Kazakhstan used to be one of the few former Soviet Union states whose economy has been better off after the collapse. Rich in oil, natural gas and other energy sources, it has almost outperformed all other former Soviet bloc states who have all been moving towards market economy. Until last year...
Because Kazakhstan's economy has been relying solely on its energy and mineral exports, it got hit hard when demand for its resources fell dramatically due to the financial crisis. And the article discusses the effects it has had on the domestic policies in Kazakhstan.
2 comments:
The natural resources that Kazakhstan has are in high demand. The new Oil and Gas Ministry that is being created in the country could help improve the efficiency of the industry. If this efficiency is achieved the economy of the country will expand.
I agree with A. Haggerty. Alina's analysis fails to recognize that due to low elasticity of demand, Kazakhstan's energy resources will continue to bring in high revenue even while other countries struggle.
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