In the very center of Asia there is a large state called Kazakhstan. The economy of this country is characterized by an agro-industrial structure and a powerful mining sector. In terms of its overall potential, it is the largest in the Central Asian region.
Modern market economy of Kazakhstan - what is it like? And what are its prospects for the near future? Let's try to figure it out.
Kazakhstan: economy of the republic (overview)
Kazakhstan is an agro-industrial country. In terms of GDP per capita ($11,000), it ranks 54th in the global ranking. The growth of the economy of Kazakhstan occurs mainly due to the extraction of minerals, that is, the country is characterized by a raw material orientation of the industry.
The official currency of Kazakhstan is tenge (since November 1993). The name comes from the Turkic "denge" - this is how small-sized Turkic silver coins were called in the Middle Ages. By the way, it was this name that migrated to the Russian language - in the form of the well-known word "money".
Main IndustriesKazakhstan's industry is mining, metallurgy (both ferrous and non-ferrous), tractor construction, and the production of structural materials.
Russia, China, USA, Germany are the main trading partners of the Republic of Kazakhstan. The economy of this country is focused on the extraction and export of mineral raw materials. These countries are mainly supplied from Kazakhstan with coal, refined copper, ferroalloys, oil and gas.
Despite this, no more than 16% of the total population of the country is employed in industrial production. Another 24% work in agriculture and forestry, and most of the people of Kazakhstan (about 60%) are involved in the so-called "tertiary" sector of the economy (services and information).
Industry and Energy
The country has a very developed metallurgy, both black and non-ferrous. The national economy of Kazakhstan is very dependent on the stable operation of metallurgical enterprises. In terms of iron ore reserves, the country is in the top ten in the world.
Different types of rolled products are produced at the Arcelor Mittal Temirtau plant in Karaganda. Previously, this full-cycle plant was the flagship of the Soviet ferrous metallurgy. Kazakhstan is also the world's largest producer of refined copper.
The machine-building complex is also very developed in the country. Kazakhstan produces high-quality press machines, machine tools, batteries, and X-ray equipment. The main centers of mechanical engineering are the cities of Aktobe, Shymkent andAstana.
Energy for the country's industry is supplied by 40 power plants (of which 37 thermal power plants and 3 hydroelectric power plants). All thermal power plants operate on their own mined hard coal.
Agriculture
Agriculture is no less important for the economy of Kazakhstan.
The leader in this sector of the economy is the production of grain, namely, the cultivation of spring wheat. Kazakhstan produces about 15-20 million tons of grain annually. Also, significant areas of land (arable land) are occupied by crops of corn and oats. The country has a very developed breeding of sheep, horses, and camels.
Foreign trade
The economy of the Republic of Kazakhstan is tied to the export of such resources and products as oil, oil products, iron ores, non-ferrous metals and grain. At the same time, the country is actively importing cars, various appliances and equipment, and food products. The main item in the structure of the state's exports belongs to the oil industry (about 38%).
In foreign trade, about 60% of both exports and imports fall on the CIS and B altic states. At the same time, it should be noted that Russia is the main trading partner of the country. Kazakhstan is also actively developing and maintaining trade relations with China, Germany, Ukraine, Turkey, Czech Republic, USA, Belarus, South Korea and other countries.
Economic regionalization of the country
The Republic of Kazakhstan is conditionally divided into five economicdistricts, each with its own specialization. These are like:
- North.
- Southern.
- Central.
- Western.
- Oriental.
At the same time, the Western economic region specializes in oil and gas production, the Eastern and Central economic regions - in mechanical engineering, ferrous and non-ferrous metallurgy, the Northern - in the extraction of coal, iron ore, the production of electricity and building materials.
Agriculture, fisheries and forestry are developed in the Southern Economic Region. Rice, wheat, cotton, vegetables, fruits and grapes are actively grown here; developed sheep and horse breeding. Camels are also bred in the deserts of southern Kazakhstan.
Ministry of Economy of the Republic of Kazakhstan
All processes in the country's economy are regulated and coordinated by the government. To be more precise, this function falls on the shoulders of one of its organs. This is the Ministry of National Economy of the Republic of Kazakhstan. True, today this body has a completely different name: "Ministry of Economy and Budget Planning." The pre-existing name was officially retired in August 2014.
The ministry, headed by Yerbolat Dosaev, coordinates the development of all areas of the state's economic policy. The main mission of this body is to form an effective management system that would be able to implement the tasks set by the state. The Ministry also oversees the development of trade processes and relations of the country withforeign partners.
Kazakhstan's economy: prospects for the near future
The development of the economy of Kazakhstan in the near future runs the risk of facing serious difficulties. The cause of the crisis, oddly enough, may be events that take place far from the state borders of the republic, namely, the conflict in Ukraine.
Many experts predict that the war in Donbass, as well as the situation with Crimea, will affect the economy of Kazakhstan, a country that has close ties to Russia. The economic sanctions imposed by the West on the Russian Federation will affect Kazakhstan in one way or another. True, with some inertial delay.
Specialists in the field of national economy predict that Kazakhstan will feel the first consequences of all these processes already in the middle of 2015. Thus, revenues to the state budget of the country will significantly decrease, which will certainly affect the well-being of Kazakhstanis. Accession to the WTO can help the country cope with the crisis. This, according to experts, will help reduce prices for some groups of goods.
Instead of a conclusion
The most powerful - in terms of industrial potential - country in Central Asia is Kazakhstan. The economy of this state is based mainly on the extraction and primary processing of minerals. And this fact can hardly be called positive for the long-term development of the country.
Economic and trade and financial policy of the state is led byMinistry of Economy of Kazakhstan. One of the tasks of this government body, in particular, is the strategic planning of the development of the system of the national economy of the republic as a whole.
