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Dice PANG: Piensen Kazakhstan---> Afghanistan---> Océano Indico....
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U.S. Department of State, October 2001
BACKGROUND NOTES: KAZAKHSTAN
PROFILE
OFFICIAL NAME:
Republic of Kazakhstan
Geography
Area: 2.7 million square kilometers; ninth-largest nation in the world; the
size of Western Europe
Major cities: Capital--Astana (June 1998); Almaty (former capital),
Karaganda, Chimkent
Terrain: Extends east to west 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
Climate: Continental, cold winters and hot summers; arid and semiarid
Border lengths: Russia 6,846 km, Uzbekistan 2,203 km, China 1,533 km,
Kyrgyzstan 1,051 km, and Turmenistan 379 km.
People
Nationality: Kazakhstani.
Population (July 2001 est.): 16.7 million.
Population growth rate (2001 est.): 0.03%.
Population Density: 16 people per sq. mi.; or slightly above Idaho (12.2) or
New Mexico (12.5). U.S. density (1990)--70.3 people per sq. mi.
Ethnic groups (2001): 53.4% Kazakh, 30% Russian, 3.7% Ukrainian, 2.5% Uzbek,
2.4% German, 1.4% Uyghur, 6.6% other.
Religion: 47% Sunni Muslim, 44% Russian Orthodox, 2%, Protestant, 7% other.
Language: Approximately 40% Kazakh and 60% Russian. Although the 1995
Constitution recognizes both as the state language, Russian is the language
often used in commerce and government.
Health (2001 est.): Infant mortality rate--59.17 deaths/1,000 live births.
Life expectancy--63.29 years.
Work force (8.8 million (1997 est.): Industry and construction--27%;
agriculture and forestry--23%; services, 1996 est.--50%.
Government
Type: Republic.
Independence: 16 December, 1991 (from the Soviet Union).
Declaration of Sovereignty: October 25, 1990.
Constitution: August 30, 1995. Constitution adopted by referendum replaced a
1993 Constitution
Branches: Executive (president, prime minister, council of ministers).
Legislative (Senate and Majilis). Judicial (Supreme Court).
Administrative subdivisions: 17; 14 oblasts plus 3 cities--Almaty (the
former capital), Astana (the current capital) and the territory of
Bayqongyr, which contains the space launch center that the Russians built
and now lease for 20 years.
Political parties: Party of People's Unity, The Democratic Party, The
People's Cooperative Party, Socialist and communist parties, and People's
Congress Party.
Suffrage: 18 years of age; universal.
Economy
GDP (2000 est.): $85.6 billion.
GDP growth rate (2000 est.): 10.5%.
GDP per capita (2000 est.): Purchasing power parity --$5,000.
Inflation rate (2000): 13.4% (consumer prices).
Total foreign trade (2000 est.): $15.5 billion. Major partners: Russia, EU,
U.S., China
Major exports--Total exports worth $8.8 billion and mainly consisted of
petroleum (40%), ferrous and nonferrous metals, machinery, chemicals, grain,
wool, meat, coal. Major imports--Total imports worth $6.9 billion and mainly
consisted of machinery and parts, industrial materials, oil and gas, and
vehicles
Exchange rate (Oct. 2001): 148 tenges=U.S.$1.
GOVERNMENT AND POLITICAL CONDITIONS
Kazakhstan is a constitutional republic with a strong presidency. The
president is the head of state. He 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 four deputy prime ministers, 14 ministers, and
11 chairmen of state agencies. Kasimzhomart Tokayev, the former Minister of
Foreign Affairs, has been Prime Minister since 1999.
Kazakhstan has a bicameral parliament, comprised of a Lower House (the
Mazhilis) and upper house (the Senate). The 77-seat Mazhilis is popularly
elected by single mandate districts, with 10 members elected by party-list
vote. 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. Mazhilis deputies and
the government both have the right of legislative initiative, though most
legislation considered by the Parliament is proposed by the government.
Political parties have traditionally played little role in local politics,
where personal and family ties are more important. Several new parties
formed and were registered in 1999 following passage of a constitutional
amendment that created 10 new seats in the Mazhilis attributed by party-list
voting. Three parties that support President Nazarbayev--Otan (Fatherland),
the Civic Party, and the Agrarian Party--won 8 of the 10 seats; the
communists won the other two. Two opposition parties, the Republican
People's Party of Kazakhstan (RNPK) and Azamat, were registered for the
election. One member of RNPK, but no Azamat candidate, was elected, from a
single-mandate district.
