Millions of fans of the movie 'Borat' ask themselves whether Kazakhstan is really the country showed in parts of this movie? What's the true look of this former Soviet republic? Can we really 'learn' something without any prejudice from its past and present?

Kazakhstan is a very large country, second in the former USSR only to Russia. It's scarcely populated; barely 15 million live on a territory that can take inside most West European countries combined. Among those living there only a small majority represent ethnic Kazakhs. There is still a significant Russian minority, people attracted to these lands by the Soviet government during the years of fast industrialization. Kazakhstan is far from the stereotypical image of Third World country with very poor people living in families with too many children. In fact the total fertility rate is only slightly above those in most European 'advanced' countries, and slightly below those in the United States.

Economy is based mainly on energy exports, oil, gas, plus some metal ores. Comparatively speaking Kazakhstan is better off than many other former Soviet republics because of its vast oil reserves. GDP per capita however is still below many other oil-exporting countries, including Russia. Reasons for this is that the country's landlocked location makes oil export more expensive, and additional foreign middlemen take part of the huge oil rent. Kazakhstan is still in a process of building its own state and administration. During this process the time of managing business projects is unusually long, which also puts the country in disadvantage. Many skillful workers and specialists are attracted by higher wages to Russia and Europe. It will take some time before the country educates its own specialists and workers.

In international aspect Kazakhstan tries to balance between several much stronger and powerful nations: Russia, China, and since more recently, the United States. This balance gives something to everyone, preventing building an international coalition for partitioning the country on spheres of influence. Russia is still considered as the 'big brother' in terms of security, its oil companies have access to new developments. China takes increasing share of Kazakh oil for its booming industry. The United States also have some access to oil developments and save passage to other hot zones in Central Asia.

In internal affairs Kazakhstan is increasingly an authoritarian country. Given its international context this is a double-edged sword. President Nazarbaev can maneuver between the big 'sharks' more easily without being held accountable to the electorate. He's an indispensable personality for anybody who wants to do business in Kazakhstan. The weak element, and this applies with equal strength to any authoritarian political system, is that as any person he's making mistakes, and these mistakes cannot be fixed without internal political checks and balances. The problem of succession is also important; 66-year old Nazarbaev can still keep well the reins of power, but the end of his rule may lead not only to collapse of his political regime, but also to unpredictable consequences for the entire country.

Kazakhstan profile:

• Area: 2,717,300 sq km (9th in the world; biggest country with no access to oceans)
• Population: 15.2 million (July 2006 est.)
• Population growth rate: 0.33% (2006 est.)
• Total fertility rate: 1.89 children born/woman (2006 est.)
• Life expectancy at birth: 66.89 years.
• Net migration rate: -3.33 migrant(s)/1,000 population (2006 est.)
• GDP real growth rate: 9.5% (2005 est.)
• GDP per capita: purchasing power parity $8,300 (2005 est.)
• Population below poverty line: 19% (2004 est.)
• Oil exports: 890,000 bbl/day (2003)
• Internet users: 400,000 (2005)

(Sources: CIA World Factbook 2006, Reuters)

--------------------

See also the directory of companies providing real estate services in, and general real estate information of Kazakhstan.