vertical stripe on the hoist side,
with a claret vertical stripe in between containing five white,
black, and orange carpet guls (an asymmetrical design used in
producing rugs) associated with five different tribes; a white
crescent and five white stars in the upper left corner to the right
of the carpet guls

Economy
-------

Economic overview: Turkmenistan is largely desert country with
nomadic cattle raising, intensive agriculture in irrigated oases,
and huge gas and oil resources. One-half of its irrigated land is
planted in cotton making it the world's tenth largest producer. It
also has the world's fifth largest reserves of natural gas and
substantial oil resources. 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. The
economy remained depressed through 1995 while inflation soared.
Furthermore, 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. For 1996, Turkmenistan will face
continuing constraints on its earnings because of its customers'
inability to pay for their gas and a below average cotton crop in
1995. Turkmenistan is working hard to open new gas export channels
through Iran and Turkey, but these will take many years to realize.

GDP: purchasing power parity - $11.5 billion (1995 estimate as
extrapolated from World Bank estimate for 1994)

GDP real growth rate: -10% (1995 est.)

GDP per capita: $2,820 (1995 est.)

GDP composition by sector:
agriculture: 32.5%
industry: 33.4%
services: 34.1% (1991 est.)

Inflation rate (consumer prices): 25% monthly average (1994 est.)

Labor force: 1.642 million (January 1994)
by occupation: agriculture and forestry 44%, industry and
construction 20%, other 36% (1992)

Unemployment rate: NA%

Budget:
revenues: $NA
expenditures: $NA, including capital expenditures of $N