Wednesday, 08 December 2021 00:00

Political and Economic Reforms in Kazakhstan Under President Tokayev Featured

By Svante E. Cornell, S. Frederick Starr and Albert Barro

Central Asia-Caucasus Institute & Silk Road Studies Program
Silk Road Paper
November 2021

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Executive Summary

 

 211201Kaz-Reforms-coverKazakhstan’s leaders have long harbored ambitious visions for their country’s future. The country’s first President, Nursultan Nazarbayev, launched several far-reaching goals for the country’s development, most notably in 2012 the “Kazakhstan 2050” strategy, which aimed for Kazakhstan to take a place among the world’s 30 most developed states by mid-century.

For a young country in the third decade of its independence, such lofty goals clearly required far-reaching reforms. Still, Kazakhstan’s leadership focused primarily on reforming the country’s economy. While acknowledging the need for political reforms, the leadership explicitly followed a strategy that prioritized the economy. President Nazarbayev on numerous occasions stated that “we say: the economy first, then politics.”

But major shifts in the global political economy in the past decade forced a revision to this strategy. By 2015, it had become clear that a focus on economics alone would not be sufficient for Kazakhstan to reach its stated goals. In fact, the diversification of the economy required measures that went deep into the political realm. Furthermore, very much as a result of the country’s successful economic development, the population of Kazakhstan increasingly voiced demands for political reform as well.

Reform initiatives in the political sphere began to be launched prior to President Nazarbayev’s unexpected resignation in March 2019. Among other, constitutional amendments were introduced to strengthen the role of parliament. Following the election of President Kassym-Jomart Tokayev, the reform agenda explicitly focused on political and economic fields in simultaneous, parallel tracks. In the three yearly State of the Nation addresses that President Tokayev has held, he has issued at times scathing criticism of the state of affairs in various sectors of the country’s governance, and emphasized the priority accorded to systemic reform.

President Tokayev introduced new institutions to oversee reforms, most notably the National Council of Public Trust, which brings together government officials and respected members of civil society. This institution, and its working groups, has been a vehicle for the generation of and deliberation on ideas for reforms.

Reforms in the economic field have been ambitious. Kazakhstan’s economy has been primarily driven by the exportation of oil and natural gas. However, the 2008 and 2014 price shocks revealed just how vulnerable the Kazakhstani economy was to the oil price, and it catalyzed a mobilization toward reform to reduce the country’s dependence on fossil fuels. Toward this end, the country seeks to energize its manufacturing and agricultural sectors. In manufacturing, the country is focused on developing an ‘economy of simple things’ in which the nation becomes a primary producer of all the low-tech products that Kazakhstanis use every day. For agriculture, the country is mobilizing government resources to support seven separate ‘ecosystems’ of food and agricultural production. 

To drive technological advancement, Kazakhstan is undergoing a number of reforms that will develop an entrepreneurial culture, attract investments in the tech industry, and lay the foundation for Kazakhstan to serve as a technological hub in Central Asia. The country has already progressed significantly on an initiative known as “Digital Kazakhstan,” which seeks to transform the way that citizens, businesses, and government bureaus all interact with each other. The strategy employs modern technologies like AI, 5G, and Smart City technology to boost R&D, e-commerce, venture financing, and fintech development. As part of this strategy, Kazakhstan opened a financial and technological innovation hub in 2018, known as the Astana International Financial Centre, to attract investments, support innovation, and arbitrate disputes in private business.

President Tokayev’s reforms in the human rights area can be divided into two categories: a first where the government clearly seeks to achieve change, but has struggled to find ways to succeed; and a second in which steps taken are more cautious. In the former category, President Tokayev has embarked on a mission to effectuate a wholesale redefinition of the role of law enforcement in society, abandoning the Soviet-era model whereby the police is a tool of the state in favor of a modern police force that provides service to citizens. This includes change in the judiciary system, to make the court system more adversarial, separate prosecutors from judges, and put defense and prosecution on an equal standing. Similarly, the issue of women’s rights gained importance during the pandemic, amidst an increase in reported violence against women. President Tokayev has made this issue a priority, ordering the strengthening of special units in the Ministry of Internal Affairs focused on domestic abuse, and the start of a nationwide campaign to end violence against women. Still, at lower levels of the state apparatus the resistance to change appears to remain, in contrast to the visible interest of top echelons to put an end to this problem.

