Thursday, September 29, 2022

Sneaking across the border

 

Russian President Vladimir Putin’s callup September 21 of 300,000 troops to salvage his war has spurred more draft-dodgers to flee the country than fought in Ukraine when the war began in February. And more Russians are fleeing to Kazakhstan than elsewhere—about 100,000. The border between the two countries, the largest continuous border in the world, is 4,739 miles, or roughly one mile for every 21 immigrants. Lots of chances to sneak across the border, especially when friends or kin wait on the other side.

Ties between ethnic Russians in Kazakhstan and the homeland folks remain strong. The Russians dominated Kazakhstan politically and culturally in the Soviet Union and remained the largest ethnic group in the first years of independence, in the early 1990s.  Although the Kazakhs are the largest ethnic group today, because millions of Russians went back home, the Russian minority is the second largest.    

The past week’s immigration of Russians would almost double the number in Kazakhstan.  In April, there were 130,000 Russian citizens there. The number of Russians applying for permanent residence has been rising throughout Putin’s War but until now has been small—1,055 in the first quarter of 2022.  At the rate of 100,000 Russian immigrants per week, Kazakhstan’s population of 19 million would rise by a fourth after a year. 

And the immigrants are welcome. Despite Putin’s assurance that the conscription was confined to military veterans, British intelligence said "the better off and well educated are over-represented amongst those attempting to leave Russia."  It’s a brain drain, and Kazakhstan is only too glad to be on the receiving end. Kazakhstan wants specialists in IT, petroleum engineering, and finance, including bitcoin technology.  And the draft-dodgers’ fluency in Russian is an advantage in Kazakhstan, where that language is the lingua franca in high-tech cities like Almaty.  Kazakhstanis also have compassion for the immigrants. President Kassym-Jomart Tokayev said they were in a hopeless situation. Sort of like Putin.

In March, Putin disavowed a draft because he knew it would outrage Russians. That he has reneged so publicly suggests that he is one shove from the Kremlin exit. 


News update: TengriNews has just reported that a Russian was robbed in Aktau, a city near the northeast Caspian Sea in western Kazakhstan. The apartment crime may elicit more sympathy for the Russian immigrants.  LT, 8:46pm Baltimore time, October 2, 2022. Гражданина России ограбили в центре Актау: 03 октября 2022, 01:11 - новости на Tengrinews.kz

Leon Taylor, Baltimore, tayloralmaty@gmail.com

 

References

 

Mia Jankowicz.  2022. The number of Russians fleeing the country to evade Putin's draft is bigger than the original invasion force, UK intel says.  Business Insider. September 29. businessinsider.com

Radio Free Europe Radio Liberty. 2022.  Number of Russian citizens applying for permanent residence in Kazakhstan rising.  April 13. rferl.org

 

   

 

Tuesday, September 27, 2022

The beauty contest of nations

In which country could you produce the most?  The usual answer converts the income per capita of each nation into US dollars, using the current exchange rate. Countries with high income are assumed to be highly productive.  But exchange rates change for reasons that may have nothing to do with the power to produce. For example, the tenge may weaken because the National Bank of Kazakhstan doesn’t have enough dollars to defend it.  “Purchasing power parity” solves this problem by focusing on real changes in income (that is, physical changes, like the number of cars in a household) rather than nominal changes (monetary changes, like the number of tenge awash in the economy).  You aren’t interested per se in the number of tenge in your wallet, only in the number of mushroom cheeseburgers that the money will buy.

The list below uses purchasing power parity to express 2019 income per capita of 194 nations or regions in 2017 international dollars.  This is a dollar that can buy the same amount (say, a burger) everywhere, so it measures real income. Using the 2017 dollar corrects for inflation—the average increase in prices—which is another nominal change that does not interest us directly.  I’ve calculated income for 2019 because this was the most recent “normal” year. (Hello, Covid-19.) The figures are from the World Development Indicators of the World Bank (worldbank.org).

The list astonishes. The United States is only the tenth most affluent nation. Two regions of China, Macao and Hong Kong, are in the top 11. Japan ranks only 32nd; Israel, 38th.  The income spread is striking. Macao residents are the richest, with an average income of $116,321; Burundi residents are the poorest, at $754. Not every nation is a beauty in the beauty contest of nations.  Leon Taylor, Baltimore, tayloralmaty@gmail.com

 

Country

Income

Rank

Macao SAR, China

116321

1

Qatar

87862

2

Bermuda

82611

3

Luxembourg

76019

4

United Arab Emirates

68591

5

Switzerland

68433

6

Ireland

67253

7

Norway

66504

8

Brunei Darussalam

63964

9

United States

63615

10

Hong Kong SAR, China

62564

11

North America

62061

12

Denmark

58650

13

Kuwait

57350

14

Netherlands

57039

15

Germany

55565

16

Austria

55323

17

Sweden

54234

18

Belgium

52419

19

High income

50189

20

Post-demographic dividend

49456

21

Finland

48852

22

Australia

48536

23

Canada

48455

24

Saudi Arabia

47527

25

Euro area

47268

26

United Kingdom

47252

27

France

46963

28

European Union

44390

29

OECD members

43978

30

Italy

43156

31

Japan

43059

32

Bahrain

42661

33

New Zealand

42387

34

Malta

42009

35

Korea, Rep.

