KAZAKHSTAN CELEBRATES TEN YEARS OF ITS INDEPENDENCE

By Marat Yermukanov, Kazakhstan (12/19/2001 issue of the CACI Analyst)

Many
foreign analysts believe, and not without reason, that
Kazakhstan
is one of the most politically and economically advanced countries in Central
Asia. The tenth anniversary of the Independance day, marked on December 16,
gives good cause to Kazakhstan’s
citizens to look
back to what
has been achieved in post-communist years.

Even
the irreconcilable opponents of the reforms cannot deny the economic progress
made in ten years of independence. Chronic non-payments, inter-enterprise
debts, huge wage arrears, widespread barter trade, and the practice of sending
factory workers on unpaid leave for months, now belong to the past. In his
anniversary speech on Sunday, the president of the country, Nursultan
Nazarbayev, stressed that Kazakhstan has reached economic and financial
stability, and accomplished economic reforms. According to the President,
these achievements were largely due to the strong centralized power.

At
the same time, he pointed out that a liberalized economy is inconceivable
without building an open society. He nevertheless stated that the society
should not blindly follow everything foreign, and that the concept of
democracy should correspond to the mentality, spiritual values, and traditions
of every nation. Outlining his visions of Kazakhstan for the coming years, he
singled out combating poverty and overpopulation, further economic
liberalization, and fostering the middle-class stratum of the society as the
primary objectives to be attained in the next ten years. “We are in the
right direction” Nazarbayev added.

Kazakhstan
should above all develop a close partnership with Russia and the Central Asian
countries. Symbolically, the festivities in the capital city Astana were
attended by Kyrgyz President Askar Akayev. The heads of the two countries used
this occasion to sign a border agreement. 

Figures
released by the National Statistical Agency indicate some encouraging signs of
economic recovery registered since 1999. Compared with the firs half of the
last year, the average per capita nominal income of residents grew by 16,5% in
2001. There was a 13% increase in GDP, and industrial output rose by 13,5%. It
is predicted that by the end of the year, the inflation rate will be brought
down to 6% and will remain at about that level throughout 2002.The Government
promises a 25% increase of the salaries for civil servants, medical workers
and teachers, the lowest paid sections of the population.

Critics
are not too optimistic about the ability of the government to keep up the
current pace of economic growth and to radically improve living standards of
the population, 13% of which, according official sources, live below the
poverty line. Foreign aid money channeled to alleviate social problems is used
ineffectively. In nine months of this year alone the country received a net
foreign investment of US%1.6 billion. Attracted by enormous oil reserves,
foreign companies keep pouring in money into the oil and gas sector. Proceeds
from the sale of oil make up 20% of budget revenues. Yet ordinary citizens
feel they benefit little if it all from the oil business. Impoverished
residents from rural areas have already inundated big cities in search of
work. Government functionaries constantly tell people to fend for themselves
and do too little to create workplaces for them.

Marat
Yermukanov
, Kazakhstan