FOREIGN ECONOMIC STRATEGY OF TURKMENISTAN: INNOVATIVE ALGORITHM
Major reforms aimed at diversification and modernization of the economy and giving innovative character to it and transfer to digital platform are carried out at present time according to national and government programmes.
Making solid foundation for further steadfast progress of the country, the reforms provide new opportunities for intensification of beneficial cooperation with all interested foreign partners.
Final indicators of the first half of the year demonstrate that despite the crisis in global economy, stable growth has been provided in the leading sectors of national economy in Turkmenistan owing to taken measures. Work for formation of modern market infrastructure is continued.
Programme of development of foreign economic activity of Turkmenistan in 2020 – 2025, which was approved by the Resolution of the Head of the State in December last year is aimed at successful solution of objectives in this direction.
The Programme specifies the measures for practical implementation of initiatives proposed by the President for stimulation of investment activity, export oriented and import substitutive production, formation of favourable business environment, enhancement of competiveness of national economy, which were supported by competent international organizations.
Steadily pursing open doors policy, our country has established productive contacts with dozens of countries of the world, big foreign companies, which have significant experience and advanced technologies in various spheres. At the same time, special attention is paid to cooperation with competent international financial structures. It includes International Monetary Fund, World Bank, European Bank for Reconstruction and Development, Asian Development Bank, Islamic Development Bank and other.
Geography and range of this cooperation always expands, its contractual and legal base is strengthened. Relations with our economic and trade partners received new dynamics, relations are activated on different levels. President Gurbanguly Berdimuhamedov notes in this context that it is necessary to pay more attention to certain vectors of cooperation with the view on long-term perspective, take thoughtful measures for expansion of export potential of the country its optimum realization.
In this case, bilateral Intergovernmental commissions, working groups, committees and business councils, which review in details current subjects of cooperation related to implementation of reached agreements, opportunities for diversification of trade and economic cooperation, launching of new joint projects have recommended themselves.
It is remarkable that this year, series of meetings and talks between representatives of profile structures of Turkmenistan and other countries have been held in online mode this year, Turkmen delegation has also took part in number of video conference sessions under international and regional organizations and financial institutes, during which issues of economic and investment cooperation have been discussed.
It includes regular session of the Council of the Heads of the Governments of the Commonwealth of Independent States, the 86th session of the CIS Economic Council, ministerial meetings “Central Asia – China”, Central Asia and USA in C5+1 format as well as sessions with representatives of Korean Association of International Trade, secretariat of Central Asia – Republic of Korea Cooperation Forum and trade and industrial chambers of Central Asian countries, Economic Cooperation and Development Organization, heads of the World Bank, National coordinators of Central Asian Regional Economic Cooperation Programme, Asian Development Bank and other.
Significant role in realization of the Programme of development of foreign economic activity is given to cooperation between business structures. Last years, national entrepreneurship, to support of which President Gurbanguly Berdimuhamedov pays special attention, demonstrates growing activity in different branches of the economy.
Stimulation of private sector provides modernization and dynamic development of production sphere, innovative activity of companies and private firms, creation of versatile import substitutive production based on local raw material. Entrepreneurs also increase volumes of high-quality export oriented production increasing its variety as well.
Private companies confidently develops new market segment including foreign market where they are able to sustain competition already today. International business contacts of the Union of Industrialists and Entrepreneurs of Turkmenistan were specified among signed agreements and in established wide relations with foreign partners.
Here, big opportunities for establishment of cooperation are opened by digitization, owing to which is possible to make business and work efficiently with interested business circles from any part of the world.
Positive development dynamics of trade and service sphere is a visual indicator of success of reformation of national economy. Therefore, the trade policy presents one of the main factors of foreign economic relations of Turkmenistan.
Activity of private sector is to give new impulse in the aspect of modernization of technical and resource base and infrastructure of this sphere. Development of entrepreneurship, the Head of the State highlights, is productive way of improvement of competiveness and efficiency of national economy, expansion of its export capabilities.
At the same time, President Gurbanguly Berdimuhamedov always points out the necessity of thoughtful, scientifically based marketing, system analysis of the world market situation for formation of flexible export policy of the country taking into account changing demand, regional and global trends.
