General Status of Economic Development

 
 
The Central Asia region includes five countries: Kazakstan, Tajidistan, Uzekistan, Turkmenistan, and Kyrgyzstan. The Central Asian countries became independent suddenly without any preparation in economy. Moreover, these countries were stranded under the shackle of Soviet "division of labor" with unitary and lopsided economic structure as well as weak economic base, which make their economic conditions be far from complete as an independent sovereign state. Therefore, these countries became aware of the difficulty in economy very soon. Most enterprises could not operate and were at a standstill. The countries had no way to get money, which makes the finance more difficult. From independent date up to now, the economy of these countries are always shrouded in crisis. Of course, it should be noticed that through the efforts of national people for 10 years and the assistance of international community, the five countries in Central Asia also achieved certain achievements in economic recovery and development. Most of these countries have already got through the most difficult period, which should also be affirmed. Among these countries, Kazakstan is a big nation, the economy of which develops rapidly and is in the leading position. Therefore, the information industry development of Kazakstan is representative among these 5 countries.

1.1 General Status of Economic Development
1.1.1 Overview
The Republic of Kazakstan lies in the northern part of Central Asia of the former Soviet Union. It is located at the hinterland of Europe-Asia Continent. This country is with the length of 3000 km from east to west, the width of 1700 km from north to south, and the territorial area of 2.7173 million square km. It is the country with the greatest area and richest resources in Central Asia. The population is 17 million. The capital has already been moved from Alma-Ata to Astana.
1.1.2 General status of economy
Over the past 10 years since independence, the economic development in Kdazakstan also passed through an arduous course. After the disintegration of the former Soviet Union, Kazaskstan broke off the economic links with other adjacent countries for a time, which resulted that all economic indexes dropped down rapidly. Especially the economic crisis of South East Asia in 1997 and the financial storm of Russia in 1998 attacked heavily on Kazakstan economy, which was already very weak. As a result, Kazakstan economy attacked heavily on Kazakstan economy, which was already very weak. As a result, Kazakstan economy dropped down to the bottom, and the GDP decreased 2.5%. In 1999, the GDP was US$ 14.12 billion. Only up to 2000, due to the better exterior economic environment and series of financial adjustment measures implemented in the country, the economic situation in Kazakstan took a favorable turn. The GDP reached to US$ 18.41 billion, 9.6% higher than that in 1999. The GDP per capita was US$ 1240.6; and the annual inflation rate was 9.8%. By the end of 2000, in Kazakstan, gold and foreign exchange reserves were US$ 2.1 billion, the foreign capital intake was US$ 10.858 billion, and the total volume of foreign debts is US$ 11.861 billion, reached to the highest level since independent date.
In the first half year of 2001, based on the information published by Kazakstan State Statistical Bureau, the GDP increased 14% over the same period of the preceding year, among which industrial production increased 13.6%, agricultural increased 4.6%, communications and transport increased 7.4%, and foreign capital intake increased 33.5%. The average annual income per capita in Kazakstan increased actually 10%, being 16880 tengoes (about US$ 115)
The main pillar industries in the Republic of Kazakstan are energy source, power industry, as well as agricultural products processing industry. Kazakstan has relatively advanced technical equipment in gelolgic exploration, excavation, smelting, etc. Both processing industry and mechanical manufacturing industry are underdeveloped; and the base of light industry is unstable. In 2000, the industrial output value was US$ 12.49 billion, 14.6% higher than that in the preceding year.
1.1.3 The economic development in the Republic of Kazakstan has four main features:
Privatization is progressed rapidly. At present, the private economy has already occupied more than 80% of national economy;
Enlarge the foreign capital intake. Since the founding of the Republic to the end of 1998, it has received foreign investment more than US$ 10 billion. The foreign capital possessed per capita was US$ 400, being the first among the countries of the Commonwealth of Independent States;
Highly rely on external commodities, especially for high-tech products, daily articles and light industry products, which are almost substitute by the commodities from the USA, Germany, Japan, Korea, China, and Turkey;
The development is unbalanced in different areas. Compared with the national average level, for the inhabitant in some petroleum producing areas, the average annual income per capita has already approached to US$ 300. Just as what was said by the former Economic Minister of Kazakstan:? The index of US$ 115 per capita can not become the excuse for our unrealistic optimism". In addition petroleum and natural gas are the main source of foreign exchange for Kazakstan. The price stability of energy sources in international market has great effects on the economic development of Kazakstan. Moreover, Kazakstan is an inland country, so the export of energy sources is main difficult problem faced by Kazakstan. Some analyzers believe whether the economy of Kazakstan can maintain continuous and stable development, it depends to a great extent on the actual quotations of international energy source market as well as the improvement of investment environment inside Kazakstan.