President of Turkmenistan: Our Country’s Political and Legal Status - a Unique and Novel Phenomenon in the World

The proclamation of neutrality as Turkmenistan’s official legal status and the main line of foreign policy was a life-changing decision, President Gurbanguly Berdimuhamedov said, speaking at the People’s Council meeting in Ashgabat.

In global practice, the Turkmen neutrality introduced a novel concept of establishing cooperation and promoting world peace, the head of state stressed.

The unanimously backed and adopted United Nations General Assembly’s Resolution of December 12, 1995 says that the global community “recognizes and supports Turkmenistan’s neutrality”.

The fact that the United Nations General Assembly declared December 12 as International Neutrality Day is seen as the global community’s positive recognition of our independent country’s policy of peace, the President of Turkmenistan stated.

Our country’s political and legal status was a unique and novel phenomenon in the world. The post-independence years have proved that Turkmenistan chose the right path in that difficult transition period, the head of state said.

Turkmenistan has become a coordinating center, guarantor of reliable and effective cooperation, openness and security in Central Asia, President Gurbanguly Berdimuhamedov stated.

 

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The first People’s Council meeting is taking place in the capital’s Ruhyyet Palace and will focus on priority objectives of national development.

 

Speaking at the People’s Council meeting, President Gurbanguly Berdimuhamedov has characterized Turkmenistan’s post-independence period, having noted that the country has dramatically transformed from an agricultural country into an industrialized country.

The main sectors of the economy have been drastically reformed, and first of all, we attached much importance to improving people’s social conditions, the head of state said.

The President offered several examples: twenty-seven years of independence have seen a 350-fold increase in investments in the country’s economy, which stand at almost 500 billion manats or US$ 185 billion. Of the total investments made, 68 percent (US$ 124 billion) went to the productive sector with more than 2,600 production facilities, cultural and social amenities built.

As a result, the country has created a multisectoral economy with the following major sectors: electric power, oil and gas, machine-building, metallurgy, chemical, building, electronics, light and food industries.

While on the subject of domestic business development, the President of Turkmenistan said that the private sector’s ratio in GDP (exclusive of the fuel and energy sector) totals 68 percent. Members of the Union of Industrialists and Entrepreneurs are making a meaningful contribution to home market saturation, economic growth, increased innovative and export potential of the country.

Every year, wages, pensions, state benefit and monthly students’ payments increase by 10 percent.

The greater part of State Budget expenditures account for education, healthcare, public utility services, and pension benefits.

The head of state also said that the country’s rate of GDP growth is expected to hit 6.2 percent this year and next year.

 

Speaking during a meeting of People’s Council in Ashgabat, President Gurbanguly Berdimuhamedov emphasized that the development of the oil and gas sphere was one of the key areas of the economic growth in the years of independence.

The President of Turkmenistan focused on the development of new industries that ensure the diversification of export potential as well as the multidirectional pipeline supply network as an objective of the energy strategy of Turkmenistan.

Large-scale investment projects implemented in recent years, in particular, the construction of the new gas pipelines to China and Iran, as well as the ongoing construction of the Turkmenistan-Afghanistan-Pakistan-India gas pipeline, can be considered as Turkmenistan’s contribution to the development of the international energy cooperation. This, in turn, has a positive impact on the overall situation and development in the Central Asian region, turning it into one of the world's energy centers.

Over the years of independence, the ambitious projects have been implemented to increase the production capacity of the fuel and energy complex, increase the volumes of production, processing and export of energy resources. Thus, about US$ 8 billion was invested into the industrial development of the Galkynysh gas deposit.

At present, the construction of a gas chemical complex with an annual capacity of 386,000 tons of polyethylene and 81,000 tons of polypropylene is under completion in Kiyanly, Balkan Velayat.

The construction of a plant for the production of A-92 gasoline that meets the Euro-5 environmental standards is under completion in Ovadendape, Ahal Velayat.

 

During a meeting of People’s Council, President of Turkmenistan Gurbanguly Berdimuhamedov summed up the economic development of the country specifying the promising areas.

The President of Turkmenistan emphasized that the electric power industry played an important role in strengthening the industrial and export potential of the country. The leader of the nation underlined that seven powerful modern power stations have been built in the regions and the capital of Turkmenistan during the years of independence. One of them - a combined-type power plant has been recently put into operation in the city of Mary.

The fundamental changes have taken place in the construction industry. The glass and glassware production enterprises were put into operation in Ahal Velayat.

Speaking about the gradual transition of the country to the green economy, the head of state focused on the wide use of environmentally safe and energy-conservative technologies.

President Gurbanguly Berdimuhamedov also noted that the chemical industry in the country had been practically restored from scratch. In recent years, the modern enterprises for the production of mineral fertilizers have been built and the assortment of chemical products has been expanded.