Speaking of digitization of the economy, use of various electronic systems and information networks including in trade and taxation, prevention of spread of counterfeit production will support to the integration of our country to international trade and economic and financial relations.
Memorandum of Understanding on strategic partnership between the Ministry of Finances and Economy of Turkmenistan and SICPA SA (Switzerland), which is specialized in protective labelling s to serve to these purposes.
Cooperation with one of the world leaders in this sphere will allow developing and implementing modern technologies in our country, which will be the base for formation of new digital sphere of trust for business relation and development of digital economy in general.
Participation in international exhibitions and fairs gives good opportunities for filling of cooperation with foreign partners with specific content, for attraction of investments, establishment of close business contacts, implementation of joint projects. It is remarkable that expositions of Turkmenistan in such big reviews always raise huge interest of specialists and visitors.
Our country is also a place of regular similar forums, which bring together numerous participants from different countries. Resolution signed by the Head of the State in July this year, which approves relative Strategy for 2020 – 2025 and Action Plan of its implementation, is aimed at improvement of activity for organization of exhibitions, fairs and conferences.
President Gurbanguly Berdimuhamedov notes that status of observer in the World Trade Organization given to Turkmenistan is to support dynamic development of national economy, strengthening of its positions in foreign trade, successful promotion of Turkmen production in the world market, expansion of multilateral cooperation, attraction of foreign investments, and provision of stable course toward continuation of market reforms.
As it was informed this decision has been unanimously adopted by the participants of regular session of the General Council of this competent international organization in the WTO headquarter in Geneva on July 22, 2020, during which the application of our country for obtaining of the above-mentioned status has been reviewed.
The World Trade Organization is a global international structure, which regulates trade relations among its members. It is based on relative agreements, which were signed and ratified by most of the countries in the world. At present, 164 countries are members of the WTO and 25 countries has a status of observer.
WTO regulations are the targets for development and practical implementation of national legislation in trade and economic relations. Stable, forecasted and free trade flows between the state members are the main goal of the organization.
Special Government Commission has been founded and big targeted work has been carried out to bring cooperation with WTO to new level and to receive the above-mentioned status.
Advantages of the status of observer for Turkmenistan are obvious. Together with strengthening of old contacts, it will support to its rapid integration to the world process of production, scientific, technical and cultural development, improvement of business environment and stimulation of competition.
The observer status gives opportunity for participation in official events of WTO and gives access to its main documents as well as to programmes of technical support in trade issues given by the Organization.
Undoubtedly, transport aspect is an important component of steadfast development of international trade and economic relations.
In this case, Turkmenistan invariably holds active position, which is indicated by current initiatives made by President Gurbanguly Berdimuhamedov, which received overall support of the world community. The relevance of the initiatives is also indicated by relative Resolutions adopted by the United Nations General Assembly.
Making its own point of view on this subject, our country follows the vision of important role of Central Asia not only in continental but also in global processes. Occupying favourable geographic location on strategic intersection of routes in North – South and East –West directions in the heart of new Silk Road, Turkmenistan initiates large-scale projects of formation of international ramified transit, transport and logistic infrastructure.
Covering territories of continental Eurasia with entry to sea terminals of Caspian, Black sea, Mediterranean and Baltic regions, South and Southeast Asia, Middle East, Asian Pacific countries, Turkmen state provides the establishment of optimum format of cooperation, which is based on the balance of national and common interests and which is an example of innovative thinking in global geo-economics.
President Gurbanguly Berdimuhamedov noted that such combined system would allow cutting the distance and saving time of cargo delivery bringing economic and trade cooperation between Asian and European countries to new level.
Project of multimodal Afghanistan – Turkmenistan – Azerbaijan – Georgia – Turkey corridor is one of big infrastructural projects, which is carried out together with neighbouring countries. It gives an opportunity for participating countries to diversify their entries to regional and continental markets, which would directly support to strengthening off national economies, expansion of trade and economic relations and increment of trade volumes.
Therefore, integrated, thoroughly thought approach, which takes into account all aspects, modern trends and long-term perspectives, is required for successful implementation of foreign economic strategy of the country and achievement of specific results.
Following the course of beneficial cooperation, neutral Turkmenistan is open for any constructive ideas and proposals, always ready for detailed dialog in interstate and multilateral format, which meets interests of prosperity and sustainable development n regional and global scales.