Identifier
Created
Classification
Origin
07ASHGABAT1015
2007-09-24 11:37:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ashgabat
Cable title:  

TURKMENISTAN: WORLD BANK CAUTIOUSLY LOOKING AT

Tags:  PREL EAID EFIN IBRD TX 
pdf how-to read a cable
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ZNR UUUUU ZZH
P 241137Z SEP 07
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC PRIORITY 9421
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UNCLAS ASHGABAT 001015 

SIPDIS

SENSITIVE
SIPDIS

STATE FOR SCA/CEN, EUR/ACE, EEB

E.O. 12958: N/A
TAGS: PREL EAID EFIN IBRD TX
SUBJECT: TURKMENISTAN: WORLD BANK CAUTIOUSLY LOOKING AT
RE-ENGAGING


UNCLAS ASHGABAT 001015

SIPDIS

SENSITIVE
SIPDIS

STATE FOR SCA/CEN, EUR/ACE, EEB

E.O. 12958: N/A
TAGS: PREL EAID EFIN IBRD TX
SUBJECT: TURKMENISTAN: WORLD BANK CAUTIOUSLY LOOKING AT
RE-ENGAGING



1. (U) Sensitive but unclassified. Not for public Internet.


2. (SBU) The World Bank's Bishkek-based Country Manager for
Turkmenistan, Roger Robinson, told the Charge September 24
that he was in Ashgabat to look for ways the World Bank can
re-engage with the Government of Turkmenistan. In recent
years, the World Bank, bound by its mandate and former
President Niyazov's economic policy, has been forced to limit
its exposure in Turkmenistan to a $1.5 million avian
influenza project and low-level assistance in issues such as
money-laundering. However, the World Bank hopes that
President Gurbanguly Berdimuhamedov's government will
institute reforms that will allow the bank to expand its
activity. The main problem, he and the Charge agreed, was
maintaining realistic expectations for how quickly reform
could take place.


3. (SBU) Robinson said the World Bank wishes to focus on
promoting engagement in relatively uncontroversial areas in
which the Government of Turkmenistan is most interested in
cooperation, such as assistance in funding pension and
healthcare reform (Robinson noted that officials in the
Social Welfare ministry did not understand the modeling
information they were given by the World Bank),banking
supervision, and institutional capacity-building. While the
World Bank does not want to embarrass the Government of
Turkmenistan, and, in fact, will seek initially to avoid
engaging in controversial sectors, the bank would have to be
objective in pointing out shortcomings in existing practices.
For example, generating more open and accurate statistics is
a necessary prerequisite for working with the Government of
Turkmenistan on refining national accounts on small and
medium-scale economic activity, another area of potential
assistance in which the government has expressed interest.
Robinson asked for U.S. assistance in passing the word to
Deputy Chairman of the Cabinet of Ministers/Foreign Minister
Rashit Meredov and others that the bank's call for changes
was focused on helping Turkmenistan reach international
standards, rather than on embarrassing it.


4. (SBU) COMMENT: With practically every aspect of
Turkmenistan's economic and financial sectors in major need
of reform, there is more work here than any single donor can
manage. It is good news that the World Bank is considering
re-engagement, but better coordination among donors will be
an essential prerequisite to ensure a unified message and to
avoid project duplication.
HOAGLAND