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 321 / FRIDAY, SEPT 13 2013
Chinese Leader Pays State Visit to Kazakhstan Bilateral relations continue to improve
Eastern Kazakhstan in the Spotlight Powerhouse region attracts investment
Eurasia Emerging Markets Forum in Astana International community discusses “Kazakhstan-2050” Strategy
News from the Government in Brief
President Nazarbayev speaks at G20 Summit
Also in the News
President Nazarbayev and President Xi in Astana this week
President Xi is appointed an honorary professor at Nazarbayev University
Chinese Leader Pays State Visit to Kazakhstan This week’s visit to Astana by the Chinese President, Xi Jinping, underlines Kazakhstan’s close and flourishing relationship with the People’s Republic. In all areas – including trade, diplomacy and education –Mr Xi had open and encouraging discussions with President Nazarbayev, Prime Minister Akhmetov and other members of the government of Kazakhstan. As President Nazarbayev said summing up Mr Xi’s visit, “We have strengthened our common border and increased the volume of our trade. Chinese investment into Kazakhstan is now USD 20bn, which makes it the third largest investor into our economy. Cooperation in the oil and gas sector is growing fast, including the building of pipelines.” Improving transport links provide clear benefits for both sides. The construction of the Western Europe-Western China highway through Kazakhstan will help facilitate trade for both countries. The opening of new railway lines gives Kazakhstan greater access to Asia-Pacific markets through the Chinese port of Lianyungang. During Mr Xi’s visit, 22 business contracts were signed, worth a total of USD 30bn. Perhaps the most significant of these was for Chinese assistance in the construction of a new oil-refinery. But there were also deals signed in the agricultural sphere, in transport and communications and also education. Students from Kazakhstan will have greater opportunities to study in China, while more students from China will come to the Nazarbayev University in Astana. In the political arena, President Nazarbayev stressed that the background to all these agreements was an atmosphere of goodneighborliness and non-interference in the internal affairs of each state. He stated that Kazakhstan fully supports China in questions of regional security and the fight against extremism, terrorism and separatism. With both leaders having just returned from the G20 summit in St Petersburg, President Nazarbayev underlined that all members of the G20 were united in the view that China’s development is a guarantee of stability for other countries around the world. For his part, President Xi Jinping said that he had been greatly looking forward to his visit to Kazakhstan and that he had been very impressed with the warmth of his reception. He said that his talks with President Nazarbayev had produced “concrete results”, and that on questions of both global and regional matters, they had reached a wide understanding. Mr Xi explained that, “the program for the medium and long-term development of our trade relationship foresees definite possibilities for major economic cooperation.” He concluded, “I am convinced that through our joint efforts we will increase our mutual trade to USD 40bn by 2015.” The Chinese leader agreed with President Nazarbayev about the importance of the two countries’ cooperation in the energy field, including in the exploration, extraction and refinement of oil and the construction of trans-border oil and gas pipelines. Another cross-border issue of great importance to Kazakhstan and China is the question of water resources. Mr Xi said that he was sure that the rivers which join the two countries could be sources of friendship and cooperation. The two leaders will see each other again soon, when they attend the 13th session of the Shanghai Cooperation Organization (SCO), which is due to take place in Bishkek on September 13. On the agenda for the meeting is the strengthening of cooperation between the member states and the future development of the SCO.
