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Gold/Mining/Energy : Steppe Gold (SPE:V) -- Ignore unavailable to you. Want to Upgrade?

To: John Stokes who wrote (662)	2/20/1998 3:54:00 PM
From: Robert Dydo	Read Replies (1) \| Respond to of 1248

The application of capitalism in the society which was govern by the doctrine of equal distribution of wealth to every member of this society is a very drastic change which in its outcome crates more poverty on massive scale than appreciation of progress run on demand and supply. The poor get poorer and rich get richer in most incredible ways and pace not comparable to established economies where the democratic system protects the individual from abuse of the wealthy. In the country of vast resources and great possibilities not only individuals with means but concerns and companies will engage themselves in exploitation of local work force and local natural resources without paying attention to lower class suffering in the process. Kazakhstan's government may than differ from aristocratic government's of countries like Indonesia or military regimes of South America were very selective group controls the income associated with foreign investment and operations. Democratic government's role is to control and limit the abusers, quick buck makers and look for those who can actually better not worsen the conditions. After all company which can't supply gas to your home or leave whole regions of unemployed people because they can't cope with conditions or have second thoughts is just bad business. This is not private business we are talking about or something like SPE is building, from the scratch, government is looking into management contracts of government factories and the state run country's gas supplies. I am not sure if I am excusing anyone for stealing, you can't steal what is yours, John. Maybe the oil business is so good in there because the players are capable and they do better than state companies did. Kazakh's want better life and fast and if you can do it somebody else will( we know all the reasons). Going backwards is what KGFC and CGZ did and Tractebel is not making any progress as we see. Regards Robert

To: John Stokes who wrote (662)	2/20/1998 5:44:00 PM
From: John Menzies	Read Replies (2) \| Respond to of 1248

You saw the S&P report. The governement is sticking to its plan and will no doubt continue to do so. When you have had hyper inflation as we have seen in the last couple of years there is only on solution and one outcome. The governement has to tighten its belt stop spending and reduce money supply which results in a lack of demand for consumables and a reduction in the pace of increase in prices - pretty simple really. The outcome of course is economic pressure on those who can least afford it and the pain can be very real - particulalry where the winters are this hard. From one extreme to the other - inflation is casued and controlled by governement fiscal policy. It is only 6 years since the declaration of the republic and we have seen the country go through a period of hyper-inflation and negative growth we now see a couple of percent growth and inflation coming down to 10-20 percent. We have seen the credit rating of the countriy's securities go from no rating to B+ and we are seeing dramatic change all in the one direction - all towards privatisation of the entire economy. This really dramatic step is causing some consternation as one would expect - the governments determination to stick to the program is more than commendable. The rewards of involvement in Kakakstan are very tangible - it just takes understanding and patience and not reaction to the party in opposition. There must be some pretty juicy comments from opposition parties here in Canada from time to time - anyone got any?