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Annual Report 2002 : East and Central Asia
TurkmenistanEconomic performanceTurkmenistan’s GDP growth rate slowed in 2002 to about 8.6%, from more than 20% during the previous year, as a result of weak agriculture sector performance, particularly in cotton output. The 2002 cotton harvest was around 484,000 tons, compared with output of 1.2 million tons in 2001 and a government target of 2.0 million tons for 2002. Despite this, agriculture sector output rose by nearly 10% as a result of increased grain production. The production and export of natural gas remained the mainstay of the economy, and a further increase of 8.9% in exports contributed to GDP growth in 2002. The industry and services sectors also improved their performance. Private sector activity did not increase, except in some joint ventures in textile processing. Inflation was 8.8% due to continued subsidies on basic goods and services. The official exchange rate was pegged at 5,200 manats to one US dollar. The trade balance was positive for the third consecutive year.ADB operationsOperational strategy: An economic report and ADB’s interim operational strategy (IOS) were approved in June 2002. The Turkmenistan Economic Report and IOS focus on three strategic objectives as follows: (i) enhancing human and social development, (ii) supporting sustainable and stable economic growth, and (iii) promoting regional economic cooperation. Turkmenistan
ADB was initially approached by the Turkmenistan Government and subsequently also by the governments of Afghanistan and Pakistan for a technical assistance grant to undertake a feasibility study for a natural gas pipeline for transporting nearly 30 billion cubic meters of Turkmen gas to Pakistan and other markets in Asia. The regional technical assistance for the study was approved in December 2002. Policy dialogue: In 2002, policy dialogue focused on finalizing the IOS. This was followed up by ADB Board members and senior staff who visited Turkmenistan during the year and held initial policy discussions with the authorities, impressing upon them the need to improve data availability and to implement policies for encouraging foreign investment and private sector growth. Loans and technical assistance: No loans were approved in 2002. Two technical assistance totaling $415,000 were approved (see tables 24 and 25 in the Statistical Annex). Project implementation: No loans have been made to Turkmenistan.
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