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Mercedes to Mazda: cars as an economic and political indicator

Written by Stavros on Tuesday, 20 June 2006
Business and Economics, Kazakhstan
11 Comments

There is a surprising diversity of cars in Kazakh cities. They range from refurbished German and Japanese cars to Soviet era Lada. Strong economic growth has lead to a surge in car ownership and when visiting a community cars are a quick indicator of the economic vitality of the community.

Andrei, an ethnic Russian from Taldykorgan, is a new breed of automobile entrepreneurs:

“I travel to Germany where I buy used German cars then drive them to Kazakhstan where I fix them in my workshop. Then I resell them on the automarket in Almaty”.

He explains how these cars are preferred to new Russian models (less so in the North) and that they are more affordable than new foreign cars. “I have just purchased a flat bed truck with my German partner to bring cars to Kazakhstan”, he speaks of the solid market for refurbished cars.

The Kazakh government is open to the importing of used cars despite the significant bribes paid to border officials. For whatever reason they turn a blind eye even though they possess the authority to limit this flow.

Overall, the issue of cars gives a sense of Kazakhstan as a legitimate free market economy.

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