Strategy of Economic Growth: Modernization, Digitization, Investments

 

 

 

 

Programme of social and economic development of Turkmenistan in 2019 – 2025 includes number of strategic directions, first, structural reformation of industrial sectors and service sphere. Great attention in it is paid to support of high technological production. The main objectives also include the reduction of the state owned facilities by privatization.

Speaking at the extended session of the Cabinet of Ministers on February 1 this year, President Gurbanguly Berdimuhamedov noted that the Programme includes changes of the marketing strategy. At the same time, the focus was made on the fact that globalization and integration on international level open big markets of facilities, which allow use dividends from realization of own investment projects comprehensively.

According to the approved Programme, power energy, production and processing of oil and gas, electronics, industry, agriculture, transport and communication, tourism sphere are outlined as the main branches of the economy in the next several years. Transit to digital economy is among strategic goals

Stable development of national economy on modern stage is based on increment of production in all sectors – industrial, agricultural, construction and service spheres.

According to the Ministry of Finances and Economy, it is expected that the growth of the GDP will be 6.3 percent this year. By 2025, this indicator is forecasted to be on 8.2 percent level, increment of the share of service sphere to the GDP up to 45.8 percent, industrial branches – 33.8 percent, construction – 11.5 percent, agriculture 8.9 percent.

According to seven- year programme of the country, it is planned to open 289 investment facilities (253 new and 36 reconstructed facilities). At the same time, 273 of them are production facilities.

22 facilities will be put into operation and modernized in fuel and energy sector in 2019 – 2025, which will diversify the activity of oil and gas complex and increase its export capabilities.

In power energy, it is planned to put seven facilities into operation in coming seven-year period. Opening of new facilities will strengthen potential of the industry, increase growing demands on power energy of national consumers and supply to foreign markets. According to calculations of specialists, the volume of production of electricity will be increased by 17.4 percent and its export by 4.5 percent.

Agrarian policy is aimed at the provision of production abundance, stable growth of agricultural production in the country. in this regard, it is planned to put into operation and modernize 56 facilities in agricultural complex.

Industrial and communication branches are also outlined as the main directions. It is planned to build new and reconstruct existing facilities - 41 investment projects all together.

Production of mineral fertilizers (nitrogen, potassium, phosphorous) will be increased by 39.3 percent while their export by 58.3 percent. In particular, production of potassium fertilizers is expected to grow by four times while its export by 5.7 time in 2015 comparing with 2019.

Considerable increment of chemical, construction material, textile production is forecasted in coming years. Thus, production of sodium sulphate will be increased by 10 times, technical iodine by 2.3 times, sulphuric acid by 2.4 times, construction glass by 42,4 percent, construction blocks by 24.4 percent, knitted and sewing articles by 48.9 percent, cotton fabrics by 16.1 percent.

Establishment of ramified transport and logistic network will increase cargo flow by 10.2 percent. In the result, indicator of export of industrial and communication sector will increase by 29.9 percent in 2019 – 2025.

Complex of measures for development of non-government sector is also planned. The Union of Industrialists and Entrepreneurs plans to open 138 facilities.

Implementation of the Sustainable Development Goals is one of the main directions of non-governmental course. At present time, 148 goals and 175 indicators, which are to be implemented until 2030, are adopted in the country.

Turkmenistan has already achieved significant progress in social and economic sphere since the adoption of the SDGs. Transit to market relations has been accelerated and effective measures for reduction of impacts of the climate change are taken.

As of today, the Sustainable Development Goals are mostly adapted in the government policy and 84 percent of the SDGs were reflected in national and profile programmes.

The achievements in realization of the SDGs have been presented by Turkmenistan in the first Voluntary National Review in the UN Headquarter in New York on July 18, 2019 during high-level political forum “Empowerment of people and provision of comprehensive coverage and equality’.

The Review included the main directions of social and economic development as well as success of the country from the time of adoption of the 2030 Global Agenda. The Chairman and participants of Political forum highly appreciated the efforts of Turkmenistan in achievement of the Sustainable Development Goals.

This document presented cluster goals of 2019 related to qualitative education (Goal No. 4), deserved work and economic growth (8), reduction of inequality (10), combat of climate change (13), peace, justice and effective institutes 917), partnership for sustainable development (17).

The review was supplemented with Goal No. 3 concerning the subjects of health and prosperity. Distinguishing feature of the Voluntary National Report of Turkmenistan is that each section has an analysis of interrelations of aspects of the Goals under review with other objectives of the SDGs.

