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Turkmenistan
Area: 488,100km2
Population: Officially 6.8 million, unofficially 4.8 million (UN estimate, 2005)
Capital City: Ashgabat (population unofficially estimated at approx.500,000)
People: 77% Turkmen, 9% Uzbeks, 7% Russians, 2% Kazakhs, 5% other
Languages: Russian and Turkmen
Religion(s): Sunni Muslim
Currency: Manat
Major political parties: Democratic Party of Turkmenistan
Head of State: Gurbanguly Berdimuhamedov
Prime Minister/Premier: Gurbanguly Berdimuhamedov
Foreign Minister: Rashid Meredov
Membership of international groupings/organisations: Turkmenistan is a member of the OSCE, the UN, the IMF and EBRD. It initialled a Partnership and Co-operation Agreement with the EU in May 1998. The UK and some other EU Partners have not ratified this Agreement. GEOGRAPHY
Turkmenistan is bordered by Iran, Afghanistan, Uzbekistan, Kazakhstan and the Caspian. Mostly desert Turkmenistan is split into five administrative regions (welayatlar). It has the smallest population of the five former Soviet Republics in Central Asia.
POLITICS
Recent Political Developments
Turkmenistan (a Soviet Republic from 1924) gained its independence in October 1991. A new constitution was introduced in May 1992 and amended most recently in March 2007. A more significant amendment was in 2006 when it was altered to allow the then Acting President to stand in the 11 February 2007 presidential elections.
Turkmenistan is effectively a one-party state. The Democratic Party of Turkmenistan is the only registered political party and faces no serious opposition. Democratic reform has been negligible. Prior to his death on 21 December 2006, real power was concentrated in the hands of President Niyazov, who awarded himself the title of 'Turkmenbashi' - leader of the Turkmens. Niyazov was confirmed as President in June 1992 for a period of five years. He secured a five year extension to this term of office (i.e. until 2002) in a referendum in January 1994. In December 1999 he was voted President for life. He had suggested that a successor might take over in 2009, following a series of elections at ascending levels. Local elections have been held and district elections took place on the 3 December 2006. It remains to be seen whether this process advances to the top level. Niyazov died suddenly on 21 December 2006. Although the Constitution stated that Chairman of parliament (the Majlis) would then take over as Acting Head of State, a criminal case was immediately brought against him and he is now believed to be in prison. Gurbanguly Berdimuhamedov was appointed acting President by the supreme legislative body, the People’s Council, and the Constitution was amended to allow him to stand in the subsequent presidential elections. In his manifesto, Berdimuhamedov pledged a number of reforms, notably in the areas of health, education, agriculture, pensions and access to the internet. Presidential elections were held on 11 February 2007 and, for the first time, there was a choice of candidates, although all were from the Democratic Party and all promised to follow Niyazov's policies. Berdimuhamedov was confirmed as President with a claimed 89.23% of the vote. It is yet to be seen how far his government will differ from that of the previous President.
Other Elections
Elections were held to fill the 50 member Turkmen Parliament on 19 December 2004. All of the 131 candidates who contested the elections supported the President. There were no international election observation monitors. In July 2006 the first of a series of elections promised at the 2005 Halk Maslahaty (People's Council) took place, starting with those at local level.
ECONOMY
Basic Economic Facts (for 2005 unless otherwise indicated)
GDP: US\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$ 17.1bn (IMF estimate)
GDP per head: US\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$ 3,406 (IMF estimate)
Annual GDP Growth: 9.6% (IMF estimate)
Inflation: 10.7%
Major Industries: Cotton. Large reserves of oil and gas
Major trading partners: US, Ukraine, Italy, UK, France, Germany, Turkey, Iran, Russia
Aid & development:
Foreign direct investment: US\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$ 330m(EBRD)
Exchange rate:5,200 manat = US\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$1
The late President Niyazov's economic policy was based on his ‘Ten Years of Stability’ programme. Inflation fell from over 1,000% in 1996 to 10.7% in 2005. Niyazov justified his authoritarian political control as the means to maintain stability, while Turkmenistan reaps the benefits of new energy resources to become, in his words, a new Kuwait.
