Lecture 26: Social-economic life in Kazakhstan in the end of 80-s beg. of 90-s.

The objective of the lecture: To show the tendencies of the economic development in 80-90-s. The main reasons and character of the uprisings in Kazakhstan in 80-s. Introduction of the national currency. Establishment of the connections with the foreign states. Foundation of the joint-stocks and international companies in Kazakhstan.

 

Outline of the lecture:

1. Economic life of Kazakhstan in 80-90-s

2. Strike of miners in Karaganda.

3. Strike Kazakhs in New Uzen.

4. Introduction of national currency.

5. Foreign economic connections.

Crisis in economics, which began in 1987, didn’t get over in next years. In 1988 Kazakhstan exported goods on sum 6,7 billion rubles. Raw materials exported, and last, very expensive goods were imported. Extensive methods in economics developed. The great means, which were invested for development of agriculture didn’t give results.

With official economics “shadow economics” developed. These problems promoted conflicts in society. One of them, events in New Uzen of Mangystau region. The main reasons of uprising were social problems: accommodation, education, unemployment among the young people.

Center extracted oil and gas, but didn’t prepare local specialists, and workers were sent from other republics. Many defects were in trade, in provision of living facilities.

The principles of social justice in distribution of accommodation, food and industrial goods were broken. Workers, which came to New Uzen, didn’t respect traditions of Kazakh people.

Social problems overgrew to national uprising between representatives of local population and Caucasians. In June 1989 bloody uprising took place. This conflict was suppressed by the military troops. Caucasians were evacuated from New Uzen.

In July, 1989 Karaganda miners were on strike after miners of Donbass and Kuzbass. 10-15 thousand miners took part in strike every day.

Firstly, miners demanded increasing of wages, improving working conditions. Then, political requirements added to economic: closing of Semipalatinsk nuclear polygon, ceasing of the monopolies of Union ministries.

D.Tegisov, P.Shlegel, M.Ramaznov, V.Perebeinos and others were leaders of strike. Shchadov I. - minister of Mining industry and N.Nazarbayev - I Secretary of CC CPK came to Karaganda. They promised to satisfy the requirements of miners, that’s why the strike stopped.

 

Introduction of national currency. Kazakhstan was an initiator of the forming of ruble zone of new type. In the beginning November Kazakh delegation headed by Prime-minister S.Tereshchenko arrived to Moscow for sign agreement about coming Kazakhstan to ruble zone. But during the negotiation Russia put forward new conditions, which threatened loss of economic sovereignty. The mass of rubles of old model from neighbor states in November 1993 led to disorganization of money system and inflation in Kazakhstan. After discussion government adopted decision about introduction of national currency. On November 15, 1993 National currency was introduced.

 

In the middle of January, 1992 Kazakhstan was recognized by 30 states: USA, China, Turkey, Iran, Pakistan, Canada, and Switzerland. Tengiz oil was extracted jointly foreign firms “British petroleum”, “British gas” and others.

 

In January 1992 Kazakhstan extracted the first ingot of gold.

 

In January 1992, state army was formed. Young people served within Kazakhstan. In August 1992, President confirmed text of new oath.

 

In June, 1992, after people discussion Supreme Soviet confirmed State flag, state insignia.

 

In December, 1992 new text of national anthem was adopted.

 

In 1992 World Kurultay of Kazakhs was held, where Kazakhs of 13 states took part: scientists, businessmen, students.

 

In the middle December, 1992 Forum of the people of Kazakhstan was held.

 

In September, 1995, according Decree of President the capital of Republic was transferred to Akmola.

 

Foreign economic connections of Kazakhstan. In the end of 80-s Kazakhstan took fifth place in the USSR for export. 97% of exports were raw materials: 90% of yellow phosphorus, 72% of copper, chromium, lead,, zinc, oil, uranium and others.

 

The government of Kazakhstan adopted important economic laws: “About property in Kaz.SSR”, "About principles of foreign economic activity of Kaz.SSR", “About foreign investments in Kaz.SSR” etc.

 

Ministry of foreign economic connections, foreign economic bank were formed. In 1990 the first join Bank “Al-Baraka Bank Kazakhstan” with Saudi Arabia was founded.

 

Connections with Korea were developed, especially with corporations "Samsung", "Gold Star" etc. In 1991, 35 joint companies with 24 states were formed.

 

In order to attract large-scale investments into the economy on the part of industrially developed countries and also on the financial and institutes it was necessary to create the principally new legislative basis for providing the most favored regime of foreign investors. The Law “On State support of direct investments” was adopted. The State Committee of the Republic of Kazakhstan on Investments was formed. According new Laws foreign investors were released from taxes for 5 years. Join enterprises were oriented on output of goods of people consumption. According to estimations of foreign experts, the investment climate in Kazakhstan was one of the most attractive among the CIS countries.

 

Free economic zones were formed: Zhirem-Atasu, Karaganda, Mangistau, Alakul, Zharkent.

 

Relationships between Kazakhstan and China developed. Commodity circulation increased from 4 mln. rubles in 1986 till 21,7 mln. in 1990 in 5 times. In 1990 first student group from Kazakhstan was sent to China. Airline Almaty-Urumchi-Almaty was opened.

  

In the beginning of 1991, 42,4% of population lived in rural place. Level of rural life was lower than town.