Astana calling no 333

ASTANA CALLING

Ministry of Foreign Affairs Republic of Kazakhstan

Central Communications Service for the President of Kazakhstan

A WEEKLY ONLINE PUBLICATION / WWW.MFA.GOV.KZ ISSUE NO 333 / FRIDAY, DECEMBER 6 2013

Astana Growing Faster than Anticipated President expresses concern

First Almaty Investment Forum Takes Place Prime Minister points to favorable investment climate

New Deputy PM Speaks Up for Women

KazCosmos Reaches for the Stars

Kazakhstan “doing well, could do better”

Ambitious development program for Kazakhstan’s Space Agency

News from the Government in Brief

Also in the News

President Nazarbayev reviews the development plan for Astana

Astana Growing Faster than Anticipated When President Nazarbayev decided in the 1990s to move the capital from Almaty to the then small provincial town of Akmola, there was a great deal of surprise in Kazakhstan and abroad. Yet, Akmola, renamed Astana – meaning “capital” – has been transformed in less than two decades into one of the most modern and exciting cities in Asia. In fact, some commentators have even called Astana, the “Miracle on the Steppe”.

It is inevitable that the rapid growth of Astana has created new challenges. The growth in population is one such phenomenon.

Astana’s planners calculated that the population of the capital would reach 900,000 sometime in the 2020s – but the city’s population is already at this level. When the population of a city grows more quickly than expected, it brings with it complications for housing and infrastructure. The President recently called a meeting with leading officials, including Prime Minister, Serik Akhmetov, the Mayor of Astana, Imangali Tasmagambetov, and the Governor of the Akmola Region, Kosman Aytmukhametov, to address these questions.

President Nazarbayev tries out Astana’s public transport system

The President is particularly concerned that construction is not taking place in a number of places where it should be happening. Some 11,000 hectares of land were handed over for development, yet have not been returned to the state. Another 711 plots of land have been set aside for construction; but nothing is happening there. In 2008, a number of landowners signed agreements with the state to sell land for development. But now that those agreements are being called in, the prices which the landowners are asking have risen hugely.

President Nazarbayev also expressed his views on the cost of housing in Astana. He cited the “Europe Palace” residential development, where apartments which are advertised as selling for USD 1,000 per square meter (sq.m.) are going for USD 3,500. The “Highville” complex is supposed to cost USD 1,500 per sq.m. Prices are reaching USD 4-5,000.

There are also questions, the President said, about building materials. It appears that cement factories are trying to cash in on high demand by raising their prices by as much as five-six times. State authorities, such as the Agency for the Defense of Competition, are not doing their job properly, President Nazarbayev continued. And, he went on to say that this is not just an issue in Astana, but nationwide particularly as many buildings are in need of repair.

Much of the development of areas around Astana has been rapid and unplanned. The population in the suburbs has already outgrown the predicted figure for 2015. There are 156,000 people living in the suburbs, with another 175,000 waiting for accommodation. People are putting in requests based on the principle that they are entitled to a certain size of plot, but they are ignoring the fact that this will work only if the area has proper communications. It is pointless, the President said, in offering land for development if the ground is not ready. President Nazarbayev has consequently ordered a moratorium on any more land in a 30-km zone around Astana being given over for construction.

The President spoke also about problems with over-crowded transport in the city and instructed the Mayor to produce a plan for better transport. This and other instructions from the President regarding Astana’s further development were later discussed at a meeting of the government.

“The population of the city is growing and has reached 900,000, although we had planned to reach that figure only in the period 2020-2030. So the construction of the city is not keeping up with the growth of the population, which is causing a variety of difficulties.”

President Nazarbayev ASTANA CALLING / ISSUE 333 / 2

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Prime Minister Serik Akhmetov addressing the Almaty Investment Forum

First Almaty Investment Forum Takes Place The First Almaty Investment Forum took place on December 3-4 and provided an excellent opportunity for Kazakhstan and Almaty in particular to showcase the opportunities which the country and the city offer. Attendees included businesspeople from Kazakhstan and abroad as well as government officials. economists and representatives from investment companies and financial institutions. The Prime Minister, Serik Akhmetov, told the Forum that in 2012 foreign investment in Kazakhstan was equivalent to USD 6,500 for every member of the population. He said this was an indication of the favorable investment climate which has been created in the country.

