Country Profile 2012 by Embassy of Kazakhstan to the U.S.

Republic of Kazakhstan

Country Profile 2012 Astana

Ekibastuz

Chapayev Temirtau

Oktyabrâ&#x20AC;&#x2122;sk

Atyrau

Emba

Ayaguz

Chelkar Balkhash

Aralâ&#x20AC;&#x2122;sk Beyneu

Toretam

Sary Shagan

Almaty Turkestan

Chu

Embassy of Kazakhstan 1401 16th Street NW, Washington DC 20036 Tel: +1 (202) 232 5488, Fax: +1 (202) 232 5845 email: washington@kazakhembus.com For more information on Kazakhstan, useful links, Kazakhstan photo gallery and much more, visit us at www.kazakhembus.com

Khorogos

CONTENTS

KAZAKHSTAN AT A GLANCE

Coal & Uranium and nuclear industries

Renewable energy

Mining and smelting industry in Kazakhstan

Transport and communications

Agriculture

Comments and quotes

Country overview

Kazakhstan in 10 & Economic overview

Political structure & Political progress

Banking and finance

Presidential elections 2011

National Fund of Kazakhstan

Parliamentary elections 2012

Zhanaozen events

The State Program of Accelerated IndustrialInnovative Development for 2010-2014

Civil society

National Welfare Fund Samruk-Kazyna, JSC

Middle class & Court system

People’s IPO & Development institutions

Media in Kazakhstan

Taxation

Ethnic composition

Trade regulation

Religious composition

Status report - Kazakhstan’s WTO accession

Myths in the West about Kazakhstan

President Nazarbayev’s State of the Nation Address

Kazakhstan’s position on the WTO after the creation of the Customs Union

Astana Economic Forum

Expectations about Kazakhstan’s economy

KAZAKHSTAN – ECONOMIC OVERVIEW

Development in a post-crisis period

Key economic indicators

Energy overview

Brief overview

Hydrocarbons

Kazakhstan-US strategic partnership

Kazakhstan country profile 2012

KAZAKHSTAN’S FOREIGN POLICY: MAIN ACHIEVEMENTS AND NEW GOALS

2010 President Nazarbayev’s visit to the US

112 Architecture

Kazakhstan and non-proliferation

114 Cuisine

Kazakhstan’s OSCE chairmanship in 2010

115 Music

Conference on Interaction and Confidencebuilding Measures in Asia (CICA)

116 Education

Organization of the Islamic Cooperation (OIC)

Kazakhstan’s international inter-religious initiatives & Congress of Leaders of World and Traditional Religions

Afghanistan

Iraq

KAZAKHSTAN - THE HEART OF EURASIA

121 ‘Bolashak’ (future) scholarships 122 Nazarbayev University

TOURISM

125 Kazakhstan by region 126 Exciting outdoor activities in Kazakhstan 127 Sample routes offered to tourists in Kazakhstan 128 Air Astana

Nature and geography

100 Useful information 102 Environment protection 105 Milestones of history

MAJOR CITIES

129 Astana – new capital for the new millennium 131 New horizons in Kazakhstan

CULTURE AND TRADITIONS

107 Literature 108 Lifestyle, Traditions & Museums

133 Almaty – financial and cultural hub

information

109 Sports

135 Recommended reading

110 Cinema

140 Did you know

Kazakhstan country profile 2012

Kazakhstan at a glance

Comments and Quotes ... And we work very closely with the United States, and we have achieved a lot. We work jointly on many projects. About $20 billion have been invested in the Kazakhstan economy so far. And 80 percent of all foreign investments that were directed to Central Asia ended up in Kazakhstan. And I always show this collaboration as a very shining and proud example of good cooperation. We’re ready to work shoulder to shoulder on this particular issue of nuclear safety and in other - all of the issues that we believe will involve our part of the world. Nursultan Nazarbayev, President of the Republic of Kazakhstan, Nuclear Security Summit Seoul, Korea, 26 March 2012

Twenty years ago, Kazakhstan made a decision not to have nuclear weapons. And not only has that led to growth and prosperity in his own country, but he has been a model in efforts around the world to eliminate nuclear materials that could fall into the wrong hands. So I very much appreciate his leadership... The close relationship between our two countries extends beyond just the nuclear security issue, so this meeting will give us an opportunity to discuss the cooperation that we have built over the last several years with respect to Afghanistan and the help we’ve received in supplying our troops and helping to assist the Afghan government. We obviously have commercial ties as well, and we’ll be discussing how we can deepen those. Barack Obama, President of the United States of America, Nuclear Security Summit Seoul, Korea, 26 March 2012

The United States understands that Kazakhstan is the anchor of Central Asia: stable, fast-growing and eager to participate in the modern world. We have come a very long way in a very short time. We are grateful that the United States has been such a loyal and supportive friend during this dynamic period and we thank the Atlantic Council for allowing us to examine this progress closely and discuss what it really means. Yerzhan Kazykhanov, Foreign Minister of Kazakhstan, Atlantic Council Conference 31 January 2012, Washington, DC

Well, I’m delighted to welcome my colleague, the foreign minister of Kazakhstan, a country with whom we have very friendly relations and work together on a whole range of issues, both bilaterally and regionally and globally. Kazakhstan has served in recent years as the chair of the OSCE, the chair of OIC, and has been very helpful in our efforts to stabilize Afghanistan. Hillary Rodham Clinton, Department of State 1 February 2012, Washington DC

Kazakhstan country profile 2012

Kazakhstan at a glance

Kazakhstan

At a glance

Country overview A huge country covering a territory equivalent to the whole of Western Europe, Kazakhstan has vast mineral resources, enormous economic potential and rich traditions, culture and history. The topography varies from the mountainous, heavily populated regions in the east to the sparsely populated, energy-rich lowlands in the west, and from the industrialized north, with its Siberian climate and terrain, to the arid, empty steppes of the centre and fertile south.

escendants of ancient nomadic tribes and Turkic people of greater Eurasia that later joined the Genghis Khan Empire, the Kazakhs created one of the worldâ&#x20AC;&#x2122;s last great nomadic empires in the late 15th and 16th centuries. Russia annexed their lands in the 18th and 19th centuries, moving settlers into the area. The Kazakh Republic was formed as an autonomous Republic within the Russian Federation in August 1920 and became a full Republic of the Soviet Union in December 1936. On 16 December 1991, Kazakhstan declared its independence.

As a result of the Soviet Unionâ&#x20AC;&#x2122;s sudden collapse, Kazakhstan shared with its fellow former Soviet republics fiscal chaos that included hyperinflation (about 2,960 percent in 1992), plummeting industrial production and the exodus of many of its most highly trained ethnic groups of Slavic descent. Between 1992 and 1999, the country lost two million of its six million Slavic Soviet inhabitants. A huge number of Kazakhs lost their livelihoods in the aftermath of the Soviet economic implosion. In order to stop the economic downward spiral, Kazakhstan launched major reforms and subsequently used its rising oil revenues to remake the economy

Kazakhstan country profile 2012

Kazakhstan at a glance

FACTS AND FIGURES Independence: 16 December 1991 Population: 16.7 million (as of March 2012) Location: North of Central Asia, on the Caspian Sea Capital: Astana (population over 750,000 as of April 2012) Largest city: Almaty (population 1,454,329 as of April 2012) Area: 2.7 million sq km Neighbors: Russia, Turkmenistan, Uzbekistan, Kyrgyzstan and China, as well as Azerbaijan and Iran through the Caspian Sea Boundaries: total 7,459 miles (12,012km) (without Caspian shoreline). The Republic of Kazakhstan shares its longest borders with Russia - 4,251 miles (6,846km) and China - 951 miles (1,533km). It also borders 1,183 miles (1,894km) on the Caspian Sea Comparative area: ninth largest country in the world, equivalent to the size of Western Europe. Four times the size of Texas; five times the size of France Claims: fledgling democracy Constitution: secular democracy. The Constitution was approved by referendum on 30 August 1995 and amended in 2007. It established a secular democracy that values individual “life, rights and freedoms” and divided the government between executive, legislative and judicial branches with a system of checks and balances. The amendments enlarged the powers of the parliament and raised the role of political parties, thus transforming Kazakhstan from a presidential republic into a presidential-parliamentary one Head of state: President Nursultan Nazarbayev Head of government: Prime Minister Karim Massimov Chairman of Senate: Kairat Mami Chairman of Mazhilis: Nurlan Nigmatullin Secretary of State: Mukhtar Kul-Mukhammed Foreign Minister: Yerzhan Kazykhanov Major languages: Kazakh, Russian; English is promoted as the language of international communication Major religions: Islam, Christianity Life expectancy: 62 years (men), 72 years (women) (UN) Monetary unit: 1 Kazakh tenge =100 tiyn ($1=147.4 KZT as of May 2012) Main exports: Oil, uranium, ferrous and non-ferrous metals, machinery, chemicals, grain, wool, meat, coal GDP per capita: $11,500 Internet domain: .kz

Kazakhstan country profile 2012

in accordance with Western standards. It also restructured its Soviet education system. This helped to save Kazakhstan from the financial shock that afflicted Russia. As a result, the European Union recognized Kazakhstan as a market-based economy in October 2000. The US did the same in March 2002. Kazakhstan was also the first among its CIS neighbors to pay off its debt to the International Monetary Fund – in 2000 – seven years ahead of schedule. This allowed the country to obtain a favorable credit rating, to operate financial institutions approaching Western standards of efficiency and reliability and to develop a fully funded nationwide pension program. Strong economic growth

Foreigners have invested heavily in Kazakhstan since its independence, particularly in Caspian oil. Such investments are among the key elements in Kazakhstan’s economic success. In 2001-03, investment inflow surged to 13 percent of GDP and is currently running at almost 10 times the rate of Kazakhstan’s neighbours. The country has enjoyed significant economic growth since 2000, averaging 10 percent annually until the global crisis of 2008. Although reduced in 2009, growth still remains positive and strong. Native Kazakhs make up more than half of the ethnically diverse population. Russians comprise just over a quarter. The remainder are Ukrainians, Germans, Chechens, Kurds, Koreans and Central Asian ethnic groups. All in all, more than 100 ethnic groups live in Kazakhstan. They live in harmony. In order to ensure inter-ethnic peace, the Assembly of the People of Kazakhstan was established, a unique body in the postSoviet area representing the interests of all ethnic groups. Socio-political reform

Kazakhstan is pursuing a staged democratization in all fields of social and political life. It has made notable constitutional reforms, including bolstering the rule of law, establishing free and fair elections, empowering parliament and spreading civil liberties. These were acknowledged when Kazakhstan was unanimously selected by Organization for Security and Co-operation in Europe (OSCE) member nations to chair the Organization in 2010. The country is also chairing the Organization of the Islamic Conference in 2011-12. In 2009, Kazakhstan adopted two major road maps for democracy – the “2009-12 National Human Rights Action Plan” and the “2010-20 Legal Concept”. It is also a leader in nuclear non-proliferation. President Nursultan Nazarbayev closed the infamous Semipalatinsk nuclear testing ground and obtained nuclear-free state status for Kazakhstan by eliminating the world’s fourth largest nuclear arsenal of 1,400 intercontinental ballistic missiles (ICBMs), left over from Soviet rule.

Kazakhstan at a glance

kazakhstan in 10 1. Modern Kazakhstan is built on 3,000 years of extraordinary history. The country has experienced epic moments and has been influenced by such legends as Alexander the Great and Genghis Khan. For centuries, the Silk Road provided a route through Kazakhstan for international traders and merchants carrying exotic merchandise. All this has contributed to the richness of Kazakh culture and its capacity to adapt and develop. 2. Kazakhstan’s economy is the largest and fastest evolving of the Central Asian region. Since 2001, the country’s economic growth rate has been among the highest in the world and GDP growth in 2011 was 7.5 percent, aided by the increasing value of Kazakhstan’s leading exports (oil, metal and grain). Since 1993, Kazakhstan has attracted over $150 billion of foreign direct investment (FDI) – the highest FDI per capita in the CIS. 3. Kazakhstan holds 30 billion barrels (four billion tonnes) of proven recoverable oil reserves and potential reserves of 100-110 billion barrels. Development of new oil fields, such as Kashagan (recoverable reserves: 13 billion barrels, peak projected output: 1.5 million barrels/day in 2019), will make Kazakhstan one of the world’s top 10 oil-producing nations. 4. Kazakhstan ranks first in the world in reserves of barite and tungsten, second in reserves of chromite, phosphate rock and uranium, third in reserves of copper, lead and zinc, fourth in reserves of molybdenum, sixth in reserves of gold and eighth in reserves of iron ore. The country contains almost a quarter of the world’s uranium – with production reaching 15,000 tons per year in 2010. 5. Kazakhstan has reinforced its global reputation as a democratic country via major constitutional reforms,

including the abolition of the death penalty and increased parliamentary representation. 6. Kazakhstan is diversifying its economy away from natural resources. Agriculture makes up 10 percent of GDP; wheat is a leading commodity in export trade – as is metal processing, chemicals, textiles and food processing. New information technology projects - like the Alatau IT Park – are growing. Ambitious education initiatives make the latest generation of Kazakhs among the most highly skilled in the world. Every year, 3,000 young Kazakhs are sponsored by the government to study at the world’s most prestigious education institutions, before returning home. 7. Political stability, religious tolerance and a unique location at the crossroads of China, Russia and Europe gives Kazakhstan a stabilizing role for the whole region as well as making it the perfect host for the Congress of World Religions (held in Astana every three years). 8. Kazakhstan is a forward-thinking country. President Nazarbayev is behind many ambitious projects, such as the Aral Sea dam, which will prevent the disappearance of the world’s fourth largest inland sea. The country has launched its own ambitious space program at Baikonur and plans for a pan-Asian canal to further open up trade routes between central Asia and Europe. 9. Astana, Kazakhstan’s capital, is situated at the very heart of the country. An incredible $12 billion has been invested in the city’s construction and development. Internationally renowned architects like Norman Foster and Kisho Kurokawa have left their mark on a city set to outshine many of the world’s more established capitals. 10. Eco-tourism is particularly strong in Kazakhstan, a land of vast, unspoiled, open spaces, majestic mountains (with world-class ski stations), horseback trails and increasingly vibrant, modern cities.

Economic overview Kazakhstan is a growing economic power with a strong resource base. The country has three percent of the world’s raw materials and a natural resource base of over $300,000 per capita, which is among the highest in the world - twice the level of Russia and higher than Australia. Oil plays a big role in Kazakhstan. With nearly 40 billion barrels in reserves and two percent of global production, the country has the world’s ninth largest proven reserves and is among the 20 largest oil producers. It has four percent of the global iron reserves,

eight percent of the world’s zinc reserves and four percent of the world’s chrome reserves. Two decades ago, emerging from the break-up of the Soviet Union, the economy of Kazakhstan was half the size it is today. Isolated from the world economy, it faced the immense challenge of economic transformation. Over the past decade, the country has made impressive policy strides, absorbed large resource-based earnings responsibly, progressed towards developing a strengthened public management

Kazakhstan country profile 2012

Kazakhstan at a glance

Economic development in 2011

7.5%

7.4%

$33.7bn (2.4%)

Real GDP growth

Index of consumer prices

Investments in fixed capital stock

and business climate, and allocated resources for diversification of economy to sustain growth. Kazakhstan grew rapidly during 2000-07. GDP growth averaged 10 percent and average real income more than doubled. GDP per capita rose from $5,982 in 2000 to $11,245 in 2011 and poverty incidence fell from 46.7 percent to 6.5 percent over the same period - especially remarkable since many experts doubted Kazakhstan could even survive 20 years ago. It is in the final stage of negotiations to enter the World Trade Organization and aims to become one of the top 50 most competitive economies in the world. It has a proven history as an attractive location for foreign direct investment (FDI), generating more than $150 billion this way since 1993. Kazakhstan weathered the global financial crisis well, thanks to a dexterous response combining fiscal relaxation with bank stabilization measures. In 2009, the government announced large-scale support measures, such as the recapitalization of banks and support of the real-estate and agriculture sectors, as well as SMEs. The total value of the stimulus programs represented 14 percent of the country’s GDP ($20 billion). As a result of the global economic crisis, GDP slowed to 1.2 percent in 2009, but according to the results of 2010 and 2011, the growth rate has increased to 7.3 and 7.5 percent. Kazakhstan has made good use of its rich natural resources, such as oil, gas and uranium. In the early 1990s, President Nazarbayev had the foresight to create a fund, based on the Norwegian model, which preserved oil and gas revenues for our children and grandchildren. This so-called “fund for future generations” has now accumulated over $47 billion and is the cornerstone of managing and preserving the country’s oil wealth. Kazakhstan is active in integration processes on a regional level as well as on a global one, proven by the current Customs Union with the Russian Federation and Belarus. The Customs Union, with a market capacity of about 170 million people, provides additional possibilities for investors and new horizons for effective realization of investment projects in Kazakhstan. The country’s competitive advantage is its more favorable business environment in comparison with the other countries in the Customs Union. According to the World Bank Doing

Kazakhstan country profile 2012

Business 2012 report, the Russian Federation and Belarus rank 120th and 69th respectively, while Kazakhstan is in 47th place. Kazakhstan has also achieved significant results in the Human Development Index (HDI), ranking 68th among 187 countries, according to the United Nations 2011 Human Development Report. In order to ensure the further development of a competitive economy and industrial modernization, Kazakhstan adopted a five-year State Program for accelerated industrial innovative development and an industrialization map. During the past two years, the country has built approximately 400 new factories. Sixty new enterprises are up and running at full capacity, and have already produced goods worth $2 billion. Today new large-scale projects in the sphere of high processing of our natural resources are taking place. ■■ The government has begun construction of the first module of the Balkhash Thermal Station, with power of 1320 MW and worth $2.3 billion, in order to solve the problem of energy shortages and energy dependency in the thriving southern regions (which have a shortage of electricity.) One of the largest energy projects in Kazakhstan – the Moinak hydroelectric power station – was launched in May 2012 and now operates at its full capacity of 300 MW. Thus the problem of energy deficits in the southern region is almost solved. ■■ The Kazakhstan section of the international road corridor “Western Europe – Western China” - which will pass through the country’s southern regions and go to Russia via Aktobe - will be completed by 2015. The construction of two new rail lines – ZhezkazganBeyneu (1,200 km) and Arkalyk-Shubarkol (200km) will begin in central Kazakhstan. These projects will provide infrastructure in developing regions of the country and will make Kazakhstan a transit state. ■■ Kazakhstan plans to establish a deep-refining complex at the Atyrau Refinery, priced at $1.7 billion, which will increase production of petrol almost three times – up to 1.7 million tons - and diesel fuel – up to 1.4 million tons - and provide these fuels to Kazakhstan. ■■ Kazakhstan’s first integrated gas and chemical complex, worth $6.3 billion, which is under

Kazakhstan at a glance

$82.7bn or 40% of GDP

2.8% of GDP

Total international reserves (including reserves of the National Fund)

Government and government-guaranteed debt

Kazakhstan consists of five large economic regions: ■■ North Kazakhstan — efficient grain economy, extraction of iron ore and coal, mechanical engineering, production of oil products and ferroalloys and energy. ■■ East Kazakhstan – efficient non-ferrous industry, energy, mechanical engineering and forestry products. ■■ West Kazakhstan is one of the largest oil and gas extraction regions. ■■ Central Kazakhstan – efficient ferrous and non-ferrous industries, mechanical engineering and cattle breeding. ■■ South Kazakhstan – cotton, rice, wool, grain, fruits, vegetables, efficient non-ferrous industry, instrument manufacturing, light industry, food production, fish farming and forestry products.

construction about 30km from Atyrau, will be commissioned in 2015. The complex is designed to produce 800,000 tons of polyethylene and 500,000 tons of propylene annually. ■■ The government plans to begin construction of a gasprocessing plant with the capacity of five billion cubic metres a year on the Karachaganak field. ■■ Kazakhstan plans to launch a pipeline system that will provide gas supply to the central region of the country, including its capital. In addition, the government is grooming state-owned enterprises for eventual privatization. This begins with a People’s IPO program that should see 5-15 percent stakes in KEGOC (Kazakhstan Electricity Grid Operating), Air Astana and KazTransOil being floated by the end of the year. Kazakhstan’s economic regions

Russia

North Kazakhstan

Astana Karaganda

West Kazakhstan

East Kazakhstan

Central Kazakhstan Lake Balkhash

Baikonur Aqtau South Kazakhstan Shymkent

Aral Sea Caspian Sea

Almaty China

Uzbekistan

Kyrgyzstan

Turkmenistan

Kazakhstan country profile 2012

Kazakhstan at a glance

Political structure Kazakhstan is a presidential-parliamentary republic. The Constitution of the Republic of Kazakhstan, approved through a national referendum in August 1995 and ratified the following month, replaced an earlier “Soviet-style” constitution that was adopted in the wake of independence from the Soviet Union. The Constitution provides for a democratic and secular state. State governance is divided among the executive, legislative and judicial branches. The President is the head of state. The President is also the commander-in-chief of the armed forces. He has the power to veto legislation passed by the parliament. Kazakhstan has a bicameral parliament, made up of the Mazhilis (the lower house) and the Senate (the upper chamber). Since 2007, the number of MPs has been increased: ■■ from 39 to 47 members in the Senate. The President appoints 15 of them from among prominent public figures, academics, intellectuals, etc. ■■ from 77 to 107 members in the Mazhilis, the main legislative body. A total of 98 of the Mazhilis deputies are elected in a nationwide constituency on the basis of proportional party lists. Nine of the Mazhilis deputies are elected by the Assembly of the People of Kazakhstan, an umbrella grouping of more than 100 ethnic groups in Kazakhstan. As a result of the January 2012 parliamentary election, the country’s three major parties - the ruling Nur Otan Party, pro-business Ak Zhol (the Bright Path) and the Communist People’s Party of Kazakhstan form the Parliament. The Prime Minister chairs the Cabinet of Ministers and also serves as Kazakhstan’s head of government. There are three deputy prime ministers and 17 ministers in the Cabinet. Since Kazakhstan gained independence in 1991, the country has held three presidential elections: in January 1999 – first ever alternative presidential elections with four alternative candidates for the presidency, observed by OSCE; in December 2005 – presidential elections with five alternative candidates, two being major opposition leaders; and on 3 April 2011 – presidential elections with three alternative candidates. President Nazarbayev won the last elections in a landslide. Kazakhstan invited more than 1,000 international observers to monitor the elections and demonstrated a high level of openness and transparency. Although the Office for Democratic Institutions and Human Rights (ODIHR)/OSCE came up with a number of criticisms and recommendations for improvement, many observers assessed the conduct of elections as

Kazakhstan country profile 2012

“free and fair” and agreed that the elections reflected the will of the people, who voted for modernization, stability and economic prosperity. In May 2007, in accordance with the OSCE’s recommendations, the Constitution was amended to limit the presidency to two terms, reduce the presidential term from seven years to five, and increase the powers of parliament to make the executive branch more accountable to it. As in the United States, Kazakhstan’s President annually delivers his “State of the Nation” address at a joint session of parliament, offering the people his vision - a so-called “road map” - for future development of the country. Comprehensive development targets are outlined by President Nazarbayev every year (for more information, see section President Nazarbayev Outlines Major Development Priorities in His State of the Nation Address). Political progress

Kazakhstan began to reform its political system immediately after becoming independent. At the time there was economic recession, hyperinflation (up to 3,000 percent) and a drastic decline in living standards. The groundwork for a market-based economy, political pluralism, a multi-party system, independent media, non-governmental organizations (NGOs) and a vibrant civil society were non-existent. Kazakhstan chose to build the country based on democratic values by joining the OSCE and signing the Helsinki Final Act and the Paris Charter. The new political system developed in four stages. During the first stage (1990-93), Kazakhstan dismantled the previous Soviet-style political structure and established the basis for the development of the parliamentary-presidential political system. The second stage (1993-95) started with determining a new model of political development that reflected the political, economic, social, cultural, psychological, geopolitical and ethnic specificities of the country. The first Constitution was adopted, the first elections to parliament and the newly established local government bodies (Maslikhats) were held. For the first time in the history of Kazakhstan, the executive, legislative and judiciary bodies were defined as independent branches of government. The third stage (1995-98) brought Kazakhstan to the 1995 Referendum of the new Constitution and to the election of a professional bicameral parliament. During this period, Kazakhstan also shaped its long-term vision of strategic development and in 1997 President Nazarbayev announced the new “Kazakhstan 2030” national strategy, a

Kazakhstan at a glance

road map for the country’s future growth, which identified seven national priorities through the year 2030: ■■ National security. Ensure development of Kazakhstan as an independent sovereign state preserving its complete territorial integrity; ■■ Safeguard and strengthen domestic political stability and national unity; ■■ Economic growth based on an open-market economy, with high levels of foreign investments and internal savings. Achieve realistic and sustainable rates of economic growth; ■■ Health, education and well-being of the citizens of Kazakhstan. Improve the living standards, health, education and opportunities of Kazakhs and improve the environment in the country; ■■ Energy resources. Through rapid increases in extracting and exploring oil and gas, effectively utilize Kazakhstan’s energy resources, with the aim of gaining revenues to engender stable and diversified economic growth and improved living standards; ■■ Develop transportation and communications infrastructure to enhance national security, political stability and economic growth. ■■ Establish a professional corps of civil servants capable of acting as representatives of the people in achieving national priorities. The fourth stage of political development (1998-2007) helped Kazakhstan to prioritize the process of democratic development and bring it into step with economic improvement. Through the Democratization Program of 1998 and efforts to expand the power of the Parliament, Kazakhstan came to understand the importance of a strong parliament, political parties and civil society. Therefore, in 2002 Kazakhstan established the institution of the Ombudsman on human rights, in 2003 the Human Rights Commission and in 2006 the State Commission on Democracy, which serve as fora for dialogue on further democratization. It also adopted the 2003-05 Program of the state support of non-governmental organizations and the 2006-11 Concept of Civil Society Development. These helped Kazakhstan move to the fifth stage of political development (2007-present). Its goal is to ensure a steady progress on the fundamental principles of establishing a democracy and civil society that will serve as a model for other countries in Central Asia. Since 2007, Kazakhstan has made notable advances in constitutional reforms that were designed to establish genuine democracy and vibrant civil society. The reform included laws that amended the Constitution, improved elections, provided judicial reform, reduced the presidential term from seven to five years, increased the powers of parliament, introduced proportional representation to elect members of the

Government President: Mr Nursultan Nazarbayev (at the split of the USSR, elected President 1 December 1991; as per new, amended Constitution, elected to the first seven-year term on 10 January 1999; re-elected to the second seven-year term on 4 December 2005; re-elected to the third five-year term on 3 April 2011) Prime Minister: Mr Karim Massimov (since January 2007) Chairman of the Senate of the Parliament (upper chamber): Mr Kairat Mami (since April 2011) Chairman of the Mazhilis of the Parliament (lower chamber): Mr Nurlan Nigmatullin (since January 2012) Secretary of State Mr Mukhtar Kul-Mukhammed (since January 2012) Other members of the Government First Deputy Prime Minister: Mr Serik Akhmetov

Minister of Economic Integration Affairs: Mrs Zhanar Aitzhanova

Deputy Prime Minister: Mr Erbol Orynbayev

Minister of Labor and Social Protection: Mrs Gulshara Abdykalikova

Deputy Prime Minister: Mr Kairat Kelimbetov Minister of Industry and New Technology: Mr Aset O Issekeshev Minister of Foreign Affairs: Mr Yerzhan Kazykhanov Minister of Defense: Mr Adilbek Dzhaksybekov

Minister of Oil and Gas: Mr Sauat Mynbayev Minister of Transportation and Communications: Mr Askar Zhumagaliev Minister of Agriculture: Mr Assylzhan Mamytbekov Minister of Environment: Mr Nurlan Kapparov

Minister of Internal Affairs: Mr Kalmukhanbet Kassymov

Minister of Healthcare: Mrs Salidat Kairbekova

Minister of Justice: Mr Berik Imashev

Minister of Education and Science: Mr Bakytzhan Zhumagulov

Minister of Finance: Mr Bolat Zhamishev Minister of Economic Development and Trade: Mr Bakhytzhan Sagintayev

Minister of Culture and Information: Mr Darkan Mynbay Minister of Emergency Situations: Mr Vladimir Bozhko

Kazakhstan country profile 2012

Kazakhstan at a glance

Mazhilis (parliament) and established a party-based parliamentary system. The law amending the Constitution was signed by President Nazarbayev on 21 May 2007 as a result of the joint work of the State Democracy Commission and Ad Hoc Working Group. This law enlarged the powers of parliament and raised the role of political parties, thus transforming Kazakhstan from a presidential into a presidential-parliamentary republic. All of the efforts were acknowledged when Kazakhstan was unanimously selected by OSCE member nations in 2007 to chair the Organization. The OSCE chairmanship, which Kazakhstan took over in 2010, encouraged the country to continue strengthening democracy. In February 2009, Kazakhstan signed into law new legislation regarding the media, elections, political parties and local government. Through close cooperation and intensive discussions with NGOs, political parties and OSCE institutions, Kazakhstan incorporated many of their proposals into a final draft of the new legislation. The ODIHR and the Office of the Representative on the Freedom of the Media were very active and most helpful in bringing Kazakhstan’s laws in line with OSCE standards. As charge d’affaires of the US Mission to the OSCE, Kyle Scott stated at the OSCE Permanent Council in Vienna: “This legislation marks a step forward on Kazakhstan’s path to democracy.” The rule of law has been affirmed by the Constitutional Council and regional courts, which have recently issued a series of rulings upholding the rights of individuals, often against state and local authorities, notably in cases involving religious freedom. The law on elections

The renewed Constitutional Law “On Elections in the Republic of Kazakhstan” of 21 June 2007 introduced proportional representation, a political party-based system for election to the Mazhilis. The Assembly of the People of Kazakhstan gained the status of a constitutional body together with a fixed quota of seats - nine mandates in the lower chamber of the parliament. The law also envisions the procedure by which the government is formed by the parliamentary majority party. Depending on the outcome of the elections, partial state funding of political parties was introduced. Maslikhats became the basis of local self-government. To date a total of 778 amendments and addenda have been introduced to the law, including those recommended by ODIHR/OSCE, Kazakhstan’s human rights organizations, and a number of US NGOs, such as Freedom House. The law now guarantees representation of at least two parties in parliament, even if one of them does clear the seven percent threshold. The law excludes the possibility of electing a one-party parliament, makes

Kazakhstan country profile 2012

it mandatory for the media to provide equal coverage for candidates and parties, including the period of nomination and registration, cancels any requirements for foreign observers to have any relevant experience to monitor electoral process and decentralizes the authority of the Central Election Commission in favor of local election commissions. Local election commissions have greater authority in organizing the electoral process, such as determining their schedules to make them more convenient for voters, increasing salaries for non-public servant members of election commissions during election periods and authorizing the Central Election Commission to strictly regulate the process of issuing absentee ballots. On 18 August 2007, the early elections to the parliament took place (as per the amended Constitution). This was the first election to the new party-based parliament, thus signalling the gradual move of Kazakhstan from a strong presidential form of rule toward a parliamentary majority system. The law on political parties

Seven amendments signed into the law on political parties partly reflect recommendations made by the OSCE and Kazakhstan’s human rights community, which works closely with US human rights NGOs, including Freedom House. The original goal of the amendments was to further liberalize and expand the space for political debate. The law significantly reduces the number of requirements for registering a political party (in the new text of the law, even a party that submits erroneous lists of its members cannot be denied registration on these grounds), decreases required membership size for a party to be registered (now a party needs to have only 600 members in each of the country’s regions and 40,000 members nationwide to be registered as a national political party), simplifies the registration process and the funding of political parties to strengthen their role in public life, regulates the legal and technical process of establishing a political party as a result of merging, incorporation, split-up or split-off, as was recommended by the ODIHR, and provides public financing of political parties. The law on mass media

The law on mass media addressed concerns voiced by the media community. It has been amended to increase the rights of journalists and the media to ensure greater selfregulation. The amendments reflect the recommendations of the ODIHR. The law removes administrative barriers and re-registration requirements for mass media and extends the rights of journalists. For example, media representatives are not required to ask for permission to use recording equipment when conducting interviews. The law also ensures the

Kazakhstan at a glance

right of a citizen to demand retraction of published defamation or slander if a person who published this information cannot support the allegations with facts and denies this right to citizens, thus upholding the adversarial principle in the court’s deliberations. On 28 January 2009, the then OSCE Representative on Freedom of the Media, Miklos Haraszti, welcomed the adoption of a number of amendments to Kazakhstan’s media law and underscored the need for further democratization of media governance. “I welcome the easing of administrative burdens on the media, as well as the fact that civil society was involved in the discussion about the changes,” Haraszti wrote in a letter to Kazakhstan’s then Foreign Minister, Marat Tazhin, and then Culture and Information Minister, Mukhtar Kul-Mukhammed. “However, the process of liberalization of Kazakhstan’s media law should continue, because the current body of law, notwithstanding these useful amendments, still fails to meet several international standards.” He provided the authorities with a list of the most important reforms that still need to be carried out, including: ■■ The media market should be demonopolized; ■■ Registration should be managed by an independent body, and should be declarative and not permissive; ■■ The use of closure or confiscation of circulation as a penalty should be abolished; ■■ Libel and insult should be decriminalized; ■■ Only officials should be in charge of protecting classified information; breach of secrecy by others, including journalists, should not be criminalized. Haraszti offered his office’s assistance to help the Kazakh government carry out further reforms in the field of media legislation. The law on local self-government

The Law on local self-government codifies local selfgovernance in the regions (oblasts), districts, cities, districts within cities, towns and villages, significantly increases the political role of Maslikhats (local legislative bodies) and improves the effectiveness of a “checks and balances system” between Maslikhats and Akimats (local executive bodies). The law reflects the experience of both France and Britain in providing local self-governance. It includes attributes of the European Charter on local selfgovernment, is generally in line with the final document of the 1990 Copenhagen Meeting and reflects the vision of the United States on independence of local governance. Members of Maslikhats are elected by voters of a region. They approve regional development programs, claim the regional budget, and are accountable to voters. Voters have the right to request a report on the work of Maslikhats deputies as well as to recall them in case of a breach of duties. Akims (mayors) appointed by the

President of Kazakhstan take office only after approval by Maslikhat. They are accountable to Maslikhats on budget issues. The law also lowers (to 51 percent) the needed majority for Maslikhats to vote Akims out of office. Kazakhstan has also signed and ratified 35 major international instruments aimed at upholding human rights and civil liberties. These include international treaties on civil, political, economic, social and cultural rights, as well as conventions of the International Labour Organization, the optional protocol to the International Treaty on Civil and Political Rights and the protocol to the Convention Against Torture. REFERENDUM-2020 and Kazakhstan’s commitments to democracy

2011 began with a jump-start for political life in Kazakhstan with the initiative of a group of citizens to hold a national referendum to extend the incumbent President’s term of office until 2020. The logic behind their proposal was that under President Nazarbayev Kazakhstan has prospered, establishing good governance, dynamic economic growth and basic rights and freedoms for its citizens. As a young nation, Kazakhstan still faces tough challenges in an unstable environment. Those in favor of the referendum argued that in order to guarantee the continuity of economic reforms and political modernization, Kazakhstan needed long-term stability, which President Nazarbayev best ensured. This initiative generated wide support. More than five million people, or 55 percent of registered voters, signed a petition in favor of holding the referendum. Parliament also approved the initiative and adopted constitutional changes to pave the way for the referendum. But President Nazarbayev chose to adhere to democratic principles by vetoing the initiative. The matter was also sent to the Constitutional Council of Kazakhstan to check its compliance with the country’s Constitution. The Council ruled that it contradicts the provisions of the Constitution. The President announced his full agreement with the conclusion of the Constitutional Council. Not to disappoint the supporters of the initiative, he offered a compromise solution by calling early presidential elections, thus agreeing to cut his term of office by two years. Later, 3 April 2011 was set as the date for presidential elections. The President’s decision not to create a precedent that could have been interpreted as a setback for the fledgling democracy was overwhelmingly appreciated in the international community. In a letter to the President, US legislators said they “commended the decision of the President” and stated that “the West was right to pin its hope on Kazakhstan as a stabilizing partner committed to democracy and the rule of law in one of the world’s tougher neighborhoods.”

Kazakhstan country profile 2012

Kazakhstan at a glance

Presidential elections 2011 Kazakhstan as an emerging democracy spared no effort to ensure that its presidential election was free and fair, upheld high international standards and remained fully open for international and domestic observers. Kazakhstan’s Central Election Commission confirmed applications from 11 presidential candidates. Nominees from three political parties contested the presidential campaign: acting President Nursultan Nazarbayev from the Nur Otan Party, Secretary of the Communist Party’s Central Committee, Zhambyl Akhmetbekov, and Senator Gani Kasymov from the Party of Patriots. Another candidate for the presidency, the leader of the Zheltoksan/ December/patriotic movement, Mels Eleusizov, filed an application on the last day of the nominations period. On 3 April 2011 the presidential election was held. The incumbent President, Nursultan Nazarbayev, won with a landslide victory. According to the Central Election Commission of Kazakhstan, the following was the distribution of votes among the candidates: ■■ Communist Zhambyl Akhmetbekov won 1.36 percent of all the votes. ■■ Mels Eleusizov, leader of the Environmental Union “Tabigat” (“Nature”) - 1.15 percent ■■ Gani Kasymov, leader of the Patriots Party – 1.94 percent ■■ Incumbent President Nursultan Nazarbayev, Nur Otan Party – 95.55 percent For western onlookers, the figure might seem too high to be true. However, observers who visited Kazakhstan during the elections attested to the genuine popularity of the leader among the citizens. The election confirmed the results of a survey conducted in February 2011 by the International Republican Institute/National Endowment for Democracy, which indicated a 90 percent approval rate for Mr Nazarbayev. To ensure open and transparent elections, Kazakhstan welcomed 1,059 observers, including 357 from the ODIHR/OSCE, 426 from the Commonwealth of Independent States (CIS) observer mission, 13 from the Shanghai Cooperation Organisation (SCO) observer mission, seven from the Turkic Speaking Countries Parliamentary Assembly (TURKPA), five from the Organization of the Islamic Conference (OIC), eight from the Council of Europe Parliamentary Assembly (PACE), 80 from OSCE Parliamentary Assembly, 163 from 25 different countries and 90 foreign-media representatives. A majority of the observers confirmed that the election was “free and fair”. The head of the CIS observation mission, Sergey Lebedev, said: “The necessary conditions have been created in the Republic for international observation of the election, attesting to the openness of

Kazakhstan country profile 2012

the electoral process. Furthermore, the mission concluded that the legislation of the Republic of Kazakhstan makes it possible to hold free and democratic elections on the basis of universal, equal and direct suffrage.” Election observers’ feedback

The head of the SCO observation mission, Muratbek Imanaliyev, also declared the election to be free and transparent. The head of the observation mission sent by the Parliamentary Assembly of the Turkic-Speaking Countries, Aidyn Mirzazade, considered the presidential election in Kazakhstan to be legitimate and in compliance with all international democratic standards. The elections were also monitored by a group of US political and economic analysts from the Center for Strategic and International Studies, the Institute for New Democracies, the Hudson Institute, the Georgetown University and The Jamestown Foundation. On 4 April 2011 the group issued the “Independent Observer Mission for the Presidential Election in Kazakhstan: Post-Election Assessment.” It found: ■■ The electoral process was generally well administered and transparent at almost all of the 65 polling stations that were visited; ■■ Organizational errors or significant lapses seemed rare and could not detract from the overall impression of a decently run electoral process; ■■ Electoral commission members were invariably open and forthcoming with information about technical aspects of the process; ■■ The turnout rate for these elections was extraordinarily high at 89.9 percent. This bespeaks a yearning to maintain stability and political continuity in Kazakhstan. Voters often said that they valued the stability, security, and steadily increasing living standards in their country. They contrasted this with the chaos engulfing many Muslim countries, from North Africa and the Middle East to Afghanistan and Kyrgyzstan next door; ■■ In most places election commission members had undergone training ahead of the presidential election; ■■ Improvements in electoral process were found by the delegation of the Parliamentary Assembly of the Council of Europe. The head of the delegation said: “The PACE has observed elections in Kazakhstan in the past and is pleased to state progress from one election to another in this country. The delegation is united in its view that despite certain imperfections that invariably mar all elections in any country, the outcome of this vote truly reflects the will of Kazakhstan’s electorate.”

Kazakhstan at a glance

The ODIHR/OSCE observer mission, which usually gives a cautious assessment of the elections in Kazakhstan, in its statement acknowledged improvements compared to previous elections. It stated that “compared to the last presidential elections, the media provided more equality in covering candidates in the news programmes.” At the same time, it came up with a number of criticisms and recommendations for further improvements needed in the electoral process. Kazakh authorities have committed to continue working with ODIHR/OSCE on its recommendations in a cooperative manner. Against the backdrop of the positive assessment of other international observers, ODIHR’s focus on irregularities caught everyone’s attention. It is a widely held view in Kazakhstan that the ODIHR observers did not grasp the free and transparent atmosphere in which the election was held, as well as the significant progress in Kazakhstan in this direction. The ODIHR estimations did not reflect the fact that the authorities and society exercised political will and aspiration to facilitate the elections matching international standards. Global response

The international community also recognized the legitimacy of the elections. Among the world leaders who congratulated Kazakhstan were French President Nicolas Sarkozy, Indian Prime Minister Manmohan Singh, Russian President Dmitry Medvedev, Chinese President Hu Jintao and Turkish Prime Minister Recep Tayyip Erdogan. US congressmen, including Gregory Meeks, Michael Honda, Eni Faleomavaega, John Conyers, Laura Richardson and Madeleine Bordallo, said in their congratulatory message to the President: “Although we are fully aware that the election is not without criticism, we commend you for inviting more than 1,059 international observers to monitor the conduct of the electoral process.” US reaction

During the meeting of the House of Representatives on 7 April 2011, Rep. Faleomavaega stated: “Since its independence, Kazakhstan has fully supported USled efforts against nuclear proliferation and, under the leadership of President Nazarbayev, Kazakhstan continues to provide indispensable aid to US troops in Afghanistan. I am proud of Kazakhstan’s accomplishments and, once more, I congratulate President Nazarbayev on his re-election as President of Kazakhstan. I have every confidence that he will spare no effort in delivering stability, security and prosperity for and on behalf of the people of the Republic of Kazakhstan.” The US Government was among the first to offer its opinion on the election results. The US Embassy in Astana issued a statement on 4 April 2011, which read: “We congratulate President Nursultan Nazarbayev on his re-

election as President of the Republic of Kazakhstan. We look forward to continuing to work with him and the people of Kazakhstan to implement our broad-ranging strategic partnership. “We endorse the preliminary conclusions of the Organization for Security and Cooperation in Europe (OSCE). We appreciate the improvements it noted. We urge the government of Kazakhstan to rapidly address the shortcomings the report highlighted. We welcome Kazakhstan’s commitments to further liberalize the political environment and believe that continued improvements in the electoral process are critical components.” The President’s priorities

In his inaugural speech on 8 April 2011, President Nazarbayev outlined the major priorities of his new term. Democratic reforms featured highly in his speech. The President said that he always envisioned Kazakhstan “as a modern and strong nation, an equal partner of advanced powers”. That is why he and his team are building Kazakhstan “as an open economy and fullfledged democracy”, he said. The pace of reform in Kazakhstan, he added, was “higher than in any other developed countries, where it took them centuries to develop their democracies.” He reaffirmed his commitment and determination to the further “democratization of the society.” He vowed to seek the best way of ensuring checks and balances in the government system through “expanding powers of the Parliament and responsibilities of the Government.” He also spoke in favor of decentralizing power and delegating more authority to the local regions. The Kazakh leader also promised to “further improve the electoral process.” He underscored the need for “developing a political culture.” He noted the absence of “black PR” during the elections. The elections were held in “a stable atmosphere, without extreme confrontation,” he said, which should be the direction for future election campaigns. “Only this way will it be possible to develop real democracy and an efficient multiparty system,” he added. The President also vowed to promote “responsible and free media.” He underlined, too, the importance of making sure that “every citizen is equal before the law.” For that to happen, he expressed his willingness to “take new steps to further improve the judicial system.” “An uncompromising fight against corruption” is another priority for the re-elected President. There will be more “rigid actions in place against corruption through criminal prosecution and eliminating loopholes in the laws,” he said. He also assured citizens that there would be “adequate protection of rights and properties of individuals and legal entities.”

Kazakhstan country profile 2012

Kazakhstan at a glance

Political parties

Kazakhstan’s law on political parties prohibits parties based on ethnic origin, religion, or gender. There are currently nine political parties registered in the country - the Nur Otan People’s Democratic Party, the Ak Zhol Democratic Party of Kazakhstan, the Communist People’s Party of Kazakhstan, All-National Social Democratic Party, the Aul (Village) Kazakhstan Social Democratic Party, the Party of Patriots of Kazakhstan, the Adilet Democratic Party, the Rukhaniyat Party, and the Communist Party of Kazakhstan - compared to 13 in 2006.

Four parties representing supporters of the current Government merged by the end of 2006, and as a result “Nur Otan” - a new pro-presidential, pro-reform party able to effectively represent the interests of its numerous supporters - emerged on the political stage of Kazakhstan. Also in 2006 a leftist All-National Social Democratic Party was registered, joining the ranks of several other opposition parties. The beginning of 2007 saw a robust process of mergers and consolidation of political parties, including opposition ones in particular, in the run-up to parliamentary elections on 18 August 2007.

Parliamentary elections 2012 voter turnout january 2012

Astan a cit Almaty y city Akmo la obla st Aktob e obla st Almaty oblas t Atyrau oblas t East-K azakh stan o Zham blasts byl ob last WestKazak hstan Karag oblas andy t oblas Kosta t nay o blast Kyzylo rda ob last Mang ystau oblas Pavlo t dar ob last North -Kaza khsta South n obla -Kaza st khsta n obla st

80.74%

People’s Democratic Party “Nur Otan”

53.32 % %

41.38

78.01 % 78.4% 92.6% 83.55 % 80.21 % 80.83 % 71.9% 75.2% 84.83 % 80.95 % 74.2% 71% 80.7% 78.76 %

7.46%

Democratic Party of Kazakhstan “Ak Zhol”

7.20%

Communist People’s Party of Kazakhstan

1.59%

All-National Social Democratic Party

1.46%

Kazakhstani Social-Democratic Party “Aul”

0.89%

Party of Patriots of Kazakhstan

0.66%

Democratic Party “Adilet”

Kazakhstan country profile 2012

On 16 January 2012, Kazakhstan passed a historic milestone – elections that brought about a pluralistic Parliament in which at least three parties will be represented. The elections were calm and orderly, including in Zhanaozen. According to preliminary results from the Central Election Commission, three parties met the seven percent threshold required to enter the Mazhilis, the lower house of Parliament: Nur Otan, Ak Zhol and the Communist People’s Party. The people of Kazakhstan voted enthusiastically in the elections. The Central Election Commission estimated that 6,980,000 people voted – 75.07 percent of the total number of voters. At the previous Parliamentary elections, the overall turnout was lower, at about 64.56 percent. For the breakdown of voter turnout by city and oblast as of 15 January 2012, see left. Kazakhstan’s Foreign Ministry organized voting at 56 polling stations overseas. The turnout was very high compared to the figure in Kazakhstan – 8,406 Kazakh citizens abroad or 93.55 percent of those included in the voters’ list. At the previous parliamentary elections on 10 August 2007, 3,090 out of 4,771 citizens living outside the country voted – 64.70 percent. The elections were open and transparent and were monitored by 819 international observers. Those included 309 representatives of the OSCE/ODIHR, 262 from the CIS observer mission, 46 from the OSCE Parliamentary Assembly,

Kazakhstan at a glance

15 from the PACE, 11 from the SCO observer mission, nine from the Cooperation Council of Turkic Speaking States, seven from the OIC, 10 from the TURKPA, and 150 others from 29 countries. In addition, 156 foreign-media representatives covered the elections. All international organizations made independent assessments and conclusions based on their own observation of the electoral process. OSCE observations

OSCE issued its Statement on Preliminary Findings and Conclusions. But even OSCE’s assessment could not ignore improvements. In particular, OSCE said: “The elections were well administered at the technical level and the observers noted legal changes aimed at ensuring representation of at least a second party in parliament, but the authorities did not provide the necessary conditions for the conduct of genuinely pluralistic elections.” It also noted: “On Election Day, voting was assessed positively by the observers, but the counting process significantly lacked transparency and respect for procedures, with cases of fraud noted. In many cases, it was not possible for observers to determine whether voters’ choices were honestly reflected.” The Central Election Commission continues to work with the OSCE but came up with a response, disagreeing with most of its observer mission’s criticisms and conclusions. On the subject, the Foreign Ministry of Kazakhstan stated that “Kazakhstan took note of the preliminary assessment and conclusion of the ODIHR/OSCE mission. At the same time, we believe the mission did not take a balanced approach to evaluating the pre-election process and the voting.” Investigating complaints

The law enforcement agencies have made every effort to ensure transparency and compliance with the law. The Prosecutor General’s office, which is the central body to look into election-related complaints, has considered all of the complaints and took necessary action on all of them. According to a spokesperson at the Prosecutor General’s office, “During the electoral period, including Election Day (104), the total of 536 appeals, including 64 on election to the Mazhilis of the Parliament and 472 on election to Maslikhats, were submitted to the prosecution authorities. In general, information on violations was not confirmed in the course of corresponding verification. Cases when reports on violation were substantiated and reliable are isolated. Measures stipulated by the law have been taken on each case.” As for the so-called “violation map”, prepared and disseminated on the internet by local NGO “Ar.Ruk.Khak”, headed by Bakhytzhan Toregozhina, which contained 300 messages of violation of the election law, the

Prosecutor General’s office has examined 296 of them. In 281 cases, or 96 percent of cases, information was not confirmed. The inspection has shown that “the site published deliberately misleading and flagrantly false signals in the overwhelming majority of cases.” Besides OSCE/ODIHR, almost all of the international observers concluded that the elections were free and fair. For instance, Elsa Papademetriou, the Head of the Delegation of the Council of Europe’s Parliamentary Assembly, said that “these elections proved to be a move in the right direction.” Margarita Assenova, an independent observer from the US, who visited 28 polling stations in Zhanaozen, noted: “We haven’t noticed any infringements during elections. All commissions worked effectively. Of course, it is very difficult and unusual to organize elections during the emergency situation. We noticed a large number of patrols in Zhanaozen.” According to Assenova, the entry of new parties to the parliament will help to further develop democracy in Kazakhstan. Path to democracy

Haluk Ipek, Representative of the Parliamentary Assembly of Turkic Speaking countries (TURKPA), said: “We saw that there were all the conditions for fair and free expression of popular will; all the civil and political rights guaranteed by the Constitution of Kazakhstan and international commitments of the Republic have been met.” The monitoring mission of the Commonwealth of Independent States (CIS) stated that the parliamentary election in Kazakhstan was “open, transparent and took place in accordance with the law of the country and existing democratic norms.” The mission of the Shanghai Cooperation Organization (SCO) believes “the election of deputies of the Mazhilis of the Parliament were legitimate, free and open and generally met the requirements of the national law and accepted international commitments.” Kazakhstan’s Foreign Ministry stated that: “Kazakhstan is firmly committed to the fundamental principles of holding democratic elections. We understand that democracy in our nation is still a work in progress. Kazakhstan will continue to pursue a steady path of democratization, ensuring fundamental freedoms and human rights.” It believes that the election outcome “reflects the interests of the majority of the population and its mature civic society”, representing “another step forward for our nation: it will increase debate and the competition of ideas, strengthening our Parliament and our political system as a whole.” Despite the unbalanced assessments from OSCE/ ODIHR, the outcome is clear: Kazakhstan has made a major step forward to strengthen its multiparty system and more robust democracy.

Kazakhstan country profile 2012

Kazakhstan at a glance

Zhanaozen events In Kazakhstan, the holiday season usually starts on 16 December, our Independence Day, and continues until the New Year, which is one of our most popular holidays. Last year end was special because we were celebrating the 20th anniversary of Kazakhstan’s independence. The tragic events that unfolded in Zhanaozen that day caught many by surprise, because Kazakhstan aspires to stability, peace and mutual understanding. Events in Zhanaozen turned violent and innocent people were injured or killed. The troublemakers attacked police and there were acts of vandalism. A total of 46 facilities were burned down, including the mayor’s office, a hotel and the Ozenmunaigaz company building. The rioters used a protracted labor dispute between laid-off workers and the management of Ozenmunaigaz to justify the disruption. In linked protests at the Shetpe railway station in the Mangistau region, a group of provocateurs blocked railroad tracks and threw Molotov cocktails and stones at locomotives and police. They set fire to a train carrying around 300 passengers. The police were obliged to use force to end the attacks. From the very beginning, the law enforcement agencies acted diligently to avoid loss of life. Despite this, at least 16 people died and 110 were injured. The Government of Kazakhstan has expressed deepest condolences to the families of those who died. The Government’s response was prompt. To avoid the spread of violence, President Nazarbayev declared a state of emergency on 5 January 2012. Journalists, bloggers, foreign diplomats and observers were invited to visit Zhanaozen to see the situation for themselves and to draw their own conclusions. The Government chose to be open to the media and provided full accounts of its actions and findings, thus validating its commitment to transparency and fairness. Two commissions were established by the President: one to look into the causes of the violence and the other to work to correct social and economic injustices in the region. In addition, a commission led by the First Deputy Prime Minister developed an action plan. To implement it, the Government allocated over $20 million. President Nazarbayev visited Zhanaozen himself to assess the situation there and instructed government officials to restore normal operations. He appointed a new akim (governor) of the Mangistau region, Baurzhan Mukhamedzhanov, who assumed the new post with the consent of the regional Maslikhat (local elected legislature). The President said that the Government, the Samruk-Kazyna Fund and the KazMunayGas company failed to resolve the labor dispute in the oil fields at the earlier stages before it turned into a crisis. Therefore, he

Kazakhstan country profile 2012

replaced the heads of Samruk-Kazyna, KazMunayGas and KazMunayGas Exploration & Production Company and ordered an examination of the actions of the government and KazMunayGas. He also called for a reform of the company’s management and rapid reconstruction of the destroyed facilities in Zhanaozen. Representatives of Kazakh society from all walks of life, including miners, metallurgists and labor groups across the country, condemned the disturbances. They agreed that independence, peace and harmony have always been the main values of the Kazakhstan people. The incidents in Zhanaozen have been a test of maturity for Kazakhstan and, so far, it has passed that test. We have demonstrated our commitment to rule of law and human rights. We have moved away from old, Soviet-style behavior and mentality. We are on the verge of important generational changes in the country and would like to do everything so that Kazakhstan continues to grow steadily and peacefully. The Government is open to hearing friendly advice as long as the spirit of mutual support and counsel prevails. Overall, the events show how eager the Government, the citizens of Zhanaozen and Kazakhstan are for stability and peace as the pathway to economic development and prosperity. The bottom line is that we all reject violence and subversion. Bringing offenders to justice

Kazakhstan promptly began lengthy and thorough legal proceedings into the tragic violence in Zhanaozen in the oil-rich western part of the country that left 17 people dead and many others injured. The trials, which will last for months and scrutinize every aspect of the riots, will prove to the world that Kazakhstan respects the rule of law, believes in an open and transparent system of government, and does not tolerate violence against its citizens. Many critics are loudly saying otherwise. But the formal trials, which began promptly, are the beginning of what will prove to be a very long and deliberate process. As Kazakhstan has demonstrated from the beginning of this terrible set of disturbances, it will spend as long as is necessary to ensure that the facts are brought to light and that those responsible – either in government or outside it – are punished for their wrongdoing. Protesters, as well as police officers and local officials, have been indicted and face criminal charges. Despite accusations to the contrary, these proceedings are fully open and transparent to the public, the media and the international community. The media has unbridled access to every piece of evidence, every question

Kazakhstan at a glance

proffered, every answer given and every ruling. Nothing will be hidden; nothing will be kept under wraps. There’s nothing to be proud of when it comes to the mass disturbances in Zhanaozen, and there are many people to blame. The police, the protesters, and local government officials and businesspeople all share responsibility. Kazakhstan mourns the lives lost and deeply regrets what occurred. The events have taught us many important lessons. But these trials give us great hope and opportunity. They will allow Kazakhstan and its citizens to show the world that its system of justice works. Just look at where we’ve been and what we’ve done. Immediately after the violence, the government of Kazakhstan commenced a comprehensive investigation into what happened. Investigators spent weeks establishing a chronology of events, determining the facts and understanding why and how the tragedy occurred. They received 2,277 witness reports and conducted more than 200 forensic inquiries. These investigators left no stone unturned. In all, they questioned 1,128 individuals. They sought out every potential witness, visiting every apartment and house in the neighborhoods affected. They asked extremely difficult questions in order to determine what might have provoked such violence. They produced hundreds of volumes of materials, all of which are presented at the trials. And at every step, the public was kept completely informed. But some critics tried to diminish these sincere efforts to make things right. Some individuals, attempting to undermine the credibility of the investigation, have spread misinformation and distorted the facts. This has not been helpful. In fact, this whining has distracted investigators who worked tirelessly to ferret out the facts and to share their findings – in a fair and objective manner – with the public. It is hoped that these same individuals will show respect for the rule of law and the judicial process during these very important trials. The hope is that they would appreciate the government’s efforts to be open and transparent. Any attempt to disrupt the proceedings will not – and should not – be tolerated. At a time like this, our shared goal is to bring the guilty to justice. The series of trials began on 27 March. The prosecuting authorities, in accordance with their constitutional and legislative powers, supervised each investigation to ensure compliance with the law and strict observance of the constitutional rights of the accused. Overall, 37 people are on trial charged with organizing and participating in violent disturbances in Zhanaozen. A total of 100 people (owners of damaged buildings and cars) were identified as victims. In addition, five policemen and the former mayor of Zhanaozen are among the defendants charged with abuse of power in the response.

