Although Turkmenistan's economic situation has deteriorated somewhat since 1990, the overall standard of living has not dropped as dramatically as it has in other former Soviet republics. Economic reforms have been modest, and the majority of businesses remain state-owned. Thanks to government subsidies, basic food products continue to be relatively affordable despite inflation. One of the most important modifications in economic policy took effect in early 1993 when President Niyazov decreed that natural gas, water, and electricity would be supplied virtually free of charge to all homes in Turkmenistan for an indefinite period. Gasoline and other fuels also remain cheap, relative to neighboring republics. Such economic stability has been possible because Turkmenistan has a comparatively small population and it is rich in important resources such as natural gas and oil.

The main blueprint for Turkmenistan's development is the Ten Years of Prosperity program, which was announced in December 1992. It calls for a ten-year transition to a market economy, with a first phase that maintains the Soviet system of planned management accompanied by extensive social protection programs. The program envisages development of Turkmenistan's natural resources and restructuring of industry to provide import substitution.

More about the Economy of Turkmenistan.

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Source: U.S. Library of Congress