Kazakhstan (2007)
Population		15.5 million
GDP (US$)		$103.8 billion
GDP Growth		8.5%
GNI Per Capita (US$)		$5.06
Poverty		15%
* % of population below the national poverty line
Kazakhstan at a glance, World Bank 2007

After independence from the Soviet Union in 1991, Kazakhstan rapidly opened its door to the world, unlike its neighboring countries, Uzbekistan or Tajikistan. In 21st century, owing to its rich natural resources and high world price of oil, Kazakhstan has enjoyed the benefits of globalization. Now, Kazakhstan is a leading country in Central Asia, and trying to secure its role as a bridge between Europe and Asia.

The Republic of Kazakhstan is a landlocked country, which is surrounded by five countries: Russia, China, Uzbekistan, Turkmenistan and Kyrgyzstan. Kazakhstan was a part of USSR until its collapse.

Because of its vast territory and abundant natural resources, especially oil from Caspian Sea, Kazakhstan was a major supplier of energy to Soviet Union. Extraction industries kept growing in the post-Soviet era. The World Bank estimates that exports of natural resources account for seventy percent of Kazakhstan’s total exports in 2007.  Now, the world is paying attention to Kazakhstan as one of the most important oil producers outside the Middle East.

Globalization was not always beneficial to Kazakhstan. Being highly dependent on world economy made the economy of Kazakhstan vulnerable to wild fluctuations. Kazakhstan also struggled to avoid the traps of ‘Dutch disease,’ as a rentier state.

Since Kazakhstan exports its exporting oil worldwide, people who are both inside and outside the country are indifferent to its democratic reform. Nursultan Nazarbayev, the president of Kazakhstan has been in president for eighteen years (since Kazakhstan declared its independence.) The country did not struggle much during the transition from communist to ‘democratic’ regime because of the abundant natural resources, giving the country an allusion of wealth. The oil wealth has allowed Nazarbayev to suppress media from opposition parties.

And, this strategy has been proven quite successful. Jerry Huffman from the New York Times described this situation as the ‘Gucci Revolution’ in his article, “Kazakhstan’s Gucci Revolution.”¹

For this analysis, Aliya Tskhay (20), a university student of KIMEP, The Kazakhstan Institute of Management, Economics and Strategic Research, and a NGO worker, who wants to remain anonymous, discussed the globalization’s impact on Kazakhstan.

The interviews were held in May 2009 in Almaty, Kazakhstan.

Culture

Q: How is the globalization changing the Kazakhstani society, regarding the culture?

Aliya: Like everywhere else, people’s life style has changed a lot because of globalization mostly into western way. However, in Kazakhstan, the traditionalism is also expanding at the same time especially among the older generations. Young people are listening to pop music, wearing American brands and even changing the way of thinking. On the other hand, old people do not want to lose their identity as Kazakh people. Thus, they put emphasis on keeping the tradition in their lives.

For example, Kazakh people as nomads have considered treating the guests as a very important part of their lives. Yet, as people move to the cities, people tend to be indifferent to each other. Counteracting on these trend, old generations are stressing on keeping the good side of nomadic tradition as far as they can.

Q: What is special about cultural globalization in Kazakhstan?

NGO worker: After the collapse of Soviet Union, I think the wide openness to globalization was possible in Kazakhstan owing to its multi-nationalities, especially in gender issues. Globalization is losing borders through more communication and sharing ideas. Kazakhstani people are accustomed to this concept since many nationalities have been living here together for long. If there were only one nationality in Kazakhstan, this much of globalization might not be possible.

Sometimes the openness might cause the clash of values or may be too much sometimes, but if we learn how to keep the line, we will be able to survive, not losing our national identities.

Economy

Q: What do you think of the impact of globalization on the economy of Kazakhstan? Positive or negative?

