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A WEEKLY ONLINE PUBLICATION / WWW.MFA.GOV.KZ ISSUE NO. 353 / FRIDAY, MAY 11 2014
Nazarbayev Announces Investor Incentives at ADB
May Brings Month of Celebrations in Kazakhstan
Historic Kazakhstan
The New State Defines its Borders, 1990-2005
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The Board of Governors of the ADB at the board’s 47th annual meeting in Astana
Nazarbayev Announces Investor Incentives at ADB Meeting Integration and innovation were among the key topics of the 47th Annual Meeting of the Board of Governors of the Asian Development Bank (ADB), held in Astana from May 2-5. In panels, delegates said that enhancing regional connections would be key to sustaining the region’s growth and weathering economic crises to come and that development in the coming decades must address inequality and environmental changes. Addressing the opening session of the meeting on May 4, President Nursultan Nazarbayev of Kazakhstan announced new measures aimed at enhancing growth and investment and ADB President Takehiko Nakao described how the ADB would innovate to respond to the region’s development. President Nazarbayev, addressing the opening session, announced a new law improving conditions for foreign investors in Kazakhstan and noted the region’s great potential for growth. “The basis of our economy is active work aimed at the attraction of investments, both foreign and domestic. We are eager to create as favourable an investment climate as possible,” President Nazarbayev told the more than 2,000 delegates to the meeting from the ADB’s 64 member countries. The new law, which will be adopted this year, will exempt investors from corporate income tax for ten years, facilitate the payment of investment subsidies and ease the processes of bringing foreign labour into the country. The new legal act is intended to provide for more stability and predictability in business-related legislation in Kazakhstan. Nazarbayev also proposed a “one stop shop” investment mechanism and said the institute of Investment Ombudsman for cooperation with investors has been established, streamlining administrative procedures. Nazarbayev emphasised Kazakhstan’s strategic position and said the rise of a new Silk Road heralded regional growth, pointing to major joint projects like the Western Europe–Western China transport corridor. “The world’s most dynamically developing region, including China, India, Japan, South Korea and many other countries, is also the most heavily populated one, which is a basis of the growing market demand,” President Nazarbayev said. “According to experts, by 2050 more than half of the world trade, investments and GDP will accumulate in Asia. This trend will be reinforced by growing urbanisation, the formation of large agglomerations, and increasing
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manufacturing capacities. This scenario leads to the rise of the region and beginning of the ‘age of Asia.’” Kazakhstan should be considered a hub for creating new chains of value-added productions, integrating financial markets, and strengthening cultural ties and multilateral cooperation, the President said. This potential means major new opportunities for businesses operating in Kazakhstan. In his speech, Nakao said, “The region is changing fast. ADB too must change. ADB must sharpen its operational focus to better help its clients overcome challenges.” The struggles he identified included poverty, which Nakao called the region’s biggest challenge, infrastructure gaps, environmental degradation and climate change. Middle income countries have their own set of problems, like rapid urbanisation, ageing populations and sustaining growth. “There is also the question of how to tap the full potential of regional cooperation and integration,” he said. ADB’s solution to help solve these problems is to strengthen operations on the ground, Nakao said. The bank will do this by supporting inclusive growth, working to close gender and other gaps. It will increase its support for adaptations to climate change, including disaster risk prevention and management. Infrastructure will remain a major focus, said the ADB president, and the ADB will use bigger investments from governments and the private sector and pay greater attention to operation and maintenance. The bank will tailor its support to the unique needs of new middle income nations, he continued, expand its support for public-private partnerships and continue its knowledge work in all parts of the organisation. To enhance ground operations, however, ADB must reform itself. “In reforming ADB, I want to focus on innovation in three areas: innovation in mobilising finance, innovation in our processes and products and promoting innovative thinking and skills in our staff,” Nakao said. He proposed combining some of the bank’s lending operations to mobilise larger investments. Efficiency could be improved, he said, by delegating more work to the ADB’s resident missions and empowering them to play a greater role in the bank’s work. Nakao also announced that the ADB and Kazakhstan were to sign a new Partnership Framework Arrangement, under which Kazakhstan’s National Fund and the ADB will work together to finance economic diversification, sustainable development and inclusive growth in Kazakhstan.
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Kazakh President Nursultan Nazarbayev (center) and honourees of the May 6 ceremony to bestow awards and ranks on members of Kazakhstan’s armed forces
May Brings Month of Celebrations in Kazakhstan Having just celebrated Unity Day on May 1 and Defender of the Homeland (Fatherland) Day on May 7, Kazakhstan is now readying to mark Day of Defeat (Victory Day) on May 9, with mass celebrations throughout the country and a military parade, air show and fireworks in Astana.
