The Transformation of Kazakhstan's Economy

Total Page:16

File Type:pdf, Size:1020Kb

The Transformation of Kazakhstan's Economy Konrad-Adenauer-Stiftung e. V. The Transformation of Kazakhstan’s Economy Nur-Sultan, 2020 UDC 338 (574) LBC 65.9 (5Kaz) Т44 Т44 «The Transformation of Kazakhstan‘s Economy. Nur-Sultan». Nur-Sultan: „IndigoPrint“ LLP, 2020. – 322 p. The book is published by the Konrad-Adenauer-Stiftung e. V.; it contains the articles of experts from Kazakhstan and Germany on main aspects of the economic transformation in the country. The authors describe the economic development, list the most important challenges, and give expert recommendations on various aspects. This book is meant for readers interested in the economic development of the Republic of Kazakhstan. UDC 338 (574) LBC 65.9 (5Kaz) The 1st edition was published in Russian in May 2017. The 2nd edition was published in 2019 and 2020 (in Russian – February 2019, in Kazakh – August 2019, in German – October 2019, in English – July 2020). The articles in the book do not necessarily reflect the opinion of the Konrad- Adenauer-Stiftung e. V. ISBN 978-601-80781-9-4 © Konrad-Adenauer-Stiftung e. V., 2020 Authors: Dr. Nurlan Baigabylov Dr. Vyacheslav Dodonov Thomas Helm Arman Kashkinbekov Adil Kaukenov Dr. Muslim Khassenov Dr. Madina Mussayeva Aliya Mussina Rakhim Oshakbayev Dr. Elmira Otar Dr. Diethard Rudert Dossym Satpayev Dr. Yerbulat Seilekhanov Nurzhan Syzdykov Petro Tokar Baurzhan Uakpayev The Transformation of Kazakhstan’s Economy 4 Contents Contents Foreword 7 Transformation of the Economy of Kazakhstan – Touch Points 9 Thomas Helm (Author), Nurzhan Syzdykov (Co-author) Tax Policy in Kazakhstan 65 Rakhim Oshakbayev Anti-corruption Policy in Kazakhstan: State and Prospects 77 Baurzhan Uakpayev Support and Development of Small and Medium Businesses in the Republic of Kazakhstan 97 Rakhim Oshakbayev Political Risk Management in Kazakhstan 107 Dossym Satpayev Prospects and Risks of the Eurasian Economic Union 129 Dr. Vyacheslav Dodonov Economic Relations of Kazakhstan and Germany: Status and Prospects 145 Dr. Yerbulat Seilekhanov The Factor of One Belt, One Road Strategy in China’s Policy towards Kazakhstan 153 Adil Kaukenov Renewable Energy in Kazakhstan: Challenges and Opportunities for Transition Economies 171 Arman Kashkinbekov The Agricultural Sector of Kazakhstan: Problems and Development Prospects 183 Dr. Diethard Rudert, Dr. Madina Mussayeva, Kazakh- German Agricultural Policy Dialogue About the current Monetary Policy Regime 209 Rakhim Oshakbayev 5 The Transformation of Kazakhstan’s Economy Foreign Investments in Kazakhstan: a Pragmatic Assessment of the Scope and Impact on Economic Development 215 Dr. Vyacheslav Dodonov Legal Regulation of the Labor Market of Kazakhstan: Problems and Solutions 231 Dr. Muslim Khassenov The New Middle Class as a Factor in the Modernization of the Economy and the Consolidation of Kazakhstan Society 263 Dr. Nurlan Baigabylov, Dr. Elmira Otar, Petro Tokar About Budget Parameters for 2019–2021 279 Rakhim Oshakbayev Central Asian Rapprochement. Illusion or Real Chance? 285 Dossym Satpayev The Commodity Partnership of Germany and Kazakhstan as Part of the Commodity Strategy of Germany and the Economic Policy of Kazakhstan 303 Aliya Mussina About the Authors 317 6 Foreword When in May 2017, shortly before the “Astana EXPO 2017” Exhibition, the first edition of the book “The Transformation of Kazakhstan’s Economy” was pre- sented to the public, no one could foresee that in just a few months it would be completely sold out. At the same time, over the past year and a half, Kazakh- stan has undergone changes in many areas of the economy, some of which are very significant. New difficulties and challenges have emerged, but new opportunities and prospects have opened up. Therefore, it is logical that the book cannot be simply reprinted; a new version is needed. This book has undergone a radical revision, additional articles have been included, and new authors have been involved. The surviving articles have been updated or completely revised. The second edition, just like the first, opens with a review introductory arti- cle, in which the authors tried to consider the most important aspects of the successful transformation of Kazakhstan‘s economy from the German point of view. This article is followed by the work of Kazakhstan’s authors - recog- nized luminaries in the fields that they represent, whether it is the field of tax legislation, business promotion or energy policy. Like the first edition, this book is meant for decision-makers in politics and business, as well as educators and all those who are interested in the trends of economic development of Kazakhstan. I wish all readers a fascinating reading of this book, which, I hope, will cause a fruitful discussion of the authors’ statements, as