ASTANA CALLING
Ministry of Foreign Affairs Republic of Kazakhstan
Central Communications Service for the President of Kazakhstan
A WEEKLY ONLINE PUBLICATION / WWW.MFA.GOV.KZ ISSUE NO 313 / FRIDAY, JULY 19 2013
PM Visits Eastern Kazakhstan Region Interregional cooperation “essential”
Kazakhstan to Bid for 2022 Winter Olympics Almaty aims to be host city
Government Examines Special Economic Zones
Finnish Ambassador Bows Out on a High
Full potential not yet reached
Long-term projects in Kazakhstan
News from the Government in Brief
Also in the News
The Governors of Almaty Region, Eastern Kazakhstan Region. Karaganda Region and Pavlodar Region at the July 12 Inter-Regional Forum for Integration
PM Visits Eastern Kazakhstan Region On July 12, Prime Minister Serik Akhmetov was in the eastern city of Ust-Kamenogorsk to chair an event entitled “Forum for Inter-Regional Integration: Strong Regions Mean a Strong Kazakhstan”. The focus was on the three easternmost regions of the country – Almaty Region, Eastern Kazakhstan Region and Pavlodar Region – and the region which borders on all three of them, Karaganda Region. Mr Akhmetov stressed the importance of the Forum and its long-term aims within the context of the program for Kazakhstan’s development, “Strategy Kazakhstan-2050”. “Questions of regional integration,” the Prime Minister said, “are at the forefront of conditions for the Customs Union [of Kazakhstan, Russia and Belarus] and Kazakhstan’s imminent entry into the World Trade Organization.” The importance of regional collaboration was shown by the decision taken by President Nazarbayev at the start of this year to form the Ministry for Regional Development (MRD). The MRD was established with the aim of helping to ensure the balanced development and competitiveness of each region of the country. This week’s Forum brought together both the central and local political leadership; the heads of major industrial and agricultural enterprises as well as representatives from the private sector and other experts. If those present were in any doubt as to the importance their regions play in the national economy of Kazakhstan, Mr Akhmetov spelt it out - between them, the four regions make up 40% of the territory of Kazakhstan; are home to one third of the country’s population and account for 19% of national GDP. The Prime Minister gave some graphic examples of how the eastern region is performing business-wise. Overall, the picture is favorable. On an index of production growth of processing industries where the figure of 100 is the starting point, he compared the area at the end of 2012 with how things had stood in 2008, with 2008 as the baseline. At the end of 2012, the figure for Kazakhstan as a whole stood at 119.9, a rise of almost 20% and an encouraging sign. The Almaty and Pavlodar Regions were slightly above this, at 124.1 and 126.6. The Eastern Kazakhstan Region has been the single most successful region in the country in this period, registering 164.4, an increase of almost two-thirds in the four years. That growth in the output of the processing industries has continued in the first five months of 2013, with a further growth figure of 5.6%. Growth in the Almaty Region has also risen this year by 5.7%.
“This Forum has been the launch pad for active mutual cooperation between the regions, and has produced new possibilities for making mutually-beneficial agreements.” Prime Minister Serik Akhmetov ASTANA CALLING / ISSUE 313 / 2
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But in an indication of the imbalance between the regions which the MRD was formed to combat, Karaganda Region (the largest single territory in Kazakhstan) saw a drop in the growth of output from the processing industries between 2008 and 2012 to 93.3, and has seen a further fall this year of 3.8%. Pavlodar Region has also seen a drop this year of 2.4%. The Prime Minister said that he hoped that the holding of the Forum and the revelation of such figures would indicate the need for inter-regional cooperation to all those present. Individual regions should not be competing against each other but working together for the well-being and prosperity of the country as a whole. He added that this Forum, “has begun a new level of relations between the regions, a search for practical solutions which will raise the competitiveness of each region.� As a result of the Forum, the akims [mayors] of each region signed a total of 40 agreements between their regions to the value of KZT 20bn. And the MRD has been tasked to take the Forum to the next stage, and will organize a similar Forum for the whole country before the end of 2013.