“This is a new era of cooperation between our countries…China’s intensive development is a guarantee of stability for other countries around the world. That is why the strategic plan which has been adopted for China’s development will also help the growth of the economy of Kazakhstan.” President Nazarbayev ASTANA CALLING / ISSUE 321 / 2
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Eurasia Emerging Markets Forum in Astana The Strategy “Kazakhstan-2050” came under the international spotlight this week at the Eurasia Emerging Markets Forum 2013 in Astana. The Emerging Markets Forum has been meeting since 2005, to discuss global and also regional issues. This was the first time the Forum has been held in Kazakhstan’s capital city. Previous meetings have concentrated on plans such as “India-2039”, Mexico-2042”, “Asia-2050” and “Latin America-2050”. This time, the host country’s Strategy “Kazakhstan-2050” was the main topic of discussion for the 200 delegates. Kazakhstan’s goal to be among the top 30 developed countries of the world by 2050 was a key focus of debate in the session titled “Eurasia in the 21st century: Leadership through Renewal”. The keynote speech to the Forum was given by President Nazarbayev. Speaking at the Plenary Session of the Forum, the President presented the example of the rapid development of the host venue, Astana, as a symbol of Kazakhstan’s growth over the past 15 years. According to the President, his recent participation in the G20 Summit was because of the rapid growth of the country’s economy since independence. The President pointed out that immediately after the collapse of the USSR, the country’s economy shrank by 30% – a bigger fall than the US experienced during the Great Depression of the 1930s. Yet, with the help of the Strategy “Kazakhstan-2030”, since the turn of the century Kazakhstan has experienced an annual growth rate of 6-7% and the average wage has risen from USD 600 per year to USD 12,500. President Nazarbayev pointed out that the crucial factor in this was investment – not just in industry, although this has been vital, but particularly in people. Improvements in education and health care have been vital. Over the past eight years, life expectancy has gone up by five years, and the population of Kazakhstan is growing. Bearing in mind that the title of the Forum suggests that those taking part are mainly from “emerging markets”, President Nazarbayev asked his audience to consider the meaning of the terms “emerging” and “developed”. “At the start of the 20th century, the term ‘developed country’ referred to the large colonial powers. But 30-40 years later it meant a state with great industrial potential and military might. Yet 20-30 years later, a developed country was one with high academic and educational potential. By the start of this century, an important indicator was the level of IT development.” Any country that now wishes to be in the ranks of the developed nations, the President continued, needs to concentrate on certain key areas of development, such as, “clean energy, robotics, nanotechnology, the aerospace industry, genetic engineering; in other words, those areas which all the developed nations are currently developing.” The President’s ideas gained support from the Forum’s senior political attendees. Alfred Gusenbauer, the former Austrian Chancellor, agreed with President Nazarbayev’s emphasis on education as a key factor in the country’s development. The former President of Poland, Aleksander Kwaśniewski, added: “I agree with the President of Kazakhstan that the foundation for all development is human capital… This is a priority not only for Kazakhstan, but for all the developed countries of the world. You have to develop your human capital and use it in the most effective way possible. That’s why education is of the utmost importance in a country’s development.” Other senior politicians participating at the Forum included the former Prime Minister of Italy and former President of the European Commission, Romano Prodi, and former Prime Minister of Israel, Ehud Olmert.
“Seven years ago I set my government the task of bringing the country into the ranks of the 50 most competitive countries in the world. We achieved this; but we’re not stopping there…We worked on the Strategy, ‘Kazakhstan-2030’, and, having fulfilled most of those challenges, we are planning our development up to 2050. The main task for our country is to become one of the 30 most developed countries in the world. I have no doubt that we shall reach this and guarantee a secure future and prosperity for our people.” President Nazarbayev ASTANA CALLING / ISSUE 321 / 3
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Governor of Eastern Kazakhstan Region Berdybek Saparbayev
