Politics of privatization in Kazakstan

Central Asian Survey

Volumn 16, Issue 3, 1997, Pages 321-338

  Haghayeghi, Mehrdad ^a  

^a MISSOURI STATE UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

ECONOMIC REFORM; MARKET TRANSITION; PRIVATISATION;

KAZAKSTAN;

EID: 0031419790     PISSN: 02634937     EISSN: None     Source Type: Trade Journal    
DOI: 10.1080/02634939708400994     Document Type: Article

References (88)

1. For a brief overview of the law see, Bess Brown and John Tedstrom, 'Kazakstan and Kyrgyzstan: Central Asia's Leader', Radio Liberty Research Report, Vol 1, No 17, 24 April 1992, pp 58-63.
2. For the text of the law see, Kazakstanskaya Pravda, 1 August 1991, as printed in Foreign Broadcast Information Service: Central Eurasia Report (hereafter FBIS), FBIS-USR-91-049, 13 November, 1991, pp 36-41. See also, Vedomosti KazSSR, 1991, No 27, item 349; 1992, No 7, item 113, and Sovety Kazakstana, 20 May 1993.
3. For the text of the law see, Kazakstanskaya Pravda, 1 August 1991, as printed in Foreign Broadcast Information Service: Central Eurasia Report (hereafter FBIS), FBIS-USR-91-049, 13 November, 1991, pp 36-41. See also, Vedomosti KazSSR, 1991, No 27, item 349; 1992, No 7, item 113, and Sovety Kazakstana, 20 May 1993.
4. For the text of the law see, Kazakstanskaya Pravda, 1 August 1991, as printed in Foreign Broadcast Information Service: Central Eurasia Report (hereafter FBIS), FBIS-USR-91-049, 13 November, 1991, pp 36-41. See also, Vedomosti KazSSR, 1991, No 27, item 349; 1992, No 7, item 113, and Sovety Kazakstana, 20 May 1993.
5. For the text of the law see, Kazakstanskaya Pravda, 1 August 1991, as printed in Foreign Broadcast Information Service: Central Eurasia Report (hereafter FBIS), FBIS-USR-91-049, 13 November, 1991, pp 36-41. See also, Vedomosti KazSSR, 1991, No 27, item 349; 1992, No 7, item 113, and Sovety Kazakstana, 20 May 1993.
6. For the text of the law see, Kazakstanskaya Pravda, 1 August 1991, as printed in Foreign Broadcast Information Service: Central Eurasia Report (hereafter FBIS), FBIS-USR-91-049, 13 November, 1991, pp 36-41. See also, Vedomosti KazSSR, 1991, No 27, item 349; 1992, No 7, item 113, and Sovety Kazakstana, 20 May 1993.
7. This aspect of Article 16 was omitted in the 1993 revision of the law.
8. Under the 1991 version of the law, the first and foremost right to choose a particular form of privatization transaction was given to the labour collective. This was amended on 12 April 1993, rescinding the right of the labour collective to decide the form of privatization.
9. Interview, Darimbet Batirhan, former Co-Chair, Azat Party, 14 June 1993. The cut-off date 1916 was carefully selected by the nationalists to deny the right to property to non-Kazaks, as very few Russians had migrated to the republic prior to that date.
10. Izvestiya, 6 March 1992.
11. Sumary of World Broadcasts (hereafter SWB) British Broadcasting Corporation, SU/W0239, A/1, 17 July 1992.
12. Soo J. Im, Robert Jalali, Jamal Saghir, Privatization in the Republics of the Former Soviet Union: Framework and Initial Results The World Bank, June 1993, p 42.
13. Altogether Nazarbayev issued five decrees or edicts on 5 March 1993. They include two decrees: On State Holding Companies', and On Further Improvement of Administration of Privatization of State Ownership'; and three edicts: 'On Organizational Measures Relating to the Transformation of State Enterprises into Joint-Stock Companies', 'On the National Programme of Destatization and Privatization', and 'On Additional Measures Relating to the Privatization of the Property of State Agricultural Production, Procurement, Processing, and Servicing Enterprises of the Agro-industrial Complex'.
14. Kazakstanskaya Pravda, 16 March 1993, as printed in FBIS, FBIS-USR-93-076, 21 June 1993, p 97.
15. Kazakstanskaya Pravda, 16 March 1993, as printed in FBIS, FBIS-USR-93-076, 21 June 1993, p 97.
16. SWB, SU/W0273, C2/1, 19 March 1993. The decree of 28 April 1992 entitled 'Measures to Set Up the Work of Destatizing and Privatizing Property in Sectors of Material Production', overturned the controversial provision of the 1991 law on privatization and destatization that gave the foreign subjects the right to acquire property. For more information see, The Current Digest of the Soviet Press, Vol XLIV, No 18, 1992, p 23.
17. SWB, SU/W0273, C2/1, 19 March 1993. The decree of 28 April 1992 entitled 'Measures to Set Up the Work of Destatizing and Privatizing Property in Sectors of Material Production', overturned the controversial provision of the 1991 law on privatization and destatization that gave the foreign subjects the right to acquire property. For more information see, The Current Digest of the Soviet Press, Vol XLIV, No 18, 1992, p 23.
