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TAJIKISTAN - WTO:
ADVANTAGES OF GLOBALIZATION PROCESS
“Poor countries are poor not
because of a surplus of globalization,
but of its deficiency”.
Kofi Annan, General Secretary of UNO
After president E. Rahmonov’s visit to the USA and Fracne at the end of the year passed there followed immediately applications supporting the aspirations of the government of Tajikistan to officialize the country’s membership in WTO. Thus, EC representative in Central Asia Alan Vaddams announced that the European Community had asked WTO on its own behalf to accept Tajikistan into its ranks. Certain help in regard to Tajikistan entry into WTO is rendered already on the part of the USA government. China is also prompt to support if there is necessity. Despite the presence of a number of problems of socio-political slant today it is absolutely obvious for everyone that Tajikistan needs stimulation and maintenance of the economic reforms effectuated in the country and in order to ensure a perspective of steady development it must be integrated into the system of world economy relations.
Being a member of the Customs Union, and later on of EurAsEC, Tajikistan followed unswervingly the adopted solutions, in the scheme of legislation it enforced unified export-import duties and taxes which in the long run strangled actually the trade in the country, it stimulated the smuggle of foodstuffs and consumers goods. Being EurAsAC member, Tajikistan supports de-facto the economic policy of Russia impinging upon its own economy interests. It’s natural that due to comprehensible reasons Russia domineers in EurAsEC both politically and economically. It stands to sense that being a country-producer Russia, has strategic stakes in the sphere concerned with its own home market protection. We mean, first of all, machine building, bank sector, processing, food and other industries being vitally important of the Russian economics. By dint of holding high tariffs for import Russia strives not to admit maximally respective world production to its internal custom’s tariffs and duties in EurAsEC ranges Russia, first of all, ensured the protection of its own economic interests. However, it is absolutely unclear herewith whose economic interests did protect and does protect Tajikistan having surrounded the practically empty home market with tall customs barriers.
Another reason aggravating the crisis plight of Tajikistan economy lies in the quality of law space regulating the realms of economy, business and commerce. The major part of legislative instruments adopted in Tajikistan in the field of economy, in spite of the protests expressed by government members and parliamentarians, putting it mildly, are far from the norms and requirements acting in world practice, presenting no better mechanical replica of respective Russian laws. On the results of the December round of negotiations in Geneva between the representatives of the Russian government and WTO it is determined that already in spring of 2003 the legislation of Russia should be brought in compliance with international norms, requirements and rules of WTO. It goes without saying that, being EurAsEC member, Tajikistan will have had sooner or later to change cardinally the major part of its legislation in the sphere of economy irrespective of country’s entry or non-entry into WTO herewith.
Tajikistan being the poorest CIS country and having an outstanding debt exceeding one billion USA dollars needs acutely in modernization of national economy real to anticipate it in the frames of EurAsEC or other amalgations inside CIS. The first steps on this way can and must be done through a broad opening of markets by means of commercial agreements. It is the mostly efficacious tool for expanding economy potentialities of not only Tajikistan, but of any other developing country either. The data about developing countries which were lowering trade bars throughout late 20 years having achieved high tempos of economic accretion are adduced in the World Bank report “Global Economic Perspectives and Developing Countries” for 2001. in the developing countries which were lowering their trade bars in 1980s the magnitude of the gross domestic product (GDP) per capita was accrued on average by 3.5% a year. In the developing countries, which were lowering their trade bars in 1990s GDP per capita was increasing on average by 5%. Only through entry to WTO Tajikistan can realize a similar mechanism of economy growth. Hereby, the terms on which Tajikistan as the poorest country can enter WTO may be more privileged in comparison with the rest CIS states.
In order to enter WTO Tajikistan should manifest not only political will in the relations with EurAsEC partner, but pragmatism either. At the session of EurAsEC International Board the president of Russia Vladimir Putin declared that all countries-participants had agreed to comply their stances in the course of negotiations on entry into WTO and that the parties had consented that the terms being acceptable for all of them were those which Russia as the most “economically powerful” state in EurAsEC will have managed “to bargain about”. However, it is obvious that the basic terms of Russia joining WTO as the country with a vast territory and mighty economic potential are absolutely unacceptable for Tajikistan, which may obtain more essential privileges from WTO and under certain conditions it can become its member even earlier than Russia. Tajikistan entry into WTO should be a central issue of the current economic politics. It is required by the crisis plight of economy and trade in the country, practical absence of financial and technological investments, non-transparency of business relations, poverty and non-availability of a wide spectrum of goods and services existing, first of all, in the West.
The primary advantage of WTO lies in the interaction of countries-participants within the frameworks of indiscriminate commercial system where every member is ensured with clear-out guarantees of just and consecutive attitude to its export in other countries markets; hereby the same conditions for import are obliged to be provided on the market of one own. In order developing and mostly poorest countries were able to carry their obligations into effect broad pliancy and freedom of actions are envisaged. In pragmatic aspect it is that same advantage which is the objective of joining WTO. Concrete dividends from the future membership of Tajikistan in WTO may be considered as follows:
- obtaining the best in comparison with existing ones indiscriminate conditions for an entry of produce arising form Tajikistan into foreign markets;
- creation of more favorable climate for foreign investments by bringing the legislative system of Tajikistan in compliance with WTO rules;
- creation of conditions for elevation of the quality of local production and sharpening its competitive edge through the augmentation of foreign goods, services and investments in the markets of Tajikistan;
- participation in international trade rules elaboration with taking into account national interests;
- access to the international mechanism of settling controversial commercial issues;
- improvement of the world image of Tajikistan as the participant of international commerce enjoying equal rights with all the rest.
Through entry into WTO the economy of Tajikistan may be modernized and integrated into world links more effectively. It is natural that this process may take no one year, but it is necessary if Tajikistan really intends to act further on from the positions of political and economic pragmatism. It is worth mentioning that the advantages Tajikistan may gain through WTO are not limited with economy sphere only.
When a government removes bars in order business functioned normally, stimulates competition creating thus the conditions for each member of society in order the latter were a success it is nothing else on earth but an extension of individual freedom, and consecutively, the freedom of society upon the whole. Participation of Tajikistan in WTO will be inevitably promoting the development of liberalism in the country and entailing subsequently the formation and reinforcement of the foundations of genuine democracy. On a great score these are just those advantages that are brought to humankind by globalization giving a change for developing countries to evolve them in the new millennium. Only what will the degree of efficacy by when they try to manage it? - that is the question.
By Nazar Fakhri, A-Consulting, Canada
for “Varorud” IAA especially

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