Kazakhstan: Macroeconomic Overview Essay

Kazakhstan: Macroeconomic Overview Essay

Length: 2024 words (5.8 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

Kazakhstan: Macroeconomic Overview
Kazakhstan is classified as a continuous transcontinental country located in Central Asia. The country recently gained independence from USSR in 1991 and has a population of 17 million; mostly ethnic Kazakhs and Russians. Politically, the country is a unitary republic and the first (and only) President is Nursultan Nazarbaev - who rules the country in a less than democratic fashion. With an area of 1 million square miles, it is 9th largest country in the world, larger than all of Western Europe. It has borders with Russia, China, Kyrgyzstan, Uzbekistan, Turkmenistan, and adjoins a sizeable part of Caspian Sea. The country is naturally rich in minerals and the extractive industry contributes to majority of its exports (approx. 84%), making it the largest economy in Central Asia.
As an oil dependent economy (approx. 59%), the economic situation of the country is greatly influenced by international oil demand and prices. The major trade partners of the country are: China, Russia, France, Germany & Italy; partners that have great interest in the political-economic structure of the country. The foreign policy of the country is mostly influenced by its historical ties, ethnic and trade relations with other countries. Therefore, its political (and geographical) proximity to Russia and China is understandable. However, Nazarbaev has managed to maintain friendly relations with his neighbors and the west; selling cheap oil/gas to some, handing out friendly loans and assisting the United States in the war on terror. As a massive country on the cross roads of a global divide, they have managed to walk the tightrope of diplomacy by maintaining regional alliances (Russia, CIS & China) and keeping international...

... middle of paper ...

... the state.
5) Increase KMZ stake to 50%: Massive loss for Agip and big gain for the state.
The Kashagan project is important for all the stakeholders involved. The project is at a very crucial stage, the oil has not been extracted but substantial amount of capital has been invested. The potential upside to all the parties is big and nobody wants to jeopardize future revenues. If the Kazakh government overly threatens the consortium, then they risk losing the project as they don’t have the technical skills to develop the projects. The consortium cannot play hard ball because they have a lot of investments on the line. The parties know to play nice in the sandbox until they get to the gold.
Therefore, Agip KCO should sit at the negotiating table with a fair amount of confidence, renegotiate the contract and accept the 15% royalty payment. Everyone wins.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Overview on Inflation Targeting as a Monetary Policy Strategy Essay

- INTRODUCTION Since the 1990s, a large number of industrial countries and a growing number of emerging market and transition economies have adopted inflation targeting as their monetary policy strategy. During the implementation they face many challenges. However, there is no established pattern so countries must learn along the way from one another and more importantly from their own experience. This paper provides an overview on inflation targeting as a monetary policy strategy, necessary preconditions for its successful implementation, its advantages and disadvantages and issues and challenges that emerging market and transition economies face while defining and implementing this monetary...   [tags: transition economies, macroeconomic policy]

Better Essays
2842 words (8.1 pages)

The Macroeconomic Environment Is A Dynamic Environment Essay

- Question 1 The macroeconomic environment is a dynamic environment, which could not remain unchanged (Gajewsky 2015). There are many factors influence the global macroeconomic environment, such as interest rate, exchange rate, GDP,aggregate demand, monetary policy and other macroeconomic variable (Oxelheim and Wihlborg 2008). These factors are closely associated with commodity price. For commodity price, the demand and supply are directly contributing to the price volatility. The changes in interest rates and exchange rates are significant influence for commodity output and it also has impact on the commodity prices (Dornbusch 1976)....   [tags: Inflation, Monetary policy, Macroeconomics]

Better Essays
1224 words (3.5 pages)

Macroeconomic Overview of the Mid-term Review of Annual Policy Essay examples

- Macroeconomic Overview of the Mid-term Review of Annual Policy Gross Domestic Product (GDP): The GDP at the present scenario hovers around 7.9% whereas in the previous year it was at a staggering 9.2%. Taking this into account, the GDP growth forecast has been revised to a rate of 7.5-8%. Inflation: On the basis of Wholesale Price Index: Inflation which is hovering around 11% at present is expected to be controlled to 7% around within March, `09. In the medium term the target is to decrease inflation to 5%, keeping in mind the global rate of around 3%....   [tags: Economics India Economy]

