JPMorgan - KASE

As of 1 January 2002, the population of Kazakhstan was approximately 14.8 million, a decrease
of almost 1.2 million since January 1989, primarily due to continuing emigration by ethnic
Russians and Germans. Kazakhstan is one of the most sparsely populated countries in the world
with an average population density of approximately 5.5 people per square kilometer. The
population of Kazakhstan is ethnically diverse.
Kazakhs are the largest among the country’s approximately 126 different ethnic groups,
accounting for 53 per cent. of the population, followed by Russians (31 per cent.), Ukrainians (4.4
per cent.), Tartars, Germans, Uzbeks, Poles and others. The relative size of the Kazakh ethnic
group has increased since the country’s independence, mainly because of the emigration of non-
Kazakh ethnic groups and because of the return of many ethnic Kazakhs to the country.
Historically, Kazakhstan belongs to the Turkic-speaking world. Kazakh, the official language, is
spoken by approximately 50 per cent. of the population. Russian is spoken by more than threequarters
of the population and is also officially recognized for use in State matters and local
government.
State education is provided free of charge and is compulsory from the age of six or seven; usually
children attend at least 11 years of school. The majority of the population has a primary, junior
and secondary school education. Entrance examinations are required for all universities and
colleges, and approximately one-tenth of the population has a degree from a college or
university level institution. Kazakhstan’s adult literacy rate exceeds 97 per cent. The secular
nature of the country is enshrined in Kazakhstan’s constitution, which also ensures the right to
religious freedom. Various religious and ethnic groups generally live in peaceful coexistence. The
principal religions are Islam and Orthodox Christianity, but these faiths are actively practiced only
by a minority of the population. The country is also home to Jews, Catholics and Protestants,
particularly in the German communities.
Constitution, Government and Political Parties
Constitution
Kazakhstan has been one of the most politically stable countries of the CIS. The country’s current
constitution (the “Constitution”), adopted in August 1995, provides for a tripartite structure of
government in which power is divided between the executive, legislative and judicial branches. It
establishes and sets out the powers and functions of the President, the Parliament, the
Government, the Constitutional Council and local governments and administrations and
establishes an independent judicial system. Under President Nazarbayev, the Presidency has to
date largely dominated the other branches of government.
Executive Branch
Under the Constitution the President is the head of state and its highest official with primary
responsibility for domestic and foreign policy and the function of representing Kazakhstan in
international relations, including the power to negotiate and sign international treaties. The
President is also Commander-in-Chief of the armed forces. The President has the power to issue
decrees and orders having the force of law (provided they are consistent with the Constitution),
to determine the priority of legislation before Parliament and to call a national referendum on
matters of special importance. The President also has the power to dissolve Parliament in the
event of a Parliamentary vote of no confidence in the Government or the President, or following
the failure by Parliament on two occasions to approve the appointment of the Prime Minister. In
addition, the President may dismiss Parliament due to “political crises resulting from differences
between the chambers of Parliament or between Parliament and other branches of State power”
(including the President).
B-2