Rural Growth ProgrammeRural Growth Programme

RGP Steering Committee Meeting, 16 June 2010

Current situation Current situation Economic transition period Financial crisis Lower export opportunities Reduced volume of remittances Low agriculture productivity

The Political Context Law on public self-action (2008) New law on local self-governance (2009) Law on local state power (2004) Law on gender equality (2005) Food and vegetable strategy (2010)

].

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Trust Fund Trust Fund

• Support to implementation of DDPs • Focusing on economic development based on

agreed criteria • Open tendering process • Cost sharing from state and non-state funds • Transparency and accountability

Target areas Target areas

RGP PurposeRGP Purpose Goal: To improve the local

environment for economic growth, income generation and employment creation in Sughd region, northern Tajikistan

RGP ComponentsRGP ComponentsRural economic development through improved:

Local Planning• Target: Government,

private sector, civil society

• Focus: Impl. & monit. of plans in line with NDS/PRS

Business Advisory/Extension services• Target: Producers, farmers, MSMEs

• Focus: Appropriate, professional, and sustainable services

Vocational Training• Target: Unemployed,

migrants, women

• Focus: Meeting regional & int’l demands

Micro Finance Services• Target: Producers,

farmers, MSMEs, poor, women

• Focus: Variety of products and services

Business Associations• Target: Member

focused associations

• Focus: Adequate and responsive services

Competitive Advantage Competitive Advantage

. Governance• Advantage: Close partner of national government

• Activities: Strengthen capacities of governance system and support to local economic development

Micro Finance• Advantage: Experience and leader in

promoting private sector and microfinance development

• Activities: Expand services and ensure micro-meso-macro linkages

Advantage: Link betw

een field

experience & policy-m

aking processes

Other RGP PartnersOther RGP Partners

• Ministries and State Agencies (MEDT, MoA, MoLSP, State Investment Committee, etc )

• IOM – Labour migration components;• All Hukumats and 60% of Jamoats in Soughd oblast;• Business and Dekhan Farms Associations;• Micro-finance Institutions (MLF,MLO,MDO);• Extension service agents;• MSMEs;• NGOs (on competitive basis);

RGP Coverage AreasRGP Coverage Areas

BeneficiariesBeneficiaries

• Direct: Smallholder farmers, entrepreneurs, business associations, extension service agents, VTIs, MFIs;

• Indirect: rural population of Soughd oblast, especially women;

Approx. 30% of the population

Poorest region in Tajikistan Significant industry and trade

potential

Sughd Oblast incorporates: o Zeravshan Valleyo Ferghana Valleyo Cross-border trade and development

Opportunity to apply ABD

comprehensively: o Governance: Oblast and national linkageso Private Sector: value-chain/value-adding

aspectso Micro-Finance: MLFs development, fund

sizeo Cross-Cutting issues: incl. Conflict resolution

etc.

Proposed RGP Implementation Zones:

UNDP & DFID: Ayni and Khujand Area Offices, covering Sughd Oblast (i.e. Zeravshan/Ferghana Valleys), expanding from 3 Hukomats/24 to 14 Hukomats/60% of Jamoats;

UNDP Area Offices

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Why Soughd?Why Soughd?

RGP Outputs & Lead AgenciesRGP Outputs & Lead Agencies

Good Governance

Private Sector Development

Microfinance

BudgetBudget

Total budget = $ 18.7 Million

DFID

$ 12 Million

UNDP

$ 3 MillionGTZ

$ 3.7 Million

Activities – Good GovernanceActivities – Good Governance

• Strengthening the capacity for development planning, implementation and monitoring

• Public sector reforms• Private sector and civil society participation• Supporting infrastructure and government

transactional services

Activities – Business/AgricultureActivities – Business/Agriculture

• MSME promotion along the value chain, particularly in the F&V sector

• Training and advisory services for businesswomen

• Developing agricultural extension services

Activities – Private SectorActivities – Private Sector

• Development of the business associations and their apex institutions

• Strengthening Associations of Dekhan Farmers (ADF)

• Private sector and civil society participation• Supporting infrastructure and government

transactional services

Activities – Vocational TrainingActivities – Vocational Training

• Support to local vocational training scheme• Labour migration rights and policies

Activities – Micro and Rural FinanceActivities – Micro and Rural Finance

• Linking MSMEs in F&V sector to financial services

• Micro-financial Institutions (MFIs) Development