There are considerable additional costs associated with employing workers in Tajikistan, which include generous overtime premiums, high annual leave allowances and significant labour taxes and social security contributions. Although severance packages are not particularly burden- some, employers are required to give workers over two months notice for redundancy dismissal, which restricts the ability of investors to react speedily to changes in market conditions. ...There are considerable additional costs associated with employing workers in Tajikistan, which include generous overtime premiums, high annual leave allowances and significant labour taxes and social security contributions. Although severance packages are not particularly burden- some, employers are required to give workers over two months notice for redundancy dismissal, which restricts the ability of investors to react speedily to changes in market conditions. In addition, the productivity of the workforce is poor. Given the considerable time and expense required to train Tajikistani workers to the required standard, this means inves- tors gain little return for the significant expenditure on their workforce. Consequently, Tajikistan is ranked fifth from bottom in Emerging Europe for the Labour Costs pillar of BMI s Labour Market Risk Index, with a score of --.- out of ---..
...Kyrgyzstan s small market size, limited industrial base and remote location mean that it has not developed into a major trading nation. The country s transition to a free market economy in the aftermath of independence from the Soviet Union has been relatively successful, although it lags behind many of its eastern European peers in terms of trade freedom. ...Kyrgyzstan s small market size, limited industrial base and remote location mean that it has not developed into a major trading nation. The country s transition to a free market economy in the aftermath of independence from the Soviet Union has been relatively successful, although it lags behind many of its eastern European peers in terms of trade freedom. Economic growth is primarily predicated on exports of gold deposits and remittances from Kyrgyzstani s working abroad, with domestic productive capacity underdeveloped. There are consequently few opportunities for foreign investors in many industries, although infra- structure and energy are in desperate need of expertise and modernisa- tion. There are few regulatory restrictions on FDI, which the government recognises as essential for economic development, but there are also few incentive schemes offered by the state.
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