The Eastern Regions of Kazakhstan Almaty Region: Located in the south east of Kazakhstan bordering Kyrgyzstan and China. Its capital is the former capital of the country (and the largest city), Almaty. It covers an area of 224,000 sq. km and has a population of around 1.6m with more than 1m living in Almaty itself. A popular area for tourists, with both lakes and mountains, it is a centre for downhill skiing in the winter. East Kazakhstan Region: The easternmost region of Kazakhstan, bordering on Russia and China, with Almaty Region to the south and Pavlodar Region to the north. The territory covers 283,300 sq. km, with a population of 1.4m. The capital is Ust-Kamenogorsk. The geography varies from the Altai Mountains in the east to the start of the Kazakh steppe in the west. The former nuclear test site of Semipalatinsk is in the East Kazakhstan Region. Karaganda Region: Situated in the heart of Kazakhstan, at 428,000 sq.km Karaganda is the largest region of the country. But it has a relatively small population of less than 1.4m. The inhabited areas have tended to be highly industrialized, especially as the region was rich in coal. It was infamous in Soviet times as a center for many forced labor camps. Pavlodar Region: Covers a territory of 124,800 sq.km in the north east of the country, externally shares a border with Russia. The capital, Pavlodar, accounts for a little under half of the population of 800,000. Ethnically, Pavlodar Region is very diverse, with only around half of the population Kazakhs.
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Albert Rau, Deputy Minister for Industry and New Technologies, briefs the government on Special Economic Zones
Government Examines Special Economic Zones At this week’s regular government meeting, the Deputy Minister for Industry and New Technologies, Albert Rau, highlighted some of the problems facing Kazakhstan’s Special Economic Zones (SEZs). Despite overall investment of over KZT 400bn into the SEZ, most of them are still not working to their full potential. SEZs were first created in Kazakhstan in 1996, by a decree of President Nazarbayev. A special economic zone was described as a territory with clearly defined administrative boundaries and its own legal status. Its purpose was to attract foreign capital and progressive foreign technology and managerial experience in order to accelerate social and economic development. The specific function of the SEZ will depend on where it is located. For example, the SEZ, “Astana: the New City” was created specifically to attract new business to the left bank of the Ishim River, thus developing the area swiftly. The “Ontustik” SEZ was set up in the south of Kazakhstan to develop the textile industry in this cotton-growing area. Whereas the “Information Technology Park” SEZ in Almaty aims to develop the technology and IT industry in Kazakhstan. As Mr Rau explained during the government meeting, since the SEZs were set up KZT 97bn has been spent on the creation of their infrastructure by the government with KZT 308bn invested by private investors. The SEZs have brought in some KZT 28bn in taxes; less than one third of the money put into them from the state budget. They have produced goods and products totalling KZT 270bn. Added to this financial investment, the Deputy Minister stressed that other measures had been put in place to aid the effective development of each SEZ. These include improving the level of professional management; attracting high-tech, quality projects to the zones and providing the necessary infrastructure for each one. Nevertheless, the initial returns from the SEZs have not been as positive as first expected. Prime Minister, Serik Akhmetov, noted that global competition to attract investors and companies to special economic zones is high, and this means that, “the management and strategy for developing the SEZs” needs to be seriously re-thought. Mr Rau presented one example of a readjustment over the designation of an SEZ. The “Aktau Sea Port” SEZ on the Caspian Sea had been designed as a general port zone. In practice, it has been used almost exclusively as a point for exporting oil to other states on the Caspian. “Despite some positive results,” Mr Rau explained, “we consider that the SEZ is not being used to its full potential. The main aim of the SEZ should be for the maximum use of the oil and gas sector.” He went on to say that the aims of the SEZ would have to be redefined, the name “Sea Port” would be abandoned and the whole SEZ will be reoriented to serve the oil and gas sector. In his conclusion, the Prime Minister said that it was important to be more specific in choosing projects for the SEZs, concentrating especially on high-tech and innovation projects. He instructed the Ministry for Industry and New Technologies to work with the relevant state bodies and local authorities to continue to encourage investment into the SEZs.
