AstanaCalling#279

ASTANA CALLING

ISSUE NO 279 FRIDAY, 16 NOVEMBER 2012 WWW.MFA.KZ A WEEKLY ONLINE PUBLICATION OF THE MINISTRY OF FOREIGN AFFAIRS OF THE REPUBLIC OF KAZAKHSTAN

Prime Minister Akhmetov Visits Moscow Focus on economic relations

Kazakhstan elected to the UN Human Rights Council Pledges to strengthen human rights at home and abroad

Kazakhstan Completes OIC Chairmanship Foreign Minister Idrissov hands over to Djibouti

Central Asia Plus Japan Dialogue Continues

Social Modernization of Single-Industry Towns

Japan pledges USD 700 million to support projects

Development Program 2012 – 2020 gets underway

Things to Watch

Also in the News

Prime Minister Medvedev meeting with Prime Minister Akhmetov in Moscow

Prime Minister Akhmetov Visits Moscow On November 12, a delegation led by Prime Minister Serik Akhmetov paid a working visit to Moscow, where they met with the Russian Prime Minister Dmitry Medvedev, and visited the Skolkovo Innovation Center.

The visit follows the meeting between Presidents Nazarbayev and Putin in Moscow on October 9 when they agreed that the Treaty on Friendship between Kazakhstan and Russia would be updated and expanded before the end of 2013.

In this week’s meeting between Prime Ministers Medvedev and Akhmetov, discussions focused on the strengthening of bilateral commercial and economic relations, particularly in energy, transport and the space industry. They also discussed interaction between the two countries in the framework of the Customs Union and the Single Economic Space.

Trade between Kazakhstan and Russia has grown steadily to reach USD 23.8 billion in 2011, up from just USD 4.7 billion around ten years ago, and an increase of over 42 per cent on 2010. Growth was evenly distributed in 2011, with exports from Kazakhstan (USD 7.5 billion) up by 48% while imports from Russia (USD 16.3 billion) rose by 40%. During the first half of 2012, bilateral trade amounted to USD 11 billion.

Mr Medvedev welcomed the opportunity to have an in-depth meeting with his counterpart, given the large-scale cooperation which exists between Russia and Kazakhstan, which ensures an interesting and constructive agenda, he said. He pledged the support of Russia to the Government of Kazakhstan in its efforts to develop the economic and social sphere, and said that success would bring Russia and Kazakhstan even closer together.

Prime Minister Akhmetov expressed satisfaction with the development of relations between the two countries and agreed with Mr Medvedev that there were no issues on the agenda which could not be resolved. He also stressed the importance of developing multilateral cooperation within the Customs Union and the Single Economic Space and said that decisions by both sides need to be implemented to make cooperation more effective.

Later, Kazakhstan’s delegation visited the Skolkovo Innovation Center, Russia’s “Silicon Valley” project that is being developed outside Moscow. The center will be a creative hub for high technology business, located around a complex designed to encourage innovative scientific and technology companies.

After reviewing the existing facilities and plans for future development, the Prime Minister met with the head of the Skolkovo Innovation Foundation, Viktor Vekselberg, to discuss possible joint projects between Kazakhstan and Russia.

Prime Minister Akhmetov went on to the headquarters of the company “Navigation-Information Systems”, where he reviewed the Russian emergency response system, ERA GLONASS, designed to reduce the time-to-arrival of emergency services in responding to breakdowns and traffic accidents.

Kazakhstan’s delegation was shown the system in operation and a presentation on the technology used to monitor and manage the mobile technologies of the emergency services. Mr Akhmetov expressed interest in using the system in Kazakhstan and said that a working group is being set up to explore the issue and report to Minister for Transport and Communications Askar Zhumagaliyev.

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At this week’s meeting of the UN General Assembly in New York Kazakhstan was one of 18 countries elected to the UN Human Rights Council

Kazakhstan elected to the UN Human Rights Council On November 13, 183 UN Member States voted for Kazakhstan to join the UN Human Rights Council. Kazakhstan will take its seat on the Council for three years from January 1 2013, and has pledged to use its membership to strengthen human rights both at home and abroad.

