Title: Corruption and Ethics: A Persistent Challenge for Businesses in Tajikistan
Europe & Central Asia, Nov. 5, 2020
Tajikistan’s business environment is marked by pervasive corruption and ethical dilemmas, posing substantial challenges for both local and foreign companies. According to various reports, including the World Bank’s Doing Business and the Bertelsmann Foundation’s Transformation Index, corruption infiltrates various sectors, from the judiciary and police to public services and land administration.
Corruption in the Judiciary: Impartiality Questioned
The judicial system in Tajikistan faces a severe risk of corruption. Patronage networks and the arbitrary application of laws impede the effective functioning of the courts.
- In a high-profile case, human rights lawyer Shurat Quadratov was sentenced to nine years in prison on charges of attempted bribery and fraud in 2016.
- Claims of political motivation and intimidation surrounded Quadratov’s arrest after he defended former Minister of Industry Zaid Saidov in a highly publicized trial.
Police: Unchecked Corruption, Extortion
The police force in Tajikistan struggles with systemic corruption. Officers have been reportedly involved in extortion and bribery with impunity. Companies increasingly mistrust the police for both personal safety and upholding the law.
Public Services: High Corruption Risk
Obtaining public services is a process riddled with corruption. Companies often feel pressured to pay bribes or offer gifts to secure utilities, licenses, and other essential services. Nepotism and cronyism widen the inequality gap, as individuals without connections face significant barriers.
Land Administration: Privatization and Expropriation
Tajikistan’s land administration presents an elevated corruption risk. Although the law protects property rights, enforcing these rights is hindered by a weak private property protection system, judicial corruption, and state intervention.
- Expropriation of illegally privatized properties following Tajikistan’s independence has been a significant issue.
- Adequate compensation has been paid to affected individuals and businesses in some cases, but the process remains inadequate.
Starting a Business: Red Tape and Corruption
Starting a business in Tajikistan is a relatively straightforward process, but obtaining construction permits and dealing with other government regulations takes significantly more time. Inefficiency, red tape, and corruption contribute to these delays, place a significant burden on businesses.
A Longstanding Challenge: Corruption in Tax, Customs, and Public Procurement
Corruption is pervasive within Tajikistan’s tax administration, leading to extortion and discouraging businesses from investing in the country. The inconsistent and burdensome tax system further acts as a barrier. Customs procedures are similarly riddled with bribery and informal payments. In the public procurement sector, favoritism and corrupt practices hinder competitive bidding and limit foreign investment opportunities.
Conclusion
The ongoing challenges of corruption and ethics in Tajikistan’s business environment require ongoing attention and action from both the government and the private sector. Although Tajikistan has a legal anti-corruption framework, enforcement remains inconsistent and selective, allowing corruption to persist. Companies and investors must adopt a proactive stance by adhering to ethical business practices, seeking transparency, and collaborating with local and international organizations to promote a more accountable and responsive government.