EXPLAINER: What post-unrest reforms is Kazakhstan proposing?

the latest tech news, global tech news daily, tech news today, startups, usa tech, asia tech, china tech, eu tech, global tech, in-depth electronics reviews, 24h tech news, 24h tech news, top mobile apps, tech news daily, gaming hardware, big tech news, useful technology tips, expert interviews, reporting on the business of technology, venture capital funding, programing language

FILE - In this image taken from video released by Kazakhstan's Presidential Press Service, Kazakhstan's President Kassym-Jomart Tokayev speaks during his televised statement to the nation in Nur-Sultan, Kazakhstan, Jan. 7, 2022. Kazakhstan's leader h
Image Icon
The Associated PressFILE – In this image taken from video released by Kazakhstan’s Presidential Press Service, Kazakhstan’s President Kassym-Jomart Tokayev speaks during his televised statement to the nation in Nur-Sultan, Kazakhstan, Jan. 7, 2022. Kazakhstan’s leader has trumpeted ambitious economic reforms following the worst unrest in the country of 19 million in three decades. (Kazakhstan’s Presidential Press Service via AP, File)

MOSCOW — Kazakhstan’s leader has trumpeted ambitious economic reforms following the worst unrest in the country of 19 million in three decades. The measures are aimed at reducing the state’s deep involvement in the economy, bridging the gap between the wealthy minority and the struggling majority — and eliminating triggers for further turmoil.

the latest tech news, global tech news daily, tech news today, startups, usa tech, asia tech, china tech, eu tech, global tech, in-depth electronics reviews, 24h tech news, 24h tech news, top mobile apps, tech news daily, gaming hardware, big tech news, useful technology tips, expert interviews, reporting on the business of technology, venture capital funding, programing language

Experts say the announced changes look good on paper, but question whether the new government in the energy-rich former Soviet state will implement them.

A look at the causes of discontent and the government’s promised reforms:

Global Tech News Daily

WHAT’S ROILING KAZAKHSTAN?

On Jan. 2, small protests broke out in an oil city in western Kazakhstan where residents were unhappy about a sudden spike in prices for liquified gas, which is widely used as automotive fuel.

Global Tech News Daily

The demonstrations soon spread across the vast country, reflecting wider public discontent with steadily decreasing incomes, worsening living conditions and the authoritarian government. By Jan. 5, the protests descended into violence, with armed groups storming government buildings and setting cars and buses on fire in Kazakhstan’s largest city, Almaty.

To quell the violence, President Kassym-Jomart Tokayev requested help from a Russia-led security alliance, the Collective Security Treaty Organization. The bloc of six former Soviet states sent more than 2,000 troops.

Authorities arrested thousands of people and more than 220 — mostly civilians — were killed. About a week after the protests began, order was largely restored.

WHY WERE GAS PRICES SUCH A SORE POINT?

The price of gas soared to 120 tenge ($0.27) per liter, a significant increase in the country where, according to Tokayev’s own admission, half the population earns no more than 50,000 tenge ($114) a month. The spike came about as the government moved away from price controls as part of efforts to build a market economy.

Analysts say the increase came as a complete surprise.

“All these decisions were made without transparency. … People woke up to a new gas price that was 2 1/2 times higher,” said Kassymkhan Kapparov, an economist in Kazakhstan and founder of the Economist.Kz think tank.

The western region of Kazakhstan where the protests started also produces oil and gas. Residents were outraged that the price increased while their salaries remained stagnant, said Rustam Burnashev of the Kazakh-German University in Almaty, an expert on regional security in Central Asia.

“They were saying, ‘Guys, we’re producing it, and now we (have to) buy it at astronomical prices?’ They agree that gas prices (all over the world) grow, but in that case (they say) that ‘our salaries should too,'” Burnashev said.

HOW DID KAZAKHSTAN END UP IN THIS SITUATION?

Kazakhstan became independent when the Soviet Union collapsed in 1991. In the first post-independence years, the country saw rapid economic growth and rising prosperity. For almost three decades, it was dominated by Nursultan Nazarbayev, its last Communist Party leader at the time of independence.

The country profited from its natural resources, most notably oil. Foreign investors were welcome, money flowed into state coffers, and social spending helped keep abject poverty low. But key sectors such as mining, telecommunications and banking were dominated by state-owned companies and a few figures connected to Nazarbayev, either politically or through family ties.

