Page 5 - bne_newspaper_March_22_2019

Top Stories
March 22, 2019 www.intellinews.com I Page 5
Kazakh sovereign bonds and shares of London- listed top Kazakh lender fall after Nazarbayev resignation news
up on power and his official resignation poses no major political risks, considering the levers of power have been rigged in his favour in prepara- tion for him to step down.
The 78-year-old has ruled over Kazakhstan as president for 30 years, and since before the col- lapse of the Soviet Union. Growing rumours about him preparing to officially step down while main- taining his grip on power have circulated in the country for several months.
In 2010, the parliament voted unanimously to declare him “Leader of the Nation” for life. That move granted him powers to manage the country after his resignation, while last year he was also made the head of Kazakhstan’s Security Council for life. In February, Kazakhstan watchers sat up when Nazarbayev requested that the country's Constitutional Council clarify what powers he would hold on leaving office. He asked for an “official interpretation of paragraph 3 article 42 of the Constitution”.
Surprise televised address
In a surprise televised public address on March 19, Nazarbayev said: "I have decided to terminate my powers as president. This year marks 30 years since I entered the highest position. The people gave me the opportunity to be the first president of the independent Kazakhstan."
He added that the decision was “not easy” but he wanted to assist “a new generation of leaders”. In line with the Constitution, the powers of Naz- arbayev for the remainder of his term will be
transferred to the chairman of the Senate of Parliament, Kasym-Zhomart Tokayev, seen as a loyal presidential lieutenant.
Nazarbayev, who will turn 79 in July, took the helm two years before Kazakhstan gained its in- dependence in 1991. In the last election he faced, in 2015, the official result gave him 98% of the vote, although many observers take issue with whether or not elections in Central Asia’s eco- nomically dominant nation offer a real choice or are free and fair.
Death of Karimov
The succession question centred on “Leader of the Nation” Nazarbayev gained sharper focus after the death in September 2016 of Uzbek auto- crat Islam Karimov, who passed away at the age of 78. He, like Nazarbayev, came to power in his country in 1989.
Political risks stemming from the lack of a clear plan for a successor to Nazarbayev have con- strained S&P Global Ratings and Fitch Ratings’ debt ratings on Kazakhstan. It did not help that rumours of Nazarbayev’s deteriorating health have been cropping up in the news nearly every year for several years now.
Though he is officially stepping down, Nazarbayev’s status as “Leader of the Nation” and his control over the national security council will ensure that all the real levers of power will ultimately remain in his hands behind the scenes.
In March 2017, the parliament approved amend- ments to the country’s constitution to reduce the presidential powers in favour of lawmakers and the cabinet. Some believe the amendments will function to help Nazarbayev's chosen successor obtain power.
The question of Nazarbayev’s potential succes- sor still remains unanswered. The president has effectively ruled out his elder daughter, Dariga Nazarbayeva, as a potential successor, having said that his children will not succeed him.