ASHGABAT, Turkmenistan, September 5. The Asian Development Bank (ADB) has published a new country partnership strategy for Turkmenistan focused on building a competitive, diversified, and knowledge-driven economy, with a strong emphasis on structural reforms and institutional development, Trend reports.
Despite having an abundance of natural resources, Turkmenistan nevertheless confronts several obstacles to growth, such as weak institutions, lax laws, and limited capacity. The approach taken by the ADB will tackle these "soft constraints" by fortifying governmental institutions and pushing through essential reforms. By bringing Turkmenistan into line with contemporary market-based economic principles, this strategy hopes to improve its capacity to interact with international organizations and draw in foreign capital.
ADB will collaborate with Turkmenistan to improve macroeconomic analysis and management. Improve forecasting techniques and comprehend economic processes. The bank will also improve public finance by optimizing revenue, reducing expenditures and subsidies, and managing debt. Effective policymaking requires a national statistical system with updated input-output and supply-use tables, which ADB will assist. The bank can also provide multisector solutions and modern technologies to promote innovation and good governance.
Public administration and procedures will be improved under the new strategy, which includes training programs from the Civil Service Academy and digital transformation initiatives. This strategy emphasizes knowledge partnerships, capacity building, and flexibility, aligning with ADB’s differentiated approach to Upper Middle-Income Countries (UMIC). It aims to solidify ADB's role as a reliable development partner and enhance the quality and scope of its work in Turkmenistan.
The strategy also focuses on regional cooperation, with ADB ready to support Turkmenistan in opening new markets for its energy exports through regional initiatives like TAPI and the Turkmenistan–Uzbekistan–Tajikistan–Afghanistan–Pakistan corridor. Enhancing regional connectivity and reducing trade barriers are also priorities, along with active participation in the CAREC Program to benefit from studies, knowledge sharing, and capacity-building.
Good governance and public sector management are key to development effectiveness. To promote an innovation-based economy and modern institutions, ADB will help digitalize procedures, improve transparency, and improve decision-making. The bank will also enhance capability, implement an e-government procurement system, and improve complaint-handling systems to comply with ADB and other multilateral development bank procurement norms.
"Turkmenistan: Country Partnership Strategy," spanning from 2024 to 2028, will concentrate on three main priorities: advancing a green transition to achieve a sustainable and climate-resilient economy; boosting economic competitiveness through diversification, with a focus on the private sector and human capital development; and promoting structural reforms and institutional development.
The Asian Development Bank (ADB) has been a key partner to Turkmenistan, supporting improvements in transport infrastructure, economic diversification, human capital, and climate action. In 2023, ADB advanced projects in health, finance, and transport, and approved $225,000 for private-sector development and public-private partnership planning. As of December 31, 2023, ADB’s commitments to Turkmenistan include $634 million in loans, grants, and technical assistance, with $592.54 million disbursed to date.