As time went on, Nazarbayev increasingly monopolized the country’s politics, suppressing opposition and introducing a highly personalized form of rule as Elbasy, the Leader of the Nation. Nazarbayev resigned in 2019, but until recently remained head of the ruling Nur Otan party and chair of the Security Council. Tokayev, the chair of the upper house of parliament, was appointed president and renamed the capital of Astana to Nur-Sultan, to honor his predecessor.

WHAT ARE THE ISSUES BEHIND THE PUBLIC DISCONTENT?

Discontent among ordinary people goes way beyond gas prices. People are aware of the country’s striking level of inequality and the immense economic privilege of those around Nazarbayev, in which 162 people control more than half the country’s wealth.

Meanwhile, the average monthly wage is around 243,000 tenge, or $558, according to government statistics, although the cost of living is relatively low compared with Western countries.

A recent report by the Organized Crime and Corruption Reporting Project found that a charitable foundation created by Nazarbayev held assets worth $7.8 billion, including stakes in banking, shopping centers, logistics firms and food production.

British authorities issued “unexplained-wealth orders” to Nazarbayev’s daughter and grandson demanding they reveal where they obtained funds for three London properties worth more than 80 million pounds. A judge threw out the orders.

WHAT APPROACH IS THE CURRENT PRESIDENT TAKING?

Tokayev publicly acknowledged Kazakhstan’s rampant inequality and initially tried to quell the protests with a few concessions: He capped gas prices for 180 days, named a new Cabinet, and ousted Nazarbayev from the National Security Council.

The president outlined future reforms to “reset” the economy, remarking, “We need to define new ‘rules of play’ — fairer, more transparent and just.”

Among the ambitious measures he touted are reducing the government’s involvement in and oligarchs’ influence on business; reforming the Samruk-Kazyna sovereign wealth fund, which owns major companies; and ensuring fair competition, a better investment climate and the integrity of private property, in part by overhauling the country’s justice system.

WHAT CHANCE OF SUCCESS DO THE PROPOSED REFORMS HAVE?

Kapparov, the economist, said important questions remain about the Samruk-Kazyna fund and its companies.

“Will there be a privatization? On what scale? In which time frame?” he asked. “Will it be open to everyone, including foreign investors? These issues haven’t been mentioned.”

The inner circle’s power and influence raise serious obstacles to any wide-ranging reform that would be required to privatize state companies and allow outside interests to compete in key sectors, said former World Bank official Simon Commander, now managing partner at emerging markets advisory firm Altura Partners. Tokayev’s speech, while interesting, is “certainly more radical than is likely to be possible. … Let’s hope he turns out to be a genuine reformer.”

But he added: “I’m very skeptical. Their economic and political structure hems them in.”

WHAT ABOUT POLITICAL REFORMS?

During his years in office, Tokayev also has promised limited political reforms, including local elections.

But the crackdown on protesters suggests authorities don’t intend to allow genuine political opposition, and without political reform, economic reform is difficult to imagine.

Greeting discontent with more than 12,000 arrests “is a pretty good metric for how the regime thinks it needs to respond,” Commander said.

———

McHugh reported from Frankfurt, Germany.

News Related

OTHER NEWS

New York Rangers get another comeback win to force Game 7 vs. Pittsburgh Penguins

PITTSBURGH — How many times can the New York Rangers dig themselves into a hole and climb back out? At least one more, as of Friday night. The Blueshirts came ... Read more »

Wilson, balanced Aces cruise to 96-73 victory over Dream

COLLEGE PARK, Ga. (AP) — A’ja Wilson scored 15 points, Kelsey Plum had 14 points and 11 assists and the Las Vegas Aces rolled to a 96-73 victory over the ... Read more »

EXPLAINER: Why frustration lingers in Okinawa 50 years later

The Associated PressFILE – U.S. Marine Corps Sgt. Mike Anglen of Turner, Ore., center, stands atop a cliff as Sgt. Bryan Wallace of Pikin, Ill., waits for his turn before ... Read more »

Astros beat Nationals 6-1 for 11th straight victory

WASHINGTON (AP) — Jose Altuve homered on the first pitch of the game, Yordan Alvarez and Yuli Gurriel also went deep and the Houston Astros extended their winning streak to ... Read more »

