Kazakhstan

G

Culture

The Kazakh people have probably been more affected by exposure to almost two centuries of Russian cultural tradition than any other population in Central Asia. Efforts are being made to restablish Kazakh cultural traditions that were lost in the era of Russian influence. Oral epics constituted the basis of a literary genre for the largely illiterate and nomadic Kazakhs until the 19th century, when a written tradition emerged. As in other countries in the region, extemporaneous and traditional work-songs formed a basis for the musical tradition.

IV

Economy

Although Kazakhstan is one of the most modern republics in Central Asia, economic reform started very slowly. Privatization programmes were initiated after independence, using joint-stock companies in which citizens were able to invest by using state-allocated coupons. In the first of these schemes about 12 per cent of state enterprises were privatized; in the second programme more than 85 per cent of the small-scale enterprises entered the private sector.

In 2004 Kazakhstan’s gross national product (GNP) was US$33,780 million, equivalent to US$3,870 per head (World Bank estimate). Formerly based almost exclusively on agriculture, the Kazakh economy underwent rapid industrialization during the Soviet period. Industry, which comprised only 15 per cent of total production in the late 1920s, now constitutes the largest branch of the economy with about 42 per cent of GDP and 18 per cent of total employment.

In the period 1992-1996 Kazakhstan attracted more than US$2,900 million of investment, making it the leading destination of direct foreign investment in the region. Although exploitation of the gas and oil deposits in the territory is of great economic importance, the viability of the extraction depends to a great extent on transporting the output economically from an effectively landlocked country.

A

Agriculture, Forestry, and Fishing

Before 1920 agriculture consisted primarily of nomadic herding. Wool, meat, milk, and other livestock products are still leading agricultural commodities, but nomadic lifestyles have almost completely disappeared. During the Soviet period crop cultivation was greatly expanded, owing in part to widespread mechanization and the construction of large-scale irrigation projects. Kazakhstan is a major producer of wheat, which is grown primarily in the north, but bad weather had affected yields recently. Other crops include rice and cotton, which are grown on irrigated lands in the south. The 1995 grain harvest was the worst for 30 years.

Agriculture has been subject to sweeping changes and by the end of the mid-1990s more than 98 per cent of state farms had been privatized, although many of the buyers were former managers of state farms with little incentive or expertise for reforms.

B

Mining

Mining is the leading branch of industry, and the republic contains substantial reserves of chromium, tungsten, copper, lead, and zinc ores. Coal, manganese, nickel, iron ore, chromium, Iceland spar, and cobalt are among the other minerals mined. Oil and natural-gas deposits were discovered in 1960 on the Caspian Sea coast. The Irtysh-Karaganda Canal, the largest water-diversion canal in the former USSR in terms of volume, was built primarily to serve mining activities in the north-central part of the country. Recent exploration confirmed that these deposits are extensive, which has prompted several international corporations to form joint ventures with Kazakh partners to exploit local oil resources. Refining capacity, which does not meet domestic demand, is scheduled for rapid expansion.

C

Manufacturing

Manufacturing is also an important industrial branch in Kazakhstan. Manufactures include cement, iron and steel, mineral fertilizer, and textiles. Light industry has declined since independence and exports are dominated by oil and metallurgy. Overmanning continues to be a problem in industry and has created difficulties in finding foreign partners in state energy and mineral companies.