“Analysis shows that the Special Economic Zones can be divided into three groups. The first are exemplary, with professional management… The second group includes those that have shown some results but, for various reasons, have not fulfilled their potential… The third group, in the opinion of the Ministry, has been weak at encouraging investment and are way below their potential.” Albert Rau, Deputy Minister for Industry and New Technologies ASTANA CALLING / ISSUE 313 / 4
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Kazakhstan hopes to build on the success of the 2011 Asian Winter Games to host the 2022 Winter Olympic Games
Kazakhstan to Bid for 2022 Winter Olympics President Nazarbayev has approved Almaty’s candidature to host the Winter Olympic Games in 2022. The official bid has to be lodged with the International Olympic Committee (IOC) by November 14 this year, and the vote will take place at the IOC meeting in Kuala Lumpur in June 2015. Announcing the bid at a press conference in Almaty, the Vice-President of the National Olympic Committee, Pavel Novikov, said: “Kazakhstan held the Asian Winter Olympics in 2011; we’re hosting a number of major international competitions; and in 2017 we’re hosting the World Winter Student Games. The logical conclusion to this cycle is the Winter Olympics. We have a lot to do, including building the necessary sporting arenas. But we can do that.” Mr Novikov’s confidence is based on a solid foundation, since some of the facilities will have to be constructed for the Student Games in 2017. As for the rest, Mr Novikov went on, “We shall have to construct the bobsleigh run, a covered ice stadium and the Olympic Village. And we still need to decide where these will be situated. We recognise that the Olympic Games are a serious step up from the Asian Games or the Student Games – but we’re ready for that.” When he opened the new “Astana” sports club recently, President Nazarbayev made it clear that his vision for the future Kazakhstan embraces the sporting world, too: “We have created sports clubs which can uphold the honor of our country at the highest levels of competition. We have produced a galaxy of brilliant sportsmen and women who have brought glory to Kazakhstan by their victories. But we do not intend to stop there. We need to bring together our resources and move up to the highest level of sports management. This will be the springboard by which we will conquer new heights. Our sporting champions, like the other achievements of our country, like the new capital of our Motherland: all this goes to make up the national brand of Kazakhstan. Through sporting successes our country becomes better known; and we show the world our best qualities. The world should know Kazakhstan as a nation of winners.” Kazakhstan’s sporting stars were quick to endorse the Olympic bid. Olga Shishigina, who won Olympic Gold in the hurdles at the Sydney Olympic Games in 2000, sees this as an opportunity not only to raise the level of sport in Kazakhstan on the international level and to create new sports arenas for the country’s athletes, but as a huge boost for tourism to Kazakhstan, too. Valery Tikhonenko, famous as a star of the Soviet basketball team, described the bid for the 2022 Winter Olympics as, “an example of the forward thinking of the President”. He hoped that the IOC would be convinced that Almaty was the right place to hold the Games. And the wrestler, Islam Bayramukov, spoke of the great boost holding the games in Almaty would provide for the city’s infrastructure. The race for the 2022 Winter Olympics will begin on November 14.