18. Kazakstanskaya Pravda, 10 March 1993, as printed in FBIS, FBIS-USR-93-086, 13 July 1993, p 63.
19. Kazakstanskaya Pravda, 10 March 1993, as printed in FBIS, FBIS-USR-93-086, 13 July 1993, p 63.
20. Ibid, p 64. The word 'conditionally' or 'provisionally' was intended to allow for some flexibility, but in reality it paved the way for arbitrary exclusion of enterprises for privatization from their respective categories.
21. In 1995 the GKI introduced new regulations that resulted in the emergence of all cash and all coupon auctions under the small-scale privatization. And for a while the SPF organized auctions based on the so-called Dutch model where the objects could be sold at below start-up price.
22. Ibid, p 69.
23. Ibid, p 67.
24. Ibid, p 65.
25. Ibid, p 70.
26. Interview, Uzef E. Duberman, Vice-Chairman of the State Committee for Privatization, 12 December 1995.
27. For more information on the original statute of GKI see, Kazakstanskaya Pravda, 23 April 1991, as printed in FBIS, FBIS-USR-91-011, 5 July 1991.
28. For more information on the original statute of GKI see, Kazakstanskaya Pravda, 23 April 1991, as printed in FBIS, FBIS-USR-91-011, 5 July 1991.
29. These included White & Case, Credit Commercial de France, MMD, Deloitte & Touche, DFC, Dewe Rogerson. Later, however, American companies such as Ernst and Young, and Price Waterhouse dominated the privatization process in Kazakstan. For more information on the six-company consortium, see The Wall Street Journal, 9 July 1993.
30. SWB, SU/1734, C2/3, 7 July 1993.
31. SWB, SUW/0311, WB/2, 10 December 1993.
32. SWB, SUW/0307, WB/1, 12 November 1993.
33. SWB, SUW/0306, WB/2, 5 November 1993.
34. Leszek Balcerowicz, Wladystaw Jermakowicz, Petr Kozarjevski and Julian Pankow, 'Review of Privatization in Kazakstan', United Nations Conference on Trade and Development, Almaty-Warsaw, April 1995, p 25.
35. For an overview of the problems of agricultural privatization, see Mehrdad Haghayeghi, 'Kazakstan's declining agriculture', Central Asia Monitor, No. 1, 1996.
36. SWB, SUW/0309, WB/, 26 November 1993.
37. Asia, 6 July 1994.
38. Kazakstan Business, Stolichnoye Obozreniye, 30 August 1995.
39. Aktubinski Vestnik, 8 December 1994.
40. Yuzhnyi Kazakstan, 22 February 1995.
41. Caravan Blits, 25 October 1994.
42. Kostanaiskiye Novosty, 28 February 1995.
43. Nadezhda, 13 January 1995.
44. To offer a preliminary measurement of the perceptions toward privatization, this study has made use of a three-point scale. An article was given a positive rating if it explicitly praised the privatization programme or its positive impact on a particular privatized object. An object is defined here as all those items that have been qualified to be included in the privatization programme. These could range from farms, to factories and from retail stores to gas stations. Conversely, an article was given a negative rating if it has been critical of the privatization process in general or its impact on a privatized object in particular. Articles that have offered only information, or have been neither critical nor complimentary in their approach to privatization, have been assigned a neutral rating.
45. Delovaya Nedelya, 9 June 1995. See also, Caravan, 23 September 1994.
46. Delovaya Nedelya, 9 June 1995. See also, Caravan, 23 September 1994.
47. For some examples of property undervaluation, see, Yujnyi Kazakstan, 27 August 1994; AIF, 9 September 1994; Aktubinski Vestnik, 15 November 1994; Express K, 8 December 1994; Elita R, 24 January 1995.
48. For some examples of property undervaluation, see, Yujnyi Kazakstan, 27 August 1994; AIF, 9 September 1994; Aktubinski Vestnik, 15 November 1994; Express K, 8 December 1994; Elita R, 24 January 1995.
49. For some examples of property undervaluation, see, Yujnyi Kazakstan, 27 August 1994; AIF, 9 September 1994; Aktubinski Vestnik, 15 November 1994; Express K, 8 December 1994; Elita R, 24 January 1995.
50. For some examples of property undervaluation, see, Yujnyi Kazakstan, 27 August 1994; AIF, 9 September 1994; Aktubinski Vestnik, 15 November 1994; Express K, 8 December 1994; Elita R, 24 January 1995.
51. For some examples of property undervaluation, see, Yujnyi Kazakstan, 27 August 1994; AIF, 9 September 1994; Aktubinski Vestnik, 15 November 1994; Express K, 8 December 1994; Elita R, 24 January 1995.
52. Handed down on 23 June 1993, this regulation set the structural framework and functional parameters of the PIFs, and outlined the basic procedures for the investment of PICs.
53. For more information see, Dozhivem do ponedelnika, 17 February 1995; Egemen Kazakstan, 14 February 1995.