The Prime Minister went on to point out that there are now some 8,000 enterprises in Kazakhstan operating with foreign capital, including leading multi-nationals.

Mr Akhmetov emphasized the positive investment situation in Kazakhstan by highlighting the removal of customs duties on the import of certain types of equipment; special land grants; tax breaks; and the easing of visa restrictions.

More specifically, the Forum showcased investment opportunities in Almaty itself. The Akim (Mayor) of Almaty, Akhmetzhan Yesimov, spoke about the city’s attractiveness for foreign investors.

Firstly, he highlighted Almaty’s place in the wider economy of Kazakhstan. With a population of 1.5m, Almaty is not only the largest city in Kazakhstan but is home to almost 10% of the country’s population. In 2012 the gross regional product amounted to KZT 5.6 trillion, which is equivalent to USD 25,000 for each inhabitant of Almaty, and is the highest of any region in Kazakhstan. This compares favourably to the gross domestic product (GDP) of countries such as the Czech Republic, Poland and Hungary; and is significantly higher than the GDP of Bulgaria, Romania and the other countries of Central Asia.

As in many developed countries, small and medium businesses form the backbone of the economy in Almaty. “Every fourth entrepreneur in Kazakhstan does business in Almaty,” Mr Yesimov declared. Almaty is also the country’s financial centre.

But the Akim also made an appeal to the authorities for something which would improve the situation still further: “One of our main tasks is to improve still further the investment climate by lowering the bureaucratic barriers.”

Turning to specific projects, Mr Yesimov spoke about investment opportunities in Almaty’s industrial zone. The infrastructure in the zone is being created by the state; the city authorities want to attract investors to locate their production facilities there. Plots will be put out to tender in the spring in the following sectors: pharmaceuticals; machine-building; food production; construction; furniture; light industry and the chemical industry. “We are planning to place over 100 enterprises in the industrial zone,” said the Akim, “creating some 20,000 work places. We already have 13 projects on the list with an investment total of USD 153m.”

Another specific project is the ski resort to the south of Almaty. This has already attracted the world’s leading experts in this area. Plans are underway to create 77 slopes with an overall length of 65km and a ski village with 1,300 rooms. This will create 5,000 new jobs– the first stage in a project which will eventually lead to 30,000 new jobs. As Mr Yesimov said, “Job creation is the number one issue for the city of Almaty.”

New methods for financing projects were discussed at the Forum, as were the development of transport and logistical infrastructure in and for the city; the national innovation system; tourism; and the move towards a green economy. The organizers of the Forum have discussed making it an annual event.

“This Forum has a massive significance for our city. We are open to new ideas for innovation and investment…

Experts and politicians have noted that Kazakhstan is developing dynamically and at a great pace.”

Akhmetzhan Yesimov, Akim of Almaty ASTANA CALLING / ISSUE 333 / 3

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New Deputy PM Speaks Up for Women The Chairwoman of the National Commission for Women’s Affairs, Family and Demographic Policies, Gulshara Abdykalikova, gave an interview last week to “The Astana Times” about the position of women in Kazakhstani society. The day after the interview was published, it was announced that Ms Abdykalikova had been appointed Deputy Prime Minister.

Ms Abdykalikova was interviewed in her role as Chairwoman of the National Commission for Women’s Affairs, Family and Demographic Policies. Having spent her career in local and then national government, she was first asked if she had come across any obstacles as a woman politician.

“I won’t say I’ve faced any particular obstacles because I’m a woman,” she said. “Just like in any other sphere, in politics you have to be purposeful, competent, hard-working and have the ability to work with people.” Ms Abdykalikova went on to say that politics is a difficult job for anyone but that in Kazakhstan men and women have equal rights. She contrasted this with the position of other women in the Central Asia region. She singled out two women from Kazakhstan’s history, Rabiga-Sultan Begum and Khansha Aiganym, who were prominent leaders of their people. In fact, Khansha Aiganym, the 230th anniversary of whose birth has been marked in Kazakhstan this year, ruled the nation after the death of her husband, Ualy Khan.

