The economic state of Kazakhstan

[Llyranor]

I was just wondering what everyone thought about the economic state of Kazakhstan.

 

Though 43% are living with under $300/yr, the Kazakh government seems to be trying its best. In fact, $13 million has been promised to Semipalatinsk, and a further $43 million has been pledged from abroad - though only $3 million so far has been realised in actual projects.

 

I think part of the problem is that, between 1945-1991, the former Soviet exploded a total of 607 nuclear bombs in Kazakhstan near the city of Semipalatinsk. Kazakhstan is the size of France, but with widespread radioactive pollution, high levels of cancers and birth defects, grinding poverty and despair. Heck, suicide is widespread, particularly amongst young people.

 

The good thing is that it's developing an oil industry and will, in ten years' time become important oil exporting nation and an essential strategic partner for the EU. In fact, it possesses enormous fossil fuel reserves as well as plentiful supplies of other minerals and metals. It also is a large agricultural - livestock and grain - producer. Kazakhstan's industrial sector rests on the extraction and processing of these natural resources and also on a growing machine-building sector specializing in construction equipment, tractors, agricultural machinery, and some defense items.

 

I'd like to know your opinion.

[Walsingham]

I wrote an investment report on the country over a year ago [i don't normally do this kind of thing, but it was for a friend] that predicted in spite of the many problems, the country was on a remarkably good course. Key to its success are the sheer number of interested foreign parties who are lavishing diplomatic and economic tenderness upon them. The investment group who took the report acted upon my recommendations and saw a 600% profit over the year.

 

Why is it you always forget to ask for payment at the wrong times?

[Diamond]

Though 43% are living with under $300/yr, the Kazakh government seems to be trying its best. In fact, $13 million has been promised to Semipalatinsk, and a further $43 million has been pledged from abroad - though only $3 million so far has been realised in actual projects.

<{POST_SNAPBACK}>

 

Some personal experience (I had been living near the border of Russia with Kazakhstan for 10 years and was often visiting my grandmother in Kazakhstan).

 

Corruption in this country is rampant (as well as in most of former Soviet Union countries), so even if they become important oil exporter, most of the money will be pocketed by high officials and things won't get better for the majority of the population any time soon (at least before the change of people in power).

[Walsingham]

I concur. Corruption is a problem. However, uniquely for any country I've looked at, several firms actually post the bribes (thinly disguised) in the annual reports! Interest free loans, gifts, and so forth.

[Jorian Drake]

I concur. Corruption is a problem. However, uniquely for any country I've looked at, several firms actually post the bribes (thinly disguised) in the annual reports! Interest free loans, gifts, and so forth.

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Corruption is a problem in any ex-CCCP, and Warsaw-pact State...like here in Hungary

[astr0creep]

I concur. Corruption is a problem. However, uniquely for any country I've looked at, several firms actually post the bribes (thinly disguised) in the annual reports! Interest free loans, gifts, and so forth.

<{POST_SNAPBACK}>

Corruption is a problem in any ex-CCCP, and Warsaw-pact State...like here in Hungary

<{POST_SNAPBACK}>

 

Corruption is a problem in any state in any country. The difference is how much the corrupted need or care to hide it properly.

[Jorian Drake]

Hmm...if corruption in USA is 10%, than in russia 40-60%....I think in Kazakhstan its 25% , and here in Hungary its 20-40% <_<

[astr0creep]

Hmm...if corruption in USA is 10%, than in russia 40-60%....I think in Kazakhstan its 25% , and here in Hungary its 20-40%  <_<

<{POST_SNAPBACK}>

 

I think the corruption in USA(and Canada by default...) is higher than 10%. More like 30-40%. but it's just better hidden.

[Jorian Drake]

Hmm...if corruption in USA is 10%, than in russia 40-60%....I think in Kazakhstan its 25% , and here in Hungary its 20-40%  <_<

<{POST_SNAPBACK}>

 

I think the corruption in USA(and Canada by default...) is higher than 10%. More like 30-40%. but it's just better hidden.

<{POST_SNAPBACK}>

then you can guess how it is in the other States i mentioned <_<

[astr0creep]

Hmm...if corruption in USA is 10%, than in russia 40-60%....I think in Kazakhstan its 25% , and here in Hungary its 20-40%  <_<

<{POST_SNAPBACK}>

 

I think the corruption in USA(and Canada by default...) is higher than 10%. More like 30-40%. but it's just better hidden.

<{POST_SNAPBACK}>

then you can guess how it is in the other States i mentioned <_<

<{POST_SNAPBACK}>

 

Yes. Thats the kind of thing that really scares me about the world we live in. Kinda makes me lose hope.

[Jorian Drake]

Hmm...if corruption in USA is 10%, than in russia 40-60%....I think in Kazakhstan its 25% , and here in Hungary its 20-40%  <_<

<{POST_SNAPBACK}>

 

I think the corruption in USA(and Canada by default...) is higher than 10%. More like 30-40%. but it's just better hidden.

<{POST_SNAPBACK}>

then you can guess how it is in the other States i mentioned <_<

<{POST_SNAPBACK}>

 

Yes. Thats the kind of thing that really scares me about the world we live in. Kinda makes me lose hope.

