History, Politics, Economy and Startups in Turkmenistan.

Turkmenistan is an interesting country.
After being part of the Russian Empire (1881–1917) and then counted as the Soviet Union Socialist Republic (1924–1991) Turkmenistan became an independent state ruled by the family of Saparmurad Niyazov. This family has converted Turkmenistan into a very interesting country.
For example, family’s patriarch — Mr. Niyazov senior — had produced the book — Ruhnama — knowledge of which is still obligatory for everybody passing local driving test. However, this book isn’t about how to navigate your car through city’s traffic, it’s about how all Turkmen people must live their lives. In Turkmenistan Ruhnama is officially made equal to The Koran.
Ashgabat’s main square contains the gold statue of Mr.Niyazov, which rotates together with the sun. Niyazov outlawed circuses and operas. They were brought back only in 2006, when the new President reversed some of his predecessor’s policies. However, still all public meetings as well as TV broadcasts must be preceded by vocal recitation of the pledge to Turkmen national values and to Mr. President personally. In 2015 Turkmen authorities launched a satellite into the Earth orbit and immediately issued the law holding citizens from owning satellite ditches.
The major pillars of Turkmen economy are cotton and gas. This country produces more tons of cotton per person than any other countries on Earth. Turkmenistan enjoys fourth largest reserves of natural gas in the world. Turkmen gas produces not only money but also tourists. The famous Door to Hell- a 5,350 square meters artificial crater with burning methane gas inside of it — attracts up to 10,000 visitors yearly.
Current Turkemen President has already initiated some limited reforms to improve political, social and economic situations in his state. However, Turkmenistan still remains a very special and puzzling country for outsiders.
Turkmenistan isn’t particularly suited for high-tech entrepreneurship. Generally speaking, Turkmenistan authorities haven’t been able to create a climate where high-tech founders can feel themselves in their best elements. However, it doesn’t mean that it’s not possible to launch profitable tech businesses there, specifically, in e-commerce. At the same time, the great majority of private SME businesses are concentrated in mostly self-subsistent agriculture industry.
Fixed Internet penetration rate in Turkmenistan is ridiculously low (under 15%), due to government imposed restrictions on telecommunication sector. At the same time, a number of mobile phones is almost equal to country’s population (5 million). That, certainly, creates lucrative niches for mobile commerce and services. However, multiple administrative barriers hold independent entrepreneurs, without strong government connections, from taking a full advantage of those low-competition markets.
And on top of that, Turkmenistan isn’t particularly known for its support of new technologies and innovative projects as well as for its developed scientific researches base. It puts many of promising local tech talent at a significant disadvantage compare to neighboring countries. It also creates a shortage of qualified workforce for fledgling startups.
Business Notes for Startups Founders:
- political climate: not friendly at all;
- economic climate: not friendly;
- regions to focus: locally;
- industries to focus: e-commerce, FinTech, tourism;
- major limitations: over-bureaucratization, economy based on centralized distribution of gaz export revenues, dominance of government controlled enterprises in all major industries, very low Internet penetration rate;
- stimulus: extensive mobile coverage, low-costs, low competition;
- opportunities: to profit from mobile e-commerce opportunities in local niche markets.