Shetpe events trials verdict

On 21 May, the Court announced guilty verdicts for 11 of the 12 defendants accused of inciting riots, pogroms, destruction of property and/or intentionally damaging vehicles during the December mass disturbances in Shetpe. Five of those convicted were duly sentenced to various terms of imprisonment ranging from as little as a four-year suspended sentence to seven years in prison. The Court also saw fit to pardon six of the 11 defendants, although initially they were sentenced to two-year terms of imprisonment. As a result, they were released from their detention and walked out of the courtroom right after the verdict was announced. One defendant, Zh. Myrzatayez, was summarily released from custody for a lack of evidence of guilt. The Court also levied fines upon the guilty totaling KZT 16,296,000 ($108,785), to be “divided… into equal parts and recovered from all for the material damage they are convicted of causing,” Judge Berdibek Myrzabekov said. A separate hearing is currently under way in the city of Aktau involving the cases of law-enforcement officers accused of abuse of authority. In the first decision announced on 17 May, the former director of a temporary detention facility in Zhanaozen, Zhenisbek Temirov, was found guilty of abuse of authority and sentenced to five years in a prison colony. Temirov was accused of the illegal detention of alleged protestor Bazarbai Kenzhebayev, who had been arrested during the Zhanaozen violence. Temirov failed to provide timely hospitalization to Kenzhebayev, which resulted in his death. In addition, to compensate the moral damages suffered by the victim’s daughter, Temirov’s property will be confiscated and he will pay KZT 1 million ($6,675) in penalties. Officials’ abuse of power cases verdict

On 28 May, the Court announced its verdicts with regard to law-enforcement officials accused of exceeding their authority and the inappropriate use of force, weapons and/or special equipment. Officer K. Utegaliev was sentenced to seven years in prison. Officers B. Bagdabayev, E. Bakitkali and R. Zholdybayev received six years each, and Officer Yesbergenov will serve five years. Each convicted officer was also banned from occupying a public office for a period of five years and their respective property was confiscated. Appeals must be filed with the judicial board of the Mangistau Oblast Court within 15 days before the verdicts are enforced. Over the course of the trial, defendants’ counsel alleged 16 separate incidents of “torture” during the preliminary investigations. Each of these allegations is being fully investigated by the General Prosecutor’s Office. At present, no independent evidence has been found to support them, but the investigations continue. It should be noted that each of the accused were allowed visits with representatives of non-governmental

Kazakhstan country profile 2012

Kazakhstan at a glance

organizations that specialize in the prevention of torture and other forms of ill-treatment. Kazakhstan’s Prosecutor General’s Office has conducted an exhaustive investigation into the Zhanaozen events. It established that the disturbances were caused by a group of former oil workers, aided by a number of young people, who disrupted the 16 December celebrations of Kazakhstan’s 20 years of independence by attacking police officers and innocent bystanders, as well as vandalizing, looting and setting fire to 125 facilities in the town. This shocking violence was unprecedented in Kazakhstan and has its roots in social tensions that were inadequately managed at the local level. Regrettably, corruption on the part of some Zhanaozen officials exacerbated the problem. While as a government we have to be open about the causes of these tragic events and take measures to prevent them from happening again, we also have a responsibility to deal swiftly, firmly and fairly with the perpetrators. No civilized country can tolerate behavior of this kind. This is exactly what we are doing, and we have also taken an extra step by making the trials open. It is important that the citizens of Kazakhstan and our international partners are able to see that justice is being done. A number of human rights organizations have claimed that some of the 37 charged with instigating the disturbances in Zhanaozen gave evidence under duress and cannot receive a fair trial as a result. These are serious allegations, and they will be fully investigated if they can be substantiated. Our investigation also identified important failures in some of the police responses to the disturbances. While police actions were, for the most part, appropriate and in line with operating procedures, there were instances when the use of weapons and other special equipment was disproportionate and inappropriate to the level of threat they faced. This is why a number of law-enforcement officials will stand trial for their actions. Our message is clear: no one stands above the law. Zhanaozen events trial verdict

On 4 June 2012 the Aktau City Court announced verdicts in the cases of 37 persons accused of wrongdoing during the unrest in Zhanaozen. The majority of those found guilty were sentenced to prison terms ranging from one to seven years. Three defendants’ cases were dismissed and they were ordered to be immediately released due to lack of evidence. Of the remaining 34 cases, 16 had their two-year sentences suspended and received pardons from the Court and were immediately released from custody. However, two of those 16 will not be permitted to travel outside their towns of residence for that period. Of those found guilty of more serious offenses, two were conditionally sentenced to one year of prison, three were conditionally sentenced to two years and six received

Kazakhstan country profile 2012

three-year terms in a standard-regime penal colony. Of the most serious offenders, the sentences the Court handed down were longer: two got four years; one got five years; three were sentenced to six years and one received a seven-year term. No verdict will be enforced until after the 15-day deadline for the filing of appeals has passed. Each of the trials was conducted in an open manner and was widely attended by relatives of the victims and members of the media, as well as representatives of international and domestic NGOs. The offices of the Court also held trial briefings on a regular basis. Kazakhstan has much to learn from these events and its handling of them. We are studying the experience of the United States, France and Britain to see how they dealt with similar outbreaks of violence. The Los Angeles Police Department, for example, applied important lessons learnt from the civil unrest of 1992, including new forms of community policing and partnerships with civic organizations. After last summer’s riots in several British cities, courts in Britain worked overtime to hear the cases against rioters and looters and handed down tough sentences to convicted offenders, in some cases going well beyond the usual sentencing guidelines. In these situations, firm action is needed to protect society and to maintain confidence in the state’s commitment to uphold public order. Individuals convicted of offenses related to the Zhanaozen disturbances can also expect the full force of the law to be applied against them. In today’s world, news travels faster than ever before but often not accurately. Some early media reports from Zhanaozen put the death toll much higher than it was, and one Russian newspaper falsely reported the testimony of a surgeon at Zhanaozen’s central hospital, who claimed to have seen the bodies of 23 victims of the violence. Investigations revealed that this person did not exist. However difficult it may be in these crisis situations, journalists have the same responsibility to check their sources and report the facts. At the same time, governments in democratic countries have to maintain a difficult balance between protecting society and ensuring the rights of the media to report these events. Kazakhstan is learning the painful lessons of Zhanaozen to avoid situations of this kind in future. Bringing the people responsible for the violence to justice and ensuring they receive a fair trial is a vital step in this process. The government of Kazakhstan has made a commitment to its people and to the world that these proceedings will meet the highest standards. We know that they will demonstrate in a very public way that Kazakhs support freedom, fairness and openness and that we have come a very long way to becoming a truly democratic nation.

Kazakhstan at a glance

Civil society Since its independence, Kazakhstan has been fully engaged in the transition from a Soviet political system to democracy. It charts its own destiny under a banner of increasing freedom and has opted to follow a formula that has worked for other democracies and that requires the involvement of all stakeholders in society. In the mid-1990s, Kazakhstan decided to establish and maintain a strong and independent civil society. Not-for-profit legislation

In close cooperation with European and American partners, Kazakhstan has been creating a legal environment for NGO development and growth. Kazakhstan’s not-for-profit legislation has been internationally recognized as one of the best among the Commonwealth of Independent States. The first measure was adopted in the early 1990s and gave a powerful boost to the development of civic organizations in Kazakhstan. In the middle of the 1990s, the government separated NGOs from commercial entities, significantly simplified the process of state registration, separated their activity from government and granted them special benefit status. Even in its 1998 NGO Sustainability Index in Kazakhstan report, the United States Agency for International Development (USAID) had already noted “…NGOs exercised tax benefits without undue difficulty.” Kazakhstan has also been providing opportunities for foreign and international donors to give financial support to the national not-for-profit sector through grants and other means. The peak period of foreign support for the Kazakhstan NGO sector was from 1996 to 1998. Today, 162 international organizations provide grants to Kazakhstan’s NGOs and implement various programs in the country. Funds received by Kazakh NGOs under state contracts are exempt from corporate income and value-added taxes. The dynamic of NGO growth

Since Kazakhstan’s independence, thousands of Kazakh NGOs have been trained by the United Nations Development Programme (UNDP), the USAID, the OSCE and other foreign and international organizations to increase their role in society and participate in nearly all spheres of public life. Recently, NGOs have become increasingly active in advocacy efforts. USAID’s 2010 NGO Sustainability Index for Central and Eastern Europe and Eurasia scored Kazakhstan better than many Eastern European and Eurasian countries and identified the country as having achieved one of the highest levels of NGO sector development

among Central Asian countries. The report also projected that the number of NGOs in Kazakhstan is expected to rise because of the “stable domestic policy climate laws that are favorable to NGOs.” In the early 1990s, about 400 NGOs were established as Kazakhstan experienced a rapid rate of reform. These NGOs were mainly involved in human rights issues and furthering democracy in the country. From 1994 to 1997, more than 1,600 NGOs were registered. That growth continues today. Last year, the number of NGOs rose by 10 percent. Today, more than 25,000 non-profit organizations are active in Kazakhstan, including 13,000 NGOs. More than 550,000 people are involved in the “third sector”. Cooperation between government and NGOs

At the beginning of 2002, the government decided to step up its efforts to develop the third sector. It approved the Concept of State Support for Non-Commercial Organizations, including support for socially significant projects of NGOs through the signing of social contracts with them. In 2006, Kazakhstan adopted the Concept of Civil Society Development for 2006-2011, a “road map” for improving relations between the government and the not-for-profit sector. During the first and second phases of implementing the Concept, Kazakhstan reduced the registration fee for NGOs, signed and ratified the Optional Protocol to the 1966 International Covenant on Civil and Political Rights, simplified long-criticized reporting requirements for NGOs receiving foreign aid and lifted the ban on state financing of NGOs. A number of laws have encouraged active cooperation with civil society institutions. The Civic Forum

Kazakhstan will continue drafting an effective legal framework for NGOs. The original goal was to promote and secure the stable development of civil institutions and to improve the quality of dialogue between the government and NGO community. One of the most prominent platforms for this dialogue was established in 2003 with the creation of the so-called biannual “Civic Forum.” Years ago, President Nazarbayev called for the government to cooperate with the NGO sector, recognizing the power that partnerships with these organizations can play in developing and improving a civil society. As a result, Kazakhstan initiated the Civil Forum to facilitate greater involvement of the NGO community in the government’s efforts for political reform nationwide. The Civil Forum is a mechanism for engaging in meaningful dialogue, positive interaction and results-driven collaboration with NGOs, giving these

Kazakhstan country profile 2012

Kazakhstan at a glance

organizations direct access to decision-makers within government. This process promotes the kind of participation, synergy and exchange that result in the formulation of beneficial policies and laws. The Civic Forum provides the opportunity for Kazakh NGOs to participate in government policy discussions and formulation. At the time of the First Civil Forum, the non-governmental sector of Kazakhstan was recognized as an important power within the democratic process. A new partnership among the government, business and NGOs was announced during this initial forum. A growing partnership

The Civil Alliance of Kazakhstan was created during the Second Civil Forum. The Concept of Civil Sector Development was adopted and approved by the President. The action plan for the concept implementation was developed and approved by the Prime Minister during this forum as well. The Third Civil Forum was devoted to further developing partnerships within the framework of civil society democratization and realization of the Civil Sector Development Concept. The Fourth Civic Forum held in Astana on 23-24 November 2009 hosted more than 700 participants from an array of countries, including the United States, Russia, Germany, France, Ukraine and Azerbaijan. Representatives from trade unions, the media, international and foreign NGOs, central and local executive bodies, and regionally elected representatives from various political parties attended the event. “The Civic Forum, which this year is the largest ever, proves that the partnership between Kazakh society and the Government is deepening,” said Elizabeth Warner, Program Director for Central Asia at the US-based International Center for Not-for-Profit Law. The effect of OSCE chairmanship

The forum was opened by 2010 OSCE Chairman-in-Office HE Kanat Saudabayev. He stressed that cooperation between NGOs and the government will only increase as Kazakhstan begins its chairmanship of the Organization for Security and Co-operation in Europe. He called on NGOs to contribute to Kazakhstan’s success as chair of the OSCE, which he said is a “great honor and huge responsibility not only for state bodies but for all the institutions of civil society, including NGOs”. At the 2009 forum, the government reported on the implementation of 226 socially significant projects during the previous year – all in partnership with various NGOs. As a result, Kazakhstan was able to avoid social instability and, through this partnership, minimized the after-effects of the world economic recession. According to Warner, this partnership has had a defining effect: “Since the First Civic Forum in 2003, we have seen many important developments in the

Kazakhstan country profile 2012

partnership between the Government and civil society – simplified registration laws, the participation of NGOs in policymaking at the national and regional levels, and the beginning of more favorable tax laws that will promote private philanthropy.” One of the main outcomes of the Fourth Civil Forum was the agreement reached between the government and NGOs to continue working together on improving the quality of their cooperation, the role of NGOs in the social and political life of the country, social monitoring and social orders, among other important areas. Setting the course together

The Fifth Civil Forum dedicated to the 20th anniversary of Kazakhstan’s independence convened in Astana in 2011. The forum highlighted the significance of the outcomes of the previous civil alliances and set new targets for boosting engagement of the government and NGOs. It brought together about 600 heads of NGOs of Kazakhstan, representatives of political parties, trade unions and NGOs from abroad. One of the more telling signs of the “deepening” partnership on issues of political development has been the government’s involvement in the drafting of two significant documents – the National Human Rights Action Plan of the Republic of Kazakhstan 2009-12 and the Concept of Legal Policy for 2010-20. The National Human Rights Action Plan outlines steps to strengthen the national system of human rights protection, while the Concept of Legal Policy sets a plan for improving state governance based on the principles of effectiveness and accountability, ensuring protection of human rights and freedoms, and protecting the interests of the state and society. Human rights reforms

Eighty percent of the Action Plan was developed by Kazakhstan’s non-governmental organizations. It was preceded by a baseline study and report on human rights in Kazakhstan that analyzed national legislation, law enforcement practices and compliance with international law provisions in human rights protection. The Human Rights Commission and the group working on the plan closely studied the breadth of international experiences. The Legal Concept was also prepared in close cooperation with Kazakhstan’s NGO community. It defines the main directions of legal policy and is intended as a foundation for the development of programs in the sphere of legal policy. It is projected to bring Kazakhstan’s legal system closer to international standards in such areas as the constitution, administration, taxation and customs, as well as civil, financial and criminal law. It envisages reforms in law enforcement, the judiciary and the protection of human rights.

Kazakhstan at a glance

Middle class Kazakhstan’s rising revenues, derived from the export of mineral resources, have given the country’s government the opportunity to start - and successfully implement necessary market reforms, which has fostered the development of a middle class. Numerous state programs supporting small and medium enterprises (SME) have contributed to the development of a middle class that is moderate, pro-democratic and pro-western in its outlook. During 2005-11 the number of SMEs increased by 148 percent. Today SMEs account for 18-20 percent of the country’s GDP production. This middle class is considered by the state leadership to be a main factor not only in socioeconomic, but also in long-term political, stability. The Government has also been successful in implementing SME development strategies in rural areas. Despite the fact that there is still a noticeable disparity between rural and urban incomes, farmers and small agricultural companies have increased the level of their representation to 23 percent of the total number of registered SMEs. The lower-middle class, with individual annual incomes of $6,000-9,000, constitutes the predominant share of the middle class in most of Kazakhstan’s regions an estimated 70 percent of the stratum. The upper-middle

class, with annual individual incomes of $9,000-15,000, accounts for 30 percent of the total group. The country’s middle class has begun to use its disposable income to travel abroad and to follow the Western lifestyle and its leading fashion brands. Property consultancy firm CBRE Group’s annual report indicates that 18 global retailers entered Kazakhstan’s largest city, Almaty, in 2011 - the highest number among the 73 countries it surveyed. Moscow and fellow eastern European cities Kiev and Warsaw were retailers’ next most popular targets in the region of Eastern Europe and Central Asia. As the CBRE research found, international brands such as Zara, Massimo Dutti and Bershka sought to take advantage of the Central Asian state’s fast-growing middle class and improving infrastructure. “This was largely down to major infrastructure improvements and delivery of new shopping centre spaces,” the report said, adding that rising average income was also a significant factor. The Kazakhstan leadership remains well aware that it still has much to do in nurturing its emerging middle class. The active and significant presence of a middle class in the country’s economy is a guarantee of the stability of the modernization of that economy, being itself a social driving force of further improvement.

Court system The legal system of Kazakhstan owes its origins to the Continental (Roman-German) legal family. Since independence, Kazakhstan has successfully reformed its legal and judicial sectors and constantly continues the modernization process by introducing the best world practices. Such reforms as the introduction of a moratorium on the death penalty, with a view to future total abolition, and the introduction of jury trials for the most serious crimes have all won international acclaim. There are local and oblast (regional) level courts and a national-level Supreme Court and the Constitutional Council. A special arbitration court hears disputes between state enterprises. There is also a military court system. Local-level courts serve as courts of first instance for less serious crimes, such as theft and vandalism. Oblast-level courts hear more serious criminal cases and also hear cases in rural areas where no local courts have been established. A judgment by a local court may be appealed to the oblast level. The Supreme Court hears appeals from the oblast courts. The constitution establishes a

seven-member Constitutional Council to determine the constitutionality of laws adopted by the legislature. It also rules on challenges to elections and referendums and interprets the constitution. The President appoints three of its members, including the chair. Under constitutional amendments of 1998, the President appoints a chairperson of the Supreme Judicial Council, which nominates judges for the Supreme Court. The Council consists of the chairperson of the Constitutional Council, the chairperson of the Supreme Court, the Prosecutor General, the Minister of Justice, senators, judges, and other persons appointed by the President. The President recommends and the Senate approves these nominees for the Supreme Court. Oblast judges (nominated by the Supreme Judicial Council) are appointed by the President. Lower-level judges are appointed by the President from a list presented by the Ministry of Justice. The Ministry receives the list from a Qualification Collegiums of Justice, composed of deputies from the Mazhilis (lower

Kazakhstan country profile 2012

Kazakhstan at a glance

legislative chamber), judges, prosecutors, and others appointed by the President). Under legislation approved in 1996, judges serve for life. In accordance with the 2008 Constitutional reform, the judicial-legal system was improved with the aim of strengthening the independence of courts in pronouncing judgments. The reform facilitated a near total abolition of capital punishment in Kazakhstan, limiting its application exclusively to terrorist crimes involving the loss of human life, or wartime crimes. A system of judicial custody has been introduced and the Constitution prohibits investigation by the Office of Public Prosecutor. These reforms are directed at further democratization of the institutions of Government and society. In order to make the legislation activity more effective, the Kazakh government is in the process of creating a system that would be modern in content and have regulations that vividly reflect all stages of legislation and lawenforcement activity. Each Legal Act is being evaluated as per international standards to ensure that the interests of Kazakh citizens, society and the State are comprehensively and rationally taken into consideration. Juvenile justice reform in Kazakhstan

Kazakhstan, like other countries that were part of the Union of Soviet Socialist Republics (USSR), did not have a juvenile justice system at independence. Some institutions for children did exist, notably juvenile correctional facilities and juvenile police. But there was no law on juvenile justice, nor specialized courts or judges. Juveniles accused of an offence were tried by ordinary criminal courts, under the Criminal Code and the Code of Criminal Procedure. While offenses by juveniles increased in the years following independence, they have been decreasing since 1994. In recent years, the number of offences has fallen from 8,237 in 2002 to 5,383 in 2007. The decline has been dramatic for administrative offenses, such as drunkenness, drug use and disorderly conduct, and less pronounced for criminal offenses. The number of offenders has remained

relatively stable during these years, however, apparently due to the growing number of crimes committed by juveniles acting as a group. Nevertheless, the number of convicted juvenile offenders has diminished by more than half since 2000, and the number of juveniles given custodial sentences annually has fallen from 1,668 in 2000 to 751 in 2006. The total population of the four juvenile correctional facilities was 473 persons in 2007, and the number in ‘pretrial’ detention facilities was 459. The United Nations Children’s Fund (UNICEF) supported a situation analysis on juvenile justice in 2000. The lead role then passed to the Open Society Institute, which undertook a major project from 2001 to 2006 (the ‘Juvenile Justice Project’). The project led to a comprehensive set of recommendations, many of which have been incorporated into a ‘Juvenile Justice System Development Concept’ approved by the President in 2008. Adoption of this ‘Concept’ marks the beginning of a key stage in the development of juvenile justice in Kazakhstan. In 2010, a UN assessment team found much that is positive: a commitment to the creation of a juvenile justice system that complies with international standards and best practices, strong cooperation with the international community, the piloting of specialized juvenile courts and juvenile police units, a specialized defense team in Almaty, the improvement of conditions in colonies and the policy of early release of juvenile prisoners who show evidence of rehabilitation. The Juvenile Justice System Development Concept establishes the basic framework for the future juvenile justice system. The time frame for the creation of this system is 2009-11. The Open Society Institute is no longer involved in juvenile justice. The Organization for Security and Co-operation in Europe (OSCE) supports the development of probation and mediation, but does not play a direct role in juvenile justice. The government has asked UNICEF to help develop the juvenile justice system, which builds on UNICEF’s previous work on deinstitutionalization.

Media in Kazakhstan When it emerged onto the world stage from the shackles of the Soviet Union in 1991, Kazakhstan began to develop its media market. It started with only a few media outlets, purely official, and now has more than 2,000 local media resources, about 85 percent of which are non-governmental. There are major newspapers, as well as TV and radio channels, providing news and entertainment in 11 languages, including German, Ukrainian, Turkish and English. Media outlets broadcasting in ethnic languages receive grants and other types of financial support from

Kazakhstan country profile 2012

the national budget. In 2002, the first Kazakh satellite channel – Caspionet – was launched and broadcasts both in the country and abroad. International media corporations such as CNN, the BBC, Radio Free Europe, Deutsche Welle, Polonia and others broadcast their programs in Kazakhstan through local cable television companies. Over 80 foreign-media outlets from more than 20 countries, including the largest news agencies such as the Associated Press, Interfax, France Press, Xinhua, Reuters, ITAR-TASS and Bridge news, are accredited in Kazakhstan.

Kazakhstan at a glance

■■ ■■ ■■

■■

Benefits to the media include: legal guarantees of the principles of freedom of speech; continuing improvement of the legal framework for mass-media activity; a transparent process of receiving frequencies for TV and radio broadcasting. The Commission on providing rights for radio frequency use comprises representatives of the Parliament, as well as international and Kazakhstan public associations. The Commission’s activity is widely covered by the mass media; creation of economic conditions for mass-media growth. All of the publications and TV stations are exempted from VAT. Charges for use of radio frequency decrease almost every year; continuing and constructive cooperation with public associations, international organizations and media research institutes in the area of mass-media development; Journalists’ rights associations, such as the Journalists Congress of Kazakhstan, Journalists Union of Kazakhstan, Teleradiobroadcasters Association of Kazakhstan and offices of international organizations (the OSCE, Human Rights Watch, Internews network and Adil Soz), are all established in Kazakhstan; close attention to journalists’ development. The government provides grants and loans for education in this field; a TV journalism school was established.

4.4%

Other groups

Kazakhstan’s principal ethnic groups

Kazakhs

Ekspress-K www.express-k.kz Zhas Alash www.zhasalash.kz Liter www.liter.kz Karavan www.caravan.kz Zonakz www.zonakz.net BAQ www.baq.kz Tengrinews www.tengrinews.kz

Nur www.nur.kz Vremya www.time.kz (opposition) Television Khabar TV www.khabar.kz Kazakh Commercial TV (KTK) www.ktk.kz Caspionet www.caspionet.kz El Arna www.elarna.kz

2.9% Uzbeks

Hit TV www.hittv.kz

2.1%

Channel 31 www.31.kz

1.4%

Radio

1.3%

Radio NS www.ns.kz

Ukrainians Uyghurs

63.1%

Newspapers/Webportals Kazakhstanskaya Pravda www.kazpravda.kz

BNews www.bnews.kz

The country’s multi-ethnic composition is the driving force behind much of its political and cultural life. According to the 2009 Census data, Kazakhstan is home to members of some 125 ethnic groups. Many nationalities were driven to Kazakhstan by political repression and persecution. In Stalin’s time, Kazakhstan hosted 1.5 million political prisoners from Russia and other regions of the USSR. More than 1.3 million people were deported by Stalin during the Second World War “as representatives of unreliable nations”. All of these people found understanding and support among the Kazakh nation. The principle of equality of all ethnic groups is strictly adhered to. About 40 percent of secondary schools use Russian in teaching. In higher education,

Russians

Major Kazakh media outlets

Kazinform www.inform.kz

Ethnic composition

23.7%

Tatars

1.1%

Germans

Europa Plus www.europaplus.kz Auto Radio www.avtoradio.kz

Kazakhstan country profile 2012

Kazakhstan at a glance

70 percent is in Russian. In areas of residence of compact ethnic groups, schools use Uyghur, Tajik, Ukrainian, German, Polish and other languages to teach. The Sunday schools of national and cultural unions also receive support in the teaching of native languages. Today 30 languages of ethnic groups are taught in about 200 Sunday schools and three schools of national revival. Magazines and newspapers are published, and TV and radio programs are broadcast, in 11 national languages. Books in the languages of ethnic minorities of Kazakhstan are published annually, with a total number exceeding 80,000. Besides Kazakh and Russian theatres, there are also Uyghur, German and Korean ones. Ethnic cultural centres have been established in all areas of Kazakhstan to support the ethnic identity of different nationalities. Their highest forum is the Assembly of People of Kazakhstan. Today this powerful social force has become an organic part of civil society and expresses its views in the chambers of Parliament, political parties, mass-media, state and non-government organizations. The Assembly of People of Kazakhstan has become an important element of the political system of Kazakhstan. It has forged the interests of all the ethnic groups and ensures the rights and freedoms of all citizens regardless of their ethnic origin and religion. A total of 27 republican and regional, and more than 300 district, ethnic cultural unions compose the Assembly of People of Kazakhstan. Three centers have an international status. The Assembly consists of 16 Small Regional Assemblies of the People of Kazakhstan, which act as consultative bodies at regional administrations and comprise representatives of local ethnic-cultural and social unions. Kazakhstan’s efforts to ensure inter-ethnic peace and accord are essential for internal stability and are widely recognized in the world. Pope John Paul II and UN General Secretary Kofi Annan, who traveled to the country, cited Kazakhstan as an example of inter-ethnic consent and sustainable development of a multi-ethnic society. The state inter-ethnic policy is based on the principle of ‘unity in diversity’. Civil peace and consent in Kazakhstan are the result of a persistent policy of the Government that enjoys the support of all of society. Languages

Kazakh, which belongs to a Turkic language group, spoken by over 70.1 percent of the population, is the state language. Russian, spoken by 94.3 percent, enjoys an equal status under the Constitution and is a means of inter-ethnic communication in Kazakhstan. English is spoken by 15.4 percent. The National Trinity of Languages Program aims to ensure that all citizens of Kazakhstan have full command of Kazakh, Russian and English, in order to have an international competitive edge in the 21st century. Newspapers, TV/radio programs and school

Kazakhstan country profile 2012

instruction is broadcast in 11 languages (Kazakh, Russian, Uzbek, German, Korean, English, etc). National unity doctrine

On the eve of the Day of Unity of the People of Kazakhstan, celebrated on 1 May 2010, the authorities and civil society groups achieved consensus on the final version of the National Unity Doctrine. This was a project initiated by President Nazarbayev in October 2008 at the 14th Session of the Assembly of People of Kazakhstan, designed to reflect the common ideals consolidating all citizens of Kazakhstan into a single nation, regardless of one’s ethnic heritage, religion, or social class. The first draft, designed by the Assembly of People of Kazakhstan and published in news media in November 2009, created much public interest and encouraged a broad debate on ways to enhance social cohesion in a country of 125 ethnicities and 40 religious denominations. The Doctrine of National Unity, a blueprint for strengthening inter-ethnic harmony for years to come in a country destined to maintain its multicultural character and consolidation around common values, has caused a significant debate, which ultimately made for stimulating dialogue between the government and civil society. “The doctrine’s final version proved that we can reach agreements and understand each other. This wasn’t forced upon us, people discussed it and felt it through their hearts,” said prominent intellectual and philosopher Murat Auezov. Religious composition

Religious tolerance and accord has been key to the country’s policy. Two major religions in Kazakhstan are Islam and Christianity (70.1 percent and 26.1 percent of all believers, respectively). Most Muslims in Kazakhstan belong to the Sunni denomination of Islam, while most Christians belong to the Russian Orthodox Church. Kazakhstan is home to more than 40 religions, which are arranged in more than 3,000 religious organizations. It is worth mentioning that although most people in Kazakhstan associate themselves with a certain religion, most of the population is not deeply religious. In accordance with the 2010 US Department of State’s Human Rights Report: Kazakhstan, the constitution protects religious freedom. There were no reports of societal abuses or discrimination based on religious affiliation, belief, or practice. Muslim, Russian Orthodox, Roman Catholic and Jewish leaders reported high levels of acceptance in society. Kazakhstan is a secular state by law. The State does not interfere with the activities of religious organizations (unless laws are violated). The State provides no material – nor any other – support, including financial aid, to religious organizations. Religious organizations do not exercise any state functions and they do not interfere with matters of the State.

Kazakhstan at a glance

Myths in the West about Kazakhstan Kazakhstan is frequently described in Western media as a ‘dictatorship’ led by a ‘corrupt’ and ‘autocratic ruler’ who has been in power for ‘too long’. In fact, Kazakhstan is a country that is only 20 years old and, in that short time, it has achieved remarkable progress in transforming itself from a former Soviet republic into a new and increasingly successful Western-style democracy. Kazakhstan has a record to be proud of. It has settled its borders with its vast neighbors. It has strengthened its external security with a shrewd foreign policy that has forged close ties with Russia, China, the United States and Europe simultaneously. It has achieved an unprecedented degree of inter-ethnic harmony, thereby laying the foundation for internal stability. The economy has been privatized and has been growing at about 10 percent per annum for the last several years. Oil exports will continue to grow and steps have been taken to diversify the economy. Kazakhstan’s citizens have strong property rights. They are able to borrow money from banks to buy homes, land and other property knowing that they have a real chance to develop a personal stake in the economy. When they get old or ill, they know that they will receive adequate support and medical care. The result is that today Kazakhstan is probably the most stable and developed country in the former USSR. How has this been achieved? Many Westerners think the story is only about oil. The truth is different. Since the beginning, President Nazarbayev and the Government have placed emphasis on achieving political stability and economic growth, without which there can be no longterm future for the country. The economy was privatized in the 1990s and today, thanks to this policy and the rapid development of the energy sector, the nation is reaping the benefits. By staying faithful to the strategy of putting the economy and stability first, the Government has been able to unveil a series of important democratic reforms that will in time lead to a fully fledged democratic state. Despite obvious signs of progress, Kazakhstan has frequently been criticized in the West for being “slow” to implement democratic reforms. This is unfair. In England, for example, democracy developed over more than 700 years, with often violent interludes. In Kazakhstan, we have achieved an extraordinary degree of political freedom in just 20 years without any violence. Democracy is not only about laws and institutions. It is fundamentally about custom, habit and culture supported by property rights, backed by the rule of law. In practice this means that it is impossible to create a parliament one day and expect democratic debate to occur the next. One cannot create a responsible

opposition or media at the stroke of a pen. Establishing and nurturing an independent judiciary is an even greater challenge, as is tackling corruption. A common misconception in the West is that Kazakhstan is ‘forcefully’ being dragged down the path to democracy against its will. This is not true. Kazakhstan has chosen to become a democracy because it is the best way to run our society, ensure the prosperity of the people and guarantee the long-term security of the state. A large and stable democracy in the heart of Central Asia is surely a positive thing for Kazakhs and for their Western allies. Over the last few years, Kazakhstan’s Government has set out and started to implement detailed plans for further democratization and economic development. These reforms are an integral part of the domestic agenda and they will be persistently implemented. Kazakhstan’s impressive record in reforming its economic and political system, its global promotion of inter-ethnic and inter-religious tolerance, its leadership in non-proliferation activities and its overall responsible and constructive foreign and domestic policies were recognized in December 2007, when 56 nations of the Organization for Security and Co-operation in Europe unanimously elected Kazakhstan as their chair in 2010. Kazakhstan was the first former republic of the Soviet Union, the first nation ‘to the East of Vienna’ and the first country with a Turkic-speaking Muslim majority to lead the OSCE. ‘The President for life’ myth

In May 2007, President Nazarbayev announced a series of important political reforms designed to take Kazakhstan’s unique experiment to establish a genuine democracy and civil society to the next stage. Among his proposals was judicial reform, the reduction of the presidential term from seven to five years, increasing the powers of Parliament so that the Government would be accountable to it, introducing proportional representation to elect members of the Mazhilis (lower house) and establishing a party-based parliamentary system. Although the President’s announcement was greeted positively in the United States and Europe, the coverage in the Western media has been almost wholly negative, focusing on the decision by the Mazhilis to grant President Nazarbayev the right to stand as a candidate for the presidency for a third time when his term of office expired in 2012. The gist of the media comment is that this is yet another example of the ‘authoritarian’ Nazarbayev centralizing power around himself and his family. It was widely reported, quite incorrectly, that he has arranged for the Mazhilis to vote him ‘President for life’.

Kazakhstan country profile 2012

Kazakhstan at a glance

Under the Constitution of the Republic of Kazakhstan, the maximum number of presidential terms to which an individual may be elected is two. This rule is the same in the United States. President Nazarbayev is currently serving his second term. The Mazhilis’ decision to grant Mr Nazarbayev the right to run for a third term of office did not grant him the presidency “for life.” It permitted him by law to stand for election a third time, and only if he so chose to do. Second, this vote was a unanimous decision by the elected Members of Parliament. It was not an executive order from the President. Under the Constitution, President Nazarbayev – indeed, any president – cannot refuse Parliament’s unanimous decision under any circumstances, whether he supports the proposal or not. Third, the Mazhilis made their decision in the light of the unique set of circumstances facing the country granting a privilege, certainly, but also imposing an onerous duty upon a single individual whose role in the founding of the State of Kazakhstan has been pivotal. This is not an example of an autocratic leader propping up his power. It is the behavior of an increasingly stable and prosperous society seeking to bolster one of the main anchors upon which the security and welfare of millions depend. The key to understanding what the Mazhilis voted for lies in understanding Kazakhstan’s quest for stability. As any informed observer of events in the former Soviet Union will acknowledge, ill-considered or overhasty experiments with democracy have unleashed forces that have been deeply harmful. The result has been economic failure, inter-ethnic discord and, in some cases, a reversal of the very freedoms that democratic reform was supposed to bring about. Kazakhstan, with its vast territory and small but diverse population, has a once-in-a-lifetime opportunity to build a viable and prosperous state. It cannot afford to play with experiments that will not succeed. For this reason, the Mazhilis’ decision to grant President Nazarbayev the unique status of being able to stand for election to a third term of office was a pragmatic one. In the short- to medium-term, it is the best guarantee for stability. The law does not mean that Mr Nazarbayev will be President for life, or that he may stand an indeterminate number of times, or even that he might stand unopposed. Religious freedom: myth or reality?

In Kazakhstan, religious freedom is guaranteed by the Constitution, promoted by President Nazarbayev, praised by the country’s Chief Rabbi and recently affirmed by the Constitutional Council’s landmark decision that further safeguards this fundamental right. Yet the Western media and human rights organizations occasionally report on small incidents involving non-traditional religious groups in the country that have portrayed religious freedom as controversial rather than a fundamental right.

Kazakhstan country profile 2012

There is undeniable evidence that religious freedom is a way of life in Kazakhstan. Kazakhstan’s culture is multi-ethnic and tolerant; the state is secular and neutral, converging in a way to ensure that Kazakhstan, more than any country in Central Asia, is respectful to any and all faiths. The Department of State’s Human Rights report points to Kazakhstan’s Constitution and laws that “provide for freedom of religion”, which guarantee this right in Article 39. It states: “Human rights and freedoms shall not be restricted in any way.” Article 14 prohibits “discrimination on a religious basis” and Article 19 ensures that everyone has the “right to determine and indicate or not to indicate his/her ethnic, party and religious affiliation.” The Constitutional Council recently affirmed these rights by ruling that a proposed law, which would have limited the rights of certain individuals to practise their religion, was declared to be inconsistent with the country’s Constitution, which guarantees freedom of religion. Although Kazakhstan is 60 percent Muslim, the Jewish community is exceptionally well regarded, according to Chief Rabbi Yeshaya E Cohen. In a statement before the Conference on Human Rights and Religious Freedom, Rabbi Cohen reported: “In Kazakhstan, every religion and faith enjoys complete freedom of expression and government support and can well serve as an authentic model to all countries with regard to preventing and eliminating anti-Semitism and terrorism.” President Nazarbayev’s personal commitment to respecting all faiths and ensuring that religious harmony is a way of life in Kazakhstan is evidenced by his hosting of the third triennial Congress on World and Traditional Religions in July 2009. It brought together hundreds of religious leaders from around the world to promote religious tolerance, common ideals, and interfaith dialogue. During a visit to Kazakhstan in September 2001, Pope John Paul II stated: “It is with great affection that I kiss this land, which has given rise to a multi-ethnic state. Each guaranteed the same rights and freedoms, the spirit of openness and cooperation is part of your tradition.” Answering critics

Despite Kazakhstan’s impressive strides in transitioning to a democratic society, criticisms by some non-government organizations unfairly portray the country in negative terms. While some of the criticism may be warranted, it should be viewed in the larger context of Kazakhstan’s commitment to and progress towards achieving a true democracy. CRITICISM #1: Kazakhstan’s 2011 election was not fairly conducted, nor was it transparent and fully open to international observers. RESPONSE: Improvements in the electoral process were attested to by the majority of the 1,059 international

Kazakhstan at a glance

observers. The head of the delegation of the Parliamentary Assembly of the Council of Europe said: “PACE has observed elections in Kazakhstan in the past and is pleased to state progress from one election to another in this country. The delegation is united in its view that despite certain imperfections that invariably mar all elections in any country, the outcome of this vote truly reflects the will of Kazakhstan’s electorate.” The ODIHR/OSCE observer mission, which usually gives a cautious assessment of the elections in Kazakhstan, acknowledged in its statement the improvements compared to previous elections. It stated that “compared to the last presidential elections, the media provided more equality in covering candidates in the news programmes.” At the same time, it came up with a number of criticisms and recommendations for further improvements needed in the electoral process. Kazakh authorities have committed to continue working with ODIHR/OSCE on its recommendations in a cooperative manner. ODIHR’s focus on irregularities caught the attention of many. It is the Kazakh view that the ODIHR mission of observers did not grasp the free and transparent atmosphere in which elections were held, as well as the significant progress in Kazakhstan in this direction. The ODIHR estimations did not reflect the fact that the authorities and society exercised political will and aspire to attain international standards. CRITICISM #2: The media in Kazakhstan, with a few exceptions, is owned or controlled by the state and those close to the President. The few independent news publications and broadcast outlets that do exist are often subject to intimidation by state authorities. RESPONSE: While press freedoms are limited in comparison to Western standards, Kazakhstan has proven to be more progressive than other countries in Central Asia. Unlike some neighboring countries, where government control has tightened over the media, Kazakhstan is steadily embracing reforms to bring the media more into conformity with OSCE and international standards. This is a remarkable achievement for a country that once had only a few media outlets, purely government controlled. It now gives access to more than 2,000 local media resources, about 90 percent of which are non-governmental. In January 2009, the Kazakh Parliament adopted a reform package that places limits on the prosecution in libel cases, curtails the powers of arbitrary arrest and detention and extends the right of the media to appeal to the courts. The new media law was drafted by Kazakh NGOs, the Congress of Journalists and the OSCE Representative for Media Freedom. CRITICISM #3: Kazakhstan is essentially a one-party state under authoritarian rule, with no viable opposition party and little opportunity for citizens

to challenge the incumbent party and vote out of office the current leadership. RESPONSE: It is undeniable that President Nazarbayev received over 90 percent of the vote and his Nur Otan Party captured 88 percent, without a single parliamentary seat going to the opposition, in an election generally considered to be fair and open. It is difficult for the critics to accept that such staggering percentages are due to President Nazarbayev’s personal popularity and the fact that opposing parties do not have effective campaigns. Yet it is not unusual for a US Congressman to receive 90 percent of the vote in their contested races. The Western media has coined the phrase “President for life” to describe a constitutional amendment allowing a third term for Nursultan Nazarbayev, yet the US Constitution allowed four terms for President Roosevelt. Recently, New York Mayor Michael Bloomberg pushed through a change in the city’s charter to allow him to run for a third term. There is little question that President Nazarbayev is portrayed as an authoritative figure, but in Kazakhstan he is viewed as a father-like leader who is moving the country out of its Soviet past toward independence and prosperity. He exemplifies the qualities of Singapore’s Lee Kuan Yew, whose 30-year reign as Prime Minister transformed a backward Third World country into a modern, prosperous and stable Asian giant and who remains one of the most influential figures in the world. CRITICISM #4: Reports in news publications have raised questions about Kazakhstan’s treatment of certain ‘nontraditional’ religious groups, notably the Jehovah’s Witnesses, Hare-Krishnas and the Unification Church. In most cases, the reported incidents have involved regional or local authorities and often the issues concerned state laws that require registration of such groups or legal proceedings over property rights. RESPONSE: JEHOVAH’S WITNESSES Kazakhstan enjoys friendly relations with Jehovah’s Witnesses (JW). Kazakhstan’s Ambassador to the US has met with the leaders of JW: Mr Philip Brumley, General Counsel to the Governing Body of Jehovah’s Witnesses, and Mr Gregory Olds, Associate General Counsel, and had an extensive and friendly exchange. JW have been freely and happily operating in our country for more than a century and have been successfully resolving any difficulties they may have had through dialogue. Recently, some of the 16,000 JW followers in Kazakhstan had legal difficulties over registration matters that are now resolved. JW’s leaders are publicly recognizing that Kazakhstan’s Government “stands up for religious freedom.” HARE KRISHNA The situation involving the Hare Krishna (HK) community in the Karasay District is a property dispute. Legal action was initiated against some

Kazakhstan country profile 2012

Kazakhstan at a glance

members of the local Hare Krishna community to stop their violations of Kazakh legislation regarding improper use of property, falsification of property titles and violation of building, design and sanitary norms, as well as fire safety. Despite the obvious violations and the fact that the local HK community has no legal basis for claiming the property, Kazakhstan’s authorities are doing their best to help the HK community and have offered local HK community members the choice of five land plots free of charge to move their houses. These were rejected as inadequate. The essence of the dispute is what constitutes proper compensation and/or an alternative site to be provided to that HK community. Local authorities remain open to negotiation. There are about 10 other Krishna Consciousness community groups legally active in Astana and six other regions of Kazakhstan. These law-abiding communities are actively participating in strengthening inter-religious dialogue and have never had any problems with Kazakhstan’s authorities. EVANGELICAL CHRISTIAN-BAPTISTS Leaders of 300 Evangelical Christian-Baptists churches have registered their communities and freely operate in Kazakhstan. There are normal relations between them and the Government. However, some Evangelical ChristianBaptist leaders are persistently evading any form of legally prescribed registration at all levels, citing religious creed. It is a shame as the law requires a very simple form of notification (name, address, contact details etc), which is not burdensome. Having faced administrative fines imposed by local courts for violating Kazakhstan’s legislation, they twisted the situation by presenting law-enforcement actions as “vivid examples of religious persecution” in Kazakhstan. CRITICISM #5: The imprisonment of Mr Yevgeni Zhovtis, a prominent Kazakh human rights activist, inspired all sorts of allegations among international human rights activists. RESPONSE: On 3 September 2009, Mr Yevgeni Zhovtis (Director of the Kazakhstan International Bureau for Human Rights and Rule of Law) was found guilty of the car incident that resulted in the death of Mr Kanat Moldybayev. The Balkhash District Court (Almaty Region) sentenced Mr Zhovtis to four years of imprisonment in a special minimum-security settlement. The tragic accident happened on the night of 30 July 2009, when Mr Zhovtis was returning from a fishing trip. While driving an SUV towards Almaty, Mr Zhovtis was blinded by the high-beam headlamps of the cars coming in the opposite direction, which led him to temporarily lose full visual control of the road ahead of him. The Court ruled that Mr Zhovtis did not take the necessary precautions by stopping or slowing down his vehicle, as the traffic rules mandate in these types of situations.

Kazakhstan country profile 2012

Mr Zhovtis continued to drive at the speed of 80-90 km/h. The failure to take this precaution resulted in the death of a 35-year-old pedestrian, Mr Kanat Moldybayev, who died instantly at the scene of the accident due to multiple injuries. The Kazakh legal system is based on the Continental legal tradition, which puts absolute liability on the person who causes the death or severe injury of a human being. In this particular case, the person who caused the death of Mr Moldybayev was Mr Zhovtis. In addition, the Court found Mr Zhovtis guilty of not taking necessary precautions that would have made it possible to avoid the accident. Mr Zhovtis’s efforts to reconcile with the relatives of the victim did not qualify as a circumstance mitigating his guilt since he had pleaded innocent. Besides, only some of the late Mr Moldybayev’s relatives agreed to reconcile; others strongly insisted on pursuing the criminal case against Mr Zhovtis. Still, the Court took into account Mr Zhovtis’s good character, both professional and personal, provided by his friends and colleagues, and assigned him to a minimumsecurity facility instead of regular detention facilities. It was also fully recognized that Mr Zhovtis was not drunk, did not violate the speed limit, did not attempt to leave the scene of the accident and tried to help the victim by calling the ambulance and police. THE STATISTICS: From January-July 2009, there were 179 similar cases throughout Kazakhstan. Among them, 136 cases, or 76 percent, resulted in prison sentences (the rest of the cases did not involve loss of life or severe injuries): four people got one year, 50 people got one to three years, 50 others got three to five years, and 32 people got five to 10 years. THE CONTROVERSY: Unfortunately, this tragedy has become a subject of controversy and gross misrepresentation of facts. Given the nature of Mr Zhovtis’s activities and his high international status, immediately after the accident various rumours circulated that the verdict was politically motivated. There were attempts to incriminate the Government by focusing on a few procedural irregularities. Behind this rhetoric and the efforts to politicize the case, the fact is that a person died as a result of Mr Zhovtis’s actions. Mr Yevgeni Zhovtis is a prominent human rights activist who worked closely with the Government of Kazakhstan to improve national legislation. His expertise, proactive involvement and constructive criticism were valuable to the efforts of reforming Kazakhstan’s legislation and legal system. Mr Zhovtis is widely respected both by his colleagues in the NGO community and his partners in the Government of Kazakhstan. The Court found Mr Zhovtis guilty in the death of Mr Kanat Moldybayev. The Court proceedings were as transparent, open and unbiased as was possible. Many supporters of Mr Zhovtis, including the Embassies of

Kazakhstan at a glance

the United States and some other countries, received unimpeded access to the Court hearings. There was no Government interference in the Court’s deliberations. Any allegations to the contrary are baseless and false. The fact that Kazakhstan’s judicial system is still maturing does not present any grounds for questioning its credibility.

On 17 February 2012, Mr Zhovtis was released on amnesty from the detention facility in Ust-Kamenogorsk where he had spent the past two and a half years of four years of his sentence. The amnesty was announced on the occasion of the 20th anniversary of the Independence of Kazakhstan. Currently Mr Zhovtis continues human rights advocacy and opposition activities.

President Nazarbayev calls for socio-economic change in his state-of-the-nation address

“Socio-Economic Modernization as the Main Vector of Kazakhstan’s Development”

On 27 January 2012, President Nursultan Nazarbayev delivered his state of the nation address focusing on socio-economic modernization. “New tasks to strengthen the economy and improve people’s welfare represent the new stage in Kazakhstan’s development path,” the President told members of Parliament, the Government, and the people of the country during his address, televised live nationally. He went on to note that finding the optimal balance between achieving economic success and providing benefits to the public is vital for Kazakhstan. For this, the country needs to implement a set of tasks in 10 directions, he said.

Nazarbayev named employment as the first direction. “On my instruction, the Government has approved a fundamentally new employment programme,” the President announced. The programme includes tasks such as the creation of an effective system of training and employment assistance, providing greater support for entrepreneurship and increasing labour mobility. Large-scale implementation of the programme will begin this year, the President said. Affordable housing was named as the second direction. Each year Kazakhstan commissions six million square metres of new housing. However, more than half

Kazakhstan country profile 2012

Kazakhstan at a glance

a million young families require their own homes. To solve the problem of housing, the President instructed the Government to develop and adopt a state programme named “Affordable Housing – 2020” by 1 July. Development of regions and small towns is the third direction. The country should build new plants and create industrial jobs and social infrastructure in economically promising areas. President Nazarbayev highlighted the development of small, single-industry towns as a separate issue. As the Zhanaozen disturbances last December showed, singleindustry towns are vulnerable to social risks. Therefore the Government was instructed to prepare a special programme on the development of one-company towns. Human resources

The fourth direction concerns the improvement of the quality of public services: “It is an important aspect of combating corruption and enhancing public trust in the activities of state bodies.” For this, the country needs to develop e-government, simplify administrative procedures, and improve the population’s computer literacy, the head of state said. As the fifth direction, Nazarbayev named the improvement of human resource capacity. “Our most important task is to prepare a skilled political class of managers. I instruct the Government and the Presidential Administration to prepare proposals on candidates for the Presidential personnel corps by the end of the first half of 2012,” he said. This body will form the basis of a new managerial elite, which will lead the country in the 21st century. The President identified modernisation of the judiciary and law-enforcement systems as the sixth direction. The procedure for the formation of the judiciary needs to be radically revised, the new Criminal and Procedure Code need to be completed, and the draft bill on private-detective activity is to be prepared. Another important task is to update the personnel of lawenforcement and special bodies. Industry and agriculture

Qualitative growth of human capital in Kazakhstan is the seventh direction, which concerns the improvement of education and health. The country needs to introduce advanced techniques and technologies in the education process, improve the quality of teaching staff, and increase access to education for young people. Another important task is to increase the availability and quality of medical services, as well as to promote a healthy lifestyle. The eighth direction relates to the pension system. Nazarbayev instructed the Government and the National Bank to develop proposals to improve the pension system, especially as far as the oversight of pension funds is

Kazakhstan country profile 2012

concerned. The industrial and innovation projects must continue to be implemented, the President continued. Therefore, he said, the Programme of Accelerated Industrial and Innovative Development will remain the benchmark of economic modernisation. He also outlined several major multi-billion-dollar projects that the Government is to implement within the next few years, including the construction of a power station in Balkhash, a petrochemistry plant in Atyrau, a gas processing plant at the Karachaganak Field and a set of gas pipelines throughout the country. Last but not least, Nursultan Nazarbayev named the development of agriculture. Kazakhstan will introduce mechanisms of state support for retailers without intermediaries, create a single grain holding, and establish a state system of guarantees and insurances to reduce risks of private investment in agricultural production, he said. President Nazarbayev stressed that the Government needs to strengthen the innovation system of the country. Diversification of foreign direct investments in Kazakhstan remains an important issue as well. They must be directed to promising industries such as tourism, the President said, as he called for the development of skiing resorts near Almaty. Foreign policy

He also went over key aspects of Kazakhstan’s foreign policy for the decade ahead. “We have responded to the global challenges of the 21st century by deepening integration on the Eurasian space. As a responsible member of the international community, Kazakhstan will continue to actively seek ways to strengthen peace and security. Kazakhstan will remain committed to a balanced foreign policy, interacting both with the West and Asia,” Nazarbayev said. He listed several key events this year in the foreign policy area, including the 20th anniversary of the Conference on Interaction and Confidence Building Measures, which now brings together 24 states from Israel to Iran to India to Pakistan to China and Vietnam. “Today, the whole world and every state need to find answers to powerful global and domestic challenges. By performing the tasks in 10 directions of the socioeconomic modernization, we will strengthen the economy, make our society stable, and improve the well-being of our people,” the President said. President Nazarbayev called social modernization the central issue for the new Parliament and the Government, as well as all responsible forces, such as Kazakhstan’s parties, public associations, creative and professional unions, and the media. “We must unite all the forces for the benefit of our motherland. I call on all the citizens of Kazakhstan to take active part in the work to achieve the identified goals,” the President concluded.

Kazakhstan - ECONOMIC OVERVIEW

KAZAKHSTAN

Economic Overview

Development in a post-crisis period It is the ninth largest country in the world with a land area equal to that of Western Europe, but with one of the lowest population densities globally. Strategically, it links the huge and fast-growing markets of China and South Asia with Russia and Western Europe by road, rail and ports on the Caspian Sea. Oil reserves (proven) are the ninth largest in the world; hydrocarbon output is the equivalent of nearly a quarter of GDP and accounts for over two-thirds of exports. Kazakhstan is increasingly conscious of its regional potential in energy and trade transit. Large cross-regional energy and transport investments are envisaged. Kazakhstan formed a Customs Union with Belarus and Russia in 2010. Global integration is pursued through membership of the World Trade Organization (WTO). Kazakhstan became a donor in the World Bankâ&#x20AC;&#x2122;s International Development Association (IDA) in 2010. The countryâ&#x20AC;&#x2122;s development strategy focuses on modernization and a shift towards growth from non-oil sources. It is based on diversification, innovation,

investment in human capital, and international trade integration for job creation. Increasing emphasis is also being put on strengthening governance (modernizing the judiciary and civil service), the business-enabling environment and private-sector enterprise. Following the parliamentary elections of January 2012, the President of Kazakhstan outlined the key government priorities within this overall strategy. An improvement in the quality of public services and in skill levels of the workforce are key goals. Finally, renewed emphasis would be placed on raising standards in education, including vocational education, and regional development and diversification in one-industry towns. Kazakhstan weathered the global financial crisis well through a dexterous response combining fiscal relaxation with bank stabilization measures. In 2009, the Government announced large-scale support measures such as recapitalization of banks and support of the real estate and agriculture sectors, as well as small and

Kazakhstan country profile 2012

Kazakhstan - ECONOMIC OVERVIEW

116 112 % 108 104 100

261.3 243.1 226.5 110.7 216.7 223.8 109.8 109.8 109.3 109.6 109.7 108.9 107.3 163.9 199.0 149.5 179.7 136.8 103.3 124.6 109.8 101.2 107.5 113.5

2000

2001

2002

2003

2004

2005

real growth

medium enterprises (SMEs). The total value of the stimulus programs represented 14 percent of the country’s GDP ($20 billion). As a result of the global economic crisis, the GDP of Kazakhstan slowed down to 1.2 percent in 2009, but according to results in 2010 and 2011, the growth rate has increased to 7.3 and 7.5 percent respectively. Kazakhstan’s external position has improved as commodity prices have strengthened. Terms of trade gains have led to a strengthened external position; the current account surplus is estimated at 7.3 percent of GDP in 2011. Gross international reserves climbed to $35.4 billion in February 2012 from $33.7 billion in January 2012, on the back of about $1.2 billion of purchases in the spot market. Also, the assets of the National Oil Fund increased from $45.5 billion to $47.4 billion in February 2012. Total reserves currently stand at $82.7 billion – an all-time high. Inflationary pressures resulting from commodity price shocks and an accommodating fiscal stance were contained by the end of 2011. By December 2011, CPI inflation decelerated to 7.4 percent year-on-year (from nine percent registered in the middle of the year), below the eight percent target. The monetary regime of a crawling exchange rate pegged to the dollar and inflation targets will exert counter-inflation pressures. The fiscal position has improved significantly since the crisis. The non-oil deficit improved from over 10 percent of GDP in 2008-09 to about eight percent of GDP in 2011. The state budget deficit (determining net government borrowing) improved notably and is estimated at 2.1 percent of GDP in 2011. Fiscal policy is intended to be supportive of the anti-inflationary stance with the goal of bringing the non-oil deficit down to pre-crisis levels over the coming period. The government has already increased excise rates and reintroduced customs duty on oil exports. This is complemented by cuts in non-priority spending and the removal of crisis spending (such as reduction in subsidies to state-owned enterprises and a 15 percent downsizing of

Kazakhstan country profile 2012

2006

2007

2008

2009

2010

280 250 220 190 160 130 100

GDP

GDP, real growth

2011

accumulated GDP growth (right)

public administration), with budget outlays down to precrisis levels at around 22 percent of GDP (from 27 percent of GDP during 2008-09). Conditions in the banking sector constrain credit flows to productive non-oil activities. Although bank liquidity is ample, non-performing loans (NPLs) remain at about 33 percent of all loans. Unresolved NPLs constrain investments and operations of affected firms, the majority of which are in the non-oil sector. The Government of Kazakhstan is improving the insolvency regime and developed a strategy in 2011 to reduce the burden of the NPL on the banking system. Outcomes of the government’s anti-crisis package

As a result of the global crisis, Kazakhstan’s GDP slowed to 1.2 percent in 2009. The situation required immediate anti-crisis action by the Government, with the injection of an essential bulk of money into the economy and stabilization of the financial sector. Anti-crisis efforts cost the country more than KZT three trillion ($20 billion). Due to concentrated anti-crisis measures taken jointly by the Government and the National Bank, in 2010 and 2011 the economy of Kazakhstan demonstrated a stable growth rate of 7.3 and 7.5 percent respectively. The Government has managed to prevent an economic recession, settled real-estate-market problems, supported SMEs, encouraged innovation development and financed industrial, agricultural and infrastructure projects. During the crisis the National Bank eased monetary policy and undertook measures to increase the liquidity of the domestic banking system. The mechanism of reserve requirements for banks had been considerably softened. In the beginning, to simplify the fulfillment of standards the National Bank expanded the structure of reserve assets. Then it reduced three times the rates of the reserve requirements to banks. Rates have been lowered from six to 1.5 percent on internal liabilities and from eight to 2.5 percent on other liabilities.