well as the issues of suc- cessful transformation of Kazakhstan’s economy. Thomas Helm, The Director of the Representative Office of the Konrad-Adenauer-Stiftung in Kazakhstan 7 The Transformation of Kazakhstan’s Economy 8 Transformation of the Economy of Kazakhstan – Touch Points Transformation of the Economy of Kazakhstan – Touch Points 1 Thomas Helm (Author), Nurzhan Syzdykov (Co-author) Introduction In December 2016, Kazakhstan celebrated the 25th anniversary of its indepen- dence. On December 16, 1991, Kazakhstan had proclaimed its sovereignty, thus becoming the last republic to withdraw from the Soviet Union before the Alma Ata Declaration formalized its dissolution five days later. The rea- son for this ‘belated’ declaration of independence was less an exuberant loy- alty to the system, but rather the strong interdependence of the Kazakh and Russian economy. Therefore, the first years of independence were marked by great economic and social difficulties – Russia was developing chaotically in the initial market conditions of the 1990s and unable to become a draft horse for the Kazakh economy. Subsequently, Kazahstan was lacking economic per- spectives, its citizens started to emigrate. A large number of ethnic Russians, for instance, left the former Soviet republic and moved to permanent resi- dence in Russia. Equally, out of almost one million ethnic Germans living in Kazakhstan in 1991, about 800,000 made use of the provision of Article 116 of the German Constitution and left for Germany as late repatriates. Quite often, this decision was based on purely economic reasons. The State of Transformation This initial stage, which did not facilitate comprehensive economic reforms, was followed by the commodity boom of the 2000s with a ‘fast money eupho- ria’ and long-awaited consumption opportunities. This boom, as in Goethe’s Faust: “Beautiful moment, do not pass away!”, significantly lowered the desire for reformation. Reforms were planned, but often inconsistently implemented or drowned in the thick of opposing interests. Much was done based on the principle “If it is working, why change it?” It took a dramatic drop in prices on the global commodity markets in 2014 to revive the enthusiasm for reforms. 1 This article is partially based on the article Transformation of the Economy of Kazakhstan: from Resource Dependence to a Modern Industrial Society by authors Thomas Helm and Nico- las Scholz, published in the first edition of the book Transformation of the Economy of Kazakh- stan, Astana, 2017. 9 The Transformation of Kazakhstan’s Economy How eager is Kazakhstan to reform its economy? According to the Transforma- tion Index BTI 2018 published by the Bertelsmann Foundation, Kazakhstan ranks economically in the middle- field of the countries surveyed (64th place out of 129) and on 93th and 81st place in the areas of political reform and governance.2 Regarding political transformations, the country is more specifically clas- sified as a hardline autocracy. An association agreement with the EU, as in the case of Moldova and Ukraine,3 is not mentioned in regard to Kazakhstan, even more than two years after their adoption. However, a Partnership and Cooperation Agreement between the European Union and the Republic of Kazakhstan was signed on December 21, 2015 in Astana. The EU-Kazakhstan Cooperation Council welcomed the agreement’s successful implementation on February 26, 2018. It covers areas such as trade and customs, the envi- ronment and climate change, energy and environmental economics, as well as the rule of law and legal cooperation. The Cooperation Council reaffirmed the parties’ common interests to strengthen relations and cooperation and, in particular, to stabilize and develop the region.4 For some reason, it remains unmentioned that Kazakhstan has been the only country in Central Asia that, for many years, constructively participated in the implementation of the EU Strategy for Central Asia. This fact clearly shows that “overseeing” foreign countries by means of valuation schemes has its limits and often turns out to be more than undifferentiated. This is a quite common phenomenon in regard to Central Asian countries. In fact, the report left out the results of the 2017 EXPO and, in particular, its numerous initia- tives to introduce renewable energy sources. In terms of economic transfor- mation, the index attests Kazakhstan by far the greatest reform drive among the Central Asian nations.5 At the same time, however, it reports a recent slow- down – only two years later – a stagnation in many areas of the economy.6 This is being explained by the still decisive oil price and its decline, as well as by blockade mechanisms related to an overly monostructured ownership of 2 Bertelsmann Foundation: Transformation Index BTI 2018, Country Report
Recommended publications
