Political Economy of Kazakhstan When Essay

Download this Essay in word format (.doc)

Note: Sample below may appear distorted but all corresponding word document files contain proper formatting

Excerpt from Essay:

At the same time, foreign direct investment capital increased exponentially in different areas. These factors allowed the banking sector become well capitalized with over $1 billion in reserves. (Lewis) (Dosmukhamedov)

According to Baumol (2007) the basic models that were used to help create these transformations were a combination of big firm and enterprise centric capitalism. This is when private businesses were allowed to develop, produce and deliver various products to the market place with little to no outside government interference. This resulted in a series of economic partnerships with countries such as Russia and China for the development of oil / gas natural pipelines. The impact this is having on the economy, is to transform the nation and the industries which are operating throughout the region. These changes have created tremendous amounts of economic growth with this accounting for GDP increases of 10.3% to 4.5% between 2010 and 2012. However, the dependence on oil and gas exports has caused these numbers become volatile when there is a sudden collapse in prices (such as: in 2009 with GDP rates declining to -4.5% in the first quarter). (Baumol)

Regionalization to the Soviet Union

Politically, Kazakhstan has been facing challenges associated with its close cultural ties to Russia. This means that despite the tremendous amounts of economic growth. There have been times when the government has conducted purges to rid itself of any kind of opposition. This has resulted in many political opponents being sacked or individuals who question the authority of the state facing jail terms (based upon: fictitious charges against them). At the same time, the executive branch has been exerting tremendous amounts of influence over the legislature. This is following a similar pattern, with what has been occurring in Russia and many of the former states of the Soviet Union. (Dosmukhamedov) (Baumol) (Lewis)

According to Baumol (2007), this is one of the dangers facing the country as it tries to grow economically. Yet, politically, the country is engaging in many questionable practices to quell descent and consolidate power among select individuals. This is highlighting that the attempt to create perpetual growth may result in some kind of slowdown economically. The way that this will occur is foreign direct investment capital could begin to decline. This is because of concerns that Kazakhstan is not embracing true political reforms to accompany economic progress. This will hurt the nation's ability to work with the West and seek the support its needs from these nations. (Baumol)

General Conditions

The general conditions are that the country has been experiencing tremendous amounts of economic growth. However, this has been taking place based upon the production of oil and gas to countries such as China. The problem is that this model may not be economically viable given the current economic backdrop and political situation. This will make it harder for the country to continue to receive international recognition for their progress because of these conflicting problems hurting its image. It is at this point when foreign direct investors may become hesitant about supporting certain sectors, the government is utilizing to diversify the economy (such as: banking). (Dosmukhamedov)

For instance, since 2010, these criticisms have been mounting based upon the lack of democratic reforms and the consolidation of power under one particular group. This occurred with President Nazarbayev being granted the title of Leader of the Nation and the Parliament allowing him to remain in power until 2020. The courts have declared these actions unconstitutional. Yet, this has not deterred or changed the political situation. (Dosmukhamedov)

Instead, his party has become more dominant in imposing its will. Last year, during a regional election for Parliament, a number of observers claimed that it was rigged with outside parties receiving 7% of the vote. This is indicating that the economic progress has occurred in an oppressive environment. Over the long-term, these challenges could lead directly to problems associated with the inability to create open reforms. This will not provide foreign direct investors with confidence, in the government's ability to enact responsible policies. (Dosmukhamedov)

Works Cited

Baumol, William. Good Capitalism, Bad Capitalism, and the Economics of Growth and Prosperity. New Haven: Yale University Press, 2007. Print.

Dosmukhamedov, Yerzhan. Kazakhstan's Assassinated Democracy. New York: Simon and Schuster, 2012. Print

Lewis, David. "Resources and Rivalries…[continue]

Cite This Essay:

"Political Economy Of Kazakhstan When" (2013, May 11) Retrieved December 9, 2016, from http://www.paperdue.com/essay/political-economy-of-kazakhstan-when-88611

"Political Economy Of Kazakhstan When" 11 May 2013. Web.9 December. 2016. <http://www.paperdue.com/essay/political-economy-of-kazakhstan-when-88611>

"Political Economy Of Kazakhstan When", 11 May 2013, Accessed.9 December. 2016, http://www.paperdue.com/essay/political-economy-of-kazakhstan-when-88611

Other Documents Pertaining To This Topic

  • Political Economy of Caspian Oil and the Pipeline Game

    Americans today think about the problems of getting the oil that is needed to run our economy through the rest of this century, they will no doubt find themselves thinking either about drilling for oil in Alaska - since this topic has been so much in the news over the past several months - or establishing peace in the Middle East so that oil may continue to flow from

  • Geography Political Science A the Main

    The conflicts are not cultural, but political and economical, at times ethnical, but not civilization conflicts. Let's consider some of the most recent ones. The war in Georgia last year was not a cultural conflict: the Georgian and Russian histories are often intertwined, both countries are Orthodox and, according to Huntington, they belong to the same civilization. The conflict was political, determined by Russia's will to dominate the Southern

  • Samsung Electronics Examination and Evaluation of Business

    Samsung Electronics Examination and Evaluation of Business Strategies and Frontier Markets: Brazil The South Korean company Samsung began operations in Brazil in December 1986 when it opened a representation office. Since them Samsung has invested a total of U.S.$300 million, employs almost 1,000 staff members and has a revenue of above U.S.$500 million. Since May 1994, Samsung has started offering services to Brazilian consumers, and from November 1995 it has produced TV

  • Asian Resources and Economic Power

    Asian Resources and Economic Power Asia has always been a centre of attention in world's politics. A single decision made by one of the Asian countries has a tendency of altering the world's political and economic scenery. A change in Afghanistan changed the perception about world's security and enunciated an on-going war of peace. Similarly, China's growth has altered economic policies of many countries in the world. Hence, whatever takes place

  • Domestic and External Factors on African Macroeconomic

    Domestic and External Factors on African Macroeconomic Formulation Domestic and External Factors on African Macroeconomic Formulation Growth, productivity and employment are the most common economic variables to reduce extreme poverty and break poverty trap. Report from World Bank in 2007 revealed that one percent in GDP growth results to 1.3% poverty decline in low-income countries. Moreover, development in the productive capacity leads to reduction in sustainable poverty. With improvement in the economic growth,

  • Shareholder Capitalism as a Model for Economic Development

    Shareholder Capitalism as a Model for Economic Development The idea that shareholder capitalism may serve as a powerful type of economic progression model has been made practical with the growth of credit along with a large marginal tax that delivers a security net for Americans, but additionally has its own limits. Shareholder capitalism, and also the American structure of corporate governance which can serve as its main-operating-system, continues to be held out

  • Economics Relationship Between Population Growth

    For the first time in many years, nations like Japan can no longer guarantee employment for their large population and they must consider a new welfare option. These are all economic situations that are new and indicate that population has an adverse affect on the world economic policies. Conclusion This report aimed to discuss some of the relationships between population growth and economic development. Economic growth will continue to be an


Read Full Essay
Copyright 2016 . All Rights Reserved