Kazakhstan - ECONOMIC OVERVIEW

BLN. USD

Gross external debt of Kazakhstan 140 120 100 80 60 40 20 0

120 98.2

92.4

80.9 39.2

45.9

67.1 (40.2)

45.9 (30.1)

79.8

79.4 (49.6)

Other Sectors (incl. inter-company debt) General Government

Since 30 November 2009 the rate of zero percent was introduced for banks in the process of debt restructuring. A decrease in the rates of reserve requirements allowed the liquidity of banks to increase considerably. In these conditions, redirecting free liquidity into the real sector is becoming the main task for the Government and the National Bank. Therefore the level of yield on the financial tools and operations of the National Bank was lowered to decrease their attractiveness in order to reorient the storage process of money surpluses (which were accumulated by banks on deposits and correspondent accounts in the National Bank and in notes of the National Bank) to lending to the economy. Anti-crisis efforts to support small and medium businesses were especially effective. More than 10,000

19.9 69.6

19.9

30.2

101.5 (58.7)

93.4 (52.3) Banks Monetary Authorities

100 80 60

40 20 0

to GDP ratio

small and medium enterprises received funding from the state under 20 programs of support. During 2007-11 the Government allocated more than $4 billion to SMEs. The number of ongoing small and medium business entities increased by 6.2 percent in 2011 compared to 2010. In the framework of the Governmentâ&#x20AC;&#x2122;s Industrialization Map in 2011, more than 230 investment projects worth KZT 1 trillion ($6.7 billion) were launched. These projects have provided 45,000 new jobs. In aggregate during 2010-11 about 389 projects worth KZT 1.8 trillion ($12.0 billion) were launched, which have added 90,000 jobs to the economy. The production of goods and services by start-ups has increased up to KZT 510.5 billion ($3.4 billion). More than 100 new products have been introduced to the local market.

KEY ECONOMIC INDICATORS Table 1: Macroeconomic indicators 2003

2004

2005

2006

2007

2008

2009

2010

2011

GDP growth (%)

9,3

9,6

9,7

10,7

8,9

3,3

1,2

7,0

7,5

GDP per capita ($)

2068,0 2874,0 3771,0 5292,0 6772,0 8514,0 6732,1 8326,2 11245

Current account (% GDP)

(0,9)

(0,8)

(1,8)

(2,5)

(7,9)

(4,7)

(3,2)

(3,8)

7,3

Trade balance (% GDP)

11,9

15,7

18,1

14,4

25,1

14,1

22,3

26,2

Exports (%)

32,0

55,7

37,4

37,0

24,7

48,8

(39)

45,9

50,0

Gold and foreign-currency reserves ($ billion) Foreign direct investments (% GDP) Sovereign debt (% GDP)

5,0

9,3

7,1

19,1

17,6

19,9

23,2

31,2

29,3

7,2

12,6

3,7

8,2

7,6

11,1

8,9

7,5

11,0

National Fund, including assets in national currency (% GDP)

15,0

11,4

8,1

6,7

5,9

6,4

13,0

2,8

11,5

11,4

14,2

18,1

20,0

20,5

27,9

24,2

23,5

Sources: National Bank, Ministry of Economic Development and Trade

Kazakhstan country profile 2012

Kazakhstan - ECONOMIC OVERVIEW

Table 2: Economic structure Origins of gross domestic product

% of GDP

Components of gross domestic product

% of GDP

Agriculture

5.1

Government consumption

17.5

Industry

31.7

Gross fixed investment

18.7

Services

51.8

Exports of goods & services

48.9

Manufacturing

43.5

Imports of goods & services

21.0

Construction Total exports Exports growth

6.7 $88.1 bln. 48%

Total imports Imports growth

$38.0 bln. 25%

Structure of exports

Structure of imports

Mineral products including oil and gas

75.5

Machinery, equipment, transport vehicles

53.8

Metals and metal products

13.8

Mineral products including oil and gas

2.2

Animal and plant products

4.0

Metals and metal products

7.3

Chemicals and chemical products

4.0

Chemicals and chemical products

13.0

Machinery, equipment, transport vehicles

0.5

Animal and plant products

8.8

Main destinations of exports

% of total

Main origins of imports

% of total

China

18.5

Russia

42.8

Italy

17.1

China

13.2

Russia

8.5

Germany

5.5

Netherlands

7.5

Ukraine

4.6

France

6.1

United Kingdom

4.5

Sources: Agency of Statistics and Customs Committee of the Ministry of Finance of Kazakhstan

Energy overview Kazakhstan is rich in oil and minerals. Industry analysts believe that a planned increase in oil production and the development of new oil fields will enable Kazakhstan to produce as much as three million barrels (477,000 tonnes) per day by 2015, lifting the country into the ranks of the world’s top five oil-producing nations. Major oil and gas fields and their recoverable oil reserves are Tengiz with seven billion barrels (1.1 billion tonnes); Karachaganak with eight billion barrels and 1.35 trillion m³ of natural gas; and Kashagan with seven to nine billion barrels (936 million to 1.2 billion tonnes). One of the country’s top priorities in the extractive sector is the efficient development of its Caspian offshore energy resources. Recent developments in this area give hope that further development of North Caspian oil and gas fields will start in the not too distant future. Originally, the status of the Caspian Sea was regulated by the bilateral treaties made between the former Soviet

Kazakhstan country profile 2012

Union and Iran in 1921 and 1940. With the break-up of the Soviet Union, offshore territorial rights have generally become more complex. In 2002 Kazakhstan signed bilateral agreements with Russia and Azerbaijan on delimitation of the Northern Caspian seabed and the joint development of the Khvalynskoe, Tsentralnoe and Kurmangazy offshore oilfields with Russia. In 2003 Kazakhstan adopted a State Program of development of the Kazakhstan sector of the Caspian Sea. The main aim of this is to boost environmentally safe oil and gas (O&G) production to generate revenues to help the diversification and modernization of the whole economy, making it highly competitive and non-dependent on the oil and gas sector. In 2006 phase two of the strategy commenced. With the launch of the State Program of Accelerated Industrial-Innovative Development for 2010-14, Kazakhstan’s O&G sector is entering a more advanced,

Kazakhstan - ECONOMIC OVERVIEW

value-added development phase. The following multimillion, pioneer projects have laid the foundation for the overall diversification of the country’s O&G sector and the development of relevant infrastructure: ■■ $6.3 billion construction of an integrated gas chemical complex in the Atyrau region (Western Kazakhstan) – 2015 ■■ $1,130 million construction of an aromatic hydrocarbons production complex – 2013 ■■ $290 million construction of a road-bitumen plant based on the existing Aktay plastic plant – 2012 ■■ Modernization and technological upgrade of existing refineries (Atyrau, Pavlodar and Shymkent)

Having abundant natural energy resources, Kazakhstan’s Government and the energy sector keep an attentive eye on global trends. Optimal energy mix, efficient use, research and development of renewables are all on the policy agenda Kazakhstan has an abundant supply of accessible mineral and fossil-fuel resources. The country has some three percent of the world’s raw materials and a natural resource base of over $300,000 per capita (among the highest in the world – twice the level of Russia, higher than Australia), four percent of global iron reserves, eight percent of the world’s total zinc reserves and four percent of the world’s total chrome reserves, accounting for 15 percent of global production. According to estimates, Kazakhstan has the second largest lead reserves, the third largest manganese reserves, the fifth largest copper reserves, and ranks in the top ten for coal and gold. Global demand for quality uranium fuels increases year by year. Forty new power-generating units are being constructed in 15 countries. Kazakhstan has been an important source of uranium for more than 50 years. In 2011, the country maintained its position as the world’s leading uranium producer, with almost 35 percent of world production. Kazakhstan has the second largest uranium reserves. It has total resources and reserves of uranium of over 1.5 million tonnes, over 1.1 million tonnes of

Energy facts and figures Minister of Industry and New Technologies (for nuclear energy, alternatives and renewable, energy efficiency and electric power): Mr Aset O Issekeshev Minister of Oil and Gas: Mr Sayat Mynbayev President, KazMunayGas (National Oil & Gas Company): Mr Lyazzat Kiinov Other organisations: KAZENERGY Association; Kazakhstan Electricity Grid Operating Company (KEGOC); Kazatomprom (National Atomic Company) Major Oil and Gas Fields: Tengiz (oil), Karachaganak (natural gas and condensate), Kashagan (offshore, oil), Uzen, Kumkol, Korolev, Tenge, Uritau (oil, natural gas), Zhanazhol Major Oil Ports: Atyrau, Aktau, Bautino and Kuryk on the Caspian Sea Oil Export Pipelines: Caspian Pipeline Consortium (CPC) – Tengiz-Novorossiisk (Russia); Uzen-Atyrau-Samara (Russia); Kenkyak-Orsk (Russia), Kenkyak-Atyrau (Kazakhstan), AtasuAlashankou (China) Major Oil Refineries (crude-oil refining capacity): Pavlodar (162,666 bbl/dr); Atyrau (104,427 bbl/d); Shymkent (160,000 bbl/d) Major Power Plants (capacity): Ekibastuz no. 1 (4,000 megawatts, MW), Yermak (2,400 MW), Zhambyl (1,230 MW) Current Oil Reserves: 32.5 billion barrels (twice as much as the North Sea) Projected Oil Reserves: 100-110 billion barrels by 2015 (would be in top five of the world) Oil Production (2011): 80.1 million tonnes Net Oil Exports (2011): 71.4 million tonnes Crude-Oil Refining Capacity: 14.5 million tonnes (17.5 million tonnes by 2015) Current Gas Reserves: 3 trillion cubic metres Projected Gas Reserves: 5 trillion cubic metres by 2015 Natural Gas Production (2011): 39.5 billion cubic metres Natural Gas Consumption (2011): 10.2 billion cubic metres Natural Gas Export (2011): 8.2 billion cubic metres International Transit of Gas (2011): 96.7 billion cubic metres Coal Reserves: 35.8 billion tonnes (or 3.6 percent of the world reserves) Coal Production (2011): 116.3 million tonnes Electric Generation Capacity: about 19.5 gigawatts (GW) Electricity Generation (2011): 85.8 billion kilowatt-hours (kWh) Electricity Consumption (2011): 88.1 billion kWh Uranium Reserves: 1.5 million tonnes (or 20 percent of the world reserves) Uranium Production (2011): 19,450 tonnes

Kazakhstan country profile 2012

Kazakhstan - ECONOMIC OVERVIEW

which can be mined by the in-site leaching method. Some 50 uranium deposits are known, in six uranium provinces. Between 2001–10, uranium production in Kazakhstan rose from 2,000 to over 17,800 tonnes per year. Further mine development is under way with a view to reaching a production rate of 30,000 tonnes per year by 2018. State-owned National Atomic Company Kazatomprom is the sole organization for uranium mining, reprocessing, export and import operations in Kazakhstan. Having abundant natural energy resources, the Government and the country’s energy sector keep an attentive eye on global energy trends. Optimal energy mix, efficient energy use, a significant environmental component in energy policy, research and development of renewables are all on the country’s energy policy agenda. In 2006 Kazakhstan produced its first wheat-based bioethanol and this private-sector programme is expanding further. There are also plans

to set up wind farms in the mountainous region of Almaty. The law on using renewable energy has already come into force. Kazakhstan has numerous opportunities for cooperation with the US in this area and welcomes the participation of the most advanced companies in the realization of alternative energy projects inside the country. At the 7th Annual Kazakhstan-US Energy Partnership Meetings in Washington, DC in November 2010, Minister of Oil and Gas Sayat Mynbayev and US Deputy Secretary of Energy Daniel Poneman agreed to work together on addressing environmental concerns. Energy transportation and infrastructure are key elements of a viable energy policy. The EU looks forward to cooperating with Kazakhstan in this area, particularly on transcontinental gas and oil transportation issues. The country’s oil and gas reserves, and its pivotal location, make it of strategic importance to the US and its Western allies in terms of providing global energy security.

Hydrocarbons The proven, large reserves of oil and gas (about three percent and one percent respectively of the world’s total) and significant forecast reserves (13-18 billion tonnes of standard fuel) in Kazakhstan make investing in the fuel and energy sector a priority. Oil reserves per capita in Kazakhstan are five times as high as in Russia and higher than in Iran. Hydrocarbons are being developed at 241 fields. As of 31 December 2011, the number of hydrocarbon subsoil-use contracts is 204. A total of 142 companies are operating in the sector: 20 joint ventures, 48 foreign companies and 74 local companies. The limit of O&G production has not yet been reached. With current production at 79.7 million tonnes, the country will extract up to 85.0 million tonnes of oil by 2014 and about 120-130 million tonnes by 2015. Kazakhstan occupies ninth place in terms of proven oil reserves in the world and second place in the Commonwealth of Independent States (CIS). Proven reserves will ensure extraction for 50 years for oil and 75 years for gas, in line with the world average figure for oil-extracting countries. The future growth of the domestic oil sector mainly depends on developing the Kazakh sector of the Caspian Sea, where the forecast reserves are quite promising. The Northern Caspian Project alone is expected to attract more than $136 billion. Oil and Caspian offshore development strategy and pipelines policy

Some estimates say that the offshore Kashagan Field alone may contain up to 50 billion barrels of oil.

Kazakhstan country profile 2012

Kazakhstan’s vast natural resources are projected to provide two to three percent of the world’s expected oil demand within the next decade. ■■ By 2002, most O&G fields under development had reached peak levels of production. Further growth of onshore production was linked to intensified development of such oilfields as Tengiz and Karachaganak. At the same time, research has shown that major gains in explored reserves and in hydrocarbons production are expected to take place in the Caspian aquatic area. It normally takes eight to 10 years to get to the commercial production stage. The main targets of the State-run Program of Development of Kazakhstan’s Sector of the Caspian Sea include: gains in explored hydrocarbons resources and bringing of production to a stable high level; ■■ development of a multimodal system of hydrocarbons transportation; ■■ reprofiling and modernization of domestic machinebuilding enterprises; ■■ development of the maritime fleet and sea ports; ■■ build-up of local engineering capabilities; training of domestic specialists; ■■ enforcement of health-protection and environmentprotection measures; ■■ development of petrochemistry enterprises; ■■ The Government will be in charge of defining blocks to be offered for tenders and of defining the order and conditions of setting them forth for tenders.

Kazakhstan - ECONOMIC OVERVIEW

Kazakhstan’s oil fields

NCSPSA Kazakhstan

Kairan

Kashagan

Russia

Kalamkas More

Caspian Sea

Aktote

Aktau Uzbekistan

Block ‘N”

BTC Pipeline

Baku

Azerbaijan

ConocoPhillips Acreage

Oil Field

Prospect

Pipeline

breakdown of company participation in the Kashagan PROject

16.81%

At present, there are about 23 undistributed blocks. The state budget will finance the exploration of some of them. To define the most suitable subsoil users for both exploration and development, the plan is to offer for tender at least three blocks per annum. At the same time, blocks will be offered for additional exploration. The Kazakh Government’s commitment in cooperation with partners from abroad is to respect

16.81%

8.4%

7.56%

contracts signed with foreign companies but the contracts must be honoured by both sides. According to preliminary estimates, the Program implementation will allow bringing production at maritime oilfields to 100 million tonnes per annum by 2015 and maintaining this level for 25-30 years. Kashagan is a momentous project not only for Kazakhstan’s energy sector, but for the entire world.

Kazakhstan country profile 2012

Kazakhstan - ECONOMIC OVERVIEW

Kazakhstan’s Oil Export (major routes) 2010

2011

2015 likely

CPC (Kazakh share)

28.6

Atyrau-Samara

Aktau Port (via Caspian Sea)

15.3 10.1 2.0 9.2

Rail

6.0

Total:

71.2

28.5 15.4 10.9 1.2 8.0 7.4 71.3

52.5 30 20 (15) 201-228 (241)

Atasu-Alashankou KPO-Orenburg

Source: Kazakhstan’s Ministry of Oil and Gas

In 2008, Kazakhstan’s Ministry of Energy and Mineral Resources and KazMunayGas (KMG) signed the final agreement with all co-venturers in the international Consortium (Eni, ExxonMobil, Shell, Total, ConocoPhillips and INPEX). Under this agreement, KMG acquires a major participation level in the project, going from 8.33 percent to 16.81 percent. Given the size and complexity of the Kashagan project and other North Caspian Sea Project Sharing Agreement (NCSPSA) developments, the Kazakh

“Attention should be focused on diversification and securing stable routes for future energy supplies. We will stick to the principle of pursuing a multi-vector policy in this regard.” Nursultan Nazarbayev, President of Kazakhstan

government and Agip KCO have agreed to consolidate their efforts and resources and implement the project with the following division of responsibilities: ExxonMobil – offshore drilling; Shell – offshore development (except drilling); Eni and Agip KCO – onshore development; ConocoPhillips – audit. KMG will take on an increasing role in the project and will be involved in each phase of its development. According to the agreement, a new joint operating company for the Kashagan project has been established, which includes all the co-venturers in the NCSPSA

Kazakhstan country profile 2012

Consortium. This joint operating company is named North Caspian Operating Company (NCOC) BV. Commercial oil production at Kashagan should start between December 2012 – June 2013. But the target date for non-commercial oil production is 1 December 2012. When oil production begins, 75,000 barrels a day are expected to be extracted, increasing to 370,000 barrels a day. Two to three years later, the third tranche of oil production increase is expected – up to 450,000 barrels a day. By the end of the next decade, Kashagan oil production is expected to reach 1.5 million barrels a day. The agreement on ‘N’ Block, reached in 2008, is another important step forward in the development of mutually beneficial cooperation between Kazakhstan and foreign energy corporations. On 6 October 2008, KMG, ConocoPhillips and Mubadala Development Company PJSC (Mubadala) announced the signing of a memorandum of understanding (MOU) to negotiate terms for the exploration and development of the ‘N’ Block. The MOU was signed by Mr Kabyldin, the then KMG president, Mr Mulva, the ConocoPhillips CEO, and Mr Al Mubarak, Mubadala’s CEO, and was witnessed by Mr Sayat Mynbayev, the Minister of Energy and Mineral Resources of Kazakhstan. The agreement on the principles of cooperation on the Block N shelf project was signed by KMG, ConocoPhillips and Energy & Industry Holding Co., a wholly owned subsidiary of UAE-based Mubadala Development Company, in Almaty on 5 December 2008. The parties agreed that the project would be managed by a joint operating company, of which KMG will own 51 percent and the other two companies will own the remaining 49 percent. During the production period, KMG will be the sole owner of the operating company. “In accordance with this agreement, KazMunayGas will transfer 24.5 percent stakes in the contract for the subsurface use to each ConocoPhillips and Mubadala,” Mr Kabyldin said.

Kazakhstan - ECONOMIC OVERVIEW

On 11 June 2009, ConocoPhillips, KMG and Mubadala signed project agreements allowing the joint exploration and development of the ‘N’ Block. “The rise of our cooperation with ConocoPhillips and Mubadala to a new level indicates foreign investors’ great interest in developing Kazakhstan’s offshore fields in the Caspian and reaffirms the potential of our country’s oil and gas sector. This project will enable us to use new technology and international expertise in developing offshore oil and gas resources of Kazakhstan,” said KMG’s Kairgeldy Kabyldin. The parties are planning to launch commercial production around the start of 2016 if all of the forecasts for raw hydrocarbons are confirmed. The ‘N’ Block is located offshore 30 kilometers southwest of Aktau, Kazakhstan’s port in the Caspian Sea. The Block covers approximately 8,100 square kilometers and is considered highly prospective for both oil and gas. This field has some 630 million tons of geological resources, with recoverable resources estimated at about 270 million tons. Under the agreement, KMG’s foreign partners will pay a signing bonus of $100 million. Kazakhstan’s multi-vector pipeline policy is making a significant contribution to global energy security. As KSCS oilfields get developed, the need for diversification of export routes keeps growing. Proximity to such dynamically developing nations as Russia and China opens wide opportunities for Kazakhstan’s hydrocarbons exports. To ensure entry to the markets of both countries, it is vital to develop and enhance the trunk pipelines system. Enhancement of export routes implies multimode transportation of hydrocarbons, with efficient combination of pipeline, railway and sea transport capabilities. The Caspian Pipeline Consortium (CPC) and Atyrau – Samara pipeline system are currently traditional routes for Kazakhstan’s oil exports. Significant volumes of Kazakh oil (about 50 million tonnes a year) are exported through the Russian territory. Under the pipeline diversification policy, Kazakhstan is actively developing the following projects: ■■ Kazakhstan’s Caspian Transportation System (KCTS) is being developed to meet the needs of increasing oil production at the Tengiz and Kashagan oil fields through the Caspian Sea to global markets via the Baku-Tbilisi-Ceyhan system (BTC). Transcaspian oil exports go through the Baku-Tbilisi-Djeihan system. Kazakhstan’s approach to this project has been confirmed by the KCTS. Phase I of the Kazakhstan – China oil pipeline project includes the AtasuAlashankou pipeline and Kenkiyak-Kumkol pipeline (to connect western and eastern parts of Kazakhstan), put into operation in 2006 and 2010 respectively. ■■ Expansion of the Caspian Pipeline Consortium from its current 32.9 million tonnes to 67 million tonnes. Of this amount 52.5 million tonnes will be Kazakhstan’s oil. The memorandum of understanding

■■

on CPC Expansion Principles was signed by the project’s shareholders on 17 December 2008. The entire project will be finalized by 2015. The Burgas-Alexandroupolis pipeline is a trans-Balkan project conceived to reduce the cost of hydrocarbon deliveries to European and possibly US and Asian markets. The project is the logical continuation of the CPC expansion and an economical way to bypass the risky Bosphorus Strait and the Dardanelles. The viability of the pipeline depends on Kazakh oil production, which is expected to reach 120-130 million tonnes by 2015. As Russian oil alone is not sufficient for the trans-Balkan pipeline, the contribution of Kazakh oil is vital to ensure economic efficiency. For Kazakhstan, the trans-Balkan pipeline is an alternative route to transport its crude oil to global markets. The CPC expansion and the Burgas-Alexandroupolis pipeline are important to the fast growing Kazakh oil industry. Kazakhstan is among the world’s top 20 net exporters of crude oil. For the European Union, the Burgas-Alexandroupolis pipeline is an important step to decrease dependence on Organization of the Petroleum Exporting Companies (OPEC) countries. Construction of the Pre-Caspian Gas Pipeline, according to the agreement signed by Kazakhstan, Russia and Turkmenistan. The Mazhilis (lower house of Kazakhstan’s parliament) approved a draft law “On ratification of the agreement between the government of Kazakhstan, Russia and Turkmenistan on cooperation in construction of Pre-Caspian Gas Pipeline” on 22 April 2009. Construction of the Kazakhstan – China gas pipeline was finalized in October 2010. In December 2010, construction of the Beineu-Shymkent gas pipeline began. It is considered Phase II of the KazakhstanChina gas pipeline. Europe is an important partner of Kazakhstan in the implementation of its energy policy. This interaction includes the expansion and increase of transit opportunities for hydrocarbon supplies from Kazakhstan to European markets, including cooperation under the Transport Corridor Europe-Caucasus-Asia (TRACECA) international project, TACIS INOGATE Program (International Transportation of Oil and Gas in Europe) and The Energy Charter Treaty (ECT). The main criterion for a decision by the Kazakh Government on projects aimed at diversification of exporting routes is their economic effectiveness. Kazakhstan welcomes the active US involvement in developing alternative export routes in Eurasia, particularly from the Caspian basin to Europe. This approach fully corresponds to Kazakhstan’s national security priorities.

Kazakhstan country profile 2012

Kazakhstan - ECONOMIC OVERVIEW

Coal Coal is one of the largest industries in Kazakhstan. According to the 2010 BP Statistical Energy Survey, as of the beginning of 2010 Kazakhstan’s coal reserves were 31,300 million tonnes, 3.78 percent of the world total. Kazakhstan ranks eighth in the world in coal production after the US, Russia, China, Australia, India, South Africa and Ukraine. Kazakhstan’s 2011 coal production was 110.0 million tons, 1.51 percent of the world total. The country’s coal consumption in 2011 amounted to 72.9 million tonnes, of which 52.3 million tonnes were used by power plants. The coal sector is also a priority investment area. Kazakhstan has Central Asia’s largest recoverable coal reserves. The state register includes 142 closed mines and 55 open-pit mines. Most mines are located in the central part of Kazakhstan (the Karaganda and Ekibastuz coal basins and the Shubarkol mine) and north Kazakhstan (the Torgay coal basin). Recoverable reserves account for 45 percent and unrecoverable 55 percent. Approximately 30 percent of its coal production is exported, mainly to Russia and Ukraine. The remainder is used in the domestic power generation industry (80 percent of Kazakhstan’s power requirements are coal based), as well as the iron and steel industries. Kazakhstan is the former Soviet Union’s (FSU) second largest coal producer, after Russia. According to the Kazakh Ministry of Industry and New Technologies, the country aims to be producing 134 million tonnes annually by 2015, increasing this number by 150 million tonnes annually by 2020. The country has more than 400 coal deposits, of which a third is classified as brown coal or lignite deposits. Most coal production is sourced from two main basins – the Karaganda Basin, which supplies coking coal from underground mining operations, and the Ekibastuz Basin (the third-largest coal basin in the FSU), which supplies coal to the power-generation sector.

The Karazhir deposit is one of Kazakhstan’s higher grade coal deposits, containing more than one billion tonnes of reserves, with a large proportion being open pittable. Mining is happening at 53 mines, including 15 in the Karaganda coal basin, by 34 companies (one joint venture, five foreign and 28 local companies). The major companies are: Bogatyr Access Komir, Shubarkol Komir, Mittal Steel Temirtau, the Eurasian Energy Corporation, Maykuben West, Karazhira Ltd, the Kazakhmys Corporation and Gamma. Bogatyr Access Komir LLP (BAK), the largest opencast mining company in Kazakhstan, which is wholly owned by US firm Access Industries Inc., owns the Bogatyr mine. The mine has a projected capacity of 50 Mt/y. MMRC owns 32.8 percent of the Eurasian Energy Corporation, the government 24.3 percent and the balance is public and corporate shares. Ispat-Karmet, Kazakhstan’s biggest steel producer, operates several coal mines to feed its steelworks, producing just over seven Mt from the Karaganda region. Summary of coal industry

The coal sector is said to have enough reserves to last over 100 years. In the future, the development of the raw materials base will be achieved through enriching and improving the quality of the coal and the deep processing of coal to obtain fluid fuel and synthetic substances. Developing shale is also timely. As an alternative source of energy, methane from coal mines in the Karaganda basin can also be used. The high concentration of methane in coal layers, and the existence of a well-developed infrastructure and major gas consumers, make it possible to extract it and utilize it on a large scale. This will also increase central Kazakhstan’s energy potential and provide gas not only to enterprises in the Karaganda, Ekibastuz and Pavlodar regions but also to the country’s capital, Astana.

Kazakhstan’s uranium and nuclear industries Kazakhstan has been an important source of uranium for more than 50 years. Over 2001-11 production rose from 2,022 to 19,450 tonnes per year, making Kazakhstan the world’s leading uranium producer. Mine development has continued with a view to further increasing annual production by 2018. Capacity is around 25,000 tonnes of uranium (tU/yr), but in October 2011 Kazatomprom announced a cap on production of 20,000 tU/yr. Of its 17 mine projects, five are wholly owned by Kazatomprom and

Kazakhstan country profile 2012

12 are joint ventures with foreign equity holders, and some of these are producing under nominal capacity. Kazakhstan has no national electricity grid, but a northern grid links to Russia and a southern one links to Kyrgystan and Uzbekistan. Electricity production was 72 billion kilowatt hour (kWh) in 2009, 82 percent coal fired. In 2012 capacity was 20 gigawatt electrical (GWe). In 2012 the Government’s energy system development plan had 150 billion kWh/yr production in 2030, with

Kazakhstan - ECONOMIC OVERVIEW

A number of agreements on energy cooperation were signed with Japan, some relating to uranium supply to Japan and technical assistance to Kazakhstan in relation to fuel-cycle developments and nuclear reactor construction 4.5 percent of this from nuclear. The government plans investment in electricity production and the grid of $7.8 billion by 2015, and foresees $64 billion by 2030. Kazatomprom is the national atomic company set up in 1997 and owned by the government. It controls all uranium exploration and mining as well as other nuclearrelated activities, including imports and exports of nuclear materials. It announced in 2008 that it aims to supply 30 percent of the world’s uranium by 2015 and, through joint ventures, 12 percent of the uranium conversion market, six percent of enrichment and 30 percent of the fuel fabrication market by then. Recent international collaboration

Kazatomprom has forged major strategic links with Russia, Japan and China, as well as taking a significant share in the international nuclear company Westinghouse. Canadian and French companies are involved with uranium mining and other aspects of the fuel cycle. In July 2006 Russia and Kazakhstan (Kazatomprom) signed three 50:50 nuclear joint venture (JV) agreements totalling $10 billion for new nuclear reactors, uranium production and enrichment. The first JV with Atomstroyexport is JV Atomniye Stantsii for the development and marketing of innovative small and medium-sized reactors, starting with OKBM Afrikantov’s VBER-300 as the baseline for Kazakh units. Russia’s Atomstroyexport expected to build the initial one. The second JV with Tenex, confirmed in 2008, is for extending a small uranium-enrichment plant at Angarsk in southern Siberia (this will also be the site of the first international enrichment centre, in which Kazatomprom has a 10 percent interest). It will eventually be capable of enriching the whole 6,000 tonnes of uranium production from Russian mining JVs in Kazakhstan. The uranium exploration and mining JVs Akbastau and Karatau with Tenex started with Budenovskoye in the Stepnoye area of south Kazakhstan, which commenced production in 2008. These complemented the Zarechnoye JV 250 km to the south, which was set up in June 2006. However, in 2009 and 2010 the 50 percent ARMZ equity in these three was traded for an eventual 51 percent share of Canadian-based Uranium One. In March 2011 Russia and Kazakhstan (Kazatomprom) signed stage two of this 2006 integrated cooperation program, involving uranium exploration and a feasibility

study for a Kazakh nuclear power plant. Under this agreement, and following JV development at Angarsk, Kazatomprom will buy a share of Russia’s Novouralsk enrichment plant in 2011. Japan: In April 2007 a number of high-level agreements on energy cooperation were signed with Japan. These included some relating to uranium supply to Japan, and technical assistance to Kazakhstan in relation to fuel-cycle developments and nuclear reactor construction. A further agreement on uranium supply and Japanese help in upgrading the Ulba fuel fabrication plant was signed in May 2008. Kazatomprom is keen to move from being a supplier of raw materials to selling its uranium as fabricated fuel assemblies. It said that it aimed to supply 40 percent of the Japanese market for both natural uranium and fabricated fuel from 2010 – about 4,000 tU per year. Negotiations then commenced for a bilateral nuclear cooperation agreement between Kazakhstan and Japan. In August 2006 the Japan Bank for International Cooperation had signed an agreement with Kazatomprom to support and finance Japanese firms in developing Kazakh uranium resources to supply Japan’s power generation. In March 2009 three Japanese companies – based on the World Nuclear Association’s REPORT ■■

■■

Kazakhstan has 15 percent of the world’s uranium resources and an expanding mining sector, producing some 19,450 tonnes of uranium in 2011, and planning for further increase to 2018. In 2009 it became the world’s leading uranium producer, with almost 28 percent of world production, 33 percent in 2010 and about 35 percent in 2011. A single nuclear-power reactor operated from 1972 to 1999, generating electricity and for desalination. It has a major plant making nuclear-fuel pellets and aims eventually to sell value-added fuel rather than just uranium. It aims to supply 30 percent of the world fuel-fabrication market by 2015. The government is committed to increased uranium exports, and is considering future options for nuclear power.

Kazakhstan country profile 2012

Kazakhstan - ECONOMIC OVERVIEW

Picture: Kazatomprom JSC

Kazatomprom is one of China’s main uranium and nuclear-fuel suppliers

Kazatomprom’s 10 percent share in Westinghouse strengthened the company’s upstream links for fuel supplies and should enhance its marketing of nuclear reactors. It also brought Kazatomprom more fully into the industry mainstream Kansai, Sumitomo and Nuclear Fuel Industries – signed an agreement with Kazatomprom on uranium processing for Kansai plants. In March 2010 a joint venture with Sumitomo was set up: Summit Atom Rare Earth Company, and in June, Kazatomprom and Toshiba Corp. agreed to set up a rare earth metals joint venture. In September 2010, based on an April 2007 agreement, Japco, Toshiba and Marubeni signed a technical cooperation agreement with the National Nuclear Center (NNC) to study the feasibility of building nuclear power capacity (see nuclear power section).

Kazakhstan country profile 2012

In December 2006 China Guangdong Nuclear Power Group Holdings (CGNPC) signed a strategic cooperation agreement with Kazatomprom. An agreement on uranium supply and fuel fabrication followed in May 2007, and in September 2007 agreements on Chinese participation in Kazakh uranium mining joint ventures and on Kazatomprom investment in China’s nuclearpower industry. This is a major strategic arrangement for both companies, with Kazatomprom to become the main uranium and nuclear-fuel supplier to CGNPC (accounting for a large share of the new reactors being built in China). In October 2008 a further agreement was signed covering cooperation in uranium mining, fabrication of nuclear fuel for power reactors, long-term trade of natural uranium, generation of nuclear electricity and construction of nuclear-power facilities. A CGNPC subsidiary, SinoKazakhstan Uranium Resources Investment Co, is to invest in two Kazakh uranium mines, Irkol and Semizbai, through the Semizbai-U LLP joint venture. A framework strategic cooperation agreement was signed with China National Nuclear Corporation (CNNC) in September 2007 and this was followed in October 2008 with another on “long-term nuclear cooperation projects”, under which CNNC is to invest in a uranium mine. Late in 2007 Kazatomprom signed an agreement with both GCNPC and CNNC for them to take a 49 percent stake in two uranium mine joint ventures and supply 2,000 tU per year from them.

Kazakhstan - ECONOMIC OVERVIEW

Kazatomprom estimates that 20 percent of its uranium output goes to China, with the possibility of this increasing with demand as production heads for 25,000 tU/yr. In February 2011 CNNC signed a contract to buy 25,000 tU. Early in 2009 Kazatomprom signed an agreement with CGNPC to establish a specialized company for the construction of nuclear-power plants in China, since at that time Kazakh plans to work with Russia’s Atomstroyexport on developing and marketing innovative small and medium-sized reactors had been put on hold. In mid-2009 a feasibility study on this joint CGNPC project was under way. In January 2009 Kazatomprom signed an agreement with India’s Nuclear Power Corporation (NPCIL) to supply 2,100 tonnes of uranium to India and undertake a feasibility study on building Indian pressurised heavy water reactors (PHWR) in Kazakhstan. NPCIL said that it represented “a mutual commitment to begin thorough discussions on long-term strategic relationship.” Under this agreement, 300 tonnes of natural uranium will be supplied by Kazatomprom in the 2010-11 year. In April 2010 Kazakhstan signed a nuclear cooperation agreement with South Korea, paving the way for the export of Korean SMART 100 MWe nuclear reactors and for joint projects to mine and export Kazakh uranium. In addition Kazakhstan has signed intergovernmental agreements on nuclear-energy cooperation with the USA and Euratom. South Korea: The Kazakh Industry and Trade Ministry has held talks with South Korea’s KEPCO, (Korea Electric Power Corporation) on uranium mining and nuclear power

plant construction in Kazakhstan, apparently at KEPCO’s initiative; their outcome is still awaited. Toshiba: At the corporate level, in 2007 Kazatomprom purchased a 10 percent share in Westinghouse. Toshiba had bought the company from British Nuclear Fuels (BNFL) for $5.4 billion early in 2006, and the Shaw Group then took 20 percent and IHI Corp three percent. Toshiba originally envisaged holding only 51 percent, and this deal reduced its holding to 67 percent. The Kazatomprom link strengthened the company’s upstream links for fuel supplies and should enhance its marketing of nuclear reactors (the vendor usually supplies the first core for a new reactor, and ongoing fuel services may be offered in addition). It also brought Kazatomprom more fully into the industry mainstream, with fuel fabrication in particular. This led to a decision to set up with Toshiba a nuclearenergy institute in the northeastern town of Kurchatov, near Semipalatinsk, which is already a centre of R&D activity. This was announced by Kazatomprom and the Kazakh prime minister in September 2008 and will focus on skills development in all aspects of the nuclear-fuel cycle as well as reactor technology. Other Japanese companies, such as Toyota and Marubeni, are expected to support the institute, especially in its rare earth metals department, which aims to utilize present waste materials as the basis of a billion-dollar hightech export industry. Three research reactors are operated by the Institute of Atomic Energy at Kurchatov. Cameco: In May 2007 Canada’s Cameco Corporation signed an agreement with Kazatomprom to investigate

URANIUM DEPOSITS

Northern Kazakhstan

16.5% Astana

Balkhash

0.4%

Caspian

1.8%

Chu-Sarysu

60.5%

Syrdarya

12.4%

Ili

Almaty

Kazakhstan country profile 2012

Kazakhstan - ECONOMIC OVERVIEW

setting up a uranium conversion plant, using its technology, and also increasing uranium production at its 60-percent-owned Inkai mine. In June 2008 Cameco and Kazatomprom announced the formation of a new company – Ulba Conversion LLP – to build a 12,000 t/yr uranium hexafluoride conversion plant at the Ulba Metallurgical Plant in Ust-Kamenogorsk. Cameco will provide the technology and hold 49 percent of the project. A feasibility study was due to be completed mid-2009, but this project is on indefinite hold. Areva: In June 2008 Areva signed a strategic agreement (MOU) with Kazatomprom to expand the existing Katco joint venture from mining 1,500 tU/yr to 4,000 tU/yr (with Areva handling all sales), to draw on Areva’s engineering expertise in a second JV (49 percent Areva) to install 1,200 t/yr fuel fabrication capacity at the Ulba Metallurgical Plant, and in a third JV (51 percent Areva) to market fabricated fuel.

The low price of electricity is a barrier to developing renewable energy resources, but Kazakhstan plans to develop a supply of hydro, wind and biomass energy In October 2009 the two parties signed another agreement to establish the IFASTAR joint venture (Integrated Fuel Asia Star – 51 percent Areva) to establish the feasibility of marketing an integrated fuel supply for Asian customers (ie selling the enriched and fabricated fuel, not simply Kazakh uranium or Areva front-end services), and of building a 400 t/yr nuclear-fuelfabrication line at the Ulba plant. IFASTAR is to be based in Paris, and will market the fuel. In October 2010 an agreement was signed to set up the joint venture company (51 percent Kazatomprom) to build the 400 t/yr fuel-fabrication plant based on an Areva design at the Ulba Metallurgical Plant, starting operation at the end of 2013 or in 2014. In November 2011 a further agreement was signed in relation to the plant. Nuclear power: future

Kazakh plans for future nuclear power include large lightwater reactors for the southern region, 300 MWe class units for the western part and smaller cogeneration units in regional cities. There are proposals for a new nuclearpower plant near Lake Balkhash in the south.

Kazakhstan country profile 2012

The July 2006 Atomniye Stantsii JV with Atomstroyexport envisages development and export marketing of innovative small and medium-sized reactors, starting with OKBM Afrikantov’s VBER-300 pressurized water reactor (PWR) as the baseline for Kazakh units. Atomstroyexport expects to build the initial pair and Kazatomprom announced that it planned to start construction in 2011, for commissioning of the first unit in 2016 and the second in 2017 at Aktau in the Mangistau region, on the Caspian Sea. The plant would then be marketed internationally. Research & Development

The National Nuclear Center (NNC), set up in 1992, employs some 2,700 researchers and consolidates six research centres. It is responsible for research on the peaceful use of nuclear energy, radiation safety and for evaluating the consequences of nuclear tests at the nowclosed Semipalatinsk test site. All nuclear-research reactors in Kazakhstan are under the jurisdiction of the NNC. In October 2010 the NNC signed an agreement with Belgium’s SCK-CEN to collaborate in nuclear-energy research focused on the Belgian Myrrha project for an accelerator-driven system to incinerate radioactive waste, perform research and undertake radioisotope production. Myrrha, a multifunctional lead-bismuth-cooled subcritical reactor, is expected to commence operation in 2023, largely funded from the EU. At Kurchatov (aka Semipalatinsk-21), on the former nuclear test site, two research reactors owned by NNC are operated by the Institute of Atomic Energy. The largest one is a 35-60 MW tank type that started in 1972, the other a 10 MW tank type. Both were supplied by Russia and use 90 percent high-enriched fuel. A small high-temperature reactor (RA) was disassembled and returned to Russia. Another reactor is at Alatau, 15 km south of Almaty, owned by NNC and operated by the Institute of Nuclear Physics. The 6 MW pool-type WWR-K started in 1967 and was used, among other things, for radioisotope production (Mo-99, I-131, Co-60, Ir-192, Sb-124, Tl-204). It was also supplied by Russia and initially used 36 percent enriched fuel, but in 2011, 33kg of highly enriched uranium (HEU) was downblended to 20 percent low-enriched uranium (LEU) at the Ulba Metallurgical plant and returned for use once the reactor is converted. The operation to remove and downblend the fuel was a combined effort between the US National Nuclear Security Administration, the Kazakh government and the International Atomic Energy Agency (IAEA). In 2009, 70 kg of used HEU fuel was returned to Russia. Also at Kuchatov is the Kazakhstan Material Study Tokamak (KMT), supported by Russia’s Kurchatov Institute, which produced its first plasma in 2010. Full commissioning is due in 2011. KMT supports the

Kazakhstan - ECONOMIC OVERVIEW

The Moinak hydropower plant is one of the largest energy projects in Kazakhstan

International Thermonuclear Energy Reactor (ITER) project with materials testing. Renewable energy

Kazakhstan is rich with fossil-fuel resources. As such, the low price of electricity creates a barrier for the development of renewable-energy resources. However, Kazakhstan also has plans to develop a supply of hydro, wind, solar, and biomass energy. Climatic conditions are favorable for solar throughout Kazakhstan, with the highest potential in the southern region and in the regions near the Aral Sea and Lake Balkhash. High-speed wind locations are in the southeast in mountain passes leading to China, in the Alytau mountain regions in the center of the republic, and in the southwest on the Caspian seaboard. Wind development has been slow due to low tariffs (around three cents/kWh). Due to its large agricultural base, Kazakhstan has significant potential for biomass energy resources. and for the production and development of biofuels. According to the Ministry of Agriculture of Kazakhstan, using common wheat for the production of bioethanol is most appropriate in Kazakhstan’s climatic conditions. Many experts are convinced that by using low-quality wheat (one million tons) and unused grain

leftovers (about 1.9 million tons), Kazakhstan can produce one billion litres (812,000 tons) of bioethanol a year. Hydro is of significant importance to Kazakhstan as it accounts for over 12 percent of the country’s electrical capacity. One of the largest energy projects in Kazakhstan – the Moinak hydroelectric power station – launched in May 2012 and now operates at its full capacity of 300 megawatt. Thus the problem of energy deficits in the southern region is almost solved. According to the Ministry of Industry and New Technologies of Kazakhstan, the electricity generation from renewables in January-October 2011 grew by 3.85 percent to 348.27 million kWh. The target is to reach one billion kWh per year by 2014. In July 2009, Kazakhstan adopted the Law on Renewable Energy Sources, which provides support for the development of renewables in Kazakhstan, such as: ■■ Provisioning and priority in allocating land for construction of renewable energy facilities; ■■ Commitment of power-transmission organizations to purchase electricity generated from renewables; ■■ Payment exemption for use of transmission grids for electricity generated from renewable energy sources; ■■ Support with feasibility studies, construction and operation of the renewable energy facilities, as well as investment preferences in line with local legislation.

Kazakhstan country profile 2012

Kazakhstan - Economic overview

Mining and smelting industry in Kazakhstan The mining and smelting industry is fed by a rich mineral resources base with substantial capacity, both in the context of the country and across the globe. Kazakhstan is ranked sixth in the world in terms of its amount of mineral resources. Out of the 110 elements in Mendeleyev’s periodic table, 99 have been discovered, 70 explored, and 60 are being recovered and used in Kazakhstan’s soil. Kazakhstan has 30 percent of the global reserves of chrome ores (second place in the world), 25 percent of manganese ores and 10 percent of iron ores. Reserves of copper, lead and zinc are 10 to 13 percent respectively of the world reserves.

Kazakhstan’s mining industry accounts for approximately seven percent of the country’s GDP and 19 percent of industrial production Specific density of wolframium is 60 percent (first place in the world), bauxite is 30 percent, and phosphorite is 25 percent (second place in the world). The country occupies fourth place globally in terms of lead and molybdenum reserves and eighth in terms of total ironstone reserves (16.6 billion tonnes). Kazakhstan is in third place in the world in terms of production of titanium, seventh for zinc, eighth for lead, thirteenth for iron ore, fifteenth for copper and thirty fifth for steel. Kazakhstan’s mining industry accounts for approximately seven percent of the country’s GDP and 19 percent of industrial production. Its mineral and resources base consists of 5,004 fields with a net worth of $46 trillion. About 80 percent of all mining industry products are exported to more than 30 countries, making 20 percent of the total exports and 30 percent of the country’s revenues.

According to the State Statistics Agency, the volume of production in the mining and smelting industries for the period January-December 2011 amounted to KZT 10.0 trillion ($67.1 billion) (growth of 1.3 percent), including production of metal ore at KZT 798.2 billion ($5.3 billion) (+0.4 percent) and iron ore at KZT 336.3 billion ($2.2 billion) (+1.7 percent). The volume of the iron and steel industry in current prices amounted to KZT 1.9 trillion ($13.0 billion), with a volume index of +6.5 percent. The volume of production consisted of metallurgy with KZT 785.4 billion ($5.2 billion) (+5.6 percent), precious and non-ferrous metals with KZT 1.1 trillion ($7.7 billion) (+7.2 percent) and cast iron with KZT 7.1 billion ($47.4 million) (+1.1 percent). The growth in iron and steel production was due to the expansion of cast iron (3.1 million tonnes, +8.5 percent growth), crude steel (48.0 million tonnes, +12 percent), flatrolled steel (30.9 million tonnes, +6.6 percent) and metal pipes of different diameters (188.1 tonnes, +18.4 percent). Domestic demand for ferrous metals supported the machinery industry, which grew by 19.6 percent in 2011 compared with the same period last year, when machinery and equipment production increased by 12.8 percent. In non-ferrous metal production, growth was achieved by increasing production of raw silver (644.6 tons, +16.8 percent), of which refined silver amounted to 640.6 tons (growth by +16.7 percent). Raw gold production rose by 6.4 tonnes to 36.6 tonnes (+21.1 percent), of which refined gold accounted for 16.6 tonnes (+23.6 percent). Raw aluminum production increased by 514,000 tons to 19.2 million tonnes (+2.8 percent), crude lead by 784,000 tonnes to 1.1 million tons (+7.6 percent), zinc by 894 tonnes to 3.1 million tonnes (+0.3 percent) and refined copper by 154,000 tonnes to 3.4 million tonnes (+4.6 percent). To support the development of the mining and smelting industries, in 2010 the government approved the Mining-Smelting Industry Development Program for 2010-14. The program is aimed at rational and optimal use and development of mineral resources for the purposes of production of high-technology and science-intensive finished products. The government expects 107 percent growth of gross value added for metallurgy products.

Kazakhstan’s mineral resources base

30%

Of world’s Chrome ore reserves

Kazakhstan country profile 2012

25%

Of world’s Manganese ores

10%

Of world’s Iron ores

13%

Of world’s Copper, Lead and Zinc

Kazakhstan - Economic overview

Kazakhstan’s mining industry accounts for around 7% of GDP Currently, the Industrialization Map of Kazakhstan includes 61 mining and smelting industry projects, with an investment of KZT 1.5 trillion ($10.0 billion). In 2011, 11 projects brought the economy a new worth of KZT 52.7 billion ($351.9 million) and 2,700 new jobs. The implementation of these projects contributed to the production of base metals, development of low-tonnage production, growth in production of high-technology products and expansion of exports to foreign markets. New jobs have improved the situation on the labor market. Compared to the same period in 2010, exports of mining and steel products in 2011 amounted to $113.7 billion (+73.1 percent), or 89.7 percent of the annual planned target. The dynamics of exports in 2011 have been largely due to high prices in the commodities markets. For instance, consumption of ferroalloys last year was 1.8 times higher than in 2010. The main export destinations were India, China, Japan, Germany and Australia. Exports of copper wire have increased 1.38 times, raw zinc 1.3 times and raw lead 1.9 times. The government has initiated significant measures to support the expansion and optimization plans of the country’s largest mining and smelting companies. Comprehensive modernization plans have been introduced

The government has initiated significant measures to support the expansion and optimization plans of the country’s largest mining and smelting companies for six strategic enterprises (Aluminium of Kazakhstan, SSGPO, TNK Kazchrome, “Kazakhmys”, Sat & Company and Kazphosphate). It is expected that, as a result of joint cooperation, a volume of investments into industry by 2015 will amount to KZT 1.72 trillion ($11.5 billion), which will create more than 3,000 additional jobs. The government also carried out systematic measures to support small and medium-sized businesses represented in the industry. In 2011, within the framework of the Road Map for Business – 2020, the state approved 782 applications for loans worth KZT 238.5 billion ($1.6 billion), including loans to 101 mining and smelting projects amounting to KZT 52.6 billion ($351.2 million).

Kazakhstan country profile 2012

Kazakhstan - Economic overview

Transport and communications The government is pushing forward with its Strategy of Transport Sector Development, which calls for the investment of up to $26 billion on infrastructure projects over 10 years. The Strategy is to be implemented in two stages. The first stage covers 2006-11, the second 2011-15. It is designed to raise the national transport system to a higher level and bring its infrastructure into line with worldwide standards. The core of the effort involves container traffic. Improvements will ensure substantial revenue for the central budget and transport companies. The Strategy covers railways, automobile, in-city passenger, air and water carriage. It is intended to facilitate the growth of trade ties between the West and the East by means of reliable and accessible transit

A new route from Chromtau to Altynsarino will save 48 hours of shipment time and up to $18 per ton of cargo routes. It provides for the modernization of existing infrastructure and the construction of new routes, with all transport fleets being renewed. Kazakhstan’s economic and geographic features (its vast territory, landlocked position, uneven distribution of population clusters and natural resources) make the transportation component of the economy challenging. But being sandwiched between Europe and Asia, Kazakhstan boasts great transit potential, as there are no alternatives for Asian states to link to Russia and Europe. Automobile and railway routes account for a major share of total above-ground transport routes (about 884,000 and 14,000 km, respectively). The total length of navigable waterways is 39,000 km, and total air routes make up 61,000 km. Density per 1,000 km2 stands at 5.1 km for railways, 32.4 km for automobile routes with hard surfaces, and at 1.5 km for inland navigable waterways. The share of transportation costs compared to the cost of goods is eight percent and 11 percent for inland railways and automobile traffic respectively, while in industrialized countries these are normally in the range of 4-4.5 percent. Four international transport corridors cross Kazakhstan: ■■ Northern Corridor of Trans-Asian Railway Main (TARM): Western Europe – China, Korean Peninsula and Japan via Russian and Kazakhstan (section Dostyk – Aktogai - Sayak – Mointy – Astana – Petropavlovsk (Presnogorkovskaya)).

Kazakhstan country profile 2012

■■

Southern Corridor of TARM: South-Eastern Europe – China and South-Eastern Asia via Turkey, Iran, Central Asian states and Kazakhstan (section Dostyk – Aktogai – Almaty – Shu – Arys – Saryagash). TRACECA: Eastern Europe – Central Asia via the Black Sea, Caucasus and the Caspian Sea (section Dostyk – Almaty – Aktau). North-South: Northern Europe – Gulf States via Russia and Iran, with Kazakhstan’s participation in the following sections: sea port Aktau – Ural regions of Russia and Aktau – Atyrau.

Kazakhstan, Russia and other CIS countries believe that cargo transit between the EU and Asia is worth more than $600 billion a year, according to the IMF. Infrastructural investment requirements through 2030 are expected to total more than $25 billion - and of this, 40 percent will be needed for railway transportation, 23 percent for highways and motor transport, 25 percent for telecommunications, and 12 percent for the air and water transport systems. Railway services play a significant role in the transport-communications network. They carry up to 70 percent of cargo and 50 percent of passengers in the overall transport operations in Kazakhstan. The total mileage of the railways in Kazakhstan exceeds 14,000 km. A transit route with great potential is the Trans Kazakhstan Route project from China to Europe through Kazakhstan, Turkmenistan, Iran and Turkey. One of the advantages of this route is that the width of railroad track will be in line with international standards so it will be unnecessary to change railroad wheels on borders. The length of the Kazakh part of the route is 3,070 km. When completed, the $4 billion project will allow cargo to move from the ports of China to Rotterdam within 18 days, resulting in significant cost savings for cargo transportation from the Asia Pacific Region to Western Europe. The two-stage project, which has an implementation period of 15 years, is set to convey up to 110 million tons of cargo a year through Kazakhstan. New and existing railway lines will strengthen the transit potential of the country. For example, a new, 402 km route from Chromtau to Altynsarino, finished in 2004, will shorten the existing route through Russian territory for cargo shipments from West and East Siberia, through the Ural region of Russia to the Aktau Seaport and further to Iran and through the North-South transport corridor to the ports of the Indian Ocean. This will cut the length of the freight transportation route by 2,000 km, saving 48 hours of shipment time and up to $18 per ton of cargo. Since the opening of

Kazakhstan - Economic overview

Kazakhstan’s road network has a total length of almost 900,000km the Chromtau-Altynsarino route, almost 15 million tons of cargo have been transferred, with the possibility to increase the volume of transit by 25 million tons a year after the second stage of the project is realised. Motor transport

Kazakhstan’s road network has a total length of more than 889,000km. What’s more, 13,000 km of the network have international significance, linking Asian and European motorways. Over the last few years, great attention has been paid to the major repair and reconstruction of existing roads. At least 144,000 km of roads were repaired. The total amount of financial resources for the implementation of the Program is $8.5 billion. International transit corridors were also further developed - 579 km of highways of national importance have been launched. Construction of a new transport corridor between West Europe and West China will increase deliveries by trucks almost fourfold, from the current 900,000 tons to 3.5 million tons. Air transport

On 6 February 2012 a landmark agreement was reached between the Kazakh airline company Air Astana and Boeing Corporation to purchase seven Boeing aircraft, including 767 and 787 Dreamliner models. Under the agreement, which is the largest all-in-one aircraft order in Central Asia, Air Astana will be acquiring four Boeing

767s beginning in 2013, and three Boeing 787 models starting in 2017. The total cost amounts to $1 billion. This transaction will allow the Kazakhstan national airline to replace and upgrade its fleet over five years, while reducing operating and fuel costs, and delivering comfort during long-distance flights to local and international customers. The agreement between Air Astana and Boeing is considered to be a significant contribution by Kazakhstan to the support of more than 160,000 American jobs within Boeing facilities and factories located in the states of Washington and South Carolina, and is consistent with US President Barack Obama’s efforts to keep and develop high-tech manufacturing jobs in the country. The agreement between Air Astana and Boeing will also boost US exports and solidify America’s position as the world’s leading manufacturer of high-tech aircraft. As a result, it is expected that there will be a significant jump in numbers of the airline’s new customers flying on Boeing airplanes to the Central Asia region and back. Air Astana was founded in 2001 and is based in Almaty, Kazakhstan’s business capital. The airline operates a fleet of 26 western aircraft with flights on close to 50 domestic and international routes. The main shareholders are the Kazakhstan Government (51 percent share), through its SamrukKazyna National Welfare Fund, and BAE Systems PLC (United Kingdom), holding 49 percent.

