Question

summarize the major features of political economic system in Kazakhstan, an its function in response to the 2008 global financial crisis

Answer 1

Kazakhstan is the country situated in the Central Asia. Kazakhstan is the secular and democratic country. The government follows the system of running two or more assemblies. It is the system of bicameral parliament. The economy of the Kazakhstan is one among the fertile economy by having 5% of agricultural income contributing towards GDP and the remaining percentage are contributed by secondary sectors like industries and other service oriented industries. It has a mixed economy.

Since 2002, US nation has tied up with the economic and business relations with the Kazakhstan and created the channel of trade allocating resources in order to have business agreements in the fields of all production of goods and services and also helps to keep the balanced state of wage level determination and the level of GDP.

The Kazakhstan country faced economic crisis in 2008. This crisis was started when all banks in the same country denied to provide loans and advances to the investors and all common people who want to fulfill the needs for basic requirements as well as to expand the business firms. Too much money supply and the inflationary pressures made windfall rise of GDP to 75% in 2008. It was just near accounted to 5% in 1998. In order to cut short such inflationary pressure, the government started to invest the few percentage of funds in commodity sales throughout in the global market. As return of such investment will be gained only after many years, Kazakhstan has expected the slight decrease in the supply of money and inflationary shock. But it all ended in the vain because the needs of the people cannot able to adjust accordingly with the income in their hands. They started to protest against the ineffective policy of the government and started to rise loans with the Russian Banks from whom they got less rate of interest. In this stage, the central bank devalued the nation's currency value. Then gradually the people are able to repay the advances they got as loan only after 2-3 years only. Then Russian Banks began to provide financial assistance to the people of Kazakhstan till now by capturing the global customers in all the parts of Asia. .