Tax calculation system
Taxes in Kazakhstan are lower than in the Russian Federation. This is due to the low population density taking advantage of the country's rich resources. VAT in Kazakhstan is calculated at a rate of 12%. The legislation identifies a number of production incomes on which the fee is not levied. The property tax for individuals is formed in a special way. The fee for owning a vehicle depends on the monthly calculation indicator (for the current year 2,405 tenge). Citizens pay for land at a rate of 20 tons for every 0.01 hectares for an area of up to 0.5 hectares inclusive. For 0.01 hectares above, 100 tenge is charged.
Social tax
Social tax for 2021 is calculated as follows:
- for legal entities at a rate of 9.5%;
- entrepreneurs - double the minimum wage (28,284 tenge (5,325 rubles)) for themselves and one for each employee.
All entrepreneurs participate in the formation of a fund to support the poor. They are required to pay the prescribed fee.
Indirect
This year, a new edition of the Tax Code is in force in the country. It involves the liberalization of the excise tax on the sale of alcoholic products. Now enterprises contribute equal amounts to the budget quarterly: 100 MCI for retail trade and 200 MCI for wholesale.
Individual
The rate for calculating personal income tax is 10%, non-residents pay up to 20%.
Obtaining a residence permit in Kazakhstan
Almost any foreigner is allowed to emigrate for temporary or permanent residence if he considers himself solvent. Often foreign immigrants, including from Russia and Ukraine, want to move to Kazakhstan to earn money or to open a business. To implement your plans, you should adhere to the following order.
Step-by-step registration of a residence permit
First, a Russian or other potential emigrant must decide how he plans to legalize. Then follow the step-by-step instructions:
- upon arrival in Almaty or Nur-Sultan, you should collect the necessary documents and receive an appropriate invitation from the welcoming party or a registration document;
- submit an application along with a package of documentation to the Migration Police at your place of temporary residence;
- pay the state fee according to the established tariff;
- Entrepreneurs and investors will have additional costs when registering a business or share;
- the immigrant then waits for the result.
Documentation
To move, ordinary people will need to prepare certificates, printouts, and personal information. The basic list of documents includes:
- a completed application form with reliable information;
- original and copy of residence passport;
- certificate of marital status, presence of children;
- departure sheet in case of application for permanent residence;
- a written autobiography in Russian or Kazakh;
- bank statements for the last 6 months;
- certificate of no criminal record;
- contract for rent or purchase of housing in Kazakhstan;
- photographs on a white background, size 35*45 mm;
- medical certificate;
- other documents depending on the method of relocation.
Price
In Kazakhstan, all state duties, fees, and administrative fines are tied to the monthly calculation indicator - MCI. Its size changes annually, sometimes even twice a year. According to immigration rules, the applicant pays 20% of the MCI. In 2021, it is 2525 tenge, so submitting the application will cost 505 tenge (84 rubles).
Registration period
Relocation cases are considered by the Kazakhstan commission within 30 calendar days. In simple cases and with good preparation, you can obtain a residence permit in 20 days.
Validity
Initially, a residence permit card is issued to a foreigner for one year, then they look at the migration method they want to use. If under the program of reunification with relatives, then after a year they are granted permanent resident status for 5 years. In other cases, the residence permit is extended two more times, and only then an application is sent to the Migration Police in order to move for permanent residence.
Division of labor
You can often hear that in Kazakhstan there has been an unspoken division of spheres of influence: Kazakhs have mastered the civil service, where a good knowledge of the state language is required, Russians dominate in business.
“In big business,” Kamal Burkhanov clarified. – Small businesses are predominantly Kazakhs. The market has ordered it this way; life itself regulates who should do what. At the same time, there are Russians among the ministers, governors, ambassadors, and vice-speakers.”
“This is actually the situation,” confirmed Andrei Chebotarev. “The personnel policy is focused on increasing the representation of the titular ethnic group in government bodies, although other nationalities are also represented there.”
“I came to Kazakhstan for the sake of the man I love”
Bilqis Bahari, journalist
She was born on January 23, 1987 in Kuala Lumpur. She was educated at Cardiff University (Britain). She previously worked as a financial journalist for the New Straits Times as well as Bloomberg TV Malaysia. In Kazakhstan from 2021. Works on the Kazakh-TV channel in Nur-Sultan.
Photo Instagram / Bilkis Bahari, journalist
I have been living in Kazakhstan for two years now. The reason for the move was my Kazakh husband, whom I met in Malaysia, because we studied together at the same university. Before moving to Kazakhstan, we dated for more than seven years. In 2021, we got married in Almaty, after which we moved to Nur-Sultan. So it wasn't a sudden decision. And I understood that life in Kazakhstan would be a serious test for me. Still, the difference in mentality and climate, the language barrier and a new environment are always difficult moments in adaptation. And so I was a little worried, but the support of my husband helped me almost painlessly survive all the trials and obstacles that I encountered in Kazakhstan.
Most likely, I would not have ended up in Nur-Sultan if I had not met such a wonderful person in my life as my husband. He helped me not only in adaptation, but also in overcoming the language barrier. In Kazakhstan, without knowing Russian, it is very difficult to adapt to the local environment. Even to solve some everyday issues, you must know the language. So he helped me learn Russian, although I admit it was not an easy challenge for me. Now in my life there are two loves - for my husband and for Nur-Sultan, the city where I live.
And a Kazakh friend of the steppes
“I was in Moscow: crowds of people, traffic jams, dirty air, bustle - nothing good. And here, you see how beautiful it is!” – this is how local driver Nurlan began an unofficial tour of official Astana. And he immediately armed me with a joke he heard at the local Comedy Club. On the stage stands a man in a robe with a map of Kazakhstan on it.
His interlocutor asks: “What is this wet spot on the robe? - “Ah, this is the Aral Sea, it’s okay, it will dry out soon.” - “What is this bright patch?” - “This is Astana. There used to be a hole!”
It would be hard to call the capital of Kazakhstan a “hole” today. Today little remains of the former Tselinograd with its unsightly buildings. In just 10 years, a new modern metropolis with beautiful world-class architecture, but with an oriental touch, has grown among the Kazakh steppe. The luminary of world architecture, Norman Foster, contributed to the construction - according to his design, the cultural and entertainment complex Khan's Tent with a transparent roof and a water park, the Palace of Peace and Reconciliation in the shape of a pyramid, were built in Astana. “We also have our own aquarium, by the way, the farthest from the sea,” Nurlan continued to praise his hometown. – Look at the roads, they’re a pleasure to drive. You are allowed to reach the Borovoye resort at 140 km/h – the track is ideal.”
It’s hard to argue with my interlocutor – such roads are enviable. Of course, they are worse away from the Kazakh capital, but in general Russia has a lot to learn from its southern neighbor in the field of road construction.
Astana, which looks like a smaller version of Dubai, also has a special economic zone where investors are exempt from paying VAT, land tax, property tax and customs duties. Therefore, a lot of private investments were invested in the construction of the city, the share of which is 56.7%. True, due to the crisis, some apartments (especially in luxury buildings) have not been sold. “During the construction boom in the mid-2000s,” says Kaynar Kozhumov, director of the Kazakhstan Investment Profitability Research Agency, “everyone started investing in real estate in droves, trying to make money on rising prices, took out loans, and bought several apartments. And now, after the recession, someone went broke, someone is waiting for prices to rise, so many apartments in Astana remain unoccupied.”
Nevertheless, the population of Astana has tripled over the past decade and today amounts to 700 thousand inhabitants. “And this,” my guide nodded his head towards the long building, “the House of Ministries, here they are all under one roof.” Maybe we should move the capital somewhere away from Moscow? For example, to Krasnoyarsk or Chita? Both the region and the officials will begin a new life! “Initially, many people thought Nazarbayev’s idea of moving the capital from Almaty to Tselinograd was nonsense,” local journalist Kairat admitted to me. “But over time, everyone realized how convenient it was. Firstly, Astana is much more conveniently located from a geographical point of view, and secondly, the transfer gave powerful development to the entire region. So everyone takes their hats off to “Dad” for this.”
“Everything is bad in Kazakhstan, too, but better than in Russia”: where the economy is stronger
Russian economist, director of the Center for Research on Post-Industrial Society Vladislav Inozemtsev believes that the example of Kazakhstan is useful for the Russian economy. He published his opinion about this on the Ekho Moskvy website. At the same time, the comments under his publication are no less interesting, NUR.KZ reports.
Illustrative photo Sputnik Kazakhstan: UGC
Inozemtsev writes in his article that comparisons between the economies of Russia and Kazakhstan have resumed on social networks - the reason was the “flagrant” difference in gasoline prices on both sides of the border . At the same time, it was often stated that both fuels of Russian origin were sold there. The difference is really big: now the price of A-95 in Nur-Sultan is 174 tenge/l (28.90 rubles), and in Novosibirsk - 44-45 rubles. However, this indicator alone does not determine the difference in the economic development of the two countries, although it shows important differences, primarily in the field of taxation.
