Equipo responsable y destinatarios

Outline

8.1 The Changing Government Structure 8.1.1 Overview of the Reform

8.1.2 Organization and Functions of the Ministry of Energy, Industry and Trade 8.2 Technical Schools and Vocational Institutes

8.2.1 Structure and Distribution of Activities 8.2.2 Funding Sources and Programs

The Machinery Industry in Kazakhstan: Economic Conditions and Policies

8.1 The Changing Government Structure

Nursultan Nazarbayev, a strong leader, serves under a constitution which was adopted by referendum in 1995. The powers of the president permit him to dominate the legislative and judicial branches and constitutional changes can only be made with his consent. Even though he has the power to legislate by decree, the president has worked through the new bicameral

parliament to introduce new legislation required by the constitution. There is not an independent judiciary, and this makes it difficult to root out corruption. The constitution provides for freedom of the press, yet the government controls all broadcasting facilities and instances of repression continue to be reported. Kazak is the official language; although Russian may be used on an equal basis in organizations and bodies of local self-administration, language issues continue to cause tension between the Kazak and Russian speaking populations. Kazakstan belongs to the Organization for Cooperation and Security in Europe (OSCE), the Customs Union (with Russia, Kyrgyzstan and Belarus), and seeks entry to the World Trade Organization (WTO). Nazarbayev is a strong supporter of Central Asian cooperation.

Economic policies are largely directed by Prime Minister Mr. Akezhan Kazhegeldin, who has been Prime Minister for over three years. During his tenure, Mr. Kazhegeldin has formed a cabinet with reform-oriented ministers.

President Nursultan A. Nazarbayev (since 22 February 1990) was elected chairman of the Supreme Soviet 22 February 1990, and president by popular election 1 December 1991; was elected for a five-year term by universal suffrage; election last held 1 December 1991 (next to be held NA 2000); results - Nursultan A. Nazarbayev ran unopposed; note - President

Nazarbayev's term was extended to the year 2000 by a nationwide referendum held 30 April 1995 (note:President Nazarbayev has expanded his presidential powers by decree: only he can initiate constitutional amendments, appoint and dismiss the government, dissolve parliament, call referenda at his discretion, and appoint administrative heads of regions and cities.) Head of government:Prime Minister Akezhan Kazhegeldin (since 12 October 1994) and First Deputy Prime Ministers Nigmatzhan Isingarin (since 12 October 1994) were appointed by the president

Cabinet:Council of Ministers was appointed by the prime minister Legislative branch:bicameral Parliament

Judicial branch:Supreme Court

The relocation of the capital to the city of Akmola is to be completed by the end of 1997, according to President Nazarbayev. A number of reasons have been given for the move,

including a better strategic position and appeasing the Russian population by moving the capital closer to the Russian border. A number of ministries, including the Ministry of Communications and the Ministry of Agriculture, have already moved to Akmola, and other ministries and the parliament will make the transition by the end of 1997. It is generally accepted that Almaty will remain the business center of the country.

The government of Kazakstan, especially the President's office, takes a leading role in directing national economic development. For example, in the ten months between April 1995 and January

aviation, accounting, and electric power. Although implementing regulations are still being developed, the legal system is considerably clearer in outline than before. Legal reform efforts to improve the commercial law infrastructure, especially for business, are expected to continue through 1997. Prime Minister Akezhan Kazhegeldin declared 1996 "The Year of Privatization," and privatization is continuing at a rapid pace in 1997. Although the government of Kazakstan remains an equity partner in a wide variety of parastatals - from banks to agricultural joint stock companies - state-held shares in hundreds of enterprises have been reduced or even eliminated in many cases. In one case, Kazakstan sold half of its 50 percent share in the Tengizchevroil oil joint venture to a major American firm. The national airline has spun off the Almaty airport and a number of other entities. The government of Kazakstan is increasingly a referee, not a

participant, in business transactions. Future efforts will likely focus on reducing or eliminating the role of state holding companies, invigorating the stock market to allow new issues and secondary trading, and establishing regulatory agencies for electric power and other natural monopolies.

Brief Synopsis of the Political System

Kazakstan is a constitutional republic with a strong presidency. Throughout most of 1995, Kazakstan had no legislature; the President and the Cabinet of Ministers governed the country through decree. President Nursultan Nazarbayev, initially elected in 1991 to a five-year term as President, is the country's central political figure. In April 1995, his term was extended by referendum to the year 2000. A new constitution was adopted, also by referendum, in August 1995, that concentrates power in the presidency, permitting it to dominate the parliament, judiciary and local government. Parliamentary elections were held in December 1995. The President is the head of state. He is also the commander-in-chief of the armed forces and may veto legislation that has been passed by the parliament. The Prime Minister, who serves at the pleasure of the President, chairs the Cabinet of Ministers and serves as Kazakstan's head of government. There are several deputy prime ministers (the number is not fixed), 20 ministers, and 19 chairmen of state committees.

Kazakstan has a bicameral parliament, comprised of a lower house (the Majilis) and upper house (the Senate). Forty members of the Senate are indirectly elected by members of the regional assemblies; the remaining seven senators are appointed by the President. The 67-seat Majilis is popularly-elected. The December 1995 parliamentary elections were considered to have been an important, albeit flawed, step on Kazakstan's road to democracy. Majilis deputies and the

government both have the right of legislative initiative. In September 1996, Majilis deputies, for the first time, proposed several draft laws; prior to that time, all legislation considered by the parliament had been proposed by the government.

Political parties in Kazakstan are generally small and nearly unknown outside of the major cities. There are six political parties officially represented in the Kazakstani parliament. Three of these parties - the Party of People's Unity, the Democratic Party, and the People's Cooperative Party - are pro-presidential. Two small opposition parties, the separatist and the communist parties, have seats in parliament. Outside of parliament, small Kazak ethnic and Slavic ethnic parties are

The Machinery Industry in Kazakhstan: Economic Conditions and Policies

active in some cities. Party affiliations play little role in local Kazakstani politics, where personal and family ties are more important.

Kazakstan is divided into 19 provinces (oblasts) and the territory of the capital (Almaty), each of which is headed by a provincial governor (akim) appointed by the Prime Minister. There are also city and village governments. Oblast and city administrations can play an important role in facilitating or hindering trade and investment in Kazakstan.

By the beginning of 1997, Kazakstan had in place important elements of participatory

democracy. Citizens enjoy basic rights to free speech, press and assembly; however, some rights are restricted by complicated bureaucratic requirements and an imperfect legal system. The government generally respects the human rights of its citizens.

GOVERNMENT SYSTEM: Parliamentary Democracy Main government officials (please also see Appendix E): President: Nursultan Nazarbayev

Prime Minister: Akezhan Kazhegeldin

First Deputy Prime Minister: Akmetzhan Yesimov Deputy Prime Minister: Diusembay Duisenov Deputy Prime Minister/

Minister of Finance: Aleksander Pavlov Minister of Oil and Gas: Nurlan Balgimbayev Minister of Energy and

Coal Industry: Victor Khrapunov Minister of Geology and

Earth Protection: Serikbek Daukeyev Minister of Industry and

Trade: Khayrulla Ospanov

From Foreign Trade Memorandum: