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29.08.03á11:36

PRIORITIES OUTLOOK
NATIONAL PROGRAM "THE STRATEGY OF ECONOMIC, POLITICAL AND CULTURAL DEVELOPMENT OF TURKMENISTAN UNTIL 2020"
MAIN GOALS AND TASKS FOR THE PERIOD UNTIL 2020

The National Program's strategic goal is to make Turkmenistan a fast growing powerful state, which will ensure social-economic development of the world standards and high living standards of the population.

The National Program provides for three priority tasks:

I. Achieving the level of world's established states, maintaining economic independence of Turkmenistan by high growth rates of the economy, introduction of new technologies and productions and raising labor productivity.

II. Ensuring steady growth of GDP per capita.

III. Maintaining high investment activity and expanding construction of industrial objects.

Fulfilling the priority tasks set in the National Program will ensure raising living standards of the Turkmen citizens by the level of world's established states and make the Turkmen people life happier.

Turkmenistan has a high economic, natural, spiritual and intellectual potential to fulfill these tasks.

The status of positive neutrality, the policy of non-interference in internal affairs of other states as well as other principals defined by the Turkmen Constitution and international commitments of our state became a basis of Turkmenistan's relations with other states of the world community. A foreign policy Conception based on these principals will get further legitimate impetus. It will be strengthened by mutually beneficial economic cooperation of Turkmenistan with other states, aimed, first of all, at strengthening economical power of our state.

Considering the annual population growth rate for the last years due to betterment of demographic situation in the state, a high population growth rate is projected until 2020 by natural population growth. The natural growth will be ensured by substantial birthrate growth and death rate decrease, especially as regards infant mortality. The life expectancy will consequently rise.

The social-economic policy of Turkmenistan until 2020 will keep a condition providing for favorable and equal opportunities for citizens to make profit, widening income bases and achieving high living standards of the population. It will be helped by further development of Turkmenistan in the direction of market reforms, business development and creation of a favorable investment climate.

It is provided that increase in population's real income and stepping up labor motivation, making wages a reliable and major source of income for a worker and his family will, first of all, raise living standards of the population. Within the framework of improving the policy of population's profit making the main task will be a significant wages rise. Raising net wages will enhance labor productivity and its prestige.

Proceeding from this fact a priority direction will be adopting steps to reform the system of wages, enforcing economic interconnection between degree of qualification, labor efficiency of workers and wages.

Turkmenistan's state enterprises workers wages will be raised by 50% by 2005 as compared with 2003. Wages will double every five following years and rise 12 times by 2020 as compared with 2003. It will be achieved by production growth, making good quality products of the world standards and exports growth.

The state will remain a major guarantor of its citizens' social security. The period of free of charge gas, electricity, water and salt consumption by the population of Turkmenistan was extended until 2020 by Decree of the Khalk Maslakhati of Turkmenistan "On providing the population of Turkmenistan with free of charge gas, electricity, water and refined salt". The state financing for these purposes will increase 5.3 times by 2020 as compared with 2000. It is notable that meeting these vital needs costs 60% of a family budget.

The state support for the population to pay council houses rentals will remain in force. Private houses will be exempted from taxes. Thanks to these measures expenditures on council houses public services will have a minimal percentage in the population's consumption expenditures. Price subsidies will be kept for the citizens of Turkmenistan in utilization of public transport and payment for telephone services.

In accordance with the Constitution of Turkmenistan practically the entire population will enjoy free education and health services along with price subsidies.

The GDP per capita will be 66.8 mln. manats in 2020, an 8,3 times increase as compared with 2000. It will be achieved by all-out development of all branches of the economy. The GDP will increase 28,4 times as compared with 2000.

Turkmenistan's economic breakthrough will be based on industrial production growth as much as 26,3 times. The processing industry growth rate will be higher than that of the extractive industry. Amount of agricultural production will increase 17,7 times, construction works - 15,9 times, services - 41,3 times.

Net income growth and improving population's purchasing power will contribute to drastic changes in housekeeping. A supply of products of long utilization such as computers, complex household appliances, cars and other stuff will increase, and the population of Turkmenistan will have more real estate.

Services speedy development will significantly change housekeeping and spare more free time (especially for women) to raise children, for spiritual and intellectual progress of the population.

The population's spending will become more rational in accordance with income growth rate. A share of non-industrial goods and especially services will grow.

The services market will undergo qualitative restructuring. Mass consumption oriented services will be substituted by private sector services for individual consumption as households, communications, tourism and others. Services per capita will increase 83,4 times during projected period.

