JUNE 17 2016 (The Conway Bulletin) – It’s been a tough year for Kazakh President Nursultan Nazarbayev, perhaps one of the toughest. The economy has flat-lined, worrying investors and locals, who have seen jobs disappear and the value of their tenge savings fall.
Unprecedented anti-government protests swept across Kazakhstan in April and May and in June gunmen alleged to have had links to radical Islamists in Syria attacked targets in Aktobe, killing several people.
Mr Nazarbayev has already staged a parliamentary election, a favourite tactic of his to shore up support. This worked only momentarily. Now he has had to spend big. He’s chucked $712m at the economy in a Keynesian attempt to breathe life into it and create jobs and wealth.
Will it work? It’s unclear. He’s picked small and medium-sized companies and house building to target. These are good targets. Mr Nazarbayev is looking to help out ordinary Kazakhs directly. And it’s the same message with the house-building.
Of course, though, there are serious pitfalls. The plan could be badly implemented, money wasted or stolen.
ENDS
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(Editorial from Issue No. 285, published on June 17 2016)