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The Kazakh Middle Class: Management, Private Home, Automobile

Written by on Friday, 20 August 2010
Kazakhstan, Politics and Society
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d0bcd0b5d0bdd0b5d0b4d0b6d0b5d180-150x150Translation of publicist’s post (RUS)

With the coming of independence, the term “middle class” has become the norm for some Kazakhs and the goal for others. Mojazarplata.kz has determined who in Kazakhstan considers themselves to be middle class and how much they earn.

The Middle Class as a Primary Indicator of Development

In countries that are considered developed, the middle class is the largest section of the population. Its primary functions include innovation, qualified cadres and maintaining social stability.

In the most general sense, the middle class can be defined by the following criteria:

• education level
• wage level
• consumption standards
• possession of material or intellectual property
• capacity for skilled labor

The market dictates its own rules, which is why a specific wage level can be seen as a sufficient indicator of being middle class. It means that with enough money, one gains the opportunity to join; however, to become a full-fledged member, one needs to follow the other criteria as well.

The Middle Class in Kazakhstan

Today, the percentage of Kazakhstan’s citizens who can be described as middle class is 35-40%. This includes members of the so-called proto-middle class – a social group right between the middle and lower classes. Under favorable conditions, this group can enter the middle class.

If we consider these social groups separately, the result is as follows:

• the middle class forms 10-15% of the population (before the crisis)
• the proto-middle class forms 20-25% (before the crisis)

Let us consider two levels of material welfare among the middle class: the middle and upper middle. This classification is accepted in many countries, including Russia and the USA.

The Upper Middle Class: professionals (“white collar”) with university education, a post-graduate degree or professional title, who hold well-paying positions and are generally immune to economic downturns and other types of unfavorable economic conditions that harm the statistical middle class (such as shrinking economies).

The Middle Middle Class: The majority of people belonging to this class are white collar workers who hold high ranking positions, but do not have as much autonomy as the upper middle class. Most members of this class require two sources of income to make ends meet and live “from paycheck to paycheck.”

According to research done by Expert Consult (published January 2009), the core of the middle class are families whose annual salary is between $8280 and $9900 (i.e. $230-275 per month for one of three family members). There are about 56,000 families like this in Almaty, consisting primarily of hired workers, such as managers, middle management, leading specialists, well-to-do professionals in various fields, workers earning high wages and cadres.

The top level of the middle class is formed by families (about 45 000 of them) who have a total annual income of $10 000-15 000. A significant portion of this category comes from directors of small and medium-sized firms and their deputies, private businessmen and leading specialists in various professions. Members of this subgroup are highly oriented towards success and seek to elevate their social status.

It turns out that the middle class exists in Kazakhstan, resides primarily in large cities, wears a “white collar,” and drives its own car from home to work.

The Middle Class and Political Stability

The middle class in Kazakhstan wants stability and opportunities to make money, which it is promised by the government. That is, by reforming the country’s economy, the government has only succeeded in creating a sense of political stability among the middle class. But, considering the uncertainty of the political situation, after the current president retires, stability might weaken.

Economic stagnation will take its toll on the middle class in the country, and those to suffer considerably are groups in society that supported the existing socioeconomic and political system. Many Kazakhs will lose their social status by returning to the proto-middle class or even the lower class.

This process will lead to the growth of marginal elements in society, motivated by oppositional sentiment. A class of the “new poor” will arise, becoming more active than their “old” counterparts.

Do you know your real value on the labor market? Fill out an anonymous Job Survey and soon Kazakhstan will have a Wage Calculator.

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