Turkmenistan Slips into the Red
Turkmenistan became a Soviet republic in 1925 and like the 15 other former Soviet states in Central Asia received its independence in 1991. President and chief of state, Saparmurat Niyazov retains an almost authoritarian control over the country and opposition is not tolerated - neither is the local arm of the Taliban.
Turkmenistan lies to the north west of Afghanistan. It is a desert country but farms by means of irrigated oases. It is the world's tenth largest producer of cotton. The country also has the fifth largest gas reserves in the world although extraction methods are not completely developed. It is also known for its oil resources.
Turkmenistan has experienced less economic disruption than other former Soviet states. The economy flourished after the country obtained higher prices for oil and gas.
However, Turkmenistan's economy suffered a major setback in 1994 after Russia refused to import its gas. Major customers in the former USSR also could not pay for gas deliveries as their debts mounted. Turkmenistan then slipped "into the red" with a slight economic deficit.
Turkmenistan suffers from the lack of proper export routes for its gas and from extensive short-term external debt. However, total exports increased sharply in 2000 because of higher international oil and gas prices.
In the short term, the country's financial future looks bleak due to widespread poverty and its foreign debt.