  • Supporting You in Kazakhstan
    Supporting you in Kazakhstan Linklaters has been active in Kazakhstan for over fifteen years. Utilising its international and local experience, unrivalled ability to provide commercial advice and flexible problem-solving approach, Linklaters has advised many of the firm’s major clients on pursuing their business interests in Kazakhstan. Linklaters has extensive experience Our strong global network means that Adding value working with international corporate we are able to quickly assemble teams > An integrated and experienced CIS clients and financial institutions investing whenever needed by our clients. team, committed to understanding in Kazakhstan and leading Kazakh We frequently coordinate deals in the market across the region and corporates and financial institutions as Kazakhstan through our offices in ensuring our clients get the premium they access the international financial London, Moscow, Warsaw and across service they need to do deals markets and expand their activities Asia, where we have a number of efficiently and effectively inside and outside Kazakhstan. dedicated lawyers with a full awareness > A world class global law firm of the legal and commercial landscape Over the years, we have developed with unparalleled expertise of Kazakhstan. close relationships with local counsel, in executing international whose experience and expertise have Our deep understanding of the local transactions around the world proved instrumental in navigating our economy and politics makes us ideally > Experts in facilitating communication
    [Show full text]
  • Economic Newsletter on Kazakhstan |October 2020
    Economic Newsletter on Kazakhstan |October 2020 CONTENTS MACRO-ECONOMICS & FINANCE ..................................................................................... 2 ENERGY & NATURAL RESOURCES ..................................................................................... 6 TRANSPORT & COMMUNICATIONS ................................................................................ 10 AGRICULTURE ................................................................................................................. 12 CONTACTS ...................................................................................................................... 16 The Economic Section of the Embassy of the Kingdom of the Netherlands in Kazakhstan intends to distribute this newsletter as widely as possible among Dutch institutions, companies and persons from the Netherlands. The newsletter summarises economic news from various Kazakhstani and foreign publications and aims to provide accurate information. However, the Embassy cannot be held responsible for any mistakes or omissions in the bulletin. ECONOMIC NEWSLETTER, October 2020 Embassy of the Kingdom of the Netherlands in Kazakhstan MACRO-ECONOMICS & FINANCE Council for Improving Investment Climate considers prospects for economic recovery At a meeting of the Council for Improving the Investment Climate chaired by Prime Minister Askar Mamin, issues of economic recovery in Kazakhstan in the post-pandemic period were considered. Ambassadors accredited in the country of the US William Moser, of the UK
    [Show full text]
  • Kyzylorda Oblast, Kazakhstan Challenges
    for Kyzylorda Oblast Youth Health Center Oblast Youth for Kyzylorda © Umirbai Tumenbayev, official photographer © Umirbai Tumenbayev, The Kyzylorda Oblast Medical Center, Kyzylorda Oblast, Kazakhstan Kyzylorda City General overview Kyzylorda Oblast (region) is situated along the summer, precipitation generally evaporates, and Syrdariya River in the south-western part of the it is only in winter that the soil receives moisture. Republic of Kazakhstan in central Eurasia. The There are many days with strong wind, and dust region covers an area of 226 000 km2 with a storms can occur in summer. The remaining part distance of 1000 km between its northernmost of the shrinking Aral Sea – the Small Aral Sea – is and southernmost borders (1). Comprising seven located in the southern part of the region. The districts and the capital city – also called Kyzylorda Aral Sea has been described as “one of the worst – the region is more than 190 years old, one of environmental disasters of the world”(2). The the oldest in the country. It borders on Aktobe salinity of the remaining water exceeds 100 g/l. Oblast in the north-west, Karaganda Oblast in In 2008, a project to construct a seawall made the north, South Kazakhstani Oblast in the south- it possible to increase the water level slowly in east, and the Republic of Uzbekistan in the south. the northern part of the Aral. Currently, the level It has a wide range of mineral resources, the of salinity is decreasing, which has resulted in most important being hydrocarbons, non-ferrous the appearance of some species of fish.