Turning to modern-day politics, Ms Abdykalikova held up Scandinavian countries as good examples to follow in the way they elevate women in politics. In Sweden, 44.7% of members of parliament are women. And in Norway, 47% of government employees are women. Kazakhstan has a long way to go to match such figures but strong progress is being made. In 2011, 14% of deputies in the upper house of parliament, the Senate, were women. This represents twice the number that were in the Senate in the 2004 intake. This figure has subsequently increased to 25.2%. Importantly, the number of women in the lower house of the parliament (the Majilis) has now reached 24.3%. Clearly, progress is being made as now one quarter of deputies in both upper and lower houses are women.

Ms Abdykalikova pointed out that in post-Soviet times, women have tended to be responsible for, “the most complicated spheres such as healthcare, economic integration and social protection”, and that they have worked hard to improve the position of families, women and children in Kazakhstan. Ms Abdykalikova praised President Nazarbayev for his efforts to improve the position of women in Kazakhstani society. The new Deputy Prime Minister sees an international aspect to this issue, too: “According to the World Bank, the achievement of gender equality can enhance the productivity per employee up to 40%. And what leader would not be interested in this?”

Ms Abdykalikova was asked whether there was a plan to increase the number of women in the decision-making process. She said that under the Action Plan women should make up 30% of decision-makers by 2016. “What is more important,” she added, “is that there is an understanding in society, an understanding of the most forward-thinking male leaders. We have almost reached the target in parliament. During the recent 15th Congress of the Nur Otan party, it was decided that women in its political council will make up 30%. And in the Atameken Union, women make up 50%. I hope these figures will be the basis for our further perspectives.”

Gulshara Abdykalikova: Deputy Prime Minister of Kazakhstan Gulshara Abdykalikova was born in 1965 in the Syrdarya region of Kyzylorda Oblast in southern Kazakhstan. After gaining a PhD in Economics from the Dzhambul Technological Institute of Light and Food Industry, she worked in the regional department of social services in Kyzylorda. Moving up to the national level, Ms Abdykalikova was Director of the Human Services and Social Policy Department in the Labor and Social Security Ministry of Kazakhstan; Deputy Minister of Labor and Social Security; and CEO of the state-run Life-Insurance Company.

Ms Abdykalikova went on to serve as Minister of Labor and Social Security, and in September 2012 was appointed Advisor to the President of Kazakhstan as Chairman of the National Commission for Women’s Affairs, Family and Demographic Policy under the President of Kazakhstan. On November 28, 2013, she was appointed Deputy Prime Minister of Kazakhstan by Presidential Decree.

“Women are willing and able to work in any field. They are ready to contribute to building a welfare society.

But certain conditions have to be created in order to do business. The sooner our society overcomes stereotypes and takes into account the economic potential of women, the faster we will build a desirable society.”

Gulshara Abdykalikova, Chairwoman of the National Commission for Women’s Affairs, Family and Demographic Policies; and Deputy Prime Minister ASTANA CALLING / ISSUE 333 / 4

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Meyrbek Moldabekov, Deputy Head of the National Space Agency, briefing media on the future development & work of the Kazcosmos agency

KazCosmos Reaches for the Stars KazCosmos, Kazakhstan’s space agency, has bold plans for the future. The Deputy Head of the National Space Agency, Meyrbek Moldabekov, talked in depth about these plans at a briefing this week. They include the creation of a remote sensing system to cover the whole of Kazakhstan; the launch of a new and upgraded communications satellite; and the construction of a plant in Kazakhstan to build spacecraft. KazCosmos is also devoting special attention to the training of personnel to equip them for new tasks, and for monitoring the ecological situation around the country’s Baikonur launch facility.

Kazakhstan has had its own space program since March 2007, when KazCosmos was established. Before this, the country’s first communications satellite, KazSat-1, had been launched in 2006 and operated for two years. KazSat-2 was launched in July 2011.

The jewel in the crown of KazCosmos is the Baikonur cosmodrome. Baikonur is the largest space launch facility in the world. It is also currently the only place from where manned space launches to the International Space Station can take place. Baikonur is currently managed by the Russian space agency, Roscosmos, and Aerospace Defence Forces, and has been leased from Kazakhstan until 2050.

