Compare and critically evaluate the importance of political factors in Tajikistan and Uzbekistan

Write a report to compare and critically evaluate the importance of

economic, social, political, and historical factors of two different countries (

Tajikistan & Uzbekistan) as they affect the ability of foreign firms to

enter and successfully participate in the countries’ economies.

A Comparison of Political Factors: Tajikistan vs. Uzbekistan

In the highly globalized world, there is hardly any country whose economy can progress without

foreign direct investment (FDI). Even though, a country may be endowed with a vast wealth of

natural resources, foreign investment enables it to diversify its economy and thus make better its

balance of trade. Given the importance of foreign investment, a country’s government of the

day must consistently create an enabling environment in order to attract foreign direct investors

(Mrak 2000; Tamer 2009). This is done by ensuring that there are favorable political, social and

economic conditions so as to win the confidence of foreign investors who usually risk colossal

amounts of financial and infrastructural resources. This is a comparison of political factors in

Tajikistan and Uzbekistan that affect the ability of foreign firms to enter and successfully

participate in the countries’ economies. Tajikistani is located in Central Asia. It is bordered by

four countries including Afghanistan on the southern side, Kyrgyzstan on the northern side,

Uzbekistan on the western side, and China on the eastern side. Tajik are the largest ethnic group

of Tajikistan’s population. Tajikistani is a pseudo-democracy with a military that is under strict

control of the government. Although, the country holds regular Parliamentary and Presidential

elections, it is primarily a one dominant party system. The People’s Democratic Party of

Tajikistan (PDPT) undemocratically dominates the country’s politics. Uzbekistan is one of the

only two doubly landlocked countries worldwide. It is also located in Central Asia.

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