Economic Development in Kazakhstan: The Role of Large Enterprises and Foreign Investment

By Anne E. Peck | Go to book overview

5

CHALLENGES OF THE ECONOMIC COLLAPSE AFTER INDEPENDENCE IN 1991

For reasons adduced in Chapter 4, Kazakhstan’s industrial economy was substantially concentrated in primary sectors like ferrous and nonferrous metals, fuels, electricity generation, metallurgy and machine building, and chemical concerns at the time of the country’s independence in December 1991. The enterprises were generally large, each sector had only a few, and they were tied closely to related enterprises elsewhere in the Soviet Union. Moreover, around 90 percent of the enterprises in Kazakhstan remained under all-union control until just before independence, even though the Soviet government had taken a number of initiatives to decrease control of various aspects of the economy (Pomfret 1995:79). Not until March 1991 was control of the large enterprises transferred to the government of Kazakhstan and then only as a result of deliberate negotiations undertaken by President Nazarbayev after the first of what would become several coal miner’s strikes in Karaganda.

According to official figures, there were 37,000 state enterprises in Kazakhstan at the end of 1991 (World Bank 1993:75-7). Of these, 200 were very large enterprises with 5,000 or more employees. Another 1,300 were classified as special enterprises because they were in the mining, oil, power, water, heating, and/or telecommunications sectors and thus of particular concern to the new government. Of the total of 37,000 enterprises, about 18,500 (or half) comprised the industrial economy, and those in metallurgy, mining, heating, and electricity accounted for over 60 percent of the fixed assets in the industrial sector. There were also a substantial number of ‘one-company towns, ’ cities built to support the development of a specific resource and whose entire livelihood depended upon the continuation of that enterprise. Thus, Kazakhstan’s economy was in many ways very fragile despite the great mineral wealth upon which it was built.

Planning even before independence, the government developed a three-phase program to privatize virtually all of the state enterprises. 1 In the initial phase, the legal framework was to be developed, and up to 50 percent of the small and medium-sized enterprises, that is those with 200 to 5,000 employees, were to be privatized in the small-scale privatization program. 60

-60-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
Economic Development in Kazakhstan: The Role of Large Enterprises and Foreign Investment
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
/ 278

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

    Already a member? Log in now.