The government is proceeding more cautiously in areas like freedom of speech and assembly. Affirming the importance of “overcoming the fear of alternative opinion,” President Tokayev launched reforms to Freedom of Assembly under which peaceful rallies now require only notification of, rather than permission from authorities. The law promulgated in May 2020 nevertheless did not go quite as far the President indicated, as local executive bodies maintain the power to reject the holding of rallies. Concerning freedom of speech, limited reforms have been introduced, such as the decriminalization of defamation, a tool frequently used to stop efforts to expose wrongdoing by government officials. Similarly, laws against the vaguely defined “fomenting” of hatred were changed to “incitement.” These changes will have an effect if the culture of officialdom changes – if, that is, the mentality of the judicial system shifts from one that instinctively protects officials from citizens to one protecting citizens from officials. 

Reforms in the field of political participation have been cautious. Domestically, the leadership is torn between growing public demands for a greater voice and the elite’s inherent caution, coupled with the need to manage entrenched interests skeptical of liberalization. Externally, the government is similarly torn between Western pressure to liberalize and Russian and Chinese urges to maintain control over the political system.

President Tokayev launched reforms focusing on the strengthening of parliament and the expansion of democratic procedures at the local level. Regarding the parliament, efforts focus on filling the parliament with substance and ensuring it is more representative of society. The President urged Members of Parliament to be more active, and to make use of their prerogative to exercise oversight over the government’s actions.

Tokayev’s first package of political reforms included measures that reduced the number of signatures needed for forming a political party. Further, political parties now need to have a quota of at least 30 percent for women and youth on their lists. In addition, the package included reforms to build “a tradition of parliamentary opposition.” These changes for the first time recognized the official role of opposition parties in the country’s political system, by guaranteeing the opposition the chairmanship of one standing committee and the position of secretary of two standing committees in the lower chamber; opposition parties can now also initiate parliamentary hearings at least once per session of parliament. It should ne noted that these reforms focus only on “systemic” or loyal opposition parties, and did nothing for the political forces that remain outside the political system. As such, these reforms focus on the long-term building of parliamentary culture that involves a role for the loyal opposition. A third package of reforms in January 2021 reduced the threshold for parliamentary representation from seven to five percent. It remains to be seen if this will lead to the emergence of new political forces.

In a separate initiative, reforms were introduced to expand the role of elections at the local level, in order to build a culture of democracy from the grassroots up. Such elections have now been introduced in rural areas as a pilot project. The elections that followed did not lead much substantive change, as the ruling party dominated these local elections. It remains to be seen if the leadership will gradually expand this model to ensure the election of akims of larger settlements or cities as well.

Both Nazarbayev and Tokayev have noted that Kazakhstan cannot move into the world’s top 30 most developed nations without making serious reforms to improve its judicial system and to address corruption. Reforms in this realm are primarily guided by the work of the OECD’s Anti-Corruption Network (ACN), which established in 2003 the Istanbul Anti-Corruption Action Plan (ACAP). In response to recommendations that have been given in the ACAP, Kazakhstan wrote an Anti-Corruption Strategy for the years 2015-2025. The strategy has six primary focuses: corruption in public service, corruption in private business, corruption in the judiciary and law enforcement, instituting public control, developing an anti-corruption culture, and developing international partnerships. Since the strategy was launched, Kazakhstan has made headway on all fronts, and this is evident in the progress reports provided by the OECD. 