Throughout the post-Soviet years, the economic model of Kazakhstan was based on the idea of using the raw material base for the accelerated industrial and infrastructural development of the country. Hence, in particular, the widespread attraction of foreign capital into the oil and gas industry: it is currently controlled by foreign investors by almost 60%. But the results are obvious: since 1990, oil production has increased by 3.5 times, gas production by 4 times (for comparison, in Russia - by 9.2 and 11.6%, respectively).
At the same time, the authorities ensured growth through low taxes, which is also typical for rapidly developing resource economies. At the moment, VAT in Kazakhstan is 12% versus Russia’s 20%, and the excise tax on gasoline is only 10.5 thousand tenge (1,740 rubles) per ton versus the current Russian tax of 12.3 thousand rubles per ton. This explains the low prices for fuels and lubricants - after all, in Russia, 80% of its retail price consists not of manufacturer costs and trade margins, but of taxes.
In addition, this year Kazakhstan has overcome its long-term dependence on imported fuels and lubricants, modernized its own oil refining and increased the supply of local gasoline to consumers to 100%.
The Kazakh economy has been performing better than Russia’s for many years (it has grown by 48% since the end of the global economic crisis, while the Russian economy has grown by only 14.8%) and is achieving impressive results in many areas. The economist especially notes the creation of the “New Silk Road” infrastructure, the development of ports on the Caspian Sea, as well as the creation of modern financial infrastructure, including the MFC in the capital of the Republic of Kazakhstan.
The well-being of Kazakhstanis has also increased significantly in recent years (the increase in real disposable income was 6.7% in 2014–2018 versus a fall of 10.7% in Russia).
“At the same time, I would not say that everything is good in Kazakhstan today, and everything is bad in Russia,” the publication says.
According to the author, the Kazakh economy has only just reached the point at which real industrialization begins. In Kazakhstan's exports, oil and gas account for 74% , and metals and ores (including uranium and uranium ore) another 8.2%. Dependence on imports of almost the entire range of high-tech products remains no less significant than in Russia (although the government is working much more effectively to attract foreign investors to industry).
As in Russia, the government constantly resorts to devaluing the national currency to support its own producers and fill the budget (the tenge has lost more than 52% of its value over the past five years).
Inozemtsev notes two fundamental differences between the Kazakh economy and the Russian one .
"First. Kazakh politicians do not confuse, so to speak, oil and people (who are almost openly called “new oil” in the Kremlin). Receiving high budget revenues, the country's leadership maintains low taxes and seeks to reduce, rather than increase, the share of the public sector in the economy. The authorities understand perfectly well that relatively cheap raw materials are an important competitive advantage, and are not captive to dogmas about the importance of “bringing energy prices closer to world prices,” he believes.
The second serious difference, according to the economist, is that Kazakhstan, despite Nursultan Nazarbayev’s long-standing commitment to the ideas of post-Soviet reintegration, is pursuing a truly multi-vector policy, attracting investments from the PRC, the USA, Russia, Europe, Turkey and many other countries, building political relations with all great powers.
“This, of course, distinguishes the country favorably from Russia and makes the prospects for the development of the Kazakh economy more encouraging,” the expert concluded.
It is worth noting that no less interesting are the opinions of readers of Inozemtsev’s column about his comparative analysis of the economies of two neighboring countries.
“Yes, the ugly economic policy of the Russian authorities, based on “friend capitalism,” is falling lower and lower. Now the economic indicators of Kazakhstan are becoming unattainable for Russia. And the saddest thing is that there is no clearing visible,” complains a reader with the nickname ajsenev.
Another commentator with the nickname i_progressor believes that in the country of the Great Steppe everything is also bad, but better than in Russia .
“The most important thing is that in Kazakhstan, investors are not scammed; they behave in a civilized manner. The rules do not change during the game. Calvey would not have been imprisoned there, but they would have prayed for him. In general, everything is bad in Kazakhstan, too, but it’s better than in Russia,” he believes.
Original article: https://www.nur.kz/politics/universe/1802628-v-kazahstane-toze-vse-pogano-no-lucse-cem-v-rossii-gde-ekonomika-silnee/
Climate and ecological situation
The country is located in the continental zone. In winter, temperatures drop to -20 degrees Celsius. Summer is dry and hot, in some regions the air warms up to + 50. Sandstorms often occur in the northern regions. The steppe zone is not rich in sediments. The annual average fluctuates at 100-500 mm. In the south of the republic in the mountainous regions the climate is mild. There is a lot of rain, but the temperature does not change dramatically. Even further south (below the 43rd parallel) a subtropical region is distinguished. For example, Maktaaral, Saryagash and Shardara districts.
Most enterprises in the country use old technologies. Emissions of pollutants into the atmosphere from mining and processing of raw materials exceed 4 million tons per year. Cities suffer from the combustion products of fuel used to fuel vehicles. In Almaty, exhaust gas pollution is 75% (this is the highest figure in the country). This leads to environmental pollution.
Many prohibitions
In America, almost all aspects of any professional activity and just the everyday life of an ordinary person are regulated to the last sneeze.
An astronomical number of prohibitions and regulations
For example, a car can only be parked in certain places according to a certain schedule.
Having a picnic, riding a bike, walking the dog, fishing, smoking and drinking, and even talking on the phone is not possible everywhere you want.
And if you want to build a house or make serious repairs, open a medical office, engage in lawyering, sell real estate or care for elderly people or children, you cannot do this without a license.
Main advantages
Let's start with the positives. So, the main advantages of living in Kazakhstan:
- Political stability.
- The beauty of the natural world.
- Variety of cultural sites.
Political stability
According to many experts, Kazakhstan is now one of the most politically stable states not only in Central Asia, but also in the entire post-Soviet space. Against the backdrop of recent events in socio-political life that occurred in Ukraine, Georgia, Kyrgyzstan, as well as the existing international conflicts in Russia and Belarus, the calm situation in Kazakhstan clearly stands out.
The beauty of the natural world
The state is famous throughout the world for its amazing nature. Here you can enjoy the views of the great Tien Shan mountain system, swim in the crystal clear lakes Balkhash and Issyk, hear the amazing singing of the singing dunes of the Altyn-Emel nature reserve, and admire the beauty of the oldest natural monument - the Charyn Canyon (more than 12 million years old). And this is only a small part of the entire diversity of the natural world of Kazakhstan.
Variety of cultural sites
Kazakhstan is famous not only for its natural attractions, but also for its cultural sites.
There are simply countless majestic monuments and mausoleums, uniquely beautiful mosques and other monuments of art in this country.
Only here you will happily visit the oldest zoological park in the entire post-Soviet space (Almaty Zoo), skate on the world's largest outdoor high-mountain ice skating rink (Medeo sports complex), and appreciate all the beauty of the second largest mosque in Central Asia (Nur-Astana) .
Statistical indicators of population, life expectancy and nationality
According to the latest estimates, the population of Kazakhstan is about 18 million people, of which 11 million are Kazakhs, 3 million Russians, and about 500 thousand Uzbeks. Other nations - Ukrainian, Uighur, Tatar and German - each number from 200 to 300 thousand people.
The female population, with an average life expectancy of 74 years, prevails over the male population, for which the same figure is much lower - 65 years.
The standard of living of an individual family depends on many factors. Are you a native resident or a newcomer, are you entitled to government support or not, what region do you live in, etc. And yes, the most important thing is whether you know the Kazakh language or not, since knowing it immediately opens up a large number of additional prospects for you . Now there are two official languages in Kazakhstan - Kazakh and Russian. Although there is persistent talk in the air that this will not always be the case.
Marziya Doskalieva
General information
It is recognized by experts as one of the most authoritative, since it not only reflects the official reports of state departments, but also takes into account the general opinion of the population who live in a particular territory. In the latest published list, based on a total of 9 points, Kazakhstan is given 82nd place out of 149 participants covered. Of the states of the former Union, only the Baltic states and Kyrgyzstan are higher, Georgia is not far, the Russian Federation, Moldova, Belarus and the rest are a dozen points below.
Some time ago, Kazakhstan's rating began to fall due to the economic crisis that followed the decline in oil prices. The government of the state manages to deal with problems relatively well.
The place in the ranking is characterized by a combination of nine points that form the basis of the study.
But it’s one thing to come out ahead relative to your former brothers on the map, and another thing to actually guarantee the population of the state a wonderful life and confidence in the future. To overcome problems of this kind in Kazakhstan, a developed system of social protection and support of the population has been built at the state level, consisting of:
— transfer of state benefits;
— compulsory social insurance and provision of guaranteed medical care;
— payment of pensions;
— measures to protect childhood and motherhood;
— the likelihood of receiving free education and other social assistance.
Benefits from the state are mandatory on a mandatory basis in cases of old age or disability, loss of a breadwinner or dismissal.
Foreigners and stateless persons who regularly reside in the country can also apply for an old-age pension on an equal basis with Kazakh citizens - the male population retires at sixty-three years old, and women at fifty-eight years old.
Education in the country
The organization of the school process is similar to the Russian eleven-year school. Children aged 6-7 years are admitted to first grade. They go to school until they reach adulthood. Higher education can be obtained in various institutions, including distance learning. Admission of applicants is carried out on the basis of the Unified National Testing (UNT). The exception is Russian universities in Kazakhstan. To get a place in them you need to pass entrance exams.