    [Show full text]
  • President Addresses First Joint Session of New Kazakh Parliament
    +5° / +1°C WEDNESDAY, MARCH 30, 2016 No 6 (96) www.astanatimes.com President Addresses First Exit Poll Says Nur Otan Joint Session of New Kazakh Wins Overwhelmingly as Parliament, Sets Priorities Mazhilis Retains Previous Makeup greens Birlik (Unity) grabbed mea- By Galiaskar Seitzhan ger 0.35 percent. This outcome is basically a virtual repetition of the ASTANA – President Nursultan previous parliamentary election in Nazarbayev-led Nur Otan Party January 2012, which ended with won 82 percent of the popular vote very similar results. in the parliamentary election in Turnout, however, proved strong- Kazakhstan, according to exit poll er this time setting a new record in results announced at midnight on the country’s electoral history and March 21. beating the result from four years The survey also showed the ruling ago when 75.45 percent of regis- party will be opposed by the same tered voters showed up at the polls. parties in the new convocation of Yulia Kuchinskaya, head of the President Nursultan Nazarbayev (at the speaking rostrum) addresses the first joint session of the Senate and the Mazhilis on March 25. the Mazhilis (the national legisla- Astana-based Institute of Democ- ture’s lower chamber) as it was the racy sociological survey company pro-business Ak zhol Democratic According to Kazakhstan’s Cen- niversary of independence with Nazarbayev recalled that the omy of Kazakhstan. Various social Party and leftist Communist Peo- tral Election Commission Chair- By Malika orazgaliyeva the newly elected parliament. 25th anniversary of Kazakhstan’s problems grow even in relatively ple’s Party again barely crossed the man (CEC) Kuandyk Turgankulov, Three parties and nine members independence coincided with a prosperous countries, he noted.
    [Show full text]
  • Halyk Finance” Has Been Named “The Best Investment Bank in Kazakhstan” for the 6Th Consecutive Year by a Renowned International Financial Magazine, EMEA Finance
    Almaty, 11 April 2016 Press release JSC Subsidiary Organization of Halyk Bank of Kazakhstan “Halyk Finance” has been named “The Best Investment Bank in Kazakhstan” for the 6th consecutive year by a renowned international financial magazine, EMEA Finance. Upon its annual rigorous selection of the world’s leading investment banks – “Europe Banking Awards 2015” – EMEA Finance (www.emeafinance.com), a renowned international financial magazine, has named Halyk Finance “The Best Investment Bank in Kazakhstan 2015”. Halyk Finance has for the 6th consecutive year become the winner of this highly prestigious award where voting is made by the leading industry experts from all over the world, which cements Halyk Finance’s multi-year leading position in Kazakhstan’s investment banking market. Earlier in March 2016, Halyk Finance had also won “EMEA Finance Achievement Awards” for the record 6th consecutive year in the following two prestigious nominations: 1. “The Best Sovereign Bond in EMEA” for the Ministry of Finance of the Republic of Kazakhstan’s USD 4 billion 10- and 30-year dual-tranche Eurobond in which Halyk Finance has acted as the Joint Lead Manager in July 2015; and 2. “The Best Financial Institution Bond” for JSC Halyk Bank’s KZT 132 billion 10-year bond in which Halyk Finance has acted as the Sole Financial Advisor and Bookrunner. “This acknowledgement of Halyk Finance – the investment banking arm of Halyk Group – as the best investment bank in Kazakhstan for the record 6th consecutive year is an extraordinary achievement not only for Kazakhstan and our entire region, but also for the Emerging and Frontier Markets as a whole.
