Economy overview: Kazakhstan, the second largest republic in the former Soviet Union, has vast mineral reserves, including reserves of liquid fuels, minerals and metals. Kazakhstan has significant agricultural potential: livestock and grain farming is possible in the steppes. The industry is dominated by the extraction and processing of fossil resources, heavy engineering, the production of construction equipment, tractors and agricultural machines, as well as some types of military equipment. The collapse of the USSR and a sharp decline in demand for traditional heavy industry products led, starting from 1991, to an acute economic crisis, the decline continued until 1994. Implementation in 1995-97. by the government of the country a series of economic reforms and the acceleration of privatization have resulted in the transfer of significant assets to the private sector. Created for the construction of an oil pipeline from Western Kazakhstan (from the Tengiz field) to the Black Sea, the Caspian Pipeline Consortium will significantly increase oil exports over the next five years. In 1998, the country’s economy again experienced a 2.5% decline in GDP, which was due to the fall in world oil prices and the August financial crisis in Russia. Rising oil prices, a good grain harvest and the timely devaluation of the tenge pulled the country out of recession in 2000. Astana focused on industrial policy to diversify the economy and avoid dependence on the oil sector through the development of light industry. See cheeroutdoor.com to know more about Kazakhstan Business. GDP: at purchasing power parity – $85.6 billion (2000 est.). Real GDP growth rate: 10.5% (2000 est.). GDP per capita: at purchasing power parity – $5,000 (2000 est.). The composition of GDP by sectors of the economy: agriculture: 10%; industry: 30%; services: 60% (1999 est.) Proportion of population below the poverty line: 35% (1999 est.). Percentage distribution of family income or consumption: per 10% of the poorest families: 2.7%; by the top 10% of families: 26.3% (1996). Inflation rate at consumer prices: 13.4% (2000 est.). Labor force: 8.8 million people (1997). Employment structure: industry 27%, agriculture and forestry 23%, other industries 50% (1996). Unemployment rate: 13.7% (1998 est.). Budget: revenues: $3.1 billion; expenditures: $3.6 billion, including capital expenditures – NA (1999 est.). Economic sectors: mining and processing of minerals (oil, coal, iron ore, manganese, chromium, lead, zinc, copper, titanium, bauxite, gold, silver, phosphates, sulfur), ferrous and non-ferrous metallurgy, production of tractors and agricultural machinery, electric motors, building materials. Growth in industrial production: 14.9% (2000 est.). Electricity generation: 44.36 billion kWh (1999) Sources of electricity generation: fossil fuels: 87.12%; hydropower: 12.65%; nuclear fuel: 0.23%; others: 0% (1999). Electricity consumption: 44.132 billion kWh (1999) Electricity export: 200 million kWh (1999). Electricity import: 3.077 billion kWh (1999) Agricultural products: grain (mainly spring wheat), cotton; wool, livestock. Exports: $8.8 billion (free on board, 2000 est.) Exports: oil (40%), ferrous and non-ferrous metals, machinery, chemicals, grain, wool, meat, coal. Export partners: EU 23%, Russia 20%, China 8% (1999). Imports: $6.9 billion (free on board, 2000 est.) Import articles: machinery and parts, industrial materials, oil and gas, vehicles. Import partners: Russia 37%, USA, Uzbekistan, Turkey, UK, Germany, Ukraine, South Korea (1999). External debt: $12.5 billion (2000 est.) Economic aid recipient: $409.6 million (1995) Donor of economic assistance: Currency: Kazakhstan tenge. Currency code: KZT. Exchange rate: KZT/USD – 145.09 (January 2001), 142.13 (2000), 119.52 (1999), 78.30 (1998), 75.44 (1997), 67.30 (1996). Fiscal year: calendar year.
Telecommunications
Telecommunications Telephone lines: 1.818 million (1995). Mobile cellular telephones: 11 202 (1997). Telephone system: poor service, outdated equipment; internal: long-distance wire and microwave radio relay communication; mobile cellular communication is available in most of the territory; international: terrestrial lines and microwave radio relay with other republics of the former Soviet Union and with China; with other countries via satellite and fiber-optic cable of the Trans-Asian-European Communication (TAE); ground satellite stations – 2 Intelsat. Broadcast stations: AM – 60, FM -17, shortwave – 9 (1998). Radio receivers: 6.47 million (1997) Television broadcast stations: 12 (and 9 repeaters) (1998). Televisions: 3.88 million (1997) Internet country code: kz Internet service providers: not available. Number of users: 70,000 (2000).
Transport
Transport Railways: total: 14,400 km (industrial lines not included); broad gauge: 14,400 km (1.520 m gauge; 3,299 km electrified) (1997). Roads: total: no data; paved: 150,000 km (these roads are considered to be paved, some are paved and others are gravel and can be used in all weather conditions); unpaved: n/a (these roads become unusable in rainy weather) (2000). Waterways: 3,900 km along the Syr Darya and the Irtysh. Pipelines: for crude oil – 2,850 km; for oil products – 1,500 km; for natural gas -3,480 km (1992). Ports and harbours: Aktau (Shevchenko), Atyrau (Guriev), Ust-Kamenogorsk, Pavlodar, Semipalatinsk. Airports: 449 (2000 est.). Airports with paved runways: total: 28; over 3,047 m: 6; from 2438 to 3047 m: 14; from 1524 to 2437 m:5; up to 914 m: 3 (2000 est.). Airports with unpaved runways: total: 421; over 3,047 m: 11; from 2438 to 3047 m: 18; from 1,524 to 2,437 m: 45; from 914 to 1524 m: 101; less than 914 m: 246 (2000 est.).
Armed forces
Branches of the armed forces: general forces (army), air force, border guards, navy, republican guard. Enlistment age: 18 years old. Total Military Manpower: Male 15 to 49: 4,509,179 (2001 est.). Eligible for military service: men aged 15 to 49: 3,598,859 (2001 est.). Number of persons reaching military age each year: male: 163,628 (2001 est.). Military spending in dollar terms: $322 million (1999) Military spending as part of GDP: 1.5% (1999).
International Issues
International problems International disputes: the boundaries of the national sectors of the Caspian Sea between Azerbaijan, Iran, Kazakhstan, Russia and Turkmenistan are not defined. Illicit drugs: Significant illicit cultivation of hemp, limited cultivation of opium poppy and ephedra (used to produce ephedrine); a limited government eradication program; hemp is mainly intended for consumption in the CIS; through the territory of the country, drugs are supplied from South-West Asia to Russia, North America and Western Europe; growing problem of heroin addiction.
