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	USAID Information: USAID Country Page USAID Turkmenistan Country Profile (pdf) FY 2009 Congressional Budget Justification Selected Reports from the USAID Document Database Mission Web Site External Links: U.S. State Department Background Notes CIA World Factbook
	Statement of the Administrator Summary of FY 2006 Budget Request Program Highlights Management Improvements USAID Support Budget Operating Expenses Capital Investment Fund Working Capital Fund Operating Expenses, Inspector General Foreign Service Retirement and Disability Fund International Disaster and Famine Assistance Transition Initiatives
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Turkmenistan

The CBJ Profile Program Summary Tables Complete USAID/Turkmenistan Program Please note: All linked documents are in PDF format Objective SO Number FY 2004 FY 2005 FY 2006 Small and Medium Sized Enterprises 120-0131 765 900 624 Energy and Water 120-0161 275 200   Democratic Culture and Institutions 120-0211 1,075 1,200 972 Health and Population 120-0320 1,540 1,680 1,166 Cross-Cutting Programs 120-0420 870 630 438 Transfers   1,175 1,895 2,300 Total (in thousands of dollars) 5,700 6,505 5,500

The Development Challenge: Over the past year, the Government of Turkmenistan has rekindled some cooperation efforts with international organizations, especially in the area of security, but still lacks political will to deal with the developmental challenges faced by its people. Social indicators continue to be alarming. While the Government is making expenditures of marginal public utility, investments in health and education continue to decline. Less than 4,000 students out of a graduating class of about 105,000 were able to enter higher educational institutions last year. Of that, only 32% were women. This does not bode well when approximately 45% of the population is under the age of 25. Only 42% of rural families have access to potable drinking water. Child and infant mortality are alarmingly high and there is little will to tackle the spread of HIV/AIDS. Unemployment continues to be a concern, with some estimates putting it as high as 70% outside of Ashgabat. Brain drain is a real issue as educated workers seek employment opportunities abroad, mainly in Russia, especially since foreign diploma holders are not looked upon fondly. There are only 0.24 internet users per 1,000 people in Turkmenistan. The only internet service provider is the Government-owned telecom, which controls its use. Although satellite television from Russia is tolerated, there are no internal independent media outlets.

When addressing the developmental needs of Turkmenistan, it is important to differentiate between reforming the Government and investing in the people. The citizenry continues to crave engagement by international partners and is building human capacity to advance reforms once a new era dawns on Turkmenistan. Although by nature the Turkmen people are patient and largely non-confrontational, USAID is seeing small examples of advocacy at the local level for the development of society. Investing in those people is the foundation of USAID's assistance program in Turkmenistan. Giving them the tools to create an environment of change is essential. All the while, USAID has substantially limited its assistance to the Government of Turkmenistan (GOT). All programs work directly through private firms or non-governmental organizations (NGOs), both U.S. and local; no funds are given directly to the Government to manage.

The U.S. national interest in Turkmenistan is significant. Turkmenistan is situated in a neighborhood in flux, bordering Afghanistan, Iran, and Uzbekistan. U.S. involvement keeps rogue elements from gaining a foothold. Turkmenistan has been supportive of the war on terror and is particularly important to our campaign in Afghanistan. Although many may consider Turkmenistan a failing state, disengagement would only solidify that. Political will is lacking in Turkmenistan, but the quality of USAID's relationship with the people of Turkmenistan is excellent. USAID has helped many organizations overcome burdensome laws to register as public associations legally able to carry out activities in Turkmenistan. Training efforts in advocacy have led to the development of social partnerships between local associations and their communities, including at times local governments. For example, in a small village in Dashoguz Region, a local association, GEO, teamed with a group of neighbors to address the need for gas lines in their neighborhood. The neighbors subsequently approached local government officials to repair unsuitable and environmentally unsafe lines and extend existing pipelines to cover preschool facilities and far-reaching streets in the village. The local government officials agreed and together GEO, the neighbors, and relevant governmental bodies concluded the project.

The USAID Program: USAID invests in the future generation of leaders in Turkmenistan and focuses on mitigating social challenges the Government fails to address. Although there are some promising human resources in the Government, the system does not reward risk or progress, thus severely limiting the capacity of civil servants to address pressing needs like public health, education, and expansion of the private sector. Meeting the challenges in Turkmenistan necessitates a long-term view with a focus on human capital development. USAID has five strategic objectives in Turkmenistan: democratic culture and citizen advocacy; primary health care; small enterprise development; water and energy management; and cross-cutting activities such as youth and education, gender, anti-corruption, and respect for the rule of law. The majority of FY 2005 funding is to continue support for multi-year initiatives that are ongoing. At the end of the reporting year, the Ministry of Health finally entertained discussions about HIV/AIDS in Turkmenistan and committed to building a program for funding from the Global Fund to Fight AIDS, Tuberculosis, and Malaria. Turkmenistan contributes to the Water for the Poor Presidential Initiative through hydro-meteorological work that focuses on improved water resource management and through assistance to local level water user associations.

Other Program Elements: The Farmer-to-Farmer Program, managed by USAID's Bureau for Democracy, Conflict and Humanitarian Assistance, is active in Turkmenistan. In FY 2004, 15 agricultural specialists worked with Turkmen practitioners to improve the lives of rural citizens. Volunteers worked on youth agriculture association development, crop diversification and processing, and cooperative credit. Other USG programs, such as the Bureau for International Narcotics and Law Enforcement Affairs, Export Control and Related Border Security Assistance, and Defense Security Assistance, continue to collaborate with USAID in areas of mutual interest.

Other Donors: Donor coordination has improved over the past year in Turkmenistan but still lacks focus to mitigate duplication and foster cooperation. The Organization for Security and Cooperation in Europe has taken a leadership role in donor coordination, especially in the areas of democracy and education. USAID fully participates and often adds supporting funds to other multilateral development programs. Overall, development assistance to Turkmenistan continues to be relatively small. Bilateral and multilateral development agencies face the same challenges as USAID. The European Union Technical Assistance to the Commonwealth of Independent States (EU-TACIS) is facing programming cuts. TACIS is focusing on cross-border transportation and trade issues in addition to working with agriculture cooperatives and looking for ways to diversify Turkmenistan's hydrocarbon-dependent natural resource base. World Bank lending has ceased, but the U.N. Children's Fund (UNICEF) continues to support women and children through maternal and child health, educational reform, and other family-related initiatives. USAID funds or co-funds several projects with UNICEF in Turkmenistan, including a ground-breaking study of the causes of infant and child morbidity and mortality in Mary Region. The U.N. Development Program is working on public management, economic reform, and environmental protection. The U.N. High Commissioner for Refugees works with the refugee communities while the International Organization for Migration works on migration issues, including Trafficking in Persons. At this point, it does not appear that trafficking is a major issue in Turkmenistan, but donors are working to solidify legislative acts and train border officials. The United Nations Population Fund works on reproductive health issues.

USAID is the leading bilateral assistance provider in Turkmenistan. Other bilateral donors include the United Kingdom's Department for International Development, GTZ (Germany), and the Turkish TIKA development agency. The Asian Development Bank has a limited presence in Turkmenistan, but is exploring the worthiness of a trans-Afghanistan gas pipeline to ship Turkmen resources to Pakistan. The European Bank for Reconstruction and Development restarted its small/medium enterprise credit line which was suspended for three years for lack of currency conversion, but distribution has been very slow due to bureaucratic delays at the Central Bank.

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