Kazakhstan country profile 2012

Kazakhstan - ECONOMIC OVERVIEW

Agriculture national holding Kazagro Purpose Stimulation of agro-industry development by effective management of agrarian joint-stock companies. Basis principles of activity ■■ compliance with priorities of agricultural policy; ■■ concentrating and directing investments to solving priority tasks of the agroindustrial complex; ■■ improving economic effectiveness of the companies’ activity; ■■ application of innovative international experience in the sphere of corporate management Functions elaborate strategic plans for development, mid-term plans for the companies’ financial activity, investment programs and the budget of the year; ■■ ensuring achievement of purposes, including maximization of the companies’ financial results; ■■ participation in the realization of financial and administrative management of the companies’ projects; ■■ assistance in attraction of external and internal investments; ■■ developing and monitoring indicators of the companies’ activity efficiency; ■■ taking corrective measures in case of the companies’ failure to achieve their purposes and efficiency parameters; ■■ introduction of international principles of corporate management; ■■ selection and motivation of the companies’ top managers; ■■

Companies of KazAgro National Holding JSC Food Contract Corporation JSC KazAgroFinance JSC Agrarian Credit Corporation JSC Mal Onimderi Corporation JSC Foundation for financial support of agriculture JSC KazAgroMarketing JSC KazAgroGarant Contacts: Chairman of the Board Mr Berik Beissengaliev Astana, 36 Kenesary Str., office № 605 PO 010000 Tel./Fax: (7 7172) 555 973, 391 696 email: kazagro07@mail.ru; Web: www.nhkazagro.kz

Kazakhstan country profile 2012

Agriculture is considered to be one of the key sectors of the Kazakh economy. Kazakhstan is rich in land resources: more than 74 percent of the country’s territory is suitable for agricultural production, representing 5.5 percent of GDP and employing over 20 percent of the labour force, with 43 percent of the population living in rural areas. Kazakhstan is one of the world’s major wheat and flour exporters. It is among the 10 largest wheat producers. It also exports large amounts of cotton, leather and wool. In seven years, agricultural exports may reach the level of Eastern European countries. The total area of agricultural land resources in Kazakhstan is 222.6 million hectares (ha). Of these, 24 million ha (10.8 percent) are covered by tilled fields, five million ha (2.2 percent) by hayfields and 189 million ha (85 percent) by pasture. The rural population is 7.3 million people, which represents 43 percent of the total population. Meanwhile, according to the World Bank, Kazakhstan’s labour efficiency in agriculture is five times lower than in Eastern Europe, even lower than Russia and Ukraine. The main grain crop is milling wheat, which is typically high in quality and protein. There is a growing trend for Kazakhstan to export its grain internationally. In 2010, the country produced 12.2 million metric tonnes and exported five million metric tonnes (net weight). Other food crops include barley, maize, rice, potatoes, soybeans, sugar beet, cotton, tobacco, sunflower, flax and mustard. Cotton is the most important industrial crop grown on the irrigated land of southern Kazakhstan. Orchards and vineyards are widespread. The rich soil and climate provide ideal conditions for growing wheat, barley, rice, corn, millet and buckwheat. In 2011, the total crop area is planned to reach 21.3 million ha. Corn and beans will be sown on 16.5 million ha while oilseed will occupy 1.7 million ha. To satisfy the demands of the livestock industry, forage cultures are to be expanded by 95,000 ha; areas for fruit and vegetables will grow by 25,000 ha and by 17,000 ha for sugar beet. Effective methods of cultivation will be employed more actively in 2011. Crop areas with application of moisture– and resource-saving technologies will reach 11.2 million ha, which amounts to 68 percent of the total sown area. That is more than the previous level by 650,000 ha, or six percent. In addition, 8.1 million ha of grain, or nearly half of the cultivated area, will be planted with modern crops. For a country with a long nomadic history, it is not surprising that stockbreeding is the traditional and dominant agricultural sector. No less than three quarters of all agricultural land is used for grazing. Sheep breeding is predominant, while cattle breeding and the raising of pigs, horses and camels are also well developed. Animal husbandry typically accounts for about 45-50 percent of the production

Kazakhstan - ECONOMIC OVERVIEW

The Kazakhstan government is looking for agricultural investors from the US. It has allocated land to be rented by foreign investors for as long as 10 years. Modern technologies are also being brought to Kazakhstan from the United States value in agriculture in Kazakhstan. Primary meat products include beef, veal, chicken, horse, lamb, pork and rabbit. The livestock sector is gradually growing. During 2010, the output of meat rose by 3.0 percent, egg production went up by 12.6 percent and milk output rose by 1.4 percent. Similarly, herd sizes are recovering after a period in the 1990s in which livestock were being slaughtered for meat but not replaced. As of 1 January 2011, in comparison with the previous year, the number of head of cattle increased by 1.1 percent, sheep by 3.5 percent, horses by 3.1 percent, hogs by 2.3 percent and birds by 1.1 percent. In 2010, National Holding KazAgro allocated KZT 94.3 billion ($629.3 million) for 86 projects, including the construction of greenhouses, poultry farms, feedlots, meat-packing factories, milk farms, infrastructure for grain exports and the development of processing industry. As of 1 January 2011, 32 projects worth KZT 29 billion ($193 million) were completed, which created 2,000 jobs. One such project is a joint venture established between Global Beef Consultants LLC (Bismarck, North Dakota) and the Kazakh government. In 2010, the joint venture imported 2,040 Angus and Hereford cattle from North Dakota. Ultimately the number of cattle is planned to reach 40,000. The $50 million project also includes the construction of two 2,500-animal breeding facilities and a

feedlot. Kazakhstan is already the fourth-largest importer of North Dakota products, mostly farm machinery. The state exported $40.3 million in goods last year, up from $25 million in 2005. The government of North Dakota opened a trade office in Kazakhstan. The Kazakhstan government is looking for agricultural investors from the United States. It has allocated land to be rented by foreign investors for as long as 10 years. Modern technologies are also being brought to Kazakhstan from the United States. In order to support this industry, the government is implementing several programs to improve the investment climate for farming in Kazakhstan. In 2011, government subsidies for agriculture will amount to KZT 58 billion ($387 million), which is greater than the KZT 13.6 billion ($90.7 million) allocated in 2010. To support seed production, the government will allocate KZT 2.2 billion ($14.7 million), higher than the KZT 108 million ($720,721) in 2010. More than KZT 4.2 billion ($28.0 million) will be budgeted for livestock breeding programs, higher than KZT 740.4 million ($4.9 million) in 2010. Almost KZT 13.1 billion ($87.4 million) will be spent on improving the productivity and quality of livestock production, which considerably exceeds the level of subsidies in 2010 – KZT 76 million ($507,173).

Banking and finance In 2011 the situation in the banking sector as a whole remained stable and, after almost three years of stagnation in the Kazakhstani credit market, loans to the economy by banks had been renewed. The volume of these loans increased by 15.7 percent and made up KZT 8.8 billion ($58.7 million). The volume of loans in the national currency increased by 29.6 percent and in foreign currency reduced by 3.4 percent. Due to improvements in economic conditions - in particular borrowers’ financial conditions - the most significant factor of loan portfolio deterioration in 2011 became the absence of the replacement of bad debts by new loans. Meanwhile, the trend of preserving a ‘working’ portfolio volume as a whole across the system at one level was observed – thus banks try to maintain the interest margin at a

reasonable level through making a limited volume of loans to the most qualitative borrowers. In order to increase the populations’ trust in banks and to activate the depositary market, the amount of individuals’ deposits coverage had been increased to KZT 5 million ($33,367). The National Bank carried out an additional capitalization of the Kazakhstan deposits insurance fund. As a result of these measures, deposits were raised by 19.7 percent in 2009 (9.7 percent without the devaluation effect), by 11.6 percent in 2010 and by 14.3 percent in 2011, to KZT 8.4 trillion ($56.0 billion). Insurance

Total assets of insurance (reinsurance) organizations increased by 13.0 percent to make up KZT 387.7 billion ($2.6 billion) as of 1 January 2012. The total amount

Kazakhstan country profile 2012

Kazakhstan - ECONOMIC OVERVIEW

Kazakhstan’s Sovereign Ratings

Standard & Poor’s Moody’s Investors Service Fitch Ratings

Ratings

Outlook

Foreign currency: BBB+ National currency: BBB+

Stable

Foreign currency: Baa2 National currency: Baa2

Stable

Foreign currency: BBB National currency: BBB

Positive

of insurance premiums expanded by 25.4 percent to KZT 175.5 billion ($1.2 billion). A maximum increase in the amounts was registered in voluntary personal insurance by 54.2 percent while compulsory insurance increased by 28.5 percent. A high level of capitalization (net worth grew by 10.8 percent to KZT 231.2 billion ($1.5 billion)), a reduction in risks associated with external reinsurance (insurance reserves exceed KZT 127.9 billion ($853.5 million)), and a low portion of defaulted securities in the investment portfolio of insurance organizations show that there is potential for further development in the sector. Pension system

As at 1 January 2012, the number of savers’ (beneficiaries’) accounts for compulsory pension contributions amounted to 8.1 million with a total amount of KZT 2.6 trillion ($17.6 billion) in pension savings, up by 17.4 percent over the year 2011. Voluntary pension accounts amounted to 38,318 with a total amount of KZT 1.2 billion

($8.0 million) in pension savings. Total retirement savings in 2011 increased by KZT 393.2 billion ($2.6 billion) or 17.4 percent to KZT 2.6 trillion ($17.7 billion). Stock exchange

On 1 January 2012, total trade volume at the Kazakhstan Stock Exchange (KASE) reached $200.1 billion (108 percent of GDP) - slightly less than $206.5 billion in 2010 (140 percent of GDP). During 2011 the KASE registered 93 issues of equities and 238 issues of bonds. Total capitalization of the equities market as of 1 January 2010 was $43.3 billion, with corporate bonds at $40.1 billion. National Fund of Kazakhstan

The National Fund of Kazakhstan (the Fund) was established according to the Decree of the President of the Republic of Kazakhstan dated 23 August 2000. It is managed by the National Bank of the Republic of Kazakhstan. Taking into consideration many features that Kazakhstan and Norway have in common as oil-exporting nations, Kazakhstan has established its National Fund based on the example of the Norway Oil Fund. It has two basic functions: saving (guaranteeing the sustainable socio-economic development of the country and savings for future generations) and stabilizing (reducing economic dependence on unfavorable external factors). The Fund’s assets are being invested into fixed-income securities, money-market instruments and equities issued by top-rated foreign and national companies. The stabilizing portfolio includes investments in highly liquid instruments of money markets and reliable

national fund v norway pension FUND KAZAKHSTAN The National Fund Goals: 1. Ensure stable social and economic development of the country 2. Accumulate financial resources for future generations 3. Reduce the economy’s susceptibility to unfavourable external factors

Income sources: Taxes and non-tax revenues from oil companies, return on invested capital Management: ■■ ■■

■■

Operations require annual approval by the Parliament; Assets are managed by the National Bank of Kazakhstan and/or appointed asset-management companies according to the Ministry of Finance guidelines; Oversight by the Management Council formed by the President and members of Parliament and Government.

Kazakhstan country profile 2012

NORWAY The Norway Pension Fund Goals: ■■ ■■

Smooth short-term variations in oil revenues Cope with long-term challenge of funding pensions in the face of declining oil revenues

Income sources: Cash flow from petroleum activities and return on invested capital Management: ■■

■■

Transfers to a government fiscal budget require approval of the Norwegian Parliament Assets are managed by the Norwegian Central Bank according to the Ministry of Finance guidelines; Oversight by the Norwegian Government and Advisory Council on Ethics.

Kazakhstan - ECONOMIC OVERVIEW

Eurobonds with a high credibility rating. The saving portfolio, aside from debt and money-market instruments, is comprised of equities. This approach favors safe diversification and stable long-term revenues. The Fund has been a very sizeable financial cushion, making the country’s budget much less dependent on price fluctuations for energy and commodity exports during the recent global financial turmoil. Apart from reducing Kazakhstan’s exposure to external shocks, the Fund’s assets have been used to overcome consequences of the global financial crisis. Kazakhstan allocated $19 billion (14 percent of GDP) for local anti-crisis measures from the Fund, which helped to create 400,000 new workplaces, put into operation 170 new industrial objectives and rendered support to SMEs, financial institutions and the real-estate market. As of 1 March 2011, the Fund’s assets rose 26 percent to KZT 6.11 trillion ($40.8 billion) from KZT 4.5 trillion ($30.0 billion) in 2009 on higher revenue from oilindustry taxes. Previously, the Fund had been kept in dollars, but now its currency structure is diversified. Its benchmark portfolio for bonds comprises 40 percent US

Treasuries with maturities of one to five years, 35 percent Euro-area debt rated AA or AAA with maturities of one to 10 years, 10 percent each of one- to 10-year UK gilts and Japanese bonds, and five percent one- to 10-year Australian bonds. The stabilizing portfolio constitutes about 25 percent of the Fund’s assets in foreign currency, whereas the saving portfolio makes up 75 percent. Notwithstanding the negative impact of the global financial crisis on market conditions and especially on the Euro-zone debt capital market, due to a diversified investment policy - as well as a timely response to changes in the situation on the world financial market - the Fund has significantly improved its investment performance in both stabilizing and saving portfolios well above their benchmark portfolios. For instance, sales of Greek, Spanish and Portuguese sovereign bonds helped the Fund to earn about $900 million on its investments in 2010. As a result, after losing money on investments in the first half of 2010, the Fund turned a profit through three quarters as the value of its securities and assets increased.

The State Program of Accelerated IndustrialInnovative Development of Kazakhstan for 2010-14 Kazakhstan had to rely on rich energy resources and spared no effort to ensure speedy development in this sector of the economy. But there was always an understanding that oil could become a curse unless proper policies were developed - that oil is an opportunity, not a guarantee of economic success. The goal is to build a modern, diversified, highly technological, service-based, value-added economy. The State Program of Accelerated Industrial-Innovative Development of Kazakhstan for 2010-14 (SPAIIDK) reflects the country’s new economic philosophy, introduced by the Innovative Industrial Development Strategy for the years 2003-15 (New Industrial Development Strategy). The program is aimed at maintaining steady and balanced economic growth through diversification. It identifies seven areas to serve as a basis for overall economic diversification: agriculture; construction; refining and oil & gas infrastructure development; metallurgy; chemicals and pharmaceuticals; alternative sources of energy (including nuclear and renewable energy); and transportation and telecommunication. Implementation of the Industrial-Innovative Program will lead to a $47.6 billion increase in the economy’s total value added. The main operator of the program is the Ministry of Industry and New Technologies. SPAIIDK has big opportunities for foreign investors. In the framework of the Program’s Industrialization Map,

which includes approximately 609 investment projects worth KZT 9.6 trillion ($64.1 billion), more than 230 investment projects worth KZT 1.0 trillion ($6.7 billion) were launched in 2011. These projects have provided 45,000 new jobs. In aggregate, during 2010-11 about 389 projects worth KZT 1.8 trillion ($12.0 billion) were launched, which have added 90,000 jobs to the economy. Total production of goods and services by the country’s economy has reached KZT 15.7 trillion ($104.8 billion)

The program is aimed at maintaining steady and balanced economic growth through diversification (3.5 percent of growth), among which production volume by start-ups amounted to KZT 510.5 billion ($3.4 billion). More than 100 new products have been introduced to local and neighbouring markets. Under the program, new facilities and technological infrastructure aimed at fostering the creation of innovations were launched. The government has

Kazakhstan country profile 2012

Kazakhstan - ECONOMIC OVERVIEW

supported the opening of four brand-new development laboratories in machinery, mining, oil & gas equipment and agriculture, as well as nine support offices for the commercialization of technologies. The National Innovations Fund affiliated with the Ministry distributed 129 innovation grants for KZT 7.1 billion ($47.4 million). The government also introduced new legislation on energy efficiency, which stipulates an array of financial, technical and administrative support for development and use of energy-saving technologies and techniques. The Samruk-Kazyna (National Welfare Fund) was established to increase the competitiveness and sustainability of the national economy and to prevent any potential negative impact of world-market changes

on the countryâ&#x20AC;&#x2122;s economic growth. About 40 percent of the national GDP is within the realm of the Fund. The total number of holding company employees is more than 260,000, including 205 employees of the management company. The core aim of the Fundâ&#x20AC;&#x2122;s activities is to manage shareholdings of national development institutions, national companies and other legal entities to maximize their long-range value and enhance competitiveness on international markets. Fundamentals of Fund activity: 1. Observance of state interests as the sole shareholder of the Fund;

NATIONAL WELFARE FUND SAMRUK-KAZYNA, JSC Subsidiaries and dependent organisations JSC Air Astana 51% ownership JSC Aktobe International Airport 100% subsidiary JSC Alliance Bank 67.1% ownership JSC Astana Finance 26% ownership JSC Atyrau International Airport 100% subsidiary JSC BTA Bank 75.1% ownership JSC Development Bank of Kazakhstan 100% subsidiary JSC Distressed Assets Fund 100% beneficial ownership JSC Engineering and Technology Transfer Center Trust management JSC Entrepreneurship Development Fund Damu 100% subsidiary JSC Halyk Bank 20.9% ownership JSC Investment Fund of Kazakhstan 100% subsidiary JSC KEGOC 100% subsidiary JSC KazExportGarant Export credit insurance corporation 100% subsidiary

Kazakhstan country profile 2012

JSC Kazakh British Technical University 1.7% ownership JSC Kazakh Operator of the Electrical Energy and Power Market 100% subsidiary JSC Kazakh Research and Development Institute of Energy 51% ownership JSC Kazakhstan Export Credit Insurance Corporation 100% subsidiary JSC Kazakhstan Mortgage Company 100% subsidiary JSC Kazakhstan Mortgage Guarantee Fund 100% subsidiary JSC Kazakhstan Temir Zholy 100% subsidiary JSC Kazakhtelecom 45.9% ownership JSC Kazatomprom 100% subsidiary JSC Kazkommertsbank 21.3% ownership JSC Kazmail 100% subsidiary JSC Kazmunaygas 100% subsidiary JSC Kazyna Capital Management 100% subsidiary

JSC Maikainzoloto 25% ownership JSC Pavlodar Airport 100% subsidiary JSC Pavlodar Oil Chemistry Refinery 42% ownership JSC Samruk-Energo 94.1% ownership JSC TemirBank 79.9% ownership JSC Zhylstroisberbank 100% subsidiary JSC Real Estate Fund Samruk-Kazyna 100% subsidiary KGF IM 100% subsidiary KGF SLP 100% subsidiary Kazakhstan Growth Fund Management 100% subsidiary LLP Repairs Corporation Kamkor 100% subsidiary LLP SK-Pharmacy 100% ownership LLP Samruk-Kazyna Contract 100% subsidiary LLP Samruk-Kazyna Invest 100% subsidiary LLP United Chemical Company 100% subsidiary National Mining Company Tau-Ken Samruk 100% subsidiary

Kazakhstan - ECONOMIC OVERVIEW

2. Transparency, efficiency and flexibility of activity of the Fund and companies; 3. Consistency and operational efficiency in decisionmaking and realization; 4. Responsibility and accountability.

■■

■■ ■■

■■

1. 2. 3. 4.

Main Directions of Fund activity: Assistance in modernization and diversification of the national economy; Assistance in stabilization of the national economy; Increase of activity efficiency of companies; The Fund is designated to extend maximum assistance to the Government of the Republic of Kazakhstan, taking prompt and operative decisions on attraction of investments to the real sector of the economy, stirring up activities in the regions, strengthening inter-sectoral and inter-regional ties, utilizing existing advantages and potential to their full extent.

Efficient diversification and modernization of the national economy are implemented through realizing intensive investment activity, especially in priority sectors of the economy, such as oil and gas, electric energy, metallurgy, chemistry, petrochemistry and infrastructure.

■■

Main objectives of the Fund: To elaborate and provide the realization of investment projects of regional, national and international scale; To support and modernize existing assets of Fund group companies; To assist the development of regions and realize social projects; To support national commodity producers, domestic goods and services.

Functions of the Fund within aforementioned objectives: ■■ To elaborate and (or) realize, and (or) finance investment projects of regional, national and international scale, including the real sector of the economy, using its own resources and (or) with participation of the companies, as well as jointly with strategic foreign and (or) domestic investors, through equity financing and loan extension; ■■ To act as an operator for realization of the program ■■ ‘30 Kazakhstan corporate leaders’ and other programs and plans based on the decisions of the Government of the Republic of Kazakhstan; ■■ To develop new sectors of the economy and to purchase economically attractive assets both in the country and abroad; ■■ To ensure cooperative and active investment policy; ■■ To attract domestic and foreign, state and private investments; to introduce innovations in different spheres of economy;

■■

To raise balanced debt capital on foreign and domestic markets; To finance SME projects; To establish an efficient complex system of financial and investment-instruments group companies; To develop inter-regional economic ties through the realization of projects on Kazakhstan territory; To ensure breakthrough development of regions through the actions of social and entrepreneurial corporations. Functions of the Fund: To participate in stabilization programs of the Government of the Republic of Kazakhstan; To purchase authorized voting shares of second-tier banks; To allocate tied funds in second-tier banks in order to promote social and economic development, including completion of construction sites, financing of SME and agro-industrial complex; To assist in development of mortgage-loan market and housing construction holdings system; To define, approve and carry out monitoring of the procurements order of the Fund and companies, that set the mechanisms for an increased domestic component for provision of localization of production, assembly, repair and service of imported equipment in Kazakhstan only when the equipment is purchased in large volume by the companies; Asset management of JSC ‘Stress Assets Fund’.

Activity of Samruk-Kazyna Fund for stabilization of the economy of the Republic of Kazakhstan: 1. Stabilization of financial sector 2. Problem solving on real-estate market 3. Support of SME 4. Development of agro-industrial complex 5. Realization of innovation, industrial and infrastructure projects

NATIONAL WELFARE FUND SAMRUK-KAZYNA, JSC Mr Umirzak Shukeyev, CEO Sir Richard Evans, Independent Director, Member of the Board of Directors Kazakhstan, 010000, Astana, Block: A, C, E 19, Kabanbai Batyr Ave. Tel: (+7 7172) 554-100, 554-001 and 554-002 Fax: (+7 7172) 554-000

Kazakhstan country profile 2012

Kazakhstan - ECONOMIC OVERVIEW

People’s IPO In a speech at the Nur Otan Party Congress on 11 February 2011, President Nazarbayev asked the Government to develop a program for initial public offerings (IPOs) of national companies owned by the sovereign welfare fund Samruk-Kazyna, which controls around $70 billion of assets in banks, state energy companies and other major industries. Samruk-Energy, KEGOC and KazPost will put their shares up for an IPO by the end of the year. National companies such as KazMunayGas, Kazakhstantemirzholy railways and Kazatomprom will follow up with IPOs in 2012-13. Later, metal producers Eurasian Natural Resources Corp. (ENRC), Kazakhmys, Kazzinc and Arcelor Mittal’s Karmetkombinat will also offer some of their shares. ‘People’s IPO’ shares will be sold directly to the public. Shares that remain unsold to individuals will then become available for purchase in Kazakhstan’s pension and investment funds. “We are now in the tight process of engaging consultants, and I think that in the second half of this year people’s IPO will enter into full force,” said Prime Minister of Kazakhstan, Mr Karim Massimov. “In the sale of shares we do not aim at maximizing profits for the Government. We think more about the

The main aim of the Innovation Fund has to be facilitation of growth of innovative activities investors – citizens and the pension funds… Revenue sharing and the establishment of average investors in the country is very important not only in economic terms, but also from political and social point of view. “Not everyone can become an entrepreneur. But having small savings to the tune of $100, $200, $500 you can take part in the equity. I think that this is a reduction of social tension. This first stage we must pass and later we can talk about the full-scale IPO for a wide range of investors,” the Prime Minister added. The Ministry of Finance has proposed to limit the equity offering up to 10 percent of each company’s shares. Finance Minister Bolat Zhamishev said that “it would be correct if the market proposed only minority stakes up to 10 percent of all the national companies, except for JSC Exploration and Production KazMunayGas.” Some companies are planning to place their shares ahead of schedule. Thus JSC Exploration and Production

Kazakhstan country profile 2012

KazMunayGas is going to sell five percent of its shares this year at an estimated value of $500 million. Kazakh citizens willing to become shareholders of the national companies can acquire no more than 50 shares each. Public offerings will be sold through the offices of KazPost, the national postal service. Development institutions

With a view to implementing innovation policy in the Republic of Kazakhstan, the system of state development institutions has been established. Such institutions are recognized by native and foreign partners as a reliable tool for the establishment of new high-tech industries. The mission of these institutions is to implement and enhance capacities for domestic business to accomplish important national tasks with regard to modernizing and diversifying the economy, as well as bringing the country to a new level of socio-economic development. Through the development institutions, the state participates in the projects focused on creation of entire industries system, producing competitive products, developing technological and economical value chain step by step. It will enable to create multi-activity enterprises, working for final product meeting all competitive product requirements. To further increase the efficiency of implementation of diversification programs, since April 2011 control over the development institutions has been transferred from the National Welfare Fund Samruk-Kazyna to the Ministry of Industry and New Technologies and Ministry of Economic Development and Trade.

Investment Fund of Kazakhstan Investment Fund of Kazakhstan (IFK) was formed in May 2003. It has an authorised capital of KZT 37.9 billion ($253.1 million). Investment Fund of Kazakhstan JSC was founded on 30 May 2003 by Government Resolution of the Republic of Kazakhstan Number 501 within realization of the Strategy of Industrial and Innovative Development of the Republic of Kazakhstan 2003-15. 100 percent of shares of IFK JSC belong to Sovereign Welfare Fund Samruk-Kazyna JSC. Goal of the Fund

The goal of the Fund is assistance in realizing the industrial and innovative policy of the Republic of Kazakhstan through the realization and attraction

Kazakhstan - ECONOMIC OVERVIEW

of investments into attractive projects and financial support to private-sector initiatives in non-primary sectors of the economy. Objectives of the Fund ■■

■■

Equity investments into newly organized and operating organizations dealing with profound processing of raw materials, producing competitive production using new technologies, and also rendering industrial services to the perspective organizations in the industry field; Promotion of private investments into non-primary sectors of the economy through co-financing by the Fund of investment projects (equity financing) and participation in management of these projects;

A decision on providing financial support is made after a comprehensive analysis on the value added concept (VAC) and finding more significant elements of the chain. If the results of VAC analyses show the necessity and viability of the project, then it is given encouragement. One of the main criteria for projects’ evaluation is their commercial viability. When considering a project, the experts take into account whether it leads to the creation of an enterprise that produces products competitive in external markets and capable of replacing imported goods. The analyses mainly focus on private-sector initiatives with respect to the economy’s non-mineral sector. In order to make the projects’ financing easier, in case of a shortage of finance in the private sector, IFK helps with co-financing by taking part in the authorised capital (purchase of shares), but without acquiring a control package. Moreover, it should be stipulated that the state package will be sold once the project has been realised. It gives IFK the opportunity to facilitate not only the creation of new industries, including high-tech enterprises, but also the development of the securities market. The Fund is currently seeking opportunities to establish relationships and develop ways to enhance partnerships with highly reputable strategic investors and private-equity funds interested in emerging markets.

National Innovation Fund The Innovation Fund of Kazakhstan (IF) was formed in May 2003. It has an authorised capital of KZT 9.5 billion ($64.3 million). The Innovation Fund is designed to stimulate the venturing function of the market economy, which does not exist even in all of the developed countries. This function is important for the creation and

development of high-tech fields of economy such as IT, electronics, biotechnology and others. Thus the main aim of the Fund’s activity has to be facilitation of growth of innovative activities, and development of high-tech industries in Kazakhstan. IF’s efforts are aimed at encouraging and developing infrastructure for innovations.

■■

The main tasks of the Fund are: participation in creating the elements of infrastructure for innovations (technical policies and science parks, informational and analytical centres etc); creation of venture funds together with domestic and large international venture investors; participation in the authorised capital of new or existing enterprises with the aim of manufacturing high-tech products and developing new technologies; financing of certain types of Research and Development aimed at creating new technologies, products and services that are commercially viable and that may have a positive impact on the technological advancement of the country.

A decision on issuing IF grants is taken after the input of independent scientific and technical expertise, with the involvement of foreign experts. Scientific research that has been selected for financing has to be up to the projects within the framework of financing via the Investment Fund of Kazakhstan and Development Bank of Kazakhstan. The innovation infrastructure development is operated by a branch enterprise of the NIF - Center of Engineering and Transfer of Technologies JSC. NIF has been a member of the European Venture Capital Association (EVCA) and Singapore Venture Capital Association (SVCA) since 2005. The creation of venture funds facilitates the involvement of private capital in innovation activity, reduces risks and forms a mechanism of effective cooperation between government and private sector in the sphere of commercialization of innovative ideas. At present, the National Innovation Fund has initiated the foundation of six venture funds together with Kazakhstani private partners. The investment policy of these funds is to search for and attract projects in the areas of ICT technologies, new construction materials, pharmaceuticals and other prospective export-oriented areas. Today, the authorized capital of the six venture funds created in Kazakhstan is equal to $130 million. Venture capital is investors’ capital created to finance new, developing enterprises and firms, or those competing for a market share. It is therefore associated with a high or relatively high level of risk; long-term investments into venture securities or enterprises with an expectation

Kazakhstan country profile 2012

Kazakhstan - ECONOMIC OVERVIEW

of high profits. Venture investments are usually risky investments with profitability at a level higher than average.

All of these processes are united in ENGINEERING THE NEW ECONOMY, the economy being built today.

KazExportGarant

KAZNEX

KazExportGarant (State Insurance Corporation for the Insurance of Export Credit and Investment) was formed on 8 August 2003. It has an authorised capital of KZT 7.7 billion ($51.4 million).

In early 2008 a corporation for export development and promotion was formed. After the announcement of the State Program for Accelerated IndustrialInnovative Development in 2010 it was reorganized into the National Agency for Development and Promotion of Export and Investments, KAZNEX INVEST. It is now in charge of organizing roadshows and business forums aimed at attracting foreign direct investments. The Agency is now working on creating a web portal that will match local and foreign investors. It is also partnering with large foreign investors to attract new technologies within the realization of investment projects that aim to produce high value-added goods in Kazakhstan.

The main task of the Export Credit Corporation is to facilitate the export of goods and services produced by Kazakh companies and insure against political and regulatory risks. The Corporation undertakes market research for the development of the export of Kazakh goods, and analyzes and distributes information on potential export markets. This is a widely recognised tool to facilitate export transactions. Within domestic insurance market growth it is ready to cover risks related to export and import operations. The Export Credit Corporation is focusing its activity on insuring against political risks and providing commercial information on international markets. On 11 August 2007, credit agency Moody’s Investors Service upgraded the financial reliability rating of the Corporation to the sovereign ‘Baa1’, with stable rating outlook. The rating was upgraded due to financial performance and a well-implemented investment policy in the area of asset management, as well as the Corporation’s full compliance with the international standards used by world export credit agencies in the area of commercial and political-risks insurance.

The key objective of the Agency is to be a driving force to build the institutional network, stimulate and maintain export growth and develop trade competence through improving national competitiveness. The Agency is working closely with both the private and public sectors to develop export promotion.

■■

Development Bank of Kazakhstan Established in 2001, the Development Bank of Kazakhstan is currently one of the main providers of state investment policy in Kazakhstan. By financing the establishment of competitive productions in non-primary sectors of the economy and developing the country’s infrastructure, the Bank directly contributes to the sustainable development of the national economy. Its investment activity is represented across Kazakhstan and in all key sectors of the processing industry. The new and modernized enterprises commissioned with the help of the Bank’s financing make a solid contribution to strengthening Kazakhstan’s industrial and export potential. Being one of the main participants in economic diversification, the Development Bank of Kazakhstan will further establish itself as the leader in implementing breakthrough and cluster projects. Its main principles are Professionalism, Credibility, and Transparency.

Kazakhstan country profile 2012

■■

The Agency’s activities will be aimed at: Promotion of an enterprise export capacity development (training, technical assistance, databases, trade financing information , logistics, custom clearance, packing etc); Organizing business forums and trade shows to raise awareness of business opportunities in Kazakhstan; Promotion of the Kazakhstan goods export (establishing and maintaining business relations with other countries; exhibitions; missions of exporters and importers; assistance in assessing external markets); Development of the institutional capacity (recommendations on trading improvement, interaction between participants in the trade support network, development of trade competence, publications to support exporters etc); Consulting (study of sectors and potential markets, analysis of current legislation etc);

Kazyna Capital Management Kazyna Capital Management (KCM JSC) was formed in March 2007 Kazyna Capital Management’s mission is to provide an additional incentive to private businesses in Kazakhstan

Kazakhstan - ECONOMIC OVERVIEW

through direct participation in the authorized capital; grant loans, warranties and other investment instruments. The main objective is to make a significant contribution to the country’s structural and sustainable economic development and to gain, jointly with the private sector, income compatible by a degree of risk. One of the main goals of KCM JSC in the market is providing investments in the priority sectors of the economy. The key objective of Kazyna Capital Investment is the foundation of Private Equity Funds (PEF) jointly with overseas funds to finance different projects, especially in Kazakhstan and the Central Asia region.

DAMU Entrepreneurship Development Fund (EDF) “Damu” started operating on 18 August 1997 The major goal of the Fund is to encourage the establishment and economic growth of Kazakh small businesses and to distribute government funding to support small and medium enterprises. Until November 2007 the Small Entrepreneurship Development Fund accomplished its major goal by undertaking the following actions: ■■

■■ ■■ ■■

■■

Developing project financing: direct loans to small businesses operating in priority sectors to enable them to diversify, taking into account the social and economic situation in certain areas; Developing financial leasing; Establishing a network of microfinancing institutions; Developing a system to guarantee liabilities of small businesses to commercial banks; Consulting to small and medium enterprises within the program implemented by the Fund; The Fund is currently part of the Sustainable Development Fund Kazyna. New principles and priorities of management and communications include transparency and partnership.

Since late 2007, there have been conceptual changes to the Fund: what was once the Small Entrepreneurship Development Fund has now become the Entrepreneurship Development Fund Damu. The Fund now has greater authority to support small and medium-sized businesses. It is turning from its role as a financial institution into an operator managing funds allocated by the government. New approaches are being taken to providing financial support to small and medium-sized businesses, assisting in collecting and analyzing data and providing consulting services to small and medium-sized businesses.

CONTACT DETAILS Investment Fund of Kazakhstan Chairman: Mr Askar Karimullin Tel: (+7 727) 258 83 33, 259 81 31 Fax: (+7 727) 258 37 99 E-mail: ifk@ifk.kz Website: www.ifk.kz Address: Kazakhstan, 050010 Almaty, Zenkov St. 80 National Innovation Fund Chairman: Mr Aidyn Kulseitov Tel: (+7 7172) 516 982 Fax: (+7 7172) 517-021 E-mail: info@nif.kz Website: www.nif.kz Address: Kazakhstan, 010017 Astana, 29 Sagynak Street, Floor 9 Export Credit Insurance Corporation Tel: (+7 727) 250 00 21 Fax: (+7 727) 293 88 37 E-mail: info@kecic.kz Website: www.kecic.kz Address: Kazakhstan, 050010 Almaty, Zenkov Str., Building # 80 Development Bank of Kazakhstan Chairman: Mr Nurlan Kussainov Tel: (+771712) 792606 E-mail: Aliyaaid@kdb.kz, aaidarbekova@mail.ru Website: www.kdb.kz Address: Kazakhstan, Astana, Esil district, Orynbor Street, Building 10 (Kazyna Tower) KAZNEX Chairman: Mr Yerlan Arinov Tel: (+7 7172) 79 17 18 Fax: (+7 7172) 79 17 19 E-mail: info@kaznex.kz Website: www.kaznex.kz Address: Kazakhstan, 010000 Astana, Sygynak Str., Building # 25, Business Center “Ansar”, Floor 2 Kazyna Capital Management Chairman: Mr Abay Alpamysov Tel: (+7 727) 334 14 17 Fax: (+7 727) 334 14 18 E-mail: info@kcm-kazyna.kz Website: www.kcm-kazyna.kz Address: Kazakhstan, Almaty, Dostyk Avenue, Building # 291/3a, Floor 2 DAMU Chairman: Ms Lyazzat Ibragimova Tel: (+7 727) 244 55 56, 244 55 77 Fax: (+7 727) 244 83 41, 278 07 76 E-mail: frmp@fund.kz Website: www.fund-damu.kz Address: Kazakhstan, 050004 Almaty, Gogol Str., Building # 111

Kazakhstan country profile 2012

Kazakhstan - economic overview

Taxation Due to political and economic stability in Kazakhstan, the country’s abundant natural resources and its high annual economic growth over the past decade, foreign investors continue to view Kazakhstan as a favorable place to do business. One of the most important issues to those foreign investors is taxation. The existing Tax Code was adopted on 10 December 2008, with the latest amendments made on 1 January 2011. It is aimed at fostering the process of further diversification of Kazakhstan’s economy and the stimulation of its development. All previous amendments and interpretations, as well as International Financial Reporting Standards (IFRS), have been taken into account and incorporated into the Tax Code. The new Code aims to achieve a reduction of the tax burden on sectors not related to naturalresources extraction and to improve tax administration. Corporate taxation for companies in Kazakhstan

The main rate of 20 percent applies to both domestic and foreign companies. Foreign investors can operate in Kazakhstan through either a local branch of a foreign company or a local subsidiary established as an independent legal entity. Income derived by a non-resident from sources in Kazakhstan unrelated to a permanent establishment of a non-resident is taxed at rates varying between five percent and 20 percent, depending on the type of income. While plans to further reduce the corporate tax rate to 15 percent have been postponed, the government remains committed to easing the overall tax burden in order to stimulate new business ventures established with foreign investment-capital participation. There are also other incentives available for foreign companies – for instance, an accelerated tax deduction for capital expenditure, foreign tax credits etc. What is the taxation regime for oil companies?

Oil, gas and mining companies in Kazakhstan are referred to as subsurface users and enter into subsurface-use contracts to acquire the rights to exploit its mineral resources. Taxes applicable to subsurface users are mineral extraction tax, corporate income tax, rent tax on export and excess-profit tax. Energy companies also pay bonuses, crude-oil export duty and other fees (environmental, fee for the use of radio-frequency spectrum, fee for the use of navigable waterways etc). The mineral extraction tax is a volume-based royaltytype tax applicable to crude oil, gas condensate and natural gas. Rates escalate depending on volume. Different tables of rates and tax bases apply depending on what is produced and whether it is exported or sold domestically. Rates vary from 0.5 percent to 18 percent.

Kazakhstan country profile 2012

Corporate income tax is applied to all companies at a rate of 20 percent of taxable income. Energy companies can operate in Kazakhstan through either a local branch of a foreign company or a local subsidiary established as an independent legal entity. Income derived by a non-resident from sources in Kazakhstan unrelated to a permanent establishment of a non-resident is taxed at rates between five and 20 percent, depending on the type of income. The rent tax on export is determined on the basis of the value of the exported crude oil and gas condensate. The calculation is based on the same tax valuation as for mineral extraction tax upon export. The tax rate ranges from seven percent to 32 percent and is applied once the world price for crude oil and gas condensate exceeds $40 per barrel. Excess-profit tax is calculated annually and is paid at progressive rates applicable to the portion of net income that exceeds 25 percent of deductions. The taxable tranches are derived by applying ratios to the deductible expenses. Subsurface users are expected to pay a signature bonus and commercial-discovery bonus. The rate of crude-oil export duty as of 1 January 2011 is $40 per tonne of crude oil. As for fees, they are variable and mostly immaterial. Are there any tax treaty benefits?

Yes, there is a procedure for claiming treaty relief in Kazakhstan that depends on the type of income for which treaty benefits are claimed. For passive income and income from services provided entirely outside Kazakhstan, a non-resident of Kazakhstan who is a resident of a country that has a tax treaty with Kazakhstan can claim treaty benefits simply by providing to the payer a copy of a certificate from the non-resident’s home-country tax authorities confirming that the non-resident is a tax resident of that treatypartner country. Likewise, a non-resident with a branch office in Kazakhstan can claim a treaty-reduced branch profit tax rate by obtaining from its home-country tax authorities a certificate confirming that the non-resident is a tax resident of that treaty-partner country. Can I use investment preferences?

Acting enterprises are granted the right to deduct the cost of fixed assets entered to exploitation for a period not less than three tax periods (years). Newly commissioned enterprises are given exemption from corporate income tax on revenues of investment activity for a period from three to 10 years. There is an exemption from property tax on fixed assets purchased within the framework of the investment project for the period not less than three tax periods (years). Exemption from land tax for plots is used for implementing

Kazakhstan - economic overview

investment projects for a period not less than three tax periods (years). There is flexibility in terms of custom-duty payment when an investor imports equipment or parts to implement the project. State grants in kind can be granted as land, building, construction, machines and equipment. There are certain tax preferences that are available for subsurface users, subject to the government’s approval and limited to subsurface-use contracts for production concluded between 2009 and 2012. Another investment incentive is the possibility to carry forward losses pertaining to subsurface-use contracts for a period up to 10 years. Tax losses may not be carried back. What are the social tax and withholding tax rates?

An employer is required to remit social tax at a flat rate of 11 percent on top of an employee’s salary (both local and foreign) at its own expense. An employer also must pay social-security contributions to the State Social Security Fund at an effective rate of five percent (for 2012) on top of the salary of a local employee (with an income cap of KZT 174,390 ($1,164)). Social contributions paid reduce the social tax due. A withholding tax of 15 percent is levied on dividends, interests and loyalties paid to a non-resident without a permanent establishment in the country. A 20 percent tax rate applies to dividends, interest and royalties paid to a non-resident registered in a tax haven.

What changes have been introduced to VAT?

Value Added Tax (VAT) is levied on the supply of goods and services and imports. A reverse charge applies in certain cases. The standard rate is 12 percent. Certain exemptions exist for export, financial and other transactions. For instance, tax benefits are available to enterprises making investments. Payment of VAT is due by the 25th of the month following the reporting quarter. VAT and related turnover (except zero-turnover transactions) should be reported on a quarterly basis by the 15th of the second month following the reporting quarter. Has the Customs Union made any impact on the taxation regime in Kazakhstan?

As of 1 January 2010, Kazakhstan became a member of the Customs Union (CU) with Russia and Belarus and, since 1 January 2011, has been a member of the Common Economic Space. Being a member of the above unions hasn’t affected the tax regime of Kazakhstan, which is considered one of the most liberal tax regimes among the countries of the CIS. For example, corporate income tax (CIT) in Belarus is 24 percent, whereas in Kazakhstan it is 20 percent. VAT in Russia and Belarus is 18 percent and 20 percent respectively , whereas in Kazakhstan it is 12 percent.

Trade regulation Trade growth is a primary component of Kazakhstan’s successful development. There are new players in the market, and the extension of trade with Kazakhstan is becoming a priority for an increasing number of foreign companies. What follows is an overview of the main regulatory mechanisms for trade in imported goods into Kazakhstan. The main requirements of customs control, licensing and certification are described. Organizational and legal form of trade enterprise

Kazakh law does not distinguish between resident and non-resident legal entities. Therefore, a foreign company may carry out activity in Kazakhstan as a Kazakhstan legal entity, with charter capital fully established by a foreign company, in the form of a joint venture or by establishing a branch. Tariff regulatory measures of foreign economic activity

From the moment that goods are conveyed across the customs border of Kazakhstan, they fall within the scope of the legally established rules on conveyance

and customs clearance, ie tariff regulatory measures. These rules are established by the Customs Code of the Customs Union and the Customs Code of the Republic of Kazakhstan. The customs payments depend on customs procedure chosen and include customs duties, customs fees and payment for a preliminary decision. In order to pass customs clearance, the customs value of the goods must be determined. There are several methods that have been established to determine the customs value: transaction value of imported goods; transaction value of identical goods; transaction value of similar goods; deduction of costs; computed value and the reserve method. The customs valuation of imported goods is often based on the price of the transaction with these goods. The declaring person independently determines the customs value of the goods and the customs authority controls the correctness of such determination. A person importing goods has to pay customs duties and taxes, comply with non-tariff regulatory measures and conduct a customs clearance. Under the procedure of processing goods for internal consumption, foreign goods undergo processing under customs controls

Kazakhstan country profile 2012

Kazakhstan - economic overview

without payment of customs duties or taxes and without application of non-tariff regulatory measures. The free customs zone procedure envisages that goods placed and used within the relevant territorial special economic zones are exempt from customs duties and taxes, except for excise tax on imported goods, and from non-tariff regulatory measures being applied to them, except for safety requirements. This category of goods consists of the articles included in a list composed specifically for the purpose of the creation of special economic zones. For example, the Decree of the President ‘On the creation of the ‘Ontustik’ special economic zone’ contains the list of goods including vehicles, equipment and products necessary to conduct construction work on the territory of the economic zone, as well as goods and materials necessary to conduct scientific and development work. Kazakhstan grants tariff preferences to certain countries, either in the form of release from or reduction of the rates of customs duties, or in the form of allocation of quotas for the preferential import of goods. Customs duties are not collected when goods are imported from countries that are members of the Customs Union or have free-trade agreements with Kazakhstan. The Commission of the Customs Union approves the list of developing countries that are subject to the common system of tariff preferences of the Customs Union. The listed goods imported from developing countries to the common-customs territory of the Customs Union are granted tariff preferences. The law envisages that the customs value is declared by a declarant when submitting a customs declaration of goods. However, the final decision concerning accuracy of methodology application on customs-value determination is made by the customs authorities. In order to avoid delays in customs clearance, declarants should carefully review all requirements with regard to the list and contents of the documents to be submitted. It is possible to request a preliminary decision from customs authorities on classification of goods and to undergo a periodic declaration of goods. Non-tariff regulatory measures

Apart from customs payments, the import of goods is also subject to non-tariff regulatory measures, including licensing, quotas, certification and other protective measures established by law. Licensing

The purpose of import licensing of certain goods is to monitor and control imports of goods that are classified as sensitive for national-security reasons, protection of life or health of citizens and the environment. Licensing of imports and exports is regulated by the Agreements of the Customs Union. Not all goods must be licensed, only those that are included in the special list approved by

Kazakhstan country profile 2012

the Commission of the Customs Union. The list includes such goods as ozone-depleting substances and products containing ozone-depleting substances, medicine and pharmaceutical substances, veterinary medicines, radioelectronic devices and (or) high-frequency devices, ethyl spirits and alcohol products, and cryptographic devices. Obtaining a license is mandatory for every imported category of goods, whether such goods are imported by a legal entity registered in Kazakhstan or a foreign legal entity (or its structural subdivision). In order to obtain a license, an applicant needs to submit documents regulated by the legislative acts to the authorized body. One-time licenses are issued on the basis of a foreign-trade contract related to goods subject to import licensing. The license grants the right to import certain types of goods subject to licensing in the quantity determined by the license and is valid up to one year from the date of issuance of the license. At the request of an applicant, the duration of a one-time license can be extended by the authorized body making additional entries into the license. An import license is issued within 15 business days from the date of submission of all necessary documents. The authorized body of Kazakhstan has the right to terminate or suspend the license in the case of a change in the constituent documents of the licensee registered as a legal entity (a change of the organizational-legal form, name, or its location) or a change in the passport information of the licensee being a physical person. In such circumstances, the licensee can ask the authorized body to terminate the existing license and register a new license. Certification of compliance with technical regulations and standards

Within the framework of the formation of the Customs Union, which started operating on 1 January 2010, the basic legal framework for Kazakhstan’s technical regulations could be found in the EurAsEC Agreement on Implementation of Coordinated Policy in the Field of Technical Regulation, Sanitary and Phytosanitary Measures of 25 January 2008, signed by the Republic of Belarus, Republic of Kazakhstan, Russian Federation, Republic of Tajikistan and Kyrgyz Republic. Technical regulations are mandatory for application by all EurAsEC member states and are enforced in the manner provided by member states’ national legislation. Products covered by EurAsEC technical regulations are allowed on the common market only if they pass the appropriate conformity assessment procedures within the territory of any member state in compliance with EurAsEC technical regulations. Conformity assessment is a process that determines whether products and processes conform to technical

Kazakhstan - economic overview

regulations or standards. Conformity recognitions can be (i) mandatory – by a certification from an accredited certification body or a producer’s declaration of conformity (for products subject to technical regulation requirements); and (ii) voluntary – by a certification or a conformity declaration of the producer/seller indicating that the requirements of standards, other documents or special requirements were met (for products not subject to mandatory conformity recognition). For assessment of products’ conformity to technical regulations, EurAsEC member states upon mutual agreement and on a voluntary basis apply international and regional standards and, in the absence thereof, national ones. Conformity-assessment documents issued by a certification body of one member state are equally valid within the territory of any other member state without carrying out additional procedures. Guided by EurAsEC Agreement, the CU member states established a legal framework for technical regulations within the CU in the Agreement on the Common Principles and Rules of Technical Regulating of 18 November 2010 (hereinafter – the CU Agreement on Technical Regulating). The CU technical regulations have the status of direct application. Products could be released for circulation within the CU territory only following the results of a conformity assessment. In accordance with the CU Agreement on Technical Regulating, the CU member states formed a Common List of Products Subject to Mandatory Requirements within the Customs Union (hereinafter – Common List). Products included on the Common List, for which no technical regulations of the CU or EurAsEC came into force, should be governed by the relevant national legislation of CU member states. Currently, mandatory requirements are applied to 35 product groups. The product has to be excluded from the Common List once the CU technical regulation for this product comes into force. The effect of CU technical regulations for certain products is terminated once the EurAsEC technical regulations for these products come into force. Pursuant to the CU Agreement on Technical Regulating, activity relating to conformity assessment should be carried out by the accredited certification bodies and testing laboratories included in the Common Register of Certification Bodies and Testing Laboratories. Recognition of results issued by accredited certification bodies and testing laboratories should be carried out in accordance with the CU Agreement on Mutual Recognition of Accreditation of Certification Bodies and Testing Laboratories Performing Conformity Assessment of 11 December 2009. Results of products-conformity assessments for which no technical regulations of the CU came into force have to be recognized in accordance with the

CU Agreement on Circulation of Products Subject to Mandatory Assessment of Conformity on the Customs Territory of the Customs Union. The legislative framework on technical regulation, standardization, certification and accreditation in Kazakhstan is based on Law No. 603-II On Technical Regulation of 9 November 2004. The two main objectives of the Law are (i) to ensure the safety of products through the application of mandatory technical regulations; and (ii) to enhance product competitiveness through the application of voluntary standards. A conformity declaration can be prepared on the basis of evidence collected by the applicant alone or on the basis of evidence obtained with the participation of a conformity-assessment organization. The declaration of

Kazakhstan has concluded a number of international agreements under which the conformity certificates of some foreign states are recognized in the country conformity is to be registered with the relevant accredited conformity-recognition organization and is valid – similar to a conformity certificate – in the entire territory of Kazakhstan. Any domestic or foreign organization can act as a conformity-assessment organization or a test laboratory as long as it has received accreditation in accordance with established rules. Foreign conformity certificates, test protocols, accreditation certificates and other documents issued by foreign accreditation bodies are recognized in accordance with mutual-recognition agreements. In the absence of international mutual-recognition agreements, test results issued by foreign authorized bodies will only be recognized through the accreditation of these foreign bodies in Kazakhstan’s national accreditation system. Kazakhstan has concluded a number of international agreements under which the conformity certificates of some foreign states are recognized in the territory of Kazakhstan. Recognition of the foreign states’ certificates is carried out by means of their reissue in the form established in Kazakhstan. If there is no international agreement with an exporting country, the certification of imported products is conducted according to the rules established for Kazakhstani producers.

Kazakhstan country profile 2012

Kazakhstan - economic overview

Status report - Kazakhstan’s WTO accession Status of multilateral and bilateral negotiations Background

Kazakhstan submitted its formal application for WTO membership in 1996. Upon its application, the WTO formed a Working Party to examine the accession request and, ultimately, to submit the findings of the Working Party to the General Council for approval. The Working Party is open to all members of the WTO and Kazakhstan’s Working Party consists of 35 countries. Negotiations have been centered on four key issues: Multilateral negotiations on systemic issues: Working Party members reviewed the existing regulatory framework for Kazakhstan’s economic and trade policies, and made recommendations on how to bring them into conformity with WTO agreements.

Kazakhstan has made an economically prudent decision to pursue WTO accession through the framework of the Customs Union Multilateral negotiations on agriculture: Working Party members reviewed the types and volumes of state support to the agricultural sector, and are negotiating the specific measures that are considered to be trade distorting by impacting the price of agricultural products. Bilateral negotiations on market access for goods, as a result of which Kazakhstan will bind its import-duty rates for both agricultural and non-agricultural goods imported from WTO member states. Bilateral negotiations on market access for services, as a result of which Kazakhstan will undertake specific commitments in terms of market access for foreign suppliers of services, such as financial, construction, telecommunication, legal and other types of services. After careful consideration of the pros and cons, Kazakhstan has made an economically prudent decision to pursue WTO accession through the framework of the Customs Union, together with Russia and Belarus – neighboring economies that fully comply with Kazakhstan’s economic and trade interests. Since WTO accession as a united three-nation-strong market is an

Kazakhstan country profile 2012

unprecedented case, the members of the Customs Union have agreed to continue its individual track and coordinate among themselves the issues related to the Customs Union. Status of negotiations

Kazakhstan has signed protocols with each Working Party member state, concluding bilateral negotiations needed for WTO accession to move forward. The US and EU delegations are active participants in the multilateral negotiations, which we plan to conclude in 2012. The government of Kazakhstan continues to revise its trade regime to comply with WTO rules, including those on agriculture, trade, customs procedures, protection of intellectual-property rights, treatment of state-owned or controlled enterprises, transparency and other issues. A successful meeting was held in April 2012, which resulted in the Chairman of the Working Party, Mr Hannu Himanen, encouraging members of the Working Party to finalize multilateral negotiations. He also established Kazakhstan’s accession to the WTO as a priority for this year. Another Working Party meeting will convene in July, with further meetings to be held throughout the fall, which will hopefully result in an invitation to join the WTO by the end of this year. Repeal of Jackson-Vanik

Kazakhstan remains designated under the Jackson-Vanik amendment, legislation that was passed in the 1970s to prevent the Soviet Union from charging exorbitant fees to Jews trying to emigrate. The intent of this law was to pressure communist countries to respect internationally recognized human rights, especially in respect to Jewish emigration. This outdated law continues to prevent Kazakhstan from receiving permanent normal trade relations (PNTR) with the United States. While in practice the President of the United States certifies to Congress that most countries under the amendment are in permanent compliance, establishing PNTR between Kazakhstan and the United States is necessary for Kazakhstan to gain membership in the WTO. Congress and the President have voted to graduate Albania, Armenia, Bulgaria, China, Czechoslovakia, Estonia, Georgia, Hungary, Kyrgyzstan, Latvia, Lithuania, Mongolia, Romania, Ukraine and Vietnam in correspondence with each country’s WTO accession. Until the United States graduates Kazakhstan from Jackson-Vanik and establishes PNTR with the country, US businesses looking to do business in Kazakhstan will suffer. US exports in goods to

Kazakhstan - economic overview

Kazakhstan totaled roughly $826 million in 2011. According to the latest data available, annual US FDI in Kazakhstan was nearly $8 billion in 2009. Yet there is great potential to increase opportunities for US businesses, both through trade and investment, even further. However, without PNTR these US companies will lose their competitive advantage to their European and Asian counterparts, who are able to import their goods into Kazakhstan at a lower market rate. Benefits to the US economy

Kazakhstan is a significant trading partner with the United States. Membership with the WTO coupled with its membership in the Customs Union make Kazakhstan a logical place for US businesses to enter into the Central Asian markets. There are several examples of US companies that are already doing this successfully. General Electric – In 2009, GE signed agreements that greatly expanded its locomotive presence in Kazakhstan. The first deal, valued at over $1 billion, is GE’s largest service agreement outside of North America.

The second was a Memorandum of Understanding to jointly build a locomotive assembly plant in Astana for GE’s Evolution Series locomotives. This plant came online in late 2009. This is a great example not only of how a US company is benefiting from access to the Kazakh market, but also how doing business in the Kazakh market has a positive impact on the US economy through creating new jobs in the United States to support companies’ business abroad. Boeing – In February 2012, Air Astana signed a deal for the purchase of four Boeing 767s beginning in 2013, and three Boeing 787s starting in 2017, for a total of $1 billion. This deal will help to support more than 160,000 American jobs in Washington and South Carolina, and is also essential to Air Astana updating and modernizing its fleet. Agriculture – The US and Kazakhstan do significant agricultural trade as well. In 2001 Kazakhstan imported more than 3,000 head of American Black Angus and Hereford cattle from North Dakota.

