Kazakhstan country risk introduction

Basic Facts:

Geography:

Kazakhstan is located on the joint of two continents – Europe and Asia. The territory of the Republic of Kazakhstan is around 2.7 million square kilometers and is stretched between the lower reaches of the rivers Volga in the west and the Western Siberian lowland in the north. In 2014, population was 17 948 816 [1].

The capital of Kazakhstan was moved in 1996 to Astana, in the north-central part of the country far from any of Kazakhstan's borders. The former capital, Almaty, is still the largest city and most important financial and cultural center. It is located at the base of the Tien Shan Mountains in the far southeast near both China and Kyrgyzstan.
Ethnically the Kazakh republic is very diverse: the Kazakhs make up nearly 63% of the population, ethnic Russians are just under 24%, and smaller minorities as Uzbek, Ukrainian, Uighur, Tatar and German are the remaining 13% [2]. On the area of lands the republic takes the ninth place in the world and the second place on the territory among the Commonwealth of Independent States (CIS or the Russian Commonwealth) countries [3].

Division of the Country:

The country is a unitary State with a presidential form of government and the administrative structure of Kazakhstan includes 14 areas (named “oblast”) and 2 cities that consist in the 16 main administrative divisions. The country became independent with the dissolution of the Union of Soviet Socialist Republics (USSR) in 1991 [4]. Around 40% of the population is rural and 60% is urban [5]. There are 87 cities and towns throughout the country. Kazakh people are historically nomadic; as a consequence, many of their cultural symbols reflect this nomadic life. For example, the horse is the main symbol of the Kazakh culture. As a former republic of the Soviet Union, Kazakhstan’s official languages are Kazakh and Russian. Russian is used in everyday business and designated as the language of “interethnic communication” and is spoken by 94% [6] of the population.

Culture:

Suppressed under Soviet rule, the main religion, Islam, is undergoing a revival. Islam is indeed the main religion in the country (70.2% [7]) and Christianity is the second one (26.2%) – the main part of the Christians is Russian Orthodox. Kazakhs are very proud of their Muslim culture and the Muslim star can be often seen as well as traditionally Muslim robes. Kazakhstan’s land and history unite its people. Kazakhs are proud of the nation's natural resources, agricultural potential, and natural beauty. They are also united in their shared history as a neglected republic during the Soviet years. 8.6 million People are employed in Kazakhstan and the unemployment rate is 5.2% [8]. Kazakhstan has become the dominant nation of Central Asia generating 218 billion [9] dollars GDP in 2014 including an annual GDP growth of 4.4%.

Politics and Economy:

Politically, Kazakhstan has been dominated since independence in 1991 by former Communist Party chief Nursultan Nazarbayev, whose long authoritarian rule has faced few challenges from weak opposition parties. He remains popular among many ordinary Kazakhs. His supporter say he preserved inter-ethnic accord and stability during the reform in the 1990s, and is widely credited for the country's impressive economic growth in first decade of the new millennium. Nazarbayev has concentrated extensive powers in his own hands and is accused by the opposition of suppressing dissent. He says democracy is a long-term goal, but that stability could be at risk if change is too swift. Since independence following the collapse of the Soviet Union in 1991, major investment in the oil sector has brought rapid economic growth, and eased some of the start disparities in wealth of the 1990s.
On the 14th December 2012 Nursultan Nazarbayev announced a new strategy for Kazakhstan that he called the “2050 Strategy”. The objective is to develop the country to position Kazakhstan among the top 30 global economics by 205020.

[1] http://www.indexmundi.com/
[2] 2009 Kazakhstan National Census
[3] http://www.worldatlas.com/webimage/countrys/asia/kz.htm
[4] Committee on Statistics of Kazakhstan (on the 01/01/2014)
[5] Committee For Construction, Housing and Utilities and Long Management of the National Economy of Kazakhstan (as of January 1, 2014).
[6] 2009 National Census of Kazakhstan
[7] 2009 National Census of Kazakhstan
[8] World Bank, Kazakhstan Data
[9] World Bank, Kazakhstan Data

World Economic Forum's Indicators for Kazakhstan in 2015