem clients and eliminating delays
8     Making a decision whether or not to hold a special Loan Management Committee meeting

To check whether the loan is being used in a targeted way RF Credit Officers and Manager
conduct monitoring. If necessary all JRC members can take part in such monitoring. Each
borrower has a notebook where he/she keeps a record of costs and revenues. Monitoring results
are entered into this notebook and the client receives advice and recommendations on how to
improve his/her performance.
The loan portfolio is managed by the Revolving Fund specialists. The Loan Management
Committee meets monthly to consider new applications and discuss loan repayment process.
Loan repayments are to be made on a regular basis. When a loan is issued to support an
agricultural activity an individual loan repayment scheme may be drawn up to stipulate capital
repayment at the end of the term. When solidarity groups are formed it is recommended to assign
one person from the poor part of the population to each group to ensure the group support during
the initial stage of business development. Credit Officers working with rural residents should
also take care of the existing gender specifics and make sure women have access to loan capital.
To minimize possible risks the following is being done:
 The decision to issue a loan is made only by the Loan Management Committee;
 Prior to the above decision RF Credit Officers, Manager and UNDP specialists scrutinize the
  documents of each prospective borrower;
 A new loan is issued to the borrower only after he/she fully repays the previous loan and if
  the other members of the group have no outstanding liabilities;
 A loan is granted on the basis of a written application and can be only used for purposes
  indicated in the loan agreement;
 The composition of the solidarity group is determined by the borrowers themselves;
 Control over targeted use of the loan is carried out by the RF Credit Officers and Manager;
 Family members having common property cannot be members of the same solidarity group;
 The borrower should have no outstanding liabilities in connection with a loan borrowed from
  a third party (relative, moneylender, bank, other programme);
 Credit Officers do not have any direct access to cash resources;
 Loans to relatives of the Loan Management Committee, to JRC specialists and management
  can only be issued following a unanimous decision of the Loan Management Committee;
Repayment procedure
 The repayment amounts are paid to the Accountant in the JRC office;
 Following the payment the group receives a receipt confirming the payment;
 Partial repayments are not accepted;
 In case of group loan repayments can be made by the group leader or cashier as agreed by the
  group members. All group members can attend the act of repayment. The loan agreement and
  repayment schedule are signed by all group members;
Procedure for overdue payment
 Payment is considered outstanding if it was not made in due time (on the appointed date);
 Penalty for the overdue payment is 1% of the total overdue amount;
The following measures are undertaken to prevent delays in payment:

 The client and his/her reputation are closely scrutinized;
 The group leader is selected from among respected and trustworthy people;
 Group members warn their leader in due time about their possible failure to make a
  repayment as scheduled;
 JRC specialists are in regular contact with the group members;
 JRC specialists carry our continuous monitoring of how the funds are being used.
In case of failure to pay in due time JRC and RF specialists undertake the following with respect
to the defaulter:
 One day overdue. A meeting of group members is held to identify the reasons for the delay in
  payment, explain the consequences of failure to pay, and agree on an alternative date of
  repayment of the overdue amount. The decision is carefully recorded.
 Over 10 days overdue. A Credit Officer works individually with group members to identify
  the reasons for the delay in payment and to develop a schedule of debt repayment. If no
  agreement is reached the total amount of loan may be recalled and any further participation
  in the programme may be prohibited. A written notice of the fact of delay in payment and
  penalties accrued is forwarded to the group leader and members.
 Over 20 days overdue. The group members are invited to a meeting attended by
  representatives of communities, JRC management, and head of local administration to
  develop a solution for debt repayment.
 Over 30 days overdue. A written claim to immediately settle the debt and pay penalties is
  forwarded to the group leader and members followed by a lawsuit.

The Revolving Funds (RFs) were established in two Jamoats of Ayni and Penjikent districts. The total loan capital
made available to both Jamoats is 50,000 USD, including 30,000 USD within Rarz JRC of Ayni district and 20,000
USD – within Kolkhozchiyon JRC of Penjikent district. The Jamoat Resource Centres provided their support to the
Project implementation aimed at targeting the rural poor. The Project delivered training in basic loan management,
legislation, computer skills, basic management, accounting and economics of agriculture enabled JRC members to
start disbursing micro-loans on their territories without any notable delays and failures. Loan recipients were
selected by JRC Loan Management Committees through open competition held within the pilot Jamoats. Each
prospective borrower had a chance to fill out the necessary application form and submit his/her business plan and
cash-flow forms. RF Credit Officers assisted the new borrowers in filling in the necessary forms. The Loan
Management Committee comprising JRC Management, Jamoat representative, RF Managers and Credit Officers,
UNDP Economic Development Adviser and RosAgroFond representative considered all the applications in strict
accordance with the established criteria.
To identify those who needed loans most a representative of the RF together with JRC, UNDP and RosAgroFond
members visited the houses of the poorest families. The main purpose of such visits was to identify among them a
category of people who might be interested and were prepared to participate in micro-loan programmes. The
purpose behind providing loans to such people was to assist them in increasing their family‟s income and help them
get out of poverty. All micro loans were issued in national currency. The total number of groups that received loans
amounted to 60, each comprising from 4 to 8 members. This approach allowed to include at least one very poor loan
recipient who could be supported by the other group members and in this way enable him/her to get access to
financial resources. This group support also contributed to increased solidarity among community members. To
ensure effective control over targeted use of micro-loans all beneficiaries were instructed to keep daily records of
their expenses and revenues. Credit Officers in their turn checked the records as part of their monitoring effort to
ensure accuracy of the figures that would allow them to see if the family income was really increasing.
The following amounts have been allocated to Jamoat Resource and Advocacy Centres to be disbursed through the
Revolving Funds:
Revolving Fund of Rarz JRC of Ayni district
The implementing partner Rarz JRC received USD30,000 (100% of the total budgeted amount). The amount was
provided in three tranches – USD8,000; USD12,000 and USD10,000. An additional amount of USD1,036 was
reinvested into the RF as interest paid on borrowed capital over six months. As a result the total amount of RF loan
capital reached USD31,036.
To date the JRC has done the following through its Revolving Fund:
            disbursed USD19,233 to 195 families to support livestock production;
            disbursed USD10,482 to 108 families to support grain and potato production;
            disbursed USD660 to 7 entrepreneurs to support small business development;
            disbursed USD661 to 7 women to support the procurement of sewing machines;
The decision to purchase 7 sewing machines was made following the approval of RosAgroFond‟s idea to enhance
income generating opportunities for local rural women. It should be noted that micro-loan recipients were trained in
sewing but experienced a problem with procuring sewing machines.

3.1.3. JRC activities aimed at social infrastructure rehabilitation
Involving communities into implementation processes is crucial for their capacity building
through developing skills of constructive debate and joint prioritization. This is also vital for
post-Project sustainability. Participatory involvement in social infrastructure assets rehabilitation
and construction helps develop in community members a feeling of involvement in an important
enterprise, as well as a feeling of ownership and responsibility for future sustainability of the
rehabilitated or newly constructed assets. With this in mind UNDP specialists have been
constantly involving local community members in prioritization of community needs,
participatory design, planning, and implementation of construction and rehabilitation work.
Engaging Jamoat Resource Centres in the above activities allows to utilize to a maximum
possible degree the community‟s capacity in self mobilization, to ensure monitoring, due

maintenance and sustainability of supported infrastructure, and at the same time to strengthen the
capacity and skills of JRC members.
There is proven experience that capacity building has a direct impact on project sustainability.
Bearing this in mind, the Project specialists made identification of infrastructure assets to be
rehabilitated part of their training programme offered to JRC members. Taking part in such
training sessions JRC members had a chance to prioritize community needs and ways of
addressing them, as well as to develop possible solutions in the form of project proposals.
Under Zarafshan Regional Development Initiative the opportunity to identify priority
infrastructure assess to be rehabilitated or constructed was given to Rarz and Kolkhozchiyon
JRCs members and their respective communities. They jointly identified several partially ruined
social infrastructure asses to be rehabilitated or newly constructed and developed project
proposals that were then submitted for UNDP further consideration and approval. The Projects
Evaluation Committee comprising representatives of district and local authorities, JRC, UNDP
and RosAgroFond specialists considered the above project proposals.
Then followed discussions organized and conducted by UNDP specialists with community
representatives, JRC members and representatives of local self government. The discussions
allowed to determine the conditions mandatory for successful implementation of the projects.
The community mobilization work organized by JRC members and discussions held in local
communities revealed the willingness of the communities to make their own contributions into
the proposed rehabilitation and construction work. Respective letters of support were then
prepared and signed by all stakeholders. UNDP specialists paid several visits to each
infrastructure object under consideration to study and analyse all possible implementation
aspects. The information gathered included technical specifications, general layouts, technical
passports of drinking water supply systems and location maps. The given information was
carefully studied and included into the project proposal and financial work plan. Following the
approval of the project documents social infrastructure rehabilitation work was started in Rarz
Jamoat of Ayni district and Kolkhozchiyon Jamoat of Penjikent district.
The role of Jamoat Resource Centres is, however, not limited to the above prioritization and
community contribution mobilization work. Independently of UNDP specialists JRC members
monitor on community‟s behalf the construction work itself. JRC members supervise timely
completion of project stages as well as control the quality of the materials used by contractors. In
this way JRC members representing respective local communities are directly involved in the
project implementation, starting from project proposals design, decision making at every stage
and finishing with ensuring long-term sustainability and due maintenance of the rehabilitated
The table below gives a list of projects proposed by communities through their JRCs and
implemented in Rarz Jamoat of Ayni district and Kolkhozchiyon Jamoat of Penjikent district.

 No       Jamoat        Kishlak                                 Project

                       Fatmev       Constructing pedestrian bridge over the Matcha River in Fatmev
 1    Rarz

 2    Rarz             Fatmovut     Constructing a new water supply system in Fatmovut kishlak
 3    Kolkhozchiyon Gusar           Improving water supply system in Gusar kishlak

3.2. Securing access to land and water resources
3.2.1. Dehkan farmers’ rights to land
Land in Tajikistan belongs exclusively to the state. Dekhan farmers can obtain land from the
government for a term or termless use, lifelong hereditary use or by renting.
The right to a termless or lifelong hereditary use of a land parcel is certified by an issued
Entitlement (“sertifikat” in Russian). Land parcels of family or collectively-owned dekhan farms
are used by all farm members and are divided into conventional shares. The share of each farm
member is confirmed by a Certificate (“svidietel’stvo” in Russian).
Dekhan farmers are entitled to a:
  small holding attached to their house (subsidiary plot) which is provided for lifelong
   hereditary use (Article 12 of the Land Code). The family can build a house and farm sheds
   on this land plot. The size of such a land holding does not exceed 0.12 ha for irrigated and
   0.25 ha for dry land (in mountainous areas – 0.15 ha and 0.40 ha respectively);
  additional land parcel for household plot farming which is provided for term-free use. This
   land parcel is allocated from the President‟s lands outside inhabited localities. Building a
   house and farm sheds or growing perennial plants on this land plot is not allowed;
  land parcel for individual, family or collectively-owned dekhan farming which is provided
   for lifelong hereditary use by farm members. If there are two or more dekhan farm members
   the land parcel is in hereditary share holding although the parcel is legally formalized in the
   name of the dekhan farm head who receives an entitlement for the land.
The land parcel for farming is allocated either from the land of farm enterprises (equal in size to
an average land share that each member of this farm is entitled to), or from the land of a special
purpose land fund (equal in size to an average land share issued in a particular district to each
able-bodied dekhan farm member).
In the course of reorganization of a farm enterprise its entire land is divided into land shares
among farm members and pensioners. Social sphere workers may also be put on the list of land
share claimants. In case of a non-reorganised farm enterprise its members who are willing to
leave the farm and set up their own dekhan farm can get a land plot allocated to them from the
farm enterprise land following their formal application. The applications are submitted to
executive authorities of the district (town).
Dekhan farmers have the right to do the following with the land plots assigned to them:
    use them for agricultural production;
    bequeath them (this applies only to land shares and land plots that are in hereditary
     lifelong use);
    lease them. Leasing options though are quite limited. For instance, a dekhan farm can
     lease their land only in case of the farm head‟s or farm members‟ temporary disability,
     their conscription, or attending academic studies.
Small holdings attached to a house (subsidiary plots) are in state ownership and dekhan farmers
have no right to sell them. In fact, however, when a house is sold its price depends not only on
the house size but also on the location of the subsidiary land plot. Therefore one can speak here
about a covert right to sale of subsidiary plots.
A dekhan farmer enjoys the full right to use his/her subsidiary plot and additional land parcel for
household plot farming. As for realization of the right to a land share and to a land parcel within
a collectively-owned dekhan farm, there are still many constraints limiting or depriving dekhan
farmers of access to these lands.

3.2.2. Access to land in pilot Jamoats
Every dekhan family in the pilot Jamoats has a holding attached to their houses (subsidiary
plots). The average size of a subsidiary plot in Kolkhozchiyon Jamoat amounts to 0.187 ha
(including 0.116 ha of irrigated land), in Rarz Jamoat – 0.096 ha (including 0.096 ha of irrigated
Some families (about 100 % in Kolkhozchiyon and 41 % in Rarz) have additional land parcels
for household plot farming. The average size of these parcels is 0.092 ha in Kolkhozchiyon and
0.15 ha (including 0.063 ha of irrigated land) in Rarz. This land is mainly used for grain crops
mostly for food production.
Some families set up their own dekhan farms. As of the beginning of the Project their number
was rather modest. There were 10 such families in Rarz Jamoat, and 20 – in Kolkhozchiyon
Jamoat. The size of the above farms ranged from 0.01 to 0.06 ha of irrigated land, the number of
their members – from 2 to 15 people. Only four dekhan farms included more than 15 members
(see Appendix 3.1.1, Tables 1-4).
Household plot farms account for 15.7% of irrigated land in Kolkhozchiyon and 18.1% in Rarz.
Individual and family dekhan farms use respectively 5% and 2.4% of irrigated land. Most land
remains in use of collectively-owned dekhan family farms (collectively-owned DFFs) and farm
enterprises. Their share of irrigated land was 79.3% in Kolkhozchiyon, and 79.6 % in Rarz.
The land of collectively-owned DFFs is divided among their members into shares. The share size
varies for various collectively-owned DFFs and ranges from 0.006 to 0.06 ha. As for irrigated
land, the figure ranges from 0.005 to 0.009 ha. The decision on how the land of farm enterprises
and collectively-owned DFFs should be used is made by farm directors and specialists. In fact,
they administer this land as if it were given to the farm and not to its members. Moreover until
the year 2000 dekhan family farms were to be registered as legal entities.
At the same time it will be incorrect to say that ordinary farm members are completely deprived
of their right to use the land of farm enterprises and collectively-owned DFFs.
Firstly, hayfields and pasture-land assigned to farm enterprises and collectively-owned DFFs are
in fact used by rural residents of the Jamoats as 99 % of cattle, sheep and nanny-goats are kept
on private household plots. The farm enterprises and collectively-owned DFFs though have to
pay taxes for the pasture land which they virtually do not use. Having no cash to pay the land tax
they have to collect the money from household plot holders as payment for using the pasture-
Secondly, the land assigned to collectively-owned DFFs is in fact divided among workers‟
families and used under family lease contracts. Moreover the actual land size used by a family
does not equal to the total land size made up of the land shares held by the family members. The
head of a family signs a contract with the collectively-owned DFF where the obligations of both
the family and the farm are stipulated. As a rule the family gets an order for production and
delivery to the collectively-owned DFF of agricultural produce as a payment of the family‟s
portion in the total farm taxes and as a compensation for services and resources provided by the
collectively-owned DFF (fertilizers, plant protection chemicals, etc.). The surplus is sold by the
family independently or through the collectively-owned DFF. The revenue from the surplus sale
is in fact the workers‟ remuneration for their work on the collectively-owned DFF. Often the
harvest is poor and the produce is not enough even to settle up with the collectively-owned DFF.
As a result by the end of the year the family not only receives nothing as payment for their work
but it may even find itself in debt to the farm.

3.2.3. Constraints to realization of rights to land
Dekhan farmers are quite often unable to exercise their right to land. This is due to the following
main reasons:
1. Not all farm enterprises have gone through the process of reorganization. There is still
   one non-reorganized farm in Penjikent and one in Ayni district. Although the law provides
   for an opportunity for a farm member to leave the farm enterprise with his/her land share to
   set up his/her own dekhan farm, it is, in fact, rather difficult and expensive to take advantage
   of this right. Not many families are prepared to do so. However, following the reorganization
   each farm worker who is entitled to a land share receives a land share certificate that makes
   the process of setting up one‟s own dekhan farm somewhat easier.
2. The current legislation does not define the exact range of people who are entitled to a
   land share, nor does it determine the moment in time when the person‟s right to land comes
   into effect. For example, according to RT President‟s Decree No. 522, members of a
   reorganising farm have the right to land and there are three moments in time when they may
   become entitled to this right: (1) the date of the decision on a state-owned farm
   reorganisation made by the head of a district administration; (2) the date of the decision on
   reorganization made at the state-owned farm general meeting; (3) the approval date of the list
   of people entitled to the right to land. The number of farm members may change within the
   above dates. Besides, the list of workers often includes numerous people who did not
   formally resign but are not actually working on the farm as of its reorganization time. At the
   same time many other residents are actually working as part of the farm teams but are not
   formally employed by the farm. Reorganisation experience of the state-owned farm
   “Marguidar” of Penjikent district is a good illustration to the above. In accordance with the
   RT President‟s Decree the list of share holders (members) of this farm was to include less
   than 400 regular workers. In fact the list included:
    all residents who were formally employed following the director‟s order (including those
     who had been on leave for 2 to 5 years and in fact working in Russia);
    residents who had been working on a regular basis in the farm teams but who had not
     been formally employed by the farm;
    farm pensioners (partially).
This approach increased the list of farm share holders (members) to over 1,700 people having
dramatically reduced the land share size of each individual member. Such a small land share
makes it impossible to set up an individual or private family farm and encourages people to
continue working on large scale collectively-owned dekhan family farms renting land parcels
larger than they can have against their family members‟ land shares.

In the pilot districts of Uzbekistan the number of non-reorganized farms is much bigger: in
Bulungur, there are 5 (of 14) and in Urgut – 20 (of 22) non-reorganized farms.

3. Formality reorganization leading to creation of collectively-owned dekhan family
   farms. In the pilot districts and Jamoats of Tajikistan, farm reorganization has often been a
   mere formality. Reorganizing collectively and state owned farms are simply turned into
   several collectively-owned DFFs. In the pilot Jamoats, three collectively-owned DFFs with
   hundreds of members were created in place of each reorganised farm enterprise.
   Management decisions are made by the farm head. Access to land for ordinary farm workers
   is highly restricted.

In Uzbekistan, reorganization of collectively-owned farms (shirkat farms) results, as a rule, in
establishment of family farms. One shirkat farm is usually reorganized into 20-30 family farms.
The heads of the family farms get access to the land while all the other farm members (over
90%) lose their access to land.

4. Delayed issue of documents certifying the right to a land share. According to the law, the
   documents certifying the right to a land share must be issued in the course of farm enterprise
   or collectively-owned dekhan farm reorganization. In fact, this does not happen. On various
   pretexts land share certificates are not issued for many years following the reorganization.
   For example, a collectively-owned DFF established in Rarz Jamoat in 2001 has not given out
   land share certificates to date (see Appendix 3.1, Table 4).
5. Insufficient awareness level of the population. In the course of the Project implementation
   it became clear that rural residents are not aware of the appropriate legal procedure that
   enables them to obtain a land parcel. Even when residents are members of a dekhan family
   farm they do not know about their rights to the land parcel that the farm exploits. There are
   no information materials explaining to the rural residents their rights to land or consultation
   services that could provide them with the necessary information. Local Land Committee
   specialists also require relevant training and a supply of information materials. Residents‟
   lack of knowledge regarding their rights as well as lack of agencies that could provide advice
   if necessary on agricultural technologies, book-keeping, taxation and legal issues are no
   doubt a constraint to any development.
6. Complicated procedure of obtaining and formalizing a land parcel. There are three
   legislative acts that regulate the process of obtaining a land parcel. Each of them stipulates a
   procedure that is slightly different from those described in the other two documents.
   According to the RT Law “On Dekhan (Family) Farm” the applicant should submit one
   application and that is to the Hukumat. The other legislative acts specify Jamoat and farm
   enterprise as recipients of the resident‟s application. In other words all the three legislative
   acts are not in conformity with each other.
7. Long period of time that formalization of documents takes. According to the RT Law
   “On Dekhan (Family) Farm” the time period between the application and decision making by
   the district administration should not exceed one month. In fact, this period is much longer.
   The table that follows illustrates the formalization process by one of Penjikent district
                                                              Time required
                                                                              Formal         Informal
                                                                to complete
                     Procedure steps                                          charges,       charges,
                                                                 each stage
                                                                               somoni         somoni
 Application to farm enterprise. Order by farm enterprise
 director allowing the individual to leave the farm issued.   2 weeks         0          0
 Application to Jamoat. Decision allowing the individual
 to set up a DFF made.                                        2.5 months                 banquet
 Application to Hukumat. The application sent on to the
 Land Committee.                                              3 months
 Compiling land surveying file.                               3.5 months      250
 Land Committee‟s recommendations sent back to
 Hukumat.                                                     4 months
 Decision making by Hukumat.                                  5.5 months

 Documents transfer to Dushanbe.                         6 months                     100
 Land share Certificate delivered from Dushanbe.         8.5 months        85
 Document given to applicant.                            9 months
 TOTAL                                                   9 months          335        100+ banquet

In fact, formalizing the documents for land requires collection of a larger number of documents
than it is stipulated by the law. For example, the head of Penjikent Hukumat issues a resolution
allowing to allocate a land parcel only after the applicant submits 13 supporting signatures from
relevant authorities. In the Hukumat only the documents should be signed by five Hukumat head
deputies, including those whose duties have no relation whatsoever to land issues (for example,
the deputy head responsible for culture) plus 3 more officials.
The Entitlement confirming the right to use the land is signed in the capital of the Tajik Republic
– Dushanbe – by the Chairman of the Tajik State Land Committee. This is a long process
because the documents not only need to be signed, which already takes a lot of time, but also
delivered back to the applicant, and the fact that the Project pilot territories are actually cut off
the “mainland” during the autumn and winter time due to closed mountain passes and grounded
flights in case of bad weather makes the waiting time even longer.
Using land without having the formalized documents entails a fine ranging from 20 to 30
minimal salaries (RT Law on introducing amendments to the Code of Administrative Offences
dd. 1.03.2005 No. 94).