On Defender of the Homeland Day, May 7, more than 35 tanks, 40 infantry vehicles, 110 armoured transporters, 250 other types of military vehicles, 56 helicopters and military airplanes and over 4,000 infantry units marched through Astana’s main square to celebrate those who fought to defend their home soil.
On May 1, President Nursultan Nazarbayev met Astana residents in the main square in front of the Kazakh Eli Monument. He visited the ethnic village and the tents that displayed works of art and the traditional clothing, musical instruments and handicrafts of Kazakhstan’s many nations.
“The parade is a demonstration of our power, a patriotic education for our youth and an uplifting of our spirit,” Commander of the Army of Kazakhstan Murat Maykeev said.
“If a family is united, it will be strong. If a company is not united, it will not prosper. And if a country is not united, it will just crumble,” the President said in his holiday speech. He emphasised that the unity of Kazakhstan’s many peoples was at the core of the young country’s identity and statehood. “There are many different ethnic groups living in Kazakhstan and the unity of us all is the foundation of peace in our country. When people live in peace and harmony, it is real happiness. It is impossible to be happy alone; well-being depends on the condition of the whole nation. That is why we have to cherish the unity and harmony that we have reached in Kazakhstan and pass it to our children,” he said. He also urged Kazakhstan’s citizens to work for their own happiness. On May 6, the day before Defender of the Homeland Day, the President bestowed military honours and special ranks to some of the nation’s soldiers and commanders. Nazarbayev is also supreme commander of Kazakhstan’s armed forces.
Servicemen and commanders awarded new ranks or high honours include the following: Deputy Minister of Defence of Kazakhstan Okas Saparov, Commander of Air Defence Forces Nurzhan Mukanov, Deputy Commander in Chief of Air Defense Forces Marat Uashpayev, First Deputy Commander of Regional Command Marat Khusainov, Deputy Chairman of the National Security Committee Samat Abish, head of the Astana Department of the National Security Committee Kurman Elyubayev, head of the Aktobe Department of the National Security Committee Nurlan Kydyrbayev, Commander of the National Guard of the Interior Ministry Ruslan Zhaksylykov, First Deputy Commander in Chief of the National Guard of the Interior Ministry Beibit Ashkarov and others.
Presenting the awards, the President noted the role the armed forces play in setting a positive example for the nation’s youth. He also drew attention to the importance of the officers who protect the country’s borders and help maintain a peaceful nation. “The notion of the officer’s honour has never been forgotten, and its value has never been belittled. The true courage of a warrior is to be ready for self-sacrifice for the country and the people. Setting an example of service to the fatherland, you educate the younger generation and strengthen the moral foundations of our society. The state expects you to actively participate in the formation of patriotism in Kazakhstan. I am sure that you will cope with these problems,” President Nazarbayev said. “To be a general is a great honour and you should carry this rank with dignity. I wish you good health and success in your service!” he told honourees.
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May 1 Unity Day celebrations in Astana
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The New State Defines its Borders, 1990-2005 The New State Defines Its Borders, 1990-2005
With the collapse of the Soviet Union, defining the borders of Central Asia’s newly independent nations became an urgent task across the region. For young Kazakhstan, establishing borders with China, Russia and other nations was a foreign policy priority. Kazakhstan’s land border is 13,400 kilometres long (its Caspian Sea borders would be defined later, after determining the legal status of the sea) and the process of delimiting the new nation’s borders was one of the most important steps it took in establishing a lasting, sovereign state protected by international law.
Since the first days of its existence as an independent state, Kazakhstan has declared its firm commitment to the norms and principles of international law. “First of all, we declare the peaceful orientation of [Kazakhstan’s] policies and declare that we have no territorial claims to any state of the world,” announced President Nursultan Nazarbayev about Kazakhstan’s initial foreign policy direction. From the beginning, Kazakhstan has adhered to the principles of the inviolability of existing borders and non-interference in the internal affairs of other states.
The delimitation of the borders of sovereign Kazakhstan, like the other countries of the Commonwealth of Independent States (CIS), was based on the real administrative boundaries of the Kazakh Soviet Socialist Republic (SSR) with the Russian State Federative SSR, the Uzbek SSR, the Kirghiz SSR, the Turkmen SSR, and included part of the USSR’s state border with China. However, not having been independent states subject to international law until after the fall of the USSR, legally establishing the new borders was of vital importance to future relations in the neighbourhood and the world.
Upon independence, Kazakhstan’s diplomatic service declared that the foreign policy priority would be the demarcation of state borders with all neighbouring states. The process of legally defining the interstate borders with all neighbouring states was completed within a relatively short period, between 1992 and 2005. The delimitation of the borders was completed in three stages: with China, the Central Asian states and Russia.
