ield with a vertical red stripe near the
hoist side, containing five carpet guls (designs used in producing
rugs) stacked above two crossed olive branches similar to the olive
branches on the UN flag; a white crescent moon and five white stars
appear in the upper corner of the field just to the fly side of the
red stripe

Turkmenistan Economy

Economy - overview: Turkmenistan is largely desert country with
intensive agriculture in irrigated oases and huge gas (fifth largest
reserves in the world) and oil resources. One-half of its irrigated
land is planted in cotton, making it the world's tenth largest
producer. Until the end of 1993, Turkmenistan had experienced less
economic disruption than other former Soviet states because its
economy received a boost from higher prices for oil and gas and a
sharp increase in hard currency earnings. In 1994, Russia's refusal
to export Turkmen gas to hard currency markets and mounting debts of
its major customers in the former USSR for gas deliveries
contributed to a sharp fall in industrial production and caused the
budget to shift from a surplus to a slight deficit. With an
authoritarian ex-communist regime in power and a tribally based
social structure, Turkmenistan has taken a cautious approach to
economic reform, hoping to use gas and cotton sales to sustain its
inefficient economy. Privatization goals remain limited. In
1998-2000, Turkmenistan suffered from the continued lack of adequate
export routes for natural gas and from obligations on extensive
short-term external debt. At the same time, however, total exports
rose sharply because of higher international oil and gas prices.
Prospects in the near future are discouraging because of widespread
internal poverty and the burden of foreign debt. IMF assistance
would seem to be necessary, yet the government is not as yet ready
to accept IMF requirements. Turkmenistan's 1999 deal to ship 20
billion cubic meters (bcm) of natural gas through Russia's Gazprom
pipeline helped alleviate the 2000 fiscal shortfall. Inadequate
fiscal restraint and the tenuous nature of Turkmenistan's 2001 gas
deals, combined with a lack of economic reform, will limit progress
in the near term.

GDP: purchasing power parity - $19.6 billion (2000 est.)

GDP - real growth rate: 16% (2000 est.)

GDP - per capita: purchasing power parity - $4,300 (2000 est.)

GDP - composition by sector: agriculture: 25%

industry: 43%

services: 32% (199