8. Granting unwanted land parcels. All dekhan farmers are interested in getting irrigated
   land. As for pasture land, those DFFs that do not keep cattle are not interested in getting it.
   District Land Committees and Tax Authorities, on the contrary, are keen on assigning large
   size pasture land to collectively-owned DFFs due to tax considerations. For example, a land
   share in the state-owned farm “Marguidar” is 3.8 ha, including 2.98 ha of pasture land. Each
   ha of pasture land costs four somoni a year tax wise, i.e. each land share holder is to pay 12
   somoni a year as tax.
9. High cost of land surveying work. Making a map of a land parcel costs 250 somoni. In the
   course of state-owned farm “Marguidar” reorganisation the average price for the above work
   was fixed at 500 somoni. In addition, the land parcel entitlement will cost another 76 somoni.
   In case of setting up a dekhan family farm that is going to use, say, 20 land shares it will be
   necessary to pay on top of the above charges 35 somoni for land share certificates. In mid
   summer 2005, Goscomzem (the State Land Committee of Tajikistan) developed a reference
   handbook providing a methodology for calculating prices for land surveying work. The
   prices calculated in this way proved to be by far higher than the prices mentioned above.
10. Limited access to assets of reorganized farm enterprises and collectively-owned DFFs.
    Hardly every resident will apply for a land plot if he/she does not have any means of
    production. In many post-Soviet republics the assets of former collectively-owned and state-
    owned farms (kolkhozes and sovkhozes) were distributed free of charge among their workers.
    In Tajikistan, the assets distribution issue is not clearly defined by the legislation. However
    there is a procedure stipulating an auction sale of assets. Very few residents among the land
    share holders can raise resources to participate in an auction.
11. Practice of debt distribution of reorganizing farm enterprises and collectively-owned
    DFFs when their members leave the farm to set up their own dekhan family farms. In
    accordance with the RT President‟s Decree No. 1054 dd. 15.04.2003 and respective RT
    Government Resolution No. 542 dd. 25.12.2003, individuals who decide to withdraw from

    an organization are liable to pay a proportion of the legal entity‟s debts, i.e. the company‟s
    debts are distributed among its members depending on the size of land they receive. There
    were incidences when such an approach was applied to individuals who had decided to leave
    a collectively-owned DFF. The above debt distribution procedure is in conflict with the RT
    Civil Code that stipulates that a company is accountable for its debt liabilities to the total
    amount of its assets.

3.2.4. Securing access to land
The Project has developed and tested the following mechanisms to secure access of dekhan
farmers to land.
  Factors restricting access to land        Constraints removing mechanisms developed and tested by the
1. Not all farm enterprises completed   A step-by-step reorganization methodology developed
2. The exact range of people entitled   An Amendment to the Regulation on reorganization developed
to have a land plot is not defined      and endorsed by RT President‟s Decree No. 522
3. Formality reorganization of farm     Third Party Arbitration Court judges trained in how to protect
enterprises leading to creation of      citizens‟ rights to set up individual and family farms
collectively-owned DFFs
4. Delayed issue of documents           Amendments to the current legislation developed that introduce
certifying the right to a land share    changes into the land documents issue procedure
5. Insufficient awareness level of the Delivered:
                                        19 information meetings (8 in kishlaks of Kolkhozchiyon
                                           Jamoat and 11 in kishlaks of Rarz Jamoat)
                                             11 workshops (9 in kishlaks of Rarz Jamoat, 2 in
                                        Total participants – 1564 people, including 872 Rarz Jamoat
                                        residents and 692 Kolkhozchiyon Jamoat residents;
                                        17 information stands in kishlaks of Rarz and Kolkhozchiyon
                                        Published and distributed:
                                        on the territory of the pilot Jamoats 200 information leaflets
                                        containing the text of the brochure “Dekhan Farmer‟s Check-list”
                                        and sample documents (similar to those posted on the information
                                             assistance to residents, willing to set up dekhan family farms,
                                              in drawing up the necessary documents and submitting them
                                              for further processing to land committees;
                                             follow-up support to the above
6. Complicated procedure of             Documents approval procedure within a Hukumat changed (the
obtaining and formalizing a land        number of officials to whom the applicant has to submit his/her
parcel.                                 documents for approval reduced from 7 to 1)
7. Long period of time that             Draft amendments to the legislation developed that provide for
                                        reduction of transactional costs. The draft document forwarded to
formalization of documents takes       the central authorities involved in the agrarian reform. It is
                                       recommended to delegate the authority to issue Land Certificates
                                       from the republican to Hukumat level
8. Granting unwanted land parcels      Free choice of the land parcel type against the land share secured
                                       as a result of decision made by Hukumat head. Unclaimed by
                                       dekhan family farms pasture land will be transferred under
                                       Jamoat authority (agreement of Hukumat head available) to
                                       provide access to pasture land for all residents of the village
9. High cost of land surveying work    Cost reduction achieved following the resolution issued by
                                       Hukumat head where the maximum price for land surveying work
                                       is determined
10. Limited access to assets of        Procedure for sale and other form of farm property distribution in
reorganized farm enterprises and       the course of farm reorganization developed, this procedure
collectively-owned DFFs                protects the interests of rural residents
11. Practice of debt distribution of   To be developed
reorganizing farm enterprises and
collectively-owned DFFs when their
members leave the farm to set up
their own dekhan family farms

As the above shows the Project used two different approaches to facilitate access to land:
 First – addressing and solving the problem of a particular pilot territory. To spread the
  accumulated experience, including information dissemination experience, beyond the pilot
  territory the Project developed materials that can be used with equal success on all rural
  territories of the Republic of Tajikistan. The Dekhan Farmer‟s Check-list is given in
  Appendix 3.1.2.
 Second – developing and introducing amendments to the RT relevant legislation. This
  approach facilitates access to land on all rural areas.

3.2.5. Securing access to water
Status of the problem. Water supply is provided by the state organization called “State Water-
Supply Management” (SWSM) on contract basis. The counterparties to such contracts are large
scale water consumers – farm enterprises and DFFs. In Penjikent district, the number of such
contracts totals 180. Rural families do not sign water supply contracts, although they are
legitimate water users.
DFFs believe that their rights to access to water are violated. According to DFF heads, water
supply contracts are biased towards the SWSM as they do not stipulate any difference in charges
for water supplied as a natural flow (which is much cheaper) and for pumped water (which is
much more expensive due to additional costs associated with electrical equipment maintenance
and electricity charges). The payment for water is fixed and amounts to 0.06 diram per cubic
meter. The contracts do not stipulate the SWSM‟s responsibility for short-delivery of water.
Besides, there are no reliable mechanisms to measure the quantities of supplied water.
Water consumption is measured in accordance with estimated rates of water consumption by
various crops and depending on crops rotation. From time to time a spot check of local flowrates
is taken using water flow meters. However water-meters are non-existent at district level.
Moreover other less complicated water measuring mechanisms are in shortage as well.

The SWSM does not see any technical problems in organizing water supply for small scale DFFs
in addition to large scale enterprises. It is possible to install water drain canals with a platform to
measure water quantities delivered to each individual small scale DFF.
Water supply is not always guaranteed. There may often be interruptions in water supply and
insufficient supplies during peak periods due to overspending of water by water users located
higher up the water canal.
The SWSM notes that in the situation when water meters are non-available water supply in peak
periods is often redistributed by each water user in an arbitrary way. Such violations may also
lead to damage of equipment. Finding those who are guilty of these violations is impossible. Due
to the above considerations the SWSM prefers to work with large scale water users which
partially pay for the water consumed by other small scale farmers and residents.
At the same time, the lack of guarantee for water deliveries is a limiting factor for setting up
family farms, as there is no certainty that small sized land parcels will get the water due to them.
There are also concerns that large scale farms will consume all the water.
Creation of water users‟ associations may help to reduce the impact of such constraints.
Uzbek experience in setting up water users’ associations. The Project has studied the
experience of water users‟ association of Bulungur, Jambai and Baiyaryk districts. The key
underlying principles of setting up and running such water users‟ associations in the above
districts are as follows:
 the association is set up on the territory where a relatively isolated part of a large irrigating
  system is located. The given irrigating system runs through the territories of the above three
  districts and supplies water onto 29,972 ha.
 the association is a non-for-profit organization;
 the members of the association are representatives of family farms and shirkat (collectively-
  owned) farms selected through several stages. First level representatives are selected from
  family farmers, members of shirkat farms, and household plot holders living on each of the
  territories of former collectively or state-owned farms. At their general meeting the first level
  representatives elect their delegates to represent their entire territory in the district. The
  second level representatives elect third level delegates to represent the district. The third level
  representatives elect 18 representatives who have the power of attorney to solve the problems
  related to running the association. They represent the interests of 1,260 family farmers and 12
  shirkat farms;
 the head of the association is elected. His/her duties involve activities associated with
  operating the system to ensure water supply to the association‟s members. A Supervisory
  Board that consists of non-members oversees the association‟s work. The total number of
  workers is 65;
 a water supply contract is signed with each family farm and shirkat farm. A contract ensuring
  water supply to a rural territory is signed with respective Makhalla (neighbourhood
 the budget is made up from water users‟ contributions, the charges depending on land size.
  Maintenance fee is 5,400 sum/ha per year. There are no water meters as they are expensive
  (200 USD) and they are not produced in Uzbekistan (can be bought in Kyrgyzstan or Georgia
  where they are produced);
 the association does not own any property. All canals cleaning up work is done using the
  machinery of the association‟s members or using hired equipment.

The association was set up in place of a state organization – canal administration. The
association‟s Technical Director is the administration‟s former Chief Engineer. Budget
replenishment is an on-going problem for the association because:
 sanctions against shirkat farms in the form of disrupting their water supply for failure to pay
  run counter the existing legislation;
 sanctions against family farmers in the form of disrupting their water supply for failure to
  pay are also prohibited in case they grow crops ordered by the state (cotton and grain);
 no charges for using water by household plot holders are provided for in the legislation.
  Makhalla territory receives water free of charge. Moreover they have a priority in access to
The disadvantages of such an association include not only the above mentioned limited funds
raising options but also the non-participation of direct water users in decision making.
Recommendations to apply the Uzbek experience in Tajikistan. The Project recommends
developing a procedure for setting up water users‟ associations that would be able to take better
care of the direct water users‟ interests than it is done in Uzbekistan. The following scheme to set
up associations of different levels is proposed.
The lowest level would be the association of water users who get water from one (smallest)
offshoot of the canal. This association could consist of a group of family farmers who use water
running through this offshoot and the rural administration if its residents are clients of this
distribution canal. The association would co-ordinate interaction between neighbours and deal
with water distribution. It would keep records of in-coming water, draw up acts is case of short-
deliveries of water and/or its bad quality, which would then be presented to the water supply
organization. The association‟s members will elect and pay salary to a mirab who will deal with
measuring and distribution of water. The mirab of such a first level association will represent its
interests in the second level association that runs a larger offshoot of the canal. The number of
associations depends on the number of distribution offshoots of the canal. The highest level
association will represent and protect the interests of water users of the entire canal when
negotiating the contracts between the direct water users and the SWSM.
According to Penjikent and Ayni administrations, the most important Project task in this respect
is to train family farmers in exercising their water user‟s rights, measuring in-coming water,
drafting water short-delivery acts, making lawsuits, insuring crops from damage due to short-
delivery of water, preparing documents for receiving money against the insurance contracts, etc.

3.3. Set of measures to reorganize farm enterprises and collectively-owned
dehkan family farms

3.3.1. Need for developing farm enterprise reorganization mechanism
The analysis of the farm reorganization experience in the Republic of Tajikistan has revealed that
the reorganization, as a rule, has been carried out mainly on paper without involving the
population into the process. This resulted in establishing collectively-owned dekhan farms.
Collectively-owned dekhan farms use labour of hundreds of its members who have no family
bonds. On such farms dekhan farmers are, in fact, hired labour. They receive a salary for their
work. The members of a collectively-owned dekhan farm practically do not take any part in
running the farm, nor have they an opportunity to make use of their land.
Another important problem that has remained unsolved concerns the redistribution of assets of
the reorganizing state-owned farm enterprises (sovkhozes). The state, as the assets holder, can

sell this property, lease it or hand it over for uncompensated use. However the legislation does
not determine different assets transfer procedures taking into account the fact that assets are a
difficult-to-obtain resource, items of assets are not of the same quality, and that some items are
closely related to the land parcel that individual dekhan family farms acquire. In addition the
legislation mentioning the priority right of farm workers and of residents living on the adjacent
rural territory to purchase farm assets does not specify the procedure for the realization of this
right. The relevant procedure developed by the Project is given in Appendix 3.3.1.

3.3.2. Reorganization plan for state-owned farm enterprise “Marguidar”
On 9 March 2005, the Penjikent Hukumat Chairman made a decision № 74 on reorganization of
a number of farm enterprises, including the state-owned farm enterprise “Marguidar”, into
dekhan farms. The Project specialists together with the district Land Committee have developed
the necessary set of documents to ensure a transparent procedure of transfer of the state-owned
farm enterprise resources to the newly created dekhan farms, as well as freedom for farm
enterprise workers to choose what type of entrepreneurial activity to undertake using the
resources of the reorganizing state-owned farm. The developed procedure is based on the
following principles:
    openness, i.e. informing all farm enterprise workers of their opportunities to get land,
     property, and to freely choose a type of business they would like to start;
    involving and training local specialists in legitimate farm reorganization methods;
    involving rural residents in decision making regarding the reorganization procedure;
    providing legal support to residents who are willing to get land and property, and start
     their own business;
    simplified procedure for obtaining land and property.
To ensure that all the above principles are applied the Project has developed and implemented a
step-by-step approach to reorganization. The following draft documents have been developed for
each step:
    minutes of the meeting of workers‟ team members to elect representatives to attend farm
     general meetings on reorganization;
    minutes of the meeting of the above representatives to elect members of intra-farm
    reorganization plan that contains full information on farm resources and their description,
     number and characteristics of dekhan family farms to be created as well as a plan of how
     land and assets will be distributed among them;
    minutes of the intra-farm commission meeting approving the reorganization plan;
    minutes of the representatives‟ meeting approving the reorganization plan;
    minutes of the meeting of the district commission approving the reorganization plan.
A full set of reorganization documents is given in Appendix 3.3.2.
A state-owed farm reorganization comprises the following stages:
    conducting a farm property inventory;
    making a list of social sphere objects that will be transferred to the balance of the Jamoat
     and Hukumat;
    making a list of property that will be transferred to the balance of other organizations;
    making a list of property that could be claimed by farm workers to start a dekhan farm;
    making a list of land share holders;
    defining the amount and composition of accounts receivable and accounts payable and
     the order of its redistribution;
    making a list of dekhan farms to be set up as a result of the state-owed farm “Marguidar”
     reorganization and drafting a plan of redistribution of land and property among them.
Such an approach involving rural population into the reorganization process has not always met
the support of the authorities. The head of the district administration Sh. D. Samadov actively
supported the idea of making the reorganization process open and involving ordinary farm
workers into decision making regarding the establishment of dekhan farms, obtaining land and
property. Some farm enterprise specialists, on the contrary, were deliberately slow in preparing
the necessary documents which inevitably delayed the completion of the reorganization.
The assets holder – district administration – rejected the idea of uncompensated assets transfer to
dekhan farms and decided to conduct an auction.
The implementation of the Project developed mechanisms listed in Sections 3.3.1 and 3.3.2 have
largely led to establishment of dekhan family farms. As a result these individuals have obtained a
valuable resource – land – which they could now use directly. The diagrams below show the
distribution of dekhan farms by size and by number of participants.

      Dekhan farms distribution by size              Dekhan farms distribution by number of

                            less than
        less than other        2ha
           8ha                                                         other
                                                        less than 15
                                                                                   less than
    less than                                                                       5 people

                              less than
                                 4ha                       less than 10

3.3.3. Collectively-owned dekhan family farms reorganization
The law “On Dekhan (Family) Farm” adopted in 2002 stipulates the creation of individual
dekhan farms, dekhan family farms (based on the current property of the farm members), and
dekhan farms created in the form of a simple partnership. Not only family members but also
other people can be members of a dekhan farm. The third form of a dekhan farm can be
conventionally called „collective‟. Prior to the above law dekhan farms were created as legal
entities and were organized as economic partnerships and societies.
The Law “On Dekhan (Family) Farm” does not specify many important matters that are crucial
when addressing the problem of liability for DFF‟s debts:

     the range of people who can become DFF members is not limited. This makes it possible
      to establish family farms by combining members of different families resulting in
      reduced motivation and responsibility for the results of work;
     the liability of DFF‟s members for its debts is not specified;
     there is no clear distinction between such notions as DFF members and hired workers;
     the procedures for forming joint property of a DFF, profit distribution, and compensation
      in case someone leaves the DFF are not defined. There is no procedure that regulates
      interrelations between members as equal partners while such a farm can have hundreds of
      members. Up to now the relations between the head of a dekhan farm and its members
      can be built as relations between a lessor and lessee, i.e. a family may be working on a
      land parcel under a rental contract while the land itself belongs to this very family.
A collectively-owned dekhan family farm is an even less effective organizational form of
economic activity than a collectively-owned farm (kolkhoz) at least for the following reasons:
Firstly, farm management is less efficient. Management decision-making on a collectively-
owned DFF requires agreement of all members. Reaching and formalizing such an agreement on
a collectively-owned DFF with hundreds of members is next to impossible. In fact the farm head
makes his individual decision while the responsibility for the consequences is shared among all
its members.
Secondly, the liability of farm members is exaggerated. While the liability of members of legal
entities is limited to the size of their contribution into the share capital (with the exception of full
partners in a special and full partnerships), collectively-owned DFF members are jointly and
fully liable for all the debts of their farm. Such a high level of liability with no chance of
influencing the decision-making can hardly be justified.
Thirdly, claiming debts of a collectively-owned DFF in court is very difficult. To lodge a claim
against farm members one should prove that each and every member had agreed on the decisions
that led to the debts accumulation. This is practically impossible with the number of members as
large as it usually is.
Fourthly, declaring a collectively-owned DFF bankrupt is impossible. According to the
legislation of the Republic of Tajikistan, bankruptcy can be applied either to a legal entity or to
an individual entrepreneur. Since a collectively-owned DFF is neither a legal entity, nor its
members are registered as individual entrepreneurs there is no object of bankruptcy. The law
does not provide for bankruptcy of physical persons.
Fifthly, land-related issues are not settled. When a collectively-owned DFF is formed no
individual land parcels belonging to each family are allocated in kind. Instead, a single land body
is allocated against the land shares of all the farm members. Each family works on a specific land
plot assigned to it under a rental contract. Moreover the size of this land plot may not be equal to
the sum-total size of the land shares belonging to the family and invested in the jointly owned
land body. The above land body is in fact in joint hereditary share holding of all the farm
members. However the legislation of the Republic of Tajikistan does not sufficiently define the
rights of members having land in joint hereditary share holding. There are no rules that regulate
withdrawal from a joint hereditary share holding either nor rules that specify how to lease such a
land body.
Despite the completion of the formal reorganization process on most farm enterprises of the pilot
districts the above makes the Project recommend to apply restructuring procedures to the
collectively-owned DFFs set up as a result of such reorganization.
In addition to the activities mentioned above and in order to strengthen this project component
the Project has also developed a simple partnership agreement (the availability of this document

is mandatory for every collectively-owned DFF according to the RT legislation, however none of
them had such agreements actually signed), where all the above problems have been taken care
3.3.4. Impact of Uzbek shirkat farms reorganization on rural employment
and incomes
The Uzbekistan land reform has been implemented in a much different way than in other CIS
Firstly, the land in Uzbekistan has not been divided into conventional shares among all the farm
enterprise members as was the case in Tajikistan and other CIS countries.
Secondly, according to the Uzbek legislation, land is allocated to family farms through a tender.
The successful bidders get their land parcels under a lease agreement for 30-50 years, while the
rest of the families have no access to land whatsoever and have to seek employment on the
newly created family farms if there is a need in hired labour.
The Project has developed a special questionnaire to reveal the impact of Uzbek shirkat farm
reorganization on access of dekhan farmers to land and other resources, on their employment and
incomes (Appendix 3.3.4). A survey will be carried out on two pilot farms that have been
recently reorganized (one farm in each Bulungur and Urgut districts).

The survey will provide comparative data on rural employment and incomes prior and following
the reorganization, identify the share of rural families that have got access to land as a result of
reorganization, the share of former shirkat farm workers who have become family farm
members, got employment with the newly created family farms or lost their job.
A number of questions have been designed to help understand how rural residents assess the
completed process of reorganization in terms of its transparency and fairness.

3.4. Securing access to small loans
3.4.1. Status of the problem and approaches to analysis
The Project goal would be impossible to achieve without securing access of residents to loans.
Low incomes of rural households make their own investments into a business activity
impossible. Besides, the actual opportunities for rural residents to obtain a formal bank loan are
highly limited.
However, one should bear in mind that micro-finance per se can only partially contribute to the
improved living standards as the problem of poverty is much more complicated. In addition to
financial constraints rural residents have significant difficulties obtaining land, getting access to
collectively-owned dekhan farm resources, input and sale markets, information on advanced
farming methods, high productivity seeds and animal breeds, etc.6
The existing legislative constraints are the main problem that hampers successful development of
micro-finance operations. The legislation does not encourage mobilization of rural residents‟
resources or their widespread involvement into micro-finance activities. In fact the current
legislation of both Uzbekistan and Tajikistan prescribes a cumbersome procedure for creating
micro-finance organizations with the right to work with citizens‟ savings. Any efficient
development of a micro-finance organization without additional external funding provided for
  Need for developing social capital, constraints in access to means of communications, undeveloped transport
infrastructure, closed borders, etc.

micro-finance operations is practically impossible. For more details see Recommendations on
removing legislative constraints on micro-finance services market.
The micro-credit schemes that are currently being implemented by Project partners7 need to be
further developed to ensure more efficient fiscal accounting, business planning and loan
repayment. A vital issue remains whether the existing micro-finance models will finally prove
sustainable. It is also important that the micro-finance schemes attract alternative financial
resources, including budget funding and residents‟ savings. The Project should give the most
serious thought to above. Respective recommendations were given in the Mid-Term Project
So far – during Phase 1 of the Project – the consultants have analyzed the current legislation,
studied the existing micro-finance experience, developed recommendations and assisted in
drafting a lending policy, helped establish micro-finance institutions and disburse loans to rural

3.4.2. Formation of credit organizations
The time constrains do not allow to apply such institutional models of sustainable rural
development as the Project specialists have developed in the course of Sustainable Rural
Livelihoods Pilot Project8. The analysis of the existing on the pilot territories micro-credit
mechanisms has shown that setting up a public non-for-profit organisation such as Jamoat
Resource and Advocacy Centre (JRC) supported by UNDP – is the most appropriate approach
under the circumstances. The main features of the organization include: 1) it is created by rural
residents who elect their representatives through secret ballot; 2) JRC includes representatives of
all kishlaks, i.e. ensures that interests of all residents living on the pilot territories are taken into
account; 3) management methods are based on democratic principles and participatory decision-
To date the following has been done:
     Organizational meetings have been held to elect kishlak representatives through secret
     Kishlak representatives have created Jamoat Resource and Advocacy Centres by electing
      a Chairman, Deputy Chairman, Secretary and setting up a Loan Management Committee
     Following the competition of applicants, Credit Officers, Revolving Fund Managers and
      an Accountant have been appointed.
     The necessary documents have been developed and Rarz JRC and Kolkhozchiyon JRC
      have been registered.
     JRC specialists have been trained.