Kazakhstan’s position on the WTO after the creation of the Customs Union The Customs Union was formed on 1 January 2010 In order to access more fully the benefits of trade within the region, Kazakhstan formed a Customs Union with Russia and Belarus. Within this Customs Union, Kazakhstan holds three of the nine ministerial positions: Minister of Economy and Finance, Minister of Energy and Infrastructure, and the Minister of Competition and Anti-Monopoly Regulation. Customs Union overview

The Customs Union was formed on 1 January 2010. Its goal is to enhance integration among the economies of Kazakhstan, Russia and Belarus, and facilitate trade and investment among the Customs Union countries and with countries outside of the Union. Elimination of internal customs borders and the harmonization of Customs Union members’ legislation is already creating additional benefits for the trading partners by ensuring free circulation of goods within the Union, thus providing traders and investors with bigger economic space and a more attractive market for potential investors. Within the framework of the Customs Union, more than 80 agreements have been signed, all of which entered into force on 1 January 2011 and addressed issues such as: ■■ Common trade policy vis-à-vis third countries, including uniform tariff and non-tariff regulations;

■■

Development and application of uniform safety standards (technical regulations, veterinary, sanitary and phytosanitary measures); and Application of common customs regulations and administration procedures.

As of 1 July 2011, customs-clearance checkpoints and internal customs-clearance procedures were removed between the three member states of the Customs Union, creating a single economic zone that allows for the free movement of goods, services, and capital between all three states. As part of this process, 17 agreements have been signed, all of which entered into force on 1 January 2012. These agreements fall into four categories: ■■ coordination of macroeconomic policies, common rules and principles of competition, allocation of industrial and agricultural subsidies; ■■ providing for the free movement of services and capital; ■■ allowing for the free movement of labor; ■■ non-restrictive and non-discriminatory access to transportation infrastructure. The Customs Union, in effect, increases the size of the Kazakh economy, and bigger markets mean greater trade and investment opportunities for US businesses.

Kazakhstan country profile 2012

Kazakhstan - economic overview

Benefits to the United States

Comparison of tax regimes

The United States stands to greatly benefit from increased access to the economies of the Customs Union countries. The United States is already a major trading partner with Kazakhstan; in 2011, US exports in goods to Kazakhstan totalled roughly $826 million. According to the latest data available, US FDI in Kazakhstan was nearly $8 billion in 2009. Yet there is great potential to increase significantly the levels of trade between the United States and Kazakhstan.

US investors have the opportunity to increase their presence in the Kazakh economy and will have further opportunities to benefit from the large and relatively untapped markets of Kazakhstan and the greater Customs Union With greater market access in key services sectors, US investors have the opportunity to increase their presence in the Kazakh economy and will have further opportunities to benefit from the large and relatively untapped markets of Kazakhstan and the greater Customs Union. However, to take full advantage of this market the US Congress must pass legislation that graduates Kazakhstan from the Jackson-Vanik amendment and extends PNTR status to Kazakhstan, upon its accession to the WTO. The Kazakh government continues to pursue policies that develop its market economy and open its markets even further to the global economy. As these reforms continue, the United States is poised to gain greatly from access to this new market. However, without PNTR, US businesses will lose business to European and Asian competitors. Customs Union Taxes

Kazakhstan Russia Belarus

Value added tax

12%

18%

20%

Income Tax

20%

24%

Dividend tax

12%

Kazakhstan country profile 2012

The chart below demonstrates the tax regimes and incentives that Kazakhstan and the rest of the Customs Union members negotiated during its formation. Kazakhstan’s tax regime is more liberal than the other members of the Customs Union. This is because of Kazakhstan’s geopolitical location – transporting goods to market is more expensive and makes Kazakh products more expensive than Russian or Belarusian counterparts. As such, Kazakhstan negotiated a lower tariff rate as a means of balancing out the competitive advantage. Likewise, the second chart (right) demonstrates incentives developed to attract foreign investment. The Customs Union special economic zone allows each country to provide incentives for companies looking to invest. These incentives encourage companies not just to trade with Kazakhstan but also to build production facilities within the country. Because of these incentives, Kazakhstan is poised to be a platform for regional trade within the single economic zone and all of Central Asia. Customs Union and the WTO

1. Accession to the WTO Remains a Priority: Accession to the WTO has always been and remains a foreign policy priority for Kazakhstan. Negotiations on the country’s WTO accession have been ongoing for more than 16 years. Kazakhstan remains committed to this process and to actively working to conclude the accession process. It considers both the formation of the Customs Union and accession to the WTO to be mutually complementary rather than mutually exclusive. 2. WTO and Customs Union negotiations moved in parallel: Negotiations on Kazakhstan’s accession to the WTO and efforts to join the Customs Union were pursued in parallel. The governments of the three Customs Union members showed great political will and determination to settle negotiations on the Customs Union, which is why it has concluded at a faster rate than WTO accession. 3. Creating the Customs Union protects Kazakhstan’s economic interests: Kazakhstan’s decision to create the Customs Union together with Russia and Belarus was based solely on the country’s own economic interests, including the following factors: Economic Diversification: Kazakhstan has the sixth largest mineral reserves in the world and is a major player in world-energy markets. A major portion of its mineral and energy resources are exported to external markets. Diversification of the economy by developing non-extractive sectors and export promotion of highly marketable products is a high priority for the Kazakh government. Future tariff policy within the Customs Union will allow the import of raw materials and

Kazakhstan - economic overview

Government incentives within the Special Economic zones Incentives

Kazakhstan

Russia

Belarus

Income tax

0% - 10 years

Minimum 13.5%

12% - up to 5 years

Value added tax

0% - 10 years

0% - up to 20 years

10% - up to 5 years

Property Tax

0% - 10 years

0% - up to 5 years

Land Tax

0% - 10 years

0% - up to 5 years

equipment under low custom duties, which will serve to promote new investments in economic growth. Geopolitical realities: Kazakhstan is the largest landlocked country in the world and all of its foreign trade depends on the routes that transit the territories of neighboring states. Membership in the Customs Union provides Kazakhstan’s businesses with non-discriminatory transit tariffs, taking into consideration that almost all the trading relations, particularly with the European Union, are implemented through the transit of Russian territory. Global financial crisis: The crisis has reduced the flow of FDIs, decreased trade turnover, led to the introduction of protectionist mechanisms by some trade partners, and seriously damaged the economies of neighboring states.

This harsh reality demanded a more active and joint approach to further integrate and modernize the regional economy. Creation of the Customs Union also allows for more efficient use of limited financial resources. 4. Expansion of global trade should proceed: The Central Asian Trade and Investment Framework Agreement (TIFA) provides a useful background for a regular dialogue between US and Kazakhstan trade authorities on issues of mutual interest. We share the United States’ vision that the expansion of global trade should proceed through creating opportunities for regional trade, and Kazakhstan stands ready to work with the US on the implementation of this vision.

Astana Economic Forum The world’s leading financial experts, distinguished politicians and 11 Nobel Prize winners, as well as heads of international organizations and regional associations, gathered for the Fifth Astana Economic Forum on 22-24 May at the Independence Palace in Kazakhstan’s capital. The annual international forum’s agenda focused on the challenges of – and prospects for – the global economic recovery and development in the 21st century. In the five short years since it was founded, the Astana Economic Forum, which is the Eurasian Economic Club of Scientists, has grown into a major international and regional platform for dialogue. This year’s highly anticipated event played host to more than 5,500 delegates representing 93 countries, participating in 55 events aimed at promoting broad discussions on economic issues and solutions. These events saw over 50 memorandums of understanding and agreements on cooperation. During his remarks at the opening ceremony of the Forum, the President of Kazakhstan, Nursultan Nazarbayev, welcomed the keynote speakers, delegates and other Forum participants, before laying out his thoughts on the major challenges facing the world economy. President Nazarbayev proposed the test of a new online dialogue format for the Astana Forum along the

lines of the ‘G-GLOBAL’ project that he initiated last year. The idea quickly received broad support from the political, expert and business delegates in attendance. “In just a few months, more than 30,000 users from 140 countries have registered on G-GLOBAL’s official website to discuss issues of innovative development, nuclear and environmental safety, ethnic and religious tolerance, and other aspects of geopolitics,” President Nazarbayev said. To ensure that developing countries have a stable and secure foundation for development, President Nazarbayev proposed five fundamental principles of international order, which he claimed should guide all states in this new century. “Constructive economic development, in my opinion, can only be built upon five principles. These are the principles of the G-GLOBAL community,” he said. “The first principle is an evolution, not revolution. The second principle is justice, equality and consensus. It’s vital that in the long term the solutions to global problems – large and small – are reached by consensus,” Nazarbayev added. The third essential principle is global tolerance and trust. According to President Nazarbayev, an acceptance of differences must play a major role

Kazakhstan country profile 2012

Kazakhstan - economic overview

in the relationships between states regardless of each country’s geo-political influence and level of economic and societal development. The fourth pillar of development is global transparency and concerted efforts to combat corruption followed by the final principle, constructive multilateralism. In the Kazakh President’s opinion, the only solution to the present-day threats and challenges is to create an equitable system of geopolitical checks and balances. “I am convinced that only within a constructive multipolar system can the world solve the pressing challenges of the global economy and collaborate for sustainable development,” he concluded. Addressing the Forum, Turkish Prime Minister Recep Tayyip Erdogan said that reliability and stability are the answers to increasing the pace of development that has resulted from the European and global economic slowdown. UN Deputy Secretary General for Economic and Social Affairs, Sha Zukang, rose to deliver a message to the Forum participants on behalf of UN Secretary General Ban Ki-moon. “Today, we have mistrust between government and financial institutions, and therefore, we need a revolution of thinking in the name of justice and sustainable development. The new economic model must be based on ecological sustainability and social development with the involvement of a new social strata,” Ban Ki-moon said. Former German President Horst Koehler opined in his remarks that the unstable world economy, especially in the Euro Zone, has been due to anthropogenic factors.

A major highlight of the Forum was the ‘Astana Invest 2012’ investment forum which was held on the sidelines to showcase investment opportunities and future prospects for the Kazakh economy. ‘Astana Invest 2012’ was well attended and successful, too – financial agreements totaling $1.5 billion were signed. Other highlights of the Forum were the ‘Dialogue of Leaders: The New Financial and Economic Policy’ event and the permanent Conference of Finance Ministers of the CIS countries, which focused on countering the regional recessions as well as the development of new mechanisms of financial and economic stability. Overall, the Astana Economic Forum proved to be an important dialogue platform that brought together decision-makers, business executives and economic scientists. Their discussions contributed to the global discourse on economic challenges, while international business leaders focused on the vast investment opportunities that the fast-growing Kazakhstan economy offers not only to major corporations, but also to small and medium enterprises. By tradition, the Forum was wrapped up by an open letter to the leaders of the G20 member states, ‘The Astana Consensus’. Its key messages include recommendations on ways to develop the global multipolar governance system based on the principles of G-Global; to reform the international monetary and financial system; to support sustainable development and to address energyecology and food security issues.

Expectations about Kazakhstan’s economy: outlook by independent experts International Monetary Fund

The Caucasus and Central Asia (CCA) region recorded fairly strong economic performance in 2011, underpinned by robust commodity exports and remittance inflows. Although growth of such flows is expected to moderate in the near term – reflecting a weaker external environment – CCA economies are still expected to hold up well. Economic recovery continued at a robust pace in the CCA region in 2011, supported by high commodity exports and strong remittance inflows. The region’s oil and gas exporters – Kazakhstan, Azerbaijan, Turkmenistan and Uzbekistan – saw 6.8 percent growth on average, and the importers – Armenia, Georgia, the Kyrgyz Republic and Tajikistan – grew by 6.1 percent. Both groups saw improvements in their external current account positions. The near-term outlook remains broadly positive for CCA oil and gas exporters. Despite a weaker external

Kazakhstan country profile 2012

environment, oil and gas prices are still expected to remain high this year and next, which will help maintain high export levels and sustain activity in the nonhydrocarbon sector through continued public spending. As such, growth in the oil and gas exporters, while slowing from a fast pace, is expected to remain fairly strong. In Kazakhstan, growth is projected to moderate slightly, to 5.9 percent in 2012 and six percent in 2013. Despite weaker external conditions, growth will be supported by strong terms of trade, as well as investment in oil and mining and infrastructure. Fitch Ratings

Fitch Ratings estimates that Kazakhstan’s economy growth will make up five percent or over in 2012. According to Charles Seville, the economist and sovereign analyst covering Russia and the CIS: “We estimate this year’s

Kazakhstan - economic overview

CommonWealth of independent states: revisions to 2012 gdp growth forecasts

Change in percentage points from September 2011 WEO projections Less than 1 Between -0.5 and 0 Between 0.5 and 1 Greater than 1

Source: IMF staff estimates. Note: Includes Georgia and Mongolia

national economy growth at five percent. It may be higher than that. However, processing industries are growing less fast.” The announcement was made at the annual Fitch Ratings conference in Astana on 15 May. Standard & Poor’s Ratings

Kazakhstan has a higher debt rating at Standard & Poor’s than Russia for the first time since the Soviet Union collapsed. On 8 November 2011, S&P raised Kazakhstan’s foreign-currency debt one level to BBB+, on a par with South Africa and Thailand and two levels above Brazil. Grigoriy Marchenko, Governor of the National Bank of Kazakhstan, called the upgrade “a step in the right direction”, adding that Kazakhstan should have an even higher rating because it’s a net creditor to the world. “We have a huge creditor position,” Marchenko argued. “That’s why we believe Kazakhstan deserves a rating of at least a single A.” He pointed out that the government’s external debt is just $4.5 billion, while the national oil fund has swelled to $42.5 billion. Moreover, the central bank has reserves of $32.5 billion, he said. Kazakh crude output will almost double over the next decade and an $8 billion cap on spending from the oil fund means that the nation is saving about half of its revenue from the fuel each year. A doubling of oil production, and net foreign direct investment that will average about four percent of gross domestic product a year, will feed annual per capita GDP growth of six percent from 2011 to 2014, S&P said.

Moody’s

Current ratings on Kazakhstan are: Long Term Issuer (domestic and foreign currency) ratings of Baa2. Kazakhstan’s Baa2 government ratings reflect the country’s moderate level of economic resiliency a nd moderate financial robustness. Rating outlook

The outlook for the government’s ratings and the foreign-currency country ceilings is stable. The real economy has recovered from the impact of the global recession and an unwinding of domestic financial excesses. This process is being aided by banking-sector debt restructuring and a reversal of the terms of trade shock that occurred in 2009. Moreover, the government’s pro-active, though selective, crisis-management efforts helped to stabilize confidence and prevented deeper or more prolonged knock-on effects on the real economy. In particular, National Oil Fund reserves and conservative fiscal management provide much-needed shock absorbers. What could change the rating – up

Further strengthening of public institutions, in particular tighter banking-sector supervision and regulation, successful restructuring of the ailing banking sector, the further expansion of the foreign reserve and oil fund cushion or successful economic diversification away from the energy sector would place upward pressure on the ratings.

Kazakhstan country profile 2012

Kazakhstan - economic overview

Kazakhstan: More Going On Than You KnoW

9th Got Land? Kazakhstan is the ninth largest country by land area in the world and the largest landlocked country.

1,400 to 0 Nuclear Weapons With the fall of the Soviet Union, Kazakhstan inherited a stockpile of 1,400 nuclear weapons. Within four years President Nazarbayev reduced that number to zero.

140 & 40 Diverse Society Kazakhstan has a diverse cultural heritage. It is home to more than 140 ethnic groups and 40 religious denominations.

26.9 Million Tonnes

850,000 $12,174 A Growing Middle Class Kazakhs are earning more and spending more each year. More and more Kazakhs are buying homes and automobiles. Per capita GDP has reached about $12,000 up from about $700 in 1994. The Kazakh middle class is growing.

99.5% Literacy Rate Just about every Kazakh older than 15 can read and write. A free, high-quality education is available to all Kazakhs.

Feeding the World Kazakhstan harvested 26.9 million tonnes of grain in 2011. It is the fifth largest exporter globally.

146 Billion Foreign Direct Investment 80% of foreign direct investment in Central Asia is into Kazakhstan.

3,000 US Angus Beef Kazakhstan imported more than 3,000 head of American Black Angus and Hereford cattle from North Dakota last year. The import of cattle, including from the US, is expected to exceed 75,000 by 2015.

We are on Twitter: @KazakhEmbassy | @KazconsulNY

Kazakhstan country profile 2012

Adventure Tourism On average, 850,000 foreign visitors arrive in Kazakhstan every year.

200

American Companies The US Chamber of Commerce in Kazakhstan represents 200 companies spread across 30 industries, including GE, Chevron, Xerox and FedEx. Air Astana placed a $1.3 billion order this year with Boeing for new aircraft, contributing to American jobs.

89.9% & 75.1% Democracy on the March 89.9% of registered Kazakhs voted in the 2011 presidential election, and 75.1% turned out for the 2012 parliamentary elections.

Kazakhstan’s foreign policy: main achievements and new goals

Kazakhstan foreign policy Main achievements and new goals

Brief overview

any American and European experts believe that Kazakhstan has done a remarkable job establishing an independent foreign policy in the 20 years since it gained independence from the Soviet Union. Kazakhstan’s foreign policy is based on the understanding that it is a large country with roots in both Europe and Asia; its interests are many. Kazakhstan’s location has helped to define its foreign-policy priorities and diplomatic activity. Kazakh President Nursultan Nazarbayev believes that by enacting strong political and economic reforms, the country will be in a better position to build its relationships with other nations. Kazakhstan is an impartial nation – one that has worked hard to reform its military, political and economic policies as it advances toward a full democracy. Its foreign policy underscores its commitment to create strong, long-lasting alliances and partnerships. One of Kazakhstan’s most important decisions since independence was to gain the status of

a non-nuclear state and to pursue the policy of nonproliferation. Kazakhstan set an example - demonstrating its desire for peace, internal stability and sustainable economic and political development. Kazakhstan has good relationships with the United States, Russia and China as well as in Central Asia and in many other European and Asian countries. With Russia, Kazakhstan has long-standing historical ties and a vast shared border. Kazakhstan also shares a border with China. China’s pursuit of energy security and new markets has strengthened its ties to Kazakhstan and its economy. That will only continue. Kazakhstan also has strong alliances with its Central Asian neighbors. Globalization is gaining momentum and creating new regional alliances in every corner of the world. Many countries have realized that their national goals can be realized through regional cooperation. Since independence Kazakhstan has worked to create regional economical alliances, including with the Commonweath

Kazakhstan country profile 2012

Kazakhstan’s foreign policy: main achievements and new goals

of Independent States, Eurasian Economic Association, Central Asian Economic Association and the newly founded Shanghai Cooperation Organization. By strengthening its relationships with its neighbours, Kazakhstan has built a ‘security belt’ around its borders. And it continues to build alliances with other states, such as India, Iran, Japan, South Korea, Turkey and numerous European states. Extending its influence beyond Central Asia, Kazakhstan has worked to develop confidence-building measures throughout the region – in 2000 the idea was adopted by the Conference on Interaction and Confidence-Building Measures in Asia (CICA).

CICA demonstrated that Kazakhstan is part of a larger Asian universe; its presidency of the Organization for Security and Cooperation in Europe (OSCE) in 2010 underscores its ties to the European world. In addition, Kazakhstan has relationships with several global and regional organizations that promote peace and economic prosperity, including the Collective Security Treaty Organization (CSTO), NATO’s ‘Partnership for Peace’ program (PFP), the European Union (EU), the Shanghai Cooperation Organization (SCO), the OSCE, the Economic Cooperation Organization (ECO), the United Nations (UN), and the Organization of the Islamic Conference (OIC).

Kazakhstan-US strategic partnership

President Nazarbayev and President Obama at a bilateral meeting, March 26, 2012, Seoul

Kazakhstan is one of the most progressive nations in Central Asia and since its independence has proven to be the most reliable US partner in the region. The two countries established their ‘strategic partnership’ in 2006. Astana and Washington are time-tested partners who have worked together on issues such as non-proliferation of nuclear weapons, the fight against terrorism, energy reform and democracy. Kazakhstan and the United States have entered a new stage in their relationship. President Barack Obama’s telephone conversation with President Nursultan Nazarbayev soon after the 2008 US elections instilled confidence that, under the new administration, relations between the countries would continue to grow. The two leaders discussed further cooperation on important international issues such as non-proliferation, the fight against terrorism and the stabilization of Afghanistan.

Kazakhstan country profile 2012

Later, in April 2009, US Vice President Joseph Biden called President Nazarbayev to express his gratitude for Kazakhstan’s efforts to promote regional cooperation. He assured Nazarbayev that the US would support Kazakhstan’s OSCE Chairmanship in 2010. He also commended Kazakhstan’s contribution to nuclear non-proliferation and affirmed President Obama’s commitment to nuclear non-proliferation throughout the world. President Nazarbayev and Vice President Biden also discussed prospects for the development of Kazakhstan-US relations. They agreed to look for new ways to expand bilateral cooperation with a focus on the economy. After President Obama’s historic address in Cairo on 4 June 2009, President Nazarbayev commended Obama’s vision for the Islamic world. He stressed that Obama’s remarks demonstrated his commitment to a new beginning with the Muslim world. “In his speech in Cairo, President Obama demonstrated his willingness to build understanding and rapport with Muslim nations. I am encouraged by this constructive engagement and Kazakhstan looks to continue its efforts on strengthening political, economic, and cultural cooperation with the United States of America,” President Nazarbayev said. In 2010, Kazakhstan and the United States launched the Annual Bilateral Consultations (ABC). The first round of talks was held in Washington, DC, on 8-10 March. The two working groups, chaired by Kazakhstan’s Deputy Foreign Minister, Kairat Umarov, and US Assistant Secretary of State for South and Central Asian Affairs, Robert Blake, reviewed the state of bilateral cooperation. They covered a full range of issues: political cooperation, security – including counternarcotics and counterterrorism – Afghanistan, non-proliferation, OSCE and issues with a human

Kazakhstan’s foreign policy: main achievements and new goals

dimension, including democratic reform, rule of law, human rights and NGOs. They also discussed economic development issues, including energy cooperation, trade and investment, health and education. The Working Groups agreed to continue their work in accordance with the Action Plan adopted at the first round of the Kazakhstan–US Annual Bilateral Consultations. On 24-25 March 2011, Assistant Secretary Blake led an interagency delegation of representatives from the departments of State, Energy and Defense, as well as the National Security Council, to Astana to hold the second round of the Kazakhstan-US ABC. The discussions covered a range of bilateral initiatives, including cooperation in Afghanistan, nuclear non-proliferation, energy, trade and investment, science and technology, and the advancement of democratic and human-rights reforms. Speaking afterward, Blake said: “These discussions showed that the United States’ relationship with Kazakhstan is perhaps the deepest and broadest in Central Asia, and it shows the progress that we’ve made in our relations over the last 20 years.” On 30 January and 1 February 2012, Kazakhstan’s Foreign Minister Yerzhan Kazykhanov paid his first official visit to the US. The Minister held talks with Secretary of State Hillary Clinton to enhance the strategic partnership between the two countries. In her welcoming remarks at the Department of State, Secretary Clinton described Kazakhstan as “a country with whom we have very friendly relations and work together on a whole range of issues, both bilaterally and regionally and globally.” She also underscored Kazakhstan’s proactive role on the international stage: “Kazakhstan has served in recent years as the chair of the OSCE, the chair of OIC, and has been very helpful in our efforts to stabilize Afghanistan.” The major outcome of the talks was that they agreed that the Kazakhstan-US ABCs will become the Kazakhstan-US Strategic Partnership Commission. The two officials also agreed to exchange, at the earliest convenience, diplomatic notes with regard to the agreements on issuing five-year visas and the unification of visa fees. They also renewed their commitment to further develop their partnership through strategic dialogues on Afghanistan, democratization, security and non-proliferation cooperation, energy, and trade and investment. The Foreign Minister and Secretary also discussed how to expand educational ties, particularly scientific and technical cooperation between universities, research institutes and in the private sector. Bilateral cooperation issues were also on the agenda during Minister Kazykhanov’s meetings with other highranking US officials: Deputy Secretary of Energy, Daniel Poneman; Deputy Secretary of Defense, Ashton Carter; Richard Lugar, member of the Senate Committee on Foreign Relations and Ileana Ros-Lehtinen, Chairwoman of the House Committee on Foreign Affairs.

The Foreign Minister also had a luncheon discussion with the US-Kazakhstan Business Association, attended by the executives of major US companies with a presence in Kazakhstan: IBM, Chevron, ConocoPhillips, Sikorsky Aircraft, ExxonMobil, Shell, FedEx, Boeing, PFC Energy, Asia-Africa Projects Group, AGCO Corporation and CRDF Global. They discussed the investment climate and increased opportunities for business-to-business partnerships. On 9-10 April in Washington, DC the inaugural meeting of the Kazakh-American Strategic Partnership Commission/Dialogue (SPC/D) was held. The first SPC/D meeting was co-chaired by Deputy Foreign Minister Kairat Umarov and Assistant Secretary of State Robert Blake. The Kazakh delegation also included, among others, Vice-

Yerzhan Kazykhanov and Hillary Clinton renewed their commitment to further develop their partnership through strategic dialogues on Afghanistan, democratization, security, energy, trade and investment Minister of Industry and Trade Kanysh Tuleushin. They were joined by senior officials from the Foreign Ministry, the Prosecutor General’s Office, Ministries of Economic Development and Trade, and of Defense, KAZNEX Invest National Export and Investment Agency, KazAgroFinance, Damu Entrepreneurship Development Fund, National Agency for Technological Development, Parasat National Science and Technological Holding, Nazarbayev University and Kazakhstan’s business community who met their American counterparts during the two days of meetings. The United States expressed appreciation for Kazakhstan’s support for the US coalition in Afghanistan, including its contribution to the development of the Northern Distribution Network as well as a scholarship program to train Afghan students in Kazakh universities. Kazakhstan spoke in support of Afghanistan’s integration into regional economic relations, and closer cooperation with its Central Asian neighbors. On 26 March 2012 Presidents Nursultan Nazarbayev and Barack Obama had a bilateral meeting during the Nuclear Security Summit in Seoul. This pointed to a further strengthening of the strategic partnership between Kazakhstan and the United States.

Kazakhstan country profile 2012

Kazakhstan’s foreign policy: main achievements and new goals

2010 President Nazarbayev’s visit to the US

On 10-13 April 2010 President Nazarbayev visited the US to participate in the Nuclear Security Summit and to meet with President Obama and representatives of his administration. The visit opened a new stage in the relationship between Kazakhstan and the US. Leaders of both countries had a comprehensive exchange on global security, including non-proliferation, the unstable situation in Kyrgyzstan, stabilization in Afghanistan, democratic development, economic ties and investment opportunities, energy partnership and Kazakhstan’s chairmanship of the OSCE. The leaders also reiterated their commitment to strengthening bilateral cooperation. According to the Special Assistant to the President/ National Security Council Senior Director for Russian and Eurasian Affairs, Michael McFaul, President Obama praised President Nazarbayev as “one of the model leaders in the world. We could not have this summit without his presence.” President Nazarbayev also met with US Secretary of Energy Steven Chu, heads of several American companies and leaders of American Jewish organizations. In addition, he received the EastWest Institute Peace and Preventive Diplomacy Award for championing diplomacy and promoting interfaith dialogue across the globe. Beyond the agreement struck between Kazakhstan and the US on Cooperation in Science and Technology, agreements were made between Kazakhstan’s National

Kazakhstan country profile 2012

Railway Company and General Electric on Transportation for the Commonwealth of Independent States Shunter Locomotive Program and between Air Astana and the Pilot Training College in Florida to train an additional 24 pilots by the end of 2010. After their meeting the two Presidents issued a joint statement on some of the most important topics they discussed. Among them are the following major priorities. Nuclear Security and Non-Proliferation – The Presidents underlined the 15-year track record of close cooperation between Kazakhstan and the United States and success in reducing nuclear threats in Kazakhstan and around the world. They share the vision of a world without nuclear weapons. The US appreciates the leadership of President Nazarbayev and the contribution of Kazakhstan to nuclear disarmament and non-proliferation. The leaders hailed the successful implementation of the Cooperative Threat Reduction program and other efforts, such as the decommissioning of the BN-350 nuclear reactor at Aktau and the construction of a central reference laboratory in Almaty. Progress is also being made at the research reactor in Alatau to eliminate the highly enriched uranium stored there, as called for in the Nuclear Security Summit Communique. President Obama thanked President Nazarbayev for offering to host an international nuclear fuel bank and said he supports Kazakhstan’s efforts to become a member of the International Atomic Energy Agency (IAEA) Board of Governors. Kazakhstan is eager to speed up the mutually agreed work at the former nuclear test site in support of President Obama’s speech in Prague, which called for accelerated action to secure vulnerable nuclear materials. Afghanistan – The Presidents highlighted their shared understanding of the threats and challenges in Afghanistan. President Obama expressed appreciation for Kazakhstan’s humanitarian, economic and educational support of the Afghan people, including Kazakhstan’s decision to contribute $50 million to a new program to educate Afghans at Kazakh universities. The Presidents discussed ways to enhance Kazakhstan’s critical role in the Northern Distribution Network and welcomed a new bilateral agreement enabling US cargo flights across the country. Investment and Trade – Recognizing Kazakhstan’s achievements in social and economic development, the United States will continue to support the development of a diversified economy there through the Program for Economic Development and the Kazakhstan-US Public Private Economic Partnership Initiative. The Presidents positively assessed the current state of bilateral economic relations. They agreed to redouble efforts to complete Kazakhstan’s WTO accession and support the work of the Central Asia Trade and Investment Framework Agreement.

Kazakhstan’s foreign policy: main achievements and new goals

The Presidents of Kazakhstan and the United States will encourage large-scale bilateral commercial cooperation in agriculture that can make a significant contribution to US and UN initiatives on global food security The Presidents reconfirmed the importance of the long-term energy partnership between the two countries. The United States welcomed Kazakhstan’s emergence as the top global uranium producer as an important development for diversification of global energy supply. The United States and Kazakhstan expressed their intention to enhance cooperation on nuclear energy and the development of alternative-energy resources. The leaders hailed the signing of the bilateral Science and Technology Agreement, which will increase scientific cooperation and exchanges. The parties will encourage large-scale bilateral commercial cooperation in agriculture that can make a significant contribution to US and UN initiatives on global food security. US-Kazakhstan Bilateral Consultation – The Presidents welcomed the first session of annual bilateral consultations on 8-9 March 2010 in Washington, DC. The purpose of the new forum is to advance all the dimensions of the bilateral relationship, including security and non-proliferation cooperation, universal values and our economic and energy partnership. Democracy – The United States encouraged Kazakhstan to implement its forward-looking 2009-12 National Human Rights Action Plan and 2010-20 Legal Concept. The United States will continue to support Kazakhstan’s efforts to liberalize its media and democratize its political system, including through legal reform. Enhancing Contacts between Our Societies – President Obama and President Nazarbayev underscored

the importance of strengthening relationships between American and Kazakh civil societies, including NGOs, religious groups and educational institutions. Nazarbayev welcomed President Obama’s Cairo Speech and outreach to the Muslim world. The Presidents emphasized the important role of religious freedom and tolerance in developing stable societies and declared their support of Kazakhstan’s relevant efforts as 2010 OSCE Chairman and 2011 Chairman of the Council of Foreign Ministers of the Organization of the Islamic Conference. Organization for Security and Cooperation in Europe (OSCE) – President Obama highlighted the historic significance of Kazakhstan’s OSCE chairmanship – the first time a former republic of the Soviet Union has chaired the OSCE. The Presidents discussed Kazakhstan’s OSCE chairmanship and its proposal to host an OSCE summit. They noted positively Kazakhstan’s initiative to promote greater OSCE engagement in Afghanistan, to hold a Review Conference in Kazakhstan on Implementation of Commitments in the Human Dimension, and to advance the Corfu process. The United States and Kazakhstan agreed to work on developing a substantive agenda for an OSCE summit. President Nursultan Nazarbayev invited President Barack Obama to visit Kazakhstan at his convenience. The invitation was received with appreciation. In November 2010, President Nazarbayev met with President Obama during the NATO summit in Lisbon to discuss a number of international-security issues.

Kazakhstan and non-proliferation Non-proliferation has been the cornerstone of relations between two countries that have traveled a long way from newly born cooperation to mature strategic partnership. Kazakhstan’s adherence to building a peaceful world resulted in open and constructive Kazakh-US cooperation in nuclear non-proliferation based on the Nunn-Lugar initiative, the Cooperative Threat Reduction Program. 2011 marks the 20th anniversary of the closure of the Semipalatinsk nuclear testing ground. In August 1991, President Nazarbayev signed a historic decree to close the

test site. Kazakhstan dismantled its infrastructure and signed agreements concerning nuclear armaments. Now it is implementing proposals made by Nazarbayev during the Disarmament Conference to include Kazakhstan’s seismic stations in the International Monitoring System. On 29 December 1991, the leaders of Belarus, Kazakhstan, Russia and Ukraine signed the Almaty Declaration in which they agreed on nuclear control mechanisms for the former Soviet Union; they affirmed their international obligations to strategic arms reduction.

Kazakhstan country profile 2012

Kazakhstan’s foreign policy: main achievements and new goals

On 23 May 1992 in Lisbon, the representatives of Kazakhstan, Belarus, Ukraine, Russia and the US signed a five-party Protocol to the Strategic Arms Reduction Treaty (START). At the same time Belarus, Ukraine and Kazakhstan – as the states possessing nuclear weapons – committed to the Non-Proliferation Treaty. In accordance with the Lisbon Protocol, Kazakhstan, Belarus and Ukraine, as successor states to the USSR in terms of the Strategic Arms Reduction Treaty, have agreed to participate, along with Russia and the US, in the joint Commission on observance and inspection. The nations also agreed to the limits and restrictions specified by the Treaty. Kazakhstan ratified the Treaty and the Lisbon Protocol on 2 July 1992. In 1994, the Strategic Arms Reduction Treaty paved the way to disarmament and the elimination of more than 9,000 nuclear warheads. Kazakhstan was the first of the Lisbon Protocol signatories to implement provisions related to the removal of nuclear warheads. On 21 April 1996, Kazakhstan

In 1994, Kazakhstan transferred more than a half-ton of weapons-grade uranium to the US. In 1995, it removed its last nuclear warhead and completed the sealing of 181 nuclear test tunnels in May 2000 completed the removal of 1,416 nuclear warheads. On 30 May 1995, the last nuclear test warhead – located in a gallery on the Semipalatinsk test site – was destroyed. Kazakhstan had gotten rid of its nuclear inheritance. During the Soviet era, Kazakhstan was the site of the world’s fourth largest nuclear arsenal, with more than 1,000 deadly weapons. Fortunately, President Nazarbayev ordered the dismantling and removal of the country’s entire nuclear weapons system. In 1994, Kazakhstan transferred more than a half-ton of weapons-grade uranium to the US. In 1995, it removed its last nuclear warhead and, with US assistance, completed the sealing of 181 nuclear test tunnels in May 2000. Kazakhstan signed the Strategic Arms Reduction Treaty (1992), the Nuclear Non-Proliferation Treaty (1993), the Chemical Weapons Convention and the Comprehensive Test Ban Treaty (2001). On 21 March 2009, the Treaty on a Nuclear-WeaponFree Zone in Central Asia (signed on 8 September 2006

Kazakhstan country profile 2012

in Semey, Kazakhstan) took effect. Kazakhstan believes the Treaty will contribute to global non-proliferation and promote regional and international security. The new de-nuclearized zone in Central Asia has a number of unique features. First, it includes Kazakhstan, which in the past possessed the fourth largest nuclear arsenal. Second, the denuclearized zone is, for the first time, in the northern hemisphere. Third, the Treaty brings together all five Central Asian countries. And finally, the zone was created in a region that borders on two nuclear states. The Protocol on negative security assurances is an integral part of the Treaty. Under the Protocol, the nuclear weapon states pledge not to use or threaten to use nuclear weapons against any other member states. Kazakhstan’s contribution to nuclear disarmament

On 18 June 2009, more than 25,000 Kazakhs, local dignitaries and the world media gathered in Semey city to celebrate the 20th anniversary of Kazakhstan’s decision to end nuclear tests at the Semipalatinsk test site. President Nazarbayev appealed to the international community to support the nation’s efforts to promote peace. In his speech, he credited the Kazakh people for helping to end nuclear testing: “Starting from the first days of the country’s independence, Kazakhstan did not leave its citizens alone with their problems. The work on social rehabilitation of the population and the territories that suffered the harm of the nuclear tests is being constantly carried out. For these purposes the state utilized nearly KZT 34 billion ($227 million).” In December 2009, the UN General Assembly unanimously accepted a resolution by Kazakhstan proclaiming 29 August – the day in 1991 when President Nazarbayev signed a decree on the closure of the Semipalatinsk test site – as the ‘International Day against Nuclear Tests’. Recognizing the negative impact of nuclear testing on human life and the environment, as well as the importance of achieving a nuclear-weaponfree world, the Resolution was designed to commemorate an important date in Kazakhstan’s history. The international community has fully appreciated Kazakhstan’s contribution to this nuclear disarmament program. Paying a visit to Kazakhstan in April 2010, UN Secretary General Ban Ki-moon said: “I highly commend the extraordinary leadership of President Nazarbayev of Kazakhstan, who courageously closed this nuclear test site and initiated the nuclear-weapon-free zone in Central Asia. That’s a big milestone.” During the Nuclear Security Summit in Washington, DC in April 2010, President Obama praised Nazarbayev “as really one of the model leaders in the world on non-proliferation and nuclear-safety issues.” Obama and other leaders also heralded President Nazarbayev’s proposal to establish an international nuclear fuel bank in

Kazakhstan’s foreign policy: main achievements and new goals

Kazakhstan. President Nazarbayev credited President Obama’s anti-nuclear initiatives and achievements including the Global Nuclear Security Summit, signing the new START treaty with Russia and the adoption of the new US nuclear-posture review. On the initiative of the President of Kazakhstan, a conference of the Global Initiative to Combat Nuclear Terrorism to prevent financing of terrorism, and the inaugural meeting of the Group for implementation and evaluation, were held in Astana in September 2010. In November 2010, Kazakhstan joined with the US and other nations to provide secure long-term storage for more than 10 metric tons of highly enriched uranium and three metric tons of weapons-grade plutonium in the country – enough material to make 775 nuclear weapons. Under the operation, 12 spent fuel shipments were safely and successfully secured, the largest and most complex nuclear-transport campaign ever. The operation is an example of the international cooperation envisioned by Presidents Nazarbayev and Obama at the April 2010 Nuclear Security Summit in Washington, DC. In July 2011, Kazakhstan applied to host the IAEA international bank of LEU nuclear material. The bank would assure supply of nuclear fuel for nuclear power plants in countries developing peaceful nuclear energy. In cooperation with the IAEA, Kazakhstan has begun drafting the host country agreement. The Astana Declaration

The International Forum for a Nuclear-Weapons-Free World, held in Astana and Semey on 12-13 October 2011, was convened to unite and coordinate the efforts of policymakers and the general public towards the elimination of the nuclear threat. More than 400 delegates from all over the world attended the forum, including the heads and representatives of international organizations such as the UN, the IAEA, the OSCE and the Comprehensive Nuclear-Test-Ban Treaty Organization (CTBTO), as well as the world’s prominent experts and scientists. The US delegation was led by Deputy Secretary of Energy Daniel Poneman, and included Rose Gottemoeller, Assistant Secretary of State for the Bureau of Arms Control, Verification and Compliance; Andrew Weber, Assistant Secretary of Defense for Nuclear, Chemical, and Biological Defense Programs; Congressman Eni Faleomavaega; Governor of Kansas Sam Brownback; heads of NGOs Paul Walker, William Potter and Jonathan Granoff; former US Ambassador to Kazakhstan William Courtney and others. After three panel sessions discussing ways of achieving a nuclear-weapon-free world, expediting the ratification of the Comprehensive Nuclear Test-Ban Treaty, and the creation of nuclear-weapon-free zones, the first day of the forum ended with the signing of what will become known as The Astana Declaration. The Declaration states that “the time has come for all states possessing nuclear

weapons to take steps towards total elimination of nuclear weapons as soon as possible.” Ongoing work on nuclear security

A unique project of downblending 33 kg of highly enriched uranium (HEU) from the Institute of Nuclear Physics to transform it into low-enriched uranium (LEU) was completed at the Kazakhstan nuclear fuel plant in Ust-Kamenogorsk in December 2011. Currently under way is a project to convert the WWR-K research reactor at the Institute of Nuclear Physics to low-enriched fuel: the new reactor core calculations have been made and a pilot sample of fuel has been made in Russia that is passing a test in accordance with safety regulatory requirements. Upon the results of these tests, a decision will be made on loading the reactor with the new LEU fuel. This work is scheduled to be completed in 2014 and is supported by the US Department of Energy. The Republic of Kazakhstan officially joined the G8 Global Partnership against the spread of weapons and materials of mass destruction on 24 January 2012. Work on nuclear security at the former Semipalatinsk test site continues in cooperation with the US and Russia. The main part of the project – eliminating the infrastructure of the testing site – has been completed. The building of physical barriers around the site and work for the physical protection of sensitive areas of it are nearing completion. In March 2012, President of Kazakhstan Nursultan Nazarbayev, then President of Russia Dmitry Medvedev and President of the United States Barack Obama had a trilateral meeting on the sidelines of the Second Nuclear Security Summit in Seoul. Following the results of the meeting Nazarbayev, Medvedev and Obama adopted a joint statement regarding trilateral cooperation at the former Semipalatinsk test site. The statement reads that the Presidents of the Republic of Kazakhstan, the Russian Federation and the United States of America are committed to struggling against the threat of nuclear proliferation and nuclear terrorism. Nursultan Nazarbayev noted that the Semipalatinsk Nuclear Polygon was one of the largest nuclear test sites in the world. “According to my decree 20 years ago we shut down the Semipalatinsk test site. Over the last several years Kazakhstan, Russia and the US have been engaged in joint efforts on the elimination of the consequences of nuclear-weapons tests. We are grateful to our partners for this assistance,” President Nazarbayev stated. In his turn, the then President of Russia, Dmitry Medvedev, thanked Nursultan Nazarbayev for his proactive stance and for creating the necessary conditions for this work. President Barack Obama emphasized Nazarbayev’s outstanding leadership and the people of Kazakhstan in non-proliferation of nuclear weapons.

Kazakhstan country profile 2012

Kazakhstan’s foreign policy: main achievements and new goals

Kazakhstan’s OSCE chairmanship in 2010 Kazakhstan began its chairmanship of the Organization for Security and Cooperation in Europe (OSCE) on 1 January 2010. It was a historic achievement given that Kazakhstan was the first former Soviet Union Republic to lead the OSCE. The primary focus of the OSCE, with its 56 member states, is to promote economic and security cooperation. Kazakhstan took its responsibility very seriously, working with its fellow member states to build on the progress achieved by former chairs and to develop viable solutions to pressing challenges. Kazakhstan set out on a challenging and exciting journey as chairman of the OSCE. The country was committed to enhancing the Organization’s credibility and efficiency. The first Political Vision and Principles were formulated by President Nazarbayev in his video address to the OSCE Permanent Council on the occasion of Kazakhstan’s assumption of its chairmanship on 14 January 2010.

“Our country will embark on its chairmanship during one of the most complicated periods in modern history. Because of the global financial and economic crisis, tectonic shifts are taking place in the global order.”

The motto of Kazakhstan’s chairmanship was: four Ts. The first T refers to trust. The second, ‘tradition’, refers to Kazakhstan’s commitment to the fundamental principles and values of the OSCE. The third, ‘transparency’, conveys maximum openness and transparency in international relations, free from ‘double standards’ and ‘dividing lines’, as well as a focus on constructive cooperation in order to address challenges and threats to security. Finally, the fourth T, ‘tolerance’, reflects global trends towards a strengthening of intercultural and intercivilizational dialogue, which is gaining major importance in today’s world. Kazakhstan considered expanding and strengthening the consensus base on fundamental issues of development to be one of the key tasks for the OSCE. Later, on 28 January, President Nazarbayev articulated the philosophy of Kazakhstan’s chairmanship. In the article OSCE and Global Politics, published that day in Izvestia, he outlined Kazakhstan’s vision and explained how the country planned to lead the Organization through the challenges it faced. “We, as the chair of the OSCE, recognize the unrelenting challenges facing the world and are keenly aware that one year limits our ability to address every aspect of OSCE activities. While we are not in favor of fostering any kind of revolutions in the institution, we are not going to be deterred from pursuing our aggressive agenda either. As the head of a sovereign state, I view our chairmanship not only as a national project of strategic value but as evidence of the country’s increased international prestige. And I relish the opportunity to inject renewed inspiration into the OSCE and give it a new impetus,” he wrote. US reaction

“Kazakhstan is assuming the extremely important mission of the chairmanship of the Organization for Security and Cooperation in Europe with a sense of great responsibility. Our country will embark on its chairmanship during one of the most complicated periods in modern history. Because of the global financial and economic crisis, tectonic shifts are taking place in the global order, and this process is still far from completion,” Nazarbayev said. “The erosion of the regime of nonproliferation of weapons of mass destruction, terrorism, humanitarian and ecological disasters, famine, poverty, epidemics, depletion of energy resources, conflicts based on inter-ethnic and inter-religious differences – such is a far from complete list of the challenges faced by modern civilization that call for maximum efforts by multilateral institutions of high standing like the OSCE.”

Kazakhstan country profile 2012

The US was supportive of Kazakhstan’s role in the OSCE. On 20 January 2010, in his remarks on The Occasion of the Commencement of Kazakhstan’s OSCE Chairmanship, the Assistant Secretary of State for South and Central Asian Affairs, Robert Blake, said: “As Kazakhstan begins to serve as the chairman-in-office of the Organization for Security and Cooperation in Europe this year, it is charting a course for a bright and promising future. It is a future in which the United States and Kazakhstan together seek peace, security, economic development and prosperity. “We seek democratic values and human rights that unite free nations in trust and in respect. We seek a region in which relations are good between neighbors, between Russia and China and Afghanistan and all others in the region and of course with the United States.

Kazakhstan’s foreign policy: main achievements and new goals

“Kazakhstan has been a leader in international security since its earliest days of independence. After the end of the Cold War, the world applauded as Kazakhstan renounced its nuclear weapons, closed the nuclear test site at Semipalatinsk, and freely transferred over half a ton of weapons-grade uranium to secure sites outside the country under Project Sapphire. This past December, we marked the sixteenth anniversary of the landmark Cooperative Threat Reduction Program in Kazakhstan and we continue to work in partnership with Kazakhstan to advance our common non-proliferation goals. In April President Obama will welcome President Nazarbayev and other world leaders to the Global Nuclear Security Summit he will host. “Since its independence, Kazakhstan has also set an example in the region with economic reforms that have attracted investment and created jobs. The Government of Kazakhstan is also making wise choices to develop multiple energy-export routes and to diversify its economy to ensure that its vast oil wealth can become a source for social mobility, not social stagnation. “As Kazakhstan’s economy continues to recover from the global economic downturn, it should again be an engine for growth within Central Asia. Afghanistan, Kyrgyzstan and Tajikistan would benefit immensely from Kazakhstani investment and energy supplies to stimulate growth and create jobs. “And Afghanistan needs the full partnership of Kazakhstan to overcome the destitution that extremists, warlords, and civil war have compounded over several decades. Kazakhstan is providing vital logistical support to the International Security Assistance Force through the Northern Distribution Network. We welcome Astana’s decision to invest in Afghanistan’s next generation of leaders by generously allocating $50 million to fund scholarships for a thousand Afghan students to study in Kazakhstan. “Kazakhstan’s OSCE chairmanship is highly symbolic. The OSCE had long prided itself for stretching from Vancouver to Vladivostok. Now, for the very first time, a major international organization is headed by a new country east of Vienna. It is a recognition that the OSCE draws its strength not only from Europe and the United States, but also from Central Asia, the Caucasus, and the Balkans. “The challenges facing the OSCE and the international community are real but our strength comes from facing those challenges collectively and with a common purpose. The United States looks forward to working with Kazakhstan this year to meet these challenges and achieve the goal of modernizing and strengthening the OSCE, for the benefit of all participating states. “Kazakhstan has successfully navigated the early stages of statehood. It has achieved a position of leadership on international security and economic development. And now the country, as the OSCE chairman-in-office, has an unprecedented opportunity to lead Central Asia towards a

future of democracy and to advance its own reform agenda to unleash the creative energy of its people. With continued reform, Kazakhstan can become the nexus of Eurasia in the 21st century, the point where all roads cross. For thousands of years, along the ancient Silk Road, the communities of Central Asia facilitated the global exchange of ideas, and trade, and culture. In the process, they made historic contributions to our collective human heritage. “Today, as Kazakhstan assumes the OSCE mantle, it is poised and ready to break a fresh path for a new Silk Road, a great crossroads of reform linking the provinces of northern Russia to the ports of South Asia, the republics of Western Europe to the democracies of East Asia. “A strong and prosperous and democratic Kazakhstan can energize the global transmission of learning, trade and freedom across the steppes of Central Asia. Kazakhstan has a glorious past and can seize a hopeful future. The United States will continue to be Kazakhstan’s steadfast partner.” Since he made his comments, brainstorming over how to re-energize the OSCE had begun. US Vice President Joseph Biden, in his op-ed Advancing Europe’s Security, published in The New York Times on 6 May 2010, defined the OSCE as a global security player along the lines of NATO. Biden wrote: “The Russia-Georgia crisis in August 2008 reminded all of us that we cannot take security in Europe for granted or become complacent. To prevent such events from recurring, we support the creation of an OSCE Crisis Prevention Mechanism that, in situations of tensions between OSCE states, would seek to prevent crises before they start. And in the case that they do, it would empower the Organization to offer rapid humanitarian relief, help negotiate a ceasefire, and provide impartial monitoring. We also believe that the OSCE should facilitate consultations in the case of serious energy or environmental disruption and dispatch special representatives to investigate reports of egregious human-rights violations.” Human-rights commitments

The OSCE chairperson-in-office, Kazakhstan’s State Secretary and Foreign Minister, Kanat Saudabayev, said that based on the results of preliminary consultations, Astana could be the location of the next OSCE summit. OSCE-participating states are expected to discuss this proposal in the near future. “Today’s meeting is a possibility to enter a new level of our dialogue and to raise ourselves to a higher stage in ensuring united and indivisible security,” Saudabayev told participants in the meeting. President Nazarbayev also announced that Kazakhstan would give $10 million in emergency aid to Kyrgyzstan, including fuel and house-building materials. The president of the OSCE Parliamentary Assembly, Petros Efthymiou,

Kazakhstan country profile 2012

Kazakhstan’s foreign policy: main achievements and new goals

stressed the important role that OSCE parliamentarians can play in crisis situations such as that in Kyrgyzstan. “The Corfu Process was an excellent start to bringing relevance back to the OSCE through dialogue. It is very important that focus has rightly moved toward strengthening the Organization’s capacity for early reaction to evolving crisis situations,” he said. The Corfu Process is an OSCE-anchored dialogue on the future of European security. It was launched at the OSCE’s first informal ministerial meeting, which was held on the Greek island of Corfu. OSCE Secretary General Marc Perrin de Brichambaut said the Almaty meeting and the proposed summit were opportunities to renew the participating states’ commitment to the OSCE, to address problems dividing them, including protracted conflicts and arms control, and to act on common challenges, such as transnational threats, the situation in Afghanistan and Kyrgyzstan. “The participating states, under the guidance of Kazakhstan, have worked hard to identify problems and gaps of understanding. Steps have been taken to restore a sense of trust. The time has come to move to concrete action and step up the pace,” President Nazarbayev said. Some 50 ministers and deputy ministers participated in the meeting. After almost a year-long debate, they reached a consensus and agreed to hold an OSCE summit in Astana by the end of 2010. “This is the success of our Organization, this is the success of our chairmanship,” said Kanat Saudabayev. President Nazarbayev welcomed the news: “The decision adopted is a sign of the high level of respect on the part of the international community for the successes achieved by the people of Kazakhstan during the years of independence,” he said on 5 August. Prior to the OSCE summit, meetings were held in Warsaw, Vienna and Astana to prepare the agenda. The most important element of the process was The Parallel OSCE Civil Society Conference that brought together hundreds of OSCE representatives to come up with ways to promote good governance, human rights and democracy. The Forum was held 28-29 November 2010. The goal was to reaffirm respect for human rights and fundamental freedoms, democracy and the rule of law. The final Outcome Document contained more than 100 recommendations. Despite noting several important achievements, such as the work done by the OSCE Representative on Freedom of the Media, NGO delegates pointed to the “shrinking space wherein civil society can operate, an obvious erosion of human rights, and the inability of participating states to effectively resolve protracted conflicts” as proof that the OSCE needs to reaffirm its fundamental values and principles. Representatives saw the Astana summit as a unique opportunity to reinvigorate the Organization, with civil society playing an important role in shaping the outcome.

Kazakhstan country profile 2012

They provided the following recommendations as part of their resolve to protect and promote human rights and fundamental freedoms: ■■ Strengthening implementation of the human dimension as a core principle of comprehensive security; ■■ Strengthening the OSCE’s operational functions, including its relations with civil society; ■■ Strengthening the OSCE’s effectiveness in responding to political and humanitarian crises; ■■ Addressing human-rights violations in the post-Soviet era, including in Central Asia. More specifically, they recommended creating a mechanism for NGOs to participate in sessions of the OSCE Permanent Council and the Human Dimension Committee. They urged the creation of an official review process to evaluate candidates for OSCE chair based on their record implementing human-dimension commitments. Along similar lines, representatives promised to work toward strengthening engagement and oversight of OSCE field operations and institutions. Delegates also called on the OSCE to endorse the Extractive Industries Transparency Initiative (EITI) – a revenue transparency standard in the oil, gas and mining sectors that provides for regular public disclosure of payments by extractive industries to governments. Furthermore, civil-society representatives highlighted their concern for the “growing tendency of using the legitimate goal of fighting terrorism as a pretext for laws that seek to curb legitimate speech.” They strongly advocated that such practices be brought to an immediate end. They called upon participating states to do more to protect journalists and civic and political activists from physical attacks, harassment and intimidation. With regard to intolerance, the representatives urged that OSCE commitments to end discrimination be upheld by all member states. Civil-society representatives noted their disappointment in Kyrgyzstan for failing to accept the OSCE Police Advisory Group in a timely manner, though they did welcome the launch of the Community Security Initiative. Additional recommendations focused on the need for the OSCE to strengthen cooperation with other international institutions, most notably the Council of Europe and the Venice Commission. Representatives also called on OCSE members to maintain, if not increase, their financial contributions to the OSCE. Astana summit

The first OSCE summit in 11 years concluded with Kazakhstan’s President Nazarbayev welcoming the work of heads of state from the 56 OSCE participating states, saying their adoption of the

Kazakhstan’s foreign policy: main achievements and new goals

Astana Commemorative Declaration affirmed the Organization’s comprehensive approach to security based on trust and transparency. The United States was represented by Secretary of State Hillary Rodham Clinton. “We have reconfirmed our support to the comprehensive approach to security based on trust and transparency in the politico-military field, on rational economic and environmental policy and on the full-fledged observation of human rights, basic freedoms and the rule of law,” President Nazarbayev said. “We intend to raise the level and quality of security and understanding between our states and peoples.” Nazarbayev described the two-day summit as “a historic event for the entire OSCE community” that had been characterized by “the spirit of Astana”.

“Kazakhstan and the US are making progress together. The bonds we are forging between our governments and our peoples are making both of our countries – and, indeed, the region and the world – more secure and prosperous” While in Astana, Clinton set up a town hall meeting at the Eurasian University in Astana to meet Kazakhstan’s human-rights advocates and female NGOs and discuss issues of democracy building, freedom of speech, women’s rights and other humanrights issues. On 1 December, she met President Nazarbayev and Foreign Minister Saudabayev. After the meetings, she said: “The United States is committed to the OSCE, and we and our partners are working to empower it to take an even more effective role, including the encouragement of more transparency and cooperation between and among militaries, helping resolve long-standing conflicts, and standing up against attacks on civil society and journalists. Our discussions here in Astana have been constructive and substantive.” She added: “Last night, I met with many of the participants who took part in the independent conference of non-governmental organizations that ran parallel with the summit. I was impressed by their effort and energy on crucial challenges, including protecting fundamental freedoms. They know what we all know, that a thriving civil society is a vital building block of democracy, and that

disparate, diverse voices must be heard and supported. In the discussion that I had with both the President and the foreign minister, I thanked Kazakhstan for your support of the international mission in Afghanistan, and for all you are doing to help the Afghan people, particularly the very kind invitation for 1,000 students to continue their education here, in Kazakhstan. This will enable these young people to contribute to Afghanistan’s development. “I also thanked Kazakhstan for the recently concluded air-transit agreement that will help ensure the delivery of critical resources to Afghanistan, and I welcomed Kazakhstan as the newest member of the International Security Assistance Force, which now includes 49 countries. “We discussed our shared interest in curbing nuclear proliferation, and safeguarding vulnerable nuclear material. Kazakhstan has long been a leader on this issue, and the United States deeply values our partnership. Along with the United Kingdom, our nations recently secured more than 10 metric tons of highly enriched uranium, and three metric tons of weapons-grade plutonium here in Kazakhstan. That is enough material to have made 775 nuclear weapons. And now we are confident it will never fall into the wrong hands. This is a milestone of our cooperation, and a major step forward in meeting the goals set at this year’s Nuclear Security Summit of securing all nuclear material within four years. Achievements as chair of OSCE

“I also shared with the minister and the President the discussions that I have had with civil-society leaders. I expressed our continued interest in Kazakhstan’s national human-rights action plan, and reforms to electoral, political and libel laws. I assured him that America’s commitment to working with Kazakhstan and the other nations of Central Asia to advance democracy and human rights will not end when the summit is over. “On all of these and other fronts, Kazakhstan and the United States are making progress together. The bonds we are forging between our governments and our peoples are making both of our countries – and, indeed, the region and the world – more secure and prosperous. And surrounded by the energy and optimism that one feels in this new dynamic city, I look forward with confidence to a positive future for Kazakhstan and its people.” The OSCE Summit was a historic event for the Organization, its membership and Kazakhstan. Amid all the assessments of Kazakhstan’s chairmanship, the best was presented by the Center for Strategic and International Studies in its report Kazakhstan’s OSCE Chairmanship 2010. The report provided an end-of-year assessment of the 2010 Kazakh chairmanship of the OSCE and focused on the events of the last few months of 2010, especially the summit in Astana and the preceding review conferences.