“After we hold the World Student games in Almaty in 2017 we want to try for the Winter Olympics in the southern capital. All of the infrastructure will be in place and we hope we will receive support for this idea.” President Nazarbayev
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Finland’s outgoing Ambassador to Kazakhstan, Mikko Kinnunen
Finnish Ambassador Bows Out on a High Finland’s Ambassador to Kazakhstan, Mikko Kinnunen, is leaving his diplomatic posting after four years in which he opened his country’s first embassy in Astana. But his legacy is much more than just the establishment of the embassy. Business and cultural relations between Kazakhstan and Finland have never been better and look set to continue on an upward curve. Shortly before his departure from Astana, Ambassador Kinnunen gave an interview to The Astana Times newspaper, in which he spoke enthusiastically about his time in office and about the developments he has seen in Kazakhstan-Finnish relations. This was epitomized in recent months by three ministerial visits taking place in March this year, followed by the first visit to Kazakhstan by the Finnish President, Sauli Niinistö, in April. Many of Kazakhstan’s business relationships with other countries have been established as a result of the oil and gas sector. This has not been the case with Finland. Finland is one of the leaders in environmental and ecological issues, which ties in very well with Kazakhstan’s plans for creating the green economy. This continues into the sphere of education. Programs are being set up to provide scholarships for PhD students from Kazakhstan to study environmental issues in Finland. There is also cooperation between the two countries on healthcare issues. Finland has set up a program in Kazakhstan to improve the training of nurses. The two sides are also working on projects to create modern laboratories with quality control procedures and are cooperating in the area of preventative medicine. Mr Kinnunen stressed in his interview with The Astana Times that his country’s projects in Kazakhstan are long-term. “There are no quick gains or quick wins. Education, innovation, green technologies – they are not products. In a way, it’s easy to sell a cup or a telephone or a piece of a car, but if you sell systems that also have cultural aspects to them, that’s not such a straightforward, easy thing. And we don’t have any quick gains in mind here – we’re not in the oil business in Kazakhstan.” Politically, too, Mr Kinnunen sees ways in which Finland can share its experience with Kazakhstan. Just as Finland has learnt about regional cooperation, both with its Scandinavian neighbors and with Russia and the three former Soviet Baltic States, so Kazakhstan is crucial to stability and progress in the Central Asian region. This is a two-way process. As Mr Kinnunen said, “When Kazakhstan was chairing the OSCE (the Organization for Security and Cooperation in Europe), during the historic summit here [in Astana] in December 2010, I think we learned a lot from each other, the OSCE countries, through that chairmanship, when we were speaking of issues like democracy and media rights. These things are processes, and it’s very good that they were very open and put on the table during that chairmanship.” “If you read Strategy Kazakhstan 2050, you find that the aim is to strengthen democracy and increase parliamentarianism,” Mr Kinnunen noted. He predicts more parliamentary cooperation in the future if Kazakhstan follows the aims in that strategy. Mr Kinnunen is being replaced by Ilkka Räisänen. Ambassador Räisänen is currently head of Finland’s diplomatic Minsk Liaison Office and previously worked as a counsellor at Finland’s embassy in Washington, DC.
“Now, we are really widening into new and quite challenging and interesting areas…We are both very sparsely populated (countries), and this is another factor in healthcare, in education: how do you provide equal services to every citizen in every different part of the country? This is one thing that we have in common and I think we are facing similar issues,” Mikko Kinnunen, outgoing Finnish Ambassador to Kazakhstan ASTANA CALLING / ISSUE 313 / 6
