Turkmenistan is a country that, in the 90s of the 20th century, after the collapse of the Union, passed a rather difficult path. At first there were destruction, then the period of gradual formation began. Turkmenistan, whose standard of living was still desired, began to develop confidently. An important role in this process was played by the people. One of the first republics adopted the Declaration of Sovereignty. In 1995, this state became neutral.
Difficult process of becoming
The first decade of the independent existence of Turkmenistan has gone through complex processes of destruction of the way existing before this period.
All these negative phenomena were accompanied by a lack of economic development with the plunder of industrial enterprises, defense facilities and the energy complex. Life in Turkmenistan during this period was complicated by the redistribution of power and property, accompanied by bloody and fratricidal events.
Factors Contributing to Economic Development
Turkmenistan, whose standard of living has risen substantially thanks to the perseverance and hard work of the people, was able to stop the destructive processes in the economy.
Turkmenistan is a luxuriously gifted place of God. Its main features are sunny and warm climate, gas and oil deposits. The country is characterized by a closed type of economy, expressed in the fact that foreign investment is attracted only to complex deposits. It should be noted that Turkmenistan is a geographically enclosed space, has no access to the sea, and is also surrounded by states in which the political situation often complicates the expansion of gas pipelines. And, of course, a talented people, orientally conservative in the political aspect, but appreciating what they have.
These factors contributed to the economic recovery of the country, namely:
- the modern agricultural sector can annually bring about two million tons of wheat and the same amount of cotton;
- equipping the processing industry with new plants for processing raw cotton or sugar beets;
- in the light industry, new factories of jeans and cotton fabrics appeared;
- Turkmen oil produces lubricants and high-octane gasoline at a modern refinery;
- Thanks to the annual supply of natural gas and oil by the mining industry, Turkmenistan’s demand for energy materials is fully covered.
Turkmenistan through the eyes of a foreigner
Almost a person who has been absent for some time in the country is striking in Turkmenistan. So, with tremendous speed, the landscape, architecture and infrastructure of both the country as a whole and its individual cities are being transformed. There is a fabulous speed in the construction of new high-rise buildings, swimming pools, hospitals, highways, concert halls, tennis courts, business centers, hotels, stadiums, as well as the most beautiful Ashgabat airport made of marble and glass.
Economy of Turkmenistan
Modern Turkmenistan, whose standard of living has improved significantly, is characterized by political calm and stability.
The high rate of economic development contributes to the creation of a warm investment climate. As a result, investments in the development of Turkmenistan by world construction companies.
The economy of Turkmenistan is developing successfully thanks to the significant investments of foreign investors in the energy and mining industries.
In a fairly short period, this country has evolved from a resource base into a rapidly developing state. The modern economy of Turkmenistan confirms its independence. This state is striking in its tranquility in the streets and beneficial external changes.
Today, Turkmenistan (the standard of living of the people) ranks first among the countries of Central Asia and the CIS. The population has the opportunity to use free of charge natural resources: salt, gas, water and light. Air traffic between the cities of Turkmenistan is well developed.
Key macroeconomic indicators
In 2015, the International Monetary Fund forecasts a decrease in GDP growth to 9% (this information is available on the official website of the IMF).
As indicated in this press release, the year 2014 for Turkmenistan was marked by an increase in GDP of 10.3%. At the same time, the state economy remained fairly stable against various shocks in the regional market. Such a life in Turkmenistan was made possible thanks to the active export of hydrocarbon resources and state investments.
The expected decline in GDP this year, according to the IMF, will occur due to a decrease in the level of revenues from the export of natural gas, as well as a decrease in public investment relative to GDP.
Despite the recent depreciation of the national currency, the expected inflation at the end of the year will be about 6.5% (the average indicator of Turkmenistan is 7.5%). This situation will become possible due to the subsequent fall in food prices in the world and the appreciation of the dollar.
Life in Turkmenistan for other nationalities
The 2003 census showed that Turkmens make up only 85% of the total population of the state, the remaining 15% are representatives of other nationalities.
Let us consider in more detail the life of Russians in Turkmenistan. So, in the same 2003, an agreement was signed between Moscow and Ashgabat, according to which Gazprom began to purchase natural gas from Turkmenneftegaz until 2028. However, the same year for Turkmenistan is significant for the termination of the 1993 Agreement, according to which this state unilaterally terminated the possibility of dual citizenship. Despite this fact, the Russian embassy still issued Russian passports later than 2003, explaining this by the lack of ratification of this protocol by the Russian parliament.
In 2013, the situation worsened somewhat, because under the pretext of changing the old passports to the new ones, the “doubles” were asked by the authorities of Turkmenistan to renounce citizenship other than Turkmen. This problem has not been resolved to this day.
The standard of living in Turkmenistan today
The level of modern life in this state has grown significantly in recent years, and this is confirmed by the analysis of this indicator on the example of the capital - Ashgabat.
So, the answer to the question “Is it easy to live in Turkmenistan?” serves as an increase in the number of foreign cars on the roads, as well as expensive mobile phones among residents.
For ordinary people, such an argument may seem slightly naive. However, economists can confidently say that improving the welfare of the population of any state can take place only with an increase in GDP and an increase in per capita income. At the same time, an ordinary person only focuses on the prices of products that are on store shelves. Based on these components, we can say that the average standard of living of the population in Turkmenistan has become higher.
Development priorities
In order to further improve the standard of living in Turkmenistan, solid social guarantees should be provided for the population, which are the basis for the development of economic activity, as well as forms of ownership. The reform of the banking, credit and financial systems of the state should continue, the most favorable conditions for the protection and social support of the population created.
The first decade of the XXI century to ensure the socio-economic development of the country is due to the need to finalize legislation, as well as to develop completely new approaches to regulation in the legal field of economic relations. Therefore, legislative activity should be carried out in the following areas.
Improving the regulatory framework
This is the first direction that should strengthen and develop a market economy. One of the main directions of finalizing the economic bloc was the development of new legislation, which determined the legal framework for the implementation of commercial (entrepreneurial) activities. This circumstance is the need for subsequent legal regulation of the processes of creation and operation of business entities. An important place among them is occupied by enterprises.
Legislation of tax, monetary and budgetary spheres
This is the second direction of improving the regulatory framework. The modern legal framework is distinguished by a certain solidity, and also regulates relations in the financial system of the entire state. The main attention in this process should be paid to improving the efficiency of the state budget as a macroeconomic mechanism for managing the entire economy of the country.
The success of fiscal policy depends on the state tax system. The main principle of legislative work is the codification of the entire tax regulatory framework that Turkmenistan currently has. Scientific life in this can significantly improve the general state of legislation. So, based on a systematic study of various taxes and fees, as well as methods and forms of ensuring their payment to the budget, a unified system for the formation, collection and approval of all mandatory payments should be developed and legislated.