Free Essays
1167 words (3.3 pages)

Current Macroeconomic Situation in the United States Essay

- The United States is the leading economy across the globe and experienced several tribulations in the recent past following the 2008 global recession. Despite these recent challenges, there are expectations among policymakers and financial experts that the country will experience solid economic growth. Actually, financial analysts have stated that the U.S. economy will be characterized by increased consumer spending, increased investments by businesses, reduced rate of unemployment, and reduction in government cut....   [tags: us economy, macroeconomics, recession]

Better Essays
883 words (2.5 pages)

Impact of Macroeconomics on the Housing Industry Essay

- To better understand the real impact macroeconomics has in an economy or a particular industry, it is better to define what macroeconomics is and what it attempts to study. Contrary from microeconomics which studies the impact that individuals or companies have in a local economy, macroeconomics focuses on the behavior of the economy or industries as a whole, in a national or global perspective. (Investopedia.com, 2015) However, microeconomics and macroeconomics are interdependent and complement each other....   [tags: Macroeconomics Essay]

Better Essays
612 words (1.7 pages)

Essay on The Lake County Library System System Overview

- System Overview The Lake County Library System consists of an administrative office located in Tavares, nine member libraries, and six branch libraries. Member libraries include: Fruitland Park Library; Helen Lehmann Memorial Library in Montverde; Lady Lake Public Library; Leesburg Public Library; Marianne Beck Memorial Library in Howey-in-the-Hills; Minneola Schoolhouse Library; City of Tavares Public Library; Umatilla Public Library; and the W.T. Bland Public Library in Mount Dora. Branch libraries include: Astor County Library; Cagan Crossings Community Library in the Four Corners area; Cooper Memorial Library in Clermont; East Lake County Library in Sorrento; Marion Baysinger Memorial C...   [tags: System Overview]

Better Essays
1892 words (5.4 pages)

The Country of Kazakhstan Essay

- Sometimes close mindedness stops the average American to look at the diversity of our country, after all, it is a country of immigrants that for years has become more globalized than one might like or even accept. North America is not the only country that has adopted the culturist diversion. In this country analysis of culture gazes at a country still primitive in some areas, and is also considered a country of immigrants. Kazakhstan, since the beginning of time, has gained many diverse groups of people; since the Soviet Union rule in Central Asia civilizations have moved in and out of the region (Interfax 2014)....   [tags: Cultural Awareness, Cultural Norms, Values, People]

Better Essays
2097 words (6 pages)

Macroeconomic Impact on Business Operations Essay

- Macroeconomic Impact on Business Operations "Job Weak, Unemployment Soars, More Cuts coming, and Bankruptcies Jump 40%." These are typical headlines we see in the newspaper, internet, and journals. We also hear these in news, radio stations and office chats. These are valuable information that economists use to analyze economic situation of the country. These can also be information that individual use to guard their spending....   [tags: Macroeconomics economics economy business]

Free Essays
1738 words (5 pages)

Macroeconomic Impact On Business Operations Essay

- In the following text, readers will form an understanding of what monetary policy is and the effect monetary policy has on macroeconomic facts such as gross discount products (GDP), unemployment, inflation, and interest rates. The text will also explain how money is created and give a combination of monetary policy that will best achieve a balance between economic growth, low inflation, and a reasonable rate of unemployment. Monetary policy is the process governments and central banks use to manipulate the quantity of money in the economy to achieve certain macroeconomic and political objectives....   [tags: Macroeconomics Monetary Policy]

Free Essays
1739 words (5 pages)

Essay about Macroeconomic Impact On Business Operations

- Macroeconomic Impact on Business Operations This paper will discuss the objective of monetary policy and its influence on the performance of the economy as it relates to such factors as inflation, economic output, and employment. Monetary policy affects all kinds of economic and financial decisions people make in this country, whether to get a loan to buy a new house or car or to start up a company, whether to expand a business and whether to put savings in a bank, in bonds, or in the stock market....   [tags: Economics Macroeconomics Business]

Free Essays
1832 words (5.2 pages)