Information: there are six branches of Russian universities in the country. Among them are Moscow State University (Astana), MESI (Ust-Kamenogorsk).
Postgraduate studies are paid or based on government funding. The authorities provide grants to promising young people. The money can be spent on acquiring a profession, including postgraduate education. Postgraduate studies in Kazakhstan train scientific personnel. The course lasts 2-3 years. Only citizens of the country are accepted on a budgetary basis.
Education system in Kazakhstan
Basic principles
Any child under 6 years of age has the right to attend preschool. Kindergartens are free for official citizens of the country. There, children not only spend their time under the supervision of teachers, but also solve problems in a playful way. Gradually the material covered becomes more complicated.
Important
The school education system is similar to the Russian one. An eleven-year education system was introduced. In the future, in order to reduce the burden on children, they plan to introduce 12th grade, which was canceled at the beginning of the 2000s. The list of sciences studied is almost the same as in our schools. The only difference is that in 11th grade, students can choose their own subjects to study.
Universities have adopted a traditional degree distribution system. First, the student studies his specialty in general. In 4 years he receives a bachelor's degree. After this comes the master's program, which covers more highly specialized industries. The training takes 2 years. To get a Doctor of Science, you need to study for another 3 years. All state universities have many budget places.
Cash benefits for students
There are no large-scale scholarships here. Citizens of countries close to the state - Russia, Ukraine, Belarus - can count on a small repayment of training costs. But foreigners will always have lower priority compared to citizens. It’s another matter if you decide to restore your ethnic roots by moving in with relatives.
However, every person, if he has talent in a sought-after industry, has a chance to study with a state grant. To become a participant in such a journey, you must register for a competition in your home country and pass the entrance test with flying colors. This chance is not given to everyone, but only to selected students.
The future is unclear
Today in Kazakhstan there is “no alternative” to Nursultan Nazarbayev - an expression that is well known to Russians. The difference is that he is 12 years older than Vladimir Putin.
Speaking in Moscow on condition of anonymity, one Kazakh political scientist expressed the opinion that by choosing a successor on time and ensuring a smooth transfer of power, Nazarbayev would have deserved a monument, but by succumbing to the temptation to rule for life and trampling the political field, he had laid a mine under the state.
How will the inevitable transition to a new era take place? Will it be possible to maintain stability, including in interethnic relations?
Options for intercepting power are not excluded, and then the consequences could be any Andrey Chebotarev, expert
Kamal Burkhanov avoided the conversation on the topic “Kazakhstan without Nazarbayev,” recalling that Deng Xiaoping and Konrad Adenauer were also older at the peak of their careers.
“The optimal scenario is if the president carries out a redistribution of powers in favor of parliament and the government, which will subsequently allow building an intra-elite balance and forming a “collective successor.” But options with interception of power are not excluded, and then the consequences can be any,” says Andrei Chebotarev.
“It is extremely difficult to predict anything. Nazarbayev does not share his plans with anyone. We can only say that the main regional players, China and Russia, are interested in stability and continuity in Kazakhstan,” says Pavel Salin.
Rumors about Russia falling behind are clearly exaggerated
Blaming the officials for everything, who, they say, have been telling us all these years, is stupid. They, of course, often wished for reality, but we ourselves were happy to be deceived. Judging by the discussions on social networks, we are, of course, still far from America and Europe, but we have long surpassed Russia, which is under sanctions and the “Putin regime.” They say that our northern neighbors are becoming exponentially poorer and are about to walk around the world with an outstretched hand.
The tone was set at the end of 2021 by Russian economist Anatoly Chubais, who suggested that in the coming years Russia could significantly lag behind Kazakhstan in growth rates. “ And not in terms of the scale of the economy, but in terms of the standard of living
,” he clarified.
“ In terms of human capital, culture, education, healthcare - in all these components, we ourselves risk putting ourselves in a scenario that leads to an increase in the backlog
.”
And, it must be said, many “swallowed” such bait, as a result of which both Kazakh and Russian “specialists”, shouting over each other, began to share truly fantastic versions of when and thanks to what Kazakhstan will put Russia to the sword in socio-economic terms . It got to the point that they began to talk about the defeat of the Russian Federation in this unspoken battle as a fait accompli. Thus, at the end of last year, Vladislav Inozemtsev, Doctor of Economics, Director of the Center for Research of Post-Industrial Society, shared the following conclusion in a blog on the Echo of Moscow website: “The Kazakh economy has been showing better results than the Russian one for many years (it has grown since the end of the global economic crisis by 48 percent, while the Russian one is only 14.8 percent) and achieves impressive results in many areas. I would especially note the creation of the New Silk Road infrastructure, the development of ports in the Caspian Sea, as well as the creation of modern financial infrastructure, including the AIFC in Nur-Sultan. The well-being of the population has also increased significantly in recent years (the increase in real disposable income amounted to 6.7 percent in 2014–2018 versus a fall of 10.7 percent in Russia)
».
But how correct are such conclusions and the figures given, especially regarding the real well-being of the population of the two countries? As they say, blessed is he who believes.
To impartially assess the situation, you need to look at how the “rivalry” between the Republic of Kazakhstan and the Russian Federation looks from the outside.
If we take GDP per capita at purchasing power parity as a guide, then Kazakhstan is not ahead of Russia, although it is breathing down its neck. According to the latest IMF data (for 2021), for Russia this figure was 28,797, for Kazakhstan - 27,660 US dollars. But in nominal terms, the gap is more obvious - $11,326 for Russia versus $9,236 for Kazakhstan.
The most standard tool for comparing living standards in different countries is the Human Development Index. And again, he does not speak in our favor (0.817 versus 0.824 for our neighbor). Although it should be noted that in Russia the growth of this indicator over the year was less than in Kazakhstan. But can this be considered a sustainable trend? I would like to believe in such a scenario, but since the collapse of the USSR, we have never managed to overtake our neighbors in this indicator.
And if we go into particulars, Russia has noticeably moved away from us in many respects. For example, by the number of doctors, beds in medical institutions per thousand population. And the difference in the number of self-employed people is simply gigantic: in the Russian Federation - 5.3 percent of the number of employed people, in Kazakhstan - 25.8. And the more carefully you analyze the data from this study, the more obvious it becomes that we can only boast of greater ease of doing business.
The situation is similar with another index – social progress. At the end of last year, the Russian Federation was ranked 62nd, Kazakhstan – 69th. It takes into account the degree to which the basic needs of the population of a particular country are met (for food, for medical care and sanitation services, for housing, for drinking water, etc.), as well as the degree of access to knowledge and means of communication, environmental sustainability, level personal and civil liberties.
The quality of life index, compiled based on the results of last year Numbeo, also demonstrates that Kazakhstan lags behind Russia (69th and 59th places, respectively). Here, criteria such as the purchasing power of the population, the degree of safety, the level of healthcare, the cost of living, property price, average travel time, pollution levels and climate.
Other ratings also do not speak in our favor. For example, in terms of the level of minimum wage, Kazakhstan is very far from Russia. There it is 188.5 US dollars, here it is 114.6, or more than one and a half times lower. The same is true with the size of the net average salary: according to data for last year, in Russia it was 686 dollars, and in Kazakhstan – 438.
The poverty level in our country is higher than in our neighboring country. According to World Bank data for 2015, 40 percent of low-income Russians lived on $10.7 a day, while the same proportion of Kazakhstanis lived on $6.72. For people with average incomes, these figures are respectively 22.36 and 11.36 dollars (almost double the difference). However, for the sake of objectivity, it must be said that in Kazakhstan there is much less socio-economic stratification in society than in Russia (judging by the Gini coefficient). However, taking into account all the above puzzles, this does not change the overall picture.
Income of Kazakhs and immigrants
Minimum salary
As in many countries that were part of the collapsed USSR, the minimum wage here is measured by the minimum wage. Therefore, the rate at which the employer has the right to employ his employee should not be less than 22 thousand tenge.
However, this number is constantly growing. At the end of 2021, the government plans to adopt a new law that will increase the minimum wage several times. In addition, in accordance with the new decree, wages for representatives of some specialties should increase by 20%. These are rural doctors, as well as city specialists. In addition, military and government employees have special payment conditions.
Average salaries in Kazakhstan
On average, a specialist with higher education receives more than 160 thousand tenge per month. At the same time, the calculation did not take into account guest workers and people who were not officially employed, but who worked as freelancers. Since last year, this figure has increased by almost 8% (excluding taxes paid).
“The people of Almaty seemed to me more hospitable than the residents of Tengiz”
Almaty reminded me of a European city in terms of the hospitality of its residents. People smile, are friendly, invite you to visit, and are willing to make contact. That's why I really remember their hospitality. Since I was in two places in Kazakhstan - Almaty and Tengiz, I can compare their inhabitants. The people of Almaty seemed to me more hospitable than the locals in Tengiz. I tried to analyze this difference in behavior and came to the conclusion that people are different due to objective reasons. Perhaps life in Almaty is more convenient and better by Kazakh standards. But in Tengiz it is more difficult for Kazakhstanis to make money. There people, faced with the hardships of philistine life, become embittered and become somewhat ruder. They have no time to smile, they think about how to feed themselves and earn money.