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News from the Government in Brief Meeting of Shanghai Cooperation Organization Foreign Ministers from five of the six members of the Shanghai Cooperation Organization (SCO), and the Deputy Foreign Minister of Kazakhstan, Kairat Sarybay, met in Cholpon-Ata in Kyrgyzstan, July 12-13. The Foreign Minister of Kyrgyzstan, Erlan Abdildayev, chaired the meeting. The foreign ministers were preparing the ground for the next annual meeting of the SCO, which will be held in the Kyrgyz capital, Bishkek, in September. The delegates noted that a great deal had been achieved in their mutual relations since the 2012 meeting in Beijing. There is now greater cooperation in the area of security, as well as politically, in trade relations and cultural affairs. Strong emphasis was put at this meeting on the discussion of the international situation, notably in the Middle East and in North Africa, and the ministers called for peace and stability in the region, and adherence to the principles of international law. High on the agenda, too, was the situation in Afghanistan. The ministers acknowledged that what happens there will have an effect on the peace and stability of the whole region, and they underlined the central role that the United Nations must play in trying to bring about a peaceful solution for the Afghan people. The SCO countries themselves can also contribute much to the stability of the region, particularly by encouraging closer cooperation in trade, investment, transport and telecommunication links, agriculture and innovation. The ministers called also for closer links between the SCO countries in health care, tourism and dealing with natural disasters. (mfa.gov.kz)
Foreign investment reaches record level Foreign investment into Kazakhstan is on the increase, the Deputy Minister for Industry and New Technologies, Albert Rau, reported to the government this week. A total of USD 171bn has been invested into Kazakhstan since independence and 48% of that – USD 81.6bn – has come in in the last four years. 2012 saw a record amount of investment for one year of USD 22.5bn, a rise of 7% on the previous year. It is not only the amount of investment which has changed. The structure of investment has changed, too. In recent years, 40% of investment has been into the manufacturing sector, whereas previously far more went into the oil and gas industry. As a result, there is now a list of 20 priority investor countries, and 136 priority projects have been identified. (ortcom.kz)
League tables published for Kazakhstan’s Colleges The Independent Kazakhstan Agency for Quality in Education has published league tables showing the best higher educational establishments in the country in different categories, based on an analysis of the latest academic results. The best multi-profile college was the Lev Gumilev Eurasian National University; the best technical college was the KazakhstanBritish Technical University; the best college for humanities and economics, the KIMEP University in Almaty; best for the study of medicine is the “Astana” Medical University; for teacher training, the Abay Kazakh National Pedagogical University; and the best arts college was the Kazakh National Arts University (incorporating the Kazakh National Music Academy). (ortcom.kz)
Minister of Defense meets Chinese Ambassador The Minister of Defense of Kazakhstan, Adilbek Dzhaksybekov, held a meeting this week with the Chinese ambassador to Kazakhstan, Zhou Li. The two men discussed the improving military cooperation between Kazakhstan and China, and also the forthcoming first visit to Kazakhstan by the Deputy Chairman of the Central Military Council of the People’s Republic of China, Fan Changlong. (government.kz)
Three Kazakhstan air companies have licences revoked Three air companies from Kazakhstan – D.E.T.A Air, MEGA and KazAir West – have had their licences to fly revoked by the Ministry of Transport and Communications. The Ministry said that the three companies had failed to meet the standards required to hold the licences. The Ministry is currently carrying out a thorough examination of all air companies and aircraft. A further five airlines have until August 1 to satisfy the Ministry that they meet the necessary standards, or they, too, will have their licences revoked. So far 32 airlines, 29 companies providing technical support and 73 aircraft have been checked. The re-certification process should be completed by the end of August. (primeminister.kz)
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Also in The News… • Kazakhstan has the highest per capita income in Central Asia The World Bank’s ranking of countries by the size of their gross domestic product (GDP) puts Kazakhstan ahead of all the countries of Central Asia. Average earnings in Kazakhstan, according to the World Bank, are USD 9,730. This compares with Turkmenistan at USD 5,550; Uzbekistan (USD 1,650); Kyrgyzstan (USD 990); and Tajikistan (USD 860). Other estimates differ as to the precise sums involved, but Kazakhstan is clearly ahead of the rest of the Central Asian countries. (bnews.kz) • Kazakhstan, Russia and Ukraine discuss space cooperation The Heads of the space agencies of