KAZAKHSTAN Republic of Kazakhstan situated in Central Asia. Kazakhstan borders on Russia in the north, China in the east, Kyrgyzstan, Uzbekistan and Turkmenistan to the south, from the west its coasts are washed by the Caspian Sea. Area of the republic is 2717300 km². The Capital is Astana. Population: 16846800 (1998). Biggest cities: Almati, Karaganda, Chimkent. Ethnic content: Kazakhs 41,9%, Russians 37%, Ukrainians 5,2%, Germans - 4,7%, Uzbeks 2,1%, Tatars 2% (recently Russians and Germans are leaving the country). Kazakhstan is a republic constitutional presidential republic. The President is head of state and also Commander-in-chief of armed forces. National currency: tenge. Language: state language is Kazakh, also Russian is widely used. Religion: Moslems 47%, Orthodox 44%, protestants 2%.HISTORY Kazakhstan is a constitutional republic with a strong presidency. The president is the head of state. The president also is the commander in chief of the armed forces and may veto legislation that has been passed by the Parliament. President Nursultan Nazarbayev, who has been in office since Kazakhstan became independent, won a new 7-year term in the 1999 election that the Organization for Security and Cooperation in Europe said fell short of international standards. The prime minister, who serves at the pleasure of the president, chairs the Cabinet of Ministers and serves as Kazakhstan's head of government. There are three deputy prime ministers and 16 ministers in the Cabinet. Daniyal K. Akhmetov became the Prime Minister in June 2003. Kazakhstan has a bicameral Parliament, comprised of the lower house (the Majilis) and upper house (the Senate). Single mandate districts popularly elect 67 seats in the Majilis; there also are 10 members elected by party-list vote rather than by single mandate districts. The Senate has 39 members. Two senators are selected by each of the elected assemblies (Maslikhats) of Kazakhstan's 16 principal administrative divisions (14 regions, or oblasts, plus the cities of Astana and Almaty). The president appoints the remaining seven senators. Majilis deputies and the government both have the right of legislative initiative, though the government proposes most legislation considered by the Parliament. Elections to the Majilis in September 2004 yielded a lower house dominated by the pro-government Otan party, headed by President Nazarbayev. Two other parties considered sympathetic to the president, including the agrarian-industrial bloc AIST and the Asar party, founded by President Nazarbayevs daughter, won most of the remaining seats. Opposition parties, which were officially registered and competed in the elections, won a single seat during elections that the Organization for Security and Cooperation in Europe said fell short of international standards. In 1999, Kazakhstan applied for observer status at the Council of Europe Parliamentary Assembly. The official response of the Assembly was that Kazakhstan could apply for full membership, because it is partially located in Europe, but that they would not be granted any status whatsoever at the Council until their democracy and human rights records improved. On December 4, 2005, Nursultan Nazarbayev was reelected in a land-slide victory. The electoral commission announced that he had won over 90 % of the vote. The Organization for Security and Cooperation in Europe (OSCE) concluded the election did not meet international standards despite some improvements in the administration of the election. Xinhua News Agency reported that Chinese observers, responsible in overseeing 25 polling stations in Astana, found that voting in those polls was conducted in a "transparent and fair" manner. Furthermore, Western governments were muted in their criticism of the election. Kazakh Intelligence Services Kazakhstan's National Security Committee (KNB) was established on 13 June 1992. It includes the Service of Internal Security, Military Counterintelligence, Border Guard, several Commandos units, and Foreign Intelligence (Barlau). The latter is considered by many as the most important part of KNB. Its director is Major General Omirtai Bitimov. Administrative Divisions Kazakhstan is divided into 14 provinces (oblys) and three municipal districts (qala)*: Taldy-Korgan, Almaty*, Aqmola (Astana), Aqtöbe, Astana*, Atyrau, Batys Qazaqstan (Oral), Bayqongyr*, Mangghystau (Aqtau; formerly Shevchenko), Ongtustik Qazaqstan (Shymkent), Pavlodar, Qaraghandy, Qostanay, Qyzylorda, Shyghys Qazaqstan (Oskemen; formerly Ust'-Kamenogorsk), Soltustik Qazaqstan (Petropavl), Zhambyl (Taraz; known as Dzhambul in the Soviet period, but before that as Aulie-Ata) Note: administrative divisions have the same names as their administrative centers (exceptions have the administrative center name following in parentheses); in 1995 the Governments of Kazakhstan and Russia entered into an agreement whereby Russia would lease for a period of 20 years an area of 6,000 square kilometres (2,300 sq. mi); enclosing the Bayqongyr (Baykonur) space launch facilities and the city of Bayqongyr (formerly Leninsk). Just recently, the lease of Bayqongyr facilities was extended through 2050. Each is headed by an Akim (provincial governor) appointed by the president. Municipal Akims are appointed by oblast Akims. The Government of Kazakhstan transferred its capital from Almaty to Astana on December 10, 1997. GEOGRAPHY With an area of 2.7 million square kilometers (1.05 million sq. mi), Kazakhstan is the ninth-largest nation in the world. It is equivalent to the size of Western Europe. It shares borders of 6,846 kilometers (4,254 mi) with Russia, 2,203 kilometers (1,369 mi) with Uzbekistan, 1,533 kilometers (953 mi) with China, 1,051 kilometers (653 mi) with Kyrgyzstan, and 379 kilometers (235 mi) with Turkmenistan. Major cities include Astana (capital since December 1997), Almaty (the former capital), Karaganda, Shymkent (Chimkent), Semey (Semipalatinsk) and Turkestan. The terrain extends west to east from the Caspian Sea to the Altay Mountains and north to south from the plains of Western Siberia to the oasis and desert of Central Asia. The Kazakh Steppe, with an area of around 804,500 square kilometres (310,600 sq. mi), occupies one-third of the country and is the world's largest dry steppe region. The steppe is characterized by large areas of grasslands and sandy regions. Important rivers and lakes include: the Aral Sea, Ili River, Irtysh River, Ishim River, Ural River, Lake Balkhash, and Lake Zaysan The climate is continental, with hot summers and colder winters. Precipitation varies between arid and semi-arid conditions. ECONOMY The government of Kazakhstan plans to double its Gross domestic product (GDP) by 2008 and triple by 2015 compared to 2000. The GDP growth was stable in the last five years, and was higher than 9%. Analysts estimate a 9.3% growth rate for 2005. The GDP growth in 2004 was 9.4%. Kazakhstan's economy grew by 9.2% in 2003, buoyed by high world crude oil prices. GDP grew 9.5% in 2002; it grew 13.2% in 2001, up from 9.8% in 2000. Kazakhstan's monetary policy has been well managed. Its principal challenges in 2002 were to manage strong foreign currency inflows without sparking inflation. In 2003 inflation did not remain under control, registering at 6.8% instead of the forecast level of 5.3%-6.0%. In 2002 inflation was 6.6%, compared to 6.4% in 2001. Because of its strong macroeconomic performance and financial health, in 2000 Kazakhstan became the first former Soviet republic to repay all of its debt to the International Monetary Fund (IMF), 7 years ahead of schedule. In March 2002, the U.S. Department of Commerce graduated Kazakhstan to market economy status under U.S. trade law. The change in status recognized substantive market economy reforms in the areas of currency convertibility, wage rate determination, openness to foreign investment, and government control over the means of production and allocation of resources. In September 2002, Kazakhstan became the first country in the former Soviet Union to receive an investment-grade credit rating from a major international credit rating agency. As of late December 2003, Kazakhstan's gross foreign debt was about $22.9 billion. Total governmental debt was $4.2 billion. This amounts to 14% of the GDP. There has been a noticeable reduction in the ratio of debt to GDP observed in past years; the ratio of total governmental debt to GDP in 2000 was 21.7%, in 2001 it was 17.5%, and in 2002 it was 15.4%. The upturn in economic growth, combined with the results of earlier tax and financial sector reforms, dramatically improved government finances from the 1999 budget deficit level of 3.5% of GDP to a deficit