EurasiaNet Business & Economics - Political Struggle in Kazakhstan a Reflection of Maturation of Country's Economy

BUSINESS & ECONOMICS

POLITICAL STRUGGLE IN KAZAKHSTAN A REFLECTION OF MATURATION OF COUNTRY’S ECONOMY
6/19/02

Oraz Jandosov, co-chairman of the reform-minded Ak Zhol Party, suggests that the ongoing struggle between the opposition and President Nursultan Nazarbayev’s administration are a reflection of Kazakhstan’s economic maturation.

"The economic basis for Kazakhstan has firmed. It is only natural that attention shifts to the political field," Jandosov said.

Economic indicators show that Kazkahstan has the most dynamic growth potential of all former Soviet states. The country recorded 13.2 percent growth in 2001, and registered 12 percent growth during the first two months of 2002. Experts expect Kazakhstan to emerge as a leading global energy exporter in the coming decades.

Businessmen played a prominent role in the formation of the Democratic Choice of Kazakhstan movement. Jandosov stressed that many businessmen who have become active in the political sphere in recent months are not striving to accumulate power. Instead they are intent on fostering a more stable economic environment. "Business wants a clearer political framework because they are trying to make investment decisions with an eye towards the long term," he said. "They want society to be more predictable."

Jandosov stressed that there are sharp strategic differences in the opposition camp. Some parties and movements, including the democratic Ak Zhol party, are willing to work with Nazarbayev to bring about change. Other opposition leaders, most notably former prime minister Akezhan Kazhegeldin, have adopted a far more confrontational stance towards Nazarbayev. [See related EurasiaNet story].

Jandosov said that he has met with Nazarbayev on several occasions and is convinced that the Kazakhstani president continues to support the need for reforms. "He [Nazarbayev] understands he shouldn’t stay on [as president] forever, but he wants to leave when he feels the country is stable," Jandosov said.

"It is a question over timing and the path taken," Jandosov continued, referring to the differences between the opposition and the president. "We want to see gradual, but consistent steps towards political liberalization. At the moment, the president sees this question differently. � What we view as gradual, he may view as radical."

The inability to introduce political reforms could ultimately hamper the country’s economic performance, Jandosov cautioned. He noted that the development of the oil and gas sectors does not "depend much on the political situation." But, Jandosov argued, the lack of political reforms would make the challenge of diversifying the Kazakhstani economy more difficult. He said that changes in the country’s political framework were needed to tackle the problem of pervasive corruption.

"The improvement of the investment climate is closely related to political conditions," he said. "If corruption stays at its current levels, then there can be no discussion about improving the investment climate. � Overcoming corruption will be impossible without a more democratic environment and a free press."

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