In general, Kazakh hospitality is manifested in many ways. I was amazed when the Kazakhs invited me to visit and were very kind to me. How many times have I visited, they always feed me to my fill. The owners serve and place goodies on my plate. I have never encountered anything like this abroad. People abroad are more secretive and rarely invite you to visit. So Kazakh hospitality is not a fiction for me. I saw everything with my own eyes.
Main disadvantages
Now let’s turn our attention to the disadvantages of living in Kazakhstan; they, unfortunately, are more significant:
- Low standard of living of the population.
- Dry harsh climate.
- The originality of cultural traditions and customs.
- Bad ecology.
- Seismic activity.
Low standard of living of the population
The standard of living in Kazakhstan is relatively low. According to published ratings for 2021, this Central Asian state ranks 47th in the world in terms of living standards. It should be said that of all post-Soviet states, this is the third indicator (after Estonia and Lithuania, above Russia).
The average salary in Kazakhstan is 140 thousand tenge or $450, with the following comparable prices.
Product type | Price $ (USA) | Quantity that can be purchased with a monthly salary |
White bread (600 g loaf) | 0.38$ | 1184 loaves |
Milk (1 liter) | 0.54$ | 833 liters |
Potatoes (1 kg.) | 0.41$ | 1,097 kg. |
Buckwheat (1 kg.) | 1.2$ | 375 kg. |
Meat, beef (kg.) | 4.12$ | 109 kg. |
Egg (10 pcs.) | 0.74$ | 6,801 eggs |
Gasoline (AI92, liter) | 0.43$ | 1046 liters |
Transport fares (average price) | 0.19$ | 2368 passages |
Kia Ceed car | 12 722$ | 1 car for 29 salaries |
Compared to the background of developing countries, the indicators of living standards in Kazakhstan look, of course, not bad. However, in comparison, for example, with European countries or the Gulf states (Saudi Arabia, Qatar, UAE), Kazakhstan is unconvincing.
Dry harsh climate
Kazakhstan is characterized by an amplitude sharp continental climate. Summer in the country is very hot and dry, the average July temperature, depending on the region, ranges from 17o C to 31o C. In a number of regions the temperature reaches 50o C. It is not without reason that the main symbols of the state, depicted even on its flag, are the scorching sun and cloudless sky.
Winters in Kazakhstan, on the contrary, have little snow and are cold. The average temperature in January is –19o C in the north and +1o C in the south. There is little precipitation almost throughout the year.
Such climatic conditions can hardly be called comfortable for humans.
The uniqueness of cultural traditions and customs
Asia knows how to shock with its customs. Kazakhstan is no exception. Looking at the traditional life of the Kazakhs, you understand how relative the rules of cruelty and morality are in the world. For Kazakhs, cutting the throat of a lamb in public does not seem something terrible. For them, this is as common as digging up potatoes for us.
Or another example - the traditional fun of kokpar - a spectacle not for the faint of heart. This game is somewhat reminiscent of football, only the players are on horses, and instead of a ball there is the carcass of a dead goat or ram. By the way, the national sport of Kazakhstan.
Before the game starts, the participants kill the animal. The spectacle is creepy, especially when you realize that they are doing it just for fun. First, the animal is beheaded, then its legs are cut off - the ball for playing kokpar is ready. The essence of the game is to lift a heavy carcass from the ground and carry it into the enemy’s goal, while remaining in the saddle. After the game, the carcass is not thrown away, but given to the players - they prepare lunch from it.
But, in general, Kazakhs are kind people, they just treat such things without hypocrisy. It’s stupid to think that sheep meat grows on trees, and that sausage can be eaten without killing the animal. That's life.
Bad ecology
It seems that there is no point in talking about the environmental well-being of the state, on whose territory the most radioactive place in the world is located - the Semipalatinsk nuclear test site (now called Semey).
In the ranking of the most environmentally friendly countries in the world, Kazakhstan ranks 69th, right after Belize.
Seismic activity
If for us an earthquake is a very rare occurrence, like the fall of a meteorite, then for the Kazakhs it is a common occurrence. The territory of Kazakhstan is subjected to earthquakes of varying magnitude every month in one place or another.
In Soviet times, cities were even specially built with low buildings of three or four floors, since the state is located in a seismically active zone.
To summarize all of the above, it should be recognized that, despite the presence of some advantages of living in Kazakhstan, the disadvantages still significantly outweigh.
Climate and ecology
Kazakhstan is located inland, and this determines its climate with hot, sultry summers and severe frosty winters. The difference in average temperatures is from +31o C in July to -19o C in January. The proximity of the Caspian Sea somewhat softens the weather in the western regions, but in general the climate in the country is sharply continental.
From an environmental point of view, Kazakhstan cannot be called a prosperous region, and this is due to:
- Baikonur Cosmodrome;
- nuclear testing site near Semipalatinsk;
- development of virgin lands in the 60s of the XX century;
- development of oil and gas fields;
- shallowing of the Aral Sea;
- outdated equipment at heavy industrial facilities.
Most of the problems are a legacy of mistakes in economic planning and management during the Soviet period. The Kazakh leadership has made environmental issues and environmental conservation a priority. We managed to fix a lot of things. Observers note that with the exception of the Aral disaster, the rest of the environmental situation in Kazakhstan has noticeably improved over the past decade.
Video: life of people in the Aral region
Transport system of Kazakhstan
Need for a car
As in any other civilized city, here almost every wealthy resident has his own car. However, unlike Canada, the USA or Europe, there is no massive congestion on highways. In the capital, traffic jams can form during rush hours, but on the outskirts, a personal car is not the most common whim.
The simplest crossover will cost about 6 million tenge. On average, you will have to pay about 1.5 million for maintenance (purchase of fuel, oil change). Regular maintenance costs another 1.5 million (over 5 years). One car repair will cost 120 thousand tenge. Upon registration you will have to pay a primary tax.
Development of public transport
The main traffic load falls on large cities - only rare minibuses or buses run in the villages. The capital has a developed metro network. One trip to purchase a token will cost you 80 tenge. Most people travel on large, comfortable buses. There you need to pay 60 tenge for the train.
Trolleybuses cost about 80, and trams - around 50. But they are only available in economically developed regions. If there is not enough space in the transport for everyone, minibuses - cars from private owners - come to the rescue. They run regularly, there are even night flights. The price is completely the same as the bus price.
The rating of the regions of Kazakhstan by the standard of living of the population has been published
The rating of the regions of Kazakhstan by the standard of living of the population was published in April. According to its compilers (Toppress information portal), the past month was very busy for Kazakhstan. The regional akims had an important task - to show the improvement in the quality of life of residents using specific examples. In early April, Kazakhstan entered the electoral period announced by President Kassym-Jomart Tokayev. The President also visited the regions on working trips, during which he conducted an active inspection of the current state of affairs in the regions, as well as meetings with regional heads and the public.
By providing public feedback through social media, the President also demonstrated that he is aware of pressing issues in each region.
In his speech in the Egemen Qazaqstan newspaper, Kassym-Jomart Tokayev drew special attention to the tireless work to improve the quality of life of every Kazakhstani.
The authors of the rating noted the activity of the regions in April. In addition, they also took into account the “bread index” (the average price of a loaf of tin white bread) in their analysis.
First place – Kyzylorda region
The rating was topped by the Kyzylorda region, the head of which (Krymbek Kusherbaev) was able to maintain the dynamics of growth in the manufacturing industry, investment, construction work and commissioning of housing for the population. At the same time, over the past six years, the region has seen a decline in oil and gas production.
Since the beginning of 2021, 84 billion tenge have been invested in the regional economy. The volume of construction work performed increased by 20.4%, with an average growth rate for the republic of 8.9%. 126 thousand square meters were put into operation.
In addition, the region is among the leaders in the implementation of PPP (public-private partnership) projects. The implementation of the Balameken project has begun in the region, within the framework of which 150 low-income and large families will receive housing at the expense of the regional budget and at the expense of philanthropists.
It is also noted that in this region the lowest price for tin white bread is 60 tenge.
Second place - Almaty city
In the southern capital, in April, special attention began to be paid to the problems of large and low-income families. The Akimat, under the leadership of Bauyrzhan Baibek, decided to approach this issue more actively, moving the solution to the problems of mothers into a systemic channel.
In particular, more than 50% of the city’s total budget was allocated to solve and implement social security issues in Almaty.
To date, the launch of the Baqytty otbasy program in Almaty has resolved the issue of assistance to almost 1,086 large families. In addition to targeted social assistance, more than 70 families are taken under the permanent patronage of the akimat. In addition, by the end of the year it is planned to provide more than 10 thousand large families with their own housing.
