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 315 / FRIDAY, AUG 2 2013
KazAgro reports results Kazakhstan remains leading grain exporter
“A People in the Tide of History” Historians take fresh look at past
Boosting Kazakhstan’s Tourism
Here Comes the Sun Trip!
Infrastructure upgrades underway
First solar-powered cyclists reach Astana
News from the Government in Brief
Also in the News
Things to Watch
Dauren Makhazhanov, Deputy Chairman of KazAgro, briefing journalists in Astana on July 29
KazAgro reports results Kazakhstan’s large agricultural Holding Company, KazAgro, has reported its results for the 12-month period from July 2012 to July 2013. One result grabbed the most attention: a drop in grain exports over the period to 7.1m tons, compared to almost 12m tons over the previous 12-month period. However, a detailed explanation showed that this was because of a rationalization of production, rather than any serious underlying problems. Kazakhstan has become one of the world’s leading exporters of grain. But, as the country’s Minister of Agriculture, Asylzhan Mamytbekov, recently pointed out, it is vital to ensure that these exports are carried out in a way that makes economic sense. Kazakhstan is most competitive exporting to its neighbours in Central Asia, the Caucasus, Iran, Afghanistan and China. In this wide region, consumption at present rates is some six to six and a half million tons per annum. So exporting around half of the grain harvest makes sense. The further the grain has to be transported, the more expensive it becomes. Mr Mamytbekov underlined this point. “For the rest of the grain we produce, we will be forced to export to distant countries, mainly via the Black Sea and the Baltic Sea. Transportation of the grain there will add another USD 100 per ton to the cost.” For this reason, Kazakhstan’s agricultural sector has been set the goal of diversifying crop production and reducing the amount of grain to a level that will best suit domestic consumption and the most profitable exports. “This is about seven million tons in the domestic market and approximately seven million in the foreign market. Under these conditions our price will be at the level of the Chicago or Paris stock exchanges. We see revenue fluctuations from USD 100 to USD 300 and these swings negatively affect the market,” the Minister continued. “The KazAgro” National management holding JSC was created in 2006. Its main mission is to stimulate the development of agro-industry, including helping to fulfil the policy of diversification, by effective management of agrarian joint-stock companies. The company elaborates strategic plans for development; mid-term plans for the companies’ financial activity; and investment programs and the budget of the year. KazAgro ensures the maximization of the companies’ financial results and participates in the realization of financial and administrative management of the companies’ projects. The Holding Company helps to attract external and internal investments; and takes corrective measures in case of the companies’ failure to achieve their purposes and efficiency parameters. The KazAgro Holding Company consists of the following companies and affiliated structures: the Food Contract Corporation; KazAgroFinance; the Agrarian Credit Corporation; the Mal Onimderi Corporation; the Foundation for the Financial Support of Agriculture; KazAgroMarketing and KazAgroGarant. In the first half of 2013 alone, KazAgro has provided financing for agricultural projects worth KZT 105bn (around USD 680m). A crucial part of KazAgro’s work is providing financial support for small and medium agricultural businesses. During last year’s harvest and this year’s sowing season, the Holding Company responded to over 3,500 applications for assistance, to the tune of KZT 57bn (around USD 370m). This was nearly 50% more than had been planned. Since the start of the year, KazAgro has given over KZT 17bn (around USD 110m) for new agricultural machinery. More than 2,000 pieces of machinery have been provided, a 12% increase on the same period last year. The 5.7m hectares of land sown this spring with the help of KazAgro was a massive 46% increase on last year.
