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Kazakhstan’s Struggle Implementing Vaccines

Kazakhstan COVID-19 vaccine
Kazakhstan’s struggle to motivate its citizens to receive the COVID-19 vaccine is leading to increased COVID-19 cases. In April 2021, 137,000 Kazakh citizens out of a population of 19 million received the first dose of the vaccine and less than half of those had received the second dose. Pressure from Kazakh President Kassym-Jomart Tokayev has helped increase the number of fully vaccinated citizens, but as of August 2021, only about 22% of the population is fully vaccinated.

The Kazakh President

President Kassym-Jomart Tokayev expressed his outrage over the slow pace of vaccination. He warned both the health minister and his government, saying, “In April, you must turn the tide, otherwise a personnel decision that is going to be very disappointing for you will follow.”

Reasons for the Hesitancy

The country began administering QazVac, Kazakhstan’s domestically produced COVID-19 vaccine, before the completion of clinical trials. The Research Institute for Biological Safety Problems, a state-backed research center, assured the public that the vaccine is safe. However, many Kazakhs fear that the vaccine has not yet gone through enough testing. The QazVac vaccine finished trials in July 2021. However, some experts remain skeptical because these trials only included 3,000 people as test subjects, compared with approximately 43,000 Pfizer trial participants.

The Impact of Vaccine Hesitancy in Kazakstan

Kazakhstan’s recent struggle has included its largest economic shock since the late 1990s. The COVID-19 pandemic decreased economic activity worldwide, causing the price of oil to drop. As oil is Kazakhstan’s main export, the price drop caused its economy to contract by 2.5% in 2020. As a result, the poverty rate increased from 6% in 2016 to 12-14% in 2020, curtailing years’ worth of progress.

The pandemic has increased urban unemployment by halting travel and social outings, limiting jobs in retail, hospitality, wholesale and transport. According to the World Bank, these four main industries account for 30% of urban employment in Kazakhstan.

While poverty has surged in cities, the pandemic has hit rural areas even harder. World Bank Country Manager for Kazakhstan Jean-Francois Marteau has expressed that to combat this disparity, Kazakhstan needs to implement reforms focused on inclusive economic recovery and productivity. Long-term reforms will be necessary to alleviate Kazakhstan’s struggle as the pandemic’s economic impact will last two to three years.

Economic Recovery

Kazakhstan’s economic recovery is largely dependent on the world’s economic recovery. As COVID-19 cases decrease and countries lift restrictions, allowing travel and day-to-day activities to resume, oil prices will recover. Additionally, as more people become vaccinated and vaccines become more readily available and trusted, the spread of COVID-19 should slow. Retailers, restaurants and the hospitality industry will begin to reopen and managers will be able to rehire employees they had to let go due to lockdowns.

As this recovery takes place, predictions determine that Kazakhstan’s economy could grow by 2.5% in 2021 and 3.5% in 2022, providing hope to the nation.

– Lily Vassalo
Photo: Flickr

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4 Facts About Kazakhstan Bank Debts

Kazakhstan Bank Debts
Kazakhstan, located in Central Asia, has implemented a program to help nearly 500,000 citizens get out of bank debts. The program started in June 2019 and will cost over $274 million to execute. President Kassym-Jomart Tokayev hopes that by forgiving bad loans given out by the country’s banks, Kazakhstan’s bank debts will decrease, releasing some of the strain on the economy. This policy will also help increase business in the banking sector of the economy, opening up more jobs for individuals below the poverty line.

4 Facts About Kazakhstan Bank Debts

  1. Kazakhstan’s economy has fallen in recent years. The country’s economic system rated 59 overall in 2019. The country has fallen by 3.7 points in the past few years and this is because of a steep decrease in its fiscal health. The unemployment rate is at 4.9 percent and the annual GDP is $477.6 billion. However, the economy’s fiscal health has faced a sharp decline. Over the past year, the country’s financial stability has steadily decreased due to poor working environments and high prices on goods. The country’s goal is to reduce Kazakhstan’s bank debts and increase financial security.

  2. Private banks caused the bank debts. One-sixth of Kazakhstan’s population holds bad loans written by private banks. Bank bailouts have been occurring in the country for a decade. The government provides at least $18 billion in private banks to keep their businesses running. Since Tokayev’s election in June 2019, he has introduced a policy to stop bank bailouts that the government provided.

  3. This is not necessarily a bad thing for poverty. Although the citizens holding bank debts may be living under the poverty line, the government’s forgiveness is a positive change. By ending Kazakhstan’s bank debts, the country’s monetary freedom should increase. Although this freedom grew in 2019, there is still plenty of room for growth. In 2018, 4.3 percent of the population lived below the poverty line. The debt release policy will help alleviate the debts of about 18 million people. About 500,000 people cannot manage their debts because of bank loans. The loan forgiveness policy will help individuals get rid of their debts so they can spend more money on essentials. By forgiving the loans, the country hopes to balance its economy. This will help individuals escape the poverty line, both through their lack of debts and through pay increases.

  4. The debt forgiveness policy is based on the amount owed. According to Kazakhstan’s president, Kassym-Jomart Tokayev, individuals with up to $800 of debt will have it forgiven completely. Individuals with over $800 will have $800 erased from their debt. This will help individuals like Anara Ryskulova, who has four small children and only makes $400 a month. Because of her low income, Ryskulova is dependent on credit and loans to provide for her family and pay her rent.

Since his election in June 2019, President Kassym-Jomart Tokayev has implemented a policy to stop bank bailouts. For a decade, the Kazakhstan government has been bailing out privately owned banks. The policy will not only increase the banking sector of the government but will also help the individuals who live below the poverty line. By decreasing the bank debts, affected individuals will have more money for essentials. By implementing this policy, Kazakhstan’s president will not only increase the country’s GDP but ultimately, help the citizens live above the poverty line.

– Destinee Smethers
Photo: Flickr