The Akimat of Almaty is actively working to implement the idea of people friendly city, namely creating a friendly urban environment for every citizen. Over the past three years, more than 1,500 courtyards have been repaired in the city, 60% of central streets have been modernized and updated. Urban mobility is becoming a reality and an important criterion for improving the quality of life of citizens.
In general, Almaty shows strong growth in all sectors of the city economy, attracting foreign investment alone has increased by 50%. The industrial zone of Almaty has become the site for the implementation of almost 39 projects worth 144 billion tenge. The city is modernizing trade markets, introducing cash registers, increasing the flow of tax revenue into the city budget, which will allow us to continue to actively implement development projects. The implementation of the “House of Investment” and “House of Urbanism” projects in Almaty makes the city a leader in introducing the concept of the friendliest city in Kazakhstan.
The price for a “brick” of white bread is 80 tenge.
Third place – Atyrau region
In the Atyrau region in April, special attention was also paid to resolving the issues of allocating targeted social assistance to the needy population. More than 20 thousand people (3,508 families) received targeted assistance in the amount of about 340 million tenge.
In addition, the region is tasked with improving the skills of mothers with many children and single mothers through the implementation of the Isker ana project. Its essence is training and retraining to acquire new, in-demand professions (almost 500 mothers have already applied in the region).
Also, the regional akimat, headed by Nurlan Nogaev, plans to supply gas to remote villages, which will significantly improve the quality of life of the population. About 1 billion tenge has been allocated for this.
In total, 30 investment projects are being implemented in the region, more than 1 thousand people have received new jobs.
In addition, the regional authorities plan to introduce three more projects worth almost 8 billion tenge. It is noted that this will significantly improve social well-being in the region and create new production with 200 jobs.
It is noted that Nurlan Nogaev has always paid special attention to SMEs. The development of entrepreneurship allowed the region to increase production output by almost 40%, which indicates the attractiveness of running small businesses in the region, where almost 46 thousand SMEs are registered.
The price for a “brick” of white bread is 80 tenge.
Fourth place – Mangystau region
Mangistau region has become the leader in terms of the cost of living in the country. The region has recorded stable economic growth, with investments worth more than $100 million attracted to various projects.
In the region, a cast iron production plant is being built in the area of the Aktau Seaport SEZ with a design capacity of 250 thousand tons of cast iron per year. Construction of a transformer plant is also underway, the design capacity of which will be more than 1,200 pieces of electrical equipment. Export area: Turkmenistan, Kyrgyzstan, Uzbekistan.
The region is also actively reconstructing internal roads of local and national importance. The reconstruction of the Beineu-Akzhigit road will allow 7 thousand cars per day to pass through, its repair will be completed this year.
The price of bread in the region is 95 tenge.
Fifth place – Karaganda region
In the Karaganda region, the development of the quality of life of residents has entered an active phase.
Industrial production continues to grow here – the share of pharmaceutical products (+41%), mechanical engineering (+35%), and food products (+3%) has increased.
Also in the region, the share of small and medium-sized businesses increased by 9%, which is a significant indicator of the growth of the business climate. In terms of the share of SMEs, the Karaganda region is among the top four in the country. Housing construction is actively underway in the region - the first 10 of 560 large families have already received their apartments, the rest will receive them by the end of this year.
Much attention is paid to rural areas in the region - the implementation of the Aul - yel besigi project has begun, within the framework of which 26 projects will be implemented to develop infrastructure and the social sphere in rural areas.
The number of recipients of targeted social assistance has increased almost fourfold in the region. Since April 1, more than 5 thousand families have already received it.
The price for a “brick” of white bread is 70 tenge.
Sixth place – Kostanay region
In the Kostanay region they continue to progressively and methodically solve pressing issues of the population for a more comfortable and quality existence.
The regional leadership, headed by Archimedes Mukhambetov, allocates almost 1 billion tenge for the purchase and construction of housing for large and low-income families. It is planned to build entire microdistricts with developed infrastructure.
The production of tractors has also been established in the region; 2 thousand units roll off the assembly line per year. In general, there is an increase in mechanical engineering in the region - the production volume amounted to 25 billion tenge, almost 3,400 vehicles were produced. PPP projects are being actively implemented in the region, in which the region is among the leaders in the republic.
In the city of Arkalyk, a production facility for processing dairy products has been established. Attention is also paid to increasing the attractiveness of working in rural areas for medical personnel - almost 200 million tenge will be allocated in the region for lifting expenses for doctors.
The price of bread in the region is 70 tenge.
Seventh place – Turkestan region
The new akim of the Turkestan region, Umirzak Shukeyev, quite firmly took the situation in the region into his own hands. The agricultural experience of the akim has determined new guidelines for the development of the region as the agricultural leader of Kazakhstan.
It is noted that the construction of a new regional center of the city of Turkestan requires active participation from Umirzak Shukeyev. From now on, all construction work in the regional center is planned to be carried out around the clock. Shukeyev’s team also plans to introduce 52 residential buildings, repair 70 streets, build bicycle paths, and improve 47 streets in the regional center by the end of the year.
By 2021, Turkestan is planned to be 100% connected to natural gas.
It is still difficult to judge the pace of economic development of the region, but its head made it clear that the agricultural cluster is a priority. Industrial zones will be optimized - out of nine, four will remain. In addition, a new plant for the production of asphalt and concrete products has been launched in the region, and a poultry farm will also be launched.
As in the Kyzylorda region, the region has the lowest price for bread in the country – 60 tenge.
Eighth place – Aktobe region
According to the compilers of the rating, the Aktobe region deserves to be in the top ten only thanks to the sincere desire of the head of the region, Ondasyn Urazalin, to change the lives of residents for the better. The regional akim distinguished himself by first of all dismissing his deputy and some officials for the ineffectiveness of road repair work in the region, lack of control and executive discipline.
At the same time, roads have always been a problem for the Aktobe region. Now it is planned to allocate almost 37 billion tenge for the repair of 400 kilometers of roads.
The area under cultivation in the region has increased by almost 10%. One of the large agricultural regions has begun to focus on improving the quality of life in rural areas: drinking water will be supplied to five rural districts (the project costs almost 2 billion tenge). Also, almost 1.3 billion tenge will be allocated to the region’s healthcare sector for the development of oncology services for the early detection and treatment of cancer.
The price for a “brick” of white bread is 85 tenge.
Ninth place – Almaty region
This year, the Almaty region began supporting small and medium-sized businesses, increasing the share of enterprises by an average of 10%. This becomes the key to the successful development of economic potential, in which the majority of the population is engaged in seasonal work, both in agriculture and in tourism.
In the industrial production and agricultural sectors, the growth rates averaged 4% and 3%, respectively.
Also in the region, work has begun on the “Aleumettyq qamqorlyk” program, according to which the number of recipients of TSA (targeted social assistance) has increased to 17 thousand families.
The head of the region, Amandyk Battalov, does not ignore the problem of emergency and three-shift schools, issues of issuing land plots, as well as the problem of shortage of medical personnel.
The average cost of tin white bread is 85 tenge.
10th place – East Kazakhstan region
Thanks to the efforts of regional akim Danial Akhmetov, it became one of the leaders in economic growth. Industry indicators showed an increase of 13%, in terms of attracting investments - by 60%. The region has seen an increase in gold production by 114% and an increase in mechanical engineering by 160%.
East Kazakhstan region is also a leader in the growth of the number of public-private partnership agreements.
The region does not stop the process of improvement and increasing the attractiveness of its tourism potential - by 2021, the reconstruction of the road to Lake Alakol will be completed.
In general, East Kazakhstan region ends April with positive growth dynamics, this once again proves the effectiveness of regional leadership.
The average cost of tin white bread is 90 tenge.
11th place – Pavlodar region
During his April visit to the region, the President of the Republic of Kazakhstan spoke about the neglected environment and the lack of drinking water in rural areas. Also among the region’s problems is the reconstruction of the Nur-Sultan – Pavlodar highway section, which for various reasons has not been launched for a long time.
The region is also a leader in the number of cancer diseases and the increase in the number of HIV-infected people.
At the same time, the region is working to provide assistance to mothers of many children - keys to 70 apartments in the city of Aksu have been handed over. Also, 756 families were taken under the care of social protection authorities in the region.
In the agricultural sector in the region, there is an increase in the area of irrigated land to 212 thousand hectares.
The price of bread in the region is 85 tenge.
12th place – North Kazakhstan region
North Kazakhstan region continues to build up its agricultural potential. The region is the largest grain-producing region in the country and is actively diversifying agriculture, turning to high technology and digitalization. It is planned to establish the assembly of CLAAS combines in the region. The goal is also to reduce the wear rate of agricultural machinery by an average of 50%.
In North Kazakhstan region, work continues to renew the region’s housing stock; it is planned to demolish and reconstruct more than 600 buildings.
The region is well prepared for the spring floods of this year, which indicates that the problems of past years have been resolved.
In general, the region is maintaining a stable course and ended this month without significant shocks.
The cost of bread is 100 tenge.
13th place - Nur-Sultan city
In the capital, the active phase of supporting SMEs has produced significant results. The city has a high number of small businesses - 25 thousand. After the city of Almaty, this figure is the leader in the country.
