Privatization and Foreign Investment in the Utilities Industries of Kazakhstan

Abstract

An American economist specializing in the natural resource and related industries of Kazakhstan examines the experience in the privatization of that country's power generation, telecommunications, and postal services sectors. A focus is on the involvement of foreign companies in the process, the terms of the management contracts/joint-venture agreements, and the extremely short time frame within which privatization was implemented. Difficulties resulting from the rapid pace of privatization are described: unclear terms of sale, reversals of tender awards and cancellation of agreements, nonpayment by consumers, and uncertainties in the setting of rates. Journal of Economic Literature, Classification Numbers: F21, G34, L90. 1 figure, 1 table, 30 references.