REMITTANCES AND ECONOMIC DEVELOPMENT IN THE REPUBLIC OF TAJIKISTAN: IMPACT ON MACROECONOMIC STABILITY

Bakhrom SHARIPOV


Bakhrom Sharipov, Ph.D. (Econ.), Chief Researcher at the Institute of Economics and Demography, Academy of Sciences of the Republic of Tajikistan (Dushanbe, Tajikistan)


ABSTRACT

This article analyzes the growing role of migrants remittances in the new reality created by the significant changes in the functioning of the global and national economy. It attempts to show that economic development based on the use of primarily recurring external financial sources pegged to indicators of threshold values of the external debt under formation and indicators for retaining macroeconomic stability is creating significant risks.

The author examines the dynamics of the volume of migrants remittances in this respect, as well as their importance for Tajikistans economic and social development, particularly in ensuring the countrys macroeconomic stability. This is shown in the drawing up of a new National Mid-Term Development Strategy.

The article also states the need for taking efficient steps to transform remittances into investment and financial assets; in the near future, they should be used to create the countrys production potential. This will create conditions not only for making the Tajik economy less dependent on external factors, but also allow it to gain additional advantages from its accession to the WTO.

Keywords: migration, remittances, Tajikistan, macroeconomic stability, state debt, payment balance, financial tools, development.

Introduction

Tajikistan is a small country in the very center of Eurasia that is developing integration ties with the Near and Far Abroad. Labor migration, which ensures a flow of remittances into the country, is one of the most important factors promoting integration.

Tajik researchers have devoted a fair number of their studies to migration. Their continued interest in this topic is generated by the rapid changes going on in the global economy, as well as the..


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