The potassium chloride production plant with the annual capacity of 1.4 million tons was built in Lebap Velayat, the plant for the production of 400,000 tons of ammonia and 640,000 tons of carbamide per year was put into operation in Mary Velayat. The construction of a new carbamide production plant with an annual capacity of 1.155 million tons has been completed in the city of Garabogaz.

Currently, a number of enterprises for the production of iodine, bromine and products from them are under construction. As a result, the volumes of the industrial iodine production will significantly increase.

President Gurbanguly Berdimuhamedov said that the transformations in the light industry were aimed at saturating the domestic market with high-quality products of our own production and increasing the export volumes by improving their competitiveness.

 

Speaking during a People’s Council meeting, President Gurbanguly Berdimuhamedov evaluated the development of the economic branches of the country.

The President of Turkmenistan focused on the transport and communications complex.

The President of Turkmenistan noted that the favorable geographic position of our country opened up wide opportunities to develop the large multimodal transportation logistics centres.

The head of state emphasized the major projects implemented in the industry. Among them are the Kazakhstan-Turkmenistan-Iran railway as well as combined transportation of cargo between the CIS and Central Asian countries that opened wide opportunities for our state and neighboring countries.

The commissioning of the multi-profile modern port in Turkmenbashi allowed increasing the volumes of transit traffic several times and strengthening the export potential.

Five railway and automobile bridges were laid accros the Amu Darya river that significantly improves the economy of the Lebap Velayat.

The commissioning of the North-South railway and the Kerky-Imamnazar-Akin railroad created favorable conditions for the transportation of goods from Southern China to the Persian Gulf markets. The system of the internal railway network and its engineering infrastructure were also improved.

The projects on the construction of Turkmenbashi-Farab and Ashgabat-Dashoguz are implemented at present.

A modern airport was built in the city of Turkmenbashi. The construction of a new international airport in Turkmenabat and a runway at the airport of Dashoguz has been completed.

The telecommunications and communications industry have reached the new level.

President Gurbanguly Berdimuhamedov also noted that during the years of independence the first national artificial satellite was launched into orbit. This made it possible to widely apply the most advanced communication technologies in the national economy, to develop digital television and Internet syste

 

President Gurbanguly Berdimuhamedov spoke at the session of the People’s Council of Turkmenistan to take stock of the country’s economic development during the years of independence and to evaluate the current state of social sectors and outline objectives for the near future. 

Speaking of reforms in education, science and technology, the head of state noted that 509 modern educational institutions were functioning in the country at the moment, and universities were provided with the latest systems and multimedia equipment. 

Development of industry and electronics, transition to a digital economy, forming of a stock market, improvement of the market environment, growth of entrepreneurship and strengthening of legislation in our country require that the qualified professionals are available today, said the Turkmen leader. 

The head of state encouraged concentration of efforts on the preparation of educational programs and plans to train the personnel for financial institutions, digital economy, agriculture, industry and electronics, and stressed the importance of training lawyers. 

The head of state also elaborated on healthcare development. Modern clinics and research and treatment centers were built in all regions of the country. Wellness and healthcare facilities were reconstructed. 

Only in recent years the capital saw the commissioning of the Cardiology Center, the Clinical Center for Mother and Child Healthcare, the Neurology Center, the Morphology Center, the Center for Prevention of Extremely Dangerous Infections, the Center for Public Health and Nutrition, the International Training and Research Center and the International Surgery and Endocrinology Center. The children’s hospital in Mary, the Avaza health resort in Turkmenbashi and emergency centers in every province of the country were commissioned recently. 

122 hospitals are currently functioning in the country. The majority were built in rural areas. 

Pharmaceutical industry is being improved as well. High-quality medications and other healthcare products are manufactured from locally available materials. 

Special attention is given to the investment in human capital, said President Gurbanguly Berdimuhamedov and stressed that the investment in education and healthcare would remain among priority areas of the current state policy. 

To create the environment for raising physically and spiritually healthy generations, major sporting and equestrian facilities, stadiums, sports schools, health centers and polyclinics were built in the country. 

5th Asian Games held last year and the recent Amul– Hazar rally raid lauded Turkmenistan as the country capable of organizing major sporting events at the international level. 

I firmly believe that with such outstanding sporting facilities and people’s support the Turkmenistan national team will successfully perform in the future at Asian Games and the summer Olympics, said the head of state.

 

Speaking during a meeting of People’s Council, President Gurbanguly Berdimuhamedov put forward a number of proposals on the reorganization of work of the agro-industrial complex. 

The head of state noted that the developed production infrastructure had been created, the comprehensive measures had been taken to improve lands, increase soil fertility, and introduce new irrigation technologies in the course of reforming the agricultural sector. The President of Turkmenistan expressed dissatisfaction with the results achieved in the agricultural sector. 

