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 323 / FRIDAY, SEPT 27 2013
PM Completes Successful Visit to Paris Plans for further economic cooperation, French involvement in EXPO-2017
Foreign Minister Attends 68th Session of UN General Assembly Bilateral meetings and speech to the Assembly
Nazarbayev University Opens Business School
Uncovering Kazakhstan’s Rich History New website launched
Partnerships formed with leading world institutions
News from the Government in Brief
Also in the News
Things to Watch
PM Completes Successful Visit to Paris
Prime Minster Serik Akhmetov together with Minister of Environment Protection, Nurlan Kapparov, in discussion with Vicente Loscertales, BIE Secretary General
Prime Minister Serik Akhmetov completed a working visit to France on September 21, with high hopes of greater bilateral cooperation in a number of sectors of the economy, as well as the possibility of strong French participation in EXPO-2017 in Astana. Mr Akhmetov used the occasion of his visit to Paris to hold talks with the Secretary-General of the Organisation for Economic Cooperation and Development (OECD), and discussed Kazakhstan’s greater involvement in the activities of the OECD.
Mr Akhmetov was in Paris at the invitation of the Secretary General of the International Exhibitions Bureau (BIE), Vicente Loscertales, to discuss preparations for EXPO-2017 that will take place in Astana. The Prime Minister told Mr Loscertales that Kazakhstan was making every effort to ensure the “quality preparation” of the event. In his talks with his French opposite number, Jean-Marc Ayrault, the Prime Minister described France as, “a key partner for Kazakhstan in Europe”. The two men discussed the possibility of expanding trade and economic relations, investment, cultural and humanitarian cooperation, and both expressed optimism about the current bilateral relationship and the prospects for improving this further. “There are over 100 companies currently working in Kazakhstan where French capital plays a part,” said Mr Akhmetov. “They have already shown what reliable partners they are.” The Prime Minister went on to list the principal areas where joint KazakhstanFrance partnerships are developing: alternative energy, machine building, metallurgy, electronics, the chemical industry and technology transfer. The question of alternative energy fits neatly with the subject of EXPO-2017, which will be hosted by Kazakhstan in Astana. The main theme for EXPO is “Future Energy”, and Kazakhstan believes that France can play a significant role in the event. Mr Ayrault expressed his confidence in the strengthening of France’s relations with Kazakhstan, and said that France was willing to step up its cooperation with Kazakhstan in the oil and gas sector, car manufacturing and the nuclear power industry. Relations between Kazakhstan and France have progressed well since Kazakhstan gained its independence in 1991. President Nursultan Nazarbayev made the first of eight visits to France in 1992. In June 2008, he made an official visit to France, during which a strategic partnership treaty, several intergovernmental agreements and trade agreements were signed. The then French President, Nicolas Sarkozy, made a State visit to Kazakhstan in October 2009, during which President Sarkozy and President Nazarbayev reaffirmed their desire to be strategic partners, in particular in the political and economic sectors. They signed a joint statement and participated in the closing ceremony of the Franco-Kazakh Business Forum. The turnover in trade between the two countries is strong and encouraging. In 2012, trade turnover between Kazakhstan and France amounted to USD 6.2bn (exports from Kazakhstan USD 5.63bn, imports USD 584m). Kazakhstan exports oil, metals and chemical products to France. Kazakhstan imports industrial equipment, medicines, cosmetics and cars. Gross direct investment from France to Kazakhstan has amounted to around USD 10bn since 1994. Mr Akhmetov also held talks with Angel Gurria, the Secretary-General of the OECD. The Prime Minister explained to Mr Gurria the basic principles behind the Strategy “Kazakhstan-2050” and said how keen the country is, “to actively cooperate with the member-countries of the OECD in order to help Kazakhstan achieve its aim of becoming one of the world’s 30 most developed states”. Mr Akhmetov continued, “This is not a simple task, but a wholly achievable one nonetheless, and the experience of the OECD here will be invaluable for us. In 20 years of independence under the leadership of our Head of State we have already come a very long way, and we are now at a new stage of socio-economic growth.” For his part, Mr Gurria suggested that Kazakhstan should join the OECD Development Centre and stressed the importance for the organization of “the green economy”. He added, “We consider that Kazakhstan has enormous potential to become the leader of green strategy in the region”.