The city also entered the top 5 cities in the country for domestic tourism.
The city continues to provide support to low-income and large families, as well as young people. 16 sites have been allocated for the construction of student dormitories, which will be built before 2022.
The first people on the waiting list - mothers of many children - were given the keys to their apartments. Akim of the capital Bakhyt Sultanov promises that in the future the queue will move faster.
The city is a leader in housing commissioning under the Nurly Zher program. 2.4 million square meters of housing have been commissioned here.
The cost of bread in the capital is 90 tenge.
14th place – Akmola region
After the change of leadership of the region, the pace of solving social and infrastructural problems in the region decreased. In addition to the regular problems of the villages bordering the capital, which were under the constant control of the regional leadership, others were added, for example, the quality of roads of local and republican significance. The Derzhavinsk-Arkalyk highway of republican significance has become a legend among the local population, the problem of which has not been resolved for more than 15 years.
At the same time, the region is constantly making plans and promising to find solutions to many pressing problems in rural areas.
The region is among the outsiders in attracting investments in fixed assets, but does not cease to allocate funds for business development - almost 3.6 billion tenge have been allocated here.
In the region, the cost of bread is high - 80 tenge, which is sad for a grain region.
15th place – Zhambyl region
The region remains problematic in terms of loan repayment. According to the National Bank of the Republic of Kazakhstan, the overdue debt of residents of the region amounts to almost 14 billion tenge.
There are problems with the issuance of agricultural investment subsidies in the region - out of 247 applications, 49 were approved.
The regional leadership has not shown concrete steps to resolve the issue of reconstructing the Burylbaytal-Merke highway, the main North-South artery of our country, which has also become a legend among motorists of the republic. At the same time, thanks to social activists in the region, the purchase of expensive jeeps for the needs of the regional akimat for 64 million tenge was postponed.
The average cost of pan bread is one of the most expensive in the southern region - 75 tenge.
16th place – West Kazakhstan region
There are several unresolved problems in the region: a drop in labor productivity, a slowdown in the construction of social and residential facilities, problems with the supply of drinking water, the unsatisfactory condition of 70% of the region's roads, and deterioration of electrical networks.
The average decline in production in Western Kazakhstan is 3.2%.
It is also noted that the region’s transit capabilities are underutilized and the transport infrastructure is poorly developed.
In the region, assistance was allocated to 6.5 thousand large and low-income families in the amount of almost 1 billion tenge.
The cost of bread in the region is 100 tenge.
17th place – Shymkent city
Due to the lack of information on important areas of the city’s socio-economic policy, it is hardly possible to objectively assess the pace of development of the third metropolis of Kazakhstan.
However, it is worth noting an increase in the number of domestic tourists arriving in the region by 30%. More than 100 honesty stores have been opened in the region, and a lot of work is also being done to attract business and investment. In a new residential area of Shymkent, nine multi-storey buildings for large families, orphans and children left without parental care have been commissioned.
The cost of bread in the city is 60 tenge.
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Russian communities and diasporas
Features of the Russian diaspora in Kazakhstan
It is difficult to say exactly how many Russians live in Kazakhstan, since illegal migrants are often found among our compatriots. However, official statistics allow us to operate with a figure of 3 million people. After the Kazakhs, this is the second largest national group in the country.
However, despite such numbers and the presence of a rapidly developing Russian-European culture, no organized community of any size exists. Small organizations with their own rules and foundations are scattered throughout the country. They are ready to accept a newcomer, but do not seek to unite into a large institution.
Where do Russian immigrants live?
With such numbers, it is not surprising that our compatriots live in almost all corners of the state. They are absent only in remote villages, since closed community forms predominate there. Most Russians, of course, are in the capital and its surrounding regions.
The main regions are Northern, Central and Eastern Kazakhstan. A slightly smaller number of people found shelter in Semirechye. The regions adjacent to the Orenburg region close this list.
How do Russians live in Kazakhstan?
Elizabeth:
“In general, I live here like in my homeland, but with more stability. My husband and I have settled in the center and are saving for an apartment. I don’t advise anyone to go to the south - there is very strong nationalism and oppression there.”
Novel:
“One of the controversial countries, but I don’t regret emigrating. Kazakhstan has everything - land, natural resources, infrastructure. The government doesn't always take the right steps. But I believe that we will gradually achieve prosperity.”
Kirill:
“I moved here with my parents, now I’m finishing university. Everything is changing before our eyes. Once upon a time I didn’t want to leave Russia. Now I’m already happy, because Kazakhstan has turned into one of the good republics.”
How do Russians live in Kazakhstan today?
The appearance of Russians in the Transcaspian steppes in the 27th century. gradually led to the annexation of lands and the entry of Kazakh tribes into the Russian Empire. During the Soviet period, thousands of engineers, doctors, teachers, and scientists were sent to Kazakhstan to build a socialist republic. Development of virgin and fallow lands in the middle of the 20th century. led to mass migration of young people from all over the USSR to work in Kazakh agriculture.
The Baikonur Cosmodrome remains the main launch site for Russian spacecraft. Until 2050 it is leased from Russia.
Russian is the second state language in Kazakhstan. Russians make up almost a quarter of the republic's population.
In the early 90s, especially during the formation of statehood of independent Kazakhstan, there was a surge in interethnic tension in certain regions of the country. The Kazakh leadership was able to maintain the situation, and over time the contradictions smoothed out.
There is constant migration of the population, including Russians, between Russia and Kazakhstan. The number of Russians leaving Kazakhstan is not much greater compared to the number of Russians entering Kazakhstan for permanent residence.
If earlier the Kazakhs were to one degree or another annoyed or, say, frightened by the excessive number of people of Russian-Slavic and Russian-European origin in their homeland, now some of them, on the contrary, are beginning to worry or even worry about the rapid decline in the number of the so-called Russian-speaking population in Kazakhstan. And not without reason. The negative consequences of such ethnic demographic changes are felt especially strongly in the outback of the village, where there were few Russians before.
Rashid Sattarov
https://zonakz.net/articles/16859
The majority of Russians in Kazakhstan feel like Kazakhstanis. Many speak Kazakh fluently.
For all age groups, the share of Russians in Kazakhstan remains within 20–25%
The population of the northern regions gravitates towards Russia. Associations of Russian Cossacks have been created in cities and villages, which in spirit, way of life and rituals are close to the Siberian and Transbaikal Cossacks.
Most Russians consider themselves Orthodox Christians of the Russian Orthodox Church.
Video: why the Slavs don’t want to leave Kazakhstan
Prices for food and other goods
Income and expense indicators depend on place of residence. The table shows the parameters of revenues and prices depending on the locality, in tenge:
Index | Astana | Aktau | Almaty | Aktobe | Ust-Kamenogorsk |
Average earnings | 128 704 | 243 770 | 150 000 | 128 700 | 215 200 |
Food | |||||
Milk (liter) | 195 | 235 | 325 | 195 | 330 |
Bread (loaf) | 405 | 110 | 80 | 75 | 125 |
Rice (kg) | 250 | 151 | 570 | 250 | 575 |
Potatoes (kg) | 60 | 230 | 142 | 60 | 180 |
Locally produced cheese (kg) | 1180 | 760 | 1200 | 1180 | 2505 |
Eggs (dozen) | 325 | 303 | 325 | 325 | 370 |
Chicken (fillet, kg) | 761 | 504 | 2315 | 765 | 1945 |
Apples (kg) | 340 | 460 | 215 | 340 | 530 |
Beer (0.5 l) | 125 | 305 | 165 | 125 | 430 |
Average lunch in a cafe | 6235 | 3860 | 6235 | 6235 | 9900 |
Coffee (cup) | 500 | 970 | 500 | 500 | 1505 |
Other goods | |||||
Jeans (Levis 501) | 37400 | 38800 | 37400 | 37400 | 21500 |
Sneakers (Nike) | 39200 | 36850 | 39200 | 37400 | 43000 |
Cigarettes (pack) | 425 | 180 | 490 | 430 | 360 |
Internet (unlimited) | 8500 | 5600 | 8905 | 6330 | 6260 |
Mobile communication (minute) | 13 | 7 | 46 | 13 | 43 |
Gym membership (monthly) | 26700 | 23250 | 26700 | 26700 | 11550 |
Gasoline (AI-95, 1 l) | 135 | 295 | 225 | 135 | 215 |
How does the economy of Kazakhstan live?
PHOTO: Depositphotos.com/AndreyPopov
The past 2021 is characterized by some positivity in the socio-economic development of the Republic of Kazakhstan. It is too early to assess the possible damage to the global economy from the coronavirus, but the fact is that it can slow down its activity and, accordingly, worsen the capabilities of our economy. Over the past year, Kazakhstan's economic growth, according to preliminary estimates, exceeded 4% , the inflation rate was 5.4% at the end of the period. But at the same time, the increase in food prices approached 10%, lending to the economy decreased to 1/5 of GDP (31% in 2015 ), and the state budget deficit increased 1.8 times compared to the previous year.