A significant economic growth will ensure high living standards of the population of Turkmenistan by 2020.

DEVELOPMENT OF MAIN ECONOMY BRANCHES

Electric power development until 2020 will intend to meet the needs of Turkmenistan's population and increase exports to such states as Iran, Turkey, Afghanistan, Pakistan and Central Asian states. Implementation of complex measures to build up energy generating facilities (reconstruction of existing and construction of new electric power stations) is envisaged.

Large-scale works will be carried out in Turkmenistan in the field of geological surveys in order to increase oil and gas output. Kelker, Yolbars, Korpeje, Chekishlar and other onshore and offshore oil fields will be further developed. Putting into operation of some 170 gas fields and development of Shatlyk oil fields is planed.

Production of all types of chemical fertilizers and major products of chemical industry will be increased by means of complex and efficient utilization of natural resources.

A chemical complex on production of chloride potassium, sulphate potassium, hydrade of sodium and chlorine will be built to increase production of chemical fertilizers by 550,000 tons per year. Commissioning a carbomide plant will increase its production by 350,000 tons.

It is targeted to build a plant on production of varnish dyes, sulphuric production units and sulphate ammonium in the projected period.

A technical potential to produce natural sulphur and technical iodine will be raised and modernized. Production of bromide iron is scheduled to start in 2010 in Balkanabat region. Production of various rubbers, including exportable ones, will start to combine chemical industry production.

The engineering and metal-working industries gross production will increase 9 times by 2011-2020. Aluminum and metallurgy plants will be build in Mary region. The textile industry of Turkmenistan will get further expansion and process up to 500,000 tons of cotton to make final products in 2020. An assortment of cotton products will widen to coating velvet, jacquard, curtain fabrics, velvet, velure and other fabrics. It will be made possible by constructing six textile complexes and eight cotton mills in the regions of the country, reconstruction of a cotton mill in Ashgabat, four cotton mills and two stitching plants in Mary and Turkmenabat and a wool preprocessing plant in Mary in 2010-2020. More than $650 mln will be allocated for textile industry development, and additional 70,000 jobs will be set up.

The planed construction of new and reconstruction of existing industrial objects necessitates cement production increase to 4 mln. tons by 2020. Three cement plants construction in Magdanly-Karaluk district of Lebap region and in Balkanabat region with annual total capacity of 2,55 mln. tons is projected. Implementation of metallurgical plants construction projects of subsequent metal processing will make it possible to produce ferroconcretes according to construction industry needs.

A large-scale housing construction will make it possible to have new accommodations of good quality by 2020.

A capacity to produce wall materials - construction bricks - will increase more that six times by 2020 by building new plants on bricks production using new technologies to meet consumers demand.

Agriculture will be developed to meet the population needs in foodstuff and industrial needs in raw materials and expanding export potential. Agricultural production will grow by enhancing land melioration, chemical fertilizers utilization, raising cattle productivity and other methods of the industrial process intensification.

Melioration of lands will by carried out by utilization of Turkmen lake, construction of new and expanding capacity of existing water reservoirs. Besides, a waterworks complex of at "Dostluk" water dumb with a capacity of 1250 mln. cub.m will be constructed.

Wheat production will grow 2,9 times and cotton production - 4,9 times by 2020 as compared with 2000. Cattle will increase 3,1 times and small cattle - 3,6 times in the period from 2000 till 2020.

Around 70% of gross agricultural production will be provided by rise in crops harvest and livestock and poultry productivity.

The targeted crops production will be achieved by 2-3 times harvest of some crops per year by reutilizing land sowed by major crops.

Implementation of agricultural tasks depends largely on reformation of agriculture and creation of favorable conditions for farmers' activities. The state will further pursue a policy of providing support for farmers and set up an economic mechanism on the basis of economic administration methods.

The more farmers from peasants associations will have an opportunity to establish their private enterprises - daikhan (farmer) associations, to earn capital and expand production.

A new system of agricultural production realization will be set up and independence of farmers in producing and selling their production will be widened.

A structure of land allocation will be changed by growth of drenched acreage. Significant changes will take place in the system of land ownership. At present 90% of drenched lands is the state property. A share of state sector will be decreasing on a stage-by-stage basis with simultaneous increase of private owners share in the course of market relations development. A large part of drenched lands will be concentrated in private hands by 2020. The organizational forms of land private ownership will have various legal bases: a form of daikhan (farmer) associations, cooperation, joint stock ventures and other forms.

