Identifier
Created
Classification
Origin
09ASHGABAT1660
2009-12-24 07:08:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ashgabat
Cable title:
TURKMENISTAN: LOCALS STRUGGLE ON SMALL SALARIES
how-toVZCZCXRO4860 RR RUEHIK DE RUEHAH #1660 3580708 ZNR UUUUU ZZH R 240708Z DEC 09 FM AMEMBASSY ASHGABAT TO RUEHC/SECSTATE WASHDC 3963 INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE RUCNCIS/CIS COLLECTIVE RUCNMEM/EU MEMBER STATES COLLECTIVE RUEHAK/AMEMBASSY ANKARA 6046 RUEHBJ/AMEMBASSY BEIJING 3740 RUEHKO/AMEMBASSY TOKYO 3599 RUEHIT/AMCONSUL ISTANBUL 4288 RUCNDT/USMISSION USUN NEW YORK 1350 RHMCSUU/CDR USCENTCOM MACDILL AFB FL RUEHVEN/USMISSION USOSCE 4225 RUEAIIA/CIA WASHDC RHEFDIA/DIA WASHDC RHEHNSC/NSC WASHDC RUEKJCS/SECDEF WASHDC RUEKJCS/JOINT STAFF WASHDC RUCPDOC/DEPT OF COMMERCE WASHDC RUEATRS/DEPT OF TREASURY WASHDC RUEHRC/DEPT OF AGRICULTURE WASHDC
UNCLAS ASHGABAT 001660
SENSITIVE
SIPDIS
STATE FOR SCA/CEN
E.O. 12958: N/A
TAGS: EAGR PGOV SOCI TX
SUBJECT: TURKMENISTAN: LOCALS STRUGGLE ON SMALL SALARIES
UNCLAS ASHGABAT 001660
SENSITIVE
SIPDIS
STATE FOR SCA/CEN
E.O. 12958: N/A
TAGS: EAGR PGOV SOCI TX
SUBJECT: TURKMENISTAN: LOCALS STRUGGLE ON SMALL SALARIES
1. (U) Sensitive but unclassified. Not for Public Internet.
2. (U) Despite Turkmenistan's widely published wealth from
hydrocarbon sales, the average salary in Turkmenistan is estimated
to be about $200 per month. The average retirement pension is
$50-$60 per month, and the average welfare benefit is $20 per month.
Effective January 2010, the Government of Turkmenistan (GOTX) will
increase salaries, retirement pensions, welfare benefits and student
stipends by ten percent, but many locals fear the increases will not
cover the costs for essentials, which continue to rise.
3. (SBU) The average Turkmen family spends most of its money on food
and medicine. On average, sixty percent of a Turkmen salary is
spent on food, while the remaining forty percent goes toward other
consumables, clothing, and incidental medical items and services.
Many rural residents are able to decrease their food expenses by
keeping livestock and growing fruit and vegetables in their
backyards. In 1995, the GOTX stopped subsidizing medicine and went
to a fee-for-service system. These fees, combined with the high
cost of imported medicines, make it difficult for Turkmen families
to afford preventive medical care, and they often do not see the
doctor until they are very sick and cheaper home remedies have not
worked. In addition, locals in Ashgabat told us they spend nearly
$100 per child each year (half of an average monthly salary) to buy
mandatory school supplies.
4. (SBU) The Ministry of Finance recently maintained that Turkmen
families spend 1 percent of their salaries on housing and utilities,
including telephone and electricity, but locals we spoke with were
adamant that they spend 2-3 percent of their salaries on utilities.
Turkmen citizens enjoy free natural gas for cooking and heating
their homes, nor are they charged for water. Electricity and
gasoline are free until a person reaches his or her ration limit,
but locals maintain that even if they go over their limit, the costs
for electricity and gas are low. Rent for government-owned
apartments or land on which private homes are located is also
inexpensive. With these social benefits provided by the state, the
GOTX feels justified in paying workers $200-$300 a month.
5. (SBU) To meet the growing prices for food and consumables, local
residents often supplement their family income with additional jobs.
For example, high school and university teachers tutor students in
their free time. Government employees who own vehicles work as
private cab drivers during the weekends, and doctors and nurses
provide private medical services, in addition to their jobs in
public clinics.
6. (SBU) COMMENT: The average Turkmen salary of $200 will only cover
staple foods and the basic clothing and medicinal needs. The
Turkmenistan Government feels that the average salary is sufficient,
given the numerous social benefits that they provide their citizens.
Most locals tell us, however, that they are struggling to make ends
meet. END COMMENT.
CURRAN
SENSITIVE
SIPDIS
STATE FOR SCA/CEN
E.O. 12958: N/A
TAGS: EAGR PGOV SOCI TX
SUBJECT: TURKMENISTAN: LOCALS STRUGGLE ON SMALL SALARIES
1. (U) Sensitive but unclassified. Not for Public Internet.
2. (U) Despite Turkmenistan's widely published wealth from
hydrocarbon sales, the average salary in Turkmenistan is estimated
to be about $200 per month. The average retirement pension is
$50-$60 per month, and the average welfare benefit is $20 per month.
Effective January 2010, the Government of Turkmenistan (GOTX) will
increase salaries, retirement pensions, welfare benefits and student
stipends by ten percent, but many locals fear the increases will not
cover the costs for essentials, which continue to rise.
3. (SBU) The average Turkmen family spends most of its money on food
and medicine. On average, sixty percent of a Turkmen salary is
spent on food, while the remaining forty percent goes toward other
consumables, clothing, and incidental medical items and services.
Many rural residents are able to decrease their food expenses by
keeping livestock and growing fruit and vegetables in their
backyards. In 1995, the GOTX stopped subsidizing medicine and went
to a fee-for-service system. These fees, combined with the high
cost of imported medicines, make it difficult for Turkmen families
to afford preventive medical care, and they often do not see the
doctor until they are very sick and cheaper home remedies have not
worked. In addition, locals in Ashgabat told us they spend nearly
$100 per child each year (half of an average monthly salary) to buy
mandatory school supplies.
4. (SBU) The Ministry of Finance recently maintained that Turkmen
families spend 1 percent of their salaries on housing and utilities,
including telephone and electricity, but locals we spoke with were
adamant that they spend 2-3 percent of their salaries on utilities.
Turkmen citizens enjoy free natural gas for cooking and heating
their homes, nor are they charged for water. Electricity and
gasoline are free until a person reaches his or her ration limit,
but locals maintain that even if they go over their limit, the costs
for electricity and gas are low. Rent for government-owned
apartments or land on which private homes are located is also
inexpensive. With these social benefits provided by the state, the
GOTX feels justified in paying workers $200-$300 a month.
5. (SBU) To meet the growing prices for food and consumables, local
residents often supplement their family income with additional jobs.
For example, high school and university teachers tutor students in
their free time. Government employees who own vehicles work as
private cab drivers during the weekends, and doctors and nurses
provide private medical services, in addition to their jobs in
public clinics.
6. (SBU) COMMENT: The average Turkmen salary of $200 will only cover
staple foods and the basic clothing and medicinal needs. The
Turkmenistan Government feels that the average salary is sufficient,
given the numerous social benefits that they provide their citizens.
Most locals tell us, however, that they are struggling to make ends
meet. END COMMENT.
CURRAN