Kazakhstan Country Profile

Snapshot of the Kazakhstan Country Profile


Kazakhstan has experienced an annual economic growth rate of around 10% in recent years because of its large oil deposits, and the political elite have been successful in virtually monopolising the benefits of this boom. There are massive possibilities for corruption on a grand scale in Kazakhstan's environment of intra-elite allocation of benefits connected to oil production. Corruption in Kazakhstan is systemic, even within the country's anti-corruption agency, and no public office is free from executive interference. Long delays, unwieldy bureaucracy, weak business law, short deadlines, employee discontent and the absence of explanatory information all breed corruption.

Positive developments in relation to corruption and investment:

  • Foreign direct investment flows have remained strong over 2008, highlighting the fact that Kazakhstan is still an attractive investment country, despite the corruption companies might face.
  • The conditions for developing transparent relations between companies and the government are slowly improving in Kazakhstan. Public officials are trained in anti-corruption, and a code of ethics exists for public officials.
  • The government has held competitive examinations for lower and middle-ranking officials that are more frequently in contact with companies, in order to encourage transparency.

Risks of corruption:

  • The business licensing, customs and tax authorities reportedly pose the greatest problems for companies.
  • The most widespread form of corruption in Kazakhstan is administrative, including routine extortions and shadow control of companies by officials, which is believed to have fuelled inflation.
  • The President has denounced corruption in the lower levels of government administration and has instructed lower level officials not to obstruct the operations of SMEs, but little in this regard has translated into practice.
  • According to Kazakhstani law, foreigners cannot own agricultural land, but can lease such land for a period of up to 10 years. However, the wording of the law is unclear. The lack of legal clarity leaves space for corruption to occur in order to purchase land and to settle conflicts concerning property rights.


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