With the seven-year development for the period 2019-2025 decisively in motion, the economy of Turkmenistan has entered a new phase of development.
The growth rate of GDP is projected to reach 8.2% by 2025. The share of industry would be 33.8% of the GDP, agriculture 8.9%, construction 11.5%, and services sector 45.8%.
The concept of digital economy envisaged under the development plan is already being rolled out in manageable steps. The role of innovation and technology in the economic development is strengthening.
The total volume of investments in 2019-2025 will be Manat 229.3 billion, where 91.3 percent or Manat 209.2 billion will be allocated for the production sector.
The total volume of foreign trade in the period of the plan implementation will be USD 135.2 billion with the export component of USD 84.1 billion and import part USD 51.1 billion.
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In synch with the goals of the seven-year development plan, the dynamics of the bilateral and multilateral partnership of Turkmenistan are also changing.
In bilateral partnership, the recent examples are the deeper and closer interaction with Korea, Japan, and Russia. In multilateral partnership, the most prominent examples are the Turkmenistan-Afghanistan-Pakistan corridor which includes the TAPI gas pipeline, TAP electricity transmission line and fiber optic connection, and the Lapiz Lazuli Corridor.
In order to determine the state of economy of Turkmenistan and the new and emerging potential for partnership, it would be useful to interpret the latest developments in the bilateral and multilateral partnerships of Turkmenistan.
Even though the partnership processes with Korea, Japan, and Russia are unique in their own ways, there are some common strands, which can be described as template:
- Identification of compatibilities between resources and know-how
- Identification of projects that can convert resources to value-added products
- Acquisition of technologies
- Enhancement of knowledge base through education, training, and exchange of experience
- Joint work in targeting the export markets
- Building rapport at all levels
- Use of joint commission as the main platform for the planning and execution of partnership elements
Before looking closely at the recent developments in bilateral interaction with Korea, Japan, and Russia it would be important to underline that the resource-base is not only intact but more discoveries are being made, particularly in the hydrocarbon sector.
Together with this, there is the pronounced stress on shifting away from the economic model based on the export of raw resources – the rentier economy. The stated objective is to broaden the base of the economy and attain across-the-board self sufficiency to protect against the artificial shocks emanating relentlessly, and perhaps systematically, from the distant capitals.
The first and most recent example worth studying is the visit of President Moon Jae-in of Korea to Turkmenistan. /// nCa, 19 April 2019
To be continued . . .