    [Show full text]
  • JSC Halyk Bank
    JSC Halyk Bank Consolidated Financial Statements and Independent Auditors’ Report For the Years Ended 31 December 2016, 2015 and 2014 JSC Halyk Bank Table of contents Page STATEMENT OF MANAGEMENT’S RESPONSIBILITIES FOR THE PREPARATION AND APPROVAL OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED 31 DECEMBER 2016, 2015 AND 2014 1 INDEPENDENT AUDITORS’ REPORT 2-6 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED 31 DECEMBER 2016, 2015 AND 2014: Consolidated statements of financial position 7 Consolidated statements of profit or loss 8 Consolidated statements of other comprehensive income 9 Consolidated statements of changes in equity 10-12 Consolidated statements of cash flows 13-14 Notes to the consolidated financial statements 15-113 Why the matter was determined to be a How the matter was addressed in the key audit matter audit Revenue recognition and calculation of the We tested automated controls over the effective interest rate on individually calculation of the effective interest rate in assessed impaired loans the banking system with the involvement As disclosed in Note 27 to the consolidated of IT specialists. financial statements, interest income on We tested the arithmetical accuracy of individually assessed impaired loans for the interest income accrual in accordance the year ended 31 December 2016 with the effective interest rate amounted to KZT 33,437 million. requirements in IAS 39 Financial The recognition of interest income using Instruments: Recognition and the effective interest rate method on Measurement (“IAS 39”) by re- individually assessed impaired loans, which performing a sample of calculations and is calculated through the banking system, comparing these to accounting records.
    [Show full text]
  • Geopolitical Rivalry, Terrorism Among Threats Facing Eurasia, Nazarbayev
    -2° / -3°C WEDNESDAY, NOVEMBER 21, 2018 No 22 (160) www.astanatimes.com Geopolitical rivalry, terrorism President opens AIX’s among threats facing Eurasia, first trading session Nazarbayev tells Astana Club See story on Page A4. GDP grows 4.1 percent not witnessed such a confrontation Economic contradictions, in Nazarbayev said some parts of By Assel Satubaldina in 10 months of 2018 for quite a long time. The so-called what is known as trade wars, are the Greater Eurasia may turn into post-bipolar world order becomes on the rise with an increasing the scene of large-scale military solid growth with an eight-month ASTANA – Astana Club, a a thing of the past. We witness the threat posed to global economies. confrontation and the Middle East, By Zhanna Shayakhmetova increase of 21.6 percent. Exports platform to debate public issues formation of Greater Eurasia,” “One of such wars is unfolding where instability is caused by the increased by 28.2 percent due to based on Chatham House rules, said Nazarbayev. between the U.S. and China, to- Syrian crisis, political tensions in ASTANA – Kazakhstan’s gross the increased supply of oil and kicked off its fourth annual meet- Escalating the geopolitical ri- gether accounting for the third of Iraq, civil war in Libya and inter- domestic product (GDP) grew 4.1 natural gas, agricultural products, ing Nov. 12. The meeting focused valry between China, Russia and the world’s economy, 20 percent nal challenges, is among such re- percent in a ten-month period, re- aluminium and copper ores.