The other countries elected for three-year terms were Argentina, Brazil, Côte d’Ivoire, Estonia, Ethiopia, Gabon, Germany, Ireland, Japan, Kenya, Montenegro, Pakistan, the Republic of Korea, Sierra Leone, the United Arab Emirates, the United States and Venezuela.

Of those elected, Côte d’Ivoire, Estonia, Ethiopia, Ireland, Kazakhstan, Kenya, Montenegro, Sierra Leone, the United Arab Emirates and Venezuela will be represented on the Geneva-based body for the first time.

Altay Abibullayev, spokesman for Kazakhstan’s Ministry of Foreign Affairs, commented: “We are pleased to have been elected to the UN Human Rights Council. But we do not see it solely as a badge of honor. We see it as an opportunity to contribute to global efforts to make progress in this crucial field.”

Kazakhstan has a history of active support to the work of the Human Rights Council since it was established in 2006. Today, the Council is recognized as the leading international body for the protection of human rights, replacing the former Commission on Human Rights. It consists of 47 countries elected directly and individually by secret ballot for a three-year term.

The Council has adopted a range of procedures and mechanisms to monitor and promote human rights around the world. These include the Universal Periodic Review (UPR), which serves to assess the human rights situation in all UN Member States; the Advisory Committee, which acts as the Council’s think tank, providing advice and expertise on human rights issues; and the Complaints Procedure, which allows individuals and organizations to bring human rights violations to the attention of the Council.

The Council also works with UN Special Procedures, in which special representatives, special rapporteurs, independent experts and working groups monitor and report publicly on thematic issues such as torture, housing or education, as well as on specific human rights situations in individual countries.

In February 2010, Kazakhstan successfully underwent its first Universal Periodic Review (UPR), which demonstrated the country’s progress on human rights and its readiness for open and constructive cooperation with international human rights mechanisms.

Kazakhstan put forward its candidacy for the Human Rights Council in March 2010 and has since been working towards the comprehensive implementation of UPR recommendations and of its human rights action plan. Kazakhstan continues to work closely with the UN High Commissioner for Human Rights, treaty bodies and other special procedures and has received the Special Rapporteur on Torture Mr. Manfred Nowak, the Independent Expert on minority issues Ms. Gay McDougall, the Special Rapporteur on adequate housing Ms. Raquel Rolnik and the Special Rapporteur on the right to education Dr. Kishore Singh.

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Foreign Ministers from the Central Asian countries and Japan meeting in Tokyo

Central Asia Plus Japan Dialogue Continues On November 9-10 Kazakhstan’s Foreign Minister, Erlan Idrissov, was in Japan to attend the fourth meeting of Foreign Ministers of the six countries participating in the “Central Asia plus Japan Dialogue”. At the meeting chaired

by Japan’s Foreign Minister, Koichiro Gemba, the focus was on three themes: how to advance economic integration, strengthen stability and ensure security in Central Asia.

Ministers discussed ways of addressing shared regional problems in areas such as the management of water and energy resources; the introduction of new energy-saving technologies and renewable energy sources; and the efficient development of the transit and transportation potential of Central Asia.

A separate meeting with Japan’s Prime Minister, Yoshihiko Noda, offered the opportunity for further exploration of important aspects of regional cooperation and partnership.

After this week’s meetings, Japan pledged to contribute USD 700 million to joint projects across five areas: trade investment, environment and energy-saving, narrowing the wealth gap, cooperation on disaster prevention and cooperation in stabilizing Afghanistan.

“Kazakhstan welcomes the constructive continuation of the “Central Asia plus Japan Dialogue”, which signifies a higher level of relations between Japan and Central Asian nations. [The Dialogue] is important for every Central Asian country from the point of view of establishing relations of partnership with Japan and also strengthening multilateral cooperation in our region.”

Erlan Idrissov, Foreign Minister of Kazakhstan

“Promoting cooperation between Japan and Central Asia will contribute to sustaining peace and stability in Afghanistan and resolve problems in the international community,” said Japan’s Foreign Minister, Mr Gemba.

