September 2010|1 - KazEnergy

September 2010|61
ThE COuNTry uN-
DErTOOK a prOC-
ESS Of DE-mO-
NOpOlizaTiON,
privaTizaTiON, DEbT
rESTruCTuriNg,
priCE libEraliza-
TiON, customs
REfoRm, ANd tAx
REstRuctuRiNG.
tion for its integration into the global economy
and global energy sector.
The country adheres to the position of diversification
of methods of hydrocarbon transportation
to the world market and highly effective
use of pipeline systems.
It is important to note that Kazakhstan exported
more than 67 mln t from 76.5 mln t of extracted
crude oil in 2009, primarily to European and
Chinese energy markets. The total revenues
from oil exports were US$26.2 billion.
Moreover it is alleged that Kazakhstan will be
able to produce about 110 mln t of crude oil in
2015-16, and its export potential will grow to
100 mln t annually.
SEEKiNg DivErSifiED aND iNNOvaTivE
fuTurE
From the very outset the Government of independent
Kazakhstan has sought to lay the
foundations of a market economy, civil society
and democracy simultaneously through pursuing
economic growth and rising living standards
whilst maintaining stability. The basis of
Kazakhstan’s energy strategy is formed on the
principle of an economic expedience and the
minimization of the technogenic impact on the
environment.
However, Kazakhstan’s strategic aspiration
is to become a modern, diversified economy
with a high value added and high-tech component,
fully integrated in to the global economy.
The energy sector is viewed as a good basis
from which to achieve this goal.
At independence in 1991, Kazakhstan had
a promising resource base, from its sizable
hydrocarbon reserves to its well-educated
workforce. More importantly though, it had
the wisdom to quickly move away from the
failed policies of the past. Kazakhstan’s leadership
embarked on a new transformational
course. In a little over ten years, Kazakhstan
implemented a series of broad-based reforms
that brought the country from a planned to a
market economy.
The country undertook a process of de-monopolization,
privatization, debt restructuring,
price liberalization, customs reform, and tax
restructuring. Kazakhstan established a Securities
and Exchange Commission, liberalized
trade, enacted laws on investment, established
a new government procurement process, and
reformed the banking system.
The recovery of international oil prices in 1999-
2000, combined with a well-timed national
currency (tenge) devaluation and a bumper
grain harvest, pulled the Kazakhstan economy
out of recession in 2000.
The Government has embarked upon an industrial
policy designed to diversify the country’s
economy away from over-dependence on
the oil sector by developing innovative heavy
and light industry. Without doubt, full dependence
on natural resources and world prices
makes a national economy vulnerable.
Kazakhstan has enjoyed impressive economic
growth since 2000, buoyed by increased oil
exports, as well as by bold economic reforms,
prudent fiscal policies and economic initiatives
that were instituted in 1999. Those measures
boosted a constant and stable growth of
the national economy and the well-being of its
people.
In spite of the hardships of the global economic
crisis 2007-09, Kazakhstan became one
of a small group of countries in the world that
evaded a sharp downturn. This is also due to
effective anti-crisis state programs and mea-