The Family Farmers‟ Association “Madadkor” is a Project partner in Bulungur district of
Uzbekistan. “Madadkor” is experienced in providing micro-finance services, however, this work
has been interrupted due to the existing legislation constraints. To address this problem the

 UNDP in Tajikistan and Madadkor Association in Uzbekistan.
 See materials, reports and Manual developed under the Sustainable Rural Livelihoods Pilot Project implemented in
Russia with support from UK DfID.

Project has developed and implemented a scheme under which a Credit Union was set up within
the “Madadkor” Association.
The following has been completed to set up a Credit Union:
    “Madadkor” experience in providing micro-finance services has been analysed and
     recommendations to improve their efficiency in this area have been developed (see Mid-
     Term Project Report).
    Organizational meetings have been held where rural residents received clarifications on
     terms and conditions of setting up and running a Credit Union.
    Initiative groups comprising the total of 57 people who have made their own
     contributions in the Credit Union fund have been formed.
    Agreement with “Sherdor” Credit Union has been signed and consultation support in
     establishing a Credit Union provided.
    Founding documents and a business plan have been developed.
    Funds ($9,000) to form the founding capital have been provided.
    Accumulation account has been established and Credit Union members‟ contributions
     have been credited to this account.
    Founding documents have been submitted for registration to the National Bank of
According to the Uzbek Law “On Credit Unions” the registration is to be completed within thirty
Prior to the registration Guavkhar Kholmuradova, Credit Union Director, will have to go through
an interview that will be held in the central office of the National Bank of Uzbekistan in
Tashkent. Although the current legislation does not require any interviews, the National Bank
imposes additional procedural constraints that have a negative impact on the process of creation
of micro-finance organizations in Uzbekistan. For further details see Recommendations on
removing legislative constraints on the micro-finance services market.

3.4.3. Selecting effective types of economic activities
At the beginning of their work on the pilot Kolkhozchiyon and Rarz Jamoat territories Project
specialists had little knowledge of what types of economic activities rural residents were mainly
involved in. Therefore the first step in developing a lending policy was to identify the most wide-
spread economic activities. The residents‟ most favoured activities have been identified through
an expert survey, discussions with rural residents and using data of household records.
              Kolkhozchiyon Jamoat                                      Rarz Jamoat
             Types of activities          Rating                  Types of activities        Rating
Grain crops and vegetables                  1        Grain crops and vegetables                1
Dairy cattle                                2        Horticulture (apricots)                   2
Viniculture                                 3        Dairy cattle                              3
Horticulture                                4        Sheep fattening                           4
Sheep fattening                             5        Small cattle                              5
Calves fattening                            6        Poultry                                   6
Entrepreneurship                            7        Calves fattening                          7
Bee keeping                                 8        Entrepreneurship                          8

The above shows that nearly every family living either in Rarz or in Kolkhozchiyon Jamoat is
engaged in grain crops production to make bread for personal consumption. The second most
popular activity in Kolkhozchiyon is dairy cattle while in Rarz it is horticulture. This is because
Rarz Jamoat is located in the mountains where conditions for dairy farming are less favourable
than in Kolkhozchiyon. However the differences in the types of activities undertaken by rural
residents are not really significant, as the table above demonstrates.
To understand what interventions would result in the increase of rural incomes the Project
specialists analysed the efficiency of the identified types of economic activities. Standard
business plans for each activity were drafted and, based on that, the activities with the highest
economic effect were selected.
               Economic activity                   Value of    Costs, Revenue, Profitability, Rating
                                                   produce,   somoni somoni         %
Rabbits (20 doe rabbits, 12 months)                     2,475      440   2,035      82          1
Bee-keeping (10 families, 10 months)                    3,000      609   2,391      80          2
Dairy Cattle (1 head, 6 months)                           500      150     350      70          3
Winter wheat (1ha, 12 months)                           2,500      788   1,712      68          4
Viniculture (0.9 ha)                                    3,500    1,129   2,371      67          5
Beef Cattle (1 head, 6 months)                            770      410     360      47          6
Potato (1 ha, 6 - 8 months)                             5,000    2,832   2,169      43          7
Sheep fattening (1 head, 10 months)                       349      227     122      35          8

The above are assumed indicators based on calculations. They were then compared to the
indicators characterizing actual popularity of the activity among rural residents.

                         Economic activity                    Popularity      Profitability
                                                                rating          rating
                     Grain crops and vegetables                   1                 4
                            Dairy cattle                          2                 3
                             Viniculture                          3                 7
                               Potato                             4                 6
                          Sheep fattening                         5                 8
                          Calves fattening                        6                 6
                         Entrepreneurship                         7                 7
                            Bee keeping                           8                 2
                              Rabbits                             0                 1

The analysis revealed that the popularity and profitability ratings do not always coincide. For
example, grain crops and vegetable production is popular with most residents while its
profitability is rated as fourth most profitable. On the other hand, rabbits breeding is not at all
popular while its profitability is the highest. The same applies to bee-keeping which is the eighth
most popular and second most profitable economic activity. The most common and multi-
purpose activity is dairy farming that ensures revenue from sale of both milk and fattened calves.

3.4.4. Developing a lending policy
One of the most sensitive issues of micro-crediting is the size of interest rates. If the interest rate
is high the payback period may be too long which will have a negative effect on both the
beneficiaries and the micro-credit scheme itself in terms of repayment rate. When making a
decision on this issue the following factors were taken into account: firstly – market rates used
by banks and informal economy sector; secondly – profitability of the loan-supported activity.

International experience and the interest rates used in various international programmes were
also considered. The Project lending policy was largely based on respective UNDP experience.
The following terms and conditions for loans provision were developed following the analysis of
the data received (see table).

               SECTOR             LENDING PERIOD              INTEREST RATE
               Agriculture          up to 12 months               1.5% a month
                Services            up to 10 months                2% a month
                Trading              up to 6 months                3% a month

Since the Project pilot territories are rural Jamoats the most privileged terms of loan provision
were granted for agricultural activities.

3.4.5. Outcomes of micro-credit scheme implementation
To date, the Project has provided $50,000 to the pilot Jamoat Resource Centres (JRCs), including
$20,000 – to the Kolkhozchiyon JRC and $30,000 – to the Rarz JRC. The Kolkhozchiyon JRC
will receive another $10,000 until the end of the Project, and thus the total funds provided to
each JRC will equal $30,000 and the total Project funds disbursed will amount to $60,000.
The tables below contain general information on loans disbursed to date.
Aggregated data for both JRCs
                                                            Loans disbursed to
              Loans disbursed
                                            Number of            women               Women‟s
  Number of       Amount,                    groups                                   groups
                                Amount, $                 Number
   people         somoni                                               Share, %
     513          156,980        50,000         92          191            37           14

Kolkhozchiyon JRC
                                                            Loans disbursed to
              Loans disbursed
                                            Number of            women               Women‟s
  Number of       Amount,                    groups                                   groups
                                Amount, $                 Number
   people         somoni                                               Share, %
    198            62,480        20,000         37           79           40             5

Rarz JRC
                                                            Loans disbursed to
              Loans disbursed
                                            Number of            women               Women‟s
  Number of       Amount,                    groups                                   groups
                                Amount, $                 Number
   people         somoni                                               Share, %
     315           94,500        30,000         55          112            35            1

The repayment rate on the loans granted from the Project provided funds has been 100%.
The money received as loan repayments has been re-invested into the loan capital and disbursed
as further loans.
Kolkhozchiyon JRC
                                                                Loans disbursed to
               Loans disbursed
                                                Number of            women               Women‟s
  Number of           Amount,                    groups                                   groups
                                    Amount, $                 Number
   people             somoni                                               Share, %
      75              23,640          7,457         16          35            47             4

Rarz JRC
                                                                Loans disbursed to
               Loans disbursed
                                                Number of            women               Women‟s
  Number of           Amount,                    groups                                   groups
                                    Amount, $                 Number
   people             somoni                                               Share, %
      36              10,800          3,407         8           17            47             1

The total loan capital, including the money received as loan repayment and further disbursed as
loans, enabled 624 beneficiaries to receive access to loans. The total value of financial resources
received by beneficiaries amounted to $60,864 (191,420 somoni in national currency of the
Republic of Tajikistan).
                                                                Loans disbursed to
               Loans disbursed
                                                Number of            women               Women‟s
  Number of           Amount,                    groups                                   groups
                                    Amount, $                 Number
   people             somoni                                               Share, %
     624              191 420        60 864        116          241           39            19

Bearing in mind that women were at a disadvantage in accessing financial resources, the Project
specialists made a special effort to ensure equal opportunities for both sexes. To encourage
women‟s economic activity the Project facilitated training in sewing, set up a women‟s club,
conducted information meetings to give clarifications on how to apply for a loan, etc. It is due to
the Project effort that the share of women in the total borrowers is 39%. Yet the number of men‟s
groups exceeds significantly the number of women‟s groups which is a signal to continue the
Project effort aimed at ensuring gender equality in access to loans.
Loan-supported activities
The table below provides information on loan disbursement structure.
                                        Number                          Amount
                                Indicator    Share, %       Somoni       USD          Share, %
              Dairy cow                 117         18.8       35,040     11,170              18.3
         Cattle fattening               271         43.4       83,100     26,490              43.4
                   Sheep                  15         2.4        4,500      1,434               2.4
                    Goats                  8         1.3        2,400        765               1.3
               Tomatoes                   16         2.6        4,800      1,530               2.5
                Potatoes                  57         9.1       17,100      5,451               8.9
                   Wheat                103         16.5       32,095     10,231              16.8
       Off-farm business                  33         5.3       11,185      3,566               5.8
             Horticulture                  4         0.6        1,200        383               0.6
                      Total            624          100       191 420       61020             100

The above information shows that most loans were issued for cattle fattening despite the fact that
it is the sixth most popular and profitable economic activity with profitability just approaching
50%. It is also worth noting that the loans were given during the period that was most favourable
for cattle fattening when there was a lot of grass. This allowed the beneficiaries to make good
profit. The repayment period for this type of activity is also quite short – 6 months.
Dairy cattle is the second most popular activity that enables the beneficiaries to improve their
nutrition quality, sell milk and growing stock. This is the second most popular and the third most
profitable economic activity.
Loan-supported activities manifested seasonal changes. In the spring and summer the most
popular activities included cattle fattening and dairy cattle, in autumn loans were taken for winter
wheat production. Loans were also given to support potato and vegetable growing, small cattle
fattening, and horticulture.

3.5. Co-operation of family (dekhan and household plot holders’) farms
3.5.1. Models of co-operation
Lack of monetary and technical resources as well as inaccessibility of markets for the purchase
of inputs and sale of produce call for introduction of various models of co-operation that would
establish links both between rural residents inter se and between rural residents and buyers of
their produce.

Below follows a description of horizontal and vertical co-operation models most commonly used
in agriculture all over the world to facilitate co-operation between agricultural producers and
between the latter and the buyers of their produce. The legislation in both Uzbekistan and
Tajikistan supports all these co-operation models. Therefore the relevant international experience
can be applied to test such models on the pilot territories and to promote them among family
farms, dekhan farms, farm enterprises and food processing factories. The description of the
models is given in the table below starting from the least complicated one. Each model is
described following the same format. The completing line of the table presents the results of a
survey conducted among family farmers to identify the distribution of co-operation models. This
information will be useful when making forecasts of demand for various models in Uzbekistan
and Tajikistan.

In market-economy countries the most common co-operatives are those that facilitate joint
harvesting and selling of produce as well as joint organisation of inputs supply. There are no co-
operatives that facilitate joint soil treatment.

                   Models of co-operation without registering a legal entity

                   Co-operation                 Co-operation                       Co-operation
                   (joint labour)       (joint utilization of means of        (joint purchasing and
                                       production available on certain       utilization of means of
                                     dekhan farms and household plots)              production)
 When used        A farmer needs    - Certain farmers have means of - It is cheaper to
                  to         meet      production      (e.g.   tractor)   in      purchase
                  deadlines            ownership or on other conditions;          machinery           by
                  which he is       - This means of production is used            sharing the cost to
                  unable to do by      for a limited number of days during        ensure equal access
                  himself.             a year and therefore is not practical      to its utilization.
                                       to be purchased by each farmer;       - To carry out land
                                    - The owner of a means of production          plots rotation to

                                 does not trust others to use it, but is     ensure            crop
                                 interested in extra income.                 rotation.
 Form of co- Farmers take The owner of a means of production is          Participants agree on
 operation   turns working approached by those who need to do a          long-term             joint
             on each other‟s one-off operation. The orders are           activities,     individual
             farm.           collected over the telephone or the         contributions into their
                             clients call on the farmer‟s house.         common business, way
                                                                         of sharing profits and
                                                                         losses, identify a person
                                                                         to keep records of the
                                                                         joint activities and
                                                                         interact      with      tax
 Stakeholders   Farmers who        The farmer – owner of a means of Farmers.
                are interested     production who is interested in its
                in completing      higher capacity utilization;
                their work in      The farmer – client who cannot afford
                peak periods.      to buy the necessary machinery.
 Purpose of co- Intensive work     The farmer (owner) is interested in Cost          sharing      to
 operation      on       farms,    recovering the cost of purchasing his purchase jointly owned
                ensuring equal     means of production.                  assets.
                swapping.          The farmer (client) is interested in
                                   getting a one-off service
 Formalization   No       written  Independent-work contract, often no Contract         of     joint
 of              contract, verbal
             joint                 contract at all.                      activities.
 activities      agreement only
 Requirements    Working at full The farmer (owner) expects due             Cost     and     liability
 to be met by    physical         payment.                                  sharing for the common
 all parties     capacity.        The farmer (client) expects quality       business.
 Distribution of Up to 50% 10% of the surveyed.                             Up to 50% of the
 co-operation    farmers.                                                   surveyed.

It is known that western farmers experienced serious difficulties setting up their first co-
operatives. It is only now that farmers who were born when farmer co-operatives had already
existed take co-operation for granted. However the introduction of new forms of co-operation,
such as a joint activities agreement for purchase and shared use of a tractor, is still not smooth,
even when the benefit of such a co-operation is obvious. Promoting co-operation in various
countries is the responsibility of special institutions.
To begin with, Uzbek and Tajik farmers could co-operate to purchase inputs for their production
operations. There is little doubt that the farmers will agree to informally share the costs by
authorising one of them to buy and deliver the inputs to the village on their behalf. Later when
the trust and recognition of the received benefit get stronger a co-operative for inputs supply can
be set up.
Farmers are more likely to set up a service provision co-operative if the joint co-operative assets
are bought with donor support. As soon as the farmers see with their own eyes the tractors and
combine harvesters they will immediately agree to pay a nominal membership fee to have access
to such machinery. The assets for such a co-operative should be formed starting with the most
expensive component (for instance, a tractor or a combine harvester), followed by purchasing
other equipment in the minimal necessary quantity. The number of members for such a co-
operative should be determined depending on the productivity of the equipment package during

the peak period. In other words, the membership will depend on the land size that can be
cultivated with this equipment.
                        Farmers’ inputs supply and           Contracts with processing companies or
                         marketing co-operatives              wholesalers stipulating production of
                                                                         agreed quality
 When used          -   More than 5 co-operating Buyer of agricultural produce wants
                        partners;                          guaranteed volumes of produce of agreed
                    -   Many types of assets are used quality.
                        on a long-term basis or an
                        expensive and complicated
                        service is required;
                    -   Management         capacity     if
                        required to solve organizational
                        issues related to co-operation.

             Farmer co-operatives are non-for-
             profit organizations that take into
             consideration the interests of all
             members regardless of the size of
             the participation.
 Form of co- Farmers remaining independent               At the beginning of each year a factory or any
 operation   agricultural producers set up a new         other wholesaler sends inquiries to its
             organization that will provide              traditional suppliers. The pro forma contract
             services to them on a long-term             stipulates products‟ required volumes,
             basis, including soil treatment,            kinds/breeds and farming methods. The inputs
             processing or selling their produce.        may be purchased by the farmer himself or be
                                                         provided by the integrator (wholesaler) within
                                                         agreed time period. The integrator‟s inputs
                                                         price is usually lower than in any other place.
                                                         The price for the agricultural produce to be
                                                         supplied is calculated as a base price plus
                                                         delivery costs. The contract stipulates the
                                                         product‟s price, the cost of inputs and
                                                         delivery, quality specifications both for the
                                                         product and the inputs.
 Stakeholders       Farmers who are interested in        The buyer who gets a large scale
                    reducing the price for services or   homogeneous consignment of required
                    increasing incomes from sale of      produce.
                    their produce.                       The farmer who is interested in obtaining
                                                         cheap inputs and guaranteed marketing.
 Purpose of co-  Reducing the farmer‟s costs,            Reducing the price for inputs, growing
 operation       securing equal access to assets.        homogeneous produce.
 Formalization   Setting up a new non-for-profit         Annual contracts.
 of         jointorganization based on membership
 activities      fees. All the revenues are
                 distributed among the members by
                 means of reduced costs of services
                 or increased marketing price for
                 their produce.
 Requirements Contribution fees proportional to          The buyer expects the farmer to follow certain
 to be met by the land size into the co-operative        farming methods.
 all parties     when it is set up (for co-operative     The farmer expects the buyer to supply inputs
                 set up for joint land treatment) and    and pay for the produce in due time.
                 volumes of prospective services to
                 be provided.
 Distribution of 100% of the surveyed dairy              For certain products – up to 100%, however

 co-operation     farmers.                            the farmer is under no strict obligation to sell
 model                                                to a certain wholesaler.

Involving market integrators in inputs supply and marketing of grown produce in many cases
will allow to solve problems faster than by setting up co-operatives. In Ayni district, for
example, there is an integrator named S. Juraev who supplies inputs to collectively-owned
dekhan farms and purchases their produce (tobacco) on a regular basis. At the same time Juraev
supports his partner farms by settling up their overdue debts (in case of looming sanctions from
the tax authorities), supplies foodstuff to farm members in winter months when they have no
income and are unable to buy their food. Despite the fact that the integrator carries the burden of
the above social functions the collectively-owned dekhan farm members are negative about the
way he runs his business because the purchasing price for their produce is low. The integrator‟s
explanations that the purchasing price is made up of the current market price for the produce less
the costs incurred by the integrator himself when paying out the interest on the loan obtained to
buy inputs and foodstuff, do not help as the farm members are unable to appreciate the size of his
expenditures. This is because the contract with the integrator is signed by the head of the
collectively-owned farm on behalf of its members who remain unaware of the integrator‟s actual
contribution into the farm‟s production and support measures.
In his turn the market integrator is keen on establishing direct relations with the families – farm
members – who are working on the allocated to them land plots and not with the head of a huge
collectively-owned dekhan farm. In view of the above the Project started developing a standard
(sample) contract that would stipulate all the conditions for inputs supply and purchasing prices.
A market integrator should sign such a contract directly with the producers.
The contract will include:
    List of inputs to be delivered on request of the family who are producing agricultural
     products for sale and their market price;
    Conditions for providing a tied credit to a rural family for purchasing inputs;
    Deadlines and packaging (volume) requirements for inputs to be delivered;
    Purchasing price for grown produce;
    Settlement procedure for tied credit when the agricultural produce is bought by the
     market integrator;
    Deadlines, packaging and quality requirements of the integrator to the finished produce;
    Sanctions and dispute settlement procedure.
The above market integrator undertook to prepare information leaflets for rural residents
explaining the conditions for inputs supply and produce purchasing. Such information will
enable rural residents to make a decision regarding what produce to grow before signing the
In the course of the above work it became clear that rural residents have no information
whatsoever about market prices for produce or inputs. The Project recommends considering the
establishment of an information point within consultancy centres of the district administration.

3.5.2. Setting up a co-operative for service provision to household plot
holders and dekhan farmers.
The Project has started work to set up rural service provision co-operatives. The work is to be
implemented according to the following plan.