Kreider scores late, Rangers edge Pens 5-3 to force Game 7

PITTSBURGH (AP) — Chris Kreider’s long slap shot bounced over Louis Domingue and into the net with 1:28 left and the New York Rangers beat the Pittsburgh Penguins 5-3 on ... Read more »

Astros push winning streak to 11, roll past Nationals 6-1

WASHINGTON (AP) — Jose Altuve homered on the first pitch of the game, and Yordan Alvarez and Yuli Gurriel also went deep to help the Houston Astros extend their winning ... Read more »

Moustakas, Drury power Reds to 8-2 victory over Pirates

PITTSBURGH (AP) — Mike Moustakas homered twice and Brandon Drury drove in four runs to break out of a slump and lead the resurgent Cincinnati Reds to an 8-2 victory ... Read more »

Peterson's bases-loaded walk lifts Brewers over Marlins 2-1

MIAMI (AP) — Jace Peterson walked against Anthony Bender with the bases loaded in the ninth inning and the Milwaukee Brewers beat the Miami Marlins 2-1 Friday night. After starters ... Read more »

Padres: No cancer found during manager Bob Melvin's prostate surgery

SAN DIEGO (AP) — The San Diego Padres say no cancer was found when manager Bob Melvin had prostate surgery on Wednesday. Melvin, 60, was recovering at home Friday after ... Read more »

Ogunbowale, Gray help Wings rally past Mystics, 94-86

WASHINGTON (AP) — Arike Ogunbowale scored 27 points, Allisha Gray had 21 and the Dallas Wings overcame a 15-point second-quarter deficit to beat the Washington Mystics 94-86 on Friday night. ... Read more »

Resigning North Dakota senator led lawmakers in travel costs

The Associated PressFILE – North Dakota Sen. Ray Holmberg listens during a joint House and Senate Appropriations Committee meeting at the Capitol in Bismarck, N.D., on Jan. 7, 2009. Holmberg, ... Read more »

Residents in picturesque California county hit with gas prices topping $7 a gallon

A California county known for its spectacular mountains and proximity to Yosemite National Park has been paying the nation’s highest gas prices. Read more »

Boudreau to return as coach of Canucks next season

VANCOUVER, British Columbia (AP) — Bruce Boudreau will return as coach of the Vancouver Canucks next season after helping to turn the struggling NHL club around as a midyear replacement. ... Read more »

New Zealand leader Jacinda Ardern tests positive for COVID

On Location: May 13, 2022 Catch up on the developing stories making headlines.The Associated Press WELLINGTON, New Zealand — New Zealand Prime Minister Jacinda Ardern has tested positive for COVID-19 ... Read more »

Today in History for May 14th

Highlights of this day in history: Colonists go ashore in Virginia to set up Jamestown; Lewis and Clark begin to explore Louisiana Territory; Israel founded; Skylab launched; Movie producer George ... Read more »

Twitter CEO expects Elon Musk acquisition to close, addresses spending cuts

Musk is awaiting details supporting calculations that spam, fake accounts represent less than 5% of Twitter's users Read more »

Padres: No cancer found during Bob Melvin's prostate surgery

SAN DIEGO (AP) — The San Diego Padres say no cancer was found when manager Bob Melvin had prostate surgery on Wednesday. Melvin, 60, was recovering at home Friday after ... Read more »

Renovated NYC museum shows indigenous perspectives

The American Museum of Natural History in New York City recently finished a major renovation of its exhibition on the native peoples of the northwest coast of North America. Curators ... Read more »

Police release 911 calls in Gilgo Beach case

A woman who disappeared in a beach community on New York’s Long Island more than a decade ago, sparking an investigation into a possible serial killer, said “there’s somebody after ... Read more »

Academy Awards set 2023 Oscars for March 12

The Associated PressFILE – Oscar statue on the red carpet at the Oscars on Sunday, March 27, 2022, at the Dolby Theatre in Los Angeles. Next year’s Academy Awards will ... Read more »

Actor Fred Ward, of 'Tremors,' 'The Right Stuff' fame, dies

The Associated PressFILE – Fred Ward, a cast member in “30 Minutes or Less,” poses at the premiere of the film in Los Angeles on Aug. 8, 2011. Ward, a ... Read more »

Judge refuses to drop elections suit against Trump, media

NEW YORK — A Colorado judge on Friday denied motions to dismiss a defamation lawsuit filed by an election systems worker against former President Donald Trump’s campaign, two of its ... Read more »

