Kazakhstan – The Rise of the Asian Panther

The Republic of Kazakhstan witnessed incredible economic growth with its real GDP growing at least 9% per year between 2000 and 2007. One must ask, is this economic growth sustainable? This paper examines Kazakhstan's current development and the factors that would impact its economic growth and prosperity. Kazakhstan shares many characteristics with the Asian Tigers, such as strong international investment, a low tax burden, a small government debt, a well-developed banking system, a paternalistic managing style, and citizens possessing entrepreneurial drive. Unfortunately, Kazakhstan's economic development differs from the Asian Tigers. Although Kazakhstan has immense mineral and petroleum wealth, its bureaucratic, corrupt, overbearing legal system could prevent Kazakhstan from reaping this wealth. Then the Dutch Disease and Resource Curse further complicate matters. Finally, Kazakhstan joined the new Customs Union with the Russian Federation and Belarus, aligning its economic growth to Russia's economy