Use economic mechanisms, international practice and country’s resource potential

President of Turkmenistan Gurbanguly Berdimuhamedov chaired an enlarged sitting of the Cabinet of Ministers to consider the results of the work done in the past nine months of 2008 and the priority issues of national social, economic and cultural development.

The high-ranking law enforcement officials, khykims of the regions and Ashgabat, members of the public organisations and journalists attended the sitting. Opening the sitting the President congratulated all those present on the upcoming 17th anniversary of independence of Turkmenistan and emphasized that the nationwide celebrations should be held at the high level organisation.

Chairman of the State Committee for Statistics K.Mommadov reported on the results of the country’s social and economic development in January-September 2008. In particular, in the past months the GDP made up 160 trillion manats or increased by 23 percent as compared to the same period of 2007. This economic performance was achieved through the growth of indystry – by 37 percent, vconstrcution – by 28 percent, trade – by 24.6 percent. The share of industry in the gross output is 52.4 percent, agrilcutre – 11.5 percent, construction – 5.7, transport and communication – 4.3 percent, trade – 5.4 percent, service industries – 20.7 percent.

As of October 1, 2008 in all farmers associations throughout the country the total number of livetsock is over 2 million heads, sheep – 17.514,400 heads and poultry- 15.788,900 heads.

In eight months of 2008 the total volume of investments in national economy from all sources of financing doubled as compared to the same period of 2007.

The volume of contract construction works increased by 70 percent as compared to the same period of 2007. The volume of retail turnover increased by 24.9 percent as compared to the same period of 2007.

In January-September 2008 the foreign trade turnover increased by 34.7 percent as compared to the same period of 2007. The black ink of foreign trade made up US$ 4.706,700, or increased by 51.7 percent as compared to the same period of 2007.

The average monthly wage in the country is 2,888,100 manats, or increased by 14 percent as compared to the same period of 2007.

Minister of Finance A. Gochiev reported that in eight months of 2008 the economic growth rates made up 108.5 percent that was much higher than the economic growth rates in the developed countries.

Chairman of Board of the Central Bank G. Geklenov reported on the preparations for denomination of the national currency unit and introduction of the denominated currency unit. Informing of the progress of the financial reform and measures aimed at creating incentives for business activity in the country the Chairman said that in the reported period the banking system in the country remained stable in spite of the financial crisis in the world.

The volume of investments in the private sector made up 2.3 trillion manats, or increased by 35 percent as compared to the same period of 2007. The volume of credits given by the commercial banks of Turkmenistan to citizens for buying comfortable housing made up 667 billion manats.

Vice Premier H. Geldimuradov reported on the current state of national economy. In Turkmenistan the stable economic growth was observed in January-September 2008 that was proved by the results achieved. The volume of investments in national economy made up 28.8 trillion manats, or doubled as compared to the same period of 2007. The volume of foreign investments rose 1.9 times.

Commenting on the reports Gurbanguly Berdimuhamedov said that the results achieved in nine months of 2008 testified to the stable growth of national economy and rise in output of products in all sectors. In the period the rate of GDP growth made up 123 percent.

The President said that this year rich harvest of cotton had been grown. The cotton picking campaign was in full swing. Over 70 percent of total yield had been delivered to the receiving points throughout the country.

As compared to the same period of 2007 the volume of investments doubled, the total volume of investments approached US$ 29 billion. Foreign trade turnover considerably increased. In the period the rate of wages increased by 15 percent. The rate of inflation did not exceed the predetermined parameters.

The Turkmen leader said that along with the remarkable achievements there were many problems and shortfalls in the financial sphere that required the serious and consistent work.

The national financial system required further improvement in compliance with the modern realities, Gurbanguly Berdimuhamedov said. The President noted that the Ministry of Finance failed to take strict control of the financial activity in the country. The high-ranking officials of the sectoral ministries and departments poorly monitored the financial performance of the enterprises and organizations including cost management. The Turkmen leader demanded that the heads of the lower agencies and organizations should regularly report to the high-ranking officials of the sectoral ministries and departments who would be responsible for enforcing financial discipline to improve the situation.

The President reprimanded Minister of Finance A. Gochiev and demanded that the shortfalls should be eliminated in the short period. Speaker of the Mejlis A. Nurberdieva reported on the work on further improvement of the national legislation and incorporation of the constitutional amendments and additions to the relevant laws. In particular, the law on the amendments and additions to the law on the elections to the Mejlis of Turkmenistan had been drafted.

Commenting on the report the President focused on the paramount significance of the upcoming elections to the Mejlis. Gurbanguly Berdimuhamedov said that Turkmenistan should show and prove to the world community that after the new Constitution had been adopted further democratization of the society was inconvertible and that should guarantee building of a just, humane state standing guard over the interests of people. Gurbanguly Berdimuhamedov demanded that the elections should be held at the high level of organization and the Central Commission for Elections and Referenda should involve the Parliament, national ministries and departments, khyakimiks and mass media in the work. The Turkmen leader said that the elections should be held in compliance with the law, with participation of international observers.