Participants in co-operation. Co-operation is most vital for family (dekhan and household plot)
farms. They are the main agricultural producers both in Tajikistan and Uzbekistan. However they
differ from each other in terms of land size, production outputs and specialization. This may
require setting up independent co-operatives for each of the above category. The feasibility of
family farmers‟ participation in household plot holders‟ co-operatives could be analysed in the
course of the project implementation.
Selecting pilot territories. One Jamoat in each of the pilot districts will be selected for testing the
initiative. The Project will have to decide where service provision co-operatives should be
located, at district or rural administration level.
Taking into account high density of the districts‟ population it may be feasible to set up one
district level co-operative with subsidiaries in rural administrations.
The population size in the pilot districts is very big, e.g. in Urgut district it amounts to 360,000
people. It is hardly feasible to set up a co-operative with this many members. This is a serious
argument in favour of setting up individual co-operatives in each rural administration for their
further affiliation into district, region and country level unions.
The final decision as to where service provision co-operatives should be set up is to be taken in
consultation with the experts from district departments of agriculture and rural administrations.
Identifying most often requested services. The Project recommends conducting a survey of rural
population to identify types of services that are in the greatest demand among rural residents. For
this purpose it is recommended to select 2-3 kishlaks in each district where 5-10% of total
households will be questioned. The respective questionnaire is given in Appendix The
survey will show the feasibility of setting up a service provision co-operative and help to identify
its main functions.
Forming an initiative group. Setting up a service provision co-operative can be successful
subject to the availability of a leader supported by an initiative group. A search for leaders
willing to take on the responsibility should be conducted among the local population.
Developing legal and normative documents for setting up a service provision co-operative. This
involves drafting a Charter, determining the principles for calculating the size of contributions
(depending on participation in the co-operative‟s operations), collecting applications for
membership, conducting a general meeting of the members to establish the co-operative,
registering it and collecting fixed share contributions (membership fees).
Estimating the need for and feasibility of purchasing machinery, equipment and renting
premises. Respective machinery, equipment and premises are prerequisite for business
operations of a co-operative. The initial requirement of machinery, equipment and premises is to
be calculated on the basis of expected volume of services to be provided to the co-operative
members and external organizations. An estimate of such a volume of services may be done on
the basis of the survey findings and actual number of submitted applications for membership. A
sample feasibility study is given in Appendix
Forming an equity fund of the co-operative. The source of equity of the co-operative is the
amount of members‟ fixed contributions and the money received from donors. Following the
purchase of the necessary assets the latter can be used as collateral to get a bank loan for
investments and working capital.
Developing legal and normative documents to support the operations of a service provision co-
operative. The following regulatory documents should be developed to ensure a smooth
operation of a service provision co-operative:
 Regulation on determining prices for services to be provided to the co-operative members
  and to third parties;

 Regulation on determining mark-ups on inputs supplied by the co-operative to its members
  and to third parties;
 Regulation on determining prices for the produce grown by the co-operative members and
  sold through the co-operative;
 Regulation on determining the size of annual payments on shares in the co-operative and
  their distribution among the members (depending on participation in the co-operative‟s
 Organizational breakdown structure of the co-operative (list of divisions, their staff list,
  functions, work procedure, accounting and accountability, remuneration of labour, etc.);
 Work procedure for service provision: collecting applications, drafting work schedule, setting
  priorities in service delivery, invoicing (advance payment), follow-up to ensure actual
  payment, sanctions in case of failure to pay for the services provided, etc.;
 Work procedure for inputs supply operations: collecting applications, filling in order forms,
  inputs delivery, fulfilling orders, payment (advance payment) for inputs, determining the co-
  operative profit margin;
 Procedure for collecting and marketing the produce, namely, making a list of products with
  estimated sales volumes to be sold through the co-operative, agreeing on initial price,
  identifying produce collecting points, etc.

3.6. Developing off farm businesses
Labour surplus in rural areas, limited number of operating industrial enterprises and service
provision agencies, on the one hand, and shortage of (arable) land, particularly in the upland of
Tajikistan, on the other, calls for diversification of economic activities and developing alternative
off farm businesses. In discussion with rural residents and Jamoat Development Committees the
Project has identified the types of off farm activities that can be initiated within a household with
minimal investment due to availability of certain resources, e.g. sewing; currying; parcelling
alabaster and plaster.
Sewing. Many rural families have sewing machines. This means of production is used to satisfy
the family needs and is not used to generate income through entrepreneurial activities.
The discussions with rural women living on the pilot territories (Ayni and Penjikent districts of
Sogd region) have revealed their keen interest in getting involved into an economic activity that
could ensure their employment and income. When asked what type of activity they could
undertake for this purpose they mentioned sewing. However they had difficulty formulating:
    what styles of clothing they can sew for sale;
    where they can sell their products, and
    whether the quality of their products, chosen patterns and cloth could meet the customers‟
The Project search for a market integrator capable of supporting the women looking for ways of
generating income helped to identify a woman entrepreneur, Maksadoi Sabirova, who is a
qualified specialist in cutting, has her own sewing business and heads an organisation which
employees are engaged in making garments for sale.
She offered to train a group of women living on the pilot territories to sew items of various
complexity, to supply them with cut textile fabric, and purchase from them finished or half
finished products for further re-sale to customers.

Maksadoi is an experienced trainer as she has many times taught unemployed women to sew
under the programme funded by the Unemployment Service.
The Table below demonstrates the effect that involving unemployed women into this income
generating activity may produce.
                      Impact from involving women into a “sewing scheme”
                                                                       Product type
                                                   A set of bed-       Summer suit          Worker’s
                                                       clothes           (shirt and         mittens
                                                  (blanket cover,       trousers of
                                                    bed sheet, 2        loose style)
Cloth consumption per 1 set, m                                   8                      3   Per 11 pairs:
Cost of 1 m, somoni                                              2.2                    4            4.4
Price per 1 set, somoni                                         17.6                   12            8.8
Cost of cloth cut, somoni                                          1                    2           0.22
Price per 1 half finished set bought from a                     18.6                   14          24.20
Buy-out price by a woman-entrepreneur from a                    21.6     19.5 + cost of             24.75
seamstress, somoni                                                     stitching thread
                                                                       and accessories
Seamstress‟s income per 1 set, somoni                             3                  5.5           0.55
Number of sets per month                                         20                   20       800 pairs
Seamstress‟s income per month                                    60                 110              40

Note: qualification                                   average               good              low

This proves that the participation in the above co-operation scheme between the women and the
entrepreneur enables to generate income while working at home in the amount equal to the salary
of a high level official of the district administration.
                                         Proposed scheme:
                                                                   Cost, somoni
                                                   Rural women          Entrepreneur           Project
1.   Training of women                                travel,                 0                 210
                                                accommodation, food
2.   Loan from revolving fund
3.   Purchasing cloth                                                              +
4.   Purchasing cut cloth                       depending on product
5.   Sowing (producing finished product)
6.   Selling finished product to entrepreneur
7.   Loan repayment by seamstresses                                         depending on
                                                                            product type
8.   Purchasing cut cloth (2nd round)           depending on product

The proposed scheme is attractive as it results in the employment of the women-participants who
get an opportunity to generate income and purchase cut textile fabric with their own money for
their further work.
About 40 women have received training in the course of the Project implementation. Maksadoi
Sabirova provided them with pre-cut items (to make mittens) to be sewn up and given back to

her for further sale. However, the women found their own market and sold the mittens in their
village. Now they cut and sew the mittens by themselves. The practical implementation of the
above scheme showed that the women had made some adjustments and were sewing not only for
sale but also to meet their family needs. They also became participants in micro-credit schemes
taking loans to purchase sewing machines. Unfortunately, the women have so far been hesitant to
take part in the project designed schemes according to which they were supposed to fulfill orders
of Maksadoi Sabirova using her „raw materials‟. They are afraid that the quality of their work
will not meet the entrepreneur‟s requirements.
Below follows a description of activities of the women who have been trained in sewing.

Novobod kishlak of Penjikent district
Five young women received training. In August 2005, they took a loan to buy sewing machines. By end
of 2005, 50% of the loan had been repaid. They cut and sew clothing items for themselves, their relatives
and for sale. In November 2005, the local school principal provided them with working premises inside
the school building. They agreed to teach schoolgirls to sew as rental payment for the premises.
Most popular orders: lady‟s robes, school uniform, costumes for ceremonies (including, national dress).
      Shafoatova Buhafshi made in September 2005:
      for sale – 9 school uniforms worth 99 somoni;
      for family – 6 robes and bed-linen worth 57 somoni (savings of the family budget);
      for exchange – 3 girl’s robes for neighbours in exchange for a case of grapes worth 5 somoni.
      Total costs – 63 somoni. Total revenue – 98 somoni.

Gusar kishlak of Penjikent district
      Kholmuradova K. took a loan to buy a modern sewing machine. In September 2005 she made:
      tailor made robes for sale – 16, worth 90 somoni less the costs;
      bed-linen for sale – 15 sets made from customer’s cloth, worth 60 somoni;
      overstitching for other seamstresses – 25 somoni;
      school aprons for sale – 50 somoni.
      Total revenue – 225 somoni.

Rarz Jamoat
Of 20 women who received training only 8 are involved in commercial activities. The others sew for
family needs.
      Nozimova S. made in September 2005:
      tailor made robes for sale – 10, worth 36 somoni less the costs;
      bed-linen for sale – 15 somoni;
      girl’s school uniforms – 25 somoni;
      mittens, sacks, bags – 15 somoni;
      Total revenue – 91 somoni.

      Khuseinova Kh. made in October 2005:
      tailor made robes for sale worth 56 somoni (less the costs);
      gent’s trousers – 25 somoni;
      school uniforms – 30 somoni;

     Total revenue – 111 somoni.

Selling wool. The Project is currently looking into feasibility of yet another type of income-
generating activity accessible to all rural households, i.e. producing and selling wool. There is
every opportunity for undertaking this type of activity as all families keep animals. In Rarz
kishlak, families produce 2 to 4 tonnes of wool annually which is then destroyed as it cannot be
sold. The wool price offered by the local carpet factory ranges from 0.4 to 1.3 somoni per kilo.
To make sure the project developed scheme works one of the Project consultants together with
the local residents went through all the stages of the scheme starting from purchasing wool from
rural residents and finishing with getting money from the carpet factory where the wool was
sold. Implementation of the above scheme can enable kishlak residents, including the
entrepreneur acting as an intermediary (market integrator), to earn from 800 to 5,200 somoni a

Selling animal skins. This type of economic activity is also currently in the focus of the Project‟s
attention. Rural residents have been trained in techniques of primary currying. A potential
market – skins procuring point in Dushanbe – has been identified. In March, when the tunnel
road from Sogd region to Dushanbe is open (reducing the travel time by 3-4 times) starting such
a business will become feasible.

3.7. Lesson sharing and application of successful experience of international
sustainable livelihoods projects

3.7.1. Co-ordination with UNDP
UNDP is RosAgroFond‟s strategic partner for the Project implementation (see Memorandum of
Understanding /MoU/ and Third Party Cost Sharing Agreement in Appendix
Since 2001, UNDP-Tajikistan has accumulated extensive experience in establishing and
supporting Jamoat Development Committees (JDCs). The aim behind this work is to make the
development processes not only community driven, but also community-owned. This is done by
ensuring direct involvement of community members in all project stages. The preference is given
to community participation in addressing all issues starting from the election of village
representatives to the JDC, to prioritizing local needs and to securing community contributions.
To date, over 90 advanced JDCs transformed into Jamoat Resource and Advocacy Centres
(JRCs) are operating in four regions of Tajikistan playing a key role as effective, equitable and
inclusive mechanisms at the grass-root level for supporting the implementation of poverty
reduction strategies of the government.
For details of the UNDP Programme for Phase 1 see Appendix
To date as a result of the joint effort of RosAgroFond and UNDP two Jamoat Resource and
Advocacy Centres in the Jamoats of Rarz and Kolkhozchiyon have been established and are
operating successfully (for details of JRCs‟ activities see Section 3.1 of this Report).

3.7.2. Building partnerships: co-operation with international organizations
and national NGOs
Phase 1 of the Project focused among other priorities on building partnerships with all
international organizations and local NGOs working in Zarafshan Valley, specifically in

Penjikent and Ayni districts of Tajikistan. This became particularly imperative following the
Tajikistan President‟s Decree № 857 dated 8 August 2002 “On certain measures in support of
Poverty Reduction Strategy implementation” ordering the establishment of Poverty Reduction
Strategy Paper Monitoring Units (PRSP Units) both at national and Hukumats levels. Donor
projects and efforts of local NGOs, therefore, should also seek to contribute to the goals set in
the Strategy.
RosAgroFond has been a regular participant in discussions organised by the donors working in
the Zarafshan Valley (Penjikent, Ayni and Gorno-Matchinsky districts of Tajikistan).

1. German Agro Action (GAA): (Anya Ibkendanz, 3 Lenin Street, Ayni town, tel. + 992 92 770
66 90, e-mail The GAA Food Security Project has been on-going in
the pilot districts for its second year. The project was initiated in 10 kishlaks (villages) of Ayni
district (including one of the kishlaks situated in the pilot Jamoat of Rarz – Fatmev) and five
kishlaks of Penjikent district. Ten more kishlaks of Gorno-Matchinsky district are joining the
project in the current year. The project aims at improving the livelihoods in the most distant
mountainous districts by developing self-help capacities at community level. The project
comprises a large infrastructure component. Thus in 2004, four irrigation canals were repaired
with another eight undergoing current rehabilitation; four water pipelines were built with another
11 being under construction. The work itself is carried out by the communities while the project
engineers assist by giving advice and providing consultations. There are plans to set up a Water-
Users Association to ensure efficient running of the water supply canals.
Kishlak Development Committees with the responsibility for the GAA projects implementation
have been set up on the basis of Makhala (neighbourhood) Committees. Nine of them acted as
vehicles for micro-credits distribution and have provided loans for purchasing livestock to 176
beneficiaries to the total amount of 67,000 somoni ($22,000).
Training has been delivered on a regular basis and included safe water utilization, water save
technologies whilst maintaining long-term soil fertility, planting fruit gardens and improving
yields, business planning, micro finance, civil society development, principles of life safety and
disease prevention, as well as family planning.
Much attention has been devoted to the demonstration activities. Thus two nursery gardens have
been organized in Toshminor and Iskondar. A demonstration field to grow over 40 kinds of
crops, including 20 different kinds of potato, has been created in Zoosun. The Project has been
working in close co-operation with local NGOs “Jovid”, “APPR NAU”, “NADJ”, that have been
acting as project partners in the area of community development and agricultural advice
provision. The NGOs “Jovid”, for instance, supports demonstration land plots to grow winter
wheat and seed potato in the kishlak of Shevatki Poyon, Rarz Jamoat of Ayni district, and in the
kishlak of Kumok, Kolkhozchiyon Jamoat of Penjikent district (Project target territories).

2. Mercy Corps Corporation started the implementation of the USAID supported “Peaceful
Communities Initiative” project in Penjikent district in January 2005 (contact details: Justin
Odum, 13, Zarafshon Street, Penjikent town, tel. + 992-3475-52721, e-mail:
The “Peaceful Communities Initiative” (PCI) programme aims at facilitating effective co-
operation among various ethnic groups within the neighbouring Republics of Tajikistan,
Uzbekistan and Kyrgyzstan and between communities located in border areas. The key
implementation approach has been to involve a large number of border areas residents into
decision making processes for the implementation of projects addressing infrastructure needs and
social events and promoting community solidarity and good-neighbourly relations. In 2001-
2004, the PCI programme worked in 36 communities bordering the Ferghana Valley. Over 200
social events and 80 infrastructure projects were implemented over the above three years. All the

PCI facilitated projects have been community driven and implemented in close co-operation with
local authorities and residents.
The infrastructure projects facilitate rural community mobilisation to address common problems
and improve the community infrastructure. The above initiatives included construction of gas
supply systems, rural schools, hospitals, bath houses, kindergartens, electricity supply networks;
building, modernization and rehabilitation of irrigation and drinking water systems.
Workshops and training organized for community representatives clearly contribute to the
increased role of community initiative groups, women and youth in the community social life
and facilitate the establishment of peaceful, productive and sustainable relations between

3. NGO “Save the Children” (contact person – Salim Sharopov, +992 3475 5 33 01; 5 43 77; e-
mail: has been working in the pilot districts focusing its
activities on the following two main areas: health promotion and agriculture promotion.
Agriculture promotion includes:
    Support to agricultural production.
    Improved processing and storage of agricultural produce.
    Distribution of new kinds of nursery transplants, seeds and agricultural implements.
    Improved nutrition of the population.
    Greenhouses repair.
    Agribusiness development.
The territories of the pilot Jamoats covered by the above NGO include kishlaks of Guzari Bod,
Fatmev (Jamoat of Rarz), and kishlak of Kumok (Jamoat of Kolkhozchiyon).
The “Child Survival” project has been operating in the Zarafshan Valley for over five years. It
has been dealing with the problems of maternal and newborn care through continuous training of
all the health personnel available in the kishlaks of the Jamoats, with special emphasis on
training of accoutures (midwives) and mothers in most dangerous disease prevention – typhoid
fever and tuberculosis. In many kishlaks Revolving Drug Funds for Village Pharmacies are being
established, emergency child lifesaving measures are being developed and workshops in family
planning and contraception are being delivered.
There are also local NGOs operating in the Zarafshan Valley, such as “Buzurg”, “Jovid”, “APPR
NAU”, etc.
According to the Civil Society Support Centre, there are 47 NGOs in the Zarafshan Valley,
however only six of them have an office of their own. NGO “FAZO” (director – Khabiba
Abdurakhmanovna Azimova, co-ordinator – Nabizol Bozorovich Azizmuradov) was set up several
years ago as a Support Centre for women and children. The NGO employs six salaried workers
and 90 volunteers. In addition to working with children (leisure, languages, hiking), the NGO‟s
activities include issues related to environment, land legislation, and taxation. The NGO has
carried out monitoring of the land reform together with UNIFEM. A large amount of the NGO‟s
time is devoted to training young people (27 workshops for 23 thousand people) who plan to
seek employment in Russia. The NGO distributes literature with detailed instructions as to how
to behave and how to protect oneself in a foreign country.
The Tajikistan Branch of the International Association for Ecology “Women of the East” was
registered as an NGO in 1995 (director – Fotima Nizamovna Sharifova). In February 2004, it
opened a Civic Reception Centre that has been successfully operating with support of USAID

(there are 7 such centres in the Zarafshan Valley). The Civic Reception Centre supports
transformation and reform activities in all spheres of social life, including, ecology, education,
cultural heritage, gender awareness, social and legal initiatives, poverty reduction and peace. The
Civic Reception Centre provides information, consultation and training support to NGOs and
public organizations of the district, organizes and delivers workshops and training, publishes the
information bulletin “Parvona”, works with communities.
There are some NGOs in the district that specialize in one line of activity only, for instance, the
NGO “Buzurg” that is engaged in drug abuse prevention among population. To reduce the
damage caused by drug abuse and AIDS the NGO has been working in partnership with USAID
and Mercy Corps. At present the NGO runs a Point of Anonymous Assistance and an Alcohol
and Drugs Abuse Treatment Centre.
NGO “Imkoniyat” is involved in rehabilitation of disabled children and is providing assistance to
aged people and people with health disorders. In 2005, the NGO received an IREX grant to set
up a Family Crisis Centre, organize leisure time for women and start a children‟s puppet show.
In Ayni district, RosAgroFond has established contact with four other NGOs (in addition to the
ones mentioned). They are “Chashma Khayot”, “Zarniko”, “Gender-related Development”, and
“Women Voters” with head offices in Dushanbe. The NGOs are involved in the implementation
of projects aimed at fighting AIDS; providing support to migrants; health education; legal
awareness; women education; protection of women‟s and children‟s rights and their health;
earthquakes preparedness and rehabilitation; organization of civil society forum. The NGO
“Gender-related Development” also disburses micro loans of 200 to 8,000 USD at 20% annual
interest in somoni. The total loan capital of the micro credit fund is 70,000 USD.
In 2006, two new big projects are starting their work in the districts: a World Bank supported
project (Development of community based agricultural production and water catchments
management in the Zerafshan River basin) and a project supported by the International
Organisation for Migration (IOM).
So far the activities of donor organisations, international projects and local NGOs have been
poorly synchronized. Each project sets up its own public committee at kishlak or Jamoat level,
the committees overlapping and duplicating each other. Hukumat representatives are not always
aware of certain project activities. The above poor synchronization often results in the fact that
beneficiaries of one and the same kishlak may be offered the same support either free of charge
or at a privileged or even market interest rate. The beneficiaries obviously opt for the non-
repayable support. In this situation it is hardly possible to expect any community support
mechanisms to ever become sustainable, as the residents‟ dependant attitudes make their
participation in any market oriented scheme impossible. To illustrate, in Penjikent and Ayni
districts, residents of 108 of the total 200 kishlaks receive free seeds, nursery transplants,
fertilizers and agricultural implements from “Save the Children” organization on a regular basis.
One can hardly expect them to be willing to take a loan from a micro-credit fund for the same
purposes. Unfortunately, social projects are often designed as a one off investment. For instance,
the Hukumat administration first specifies what social infrastructure object is necessary and then
an international organization virtually constructs the required object.
To improve the co-ordination of efforts of authorities, donor organizations, and participating
communities the Project recommends establishing Hukumat Advisory (Co-ordination) Boards at
district level (see Appendix

3.7.3. Lesson sharing Workshop “Strategy and Mechanisms for Sustainable
Rural Development in CIS Countries” conducted in partnership with UNDP
The Workshop “Strategy and Mechanisms for Sustainable Rural Development in CIS Countries”
was one of the first lesson sharing events, held on 24-25 March 2005. The Workshop focused on:
   1. Lesson sharing with successful rural development projects implemented with support of
      DfID, UNDP and other international organizations.
   2. Presentation of the Zarafshan Regional Development Initiative, its objectives and scope
      of activities.
   3. Interchange of views with government authorities and donor organizations on the strategy
      of social and economic development of rural districts of the Zarafshan Valley.
The Workshop was attended by representatives of central, regional and local government, local
NGOs, international organizations, and project beneficiaries from the Zarafshan Valley. The
issued discussed included land reform in CIS countries and farm reorganization to increase
incomes and employment, successful models of agricultural co-operation introduced in CIS
countries, securing access of rural residents to small scale loans and other resources. There was
also an exchange of views on prospects of institutional and market transformations in rural areas
of transition economies, opportunities for applying the most successful models and schemes in
support of developing sustainable and efficient farm enterprises (producers) and market
infrastructure institutions in rural areas.
The Workshop participants noted the great value of information on DfID supported rural
development projects implemented in other CIS countries. Particularly valuable were found the
reports and discussions led by Viorel Guerchu from Moldova, Mikola Gritzenko from Ukraine
and professor Vasilii Uzun from Russia.
The Workshop programme and list of participants are given in Appendices and

3.7.4. Organisation and outcomes of the Project supported study tours
An extensive programme of study visits and study tours has been implemented within Phase 1 of
the Project. The destinations included both CIS countries (pilot territories of completed and on-
going DfID supported projects) and farther abroad to study the EU experience in developing and
implementing rural development programmes. The study tour programme comprised the
following four parts:
    A Study tour to Scotland (2 trips) – July and October 2005;
    A trip of Guavkhar Kholmuradova (Madadkor Association, Bulungur district of
     Uzbekistan) and Valerii Saraikin (RosAgroFond) to study the experience of setting up
     service provision co-operatives in Makariivsky district of Ukraine (invited by Mikola
     Gritzenko, Chairman of the Association of Service Provision Co-operatives of Ukraine) –
     June 2005;
    A study tour of pilot Jamoats representatives to the pilot districts (Lodeinoye Pole and
     Volkhov of Leningrad region) of the DfID Sustainable Rural Livelihoods Project
     (implemented in Russia in 1999-2003) – August 2005;
    A trip to Muminabad to study the experience of the Local Development Centres
     Muminabad – Community Development Project supported by Swiss Cooperation Office
     (Caritas) – November 2005.