The Central Asia plus Japan Dialogue was established on Japan’s initiative in August 2004, to raise relations between Japan and Central Asia to a new level by creating an enhanced framework for cooperation. The four Central Asian members are Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan, while Turkmenistan participates as an observer. At the inaugural meeting of the Dialogue in Astana, the five main objectives were defined as: • The strengthening of peace, stability, and democracy in the Central Asian region • The strengthening of the region’s economic foundations, the promotion of reform and the social development of the region, including the correction of intra-regional disparities • The strengthening of intra-regional cooperation by the Central Asian countries • The maintenance and development of good relations between Central Asia and neighboring regions as well as with the international community Speaking after the meeting of Foreign Ministers, Mr Idrissov said that the Dialogue can make a real contribution to ensuring stability in the Central Asian region and to developing economic, commercial, investment, cultural and humanitarian cooperation.

The Minister said that the technological and intellectual prowess of Japan, combined with its rich experience of interregional economic cooperation, meant the country could act as a catalyst to advance many positive developments in Central Asia.

He emphasized that resolution of some of the region’s problems could be facilitated by an improved coordinated effort by Central Asian countries and a higher level of technological input, and welcomed Japan’s desire to imbue regional cooperation with a constructive spirit.

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OIC Foreign Ministers in Djibouti

Kazakhstan Completes OIC Chairmanship On November 15, Kazakhstan’s Chairmanship of the Council of Foreign Ministers of the 57-country Organization of Islamic Cooperation (OIC) drew to a close. Foreign Minister Erlan Idrissov handed over the reins to his counterpart in Djibouti at the meeting of the Council in the East African nation on November 15 - 16.

In a commentary published in the Gulf Times on November 16, Minister Idrissov reflected on the achievements of Kazakhstan during its tenure as chairman since June 2011 and on Kazakhstan’s ambitions for the future of the OIC. Kazakhstan took on the chairmanship for two reasons, he said: because the OIC provides an important mechanism for uniting the Islamic world at a time when pan-Islamic unity and solidarity is much needed; and secondly, because Kazakhstan believed that it could add important new impulses to the Organization’s long-standing objectives of promoting modernization in the Islamic world in line with the values of Islam based on peace, tolerance and human dignity.

“Based on the support and encouragement we have received from other member states and the OIC’s secretariat, we believe that our approach has contributed to strengthening the OIC and given it new impulses in the second half of its Ten-Year Program of Action. This began in 2005 and is aimed at promoting tolerance, modernization, wide-ranging reforms as well as good governance and promotion of human rights.”

Erlan Idrissov, Foreign Minister of Kazakhstan

Mr Idrissov recalled that when Kazakhstan assumed the chairmanship in June 2011 it was a particularly challenging moment, just after the events of the “Arab Awakening”, which were in some cases evidence of the lack of economic and social modernization that had delayed progress and deprived people of justice, stability and a positive outlook for the future.

Kazakhstan continues to believe that the OIC’s main focus should be on promoting economic development and competitiveness through trade and investment policies based on effective investment in education, science and technology.

Accordingly, the major initiatives proposed by Kazakhstan during its chairmanship included the establishment of a dialogue platform for the ten leading Islamic economies; the creation of an international center for innovation; support for the small and medium-sized business sector; and the development of a system of food security within the OIC. Kazakhstan also placed strong emphasis on formulating and implementing the OIC Special Program for Central Asia, a set of measures to promote economic and social development in the region and in neighboring OIC member states.

Another area of focus was the promotion of interfaith and interreligious dialogue within the OIC, in keeping with Kazakhstan’s experience as a country where Islam and Christianity co-exist peacefully along with numerous other faiths.

Afghanistan was a priority focus and Kazakhstan continued its support for the OIC’s long-standing efforts to promote a sustainable peace through socio-economic development and reconstruction. Through its bilateral assistance program, Kazakhstan is devoting considerable resources to re-developing agriculture in Afghanistan in order to support the economy and reduce unemployment.