Kazakhstan is divided into 14 Oblasts and the two municipal districts of
Almaty and Astana. 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 June 10, 1998.
PEOPLE
The population of 14.9 million consists of about 53% ethnic Kazakhs and 30%
ethnic Russians, with many other groups represented, including Ukrainians,
Uzbeks, Koreans, Germans, Chechens, and Uyghurs. Given the relatively small
population in an area the size of Western Europe, the population density is
very low (5.5 persons per sq. km.). Most of the population speaks Russian;
only half of ethnic Kazakhs speak Kazakh fluently, although it is enjoying a
renaissance. Both Kazakh and Russian languages have official status.
ECONOMY
In 2000, Kazakhstan's economy grew sharply, aided by increased prices on
world markets for Kazakhstan's leading exports--oil, metals and grain). GDP
grew 9.6% in 2000, up from 1.7% in 1999. The government is predicting GDP
growth of about 10% in 2001, as well. The increased economic growth also
led to a turn-around in government finances, with the budget moving from a
cash deficit of 3.7% of GDP in 1999 to 0.1% surplus in 2000.
Kazakhstan's monetary policy has been well-managed. Its principal
challenges in 2001 are to manage strong foreign currency inflows without
sparking inflation. Inflation has, in fact, stayed under control,
registering 9.8% in 2000, and appears likely to be under 10% in 2001.
Because of its strong economic performance and financial health, Kazakhstan
became the first former Soviet republic to repay all of its debt to the IMF
by paying back $400 million in 2000; 7 years ahead of schedule. Overall
foreign debt is about $12.5 billion, $4 billion of which is owed by the
government. This amounts to 69% of GDP, well within manageable levels.
The upturn in economic growth, combined with the results of earlier tax and
financial sector reforms, dramatically improved government finances from the
1998 budget deficit level of 4.2% of GDP to a slight surplus in 2000.
Government tax revenues grew from 16.4% of GDP in 1999 to 20.6% of GDP in
2000. In 2000, Kazakhstan adopted a new Tax Code in an effort to
consolidate these gains. Its strong financial position also allowed the
government to reduce the value-added tax (VAT) from 20% to 16% and reduce
social (payroll) taxes as of July 2001. Kazakhstan's stronger budget
position and strong export earnings earned it credit ratings upgrades from
Moody's, S&P, and Fitch IBCA during 2001.
Oil and gas is the leading economic sector. In 2000, Kazakhstan produced
35.252 million metric tons of oil (700,000 barrels/day), a 17.4% increase
over 1999's 30.025 million tons. It exported 28.883 million tons of oil in
2000, up 38.8% from 20.813 million tons in 1999. Production in 2001 has
been growing at roughly 20%, on target to meet the government's forecast of
40.1 million tons of oil (800,000 barrels/day). In 2000, production reached
11.5 billion cubic meters of natural gas, up from 8.2 billion cubic meters
in 1999.
Kazakhstan has the potential to be a world-class oil exporter in the medium
term. The landmark foreign investment in Kazakhstan is the TengizChevroil
joint venture, owned 50% by ChevronTexaco, 25% by ExxonMobil, 20% by the
Government of Kazakhstan, and 5% by Lukarco of Russia. The Karachaganak gas
and gas condensate field is being developed by BG, Agip, ChevronTexaco,and
Lukoil. The Agip-led Offshore Kazakhstan Consortium has discovered a
potentially huge oil field, Kashagan, in the northern Caspian. Kazakhstan's
economic future is linked to oil and gas development. GDP growth will
depend on the price of oil, as well as the ability to develop new deposits.
Kazakhstan instituted an ambitious pension reform program in 1998. By July
2001, Kazakhstanis had contributed more than $1 billion to their own
personal pension accounts, most of which is managed by the private sector.
The National Bank 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. Banking systems 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.