    [Show full text]
  • This Is a Highly Dangerous Precedent"
    FORUM 18 NEWS SERVICE, Oslo, Norway http://www.forum18.org/ The right to believe, to worship and witness The right to change one's belief or religion The right to join together and express one's belief This article was published by F18News on: 3 February 2009 KAZAKHSTAN: "This is a highly dangerous precedent" By Mushfig Bayram, Forum 18 News Service <http://www.forum18.org> Kazakhstan has resumed jailing Baptists, Forum 18 News Service has learnt. Yuri Rudenko from Almaty Region was the third unregistered Baptist pastor to be jailed for three days for refusing to pay fines for unregistered worship. Baptists point out that this breaks Kazakhstan's Constitution, but officials have refused to discuss this with Forum 18. The jailing took place as Elizaveta Drenicheva, a Russian working as a missionary for the Unification Church (commonly known as the Moonies), was jailed for two years for sharing her beliefs. Other religious believers who strongly disagree with her beliefs, as well as human rights defenders, are alarmed by the jail sentence. "This is a highly dangerous precedent," one Protestant who preferred not to be identified told Forum 18. "It seems to me that any believer who preaches about sin and how to be saved from it could be convicted in the same way." Baptist churches in Akmola region have also been raided and their members questioned, and another Baptist pastor is facing the threat of jail tomorrow (4 February). Kazakhstan has punished a third unregistered Baptist pastor in Almaty Region with three-day imprisonment, Forum 18 News Service has learnt.
    [Show full text]
  • ANNUAL REPORT 2013 Vol. I CONSOLIDATED
    Vol. I Vol. II ANNUAL REPORT 2013 JOINT-STOCK COMPANY CONSOLIDATED FINANCIAL STATEMENTS SOVEREIGN WEALTH FUND «SAMRUK-KAZYNA» 1. INTRODUCTION 5. CORPORATE GOVERNANCE KZ 1.1 ABOUT THE ETYMOLOGY OF THE WORD “SAMRUK-KAZYNA” 5.1. PRINCIPLES AND REPORT ON CORPORATE GOVERNANCE 1.2. SAMRUK-KAZYNA JSC IN FIGURES AND FACTS IN 2013 5.2. THE COMPOSITION OF THE BOARD OF DIRECTORS. REPORT ON WORK OF THE BOARD OF RU 1.3. IMPORTANT EVENTS OF SAMRUK-KAZYNA JSC IN 2012 DIRECTORS 5.2.1. The composition of the Board of Directors, CV of the Members of the Board of Directors of 2. WELCOME ADDRESS BY THE CHAIRMAN OF THE BOARD Samruk-Kazyna JSC OF DIRECTORS OF SAMRUK-KAZYNA JSC 5.2.2. Report on the Work of the Board of Directors of Samruk-Kazyna JSC for 2013 EN 3. WELCOME ADDRESS BY THE CHIEF EXECUTIVE OF SAMRUK-KAZYNA JSC 5.3. THE COMPOSITION OF THE MANAGEMENT BOARD OF Samruk-Kazyna JSC. REPORT ON 4. ABOUT US WORK OF THE MANAGEMENT BOARD OF Samruk-Kazyna JSC 4.1. THE LIST AND BRIEF INFORMATION ON MAJOR SUBSIDIARIES OF SAMRUK-KAZYNA JSC 5.3.1. Composition of the Management Board, CV of the top manager of Samruk-Kazyna JSC 4.2. ORGANIZATION STRUCTURE OF SAMRUK KAZYNA JSC 5.3.2. Report on work of the Management Board of Samruk-Kazyna JSC 4.3. MAIN ACTIVITIES, GOALS AND OBJECTIVES OF SAMRUK-KAZYNA JSC 5.4. SUMMARY ON REMUNERATION OF THE MEMBERS OF THE MANAGEMENT BOARD AND 4.4. ENHANCING THE LONG-TERM VALUE OF COMPANIES THE BOARD OF DIRECTORS OF SAMRUK-KAZYNA JSC 4.4.1.