Kazakhstan country profile 2012

Kazakhstanâ&#x20AC;&#x2122;s foreign policy: main achievements and new goals

The report concluded that Kazakhstan provided capable and energetic leadership for the organization at a difficult time. A major achievement of the Kazakh chair was to showcase the OSCE to Central Asia and emphasize its Eurasian dimension â&#x20AC;&#x201C; highlighting security problems related to Afghanistan, potential failed states, economic and environmental problems and human-rights violations. The crisis in Kyrgyzstan helped focus OSCE member states on the region. In addition, Kazakhstan provided bilateral assistance to Kyrgyzstan during and after the crisis; other states also helped. The report says that the Astana summit was the major achievement of Kazakhstanâ&#x20AC;&#x2122;s OSCE chairmanship. The summit concluded with a commemorative declaration outlining the road ahead for the organization (for more detailed information on the report visit: http://csis.org/publication/ kazakhstans-osce-chairmanship-2010-0). Astana commemorative declaration towards a security community

1. We, the Heads of State or Government of the 56 participating states of the OSCE, have assembled

Kazakhstan country profile 2012

in Astana, 11 years after the last OSCE summit in Istanbul, to recommit ourselves to the vision of a free, democratic, common and indivisible Euro-Atlantic and Eurasian security community stretching from Vancouver to Vladivostok, rooted in agreed principles, shared commitments and common goals. As we mark the 35th anniversary of the Helsinki Final Act and the 20th anniversary of the Charter of Paris for a New Europe, we reaffirm the relevance of, and our commitment to, the principles on which this Organization is based. While we have made much progress, we also acknowledge that more must be done to ensure full respect for, and implementation of, these core principles and commitments that we have undertaken in the politico-military dimension, the economic and environmental dimension, and the human dimension, notably in the areas of human rights and fundamental freedoms. 2. We reaffirm our full adherence to the Charter of the United Nations and to all OSCE norms, principles and commitments, starting from the Helsinki Final Act, the Charter of Paris, the Charter for European

Kazakhstan’s foreign policy: main achievements and new goals

Security and all other OSCE documents to which we have agreed, and our responsibility to implement them fully and in good faith. We reiterate our commitment to the concept, initiated in the Final Act, of comprehensive, co-operative, equal and indivisible security, which relates the maintenance of peace to the respect for human rights and fundamental freedoms, and links economic and environmental cooperation with peaceful inter-state relations. 3. The security of each participating state is inseparably linked to that of all others. Each participating state has an equal right to security. We reaffirm the inherent right of each and every participating state to be free to choose or change its security arrangements, including treaties of alliance, as they evolve. Each state also has the right to neutrality. Each participating state will respect the rights of all others in these regards. They will not strengthen their security at the expense of the security of other states. Within the OSCE no state, group of states or organization can have any pre-eminent responsibility for maintaining peace and stability in the OSCE area or can consider any part of the OSCE area as its sphere of influence. We will maintain only those military capabilities that are commensurate with our legitimate individual or collective security needs, taking into account obligations under international law, as well as the legitimate security concerns of other states. We further reaffirm that all OSCE principles and commitments, without exception, apply equally to each participating state, and we emphasize that we are accountable to our citizens and responsible to each other for their full implementation. We regard these commitments as our common achievement, and therefore consider them to be matters of immediate and legitimate concern to all participating States. 4. These norms, principles and commitments have enabled us to make progress in putting old confrontations behind us and in moving us closer to democracy, peace and unity throughout the OSCE area. They must continue to guide us in the 21st century as we work together to make the ambitious vision of Helsinki and Paris a reality for all our peoples. These and all other OSCE documents establish clear standards for the participating states in their treatment of each other and of all individuals within their territories. Resolved to build further upon this strong foundation, we reaffirm our commitment to strengthen security, trust and goodneighbourly relations among our states and peoples. In this respect we are convinced that the role of the OSCE remains crucial, and should be further enhanced. We will further work towards strengthening the OSCE’s effectiveness and efficiency.

5. We recognize that the OSCE, as the most inclusive and comprehensive regional security organization in the Euro-Atlantic and Eurasian area, continues to provide a unique forum, operating on the basis of consensus and the sovereign equality of states, for promoting open dialogue, preventing and settling conflicts, building mutual understanding and fostering cooperation. We stress the importance of the work carried out by the OSCE Secretariat, High Commissioner on National Minorities, Office for Democratic Institutions and Human Rights and Representative on Freedom of the Media, as well as the OSCE field operations, in accordance

The Kazakh chair showcased the OSCE to Central Asia and emphasized its Eurasian dimension – highlighting security problems related to Afghanistan, economic and environmental problems with their respective mandates, in assisting participating states with implementing their OSCE commitments. We are determined to intensify cooperation with the OSCE Parliamentary Assembly, and encourage its efforts to promote security, democracy, and prosperity throughout the OSCE area and within participating states and to increase confidence among participating states. We also acknowledge the Organization’s significant role in establishing effective confidence- and security-building measures. We reaffirm our commitment to their full implementation and our determination to ensure that they continue to make a substantial contribution to our common and indivisible security. 6. The OSCE’s comprehensive and cooperative approach to security, which addresses the human, economic and environmental, political and military dimensions of security as an integral whole, remains indispensable. Convinced that the inherent dignity of the individual is at the core of comprehensive security, we reiterate that human rights and fundamental freedoms are inalienable, and that their protection and promotion is our first responsibility. We reaffirm categorically and irrevocably that the commitments undertaken in the

Kazakhstan country profile 2012

Kazakhstan’s foreign policy: main achievements and new goals

field of the human dimension are matters of direct and legitimate concern to all participating states and do not belong exclusively to the internal affairs of the state concerned. We value the important role played by civil society and free media in helping us to ensure full respect for human rights, fundamental freedoms, democracy, including free and fair elections, and the rule of law. 7. Serious threats and challenges remain. Mistrust and divergent security perceptions must be overcome. Our commitments in the politico-military, economic and environmental, and human dimensions need to be fully implemented. Respect for human rights, fundamental freedoms, democracy and the rule of law must be safeguarded and strengthened. Greater efforts must be made to promote freedom of religion or belief and to combat intolerance and discrimination. Mutually beneficial co-operation aimed at addressing the impact on our region’s security of economic and environmental challenges must be further developed. Our energy security dialogue, including on agreed principles of our cooperation, must be enhanced. Increased efforts should be made to resolve existing conflicts in the OSCE area in a peaceful and negotiated manner, within agreed formats, fully respecting the norms and principles of international law enshrined in the United Nations Charter, as well as the Helsinki Final Act. New crises must be prevented. We pledge to refrain from the threat or use of force in any manner inconsistent with the purposes and principles of the Charter of the United Nations or with the ten Principles of the Helsinki Final Act. 8. Conventional arms control and confidence- and security-building regimes remain major instruments for ensuring military stability, predictability and transparency, and should be revitalized, updated and modernized. We value the work of the Forum for Security Cooperation, and look forward to the updating of the Vienna Document 1999. We value the CFE Treaty’s contribution to the creation of a stable and predictable environment for all OSCE participating states. We note that the CFE Treaty is not being implemented to its full capacity and the Agreement on Adaptation of the CFE Treaty (ACFE) has not entered into force. Recognizing intensified efforts to overcome the current impasse, we express our support for the ongoing consultations aiming at opening the way for negotiations in 2011. 9. At the same time, in today’s complex and interconnected world, we must achieve greater unity of purpose and action in facing emerging transnational threats, such as terrorism, organized crime, illegal migration, proliferation of weapons of mass destruction, cyber threats and the illicit trafficking in small arms and light weapons, drugs

Kazakhstan country profile 2012

and human beings. Such threats can originate within or outside our region. 10. We recognize that the security of the OSCE area is inextricably linked to that of adjacent areas, notably in the Mediterranean and in Asia. We must therefore enhance the level of our interaction with our Partners for Co-operation. In particular, we underscore the need to contribute effectively, based on the capacity and national interest of each participating state, to collective international efforts to promote a stable, independent, prosperous and democratic Afghanistan. 11. We welcome initiatives aimed at strengthening European security. Our security dialogue, enhanced by the Corfu Process, has helped to sharpen our focus on these and other challenges we face in all three dimensions. The time has now come to act, and we must define concrete and tangible goals in addressing these challenges. We are determined to work together to fully realize the vision of a comprehensive, cooperative and indivisible security community throughout our shared OSCE area. This security community should be aimed at meeting the challenges of the 21st century and based on our full adherence to common OSCE norms, principles and commitments across all three dimensions. It should unite all OSCE participating states across the Euro-Atlantic and Eurasian region, free of dividing lines, conflicts, spheres of influence and zones with different levels of security. We will work to ensure that cooperation among our states, and among the relevant organizations and institutions of which they are members, will be guided by the principles of equality, partnership cooperation, inclusiveness and transparency. Drawing strength from our diversity, we resolve to achieve this overarching goal through sustained determination and common effort, acting within the OSCE and in other formats. 12. To this end, we task the incoming chairmanshipin-office with organizing a follow-up process within existing formats, taking into consideration ideas and proposals put forward by the participating states, including in the framework of the Corfu Process and in the preparation of the Astana summit, and pledge to do all we can to assist the incoming chairmanships-in-office in developing a concrete action plan based on the work done by the Kazakhstan chairmanship. Progress achieved will be reviewed at the next OSCE Ministerial Council meeting in Vilnius on 6 to 7 December 2011. 13. We express our deep gratitude to Kazakhstan for hosting our meeting, and for the energy and vitality the country has brought to the challenging task of chairing the OSCE in 2010. We welcome Lithuania’s chairmanship of the Organization in 2011, Ireland’s in 2012 and Ukraine’s in 2013.

Kazakhstan’s foreign policy: main achievements and new goals

Conference on Interaction and Confidence-building Measures in Asia (cica) The idea of convening a Conference on Interaction and Confidence-Building Measures in Asia (CICA) was first proposed by President Nazarbayev on 5 October 1992 at the 47th Session of the United Nations General Assembly. Today, in the age of globalization, CICA activity has become particularly significant. In 2006, CICA member states established the International Secretariat on CICA with offices in Almaty. Regular meetings among the Senior Officials Committee and Special Working Groups improved its effectiveness. Organizing the CICA III summit for June 2010 in Istanbul was a top priority on the group’s agenda. During the summit, Turkey assumed the chairmanship of the CICA from Kazakhstan for a two-year period (2010 to 2012). This represented the first-ever chairmanship succession in the history of the Conference (Kazakhstan has chaired it since 2002). Before the CICA III summit, all member states began work on implementing the Catalogue of Confidence Building Measures (CBMs) – human, economic, environmental, military-political, fighting against new challenges and threats – as well as on the legal framework of the forum. In accordance with the Cooperative Approach for the Implementation of CICA CBMs (adopted in March 2007 at the meeting in Bangkok), CICA arranged workshops and field meetings dealing with four aspects of the CBMs – fighting against new challenges and threats, economic, environmental, and the human dimensions. All member states worked on strengthening and broadening cooperation in the politico-military area to make it the central element in CICA efforts to implement provisions of the CBMs Catalogue. During the meeting of the Senior Officials Committee in Beijing on 29 October 2009, member states approved Kazakhstan’s vision on strengthening the military-political dimension. This vision was the starting point for the Concept and Action plan for the CICA military-political dimension. Furthermore, on 18 January 2010, at the tripartite consultations in Bangkok, the then CICA chair (Kazakhstan), new CICA chair (Turkey), and current Association of Southeast Asian Nations (ASEAN) and RFA chairman (Thailand) discussed opportunities for future development of CICA’s military-political dimension with the possible addition of the RFA experience. CICA is expanding its influence in the region. It brings together 18 states occupying 90 percent of Asia’s territory with half the world’s population and growing interest in the increasing dynamics of CICA processes. It has extended its geographic reach and representation – in 2009, Vietnam requested full CICA membership (this

request was preliminarily considered by all member states at the Senior Officials Committee’s meeting in Beijing on 29 October 2009). Moreover, observer status was conferred on CICA by the UN General Assembly during 2007. All these achievements indicate that the forum is in relevant and useful and responds to the needs of CICA member states and the broader region. Turkey’s goals as chairman of CICA

In preparation for the CICA III summit in June 2010, member states worked hard to implement the commitments and decisions made during the 2006 summit and at the 2008 CICA Ministerial Meeting. The preliminary vision for the next summit’s agenda included: ■■ adoption of the summit political declaration ■■ completion of the process of institutionalization of the forum through the adoption of the Convention on the Privileges and Immunities of the CICA Secretariat ■■ giving impetus to the implementation of the CBMs to initiate the first steps in the politico-military dimension ■■ Elevating some Asian countries to full members and observers of the CICA Moreover, Kazakhstan, as the then OSCE chairmanin-office, proposed having a separate meeting during the CICA summit with the participation of OSCE Asian partners, to promote cooperation between OSCE and CICA. It has also proposed issuing the final statement or communiqué of all participants in the event. Kazakhstan was the founding chairman of CICA. It successfully held the chairmanship since the first summit in 2002. Turkey, which has been one of the most active members of CICA, assumed the chairmanship in June 2010 at the third summit meeting. The original goal of Turkey’s chairmanship was to enhance political and security dialogue in Asia. In the beginning of 2010, Turkey declared the following priorities for its work as chair: conduct a dialogue on cooperation for security; provide the basis for a mutual search toward common understanding; establish a bridge between security and dialogue; enhance dialogue for cooperative security in accordance with the principle of non-zero-sum game; establish more effective mechanisms of cooperative security; understand challenges to cooperative security; identify the road map for future development. The year of 2012 marks the 20th anniversary since the CICA initiative was announced and the anniversary meeting of the Council of CICA Foreign Ministers will convene in Astana in September 2012.

Kazakhstan country profile 2012

Kazakhstan’s foreign policy: main achievements and new goals

Organization of the Islamic Cooperation Kazakhstan became a member of the Organization of Islamic Conference (OIC) in 1995. Cooperation with the Islamic world is one of the priorities of Kazakhstan’s foreign policy. Our country is considered by the Islamic World as an integral part of the Muslim community. Since entering the OIC, Kazakhstan has gradually developed its interaction with the General Secretariat, subsidiary bodies and institutes of the Organization. Kazakh delegations have participated in the biggest OIC events, such as Summits (Eighth OIC Summit in December 1997 in Tehran, Ninth OIC Summit in November 2000 in Doha, 10th OIC Summit in October 2003 in Putrajaya) and Islamic Conferences of Foreign Ministers (from the 24th ICFM in December 1996 in Jakarta to the 33rd ICFM in June 2006 in Baku), as well as the Annual Coordination Meetings of Foreign Ministers within frameworks of the UN General Assembly.

Kazakhstan has become more integrated in OIC interparliamentary relations. This demonstrates our goal of developing positive and mutually beneficial relationships with Islamic countries Further intensification of Kazakhstan’s relations with Muslim countries meets the long-term interests of our country mentioned in President Nazarbayev’s address of 1 March 2006. Nazarbayev described Kazakhstan as a multi-ethnic and multi-confessional state that fully supports developing a dialogue among civilizations and religions. He said it was becoming increasingly important that Kazakhstan participate in the OIC as well as in other large regional and global organizations. Participants at the 32nd Islamic Conference of Foreign Ministers in Sanaa, Yemen in June 2005 supported Kazakhstan’s initiative on promoting interfaith dialogue by convening the Congress of Leaders of World and Traditional Religions. Special importance was given to cooperation with the Islamic Development Bank (IDB) and other financial and consulting institutions and companies. The

Kazakhstan country profile 2012

implementation of earlier agreements was under development. The IDB Program, which includes several economic and infrastructure projects in Kazakhstan, was developed for the period 2003-2006: ■■ Syzganov Institute – $10 million ■■ Highway Gulshat-Karaganda – $10 million ■■ Segment of the Osakarovka-Vishnevka Highway – $20 million ■■ Assistance to Small and Medium Enterprises development – $15 million Development of cooperation with the OIC in educational, cultural-humanitarian, science and technology fields was also important. Close interaction with the Islamic Education, Science and Culture Organization (ISESCO) gave Kazakhstan an opportunity to implement national projects, including preservation of cultural heritage monuments, language training and study of history, and the culture of Islamic Countries. On 9-11 September 2005, in Mecca, Saudi Arabia, the Conference of Muslim Scholars and Thinkers was held with the participation of Zhabaikhan Abdildin, the Chairman of the Committee for Foreign Affairs, Defense and Security of the Senate of the Parliament of the Republic of Kazakhstan. The conference focused on elaborating on recommendations and preparing documents to be submitted to the Third Extraordinary Conference held in Mecca on 7-8 December 2005. Representatives from the 57 member states came together to consider the initiative of the King of Saudi Arabia, Abdullah bin Abdulaziz al Saud. A 10-year OIC Action Plan was adopted during the Extraordinary Summit. Based on the proposals of the Kazakh delegation, provisions were included on political, economic and financial assistance to countries affected by environmental disasters as well as on religious dialogue. At its 33rd meeting in June 2006, the Islamic Conference of Foreign Ministers reiterated support for the Resolution initiated by Kazakhstan ‘On the situation in the regions of the Islamic world affected by environmental disasters, in particular in the basin of the Aral Sea and the Semipalatinsk Region.’ Kazakhstan has worked within the OIC framework to participate in the activities of the OIC Parliamentary Union. With the aim of enhancing and intensifying its cooperation with the OIC, Kazakhstan has become more integrated in OIC inter-parliamentary relations. This demonstrates our goal of developing positive and mutually beneficial relationships with Islamic countries. Kazakh parliamentarians took part in the sixth Conference of the Parliamentary Union of the OIC, 12-13 April 2006, in Turkey.

Kazakhstan’s foreign policy: main achievements and new goals

Kazakhstan’s OIC chairmanship

In 2009, member states of the OIC decided that Kazakhstan would chair the Organization in 2011. It is important to highlight that the decision was largely the result of the high trust and authority that President Nazarbayev commands in the region and his active international stand on security and constructive East-West relations. The focus of Kazakhstan’s chairmanship is to establish effective and constructive ‘dialogue of civilizations’ between the East and West, one of the goals of the CICA, OSCE and OIC. As the 2010 OSCE chairman-in-office and 2011 OIC chairman, Kazakhstan has focused on strengthening the two organizations’ cooperation. The goals and objectives of the OIC are not much different from those of the OSCE, as both organizations are devoted to international peace and security. OIC Council of Foreign Ministers, Astana, 28-30 June 2011

Kazakhstan’s chairmanship of the world’s second largest organization got off to a good start on 28 June in Astana, where ministers and top officials from countries on the four continents met to launch the 38th session of the Council of Foreign Ministers (CFM) of the OIC. As one of the first orders of business, the group decided to change its name to the Organization of Islamic Cooperation. Kazakhstan’s Minister of Foreign Affairs, Yerzhan Kazykhanov, announced the decision following a unanimous vote of the 57 countries in the morning session. He went on to give the floor to the President of the country, Nursultan Nazarbayev, who delivered to the 1,000 participants and guests a wide-ranging strategic vision for the future development of the OIC and of the Muslim Ummah as a whole. “The Ummah today is facing serious challenges in a dramatically changing world,” the Kazakh President said. “The Islamic community desperately needs peace, modernisation, scientific and technological development, and education. The combined economic potential of the Ummah is inexhaustible, and we need to unite efforts to develop effective mechanisms for cooperation, mutual aid, and promotion of development.” In his own remarks, the Secretary General of the OIC, Dr Ekmeleddin Ihsanoglu, said Kazakhstan’s chairmanship was a sign of the maturity of the nation, which is marking its 20th anniversary this year, and expressed hope its leadership will strengthen the group, which is timely and relevant now. “Today, the Muslim world is confronted with major trials that challenge its stability. The Muslim world is going through a defining moment in its history,” Ihsanoglu said as he stressed that these trials highlight more than ever the importance of good governance, rule of law, human rights, and the broader political participation of the people in the affairs of their states. For

that, full implementation of the 10-year OIC Programme of Action, adopted in Mecca in 2005, will be important. Kazakhstan has provided a unique dialogue platform for 57 OIC member states, having moderated intensive negotiations on the most urgent issues that resulted in a number of important decisions. The delegates noted that given the latest developments in the Arab states, the 38th OIC CFM was rather dramatic. The participants stressed the high-level meeting, however, was also characterised by profound depth, efficiency and good organisation. The agenda for the CFM meeting, which was quite extensive, involved a number of sessions on different spheres of the Organization’s activity. In the framework of the Political Committee, the sides covered the issues of Palestine and the Arab-Israeli conflict, as well as other developments in various regions of the Muslim world; assistance for the social and economic rehabilitation of Afghanistan; possibilities for extended cooperation with other regional organizations; issues of disarmament; the fight against terrorism, extremism and illicit drug trafficking; UN reform; rights for every individual and the fight against defamation of religions and Islamophobia. One of the most significant decisions was the establishment of an Independent Permanent Commission on Human Rights with its temporary headquarters at the General Secretariat in Jeddah. The Council also elected the 18 members of the Commission for a mandate of three years. In addition, member states expressed their readiness to further examine the Organization’s capacity in the area of international security, peace and conflict resolution. Great importance has been attached to the coordination of actions in preparation for the 2012 international conference on the establishment of a nuclear-weapons-free zone in the Middle East. At the economic sessions, close attention was paid to such aspects as widening trade and economic ties between OIC member states, the development of agricultural potential in the context of food security, and enhancing cooperation in the transport and financial sectors. The participants looked into further development of cooperation in the areas of science and technology, healthcare, environment and humanitarian assistance, having agreed on further steps in cultural and social areas, as well as in the area of protection of Islamic shrines. In the course of the CFM meeting, a regulation on OIC observer states, clearly defining the rights and obligations of those states, was adopted. Another significant development in terms of Central Asian socio-economic, cultural and humanitarian integration was the adoption of the OIC Action Plan on Central Asia. Finally, the next chairman of the OIC CFM, Djibouti, was chosen by a vote of the majority of

Kazakhstan country profile 2012

Kazakhstan’s foreign policy: main achievements and new goals

member states, thus creating a powerful democratic precedent in the history of the Organization. The 38th Session of the OIC CFM, historic both for Kazakhstan and for the group itself, finished with the adoption of the OIC Astana Declaration on 30 July. It reflects deliberations and the most meaningful issues by renewing the commitment of OIC member states to the principles of the Organization and charting a new way forward for it. As OIC CFM’s chairman in 2011, Kazakhstan reaffirmed its responsibility in taking the Islamic World forward along the path of modernisation, on the basis

of the OIC 10-year Programme of Action, adopted in 2005, that meets the challenges facing the Muslim World in the 21st century. “The participants of the session were united in the opinion that it was a robust success. And it was also their universal view that it was that special and vital Spirit of Astana, that had earlier helped Kazakhstan successfully hold a summit of the OSCE last year, that has helped us now to forge the environment conducive for change and renewal and make our consensus stronger,” Yerzhan Kazykhanov stated at a press conference.

Kazakhstan’s international inter-religious initiatives Since achieving independence, Kazakhstan has served as an international platform for the dialogue of cultures and religions. The initiative of the Alliance of Civilizations is accelerating its pace and the dialogue between individuals, governments, religions and public. Kazakhstan contributes to its inter-religious, international efforts. At the 62nd session of the UN General Assembly, Kazakhstan initiated the resolution that has been adopted proclaiming 2010 as the ‘International Year of Rapprochement of Cultures’. It also held the Fourth Congress of Leaders of World and Traditional Religions on 30-31 May 2012. The idea of promoting inter-religious and inter-ethnic tolerance was also included on Kazakhstan’s OSCE agenda in 2010. Congress of Leaders of World and Traditional Religions

Leaders of world and traditional religions met for the first time in Astana on 24 September 2003, to condemn terrorism. They pledged to continue to work toward peace, harmony and prosperity. The Congress, held at the initiative of President Nazarbayev in Kazakhstan’s capital, drew widespread support from leaders of both Western and Asian nations. Kazakhstan is a Muslim-majority country and is considered an example of inter-ethnic and interfaith harmony. The Congress was a bold reminder to the world that people of different faiths and ethnic backgrounds can and should live together in peace. At the end of the Congress, senior clerics from Islam, Christianity, Buddhism, Judaism, Hinduism, Taoism and other faiths adopted a declaration stating that “extremism, terrorism and other forms of violence in the name of religion have nothing to do with genuine understanding of religion, but are a threat to human life and hence should be rejected. The inter-religious dialogue is one of the key means for social development and the promotion of the well-being of all peoples, fostering tolerance, mutual understanding and harmony

Kazakhstan country profile 2012

among different cultures and religions,” the religious leaders said after the closing joint prayer. President Nazarbayev, who chaired the conference, said: “It is unacceptable to attach ideological or political dimensions to existing cultural and religious differences.” He countered the notion of the ‘clash of civilizations’, saying it would be more appropriate to talk about ‘a meeting of civilizations’. US President George W Bush said then in his message to President Nazarbayev: “The United States strongly supports the Congress’ objectives of deepening inter-faith understanding to advance the cause of religious liberty, expand freedom, and eliminate the root causes of terrorism.” The President added: “For the United States, itself a multi-ethnic and religiously diverse nation, these meetings underscore the importance of working with our friends in Central Asia to advance the values of tolerance and respect that form the foundation of democracy.” Leaders of the United Kingdom, France, Italy, Russia, China, Egypt and other nations, as well as then UN Secretary General Kofi Annan, also sent letters of support and commendation to the participants. A group of senior senators and congressmen from the United States, including senators Sam Brownback (R-Kansas) and Conrad Burns (R-Montana), and representatives George Radanovich (R-California), Joe Pitts (R-Pennsylvania), Robert Wexler (D-Florida), Eni Faleomavaega (D-American Samoa), Edolphus Towns (D-New York) and others sent a letter to President Nazarbayev saying the Congress was ‘timely’. At the religious level, the US was represented by the President of the National Council of Churches, Michael E Livingston, and Cardinal Theodore Edgar McCarrick, Archbishop of Washington. They thanked Kazakhstan “for taking consistent and concrete steps to bridge the growing divide between Muslims and Jews

Kazakhstan’s foreign policy: main achievements and new goals

at a time when tension in the Middle East is at a fulcrum, and intolerance and anti-Semitism are rising worldwide.” A total of 18 different religious delegations participated in the meeting, including from the United Kingdom, China, France, India, Iran, Israel, Japan, Pakistan, Russia, Saudi Arabia and Switzerland. Islam was represented by Abdullah Bin Abdulmohsen Al Turki, General Secretary of the Saudi Arabia-based World Muslim League; President of the Islamic Knowledge University, Ayatollah Sayed Mohammad Khamenei of Iran, and others from Pakistan and India. Papal Envoy Cardinal Joseph Tomko led a delegation from the Vatican. The head of the Anglican Community, the Archbishop of Canterbury, was represented by the Bishop of Croydon, the Rt Rev Nicholas Baines, and Archbishop’s Secretary for Ecumenism, Rev Canon Jonathan Gough. Metropolitan Mefodiy represented the Russian Orthodox Church while Metropolitan Emmanuel of France led the delegation of the Constantinople Orthodox Church. Rev. Dr Ishmael Noko, General Secretary of the Lutheran World Federation, represented the LWF. Losantsyumay Tudanzyuezinima, Living Buddha and deputy chairman of the All China Buddhist Association, Jian Ziyui, first deputy chairman of the All China Taoist Association and Dr Shantilal Somaiya, director of the Shinto Temples Directorate from Japan, represented their faiths. Jonah Metzger, the chief rabbi of Israel, and the chief rabbis of Belgium, Switzerland and Russia led the delegation representing Judaism. In the final declaration, the leaders said they would not “allow the use of religious differences as an instrument of hatred and discord.” The participants declared: “We shall strengthen cooperation by promoting spiritual values and a culture of dialogue to ensure peace in the new millennium.” The Resolution of the Congress requested Kazakhstan to make arrangements for the Secretariat to handle all inter – sessional activities before the next meeting in 2006. The UN General Assembly acknowledged the Congress of World and Traditional Religions held in September 2003 in Astana, adopting the Resolution on Promotion of Inter – religious Dialogue on 12 November 2004. The document stressed the commitment of all religions to peace and stability all over the world and appealed to the international community to promote development of inter-religious dialogue. By adopting the Resolution, the community of nations supported Kazakhstan’s initiative to promote a culture of peace and dialogue among civilisations. After the adoption of the Resolution, the Kazakhstan delegation to the UN informed the international community about its work leading up to the Second Congress of World and Traditional Religions, held in Astana in 2006. The Resolution invited UN Secretary-General Kofi Annan ‘to bring the promotion of inter-religious dialogue to the attention of all governments and relevant international organizations and to submit a report

thereon, including all views received, to the General Assembly at its sixtieth session.’ The Secretary-General’s report also included information on the First Congress of World and Traditional Religions and Kazakhstan’s further efforts to develop inter-religious dialogue. On 13 October 2004, Kazakhstan hosted the First Meeting of the Secretariat of the Congress of Leaders of World and Traditional Religions in the southern city of Turkistan, a city on the ancient Silk Road with 1,500 years of history and a spiritual center for Turkic people. On 25-26 April 2006, Kazakhstan hosted the Fourth Meeting of the Secretariat of the Congress in Astana. Participants approved the draft declaration, themes and agenda of the Second Congress. The main themes were: the freedom of conscience and recognition of leaders of other religions and the role of religious leaders in international security. Special envoy of the US National Council of Churches Rev Dr Shanta Premawaradhana participated in the Secretariat’s meetings.

At the Second Congress, more than 40 leaders of major world and traditional religions decided to take a more active role in denouncing intolerance, terrorism and the misuse of religion for political ends On 12-13 September 2006, Kazakhstan’s capital, Astana, hosted the Second Congress of Leaders of World and Traditional Religions, gathering together more than 40 religious leaders. At the Second Congress, the leaders of major world and traditional religions decided to take a more active role in denouncing intolerance, terrorism and the misuse of religion for political ends. Islam was represented by Dr Abdullah Bin Abdulmohsen Al Turki, Secretary-General of the Muslim World League (Saudi Arabia); Sheikh Muhammad Sayyid Tantawi, Grand Imam of Al-Azhar; Dr Mahmoud Hamdi Zaqzouq; Dr Mahmood Ahmed Ghazi, President of the International Islamic University (Pakistan) and other distinguished Islamic leaders. The heads of Christian delegations included Rt Rev Nicholas Baines, Bishop of Croydon (United Kingdom); Cardinal Roger Etchegaray, Emeritus President of the Pontifical Council for Justice and Peace (Vatican); His All Holiness, Bartholomew, Archbishop of Constantinople, New Rome and

Kazakhstan country profile 2012

Kazakhstan’s foreign policy: main achievements and new goals

Ecumenical Patriarch (Turkey); Cardinal Theodore Edgar McCarrick, Archbishop of Washington (USA); Reverend Dr Ishmael Noko, Secretary-General of the Lutheran World Federation (Switzerland/USA) and others. Yona Metzger, Chief Ashkenazi Rabbi of Israel and Shlomo Amar, Sephardic Chief Rabbi of Israel represented Judaism at the Second Congress. Representatives of Buddhism, Shinto, Taoism and Hinduism also participated in the Second Congress. Among the invited guests of honor were UNESCO Director-General Koichiro Matsuura; the former Prime Minister of Malaysia, Mahathir Mohamad; UN Under-Secretary-General (Geneva) Sergey Ordzhonikidze; Renj van der Linden, President of the Council of Europe Parliamentary Assembly; Alejo VidalQuadras, Vice-President of the European Parliament; Staf Nimmegeers, Vice Chairman of the Senate of Belgium and other distinguished political figures.

Today the global community needs to be united and take active steps to develop new forms of international cooperation that will make it possible to ensure stable economic growth and overcome global imbalances President Nazarbayev welcomed the participants’ agreement on a set of Principles of Inter-religious Dialogue that he hoped would pave the way for a Declaration on the role of religion in promoting international security. “After the great loss of life in the first six years of the new century, the world is gradually beginning to understand one simple fact,” he said. “The world’s cultural and religious diversity is a reality that one needs to understand and accept as a given. Any other approach by politicians and the world may simply explode.” Representatives of each of the world’s major religions spoke about the role of education in promoting tolerance as a long-term contribution to global security. Koichiro Matsuura, UNESCO Director-General, lauded Kazakhstan’s “model for peaceful coexistence” among the country’s 40-some religious groups. French President Jacques Chirac, in a letter to President Nazarbayev, expressed hope that the gathering would improve global dialogue between cultures and civilisations. “To counteract against the clash of cultures, to combat calls to violence, to achieve the victory of our vision of

Kazakhstan country profile 2012

a unified world, these are the goals which people of all kind intentions, of all religions and views, must reach together,” he wrote. At conclusion of the Congress, the religious leaders signed a solemn Declaration “together to tackle and ultimately eliminate prejudice, ignorance and misrepresentation of other religions” to aid in the global fight against terrorism. The Declaration calls for “placing a particular focus on what religions hold in common rather than what divides them.” It also condemned terrorism on the basis “that justice can never be established through fear and bloodshed and that the use of such means is a violation and betrayal of any faith that appeals to human goodness and dialogue.” President Nazarbayev stated that the Declaration capped five years of work following the terrorist attacks on New York and Washington on 11 September 2001. The Third Congress

“In the face of global threats the whole world has united in this goal: eradicate terrorism and confirm the values of humanism. An ideology of tolerance and dialogue must confront the ideology of terrorism,” the President told the delegates. Participants agreed to meet again in Astana in three years. The Congress took place in a newly built Palace of Peace and Accord. Inaugurated in early September, the pyramid-style building was designed by British architect Sir Norman Foster as a permanent seat of the interreligious dialogue forum. The place serves a museum of Kazakhstan’s national culture, opera house, civilizations’ university, exhibition and concert hall, library, research center for major faiths and office for different religions. The hall was designed after the Sitting Hall of the UN Security Council in New York. The building is 77 meters high and 25,500 square meters wide. The Third Congress was held on 1-2 July 2009, under the title of ‘The role of religious leaders in building a world of tolerance, mutual respect and cooperation’ with the following sessions: ‘Moral and spiritual values’; ‘Justice, peace and security’, ‘Environment and harmony’, ‘Dialog and cooperation’, and ‘Solidarity and cooperation in a period of crisis’. In the first session, religious leaders discussed moral and spiritual values as a part of human culture and tried to find the unified approach to understanding and defining spirituality. Some people believe spirituality is a cultural heritage, like language; art; music; literature etc. Others believe that spirituality is closely linked to religion and religious values. They refer to secular and religious perceptions of the concept of ‘spirituality’. In the second session, participants discussed developments in the modern world. One group of religious leaders spoke about a lack of understanding and tolerance. At the same time, the leaders said the interaction of religions, culture and social development

Kazakhstan’s foreign policy: main achievements and new goals

continues to affect interstate relations and international stability. At the third session, leaders discussed the global goal of solidarity. Differences provide opportunities to explore others’ values and their merits. Today the global community needs to be united and take active steps to develop new forms of international cooperation that will make it possible to ensure stable economic growth and overcome global imbalances. The Fourth Congress

At the Third Congress, the United States was represented by three different delegations: religious diversity included the Rev Dr Bernice Powell Jackson, the North American president of the World Council of Churches and Ms Debbie Almontaser, member of the board of Brooklyn Borough President’s New Diversity Task Force, Muslim Consultative Network, Women in Islam Inc., and others. The delegation was led by the President of the US Christian Churches Together, the Very Reverend Leonid Kishkovsky. The second group represented the level of American involvement in the global inter-religious dialogue; it was represented by Dr William Vendley, Secretary-General of the World Conference of Religions for Peace International and Mr Stein Villumstad, Deputy Secretary-General of the World Conference of Religions for Peace International. The third delegation represented the voice of the Mormon community and was led by Paul Bowen Pieper of The Church of Jesus Christ of Latter-day Saints (LDS Church) and was the first leader of the LDS Church in Kazakhstan. The Fourth meeting of the Congress of Leaders of World and Traditional Religions, entitled ‘Peace and Accord as a Choice of Mankind’, took place in Astana on 30-31 May under the chairmanship of Kazakhstan’s President, Nursultan Nazarbayev. The Congress brought together Muslims and Christians, Jews and Buddhists, as well as representatives of Hinduism, Shintoism, and Zoroastrianism. 87 delegations from 40 countries traveled to Astana to participate in the Congress, including leaders of religious confessions and organizations, heads of state, politicians, public figures, members of international organizations and experts. Over 70 journalists from all over the world covered the event as well. 21st-century challenges

Distinguished guests in attendance included: Sheikh Hamad bin Khalifa Al Thani, the Emir of Qatar; Sheikh Abdullah Bin Abdulmohsen Al Turki, Secretary-General of the Muslim World League; Patriarch Kirill of Moscow and All Russia; Abdullah Al al-Sheikh, Special Envoy of the Custodian of the Two Holy Mosques and King of Saudi Arabia; Sheikh Ahmed al-Tayyib, Grand Imam of al-Azhar; Irina Bokova, Director-General of UNESCO; and Martin Junge, General Secretary of The Lutheran World Federation.

The US religious community was represented by Imam Feisal Abdul Rauf, a leading moderate Muslim leader; Reverend Robert Chase, founding director of Intersections International, a multi-faith social-justice organization in New York; Reverend Leonid Kishkovsky, director of external affairs and interchurch relations, Orthodox Church of America; Rabbi Andrew Baker, special representative of the OSCE chairman-in-office on Combating Anti-Semitism in 2009-2011; Daisy Khan, Muslim women’s rights activist; William Vendley, Secretary General of World Conference for Religions for Peace and others. All the discussions at the Congress were devoted to finding common inter-religious solutions to 21st century challenges. Under the overarching theme of ‘Peace and Accord as a Choice of Humankind’, religious leaders split into smaller groups and

Religious leaders participated in meetings to identify their role in achieving sustainable development, and the interdependence between religion and multiculturalism in promoting peace and stability participated in four section meetings to identify the role of religious leaders in achieving sustainable development, and the interdependence between religion and multiculturalism in promoting peace and stability. The role of religious leaders

“The role of spiritual and religious leaders is to remind our communities of the importance of God’s message. There will be no growth – there will be only diminishment and poverty – as our religious leaders with us in this Congress from the ex-Soviet republics have borne witness to and remind us of. If there is no recognition of God, much less the love of God, and no care for our own who are poor, hungry, ill or weak, such a nation will not prosper. The failure of Communism is proof of this. I believe that President Nursultan Nazarbayev has experienced both sides of this, and I believe I’m not wrong in concluding that he knows this truth from hard experience. “Therefore, our role as religious leaders is to remind our political leaders and captains of industry that it does not profit a man to gain the whole world in power and

Kazakhstan country profile 2012

Kazakhstan’s foreign policy: main achievements and new goals

riches, if in the process we lose our souls. For it is in our souls that God’s presence sits; and from our submitted souls that God’s presence and light radiates. May we succeed in bringing about this beautiful reality of heaven on earth; may our souls radiate and sing of God’s presence, and may we do this collectively under the leadership of President Nursultan Nazarbayev and in cooperation with the religious leaders convened in this very important Congress of World and Traditional Religions, and thereby bring about a beautiful and sustainable growth,” concluded Imam Feisal, delivering his remarks at the Congress. Religious leaders also discussed the role of women and youth in promoting moderate views, in strengthening inter-religious tolerance and building bridges of understanding. “They are the power that has not been

Religious leaders also discussed the role of women and youth - they“should play a key role in the international fight against extremism and terrorism, that use religion in their own political interests and self profit” considered and recognized but should be engaged in our efforts to promote educated Islam or Christianity, Judaism or Hinduism. They should play a key role in the international fight against extremism and terrorism, that use religion in their own political interests and self profit,” concluded participants in two other section meetings titled Religion and Women and Religion and Youth. In his welcoming address, President Nursultan Nazarbayev highlighted that the Fourth Congress of Religious Leaders was held at a critical time for the whole world. “The qualitative and quantitative growth of our forum is evident today. The Congress of Leaders of World and Traditional Religions has established itself as a unique part of the international dialogue. We appreciate the UN, UNESCO, ISESCO and heads of a number of other international organizations’ support of the Congress’ development as well as the participation of outstanding politicians and public figures,” Nazarbayev said. “A strong impetus for dialogue is essential in today’s modern global processes despite all the difficulties in global development. I am confident that the Fourth

Kazakhstan country profile 2012

Congress of Leaders of World and Traditional Religions will go down in history as an important part of the global dialogue that leads humanity to a more equitable world order for the 21st century,” he added. Over the 20 years of its independence, Kazakhstan has managed to create a unique model of inter-ethnic and interfaith harmony, which is very well known and recognized around the world. It is this harmony that made Astana the ideal place for leaders of the world’s religious communities to meet. For thousands of years, the territory of modern-day Kazakhstan has been a crossroads of cultures, civilizations and religions as trade between East and West occurred along the Silk Road. It is this proud history that forms the basis for spiritual accord in Kazakhstan. Kazakhs are known for their tolerance, flexibility and respect for different cultural values, nationalities and religions. In this regard, Kazakhstan – with its multi-ethnic and multi-confessional population drawn from both Asia and Europe – is an ideal candidate for the role of mediator. It has sufficient authority and influence to maintain contacts with all interested parties and seek solutions to the most complicated issues. Moreover, representatives of different religions who participated in the Congress expressed their support and stressed the importance of Kazakhstan’s initiative to host such a Congress. In his remarks to the Congress, Chief Sephardic Rabbi of Israel Shlomo Amar opined that different people and cultures can achieve peace only through dialogue and mutual respect. “The President and people of Kazakhstan have succeeded in this. Kazakhstan’s success in ensuring inter-confessional accord and tolerance is the example for the whole world,” the Rabbi said. “Religious differences must be subordinated to mutual understanding, tolerance and the ability to overcome inter-confessional barriers to meet the challenges of the multicultural modern world. The Congress in Astana has provided such an opportunity as Kazakh President Nursultan Nazarbayev has created a ‘new UN’, that unites not only nations, but religions, cultures and societies with various ideologies and world views,” Amar concluded. Promoting religious tolerance via the internet

At a press conference during the meeting, Sheikh Ravil Gaynutdin, Chairman of the Russian Muftis Council, said that Kazakhstan had achieved success in promoting the ideology of dialogue among civilizations as well as the peaceful coexistence of religions and cultures in the international community. “Today, at the same table sat the leaders of Christianity, Islam, Judaism, Buddhism and other religions. They all agreed to contribute to maintaining peace and stability in the world,” Ravil Gaynutdin noted. Also rising in support of the Congress and Kazakhstan’s role in hosting it was President of the

Kazakhstan’s foreign policy: main achievements and new goals

Pontifical Commission for Vatican City State and President Emeritus of the Governorate of Vatican City State, Cardinal Giovanni Lajolo. The Governor of the Vatican, who is also a member of the Council of Religious Leaders, conveyed warm greetings and wishes of peace and goodwill to the forum participants, as well as all citizens of Kazakhstan, on behalf of Pope Benedict XVI. “The Holy See supports the initiatives of mutual understanding and efforts on sustainable development and respect for human beings,” Cardinal Lajolo said during Congress, adding: “The main conditions for peace are freedom, truth, love and justice. Peace is impossible without free religion, respect for truth, recognition that the needs of others are equal to our own and a respect for universal rights and freedoms in a society.” On the sidelines of the Congress, President Nursultan Nazarbayev proposed the creation of a special commission under the Council of Religious Leaders with the purpose of developing recommendations for the UN. In his remarks as the Congress concluded, President Nazarbayev said: “The work of establishing of such a special commission, for the purposes of overcoming global problems and reducing conflicts, seems possible.” In addition, President Nazarbayev suggested creating a common internet website for all religions. “I suggest launching an internet resource aimed at forming and enhancing global tolerance and trust

among religions. As an option, it could be made a part of the general information portal of G-global. It is important that it includes interactive meetings of the Council of Religious Leaders and the Secretariat of our Congress via regular online forums for a broad range of internet users covering various topics of concern. It is my hope that you will support this suggestion,” Nazarbayev said. In thanking the participants of the religious forum for their fruitful work, President Nazarbayev said at the closing ceremony in Astana: “I would like to thank you all once again for coming here and being with us under Kazakhstan’s sky, praising the peace and accord in our country, mentioning us in your prayers and wishing Kazakhstan people eternal prosperity.” It was appropriate that President Nazarbayev closed the Congress, which was held at the Palace of Accord and Peace, on 31 May, which is also Kazakhstan’s annual Day of Remembrance. In solidarity with their hosts, all the participants of the Congress took part in an opening ceremony for a new monument dedicated to the victims of the political repression and famine of 1932-1933, visited the ALZHIR (Akmola Camp for the Wives of Traitors to the Motherland) museum located at the former Stalinist gulag camp and held a joint prayer in memory of the victims. The Fifth meeting of the Congress will be held in 2015.

Afghanistan Kazakhstan views the situation in Afghanistan as a priority of its foreign-policy agenda. It strongly supports a comprehensive and continued international effort to bring lasting peace and economic development to Afghanistan. In 2001, Kazakhstan provided no-cost over-flight rights for the ‘Enduring Freedom’ operation. Similar arrangements were developed and adopted between it and Germany at the end of 2007. In 2002, Kazakhstan offered its emergency-landing air fields for US military and cargo planes. As one of the key parts of the so-called Northern Distribution Network, through which about 35 percent of all US cargo has arrived in Afghanistan since 2009, Kazakhstan made its rail and roads available for transit of non-lethal shipments needed for NATO and US forces in Afghanistan. In accordance with the Bonn Process, 2006 London Conference and 2008 Paris Donor Conference on Afghanistan, Kazakhstan has undertaken a number of steps to aid Afghanistan: $1 million in humanitarian assistance, scholarships for 1,000 Afghan students and training programs for Afghan police and the internal security service. It also signed a Protocol of Intentions

with the Government of Afghanistan to build a railroad between Termez (Uzbekistan) and Kabul (Afghanistan), with further access to the transport infrastructure of India, and created the Kazakh-Afghan Intergovernmental Commission on Trade and Economic Cooperation. Kazakhstan is the only Central Asian country that has the Assistance Program on Reconstruction of Afghanistan. Between 2007-08, $3 million was provided to restore agricultural seed supply in Afghanistan, to build a school in Samangan province, a hospital in Bamyan province and a road. Under the next Governmental Action Plan on Assistance, Kazakhstan is allocating $5 million for projects related to water supply, infrastructure development and delivery of grains and other commodities. The Action Plan calls for the delivery of commodities and materials as well as the construction of four bridges crossing the river running through the town of Aibak and strengthening the river banks. According to the Action Plan, the Afghan Government will receive two aircraft from their Kazakh counterparts: a Mi-171 (to use for humanitarian cargo and rescue

Kazakhstan country profile 2012

Kazakhstan’s foreign policy: main achievements and new goals

operations) and an Il-76 (for transporting humanitarian aid cargo from the United Arab Emirates to Afghanistan as part of the UN World Food Programme (WFP)). Stabilizing Afghanistan

Another important step was the decision by the Government of Kazakhstan to allocate $50 million to implement the Agreement on Cooperation in Education with the Afghan Government. Under the agreement, Kazakhstan will educate 1,000 Afghan people from 2010 to 2014. The education of the Afghan people will be carried out in the universities of Kazakhstan in such specialties as healthcare, agriculture, police, border control, engineering, teachers and educators. Kazakhstan fully supports the United States’ strategy on Afghanistan. The stabilization of Afghanistan was and continues to be one of the most important issues to discuss during high-level exchanges between Kazakhstan and the US.

Kazakhstan fully supports the US strategy on Afghanistan. The stabilization of Afghanistan was and continues to be one of the most important issues to discuss during high-level exchanges between the two countries On 21 May 2012 Foreign Minister Yerzhan Kazykhanov travelled to Chicago for the NATO Summit. There, he once again confirmed Kazakhstan’s commitment to support US efforts to stabilize Afghanistan. Most importantly, he was one of the few leaders to announce a decision to make a financial contribution to support Afghan National Security Forces. Developing Afghanistan

Kazykhanov highlighted the importance of developing regional trade and economic cooperation with Afghanistan. It will continue its support of Afghanistan’s economic and humanitarian recovery. This support will be done in a variety of ways – for example, through partnering with international organizations such as the FAO and WFP to increase the supply of grain to Afghanistan. Kazakhstan also supplies fuel to the country, helps build social and economic facilities,

Kazakhstan country profile 2012

trains its students at the best Kazakh universities, and promotes the participation of Kabul in regional trade, investment and infrastructure projects. Kazykhanov called on Summit participants to strengthen efforts to combat drug trafficking from Afghanistan since “successful counter-terrorism is impossible without solving this problem.” In this regard, the Minister highlighted the work of the Central Asian Regional Information Coordination Center (CARICC), which was set up in Almaty with UN assistance. The situation in Afghanistan and Kazakhstan’s approach to it is elaborated in the foreign minister’s article Stabilizing Afghanistan: the view from Kazakhstan (Real Clear World, 18 May 2012). Many officials, including NATO Secretary-General Rasmussen and Secretary of Defense Leon Panetta, who had a separate meeting with Central Asian Foreign Ministers, expressed gratitude to Kazakhstan and other Eurasian countries for their logistical assistance to NATO. This crucial support was also recognized by the leaders of all 28 NATO members and reflected in the Chicago Summit Declaration: “We welcome the progress on transit arrangements with our Central Asian partners and Russia.” Minister Kazykhanov held a working meeting with US Assistant Secretary Robert Blake. They discussed progress toward implementing the agreements reached at the meeting between President Nursultan Nazarbayev and President Barack Obama during the Seoul Nuclear Security Summit in March 2012. They also underlined the importance of the recently established bilateral Strategic Partnership Commission, which comprehensively covers the bilateral agenda. Iraq

Kazakhstan believes that the UN should play an active and effective role in further political and economic rehabilitation in Iraq, in close cooperation with the Iraqi authorities and the international community. Joint efforts should ensure full respect for the independence and territorial integrity of Iraq, as well as the sovereignty of the Iraqi people and their right to determine their own political future. The Kazakh military engineers unit has been stationed in Iraq under US command since 2003. It consisted of 25 people in the Engineer Battalion, four officers in the Multi-National Force in Baghdad and the Multi-National Division – Centre South. During its mission in Iraq, the squad destroyed four million units of ammunition. Kazakh doctors, together with their foreign colleagues, rescued more than 500 Iraqi citizens, one third of whom were children. In October 2008, Kazakhstan withdrew its peacekeepers from Iraq at the request of the Iraqi government. The security situation had improved and Iraqi security forces were now capable of taking over.

Kazakhstan - the heart of eurasia

KAZAKHSTAN

The heart of Eurasia

Nature and geography Kazakhstan is located in the central part of Eurasia, almost equidistant from the Atlantic Ocean and the Pacific Ocean. It sits at the junction of two continents, Europe and Asia, between 45 and 87 degrees of the eastern longitude, 40 and 55 degrees of the northern latitude in Central Asia. It occupies a territory equal to 27.2 million km2 and spreads to the east from the Caspian Sea and Volga valleys to mountainous Altai, from the foothills of the Tien Shan in the south and southeast to the Western Siberian lowland in the north. The length of its territory from the west to the east exceeds 3,000 km, and from the south to the north it exceeds 1,700 km. Kazakhstan borders Russia to the north, China to the east, and Kyrgyzstan, Uzbekistan and Turkmenistan to the south. It is bordered by the Caspian Sea in the west. By territory, Kazakhstan is the ninth largest country in the world and the fourth biggest on the continent. Throughout history, Kazakhstan was an arena for brisk commercial and political relations; it now plays an

important role as a link between Europe, Central Asia and the rapidly developing Asian-Pacific region. The largest part of the territory is occupied by the valley framed with mountains in the east and south-east. Mountains along the border with Kyrgyzstan rise almost up to 5,000 meters above sea level, and the Karagiye (Batyr) depression in Mangyshlak is located at 132 meters below sea level. The Mangyshlak peninsula is in the southwest; Kazakh Low Hill Land is in the central part of the country; the southern part of the Western Siberian lowland sits in the north, and the mountains of Altai, Tarbagatai, Zhungar Alatau and Tien Shan sit in the east and southeast. Kazakhstan is home to 8,500 rivers. The length of seven rivers (Ural, Emba, Syrdarya, Ili, Irtysh, Ishim and Tobol) exceeds 1,000 km. The country is also home to 48,000 lakes. The largest are the Aral Sea, Balkhash, Zaisan, Alakol, Tengiz and Seletengiz. The largest part of the northern shore and half of the eastern shore of

Kazakhstan country profile 2012

100

Kazakhstan - the heart of eurasia

the Caspian Sea (the largest lake in the world) belong to Kazakhstan. The length of the shore is 2,340 km. Twentysix percent of the country is steppe; 44 percent is desert and 14 percent is semi-desert. Forests occupy 21 million hectares. There are several large mountain ranges on the territory. The highest peak is Khan-Tengri peak (Saryzhaz ridge) – 6,995 meters above sea level. Kazakhstan has a unique and rich landscape

Kazakhstan’s fauna is also diverse. On its territory there are 853 species of vertebrate animals (178 species of mammals, 512 of birds, 49 of crawlers, 12 of amphibious animals and 102 of fish and cyclostomes). Invertebrate animals are also diverse: there are at least 50,000 species, including 30,000 insects. In the steppes, there are flocks of koulans and goitered gazelles (Atlantic antelope). Deserts are inhabited by gigantic lizards, snakes and spiders. The

tops of the mountains are inhabited by snow leopards. In the precipices, one can hear the voice of the whistling thrush (Indian thrush). There are birds, marmots, Ustyurt wild sheep, Turkestan lynx, Tien Shan brown bears, flamingos and swans in Kazakhstan. All are unique animals. Flora is rich: 5,754 species of higher plants grow on Kazakh territory. Up to 14 percent are endemic. The most peculiar are the flora in the Western Tien Shan and in the mountains of Karatau. The Red Book of the Republic includes 125 species and subspecies of vertebrate animals, 96 species of invertebrate animals and 303 species of plants. There are 115 specially protected natural territories of national significance and 60 local natural territories, which protect this biological diversity. Currently there are 10 reserves, eight national parks, two natural reservations and three natural parks operating in Kazakhstan.

useful information National holiday 16 Dec – Independence Day State holidays 1-2 Jan – New Year 8 March – International Women’s Day 22 March – Nauryz (traditional holiday of Spring - ancient Turkic (Kazakh) New Year) 1 May – Unity Day of Kazakhstan people 9 May – Victory Day 6 July – Astana Day 30 Aug – Constitution Day Local time Kazakhstan is divided into two time zones: Eastern zone, Western zone Eastern Standard Time + 11 hours (time in the capital of Kazakhstan – Astana) and + 10 hours when the United States switches to Daylight Saving Time Languages Kazakh, which belongs to a Turkic group, spoken by over 70.1 percent of the population, is the state language. Russian, spoken by 94.3 percent, enjoys an equal status under the Constitution and is a means of interethnic communication in Kazakhstan. English is spoken by 15.4 percent. The National Trinity of Languages Program aims to ensure that all Kazakh citizens have full command of Kazakh, Russian and English to have an international competitive edge in the 21st century. Newspapers, TV/radio programs

Kazakhstan country profile 2012

and school instruction are run in 11 languages (Kazakh, Russian, Uzbek, German, Korean, English etc) Currency The national currency of Kazakhstan is tenge (100 tiyn). There are banknotes of KZT 10,000, 5,000, 2,000, 1,000, 500 and 200, with coins of KZT 1, 3, 5, 10, 20, 50 and 100 Currency exchange Official exchange rate (June, 2010): $1 = KZT146.4. The exchange of foreign currency to tenge and back is carried out in any bank or official exchange offices. It is advisable to keep documents when exchanging large amounts before departure from the country Bank hours 09.00 am to 06.00 pm Monday-Friday Lunch break 01.00 pm – 02.00 pm Credit cards Almost all American and international credit cards, including Visa and Diners Club, are accepted in most large hotels in Almaty and Astana and in most shops and restaurants. National dishes In general, Kazakhs prefer meat dishes. The favorite national dish of Kazakhstan

is beshbarmak. Beshbarmak is made with lamb, horsemeat, beef and dough. Other favorites include kazy, karta, zhal, zhaya and, of course, kumys (mare’s milk). Kumys has healing qualities and is used to treat lung and gastrointestinal illnesses. Taking into account that more than 130 different nationalities are represented in Kazakhstan, the country’s cuisine is diverse. Kazakhs enjoy Russian, Uyghur, Ukrainian, Uzbek, Korean and European cuisine. Throughout the country, restaurants and cafes are diverse. Other useful information Electricity: 220 volts AC, 50 Communications Telephone: country code – 7, Astana city code – 7172, Almaty code – 727. International calls can be made easily. Telegram facilities are available at any post office. Full postal facilities are available at main post offices in the cities and are open 24 hours a day, seven days a week. Useful links Travel and Visa information: www.kazakhembus.com Information on Kazakhstan: www.kazakhstanlive.com Tourism: www.ecotourism.kz www.kantengri.kz; www.kazakhstanbirdtours.com

Kazakhstan - the heart of eurasia

101

typical plants and animals of kazakhstan

Blue Spruce: blue royal Tien Shan spruces are the natural artistic decoration of the Ile Alatau mountain ridges. They can reach heights of 40-50 meters. Covered with fog, these giants rise above the deep precipices of the mountains. Their tolerant needles can survive cold alpine winters and they can exist in bare rocks.

