Turkmenistan President in Trouble As Economy Suffers

President Gurbanguly Berdimuhamedow’s administration is on the line as low oil prices and a Russian recession drags down the economy. The oil sector in particular is plagued with corruption, and the nation’s inefficient weather prediction system affects such vital sectors as agriculture and transportation. Turkmenistan is located in Central Asia and is bordered by such nations as Iran, Uzbekistan, and Kazakhstan.

President Gurbanguly Berdimuhamedow’s administration is on the line as low oil prices and a Russian recession drags down the economy. The oil sector in particular is plagued with corruption, and the nation’s inefficient weather prediction system affects such vital sectors as agriculture and transportation. Turkmenistan is located in Central Asia and is bordered by such nations as Iran, Uzbekistan, and Kazakhstan.

Certain incumbent leaders in Africa hold onto power as political opposition grows bolder, and Central Asia is following a similar fate, causing authorities to instill repressive measures against dissenters. Turkmenistan has a tainted human rights record, including systematic discrimination against minorities and travel and press restrictions.

Many nations in the region rely on a prosperous economy to maintain power, but an unstable economic climate poses a threat to governments that rule with an iron grip, and Turkmenistan falls in the same category. Turkmenistan has vast oil reserves and one of the most prominent natural gas deposits in the world.

The Central Asian country has enjoyed exponential growth throughout the years when oil and gas production was more lucrative. Additionally, living standards and disposable income increased, but the oil market dip could jeopardize such progress. The state provides crucial utility subsidies to its people, but some advisers have called for an end to entitlements as the economy declines, which could deal an extra blow to people already suffering from the economic malaise, according to The Standard.

The economy’s stagnation resulted in diminished purchasing power as people have less disposable income to pump into the economy. The nation’s currency, the manat, lost significant value in 2015, and inflation has skyrocketed. The country’s troubles boil down to a low-priced energy market, and despite certain advancements, the economy derives a great deal of revenue from the energy sector.

Turkmenistan’s Transition

Turkmenistan’s economy excelled in oil and gas production when under Soviet control, but authorities later diversified the economy to include tourism and agriculture. Turkmenistan gained independence from the Soviet Union in the early 1990s when Saparmurat Niyazov entered office as the first president.

Even though Niyazov separated his country from the defunct Soviet Union, he became one of the most notorious dictators in the world until his death in 2006. Berdimuhamedow succeeded him shortly thereafter and instituted various reforms that included a multi-party democracy and reducing corruption.

Corrupt Governance

Turkmenistan ranks as one of the most corrupt nations on the planet, notes EurasiaNet. Recently, the president fired senior officials tied to various scandals, but the leader’s true resolve in ridding the nation of tainted rule remains in question.

Berdimuhamedow is not as repressive as his predecessor is and he has sought to undo some of the more controversial aspects of Niyazov’s policies, but Turkmenistan is far from an open society and may revert to its dictatorial past if policymakers fail to steer the economy forward.