Turkmenistan does have significant long-term energy potential, with the world's fifth largest reserves of natural gas and substantial oil deposits. But most of its gas exports have traditionally gone to countries in the former Soviet Union like Ukraine which pay well below world market prices. The latest agreement gives Russia access to 50 billion cubic metres per annum until 2009 at an improved \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$100 per thousand cubic metres, thus excluding rivals such as Ukraine. Keen to lessen dependence on Russia, Turkmenistan opened a small capacity gas pipeline to Iran in 1997. But preparations with a US-led consortium to build a trans-Caspian gas pipeline halted in 2000.In April 2006 Turkmenistan signed a framework agreement with China to explore for and then export 30 billion cubic metres of natural gas per annum from 2009 at a price yet to be agreed. If this agreement is confirmed Russian monopoly of Turkmen gas exports could be threatened.
However, the balance appears to have swung back in Russia's favour. On 12 May 2007, at a meeting in the port of Turkmenbashy, the Presidents of Turkmenistan, Kazakhstan and Russia reached agreement on the construction of a pipeline running north along the Caspian shore to Russia, through Kazakhstan. Once completed this could initially carry 10 billion cubic metres with a planned eventual capacity of up to 30 billion cubic metres but this is till be confirmed in detailed agreements.
There has been little economic reform and no agreement concluded with the IMF. There has been some privatisation on paper but control remains with the state, the agricultural sector is dominated by cotton production, intensive cotton monoculture and primitive irrigation techniques have created serious environmental problems and a gradual decline in cotton production itself. The government has established a domestic textiles industry, with the aim to process much more of its cotton domestically.
INTERNATIONAL RELATIONS
Turkmenistan's Relations with Neighbours
Turkmenistan has , in the past, had an uneasy relationship with its neighbours, preferring to avoid regional co-operation, there is potential for serious regional disputes over water supplies, environmental issues, drugs trafficking and organised crime. Relations with Uzbekistan worsened after the Turkmen Government accused Uzbekistan of harbouring the opposition leader Shikhmuradov in the Residence of the Uzbek Ambassador in Turkmenistan during the aftermath of the events of 25 November 2002 when there was an attack on President Niyazov's motorcade. There was though the first sign of a gentle thaw in relations on 19 November 2004 when Presidents Niyazov and Karimov met in Bukhara.
Since his election, President Bedymukhammedov has worked to improve relations and co-operation with countries in the region. This encompasses Kazakhstan, whose President visited in May 2007 with President Putin, Azerbaijan whose Prime Minister has twice visited since the death of President Niyazov, and even Uzbekistan whose President has also been invited to visit. Provisional agreement has also been reached on the establishment of a Turkmen Embassy at Baku.
Turkmenistan's Relations with the International Community
Turkmenistan's foreign policy is based on permanent neutrality which was recognised by the United Nations in a UN General Assembly Resolution adopted on 12 December 1995. Turkmenistan deals with the international community through trade-led bilateral relationships. Turkmen participation in international organisations has always been thin.
Former President Niyazov condemned the terrorist attacks on New York on 11 September 2001 and the bombings in London on 7 July 2005. The Turkmens have allowed military overflights for the delivery of humanitarian aid to Afghanistan and have allowed the passage of aid through their territory.
Since the election of President Berdimuhamedov the Government have adopted a more open policy to the outside World. The President’s first visit was to Saudi Arabia in April 2007 where he carried out a haj, and this was followed in a matter of days by a visit to meet President Putin in Moscow. In May Presidents Putin, Nazarbayev of Kazakhstan and Berdimuhamedov met on the Caspian in Turkmenistan. Presidents Yushenko of Ukraine, Nazarbayev, Rahmon of Tajikistan, and Karzai of Afghanistan, attended President Berdimuhamedov’s inauguration in February 2007. The President also undertook a visit to Iran in June 2007 and to China in July 2007.
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