                                               69 Study Tour to the Russian Federation and Scotland
Due to certain reasons beyond the Project‟s control (political situation in Uzbekistan in May
2005) the study tours of Tajik and Uzbek beneficiaries were organized separately: the Tajik
study tour took place between 6 and 16 July 2005, and the Uzbek study tour – between 28
September and 8 October 2005. Both tours included a visit to Oryol region of Russia (the pilot
region of the SRLPP: Russia (1999-2003) and a visit to Scotland (rural areas between Aberdeen
and Edinburgh). See the study tour programme in Appendix

Study tour for Tajik participants:
Delegation: key stakeholders in charge of decision making in the area of rural development
(land, agriculture, poverty reduction, home policy, structural adjustments). The delegation
comprised officials ranging from republic to Jamoat (rural administration) level involved in
working with rural territories (see Appendix The delegation also included a UNDP
representative. This UN supported development programme has good chances to continue
implementation of the rural development initiatives designed under the Zarafshan Regional
Development Initiative (ZRDI). In addition, 2 ZRDI consultants also made part of the delegation.
There were two reasons to include them into the delegation. Firstly, they were to study the
experience for its further application under the ZRDI Project, and, secondly, to initiate relevant
discussions among the delegates in order to shape their opinions as decision makers with regard
to rural development of Tajikistan.
Study Tour Purpose: studying the experience accumulated in the field of rural development,
identifying applicable ways of increasing rural incomes and diversification or rural economy.
The underpinning idea of the Study Tour was in line with DfID principles – indispensable
exchange of views and application of the experience accumulated in similar areas in other
countries. The Study Tour was designed to have two stages:
Stage One: Russian Federation, Oryol region
Reasons for selecting Oryol region as one of the study tour destinations: the Russian Federation
(RF) and the Republic of Tajikistan (RT) are former republics of one country and they had
common basis for starting their further reforms. The RF is more advanced in their reforms. The
RF has introduced private ownership for land and enabled farmers to start their individual
independent businesses or set up organizations with other participants. The RF has also benefited
earlier in time from DfID supported rural development projects, namely Land Privatization and
Farm Reorganization, Revitalization of Insolvent Farms, and Sustainable Rural Livelihoods.
Upon completion, the projects left behind Russian non-for-profit organizations that, independent
of grant funding, continued developing and implementing the project ideas, thus having proved
the sustainability of the DfID project developed mechanisms. It was therefore considered that the
visit to Oryol region would benefit the participants from Tajikistan who may find the experience
useful and applicable in their own country.
In fact, studying the Oryol experience has been extremely useful. Firstly, it has been
demonstrated that transferring land to private ownership of rural residents has contributed to
their increased incomes not only because they were able to start their own businesses but also
because they could lease their land to other users. Secondly, the delegates have received
confirmation that the introduction of private ownership for land has not led to any stratification
of society and that the procedure of land transfer can be transparent and fair. Thirdly, the
participants have studied the procedure for setting up and operating credit co-operatives that
facilitate access of rural residents to credit. Fourthly, they visited rural residents, who had taken
out loans to diversify their current activities or start an off farm business thus increasing their

Stage Two: UK, Scotland
During the tour the delegates studied:
    Rural Development Policy of Scotland and European Union (Experience 1);
    organizations involved in advice provision and implementation of support programmes
     for rural residents and entrepreneurs, as well as the activities of the above organizations
     (Experience 2);
    work of co-operatives and advantages of small scale farmers‟ co-operation (Experience
    opportunities open to rural communities for accessing resources for territory development
     (Experience 4);
    farmers‟ problems and their possible solutions through diversification of their business
     (Experience 5);
    approaches to involving women in rural businesses and active participation in the life of
     their rural community (Experience 6).
The above experience has been found extremely useful despite the fact that the living standards
of rural Scotland are incommensurably higher than those of Tajikistan.
Farmers and Rural Community Support Programmes (Experiences 1 and 4): the Tajik
participants have learnt about the decreasing level of state and EU support to farmers who are
currently facing the need to continuously improve and diversify their business to ensure decent
living standards for their families. In Tajikistan, farmers do not respond so quickly to market
changes despite their low incomes. The new knowledge triggered off a discussion among the
participants who agreed that poverty was only aggravated if unprofitable types of activities were
imposed on farmers thus resulting in lower living standards in rural areas. The delegates
representing the Tajik President‟s Administration Office and Ministry of Agriculture have
formed a position that it is necessary to gradually transfer to market-driven production of the
core country products.
Another positive outcome of the discussion was the growing awareness that support methods
could vary and that controlled instruction based support was much less effective than involving
residents into identifying priorities of rural development, ensuring their contribution when
raising funds for economic and social development, re-allocating state budget funds to those who
participated in state supported programmes or who provided better arguments in favour of their
development initiatives. This approach is practiced under the ZRDI Project where participating
residents identify through Kishlak Development Committees what is the most essential and
effective for rural development of their territory. This principle is instrumental for disbursing
loans for production activities as well as for issuing social infrastructure grants. Rural residents
are taught how to justify the feasibility of grant supported initiatives, how to write an application,
identify grant sources, and calculate the effectiveness of this or that type of activity. Another
important thing that the Scottish Study Tour helped to understand was the need for trained
specialists to work in rural administrations who would be involved in fund raising to be invested
into rural development. So far, in Tajikistan, the people who are currently working in rural
administrations have been those who are well respected, and are, as a rule, teachers who,
however, have neither the necessary knowledge nor skills to be able to raise funds for rural
development of their territory. Traditionally they have relied on state budget funds in their effort
to help people.

Advisory service network for farmers (Experience 2). Following the collapse of the kolkhoz9 and
sovkhoz10 based system of agriculture that had ensured availability of qualified specialists
(agronomists of various specializations, livestock specialists, veterinaries, engineers, economists
and accountants) on each and every farm, a need for setting up a system of rural consultancy
points became obvious. Creating such a system will ensure access to specialist knowledge of
farmers and household plot holders (who, as a rule, lack specialist knowledge and have no
relevant certified specialists among their family members to turn to). Scotland can boast a well
developed extension service funded through the government, EU budget and farmers‟
contribution. Agricultural educational and research institutions are also involved in this work.
The ZRDI Project has studied the feasibility of setting up an extension network in Tajikistan as
the demand for such services is great. It can be set up with support of the Project as the state
budget does not have any allocations for this purpose. At the same time there are some certified
specialists both in the district and on the pilot farms, however their knowledge needs upgrading.
Besides, there are no livestock specialists in the district while residents of only one pilot farm
“Marguidar” keep about 10,000 heads of cattle and other livestock. The ZRDI Project is setting
up demonstration farms which owners will be sharing their own experience in best agricultural
practices. The population‟s demand for advisory service will be also estimated based on the
activeness of their participation in workshops delivered by ZRDI Project specialists on certain
dekhan farms and household plots.
Co-operation (Experience 3). In CIS countries there is a strong speculative belief that rural
incomes can be increased by setting up co-operatives of rural residents for providing services of
tillage and freight hauling. However the world experience in co-operation does not confirm the
effectiveness of wide scale co-operation of this type. Rare examples of such co-operatives
demonstrate that they are set up either with support of various grants or with state budget money.
This can be explained by the fact that residents feel reluctant to contribute their own money to
purchase machinery as it is expensive and there is little hope that the machinery will be used
with due care. In Scotland, the tour participants studied the experience of a co-operative that
ensures provision of such services. However the co-operative does not own the machinery used
for the above, it only identifies the machinery and other resources that are not currently used by
other co-operative members and helps the two parties to come to an agreement. This experience
can be applied in Tajikistan where a co-operative may ensure utilization of the machinery
belonging to large scale dekhan farms by small scale farmers and household plot holders.
Diversification of agricultural activities (Experience 5). The tour participants had a chance to
study the experience of farm diversification into off farm businesses. This experience is also
extremely useful for it has demonstrated the feasibility:
       for rural residents to engage in other types of economic activities in locations where they
        have been traditionally involved only in agriculture. Almost all the Tajik rural population
        is involved in agriculture even in locations where land is in shortage while other types of
        economic activities are simply neglected;
       of re-profiling production facilities. Rural Tajikistan has a lot of potential in this respect.
Piloting and testing of the above can be done under the ZRDI Project.
Involving women in farm businesses and active social life (Experience 6). It was particularly
useful for the Tajik delegation to study such an experience as a large part of rural able-bodied
male population migrates in search of jobs leaving women behind to look after the families.
Women, left without the husband‟s support in their husband‟s family, often experience a strong
psychological stress. The ZRDI Project consultants have received evidence proving that their
work with women was in the right direction:

    collectively-owned farm
     state-owned farm

    Assistance to women in acquiring skills that would help them in producing certain types
     of products ordered by entrepreneurs (the so-called “sewing scheme”);
    Setting up women‟s clubs where women could relax and get distracted from their
     psychological problems as well as improve their skills in managing a household, looking
     after children, and taking care of their and their children‟s health.
The discussion that completed the Study Tour to Scotland has enabled the participating rural
administration representative to make a list of topics that might interest rural women and make
them willing to discuss them at their women‟s club sessions.
Overall the Study Tour has been extremely successful and useful. The Project‟s Scottish partner
in the tour (Scottish Agricultural College) has been highly professional and attentive to the tour
organisers‟ needs and expectations. The tour programme has been particularly interesting and it
has been followed through in an impeccable way.

Study tour for Uzbek participants: A trip to Makariivsky district of Ukraine to study the experience of setting up
service provision co-operatives. This trip made in June 2005 by Guavkhar Kholmuradova
(Madadkor Association, Bulungur district of Uzbekistan) and Valerii Saraikin (RosAgroFond) at
the invitation of Mikola Gritzenko, Chairman of the Association of Service Provision Co-
operatives of Ukraine, proved very useful in terms of preparation for the creation of a service
provision co-operative in Bulungur district.
The specialists aimed to achieve the following:
      Study the principles of structuring and running various types of agricultural co-operatives
       on specific examples.
      Look into practical values of agricultural co-operatives for creating mechanisms that
       allow to cut costs and increase profitability of farm enterprises – members of the co-
      Estimate the economies of scale in co-operatives of various specialization or when a
       multi-functional approach is applied.
      Identify opportunities for creating agricultural co-operatives and developing co-operation
       between household plot farms and family farms for various purposes in Tajikistan and
For details of setting up an agricultural consumer co-operative for shared use of machinery and
service provision see Section 3.5. A study tour of pilot Jamoats representatives to the pilot districts (Lodeinoye Pole
and Volkhov of Leningrad region) of the DfID Sustainable Rural Livelihoods Project
(implemented in Russia in 1999-2003)
The Sustainable Rural Livelihoods Pilot Project (SRLPP) was launched in September 1999 in
two rural districts – Lodeinoye Pole of Leningrad region and Novosil of Oryol region. The
Leningrad and Oryol governments invited RosAgroFond and AgroMIR as consultants to
implement the project. The SRLPP goal – creating enabling opportunities for sustainable
livelihoods in rural Russia, i.e. developing economic coping strategies and enhancing income
generating types of activities that could be applied by rural residents on a sustainable basis – was
in line with the main targets of the Zarafshan Regional Development Initiative. That was why
following the request of the ZRDI beneficiaries, local government and UNDP partners it was

decided to organize a trip to the pilot districts of Russia to study the experience and its
applicability in Tajikistan.
The study tour participants aimed to achieve the following:
      Study effective mechanisms and successful rural development strategies on the example
       of Leningrad region of the Russian Federation (ensuring access to land, credit, social
       capital and other resources);
      Get a better understanding of the role played by rural development institutions, study
       their operational experience that enabled them to ensure their own sustainability and
       develop effective interaction mechanisms with local and regional authorities;
      Study the experience of identifying income-generating types of activities that can be
       exploited by rural residents on a sustainable basis and look at successful examples of
       diversification of rural economy;
      Study the experience of rural credit co-operation and operations of micro-finance
The study tour proved extremely successful as the participants not only had a chance to virtually
see the mechanisms and rural development schemes in operation (and that was two years after
the project had been completed!), but they also managed to apply some of them in their pilot
districts (e.g., the existing credit scheme was improved, a new scheme was developed to provide
loans to individual borrowers, market integrators learnt how to interact with residents and
authorities, land reform experience was studied, etc.). The participant also established personal
contacts with rural residents of Leningrad region. For Terms of Reference and List of
Participants see Appendix and for Study Tour Programme see Appendix Study visit of pilot Jamoats beneficiaries to Muminabad to study the experience of
Local Development Centres Muminabad – Community Development Project implemented
by Swiss Cooperation Office (Caritas) – November 2005

The visit took place between 7 and 11 November 2005 following the invitation of the Swiss
Cooperation Office (Caritas). The return visit for Muminabad representatives is scheduled for
April – May 2006.
The Local Development Committee (LDC) of Muminabad district was set up in April 2001 by
Caritas Switzerland. The LDC represents all stakeholders, including local government, civil
society and international organizations active in Muminabad district. Providing a forum for
decision-making at district level, the LDC treats all its stakeholders equally. The LDC comprises
7 local government representatives and 14 members representing civil society and donor
organizations active in Muminabad district. The LDC Chairman is the head of Muminabad
district. The LDC collects proposals from residents, local government and NGOs and decides
what project to support using the funds available. All the LDC‟s decisions are made in a
transparent way and are based on reliable information about the district and on whether the
project under consideration is really important for the district development. The LDC monthly
meetings are attended by all the stakeholders – local government, donor organizations and civil
society – who express their opinions and proposals freely. The decisions are made by a majority
Another focus of the LDC activities is attracting donor funds to foster Muminabad district
development. As of the date of the visit the project in partnership with the LDC had implemented
several infrastructure support projects, four of which the ZRDI beneficiaries had a chance to
study. For details of the projects and work done see Appendix that also includes more
detailed information on the study visit and the list of participants.
On the whole the study tour participants found the tour useful and noted the need for further
experience sharing within the country. What they particularly liked about the Caritas Community
Development Project was the fact that focusing on rehabilitation and construction of new social
infrastructure objects the project makes the most of the participatory approach involving all
stakeholders (rural residents, Hukumat, local government and international organizations active
in the district) in identifying development priorities. Another point that the tour participants
found important was the fact that while the project is being implemented by Caritas specialists its
monitoring is carried out with participation of all stakeholders.
The participants studied the work of Kishlak Committees which they thought they should apply
on their territories. Kishlak Committees have their own Charters and funds that are formed from
monthly contributions of the members. Each Committee has a fund of over 2,000 – 2,500
somoni that is distributed among the members when necessary and following the decision of the
general meeting. At this stage not all households living in a kishlak are members of the Kishlak
Committee. There are plans, however, to involve every resident into this scheme. A similar
system exists in Penjikent and Ayni districts but it operates at makhalla level only and is not
sufficiently developed. The study tour participants decided that the above system could be
introduced in the pilot Jamoats through the JRCs.
The participants also spoke highly of the Muminabad Local Development Committee (see
above). UNDP are planning to set up a similar committee in Penjikent district.
The participants noted that the ZRDI and Caritas Local Development Centres Muminabad –
Community Development Project have similar values and aim at poverty reduction.

4. Local rural (social) infrastructure rehabilitation

Low level of economic development and consequent local budgets constraints hamper due
maintenance and repair of social infrastructure objects. For the Tajik pilot territories the situation
is further aggravated by their location in the upland where natural disasters are quite frequent.
Rural residents try to address the social infrastructure needs themselves; however their low
income makes it impossible to solve the problem.
Unfortunately the information on funds spent on rehabilitation of this or that infrastructure object
as well as on district budget implementation has not been officially published. The table below
gives some data on 2004 budget of Penjikent district provided by respective local services:

    Article of                Budgeted, somoni                           Actually spent, somoni
   expenditure      district     Rural     Kolkhozchiyon      district      Rural area Kolkhozchiyon
                                  area         Jamoat                       (Jamoats)         Jamoat
 Public Health        690,172    295,395          48,385       696,601        292,572           35,899
 Education          4,251,380 3,741,214           37,554     4,220,893      3,714,385           58,685
 Agriculture           21,800         n/a             n/a       14,802             n/a              n/a
 Administration       276,100         n/a          9,747       453,991             n/a           5,038
 District Total     5,239,452                                5,386,287

Together the spendings on public health, education, agriculture and administration showed an
increase of 2.8% on the budgeted amount. However the amount actually spent on public health
and education was only just under 1% higher than planned while the total spent on
administration exceeded the budgeted amount by 64.4%. Support to agriculture in 2004 turned

out to be 32.1% less than promised despite the fact that the budgeted amount had already been
insignificant (as little as 0.4% of the above total budget).
Regrettably, the money allocated for public health in the pilot Jamoats was insufficient. For
instance, 6,150 somoni ($2,057) were budgeted for procurement of drugs (medical supplies)
whereas the drugs actually purchased were worth 4,000 somoni ($1,338) – too little for a district
with the population exceeding 200,000 people. This is even more disappointing if we look at the
overall expenditures on public health that in total amounted to a rather large amount of 696,601
somoni ($232977).
The table below gives some data on funds budgeted and actually spent on public health in
Penjikent district in 2004:
         Article of expenditure              Budgeted, somoni             Actually spent, somoni
   Doctors‟ salaries                                        47,022                            47,022
   Drugs (medical supplies)                                   6,150                            4,000
   Equipment                                                      0                                0
   Medical treatment of disabled,                             2,500                            1,500
   including disabled children                                1,150                                0
   Total                                                    56,822                            51,022

4.1. State of local infrastructure and sources of funding
Penjikent district. The economic decline of the 1990s had a significant impact on the state of
district infrastructure.
In Penjikent district, there are 135 schools, 13 pre-schools, 1 boarding house for aged people (56
people) and mentally handicapped children (26 children). There are 104 medial care institutions
(including 24 hospitals with 1,305 bed capacity), and 77 enterprises providing consumer
services. The table below shows the availability of the above social infrastructure objects in rural
areas by Jamoat:
        Jamoat                Schools             Pre-schools         Medial care      Enterprises
                                                                      institutions      providing
Kolkhozchiyon                            9                      2                10               14
Amondara                                 6                      0                 9                7
Sujina                                   5                      0                 4                2
Shing                                   25                      0                11                2
Khurmi                                   8                      0                 6                2
Khalifa Khasan                           8                      0                 7                3
Yori                                    11                      1                 5                7
Voru                                    13                      0                 6                1
Moguien                                 11                      1                 7                2
Sarazm                                  13                      0                10                6
Chinor                                   3                      0                 4                1
Rudaki                                  10                      0                 8                7
Kosatarosh                              12                      0                 9                2
Farob                                    5                      0                 2                1

Practically all educational institutions need repairing with half of them requiring major repairs.
There is no heating whatsoever in a number of schools. The available equipment, furniture, text
books, and school library stock are outdated and in shortage.
There are 26 rural public libraries in the district, many of which are no longer functioning. The
ones that are functioning have not been restocked for a long time.
Medical care services for rural residents are provided in hospitals, rural outpatient clinics and
medical points. Most medical care institutions need major repairs. Practically all drugs are to be
purchased by patients themselves despite the current state programme designed to supply free
drugs to disabled, elderly people and infants under three. The equipment is extremely worn out.
Almost all the enterprises providing consumer services are private. Many of their premises need
repairing. According to the Hukumat decision, the owners of the above facilities are obliged to
carry out the repairs. It has also been decided to turn teahouses that are supported by rural
consumer societies (co-operatives), about 160 in number, into leisure centres. As a result some
rural communities have repaired their teahouses at their own expense.
Drinking and irrigation water in Penjikent district is in sufficient availability. There are 116
water diversion facilities. However the existing water supply systems are worn out and require
significant investment into their rehabilitation. There are problems with drinking water supply in
all the Jamoats and even in the town of Penjikent itself. These problems are most acute in a
number of kishlaks of Jamoats of Sarazm, Voru, Yori, and Chinor. In Chinor bad water has been
the cause of annual breakouts of typhoid and other diseases. In Farob Jamoat, the access to
drinking water has been improved in the course of a project implemented by German Agro
Action. However the residents believe that the above project has reduced the acuteness of the
problem rather than solved it altogether. To date, German Agro Action that has been working in
Penjikent district for already 8 years has completed a number of projects aimed at securing
access of rural residents to drinking water, covering Jamoats of Amondara, Khalifa Khasan,
Khurmi, Rudaki, Chinor, Kolkhozchiyon.
In 2004, the Government of the Tajik Republic allocated 100,000 somoni for the reconstruction
of Penjikent water supply system. The reconstruction is currently under way.
Shortage of irrigation water is most acute in Jamoats of Sarazm, Shing, Moguien, Khurmi,
Khalifa Khasan, and Voru. In Khalifa Khasan, Chinor and Sarazm Jamoats the access to
irrigation water could have been improved after the Canal named after Kh. Khasan was to be put
into operation (scheduled for August 2005). However this did not happen due to June 2005
mudflows. In October 2003, the Tajikistan Ministry of Water Resources allocated 140,000
somoni for banks protection and cleaning work, part of which was completed. However the
overflow of the Zerafshan River in the summer of 2005 destroyed what had already been
constructed. The most damage was caused to Shing, Pandzhrut and Garibak kishlaks – over 500
houses were washed down, canals and bridges destroyed, crops and livestock lost, human losses
were also reported.
State baths are no longer operational, while the newly opening private baths do not always
conform to sanitary standards. The baths are still in shortage both in urban and rural areas.
Most vehicles ensuring transport connection between the district centre and the largest kishlaks
are privately run. The district roads and bridges have not been repaired for the last 12-15 years.
Some road repair work started this year. The roads in the Jamoats of Farob, Moguiyon, Shing,
and Voru (due to logjams and rockfalls) are in particular need of repair. International projects
have assisted in building bridges in the Jamoats of Rudaki, Amondara, and Moguiyon. The
recent years have seen particularly expanded transport fleet, mainly due to privately own
The district centre residents enjoy installed gas supply system which does not extend to cover
rural areas (with the exception of Sarazm and Chinor Jamoats). Electricity is supplied through
both central electricity supply system and local mini power generation stations. In winter time
(from 10 October to 25 April) the electricity is supplied to the houses only for several hours in
most kishlaks.
In recent years the communications sector in the district has been developing mainly due to the
efforts of private companies. About 3,000 district residents have mobile telephones. Since the

beginning of 2004, twenty five telephone points where one can make local, long-distance and
international calls have been opened in the district. In 2005, there were already three operating
cellular companies in the district – MLT, Indigo-Somonkom and Vavilon-T.
In some kishlaks roads repair and construction is supported by various international and local
donor funded rural development projects.
The table below demonstrates the state of infrastructure in the pilot Jamoat of Penjikent district.

