(Reuters) – On Friday, security forces claimed to have reclaimed Kazakh capital city’s streets. This was just a day after Russian paratroopers arrived in Kazakhstan to quell an uprising that saw dozens killed and many public buildings burned.

After the most violent violence in which oil-rich Kazakhstan (long regarded as an oasis of stability and security in volatile Central Asia) has seen in its three decades of independence, police patrolled Almaty’s debris-strewn streets.

Below is a brief overview of Kazakhstan and its economy.

WHERE IS KAZAKHSTAN & WHY IS IT SO IMPORTANT?

Kazakhstan is located in Central Asia between Russia and China, and shares borders with three ex-Soviet republics. It has the richest hydrocarbon and metal reserves. Since 1991, Kazakhstan has received hundreds of billions in foreign investments.

It is strategically important because it connects the fast-growing and large markets in China and South Asia to those of Russia and Europe, via rail, road and port at the Caspian sea. The buckle of China’s massive ‘Belt and Road’ trade initiative, it has been described as such.

Kazakhstan is the world’s largest producer of uranium. This week’s turmoil sparked an 8 percent increase in the price for the fuel of nuclear power stations. The world’s 9th biggest oil exporter and 10th largest coal producer, Kazakhstan produced 85.7 millions tonnes in 2021.

The United States is the second-largest bitcoin miner in the world. According to BTC.com, the “hashrate”, which is the amount of computing power used by machines connected to its network, dropped more than 10% Wednesday following the shutdown of Kazakhstan’s internet.

WHY IS PEOPLE SO ANGRY

Because of their low price, the protests against state price caps at New Year’s Day in western oil-rich regions began the uprising.

This reform was intended to ease oil shortages but quickly went awry as the prices nearly doubled. Protests proliferated, drawing attention to endemic corruption in the state, income inequality, and economic hardships, all of which have been made worse by the coronavirus epidemic.

Although Kazakhstan is the wealthiest of Central Asian republics by per capita income, the majority of Kazakhstan’s population – which ranks as the ninth-largest country in the world in territory – lives in remote communities that have poor access to the public services.

The country’s rich natural resources make a few people extremely wealthy. However, ordinary Kazakhs still feel marginalized. A total of 1 million Kazakhs, out of 19 million in population, live below the poverty line.

The annual inflation rate is close to 9%. This level of inflation has been at its highest for more than five decades. It has prompted the central bank’s decision to raise interest rates to 9.75%.

Who is in Charge?

Kassym Jomart Tokayev (68), a career diplomat, was elected President in 2019. He promised to keep the pro-business policies of Nursultan Nazabayev’s predecessor. Nazarbayev is a Soviet Politburo ex-member who led Kazakhstan nearly for three decades.

Tokayev, an 81-year old former president who was once chief of the Security Council, has fired Tokayev using protests that sometimes hit symbols from the Nazarbayev era like statues.

Since the events, Nazarbayev and his family have not made any public statements or appeared. It is unclear how the revolt will affect the substantial influence they continue to hold in politics and business.

Tokayev also dismissed Samat Abish’s nephew as second in command of the security force. Dariga Nazarbayev is the oldest daughter of a senator and an active lawmaker. She has been suggested as a potential future president.

ECONOMIC PROSPECTS

Kazakhstan’s per capita gross domestic product in 2020 was $9,122, World Bank data show, slightly above that of Turkey and Mexico but below its annual peak of nearly $14,000 in 2013.

Tokayev’s government implemented a stimulant package equal to 6% of the national output in order to assist small- and medium-sized enterprises with weathering the COVID-19 epidemic.

The World Bank predicts economic growth at 3.5% by 2021 and 3.7% next year. In 2023, it will forecast 4.8%. It urged Kazakhstan not to allow large-state owned enterprises to dominate the economy and encourage competition.

Human Rights and Freedoms

While the authoritarian system of Kazakhstan has been long criticized by Western countries as well as rights groups, it is also known for its intolerant of dissent and curbs on media freedoms. However, Kazakhstan has been seen as more volatile and less restrictive than some of its ex-Soviet neighbors.

Amnesty International stated that this week’s demonstrations resulted from the authorities’ “widespread suppression of basic human rights”. It called for all arbitrarily held persons to be released and an investigation into past state abuses.

Marie Struthers (Amnesty Director for Eastern Europe & Central Asia), stated that the government had persecuted peaceful protesters in Kazakhstan for years.