Modern buildings in Astana, the capital city

Aliya: Globalization is really helpful to the economy of the country. The economy of Kazakhstan is highly dependent on the import of natural resources. Foreign investment on this sector by international companies such as Chevron and British Petroleum is huge benefit to the economic growth, even though the government has high share of the consortium. Those international companies are the good resource partners of Kazakhstan. But, it does have some drawbacks, like the two sides of a coin, such as development and environmental issues.

NGO worker: Besides the direct impact of international business to the economy of Kazakhstan, I think globalization is itself beneficial in general, in that it is a part of evolution. A closed country will lose the chance to evolve. The globalization brings higher standards to a country and so it does to Kazakhstan. The economy develops as it tries to meet the new standards. Globalization is going on in Almaty in this sense. But still, the extent is highly dependent on the government in Kazakhstan.

Politics

Aliya: I don't think that political sphere is affected so much by the globalization, as for instance social. Our politicians were brought up during Soviet times and still implement Soviet-like policies. Anyway, our president emphasizes the importance of the Eurasian community and the efforts that all Eurasian countries should do on solving different problems.

NGO worker: The biggest problem of Kazakhstan is corruption. Atyrau, located north eastern part of Caspian Sea, is one of the poorest cities in Kazakhstan. There may be many reasons for this, but one of them is corruption. Even though the city has money, it disappears on the way. Thus, it is not delivered to the people. I think demand gives birth of supply. Administrators are spoiled by the supply.

Development

Q: How does the globalization influence to the development of Kazakhstan?

People getting water from a well, Aralsk

Aliya: As slightly mentioned before, globalization is not fully positive, in the sense of development problem. Entrance of international companies has two sides like a coin. They are energizing the overall economy, but they bring their own specialists when they come, not developing labor forces. Thus, its influence to develop the quality of the laborers in Kazakhstan is limited, and local people do not have high skills.

NGO worker: International companies are here, in Kazakhstan, for themselves, but they should educate more the local people at the same time. Now, when they send their employees, they also send the doctors for them because they do not believe in the health care system of Kazakhstan. In this case, what they should do is try to train local doctors for better health policy, in my opinion.

Environment/Health

Q: What about on Environment or health issues?

NGO worker: Environmental issue is the Achilles’ heel of globalization in Kazakhstan. It is necessary for us to have many factories of the raw materials for economic development. However, it causes serious environment and health problems.

To give you an example, there are zinc factories in the region called Vastochnaka. The filters are needed, but they do not have enough money to buy it, so they just let the dust be released in the air. And we have many similar cases in Kazakhstan, such as the factories of raw materials in Balkhash area. Not to mention about the environment, it threatens people’s health.

I heard that people in Balkhash area would better to wear stockings to prevent their skin to protect their skin from the dust.

It is definitely better for us not to have the factories regarding environment, but if so, the economy will be sink. Thus, it is a difficult problem for us to solve.

Gender Issues

Q: Is globalization in Kazakhstan also widely open on gender issues?

NGO worker: Nevertheless the globalization is widespread in Kazakhstan, gender issue is still sensitive in rural areas. Now days many NGOs hold gender program. However, these may not fit in to the local culture, since a big proportion of the people are Muslims, and the tradition is stronger in rural areas. Thus, NGOs have to check carefully whether the projects fit to the local culture or not, since they may destroy the whole family, if it is done wrong.

Strategy of Kazakhstani Government on Globalization

Nurbakh Rustemov is the chairman of the Committee on International Affairs, Defense and Security of Majilis (Parliament of Kazakhstan.)

“The present situation in the world should be taken as a possibility to provide more sustainability of the country. Modern challenges and contribution of Kazakhstan is to provide stability and security.”

“Having not big, in fact, economy, and comparatively not large human resources we can not allow such luxury to think of the influence on the global tendencies. But we have to think how to lead the policy of Kazakhstan correctly for ensuring its flexibility, ability to avoid sharp angels of the process of globalization using correctly its geographical economic and geopolitical opportunities,” Nurbakh Rustemov stressed.

“World situation should be taken by Kazakhstan as a possibility to provide more sustainability of the country” Kazakhstan Today. October 16, 2008.