Q&A: Becky G unveils every side of herself in latest album

The Associated PressFILE – Becky G appears at the Oscars in Los Angeles on March 27, 2022. Beck G’s latest album is “Esquemas.” (AP Photo/Jae C. Hong, File) NEW YORK ... Read more »

North Korea reports 21 new deaths as it battles COVID-19 outbreak

SEOUL, South Korea — North Korea reports 21 new deaths as it battles COVID-19 outbreak. Read more »

North Korea confirms 21 new deaths as it battles COVID-19

SEOUL, South Korea — North Korea says 21 people died and 174,440 people were newly found with fever symptoms on Friday alone as the country scrambles to slow the spread ... Read more »

White Sox place Giolito on COVID list, activate Vaughn

The Chicago White Sox placed ace Lucas Giolito on the COVID-19 injured list and activated outfielder Andrew Vaughn following a rehab assignment with Triple-A Charlotte on Friday. Giolito began experiencing ... Read more »

Traded back and forth, Ford learns to live out of suitcase

NEW YORK (AP) — Mike Ford has learned to travel light — and quickly. Since the start of the season, the 29-year-old first baseman has played for Tacoma, San Francisco ... Read more »

Falcon 9 rocket launches Starlink satellites

A SpaceX Falcon 9 rocket launched 53 Starlink satellites to low-Earth orbit from California on Friday. (May 13) Read more »

Celtics' Robert Williams remains out for Game 6 vs. Bucks

MILWAUKEE (AP) — Boston forward/center Robert Williams missed his third straight game with an injured left knee as the Celtics tried to keep their season alive Friday night in Game ... Read more »

Padres sign Robinson Canó, plan to use him off the bench

ATLANTA (AP) — The San Diego Padres have signed veteran second baseman Robinson Canó to a major league contract and plan to use him as a left-handed bat off the ... Read more »

WNBA star's Russia detention extended by 1 month

The lawyer for WNBA star Brittney Griner says her pre-trial detention in Russia has been extended by one month. Alexander Boykov told The Associated Press the relatively short extension indicated ... Read more »

Louisiana justices toss COVID-related charges against pastor

Hundreds of thousands of Americans fighting long-haul symptoms from COVID-19 Dr. David Putrino from Mount Sinai Health System and COVID long-hauler Joel Fram discuss the long-term effects of the disease.The ... Read more »

Sandy Hook lawsuits against Alex Jones on track to resume

The Associated PressFILE – This Tuesday, Dec. 11, 2018, photo shows radio show host and conspiracy theorist Alex Jones at Capitol Hill in Washington. The Sandy Hook families’ lawsuits against ... Read more »

Rockies' Bryant closer to return after cortisone shot

DENVER (AP) — Colorado Rockies outfielder Kris Bryant took swings in the cage Friday for the first time since he was sidelined with a sore back nearly three weeks ago ... Read more »

Mariners demote Jarred Kelenic to minors after poor start

NEW YORK (AP) — Rather than make his Citi Field debut against the team that traded him, Jarred Kelenic was demoted to Triple-A Tacoma by the Seattle Mariners on Friday ... Read more »

Biden: ASEAN partnership 'critical' in this moment

Looking to strengthen ties, President Joe Biden welcomes leaders from the Association of Southeast Asian Nations to Washington for the first time. “We’re launching a new era in U.S.-ASEAN relations,” ... Read more »

Phil Mickelson will not defend his title at next week's PGA Championship

Phil Mickelson caught lightning in a bottle last year at Kiawah Island, winning a major championship at 50 years of age. The fairways flooded, and the golf world stood and ... Read more »

Tennessee Titans' Malik Willis on Ryan Tannehill's mentorship comments: 'Everything is cool'

The Tennessee Titans didn’t take issue with Ryan Tannehill’s comments about mentoring third-round rookie Malik Willis. Willis and coach Mike Vrabel were asked about Tannehill’s scrutinized remarks following the first ... Read more »

Lawyers plan suit against Lufthansa over Jewish passengers

Lawyers for 26 passengers said Friday they told Lufthansa that they will sue the German airline for refusing to let members of a large group of Orthodox Jewish passengers board ... Read more »

Wild face offseason after yet another early ouster

While the Minnesota Wild were stacking up franchise records and securing the extra home game for the first round, general manager Bill Guerin carefully acknowledged a “great year” for the ... Read more »