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Turkmenistan
>> Regional Overview >> Turkmenistan Overview
Program Summary
Previous Years' Activities
2001, 2000, 1999, 1998, 1997
Last updated: 05
Introduction
The U.S. has a strategic and economic interest in Turkmenistan becoming economically viable, politically open, and better integrated into international political and economic institutions. It has long borders with Iran and Afghanistan, as well as close proximity to the Caucasus, the Middle East, and South Asia. As an energy-importing nation, the U.S. is interested in ensuring that Turkmenistan's energy potential is realized. Turkmenistan possesses the world's fourth largest natural gas resources, as well as significant oil reserves. It has the potential to become an important player in world energy markets. However, Turkmenistan is starting to become a closed-state dictatorship, which limits U.S. involvement and opportunities.
Development Challenge
The overall challenge is to strengthen the capability of individuals and small social organizations to sustain themselves through a future executive transition, while maintaining cooperative relationships with bilateral donors in health and education.
Turkmenistan is one of the few Eurasian nations where state control has not been reduced since the breakup of the former Soviet Union. Almost a decade after independence, the Government has still made no demonstrable commitment to economic and democratic reform. The current leadership avoids changes that might entail significant loosening of state control over the economy or rapid political liberalization. It argues that such measures will cause instability and deprive the working class of its livelihood.
There has been little willingness to liberalize prices or free domestic markets. State subsidies and price controls remain on a number of essential goods, justified by the Government as needed to maintain the public standard of living. The state continues its monopoly position on the major agricultural crops, cotton and wheat, subsidizing production inputs and paying farmers minimum returns, well below world market levels. State enterprises still dominate the economy, especially in energy, agriculture, transportation and communications. Efforts to privatize or even commercialize state-owned enterprises are frequently reversed or otherwise discredited. Banks remain firmly state-controlled. The practice of directed credits weakens the banking system. Lack of access to foreign exchange continues to hinder the development of trade, foreign investment and private enterprise. The state-controlled economic structures are not sustainable. Keeping the current system in place has led to mounting foreign debt. The increasing amount of investment in non-productive ventures-such as presidential monuments and other questionable endeavors-adds to an already precarious financial situation.
The degree of state control in political and social spheres continues to grow. No political opposition is allowed and the political processes that do occur are tightly controlled, aimed at consolidating the power of the ruling elite. There is no freedom of the press. Civic or community organizations, which form the base of a dynamic civil society, are discouraged and often harrassed.
Commitment to sound management of natural resources is also questionable. While the Government recently passed very progressive regulations for oil and gas production that ensure health, safety, environmental protection, and energy efficiency, it has done little to implement these regulations. While most of Tukmenistan's water resources originate in Tajikistan, the Government has shown only limited interest in water conservation and transboundary water cooperation.
State-run health and educational services continue to deteriorate, largely because of minimal budgetary support. While there are no reliable national data, it is generally agreed by international observers is that the quality of life for Turkmen citizens has continued to deteriorate since independence. Many, particularly outside the capital, suffer from poor nutrition and disease, especially water-borne and infectious diseases. Women and children, in particular, are at risk.
Partnerships, training and exchanges remain an important component of US assistance. USAID trained over 500 reform-minded government leaders, professionals and active citizens in areas directly related to democracy, health care, and a free-market economy through the Global Training for Development Project in FY 2000. Thirty-one percent of the trainees were women. USAID's successful third-country training allows participants to observe positive reform in other Central Asian Republics.
The program in Turkmenistan takes advantage of a few centrally-managed programs, including the Global Bureau's inter-agency agreement with the Center for Disease Control and the Farmer-to-Farmer program financed through P.L. 480 and managed by the Office of Private and Voluntary Cooperation in the Bureau for Humanitarian Response.
Other Donors
The World Bank has approved a new Country Strategy that gives priority to improving Government's fiscal management as a precondition to any new investments. The European Bank for Reconstruction and Development makes credit available for private sector investments, especially for investments related to agricultural industries and energy production. The European Union (EU) supports improved agricultural production and processing, energy, and private sector development. The United Nations Development Program (UNDP) supports economic reform and management, the health and education sectors, and environmental protection. The United Nations Children's Fund assists with maternal and child care. Other donors include the Asian Development Bank, the Turkish International Cooperation Agency, the Organization for Security and Cooperation in Europe (OSCE), the British Know How Fund, and United Nations High Commission for Refugees. The Canadian International Development Agency and the World Bank's Global Environmental facility support natural resource management through their regional programs.
FY 2002 Program
Pervasive presidential control, an increasingly repressive environment, and a lack of commitment to any reform has caused USAID to limit its economic reform assistance to the training of business leaders and local officials in basic business practices, economic principles, and managerial skills. Special efforts will be made to train and educate the next generation of business leaders and economic policy makers. If the situation changes, USAID would be prepared to respond by assisting with selected economic and financial reforms.
In the area of democracy, USAID will limit assistance to strengthening NGOs and civil society organizations. Despite serious obstacles created by the government, NGOs are still willing to take risks and continue to seek support and cooperation from international organizations. USAID assistance to these groups will focus on "non-political" community mobilization such as water-user groups, social partnerships and professional organizations.
USAID will continue to provide selected training that emphasizes the implementation of environmental policies and introduces new technologies for the management of oil and gas and water resource, including the "next generation" of decision-makers. Demonstration models may be developed to complement this training. Since drought continues to be a problem in Central Asia and Turkmenistan shares water resources with other countries, USAID will continue to support policy dialogue on transboundary water issues.
Health has become one of the most productive areas of cooperation. The Government seems more open-minded toward health reform and is willing to participate in pilot programs to improve the quality and effectiveness of health care. USAID plans to continue its successful initiatives to improve the quality of health care, including maternal and child health, and upgrade clinical and laboratory skills of health professionals to better prevent, diagnose and treat illnesses, including tuberculosis (TB), HIV/AIDS and hepatitis.
Activity Data Sheets
- 120-0131 Improved Environment for the Growth of Small and Medium Enterprises
- 120-0161 Improved Management of Critical Natural Resources, including Energy
- 120-0211 Strengthened Democratic Culture among Citizens and Target Institutions
- 120-031 Human Suffering reduced
- 120-032 Increased Utilization of Quality Primary Health Care for Select Populations
- 120-042 Cross-Cutting
Country Background Information Resources
CIA Factbook
Library of CongressNational Geographic Country Maps
State Dept. Country Information
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Last Updated on: May 29, 2002 |
