Labor Conflict in Kazakhstan: Sustainability and Public Policy

This report delves into the issue of labor conflicts in Kazakhstan, particularly focusing on the tension between domestic and foreign workers in the extractive industry. It analyzes the root causes of these conflicts, including wage disparities, unfair labor practices, and the impact on the country's economy. The report examines the role of public policy in addressing these issues, emphasizing the need for stringent labor laws, object-oriented approaches to resolve disagreements, and policies that ensure fair treatment and equal opportunities for both local and international employees. Furthermore, the report highlights the importance of government initiatives to mitigate social tensions and promote social partnership, ultimately aiming to enhance the country's per capita income and overall economic output. The report also discusses the government's plans to develop a center of social partnership and modify labor laws to reduce wage disparities.

Running head: SUSTAINABILITY AND PUBLIC POLICY IN ECONOMICS
Sustainability and Public Policy in Economics
Name of the Student
Name of the University
Author Note

1SUSTAINABILITY AND PUBLIC POLICY IN ECONOMICS
Policy issue
The evolving growth of social contradiction in terms of labor conflict is the topic of the
interest. As per the study, labor conflicts in Tengiz, and Atyray is the result of the prolonged
opposition from the domestic workers against the foreign labors. The domestic labors express
their agitation against the unfair practice of the labor laws in favor of foreign labors. In
retaliation, the domestic workers are reported to cause physical attacks on the overseas
employees. According to the researchers, the economy of Kazakhstan will receive detrimental
impacts if both the state and national government do not take the required actions (Ayupova,
Kussainov & Nagan, 2018). The labor strike undoubtedly hampers the production of the firm.
This apparently incurs huge production cost for the production firms as the it makes delay in the
completion of the project work. Meanwhile, growing agitation raises questions on the security of
the overseas employees. Several numbers of employees come over Kazakhstan to join the
construction work. As the availability of the skilled labor force is much lower than the expected
level, the concerned economy needs to be dependent on the foreign employees. As per the
statistics, the marginal productivity of the foreign labors is relatively high as compared to the
local employees (Kulsariyeva & Nassimova, 2014). This implies that firms gain better outcome
if they hire overseas employees. This disparity in productivity results in the disproportionate
changes in the wage rate for both the local and foreign employees. Local workers are reported to
earn much lower wage than the workers from abroad.
In order to control the labor conflict, the government should implement stringent laws
and regulations in the labor market. The disagreement between the international and national
employees needs to be resolved by the means of object-oriented approach (Fursova et al., 2017).
The objective of the government policies should have resilient solution towards the workforce.

2SUSTAINABILITY AND PUBLIC POLICY IN ECONOMICS
Agitation in the workforce is the sensitive issues. Hence, the policymakers must be aware of the
probable consequences of the implementation of the governmental rules and regulations in the
labor market. The policies should be developed in such a way where interest of the domestic
employees will not be compromised for the interest of the foreign labors. This will encourage the
domestic workers towards the workforce. According to the economists, the engagement of more
domestic labors in the workforce enhances the country’s per capita income. This further boosts
the aggregate output level of the economy. The government of Kazakhstan has been planning to
develop a center of social partnership to overhaul the labor attitudes. In addition to that, it will
attain to mitigate the social tension related to the workforce disagreement. The modified labor
laws should be aimed at lessening the wage disparity between the national and international
employees (Nurgaliyeva, Kaskeyeva & Yessirkepova, 2014). This will confirm equal purchasing
power of the labors irrespective of the geographical boundary. Moreover, it should be ensured
that the overseas employees will be able to enjoy work freedom like the local employees. This
will enhance the empowerment of the foreign employees.

3SUSTAINABILITY AND PUBLIC POLICY IN ECONOMICS
Reference list
Ayupova, Z. K., Kussainov, D. U., & Nagan, W. (2018). Role and place of mediation in the legal
tradition of the people of Kazakhstan. Bulletin of the National academy of sciences of the
Republic of Kazakhstan, (6), 74-81.
Fursova, V. V., Shakirova, A. Y., Nikitina, T. N., Spirchagova, T. A., & Syzdykova, M. (2017).
Employment of University Graduates Across the Post-soviet Space: Problems and
Solutions (The Example of Kazakhstan). Journal of History Culture and Art
Research, 6(4), 470-478.
Kulsariyeva, A. T., & Nassimova, G. O. (2014). The role of civil society in preventing conflicts:
Kazakhstan experience. Procedia-Social and Behavioral Sciences, 143, 921-926.
Nurgaliyeva, E., Kaskeyeva, A., & Yessirkepova, M. (2014). Wage regulatory issues in
Kazakhstan. Актуальні проблеми економіки, (11), 260-268.