On this file photograph taken on Tuesday, April 23, 2019, Kazakhstan’s then interim President Kassym-Jomart Tokayev attends the Nur Otan social gathering congress in Nur-Sultan, the capital metropolis of Kazakhstan.
Credit score: AP Photograph, File
Kazakhstan’s president took purpose on the nation’s enterprise elites, those that stash their extraordinary wealth overseas.
“Sufficient of toying round, take a look at them, carried away with their video games, retaining their cash overseas, shopping for yachts and mansions in a number of international locations… It’s safer to maintain cash right here, at residence, we’ll guarantee it’s secure… In case you fail to do that, I warn you in entrance of the entire Kazakhstan, I’ll use different methods to return that cash to Kazakhstan, however you’ll not be right here any extra.”
In fact, that was Kazakhstan’s First President Nursultan Nazarbayev method again in 2017.
Present Kazakh President Kassym-Jomart Tokayev is presently singing an analogous tune.
In a January 11 speech, Tokayev took purpose at Kazakhstan’s elites, significantly these tied to Nazarbayev. “Due to the primary president… a gaggle of very worthwhile corporations has appeared within the nation, as has a gaggle of people who find themselves wealthy, even by worldwide requirements,” Tokayev mentioned on January 11. He went on to say that it was time for them “to pay their dues to the folks of Kazakhstan and assist them on a scientific and common foundation.”
Tokayev has overseen the partial sidelining of Nazarbayev cronies and family members within the wake of the January protests and violence, which he blamed on foreign-trained terrorists. Most analysts hyperlink the stunning violence that occurred largely, although not solely, in Almaty, to elite competitors as a substitute. Tokayev’s efforts to deal with social and financial factors of stress and push out Nazarbayev elites attest to that studying.
The resignations of the husbands of Nazarbayev’s three daughters — Dimash Dosanov (married to Aliya Nazarbayeva) from his publish as chairman of KazTransOil; Kairat Sharipbayev (married to Dariga Nazarbayeva) from his publish as chairman of QazaqGaz; and Timur Kulibayev (married to Dinara Nazarbayeva) from his publish as chairman of the Atameken enterprise foyer — should not coincidences. Neither is the arrest this week of Medet Qumarghaliev, the chairman of Operator ROP, a recycling outfit affiliated with Aliya and straight focused in Tokayev’s January 11 speech; or the a lot earlier arrest of Karim Massimov, who till the day earlier than his arrest on treason costs (which haven’t been absolutely defined but), had been heading Kazakhstan’s Nationwide Safety Committee (KNB).
To handle the social and financial grievances that drove protesters to the streets, Tokayev introduced, amongst different issues, a fund — “For the Individuals of Kazakhstan” — to “cope with resolving actual issues…[in] well being, schooling and social help.” As Joanna Lillis defined earlier this week in an article for Eurasianet, there are extra questions than solutions in regards to the fund and the way it will function at the same time as cash is coming in from large companies: $44 million of $67 million accrued to date.
The fund could serve a twin goal: placating the inhabitants whereas draining the coffers of problematic elites. Dinara and Timur Kulibayev personal a majority stake in Halyk Financial institution, which by the way poured into the fund already.
“That cash may assist our economic system… The state offered you with the situations to make that cash and you’re hiding that cash of Kazakhstan elsewhere? Sufficient is sufficient!” is what Nazarbayev mentioned again in 2017 about funds stashed overseas by the nation’s companies. He went as far as to call and disgrace a number of corporations, a few of which have been at the very least partially state-owned by Kazakhstan’s nationwide wealth fund, Samruk-Kazyna, corresponding to KazMunaiGas.
By the way, reforming Samruk-Kazyna is amongst Tokayev’s introduced reforms, however privatization of the fund’s belongings has been on Kazakhstan’s to-do listing for years. (Right here’s a Samruk-Kazyna assertion from 2016 in regards to the fund’s privatization plans; evaluate it to the not too long ago introduced privatization push).
In remarks final week, Tokayev appealed to businessmen to spend money on the nation — and contribute to the brand new fund, in fact. “In case you hyperlink your future with Kazakhstan, then you need to reinvest your funds in our nation. That is your social and political accountability to Kazakhstan.” He urged them to dismiss the “we earn right here, we spend there” mindset.
In fact, there’s a debate available about whether or not ostensible efforts labeled as “reform” are honest steps towards precise reform or handy bluster to brush folks’s issues to the aspect and get to the true enterprise of energy consolidation.
Again in 2017, there was no scarcity of snarky retorts to Nazarbayev’s raving, which many seen as hypocritical at finest. The Panama Papers leak of 2016 featured an look by Nazarbayev’s grandson, Nurali Aliyev, for instance, who reportedly labored by means of a collection of shell corporations to buy a yacht in 2008, named the Nomad. Extra latest studies proceed to focus on the extraordinary wealth held by the Nazarbayevs, a lot of it in luxurious actual property all over the world.
Tokayev, at the very least given present reporting, doesn’t carry such familial baggage. However this historical past will trigger many to be cautious in accepting at face-value what the Kazakhstani authorities gives as reforms however which may also be repurposed for elite acquire. For this reason finding out how the brand new fund operates is so vital: If there’s a scarcity of transparency, who’s to say it gained’t simply give rise to a brand new cadre of elites?