“France is a key partner for Kazakhstan in Europe. We have marked out a series of joint projects in the areas of alternative energy, machine building, metallurgy, electronics, the chemical industry and technology transfer. It is important for us to continue our joint work and strengthen our contacts at all levels.” Serik Akhmetov, Prime Minister of Kazakhstan
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Ramon O’Callaghan, Dean of the Graduate School of Business at Nazarbayev University
Nazarbayev University Opens Business School Nazarbayev University in Astana has opened its own Business School, the first of its kind in Central Asia. Initially, the School is concentrating on teaching an English-language Executive MBA (EMBA) course, aimed at senior professional managers at board level. In time, the plan is to teach regular, residential MBA courses. The School is also now focusing on one-week entrepreneurship courses. Each class trains 30 people and there will be 14 classes a year. The University has consulted with some of the leading business academics in the world for assistance in setting up the Business School, and has established a strong connection with the Fuqua School of Business at Duke University, North Carolina. Fuqua’s MBA programs have consistently been ranked in the global Top 20 for the last few years, and it is no coincidence that the Nazarbayev University chose to partner with Fuqua when they first started planning the Business School. The planning has taken two years since the partnership was first announced in October 2011. As well as advice on the setting up of the courses, leading professors from Fuqua will make the long journey to Astana to teach certain courses. The degrees which the School awards, however, will be those of Nazarbayev University. Fuqua’s approach was summed up by Valerie Hausman, Assistant Dean for Global Executive Education at Fuqua: “Kazakhstan as a nation is actively working to promote education and innovation. Philosophically, Fuqua believes that in order to effect change in the world, it is important to actively engage in key economic regions of the world. We will be involved to the extent that we can help promote innovation and critical thinking around global business issues. This is consistent with our global strategy.” Nazarbayev University looked to Europe for the Dean of the Graduate School of Business. Ramon O’Callaghan is former Dean of TiasNimbas Business School in the Netherlands. He is enthusiastic about the Business School’s prospects and, as he told the Financial Times newspaper this week, sees the School attracting students not only from Kazakhstan but further afield. Initially, he hopes to see students come in from Russia, China and India. Nazarbayev University is constantly increasing its reputation for international excellence. It currently consists of six schools: the School of Engineering; the School of Humanities and Social Sciences; the School of Science and Technology; the Graduate School of Education; and the Graduate School of Public Policy; as well as the Graduate School of Business. The School of Medicine is expected to open in 2015, and a School of Mining is being considered. The University offers a variety of undergraduate and graduate degrees, ranging from bachelor’s degrees to degrees at Ph.D. level. However, all the courses have one thing in common: they are all taught in English. With students already speaking Kazakh and Russian, this will provide another boost for the policy outlined in the Strategy “Kazakhkstan-2050” for citizens to become tri-lingual. The Business School’s connection with Fuqua is just one of a number of international links the Nazarbayev University has made. The partner institution of the School of Engineering is University College London; the School of Humanities and Social Sciences partners with the University of Wisconsin-Madison; the School of Science and Technology with Carnegie Mellon University. The Graduate School of Public Policy is partnered with the Lee Kuan Yew School of Public Policy of the National University of Singapore; and the Graduate School of Education has two international partner institutions: the Faculty of Education at Cambridge University and the Graduate School of Education at the University of Pennsylvania.