                        Social infrastructure in Kolkhozchiyon Jamoat
                                                                                       Leisure centres
  Kishlak         Hospitals         Kindergartens                 Schools
                                                                                         and libraries
Gusar         2 ha of land have    2 kindergartens,     There are 2 secondary There are a
              been allocated to    one of which has     schools, 1 college. The Leisure Centre
              the hospital from    been      repaired   average salary of a teacher in (local club) and
              the     Hokimyat     using the funds of   2004 was $10.                  a library in
              Land Fund. The       the ZRDI Project     There is a Youth Centre.       need of repair.
              farming revenues     social      grants
              are used for         scheme.
              repairs       and
Novobod       There     is     a   There is 1 but it 2 schools (Tajik and Uzbek).      Leisure Centre
              hospital but it      is      privately The Uzbek school has been         in need of
              needs repairing.     owned.            repaired using the funds of       repair.
                                                     the ZRDI Project social
                                                     grants scheme.
Kumok         None                 None              School has been partly            None
                                                     repaired using the funds of
                                                     the ZRDI Project social
                                                     grants      scheme,     school
                                                     furniture is being made.
Varzikanda    There     is     a   None              Wooden school building            Leisure Centre
              medical point.                         constructed in 1950, partly       in         poor
                                                     repaired using the funds of       condition.
                                                     the ZRDI Project social
                                                     grants scheme.
Mazor         There     is     a   None              1 school, fencing around the      Leisure Centre
              medical point.                         school is being currently         and teahouse in
                                                     erected using the funds of the    need of repair.
                                                     ZRDI Project social grants
Zavron        There     is     a   None              Premises to accommodate a         None
              medical point.                         primary school have been
                                                     created using the funds of the
                                                     ZRDI Project social grants
Bakhor        There     is     a   None              1 school. A new school            None
              medical point.                         building is being constructed
                                                     under NSIFT project.

In Kolkhozchiyon Jamoat there are a number of privatised social infrastructure objects – for
instance, baths in Gusar kishlak and a Leisure Centre in Novobod kishlak – that are not yet
functioning. There are privately owned hairdressers‟ and sewing workshops that operate from
owners‟ homes. All shops are private.
There are several mosques (nearly in every kishlak) which construction has been funded by the
communities. At the same time schools and kindergartens are repaired only with assistance of
international projects. Until 2005, no budget funds had been allocated for this purpose, nor for
buying new furniture or textbooks.

Ayni district. There are 69 schools in the district (31 of them equipped with computers), 1 pre-
school, 46 medical care institutions (including 8 hospitals with 470 bed capacity), 27 enterprises
providing consumer services. The Telecom-technology company has started to offer a larger
variety of communications services.
The table below shows the availability of the above social infrastructure objects in rural areas by

        Jamoat                Schools           Pre-schools        Medial care       Enterprises
                                                                   institutions       providing
Urmetan                          8                   0                   7                 7
Rarz                             10                  0                   9                 2
Anzob                            8                   0                   7                 3
Fon-Daryo                        12                  0                   5                 0
Dar-Dar                          6                   0                   6                 4
Shamtuch                         5                   0                   4                 8
Ayni                             11                  0                  10                11
Zarafshon                        2                   1                   1                 1

Practically all educational institutions need repairing with over half of them requiring major
repairs. There is no heating in some schools. The available equipment, furniture, text books, and
school library stock are outdated and in shortage.
The Asian Development Bank in partnership with the Japanese Embassy started a programme of
major repairs of schools. To date 3 schools have been repaired under the above programme
(school №1 and №2 in Ayni town and school №5 in Darg kishlak). An American organization
“Save the Children” has been assisting schools in setting up school run greenhouses, 8 schools
have already installed greenhouses for growing citruses and vegetables. Also the above
organization provides schools with visual teaching aids, means of hygiene; junior schoolchildren
get hot meals.
The Internet Access and Training Programme has been supporting school computerization
process. Four rural schools have already been equipped with computers, one of the schools in
Ayni town has benefited the most from the programme and has 6 computers with free access to
There are 1,765 teachers in the district, 1,343 of whom have higher education. The average
salary of a teacher in 2004 was 32 somoni. A teacher cannot get more than 1.5 salaries (45
somoni) in one school. The Ministry of Public Education allocates 2 somoni a month to children
from lower-income families.

Medical care services for rural residents are provided in hospitals and rural medical points. Most
medical care institutions need major repairs. Practically all drugs are to be purchased by patients
themselves. The equipment is extremely worn out. Hospitals do not have sufficient ambulances,
there are only 6 battered and constantly requiring repairs ambulances for 8 hospitals. The
shortage of patient transportation facilities has led to the increased number of childbirth at home
and consequently to a larger number of cases of maternal and infant mortality and morbidity
further leading to child disability.
There are 82 doctors in the district. A doctor‟s salary is 17.6 somoni (as of 01.01.05). In 2004, an
average doctor could earn 46 somoni (having more than one job), an average nurse and medical
aid – 38 somoni. There are 242 nurses and 122 medical aids in the district.
The programme “Save the Children” has built 2 medical points in the Jamoats of Ayni and Rarz.
Besides, the programme provided training in family planning, infectious disease prevention,
thyroid gland problem, and infant diarrhoea. Medical services on call have been provided in
several kishlaks, new lavatories and wash stands have been installed in a number of schools.
Drinking and irrigation water in Ayni district is in shortage. The existing water supply systems
are worn out and require significant investment into their rehabilitation. German Agro Action has
been implementing projects aiming at securing access of the population to drinking and irrigation
water. With support from the Asian Development Bank the following facilities have been
repaired: an outpatient clinic and a maternity hospital in Urmetan, and a hospital in Rarz; 3
Health Centres have been opened to promote a healthy way of life.
In the district, there are 409 persons with childhood disability receiving a pension. Of them 117
are under 16. The pension of people with severe disability is 12 somoni, with moderate disability
9.5 somoni (since 01.01.05). Most disabled children do not receive any pension because they
cannot afford to have a medical examination in the district centre.
The table below demonstrates the state of infrastructure in the pilot Jamoat of Ayni district.
                                  Social infrastructure in Rarz Jamoat
                   Hospitals and
    Kishlak                                   Schools           Leisure centres          Libraries
                   medical points
  Rarz          There is 1 hospital     3 schools             1 Leisure Centre in   1 library in a very
                in need of repair.                            need of repair        old building, no re-
                Average salary of
                medical staff is 13
                somoni a month.
  Fatmev        1 medical point         1 old school in       1 Leisure Centre      None
                                        need of repair
  Ispagn        1 medical point         1 junior secondary    None                  None
                                        school (incomplete
                                        education) repaired
                                        using the funds of
                                        the ZRDI Project
                                        social grants
  Guzari Bod    1 medical point         1 secondary school    None                  None
                                        repaired using the
                                        funds of the ZRDI
                                        Project social
                                        grants scheme

  Pokhut        1 feldscher          2 schools in need     1 Leisure Centre in   1 small library
                (paramedic) point    of repair             need of repair
  Sairon        None                 1 school in need of   A small hall in the   None
                                     repair, textbooks     school building is
                                     and furniture         used as a Leisure
  Fotmovud      1 medical point,     1 school in need of   1 Leisure Centre in   1 library
                repaired using the   repair                poor condition
                funds of the ZRDI
                Project social
                grants scheme
  Shakhi        None                 Primary school in a   None                  None
  Safed                              small building,
                                     repaired using the
                                     funds of the ZRDI
                                     Project social
                                     grants scheme
  Shavatki      1 hospital and 1     1 school in need of   1 Leisure Centre in   1 library
  Bolo          medical point,       repair, a new         need of repair
                partly repaired      building under
                using the funds of   construction
                the ZRDI Project
                social grants
                scheme. Further
                repairs necessary.
  Shavatki      1 medical point in   1 secondary school,   1 very old Leisure    1 library
  Poyon         need of repair       repaired using the    Centre in need of
                                     funds of the ZRDI     repair
                                     Project social
                                     grants scheme

In Rarz Jamoat, there are 10 schools (including 3 schools providing incomplete secondary
education and 1 primary school), 2 hospitals, 5 medical points, libraries, teahouses and Leisure
The social sphere objects are on balance sheets of the following organizations and agencies:
   1. Teahouses in kishlaks of Rarz, Fatmev, Pokhut, Sairon, Shavatki Bolo, Shavatki Poyon
      belong to the system of rural consumer societies (co-operatives);
   2. Leisure Centres and libraries are under the district Hukumat Department of Culture;
   3. Hospitals and medical points are under the Tajik Health Care Ministry;
   4. Schools are under the Department of Public Education;
   5. Shops and some teahouses are privately owned;
   6. Post offices (available only in Rarz and Pokhut kishlaks) are under the Communications
      Ministry (in need of repair);
   7. Call offices (open only in Fatmev, Rarz and Pokhut kishlaks) are under the state-owned
      company Tajiktelecom.
Of all the Jamoat schools only one (in the centre of Rarz kishlak) is in good condition. The
school received significant technical assistance from the American organization “Save the
Children”. It also accommodates a well-equipped dental room. The schools located in Fatmev,
Guzari Bod, Ispagn and Sairon kishlaks are in the poorest condition. In Shakhi Safed kishlak the
school resides in a private house although the number of schoolchildren is fairly large (300
Not a single kindergarten has survived the time in the Jamoat.
Practically none of the Leisure Centres work due to the poor condition of the premises. Libraries
have not been repaired for 15 years, nor have their stocks been ever replenished, hence a sharp
drop in the number of people using their services. Many of these social sphere objects are in fact
exploited by entrepreneurs who, however, do not do any repairs.
Despite the available facilities for maintaining sanitary standards (2 district hospitals, 2 rural
outpatient clinics, 5 medical points) outbreaks of skin rashes are quite frequent, there are many
cases of childbirth at home, and tuberculosis is common among residents. In summer time
children often suffer from diarrhoea. Other common diseases include thyroid gland problem,
anaemia among women, including the pregnant ones, helminthic disease, and seasonal diarrhoea.
None of the kishlaks has public baths. Sanitation inspection and control are non-existent
throughout the district.
A medical point build by “Save the Children” in the remotest kishlak of Fatmovut has provided
its residents with an access to at least a minimum of medical services. The medical point has
been repaired and equipped with new furniture using the funds of the ZRDI Project social grants
Despite the wide spread poverty and decaying social infrastructure the Jamoat boasts 15 mosques
which construction has been community funded. The buildings are solid and their very good
quality shows substantial investment. Funds are currently being raised for the construction of
several more mosques.
Electricity supply facilities are available in all the kishlaks, however, from October to May,
electricity is only accessible for 3 hours a day.
There are privately-owned hairdressers‟ and shops selling staple goods almost in every kishlak.
The goods supplies are brought from the district centre (Ayni) or from Dar-Dar kishlak that is a
wholesale trading centre. Enterprises providing a range of consumer services are non-existent in
the Jamoat.
There are shoe repair and blacksmith‟s points in Fatmev and Shavatki Bolo kishlaks.
There is a two-storey hotel in Rarz kishlak that is in need of minor repairs.

4.2. Grants to support social infrastructure development of kishlaks
The low level of economic development and consequent local budgets constraints hamper due
maintenance and repair of social infrastructure objects. For the Tajik pilot territories the situation
is further aggravated by their location in the upland where natural disasters are quite frequent.
Rural residents try to address the social infrastructure needs themselves; however their low
income makes it impossible to solve the problem.
To ensure a larger involvement of the population in social infrastructure rehabilitation the Project
has been implementing a grant scheme aimed at funding community based infrastructure
projects. Two tenders have been held among applicants for grants.
Prior to the tenders the Project had been working with rural residents using PRA techniques. In
February, a meeting was held in every kishlak of the pilot Jamoats (18 in all with the total
participants of over 1,600 people). The meetings allowed the communities to identify problems
of each kishlak and set tentative priorities. In March – April another 16 meetings were held
(about 400 participants in Kolkhozchiyon and 700 – in Rarz). These meetings considered and

analysed in greater detail the problems identified previously (this time a matrix method using
beans was applied). This method helped to identify the core problems which, if settled
successfully, would facilitate the solution of a whole bunch of problems. The skills and
knowledge received at the above meetings were further improved at subsequent trainings
conducted by NGO “NAU” in April-May and by ZRDI specialists in June. The residents applied
this knowledge to develop their project ideas (over 20 project ideas in Rarz and over 20 – in
Kolkhozchiyon Jamoat) to take part in ZRDI supported tenders. In addition the residents started
to write proposals for tenders conducted by other organizations (NSIFT, ADB, Business Women
Association, IREX).
In partnership with UNDP the Project developed the format of a project proposal at community
level. The JRC members disseminated the format and clarifications on how to fill it out in all the
kishlaks (Appendix 4.1). Then the Project and UNDP agreed on the proposals selection criteria
(Appendix 4.2), the main among them being:
    social value of the idea;
    expected economic effect following the project implementation;
    involvement of population;
    participation of population in running and maintaining the infrastructure object after the
     project completion.
The above criteria were discussed with JRC members. Then, again in partnership with UNDP, a
Regulation to evaluate and approve project proposals was developed (Appendix 4.3). In
conformity with the Regulation (although with some deviations and infringements on the part of
UNDP Khujand AO staff who, being responsible for developing the software for processing and
evaluating the applications, produced a software that did not meet all the agreed criteria) the
evaluation of project ideas was carried out and the results of the first tender summed up.
This tender considered four proposals for Kolkhozchiyon Jamoat and seven proposals for Rarz
   1. Restoration of the water supply system in Gusar kishlak
   2. Restoration of the water supply system in Navobod kishlak
   3. Arrangements for providing Mazor kishlak with irrigation water
   4. Restoration of the water supply system in Kumok kishlak.
   5. Restoration of the water supply system in Sairon and Pokhut kishlaks
   6. Restoration of the water supply system in Rarz kishlak
   7. Bridge construction in Fatmev kishlak
   8. Pedestrian bridge construction in Shavatki Bolo kishlak
   9. Restoration of the water supply system in Shavatki Poyon kishlak
   10. Restoration of the water supply system in Fatmovut kishlak
   11. Arrangements for providing irrigation water to 30 ha of land in Guzari Bod kishlak.
The tender resulted in awarding the highest points to 1 project for Kolkhozchiyon (from kishlak
Gusar) and 2 projects for Rarz – Restoration of the water supply system in Fatmovut kishlak and
Bridge construction in Fatmev kishlak.
Following the above the UNDP team conducted a tender for the projects implementation work.
The Limited Liability Company “Zumrad” was awarded the contract for the restoration of the
water supply system in Gusar and the Open Joint Stock Company “Falguar” – for bridge

construction in Fatmev. The tender for the restoration of the water supply system in Fatmovut
was then cancelled and the implementation contract was given to the local community. So far the
work in Fatmovut has been completed while in Gusar and Fatmev it is still under way. UNDP
Ayni office staff together with the local JRC members are closely monitoring the completion of
the construction.
The mechanism used for this tender was designed to meet the interests of the majority of the
population and was not conductive to addressing specific problems of the most vulnerable
groups of residents who were much fewer in number (or of other minorities). Furthermore,
concentration of money to fund one or two big projects leads to certain disappointment among
residents of those kishlaks that did not benefit from the above projects. Moreover a large amount
of money available for construction work may also lure bidders into cheating to get the
implementation contract. For this reason a subsequent tender of project ideas was designed in
such a way that was to enable each kishlak to implement a project. A relevant application form
for the new tender was developed and disseminated (Appendix 4.4); and selection and evaluation
criteria agreed (Appendix 4.5). The main criteria for the second tender included targeting to
improve life conditions of the most vulnerable and showing certain innovation.
The Regulation on the Tender Commission developed specifically for the second tender
(Appendix 4.6) took into account lessons learnt from the previous experience. In conformity with
the above Regulation the applicants (authors of project proposals) had the right to attend the final
session of the commission when the proposals were considered and evaluated, primarily, to be
available for answering questions of the Tender Commission members. In addition, each
commission member publicly gave the scoring to each proposal that was then transferred right
from the evaluation list into the computer (Appendix 4.7).
The table that follows lists the grant scheme supported projects completed or under
implementation as of beginning of December 2005:

                                         Status of projects implemented under social grant scheme. Kolkhozchiyon Jamoat.
   Kishlak    Project title and value      Project idea     Planned activities by stage Work       Work actually completed         Including contributions from     Status of completion
                                           developed by               / Funding                                                           the community                (as monitored)
Mazor        Putting up fencing           Davlatov          1. Erecting supports and             1. Erection of supports and      Community effort: erecting        Partly completed:
             around school                Archa – teacher   foundation for the fencing;          foundation for the fencing       supports and foundation using.    60% of the fencing
             2,860 somoni ($900)                            2. Welding, putting up the           completed;                                                         put up.
                                                            fencing.                             2. Welding – partly                                                Reason: the project
                                                                                                 completed                                                          idea designer
                                                                                                                                                                    underestimated the
                                                                                                                                                                    costs of
Varzikanda   Partial repairs of school    Boimurodov        1. Repairing the roof and            1. Roof repaired and walls       Community effort: painting        The project fully
             2,860 somoni ($900)          Rakhmatullo –     covering the walls with metal        covered with metal sheets;       the floors, tables, windows and   completed ahead of
                                          headmaster        sheets;                              2. Interior decoration of        doors.                            schedule.
             (+encouragement grant
                                                            2. Interior decoration of            classrooms completed.                                              Encouragement grant
             of 300 somoni)
                                                            classrooms.                                                                                             provided as per grant
Navobod      Partial repairs of school    Aliev             1. Planking floors in 2              1. Floors planked in 2           Community effort: repairing       The project fully
             2,860 somoni ($900)          Khikmatullo –     classrooms;                          classrooms;                      and planking the floors,          completed, additional
                                          headmaster        2. Planking floors in 3              2. Floors planked in 3           painting the walls.               work carried out.
             (+encouragement grant
                                                            classrooms.                          classrooms.                                                        Encouragement grant
             of 300 somoni)
                                                                                                                                                                    will be provided as
                                                                                                 Additional work to be done:
                                                                                                                                                                    per grant agreement.
                                                                                                 whitewashing, painting
Kumok        Partial repairs of school    Boboeva           1. Repairing the roof and            1. Roof and drainpipes           Community effort: repairing       The project is being
             2,860 somoni ($900)          Muattaroi –       drainpipes;                          repaired;                        the roof and drainpipes.          completed as
                                          school teacher    2. Making school furniture.          2. Some school furniture                                           scheduled.
                                                                                                 made (the rest will be
                                                                                                 completed as scheduled)
Gusar        Partial repairs of           Rashidova         1. Repairing the floors in 3         1. Floor repaired in 3 rooms;    Community effort: repairing       The project fully
             kindergarten 2,870           Gul‟bakhor –      rooms;                               2. Walls painted.                the floors and painting the       completed ahead of
             somoni ($902,5)              kindergarten      2. Painting the walls                                                 walls.                            schedule.
                                                                                                 Additional work done: doors
             (+encouragement grant        director                                                                                                                  Encouragement grant
                                                                                                 installed, furniture repaired,
             of 600 somoni)                                                                                                                                         provided as per grant
                                                                                                 lavatory roof repaired.
                                                                                                                                                                    agreement and used
                                                                                                                                                                    to fund additional

Zavron            Preparing premises to    Masudov         1. Decorating the interior;           1. Interior decoration          Community effort: decorating       The project fully
                  accommodate primary      Faizullo –      2. Purchasing and assembling          completed;                      the interior.                      completed.
                  school                   teacher         school furniture.                     2. School furniture purchased
                  2,860 somoni ($900)                                                            and assembled.
Bakhor            Partial repairs of       Kholov          1. Cleaning storage reservoirs        1. Storage reservoirs cleaned   Community effort: cleaning         The project fully
                  storage reservoirs and   Adbumolik –     (over 10) and installing lathing;     (over 10) and lathing           storage reservoirs.                completed.
                  water pipeline           teacher         2. Repairing 200 m of water           installed ;
                  2,860 somoni ($900)                      pipeline.                             2. 200 m of water pipeline

                  Erecting mud dam and     Khokhlov        1. Erecting mud dam (1 m high,        1. Mud dam erected              Community effort: digging,         The project fully
                  installation of new      Adbumolik –     0.8 m wide, 34 m long)                2. New water pipeline           making walls                       completed.
                  water pipeline           teacher         2. New water pipeline installed       installed
                  2,806 somoni ($882)      Boboev          (510 m long)
                                           Yazdon –
Gusar and the     Mobile medical crew of   Ibrakhimov      1. Purchasing instruments and         1. Instruments and              Community effort: preparing        Stages 1 and 2
remaining         Kolkhozchiyon Jamoat     Azalshokh –     consumable materials for the          consumable materials            premises (cleaning,                completed, stage 3 in
kishlaks of the   4105 somoni ($1290)      hospital head   medical crew‟s operations;            purchased;                      whitewashing, painting when        progress.
Jamoat                                     doctor          2. Visiting all the kishlaks of the   2. All kishlaks of the Jamoat   required) for medical
                                                           Jamoat to examine sick children.      visited and sick children       examination of children in
                                                                                                 examined.                       Gusar and Navobod kishlaks.
                                                           3. If required, issuing formal
                                                           medical opinion to determine a        Stage 3 – in progress.
                                                           disability group.
                  Rural Russian            Ayozova         1. Training teachers from             Stage 1 completed (12           Community effort: preparing        The project is being
                  Language Centre          Salomat –       different kishlaks in methods of      workshops delivered),           premises for conducting            completed as
                  “Subkh” (adaptation of   teacher         teaching Russian to labour            resulting in development of     lessons, making information        scheduled.
                  migrants)                                migrants;                             methodological materials for    stands, selecting literature.
                  3,340 somoni ($1,050)                    2. Teaching Russian to                teaching Russian to labour      The project idea designer and
                                                           prospective labour migrants.          migrants.                       other participant will deliver a
                                                           3. Purchasing a set of office         Stage 2 – in progress.          free course of Russian to
                                                           equipment to be installed in the                                      prospective labour migrants.