Eastern Kazakhstan in the Spotlight The region of Eastern Kazakhstan has been in the spotlight this week. Bordering Russia in the north and north-east and China in the south and south-east, the region of Eastern Kazakhstan is growing in importance politically and economically. According to the Governor of the Region Berdybek Saparbayev, Eastern Kazakhstan Region is developing dynamically and is economically self-sufficient. It also has enormous potential in the areas of industry and agriculture. Investment into the Region is increasing annually by 15-20%, which amounts to some USD 4-5bn per year. In the first half of this year alone the Region attracted over USD 2.5bn. Almost two-thirds of this comes from local businessmen, and about one quarter from abroad. Mr Saparbayev was interviewed this week by the government website, ortcom.kz, and spoke with justifiable pride about many of the Region’s achievements. He gave an example of one successful meeting with foreign investors to bring robotic milking methods to one farm, owned by the company “Vostok-Moloko” (“East-Milk”). “The enterprise has around 3,000 head of large-horned cattle, a sizeable territory and a sufficient feed-base. Together with a Swiss firm, and at their own expense, the enterprise installed robot-technology for milking. Previously they had to have 20 personnel for milking, now they need just two operators. Before each cow would produce around 3,000 liters of milk per year – it’s now up to around 5,000 liters,” Mr Saparbayev explained. State resources have been well handled in the Region, too. Nearly KZT 3bn have been invested in the region from the Business Road Map-2020 program. Credits of over KZT 4bn have been issued. Over KZT 1.5bn which was allocated in subsidies for 2013 has been fully utilized. Inflation in the Region stands at 6.1%, which is down two percentage points on 2010. Unemployment was down from 5.7% in 2010 to 5.1% last year. Significantly, 30.8% of the working population are self-employed. Nearly KZT 15.5bn has been allocated under the “Employment-2020” Program in 2013; 944 workers have been put on re-training programs; 241 on higher qualification programs; 822 young people on apprenticeships; and nearly 3,000 given social work places. With 25% of all of the country’s innovation production, the Eastern Kazakhstan Region occupies first place in the country. Already this year, KZT 2.5bn has been spent on four industrial-innovation projects, creating 600 jobs. The Region produces more honey than any other region – about 70% of the country’s total honey produce. Eastern Kazakhstan is first for milk and second for meat production. Every day all schoolchildren in the Region receive free of charge 15 grams of honey and a glass of milk. The Region is not simply resting on its laurels, either. By 2015, all children of pre-school age will have a place in a kindergarten. By 2016, all school buildings which are in need of repair will be replaced. In addition, by 2016 plans are underway to house all orphaned children in families. In the same year, all institutions will have properly qualified teaching and medical staff.
“As for investment, we are receiving some USD 4-5bn a year. In the first six months of this year we received USD 2.6bn. On the whole this is coming from our own enterprises; our own business people make up 63% of the investment, with a further 23% being foreign investment.” Berdybek Saparbayev, Governor of Eastern Kazakhstan Region ASTANA CALLING / ISSUE 321 / 4
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News from the Government in Brief President Nazarbayev speaks at G20 Summit President Nursultan Nazarbayev took full advantage of the invitation from Russian President Vladimir Putin to take part in the G20 Summit in St Petersburg. In a speech at the meeting, President Nazarbayev thanked his host for the invitation to take part in the Summit, and told his audience that the voice of the majority of developing countries – including Kazakhstan – is rarely heard when global decisions are taken. For this reason, two years ago he initiated the G-GLOBAL project. He stressed that this is not an alternative to the G8 or the G20, but is an extra platform for the sharing of information and for international communication. The President spoke about the Global Anti-Crisis Conference which was established two years ago. An initiative of Kazakhstan, the Global Anti-Crisis Conference quickly gained the support of the UN General Assembly and brings together the leaders of the economic organizations of 104 countries. President Nazarbayev added that regional integration, such as the Customs Union set up between Russia, Belarus and Kazakhstan can play an important role in coping with the global financial crisis. President Nazarbayev also took full advantage of his attendance at the G20 Summit in order to hold a series of one-on-one meetings with world leaders. The President devoted special attention to his meeting with the President of South Korea, Park Geun-hye. Her predecessor, Lee Myung-bak, visited Kazakhstan during his tenure and helped to establish close cooperation, notably in the sphere of trade and investment. President Nazarbayev invited President Park to visit Kazakhstan in the near future to continue the productive dialogue between the two countries.