The President underlined the importance to reorganize the work of the agro-industrial complex and use all opportunities to get high yields through cardinal changes and renewal of the agricultural management system. In this regard of the leader of the nation put forward a number of proposals for improving the work of the agro-industrial complex. 

Thus, among them is the possibility to transfer agricultural lands from the financially unprofitable peasant associations that have extremely low production indices to other agricultural producers, who are able to work on the ground in the best way. 

It was proposed to create a special land fund in compliance with the legislation and based on the decision taken by a working group to allocate lands to those wishing for a term of 99 years according to the Land Code of Turkmenistan. 

It was also proposed to sow cotton and wheat on 70 percent of the sown lands, and cultivate other crops on the remaining 30 percent. 

The next proposal was to draft the procedures so that the agricultural products manufactured by the peasant associations and agricultural joint-stock companies in excess to contractual obligations under the state order will remain at their disposal, at their request, with the right to sell these products at free prices. 

President Gurbanguly Berdimuhamedov emphasized that it is time to increase the government procurement prices for wheat and cotton as well as to establish incentive payments for the production of high quality seeds that will encourage rural workers to obtain rich harvests. 

It is necessary to provide the legislative support to the wide involvement of private entrepreneurs in the production of agricultural products, the development of the processing industry and the production of high-quality food products for export. 

In order to improve the provision of vegetables and fruits to the population and increase their supply to foreign markets, it is proposed to create a specialized peasant associations and other structures to process agricultural products near the velayat centers. 

Another proposal refers to the provision of preferential bank loans for the purchase of earthmoving equipment and bulldozers for reclamation works - at 1 percent per annum for a period of up to 10 years to the peasant associations and farms, agricultural joint-stock companies and specialized research institutes. 

With the aim to develop the livestock sector and attract private investment, it is necessary to legislatively work out the issues of creating private farms to breed cattle and small ruminants and provide them with land for forage production. 

In addition, President Gurbanguly Berdimuhamedov put forward a proposal to develop a new programme that defines specific areas for the efficient use of lands and water resources of the country.

 

President Gurbanguly Berdimuhamedov spoke at the session of the People’s Council of Turkmenistan and noted that environmental protection, careful management and development of natural resources are priority areas of the state policy.

One clear example of our country’s major contribution to addressing the global problem of preserving the planet’s water resources and to tackling environmental issues is the construction of the Altyn Asyr Turkmen Lake in the Karakum.

Another important issue was raised in the context of the socio-economic activity. In the uneasy transition period, we had introduced housing benefits for the free use of gas, electric energy, water and salt; minimum charges had been imposed for communal services; and other benefits.

But times change. We are living in new economic conditions now. The demand of the day is to effectively use natural resources, to adapt the society, the country and every citizen to the market relations, and this requires a thoughtful approach towards these issues.

Income of the population has increased noticeably and wide business opportunities were created for every family. At the same time, not only the current generation, but also the generations to come must be able to benefit from the country’s natural resources. In this regard, it is reasonable to adjust a payment system for resources that have been made available free of charge: natural gas, electric energy, drinking water, housing and communal services.

President Gurbanguly Berdimuhamedov raised another important issue for consideration of the People’s Council: the primary aspects of socio-economic development in the draft State Budget for 2019.

Maintaining consistently high economic growth rate due to the intensive development of economic sectors and diversification of the economy; the implementation of large-scale investment projects of particular importance and of international and regional significance will be the primary areas here, said the head of state.

The social policy in 2019 will be geared towards enhancing the living standards and improving the quality of life of the population, as well as towards creating opportunities for the promotion of human potential based on efficiency gains in healthcare, education, culture and other activities related to public services.

The crucial task is to ensure social protection of the population through measures to increase wages, pensions and stipends (not less than 10 percent). The financing of the social sphere must be no less than 75-80 percent of the total expenditures of the State budget of the country.

The significant part of capital investments in 2019 will aim to develop the production of such valuable products as polyethylene, polypropylene and high octane fuels retrieved from hydrocarbons.

Major investments will focus on the construction of the Turkmenistan–Afghanistan–Pakistan–India pipeline.

In the upcoming year we will also devote special attention to the development of local power industry, the construction of new and the upgrade of the existing power plants. This will allow boosting export of electricity to the neighboring countries and secure uninterrupted supplies to the domestic consumers.

In chemical industry, foundations will be laid for several industrial enterprises to produce iodine and bromine. The Investment Program for 2019 must also focus on the development of transport and communication. Next year we plan to allocate major funds for the improvement and modernization of the Ashgabat–Turkmenbashi, Ashgabat–Mary–Turkmenabat–Farap and Ashgabat–Dashoguz highways. The successful implementation of the Investment Program of Turkmenistan will guarantee creation of thousands of new jobs.