                                                Status of projects implemented under social grant scheme. Rarz Jamoat.
  Kishlak       Project title and value        Planned activities by stage Work /               Work actually completed             Including contributions      Status of completion
                                                           Funding                                                                    from the community            (as monitored)
Shavatki       Construction of public      1. Erecting foundation, basement and       1. Foundation, basement and concrete          Community effort:         Stage 1 fully completed,
Bolo           lavatory and cesspit with   concrete walls of the cesspit; doing       walls of the cesspit erected; plasterwork,    erecting the foundation   stage 2 – completed only
               soil intake capacity        plasterwork, whitewashing and roofing;     whitewashing and roofing done;                and basement.             partly.
               attached to hospital        2. Decorating the interior, installing     2. The interior decorated, doors installed.
                                           doors, toilet bowls and sinks.
Shavatki       Partial repairs of school   1. Repairing the roof, cementing the       1. Roof repaired, playground in front of      Community effort:         The project fully
Poyon                                      playground in front of the school,         the school cemented, windows repaired;        repairing the roof,       completed.
                                           repairing windows;                         2. Whitewashing, painting, and covering       cementing the
                                           2. Whitewashing and painting, covering     room floors with linoleum done.               playground in front of
                                           room floors with linoleum.                                                               the school,
                                                                                                                                    whitewashing and
Shakhi Safed   Partial repairs of school   1. Repairing the porch, windows;           1. Porch and windows repaired; doors          Community effort:         The project fully
                                           installing doors; painting the floor;      installed; the floor painted;                 constructing the porch,   completed.
                                           2. Purchasing and assembling new school    2. School furniture purchased and             painting the floor.
                                           furniture.                                 assembled.
Fatmovut       Partial repairs of and      1. Whitewashing, painting, cementing,      1. Whitewashing, painting, cementing,         Community effort:         Stage 1 fully completed,
               equipment for outpatient    and repairing windows;                     and repairing windows done;                   whitewashing, painting.   stage 2 completed partly.
               clinic                      2. Purchasing and installing equipment,    2. Equipment and refrigerator purchased.
                                           furniture, refrigerator.
Pokhut         Partial repairs of          1. Installing 200 m of waterway and        1. 200 m of waterway installed and the        Community effort:         The project fully
               waterway                    whitewashing the waterway house;           waterway house whitewashed;                   installing 400 m of       completed.
                                           2. Installing another 200 m of waterway    2. Another 200 m of waterway installed        waterway.
                                           and cementing the pipe joints, repairing   and the pipe joints cemented, the wells
                                           the wells.                                 repaired.
Sairon         Rehabilitation of bridge    1. Strengthening the bridge supports;      1. Bridge supports strengthened;              Community effort:         The project fully
               destroyed by mudflow        2. Final rehabilitation of the bridge.     2. Final rehabilitation of the bridge         doing repair work of 3    completed. Three more
                                                                                      completed.                                    pedestrian bridges and    bridged additionally
                                                                                                                                    1 road bridge.            repaired.
                                                                                      3 more bridges repaired.
Rarz           Preparing premises and      1. Preparing premises, whitewashing,       1. Premises prepared, whitewashing,           The project idea          The project fully
               equipping veterinary        painting, installation of window bar       painting, installation of window bar          designer did the major    completed.
               drugstore                   screens;                                   screens done;                                 work himself.

                                         2. Purchasing and assembling the             2. Equipment purchased and assembled.
Ispagn       Partial repairs of school   1. Repairing the roof, cementing             1. The roof repaired, pathways cemented;   Community effort:       The project fully
                                         pathways;                                    2. Floors covered with linoleum,           refurbishment work in   completed.
                                         2. Covering floors with linoleum,            whitewashing and painting done,            the school.
                                         whitewashing, painting, repairing            windows repaired.
Fatmev       Partial repairs of tea-     1. Repairing the floor, doing plasterwork;   1. The floor repaired, plasterwork done;   Community effort:       The project fully
             house                       2. Whitewashing, painting, repairing         2. Whitewashing and painting done,         refurbishment work in   completed.
                                         windows, installing ovens and pipes.         windows repaired, ovens and pipes          the tea-house.
Guzari Bod   Partial repairs of school   1. Repairing the roof, cementing             1. The roof repaired, pathways cemented;   Community effort:       The project fully
                                         pathways;                                    2. Floors covered with linoleum,           refurbishment work in   completed.
                                         2. Covering floors with linoleum,            whitewashing and painting done,            the school.
                                         whitewashing, painting, repairing            windows repaired.

The second tender resulted in awarding the highest points to two projects – Mobile Medical
Crew of Kolkhozchiyon Jamoat and Rural Russian Language Centre “Subkh”. Both project
ideas demonstrated innovation in addressing current rural development problems and,
therefore, deserve a more detailed description.
Mobile medical crew. Full rehabilitation of health care institutions that used to function under
the former Soviet Union is rather expensive and hardly feasible in the conditions of a transit
economy. At the same time the budget funds allocated by the Tajik government for health care
and social protection have been recently growing in volume. This opens further opportunities
for introducing new mechanisms to enhance access of most vulnerable groups of population to
medical services. Mobile medical crews can become one of such mechanisms that facilitate
access of the most vulnerable to medical services and social protection resources.
The ZRDI Project has tested a new for the Republic of Tajikistan approach to improving access
to medical services and social protection resources by setting up a Mobile Medical Crew
(MMC) at Jamoat level. The following several reasons justified the new approach:
   1. Health of rural residents, particularly of children, is a matter of serious concern.
      Regular medical check-ups are not carried out in rural areas. NGOs working in rural
      areas report increased number of rural residents with disabilities, including children,
      particularly due a growing number of childbirth at home and subsequent birth injuries.
   2. To access medical services and get a medical opinion statement determining the
      disability group (when appropriate) rural residents have to make numerous trips to as
      far as the district centre which is for most of them unaffordable.
   3. A significant number of qualified doctors and medical staff as well as some material
      and technical resources are still available within some district centres and sometimes
      even in Jamoats. This can be used to set up mobile medical crews making the
      organization of such work easier and cheaper.
The objectives of the Mobile Medical Crew of Kolkhozchiyon Jamoat include:
   1. Carrying out regular medical check-ups of sick children in the kishlaks (1-2 times a
   2. Drawing up medical opinion statements determining the disability group (when
   3. Collecting the necessary documents from rural residents to confirm their eligibility to a
      disability pension to be further processed by social protection departments.
As a result of regular (1-2 times a year as proposed) visits undertaken by a mobile medical
crew to all the kishlaks of the Jamoat the access of the most vulnerable groups of population to
health care services and social protection resources will improve. Children with disabilities will
be provided with medical opinion statements on their disability without having to travel to the
district centre with their parents. Based on this statement, a specialist of the social protection
department working as a member of the mobile medical crew helps the residents on the spot to
formalise the necessary document to be entitled to a disability pension.
The majority of rural residents do not regard the problems of the disabled as the most acute
problems in their kishlaks, although they do mention them among others. The folk-belief that
explains various permanent injuries and diseases by God‟s judgment for sins committed also
impedes open discussion of the problems of the disabled. That was why the above project idea
could not get high scoring during the first tender.
Mobile Medical Crew composition:
   1. Specialist of the district social protection department who makes sure the documents
      for getting a disability pension are in good order
   2. Driver
   3. Laboratory technician and 2 nurses
   4. 5 doctors
The official number of people getting disability allowances (pensions) for their children in
Kolkhozchiyon Jamoat is 29. According to the records of medical workers and public
organizations the actual number of children with disabilities is 231. This list had been compiled
as a result of the feasibility study for the medical crew project. To date, the crew have
practically completed the examination of the kishlaks children. In addition to the ones
mentioned in the list medical examination was provided to other patients – over 250 in total.
Specialists of the social protection department are going to consider the documents prepared by
the doctors in the near future to authorize payment of disability allowances. The Mobile
Medical Crew project will provide the information on the costs of the tested approach to
improved access of rural children with disabilities to health care services and social protection
resources. The cost of the project per se amounted to approximately $1,290.
Rural Russian Language Centre. Many residents hope to get a job in Russia however they
cannot speak Russian well. The number of Russian lessons at schools was cut and many
Russian language teachers left Tajikistan. In order to find a job prospective labour migrants not
only need to speak Russian but also to know the laws and rules regulating their stay in the
Russian Federation. This will make them aware of their rights and enable them to protect these
rights. At present every third able-bodied male resident of Kolkhozchiyon Jamoat is working in
Russia and many more are planning to go there.
During stage 1 of the Project rural teachers were trained in methods of teaching Russian to
labour migrants (12 workshops). To date, a group of senior schoolchildren has been formed
who will get free lessons from the author of the project idea who will also involve other rural
teachers in the teaching process. The first lessons have already been given. The cost of the
Rural Russian Language Centre project amounted to $1,050.

4.3 Social adaptation of women
A great majority of male residents have migrated to Russia and other countries or left for other
towns within the country searching for jobs. The rural women that have been left behind are
going through tremendous difficulties related to housekeeping and handling their often hostile
mothers-in-law, all this resulting in augmented psychological tension and increased number of
suicides. The ZRDI Project, therefore, put special emphasis on gender issues.
In total the ZRDI Project has facilitated over 30 meetings for rural residents of different
kishlaks. The participants discussed such issues as access to land, health care and education.
The first meetings were mostly attended by men. Only is some kishlaks (Gusar, Kumok,
Bakhor, Rarz and Ispagn) a small number of women (from 3 to 8) came to take part.
Subsequent meetings that were organized as workshops with lawyers, doctors and NGO
representatives invited as speakers demonstrated an increase in women-attendants whose
number reached 60-70% of the total attendees.
Having received new information the women showed interest in the new opportunities. Rarz
kishlak residents travelled to Penjikent to be trained in sewing. This has never happened under
any other project before. The fact of travelling itself was already an achievement as local
traditions do not encourage women to leave their homes even for several days. These traditions
are particularly strong in remote kishlaks, such as Rarz. However women started to gradually
develop a feeling of confidence.

The Project has trained 5 groups in total (over 50 women). One of the women opened a shop in
Gusar kishlak, having created jobs for some other women. Other women (16 in total) started to
sell their self-made clothing items, the rest are sewing for their own household needs.
The Project supported workshops and meetings facilitated the creation of women‟s clubs (2
clubs in Rarz and 2 in Kolkhozchiyon Jamoats). The meetings held in such clubs allowed the
women to discuss issues that worried them most, such as infant care, family law, and disease
Kolkhozchiyon women‟s club members travelled to Rarz to share their experience with their
counterparts in Rarz women‟s club.
Pokhut kishlak women succeeded in persuading their husbands to help them register an NGO
“Khurshed” that aimed at raising awareness among women of various issues, helping them in
protecting their own rights, and providing them with what training available. The NGO leader
is Amina Rajabova. “Khurshed” have conducted a campaign providing clarifications on
general legal issues to women.
Rarz Jamoat women‟s club has held 6 meetings where, among other issues, the women
discussed how to formally apply for a disability allowance (pension) and where and how they
could improve their education. These issues provoked great interest and the women have been
asking to help them organize further more detailed meetings on these subjects. As a result of
these meetings and following lengthy discussions with relatives and teachers two women from
Rarz kishlak joined a correspondence department of the Khujand University – a unique
experience for this area as the women have 4 children each. The Project had to use a lot of
persuasion to make it happen as the husbands and mothers-in-law were very much against this
initiative. S. Nozimova and M.Boboeva are currently taking their first term exams.
The women have also improved their access to micro-credit. While only 45 women took loans
disbursed under the first tranche, their current number has reached 191, including Navobod
women‟s group who received training in sewing and bought 2 sewing machines. Having
worked from home for some time five women are currently planning to get together and set up
a sewing workshop. They have already found premises at the local school and will teach
schoolgirls to sew as rental payment. The Project specialists are helping them develop the
necessary business plans.
Information stands are regularly updated to meet the current need of the women in information
on entrepreneurship, Tajik laws and taxation. The women have also started to show great
interest in reading books and magazines. Now the small libraries organized within the
women‟s clubs are visited not only by teachers but by housewives as well.
Here are some more examples to conclude the description of the Project‟s effort to address
gender issues. The remotest kishlak of the pilot Rarz Jamoat is Sairon. Sairon women did not
choose to come to the first meetings of the club. However later they became the most active
participants of all the workshops. When mudflow prevented their group from travelling to
Penjikent for training in sewing they persuaded their husbands to apply to the ZRDI Project for
support and the training did take place.
Women have also shown a more active position with regard to the land reform than their
husbands who found it awesome to formally leave a collectively-owned dekhan farm. However
giving way to their wives‟ insistence they finally submitted their applications. Fifteen women
formalized in their own name a land share in the course of the Marguidar state-owned farm
reorganization, showing increased ability to act and make decisions.
In the pilot Jamoats women do their own farming to grow crops. They are active participants of
workshops devoted to agriculture and rational use of land resources.

The women have a lot of ideas about how to address youth problems. They were the ones who
identified the problem of early marriages and are now working hard to persuade parents to stop
giving their daughters away in marriage at the age of 15-16. To achieve this, the women are
talking to parents and convene makhalla council meetings.

5. Building linkages between practice and policy at local
and government levels. Key recommendations to authorities
5.1. Proposed improvements to legislation to facilitate poverty alleviation
5.1.1. Land related legislation
To simplify the procedure and reduce the waiting time for a land parcel to be allocated for
dekhan family farming it is recommended that the following measures be endorsed:
   1. The Land Code of the Republic of Tajikistan and the Law “On Dekhan Family Farm”
      should stipulate a procedure for holding a meeting of members having a joint right to
      use a land parcel to identify the location of a land plot against the land share of the
      exiting member. In addition, the procedure should also determine the time within which
      such a decision should be made to avoid the delays, described by rural residents during
      Project supported information meetings, explained by lack of the farm head‟s
      motivation to hold such meetings.
   2. The provision according to which the Jamoat is to submit to the Hukumat their request
      to allocate a land parcel for dekhan farming, should be excluded from Article 8 of the
      Tajik Land Code, as the Jamoat in no case has the right to reject the resident‟s
      application for a land plot.
   3. The Tajik Land Committee should design an information letter for circulation among
      the district land committees explaining the formal procedure for determining a land plot
      containing a list of officials with the authority to sign this document. This is necessary
      to reduce the number of people involved in the process.
   4. Articles 15 and 17 of the Tajik Land Code should be amended to say that the right for
      land use occurs as of the time the act of Hukumat is issued and not when the
      Entitlement is received (the Entitlement is currently to be signed in Dushanbe and only
      by the State Land Committee top officials).
   5. Develop a draft law of the Republic of Tajikistan introducing amendments and addenda
      to the Tajik Code of Administrative Offences. This should remove Article 52(6) “Using
      land without having an Entitlement for land use” that stipulates administrative
      responsibility of citizens in the form of a fine ranging from 20 to 30 minimal salaries
      for using land without having an Entitlement.
   6. To secure citizens‟ right to choose a land plot for dekhan farming against their land
      share the Tajik State Land Committee should develop an information letter for
      circulation among district land committees explaining citizens‟ right to give up part of
      the land plot against a land share at their discretion.
   7. To secure rural residents‟ access to pasture lands that have been formerly assigned to
      farm enterprises it would be useful to develop a procedure for signing rental contracts
      or transferring parts of pastures to rural residents.
   8. To reduce the time and cost associated with the land surveying work a draft Resolution
      of the Tajik Government “On licensing the organizations implementing land surveying
      work and preparing documents for registering a newly formed land parcel with Land

       Cadastre” should be developed. The Resolution should provide for disclosing
       information by district land committees to privately owned organizations to enable
       them to do land mapping.
For recommendations on improvements to the legislation related to land relations and
operations of dekhan farms see Appendix 5.1.1.

5.1.2. Legislation related to organizational and legal forms of farm
enterprises and to restructuring of farm enterprises and collectively
owned Dehkan farms
Law on Dekhan (Family) Farm. The given law should be amended to discourage establishing
collectively-owned dekhan (family) farms:
a) Article 4 (dekhan farm members) should be amended to say: “Dekhan farm members can
   be spouses, children, adopted children, parents and other persons working on the common
   farm. The number of such „other‟ persons should not exceed 20 people”;
b) Point “c)” (“в)” in Russian) should be removed from Article 6. This point permits to
   establish dekhan farms in the form of simple partnerships which enables creation of
   collectively-owned dekhan farms.
   All other dekhan farms (numbering more members than stipulated by the law), should be
   reorganized into agricultural production co-operatives, limited liability societies, special
   (kommandit) partnerships or other legal entities;
c) The relations between dekhan family farm members should be regulated by contracts
   signed between its members to determine the person who will act as the farm head, his/her
   authority, people who are farm members, their rights and responsibilities, ways to form a
   land parcel, farm assets, rights to land in case of exit, procedure for recovering losses and
   distributing profits.
d) Procedure for registering dekhan farm members should be determined. This is currently not
   defined which complicates record-keeping for pension provision purposes;
e) Procedure for applying taxes on dekhan farms should be determined. It is recommended to
   provide for a five-year income and land tax privilege period to stimulate the creation of
   dekhan farms;
f) Article 8 of the Law “On Dekhan (Family) Farm” should provide for an opportunity for
   dekhan farms to participate in consumer co-operatives and in entities of other
   organizational and legal forms. The second and third paragraphs should be removed. The
   current interpretation of the Article contains a wording allowing creation of production co-
   operatives and partnerships only. In addition, the wording of the Article does not clearly
   explains whether dekhan family farms retain their entity after becoming members of
   production co-operatives and/or partnerships;
g) Shortage of arable land in Tajikistan and established practices of working on small land
   plots as tenants makes it necessary to consider the possibility to apply a differentiated
   approach to registering farm heads as entrepreneurs and to taxation of farm members. It is
   recommended to amend the Law “On Dekhan (Family) Farm” to relieve the farm head
   from obligatory registering as an entrepreneur without forming a legal entity if his/her farm
   does not use hired labour and the land plot does not exceed 0.5 ha. To simplify the farm‟s
   interaction with the state it is recommended to establish for such farms a special procedure
   for paying taxes and making payments into the Pension Fund. For example, to establish one
   day (1 December) when a one-off payment of the single agricultural tax (this is the same
   throughout the territory of a district) and payments to the Pension Fund are made. The rate

   of payments to the Pension Fund on behalf of dekhan farm members of able-bodied age
   should equal a sum calculated as an average per person of the total payments to the Pension
   Fund made over a year on the given territory.
Tajik Government Resolution on farm reorganization and endorsement of model charter
documents. Non-availability of a valid farm reorganization methodology in the Republic of
Tajikistan has resulted in the creation of palliative forms of farm enterprises such as a dekhan
family farm in the form of a production co-operative and other organizations which legal and
organizational forms do not conform to the existing legislation. The above makes it impossible
to identify farm members‟ liability for farm debts or ascertain the legitimacy of decisions made
by the farm head. The Project recommends a farm reorganization methodology should be
developed and endorsed by the Tajik Government. The methodology should establish a
procedure for making a farm reorganization decision distinguishing between the rights of
members of collectively and state owned farms. Collectively owned farm members can make
that decision independently while state owned farm members should obtain the government‟s
permission to do so. In case of a state owned farm privatization the body responsible for
managing state property should approve the privatization plan specifying the assets value,
mode and procedure of their transfer to the farm members as well as procedure regulating land
For all types of enterprises the citizens‟ rights should be described in detail, as well as modes
and procedure for property distribution among the members, conditions for setting up new
organizations and family farms.
Since all cotton producing farms are equipped with irrigation facilities it is necessary to
introduce a requirement demanding creation of water-users consumer co-operative and develop
a procedure to regulate their operations. This requirement should also determine the order of
transfer of irrigation facilities to the balance of such organizations, their maintenance and
It would also be helpful to adopt a Tajik Government Resolution endorsing model charter
documents of agricultural organizations and introducing a requirement to bring farm
enterprises‟ charter documents in conformity with the law.

