DATE=12/17/96
TYPE=YEAREND REPORT
NUMBER=5-35235
TITLE=96: KAZAKSTAN
BYLINE=ALI JALALI
DATELINE=WASHINGTON
CONTENT=
NOT VOICED:
INTRO: KAZAKSTAN IN CENTRAL ASIA KEPT UP ITS EFFORT IN 1996 TO OPEN ITS ENORMOUS OIL RESERVES TO INTERNATIONAL MARKETS. PROCEEDS FROM THE SALE ARE ESSENTIAL FOR FUNDING ECONOMIC REFORM IN THE FORMER SOVIET REPUBLIC. V-O-A'S ALI JALALI REPORTS THE GOVERNMENT AND THE OPPOSITION BOTH DREW HEAVILY UPON THE STATE OF THE ECONOMY TO JUSTIFY THEIR DIFFERING POLITICAL AGENDAS.
TEXT: AS THE YEAR DREW TO A CLOSE, LAND-LOCKED KAZAKSTAN REMOVED A MAJOR HURDLE TO THE BUILDING OF A MULTI-NATIONAL EXPORT PIPELINE FROM ITS TENGIZ OILFIELDS TO THE BLACK SEA PORT OF NOVOROSSIISK. KAZAKSTAN, RUSSIA, OMAN AND EIGHT REGIONAL AND WESTERN OIL COMPANIES SIGNED AN AGREEMENT ON DECEMBER SIXTH, PAVING THE WAY FOR CONSTRUCTION OF THE LONG-DEBATED PIPELINE.
HOWEVER, ANY SUBSTANTIAL REVENUE FROM THE PROJECT, WHICH WILL INITIALLY PUMP 28 MILLION TONS OF KAZAK OIL ANNUALLY, IS AT LEAST THREE YEARS AWAY.
IN THE MEANTIME, KAZAKSTAN MADE SEPARATE OIL EXPORT DEALS THIS YEAR WITH IRAN AND AZERBAIJAN TO RAISE FUNDS FOR ITS CASH-STRAPPED ECONOMY. IN AUGUST, ALMATY AND TEHRAN AGREED TO SHIP TWO MILLION METRIC TONS OF KAZAK OIL ANNUALLY THROUGH IRANIAN PORTS ON THE PERSIAN GULF. A SIMILAR DEAL WAS STRUCK WITH AZERBAIJAN IN OCTOBER.
TO FURTHER STABILIZE THE ECONOMY, KAZAKSTAN SOLD OFF MANY OF ITS LARGE STATE ENTERPRISES DURING THE YEAR AND INITIATED A NUMBER OF FINANCIAL REFORMS.
BUOYED BY THE SIGNS OF ECONOMIC GROWTH FOR THE FIRST TIME SINCE THE COUNTRY GAINED INDEPENDENCE, KAZAK PRESIDENT NURSULTAN NAZARBAYEV ANNOUNCED IN OCTOBER THAT THE COUNTRY IS EMERGING FROM ITS ECONOMIC CRISIS.
BUT A RECENT REPORT BY THE OPPOSITION "AZAMAT" MOVEMENT CLAIMS THAT THE ECONOMY CONTINUED TO SLIDE DURING THE YEAR. THE REPORT ASSERTS THAT THE SITUATION IS NOT EXPECTED TO IMPROVE WITHOUT CHANGES IN WHAT IT TERMS THE AUTHORITARIAN POSTURE OF THE GOVERNMENT.
DURING THE PAST TWO YEARS, PRESIDENT NAZARBAYEV CONSOLIDATED HIS GRIP ON POWER THROUGH A NUMBER OF CONSTITUTIONAL CHANGES. SUPPORTERS OF THE KAZAK LEADERS ARGUE THAT THE SHIFT WAS NEEDED TO ENSURE STABILITY DURING A PAINFUL TRANSITION TO DEMOCRACY AND MARKET ECONOMY.
HOWEVER, AS 1996 BEGAN WITH A MUCH STRONGER PRESIDENT, IT ALSO GAVE RISE TO GROWING POLITICAL DISSENT AND LABOR DISCONTENT. SHORTLY AFTER THE OPENING OF THE NEW, WEAKER PARLIAMENT, A NATIONWIDE OPPOSITION MOVEMENT, AZAMAT -- OR CITIZEN IN KAZAK -- WAS FORMED TO BALANCE THE POWER OF A STRONG PRESIDENT.
IN LATER MONTHS, THE AZAMAT BECAME A FOCAL POINT FOR EXPRESSION OF PUBLIC DISCONTENT OVER THE GOVERNMENT'S INABILITY TO DEAL WITH SLIDING LIVING STANDARDS, CORRUPTION AND MISMANAGEMENT. THOUSANDS OF WORKERS AND PENSIONERS TOOK TO THE STREETS OF ALMATY PROTESTING UNPAID WAGES AND PENSIONS.
PRESIDENT NAZARBAYEV BLAMED THE NATIONAL BANK FOR THE WAGE-ARREARS. HE ALSO CHIDED THE OPPOSITION MOVEMENT AND INDEPENDENT MEDIA FOR MAKING TROUBLE DURING WHAT HE CALLED A DIFFICULT STAGE OF ECONOMIC TRANSFORMATION IN THE COUNTRY.
IN NOVEMBER, CITING FREQUENCY INTERFERENCE WITH THE LOCAL AIR TRAFFIC CONTROL, THE GOVERNMENT SUSPENDED SEVERAL INDEPENDENT RADIO AND TELEVISION STATIONS IN ALMATY UNTIL NEW ARRANGEMENTS CAN BE MADE.
EVGENY ZHOVTIS OF KAZAKSTAN-AMERICAN BUREAU ON HUMAN RIGHTS SAYS HE SUSPECTS THE FREQUENCY INTERFERENCE ISSUE HAS BEEN USED BY THE GOVERNMENT TO RESTRICT THE MEDIA.
BUT MR. ZHOVTIS ADMITS THAT THE KAZAK GOVERNMENT MADE A NUMBER OF ACHIEVEMENTS IN DEMOCRATIZING THE JUDICIAL AND LAW ENFORCEMENT SYSTEM DURING THE YEAR.
INDEPENDENT OBSERVERS SAY IT WILL TAKE YEARS BEFORE THE LONG-TERM ECONOMIC VENTURES BEAR FRUIT AND LEAD THE COUNTRY OUT OF ECONOMIC CRISIS. UNTIL THEN, THEY SAY, THE ECONOMY WILL CONTINUE TO BE A MAJOR FACTOR IN SHAPING THE COURSE OF POLITICAL DEVELOPMENTS IN KAZAKSTAN. (SIGNED)
NEB/AJ/MMK
17-Dec-96 6:25 AM EST (1125 UTC)
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Source: Voice of America
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