Looking to the future, Minister Idrissov defined three main priorities for OIC countries: regional stability, gradual political modernization and strengthening the capacity of the OIC itself. He pledged Kazakhstan’s ongoing support for the efforts of the OIC to maintain a bold and purposeful agenda reflecting new priorities, while further strengthening its international role both through its own initiatives and interaction with organizations such as the G20, the EU, the OSCE and the Shanghai Cooperation Organization.

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Social Modernization of Single-Industry Towns

Serik Zhumangarin, Chairman of the Regional Development Committee of the Ministry of Economic Development and Trade

Over KZT 448 million has been allocated in 2012 to address the key problems of single-industry towns in Kazakhstan, many of which have suffered severe economic decline as the industry they were built to serve has dwindled away. The funds are the first wave of a total KZT 120 billion (USD 750 million) which will ultimately be provided for regeneration of these towns under the Development Program 2012 - 2020 approved

by Government last May.

In an interview on November 12, Serik Zhumangarin, Chairman of the Regional Development Committee of the Ministry of Economic Development and Trade, outlined how funds have been spent this year and how the broader program will unfold over the coming years.

Infrastructure and essential social services have been the key areas of focus so far, with investment in upgrading heat supply networks, roads, bridges and street lighting; renovating housing units, parks, sports grounds and parking lots; and building new waste disposal facilities and closing unauthorized dumping sites.

The Development Program identifies 27 single-industry towns with a total population of 1.5 million people, amounting to 16% of the urban population of Kazakhstan. Local representative assemblies (maslikhats) have been closely involved in drawing up comprehensive development plans for each of the 27 towns which will benefit from program funds.

The development plans are focused around three key areas: Firstly, economic diversification: the aim is to reduce dependence on a single, raw materials-based industry. Each town will receive substantial funding to develop one “anchor” project, which must fulfill three criteria: it must be in a non-raw materials sector, create at least 100 jobs and increase the industrial production of the community by at least 20 per cent.

Secondly, fostering the small and medium-sized business sector: credit financing will be made available at low interest rates and without sectoral restrictions; grants will be awarded to finance new production facilities; and Entrepreneurship Support Centers, business incubators and microcredit lenders will be established.

A partnership program between Government and major employers will also support and develop local small and medium-sized business, based on the example of copper-mining company Kazakhmys plc in Karaganda, where long-term contracts given to local producers have led to the re-opening of many small production facilities.

Thirdly, creating employment for the local populations: a comprehensive program will offer vocational and technical education for young people and training and reorientation for the wider population.

While unemployment in single-industry towns is about average for the country at between 5.5 – 8 per cent, the percentage of self-employed people is significantly higher at an average 40 – 45 per cent and as the local economies have declined, this sector of the population has proved particularly vulnerable to economic hardship.

The industrial heritage of the single-industry towns will not, however, be abandoned. Of the 27 towns, 19 are still operating the specialized industries which were for so long the major drivers of the regional economies: for example, all of Kazakhstan’s chromium ore (95% of chromium ore in the CIS) comes from Khromtau, while Zhitikara is home to the only producer of commercial asbestos in the country.

The 2012-2020 Development Program for single-industry towns is part of the far-reaching response of the Government to the tragic events which unfolded in the western city of Zhanaozen in December 2011. After months of high unemployment, layoffs and peaceful industrial protests, a labor dispute between oil workers and executives of the national oil company escalated into violence which led to the tragic loss of 16 lives and many more people injured.

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Also in The News…

• President Nazarbayev chaired a Security Council meeting in which he urged Kazakhstan’s institutions to strengthen cooperation with partners from the Central Asian region on issues of religious extremism, the fight against terrorism and drug trafficking, in particular in view of the withdrawal of coalition troops from Afghanistan in 2014. (Interfax-Kazakhstan) • Kazakhstan has ratified the agreement to form a Joint Board of Customs Agencies of the Customs Union, according to the presidential press service. Under the agreement, signed on 22 June 2011 in Moscow, Member States of the Customs Union will establish a joint board of customs agencies which will coordinate customs legislation, procedures and implementation in Russia, Kazakhstan and Belarus. (Novosti-Kazakhstan) • President Nazarbayev addressed the Second Congress of Zhas Otan, the youth wing of the Nur Otan party, on 16th November.