“We must understand that Central Asia, the Caucasus and the western part of China, as well as Iran and Afghanistan, represent our traditional market, the market where we are the most competitive.” Asylzhan Mamytbekov, Minister of Agriculture ASTANA CALLING / ISSUE 315 / 2
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The eco-friendly Eight Lakes Park Resort near Almaty
Boosting Kazakhstan’s Tourism In summer, thoughts turn to holidays. And recently the government of Kazakhstan has been turning its attention more and more to the possibilities of developing the country’s attractiveness as a destination for tourists. Kazakhstan is already attracting more and more foreign tourists and travelers to the country than ever before. Each year tourists and travelers come to Kazakhstan to visit the country’s wealth of natural landscapes and features. But what has been lacking previously has been the necessary infrastructure. That is now changing. In late June, Prime Minister Serik Akhmetov visited the Akmola region and during his time there, he held a meeting regarding the implementation of a plan for the development of the Schuchye-Burabai tourist area. This area of great natural beauty, with pine forests and crystal clear lakes, is seen by the government as a perfect region for eco-tourism. In the 2012-2013 period alone, KZT 18bn (around USD 118m) has been allocated to developing the infrastructure. Infrastructure improvements include improving transport links to the area. Main roads into the area from Astana are being upgraded and internal flights from other parts of the country have started. Crucially for inhabitants of the capital, on July 5 a luxury train service was launched, running from Astana to the Burabai resort on Fridays, Saturdays and Sundays. Other infrastructure improvements include building a recycling plant in the region, constructing water supplies as well as sewage treatment facilities. At the other end of the country, a modern and eco-friendly resort has been developed near Almaty. The Eight Lakes Park Resort offers visitors the opportunity to fish, play tennis, take bicycle rides, enjoy the surrounding nature and relax at the largest beach club in Central Asia and the Commonwealth of Independent States. The Eight Lakes Park also offers a 450-hectare safari. The idea of creating the resort began in 2007. When an artesian well was discovered in the area, what had once been a desert was turned into an oasis. Artificially-created ravines were filled with water from underground sources, producing eight lakes. A fishing club was born. Summer houses were built along the lakeside. The resort has developed rapidly from there. One broader area which needs to be addressed if tourism is to continue to flourish in Kazakhstan is the cost of flights to the country and of hotels within the country, both of which are considered by many to be expensive. As noted, another is infrastructure, and the aim is to attract foreign investment to help develop this. However, what Kazakhstan does possess is an abundance of tourist attractions: as well as Burabai and the Eight Lakes, there are the Tien Shan mountains; Alakol Lake; the Great Silk Road; the bright lights of the capital Astana, and the historical legacy of the Kazakh people, to name but a few. On March 21, the Minister of Industry and New Technologies, Asset Issekeshev, unveiled the 2020 Kazakhstan Tourism Industry Development Concept. Under this plan, the tourism sector will be developed on an all yearround basis. Over the next seven years, the aim is to create 550,000 new jobs in the tourism industry to serve the ever-increasing numbers of tourists coming to Kazakhstan each year.
“We plan to make Astana the main tourist centre, as well as Almaty. We plan to develop beach tourism in the Mangistau region. We also plan to organize tours to historical monuments in the East Kazakhstan and South Kazakhstan regions. The program will cost USD 10bn.” Asset Issekeshev, Minister of Industry and New Technologies ASTANA CALLING / ISSUE 315 / 3
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A People in the Tide of History Ever since Kazakhstan gained independence after the collapse of the Soviet Union at the end of 1991, the country’s historians have been engaged in a debate about the vital stages in Kazakhstan’s past, how this history is taught and how this relates to the modern era. President Nursultan Nazarbayev has joined the debate, initiating the program, “A People in the Tide of History”, and publishing his own book, “In the Tide of History”. The Kazinform news agency has been discussing this with the eminent Kazakh historian, Dr Omirzak Ozganbayev. In common with other historians, Dr Ozganbayev acknowledges the need for a new, country-wide program to teach the history of Kazakhstan. The 71 years that Kazakhstan spent as a part of the USSR undoubtedly left their mark in several ways, including a number of gaps in the knowledge of the country’s history. Independence has brought the opportunity to open up a wealth of new sources, both at home and abroad, which need careful examination. Until recently, historians in Kazakhstan limited their study of the country to going only as far back as the Turkic period, around the first century AD. But more recent research, including archaeological excavations, has shown that the history of the Kazakh people can be traced back to around 500 BC, the time of the Scythians and Saka. The Scythians were Iranian-speaking equestrian tribes who inhabited large areas of the central Eurasian steppes between the 7th century BC and 4th century AD. Their territories during the Iron Age were known to classical Greek sources as “Scythia”. The word is thought to come from the word for “shoot”, indicating their prowess with the bow and arrow. The Saka are thought to have been a Scythian tribe. One myth which Dr Ozganbayev and his colleagues are now able to refute is that the Kazakh people were simply nomads. It has been discovered that there were many sizeable cities on the territory of modern Kazakhstan, with developed civilizations. In fact, what is becoming clear now is that the nomadic culture existed side-by-side with civilized cities. In the south of the country, in particular, the remains of a number of towns and cities have been discovered. [For more on this, see Astana Calling No.314, Ancient Turkestan Reveals its Secrets] For Kazakhstan’s historians, this is not simply a question of academic study. It is a crucial part of the education of today’s younger generation. “If our young people do not form an historical awareness, if they don’t know who their ancestors were, they won’t become a fully-developed generation. A true patriot should be able to sense the continuity of our culture and traditions,” Dr Ozganbayev explains. In June, Kazakhstan’s leading historians held a conference. One of these, Nikolai Lapin, from the Institute of the History of the Kazakh State, acknowledged that the teaching of history is complicated by the fact that Kazakhstan’s historians are behind their colleagues in other countries in their methodology. They need to catch up – and quickly. Indeed, most historians agree that Kazakhstan’s history should be taught according to one common historically accurate narrative, so that today’s young Kazakhs develop a true sense of, and pride in, their history.
