KAZAKHSTAN MOVING TOWARDS BEING A MAJOR PLAYER IN FINANCE

by Bob Walsh

Kazakhstan is the ninth largest country in the world but is sparsely populated, with only about 18 million inhabitants.  It is also the largest land-locked country in the world and is part of the old Soviet Union.  

They decided a couple of years back that they wanted to be a major player in the world of finance.  They did it in an interesting way.  They imported the English legal system governing financial transactions.  This included importing the retied Chief Justice of England and Wales, Lord Harry Woolf and the former deputy president of the Supreme Court of the United Kingdom, Lord Jonathan Mance, as well as ten other English justices.  In addition they imported the English language, the court by law does all of it's business in English.  

They wanted a reliable and reputable system and so this arrangement was solidified into their constitution.  They believe that this will set them up to be seen as a reputable, reliable financial center for much of the Muslim world including for people who want to do business there.  The cultural and religious traditions of Islam make finance, especially international finance, an awkward proposition for many.  

They have also offered a "tax holiday" until 2066 for income derived from financial services and capital gains.

Not that I am much of an expert but I expect that a lot of major players may be hesitant to step into that part of the world due to the political unrest in the region.  The central location of the country also makes it right in the middle of the storm if things get "interesting."  The country is bordered by Russia, China, Uzbekistan and Turkmenistan and is just a stones throw from Turkey and Iran.  Being close to the customers may mean being too close if the stinky stuff hits the air circulation device.  

I wish them well.  With a bit of luck they have a winning strategy and will start making tons of money for the betterment of their people.