Kazakhstan's Downturn Ripples Into Neighboring Economies

Central Asia's economic stability is in question after the Kazakh economy began declining and major financial issues erupted within the country. Astana is taking steps to ameliorate the deep-rooted problems with its economy. In the coming months, the Kazakh government will disperse $5.5 billion to highly indebted large companies, both private and state-owned. Astana is already restructuring banks that are threatening to default on large foreign loans, and in February the government sharply devalued the currency.

Amid global economic uncertainty and financial strains in Russia, Kazakhstan's difficulties are beginning to affect the more fragile economies of Kyrgyzstan, Tajikistan and Uzbekistan. These smaller states do not have the tools to counter such economic troubles — something that eventually could translate to social and political instability.