Industrial development has become an important and integral part of social and economic development of many countries around the world. Industrial development facilitates the achievement of primary objectives set by the government – improving the population’s living standards, improving productivity, improving efficiency of industrial sector, and raising tax revenues for the government; expanding the circular flow of income, technology and protection of environment, and markets, by increasing the domestic production of consumer, capital and producer goods. Furthermore, industrial development provides several productive advantages to the country i.e., stimulates economies of scale, strengthens the linkages between industries and other parts of the national economy, and innovation and technological advances achieved by industrial firms can be used to raise productivity and efficiency of other economic sectors [1].

As in many other developing countries, the Republic of Tajikistan has set a goal to develop its industrial sector. In 2018, in his annual Sate of the Nation Address to the Majlisi Oli of the Republic of Tajikistan, Founder of Peace and National Unity, Leader of the Nation, President of Tajikistan His Excellency Emomali Rahmon, emphasizing the importance of industrial sector in tackling socio-economic issues, and creating more jobs, proclaimed the accelerated industrialization of Tajikistan as country’s fourth national objective (the three others are:  ensuring energy independence, breaking the communication deadlock, an food security), and proposed to increase the share of industrial output in growth domestic product (GDP) to 22 percent by 2030 [2].  In the National Development Strategy of the Republic of Tajikistan for the Period Up To 2030 (NDS-2030) it is forecasted to reach the percentage proposed by the President – around 20-22 percent [3, p.18].   

The industry sector makes up 17,4% of Tajikistan’s GDP of Tajikistan as of 2019 [4].  The significant portion of the industrial output make up the manufacturing (61,7%), and the energy – 23,7%; the rest are extractive (13,9%), and wastewater treatment and drainage, respectively (see Graph 1) [4].

In the first year of Tajikistan’s independence the industrial production amounted to 1 billion U.S. dollars, but in the years that followed till 2000s, due to devastating fratricidal war, the output in this sector declined rapidly and amounted to 0,6 billion USD in 1995, and to 0,25 billion USD in 2000. As a result of reestablishment of peace, political stability, rule of law, economic policies, inflow of capital and technologies, the some of the destroyed factories restored and new ones were established. Thus, gradually the industrial output had upward trend; in 2010 0,8 billion USD, in 2015 1,2, in 2019 1.32, and as of 2020 2.7 billion USD, respectively (see Graph 2) [4].

The role of foreign as well as domestic private and state-owned companies are very crucial for the development of the sector. According to the official statistics the number of enterprises registered in Tajikistan has been on a rise lately. For instance, number of registered enterprises in 1991 was 358, in 2011 - 954, in 2014 – 1090, in 2019 – 2164, and in 2020 – 2274, respectively. Moreover, it is projected that in 2027 the number of registered enterprises will reach 3500 (see Graph 3) [4].

Unfortunately, with the rise of number of registered companies, the business shutdowns are on the rise [5]. Obviously, there are many reasons leading companies to permanently suspend their activities and leave the market. Some experts believe that lack of managerial competences and experiences hinders development of the sector [6]. Often times, adaptation to realities of country, resilience and effective management of enterprise, can allow the company to not only prosper even during strenuous times but also contribute to mid- and long-term economic sustainability, social and economic wellbeing of population and address environmental challenges. In order to ensure that the private as well as state-owned companies should invest in human capital and collaborate with local higher education institutions in training market needed professionals. Besides, it should be the priority for higher education institutions of the Republic of Tajikistan to partner with them so as to prepare and equip students with necessary competence, skills and knowledge so they can run the industrial businesses successfully and expand their activities beyond national boundaries. Since it is important for landlocked and economically dependent Tajikistan to not only satisfy domestic demand but also diversify its export and penetrate more foreign markets as well as adopt international standards, know-how, be able to innovate and compete internationally.

The Tajik State University of Commerce (TSUC) is one of the higher education institutions which has set an objective to contribute its fair share to the Tajik government’s industrial development objectives – development of entrepreneurship in industrial sector and raising effectiveness of enterprise management highlighted in NDS-2030 through introducing a Master's degree programme in management of industrial entrepreneurship in English in close collaboration with European as well as Central Asian partners within the EU funded Management of Industrial Entrepreneurship for Transition Countries (MIETC) Project (Erasmus + Programme) [6]. This project will provide human capital and knowledge which will be a catalyst for sector’s development.  

Within the framework of the Project, TSUC will benefit from exchange of knowledge and expertise, staff and student mobility, and will update its knowledge stock with hands-on value-added trainings and real-world cases for its newly established programme. Additionally, TSUC aims to: (i) co-design Master's degree programme curriculum using the experience and knowledge of partner HEIs and industrial sector, (ii) strengthen partnerships with industrial firms in order to facilitate exchange of knowledge and expertise, (iii) conduct training of faculty staff in European partner institutions and better equip them with necessary skills and knowledge so they can satisfy the needs of students, (iv) offer tailored-courses for industrial firms to train their managers and staff.

Literature

1. Yong, Li. Why industrial development matters now more than ever before [Electronic source]// Industrial Analytics Platform/ United Nations Industrial Development Organization. – May, 2021. URL: https://iap.unido.org/articles/why-industrial-development-matters-now-more-ever
2. State-of-the-Union by the President of the Republic of Tajikistan to the Parliament of the Republic of Tajikistan [Electronic source]// Press Service of President of Republic of Tajikistan. – December, 2018. URL: http://president.tj/en/node/19093
3. National Development Strategy of the Republic of Tajikistan for the Period Up To 2030, (2016). [Electronic source]// Agency of Social Insurance And Pension Under The Government of The Republic of Tajikistan. – p.18. URL: https://nafaka.tj/images/zakoni/new/strategiya_2030_en.pdf
4. Индустриальный Таджикистан: что сделано к 2021 году [Electronic source]// Sputnik News. – March, 2021. URL: https://tj.sputniknews.ru/20210309/industrializaciya-tajikistan-2021-sdelano-1032973496.html
5. More than 17,600 entrepreneurs in Tajikistan shut down their business [Electronic source]// ASIA-Plus. – October, 2020. URL:https://asiaplustj.info/en/news/tajikistan/security/20201020/more-than-17600-entrepreneurs-in-tajikistan-shut-down-their-business
6. Mamadshoev, Marat. Why does Tajikistan need urgent privatization of state-owned enterprises? [Electronic source]// Central Asian Bureau for Analytical Reporting – June, 2021. URL: https://cabar.asia/en/why-does-tajikistan-need-urgent-privatization-of-state-owned-enterprises
7. About MIETC [Electronic source]// MIETC Project. URL: http://www.mietc.unina.it/index.php/about/