41594

36

Spain

40724

37

Israel

40634

38

Cyprus

39568

39

Czech Republic

38506

40

Slovenia

38440

41

Lithuania

35705

42

Estonia

35539

43

Bahamas, The

34790

44

Portugal

34079

45

Europe & Central Asia

33735

46

Poland

31823

47

Central Europe and the Baltics

31543

48

Hungary

31464

49

Slovak Republic

31113

50

Latvia

31059

51

Romania

29442

52

Panama

29342

53

Croatia

29306

54

Greece

29103

55

Oman

29071

56

Malaysia

27603

57

Russian Federation

26526

58

Mauritius

25501

59

Chile

24010

60

Puerto Rico

23605

61

Kazakhstan

22787

62

Bulgaria

22591

63

Europe & Central Asia (IDA & IBRD countries)

22447

64

Uruguay

21917

65

Montenegro

21773

66

Argentina

21196

67

Europe & Central Asia (excluding high income)

21093

68

Costa Rica

19661

69

Mexico

19097

70

Belarus

18703

71

Maldives

17711

72

Dominican Republic

17573

73

Serbia

17312

74

East Asia & Pacific

17172

75

Late-demographic dividend

16703

76

Upper middle income

16645

77

World

16578

78

Middle East & North Africa

16483

79

North Macedonia

15981

80

China

15934

81

Botswana

15538

82

Latin America & Caribbean

15486

83

Latin America & the Caribbean (IDA & IBRD countries)

15451

84

Latin America & Caribbean (excluding high income)

14875

85

Bosnia and Herzegovina

14850

86

Georgia

14314

87

Brazil

14289

88

Colombia

14251

89

Arab World

14157

90

Lebanon

14067

91

East Asia & Pacific (IDA & IBRD countries)

14053

92

East Asia & Pacific (excluding high income)

13898

93

Armenia

13848

94

Moldova

13708

95

Equatorial Guinea

13553

96

Albania

13482

97

South Africa

13441

98

IBRD only

13077

99

Gabon

13062

100

Guyana

12975

101

Ukraine

12964

102

Sri Lanka

12700

103

Peru

12398

104

Paraguay

12246

105

Kosovo

11577

106

Indonesia

11454

107

Egypt, Arab Rep.

11336

108

Middle income

11324

109

Algeria

11242

110

Mongolia

11104

111

Tunisia

11081

112

Ecuador

11034

113

Iraq

10824

114

Middle East & North Africa (IDA & IBRD countries)

10815

115

Bhutan

10792

116

Middle East & North Africa (excluding high income)

10771

117

IDA & IBRD total

10684

118

Low & middle income

10345

119

Jordan

10073

120

Philippines

9789

121

Early-demographic dividend

9571

122

Namibia

9563

123

Jamaica

9502

124

Bolivia

8543

125

Guatemala

8495

126

El Salvador

8339

127

Eswatini

7805

128

Morocco

7398

129

West Bank and Gaza

7356

130

Lower middle income

7216

131

Cabo Verde

7020

132

Tonga

6903

133

India

6626

134

Belize

6576

135

South Asia

6333

136

South Asia (IDA & IBRD)

6333

137

Angola

6021

138

Bangladesh

5775

139

Ghana

5307

140

Honduras

5290

141

Mauritania

5277

142

Nicaragua

5256

143

Pakistan

5224

144

Djibouti

5099

145

Cote d'Ivoire

5075

146

IDA blend

5050

147

Nigeria

4971

148

Marshall Islands

4956

149

Timor-Leste

4865

150

Kyrgyz Republic

4757

151

Myanmar

4582

152

Fragile and conflict affected situations

4573

153

Kenya

4388

154

Cambodia

4123

155

Africa Western and Central

4005

156

Nepal

3994

157

Sudan

3910

158

IDA total

3820

159

Sub-Saharan Africa

3725

160

Sub-Saharan Africa (IDA & IBRD countries)

3725

161

Sub-Saharan Africa (excluding high income)

3722

162

Cameroon

3662

163

Africa Eastern and Southern

3543

164

Vanuatu

3419

165

Pre-demographic dividend

3378

166

Senegal

3281

167

Benin

3254

168

IDA only

3210

169

Least developed countries: UN classification

3118

170

Haiti

3084

171

Lesotho

3028

172

Comoros

2992

173

Congo, Rep.

2974

174

Solomon Islands

2631

175

Heavily indebted poor countries (HIPC)

2503

176

Guinea

2436

177

Mali

2230

178

Ethiopia

2205

179

Gambia, The

2189

180

Rwanda

2154

181

Togo

2128

182

Uganda

2125

183

Burkina Faso

2055

184

Low income

1986

185

Guinea-Bissau

1980

186

Sierra Leone

1684

187

Madagascar

1567

188

Chad

1555

189

Niger

1279

190

Mozambique

1262

191

Congo, Dem. Rep.

1064

192

Central African Republic

1023

193

Burundi

754

194

 An earlier version appeared on centralasianeconomy.wordpress.com in early August 2022.