To combat corruption, Kazakhstan’s government reorganized the country’s law enforcement to include an Anti-Corruption Service that reports directly to the president. Additionally, a number of regulations were instituted that increase accountability on government officials and restrict their ability to engage in corrupt behavior. Recruitment and selection processes have been overhauled for public servants and judges alike, and a higher degree of emphasis has been placed on their character. “Digital Kazakhstan” has also reduced the opportunities for illicit interactions between citizens and government officials by removing direct human-to-human contact in most public services. The country has piloted a new policing program in Karaganda that will employ a “police-service model” to transform the way that police and citizens interact with one another. Finally, Kazakhstan has made efforts to include civil society in the fight against corruption by passing laws like “On Access to Information” that will allow NGOs to monitor the behavior of business and government entities and to participate in the dialogue on anti-corruption policy reform. All these efforts are taking place in the context of increased partnership with international organizations that have provided guidance on how to incorporate international standards in Kazakhstan’s reforms. This includes not only OECD, but also UNDP, OSCE, and more recently GRECO. The results of this work have already been measured in progress that Kazakhstan has made on different corruption indexes, including Transparency International’s Corruption Perceptions Index, and the World Banks’ World Governance Indicators.

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  • ASIA Spotlight with Prof. S. Frederick Starr on Unveiling Central Asia's Hidden Legacy
    Thursday, 28 December 2023 00:00

    On December 19th, 2023, at 7:30 PM IST, ASIA Spotlight Session has invited the renowned Prof. S Fredrick Starr, who elaborated on his acclaimed book, "The Lost Enlightenment: Central Asia's Golden Age from the Arab Conquest to Tamerlane." Moderated by Prof. Amogh Rai, Research Director at ASIA, the discussion unveiled the fascinating, yet lesser-known narrative of Central Asia's medieval enlightenment.

    The book sheds light on the remarkable minds from the Persianate and Turkic peoples, spanning from Kazakhstan to Xinjiang, China. "Lost Enlightenment" narrates how, between 800 and 1200, Central Asia pioneered global trade, economic development, urban sophistication, artistic refinement, and, most importantly, knowledge advancement across various fields. Explore the captivating journey that built a bridge to the modern world.

    To know watch the full conversation: #centralasia #goldenage #arabconquest #tamerlane #medievalenlightment #turkish #economicdevelopment #globaltrade

    Click here to watch on YouTube or scroll down to watch the full panel discussion.

  • Some Lessons for Putin from Ancient Rome
    Thursday, 04 January 2024 17:01
    By S. Frederick Starr 
    American Purpose
    January 4, 2024
     
    Vladimir Putin, having sidelined or destroyed all his domestic opponents, real or imagined, now surrounds himself with Romano-Byzantine pomp and grandeur. The theatrical civic festivals, processions of venerable prelates, cult of statues, embarrassing shows of piety, endless laying of wreaths, and choreographed entrances down halls lined with soldiers standing at attention—all trace directly back to czarism, to Byzantine Constantinople, and ultimately to imperial Rome. Indeed, Putin considers himself as Russia’s new “czar,” the Russified form of the Latin “Caesar.”
     
    But besides all the parallel heroics, Roman history offers profound lessons for today’s world. All of America’s Founders saw the Roman Republic as the best model for their own constitution. Napoleon, Mussolini, and Hitler, by contrast, found in imperial Rome a stunning model for their own grandeur. True, some of Rome’s ancient chroniclers, including the celebrated Livy, so admired specific politicians that they saw only their good sides and ignored the problems and failures. Yet there were others, notably the pessimistic Sallust, who not only wrote bluntly of history’s painful issues but delved deep into their causes and consequences.
     
    Is Putin likely to delve into the history of Rome for insights on his own situation? Unfortunately for Russia, Putin is not a reader, preferring instead to engage in exhibitionist athletic activities, preside at solemn ceremonies, or offer avuncular obiter dicta. However, if he would study the Roman past, he might come to realize that that model presents more than a few chilling prospects that he will ignore at his peril.
     
    To take but one example, a glance at Roman history would remind Putin that self-declared victories may not be as victorious as he and Kremlin publicists want to think. Back in the 3rd century B.C., when Rome was still a small state in central Italy, it was attacked by a certain King Pyrrhus, a rival ruler from Epirus, a region along today’s border between Greece and Albania. In his first battles Pyrrhus routed the Roman legions, and celebrated accordingly. But matters did not end there.
     