FOREIGN RELATIONS
Kazakhstan has good relations with all of its neighbors. Kazakhstan is a
member of the United Nations, Organization on Security and Cooperation in
Europe, and North Atlantic Cooperation Council. It also is an active
participant in NATO's Partnership for Peace program. Kazakhstan is also a
member of the Commonwealth of Independent States and the Shanghai
Cooperation Organization along with Russia, China, Kyrgyzstan, Tajikistan,
and Uzbekistan. Kazakhstan, Russia, Belarus, Kyrgyzstan, and Tajikistan
established the Eurasian Economic Community in 2000 to reenergize earlier
efforts at harmonizing trade tariffs and the creation of a free trade zone
under a Customs Union.
U.S.-KAZAKHSTAN RELATIONS
The United States was the first country to recognize Kazakhstan, on December
25, 1991, and opened its embassy in Almaty in January 1992. In the 10 years
since Kazakhstan's independence, the two countries have developed a
wideranging bilateral relationship. The current ambassador is Larry C.
Napper, who assumed his post in September 2001.
U.S.-Kazakhstani cooperation in security and nonproliferation has been a
cornerstone of the relationship. Kazakhstan showed leadership when it
renounced nuclear weapons in 1993. The U.S. has assisted Kazakhstan in the
removal of nuclear warheads, weapons-grade materials, and their supporting
infrastructure. In 1994, Kazakhstan transferred over a half ton of
weapons-grade uranium to the U.S., and in 1995 Kazakhstan removed its last
nuclear warheads. Over the past 5 years Kazakhstan, with U.S. assistance,
completed the sealing of 181 nuclear test tunnels. Kazakhstan has signed
the Conventional Armed Forces in Europe Treaty (1992), the START Treaty
(1992), and the nuclear Non-Proliferation Treaty (1993). Under the
Cooperative Threat Reduction program, the U.S. spent $78 million to assist
Kazakhstan in eliminating START related systems such as ICBM silo launchers,
strategic heavy bombers, and liquid rocket fuel storage facilities.
U.S.-Kazakhstani Economic Relations
American companies have invested more than $5 billion in Kazakhstan since
1993. These companies are concentrated particularly in the oil and gas,
business services, telecommunications, and electrical energy sectors.
Kazakhstan has made progress in creating a favorable investment climate
although concerns, such as vague and contradictory laws, remain. A
U.S.-Kazakhstan Bilateral Investment Treaty and a Treaty on the Avoidance of
Dual Taxation have been in place since 1994 and 1996, respectively.
Kazakhstan has been determined to be in full compliance with the
Jackson-Vanik amendment to the 1974 Trade Act and does not need an annual
waiver in order to receive MFN treatment. Bilateral trade was worth $488
million in 2000.
U.S. Assistance
The U.S. supports Kazakhstan's transition to a market economy, fully
integrated into the world trade system. Since 1993, the U. S. Agency for
International Development (USAID) has administered more than $273 million in
technical assistance programs in Kazakhstan. These programs include
cooperation in privatization, fiscal and financial policy, commercial law,
energy, health care, and environmental protection. The U.S. Commercial
Service provides U.S. business internships for Kazakhstanis, supports
Kazakhstani businesses through a matchmaker program, and disseminates
information on U.S. goods and services. The Peace Corps has more than 150
Volunteers working throughout Kazakhstan in business education, English
teaching, and the development of environmental nongovernmental organizations
(NGOs).
The U.S. supports increased citizen participation in the public arena
through support for NGOs. Dozens of grants have been provided to support
NGOs that promote an independent media, legal reform, women's rights, civic
education, and legislative oversight. USAID also has provided training
courses for leaders and professionals.
Military Cooperation
Kazakhstan's military participates in the U.S.'s International Military
Education and Training program, Foreign Military Financing, as well as
NATO's Partnership for Peace program. The U.S. Central Command conducts 30
military-to-military engagement events every year in Kazakhstan. These
events range from information exchanges to military exercises.
ENVIRONMENTAL ISSUES
Kazakhstan has identified two major ecological disasters within its
borders-- the shrinking of the Aral Sea and radioactive contamination at the
Semipalatinsk nuclear testing facility. The Central Asian Regional
Environmental Center is located in Kazakhstan, which fosters regional
cooperation on environmental issues. Kazakhstan is a signatory to the
Convention on International Trade in Endangered Species.
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