Voice of Democracy
Published by Kazakhstan 21st Century Foundation · Washington, D.C. July 10, 2003

MAKING OIL TRANSPARENT -- Major oil and gas discoveries "have brought corruption and strife" to countries such as Kazakhstan, where "huge criminal cases are exposing possible bribes paid for the benefit of Mobil (Oil Co.)" because the deals are shrouded in secrecy by the rulers, says the New York Times. "Strip the secrecy from the deals," says a Times editorial, because "a country's natural resources belong to its citizens" and the people should be able to learn what foreign companies "pay to exploit those resources or how the proceeds are spent." Tens of millions, if not more than a billion dollars, from Kazakh oil deals reportedly wound up in secret foreign bank accounts controlled by President Nazarbayev and some of his closest associates. One top advisor and a former Mobil executive already have been indicted in US federal courts in connection with the Kazakhgate scandal. Companies should be required to publish what they pay to each country where they work, says the Times; it would "give companies a tool to resist paying huge bribes" and it would also "help ensure that oil and gas revenues are used to create more prosperous and stable societies." http://www.nytimes.com/2003/07/06/opinion/06SUN2.html?tntemail0

KANGAROO KAZAKH COURTS -- Unfair and politically-tainted trials and corrupt elections were a critical focus of this week's high level visit to Almaty by the head of the Organization for Security and Cooperation in Europe. OSCE chairman Jaap de Hoop Scheffer, who is also the Netherlands foreign minister, called for "fair treatment" of Kazakh opposition activists whose "high-profile prosecutions have drawn international criticism from human rights groups," said the Associated Press. He specifically noted charges against independent journalist Sergei Duvanov are widely considered, both inside Kazakhstan and abroad, to be politically motivated. The OSCE also has been "sharply critical" of Kazakh election practices in previous parliamentary and presidential elections, reported Radio Free Europe/Radio Liberty. Scheffer offered OSCE's help in cleaning up that and other areas of abuse. http://www.ap.org, http://www.rferl.org/bd/ka/

MORE DESERT, LESS OASIS -- Unless significant agricultural reforms are enacted, more than half of Kazakhstan could become a desert, warned the United Nations Development Program (UNDP). The report noted that 10-15% of arable land in parts of southwest Kazakhstan is turning into desert every year because irrigation systems are not functioning, and up to a quarter of all pasture lands south of the Arab Sea have been lost due to lack of water, Interfax stated. Arable land is also disappearing due to loss of humus, salinization, chemical pollution, erosion, mining and oil extraction, UNDP noted. http://www.interfax-news.com/.

PRIME TERMINATOR -- The new Kazakh prime minister brings with him a reputation as an administrator with little tolerance for opposition, RFE/RL reports. Opposition leaders have protested Daniyal Akhmetov's appointment, accusing him of closing down and harassing independent media outlets when he was governor of Pavlodar. The newspaper Kommersant-Daily reported that he earned the nickname "Terminator" as governor of Pavlodar Oblast when he conducted a tough clean-up campaign after his predecessor became a leader of the opposition democratic movement. http://www.rferl.org/bd/ka/

KAZAKH OIL MEN TOLD SHAPE UP OR LOSE OUT -- Burdensome government regulations are making Western investors wary of doing business in Kazakhstan, reports Agence France Presse. Despite having the Caspian's biggest proven oil reserves, the country is "most vulnerable to the new challenge" from a resurgent Iraqi oil industry, according to experts. With Saddam Hussein gone and sanctions lifted, Iraqi oil production is expected to grow dramatically and draw western investors at the expense of Kazakhstan, they noted. To prevent serious economic damage, Kazakh officials should " do everything they can to create strong investment climates so that they can attract investment dollars in the future," said Steven Mann, the US State Department's Caspian envoy. http://www.afp.com/english/home/

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