In general, the country has achieved significant results in achievement of the SDGs both in economic and social spheres as well as in ecological area.

For example, modern medical centres and hospitals are built all around the country, access of the population to wide range of modern medical services on international standard level is provided.

Anti-tobacco activities are carried out, which significantly reduced consumption of tobacco. By the results of the WHO STEPS study, indicator of adult smoking population was 3.4 percent. This is the lowest results in the world.

In education sphere, the country steadily implements reformation, which is aimed at creation of high-technology education environment. New kindergartens and schools meeting all modern requirements were built in all velayats.

At present time, more than 3,200 educational facilities are open in the country. number of students studying in local and foreign high educational institutes is growing every year. Thus, number of university students has increased by 24.3 percent in Turkmenistan in 2015 – 2018.

Having developed production, infrastructural and human potential, Turkmenistan achieved considerable progress and firmly asserted among the most dynamically developing states of the world.

This is indicated by the indicator of the growth of the GDP, which is supported on the level of 6.3 percent. It is forecasted that this indicator will reach 8.2 percent in 2025.

Stable economic growth directly depends on successful implementation of realization of the programmes of improvement of wellbeing of the nation, opening of new work places, enhancement of economic activity of the population. As of today, number of labour resources involved in the economy is 73.1 percent. Gross household income was increased by 17.4 percent in 2018 comparing with 2017 without subsidies and grants in general.

At present, the share of non-government sector (without fuel and energy complex) in the structure of the GDP in equal to 68.5 percent. Volumes of crediting of non-governmental sector have been significantly increased in the last years. This indicator has grown by 1.5 times in 2015 – 2018.

Natural protection sphere is among the main vectors of the government policy. Turkmenistan is a member of the UN Framework Convention of climate change and the Paris Climate Change Treaty.

The country takes measures for adaptation of ecological standards. Construction of Altyn Asyr Turkmen Lake in the Karakum Desert for collection of drainage waters and its recycled use is one of such adaptation measures.

Turkmenistan participates in development of the Action Programme for improvement of ecological, social and economic situation in Aral Sea basin (PASB-4) and the UN special Programme for Aral Sea Basin for solution of water and ecological issues in Central Asia and recovery of the impact of Aral Sea crisis.

At the same time, the UN General Assembly unanimously adopted the Resolution “Cooperation between the United nations and International Fund for Saving of Aral Sea, which was initiated by President Gurbanguly Berdimuhamedov.

Our country takes an active part in international processes and build the dialog with all countries based on the principles of equality, goodwill and mutual benefit. Turkmenistan is also a participant of 47 competent organizations, 150 conventions and agreement as well as a member of 9 Councils, Committees and Commissions of the UN.

Therefore, the work in development of Voluntary National Review allowed evaluating the achieved progress as well as outlining further measures for realization of the SDGs in Turkmenistan.

Speaking at the session of the People’s Council in September this year, Turkmen leader noted that privatization of the state-owned property is a component of our policy. In this regard, this direction has special importance.

This process is implemented in accordance with the Law of Turkmenistan on Denationalization and Privatization of the State-owned Property as well as Resolution of the President of Turkmenistan on Improvement of Denationalization and Privatization of the State-owned Property in Turkmenistan.

The work in this field is carried out based on investment tenders, auctions, addressed realization of privatization objects, sale of object that is used on lease terms and sale of the shares owned by the state via stock market. Profile regulatory and legal base of this sphere is also improved.

The work on opening of the website ‘www.invest.gov.tm’ under the aegis of the Ministry and Finances and Economy is carried out for spread of information about economic reforms in the country including the projects of international significance, attraction of foreign investments.

Programme software of the state registration of legal entities will be procured on tender base and implemented for coordination of such organizations as the Ministry of Finances and Economy, banking institutes, Pension Fund of the Ministry of Labour and Social Protection, Tax Department of the Ministry of Finances and Economy, the State Statistics Committee, establishment of electronic document management on modern level.

Practical measures are taken for procurement and installation of servers, computer hardware, additional equipment, software, which are necessary for development of the budget, administration and macroeconomic forecasts, improvement of payment system of the treasury.

Similar measures are taken for qualitative and timely fulfilment of objectives of the Department of Property Relations and Support of Entrepreneurship, implementation of the database for denationalization and privatization of the state-owned property.

 
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14.11.2019