“Now the time has come that instead of sending people into the world, we are bringing the world to the university.” Ramon O’Callaghan, Dean of the Graduate School of Business at Nazarbayev University
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UN Secretary-General Ban Ki-moon opens the 68th General Debate of the UN General Assembly
Foreign Minister Attends 68th Session of UN General Assembly Foreign Minister, Erlan Idrissov attended the 68th Session of the United Nations General Assembly in New York this week. As well as taking part in the main sessions, Mr Idrissov used the occasion to hold a series of bilateral meetings with his counterparts from a host of different countries. The Foreign Minister is due to speak on the last day of the session on Saturday September 28. Many headlines around the world focused on the first speech to the UN by the President of Iran, Hassan Rouhani. Mr Rouhani assured his audience that Iran’s nuclear program is solely for peaceful purposes: for producing nuclear energy, not nuclear weapons. There seemed to be the possibility of a rapprochement on the issue between Iran and the USA, as the latest round of the so-called “5+1” talks on the Iranian nuclear question, involving the Foreign Ministers of the Members of the Security Council, took place at the UN this week. Although on this occasion the delegation from Kazakhstan was not involved in the nuclear talks on Iran, the subject is high on Kazakhstan’s foreign policy agenda. The last two rounds of talks, earlier this year, were both hosted by Kazakhstan, in Almaty. All sides acknowledged that Kazakhstan made an excellent host country in terms of the arrangements and facilitation of the talks. Indeed, this week when Foreign Minister Idrissov met William Burns, the US First Deputy Secretary of State, Mr Burns specifically thanked him for the efforts made by Kazakhstan over the Iranian question. He acknowledged, too, the important role Kazakhstan is playing in relation to the current situation in Afghanistan. In addition, the two men discussed Kazakhstan-US bilateral cooperation; global and regional security; as well as other developments on the international agenda. They also talked about the Commission on Scientific and Technological Cooperation between Kazakhstan and the US that was launched earlier this year. While in New York, Mr Idrissov held a meeting with the Emir of Qatar, Sheikh Tamim bin Hamad bin Khalifa Al Thani, and discussed a wide range of bilateral cooperation issues. The Foreign Minister emphasized the great potential for trade and economic cooperation between the two countries and invited Qatar to participate in investment projects in Kazakhstan’s agriculture, livestock, oil and gas, mining, infrastructure and transport. Minister Idrissov also discussed bilateral relations with Mahamoud Ali Youssouf of Djibouti; Carolyn Rodrigues-Birkett of Guyana; Ioannis Kasoulides of Cyprus; Augustine Kpehe Ngafuan of Liberia; and Othman Jerandi of Tunisia. He met with the President of the 67th UN General Assembly, Vuk Jeremic too. At his meeting with the Foreign Minister of Monaco, José Badia, Minister Idrissov discussed the forthcoming visit of President Nazarbayev to Monaco later this week. He also talked about technology transfer and the possible involvement of partners from Monaco in reforms in Kazakhstan in areas such as environment, renewable energy, tourism, pharmaceuticals and IT. A key topic of Mr Idrissov’s various discussions was the promotion of Kazakhstan’s candidacy for non-permanent membership of the UN Security Council in 2017-2018. This is one of the most important goals of Kazakhstan’s foreign policy. Kazakhstan’s activity at the UN Security Council and its participation in important decision-making processes in the area of security is testament to its deep commitment and involvement in both global and regional initiatives.
“On behalf of the U.S. Administration, William Burns thanked Kazakhstan for its efforts in assisting normalization of life in Afghanistan and the negotiations on Iran’s nuclear program.” Ministry of Foreign Affairs of Kazakhstan ASTANA CALLING / ISSUE 323 / 5
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Uncovering Kazakhstan’s Rich History This week saw the launch of a new internet site, “The History of Kazakhstan”, which contains information about the history of Kazakhstan from ancient times to the present day. The ‘History of Kazakhstan’ site can be found at: http://ehistory.kz, and is published in Kazakh, Russian and English. The site is aimed at those with a general interest in the history of the country as well as those who may have a particular research interest such as students and others studying the history of Kazakhstan in greater depth. The website makes use of the latest technologies and contains both well-known and lesser-known information through different media: text, PDF files, graphics, photographs, audio and video. There is a library section which contains monographs; dissertations; articles on history, archaeology and ethnography; and also related material such as genetic analyses and the latest geographical data. This section is infinitely expandable. In addition, the website incorporates an interactive element – students and researchers are encouraged to register on the site and post their material for publication. Material will appear also in an electronic journal, e-history.kz, which will be available to subscribers. It is expected that this will be an important source for information for students of the history of Kazakhstan at various levels. There will also be an interactive section where online debates and briefings will be held. The main section of the site, the History of Kazakhstan, is divided into five sub-sections: Ancient Kazakhstan; Kazakhstan in the Middle Ages; Kazakhstan in the Russian Empire; Kazakhstan in the Soviet Union; and Independent Kazakhstan. Each of these sections contains a number of further sections with articles and analysis of the period in question. There is also an interactive map of Kazakhstan where visitors to the site can see where Kazakhstan’s most interesting historical sites are located. Other sections look specifically at the role certain individuals have played in the history of Kazakhstan; a forum for specialists to share their views; and a wider educational resource. For the casual observer, the home page features a section entitled “This day in history”, where readers can read about what has happened in the past on that particular day. The site has been created by the Kaznetmedia company, working with the Foundation for Spiritual Unity of the Sovereign Wealth Fund “Samruk-Kazyna”; the Presidential Central Communication Service; the Ministry of Education and Science; and the Ministry of Culture and Information.