Russian Foreign Minister Visits Kazakhstan Russian Foreign Minister Sergey Lavrov visited Astana on September 12 to discuss bilateral cooperation issues with President Nazarbayev and Foreign Minister Idrissov. Minister Lavrov’s two-day visit once again highlighted the high-level of cooperation between the two countries. During his visit, Minister Lavrov met President Nazarbayev to discuss Kazakh-Russian cooperation in a wide range of areas including politics; trade and economics; and culture. Special attention was paid to practical steps to strengthening relations between the two countries in the framework of international and cross-border cooperation as well as energy and the space program. Both sides reaffirmed their commitment to fulfilling the aims of the joint action plan for 2013-2015 announced by the heads of state of both countries in December 2012. Regional security and international affairs also figured highly on the agenda. President Nazarbayev praised the work of both sides in fostering close relations: “Kazakhstan and Russia maintain a high level of relations. Great credit must go to the ministries of foreign affairs and to the embassies of both countries. I believe that our bilateral cooperation can serve as an example for other countries.” President Nazabayev extended his congratulations to Minister Lavrov on the success of last week’s G20 in Russia noting the high quality organization of this major event. Minister Lavrov informed President Nazarbayev about his talks with Minister Idrissov which focused on the further deepening of bilateral cooperation outlining common steps, including preparations for a meeting of the heads of both states. Another important topic discussed in Astana was the preparation of a new agreement between Russia and Kazakhstan on “good neighborliness’ and the countries’ alliance in the 21st Century. Both heads of state plan to sign the new agreement during the Tenth Forum of Interregional Cooperation of Russia and Kazakhstan due to take place in the Russian city of Yekaterinburg in October this year. The new agreement is intended to take relations between the two states to a new level. ASTANA CALLING / ISSUE 321 / 5
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Shanghai Cooperation Organization (SCO) meets in Bishkek This week President Nazarbayev travelled to Bishkek to take part in the Shanghai Cooperation Organization 2013 Summit that will discuss regional co-operation. Alongside Kazakhstan, Member States include China, Kyrgyzstan, Russia, Tajikistan and Uzbekistan. It is expected that a number of key documents will be signed during the Summit, including the Bishkek Declaration. Currently, the Kyrgyz Republic holds the SCO chairmanship. The Kyrgyz Chairmanship has made economic issues its main area of focus. The main objectives of the Organization are to support stability and peaceful relations in the region by encouraging effective cooperation in the areas of political and economic relations, trade, culture and education.
CIS Interior Ministers meet in Astana The 41st meeting of the Council of Ministers of the Interior of the Member States of the Commonwealth of Independent States (CIS) took place on September 10 in Astana. As the host nation, Kazakhstan’s Interior Minister, Kalmukhanbet Kassymov, chaired the meeting. The participants were welcomed by President Nursultan Nazarbayev, who also suggested some practical ideas for combatting crime in the CIS, especially on the territory of the Customs Union. Running in parallel to the main meeting, there was a trilateral meeting between the Interior Ministers of Belarus, Kazakhstan and Russia which considered questions associated with the creation of the Eurasian Police Structure (Euraspol). The Eurasian Police Structure will be established when the Customs Union develops into the Single Economic Space. The Ministers of all of the member countries took part in a ceremony laying flowers at the monument to all those in the interior ministries and interior troops who have died fulfilling their duty. (ortcom.kz)
Government tackles question of mono-cities This week’s meeting of the Government of Kazakhstan discussed the question of “mono-cities”. These are towns and cities which grew up in the Soviet period based on a single industry. This was not a problem in a centrally-planned economy as existed in the USSR. But in a developing market economy, such a system can cause serious problems for the population, especially if the single industry is not successful. In 2012 the government launched a pilot program to tackle the problem of mono-cities. This is now in full operation and should be completed by 2020. The First Deputy Minister for Regional Development, Kairbek Usskenbayev, reported to the meeting on the measures being taken. There are 27 mono-cities, with a total population of just over one and a half people. Six of these cities are seen as having great potential for development, the remaining 19 less so. The Deputy Minister summed up the current program as having the aim of, “diversifying the economy of the mono-cities; solving questions of employment of the population; creating new industries”. Already KZT 6bn has been spent setting up 170 projects, and almost a further KZT 19bn will be spent this year. In total, 47 core investment projects will be implemented, which will create 25,000 new jobs. In each region, the local akim (mayor) will bear personal responsibility for the successful implementation of the program. (primeminister.kz)
