Kazakhstan: Crossroads Of Civilisation

Official Name: Republic of Kazakhstan Population: 18.5 million (2017 est.) Capital: Astana Major Languages: Kazakh (official), Russian (co-official, used in everyday business, designated the “language of interethnic communication”). Currency: Kazakh tenge (KZT) Major Industries: oil, coal, iron ore, manganese, chromite, lead, zinc, copper, titanium, bauxite, gold, silver, phosphates, sulfur, uranium, iron and steel; tractors and other agricultural machinery, electric motors, construction materials Major Export Commodities: oil and oil products, natural gas, ferrous metals, chemicals, machinery, grain, wool, meat, coal Major Export Partners: Italy, China, Russia, Netherlands (2016) Major Import Commodities: machinery and equipment, metal products, foodstuffs Major Import Partners: Russia, China, Germany, United States (2016) GDP: US$ 474.3 billion (2017 est.) GDP Per Capita: US$ 26,100 (2017 est.)

- Ong Xiang Hong

Located in the heart of Central Asia, Kazakhstan is a land of diverse cultures.

Between the civilisations of the Far East and Europe, the Kazakh peoples are descended from nomadic tribes that settled in the area. A parade of conquerors’ armies has swept through the area over the millennia, leaving their mark on the culture of the Kazakh lands.

Kazakhstan's economy is larger than those of all the other Central Asian states largely due to the country's vast natural resources. Geographically the largest of the former Soviet republics (excluding Russia), it possesses substantial fossil fuel reserves and other minerals and metals, such as uranium, copper, and zinc. It also has a large agricultural sector featuring livestock and grain.

Indeed, Kazakhstan’s economy is largely reliant on its vast hydrocarbon and mineral reserves. A $36.8 billion expansion of Kazakhstan’s premiere Tengiz oil field by Chevron-led Tengizchevroil should be complete in 2022. Meanwhile, the super-giant Kashagan field finally launched production in October 2016 after years of delay and an estimated $55 billion in development costs. As a result, Kazakhstan’s total oil production in 2017 climbed 10.5%.

However, this makes the Kazakh economy vulnerable to commodity price shocks. Furthermore, Kazakhstan is landlocked and depends on Russia to export its oil to Europe. It also exports oil directly to China. In 2014, due to falling oil prices, Kazakhstan devalued its currency, the tenge, and announced a stimulus package to cope with its economic challenges. The government has also embarked on a new economic policy, titled “Nurly Zhol” (The Path to the Future), aiming to modernise the economy and create a strong platform for new growth.