“The history of the Kazakh people is one of unity. In other words, we have been strong only on those occasions when we have pulled together. This has been shown on a number of occasions throughout our history.” Dr Omirzak Ozganbayev, Chairman of the Council of the “Veterans’ Organization of the Republic of Kazakhstan”
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Belgium’s Raf Van Hulle, first to reach Astana after a 37-day cycle from Savoie to Astana
Here Comes the Sun Trip! The first of 33 cyclists riding on “The Sun Trip” from France to Astana to help promote EXPO-2017 and its theme of “Energy of the Future” have arrived in the capital of Kazakhstan. The cyclists, from many different countries including Belgium, Canada, France, Kazakhstan and Switzerland are not riding ordinary bicycles, but solarpowered machines. Each bicycle has an electric motor powered by two solar panels on an attached trailer with the solar panels and two lithium batteries. The motors allow the riders to speed up without pedalling faster. The ride was the brainchild of the President of the “Journey to Renewable Energy” Association, Florian Bailly. First to enter Astana was the Belgian cyclist, Raf Van Hulle, who completed the 7,000-mile journey from Savoie in France in just 37 days. Hulle, who is the creator of the Solarwind concept, which builds energy-saving homes and designs low-energy interiors and sports and mobility-related products, was more than 24 hours ahead of the second-placed rider, Jorge Moïta from France. While Raf Van Hulle will have been pleased to arrive first, the race is not the most important element of “The Sun Trip”. The main aim is to draw the world’s attention to renewable energy sources and energy conservation policy, the central theme of EXPO-2017 in Astana. Riders were allowed to choose their own route between Savoie and Astana, although they were expected to take in the cities of Venice, Sofia, Bucharest, Odessa, Istanbul, Sochi, Baku, Atyrau and Aktobe. In many ways, the toughest part of the journey came when they reached Kazakhstan. Here, many of the roads are unpaved and the distances between towns and villages can be vast. In addition, the summer heat meant that while the solar panels worked well, the riders have had to combat tiredness and loneliness, avoid heatstroke and maintain a constant supply of water.
“All of the participants of The Sun Trip 2013 are full of energy and strength. Some of them are very experienced; others are just starting out on such journeys. But all of them are united by one common idea, which is to attract attention to the use of renewable energy sources.” Talgat Yermegiyayev, Chairman of the Board of the “Astana EXPO-2017” company
The official logo for EXPO-2017 in Astana has been chosen, following an online vote by the people of Kazakhstan. The whole process started nearly five months ago, when 27 designers from 18 countries started to draw up ideas for the logo. 56 designs were then subsequently submitted to the Government Commission for EXPO-2017. Of these, seven were chosen to go forward for the online vote, which lasted from July 9-22. Over 10,000 votes were cast, and there were lively discussions about the logos on the internet and on social networking sites. Two clear favourites emerged from the vote, one entitled “Green Energy” and the other “Wind Energy”. The final decision went back to the Government Commission for EXPO-2017 – and “Wind Energy” was chosen. With the logo now chosen, the next stage will be the registration of the logo as a trademark, both nationally and internationally. The logo will be integral to the development of the EXPO2017 brand.
