Migration has become increasingly prevalent in many countries in the Europe and Central Asia region, playing a key role in their development. In Tajikistan, one of the region’s poorest countries, in the majority of rural households at least one or two members migrate abroad in search for better employment opportunities. Although migration can reduce the pressure placed on local labour markets by Tajikistan’s rapidly growing population, it also means that rural areas lose the youngest and most dynamic members of their workforce.

Tajikistan has been heavily reliant on transfers migrants send back to their home country. In the third quarter of 2017, individual cross-border cash transfers from Russia amounted to 1.663 billion USD – some 231 million USD more than in the same period of the previous year.

While these transfers could be an enormous source of investment in the country, a large part is spent on primary needs such as food, housing and education.

Channelling this income into agriculture, which is the second largest sector of the country’s economy but which has been suffering from low productivity, would have catalytic effects on rural development by promoting food security and nutrition, employment creation and inclusive growth.

Promoting inclusive economic growth by matching grants for families of migrants

FAO is supporting the Government of Tajikistan in realizing the potential of migration by mobilizing remittances for agricultural development. This support is led by the FAO project “Developing capacity for strengthening food security and nutrition in selected countries of the Caucasus and Central Asia”, which aims to realise the linkages between agriculture, nutrition and social protection in national food systems.

Under the project’s pilot, “Promoting inclusive economic growth through matching grants for families of migrants”, FAO will assist migrants and their families and communities in formulating small- and medium-scale enterprises in fruit, vegetables, livestock production and agribusiness. The project will use the “1+1 approach” - for every dollar invested by the migrant worker, an additional dollar will be provided from project funds. Furthermore, capacity development programmes will help migrant families build skills in small- and medium business development in the agricultural sector.

The pilot, to be implemented in the Hissor and Jaloliddin Balkhii districts, focuses specifically on migrants or returnees, women with household-leading responsibilities receiving remittances from a first-degree relative, and forced returnees with proven ineligibility to migrate abroad. The inclusion of returnees and forced returnees is vital, as migrants are increasingly returning to their home country, and their sustainable reintegration in the society requires providing and broadening employment opportunities.

Facilitating South-South Cooperation: Learning from Moldova’s Experience

Moldova – one of the region’s largest remittance recipients – has already implemented a similar model, called the “National Programme for Attracting Remittances into the Economy” (also known as “PARE 1+1”). This aims to direct remittance income towards the expansion of micro, small and medium enterprises, which in turn act as engines of sustainable growth and macroeconomic stability.

PARE 1+1 has yielded significant results following its implementation by the Organization of Small and Medium Enterprises Sector Development of Moldova. Between 2011 and 2017, approximately 1100 business projects were financed with remittances that amounted to a total of about 10 million euro. This led to the creation of nearly 3000 jobs and a further 34 million euro of investments, a significant portion of which was invested in the agrifood sector.

The project “Developing capacity for strengthening food security and nutrition in selected countries of the Caucasus and Central Asia” recently organized a study tour for Tajik government officials to learn from Moldova’s successful experience. 

“I am honoured that the experience and success of the PARE Program in Moldova stirred interest of other countries in the Europe and Central Asia region,” said Iulia Costin, State Secretary of Moldova’s Ministry of Economy and Infrastructure. “We were happy to share our experience with the delegation from Tajikistan. I look forward to continue an exchange of knowledge between countries in the region, on the shared aim of achieving sustainable livelihoods.”

Participants of the study tour, including representatives of Tajikistan’s Ministry of Labour, Migration and Employment, Ministry of Agriculture, and Ministry of Finance, highlighted the importance of the exchange for further developing and implementing the model in Tajikistan.

“PARE 1+1 offers a very timely and suitable approach to promote economic and agricultural development in Tajikistan by creating new permanent jobs, involving migrant workers, and building their capacities,” said the Deputy Head of the Migration Service of the Ministry of Labour, Migration and Employment of Tajikistan.

“Moldova’s successful programme will inspire the design of the “Promoting inclusive growth through matching grants” model in Tajikistan, which aims to promote livelihoods through investments in agricultural production and agribusiness activities. With the pilot project in Tajikistan, we eventually hope to ensure future commitment and investments by the government and the donors,” said the deputy head of the Ministry of Finance of Tajikistan’s main department for budget policy in economic sectors

“We believe that the knowledge and experience gained as a result of this study tour will have a strong impact on leveraging the remittances of migrant workers, and ultimately will help to improve food security and nutrition in Tajikistan,” said FAO senior project coordinator Mauricio Rosales.

Moving forward

The study tour – a good example of South-South Cooperation facilitated by FAO – presented an exceptional opportunity to learn how to turn the challenge of migration into an opportunity for agricultural and economic development. The know-how and expertise shared by Moldova have put Tajik officials in a better position to develop their own programme, and the opportunity to network has led to the establishment of contacts between those involved in PARE 1+1 and Tajik officials for further support and exchange of experiences. Personnel of the programme in Moldova will travel to Tajikistan to provide the FAO project team with technical assistance, which will start with the full implementation of the pilot.

“Migration and remittances play a very important part in the development processes in the Europe and Central Asia region,” concluded Marco Sanchez Cantillo, deputy director of FAO’s Agricultural Development Economics Division. “Moldova sets a very good example for other countries in the region, where FAO supports the achievement of the Sustainable Development Goals.”