The development of market economy, its institutions and main driving force entrepreneurship, makes the modern economic strategy of Turkmenistan, which was confirmed by the complex of measures taken this year.
Under the State Program on Support Small and Medium Businesses for 2018-2024 and in accordance with the recommendations of experts from such authoritative international organizations as the IMF, favorable legal, economic, financial and social conditions for the development of entrepreneurship are being created in the country.
As a result, as of beginning of October, the share of private business in the structure of production has reached 66.9 percent.During the first nine months of this year, the total volume of loans issued by the country’s banks to economic entities increased by 15.3 percent compared to the same period last year, while to the non-state sector by 20.5 percent, and to agricultural producers by 41.9 percent.
In a short time, national entrepreneurs actively develop capital-intensive construction business and enter into bigger contracts in this field. They build major facilities including entire living estates of urban development of Ashgabat, comfortable hotels, sport and recreation centres in Avaza National Tourist Zone, industrial facilities and processing plants.
In early February, it was decided to allocate about 1.5 billion US dollars from state funds to the Union of Industrialists and Entrepreneurs of Turkmenistan for procurement of equipment, machinery and building materials from overseas, which are necessary for construction and provision of facilities of new administrative centre of Ahal Velayat.
The resolution was signed on financing of the projects implemented by legal and entities and individual entrepreneurs.According to the document, the State Bank for Foreign Economic Affairs executed credit agreement with the OPEC Fund, which will allocate 10 million US dollars.
These funds will be invested to number of projects of national private goods producers, which products are targeted to export and import substitution.
Measures such as the creation of special land funds for the cultivation of various crops are aimed at reducing the role of the state in agriculture and attracting private producers to this area.
They contribute to the creation of favorable conditions for the development of market relations and entrepreneurship in the agro-industrial complex, increase in the production of wheat, cotton, vegetables and fruits, berries, livestock products, and construction of modern production facilities, livestock complexes, greenhouses.
In accordance with the resolution of the head of state signed at the beginning of the year, the long-term loans will be allocated to entrepreneurs for purchase of agricultural machinery and equipment, as well as hundreds of units of agricultural machinery are being supplied by the American company John Deere.
In early July, the State Bank for Foreign Economic Affairs, on behalf of the Government of Turkmenistan, signed a Loan Agreement with Deere Credit Inc. worth over 42 million US dollars to finance 85 percent of the cost of agricultural machinery and equipment purchased by entrepreneurs from John Deere Walldorf GmbH & Co.KG.
According to the Law of Turkmenistan on Denationalization and Privatization of the State-owned Property, the Cabinet of Ministers approves the list of facilities, which are subject to be denationalized and privatized, upon provision of authorized bodies.
In this regard, the Ministry of Finances and Economy regularly collects and analyses proposals from the ministries, profile departments, administrations of the regions and the city of Ashgabat on this matter.
Entrepreneurship is assigned the role of a locomotive in such important areas of activity as opening of trade houses and joint ventures in other countries to promote domestic goods abroad, development of the electronic industry and other innovative import-substituting and export-oriented industries, and tourism.
Private business is called upon not only to satisfy domestic consumer demand, but also to facilitate the integration of Turkmenistan into the global economy.
New measures in promoting market reforms in Turkmenistan, supporting entrepreneurship were discussed at a working session of the government on economic development on October 21.The session considered the issues related to the provision of financial support to start-up entrepreneurs, attraction of local business to the state procurement system, increasing the profitability of conditions for entrepreneurial activity, formation of small industrial zones in the regions and allocation of additional financial resources for industrialization and development of private entrepreneurship, as well as other concrete steps to comprehensively support small and medium business.
As reported, in 2021, it is planned to take measures to support entrepreneurship, increase the volume of domestic production, and ensure food abundance in domestic markets.
At the same time, privatization of objects and state-owned enterprises, creation of joint-stock companies, and increase the share of private sector in the structure of the national economy of the country and development the securities market will be continued.
In addition, supporting the participation of local investors in financing projects in the supply sector and active use of internal resources to create a system of value-added production were discussed.
It is expected that coordinated work in order to develop entrepreneurship, saturate the domestic market with high-quality locally produced goods, increase the volume of export products, and enhance the role of private business would ensure the growth of the national economy of Turkmenistan, expansion of trade relations with foreign partners.