Setting the scene

The Central Asian states (Kazakhstan, Turkmenistan, Uzbekistan, Kyrgyzstan and Tajikistan) gained independence in December 1991 after the break-up of the former Soviet Union.

All five states suddenly faced increased economic, social, ethnic and political problems. Republican leaderships allowed substantive growth of democracy only in Kyrgyzstan and - to a lesser extent - Kazakstan, and have since reasserted control over non-compliant Parliaments in both.

The impact of Russia's economic reforms and the desire to establish independent economic structures have prompted the states - to a varying extent - to move away from the Communist-era command economy. Inflation, dislocation of the Soviet trading network and the loss of central funding have caused severe price rises and exacerbated social problems. Unemployment has increased sharply; many workers are on part-time or enforced leave.

Tajikistan's near-civil war with a coalition of Islamist and pro-democracy groups in 1991/92 badly damaged its economy and left it heavily dependent on Russia. Tajikistan's experience has provided a warning to the other states, where the populations' chief priority has been to safeguard and improve their living standards rather than to gain democracy.

Suat M Mynbaev, Minister of Finance
The economic situation in Kazakhstan

Oraz Jandosov, Governor, National Bank of Kazakhstan (NBK)
Banking system prospects in the Republic of Kazakstan