Identifier
Created
Classification
Origin
08ASHGABAT386
2008-03-27 12:19:00
CONFIDENTIAL
Embassy Ashgabat
Cable title:  

TURKMENISTAN: ENTREPRENEURS' MEETING WITH

Tags:  PGOV ECON EAGR TX 
pdf how-to read a cable
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P 271219Z MAR 08
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C O N F I D E N T I A L SECTION 01 OF 02 ASHGABAT 000386 

SIPDIS

SIPDIS

STATE FOR SCA/CEN, EEB
TREASURY FOR BAKER/LANIER
USAID/W FOR EE/AA

E.O. 12958: DECL: 03/27/2018
TAGS: PGOV ECON EAGR TX
SUBJECT: TURKMENISTAN: ENTREPRENEURS' MEETING WITH
PRESIDENT "CONSTRUCTIVE AND OPEN"

REF: ASHGABAT 0370

Classified By: CDA Richard E. Hoagland: 1.4(B),(D).

C O N F I D E N T I A L SECTION 01 OF 02 ASHGABAT 000386

SIPDIS

SIPDIS

STATE FOR SCA/CEN, EEB
TREASURY FOR BAKER/LANIER
USAID/W FOR EE/AA

E.O. 12958: DECL: 03/27/2018
TAGS: PGOV ECON EAGR TX
SUBJECT: TURKMENISTAN: ENTREPRENEURS' MEETING WITH
PRESIDENT "CONSTRUCTIVE AND OPEN"

REF: ASHGABAT 0370

Classified By: CDA Richard E. Hoagland: 1.4(B),(D).


1. (C) SUMMARY: A Turkmen entrepreneur (and Cochran fellow)
who attended President Berdimuhamedov's March 17 announcement
of a new effort to develop private entrepreneurship in
Turkmenistan told an embassy FSN March 25 that the event was
very constructive and open. The entrepreneurs, chosen ahead
of time to attend by the quasi-independent Union of
Entrepreneurs, had a genuine dialogue with the president
about the problems obstructing growth of private business,
including corruption, excessive and obstructive bureaucracy,
and interference by law enforcement officials. The president
seemed to be genuinely interested in hearing what they had to
say, and many of these businessmen have been invited to offer
input into entrepreneur-friendly legislation that
Turkmenistan's parliament is drafting. While Post continues
to believe that it will take many years for Turkmenistan to
develop a broad private sector, it is encouraging to hear
that private businessmen are being consulted on the initial
steps. END SUMMARY.


2. (SBU) As reported reftel, President Berdimuhamedov met
with Turkmenistani entrepreneurs while at the entrepreneurial
products exhibit on March 17 to unveil a new plan to develop
private entrepreneurship in Turkmenistan. Serdar
Chovdurbayev (please protect throughout),a very successful
local cheese producer and graduate of the U.S. Department of
Agriculture's Cochran Fellowship program, told an embassy FSN
that he attended and spoke at the meeting at the invitation
of the Chamber of Commerce, the exhibit organizer. The
Chamber was acting under the direction of the Union of
Entrepreneurs, a so-far quasi-independent civic organization,
which had drawn up the list of invitees.


3. (C) According to Chovdurbayev, entrepreneurs openly spoke
out about problems and obstacles hindering private business
development during their meeting with the president.
Obstacles they cited and discussed at some length included
interference by and bribery on the part of law-enforcement
officials, administrative and bureaucratic obstructionism and
an unreasonably complicated registration procedure. The
president seemed to be genuinely receptive to hearing what
they had to say.


4. (C) The government is now working on drafting a national
plan for development of entrepreneurship. The newly created
Union of Entrepreneurs and Industrialists, which will replace
the old Union of Entrepreneurs, is collecting recommendations
and input from local businessmen on what the plan needs in
order to stimulate private business in Turkmenistan. The
Union will pass these recommendations to the parliament,
which has been tasked with drafting new laws and regulations
to support the plan.


5. (C) Chovdurbayev reported that, in general, the
atmosphere of the exhibit was very contructive. Local
entrepreneurs established contacts with each other hoping to
pave the way for future cooperation (for example, food
producers were able to meet with producers of packing
materials). By contrast, in the past, there was an
atmosphere of cautiousness and mistrust. In general,
according to Chovdurbayev, now there is a great deal of
optimism and hope on the part of local entrepreneurs, and
they are looking forward to at least some gradual
improvements for private business development.


6. (C) COMMENT: Chovdurbayev is an astute and -- by
Turkmenistan's standards -- very successful businessman. He
separately told another embassy contact that one of the

ASHGABAT 00000386 002 OF 002


reasons he is so optimistic is that the president's March 17
meeting offered the first positive movement by the government
in support of entrepreneurs in years. Nevertheless, even he
admitted that, given the need to change attitudes as well as
regulations and laws, it will take tremendous drive and
determination on the president's part to transform his call
for a new development plan into an effective policy.
However, the government, at the moment, seems to be serious
about consulting with entrepreneurs on the new plan. In
fact, as embassy sought to follow up with another of the
successful entrepreneurs who attended the meeting, its
meeting was unexpectedly cancelled because the entrepreneur
had been called to a planning meeting with government
officials. END COMMENT.
HOAGLAND