Tajikistan PDPG6

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The development objective of the Sixth Programmatic Development Policy Grant Program (PDPG6) for Tajikistan is to protect basic services within a sustainable fiscal framework, and to lay the foundation for post-crisis recovery and growth. The PDPG6 of SDR 13.2 million (US$ 20 million equivalent) is the third in a programmatic series of three operations for the Republic of Tajikistan. The PDPG4-6 series is central to the World Bank's engagement in Tajikistan, as envisaged in the FY10-13 Country Partnership Strategy (CPS). It supports the government's two-pronged strategy to mitigate the impact of the global crisis and to pave the way for post-crisis recovery and poverty reduction. The series builds on the PDPG1-3 series completed in 2009, and seeks to (i) protect social spending and increase its efficiency, (ii) improve the climate for private sector development, and (iii) strengthen government effectiveness. PDPG4 and PDPG5 focused on protecting earlier social sectors gains, and on improving the environment for private investment. The 2008-09 global economic crisis adversely affected Tajikistan through lower remittances and exports. Growth slowed to 3.9 percent, PDPG6 supports the economic recovery underway following the 2009 slowdown. Gross Domestic Product (GDP) growth has recovered to more than 6 percent in 2010 and 2011. Accordingly, the focus of the PDPG series has shifted from protecting earlier social sector gains to improving the environment for private sector development and strengthening government effectiveness. PDPG6 supports continued implementation of health and education financing reforms and ongoing efforts to improve targeting effectiveness of social assistance. To help spur private sector-led growth, the government has submitted a new law on public private partnerships to Parliament in August 2012, and has continued expedited issuance of land-use certificates to farmers. It has introduced a new salary grid in all central government entities, submitted a new law on public administration to Parliament which was approved in May 2012, approved the chart of accounts for public institutions, and prepared the 2012 budget based on the new budget classification.