New Education Minister appointed Aslan Sarinzhipov was appointed the new Minister of Education and Science of Kazakhstan on September 2, 2013, by Presidential decree. Mr Sarinzhipov replaces Bakytzhan Zhumagulov, who moves on after three years in the post. Mr Sarinzhipov, who is 39 years old, has for the past four years been the Chairman of the Executive Board of Nazarbayev University. The University was established in Astana in 2009, with the aim of creating a leading academic institution in Kazakhstan, matching up to world standards. The authority in which the University is already held is a testament to Mr Sarinzhipov’s time in office. Mr Sarinzhipov takes over the Education Ministry at a crucial point. His predecessor achieved notable successes. Among these, were bringing to Kazakhstan the European educational reform movement known as the Bologna Process; changing the previous 11-year school system to 12 years, making it compatible with Western models; and making major changes to the Bolashak program, under which students, post-graduates and professors receive grants to study abroad at some of the world’s leading higher educational establishments. (tengrinews.kz)
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Also in The News… • KazAgro to provide USD 2bn under “Agrobusiness-2020” program The Ministry of Agriculture has announced that the state agricultural holding, KazAgro, is to provide USD 2bn worth of funding for investment in agricultural projects over the next seven years. Loans will be made to agricultural businesses on a one-off basis, and requests must be submitted by mid-2014. (primeminster.kz) • Nine projects launched countrywide to boost diversification The Ministry of Regional Development has launched nine anchor investment projects across the country to encourage diversification of the economy and stimulate small and medium businesses. An anchor project is a medium to large investment project which is not in the natural resources sector and which will employ at least 100 people. Projects have already been started in the cities of Stenogorsk, Khromtau, Balkhash, Ekibastuz, Zhezkazgan and Arkalyk. In the long run, there are plans to launch 47 projects, which would create more than 25,000 jobs. • Day of the Family celebrated in Kazakhstan President Nazarbayev congratulated the country’s families on a new holiday, The Day of the Family, which will be celebrated each and every year on the second Sunday in September. In his address, the President said that this day should serve to strengthen the values of morality and spirituality. He added that love for the Motherland starts with love for one’s own home and family. (ortcom.kz) • National Entrepreneurs’ Chamber founded The National Entrepreneurs’ Chamber was founded on September 9, 2013. The Chamber’s main function will be to defend the rights and interests of entrepreneurs. It will monitor the activity of entrepreneurs in the regions, support Kazakhstan’s businesses, help to attract investment and encourage diversification in the economy. (primeminster.kz) • New stamp issued for “No Nuclear Tests Day” In honor of the United Nations International Day Against Nuclear Tests, which was marked on August 29, Kazakhstan’s national postal carrier, KazPost and the Ministry of Foreign Affairs launched a new stamp commemorating the event. The UN initiated the day in response to a proposal put forward by President Nazarbayev, and chose the date because it was on that day in 1991 that the President ordered the closure of the nuclear testing site at Semipalatinsk. The stamp has a value of KZT 150, and depicts President Nazarbayev flanked by the Presidents of Russia and the USA at the time the proposal was put to the UN, Dmitry Medvedev and Barack Obama. (The Astana Times) • Kazakhstan Embassy in US organizes peace round table On September 10 the Embassy of Kazakhstan in the USA together with the “NOVA” Institute of State Service in Alexandria, Virginia, held a round table on the subject, “The Possibilities of Creating a World Free of Nuclear Weapons: Let’s Say ‘No’ to Nuclear Tests”. The ATOM Project against nuclear testing was presented to the audience, and an exhibition of the art work of Karipbek Kuyukov was put on show. (mfa.gov.kz) • Kazakhstan Ambassador accepts invitation from German Chamber The Chamber of Trade and Commerce of Baden-Würtemberg invited the Ambassador of Kazakhstan to Germany, Nurlan Onzhanov, to visit the town of Ulm. The Chamber arranged meetings with local politicians and business people of BadenWürtemberg – the third largest region in Germany in terms of size and economic development. The Ambassador took part in a round table entitled, “Kazakhstan as an economic partner in raw materials, industry and technology”. Ambassador Onzhanov spoke about the current political and socio-economic developments in Kazakhstan, and introduced the “Kazakhstan-2050” Strategy to the assembled audience. (mfa.gov.kz) • Thai companies set their sights on opportunities in Kazakhstan “Investment and Business Opportunities in Kazakhstan, Nigeria and South Africa” was the title of an international seminar held in the capital of Thailand, Bangkok, on September 6. The event was organized by the Ministry of Industry of Thailand; the Thailand Agency for Investment; and the Thai Research Institute on Fiscal Policy. It was supported by the Embassies of Kazakhstan, Nigeria and South Africa. The Ambassador of Kazakhstan in Thailand, Marat Essenbayev, spoke about the investment climate in Kazakhstan, and also about the preparations for EXPO-2017 in Astana. (mfa.gov.kz)
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