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News from the Government in Brief New department set up for running airports A new department is to be set up under the Civil Aviation Committee (CAC) of the Ministry of Transport and Communications. The aim is to create a unified system of management for Kazakhstan’s airports, and to develop a strategy for the way they are run which will bring them up to international standards. Ultimately, this should be reflected in the effectiveness of the way the airports operate and in the quality of the service they provide. As an example of where improvement should be seen, the Chairman of the CAC, Beken Seydakhmetov, pointed out that at present it takes Kazakhstan’s airports one and a half hours to service a single aircraft, whereas in international airports this takes on average 40 minutes. The development strategy was suggested by Lufthansa Consulting, a company that analyzes the airport servicing market and recommends possible savings to raise the commercial effectiveness of airports. At present, ten out of 18 airports in Kazakhstan with national status are operating at a loss. In the past ten years, nine of the airports have re-laid their runways, and eleven of them have rebuilt their terminals. In preparation for EXPO-2017, plans are underway to increase the capacity of Astana Airport to almost double its present size. (primeminister.kz)
Air Safety Center for Central Asia to open in Kazakhstan An Air Safety Training Center under the aegis of the International Civil Aviation Organization (ICAO) is to open in Kazakhstan in September this year. The Center will serve the whole of Central Asia and will be the third such center to be opened in the former Soviet Union, after similar ones were opened in Kyiv and Moscow. The opening will coincide with an international air safety conference in Astana, which will be held in conjunction with the ICAO. The Chairman of Kazakhstan’s Civil Aviation Committee, Beken Seydakhmetov, acknowledges that the standards of training at the Civil Aviation Academy in Almaty need to be raised to international levels. The qualifications of the teaching staff need to be improved; the training process revised; and the technical base of the Academy renewed. Already, some KZT 2bn has been allocated for this from the 2014 state budget. Mr Seydakhmetov added that out of 750 graduates of the Academy over the last three years, only one third had found employment. He put this down to, “the poor demand and weak level of training of Kazakhstan’s aviators”. (primeminister.kz)
President Nazarbayev meets BIE Secretary General to discuss EXPO-2017 The Secretary General of the International Exhibitions Bureau (BIE), Vicente Gonzalez Loscertales, visited Astana this week to discuss preparations for EXPO-2017 with President Nazarbayev and other senior officials. During a meeting on Thursday with the President, he discussed the preparation of the so-called registration dossier for EXPO-2017. These are the detailed documents that Kazakhstan will submit to the BIE showing how the project will be implemented. The President noted the importance of Mr Loscertales’ regular visits to Kazakhstan and thanked him for his constant support. According to President Nazarbayev: “We have analyzed international best practise for holding an EXPO. In this respect, it is especially important that the country will benefit from holding the exhibition and that it will continue to benefit after it finishes. This question worries many of our citizens. We must do everything to ensure that the new infrastructure is used and brings value to our capital and the whole country.” Prime Minister, Serik Akhmetov also met Mr Loscertales during the visit. Mr Akhmetov assured his visitor that the latest and best information is being used to ensure that the Exhibition will be run at the highest level, using the most promising and far-reaching methods for alternative and renewable energy. “We have already started a thorough examination of the registration dossier and have made some suggestions. The contents have been carefully worked out and are reliable. They reflect well the vision of the President as described in the ‘Kazakhstan-2050 Strategy’,” Mr Loscertales said. (akorda.kz/ortcom.kz)
Education Ministry to guarantee student loans The Ministry of Education and Science has announced that it will guarantee student loans to allow students to finish their higher education. Students who do not qualify for a grant, or those who are facing financial difficulties during their studies, will be able to take out bank loans which the Ministry will guarantee. Four banks have agreed to the scheme with the Ministry. Students have an incentive to do well in their studies: the better their grades, the higher the level of the guarantee. (primeminister.kz)
