ABSTRACT
Turkmenistan's economy consists of booming revenues from natural gas exports superimposed on a grossly inefficient domestic economy. Economic prospects depend upon gas revenues and upon successful economic reform to prepare for when gas revenues fail to meet the countries' needs. This paper will first describe Turkmenistan's economic history before 2007, focusing on the economic system established by President Niyazov. The second section analyses the natural gas sector to determine why revenues have soared in the 2000s and to understand the prospects for future gas revenues. The third section analyses steps taken by the new President in 2007 and the early part of 2008, against the backdrop of record-high energy prices and external competition for energy security and control over energy delivery. The final section draws conclusions about Turkmenistan's economic development and prospects, and assesses some implications for the broader Eurasian region.