    [Show full text]
  • Country Update KAZAKHSTAN
    Country update KAZAKHSTAN Summary Kazakhstan’s banking sector remains one of the country’s major weaknesses, with the share of non-performing loans worrying high at 35-40% of total loans in 2011. In early 2012, BTA Bank defaulted for the second time, after the bank and three other banks defaulted in the global recession of 2009. The default is not only negative for the bank itself, but also for the banking sector as a whole, as it undermines investor confidence in Kazakh lenders, and thereby has a negative impact on foreign investment in the country. The image of Kazakhstan was further affected by severe riots in the oil town of Zhanaozen in December 2011, killing at least 16 people and wounding many more people. The authorities took firm measures to restore social stability and in one go, the government cracked down on the opposition and political activists, which allegedly had incited the unrest. Social stability was restored and the likelihood of contagion to other regions is small. However, the crackdown showed that the authorities are increasingly intolerant of oppositional voices. New government measures, created in response to the social unrest, aim to reduce social and labor tensions in the future. As a consequence, companies may come under increased pressure to accept wage demands. Things to watch: Recovery of the banking sector Social and political unrest Author: Reinier Meijer Country Risk Research Economic Research Department Rabobank Nederland Contact details: P.O.Box 17100, 3500 HG Utrecht, The Netherlands +31-(0)30-21-31568
    [Show full text]
  • Legislative Chambers: Unicameral Or Bicameral?
    Legislative Chambers: Unicameral or Bicameral? Legislative Chambers: Unicameral or Bicameral? How many chambers a parliament should have is a controversial question in constitutional law. Having two legislative chambers grew out of the monarchy system in the UK and other European countries, where there was a need to represent both the aristocracy and the common man, and out of the federal system in the US. where individual states required representation. In recent years, unicameral systems, or those with one legislative chamber, were associated with authoritarian states. Although that perception does not currently hold true, there appears to be a general trend toward two chambers in emerging democracies, particularly in larger countries. Given historical, cultural and political factors, governments must decide whether one-chamber or two chambers better serve the needs of the country. Bicameral Chambers A bicameral legislature is composed of two-chambers, usually termed the lower house and upper house. The lower house is usually based proportionally on population with each member representing the same number of citizens in each district or region. The upper house varies more broadly in the way in which members are selected, including inheritance, appointment by various bodies and direct and indirect elections. Representation in the upper house can reflect political subdivisions, as is the case for the US Senate, German Bundesrat and Indian Rajya Sabha. Bicameral systems tend to occur in federal states, because of that system’s two-tiered power structure. Where subdivisions are drawn to coincide with other important societal units, the upper house can serve to represent ethnic, religious or tribal groupings, as in India or Ethiopia.
    [Show full text]
  • France Recognised the Political Nature of the Prosecution of Mukhtar Ablyazov, a Longtime Opponent of Nursultan Nazarbayev
    www.odfoundation.eu France recognised the political nature of the prosecution of Mukhtar Ablyazov, a longtime opponent of Nursultan Nazarbayev. The need to obtain ‘additional testimonies’ against Ablyazov led to the intensification of a ‘hunt’ for former top managers of BTA Bank. In particular, the Kazakhstani authorities have kidnapped Zhaksylyk Zharimbetov from Turkey and are seeking the extradition of Anatoliy Pogorelov and Roman Solodchenko. Report was published on 10 February, 2017 www.odfoundation.eu The Open Dialog Foundation was established in Poland, in 2009, on the initiative of Lyudmyla Kozlovska (who is currently the President of the Foundation). The statutory objectives of the Foundation include the protection of human rights, democracy and rule of law in the post­Soviet area. The Foundation focuses particular attention on the region’s largest countries: Kazakhstan, Russia and Ukraine. The Foundation pursues its goals through the organisation of observation missions, including election observation and monitoring of the human rights situation in the post­Soviet area. Based on these activities, the Foundation produces reports and distributes them among the institutions of the EU, the OSCE and other international organisations, foreign ministries and parliaments of EU countries, analytical centres and the media. In addition to observational and analytical activities, the Foundation is actively engaged in cooperation with members of parliaments involved in foreign affairs, human rights and relationships with the post­Soviet countries in order to support the process of democratisation and liberalisation of internal policies in the post­Soviet area. Significant areas of the Foundation's activities also include support programmes for political prisoners and refugees.
    [Show full text]