Snow leopard (Pantera unique): In Kazakhstan, people view the leopard as their strongest and proudest animal. A wild cat, its preferred habitat is on the mountain tops, where glaciers are contiguous with the Alpide belt. Although rare, it can sometimes be found in the Tien Shan. Without natural enemies, snow leopards have a long life expectancy.

Saxaul (Latin: Passer ammondendri): You can see a unique plant in the steppes of Kazakhstan - saxaul, a bush with soft leaves. During unusually dry periods, saxaul loses all of its leaves and looks like long curls. But as soon as rain comes, the plant starts growing again. If there are several rainy periods in summer, it can form a small forest. The bush mainly grows in the desert and semi-desert areas.

Saker falcon: In ancient times, Kazakhs used Saker falcons to hunt fowl. Kazakhs took baby falcons from their nests to train them to hunt. This tradition still exists. Falcons can be found in the wilderness in Altai, in northeastern Kazakhstan, in Ile Alatau.

Koulan (Latin: Equus hemionus): Strong, with a light gait, these Asian animals are elegant and beautiful. Scores of koulans used to roam in the steppes of Kazakhstan but overhunting rendered them extinct. Koulan were reintroduced to the right riverbank of Ili River from the Aral Sea.

Kazakhstan country profile 2012

102

Kazakhstan - the heart of eurasia

Environment protection As a country that has suffered environmental disasters, Kazakhstan is taking the lead to promote sustainable development and the preservation of nature. At the United Nations Conference on Sustainable Development (Rio+20) in Rio de Janeiro, Brazil, on 20-22 June 2012, Kazakhstan called on nations, businesses and NGOs to give the global economy a ‘green boost’ by supporting its Global Energy-Ecological Strategy and Green Bridge initiative. Minister for Environmental Protection Nurlan Kapparov led Kazakhstan’s delegation, which included deputies of the country’s parliament, representatives of government agencies, scientific organizations, NGOs, industrial associations and energy enterprises. The Green Bridge Partnership Program at Rio+20, which was duly reflected in the Outcome document, would create a vast new market for green goods, services and new technologies – providing a massive green economic stimulus to the global economy. Proposed by Kazakhstan’s President Nursultan Nazarbayev at the UN General Assembly in September 2011, the Green Bridge Partnership Program for 2011-20 is supported by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) and the United Nations Economic Commission for Europe (UNECE). This represents 95 countries and almost three quarters of the population of the planet, including over one billion of the world’s poor. The Green Bridge Partnership Program is based on the recognition of the urgent need for a radical transformation of the environmentally destructive “brown” economy. According to UN estimates, the Organisation for Economic Co-operation and Development (OECD) and the G20, investments and innovations in natural capital and eco-efficiency provide an opportunity to create a new ‘green economy’, stimulating long-term growth, employment and socially inclusive development. The Green Bridge proposal

Kazakhstan’s Green Bridge proposal is based on five fundamental principles, including the leading role of government in such reforms, long-term interests of investors to green business, cooperation of publicand private-sector parties, effective management and maximum focus on practical results. The objectives of the program are designed to strengthen national and international governance, develop informational infrastructure, boost outreach and education, encourage green business and related technologies, introduce effective financial and economic mechanisms, and the creation of unified standards for the green economy.

Kazakhstan country profile 2012

The Green Bridge targets conservation in five core sectors: mountainous and wetland ecosystems, sustainable energy (availability and efficiency), food security, urban infrastructure and transport, adaptation to climate change and natural disasters. As the underpinning to the Green Bridge Partnership, the main provisions of the Global EnergyEcological Strategy, aimed at managing the long-term transition from conventional to sustainable energy, were reflected in the Framework for Action and Follow-up of the Outcome document. On the sidelines of the conference, Al-Farabi Kazakh National University in Kazakhstan organized the discussions ‘Green Bridge through Generations’. Participants in this event supported the Kazakh initiatives on the Global Energy-Ecological Strategy and the Green Bridge Partnership Program and called for establishing an International Universities Consortium ‘Green Bridge through Generations’, ideas on which could be exchanged at a webportal: http://rio20.kaznu.kz. Environmental threats

Kazakhstan was hit by two major disasters in the 20th century – 500 nuclear weapon tests at the Semipalatinsk test site and the drying up of the Aral Sea due to the diversion of water from the Amu Darya and Syr Darya rivers for irrigation. Central Asia faces a number of environmental challenges, including water scarcity and inefficient energy use. In Kazakhstan alone, the government has calculated that the green economy has the potential to increase energy efficiency by 40-60 percent, water saving by 50 percent, and reduce industrial waste by 30 billion tonnes. At the same time, the government predicts huge opportunities for green industry, including organic agriculture, eco-tourism, renewable energy and a potential fishery industry worth over $1 billion a year. The country has also been heavily industrialized in the second part of the last century, resulting in high levels of pollution. Against this background, the people of Kazakhstan have been particularly conscious of the need for greater efforts to protect and restore the environment. The Semipalatinsk nuclear test site was shut down in 1991, while joint projects with the World Bank helped to restore water to the northern part of the Aral Sea. Other steps are being taken toward cleaner air and environmental protection at the national level. In March 2009, Kazakhstan ratified the Kyoto Protocol to the UN Framework Convention on Climate Change. According to the document, the country must reduce carbon-dioxide emissions in the atmosphere.

Kazakhstan - the heart of eurasia

Since ratification, all major facilities are being monitored for environmental compliance with the protocol. Kazakhstan aims to reduce its greenhouse gas emissions by 15 percent by 2020, and by 25 percent by 2050, in full accordance with the Kyoto Protocol. Since July 2009, the government has restricted the import of automobiles not meeting the Euro-2 standard. From 1 January 2011, Euro-3 standard was implemented, and the Euro-4 standard will be introduced in 2014. Almaty, a city with one of the highest levels of pollution in Kazakhstan, introduced a program to reduce air pollution through 2018. Trucks are now restricted from entering the center of the city, many trees are being planted and transport interchanges are being built to reduce congestion. The city’s department of natural resources noted an improvement in the pollution index from August 2008 to August 2009, with a drop of almost three percentage points.

103

a commitment to voluntarily limit their anthropogenic emissions of greenhouse gases (GHGs) for the period from 2008 to 2012. Kazakhstan is committed to achieving 1992 emissions levels. In September 2009, Kazakhstan submitted a report to the United Nations Framework Convention on Climate Change (UNFCCC) Secretariat on the inventory of GHG emissions. After receiving a positive report on the audit led by international experts, Kazakhstan presented a national report on Assigned Amount Units (AAU) and registered with the Secretariat of the UNFCCC. All of these activities contributed to positive solutions at the 32nd session of the Subsidiary Body for Implementation (31 May-11 June 2010, Bonn, Germany) and further at the KS/SS-6 in Mexico in December 2010. In November 2009 in Barcelona at a meeting of the Ad Hoc Working Group on Long-term Cooperative

Ecology of Kazakhstan program

Since 2009, Kazakhstan has participated in Earth Hour – meant to draw public attention to climate change. On this day, lights are switched off for one hour at Baiterek Tower (the symbol of Astana), the Ak Orda presidential palace and another 100 buildings in Astana. Initially the action was planned only in Astana and Almaty, but 88 other cities across Kazakhstan chose to participate. All future efforts in environmental protection will be carried out in accordance with a new 10-year program, Ecology of Kazakhstan. One of the program’s objectives is to create the Zhasyl Damu (green development) national center of environmental development for integrated management of waste production and consumption. Its main purpose is to construct factories to produce recycling equipment. Today, the country exports its persistent organic pollutants for recycling to Germany. The program also incorporates a number of investment projects, which will be designed in accordance with today’s requirements. The program’s top priority is waste production and consumption. In June 2010 in Bonn, Germany, Kazakhstan recommended to the Conference of the Parties (COP-16) that it accept the Republic of Kazakhstan in Annex B of the Kyoto Protocol. The conference adopted a policy document that laid the groundwork for a future comprehensive, legally binding climate agreement to replace the Kyoto Protocol after 2012. A Kazakh delegation led by Minister of Environmental Protection Nurgali Ashimov participated in the debates. To implement the Joint Implementation (Article 6) and emissions trade (Article 17), it is necessary to meet the requirements of articles of the Kyoto Protocol stated in the Marrakesh Agreement. At the international level, negotiations are held on the integration of Kazakhstan in Appendix B of the Kyoto Protocol with

Within the framework of the Zhasyl Damu State Program there will be a general decrease in carbon intensity and increase of the share of renewable energy. Work on strategies for the low-carbon economy is under way Action (AWG-LCA), Kazakhstan made a commitment to quantitative reductions in greenhouse gases after 2012. Within the framework of the Zhasyl Damu State Program for 2010-14, there will be a general decrease in carbon intensity and increase of the share of renewable energy. Work is under way to develop strategies for the low-carbon economy. These parameters helped Kazakhstan develop a legally binding agreement at COP-16 and KS/SS-6 in Mexico in December 2010. Reducing greenhouse gas emissions

In Bonn in June 2009, Kazakhstan submitted the Second National Communication at the Conference of Parties of the UNFCCC. Since the beginning of last year, negotiations on the development of the Third National Communication have been held to meet the requirements of Annex I. On 6 August 2009, a Ministry of Environmental Protection was appointed to coordinate implementation of the Kyoto Protocol of the UN Framework Convention

Kazakhstan country profile 2012

104

Kazakhstan - the heart of eurasia

on Climate Change (Designated National Authority/ Designated Focal Point(DNA/DFP). The Head of State gave an assignment to the Government to introduce a national carbon-trading platform in Kazakhstan. Work to develop regulatory and legislative documents, amendments and changes to the Environmental Code has begun. The Ministry of Environment is considering the acquisition and establishment of a national register of units to reduce GHG emissions. It should result in the formation of a national system for estimating emissions of GHGs, and establishing rules on the approval, registration and monitoring of projects to reduce GHG emissions. On 29 January 2010, Kazakhstan sent a letter to the UNFCCC Secretariat expressing its intention to be associated with the Copenhagen Accord and requested the name ‘Republic of Kazakhstan’ be included in the title of the Agreement.

Kazakhstan has refused to accept the so-called irreversible fate of the Aral Sea. The country’s decision to reconquer the northern part of the sea nearly five years ago has seen its first tangible results: rising water levels and the return of fish. Forty years of heavy irrigation by rice and cotton farmers took their toll on the Aral Sea, shrinking its surface by two thirds and its depth from 53m above sea level to a mere 30m. Fish disappeared, salinity increased

and large quantities of pesticides were released into the environment. Labeled an ‘ecological disaster’ by the international community, the results have had a profoundly damaging effect on local fishing communities. But Kazakh President Nazarbayev has defied fate, launching a vast rescue program for the Kazakh side of the Aral Sea in 2001. The two main goals were: the construction of the 13km Kok-Aral dam, dividing the sea into two halves – north (Kazakh) and south (Uzbek) – and the development of the Syr Darya riverbanks to increase the volume of water being discharged into the northern part of the sea. These two measures have been successful: ■■ Soon after the program was completed in August 2005, tests revealed that the surface of the northern half of the lake had risen 13 percent from 2,850 square km in 2003 to 3,250 square km in 2006. ■■ Over the same period, salinity dropped from 34 grammes/litre to 15 grammes/litre, encouraging the gradual return of marine life and several varieties of freshwater fish. The volume of fish catches, less than 1,500 tonnes per year two years ago, is now 15,000 tonnes per year – a ten-fold increase. A significant climatic evolution has taken place. The inhabitants of the region, who are finally able to resume their livelihoods, have noted a considerable improvement in environmental conditions of the region in recent years. Above all, the increase of the sea’s surface has encouraged evaporation, and thus the progressive return of rainfall, indispensable for agriculture and human and animal life.

Fig. 1 Aral Sea in October 2003

Fig. 2 Aral Sea in September 2006 to October 2007

The Aral Sea in Kazakhstan – a rebirth of local environment

Pictures: Japan Aerospace Exploration Agency

Kazakhstan country profile 2012

Kazakhstan - the heart of eurasia

105

Milestones of history Kazakhstan is located in the heart of Eurasia and on the intersection of ancient social, economic and cultural routes between many nations, ethnic groups and civilisations. During different periods in history many states with their unique cultures were established and developed on the present-day territory of Kazakhstan. The Scythian nomad civilization existed in the steppe regions of Central Asia during the first centuries of the first millennium BC. Some artifacts of this civilization can still be found. The most impressive from this era are household goods and personal items made from bronze and gold in the so-called ‘animal style’. The ‘Golden warrior prince’ tomb is well known for its beauty and elegance. It was found near a settlement called Issyk, which is located very close to Almaty city. Centuries ago, a powerful tribe called the Huns established themselves in the steppe region of present-day Kazakhstan. They had a great influence on the political development of this area at the time. An army of Huns led by their great warlord, Attila the Hun, brought down the Roman Empire. Later on, Turkic tribes became the Huns’ successors. They created some vast states named ‘kaganats’, which means empire. These empires covered the territory from the Yellow Sea in the east to the Black Sea in the west. The nomad states had well-developed cultures for that era: there were several cities with advanced levels of commerce and trade. Step by step, the cities and caravanserais were established at Central Asian oases.

The Great Silk Road trade route played a major role in the development of commercial relationships It was a part of the historical route known as The Great Silk Road, which connected Byzantium with China. Other caravan routes were important as well. Among them were the roads leading along the Syr Darya River to the Aral Sea and the Urals and the so-called ‘sable road’ from Central Kazakhstan and Altai to southwest Siberia. Europe and the Middle East were supplied with very valuable furs via this route. Big cities and commercial centers were built along these trade routes, the most famous among them being Farab, Taraz, Kulan, Yassy (Turkestan), Sauran and Balasagun.

Portrait of Genghis Khan

Development of the khanate

The Great Silk Road trade route played a major role in the development of commercial relationships and in the exchange of progressive scientific and cultural ideas. The great eastern philosopher al Farabi lived on the territory of present-day Kazakhstan from 870 to 959 and was known as the Second Teacher after Aristotle for his research into philosophy, astronomy, mathematics and the theory of music. Hodja Ahmed Yassawi was a well-known Muslim bard who lived in the 12th century; he wrote a famous poem called the book of wisdom. A new form of city architecture developed at that time and became a major historical achievement. This new style was famous for its elegant proportions. At the same time, a unique type of portable dwelling called ‘yurta’ (nomad’s tent) was invented. The yurta was a perfectly designed structure for the nomads. In 1221, nomadic tribes led by Genghis Khan occupied Central Asia. This invasion had a great influence on the development of the Kazakh nation. Kazakhs had emerged as a distinct ethnic group about that time, forming a tribal confederation known as the Kazakh khanate (or Orda), which comprised three tribal unions – the Greater, the Middle and the Lesser Hordes – each of which were led by Khans.

Kazakhstan country profile 2012

106

Kazakhstan - the heart of eurasia

The Alash party and the Alash Orda government were established to defend Kazakhstan’s independence. They wanted to liberate Kazakhs from colonization and provide them with real independence, but the movement ended tragically The merger of different nomadic tribes began in the second half of the 15th century. These tribes had different cultures and traditions but had a similar lifestyle. The word ‘Kazakh’ is translated from the Turkic language as ‘free, independent’. The Kazakh khanate appeared at the time when there was a political crisis caused by the downfall and collapse of the huge nomadic empire. This caused a lot of small states to emerge and fight for control of the territory and parts of the Great Silk Road trade route. Subsequent dynasties of Genghis Khan and their rivals also contributed to the political instability of the region. Russian colonization

After the end of the 16th century the main goal of the Kazakh khanate was to promote the integrity and inviolability of its territory. Certain events that took place at the beginning of the 18th century show that there was a lack of resources for the defense and development of Kazakh independence. A very powerful and aggressive neighbor called Dzhungar Khanate was on the border of the Kazakh khanate. This fact made Kazakh Khans reconsider their diplomatic relations with Russia and to change them not only for

ABOUT THE VALIKHANOV ONLINE EXHIBITION Kazakhstan Explored: The Expeditions of Chokan Valikhanov Chokan Valikhanov (1835-65) is often considered the ‘father of Kazakh historiography and ethnography’. This new Smithsonian online exhibition begins a multi-year project to present the scientific accomplishments, along with translations of expedition records, of this great 19th-century Kazakh geographer and ethnographer. www.valikhanov.si.edu

Kazakhstan country profile 2012

The 16th century mausoleum of Alasha Khan

good trade relations but also for the military defense of the Kazakh khanate and Russia against Dzhungar aggression. At the beginning of the 18th century, the political situation along Kazakhstan’s borders and in the Kazakh khanate itself was incredibly unstable. The Khanate was under threat. That is why Abulkhair and Sameke, khans of the Lesser and the Middle Horde, decided to accept Russia’s protection – as it was the only condition under which Russia would agree to defend it militarily. This protection very shortly turned into the colonization of Kazakhstan by Russian military forces. Abylai Khan made a successful attempt to resist this process. He managed to do the impossible by gaining the independence of the Kazakh khanate under very unfavorable internal and external circumstances. He used the fact that China and Russia had a lot of disagreements at the time. Unfortunately, the independence of the Kazakh khanate did not continue after his death. Some Kazakh intellectuals founded the national liberation movement in 1917-18. The Alash party and the Alash Orda government were established to defend Kazakhstan’s independence. They wanted to liberate the Kazakh people from colonization and to provide them with real independence, but the movement ended tragically. Despite many uprisings, Tsarist Russia retained control over the Kazakh tribes until the Bolshevik Revolution. Incorporated into the emerging Soviet state, Kazakhstan was made an autonomous republic, and in 1936 attained the status of a full Soviet republic. With the collapse of the Soviet Union on 16 December 1991, Kazakhstan declared its independence.

culture and traditions

107

Kazakhstan Culture & Traditions

Literature Before the 19th century, Kazakhstan had no written language of its own. Literature took the form of long oral poems. The founder of modern Kazakh literature is said to be Abay Kunanbaev (1845-1904), who translated Russian works into the Kazakh language. His main contribution to Kazakh culture and folklore is his poetry, which expresses strong nationalism. His most famous philosophic work, Words of Edification, is said to be a spiritual commandment to the nation. Other notable writers and poets include Akhmet Baitursynov, Mirjaqip Dulatuli, Bukhar-zhirau Kalmakanov and Makhambet Utemisov.

Chokan Valikhanov (1835-1865), from whom Kazakhstanâ&#x20AC;&#x2122;s Academy of Sciences takes its name, was the first Kazakh scholar, ethnographer and historian. A descendant of Ghenghis Khan, Valikhanov was one of the first Kazakhs to be educated in Russian and published books and articles devoted to the history and culture of Central Asia. Notable works include Kirghiz (Kazakhs), Traces of shamanism in Kirghiz, and About Kirghiz nomadsâ&#x20AC;&#x2122; camp. He also wrote the Kazakh epic poems Kozy-Korpesh and Bayan-Sulu and the Kyrgyz epic Manas.

Kazakhstan country profile 2012

108

culture and traditions

Lifestyle Astana, the Kazakh capital, and Almaty, the former capital, are modern cosmopolitan cities. Most Kazakhs live in urban apartment blocks, houses finished to international standards. The wealthy denizens of Astana often occupy penthouse flats overlooking the city and the ever-receding steppes. The latest important residential complex under construction – the Abu Dhabi Plaza – is designed by Norman Foster.

Traditions The traditional dwelling of the Kazakh nomad is the yurt, a tent made from a framework of willow wood and covered in felt, with a hole in the top to allow smoke to escape. When correctly constructed, a yurt enables its inhabitants to stay cool in summer and warm in winter. Very few Kazakhs still maintain a semi-nomadic existence, moving their herds and flocks to summer pastures each year.

Museums Most of Kazakhstan’s museums are found in Almaty. The Central State Museum of the Republic of Kazakhstan was established in the 1930s and today hosts four large exhibition halls displaying hundreds of unique Kazakh exhibits, including spiritual and cultural material describing the history of the country. The A Kasteyev State Museum of Arts boasts over 20,000 exhibits in its collection (painting, sculpture, decorative art). The museum’s acquisitions program began when the Russian Museum and the AS Pushkin Museum of the Fine Arts delivered 200 works by Russian and Western masters in

Kazakhstan country profile 2012

Gold belt buckle with argali decoration, from the 7th-6th century BC

the 1930s. The collection traces art history from ancient to present times. The Archaeological Museum of the Kazakhstan National Academy of Sciences and The State Book Museum are also located in Almaty.

culture and traditions

109

Sports As in other aspects of Kazakhstan’s culture, the horse plays a dominant role in athletics – kokpar is a wilder version of polo that uses a goat’s carcass instead of a ball; and qyz quu is a chase between girl and boy on horseback. In contemporary terms, the country is obsessed with football. The Kazakhstan First Division is controlled by the Football Union and feeds into the Kazakhstan Super League, founded in 1994. Cyclist Alexander Vinokourov is perhaps the best-known Kazakh athlete. Tennis, boxing, gymnastics, swimming and golf are also popular. At the 29th Olympic Games in Beijing, Kazakhstan’s athletes won a total of 13 medals – two gold, four silver and seven bronze. The country claimed gold medals in weighlifting and welterweight boxing; silver in judo, freestyle wrestling and weightlifting; and bronze for Greek-Roman wrestling, weightlifting, freestyle wrestling, boxing and tae kwon do. Kazakhstan has consequently been ranked 29th among the 205 competing countries. Since its independence, the country has won an incredible 43 medals – including 11 gold. The Kazakh delegation for the Olympics in Beijing consisted of 70 female and 62 male athletes winning 132 qualifying licenses in 22 (out of 41) sports. The delegation included athletes from all 16 administrative territories of the Republic – and from 11 separate ethnic groups. Kazakhstan, including President Nazarbayev, led a delegation of 200 officials to Beijing. For the first time ever, the 2011 Asian Winter Games were held in Central Asia – and Kazakhstan made history as the host. From 30 January to 6 February that year,

some 1,500 athletes from 27 Asian countries poured into Kazakhstan and competed for a record 69 sets of medals. The Asian Games, which like the Olympics is divided into summer and winter competitions, has become the second-largest sporting event in the world. A reported 2,000 journalists and 10,000 foreign visitors came to Kazakhstan to watch the competitions, all of which were broadcast live around the globe. In bottomline terms, no international sporting event of comparable magnitude has ever been held in Central Asia. Kazakhstan also made history as the first country to simultaneously host The Asian Games in two cities – Astana and Almaty. But Kazakhstan did not only make history as the host – Kazakh athletes were absolutely dominant. Team Kazakhstan topped all countries with a commanding 70 medals, including 32 gold, 21 silver and 17 bronze. Perennial powerhouse Japan came in second with 54 medals (13 gold, 24 silver, 17 bronze), while South Korea came in third with 38 medals (13 gold, 12 silver and 13 bronze). Kazakhstan aimed high and cut no corners in its preparation for presenting the Games. No less than $1.65 billion was spent on construction and preparation to host the event. But much of the investment was made in facilities that will have a lasting impact on and a strategic value to the country’s social and economic development. Making the country a respected and familiar venue for international sporting competitions of every kind fits well in the Kazakh government’s ‘multi-vector’ diplomacy efforts, and is an important element of its broader international relations goals.

Kazakhstan boxer Serik Sapiyev celebrates winning gold in the welter (69kg) category at the London 2012 Olympic Games

Kazakhstan country profile 2012

110

culture and traditions

Cinema Kazakhstan has a strong cinematic tradition: the first Kazakh films date back to the beginning of the 20th century. These were mainly short propaganda films, created by Russian directors and known as ‘agitfilms’. The first Kazakh full-length feature, Amangeldy by Moisey Levin, was made in 1938 and was also the first film with sound. It has a narrative pattern typical of Central Asian cinema, which focuses on strong and heroic characters. Other notable early films include The Land of the Fathers by Zemlya Ostov, The Balcony by Kalykbek Salykov and Gift to Stalin and The Island of Rebirth by Rustem Abdrashitov. In recent years, fast-growing Kazakh cinema is positively affected by economic growth. Kazakhstan has submitted six films to be considered for the Academy Awards. Since 2006, Kazakhstan has submitted a film every year (Fall of Otrar in 1992, Nomad in 2006, Mongol 2007, Tulpan 2008 and Kelin 2009 and Strayed 2010). Mongol was an Oscar nominee and Kelin made a shortlist. From 27 June to 1 July 2010, Astana hosted the First Astana International Action Film Festival, which was attended by many international stars and producers, including Dolph Lundgren, Hilary Swank, Harvey Weinstein and Mike Tyson. The event was organized by

The Land of the Fathers (1966)

by Shaken Ajmanov A year after the end of the war, an old Kazakh man and his grandson set off to retrieve the body of a soldier – the old man’s son – from a rural cemetery near Leningrad in order to rebury him in his native land. However, when they reach the tomb they learn that the old man’s son lies there with his friends’ bodies. So the pair decide not to disturb his resting place, understanding that national grief and the national feat brought all of the people closer together.

Revenge (1989)

by Yermek Shinarbayev In the beginning of the 1940s, hundreds of thousands of Koreans who had lived in the Russian Far East since the 19th century were forcibly displaced overnight on Stalin’s orders. The Korean diaspora in Kazakhstan has been a forbidden topic for many years. Revenge is the first film telling the story of their tragedy.

The Road (1992)

by Darejan Omirbaev A film director takes a trip to visit his sick mother, leaving his wife and son in Almaty. The audience is exposed to his thoughts and encounters along the way.

Kazakhstan country profile 2012

The Gift to Stalin (2008), directed by Rustem Abdrashitov

Timur Bekmambetov, a Kazakh Hollywood producer of internationally famous movies such as Night Watch and Wanted, which starred Angelina Jolie. It is no coincidence that internationally famous producer Steven Jaffe was appointed as the Honorary Consul of Kazakhstan in Los Angeles – he is already making contributions to the development of Kazakh cinema as a Hollywood director. His multifaceted career in film has included being producer, executive producer, writer and/or second unit director on such films as Ghost, Star Trek VI, Strange Days and K19: The Widowmaker.

Highway (2001)

by Sergei Dvortsevoy Kazakhstan is seen through the eyes of a traveling circus.

My Brother Silk Road (2001)

by Marat Sarulu Filmed in Kazakhstan and Kyrgyzstan, four village children embark on a difficult journey through the steppe to the railroad, which lies on the path of the ancient Silk Route. A train meanders down the mountain and, following an argument, an artist is unceremoniously thrown off a carriage and meets the children...

Leila’s Prayer (2002)

by Satybaldy Narymbetov A powerful drama portraying a young girl living in the Semey region in the north of Kazakhstan, where the Soviet regime carried out 467 nuclear tests at a devastating cost to the local environment.

Little Men (2003)

by Nariman Turebayev Subtle comedy about the post-Soviet generation in Kazakhstan, full of up-tempo music and slapstick humor.

culture and traditions

Bek and Max, two slackers, share an apartment and the same bleak economic prospects. When naive Bek falls in love, philanderer Max decides to teach him about women.

The Hunter (2004)

by Serik Aprimov An allegory about the tensions between the traditional and the new in Kazakh society. It features a young boy who is brought up by his stepmother and a nomadic hunter.

Schizo (2004)

Writer/director Gulshat Omarova’s debut A coming-of-age film about a 15-year-old boy growing up in Kazakhstan in the early 1990s.

Nomad (2006)

by Ivan Passer A product of international cooperation between the Kazakh movie industry and Hollywood, among others. The epic film is about Kazakhstan’s fight for survival against Dzhungar invaders in the 18th century.

Ulzhan (2007)

by Volker Schloendorff Frenchman Charles decides to leave his homeland and head east. When his car breaks down in Kazakhstan, he decides to travel on foot. Destitute but happy, he wanders the steppes of Central Asia.

Racketeer (2007)

by Akhan Satayev An action blockbuster set in the post-Soviet 1990s. A young boxer decides to carve a new path for himself by diving straight into the underbelly of Almaty’s mafia.

Mongol (2008)

by Sergei Bodrov A film about the incredible destiny of Gengis Khan - or to give him his true name, Temudgin - the legendary chief of the Mongolian armed forces.

Tulpan (2008)

by Sergei Dvortsevoy After serving in the marines, Asa returns to the steppes to live with his sister and brother-in-law, a stockbreeder of sheep. Asa dreams of a simple life. He decides that he wants to make a woman called Marie Tulpan his wife. But she does not want him.

111

The Gift to Stalin (2008)

by Rustem Abdrashitov The story of a Jewish boy who, in the late 1940s, was saved from the horrors of Stalin’s gulag by a Kazakh war veteran. The film is set in Central Kazakhstan, where the Stalinist regime was preparing to test the first Soviet nuclear bomb.

Native Dancer (2008)

by Gulshat Omarova Aidai the folk healer uses mysterious powers to cure the sick and to give infertile couples children. As capitalist forces begin to encroach on tradition, she has to leave her land because the location is suitable for a filling station. A battle between supernatural good and earthly evil ensues. Native Dancer evokes the mysticism of fantasy and the thrills of a gangster film. It features Neisipkul Omarbekova, a real-life Kazakh witch doctor, in the title role.

Strayed (2009)

by Akhan Satayev A psychological thriller about a man who goes astray on the vast steppe of Kazakhstan. Through discussions with the devil, he realizes that he not only went astray physically on the road, but also in his life, as he slowly got involved with drug trafficking.

Kelin (2009)

by Ermek Tursunov Told in beautiful and poetic images without a word of dialogue, young love struggles to survive in the face of uncontrollable external factors. Shortlisted for Best Foreign Language Film in the 2009 Academy Awards.

Liquidator (2011)

by Akhan Satayev The story of a bodyguard who uncovers foul play in his brother’s untimely death. Actor Vinnie Jones plays a mute assassin on assignment in Kazakhstan. Jones brings solid credentials as an on-screen thug with appearances in Guy Ritchie’s Lock, Stock and Two Smoking Barrels.

Myn Bala (2011)

by Akhan Satayev The tale of Kazakh boys who battled against a Dzhungar tribe. The main character, a courageous teenager named Sartai, gathers an army of 1,000 boys to fight the enemy. Overcoming the loss of family, having felt the magic of first love and tested the bounds of true friendship, he becomes one of the greatest heroes of his nation.

Kazakhstan country profile 2012

112

culture and traditions

Architecture Kazakhstan is full of architectural masterpieces reflecting its varied history. Southern Kazakhstan is home to a number of important Islamic buildings, including the Arystan Bab Mosque (built in the 12th century), located near the ancient city of Otrar and the villages of Talapty and Kogam, the 14th century Hodja Ahmed Yassawi Mausoleum in the city of Turkestan and the 10th century Aisha-Bibi Mausoleum in the city of Taraz. Many new mosques have been built since independence.

In the new capital, Astana, buildings were constructed or renovated specifically for the government’s move there in 1997. They include a modern complex in the city’s main square that serves as the government headquarters. The cities of Kazakhstan also contain examples of Russian architecture, such as the Zenkov Cathedral, which was built in 1904 in Almaty. The architecture of the Soviet period mostly took the form of drab, functional buildings.

Khan Shatyr (Royal Marquee) is a giant transparent tent in Astana. The architectural project was unveiled by the President of Kazakhstan, Nursultan Nazarbayev, on 9 December 2006. The 150m-high tent has a 200m elliptical base covering 140,000 square meters. Underneath the tent, an area larger than 10 football stadiums, is an urban-scale internal park, shopping and entertainment venue with squares and cobbled streets, a boating river, shopping centre, minigolf and indoor beach resort. The roof is constructed from ethylene tetrafluoroethylene (ETFE) cushions suspended on a network of cables strung from a central spire. The transparent material allows sunlight through which, in conjunction with air heating and cooling systems, is designed to maintain an internal temperature between 15-30°C in the main space and 19-24°C in the retail units, while outside the temperature varies between -35 to +35°C across the year.

The Palace of Peace and Reconciliation (also translated as the Pyramid of Peace and Accord) is a 77m-high building in Astana. The structure was built by Sembol Construction at a cost of KZT 8.74 billion ($58.28 million) and opened in late 2006. It was designed by the British architects Foster and Partners. The Pyramid was specially constructed to host the Congress of Leaders of World and Traditional Religions. A 1,500-seat opera house is built into the lower levels (source: Wikipedia).

Kazakhstan country profile 2012

Bayterek (tall poplar tree) is a monument and observation tower in Astana, the capital of Kazakhstan. A tourist attraction popular with foreign visitors and native Kazakhs alike, it is a common symbol of the city and denotes Astana’s new status as the country’s capital. The monument is meant to embody a folk tale about a mythical tree of life and a magic bird of happiness: the bird, named Samruk, had laid its egg in the crevice between two branches of a poplar tree. The 105m structure consists of a narrow cylindrical shaft enmeshed in flaring white branch-like girders, widening towards the top (the “tree”), where a gold-mirrored, 22m-diameter sphere (the “egg”) containing the observation deck is supported. The altitude of the deck is 97m, symbolizing the year in which Astana became Kazakhstan’s new capital (1997). From its height it is possible to see much of the newly built city. In addition to the observation platform, the tower contains a large aquarium and an art gallery. Astana citizens jokingly refer to Bayterek as “Chupa Chups” because of its similarity to the popular lollipop (source: Wikipedia).

culture and traditions

The Ascension Cathedral, also known as Zenkov Cathedral,，is a Russian Orthodox cathedral located in Panfilov Park in Almaty. Completed in 1907, it is the second tallest wooden building in the world. It survived the 1911 earthquake with minimal damage. After the Russian Revolution the cathedral was used to house the Central State Museum of the Kazakh Soviet Socialist Republic. From 1930 to 1940 it was used by important public organizations. The first radio transmitters in Almaty were situated in the cathedral’s belfry. In May 1995 control of the cathedral was returned to the Russian Orthodox Church and it was reopened for religious services in 1997 (source: Wikipedia).

113

The 28 Panfilov Heroes Memorial Park honours the men from Kazakhstan who died on the battlefields of the Second World War fighting against Nazi fascism. The monument depicts 28 soldiers of an Almaty infantry unit who died fighting off Nazi tanks in a village outside Moscow in 1941. The unit was commanded by General Panfilov. There is an ‘eternal flame’ by the war memorial where schoolchildren put flowers on the last day of school, and newlyweds also come to have their photos taken there (sources: Wikitravel and www.almaty-hotels.net).

Abai Kazakh State Academic opera and ballet theatre opened with a performance of Aiman-Sholpan with a libretto by Muhtar Auezov. Its success left a long-lasting impact on cultural development and soon the entire country learned of the bright new theatre. Presently, it is the largest theatre in Eurasia. Its artistic team includes experienced stage masters and young talents, winners of various prestigious international competitions. It gained world recognition and guests from all over the globe, including the US, Germany, Italy, Japan and China, frequent the theater. It also hosts an annual international festival of opera and ballet.

Hotel Kazakhstan is a famous landmark building in Almaty and serves as a symbol of the city. It is 129.8 meters tall. The building was erected in 1970. Located in downtown, in the heart of the cultural and business center of the city, it is ideally situated for sightseeing, nightlife, banking and the city administration. It is a 20-minute drive from the airport. The 26-storey quake-safe construction was recently granted listed status by the National Heritage Fund. The hotel offers excellent views of picturesque Alatau mountain.

Kazakhstan country profile 2012

114

culture and traditions

Cuisine Traditional Kazakh food is similar to that of the Mediterranean in its use of rice, savory seasonings, vegetables, yogurt and grilled meats. The nomadic diet is heavy in lamb, dairy products and bread, while in the northern cities cuisine is heavily influenced by Russia. A popular dish is qazy, a horsemeat sausage served up with cold noodles, or the sweet plov, made with dried apricots, raisins and prunes. Food in large towns and cities is similar to that of any Western urban area. POPULAR TRADITIONAL DISHES IN KAZAKHSTAN Beshbarmak: The national dish in Kazakhstan. It is locally called ‘et tamak’ – ‘meat dish’. The term Beshbarmak means ‘five fingers’, because the dish used to be eaten with one’s hands. The boiled meat is usually diced with knives, often mixed with boiled noodles. It is usually served in a big, round dish. The eating of beshbarmak is accompanied by an original ritual. The meat itself is served in large pieces. Beshbarmak is usually served with sorpa – mutton broth in bowls called kese. Domalak baursak: (delicious Kazakh-style donuts) Before serving, baursaks are laid out on a plate and covered with sour cream and castor sugar. Kuyrdak: (Kazakh equivalent of haggis) Kuyrdak is served in soup-plates and covered with greens. It is usually served with taba-nan (wheat bread) or fresh bread.

Manty with meat: (Turkic dumplings with organic meat) The manty are served on a plate, covered with black pepper. Sometimes they are put in deep bowls. Portions are typically three to four pieces and covered with broth.

Kazakhstan country profile 2012

Samsa: (traditional Kazakh pasty) Samsa is usually laid out on hot forms and sprinkled with water, then baked in an oven at 300°C for seven minutes.

culture and traditions

115

Music CLASSICAL Kazakhstan is home to the Kazakh State Kurmangazy Orchestra of Folk Instruments, the Kazakh State Philharmonic Orchestra, the Kazakh National Opera and the Kazakh State Chamber Orchestra. The folk instrument orchestra was named after Kurmangazy, a famous composer and dombra player from the 19th century. Other Kazakh composers include Tattimbet, Sougur, Almaz Serkebayev, Ties Kazhgaliev, Makhambet and Bayserke. Marat Bissengaliev, Janiya Aubakirova and Aiman Mussakhajaeva are famous musicians who put Kazakhstan on the musical map. Pictured is Aiman Mussakhajaeva, violinist and founder of the Kazakh State Chamber Orchestra.

TRADITIONAL Kazakh music is nomadic and rural, and is closely related to Uzbek and Kyrgyz folk forms. Traveling bards, healers and mystics called akyn are popular, and usually sing either unaccompanied or with a string instrument, especially a dombra or kobyz. Traditional Kazakh music includes ensembles using instruments like the kobyz (qobuz) or dombra, as well as kyl-kobyz, sherter, sybyzgy, saszyrnay and shankobyz; the most common instrumental traditions are called kobizovaia, sibiz-govaia, and dombrovaia. Many songs are connected to ancient mythology and folk religious beliefs (kui), while others were composed after the rise of authored works (kuishi) by early songwriters (jirau) like Mahmud Kashgari, Kaztugan, Dospanbet, Shalkiiz and Aktamberdi. The kuishi tradition is said to have peaked in the 19th century when composers like Kurmangazy and Birjan and singers like Ahan were active. In the 20th century, the first major star was the singer Mayra Shamsutdinova. Pictured is Ramazan Stamgazin, leading soloist of the Kazakh State Kurmangazy Orchestra of Folk Instruments.

MODERN Pop music in Kazakhstan has evolved since 2000. Local record labels are signing more young musicians than ever. Talent searches such as the project Anshi Balapan and Pop Idol spin-off SuperStar KZ, broadcast weekly on Kazakh TV, have always been an integral part of the Kazakh pop-music industry. Popular artists include Madina Sadvaqasova, Almas Kishkenbayev, Roman Kim, Makpal Isabekova (pictured), Kayrat Tuntekov, Rakhat Turlykhanov, NN Bek, Nurlan & Murat, A-Studio, Musicola, Rinâ&#x20AC;&#x2122;Go, Persy, China Town, Billy Sexcrime, SuperStar, and Urker. Throughout 2010, the Jazzystan Festival featured exhibitions, musical performances, a week of Kazakh cinema, lectures on Kazakhstan and much more. Please follow the Embassy of Kazakhstan website (www.kazakhembus.com) and the Smithsonian newsletters for more information.

Kazakhstan country profile 2012

116

culture and traditions

Education In Kazakhstan, classrooms at the cutting edge A national commitment to integrate technology and education When the Republic of Kazakhstan declared its independence in 1991, it inherited a Soviet education system ill equipped for the 21st century. Few schools had a functioning computer, and with the economy in shambles – the result, in large part, of a sudden collapse in demand for the country’s vast reserves of raw materials – public financing for education fell by more than half. For Kazakh students, it seemed, the digital age would have to wait. Two decades later, a transformed Kazakhstan has emerged as the most prosperous country in Central Asia, with a fast-growing free market economy, more than $40 billion in foreign investment and a stunning new capital city, Astana – all of it built at the behest of one Nursultan Nazarbayev, the country’s first and only president. Buoyed by high energy prices, the Kazakh economy, now larger than those of all the other Central Asian states combined, continues to grow. But as Nazarbayev well knows, the country’s future rests as much on its ability to educate its people as it does on the amount of oil flowing from its fields or the conspicuousness of its gleaming capital. Which is why, even as he adds to Astana’s impressive skyline, the president has his sights set on a far loftier, if less visible, goal: a comprehensive education overhaul. Indeed, having earmarked billions of dollars for education reform, Nazarbayev wants to turn Kazakh classrooms into high-tech engines of national progress – modern refineries of the raw talent needed to power the country’s industrial development and sustain its ever-increasing integration into the global economy. And nowhere is that effort more evident than in the thousands of secondary schools targeted for a technological upgrade by the so-called Presidential Interactive Learning and Teaching Initiative (PILTI). Launched in 2007 by former Minister of Education and Science Zhanseit Tuimebayev, PILTI aims to enhance the teaching of science, technology, engineering and math (STEM) by providing schools with a ‘21st century learning environment’. To do that, education officials have assembled a team of the world’s top suppliers of innovative education products, including members of the UK consortium TVET UK and the California-based firm Pasco Scientific. The latter, a global leader in developing technologybased solutions for hands-on science education with clients in more than 100 countries, began supplying Kazakh high schools with tools like its path-breaking Xplorer GLX in 2008. The world’s first stand-alone graphing logger, the wireless, hand-held device allows students and teachers to capture, analyze, annotate, store

Kazakhstan country profile 2012

and print data inside or outside the classroom and to display the results on a computer. For an even more detailed picture of the data, students can utilize Pasco’s powerful DataStudio software. Two years later, Pasco unveiled the Russian and Kazakh language versions of its award-winning SPARK Science Learning System, an all-in-one mobile device with full-color touch screens and 70 different sensors for analyzing everything from cellular respiration to advanced optics. Recognized as a potential education ‘game-changer’ by EdNET, the tool is powered by Pasco’s SPARKvue software, winner of the 2010 Worlddidac Award for Excellence, which allows users to access the full range of SPARK capabilities on any computer. Having initially focused on schools in urban centers like Astana and the country’s former capital (still its largest city), Almaty, Pasco, in collaboration with its Kazakh partner,

The world’s first stand-alone graphing logger, the Xplorer GLX allows students and teachers to capture, analyze, annotate, store and print data inside or outside the classroom and to display the results on a computer Nurecom, is now poised to raise the quality of science education in Kazakhstan’s roughly 4,300 rural schools. And Pasco isn’t alone. The UK-based company LJ Create, a maker of ‘blended-learning teaching resources’, has worked with Nurecom to outfit some 4,000 ‘interactive classrooms’ with its ‘mobile Science Cart’, a kind of rolling laboratory with a collection of digital presentation tools linked to an on-board computer and several nifty simulations, such as a virtual microscope and a model eye. Another UK-based company, Promethean, has complemented those contributions with its state-of-theart whiteboards, among them the ActivBoard 500 Pro, an interactive display featuring intuitive multi-touch functionality designed to engage students and promote

culture and traditions

117

President Nursultan Nazarbayev plans a comprehensive education overhaul to raise Kazakhstan’s socio-economic status and assure its future success

collaborative learning; and ActivInspire, its teaching and curriculum-development software. Together, these form the heart of Promethean’s award-winning ActivClassroom platform, an integrated suite of solutions that has been shown to significantly raise achievement levels. While Kazakhstan’s investments in these and other tools have primarily targeted the teaching of STEM – all of which are critical to the continued development of the country’s oil and gas sector – the government has also sought to exploit new technologies capable of enhancing the study of foreign languages, particularly Russian and English. With his so-called ‘multi-vector foreign policy’, Nazarbayev has worked to advance Kazakhstan’s national interests by forging equally strong ties with both neighboring China and Russia and the United States – and good communication, he believes, is key to achieving this end. In 2010, Nurecom partner Sanako answered the president’s call. A Finnish firm specializing in teacher-led language teaching software, Sanako installed its Study 1200 software in some 450 Kazakh classrooms. According to Sanako, Study 1200 can transform any computer lab into a ‘modern language-learning environment’, allowing teachers to conduct lessons combining speaking, listening and writing exercises while also monitoring and recording students’ progress. And by using the Sanako Study Examination module, Kazakh language teachers can now quickly and easily create dynamic tests incorporating a variety of multimedia content. In the less than five years since its launch, PILTI has facilitated the installation of new science and language

teaching technologies in more than 20,000 interactive classrooms across the country. Meanwhile, more than 40,000 Kazakh teachers have been trained in using the new digital tools with innovative pedagogies that place an emphasis on student participation. It’s an impressive feat, that would hardly have been possible without Sabak.KZ. A special web-based system, Sabak.KZ offers distance learning through a virtual classroom furnished with a suite of online content, including lessons in chemistry, biology and physics (all of them available in Russian, Kazakh and English). The president himself delivered the site’s first online lecture at the start of the 2007 school year. Since then, Sabak.KZ has grown exponentially, recording some 250,000 visitors last year alone. Of those, 41,000 participated in online lessons and more than 180,000 lessons were utilized by Kazakh teachers. In fact, so successful has the system been that the new Nazarbayev Intellectual Schools (NIS), a network of elite secondary institutions directly overseen by the president’s office, have made Sabak.KZ a centerpiece of their math-and-science-focused curriculum. Each day features a new virtual lesson taught by one of the schools’ resident experts, and dozens of recorded lessons stored on the site are frequently accessed offline. Today, six NIS are currently operational, including the network’s flagship school in Astana, while another 14 are slated for construction over the next five years. Professional and vocational schools in Kazakhstan are also beginning to take advantage of technological advances to improve their offerings. Several of the country’s top

Kazakhstan country profile 2012

118

culture and traditions

automotive training facilities, for example, recently acquired new software designed by the UK company LJ Create to enhance the teaching of everything from engine management systems to automotive electronics. “Today, the internet plays a significant role in education,” says Azamatkhan Amirtayev, founder and director of the Kazakhstan Online Business School (KOBS), the first company to offer free Kazakh language business instruction online. “Books, lessons and lectures are increasingly available online, and in the US, degrees from universities can be earned online. The KOBS will soon provide the same.” “The 21st century imposes high requirements for the management of a modern state,” Nazarbayev said last January in his 16th State of the Nation address. Stressing the importance of Kazakhstan’s human capital to raising its socio-economic status, he called for the continued modernization of the education sector, which, he said, “should provide young people not only with knowledge,

In an effort to attain an educational quality on par with the highest international standards, Nazarbayev University has forged official partnerships with a number of the world’s top-ranked schools but also with the ability to use it” and cited, as one successful example of efforts made to date, the new university that bears his name. With its mission to accelerate the development of education and research across Kazakhstan and to prepare the country’s next generation of technical and scientific elites, Nazarbayev University is at once a vision of the future and a vehicle for getting there. Opened in the fall of 2010 on a sprawling campus in the heart of Astana, the university houses undergraduate schools of engineering, science and technology, humanities and social sciences, and pre-medicine. It also boasts state-of-the-art research centers devoted to life sciences, energy, and education; the country’s largest English-language library; graduate programs in business and public policy; and a faculty made up almost entirely of professors from foreign countries. Those professors, all of them distinguished experts in their respective fields, teach classes exclusively in English to the

Kazakhstan country profile 2012

university’s approximately 1,000 students – just a fraction of the 20,000 per year officials aim to admit by the end of the decade – and represent important links with prestigious schools abroad. Indeed, in an effort to attain an educational quality on a par with the highest international standards, the university has forged official partnerships with a number of the world’s top-ranked schools, including University College London, the National University of Singapore, Harvard University, Carnegie Mellon University, the University of Wisconsin-Madison, the University of Pennsylvania and the University of Pittsburgh. Partnerships have also been established with two US Department of Energy national laboratories: the Lawrence Berkeley National Laboratory at the University of California and Argonne National Laboratory at the University of Chicago. It’s a bold plan, and it builds on the long-standing success of what had, for many years, been the country’s most innovative and forward-looking educational endeavor: the Bolashak Scholars Program. First launched in 1993, the government-funded program sends highachieving Kazakh students abroad for study in Western universities, most of them to the US. All of the students’ expenses are paid on the condition that they return to Kazakhstan with their new knowledge and skill sets and work there for a minimum of five years. And although the program is being phased out – and made unnecessary, say officials, by the new university – it’s already produced more than 6,000 alumni, nearly all of whom are now back in Kazakhstan, putting their skills into practice. Those partnerships also bolster the university’s bid to make Astana the leading center of research and education in all of Eurasia – an extremely ambitious goal for any city, and all the more for one far younger than the vast majority of its one million inhabitants. Astana may still be a work in progress, but its progress has been impressive, and its goal of educational excellence is in keeping with the country’s larger aspirations: to become one of the world’s 50 most competitive economies by 2015. Last May, Astana took another step in that direction when it played host to the first international exhibition of technologies for education and professional training organized in Kazakhstan. Jointly sponsored by the Ministry of Education and Science and Worlddidac, a global trade association for companies providing products for education at all levels, the three-day event took place in Korme, Astana’s largest exhibition center, where more than 150 companies from 20 countries displayed new teaching tools to thousands of visitors from around the world. “This [conference] is confirmation of the fact that the international public appraises highly the political and economic development of our state,” Kazakh Minister of Education and Science BT Zhumagulov told attendees on the opening day, before listing the country’s recent achievements in education reform, including the fact

culture and traditions

that more than half of all educational organizations now have interactive classrooms, almost all have access to the internet, and funding for education had increased by more than a quarter during the last year alone.

119

“Today,” said Zhumagulov, “we take the fourth position among 129 countries [with respect to] education development.” For all Kazakh people, that means tomorrow will be even better.

Review of the education system After its independence from the Soviet Union, Kazakhstan was hit by a major economic depression that cut ‘public financing’ for education in the country. It dropped from six percent of GDP in 1991 to about three percent in 1994, before rising to four percent in 1999. Elementaryand secondary-school teachers were severly underpaid; in 1993 more than 30,000 teachers (or about one seventh of the 1990 teaching staff) left education, many of them to seek more lucrative employment. In 1994, Kazakhstan had 8,575 elementary and secondary schools (grades one through twelve) attended by approximately 3.2 million students, and 244 specialized secondary schools with about 222,000 students. In 1992, about 51 percent of eligible children were attending some 8,500 preschools in Kazakhstan. In 1994, some 272,100 students were enrolled in the republic’s 61 institutes of higher learning. Fifty-four percent of the students were Kazakh, and 31 percent were Russian. Kazakhstan’s 1995 Constitution provides mandatory, public secondary-school education. Citizens compete for institutions of higher learning. Private education is increasing in the country, with about five percent of students enrolled in private schools, which are largely under arbitrary state control. Primary school

Primary school in Kazakhstan starts at age six and runs from grades one to five. Classes typically run in two sessions, from 8am until 1pm and from 1pm until 5pm, with students either going to class in the morning or in the afternoon. All primary schools are state-owned; access to primary and secondary education is a constitutionally protected right. Primary school is provided free to all citizens and residents of Kazakhstan and parents typically only pay for extracurricular activities, such as sports or music programs. Parents sometimes pay for lab equipment or other special equipment. Lower secondary school

Students continue in lower secondary school from grades five through nine. This roughly corresponds to junior-high school, or middle school, in the US. Typically a student in year eight is 14-15 years old. The general education curriculum covers subjects like literature, students’ first

language (Russian or Kazakh, depending on the language of the school in general), history, physics, mathematics, biology, chemistry, foreign language and so on. Higher secondary school

Once leaving lower secondary school, there are three options available. Students are free to choose any track of higher secondary education but are required to pursue one. Graduates of all three are eligible to enter university. The first track is a general secondary school, which covers grades 10-11 and provides general education on a variety of subjects. In addition, there are two curriculum tracks for vocational education: initial vocational education, which is provided by training schools and lycees, and secondary vocational education, provided by colleges and trade schools. Initial training schools are designed to train students in a skilled profession. The program is usually two or three years in length (typically ages 16–18), but some professional training requires a four-year program. Students who graduate can go on to college for advanced vocational training or attend university. The state provides education costs from the budget. Colleges provide both academic general education and advanced vocational education. If licensed, they can also provide initial vocational education. Programs last for three or four years (grades 10, 12, 13). Accelerated programs exist for students who have already completed both general secondary education and initial vocational training in the same field. Graduates may go on to university or may begin working. As of the 1999 Budget Law, colleges are stateowned and self-financed. In principle, however, all compulsory education (primary and secondary) is provided free of charge. The curriculum for both primary and secondary school is established by the Ministry of Education, with little choice left up to the individual schools. Textbooks are sold in bookstores throughout the country and are purchased by the students themselves. Like primary school, secondary school is subsidized by the government and parents only pay for extracurricular activities and sometimes lab equipment or other special equipment.

Kazakhstan country profile 2012

120

culture and traditions

Tertiary institutions

The universities, following the Russian system, focus entirely on teaching and do not engage in research. Students who are accepted to university at any level apply under a specific major, and the curriculum is set by the university (according to State legislation) for each major. For example, economics majors will all study the same courses in the same order, separate from English majors, who have a different curriculum. Some courses are required. Students may switch majors but typically classes do not transfer, so students are expected to re-enter in the new major as a new first-year enrollee. The government is currently pursuing a program to adopt a credit system that would allow students to study abroad more easily. It is also considering expanding the curriculum to include electives and student-chosen courses. There are four levels of tertiary education in Kazakhstan: ■■ Bachelor’s degree, which is typically a four-year degree ■■ Specialist degree, which is typically a five-year degree and more intensive than the bachelor’s ■■ Master’s degree, a two-year degree, roughly corresponding to the Western masters; ■■ Doctoral degree, which is typically a five-year program. Universities are usually headed by a rector, appointed by the President of Kazakhstan, who wields considerable authority over the institution, approving all decisions including curriculum, personnel and admission. Kazakhstan universities are more centralized than their Western counterparts. The top two universities in Kazakhstan are al-Farabi Kazakh National University in Almaty and Eurasian National University, located in Astana. Karaganda State University is also well regarded. In addition, there are a few international universities, such as KIMEP, which is a joint program – 40 percent owned by the government of Kazakhstan, but education is based on the Western system. The Kazakh-British Technical University and the Kazakh-American University represent joint projects between Kazakhstan and the UK and the US, respectively. In all three institutions, the language of instruction is English. The University of Central Asia, founded jointly by the Governments of Kazakhstan, Kyrgyzstan and Tajikistan and by the Aga Khan, is affiliated with the Aga Khan Development Network. Private universities, typically for-profit institutions, are subject to the same regulations regarding curriculum but are free to set tuition and salaries as they see fit. Public universities are subject to the same regulations as other government-owned institutions as relates to fees and salaries, administrative structure, contracting and subcontracting, and ownership of property. State-owned universities receive funding if their enrolment reaches 86,000 students or 34 percent. A small number of universities, such as art academies or international universities, are financed through a budget line in the Republic budget.