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Also in The News… • Finance Minister confident of strength of economy Kazakhstan is well placed to cope with any changes in the global economy, Finance Minister Bolat Zhamishev said this week during an online conference arranged by the BNews.kz website. “We have sufficient international reserves,” he said, “to react to any change in the exchange rate.” One thing which would have an effect on the economy, he acknowledged, would be “a catastrophic fall” in the price of natural resources. (bnews.kz) • Competition closes for EXPO-2017 complex Entries closed this week for designs for the exhibition complex for EXPO-2017 in Astana. The competition attracted designs from 50 architects and architectural firms from 20 countries: Austria, Australia, Canada, China, France, Germany, Italy, Japan, the Netherlands, Norway, Portugal, Russia, South Korea, Spain, Turkey, Tunisia, UK, Ukraine, US and, of course, Kazakhstan. After all of the designs have been examined by the EXPO-2017 Committee, there will be a display in the Korma Exhibition Centre in Astana from August 12-16. It is expected that the winning design will be announced on September 1. (ortcom.kz) • More jobs, less youth unemployment in Astana In the first six months of this year nearly 10,000 new jobs have been created in Astana. This is estimated to be the equivalent of a job for every new arrival to the capital capable of work. Also, the level of youth unemployment has fallen since 2010, from just over 11% of the population to 8.3% in the first quarter of 2013. The overall level of unemployment in Astana over this period has also fallen, albeit by a smaller percentage, from 6.2% in 2010 to 5.6% in the first quarter of this year. (kazinform.kz) • Mayor of Almaty hands over new flats Keys to the first new flats built under the “Dilapidated Housing” program have been handed over to their owners. The local authorities in Almaty identified 1,000 blocks of flats built in the 1950’s which needed replacing. Under the program, the first 55 blocks should be replaced by 2015, re-housing 565 families. (kazinform.kz) • Number of pensioners and babies increases in Astana Figures released this week show that the number of pensioners and babies in the capital is increasing year-on-year, judging by the amount of people receiving state benefits. In 2011, 18,000 grants were paid out for the birth of a baby. In the first half of this year that was already nearly 22,000. (kazinform.kz) • Kazakhstan’s historians prepare new textbooks A group of historians has set about the task of preparing new textbooks on the history of Kazakhstan, going from the earliest times up to the present day. Leading political scientists, cultural specialists and philosophers are also taking part in the process. They are planning, too, a magazine, “Questions of National History”. (ortcom.kz)
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• Kazakhstan rises in UEFA ratings Kazakhstan has reached its highest level in the UEFA “coefficient” ratings thanks to the successful efforts of its clubs in the qualifying tournaments for the 2013-2014 European football club competitions, the UEFA Champions League and the Europa League. In the third qualifying round for the Champions League, Shakhter Karagandy beat Skënderbeu of Albania 3:0 in the first leg match, with the second to come in Albania on August 6. In the third qualifying round of the Europa League, Aktobe play Breidablik from Iceland. A country’s “coefficient” rating determines how many teams are invited to take part in European competitions. (tengrinews.kz) • Third annual mass media festival in Almaty The third annual international festival, “Kazakhstan Mass Media Star Awards” has taken place in Almaty. Two football projects won special awards: the youth football tournament, “Coca-Cola Bylgary Dop” and the program, “GoleadOr”. The winners of the “Coca-Cola Bylgary Dop”, the team from middle school no.17 in the Zhambyl Region, will represent Kazakhstan at the mini-world championship in Pretoria, South Africa, in September. (kazinform.kz) • “Astana Opera” on tour in Italy The symphony orchestra of the “Astana Opera” company was on tour in the Italian region of Sicily, July 25-31. Under their musical director, Abzal Mukhitdinov, the orchestra performed a selection of classical European music, Kazakh folklore and modern music from Kazakhstan. (mfa.gov.kz)
Things to Watch • President Nazarbayev will attend the inauguration of the new President of Iran, Hassan Rouhani, on August 4. The two nations established diplomatic relations over 20 years ago. • Nazarbayev University in Astana will host the International Conference of the European Society for Central Asian Studies (ESCAS) on August 5-7. The conference will be entitled: “From the steppes to arable land: symbiosis of nomadic and sedentary civilizations”.
ASTANA CALLING A WEEKLY ONLINE PUBLICATION / WWW.MFA.GOV.KZ Please send comments and questions to pressa@mfa.kz
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