“We need to look into the past in order to understand the present and foresee the future.” President Nursultan Nazarbayev
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News from the Government in Brief President visits Kyzylorda Region President Nazarbayev continued his recent tour of the south of the country by visiting Kyzylorda Region. One of his first stops was a specialist science school in the city of Kyzylorda itself. The President emphasized the importance of these establishments in producing the scientists of the future. He also stressed the importance of pre-school education during his visit. He congratulated the local authorities on achieving virtually a 100% provision of pre-school education in the region. The President also met local business representatives in the Bastau Business Center in Kyzylorda. He told those involved in agriculture of the need to make production more cost-effective and self-reliant: “You have to move away from large support from the state and concentrate on raising production yourselves in this area,” he told his audience. President Nazarbayev had words of encouragement for those running small and medium businesses, saying that the country wants to raise this sector of the economy from 30% to 50%. “We need individual businesses with flexible production processes, which can adapt quickly to changes in the market,” he said. The President reminded local businesses of the opportunities to the Kyzylorda Region that the Western Europe-Western China highway would present when it is completed. (akorda.kz)
KPMG lists Kazakhstan as one of 20 most stable countries for business KPMG, the international auditing company, has placed Kazakhstan in the top 20 countries worldwide for its stability in coping with events that affect business, such as falling stock markets or natural disasters. KPMG carried out the research jointly with the analytical company, Oxford Economics. A total of 90 countries were chosen to take part in the research. Interviews were conducted with over 500 experts worldwide, and secondary source information was used from organizations such as the World Economic Forum, the World Bank and UNESCO. Kazakhstan featured particularly strongly in areas such as fiscal, budget and trade policy, economic transparency and economic infrastructure. The country showed up less well on matters concerning social controls and relations between the state and business. Kazakhstan is the only CIS country to appear in the top 20; Russia was listed at number 62. In a separate survey published this week, on “Innovation”, Kazakhstan is rated by the World Economic Forum as having risen 19 places compared to last year to 84th position; and for “Innovation Potential”, 18 places higher than last year at 74th position. (ortcom.kz, primeminister.kz)
Prime Minister visits Sochi for CSTO meeting Prime Minister Serik Akhmetov was in Sochi in Russia this week for the latest session of the Collective Security Council of the Collective Security Treaty Organization (CSTO). Along with the delegation from Kazakhstan, the meeting was attended by officials from Armenia, Belarus, Kyrgyzstan, Russia and Tajikistan. The meeting discussed general security issues of concern to the group, as well as focussing specifically on the questions of Afghanistan – notably the security of the Tajik-Afghan border – and Syria.
Prime Minister Akhmetov at the CSTO meeting in Sochi
All sides agreed that the defence of the border between Tajikistan and Afghanistan must be made more effective, and that military and technical assistance should be given to the armed forces of Tajikistan. Prime Minister Akhmetov warned the meeting that the growing instability in Afghanistan and the greater activity of the Taliban there must make all countries of the region prepare themselves for possible instability in the region after the withdrawal of foreign troops from Afghanistan in 2014. (ortcom.kz, primeminister.kz)
Paperless customs declarations fully operational by 2015 According to Minister of Finance Bulat Zhamishev, starting from January 1 2014 companies will be able to utilize electronic customs declarations for the export of goods. And by 2015, all customs procedures will be paper-free. As the Minister pointed out, though, this is not simply a matter of doing away with paper forms. Customs staff must be thoroughly retrained, which is a task for the Institute of Authorized Economic Operators (AEO). The Institute was first established in 2005, and set on a proper legal footing after the creation of the Customs Union between Belarus, Kazakhstan and Russia. The measures which have been established by the AEO Institute have shown that customs procedures are less lengthy than before; costs have been lowered; and the amount paid in customs duties has risen. (zakon.kz) ASTANA CALLING / ISSUE 323 / 6