Kazakhstan country profile 2012

KAZAKHSTAN’S EDUCATION AND TALENT ON the GLOBAL MAP ■■

■■

■■ ■■ ■■

■■

85 percent of the population aged 5-24 years are enrolled in education 30 percent of citizens are involved in education and science, which includes: 4.4 million students 405,000 employed teachers and scientists 4,568 preschools and 7,576 secondary schools as of 1 November 2009 From 2001 to 2008, 1,776 preschool education facilities were in operation From 2004 to 2008, 263 new schools were built, including 170 in rural areas (Source: Ministry of Education of the Republic of Kazakhstan) At the beginning of 2009, 143 higher educational establishments were in operation in the country, including 51 state and 92 private educational facilities. The total number of students in 2008 was 768,000, 25.2 percent of whom received higher professional education. 73.8 percent received bachelor’s degrees, and 1.0 percent received higher scientific and pedagogical education Kazakhstan was ranked first in Asia by the Education for All Development Index, 2008 (Source: Asian Development Bank) Kazakhstan ranked first in the world out of 129 countries, followed by Japan, Germany and the UK, according to the Education for All Development Index (EDI) (Source: Education for All Global Monitoring, Report 2009, UNESCO) Kazakhstan ranked 10th in the world in adult literacy (ages 15 and above), with 99.6 percent (Source: Human Development Report 2009, UNDP) The Trends in International Mathematics and Science Study, TIMSS 2007 (a project by the International Association for the Evaluation of Educational Achievement, directed by the TIMSS & PIRLS International Study Center at Boston College, conducted every four years among fourth and eighth grade students) showed that: In Mathematics (fourth grade) – Kazakhstan students ranked fifth in the world; In Science achievement (fourth grade) – Kazakhstan students ranked11th in the world; The International Mathematical Olympiad (World Championship Mathematics Olympiad for high-school students, held annually), reported that: Kazakh students’ team ranked 27th out of 104 teams at the 2009 Olympiad, held in Germany The International Mathematical Olympiad of 2010 was held in Astana, at which Kazakhstan ranked fifth out of 105 participating countries, after China, Russia, USA and South Korea

culture and traditions

121

‘Bolashak’ (future) scholarship

Participants in the Bolashak program, which sends Kazakh students to study at leading institutions overseas

Reforming the educational system by opening it up to global knowledge, experience, scientific and technological achievements – and by training highly qualified professionals with the best managerial skills – always helps to transform a society into a progressive and democratic one. Post-Second World War Japan, Turkey and Hong Kong are just some of the convincing historical examples of economically and politically viable states that have benefited from having advanced educational systems. The leadership of the newly formed Republic of Kazakhstan recognized that in 1991, when it was faced with economic turmoil, social inefficiency and a legacy of environmental disasters left by the Soviet Union. With a huge stockpile of nuclear weapons, the leadership of Kazakhstan had a choice: empowerment through force and dictatorship, or prosperity through disarmament and democracy. Kazakhstan President Nursultan Nazarbayev chose the latter, and today Kazakhstan is emerging as a player in the global economy, and an advocate of regional and world stability. In 1993, Kazakhstan was the first Central Asian country to launch a presidential scholarship program, ‘Bolashak’, for international study. ‘Bolashak’, which means ‘The Future’ in Kazakh, speaks to the importance Kazakhstan puts on educating its youth at the best universities in the world. The Decree of President Nazarbayev on 9 November 1993 said: “In Kazakhstan’s

transition toward a market economy and the expansion of international contacts, there is an acute need for cadres with advanced western education, and so it is now necessary to send the most qualified youth to study in leading educational institutions in foreign countries.” The program is designed to train future leaders in business, international relations, law, science, engineering and other key fields. Upon completion of their programs, scholarship recipients return to Kazakhstan to perform government service for a period of five years. The rigorous criteria for Bolashak scholars and the highly competitive nature of the selection process ensure that only the best students, who represent Kazakhstan’s most promising young leaders, are selected. The Bolashak program is fully funded by the Government of Kazakhstan and overseen by the Ministry of Education and Science. This program is a top priority of President Nazarbayev as he looks to develop and modernize the country and move toward a full democracy. That is why it is not an accident that most Kazakh students are sent to be trained in the United States. “We are learning from the positive example of American democracy,” President Nazarbayev says. There was a clear understanding that Kazakhstan’s nascent democracy would not be sustained without a strong education system. Currently, 50 Bolashak scholars are successfully studying at leading US universities and have proven to be excellent students and representatives of Kazakhstan. Since 1994, hundreds of Kazakh students have successfully completed their Bachelor’s and Master’s degrees under the Bolashak scholarship program at the best Western universities; more than 400 students are graduates of leading US universities, including Harvard, Massachusetts Institute of Technology, Columbia, Duke, Georgetown, Emory, Carnegie Mellon, Indiana University, Vanderbilt and many others.

The rigorous criteria for Bolashak scholars and the highly competitive nature of the selection process ensure that only the best students, who represent Kazakhstan’s most promising young leaders, are selected Kazakhstan country profile 2012

122

culture and traditions

Nazarbayev University Vision ■■

To create a prestigious, highly regarded international university in Kazakhstan’s capital city, employing the best local and foreign professors to develop the country’s intellectual, scientific, technical and engineering elite.

Mission ■■

■■

national identity, the best international model of education, and science and research practice. ■■

■■

Contributing to Astana’s goal of becoming the center of science, education and culture in Eurasia. Advancing the science and educational system of Kazakhstan to international standards. By the decision of the President of the Republic of Kazakhstan, the New University of Astana will carry the name ‘Nazarbayev University’.

■■

History of the University ■■

■■

The New University is a very important national project that will have a global systematic effect on the development of our country and will benefit all the citizens of our country. The New University will be positioned to become a national brand by harmoniously combining

Kazakhstan country profile 2012

■■

International partners will assist in developing degree programs and a quality-assessment system of teaching. Specialties taught at the New University are determined by the priorities of the Kazakh economy. The University will prepare the best technical and engineering specialists for industries already developed in Kazakhstan. A range of programs will prepare research specialists in new fields, such as genetics, biochemistry and biophysics. We should have a clear understanding of the career development of each student for that. The strategy for the University’s development 2010-12 was approved on 17 October 2009 at the first meeting of the Board of Directors of JCS New University of Astana, chaired by K Massimov, the Prime Minister of the Republic of Kazakhstan. The academic and research policy of the University presumes that each school within it will have an international academic partner among the leading universities in the world with a strong research,

culture and traditions

123

The New University of Astana will give young Kazakhs the opportunity to receive a superior education. The highest standards apply to academic staff, facilities and equipment, methods of teaching and the level of research activities clinical and industrial base. This will allow Kazakhstan to integrate education, research and industries and help to achieve the objectives for the development of the country.

■■

Management ■■

■■

Realizing the New University of Astana project will give young Kazakhs the opportunity to receive a superior education. The highest standards apply to programs, academic staff, facilities and equipment, methods of teaching and the level of research activities.

Three research centers will be created within the project: Center of Life Sciences will undertake joint research projects with leading world research centers in the transplantation of organs, artificial heart and lungs, stem cells and age-prevention medicine. Center for Alternative Energy will focus on issues of renewable energy, physics and techniques of high energies. International Instrumentation Center will be an engineering center, laboratory base and constructor bureau. Strategic goals

The University’s goals are to: ■■ Form a new generation of professionals who are capable of creating and developing new trends in science and technology ■■ Create a model of integration of education, research and industry, promote sustainable development of the national economy and support knowledge-based economic diversification ■■ Build a culture of global awareness via an international curriculum and cooperative relationships with world institutions of higher education ■■ Create a modern technological infrastructure to provide a collaborative learning environment ■■ Deliver joint research projects with world-class universities’ scientific research centers ■■ Develop and maintain a strong professional community among the faculty and enhance the local capacity of teaching professionals

Enhance the national and global prestige of the New University of Astana

The Board of Directors is presided over by the Prime Minister. Its members are national government and business leaders. It is responsible for long-term and strategic planning and the overall development of the project. It supports and reviews the performance of the Executive Body and approves annual budgets. Members of the Board of Directors are appointed by Government Decree.

International Advisory Council

The International Advisory Council (IAC) provides advisory support work. The IAC is composed of highly respected scholars, researchers and academic leaders in addition to leaders from the public and private sector. Members of the Council will be selected on the basis of their leadership skills, expertise and experience in scientific, technical, business and academic domains. The Council will work on issues related to educational and research services provided at the initial stage, as well as other issues concerning the activities of the University. ■■

Faculty members ■■

■■

Employment of faculty members will be determined by a joint hiring process with our partner university and the New University of Astana. The best national and international researchers will be invited to work at the University, where they will be provided with all of the necessary resources for their creative activity. There was a signing of cooperation agreement between the New University of Astana and University College London (UCL). The Foundation program was scheduled to begin in September 2010. More than 50 teachers from University College London will be delivering classes for our Foundation program at the University.

Finance ■■

Effective financial policies will provide stability for the University and will help it to meet its future

Kazakhstan country profile 2012

124

■■

■■ ■■ ■■

■■

culture and traditions

objectives. In the long term, the financing of the University will be provided by the following sources: Financing of research and development by the state and industrial customers (specialized ministries and national companies) Investment income from the endowment fund Tuition payment Non-governmental and international organizations’ scholarships for fundamental research Donor assistance from the private sector, including the University’s alumni Additional services payment, which is provided by other organizations

■■

Infrastructure ■■

Partners ■■

■■

The New University of Astana cooperates with several leading universities ranked among the top 30 in the world. Students will have the opportunity to study abroad at the university of our academic partner for one semester and up to two years in some of our programs. Agreements on the development strategy of the New University of Astana were signed with the following partners: UCL (University College London) to set up the Foundation Program – the first year of undergraduate programs (basic education) PHMI (Partners Harvard Medical International Inc.) to set up the Medical School Duke University to set up the Graduate School of Business iCarnegie to set up the School of Natural Sciences

Nazarbayev University campus

Kazakhstan country profile 2012

University of Wisconsin-Madison to set up the School of Social Sciences and Humanities UPMC (University of Pittsburgh Medical Center) to set up the Center of Life Sciences UPenn (University of Pennsylvania) to set up the Center for Education Policy

■■

The architectural design of the New University is very modern and uses the latest in Information Technologies (IT). A significant feature is that all of the educational buildings are connected by a common axial atrium with internal passages, which creates the architectural unity of the complex. The laboratories and other buildings will be serviced through a round road surrounding the entire building. The New University building will come into operation in several stages.

Nine buildings are connected by a single atrium

Kazakhstan at a glance

125

Kazakhstan

Tourism

Kazakhstan by region

he Republic of Kazakhstan pays special attention to the development of tourism. It has signed tourism agreements with Turkey, Iran, Xinjang Uigur Autonomous Area of China, Moldova, Hungary, the State of Israel, Kyrgyzstan and Egypt. In 1993, the country became a full member of the World Tourism Organization. The agency in charge of state management of the tourism industry is the Ministry of Sports and Tourism. The law ‘On Tourism’ was enacted in 1992. It embraces virtually all types of tourism and specifies the legal, economic, social and organizational fundamentals of tourism activities. Kazakhstan provides for all varieties of tourism: cognitive, ethnic, ecological, rehabilitative and youthoriented. The country also offers entertainment and athletic activities such as hunting and equestrianism. There are more than 700 travel routes around the territory of Kazakhstan. The country is well known for its unique natural and geographic diversity.

South Kazakhstan

The Almaty, Jambyl, South Kazakhstan and Kyzylorda regions is an area rich with history and culture. It features famous medieval monuments and mausoleums, such as Aisha-Bibi, Karakhan, Babadzha-Khatun in Taraz and an architectural ensemble of Hodja Ahmed Yassawi in

Kazakhstan’s many striking landscapes include the Charyn Canyon

Kazakhstan country profile 2012

126

Kazakhstan at a glance

Turkestan. Other unique sights include the Scythian burial mounds in Semirechje (Almaty region). The area is also home to the world-famous space-vehicle launching site, Baikonur. The region offers opportunities for recreation, rehabilitation, hunting, skiing and skating, too. North Kazakhstan

Everything in the Kostanay, North Kazakhstan and Pavlodar regions – from the landscape to the climatic conditions – favors recreation. This area features the health resorts of Kokshetau, Bayan-aul, Muyaldy and the natural preserves of Kurgaldzhino and Naurzum. Central Kazakhstan

The Karagandy region is home to one of the largest lakes in the world – Balkhash. The area features various archaeological and ethnographic relics. East Kazakhstan

East Kazakhstan is represented by the Altai and its wooded foothills, the river of Irtysh and such lakes as Zaisan, Markakol, Alakol and Sauskan. The Semipalatinsk region is the birthplace of the great Kazakh poet Abay Kunanbaev and writer Mukhtar Auezov.

The Burhan-Bulak is the highest waterfall in Central Asia

West Kazakhstan

Home to the Aktobe, Atyrau and Mangystau regions, West Kazakhstan sits at the crossroads of the European and Asian continents in the basin of the Caspian Sea, the Volga and the Ural. It is the location of the world’s second deepest depression - Karagiye lies 132m below sea level. The area is good for hunting, angling and water sports. It is also home to the monuments of ancient Mangyshlak and Ustyurt.

Exciting outdoor activities in Kazakhstan (in the Taldikorgan region), Jani-Kurgan (in the Kzil-Orda region), Kokshetau and Zerenda (in the Kokshetau region) and those located in Zaili Alatau. Zaili Alatau Moutains

The 4,000m-high (1,310ft) Zaili Alatau Mountains near Almaty offer numerous opportunities for sports and recreation. The Medeo ice rink is situated 15km outside the city in a stunning gorge. It attracts walkers and climbers in summer and skiers in the winter. The Tian Shan Mountains

Tian Shan, or ‘Heavenly Mountains’

Spas

Kazakhstan has a wide range of spas offering various treatments. There are 98 sanatoria holiday hotels and 115 preventative-medicine sanatoria. Many are also located in areas that feature sports, cultural events and historical and archaeological sites. The most internationally renowned resorts include Sari Agach (in the south), Mujaldi (in the Pavlodar region), Arasan-Kapal

Kazakhstan country profile 2012

Tian Shan, or ‘Heavenly Mountains’, in the southeast of Kazakhstan, stretch for more than 1,500km (932 miles). The highest peaks are Pobeda Peak (7,439m/24,406ft) and Khan-Tengri Peak (7,010m/23,000ft), a snow-white, marble-like pyramid. The huge Inylchek Glacier, spanning almost 60km (37 miles) in length, splits the summits and at its center lies the beautiful Merzbacher Lake. The Kolsai Lakes are three blue mountain lakes, known as the ‘pearls of the northern Tian Shan’, that lie within the ridges of the Kungei Alatau range at heights of up to 2,700m above sea level. The Khan-Tengri International Mountaineering Camp offers experienced mountain guides to take visitors on organized climbing and trekking programs. Horseback riding is also available.

Kazakhstan at a glance

127

Sample routes offered to tourists in Kazakhstan Explore the nature of South Kazakhstan

This area is home to the Talass Alatau, southern steppes and lakes, and sandy and clay deserts. Visitors can enjoy one to 16-day programs, including an intensive program that features Aksu Canyon and Kishi Kaiyndy, the western Tian Shan and Karatau Mountains, Mashat, Sairamsu, steppe lakes and deserts. Aksu-Zhabagly National Park ■■ Aksu River Canyon: a 500m deep tectonic fault that spans 700-800m across. ■■ Kishi Kaiyndy Tract: an area featuring a large forest, flowers and beautiful landscapes. Steppe Lakes ■■ Bilikol Lake: a lake home to herons, bitterns, black and white storks, sandpipers, terns, gulls and many near-water sparrow birds (rush bird, penduline tits, pipits and wagtails). ■■ Taskol and Darbaza Lakes: typical Central Asian lakes. Mashat Gorge ■■ A favorite recreational area; a holy place for Kazakhs. ■■ Madantal River Valley: This vast valley features a full-flowing mountain river. The backdrop is a mountain range of 4,000-meters-high snow peaks. Alpine meadows and long-tailed marmot colonies can also be found there.

Beautiful Aksu-Zhabagly National Park is a tempting prospect for hikers

Mangystau Safari

In addition to the Mangyshlak Peninsula, the Mangystau region occupies a significant part of the Usturt Plateau and the southern Caspian Depression – Buzachi Peninsula. It is home to more than 16 million hectares of natural deserts and semi-deserts. There are several landscape zones here: ■■ ■■ ■■

■■ ■■

Caspian shoreline with many canyons and ravines Karatau Mountain Range Chalk and limestone chinks (breaks) and residual mountains Sand massifs Clay and solonetzic dry lake floors and depressions, including Karagiye Depression – the second deepest in the world

Vegetation is rare here. The Mangyshlak Peninsula is a good area to study sedimentary rocks.

The Mangystau region has over 16 million hectares of desert

The Caspian Sea borders the Mangyshlak Peninsula from three sides. Here one can observe a slight increase in humidity in summer. The hottest period is between mid-July and mid-August. The autumn frost begins in late October and the spring frost ends in early April. The Mangyshlak and Ustyurt snow cover is minimal (three to seven cm). Humidity in the area is 40 to 60 percent.

Kazakhstan country profile 2012

128

Kazakhstan at a glance

Air Astana Offices in kazakhstan Air Astana Reservation and Ticketing Offices in Kazakhstan c\o OtrarAvia, General Sales Agents for Air Astana Astana 9 Republic Ave., Astana, Kazakhstan Tel: +7 (7172) 210 764, 210 765, 210 771 Fax: +7 (7172) 216 742, e-mail: otrartravel@mail.ru Almaty 73 Gogol Str., Otrar Hotel, Almaty, Kazakhstan Tel: +7 (7272) 588 202, 58 206 Fax: +7 (7272) 588 215, e-mail: avia@group.kz

Air Astana began participating in the US Airlines Reporting Corporation (ARC) in late July 2007. By joining, all 22,100 ARC-accredited travel agents across America can issue Air Astana tickets between the US and Kazakhstan and beyond. Air Astana, while not yet offering flights to the US, has an extensive network of air services through its partner airlines â&#x20AC;&#x201C; allowing it to offer service through cities such as New York, Washington, Los Angeles, Denver and Miami. This network connects the Air Astana hubs of Almaty, Astana and Atyrau through numerous European, Asian and Middle-Eastern gateways, including London Heathrow, Amsterdam, Frankfurt, Moscow, Bangkok, Seoul, Beijing, Delhi and Dubai. Air Astana has extensive reciprocal ticketing agreements, allowing you to combine its services with more than 70 of the worldâ&#x20AC;&#x2122;s airlines, including Lufthansa, KLM Royal Dutch Airlines and United Airlines.

Almaty International Airport Tel: +7 (7272) 572 707, +7 701 318 0331 Aktau 39-A Micro District 8, Aktau, Kazakhstan Tel: +7 (7292) 512 767, e-mail: klmgsasco@nursat.kz Aktobe 46 Abulkhair Khan Avenue, Nurdaulet Business Centre, Aktobe, Kazakhstan Tel: +7 (7132) 548 503, e-mail: otrar_aktobe@mail.kz Atyrau 2 Abay Str., Atyrau, Kazakhstan Tel: +7 (7122) 255 345, e-mail: otrar_atyrau@nursat.kz Air Astana office opens in New Jersey An office to support travel agents and passengers. 285 West Side Avenue, Suite 277-278 Jersey City, New Jersey 07305, USA Toll free: 888 855 1557, e-mail: usa.sales@airastana.com

Air astana call centres Astana...............................+ 7 7172 210 764 Almaty ..............................+ 7 7272 703 094 Aktau.................................+ 7 (7292) 511 565 Aktobe...............................+ 7 (7132) 548 501 Atyrau................................+ 7 (7122) 255 340 Karaganda.........................+ 7 7212 561208 Kostanay...........................+ 7 7142 546875 Kyzyl-Orda........................+ 7 72422 70392 Uralsk................................+ 7 (7112) 515 151, 507 079, 515 044 Oskemen...........................+ 7 7232 243233 Pavlodar............................+ 7 7182 320091 Shymkent..........................+ 7 7252 549861

Kazakhstan country profile 2012

New Jersey.......................+1-866-8888-164 Amsterdam ......................+ 31-20 44 66 354 Moscow ..........................+ 7 (495) 980 71 84/85 Dubai ................................+ 971 4 316 6572 Beijing ..............................+ (8610) 646 510 30 Germany............................+ 06105-206022 Bangkok ...........................+ 66-2-251-4700 Seoul.................................+ 82-2-3788-0170\1\2 London..............................+ 44 (01293) 596622 Delhi..................................+ 91-11 515 214 25 Frankfurt...........................+ 49-6105 20 60 22 Hanover.............................+ 49-511 977 2476 Istanbul.............................+ 90-212 343 49 60

major cities

129

Kazakhstan

Major Cities

Astana – new capital for the new millennium

stana, the capital of Kazakhstan, is developing at an impressive clip: 1,700 cranes are in operation on 650 separate sites in a city that, just a decade ago, had a population of only 280,000. Today it is home to about 700,000 residents. Construction projects in Astana total KZT 1.5 trillion ($9.9 billion) – dwarfing that being spent in Dubai, Brasilia and Canberra. All the new projects bear the mark of President Nursultan Nazarbayev. In 1994, the President decided the capital of Kazakhstan would be moved here from Almaty. In 1997, the city’s name – briefly Akmola and before that Tselinograd – was changed to Astana, which means ‘capital’. On the right bank of the city is the site of Khan Shatyry – a spectacular and unique, fully functioning indoor city for 10,000 people designed by Norman Foster (celebrated for Beijing’s new airport and the transformation of the Reichstag). This immense structure – an area larger than

ten football stadiums – will feature schools, hospitals, shops, sports centres and concert halls. Vehicle use will be prohibited; individuals can travel throughout the complex via its canals. The upper floor of Khan Shatyry will feature a jungle, a beach and a body of water. Foremost among the completed large-scale buildings is the Bayterek Tower or ‘Tree of Life’. It stands midway down the length of a 1.5km-long boulevard lined with

Khan Shatyry is an indoor city housing schools, shops and concert halls

Kazakhstan country profile 2012

130

major cities

Astana’s impressive skyline is a visible sign of the huge changes wrought in the city in recent years

flower beds, sculptures and fountains. Large buildings line either side of this thoroughfare: a national archive resembling a giant egg, a pair of 30-story cones in gold mirror glass and a trio of towers. The Bayterek Tower was completed in 2002. It is 97m high (a figure that reflects the year in which Astana became the capital). The Kazakhs have dubbed it ‘The Big Chupa Chups’ for its resemblance to a lollipop. A lift ascends to an observation deck with a platform that supports a triangular gold ingot featuring President Nazarbayev’s handprint. The tower has become a symbol of Kazakhstan, much like the Eiffel Tower in France. In 1998, President Nazarbayev envisaged a permanent structure to house the Congress of World Religions (which takes place triennially in Astana). There was a site – directly opposite the presidential palace – and a timeframe: it had to be ready by 2006. The President had

The Palace of Peace and Accord, built for the Congress of World Religions

Kazakhstan country profile 2012

been thinking about the form that this ‘Palace of Peace and Accord’ should take. He decided a pyramid would be suitable and contacted Norman Foster to design it. The pyramid, 62m wide and 62m long, includes a 1,500-seat auditorium that functions as a performingarts venue. Blue and yellow light permeates the cathedral-like interior of the pyramid. On level six there is a hanging garden and a wide oculus. It also features stained-glass windows by Brian Clarke. Nearly 2,000 workers and the Kazakh army constructed the building. In 2009, several new buildings were unveiled in Astana: a new bridge across the Ishim River, an outpatient medical facility, four monuments, and a housing complex for veterans and senior citizens. A number of overpasses and roads were also completed. An additional two bridges are under construction, as well as 22 schools, a medical cluster, a 3,500-seat concert hall by the Italian architect Manfredi Nicoletti and a 3km-long Green Water Boulevard. Groundbreaking ceremonies were held to celebrate the start of construction on the Nokian tires plant and the Nissan and General Electric assembly facilities. Also recently constructed were a light rail line (with a line to the airport). Landscaping work is also under way to make Astana greener: 400 hectares will be transformed into parks and squares and 40,000 hectares of forest have already been planted around the city. Japanese architect Kisho Kurokawa designed much of the city plan, carrying out President Nazarbayev’s vision. “Our plans for Astana are grand,” the President said. “The heart of the nation beats here. And I believe that the greater part of the city will be completed by 2012.”

major cities

131

New horizons in Kazakhstan Christopher Robbins, Lonely Planet Magazine, in association with In Arts & Architecture Photographs Eric Lafforgue 17 March 2011 ‘I hate this city, I hate this city, I hate this city!’ For the first six months after moving to Astana – Kazakhstan’s spanking new capital built by presidential decree in the middle of the country’s vast empty steppe – Akmaral Aidarbekova complained bitterly about the place on a daily basis. The pavements were unfinished, forcing pedestrians to wade through deep puddles of melting snow, and there was nowhere to go and nothing to do. The weather was extreme, too, with bitterly cold winters that dropped to –40°C and baking hot summers that soared to over 40°C. A young, single woman in her mid-20s working as a lawyer in the Ministry of Finance, Akmaral had been obliged to relocate north from the old capital, Almaty, like thousands of other government employees. ‘I was not happy to come here,’ she says. ‘I arrived on Valentine’s Day in 2000 and it was so windy, I was nearly knocked over. And it was so cold. February is the month of the buran – snow blizzards which last for two or three days. I was worried that the whole winter was going to be the same.’ The decision to make Astana the capital was taken in July 1994, and the move began three years later. As Peter the Great built St Petersburg on a swamp and Philip II of Spain turned a dusty village into Madrid, so Nursultan Nazarbayev, the President of Kazakhstan, decreed that a rundown steppe town bang in the middle of nowhere should be transformed into the nation’s capital. The city chosen for the world’s greatest architectural makeover had previously been in long decline, inhabited largely by a Russian population of impoverished agricultural workers. Its concrete tower blocks were crumbling, the peasant housing like slums, and the infrastructure chronically rundown. Not to put too fine a point on it, the place was an absolute dump. Suddenly, tens of thousands of government employees had to move north as various ministries transferred sections of their operation to the city over a period of two years. No capital has ever been relocated in such a short time. The President explained the rationale by saying that Almaty had grown from a manageable population of 400,000 to 1.5 million, and had simply run out of space to expand. The city’s mountains, while providing a beautiful backdrop to the old capital, helped to trap pollution. On top of this, Almaty was prone to earthquakes. Geographically, the old capital was in the extreme southeast corner of the country, near the border with China, and cut off from the rest of the republic. The

The Bayterek Tower offers a panoramic view over the capital city

rich oil fields of the Caspian Sea lay over 1,800 miles to the west, while there were unstable neighbours less than a couple of miles to the south. Astana, on the other hand, was perfectly placed in the very centre of the country. But even the President, when planting a tree in the early days of the city, conceded: ‘It is windy up here, isn’t it? It certainly is windy.’ Later, he would try to put a patriotic spin on the new capital’s harsh climate: ‘This is normal weather for this place. It is the weather of our native land and of our forefathers.’ ‘It took me about three years to change my mind about Astana as the city changed around me,’ says Akmaral. She married and moved into a modern apartment. ‘Now it feels like a real city, with cafés and restaurants and parks, with lots of things to do,’ she says. ‘I don’t even mind the winter now – it’s cold but also dry, and there are beautiful sunny days.’ ‘I didn’t mind coming here,’ says Akmaral’s husband, Maghzhan – known to his Western friends as Mac. ‘I felt very good about being at the beginning of something, involved in building a new capital for my young country. It felt like being part of the future rather than the past.’ Astana’s architectural style can best be described as idiosyncratic. The variety is a dizzying mix of clashing shapes and colours, yet is oddly suited to a nation made up of 100 ethnic groups following at least 30 different religions. The oriental post-modernism takes some getting used to, although the locals have domesticated all the thrusting modernity by giving many of the buildings homely nicknames according to their shape: a canaryyellow skyscraper is known as the Banana Building; seven squat cylindrical constructions are called the Seven Beer Barrels; and a pair of circular towers are the Ice Cream Cones. The Cigarette Lighter was so-called before it suffered an alarming fire. Inevitably, such an ambitious building project has had its failures: one building is known as the Titanic after a huge crack appeared in its foundations; another,

Kazakhstan country profile 2012

132

major cities

threatened by a crumbling riverbank, has been dubbed the Kursk after the ill-fated Russian submarine. The Ministry of Finance building gives the impression of a dollar sign, while the sweeping curves of the new stadium look, well, sporty. The National Archives are housed in a grey-green egg, the circus in a flying saucer, and there are now massive, California-style shopping malls, 24-hour supermarkets and numerous cafés and restaurants. But so far, no McDonald’s or Starbucks. ‘We’ll survive,’ says Mac. New religious buildings stand among government ministries and banks – a spectacular mosque donated by Qatar; a big blue synagogue paid for by a Jewish Russian Orthodox cathedral built by public subscription. The miracle is that everything has been built in little over a decade. In the centre of the city stands Bayterek Tower, a tall, spiky construction that cradles a glass and aluminium ball at its top. It’s the symbol of Astana and independent Kazakhstan, people take its lift up 97 symbolic metres – 1997 being the date of the move to the capital – to the dome for a clear view over city and steppe in every direction. Once at the top, it’s customary to approach the green malachite plinth that sits in its centre, upon which rests a disc made from five kilograms of solid silver bearing an imprint of the President’s hand crafted from two kilograms of solid gold. Visitors then place their own hand in the President’s palm before making a wish. On my visit I am led to the plinth by a guide and dutifully place my hand in that of the President – and almost jump out of my skin. Before I can wish, and as I make contact with the presidential palm, the tower is filled with a roaring choir backed by a mighty orchestra belting out the national anthem at full patriotic throttle. There is a panoramic view of the city from the tower and, in the distance, the vast wedding cake of domes and pillars of the Presidential Palace. The palace is a place of work and not a residence, designed to impress with its ostentation and size. Its interior, hung with crystal chandeliers the size of small buildings, has the proportions of a city square. Small armies parade there in winter when ceremonial occasions cannot be held outside. Beyond the palace, a gigantic pyramid – the Pyramid of Peace – can be seen. Sixty metres high, it was designed by British architect Lord Foster and contains a 1,500-seat opera house. Another unique creation of Foster’s is the giant, futuristic yurt known as Khan Shatyr – the Khan’s Tent – which contains palm trees, beaches and even an artificial sea, allowing people to enjoy tropical conditions inside while blizzards rage outdoors. I’d not visited Astana for four years and, having returned, I find the change simply astounding. The last time I was in the city I found it impressive but without soul. Now everything has changed. Astana has developed a personality. Not only has the skyline altered beyond

Kazakhstan country profile 2012

Burabay National Park is a popular resort for people living in Astana

recognition, but the place is alive. There is a buzz about it, an energy reflecting its youthful population. Astana has become human. The average age in the city is 34, and young women from all over Kazakhstan flock here looking for husbands because of the army of single men working in its numerous ministries. Construction continues apace, and there are so many new cultural centres, museums and stadia – football, bicycle and ice-skating – popping up, that even the official guides can sometimes become confused: ‘I’m sorry – this is the National Museum and you wanted to see the President’s Museum. Perhaps you would also like to see the Palace of Independence?’ One of the more immutable disadvantages of Astana is that it is a long way from anywhere. It’s like living on a remote island – there is a reason the steppe is referred to as a sea of grass. In a country the size of Western Europe, distances are enormous. People in the city resign themselves to three-hour drives to reach the closest resort areas. Some 106 miles to the southeast is a network of salt lakes that are home in spring and summer to vast flocks of pink flamingos. Korgalzhyn State Nature Reserve, covering 915 square miles, is a bird-watcher’s dream and a candidate as a Unesco World Heritage Site. But the most popular weekend location for Astana residents wishing to escape their city is Burabay National Park, an area of lakes, hills and forest billed as ‘the pearl of Kazakhstan’ or even ‘Kazakhstan’s Switzerland’. Only steppe dwellers would consider its low granite hills

major cities

to be Alpine; despite its undoubted beauty, it more resembles Finland’s lakes and forests. Mac and I set off on a Saturday morning for an overnight stay. As we leave the city limits, we drive through a wide girdle of forest, planted as a green belt designed to be both a lung and a windbreak. Stunted by wind, frozen earth and long winters, the forest has grown considerably slower than Astana itself. Beyond the green belt there is only the empty steppe. ‘Up here on the steppe you see natural phenomena you don’t see anywhere else,’ says Mac. ‘I’ve seen a rainbow at a temperature of –35°C, which was absolutely beautiful. And it’s big sky country, too – so you can see black clouds in one part of the sky and brilliant sunshine in another.’ We buy beer and delicious smoked fish in a shop on the way to the park, then drive to a comfortable hotel that retains elements of a Soviet sanatorium – a course of leeches is on offer. It’s the end of the season and almost no-one is around the lakes or forests, except for old ladies searching for mushrooms. Coloured ribbons have been tied in profusion to trees in certain ‘sacred’ groves – shamanistic rather than religious – by wedding parties. There are a number of lakes in the national park, but Burabay is the most beautiful. Surrounded by birch forest, its waters lap a strip of sandy shore. There are various inlets where visitors can rent a rowing boat or hire an oarsman to take them to the mysterious rock known as Zhumbaktas stone. A legend surrounds it, and it is said to resemble a beautiful woman from one angle and an old hag from another. I can’t see it myself. But then

133

neither can I make out the elephant, warrior and shoe that other outcrops are said to resemble. Zhumbaktas stone is covered in graffiti, dating back to 1905. My favourite is from 1949 and signed: ‘Nadia: Thank God for those husbands who send their wives alone for a vacation.’ As we enter Astana on the drive back from Burabay, Mac remarks on all the young families out for an afternoon stroll. In the winter they go skating on the river and drill holes in the ice for fishing, while elaborate ice sculptures decorate the streets. ‘When I first came here, I barely saw any prams on the streets,’ he says. ‘In a year, I started to see prams. And after two years, the whole embankment along the river was full of prams.’ And two of them belonged to Mac and his wife Akmaral, who now have a couple of young sons. Back in the city, Akmaral cooks dinner for us while the boys wander in and out of the kitchen. It’s a settled, happy domestic scene. ‘This is a young city built for young families, for a younger generation,’ says Akmaral. ‘It’s a city designed for family life, which is very important for Kazakhs. All the colleagues I came here with have now married and had children – they have become adults and personalities in this city. Astana has become their home. And it has become my home.’ The old complaints have been resolved. Akmaral no longer yearns to return to Almaty, and has no desire to move. ‘I have changed completely, one hundred per cent – I am very happy here,’ she says. Like its young population, Astana has finally come of age.

Almaty - financial and cultural hub Almaty, formerly known as Alma-Ata and Verniy, is the largest city in Kazakhstan with a population of nearly 1.5 million people. That represents nearly 10 percent of the Kazakh population. Almaty was the capital of Kazakhstan from 1929 to 1998. Despite losing its status as the capital, Almaty remains the major commercial center of Kazakhstan. The name Almaty comes from the Kazakh word apple (alma), and thus is often translated as ‘full of apples’. About 46 percent of Almaty’s population is Kazakh but it is a diverse city: 30 percent are Russian, 11 percent are Uyghur, two percent are Tatar, two percent are Korean, one percent are Ukrainian and one percent are German. History

During the 10th and 9th centuries BC, in the Bronze Age, farmers and cattle-breeders settled on the territory of Almaty. During the Saka period (from 7 BC to the beginning of the Common Era), the Saka tribes and later Uisun tribes inhabited the territory north of the Tian Shan

mountains. Numerous burial tumuli and ancient settlements remain, including the giant burial mounds of Saka tsars. The most famous archaeological finds are the Golden Man from the Issyk burial mound (a replica of the Golden Man crowns the Independence Monument on the central square of Almaty and another replica sits in front of the chancery of the Embassy of Kazakhstan in Washington), Zhalauly treasure, Kargaly diadem and Zhetysu arts bronze (boilers, lamps and altars). During the period of Saka and Uisun governance, Almaty became an important education center. During the Middle Ages (8th–10th centuries), Almaty experienced its cultural development; a number of towns and cities developed on the territory. Between the 10th and 14th centuries, settlements became part of the trade routes of the Silk Road. Almaty became one of the trade, craft and agricultural hubs along the Silk Road. The 15th through 18th centuries were marked by very important political events. It was a period of ethnic and political transformation. The Dzhungar intervention

Kazakhstan country profile 2012

134

major cities

forced a battle for freedom among Kazakhs seeking to protect their land and preserve independence. In 1730, the Kazakhs defeated the Dzhungars in the Anyrakay mountains, 70km northwest of Almaty. On 4 February 1854, Kazakhstan began work on the Russian fort Verniy near the Zailiysky Alatau mountain range (between Bolshaya and Malaya Almatinka rivers). The construction of the Verniy Fort was almost finished by autumn 1854. It was a fenced pentagon and one of its sides was built along the Malaya Almatinka. In 1856, Russian peasants founded the Bolshaya Almatinskaya Stanitsa (Cossack village) near the fort. The inflow of immigrants increased and led to the construction of the Malaya Almatinskaya Stanitsa and Tatarskaya (Tashkentskaya) sloboda. Tatar mechants and craftsmen settled there. In 1867 the Verniy Fort became a town called Almatinsk. However, its residents rejected the name and settled on Verniy instead. According to the first city plan, the city’s southern border was two kilometres in length and its western border spanned three kilometres. At 4am on 28 May 1887, an earthquake almost totally destroyed Verniy. In 1921, the city’s representative of government convened to change Verniy’s name to Alma-Ata. In 1926, the Council of Labor and Defense approved the construction of the Turkestan-Siberia Railway, which was crucial to Kazakhstan’s development, specifically in the east and southeast. On 2 March 1927, the Central Executive Committee of the Kazakh Republic decided to transfer the capital from Kyzyl-Orda to Alma-Ata. In 1930, the construction of the highway and railway to Alma-Ata station was complete. Alma-Ata airport also opened in 1930; it allowed people to travel between Alma-Ata and Moscow. Alma-Ata became Kazakhstan’s major hub for air transportation. In 1936, the Architecture and Planning Bureau put in place plans to develop Alma-Ata as the new cultural capital of Kazakhstan. Between 1966 and 1971, 1.4 million square meters of public and cooperative housing were built. The focus was on constructing earthquake-proof, multi-storied buildings. Schools, hospitals, cultural and entertainment facilities – including Lenin’s Palace, the Kazakhstan Hotel and the sport complex Medeo – were constructed during this period. The Medeu Dam, designed to protect the city of Almaty and the Medeo skating rink from catastrophic mudflows, was built in 1966. The aircraft Tupolev Tu-144 went into service on 26 December 1975, flying mail and freight between Moscow and Alma-Ata. Passenger service between the cities began in November 1977. The underground Almaty Metro project got under way in 1981. In 1991, Kazakhstan celebrated its independence from Russia. In 1993, the government decided to rename AlmaAta Almaty. In 1997, President Nazarbayev approved the Decree to transfer the capital from Almaty to Astana.

Kazakhstan country profile 2012

Re-enacting a scene from Almaty’s fascinating past

On 1 July 1998, a law was passed designating Almaty as a scientific, cultural, historical, financial and industrial center. Almaty today

The 2030 General Plan of Almaty was developed in 1998. The main objective of the plan is to promote Almaty’s image as a garden city. It also calls for the construction of multi-storied buildings, reorganization of its industrial territories, an improvement in the transportion infrastructure and the launch of the Almaty Metro. Almaty has developed an important regional financial centre – RFCA. An aerial tramway line connects downtown Almaty with a popular recreation area on the top of Green Hill, a mountain just to the southeast. The city television tower, Alma-Ata Tower, is located on this hill, as well as a variety of attractions and restaurants. According to the city’s Department of Natural Resources and Resource Use Management, the city today has 125 fountains. Among them is the ‘Oriental Calendar’ Fountain, which features 12 sculptures representing the animals of the Kazakh 12-year animal cycle (similar to its Chinese counterpart). Almaty is a university town – with the Almaty Institute of Power Engineering & Telecommunications, Kazakh-British Technical University, Kazakh National Technical University (KazNTU), Al-Farabi Kazakh National University (KazUU), Suleyman Demirel University (SDU), KIMEP (Kazakhstan Institute of Management, Economics, & Strategic Research), Kazakh-American University (KAU), Kazakh Academy of Sciences, Almaty State University (named after Abay), Turan University, Kazakhstan University of International Relations and Languages, Central Asian University – all laying claim to providing international standards of eduction to students from across Kazakhstan and beyond (recently Kazakhstan was designated number one in Central Asia for its education standards). Almaty won the bid to host the 2011 Winter Asian Games and the city is working on future bids, including the 2018 Winter Olympics.

information

135

Kazakhstan Recommended reading

Kazakhstan: surprises and stereotypes after 20 years of independence Kazakhstan: surprises and stereotypes after 20 years of independence LSE Review of Books, 30 May 2012 Jonathan Aitken addresses the remarkable transition of Kazakhstan in his recent book, charting the countryâ&#x20AC;&#x2122;s political, social and environmental changes over the last few decades. As a source of information and background reading about a faraway country of which we know very little, but need to learn a lot more, Andrew Massey recommends this accessible and well-researched book. Jonathan Aitken has written a polished and informative book about a country of which very few Westerners have much experience. Prior to the slaving

expeditions carried out by the Tsars, which inflicted horrific conditions in primitive mines and factories upon the hapless nomadic people herded from their villages, Kazakhstan was a largely empty region across which wandered the various Turkic tribes, loosely organised into often warring khanates. The Russians gradually expanded from collecting slaves into full colonisation, building a series of military garrison towns behind which increasing numbers of Russian settlers sheltered. Kazakh resistance was met with massacres and collective punishment and a steady Russification of the vast region, a process that continued as the Tsarist Empire was replaced by the Soviet Union. For the Kazakh people there was very little difference. They remained colonised, Russified and subject to collective punishments. Their country became even more cut off from the rest of the world as the Stalinist regime

Kazakhstan country profile 2012

136

information

shifted whole populations of Tatars, Baltic peoples and ethnic Germans into the empty plains and mountains in the obscenity of the gulag. The land and its peoples were subjected to a regime of forced collectivisation, endemic corruption and the continuing indignity of Imperial rule from Moscow thousands of miles away. Over a fifth of the Kazakh people perished from the harshness of their Russian rulers during the 1930s and 40s. Their plains became home to the Soviet nuclear and space programmes, while Brezhnev’s ‘virgin lands’ project inflicted deep environmental damage. Then in December 1991, as the sclerotic Soviet Empire fell, Kazakhstan declared itself independent for the first time in nearly 300 years. It is a vast land mass of over a million square miles and a population of under 17 million people, living on rich agricultural land under which lie huge reserves of oil, gas and other valuable metals and minerals. The last 20 years have seen the birth of a new nation, throwing

The last 20 years have seen the birth of a new nation seeking to chart a confident path squeezed between the Russian North, Chinese East, barbarous totalitarian regimes to the South and a resurgent Islamic west off the fetters of colonialism and seeking to chart a confident path squeezed between the Russian North, the Chinese East, the barbarous totalitarian regimes to the South and a resurgent Islamic west. It is this remarkable transformation that Aitken eloquently addresses. Westerners queuing for a visa outside the Kazakh embassy in the rain in London will reflect that some things remain rather Soviet in the official approach of the new country to its dealings with outsiders. Indeed, a country replete with unspoiled high mountain ranges (perfect for skiing and climbing) and a beautiful wilderness in the high plains and lakes singularly lacks a major tourist industry, hence our lack of intimate knowledge of the country. It also lacks McDonalds restaurants, KFCs, large-scale violent crime or major religious or ethnic tensions between its more than 100 Muslim and Christian nationalities. It is a modern country that chooses what to accept or reject from its neighbours. The Kazakhs are remarkably forgiving of their former masters. It is a country that possesses universal education and

Kazakhstan country profile 2012

is modernizing its economy at a frantic pace. It has over seven percent economic growth annually and hardly any unemployment. It is, as Aitken observes, a land of surprises and stereotypes. Aitken has an obvious affection and admiration for Kazakhstan, a feeling reciprocated by many of those in the country’s elite. Indeed he has achieved unprecedented access to President Nursultan Nazarbayev, the leader of the country since before independence. He was first appointed by Gorbachev (whom Aitken interviewed) in response to Kazakh protests after Kolbin, a Russian, had been appointed the head of the Soviet Republic. Nazarbayev, Aitken writes, granted him over 35 hours of interviews. Aitken has also written a biography of Nazarbayev, published in 2009. Given such approbation by a President who regularly receives over 90 percent of the vote during elections and who has no remaining rival for power, this opened the way for Aitken to have contact with whoever he wished in the ruling elite and the country at large. He visited a large range of institutions and interviewed people at all levels, including opposition leaders, when he could contact them. This is not to take a snide swipe at Aitken’s obvious ease with a privileged elite. Anyone who has travelled to the country and discussed politics with its people will be aware of the national pride they possess and the reverence they hold for Nazarbayev, a man who they regard as the father of the nation. Aitken argues he is their equivalent of George Washington. Certainly under his leadership the impoverished, hungry nation of 1991 has become a stable and peaceful economic powerhouse. Its GDP dwarfs that of its neghbouring former Soviet Republics, including the Ukraine, though corruption at all levels remains a lasting legacy of the old Soviet Union. Western jibes about it being a police state, Aitken argues, are misplaced lazy journalism. Indeed, when in 2010-11 the old Soviet-era bureaucrats engineered a referendum to extend the President’s term of office by ten years, Nazarbayev himself simply called an early presidential election instead and declared anyone could run against him. There were three other candidates and the incumbent won with over 95 percent of the vote. Aitken notes there was a mixed set of reports from the different groups of independent international observers. Some found serious irregularities, while others declared it a largely clean and fair election. Aitken himself was there and toured several of the polling booths. He also put the concerns he had about the size of the victory directly to the President. His sifting of all the reports and interviewing of several official observers off the record led him to award the election ‘two and a half’ cheers. The President’s decision to call an election instead of a referendum was a masterstroke; at one and the same time confirming his hold on the office, but undermining the critics’

information

137

Aitken also wrote a biography of President Nazarbayev

New book details socio-political change in Kazakhstan

argument that he was manipulating the political system in an old Soviet way. Aitken calls this episode the victory of new Kazakhstan over the old. Aitken himself has made a contribution to the New Kazakstan. He relates how, charged with producing a report into the countryâ&#x20AC;&#x2122;s prisons, he toured the system and made a series of recommendations, many of which were implemented and contributed to increased training and rehabilitation activities for prisoners. The President and his associates have sought to decriminalise a score of activities inherited as indictable offences under the old Soviet penal code, Nazarbayev himself visiting courts and appointing reforming ministers to the Ministry of Justice and the KGBâ&#x20AC;&#x2122;s successors. The prison population has dropped from nearly 70,000 to under 50,000 and the use of torture outlawed. Aitken interviewed many of the reformers at length and wryly noted how more open than the CIA and SIS the Kazakh security services appear to be and how much cleaner the prisons are than those to be found in the UK and US. The book, therefore, delivers chapters exploring the history, economy, politics, education and diplomacy of Kazakhstan. It shows the country in a favourable light; detailing how it removed all its nuclear weapons inherited from the Soviet Union, including a large number of the fearsome Satan ICBMs; the economic and industrial

developments; the attempts to diversify away from over-reliance on the massive oil and gas reserves, coal mines, copper and uranium reserves; the education of large numbers of young people to take the country one stage further and not only join the developed nations of the world, but lead the development and modernization of Central Asia. Aitken has the enquiring mind and elegant writing technique of the polished journalist. He also has the skepticism that comes with his experience and background, which means that although he writes as a friend and admirer of the country and its President, this is no hagiography. As a source of information and background reading about a faraway country of which we know very little, but need to learn a lot more, I recommend this accessible and well-researched book. Andrew Massey is Professor of Politics at the University of Exeter. He has worked in a range of areas, including British, European and US policy and politics. His main areas of research include comparative public policy, public administration and issues around the reform and modernization of government and governance at all levels in the UK, US, EU and, increasingly, globally. He also has a long-standing interest in energy policy, especially civil nuclear energy, professionalism and ethics and accountability.

Kazakhstan country profile 2012

138

information

Recommended publications on Kazakhstan

Apples Are from Kazakhstan: The Land That Disappeared By Christopher Robbins “Robbins’s travelogue enthusiastically and infectiously blends history, observation, and mini biographies… A captivating read notable for offthe-cuff candor and measured, eloquent prose.” — Kirkus Reviews (starred review). (ISBN: 978-0-9777433-8-4, $17.47, www.amazon.com)

Kazakhstan (Bradt Travel Guide)

Odyssey Kazakhstan: “Nomadic Routes from Caspian to Altai”

By Dagmar Schreiber A guide to the Central Asian nation, with essays on history, culture, architecture and nature. (ISBN: 978-962-217-789-5, $24.95, www.amazon.com)

Hedonist’s Guide to Almaty and Astana

By Lucy Kelaart and Summer Coish Whether it’s sipping vodka cocktails in Almaty’s lounge bars, admiring Astana’s architecture, visiting the churches and mosques or venturing into the countryside to ski or explore the dramatic steppe, this guide explores Kazakhstan’s Soviet past and its independent present. (ISBN: 978-I-905428-21-2, $18.95, http://www.hg2.com/stores/Almatyand-Astana)

Kazakhstan country profile 2012

By HE Paul Brummel, UK Ambassador to Kazakhstan Located between Russia and China, the state of Kazakhstan is incredibly diverse and naturally beautiful. This guide includes information about visiting natural parks and reserves, as well as features about the singing sand dunes and the Sharyn Canyon – Asia’s equivalent of the Grand Canyon. (ISBN-10: 1841622346, $19.70, www.amazon.com)

Islam: Religion of Peace and Creation

By Sheikh Abdsattar Haji Derbisali The Supreme Mufti of Kazakhstan’s comprehensive work of theological and historical-philological research, articles and reflections, reports and interviews. The book shows how Kazakhstan is a standout among developing nations: rich in natural resources, strong in its Muslim heritage and eager to move toward a modern, peaceful democracy. (ISBN: 978-1-906768-68-3, £39.95, http://www.amazon.co.uk/ReligionCreation-Kazakhtsan-AbdsattarDerbisali/dp/B007GFOZEE)

information

Kazakhstan’s Foreign Ministry Publishes Kazakhstan at Twenty: Fulfilling the Promise

“In 2001, a book by Martha Brill Olcott, Kazakhstan: Unfulfilled Promise, caused quite a stir as many people, myself included, were in disagreement with her. Today, ten productive and intensive years later, those same people have even more justification to state the case for Kazakhstan’s progress towards fully grown market economy and participatory democracy. Yet, we in Kazakhstan are fully aware that we are not there yet, so to speak, and that much work remains to be done. Hence the title of the book, and I hope Dr Olcott wouldn’t mind our little wordplay,” said Roman Vassilenko, Chairman of the Committee for International Information of Kazakhstan’s Foreign Ministry. (http://portal.mfa.kz/portal/page/ portal/mfa/en/content/news/ nws2011/2011-04-18)

Green Desert: the Life and Poetry of Olzhas Suleimenov

The first comprehensive translation of Olzhas Suleimenov’s poetry in English. It provides a concise overview of the poet’s rich literary heritage and serves as an introduction to the contemporary literature of Kazakhstan and Eurasia. The book is edited by Dr Rafis Abazov, who is adjunct associate professor at Hunter College and Columbia University (New York). The books are widely available (ISBN: 978-1-60927-757-4, $46.95, http://www.cognella.com/ titles/Green-Desert/).

Islam without a Veil: Kazakhstan’s path of modernization

Kazakhstan has proven that a mostly Muslim nation can be active on the international scene. Its leaders have worked fervently to bridge

139

the ugly schism that has developed since the 9/11 attacks. How has Kazakhstan been able to maintain its Muslim heritage yet stay on track toward modernization? Claude Salhani examines the successful phenomenon of Kazakhstan today. He looks at the progress it has attained in just two decades since independence. While there is no doubt as to the Muslim identity of the country, Kazakhstan is living proof that there can be a ‘kinder, gentler’ mode of Islam, in which one can live at peace with oneself and with one’s neighbors, despite their differences. (ISBN: 1597977314, $23.96, http:// www.potomacbooksinc.com/Books/ BookDetail.aspx?productID=279024)

Kazakhstan: Surprises and Stereotypes after 20 Years of Independence By Jonathan Aitken Kazakhstan’s journey from infant post-Soviet state to one of the most strategically important and economically diverse countries makes riveting reading in Jonathan Aitken’s unique portrait of the country. In the book, Aitken has discovered an intriguing new spirit and national identity of Kazakhstan, as well as a country full of warmth, good humour, and unshakeable optimism. (ISBN: 9781441116543, $29.95, http://www.continuumbooks.com/ Books/detail.aspx?BookID=160633)

Nazarbayev and the Making of Kazakhstan

By Jonathan Aitken “Acclaimed biographer Jonathan Aitken tells the unknown story, sparkling with human and historical detail, of how the most brutally oppressed of the Soviet republics is being transformed by its first President, Nursultan Nazarbayev, into a modern, exotic and oil-rich nation state of key strategic importance in the 21st century.” (ISBN-13: 978-1-44115-381-4, $34.95, www.amazon.com)

Kazakhstan country profile 2012

140

information

Did you know..? Geography & History ■■

■■

Kazakhstan is the world’s ninth largest country with an area of 2.7 million square kilometers, roughly five times the size of France, four times the size of Texas, and more than 100 times the size of Israel. Kazakhstan is a truly Eurasian country. While most of it lies in Asia, five percent of its territory – roughly the size of Greece – is located in Europe.

1 Baikonur space center, which hosted the first sputnik launch

2 The Karagiye

Depression at the Mangyshlak Peninsula

3 Lake Kucherla in the Altai Mountains

Apples, tulips and horses were first domesticated by man on the territory of modern-day Kazakhstan. Astana is unique because it is a capital city situated right in the middle of the Eurasian continent. Kazakhstan is home to the Baikonur space center, which hosted the first sputnik launch. It was also the site for the launch of the first cosmonaut (astronaut) Yuri Gagarin into space on 12 April 1961. Kazakhstan’s Altai Mountains and Mount Belukha are considered to be the homeland of Magic Shambala, the mystical Buddhist paradise. Kazakhstan borders the Caspian Sea, which is the world’s largest inland sea, famous for its caviar. Kazakhstan is home to the Karagiye Depression at the Mangyshlak Peninsula. Located 132 meters below sea level, it is the second lowest point in the world after the Dead Sea. Kazakhstan was the first country in the world to shut down its nuclear test site – Semipalatinsk, the world's largest nucleartesting facility, which left the health of hundreds of thousands of people severely damaged by radioactive fallout. In 1996, Kazakhstan dismantled the world's fourth largest nuclear-missile arsenal – a legacy from the Soviet Union. Recent archaeological excavations give rise to speculation that Kazakhstan is also homeland of the Amazons, the female warriors described 2,500 years ago by Greek historian Herodotus.

Kazakhstan country profile 2012

Aktau Karagiye Depression

Caspian Sea

information

141

Astana Mount Belukha

Altai Mountains

Baikonur Space Center

Almaty

Kazakhstan country profile 2012

142

information

economy

■■

has four percent of the world’s iron reserves

■■

has eight percent of the world’s zinc reserves

■■

Kazakhstan is rich in mineral and fossil-fuel resources

The Republic of Kazakhstan: ■■

■■

has about three percent of the world’s raw materials and a natural resource base of over $300,000 per capita (among the highest in the world - twice the level of Russia, higher than Australia)

■■

has oil reserves per capita that are five times as high as in Russia and higher than in Iran ■■

■■

has tripled its oil production since 1990 more than tripled its gas production from 12 billion mi in 2000 to 39.5 billion mi in 2011 ■■

■■

mined around 35 percent of the world’s uranium in 2011, making it the world’s largest producer

produced over 29 million tons of grain in 2011, which made it the sixth largest producer of grain and top exporter of flour in the world

has four percent of the world’s total chrome reserves, accounting for 15 percent of global production saw $50 billion of foreign direct investment (FDI) over 1998-2008, compared to the $43 billion invested in Russia (around $150 billion of FDI from 1993 to date) was the first former Soviet republic to repay all of its debt to the International Monetary Fund in 2000 – seven years ahead of schedule became the first country in the Commonwealth of Independent States (CIS) to receive an investment grade from a major international credit-rating agency (Moody's) per capita GDP has grown twelvefold since independence, exceeding $10,000 in 2011 (Malaysia – $9,700; Romania – $8,863; Bulgaria – $7,202; Thailand – $5,394) moved up 11 places to 47 in the World Bank's Doing Business Report 2012, showing strong progress in protecting investors and paying taxes

Education & Composition The Britain-based Legatum Institute ranks Kazakhstan: ■■

42nd in education

■■

16th for average workers acquiring secondary education

■■

Eighth for the number of doctors, nurses and hospital beds available per capita 97 percent of the population has access to adequate sanitation systems

■■

Literacy rate is 99.7 percent

■■

Kazakhstan is a ‘melting pot’:

■■

More than 130 ethnic groups live in the country

■■

More than 40 religions are practised – Sunni Islam and Orthodox Christianity being the prevailing ones.

Kazakhstan country profile 2012

Kazakhstan is placing a growing emphasis on education