54. For more information see, Dozhivem do ponedelnika, 17 February 1995; Egemen Kazakstan, 14 February 1995.
55. Elita R, 25 July 1994. See also, Kyzylordinskiye Vesti, 15 April 1995.
56. Elita R, 25 July 1994. See also, Kyzylordinskiye Vesti, 15 April 1995.
57. Kazakstansko-Rossiyskaya, 30 May 1995; Kazakstanskaya Pravda 8 September 1994; and Yuzhnyi Kazakhstan, 24 August 1994.
58. Kazakstansko-Rossiyskaya, 30 May 1995; Kazakstanskaya Pravda 8 September 1994; and Yuzhnyi Kazakhstan, 24 August 1994.
59. Kazakstansko-Rossiyskaya, 30 May 1995; Kazakstanskaya Pravda 8 September 1994; and Yuzhnyi Kazakhstan, 24 August 1994.
60. An estimated 60 billion 577 million housing coupons and one billion 846 million privatization investment coupons were distributed among the public. For more information see, Atmura, 8 September 1994; Caravan Blitz, 5 January 1995; and Kostanai Tany, 18 February 1995.
61. An estimated 60 billion 577 million housing coupons and one billion 846 million privatization investment coupons were distributed among the public. For more information see, Atmura, 8 September 1994; Caravan Blitz, 5 January 1995; and Kostanai Tany, 18 February 1995.
62. An estimated 60 billion 577 million housing coupons and one billion 846 million privatization investment coupons were distributed among the public. For more information see, Atmura, 8 September 1994; Caravan Blitz, 5 January 1995; and Kostanai Tany, 18 February 1995.
63. The housing coupons could legally be used to purchase flats, to pay 50 per cent of the value of an enterprise at small-scale privatization auctions, or to sell them to Narodny Bank. For some examples see, Suhbat, 4 October 1994; Torgai Tany, 9 October 1994; and Svoya Gazeta, 9 December 1994.
64. The housing coupons could legally be used to purchase flats, to pay 50 per cent of the value of an enterprise at small-scale privatization auctions, or to sell them to Narodny Bank. For some examples see, Suhbat, 4 October 1994; Torgai Tany, 9 October 1994; and Svoya Gazeta, 9 December 1994.
65. The housing coupons could legally be used to purchase flats, to pay 50 per cent of the value of an enterprise at small-scale privatization auctions, or to sell them to Narodny Bank. For some examples see, Suhbat, 4 October 1994; Torgai Tany, 9 October 1994; and Svoya Gazeta, 9 December 1994.
66. Panorama, 26 November 1994.
67. Svoya Gazeta, 2 September 1994; Didar, 18 February 1995; and Egemen Kazakstan, 21 February 1995.
68. Svoya Gazeta, 2 September 1994; Didar, 18 February 1995; and Egemen Kazakstan, 21 February 1995.
69. Svoya Gazeta, 2 September 1994; Didar, 18 February 1995; and Egemen Kazakstan, 21 February 1995.
70. One such PIF was Kazkoopinvest which coordinated the activities of Consumer Unity PIFs, established in different rural regions of the republic. For more information see, Atamura, 30 June 1994.
71. Karaganda, 30 September 1994 and Torgaiskaya Nov, 13 April 1995.
72. Karaganda, 30 September 1994 and Torgaiskaya Nov, 13 April 1995.
73. Zvezda Preirtyshya, 28 March 1995 and Egemen Kazakstan, 17 September 1994.
74. Zvezda Preirtyshya, 28 March 1995 and Egemen Kazakstan, 17 September 1994.
75. Jambyl Tany, 15 October 1994 and Shakhtersky Mayak, 8 April 1995.
76. Jambyl Tany, 15 October 1994 and Shakhtersky Mayak, 8 April 1995.
77. Case, 3 September 1994; Kazakstanskaya Pravda, 21 February 1995.
78. Case, 3 September 1994; Kazakstanskaya Pravda, 21 February 1995.
79. One such union of PIFs was announced in Shimkent in January 1995 between Turaninvest, AvtopolisInvest and Kuat-Capital. For more information see, Panorama, 8 April 1995.
80. Nachnem s ponedelnika, 20 January 1994 and Panorama Shimkenta, 14 July 1995.
81. Nachnem s ponedelnika, 20 January 1994 and Panorama Shimkenta, 14 July 1995.
82. Gorizont, 7 January 1995.
83. Modelled after the traditional Kazak council of elders, the city Maslihats have been set up in various regions as supervisory institutions with some control over local administration of affairs.
84. The Uralsk city Maslihat, for instance, passed a resolution to halt the privatization process in the public service sector in the fall of 1994. For more information see, Nadezhda, 5 November 1994.
85. Halyk Kenesi, 27 September 1994; Elita R, 29 November 1994 and 13 December 1994; and Panorama, 17 February 1995.
86. Halyk Kenesi, 27 September 1994; Elita R, 29 November 1994 and 13 December 1994; and Panorama, 17 February 1995.
87. Halyk Kenesi, 27 September 1994; Elita R, 29 November 1994 and 13 December 1994; and Panorama, 17 February 1995.
88. It is noteworthy that as of early 1995 only five out of 173 large enterprises have been privatized. Central Asian Survey (1997), 16(3), 339-351