    Like Pyrrhus, Putin’s army scored some early victories in its war on Ukraine. As recently as December 1, Putin’s Minister of Defense Sergei Shoigu was still claiming, in spite of all evidence to the contrary, that Russian forces “were advancing on all fronts.” Pyrrhus made similar false claims, only to discover that his own soldiers were no match for the determined Romans. As the Romans drove Pyrrhus’ army from the field, he groused, “If we win one more such victory against the Romans we will be utterly ruined,” which is exactly what happened. Pyrrhus’ statement gave Romans the term “Pyrrhic victory,” which we still use today. Putin should apply it to his “victories” at Bakhmut and Avdiivka.
     
    Another crisis in Rome’s early formation as a nation occurred when a peasant uprising threatened Rome itself and, according to the historian Livy, caused panic in the Roman capital. In desperation, the elders turned to Lucius Cincinnatus, who was neither a military man nor a professional politician, but who had earned respect as an effective leader. It took Cincinnatus only fifteen days to turn the tide, after which he returned to his farm. George Washington rightly admired Cincinnatus and consciously emulated him, returning after the Battle of Yorktown to Mount Vernon. By contrast, Putin’s “special military operation,” planned as a three-day romp, is now approaching the end of its second year. Putin, no Cincinnatus, doomed himself to being a lifer.
     
    Roman history is a millennium-long showcase of motivation or its absence. In this context, Putin might gain further insights by examining Rome’s centuries-long battle against the diverse tribes pressing the empire from the north. For centuries Rome’s legionnaires were well trained, disciplined, and committed. The list of their early victories is long. Both Julius Caesar and the philosopher-emperor-general Marcus Aurelius succeeded because they motivated and inspired their troops. But over time the Roman army was increasingly comprised of hirelings, déclassé men who fought not to save the empire but for money or a small piece of the bounty. Inflation and rising costs outpaced pay increases. Punishment was severe, in some cases including even crucifixion. In the end, Rome’s army eroded from within.
     
    This is what is happening to the Russian army today. Putin attacked Ukraine in February 2022 with what was then an army of several hundred thousand trained professional soldiers. But after the Ukrainians killed more than 320,000 Russian troops, their replacements were unwilling and surly conscripts and even criminals dragooned from Russia’s jails. Putin quite understandably fears such soldiers. Putin’s army, like that of the late Roman Empire, is collapsing from within.
     
    By contrast, Ukraine’s army at the time of the invasion was small and comprised mainly Soviet-trained holdovers. Both officers and troops of the line had to be quickly recruited from civilian professions and trained. Yet they quickly proved themselves to be disciplined and resourceful patriots, not tired time-servers. True, Ukraine is now conscripting troops, but these newcomers share their predecessors’ commitment to the nation and to their future lives in a free country.
     
    Sheer spite and a passion for avenging past failures figured prominently in Putin’s decisions to invade both Georgia and Ukraine. Roman history suggests that this isn’t smart. Back in 220 B.C., Rome defeated its great enemy, the North African state of Carthage. Anticipating Putin, the Carthaginian general Hannibal sought revenge. Acting out of spite, he assembled 700,000 foot soldiers, 78,000 mounted calvary, and a force of war elephants, and crossed the Alps. Though he was a brilliant general, Hannibal’s war of spite turned into a disaster.
     
    Why did Hannibal lose? Partly because of his sheer hubris and the spite that fed it, and also because the Romans avoided frontal battles and simply ground him down. They were prudently led by a general named Fabius Maximus, whom later Romans fondly remembered as “the Delayer.” Today it is the Ukrainians who are the Delayers. By grinding down Putin’s army and destroying its logistics they have positioned themselves for victory.
     
    The Roman Republic fell not because of any mass uprising but because of the machinations of Julius Caesar. A victorious general, Caesar looked the hero as he was installed as imperator. As was customary at such ceremonies, an official retainer placed behind the inductee solemnly repeated over and over the admonition to “Look behind you!” Caesar failed to do so and underestimated the opposition of a handful of officials and generals who feared the rise of a dictator perpetuus. Even if Putin chooses not to read Cicero, Plutarch, or Cassius Dio, he could productively spend an evening watching a Moscow production of Shakespeare’s The Tragedy of Julius Caesar.
     