The President signed the “Law of Turkmenistan on the Elections to the Mejlis of Turkmenistan”. Minister of Agriculture E. Orazgeldiev reported on the realization of the decisions of XX Halk Maslakhaty that had initiated the agricultural reform. Reporting on the progress of the agricultural campaigns the Minister provided the information on the total amount of agricultural works.

The velayat khyakims reported on the progress of the seasonal agricultural works including the winter cattle-breeding campaign and the current situation in the agricultural sector. On behalf of agricultural workers the heads of the regions expressed sincere gratitude to the Turkmen leader for the measures aimed at creating economic incentives for agricultural producers.

The velayat khyakims focused on the projects implemented in the framework of the national programme on improvement of the social and living conditions in rural areas. The pace of housing construction was accelerated through lax loansgiven by the banks to individual builders and enterprises.

Vice Premier M. Akmammedov reported on the results of development of the agro-industrial sector. The Vice Premier focused on the high growth of output of agricultural products. Production of the main kinds of foodstuff had been increased, the financial and economic status of the agro-industrial organizations had been improved.

In accordance with the instructions of the President the work to provide farmers with state-of-the-art agricultural equipment and machines was carried on. In particular, the delivery of 300 Case tractors and Belarusian wheeled and caterpillar tractors, ploughs, cultivators and other machines were negotiated. The pace of development of virgin lands in the newly established agricultural etraps Ruhubelent, Dovletli and Altyn Sakhra was accelerated.

The Vice Premier reported on the measures taken to provide farmers with irrigation water, to store feedstuff for the winter period and on the progress of implementation of the programme on creation of the modern social and economic infrastructure and the programme on development of agro-processing and food industries.

Commenting on the reports Gurbanguly Berdimuhamedov emphasized that to implement the agricultural reform programmes was a task of current importance that required activation of the economic mechanisms, application of the best international practice and implementation of the profound resource potential.

The President said that today the decisions of XX Halk Maslakhaty that had defined the major trends at the first stage of agricultural reform were realized in practice. The Turkmen leader said that the measures taken promoted saturating the domestic food market with high-quality domestically produced food products at the moderate prices.

Noting that this year rich harvest of grain had been growth and the pace of the cotton picking campaign Gurbanguly Berdimuhamedov noted that strict control should be taken of settlement of accounts with agricultural producers for products they had grown.

Focusing on the other important issues of rural development the President emphasized that to increase the profitability of agriculture was a top priority task. In this regard the Turkmen leader instructed the agro-industrial high-ranking officials and the heads of the regions to establish several pilot farmers associations in the regions. These farmers associations would be a platform for conducting research in cultivation of wheat, cotton and other agricultural crops, testing and applying the international achievements in agricultural business management in Turkmenistan taking account the local climatic and soil conditions.

Gurbanguly Berdimuhamedov said that the important tasks set to agricultural sector were to create industrial infrastructure in rural areas, to establish commercial and procurement agencies nearby farmers associations and small agro-processing plants. The President instructed the Ministry of Textile Industry to study the opportunities for construction of the small-scale enterprises producing a broad range of household textiles including silk garments. The Turkmen leader said that the foundation for the welfare of rural people was laid through creating new jobs in rural areas noting that all ministries and departments should contribute to increasing the employment rate in the country.

The President said that the very promising trends in increasing the effectiveness of agricultural sector include establishment of specialized agricultural firms with the closed cycle – from raising crops to manufacturing finished products the President instructed the high-ranking officials of the Balkan Velayat to study the relevant practice, in particular in the farmers associations led by Heroes of Turkmenistan M. Sopyev and S. Rozmetov and establish a similar complex in the western region.

The President noted that each agrofirm should specialize in growing and processing a certain kind of agricultural crops – cotton, wheat, fruit, vegetables, producing a broad range of high-quality products for the domestic and foreign markets. The local climatic conditions were conducive for growing a considerable volume of agricultural products all year round.

Focusing on the importance of applying advanced scientific and technological advances in agricultural production Gurbanguly Berdimuhamedov mentioned such a very promising trend as construction of boiler stations, greenhouses and other facilities that would consume the alternative source of energy, for example, the solar energy.

Farmers associations played a crucial role in implementing the reforms in rural areas. The President said that farmers associations should own land and manage production. All agricultural associations should work as the auxiliary organisations providing farmers associations with all necessary assistance and support.

Specifying the measures aimed at increasing the effectiveness of the national agro-industrial complex Gurbanguly Berdimuhamedov focused on such aspects as efficient use of water resources, increase of crop capacity through applying the advanced agrotechnical technique and introducing effective crop rotation. In this regard emphasis was put on close collaboration of farmers and agrarian scientists, establishment of the agronomy information and technology centres in farmers associaions.

The President instructed Vice Premier M. Akmammedov and the high-ranking officials of the agricultural ministries and departments to elaborate the measures to fulfill the designated tasks in the near future.

