Ï 2012 chronicles: financial and economic sector
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2012 chronicles: financial and economic sector

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The adoption of the Programme of the President of Turkmenistan on the social and economic development for 2012-2016 has become a significant step on the way of developing the national economy. Its main goal is to diversify the resource, industrial, labor and intellectual potential of the country with the aim to achieve the level of most developed countries. The main objectives of the programme are the growth of the socio-economic parameters, improvement of demographics and ecological indicators, improvement of the quality of life in regions, managerial effectiveness, etc.

Last year the people of Turkmenistan made every effort in order to successfully fulfill the tasks on implementation of a new model of the socially oriented national economy. According to the data, the GDP growth volume in Turkmenistan in 2012 made up 111.1 percent. That is proved by increasing the target figure of this period – up to 138 percent. As a result of systematic industrialization of the national economy, the share of industry in GDP achieved 52 percent. Noting the strong macroeconomic performance of the country, the experts of leading financial institutions predict the further steady progress of Turkmenistan, under which the real GDP growth in the near future will make up 108 percent on average.

The consistent work on strengthening Turkmen manat, increasing the volumes of lending and deposits, widening the range of services, creating a modern system of cashless payments using advanced technologies was carried in 2012 as well as in previous years in accordance with the priority tasks set by President Gurbanguly Berdimuhamedov to the banking system institutions. Great attention was paid to development of mortgage lending, transition of financial statements in banks into international standards, improvement of the professional skills of banking specialists. The role of taxation as an instrument of economic policy has increased in recent years, which is also associated with development of the private sector of the national economy.

2012 is also characterized by a steady increase in the welfare of the Turkmen people. As in previous years, more than 70 percent of the State budget funds were invested to the social sphere. Moreover, salaries, pensions, state allowances and scholarships were increased. As compared to 2011, the average wage in the country increased by 11.2 percent. It should be emphasized that, in accordance with the Decree of the President of Turkmenistan signed in June 2012, starting from from January 1, 2013 the wages of employees of organizations and enterprises, and government benefits will increase by 10 percent and pensions - by 15 percent.

The budget policy pursued by the Turkmen leader provides execution of the state budget with a significant excess of revenues over expenditures for the past few years. Summing up the year of 2012, the revenues of the main financial plan was fulfilled up to 159.3 percent and expenditures - 99.8 percent. It should be noted that in October 2012, Turkmenistan was granted the status of a country with above the average income in the World Bank classification. The adoption of such an important decision was based on the statistical data that support a high stable growth of the national economy.

The Stabilization fund, which focuses on the budgetary surplus, provides a positive influence on the economic situation and stability. These funds are used for social and economic development of Turkmenistan in the form of transfers to implementation of the national programmes and large-scale projects.

Successfully operating private companies have a chance to take advantage of the state support. Another striking confirmation of this was a Resolution of the President of Turkmenistan on allocation of US$ 30 million to the Union of Industrialists and Entrepreneurs of Turkmenistan funds signed by the Turkmen leader in March 2012.

Speaking about the next significant vector of the socio-economic development of Turkmenistan - the investment policy, it should be noted that to date, the country has established an economic system with strong investment potential. Thus, in recent years, the volume of investments into the national economy increased as many as eight times, including foreign investments - 8.6 times.

In accordance with the Programme of the President of Turkmenistan designed for the short term period, more than 200 billion manats of investment funds in the public and private sectors of the economy will be used. It is also envisages construction and renovation of more than 450 industrial facilities and systems. A distinctive feature of investment programmes is their focus on the large-scale diversification and development of manufacturing industries for the future. The "open doors" policy, geographical location of Turkmenistan, social and political stability, high growth rates of the national economy, powerful resource and raw material base and most favorable treatment created in the country for investors contribute to successful solution of the issue.

The work of joint intergovernmental commissions on economic cooperation, bilateral business councils as well as organization of business forums promotes to increasing the volumes of foreign investments. The achieved agreements, bilateral memoranda signed between Turkmenistan and a number of states also provide opportunities for efficient long-term cooperation with the international community in all fields and areas.

Today, Turkmenistan is actively developing trade relations with 103 states worldwide. The volume of the foreign trade turnover makes up 125.9 percent as compared to the same period of 2011.

As in previous years, particular attention was paid to widening fruitful relations with the International Monetary Fund, the World Bank, the European Bank for Reconstruction and Development, the Asian Development Bank, the Islamic Development Bank and other major foreign banks. Moreover, as a member of authoritative international organizations, including the International Monetary Fund and the World Bank, our country makes a significant contribution to developing effective mechanisms to overcome the effects of the global crisis, determine the ways for developing the economic system in the future.

The year of 2012 for Turkmenistan was held under the auspices of the presidency over the Commonwealth of Independent States. In 2012, Turkmenistan was elected to the membership of the Economic and Social Council (ECOSOC) for 2013-2015, one of the six principal organs of the United Nations Organisation, which opens up great opportunities for Turkmenistan's participation in the processes of globalization to address social and economic issues in the regional and global levels.

Speaking about the events taken place in 2012, it should also be mentioned about the complete census of population and housing estate held on December 15-26 in accordance with the Decree of the President of Turkmenistan as well as in line with the decision of the United Nations Organisation to conduct the census of population and housing estate in 2005-2014 in the UN member states.