Legitimising existing borders
The CIS countries agreed to apply the international legal concept of “uti possidetis,” or “as you possess,” which recognises the consistency of borders in the process of succession. (This principle was also used in the delimitation of borders between states in South America.) Such an approach assumes that all contentious issues arising between states will be resolved in the future through interstate peace agreements. Kazakhstan applied the law of historic succession to define its inherited territory and borders after the dissolution of the USSR. Article three of the Declaration of Sovereignty of the Kazakh SSR in 1990 said, “The territory of the Kazakh Soviet Socialist Republic within the existing boundaries is indivisible and inviolable and cannot be used without her consent.” The subsequent law on the country’s borders clearly articulates that the border can only be determined by international treaties ratified by Kazakhstan’s Parliament. The proclamation, of course, created a pressing need to map and legally define those “existing boundaries” at the state level and create mechanisms to resolve any disputes.
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Establishing the border with China
The delimitation of the Kazakh-Chinese border has a long history. Territorial disputes from the Soviet era complicated the situation. The Sino-Russian treaty of the 19th century formed a foundation for resolving border issues, but some sectors of the border still had two lines, one negotiated according to the treaty, the other the de facto border on the ground. Kazakhstan began the negotiation process on border issues with China in 1992. Within a few years, Kazakhstan and China had signed five international treaties, clearly defining the boundary between the two countries. At the conclusion of the 1994 treaty, some disputes remained regarding the areas in the East Kazakhstan and Almaty oblasts. After exploring all possible options to address this issue, the disputed territory was divided and Kazakhstan received most of the disputed 537 square km. The treaty between China and Kazakhstan recognised a border 1,782 km long. The final protocol between the governments of Kazakhstan and China on the demarcation of their shared border was signed on May 10, 2002.
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Both sides entered the negotiations with their own interests in mind, and both made compromises to see the border finally established. This long-negotiated political compromise contributed to the establishment of a strategic partnership with China. Kazakh diplomats often cite a phrase attributed to Chinese philosopher Confucius: “Politics is the daughter of history, and history is the daughter of geography.”
Establishing borders within Central Asia
The borders between what are now the independent nations of Central Asia were defined as internal administrative-territorial borders during the Soviet era. Those borders were designated only on maps, however, and not clearly marked on the ground. In the late 1980s and early 1990s, some radical groups in the region called for the revision of existing borders. In September 1999, the governments of Kazakhstan, the Kyrgyz Republic, Russia, Turkmenistan and Uzbekistan established a commission for delimiting their shared borders. The government of Kazakhstan utilised several legal documents to recognise the administrative-territorial division of the former Soviet Union, including the Alma-Ata Declaration of December 21, 1991; the Declaration on Compliance with the Principles of Cooperation within the Commonwealth of Independent States of February 14, 1992; the Declaration of Sovereignty, Territorial Integrity and Inviolability of State Borders Among Members of the Commonwealth of Independent States of April 15, 1994, and various other bilateral treaties.
A contested border with Uzbekistan
From the standpoint of compliance with the constitution of the USSR, the administrative border between the Kazakh SSR and Uzbek SSR was clearly regulated. Two hundred kilometres of the 2,351 km border, however, ran through heavily populated areas of the two countries. Negotiations to determine this border were not easy. In February of 2000, Tashkent hosted the first round of negotiations between the official delegations of Kazakhstan and Uzbekistan to
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harmonise the borders. The second round of talks, in Astana in May 2000, led to the delimitation on the ground. Despite the challenging negotiations, controversial issues have since been resolved through compromises.
Establishing the border with Russia
In his book “Strategies for the Formation and Development of Kazakhstan as a Sovereign State” (1992), President Nazarbayev notes that present-day Kazakhstan was historically a territory controlled completely by many ethnic tribes and that these tribes later composed the Kazakh nation. The independent state in its current form, therefore, is not someone’s gift to the Kazakhs, but is the historic and indigenous land of Kazakhs, and the authorities will use all constitutional means to ensure the integrity of the unitary state and the unity and inviolability of its territory. This was an important statement and laid important principles for Kazakhstan’s foreign policy. However, at the initial stage in 1992, according to Kassym-Jomart Tokayev, now chairman of Kazakhstan’s Senate, the Russian government “insisted on the ‘light’ version of the treaty [defining the countries’ borders],” suggesting Kazakhstan exclude the paragraph on recognising the territorial integrity of states. In this situation, “it took considerable effort” and the personal intervention of Nazarbayev, who spent more than one round of talks with thenRussian President Boris Yeltsin, “to persuade the Russians to change [their approach].” As a result of these negotiations, an agreement on the foundation for all following Kazakh-Russian relations was signed. After more than a decade of intensive negotiations, the important process of delimiting state borders was completed and the sovereign Republic of Kazakhstan established internationally recognised borders and settled all disputes with neighbouring states.