Vice Premier T. Tagiev reported on the work done in various sectors of the fuel and energy sector. Emphasis was put on he measures taken to increase oil and gas production, strengthen the material and technical basis, modernize the production infrastructure of the oil and gas enterprises and the progress of the important transport and communication projects. The Vice Premier reported on the progress of the projects on construction of sanatoriums, hotels and other facilities of the resort infrastructure in the Avaza national tourism zone.

Commenting on the report the President noted that the pace of development of the seaside should be accelerated and strict control should be taken of the quality of construction works and environmental security of the construction projects in Avaza.

Gurbanguly Berdimuhamedov emphasized that the Avaza National Project was particularly aimed at effectively implementing the profound natural potential of the Caspian region. The relevant large-scale plans stipulated for further development of wide international co-operation, active attraction of foreign investments in the region that was the major goals of the newly established Committee for Avaza National Tourism Zone

The President ordered to transfer Galkynysh yacht on the balance of the Committee. Then Gurbanguly Berdimuhamedov gave the floor to Jim Gillette, Manager of Gaffney, Cline & Associates Company that had conducted an audit of hydrocarbon reserves in the recently discovered group of deposits Southern Yoloten-Osman and Yashlar field in the Amu Draya River basin in the east of the country.

Expressing gratitude to the Turkmen partners for the confidence granted to the GCA Company the British expert officially announced the results of the independent audit. In accordance with the international system of resources estimation and classification the reserves of Southern Yoloten-Osman were estimated as from 4 to 14 trillion cubic metres that enabled to regard it as the fifth or fourth largest field in the world.

In conclusion the British expert said that the company considered the confidence granted by Turkmenistan great honour and congratulated Gurbanguly Berdimuhamedov and the Turkmen people on the discovery of the unique deposit of gas and wished success in developing it.

Commenting on the presentation the Turkmen leader emphasized that involvement of the independent international company in conducting an audit of oil and gas deposits was conditioned particularly by the desire to provide the necessary guarantees for foreign investors who would collaborate in the large-scale projects on development of deposits and construction of gas pipelines.

The President said that the results of the independent audit proved that our country had the gas reserves substantial for implementing the projects in the fuel and energy sector and congratulated those present on the brilliant evidence of the work done by the Turkmen specialists.

Vice Premier, Minister of Foreign Affairs R. Meredov reported on the implementation of the country’s foreign policy strategy and said that the intense interest worldwide in Turkmenistan was illustrated by the frequent visits of the foreign delegations and businessmen. The effectiveness of the work of the bilateral intergovernmental commission was enhanced. The Turkmen delegations visited the foreign countries on the regular basis to exchange experience

The Minister informed that Gurbanguly Berdimuhamedov’s initiative to ensure security of transnational pipeline infrastructure and Turkmenistan’s proposal to adopt the special UN resolution on security of energy transit presented at the 63rd session of the UN General Assembly had drawn wide response all over the world.

The Minister informed that the new Constitution of Turkmenistan had aroused keen interest worldwide that was reflected in the publications of the world news agencies which mentioned the exceptionally democratic, progressive character of the fundamental law of Turkmenistan.

Touching upon the aspects of training highly qualified personnel for the Ministry of Foreign Affairs the Minister informed that the Institute of International Affairs had admitted the first students on September 1 this year.

Vice Premier M. Yazmuhammedova reported on the international forums including artistic contests, festivals, conferences and exhibitions hosted by the Turkmen capital and the festive arrangements dedicated to the 17th anniversary of independence of Turkmenistan.

Providing some critical remarks on the work of the mass media Gurbanguly Berdimuhamedov demanded that the relevant ministries and departments should bring the work up to the level adequate to the scale and significance of the historic reforms going on in the country.

Vice Premier H. Saparliev reported on the measures taken to improve and develop the national system of science and education Commenting on the report Gurbanguly Berdimuhamedov provided some critical remarks on the work in these spheres. The Turkmen leader said that the ultimate goal was to achieve qualitative development of all branches of science and education, healthcare and sport, youth policy as well as to improve the work to bring up a younger generation. The President reprimanded Vice Premier H. Saparliev.

Vice Premier D. Orazov reported on the progress of the urban development programme. Commenting on the report Gurbanguly Berdimuhamedov demanded that strict control should be taken of the issues of timely putting into operation, the quality of construction work and the period of construction. The President said that facilities put into operation in urban and rural areas should meet the international standards

Vice Premier H. Muhammedov reported the measures taken to develop trade and service industry and textile industry, in particularly the work aimed at enhancing the production infrastructure of this leading sector of the Turkmen economy.

Commenting on the report Gurbanguly Berdimuhamedov touched upon the task to ensure the plenty of products in the country, saturate the domestic market with high-quality foodstuff and demanded that strict control should be taken over the relevant activities. The President focused on the advantageous of poultry farms like that in Baharly Etrap in the Ahal Velayat to be built in the regions of Turkmenistan.

Vice Premier H. Shaguliev reported on the measures taken to develop the sphere of transport and communication. In particular, the Vice Premier informed of the steady tendency in increasing the volume of freight and passenger transportation in the past months.