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Turkmenistan is the second largest and the least densely populated nation in Central Asia. It is the southernmost of Central Asia’s five republics and is bounded in the northwest by Kazakhstan and by Uzbekistan on the east and northeast, by Iran on the south and by Afghanistan on the southeast. The Caspian Sea lies along its western boundary. Most of the country is a desert wasteland, except for few, occasional oases dotted along the foothills of the Kopet Mountain in the south and along the Amu Darya in the north.
The economy is predominantly agricultural. In 1992 agriculture contributed an estimated 31 percent of gross domestic product, and utilized 44-45 percent of the working population. Nearly 90 percent of the country’s territory is covered by the Karakum desert, but widespread irrigation since the 1940s has enabled substantial agricultural development.
The cultivation of fine-staple cotton, and raising of Karakul sheep are the principal agricultural activities. In addition to the cultivation of cotton, other important crops are grains, vegetables and fruits (in particular grapes and melons) which are grown primarily in the Amu Darya delta, and the oases along the river.
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However, the extensive use of chemical fertilizers and pesticides, and irrigation has led to pollution from the chemical runoff. The soil and water salinization of the Amu Darya delta and of the Aral Sea has further caused severe environmental hazards. Livestock breeding of the Karakul sheep is important for the production of wool. Silkworm breeding, and the raising of horses, and camels (as a source of wool, milk and meat) occupy a significant position in the agricultural economy. In less populated western section of the nation, people raise sheep, goats, and camels, and cultivate grains and fruits.
Turkmenistan is rich in mineral resources, particularly in natural gas and petroleum, potassium, and salt. Petroleum deposits and the associated industry are located in the Caspian plain and in the off-shore fields to the west of the Cheleken Peninsula in the Caspian Sea. The oil is high grade, and pipelines link the producing region to other areas of the nation. Petroleum and natural gas are used for the modest domestic needs, but most of the production is exported.
Industry contributes nearly 40 percent of the natural domestic production when only 20 percent of working population is employed in it. Industrial activity is chiefly associated with the extraction and processing of the country’s oil and natural gas resources and cotton-processing.
These activities account for nearly two-thirds of the value of total industrial production. During the Soviet control, a complete reorganization of the economy was completed by 1930. While retaining the old branches (cotton-ginning, oil-pressing, and carpet making), new ones (heavy industry and light industry such as food processing) were also developed that resulted in a big increase in industrial production.
The republic’s engineering and metal-processing enterprises are associated with the repair of diesel locomotives, rail cars, and agricultural machinery. Textiles and cotton- ginning, silk-weaving and woolen fabrics, carpet and rug making are other important industries. Turkmen carpets are internationally known and form one of the major exports of the nation. The food processing industry includes the production of vegetable oil, processing of fish and meat, flour milling, and wine making.
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The settlement patterns may be divided into two broad categories:
(a) An oasis region of Kopet Mountain and other oases along the Amu Darya characterized by adequate water supply, and agricultural land, and
(b) A desert region of the Karakum.
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Cattle raising is the chief occupation. The economic and cultural center of an important oasis in the south is Ashkabad (416,000), which is also the national capital. Located at the northern foot of Kopet Mountains at the edge of the Karakum desert, it is an important junction on the Trans-Caspian railroad, just 19 miles (30 km) from the Iranian border. The city has textile, carpet-weaving, glass- work, and machine building industries.
The country’s railroad track is limited. A new railroad and oil pipeline project are being developed to connect Turkmenistan with Iran to provide the country with direct outlet for nation’s exports to the Middle East and the West. Before independence, its trade was exclusively oriented to the Soviet Union.
The principal imports are machinery, light industrial products and processed foods, and exports are cotton yarn, and natural gas and petroleum. Water transport includes a merchant fleet in the Caspian Sea connecting the nation with Azerbaijan.