A transportation system will earn one fifth of the state GDP by 2020. Construction and reconstruction of motorways are under way; new railways of local and international communication will be commissioned. According to state projects Serdar-Etrec-Gudriolum; Mary-Serkhetabat; Tejen-Serakhs; Turkmenbashi-Garabogaz - border with Kazakhstan motorways will be repaired in 2011-2020.
New railways of local and international communication such as North-South transport corridor (border with Kazakhstan - Turkmenbashi and Bereket-Etrek) will be commissioned too. New railway Ashgabat - Karakums - Dashoguz was built and new railway Tejen - Babadaikhan was put into operation as well.

The works on setting up a transportation infrastructure and implementation of the international oil and gas pipelines projects will be continued to provide targeted output of hydrocarbon resources and their delivery to international markets.

Reconstruction, construction and exploitation of new digital auto telephone stations, expanding a network of international lines, increasing the number of telephones and providing new services will continue in the forecasting period.

Modernization of telephone networks including replacement of all auto telephone stations by modern digital equipment, laying down a fiber-optic lines of communication between all populated areas of Turkmenistan will be accomplished.

The needs of the population in telephone communications will be met in full. A total number of telephones will grow 6,1 times to 2250. Telephone services will meet world standards. The population will be able to select any of different telephone types, mobile telephones with satellite services.

A wide range of computer communication services will appear. Associations and organizations will use e-mails to exchange news.

In the social complex health services will meet the world standards due to construction of new hospitals, health houses and diagnostic centers.

The number of schools will increase 21 times, kindergarten - 24 times. Increasing the number of libraries, cinemas and theaters will help raise cultural level of the population.

A strategy of housing construction will be paid a particular attention, which aims at providing the population with European standards of living designed for one man, and comfortable conditions considering a climate situation. Room spaces in houses will be widened by 35 m2 by 2020.

The population income growth, long-term bank credits to citizens for constructing and buying houses will contribute to private housing growth. Its share in the whole housing stock will account for 96,5%.

The state's social-economic development until 2020, further rise in population's income will establish necessary prerequisites and opportunities for every family to choose more comfortable accommodation with a diverse set of public and social services.

Turkmenistan's economic development prospects are interconnected with sustainable internal factors growth: further development of market economy, increasing investments in the economy of Turkmenistan, development of industries, enhancing capital movement from primary industries to processing ones, tangible increase in efficiency and competitiveness of the national producers in the world and internal markets.

Tax policy plays an important role in accelerated development of Turkmenistan's economy. It has to ensure a balance of interests of the state and taxpayers in their financial relations to provide necessary state budget's revenues. It will allow the state to fulfill the tasks of the social-economic development and maintain high growth of incomes of the population.

The banking system of Turkmenistan will ensure financial stability in the country and strengthening the purchasing power of the national currency. The monetary policy of the state will be increasing the manat value and keeping prices stable. Significant strengthening of the manat exchange rate will start in 2010.

A practice of project financing by attracting projected foreign capital will be developed and extensively applied. Credits to enterprises and associations of the private sector will grow. Credits volume for this sector of economy will make 50% of the total credits volume by 2020. Mortgage crediting will be also provided.

A rise in currency revenues flowing in the country due to increase in exports of gas, oil, oil products, processing industry products, including agricultural products will help maintaining the value of manat stable and ensure inflow of additional capital to be invested in the economy.

The total investments from all sources of finance will grow 17,1 times as compared with 2000. Its major part will be put into the real sector of the economy, which makes quick returns on invested capital, as well as into the social spheres.

A high growth of investments in energy complex, agriculture and its infrastructure will continue.

Local investment sources will be an important source of capital investments. These are enterprises and the population's savings, foreign investments.

7798 constructions and industrial objects of all industry branches will be finished in 2010-2020. Considering the annual average population growth rate for the last years the population of Turkmenistan will significantly grow due to natural population growth, namely by substantial birth rate growth and death rate decrease, especially as regards infant mortality. The life expectancy will consequently rise.

In spite of the significance and complexity of the projected measures until 2020, they are quite realizable, because they are made of actual and balanced calculations based on both already achieved objectives and existing powerful economic, natural, spiritual, moral and intellectual potential of Turkmenistan.

The National program until 2020 designed under supervision of Saparmurat Turkmenbashi opens great opportunities for the Turkmen economy to integrate into the world economy.

Approved and adopted by the Khalk Maslakhati Decree at the session in Turkmenbashi on August 15, 2003.

(Published in "Neutral Turkmenistan" newspaper, 27.08.2003

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