President Nursultan Nazarbayev thinks Kazakhstan can spend its way out of the economic doldrums. Experts, meanwhile, are divided about whether Nazarbayev’s plans represent a bold Roosevelt-style New Deal or a throwback to sluggish Soviet-style economics.
The steep decline in global oil prices is stoking angst in Kazakhstan. Experts and officials alike say the government has ample resources to grapple with fiscal surprises. The real question is whether the political will exists for the government to take necessary measures.
As Western governments mull additional sanctions in response to Russia’s invasion and subsequent annexation of Ukraine’s Crimea region, Washington and Brussels won’t be the only world capitals watching to see the impact: Should the new restrictions bite into Russia’s economy, they will have a painful trickle-down effect on the former Soviet republics of Central Asia.
The escalating turmoil over corruption allegations against Turkey’s political elite is now threatening the ruling Justice and Development Party’s greatest achievement – Turkey’s economic growth. With national elections looming in the future, that threat could affect the party’s 11-plus-year hold on power, some local observers believe.
On a main thoroughfare in central Bishkek stands a rare type of building in Kyrgyzstan these days: a busy factory. Women hunched over long tables can be seen from the street working late into the evening in boxy rooms under the greenish glow of florescent lights.
Kyrgyzstan is a fiscal train wreck waiting to happen. The Kyrgyz government is spending with abandon, even though it inherited an economy that was already in sorry shape. Foreign donors, meanwhile, are growing increasingly wary, as concerns mount about Bishkek’s reluctance to tackle transparency concerns.