Does Merger of Strategic Ministries Make Sense?

If reports that the Tajik government plans to merge the energy and industry ministries are confirmed, the new single structure could boost to industrial production and make electricity generation a priority, NBCentralAsia experts say.



Most NBCentralAsia analysts are positive about the idea, arguing that a merger of these two major portfolios could stimulate reforms to both the current departments, improve management in the country’s most profitable sectors, and ensure better coordination of the electricity supply to industrial enterprises.



Economist Hojimuhammad Umarov supports the reported plan because he believes it will result in better management of both energy and industry in a market-driven environment. “Now they [ministries] will only have to deal with policy-making for their sectors,” he said. “They will no longer need the [substantial] overheads that they now have, since they will have significantly fewer things to do.”



Economists say one of the main reasons why Tajik industry has been slow to take off is that the availability of electricity to keep it running is erratic, and the frequent outages come at a great cost. Some NBCentralAsia commentators say this situation will improve after the two ministries merge and begin to run things in a more systematic manner.



However, there is some concern that the focus of the new ministry will be on energy rather than industry, which could mean industrial development loses out.



“I don’t want to downplay the role of the industry ministry, but I am certain the energy sector will be the priority,” said a local economist, noting that the giant aluminium plant which accounts for much of Tajikistan’s industrial production is technically answerable to the government rather than the industry ministry.



Long term, some analysts believe the importance of industrial production to the economy could decline as the country starts exporting electricity and budget resources. The emphasis on electricity generation projects could therefore mean that only the largest industrial enterprises will thrive.



(News Briefing Central Asia draws comment and analysis from a broad range of political observers across the region.)