Political and economic history of Kazakhstan

Kazakhstan is a country with rich historical and cultural past. Located in the centre of Eurasia, Kazakhstan stands at crossroads of ancient world civilizations, at crossing of transport arteries, social and economic, cultural and ideological relations between the East and the West, the South and the North, between Europe and Asia, between the largest state formations of Eurasian continent. 

1989-1990 — worsening of social and economic crisis, the political contradiction. 1991 -the Law on languages was adopted, the post of the president was established. December, 1991 - Declarations on state sovereignty of Kazakh Soviet Socialist Republic, governing body’s statement on economic independence. 1 December, 1991 — president Nazarbaev. 16 December, 1991 — Law «On Republic of Kazakhstan state independence». Introduction of independent economic system, the approval of the State symbols. May, 1992 — strategy on formation and development of Kazakhstan as sovereign state »is published«, June, 1992 — the National flag, National emblem and Anthem were approved. 
Course on transformations and transition to the market. Richest mineral resources, formation of different forms of ownership, development of defense complex, rational use of scientific, technical and industrial potential. Nongovernmental economy is actively developing – joint-stock companies, inter-branch associations, concerns, co-operative societies, banks and companies. The industrial enterprises, growth of population occupied in agriculture. Privatization. 

The foreign capital, machinery and technology are widely used. Large investments to agriculture, export-import relations through republican external economic structures, export to developed capitalist countries. In export the raw orientation prevails. Contracts and agreements with many foreign companies are concluded. Mobilization of big capital investments to economy of Kazakhstan. 

Negotiations on Kazakhstan joining WTO go at full speed. Major part of laws regulating foreign trade is brought to compliance with norms of t WTO or is discussed in Parliament. 
Our country to this international economic organization gives great opportunities for strengthening of competitiveness of Kazakhstan at the international markets.

Effectively working market economy is constructed in Kazakhstan. 
European countries occupy significant part in volumes of the Kazakhstan export. Kazakhstan is large fuel and energy region. Main consumers of Kazakhstan export among European countries are Switzerland, Italy, Poland, and Germany. Export to European countries is increased due to the sale of oil, ferroalloys, metal industry products and wheat. Kazakh products delivery volume deliveries to the countries of Asian region is being increased, where one of the main consumers are the Chinese enterprises. 

Financial system of Kazakhstan is considered as one of the most progressive among the CIS countries. The bank sector considerably advances indicators of other countries of Commonwealth in its development. Cumulative assets of Kazakhstan banks (more than 50 billion US dollars) are commensurable with total assets of Ukraine banks. By indicator of the assets share in gross domestic product (80 %), Kazakhstan outstrips number of East European countries. Active expansion of Kazakhstan capital at foreign markets continues. It has reached an indicator of 15 billion US dollars in 2005. Kazakhstan was the first country created National fund of stable social and economic development and decreased dependence on adverse external factors. Since 2001 about 60 % of all State oil proceeds accumulate in National fund. Turnover of the fund has made 14,5 billion US dollars by the end of 2006, comparing 8 billion dollars in the end of 2005. Gold and currency reserves of the country taking subject to National fund for November, 30th, 2006 have grown to 15,086 billion US dollars.

In 2006 the international reserves of Kazakhstan in the current prices, including money of National fund was 29 764,8 million US dollars.
About 50 billion US dollars of direct foreign investments are involved into economy of the republic. Kazakhstan consistently realizes open external commercial policy. So, in 2004 the foreign trade turnover was near to 33 billion US dollars with positive balance over 7 billion dollars and has grown more than 3 times in comparison with 1994. 
Political and economic stability in the republic, a favorable investment climate enable Kazakhstan to keep its high rating in the world.

Today Kazakhstan is the first country of CIS, which has investment class rating from three leading international rating agencies Moody’s Investors Service, Standard&Poor’s и Fitch Rating’s Ltd.
Now Kazakhstan, according to World Bank classification, is included into group of countries with income higher than average level. Comparing basic indicators of living standard for the last 10 years, Kazakhstani people’s average income has grown 5 times; average monthly salary has increased almost 6 times; minimum wage has grown 5 times; the average monthly pension has increased 4,6 times. 

Progressive economic growth of Kazakhstan allowed to expand considerably social orientation of public expenses what indicates the stability and safety of national economy.
Kazakhstan — the agrarian-industrial country.

Gross domestic product of Kazakhstan has reached 77,9 billion dollars in 2006, that makes 5120 dollars per capita.
Basic source of economic growth are the mining operations.
Kazakhstan consists of five large economic regions.
1. North Kazakhstan — the grain farming, iron ore and coal production, mechanical engineering, mineral oil and ferroalloys production and energy sector are developed.
2. East Kazakhstan — nonferrous metallurgy, energy sector, mechanical engineering and forestry. 
3. West Kazakhstan — the largest oil and gas production region. 
4. Central Kazakhstan — farrous and nonferrous metallurgy, mechanical engineering, animal husbandry. 
5. South Kazakhstan — a clap, rice, a wool, grain, fruit, vegetables, grapes; nonferrous metallurgy, instrument engineering, light and the food-processing industry, fish husbandry and a forestry are developed.