Zhas Otan was established in 2008. (Kazinform) • On November 12, Minister of Foreign Affairs Erlan Idrissov met with Madagascar’s Foreign Minister Pierrot Jocelyn Rajaonarivelo, and marked the 20th anniversary of the establishment of diplomatic relations between their countries. The sides discussed bilateral and multilateral cooperation, opportunities for trade and economic cooperation, Astana’s bid to host EXPO 2017 and information sharing between the Ministries. The Ministers signed a Memorandum of Understanding between Kazakhstan and Madagascar. (Interfax-Kazakhstan) • In a speech to City leaders on 12th November, British Prime Minister David Cameron vowed to open up promising yet neglected overseas markets like Mexico, Vietnam and Kazakhstan. He has recently nominated new trade envoys for the United Kingdom whose task is to boost British exports and business abroad. (Financial Times) • On 8th November during the Taraz Invest 2012 Forum, French renewables company Fonroche Energie and Zhambylgidroenergo agreed to establish a 2GW solar power station in the south of Kazakhstan. The two-phase project will start with 24MW equipment in 2013, which will eventually be increased to 2GW, representing 10% of the country’s electricity consumption. Kazakhstan is also planning the construction of solar cell factories in Ust-Kamenogorsk and Astana. (KazTag) • Lufthansa has announced plans to expand its presence in Kazakhstan and is looking for opportunities to include more Kazakh cities in its network, according to a 12th November statement by the airline’s General Manager for Kazakhstan, Kyrgyzstan and Uzbekistan Gabor Horvath. He noted however that there are limiting external factors at present. (Interfax-Kazakhstan) • Life expectancy in Kazakhstan is expected to rise to 70 in the coming years according to a statement by the chairman of the national statistics agency. In 2012, life expectancy stood at 69 years. (Novosti-Kazakhstan) • Kazakhstan’s Margarita Eliseeva won a silver medal at the World Youth weightlifting championship in Myanmar on 14th November, lifting 85kg in a snatch lift and 100kg in a clean and jerk lift in the category up to 53kg. Nursultan Rakhat also took home a silver medal in the 77 kg category. (KazTag)

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• Kazakhstan won four gold, five silver and three bronze medals at the world hand-to-hand fighting championships in Almaty: fighters Berik Shinaliev, Aset Toleuov, Aibek Khyrykbay and Shahmaral Dzhetpisov won gold; Rizaydin Raylin, Talgat Orazgaliev, Birzhan Agim, Nurgaliyev Kaltayev and Mahmoud Mukhamedzhanov took home silver medals; whilst bronze went to Zhanbolat Bisengaliev, Ruslan Muhambaev and Adilzhan Saidulayev. (KazTag) • Kazakhstan’s 12-year old chess player Zhansaya Abdumalik is now leading the youth World Championships after defeating her Chinese opponent. Dinara Saduakasova is second in the under 16s category, and Amirkhan Makhanov is also doing well in the 8-year old category. (Tengrinews) • The US cities of Boston and Washington, DC, are hosting a Kazakhstani film festival, “Steppe flowers”, from 14th to 18th November, according to Kazakhfilm. The festival aims to give the American public a unique opportunity to get acquainted with the modern culture of Kazakhstan, bringing together nations and cultures through cinema, accrding to the website. (Tengrinews)

Things to Watch…

• President of Sri Lanka Mahinda Rajapaksa will visit Kazakhstan on 19-21 November. Bilateral relations with Kazakhstan were strengthened after an official visit by President Nazarbayev to Colombo in 2011.

• Member states of the Bureau International des Expositions (BIE) will vote in Paris on 22 November to determine the host city for EXPO 2017. Kazakhstan’s capital Astana is competing with the Belgian city of Liège and has chosen “Energy of the Future” as a theme for its EXPO bid.

ASTANA CALLING is a weekly online publication of the Ministry of Foreign Affairs of the Republic of Kazakhstan Please send your requests and questions to pressa@mfa.kz

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