    Turning to a very different issue, Putin seems blithely to assume that whenever Russia defeats a neighboring country it can easily win the hearts and minds of the conquered, whether by persuasion or force. This is what many Roman generals and governors thought as well, but they were wrong—fatally so. Speaking of the impact of corrupt officials sent by Rome to the provinces, the great orator-politician Cicero declared to the Roman Senate, “You cannot imagine how deeply they hate us.” Does Putin understand this?
     
    Finally, it is no secret that Russia today, like ancient Rome, is increasingly a land of immigrants; its economy depends on impoverished newcomers from Kyrgyzstan, Tajikistan, and elsewhere in Central Asia who fled to Russia in search of work. Yet Moscow treats them as third-class citizens and dragoons them as cannon fodder or “meat” to die by the thousands on the Ukrainian front. Rome faced a similar problem and wrestled with it unsuccessfully over several centuries. Over time the despised immigrants who poured across the Alps from Gaul demanded a voice in Roman affairs, and eventually took control of the western Roman Empire.
     
    Sad to say, neither Putin himself nor any others of Russia’s core group of leaders show the slightest interest in learning from relevant examples from Roman history or, for that matter, from any other useable past. Together they provide living proof of American philosopher George Santayana’s adage that, “Those who forget history are condemned to repeat it.” In Putin’s case, though, he seems never to have known it. 
     

    ABOUT THE AUTHORSS. Frederick Starr, is a distinguished fellow specializing in Central Asia and the Caucasus at the American Foreign Policy Council and founding chairman of the Central Asia Caucasus Institute.

    Additional Info
    • Author S. Frederick Starr
    • Publication Type Analysis
    • Published in/by American Purpose
    • Publishing date January 4, 2024
  • CACI Chairman S. Frederick Starr comments on "Preparing Now for a Post-Putin Russia"
    Friday, 03 November 2023 18:30

    Whether Russian President Vladimir Putin dies in office, is ousted in a palace coup, or relinquishes power for some unforeseen reason, the United States and its allies would face a radically different Russia with the Kremlin under new management. The geopolitical stakes mean that policymakers would be negligent not to plan for the consequences of a post-Putin Russia. On November 2, 2023, CACI Chairman S. Frederick Starr joined a panel organized by the Hudson Institute’s Center on Europe and Eurasia for a discussion on how US and allied policymakers can prepare for a Russia after Putin.

    Click here to watch on YouTube or scroll down to watch the full panel discussion.

  • Central Asia Diplomats Call for Closer Ties With US
    Monday, 26 June 2023 00:00

    REPRINTED with permission from Voice of America News
    By Navbahor Imamova

    WASHINGTON -- U.S.-based diplomats from Central Asia, a region long dominated by Russia and more recently China, say they are eager for more engagement with the United States.

    Many American foreign policy experts agree that a more robust relationship would be mutually beneficial, though U.S.-based nongovernmental organizations express deep concerns about human rights and authoritarian rule in the five countries: Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikistan and Turkmenistan.

    Michael Delaney, a former U.S. trade official, argued in favor of greater engagement this week at a webinar organized by the American-Uzbekistan Chamber of Commerce.

    He noted that three of the five republics are World Trade Organization members and the other two are in the accession process — a goal actively encouraged by the U.S. government.

    "I've always believed that this is a geographically disadvantaged area. There are relatively small national economies," he said. But, he said, collectively the region represents a potentially more connected market, about 80 million people.

    Key issues

    In this virtual gathering, all five Central Asian ambassadors to Washington expressed eagerness to work on issues the U.S. has long pushed for, such as water and energy sustainability, security cooperation, environmental protection and climate, and connectivity.

    Kazakhstan's Ambassador Yerzhan Ashikbayev said that despite all factors, the United States does not want to leave the field to China, its global competitor, which actively invests in the region.

    "Recent visit by 20 companies to Kazakhstan as a part of certified U.S. trade mission, including technology giants like Apple, Microsoft, Google, but also other partners like Boeing, have shown a growing interest," Ashikbayev said.