Foreign trade
Share of trade with traditional partners —CIS countries and Baltic states — is great: about 59 % of export and up to 63 % of import. While the main trade partner is still Russia. Among foreign countries, commercial relations with Germany, Turkey, Switzerland, Czech, Italy, China, the USA, the Great Britain, South Korea and others are successfully develop.
Export
Kazakhstan exports raw materials produced by mining, fuel, metallurgy and chemical industries.
Import
Main imported products are machinery and equipment, vehicle, devices and automatic machines, chemical products, mineral fuel, provisions, complete products and national consumption products.
 Industry
Mechanical engineering
Mechanical engineering products make about 8 % of total industry production of the republic.
Kazakhstan produces equipment for its mining industry. Exported Kazakhstan products are: compression-type machines (Shymkent), machine tools (Alma-Ata), accumulators (Taldy-Korgan), centrifugal pumps (Astana), x-ray equipment (Aktyubinsk) etc.

Ferrous metallurgy
Office of the largest metallurgy company — Mittal Steel in Temirtau
Ferrous metallurgy of Kazakhstan produces more than 12,5 % republican volume of industrial production.
 Kazakhstan takes the eighth place in the world in iron ore reserves. Its share in the world reserves is 6 %.
73,3 % of 8,7 billion tones of explored iron ore reserves are easily extractive. More than 70 % of produced iron ore is exported.
Nonferrous metallurgy
Unit weight of nonferrous metallurgy in total industrial production exceeds 12 %.
Copper, lead, zinc, titan, magnesium, rare and rare-earth metals are produced.
Kazakhstan is included into the number of world's largest producers and exporters of refined copper. The main importers of Kazakhstan copper are Italy and Germany.
Kazakhstan is a large-scale producer of gold. More than 170 gold-bearing deposits are registered in the country.

Chemical industry
Chemical and petrochemical industrial enterprise of the republic produce plastic, man-made fiber and threads, tyres for cars and agricultural machines, wide range of general mechanical rubber goods , chrome compounds, calcium carbide, caustic soda and other products.
Three refineries, producing auto-gasoline, diesel, boiler fuel, jet kerosene, petrobitumens and other petrochemical products, operate in Kazakhstan.
Large complex on processing of phosphorite ore with production of yellow phosphorus (more than 90 % of total production of the former USSR), mineral fertilizers and synthetic washing materials also operates in Kazakhstan.

Building materials production
Building materials industry production makes more than 4 % of total industrial production of the republic.
Enterprises produce cement, slate, asbestos-cement pipes, soft roofing materials, linoleum, sanitary-building faience, facing ceramic tiles, panels and other constructions for large-panel building construction, kaolin for the paper industry, radiators, convectors and number of other kinds of building materials and constructions.
The republic has sufficient reserves of various raw materials for building materials production.
Industry wastes are widely used in building materials production: metallurgy and chemical production slags, ashes of fuel power stations and other secondary resources.

Transport
See the article Transport of Kazakhstan.
Geographical location of Kazakhstan in the centre of Eurasia determines its significant transport potential relating transit transportations. Length of land transport highways of the republic is 106 thousand km. 13,5 thousand km of which are main railways, 87,4 thousand km — car highways with hard surface for general use, 4 thousand km. — river ways.
Agriculture
Agriculture is an important sector of national economy.
Kazakhstan takes the third place in CIS after Russia and Ukraine in grain production.

Spring wheat, oats, barley and other grain crops, and also sunflower, crown flax are raised in the north regions of Kazakhstan. Vegetable growing, melon and gourd growing are developed.
Cotton, sugar beet, tobacco and rice produce rich crop in south regions of Kazakhstan with artificial irrigation. Gardening is developed.
Natural resources of Kazakhstan and their variety cause great animal husbandry potential. In Kazakhstan traditionally are engaged in sheep breeding, horse breeding, camel breeding and cattle breeding are traditionally developed in Kazakhstan.

It indicates that along with economy growth, including raw industry, demand of processing industry producrs will grow. The given fact will stimulate investments and innovations in processing sector of industry. 
Average annual real increase of Kazakhstan GDP in 2007 – 2009 will be 8,8 % what enables to solve strategic problem of gross domestic product doubling in 2008 against 2000.
It is planned to bring Gross domestic product per capita to the level of 6543 US dollars by 2009, that will 1,8 times exceed the level of 2005.

Average annual inflation rate in 2007 – 2009 will be in the range 5-7 %.
Tendency of advancing service growth will remain in medium-term period comparing with goods production. Goods production will grow on average 6,8 % per year, and service production -10, 6 %.
In 2007-2009 trade surplus will be on average 5 billion US dollars per year.
The accelerated economic development will be reached because of labor productivity growth on 8,8 % annually. Labor productivity growth rate will have exceeded real wage growth rate by 2009.

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