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Turkmenistan
Economic Structure
Although Turkmenistan's economic situation has deteriorated
somewhat since 1990, the overall standard of living has not dropped
as dramatically as it has in other former Soviet republics (see
table 10, Appendix). Economic reforms have been modest, and the
majority of businesses remain state-owned. Thanks to government
subsidies, basic food products continue to be relatively affordable
despite inflation. One of the most important modifications in
economic policy took effect in early 1993 when President Niyazov
decreed that natural gas, water, and electricity would be supplied
virtually free of charge to all homes in Turkmenistan for an indefinite
period. Gasoline and other fuels also remain cheap, relative to
neighboring republics. Such economic stability has been possible
because Turkmenistan has a comparatively small population and
it is rich in important resources such as natural gas and oil.
The main blueprint for Turkmenistan's development is the Ten
Years of Prosperity program, which was announced in December 1992.
It calls for a ten-year transition to a market economy, with a
first phase that maintains the Soviet system of planned management
accompanied by extensive social protection programs. The program
envisages development of Turkmenistan's natural resources and
restructuring of industry to provide import substitution.
Data as of March 1996
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