Republic Of Kazakhstan

National Flag of Republic of Kazakhstan

Location of Republic of Kazakhstan in the world map

Economic Development in Kazakhstan

For the years of independent development Kazakhstan has achieved a successful transition from a centralized planned economy of the former Soviet Union, to a market, liberal pattern of economy. In the shortest time it carried out a large-scale privatization which contributed to the development of a competitive economy. Due to the cardinal changes in the economic model the social structure of the society changed also, there appeared a class of businessmen and a middle class. The intensive policy on introducing new technologies and attracting foreign capital has changed the character of the Kazakhstani economy and entailed the active introduction of high technologies into production. The introduction of the national currency (tenge) in November, 1993 provided preconditions for carrying out radical reforms. Since 1996 the national economy has taken the path of recovering. The country pursued a tough monetary, budgetary and fiscal policy which enabled to considerably reduce the inflation rate. This period marked the formation of the state financial system. By the end of 1997 the majority of small and medium enterprises of Kazakhstan were in the private sector. Large industrial enterprises were handed to confidential management to foreign firms which were able to estimate opportunities in the oil-and-gas and mining sectors of economy.