Turkmenistan

Turkmenistan, formerly known as the Turkmen Soviet Socialist Republic is a country in Central Asia. It has borders with Afghanistan, Iran (Persia), Kazakhstan, Uzbekistan and has a coastline on the Caspian Sea.

Economy

One-half of its irrigated land is planted in cotton, making it the world's 10th-largest producer; and it possesses the world's fifth-largest reserves of natural gas as well as substantial oil resources. In 1994, Russia's refusal to export Turkmen gas to hard currency markets and mounting debts of its major customers in the former Soviet Union for gas deliveries contributed to a sharp fall in industrial production and caused the budget to shift from a surplus to a slight deficit.

Related Topics:
Cotton - Natural gas - Russia - Hard currency - Soviet Union

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Turkmenistan has taken a cautious approach to economic reform, hoping to use gas and cotton sales to sustain its inefficient economy. Privatization goals remain limited. Between 1998 and 2002, Turkmenistan has suffered from the continued lack of adequate export routes for natural gas and from obligations on extensive short-term external debt. At the same time, however, the value of total exports has risen sharply because of higher international oil and gas prices. Prospects in the near future are discouraging because of widespread internal poverty, the burden of foreign debt, and the unwillingness of the government to adopt market-oriented reforms.

Related Topics:
Privatization - Export - Debt - Poverty

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President Niyazov has squandered much of his country's revenue on self-glorification, with cities, Ashgabat in particular, being given extensive renovations whilst the people living outside the capital struggle in conditions of poverty. President Niyazov has pledged free water, electricity and gas, however, shortages are frequent.

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