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Also in The News… • President Nazarbayev visits Monaco On September 27-28, President Nazarbayev paid an official visit to Monaco following an invitation by Prince Albert II of Monaco. Discussions focused on the development of bilateral relations between Kazakhstan and Monaco. President Nazarbayev met with business leaders of both countries during the visit as part of the Kazakhstan-Monaco business forum. (akorda.kz) • Supreme Eurasian Economic Council meets in Astana President Nazarbayev met this week with heads of government of the member countries of the Customs Union and Single Economic Space who convened in Astana for a meeting of the Supreme Eurasian Economic Council. The Council discussed a wide range of issues aimed at deepening economic cooperation among the group of Eurasian countries that includes Belarus, Kazakhstan and Russia. The heads of government also evaluated the implementation of measures reached during the previous meeting of the Supreme Eurasian Economic Council that took place in Astana in May of this year. (akorda.kz)
Participants at this week’s meeting of the Supreme Eurasian Economic Council
• Kashagan oil field to produce 8m tons in 2014, Minister says The Minister for Oil and Gas, Uzakbay Karabalin, has announced that the Kashagan oil field is expected to produce 8m tons of oil in 2014. And by the start of October this year production is expected to be 75,000 barrels per day (bpd), up from the current total of 40,000 bpd. It is estimated that the Kashagan oil field contains around 38bn barrels, making it the fifth largest reserve of oil in the world. (primeminister.kz) • Surface area of Aral Sea continues to increase Efforts to restore the northern area of the shrunken Aral Sea have brought its waters to within 17km of the town of Aral according to the governor (akim) of Kyzlorda Oblast, Krymbek Kusherbayev. The distance between Aral and the Aral Sea had once been 74km. Satellite data confirmed the growth of the Sea’s level. (Kazinform) • Meeting of Kazakhstan’s Security Council President Nursultan Nazarbayev chaired a meeting of the National Security Council on September 24. On the agenda were the geopolitical situation and its effect on the modernization of Kazakhstan’s system of national security. The President noted that in the modern world threats to the country’s security are not decreasing. Among these are terrorism, social conflicts and continuing economic instability. (inform.kz) • Kazakhstan’s first Defence Minister dies The Ministry of Defence announced that Army General Sagadat Nurmagambetov, Kazakhstan’s first post-Soviet Minister of Defence, died this week, aged 89. General Nurmagambetov fought in the Second World War and among many medals and awards he won the “Hero of the Soviet Union”, the highest Soviet military award. After a lying in state in the Kazakh State Academic Opera and Ballet Theatre, General Nurmagambetov’s funeral took place on September 26. (zakon.kz) • Senate Chairman receives UK Ambassador Chairman of the Senate Kairat Mami held a meeting with the British Ambassador to Kazakhstan, Carolyn Browne. The Chairman and the Ambassador agreed that Prime Minister David Cameron’s visit in July, the first state visit to Kazakhstan by a serving British Prime Minister, was an event of historical significance, as was the Joint Declaration on Strategic Partnership which was signed. They agreed, too, that British business could play a major role in helping with projects which would bring about greater diversity in the economy of Kazakhstan, as well as in the development of hi-tech and export-driven industry. (kazpravda.kz) • Kazakhstan delegation takes part in OSCE meeting A delegation from Kazakhstan is participating in the annual meeting of the Office for Democratic Institutions and Human Rights of the Organization for Security and Co-operation in Europe (OSCE). The meeting is taking place in Warsaw and lasts for two weeks. (mfa.kz) • Young UN Disarmament specialists visit Kazakhstan A group of young diplomats on the UN’s disarmament program have visited Kazakhstan for the first time. The program which has been running since 1978, is for aspiring young disarmament specialists, and they visit a number of countries and relevant organizations around the world. Kazakhstan was chosen because of its particular position in the world disarmament movement. (mfa.kz) • “Kazakhstan Open-2013” Golf Tournament won by Swede This week, Johan Carlsson, a 27 year-old Swede, won the “Kazakhstan Open-2013” Golf Tournament, which took place in Almaty on 19-22 September. Carlsson beat Tyrell Hatton from the UK who finished second with Spain’s Adrian Otaegui in third. (Kazinform) ASTANA CALLING / ISSUE 323 / 7
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Things to Watch • Foreign Minister to visit South America Foreign Minister Idrissov will visit three South American states next week to discuss the development of bilateral relations and trade. During his trip, Minister Idrissov will first visit Chile before moving on to Argentina, and then Brazil where he will spend time in the capital Brasilia and the country’s largest city São Paulo. • Astana to host international conference on “Green Bridge” program On September 30, an international conference on the “Green Bridge” partnership program and the “EXPO-2017” international exhibition will take place in Astana. The organizer is the Ministry of Environmental Protection of Kazakhstan in partnership with the UN Development Program.
ASTANA CALLING A WEEKLY ONLINE PUBLICATION / WWW.MFA.GOV.KZ Please send comments and questions to pressa@mfa.kz
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