<{POST_SNAPBACK}>

You HAVE hope?

[astr0creep]

Hmm...if corruption in USA is 10%, than in russia 40-60%....I think in Kazakhstan its 25% , and here in Hungary its 20-40%  <_<

<{POST_SNAPBACK}>

 

I think the corruption in USA(and Canada by default...) is higher than 10%. More like 30-40%. but it's just better hidden.

<{POST_SNAPBACK}>

then you can guess how it is in the other States i mentioned <_<

<{POST_SNAPBACK}>

 

Yes. Thats the kind of thing that really scares me about the world we live in. Kinda makes me lose hope.

<{POST_SNAPBACK}>

You HAVE hope?

<{POST_SNAPBACK}>

 

Yes. I'm not a teenager anymore...

And if you want to have children in this world, you need hope.

[Jorian Drake]

Thats good... I tought only I have some Hope left... :D

[Enoch]

Hmm...if corruption in USA is 10%, than in russia 40-60%....I think in Kazakhstan its 25% , and here in Hungary its 20-40%  <_<

<{POST_SNAPBACK}>

 

I think the corruption in USA(and Canada by default...) is higher than 10%. More like 30-40%. but it's just better hidden.

<{POST_SNAPBACK}>

Yes, there are large underground economies (i.e., drugs) in Western countries (although I doubt it amounts to 10% of the $12 trillion U.S. economy), but it is far less pervasive. I mean that, in less-developed nations, a certain % of the start-up costs of every business will be allocated to bribing the right local officials. There is no way to function without getting your hands dirty. In the West, sure there are some bad actors, but there are also legitimate channels for businesses to take (and most do).

 

Anyhow, here's a corruption perceptions index. Kazakhstan is tied for 107th.

[mkreku]

Woohoo, we are good at hiding our corruption! Number 6, baby!

[Nick_i_am]

haha, go go Finland!

[Jorian Drake]

Woohoo, we are good at hiding our corruption! Number 6, baby!

<{POST_SNAPBACK}>

Enoch is an US agent :D

[Enoch]

Woohoo, we are good at hiding our corruption! Number 6, baby!

<{POST_SNAPBACK}>

Enoch is an US agent :D

<{POST_SNAPBACK}>

Close, but not quite yet. I've accepted an offer to work for a government agency, but I'm not starting until August.

[Walsingham]

When I was younger I investigated a corruption case in Minnesota. Multi-million dollar deal. Shook enough branches that the decision was reversed against the corruption, AND I WAS NOT KILLED. You super-cynics can gripe all you like but anyone who claims the US is big'n'bad in this department is trying too hard.

 

P.S. Now I'm old and fat and clever I don't think I'd give it a second try!

[Llyranor]

Thank you for this stimulation discussion.

 

Personally, I think the breakup of the USSR in 1991 and the collapse of demand for Kazakhstan's traditional heavy industry products resulted in a short-term contraction of the economy, with the steepest annual decline occurring in 1994. In 1995-97, the pace of the government program of economic reform and privatization quickened, resulting in a substantial shifting of assets into the private sector. The Caspian Pipeline Consortium agreement to build a new pipeline from western Kazakhstan's Tengiz oil field to the Black Sea increases prospects for substantially larger oil exports in several years. Kazakhstan's economy again turned downward in 1998 with a 2% decline in GDP due to slumping oil prices and the August financial crisis in Russia. The recovery of international oil prices in 1999, combined with a well-timed tenge devaluation and a bumper grain harvest, pulled the economy out of recession in 2000. Astana has embarked upon an industrial policy designed to diversify the economy away from overdependence on the oil sector by developing light industry.

 

Any thoughts?

[Jorian Drake]

Any thoughts?

 

...Umm... .....me likes brainz ...

 

 

 

 

 

 

 

(sorry Llyranor, I simply had to do this )

Edited February 6, 2006 by jorian

[Surreptishus]

Also, there is a Borat film.

[alanschu]

Call me shallow and narrowminded, but I can't say I've given much thought to the economic state of Khazikhstan.

[Surreptishus]

Call me shallow and narrowminded, but I can't say I've given much thought to the economic state of Khazikhstan.

<{POST_SNAPBACK}>

.. or to the correct spelling? "

[SteveThaiBinh]

I was just wondering what everyone thought about the economic state of Kazakhstan.

OK.

Though 43% are living with under $300/yr, the Kazakh government seems to be trying its best.

If 43% of the population are living in absolute poverty, then that, not GDP growth, is the most important characterstic of the Kazakh economy. Unless the government has a plan to make all these oil deals and other investments have some impact on poverty, they're irrelevant. Have you taken a look at the government's Poverty Reduction Strategy? How well thought out is it?

The good thing is that it's developing an oil industry and will, in ten years' time become important oil exporting nation and an essential strategic partner for the EU.

Yes, except that didn't really work out so well for Nigeria. One (among many) causes of social unrest there is a perception that the wealth of the country is being sold abroad without benefit to the people.

 

Let us know what mark you get.