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Also In The News... •
Nazarbayev holds telephone conversation with Malaysia Prime Minister President Nazarbayev recently held a phone conversation with Prime Minister of Malaysia Najib Razak. The two leaders discussed bilateral relations and prospects for their development as well as international issues. At the end of their conversation, Nazarbayev invited Razak to visit Kazakhstan. (akorda.kz)
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Ambassador-at-large addresses Preparatory Committee for 2015 Nuclear Nonproliferation Treaty Review Conference The Preparatory Committee (PrepCom) for the 2015 Review Conference of the Parties to the Treaty on the Nonproliferation of Nuclear Weapons (NPT) is holding its third session at the United Nations Office in New York. The session, held from April 28 to May 9, is the last of three sessions to be held prior to the 2015 Review Conference. On April 30, the head of the Kazakh delegation, Ambassadorat-large Barlybay Sadykov, addressed the session. In his speech, he emphasised Kazakhstan’s commitment to achieving a world free of nuclear weapons and highlighted President of Kazakhstan Nursultan Nazarbayev’s non-proliferation and nuclear safety initiatives, including the adoption of the Universal Declaration of a nuclear-free World, The ATOM Project and the placement of the International Atomic Energy Agency’s low-enriched uranium bank in Kazakhstan. (un.org, mfa.gov.kz)
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Kazakhstan interested in opening UNIDO Centre for International Industrial Cooperation, increasing cooperation On May 4, Foreign Minister of Kazakhstan Erlan Idrissov met with Director General of the United Nations Industrial Development Organisation (UNIDO) LI Yong within the 47th meeting of the Board of Governors of the Asian Development Bank in Astana. Modernising industry, industrial energy efficiency, trade capacity, technological foresight and industrial statistics were discussed. “In this context, I would like to reaffirm the relevance of the early adoption of the UNIDO framework programme for Kazakhstan, which will propel our cooperation in the field of industrial development to a new level,” Idrissov said, adding that Kazakhstan is interested in attracting the organisation’s expertise in the context of the second five-year plan of the State Programme for Industrial and Innovative Development. Idrissov also urged the head of UNIDO to participate in the implementation of the Green Bridge Partnership Programme and invited UNIDO to participate in the international exhibition EXPO 2017 in Astana. (strategy2050.kz, mfa.gov.kz)
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ASEAN Committee established in Astana On May 5, Minister of Foreign Affairs Erlan Idrissov met with the ambassadors of the Association of Southeast Asian Nations (ASEAN) upon the official establishment of an ASEAN Committee in Astana. The new structure is intended to facilitate the growth of cooperation between Kazakhstan and ASEAN. (inform.kz)
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Kazakh airlines launch charter flights to European tourist cities On May 6, Kazakh national carrier Air Astana announced the launch of charter flights to several European tourist cities. Charter flights will be launched from Astana to the Greek island of Rhodes and from Almaty to Heraklion, capital of Crete; and Barcelona, Spain. The first flights are scheduled for June 14, 20 and 21 and will take place every 10 days. Tickets can be purchased through travel agencies. (kazakh-tv.kz)
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Historical film screened in Astana for Victory Day The film “Bauyrzhan Momyshuly” was screened in one of Astana’s cinemas on the eve of Victory Day and veterans of the Great Patriotic War, home front workers and pensioners were invited as guests of honour to the event. The movie tells the story of a fearless warrior and hero of the Soviet Union and was directed by famous Kazakh director Akan Satayev. The plot is based on Alexander Beck’s novel, “Volokolamsk Highway.” The film depicts the path of one of the Panfilov heroes of the Great Patriotic War on his way from lieutenant to commander of the famous guard. Organisers of the event called the screening an important educational, patriotic lesson for young people. (kazakh-tv.kz)
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First Kazakh online game, Nomads, presented in Astana The history of the Kazakh people has now been enshrined in a computer game. The first Kazakh browser-based online game, “Nomads,” was presented on May 6 at a Central Communications Service briefing by author and developer of the game Asset Ospanov, designer of the game Adil Zhaparov and Chairman of the KazBusinessMedia Fund Askar Umarov. Players can choose from many different characters through which to engage with historical events in Kazakh history. The developers hope that the game will be fun and educational. (ortcom.kz, kazakh-tv.kz)
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Kazakh wrestler wins gold at Asian Wrestling Championships Kazakh wrestler Gyuzel Manyurova won gold at the Asian Wrestling Championships, held in Astana from April 23-27. The victory is her fourth top finish in five years. Competing in the 75 kilogramme weight category, Manyurova, who is also the head coach of the women’s wrestling team, defeated Gulmira Ismatova of Uzbekistan and the Dalit wrestler Jyoti from India to reach the final round. In a closely fought final match, Manyurova beat Zhou Feng of China, 7-6. The Kazakh women’s team won two gold and three bronze medals at the event. (astanatimes.com)
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