Agrarian reform: more private enterprises and jobs
April 01, 2018 | 10:15 |321
The agricultural sector should become the base to develop the small and medium-sized businesses. Private investment should be the main source of creation of new agricultural enterprises and jobs, President Berdimuhamedov said at the recent meeting with the deputies of Mejlis on new convocation. The head of state also said about the boundless export opportunities of the industry, noting that it is necessary to improve the legal basis for stimulating the growth of agricultural products demanded in world markets. The current trend in the world economy contributes to the fact that local brands and domestic private companies that produce high quality goods at a price which is much more attractive than foreign ones, occupy an increasing share on the domestic food market in Turkmenistan. Entrepreneurs already produce a significant part of the agricultural production. The Union of Industrialists and Entrepreneurs (UIET) that created ten years ago played a significant role in formation of a new economy of the country. Over these years, private companies have taken a leading position in the construction industry, displacing the majority of foreign developers from the market, as well as in the production of electronic products, manufactured goods, and furniture.Oleg VINOKUROV
In addition, the legislative base to promote reforms in the agricultural industry has been worked out, as well as conditions for the formation of large private agricultural companies are being created. The uncoordinated branch departments are merged into a single state agrarian ministry.
This state regulator is intended to become a “one-stop service” for those working in the agricultural complex, capable to solve effectively land and water use issues. The national economy has the successful experience of privatization of whole industries with a significant increase in efficiency. The vivid example of this in the agro-industrial sector is poultry farming.
Private companies and large farm enterprises work in the village in parallel with the system of the farmers associations, which, in fact, combine production and social functions, providing a financial basis for the existence of a number of industries. They serve as intermediaries between agricultural workers, tenant farmers, the state and large customers of agricultural products. They contribute to distribute the land for rent and the water resources among the farmers as well as the orders for the cultivation of wheat and cotton necessary for the country, and a number of other crops.
The next task of the agrarian reform in Turkmenistan is to find the most effective ways of transition of farmers associations to private form of ownership with a reduction of production price, the introduction of rational water use and the growth in the number of jobs. At that, the world experience of successful cooperation of agricultural producers and local features will be taken into account.
How to transform the farmers associations? This issue will be considered at the upcoming autumn meeting of the members of Halk Maslahaty – People's Council of Turkmenistan, where the main tasks for the nearest future will be set up.