of 1.2% of GDP in 2003. Government revenues grew from 19.8% of GDP in 1999 to 22.6% of GDP in 2001, but decreased to 16.2% of GDP in 2003. In 2000, Kazakhstan adopted a new tax code in an effort to consolidate these gains. On November 29, 2003 the Law on Changes to Tax Code was adopted, which reduced tax rates. The value added tax fell from 16% to 15%, the social tax from 21% to 20%, and the personal income tax from 30% to 20%. Kazakhstan furthered its reforms by adopting a new land code on June 20, 2003 and a customs code on April 5, 2003. Energy is the leading economic sector. Production of crude oil and natural gas condensate in Kazakhstan amounted to 51.2 million tons in 2003, which was 8.6% more than in 2002. Kazakhstan raised oil and gas condensate exports to 44.3 million tons in 2003, 13% higher than in 2002. Gas production in Kazakhstan in 2003 amounted to 13.9 billion cubic meters (491 billion cu. ft), up 22.7% compared to 2002, including natural gas production of 7.3 billion cubic meters (258 billion cu. ft); Kazakhstan holds about 4 billion tons of proven recoverable oil reserves and 2,000 cubic kilometers (480 cu mi) of gas. Industry analysts believe that planned expansion of oil production, coupled with the development of new fields, will enable the country to produce as much as 3 million barrels (477,000 m³) per day by 2015, lifting Kazakhstan into the ranks of the world's top 10 oil-producing nations. Kazakhstan's 2003 oil exports were valued at more than $7 billion, representing 65% of overall exports and 24% of the GDP. Major oil and gas fields and their recoverable oil reserves are Tengiz with 7 billion barrels (1.1 km³); Karachaganak with 8 billion barrels (1.3 km³) and 1,350 km³ of natural gas); and Kashagan with 7 to 9 billion barrels (1.1 to 1.4 km³). Kazakhstan instituted an ambitious pension reform program in 1998. As of January 1, 2005 the pension assets were about $4.1 billion. There are 16 saving pension funds in the republic. The State Accumulating Pension Fund, the only state-owned fund, could be privatized as early as 2006. The country's unified financial regulatory agency oversees and regulates the pension funds. The pension funds' growing demand for quality investment outlets triggered rapid development of the debt securities market. Pension fund capital is being invested almost exclusively in corporate and government bonds, including Government of Kazakhstan Eurobonds. The Kazakhstani banking system is developing rapidly. The banking system's capitalization now exceeds $1 billion. The National Bank has introduced deposit insurance in its campaign to strengthen the banking sector. Several major foreign banks have branches in Kazakhstan, including ABN AMRO, Citibank, and HSBC.AGRICULTURE Agriculture accounted for 13.6% of Kazakhstan's GDP in 2003. Grain (Kazakhstan is the sixth-largest producer in the world) and livestock are the most important agricultural commodities. Agricultural land occupies more than 846,000 square kilometres (327,000 sq. mi). The available agricultural land consists of 205,000 square kilometres (79,000 sq. mi) of arable land and 611,000 square kilometres (236,000 sq. mi) of pasture and hay land. Chief livestock products are dairy products, leather, meat, and wool. The country's major crops include wheat, barley, cotton, and rice. Wheat exports, a major source of hard currency, rank among the leading commodities in Kazakhstan's export trade. In 2003 Kazakhstan harvested 17.6 million tons of grain in gross, 2.8% higher compared to 2002. Kazakh agriculture is still has many environmental problems from mismanagement during its years in the Soviet Union.NATURAL RESOURCES Kazakhstan has an abundant supply of accessible mineral and fossil fuel resources. Development of petroleum, natural gas, and mineral extraction has attracted most of the over $40 billion in foreign investment in Kazakhstan since 1993 and accounts for some 57% of the nation's industrial output. According to some estimates, Kazakhstan has the second largest uranium, chromium, lead, and zinc reserves, the third largest manganese reserves, the fifth largest copper reserves, and ranks in the top ten for coal, iron, and gold. It is also an exporter of diamonds. In total, there are 160 deposits with over 2.7 billion tons of petroleum. Oil explorations have shown that the deposits on the