5.1.3. Legislation related to establishment and operations of credit co-
operatives and micro-finance organizations
1. The legislation of Tajikistan as well as of Uzbekistan encourages creation of large scale-
micro-finance organizations (MFOs) in terms of both the number of clients and volume of
operations. In this way it ignores the fact that small and medium-scale MFOs can and must be
functioning along with large-scale ones.
The current Tajik and Uzbek legislation provides for a complicated MFO registration
procedure, specifying strict requirements to the amount of the charter capital, mandatory
licensing and to the minimal number of participants. For example, the provision of the Tajik
Law “On Micro-finance Organisations” that requires investment of $100,000 as the charter
capital significantly limits the opportunities for the population (particularly in rural areas) to set
up MFOs. The stipulated minimal number of members (50) and minimal size of the charter
capital ($10,000) of the Uzbek Law “On Credit Unions” also makes it impossible for residents
to set up such organizations without external assistance.
To promote development of medium and small-scale micro-finance organizations in Tajikistan
and Uzbekistan it is recommended to: (1) develop and endorse the Law “On Credit Co-
operatives”; (2) make amendments to the Tajik Law “On Micro-finance Organizations” and
Uzbek Law “On Credit Unions” that will introduce the first and second levels of the above

organizations. For first level organizations the requirements to the size of the charter capital
and mandatory acquisition of license should be removed while limitations as to the maximum
number of clients, size of loan portfolio and ratio between own and attracted funds should be
simultaneously introduced. For those first level micro-finance organizations and credit unions
that are willing to expand and increase their turnover acquiring a license and forming charter
capital in compliance with the law requirements should be mandatory. Such entities should re-
register as second level organizations.
2. Requirements to the charter capital and minimal number of members in credit unions and
micro-finance organizations are in conflict with the actual income level of the population.
Tajikistan legislation requires investment of $100,000 as charter capital in order to set up a
micro-credit depositary organization. This requirement if considered together with the
requirement stipulating the minimal number of founders means that the contribution of one
member should equal $2000 to $3300. It is obvious that very few rural and even urban
residents are able to make such contributions. In Uzbekistan the requirements are by far more
liberal stipulating $200 as a credit union member‟s contribution. However the Project
observations have shown that neither in Tajikistan nor in Uzbekistan an average statistical
resident is able to invest more than $50. The figure of $30 was mentioned as more realistic.
Subject to endorsement of the above recommendation to create a two level system of credit
unions and micro-finance organizations the Project further recommends to remove the
requirement to the size of the charter capital with respect to first level MFOs.
3. Cumbersome procedure for obtaining a license and vague conditions for its recalling
The Tajik legislation does not provide for a clear procedure in terms of licensing micro-finance
organizations. There is no established list of documents that should be submitted to obtain a
license, nor is the license acquiring procedure itself clearly defined. In Uzbekistan there are no
formal standard objective criteria that should be applied to evaluate business plans. A business
plan, however, is considered to be one of the most vital documents to get a license.
To eliminate the existing shortcomings it is recommended to clearly define in the Tajik Law
“On Micro-finance Organizations” a list of documents necessary for obtaining a license. It is
recommended to provide for standard criteria that a business plan should meet in the Uzbek
Law “On Credit Unions”.
4. Qualifying requirements to management should be defined in a more precise way
In the course of the Project implementation it has become known that in Uzbekistan when
applying for a license the applicant has to meet additional to what has been determined by the
Central Bank requirements. For example, credit union managers are to go through an
interview. A provisional list of questions to be answered during the interview includes 300
items. In addition, the requirements to a credit union manager‟s track record are quite vague
which increases the risk of bias. The Tajik Law “On Micro-finance Organizations” contains a
clause stipulating the introduction by the National Bank of qualifying requirements to
management. However this has not been further elaborated either in other articles of the law or
in documents adopted by the National Bank leaving a legal vacuum on this issue.
It is recommended to remove the above constraints by making a provision in the Uzbek
legislation prohibiting the Central Bank to introduce any additional qualifying requirements
besides the ones that have already been established. The qualifying requirements stipulated in
the Tajik legislation should only apply to micro-credit depositary organizations. The latter
should be clearly defined in the law.
5. Remoteness of registration agencies
In Tajikistan registration of legal entities, including micro-finance organizations, is carried out
in justice institutions that are located in regional centres. In Uzbekistan, the state registration of
credit unions is effected by the Republican Department of the Central Bank located in
Tashkent. As a result the registration procedure takes as long as 12 months in Uzbekistan while
in Tajikistan not a single micro-finance organization has been registered so far in compliance
with the new law.
To speed up the process of setting up MFOs in Tajikistan it is recommended to delegate the
authority to register legal entities to district centres. The Central Bank of Uzbekistan should
delegate the authority to register credit unions to its local branches based on a document of
notice submitted by applicants.
6. The Tajik and Uzbek legislation does not clearly define whether the legal norms of the Law
“On Micro-finance Organizations” and “On Credit Unions” apply to NGOs involved in loan
provision and created before the above laws were adopted
The Tajik and Uzbek legislation does not contain clear clarifications as to the current status of
non-for-profit organizations involved in loan provision and created before the Laws “On
Micro-finance Organizations” (Tajikistan) and “On Credit Unions” (Uzbekistan) were adopted.
This uncertainty in the legislation has led to the fact that in Uzbekistan the operations of loan
providing NGOs were brought to a standstill due to the introduced limitations on cash turnover.
The Tajik legislation contains two conflicting provisions, one of which allows any NGO to
carry out loan provision operations (article 3), whereas the other (article 42) requires re-
registration in accordance with the new law.
The Project recommends that both Tajik Law “On Micro-finance Organizations” and Uzbek
Law “On Credit Unions” be amended to specify that they do not apply to activities of non-for-
profit organizations and do not restrict loan provision operations carried out in conformity with
the current civil legislation.
For detailed recommendations see Appendix 5.1.2.

5.2. Key recommendations to the local authorities on the Area Development
It is recommended that the Pilot Areas Development Plans for 2006-2008 include the poverty
reduction activities that have been tested and produced positive results in the course of Project
Phase I implementation. These are:
   1. Monitoring rural poverty;
   2. Setting up Jamoat Resource Centres;
   3. Securing access to land;
   4. Securing access to credit;
   5. Rehabilitation of rural social infrastructure and support to social initiatives;
   6. Securing access to information and advice, training, lessons sharing, and study visits/
   7. Developing off farm businesses;
   8. Other (involving women into the social life of their community, etc.).
The above activities were undertaken under Phase I of the Project and were only implemented
in the two pilot Jamoats. It is recommended that the development plans of each pilot district for
2006-2008 stipulate the implementation of the tested poverty reduction activities in all the
Jamoats, i.e. in 14 Jamoats of Penjikent and 8 Jamoats of Ayni district. The only exception to
this would be the activities associated with rural poverty monitoring. As this component is

quite labour intensive it would be more practical to limit its implementation to only 4 Jamoats
(two in each district).
The key resources required for the implementation of the activities to be included into the area
development plans include competent consultants and funding. For the purposes of making the
funding requirements estimates the financial resources were put into two categories, i.e. money
needed to fund technical assistance activities (consultants‟ fees, transport, necessary materials,
office rent, etc.) and grants to beneficiaries participating in the poverty reduction programme
(replenishment of Revolving Funds, social infrastructure rehabilitation, etc.).
The estimates of the resource requirements to support the planned activities in all the Jamoats
of the two pilot districts in 2006-2008 have been based on the actual expenses incurred during
Phase I of the Project implementation in the pilot Jamoats. The only exception here is
component 6 (securing access to information and advice, training, lessons sharing, study tours)
where the total amount required has been made 2.5 times lower because the Project does not
suggest organizing a costly study tour to Russia and Great Britain (that took place during Phase
I) for representatives of every Jamoat. As for some other components (1, 2, 8) the amounts
required have been slightly re-distributed for practicability reasons (for instance, qualitative
monitoring of rural poverty would be slightly more expensive than during Phase I while
involving women into the social life of the community would be slightly cheaper, etc.).
The calculations made using the above mentioned methodology are given in Tables 5.2.1 and
Due to the fact that the poverty level in Ayni district is higher than that in Penjikent district,
actual, and therefore calculated costs for 2006-2008 per one Jamoat are somewhat higher than
in Penjikent.
To ensure efficient implementation of the activities to be included into the area development
plan for 2006-2008 a team of 17 consultants (for both districts) will be necessary.
The implementation work will require funding in the amount of $2,150,000 for Penjikent
district, including $1,380,000 for technical assistance and $770,000 for grants and loans.
For Ayni district the budgeted costs amount to $1,460,000, including $810,000 for technical
assistance and $600,000 for grants and loans.

                                     5.2.1. Resource requirements for project dissemination to all the Jamoats of Penjikent district
                                               Project Phase I
                                           Actual costs per one pilot                           Dissemination costs (all Jamoats),
                                                                                                                                                                                             Sources of funding, thou $

                Project Components
                                           Jamoat (Kolkhozchiyon),                                           thou $
                                                    thou $
                                                                                                                                       Costs, thou $                                                                Including:

                                             Total Consultants1

                                                                                                              Total Consultants

                                                                                                                                       Total Technical

                                                                                                                                                                                                  District Budget

                                                                                                                                                                                                                        Region Budget
                                                                                                                                                                      Total funds
                                                                                               (total – 14)

                                                                                Grants to


                                                                                                                                                         Grants and



                 1                               2                   3             4              5            6                           7                8          9            10           11                    12                13        14
1. Poverty level monitoring                      2                  20             -              2            2                          60                -         60            40            -                     -                20         -

2. Support to JRC establishment                  1                   5             -             14            1                          40                -         40            30           10                       -               -          -
3. Securing access to land
                                                 4                  20             -             14            4                        280                 -         280           240             -                     -              40          -
4. Securing access to loans
                                                 2                  20           30              14            3                        280              520          800           300          20                    30                50        400
5. Social infrastructure
rehabilitation and support to
social initiatives
                                                 2                  25           25              14            3                        350              250          600           350          20                    30               200          -
6. Securing access to information,
training, lessons learning and
study visits/tours
                                                 2                  70             -             14            2                        250                 -         250           200          10                    20                20          -
7. Developing off farm businesses
                                        1          5          -        14         1       70          -       70      40         10                                                                                       -              20          -
8. Other (involving women into
social life of the community,           2          5          -        14         1       50          -       50      20         10                                                                                    10                10          -
Total                                  122        170        55                  17      1380       770     2150 1220            80                                                                                    90               360        400
   Actual number of consultants (Russian and local).
   The actual number of consultants is not equal to the total in the column, as some specialists were developing several activities.
   Including loans provided by the World Bank.
                                     5.2.2. Resource requirements for project dissemination to all the Jamoats of Ayni district

                                              Project Phase I
                                                                                             Dissemination costs (all Jamoats),
                                          Actual costs per one pilot                                                                                                                    Sources of funding, thou $
                                                                                                          thou $

                Project Components
                                           Jamoat (Ayni), thou $

                                                                                                                                       Costs, thou $                                                           Including:

                                                                                             Jamoats (Total – 8)
                                           Total Consultants1

                                                                                                                   Total Consultants

                                                                                                                                       Total Technical

                                                                                                                                                                                             District Budget

                                                                                                                                                                                                                   Region Budget
                                                                                                                                                                 Total funds

                                                                              Grants to





                                                                                                                                                         s and

                 1                             2                   3             4               5                  6                      7               8      9            10           11                    12                13        14
1. Poverty level monitoring                    2                  20             -               2                  2                     60               -     60            40            -                     -                20         -

2. Support to JRC establishment                1                   5             -               8                  1                     40               -     40            30           10                       -               -         -
3. Securing access to land
                                               4                  20             -               8                  4                   160                -     160           120             -                     -              40         -
4. Securing access to loans
                                               2                  20           35                8                  3                   160               360    520           200             -                  20                20        280
5. Social infrastructure
rehabilitation and support to
social initiatives
                                               2                  25           45                8                  3                   200               240    440           260          10                    20               150         -
6. Securing access to information,
training, lessons learning and
study visits/tours
                                               2                  70             -               8                  2                   160                -     160           100          10                    20                30         -
7. Developing off farm businesses
                                        1          5            -         8         1         40         -       40      30           5                                                                             5                -         -
8. Other (involving women into
social life of the community,           2          5            -         8         1         40         -       40      30           5                                                                             5                -         -
Total                                  122        170          80                  17        810       600     1460     810          40                                                                           70               260        280
   Actual number of consultants (Russian and local).
   The actual number of consultants is not equal to the total in the column, as some specialists were developing several activities.
   Including loans provided by the World Bank.
The funding sources of the above costs could include donor funds, district, regional and
republican budgets, as well as loans. Co-funding of the poverty reduction programme
implementation from the local, regional and republican budgets will demonstrate practical
support provided by the authorities of all levels to the activities under implementation.
Since local budgets are mostly subsidized, particularly that of Ayni district, their contribution to
the Project has been estimated as minimal (3.5% of the total costs). The estimated financial
contribution from the regional budget is slightly higher (4.5%). The estimated share in total
funding of the republican budget is significantly higher (17%) (see Table 5.2.3).
The funding to be provided by the local, regional and republican budgets will go mainly to
support the establishment of the micro-credit Revolving Funds, social infrastructure
rehabilitation, and information and advice provision to rural residents.
The estimated donor contribution amounts to $2,030,000 (5.6% of the total costs) for the two
districts over three years.
The Project intends to raise a significant share of the necessary funds (19%) as loaned resources.
Those could include both contributions of local residents into credit co-operatives or other
micro-finance organizations (relevant legislation is expected to ensure such a possibility) and
bank loans. Since local banks have only a limited amount of loan capital the Project believes it
would be advisable to develop a programme for securing state guaranteed World Bank loans to
be used to replenish the revolving funds of the micro-finance organizations.
    5.2.3. Resource requirements for project dissemination to all the Jamoats of the two
                           districts of Zarafshan Valley, thou $
                         Total funds                               Including, thou $
                                         donors         district        region      republic   loans
 Ainy district              1460          810             40              70          260       280
 Penjikent district
                            2150          1220            80              90          360      400
 Total for 2 districts      3610          2030           120             160          620      680
 As %                        100           56            3.5             4.5           17       19
 Including by year:
 Year One of Phase II       1210          1000            20              30          150      160
 Year Two of Phase II       1200          700             40              50          200      240
 Year Three of Phase        1200          330             60              80          270      280
 II (2008)

The funding from the budgets of different levels will not be provided in equal portions over the
three years of Phase II of the Project. Year 1 will be financed to a large extent with donor
funding. As the local ownership of the Project methods and approaches grows the funding
coming from budgets of all levels will grow in size. The budgeting process in Tajikistan works in
such a way that, unfortunately, reservation of any significant funding for year 2006 will hardly
be possible. Nonetheless the Government of the Republic of Tajikistan intends to fund a number
of large scale socio-economic initiatives on the territory of Zarafshan Valley regardless of the
Project. An example of such a contribution could be the tunnel through the mountains of the
Anzob Pass which launch is scheduled for March 2006. This tunnel will enable winter movement
of people and goods to the central and southern parts of Tajikistan that was earlier impossible.

5.3 Recommendations to the district, regional and republican authorities on
the Project dissemination

The successful Project dissemination to a large extent depends on the performance of district,
regional and republican authorities. Each level of authority should tackle their own range of

                  Recommendations to the local authorities (Hukumats)
1. It is proposed to hold workshops in Penjikent and Ayni districts to share the experience of the
   pilot Jamoats in their poverty reduction effort.
   These workshops can be attended by the heads of all the Jamoats of the district and officials
   of the district administration. Along with the Project consultants the speakers at the
   workshops should include the heads of the pilot Jamoats, Chairmen of Jamoat Resource
   Centres, Directors of Loan Management Committees, and Project beneficiaries.
   Focused on awareness raising among officials and local population such workshops should
   also serve as a launching pad for the Project dissemination to new Jamoats in the pilot
   Information dissemination about the Project will also encourage financial contributions from
   other donor organizations.
2. It is recommended that during the next year budget drafting and discussion stage the district
   authorities provide for allocation of monetary resources to fund implementation of certain
   Project activities.
3. To ensure access of dekhan farmers to land as the main income source a programme should
   be developed for the pilot districts focused on the reorganization of collectively-owned
   dekhan farms and establishment of family farms on their basis with subsequent issue of the
   necessary documents for land.
4. To enhance inputs supply and marketing opportunities and promote rural off farm businesses
   the district authorities should encourage development of service provision co-operatives and
   support commercial involvement of private companies and individual entrepreneurs in rural
   areas. This will contribute to increased rural employment and incomes. Tax and other
   privileges may be offered as incentives to promote business activities in rural areas.
5. It is recommended that the funds provided for in the district budget for the purposes of rural
   social infrastructure development be disbursed using the project developed mechanisms (e.g.
   identifying priority needs, control over spending by rural community, participatory
   implementation activities, etc.) with involvement of NGOs, particularly JRCs.
6. It is recommended to conduct a competition among the Jamoats of Ayni and Penjikent
   districts to win the right to priority participation in the poverty reduction programme. The
   activities associated with the development of the terms and conditions and with holding of
   such competitions will encourage and increase the awareness of the programme principles,
   values and mechanisms, promote establishment of Jamoat Resource Centres and Revolving
   Funds, etc.
7. The Project work in the pilot districts revealed that Agroprombank (Agricultural Industrial
   Bank) had been chosen to provide loans to collectively-owned dekhan farms as part of the
   state support programme for the agro-industrial complex. The Project recommends that the
   local authorities ensure equal access to the above resources for dekhan family farms.

8. To assess and record poverty levels in selected Jamoats it is necessary to establish and
   maintain appropriate information bases and, first and foremost, to ensure regular household
   records keeping that should be done in a competent manner.
9. There are no District PRSP Monitoring Units in the pilot districts despite the fact that their
   creation was mandated by the Tajik President‟s Decree No. 857 dd. 8 August 2002. As a
   result no regular work aimed at collecting and analyzing the district data has been carried out
   making the monitoring of the Poverty Reduction Strategy implementation difficult. There has
   also been no regular contact with the central PRSP Monitoring Unit in Dushanbe. The
   Project recommends establishment of PRSP Monitoring Units within district Hukumats.
10. To co-ordinate poverty reduction efforts it is important to set up a District Co-ordination
    Council that will hold regular discussions of the issues and ensure the Councils‟ effective
11. To encourage and secure additional funding from international donor organizations it is
    recommended to link up the new District and Jamoat Development Plans with the
    Millennium Development Goals and Tajik Republic Poverty Reduction Strategy Paper. It is
    also recommended to establish a closer and more regular contact with the PRSP Monitoring
    Units and Aid Coordination Unit within the RT Government. In this way the Project will not
    only enhance its attractiveness to donor organizations but also secure support and approval
    from the RT Government.
12. The implementation of the District Development Plans should heavily rely on local NGOs,
    including the recently established District Development Committees (DDC) and Jamoat
    Resource Centres (JRC). Local control and monitoring mechanisms for infrastructure
    projects implementation should also be in place.

                         Recommendations to the regional authorities
1. The Project recommends holding a regional workshop to raise awareness of the Project Phase
   I outcomes among officials and specialists of all the districts of Sogd region. The workshop
   may be held in Penjikent or Ayni and attended by regional authorities, heads and specialists
   of district Hukumats responsible for the national poverty reduction strategy implementation.
   Project consultants, heads and representatives of the pilot districts and Jamoats can make
   presentations about the Project, its mechanisms and implementation outcomes, as well as
   outline prerequisites for its dissemination to other districts of the region.
2. To ensure support to the Project activities it is advisable that the regional authorities provide
   for annual funding in their budget to finance the above activities in the pilot districts, and, in
   case of Project dissemination to other districts (primarily to Gorno-Matchinsky) – in new
   districts as well.
3. To secure access of dekhan farmers to land the regional authorities are recommended to
   make sure that land share certificates are issued to all land share holders and farm
   reorganization work is organised to reorganize collectively-owned dekhan farms and transfer
   their land to family dekhan farms set up on their basis.
4. It is advisable that the regional authorities pass a resolution granting tax and other privileges
   to consumer co-operatives, private companies and individual entrepreneurs who purchase
   dekhan farmers‟ produce, construct and exploit agricultural produce processing facilities,
   supply inputs to dekhan farmers and develop off farm businesses in rural areas.
5. It is advisable that the funds of the regional budget earmarked for rehabilitation and
   development of rural social infrastructure be disbursed using the project tested mechanisms

   (e.g. prioritizing projects with community participation, control by rural community over
   spending of the allocated resources, participatory implementation activities, etc.).
6. The process of distribution of budget funding earmarked for support of agriculture should be
   accompanied with the adoption at regional level of regulatory documents ensuring equal
   opportunities for both family and collectively-owned dekhan farms in obtaining the above
7. To support the processes associated with civil society development and their participation in
   decision-making at district level UNDP is undertaking activities aimed at setting up and
   strengthening District Development Committees (DDC). One of the DDC targets would be
   creating a database to be used for prioritization of local needs and planning. In this respect
   the Sogd region authorities could act as facilitators by instructing respective district
   authorities to ensure free access to statistical data and reports available within the district and
   encourage regular update of the databases within the DDCs.
8. The officials of both regional and district levels would need to be trained and their awareness
   of issues of land reform, civil society development, and socio-economic growth be increased.
   It is essential to find resources for such trainings as well as for promoting best practice
   dissemination activities on the territory of Sogd region by way of providing regular updates
   to local and regional authorities on the Project achievements and organizing study visits to
   the pilot Jamoats for them.

                       Recommendations for the republican authorities
1. The existing legislation on land, dekhan family farms, and micro-finance organizations needs
   to be improved. The amendments to the legislation detailed in Section 5.1 and Appendix
   5.1.1 have been drafted to contribute to rural poverty reduction by securing access of dekhan
   farmers to land and credit resources. The Project Phase I implementation experience
   accumulated enough evidence for the republican authorities to consider and approve the
   recommended amendments to the legislation.
2. Phase I of the Project has been mainly supported by donor funds. Project dissemination
   requires at least some co-funding of the most essential project activities from budgets of
   different levels. The leading role here is to be assumed by the central authorities and
   republican budget.
   Funds allocation from the central budget will indicate support given to the project activities
   by the central authorities. The regional and district authorities will regard the central support
   effort as an important signal and encouragement to allocate funding from the regional and
   district budgets.
3. A key effort in poverty reduction is providing rural residents with access to credits. The
   Project Phase I implementation has demonstrated active participation of the population in the
   micro-finance programme. Over the six months of the credit scheme operations about 20% of
   the total rural families in the pilot Jamoats obtained loans. However the funds provided by
   the donors are not enough even to ensure effective work of the Revolving Funds of the pilot
   The Project dissemination to all the Jamoats of the pilot districts will require far more
   funding than the donors can provide. The budget support to this Project component therefore
   is crucial. However this alone will not solve the problem of insufficient funding either.
   The Project recommends the following in order to enhance access of residents to credits:

       -   pass the enabling legislation allowing to set up credit co-operatives with the right to
           use contributions of its members without obtaining the license from the National
       -   develop a republican programme that would enable micro-finance organizations to
           attract loans. The World Bank may be willing to provide loans for these purposes
           provided they are state guaranteed.
Example: In Moldova the World Bank provided for similar purposes a loan of $30 million at 5 %
annual interest for 17 years with a grace period of 10 years.
   Bearing in mind a high level of micro-credit repayment rate (100% in the pilot Jamoats in
   2005) the risks to be borne by the national budget when providing their guarantees for loans
   to micro-finance organizations are minimal.
4. During Phase I the Project developed a methodology to measure poverty levels. In contrast to
   the currently used methodologies that allow to measure the poverty level for the country as a
   whole or for individual regions the Project proposed methodology allows to measure the
   poverty levels for each individual Jamoat. Such an approach enables to monitor changes in
   the poverty levels on individual territories thus providing the local authorities with evidence
   to develop specific poverty reduction measures applicable to each individual territory.
   To ensure that this methodology is widely used the Project recommends that it be endorsed at
   the national level and an information database be created within the RT PRSP Monitoring
   Unit to measure incomes levels of rural households. It is particularly vital to ensure that all
   household records are kept in a competent and regular manner.
5. To raise the awareness of the Project outcomes among all the regions of the Republic of
   Tajikistan it is advisable to hold a republic level workshop where approaches and activities
   aimed at rural poverty reduction will be discussed. Representatives of the local authorities,
   Project consultants and beneficiaries could deliver presentations describing poverty reduction
   mechanisms, informing about the main Project outcomes and outlining prerequisites and
   opportunities for its dissemination to other regions.