Kazakhstan, Russia and Ukraine signed a protocol on creating the Baiterek space rocket complex at the Baikonur Cosmodrome in Kazakhstan. The protocol also confirmed joint operation of the Zenith space rocket from the complex. The three agencies agreed to work out the conditions and mechanisms of participation and cooperation of all interested companies and organizations in the Zenith space rocket complex within the Baiterek project at all stages, from the production of the Zenith carrier rocket through to the actual launch. (bnews.kz) • Samruk-Kazyna to restructure its companies The Samruk-Kazyna business holding is to carry out a thorough restructuring of all of its component companies. This includes some of the largest companies in Kazakhstan, including KazMunaiGas; Kazatomprom; Kazakhstan Temir Zholy; and Samruk-Energo. The restructuring, which was agreed in principle by the Board of Directors at its meeting on April 24 this year, will begin this year and should be completed by 2015. (ortcom.kz) • Child mortality rates fall by 65% in Kazakhstan according to UN According to preliminary estimates from the UN Inter-Agency Group, the mortality rate of children under five years of age decreased by 65% in Kazakhstan between 1990 and 2012. In 1990 there were 54.1 deaths per 1000 live births but by 2012 this figure had fallen to 18.7 deaths per 1000 live births. The figures, confirmed by the press service of the Ministry of Health referring to the United Nations Children’s Fund (UNICEF), show that Kazakhstan is well on its way to achieving the Millennium Development Goals aimed at reducing child mortality by two-thirds over the period 1990-2015. (bnews.kz) • Kazakhstan’s Paralympic athletics team off to IPC Athletics World Championships The national Paralympic athletic team of Kazakhstan has arrived in Lyon, France, ready to compete at the IPC Athletics World Championships that start on July 19. According to the National Paralympic Committee of the Republic of Kazakhstan, eight athletes from Kazakhstan have qualified to participate at the competition. The team consists of Aynur Bayduldayeva (100 meters, 200 meters), Aynur Taizhanova (long jump), Amanat Kalkan (long jump), Sergei Kharlamov (100 meters, long jump), Ravil Mansurbayev (shot put, discus, javelin), Daurenbay Narybekov (javelin), Islam Salimov (400 meters, long jump) and Paul Sydorchuk (shot put, javelin). (bnews.kz)
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• Third Gold for Kazakhstan at Asian Weightlifting Championships Alexandra Aborneva won the third gold medal for the Kazakhstan national team at the Asian Weightlifting Championship in Astana. Ms Aborneva, the current champion of Kazakhstan, won the competition in the +75kg women’s weight class. She had the best result in the snatch by lifting 110 kilograms. The first two gold medals were won by Anna Nurmakhambetova, who won the competition in the -75kg women’s weight class; and Alexandr Zaichikov, who won gold in the men’s -94kg weight class. (sport.gov.kz) • More gold for Kazakhstan at World Student Games On July 17 the Kazakhstan Women’s Rifle-Shooting Team won the country’s third gold medal at the World Student Games in Kazan, the capital of Tatarstan in the Russian Federation. As the Games approached their finale, Kazakhstan was in 18th place in the medal table, with three gold, 11 silver and 16 bronze medals. (ortcom.kz) • Bronze-age find in Akmola Region A rare treasure trove believed to date from the fourth century BC has been unearthed during excavations in the Sandyktau District of Akmola Region. Archaeologists have uncovered two graves during the dig. The first contained the remains of a woman’s skeleton with some jewellery. In the second grave, gold earrings, a ring and a bronze necklace encrusted with gold were discovered, amongst other items. (ortcom.kz)
Things to Watch • Meeting of the EU-Kazakhstan Cooperation Council The 13th Meeting of the EU-Kazakhstan Cooperation Council will take place in Brussels on July 24, 2013. Deputy Prime Minister Yerbol Orynbayev will lead Kazakhstan’s delegation. The Lithuanian Minister of Foreign Affairs, Linas Linkevičius, will head the EU’s delegation. The two sides will discuss bilateral and multilateral cooperation as well as regional and international issues. • President’s Tennis Cup to be held in Astana The President of Kazakhstan’s Tennis Cup tournament, with men’s and women’s competitions, is to take place in Astana from July 22-28. Total prize money will be USD 225,000, with USD 18,000 going to the winner.
ASTANA CALLING A WEEKLY ONLINE PUBLICATION / WWW.MFA.GOV.KZ Please send comments and questions to pressa@mfa.kz
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