Caspian shore are only a small part of a much larger deposit. It is said that 3.5 billion tons of oil and 2.5 trillion cubic meters of gas could be found in that area. Overall the estimate of Kazakhstan's oil deposits is 6.1 billion tons. However, there are only 3 refineries within the country, situated in Atirau, Pavlodar, and Shymkent. These are not capable of processing the crude output, much of it is exported to Russia.FOREIGN RELATIONS Kazakhstan has stable relationships with all of its neighbors and is a member of the United Nations, Organization for Security and Cooperation in Europe, Euro-Atlantic Partnership Council and Organization of the Islamic Conference (OIC). It is an active participant in the North Atlantic Treaty Organisation's (NATO) Partnership for Peace program. Kazakhstan is also a member of the Commonwealth of Independent States, the Economic Cooperation Organization (ECO) and the Shanghai Cooperation Organization along with Russia, China, Kyrgyzstan, Tajikistan, and Uzbekistan. Kazakhstan, Belarus, Kyrgyzstan, and Tajikistan established the Eurasian Economic Community in 2000 to re-energize earlier efforts at harmonizing trade tariffs and the creation of a free trade zone under a customs union. Since independence in 1991, Kazakhstan has pursued what is known as the multidimensional foreign policy (ìíîãîâåêòîðíàÿ âíåøíÿÿ ïîëèòèêà), seeking equally good relations with two large neighbors, Russia and China, and the United States and the West generally. The policy has yielded results in the oil and gas sector, where companies from the U.S., Russia, China, and Europe are present at all major fields, and in the multidimensional directions of oil export pipelines out of Kazakhstan. Kazakhstan possesses the Soviet equivalent to the United States' Cape Canaveral, where the Soviet Union launched its version of the space shuttle and the well-known space station Mir. Russia currently leases approximately 6,000 km² (2,300 mi²) of territory enclosing the Baikonur Cosmodrome space launch site in south central Kazakhstan. On June 18, 2006, Kazakhstan joined the club of the world's space powers in its own right when it launched its first commercial satellite, KazSat 1, from the Baikonur Cosmodrome on a Russian built booster rocket.DEMOGRAPHICS The majority of modern Kazakhstanis are currently either ethnic Kazakhs (58%-60%) or Russians (25%-27%), with smaller Ukrainian, Uzbek, German, Uyghur, Koreans and other minorities totalling 15%-17%. There is also a small but visible Jewish community. Before 1991, one million Volga Germans lived in Kazakhstan; much of this community emigrated to Germany following the breakup of the Soviet Union. The main religious groupings are Sunni Islam, Russian Orthodoxy and Roman Catholicism. Kazakhstan is a bilingual country: the Kazakh language, spoken by 64.4% of the population, has the status of the "state" language, while Russian is declared the "official" language, and is used routinely in business. The 1990s were marked by the emigration of many of the country's Europeans, a process that began in the 1970s; this was a major factor in giving the autochthonous Kazakhs a majority along with higher Kazakh birthrates and ethnic Kazakh immigration from China, Mongolia and Russia. In the early 21st century, Kazakhstan has become one of the leading nations in international adoptions. Kazakhs and Kazakhstanis (terminology) For many years, Russians often outnumbered the Kazakhs in many parts of the area known today as Kazakhstan. Even now, Russians and people of other ethnic origins play an important role in the economy and government and consider the country their home. The Russian term ๊เ็เ๕ (Kazakhstani) was coined to describe all inhabitants of Kazakhstan, including non-Kazakhs. The word "Kazakh" is generally used to refer to people of actual Kazakh descent (including those living in China, Afghanistan, and other Central Asian countries). The name Kazakh, both for the people and for the nation itself, is derived from the ancient Turkic words "ka" which means "great" and "sak" which means the name of ancient tribe and the Avestan/Old Persian (See Indo-European languages) word "stan" which means "land" or "place of". It is the result of Kazakhs' nomadic horseback culture and is related to the term "cossack".
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