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Corruption in Kazakhstan


I start from a brief description of the current state of corruption in Kazakhstan. I use the definition of corruption most often found in public administration scholarly literature - corruption is an act of using public office and resources for private gain. The indices of corruption in Kazakhstan have been developed by many international agencies after its independence and made available on the Internet. International agencies and nongovernmental organizations such as Transparency international (TI), the Economist Intelligence Unit, the World Competitiveness Yearbook, the World
Economic Forum regularly collect data and produce corruption indices based on the perceptions of Kazakhstani entrepreneurs. To describe corruption in Kazakhstan, I summarize the often-used indices of TI and the World Economic Forum. Chart 1 below presents the CPI from the TI for 14 years from 1999-2012, which shows the corruption dynamics in Kazakhstan.
Chart 1. The TI Corruption Perception Indices (CPI) in Kazakhstan

Source: Transparency International, Kazakhstan 1999-2012
* I estimated the index from 2012, because during this year the TI has modified its method for index calculation.
Chart 1 reflects the perception of government corruption by small and medium size business owners in Kazakhstan. The TI measures corruption from 1 to 10, whereas 1 is the highest level of corruption and 10 signifies the absence of corruption. In Chart 1 we observe that the CPI in Kazakhstan has never attained even the medium level of corruption at five, averaging 2, 5214, which suggests that the local businesses perceive a high level of corruption in Kazakhstan.
The Global Competitiveness Report on Kazakhstan from 2013–2014, prepared by the World Economic Forum, shows the most problematic factors of doing business in Kazakhstan for executive directors of Kazakhstani companies and ranks these factors. I used the data from the 2013 edition of the Executive Opinion Survey by the World Economic Forum to build the Chart 2. In Kazakhstan the survey was administered among 107 business executives.
Chart 2. Most problematic business related factors in Kazakhstan

Source: The World Economic Forum, The Global Competitiveness Report: Kazakhstan 2013–2014.
The chart above suggests that 18.8% of business executives viewed corruption as the most disturbing factor of entrepreneurial activities, while other factors in the Chart 2 have been selected by fewer respondents. This ranking demonstrates the negative role of corruption in business development and affects the overall competitiveness index of Kazakhstan.
These measures of corruption indicate the seriousness of corruption in Kazakhstan, where secretive “under the table” deals prevail regardless of numerous presidential decrees and initiatives to curb corruption. Similar data on corruption has been generated and published by several international agencies and research think tanks during the 20 years of independence, but here I limit the discussion to the analysis of the conditions that led to corruption.


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