    The Kazakh diplomat described a "synergy" of economies and diplomatic efforts. All Central Asian states are committed to dialogue, trade and multilateralism, he said. "As we are witnessing the return of the divisive bloc mentalities almost unseen for 30 years, it's in our best interest to prevent Central Asia from turning into another battleground of global powers."

    During his first tour of Central Asia earlier this year, Secretary of State Antony Blinken visited Kazakhstan and Uzbekistan, meeting separately with the foreign ministers of all five countries.

    That was deeply appreciated, said Meret Orazov, Turkmenistan's longtime ambassador, who also praised the regular bilateral consultations the U.S. holds with these countries.

    Uzbek Ambassador Furqat Sidiqov sees the U.S. as an important partner, with "long-standing friendship and cooperation which have only grown stronger over the years."

    "The U.S. has played a significant role in promoting dialogue and cooperation among the Central Asian nations through initiatives such as the C5+1," he said, referring to a diplomatic platform comprising Washington and the region's five governments.

    "This is where we address common concerns and enhance integration," said Sidiqov. "We encourage the U.S. to bolster this mechanism."

    Tashkent regards Afghanistan as key to Central Asia's development, potentially linking the landlocked region to the markets and seaports of South Asia. Sidiqov said his country counts on American assistance.

    'Possibility of positive change'

    Fred Starr, chairman of the Central Asia-Caucasus Institute in Washington, ardently advocates for the U.S. to adopt closer political, economic and people-to-people ties with the region.

    In a recent paper, he wrote that among dozens of officials, diplomats, entrepreneurs, experts, journalists and civil society leaders interviewed in Central Asia, "even those most critical of American positions saw the possibility of positive change and … all acknowledged that the need for change is on both sides, theirs as well as ours."

    This is the only region that doesn't have its own organization, said Starr, arguing that the U.S. could support this effort. "We have not done so, probably because we think that this is somehow going to interfere with their relations with their other big neighbors, the north and east, but it's not going to. It's not against anyone."

    "Easy to do, low cost, very big outcome," he added, also underscoring that "there is a feeling the U.S. should be much more attentive to security."

    "Japan, the European Union, Russia, China, their top leaders have visited. … No U.S. president has ever set foot in Central Asia," he said. He added that regional officials are left to wonder, "Are we so insignificant that they can't take the time to visit?"

    Starr urges U.S. President Joe Biden to convene the C5+1 in New York during the 78th session of the U.N. General Assembly in September. "This would not be a big drain on the president's time, but it would be symbolically extremely important," he said. "All of them want this to happen."

    Read at VOA News

  • Read CACI Chairman S. Frederick Starr's recent interview on the resurgence of Imperial Russia with The American Purpose
    Tuesday, 23 May 2023 00:00

    Why Russians Support the War: Jeffrey Gedmin interviews S. Frederick Starr on the resurgence of Imperial Russia.

    The American Purpose, May 23, 2023

    Jeffrey Gedmin: Do we have a Putin problem or a Russia problem today?

    S. Frederick Starr: We have a Putin problem because we have a Russia problem. Bluntly, the mass of Russians are passive and easily manipulated—down to the moment they aren’t. Two decades ago they made a deal with Vladimir Putin, as they have done with many of his predecessors: You give us a basic income, prospects for a better future, and a country we can take pride in, and we will give you a free hand. This is the same formula for autocracy that prevailed in Soviet times, and, before that, under the czars. The difference is that this time Russia’s leader—Putin—and his entourage have adopted a bizarre and dangerous ideology, “Eurasianism,” that empowers them to expand Russian power at will over the entire former territory of the USSR and even beyond. It is a grand and awful vision that puffs up ruler and ruled alike.

    What do most Russians think of this deal? It leaves them bereft of the normal rights of citizenship but free from its day-to-day responsibilities. So instead of debating, voting, and demonstrating, Russians store up their frustrations and then release them in elemental, often destructive, and usually futile acts of rebellion. This “Russia problem” leaves the prospect of change in Russia today in the hands of alienated members of Putin’s immediate entourage, many of whom share his vision of Russia’s destiny and are anyway subject to Putin’s ample levers for control. Thus, our “Putin problem” arises from our “Russia problem.”

    Click to continue reading...