The pace of business lending activity is slowing down from year to year: over the period 2015-2019, business lending grew by only 30%, while for the population – by 2.7 times (mortgage and consumer lending); the share of business lending in the structure of issued loans decreased over 5 years from 77% to 61%, and the share of the population increased to almost 40% from 23%. Moreover, in the structure of investments in fixed capital, bank loans as a source of financing over five years (since 2015) decreased by 2 times (6% - 2015, 3.2% - 2019).
Kazakhstan's economy started up in January
GDP for the month increased to 3.6% →
This increases the problem of lending to the real sector of the economy by domestic banks. Banks say that there are no good projects, that is, business plans worked out from all sides with adequate collateral. Projects in the economy depend on the capacity (capacity) of the Kazakh economy (it is small) and the profitability of the business. Given the presence of collateral, Kazakh businesses do not yet seek to increase borrowing and rely only on their own funds.
Last year, banks began to reduce loan rates: at the end of December 2021, the weighted average rate on business loans dropped to 10.8% compared to 11.1% for the previous year. At the same time, with a decrease in the price of credit resources (even due to a reduction in bank margins), there was no significant increase in business lending: a contraction of the average conditional bank margin by 0.3 percentage points (the percentage spread between the rate on loans in 2021 and December 2021 with the rate on attracted tenge deposits of 7.3% for these periods) led to only a slight increase in business lending by 2.6%. Regarding the population, its demand for loans is inversely elastic to the interest rate, but we cannot explain it by the action of the market law - when prices fall, demand increases, since the population’s demand for loans is more related to its low solvency for durable goods, which they satisfy due to leverage.
To reduce the cost of loans, a Kazakh bank must have sources of long-term funding. Classically, there are three of them: global capital markets, household and business deposits, and the local capital market.
On world capital markets, taking into account the country risk premium and the risk of the issuer itself, money is not so cheap. The country risk premium in US dollars is 2.17% (according to A. Damodaran), in addition it is necessary to cover the issuer's risk (premiums for a private issuer may be higher than the country premium). It is clear that large systemic banks or banks with foreign participation can borrow abroad. Thus, the minimum coupon rate on foreign bonds of Halyk Bank is 3%. By borrowing in foreign currency, the bank takes on the risk of increased debt service due to the depreciation of the tenge against the US dollar and, naturally, it transfers this to the loans issued.
The government will bring GDP growth to 5%. How?
The sources of growth will be investments and domestic demand →
Deposits in depository institutions at the end of 2021 increased by 2.5% compared to the previous year, the weighted average rate on tenge deposits amounted to 7.3%, decreasing by 0.10 percentage points . Thus, the bank profit (the interest spread on loans and deposits) is 3.5% for banks (10.8% minus 7.3%), or in other words, it is the real interest rate in the economy (9.25% minus inflation 5.6%), below which there is no point in doing banking business. According to National Bank surveys on lending to domestic banks for the 3rd quarter of 2021, individual banks reduced loan rates for large businesses, which led to a narrowing of margins. That is, there is potential to reduce lending rates. It is obvious that in conditions of uncertainty in the global economy, developing countries will reduce real interest rates.
Another factor behind high deposit rates is the actions of the Kazakhstan Deposit Guarantee Fund (KDF), which sets maximum deposit rates on a monthly basis. Thus, until March 2021, rates on time deposits exceed 10%, and on savings deposits without replenishment for 24 months exceed 14% , and with replenishment - 12%. Not all banks set these levels of marginal rates, but if we take into account that in the economy there is a high level of concentration of assets in one bank, then other banks, in order to attract deposits, have to set rates under the KDIF ceiling in order to withstand competition.
At KASE, coupons on bonds are higher than on deposits, and besides, the volume of securities being traded is scanty. Thus, the yield of the KASE_BMY index (the weighted average yield of almost 130 corporate bonds) is now around 10.71% and at its peak reached 11.28%, and the trading volume at its maximum was 19 billion tenge . In addition to the fact that deposits are cheaper for banks to source for loans, issuing bonds comes with significant listing and accounting requirements, which also creates additional costs for banks. And the bank will not be able to provide yields on bonds below the market, since no one will buy them.
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Thus, external long-term funding is limited by a high country risk premium, a high KDIF rate on deposits and the real interest rate in the economy. Given the current structure of the economy, the level of economic and political risk, the likelihood of default and unfavorable government decisions on nationalization and tightening of foreign exchange controls, the credit rating is from the Big Three, which means the country risk premium will not change. A reduction in CDF rates is possible only if the base interest rate in the economy is reduced. As for the real interest rate, in an open economy it affects the flow of money into assets with high interest parity. Therefore, it is necessary to carefully maintain interest rate parity, for example, with Russia, so as not to create pressure on the national currency.
Under these conditions, in addition to further improving the country’s credit rating, it is necessary to continue working to reduce inflation and, accordingly, the base interest rate.
The prevailing opinion is that the National Bank and akimats must fight inflation. The National Bank lowers or raises the base rate depending on the inflation trend. Akimats are “nightmarish” food markets, which they do not do very well in a market economy and private ownership of the means of production. The inflation index also includes paid services of natural monopolists, but they are regulated by antimonopoly legislation.
As you know, macroeconomic policy has two main instruments: fiscal (fiscal) and monetary (monetary). By definition, monetary policy solves short-term problems, and fiscal policy solves medium-term problems. And, accordingly, the actions and lags of policies are different. This can be seen in one instrument - open market operations, when the National Bank issues only short-term notes (discount), and the Ministry of Finance issues medium- and long-term bonds (coupon) to finance the budget deficit.
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The National Bank at the end of 2021 reached the inflation target (4-6%) through the base rate within the framework of the monetary rule, where the interest rate depends on inflation and business activity (deviation from potential GDP). The National Bank, with its monthly decisions on the base rate, through the transmission mechanism, influences the price level and the economy as a whole. In addition, the annual joint statement of the Government of the Republic of Kazakhstan and the National Bank of the Republic of Kazakhstan on the main directions for each year serves as a tool for transmission and coordination of actions. In a market economy, these statements are the main document of macroeconomic policy, in which the government and the central bank agree on joint policies in the medium term. Also, at one time, the government developed a medium-term fiscal policy - three documents were developed for 2005-2007, 2006-2008, and 2007-2009. After this, the fiscal transmission dried up.
The National Bank determines the rate on a monthly basis and absorbs significant volatility of the national currency and inflation. The Ministry of Finance cannot constantly change tax rates, so it only has an operational instrument - bonds. By the way, in Russia there is a budget maneuver and a tax rule that also needs to be studied.
To what extent are short-term (monetary) and medium-term (fiscal) policies coordinated and adequate? To do this, it is necessary to consider the yields of short-term, medium-term and long-term government securities. It should be that the reduced yield of long-term securities is approximately equal to the yield of medium-term securities, and the reduced yield of medium-term securities is approximately equal to the yield of short-term ones. This has to do with the time value of money - money is worth more now than in the future, so there should be a time risk premium and long-term returns should be higher than short-term returns. When short-term returns exceed long-term returns, i.e. If an inversion occurs, then they talk about an upcoming crisis: investors are not confident in the prospects of the economy and do not risk going into long securities. Last year, such a situation was observed in US treasury securities, but a crisis did not occur. In other words, the yield on short-term, medium-term and long-term securities should be approximately equal to the base interest rate, taking into account present value.
The analysis shows that the yield on government securities of Kazakhstan, firstly, is multidirectional, and secondly, we are observing a permanent inversion of the yield curves of government securities. The yield on short-term notes during the temporary period exceeded 18%, which was associated with pressure on the tenge exchange rate in October 2015 and April 2021, but over time the yield approached the base rate level of 9%. At the same time, the yield on medium-term MEOKAM securities in the period until October 2016 was lower than the yield on short-term securities. The yield of the long-term MEUKAM curve was generally lower than the short-term one throughout the entire time period. This is primarily due to the greater volume of liquidity attributable to the segment of short-term notes of the National Bank than to medium-term and long-term securities of the Ministry of Finance.
Source: Ministry of Finance of the Republic of Kazakhstan, National Bank of the Republic of Kazakhstan
To what extent is there a lack of liquidity in the segment of long-term and medium-term bonds? But there is demand there, and it is constant. During 2015-2019, demand for medium-term and long-term government securities exceeded supply: in 2021 - 2 times , in 2021 - by 30%, in 2021 - by 7%. Moreover, demand is approximately equal to the budget deficit; in 2019, demand more than doubled.
Supply and demand for securities of the Ministry of Finance of the Republic of Kazakhstan
Year | Supply volume, million tenge | Volume of demand, million tenge | Demand/supply of government securities, % | Deficit/surplus of the Republic of Belarus, million tenge |
2015 | 203 399 | 190 143 | 93% | |
2017 | 500 500 | 1 011 479 | 202% | -1 356 975 |
2018 | 385 000 | 503 982 | 131% | -729 188 |
2019 | 1 091 000 | 1 169 996 | 107% | -936 014 |
Multidirectional yields and inversion indicate that there is weak coordination of the actions of the government and the National Bank on issues of issuing securities and determining coupons (prices for discount securities). The coordination of policies should be as follows: The National Bank, using the base rate and the yield of notes, strives to reduce inflation in the short term, and the government, by setting the marginal rate on government securities above the yield of short-term notes, indicates the medium-term interest rate, keeping the real rate small in economics. The National Bank will strive to achieve this medium-term rate, limiting the growth of inflation. Market participants will form their expectations and adapt to the medium-term yield curve.
