THE IMPACT OF FREE ECONOMIC ZONE

The development of cross border international trade, economic liberalization and relocation of manufacturing installations to economical areas in search of competitive advantages, the term free economic zone was introduced. A free economic zone, a subcategory of special economic zone, is a designated territory where goods can be introduced free of import duty, other charges such as taxes and commercial policy measures to encourage economic activity. Free economic zones are usually settled around international airports, major seaports or close to the borderlines between various countries to facilitate faster movement of goods. The major objective of this free economic zone is to boost exports, diversification of the economy and creation of employment opportunities for local labour force allowing them to take part in competitions of international level. There are more than 25 types of free economic zones in the world and being totally up to 2000 determines how of importance it is in the role of economic growth of the country.

From the very first days of our Independence, the development of the economic conditions of Turkmenistan is being carried out based on the national and state programs for short and long-term periods. The indisputable social-economic conditions in the world and in our Motherland shows that the free economic zones encompass all the great opportunities in solving the important questions of the country.

In this day and age, it is a usual case for the countries to look for the better ways in order to develop their economic circumstances  and adapt into the effects of outside factors and the growth of economic changes because as the world experience witnesses, only the countries which are able to accommodate into the consequences of external conditions are successfully going forward in the spheres of economy. The Council of Elders held on October 9, 2017 became one of the important events in the life of our beloved state and society. In the national conference which included tasks for positive socio-economic and democratic transformations and the further comprehensive development of our country was discussed and passed the concept of the law on free economic zones, which defines the legal economic and organizational foundations of free economic zones  aimed at developing the country’s regions, creating additional jobs, attracting foreign investment.

As seen from the world experience the creation of new employments, importation of goods from abroad and the establishment of modern technologies in the field of manufacture are some reasons why supplementing free economic zones is advantageous. In the country under the leadership of our President Gurbanguly Berdimuhamedov, impressive reforms are being implemented in the framework of the national economic sectors aimed at the diversification of the national economy. Trade, one type of the free economic zone including free trade zones and export zones, is one of the most interactively developing sectors of the national economic sectors clearly reflecting the changes in the national economy system. The video statement, made by our Leader of the country on October 30, 2020 at the International Forum on Northern Economic Cooperation held in Seoul in videoconference format, remarkably highlighted the production of goods (works, services) competitive in the global market, creation of new jobs and intensification of foreign economic activity. On top of all that with the sake of our highly esteemed President, Turkmenistan actively expands its international economic relations with other developed countries of the world. Present day we have foreign economic relations and strong friendly bonds with over 119 countries.

The profitable position of the country exerts influence on the development of transport and logistics of the free economic zone. Turkmenistan attaches particular importance to the development of transport and logistics system given the fact any economic activity is aimed at making a profit because creation of transport and logistics zones captivates the attentions of foreign investors. Today, being one of the largest international transit centers for railway transportation along the North-South and West-East routes, Turkmenistan puts highly emphasis on bringing large-scale international projects in the transport sector to life.

Over the 30 years of Independence, the economy system of Turkmenistan has rapidly increased. The brand new strategies for enhancing our economy system and gaining the recognition of our beloved country as a politically and economically sustainable developing country in the world are successfully being carried into life.

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Amanbagt USSAYEVA,

Student of the Faculty of the International Law
of the Institute of International Relations
of the Ministry of Foreign Affairs of Turkmenistan.

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