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It is clear that in order to achieve low inflation (in addition to what is being done by the government and the National Bank), it is necessary that paper rates and the base rate be comfortable, allowing the real sector the economy consumes more credit. The Ministry of Finance increases the issue of government securities with a gradual reduction in the coupon size, forming its own yield curve and thereby solving four issues: 1) increasing the volume of funds to finance the budget deficit; 2) saturation of the capital market with additional instruments and, accordingly, addition of liquidity; 3) reduction and complete abandonment of National Fund transfers and 4) indication of the trajectory of profitability and, accordingly, inflation, at least in the medium term. In addition, the economy, in conditions of global uncertainty, will require additional funds, because each state in a crisis will first of all try to stimulate domestic demand, which can be solved through additional issue of medium- and long-term securities.
There are also a number of government initiatives that remain underfunded - less funds have been allocated for the implementation of the six-year State Program of Industrial and Innovative Development for 2020-2025 than for the implementation of the previous SPIID program. One of the tools for the United States to emerge from the Great Depression was to finance the construction of public infrastructure (roads, bridges), even through significant deficit financing. By increasing the primary issue of bonds, the Ministry of Finance should focus only on the domestic market, like Japan, where the budget deficit is financed mainly through domestic borrowing.
In this regard, it is necessary to recommend the following.
1. Strengthen coordination of actions of the government and the National Bank. Previously, they made joint statements, which helped to level out the asymmetry of information and create the right expectations among market participants.
2. Reduce the issue of short-term notes, which will automatically lead to an increase in demand for medium- and long-term government securities. Growing demand for medium- and long-term bonds will allow the Ministry of Finance to reduce borrowing costs and thereby create a positive spread between government securities.
3. Form a medium-term yield curve and increase the primary issue of medium-term and long-term bonds even by an amount exceeding the planned budget deficit by 2 times , setting a coupon higher than the yield of the National Bank notes.
4. At the same time, the National Bank must make efforts to reduce the base rate even to a level of less than 3% of the real rate in the economy.
5. By increasing government domestic borrowing, increase lending to the real sector of the economy, thereby leveling the risk for the economy of borrowing in rubles and loss of currency sovereignty.
Security in Kazakhstan
Kazakhstan is generally a safe place for expats to live. However, there are some contradictions between the rich and the poor: robberies and thefts occur here, especially in the cities. Expats are therefore advised to avoid walking alone, use pre-arranged taxis and stick to well-lit and well-populated areas. Theft has been reported numerous times outdoors in Almaty, so keep your belongings close and keep an eye on them.
Driving in Kazakhstan is notoriously anarchic; Don't assume that cars will stop to let you pass, especially when it's cold and icy.
The emergency number from any phone in Kazakhstan is 112. The number for law enforcement is 102. After criticism of the police in recent years - they have been called old-fashioned and repressive - President Nursultan Nazarbayev said he is working on reforms to improve the level and quality of police officers .
How do ordinary people live?
The republic is inhabited by representatives of 123 nationalities. But there are no interfaith conflicts on its territory. How do ordinary people live in Kazakhstan? Some aspects of "civilization" are limited, but this only benefits the population. Alcohol is sold in stores from 12-00 to 21-00. Drinking and smoking are prohibited in public places. Porn resources are blocked on the Internet. Young people are encouraged to develop by raising the image of the public service.
In the northern industrial zone, people are employed in manufacturing, in cities - in the service sector. In the south, the traditional way of life of the indigenous population is more valued. This also affects the generally spoken language. In the northern regions, Russian is more widely spoken, and in the southern regions, Kazakh is more widespread.
Life in the village
The rural population is engaged in subsistence farming. Traditional industries include raising sheep, cattle, horses, and growing grain crops. In villages they keep poultry for their own consumption and for sale. People receive income from the state. They work in the service sector or in government positions.
The population of the villages is very friendly, neighbors help each other, elders are revered, and ancient family traditions are honored.
How ordinary people live in Kazakhstan
Historically, the vast Kazakh expanses were inhabited by nomadic tribes that converted to Islam from the end of the 10th century. From the beginning of the 18th century, the territory experienced the influence of the Russian Empire, the development of the land by Russians began, which gave impetus to the development of cities and industry. Along with the Russians came secular European culture. Modern Kazakhstan is an amazing mixture of ethnic groups, cultures and religions. In this melting pot, a new Kazakh society is gradually being born.
Video: review of a Russian woman about life in Kazakhstan
Population
The Kazakh State Statistics Service lists the population as 17,753,200 people for 2018. It is curious that the all-knowing US CIA estimates the population of Kazakhstan at 18,360,353 people. It is difficult to say where this difference comes from, but the need for another census is obvious. The last one was in 2009.
The distribution of age groups has a pronounced pyramidal character.
The female population of Kazakhstan prevails in age groups over 35 years old
Noteworthy is the smaller number of people aged 10 to 24 years. These are those born in 1991–2005, when the country was experiencing a demographic crisis and the birth rate was falling.
The decline in the population of Kazakhstan in 1991–2000 gave way to steady growth since 2005
average life expectancy
Life expectancy in Kazakhstan for 2021 was:
- in the country as a whole - 70.8 years,
- men - 65.6 years,
- women - 75.7 years.
According to this indicator, Kazakhstan is in 123rd place in the world ranking for 2021.
What nationalities live in Kazakhstan
The majority of the population are ethnic Kazakhs. But other nationalities are also represented by numerous diasporas.
In the structure of the population of Kazakhstan, Kazakhs and Russians make up 87%
Mentality
When talking about the mentality of Kazakhstanis, it is necessary to clarify who they mean: Kazakhs, Russians, Koreans, Caucasians or Germans, for example. The Kazakhs themselves are divided into zhuzes: senior, middle and junior. Among them there are urban and rural, nomadic and sedentary, Muslims, Christians, Buddhists and non-believers. But there are subtle commonalities: hospitality, cheerfulness, spontaneity and a freedom-loving spirit.
Kazakhstanis love to show off. I recently learned the meaning of this word. To put it another way, Kazakhstanis love to brag. I often visit Europe, there are many wealthy people there. But not a single millionaire I've ever met would show up to a regular bar wearing his most expensive suit and most expensive watch. It's everywhere here.
Vladimir Jaanich, chef from Serbia
https://nasmnogo.net/index.php/topic/11540-trudovye-migranty-rasskazyvaiut-o-tom-kak-im-zhiv/
Kazakhstan can be called a patriarchal society, committed to the traditional way of life. This is one of the reasons that allows N. Nazarbayev to lead the country for 27 years in a row.
People with unconventional orientation in the south of Kazakhstan are unlikely to be as happy as in Europe. In Shymkent, homosexuals are not welcomed, but they are not condemned either. Unconventional orientation is perceived as a deviation, a mistake of nature. In this regard, the Catholic Church and Shymkent residents have the same views.
Father Ariel, Catholic priest, 41 years old
https://esquire.kz/3721-ya_peredal_pape_podarok_sdelanniy_rukami_shimkentskih_detey_iet
Cultural characteristics
Life in large cities bears all the features of modernity, in which both European and Asian influences are simultaneously felt. The latter is due to expanding cooperation with China and the penetration of Chinese business into all spheres of the Kazakh economy.
There are three periods in the culture of Kazakhstan:
- Pre-Soviet - based on religion and folk art, with the majority of the population illiterate.
- Soviet - the creation of writing with the Cyrillic alphabet and the education of the national creative intelligentsia.
- Modern - the development of the culture of independent Kazakhstan under the patronage of the country's top leadership.
The founder of Kazakh literature and its first classic is Abai Kunanbayev (1845–1904). He is a bright representative of enlightened Islam, an educator and supporter of rapprochement with Russian and European culture. In Soviet times, the poet Olzhas Suleimenov, a writer and statesman who took an active part in the construction of independent Kazakhstan, received the greatest fame.
Abay Kunanbayev - great poet and philosopher of Kazakhstan
In Russia, the culture of Kazakhstan is mainly represented by the performances of popular singers and ensembles: Roza Rymbaeva, VIA “Yalla”, Nargiz Zakirova and others.
Pros and cons of living in Kazakhstan conclusion
Kazakhstan is a good country to live in, but not for us. Why? Having considered the pros and cons of living in Kazakhstan, we came to exactly this conclusion.
Firstly, we are not satisfied with the need to leave and enter the country every 3 months. And if you don’t find anyone to register for 2 months, then you will have to leave every month. And you won’t bother your relatives/friends/owner of the rented apartment every 3 months and distract him from his business. This is very inconvenient for us.
Secondly, on our last visit to this country, we changed our opinion about the people in it, not for the better. No offense!
Thirdly, it’s cold there in winter, and we’re looking for a warmer place