Mr Moldabekov spoke at the briefing about the creation of a remote sensing system which will be the most up-to-date in the Commonwealth of Independent States (CIS). Designed jointly with the French company, EADS “Astrium”, the system is on a par with any foreign competitors. It operates a unified system of monitoring of the environment, natural resources and emergency situations.

As Mr Moldabekov explained, “The introduction of this technology, using data gathered in space, will have a huge effect on agriculture, the emergency services, environmental protection, defence and national security, geodesy and cartography. For example, with the aid of this system we shall have better warning of natural disasters and will be able to deal better with their consequences, which often lead to loss of life, destruction and massive financial cost.”

Another major development about which Mr Moldabekov spoke is the third national satellite for Kazakhstan, KazSat-3, which is due to be launched in the first quarter of 2014. With a footprint covering the whole of Kazakhstan, KazSat-3 should be able to satisfy fully the demands of the television market, GPS systems, the internet and the transfer of data.

Of major strategic significance to Kazakhstan’s space project will be the construction of a facility where spacecraft will be fully assembled and tested. Mr Moldabekov was keen to point out that at present nothing on this scale exists in the CIS. But the Deputy Head of the space agency also said that the agency’s plans are not simply about equipment. The machinery is only as good as those who operate it, and a major program is underway to ensure that the staff of the agency are of sufficient calibre and have the correct training. KazCosmos is looking to the “Bolashak” educational program to provide suitably qualified people.

Another aspect of the program of which KazCosmos is acutely aware is the possible effects it may have on the environment.

This was underlined by the crash of a Russian Proton-M rocket shortly after take-off on July 2 this year. As well as a thorough clean-up program of the whole area affected by the crash, talks are ongoing with the Russian authorities to try to prevent such an accident happening again.

“At present, the activities of KazCosmos are following two strategic courses: the first is the creation and development of a space infrastructure; and the second is the development of a scientific and scientific-technical base for all our space activity.”

Meyrbek Moldabekov, Deputy Head of the National Space Agency

ASTANA CALLING / ISSUE 333 / 5

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News from the Government in Brief EU-Kazakhstan Parliamentary Cooperation Commission meets in Brussels A delegation from Kazakhstan was in Brussels on November 28-29 for the 12th session of the EU-Kazakhstan Parliamentary Cooperation Commission. The six-person delegation was led by the Deputy Chairman of the lower house of parliament, the Majilis, Sergei Dyachenko. The two sides examined a number of areas for cooperation, in particular the draft of the new Partnership and Cooperation, Agreement and trade relations. The sides also looked at the possibility of simplifying the visa regime between Kazakhstan and the EU and at strengthening relations in the areas of education and science, healthcare, human rights, protection of the environment and water resources.

On matters of global and regional security, the two sides agreed on the importance of cooperation in strengthening the security situation in Afghanistan, especially after the withdrawal of coalition forces in 2014. Other areas for such cooperation are the fight against terrorism, organized crime, and people and drug trafficking. (ortcom.kz)

Religious questions answered with modern communications Two initiatives were launched this week to help citizens have their questions answered about religion. An internet portal, “E-Islam” went online to answer all matters concerned with Islam and in particular as a way of combatting the threat posed by religious extremism and terrorism. The Chairman of the Religious Affairs Agency, Marat Azilkhanov, unveiled this new method of dealing with religious matters. There are seven headings on the site: “Islam”; “Islam in Kazakhstan”; “Islam in a secular state”; “Islam and society”; “Islam: a religion for good”; “Dialogue of religions”; and “Multi-media”. There will also be a scrolling banner which will give the latest news about religion and the situation in Kazakhstan and the world.

The second innovation was the opening of the “114 Hotline”, a dedicated telephone line to deal not only with questions about religion in general, but also to give psychological help to anyone suffering from the negative effects of destructive religious activity. Such a hotline is not only the first of its kind in Kazakhstan, it is the first time that such a service has been provided in the CIS. (ortcom.kz)

Prime Minister uses Tashkent SCO visit for bilateral meetings Prime Minister, Serik Akhmetov, travelled to the capital of Uzbekistan, Tashkent, on November 29 for a meeting of the heads of government of the countries of the Shanghai Cooperation Organization (SCO). Mr Akhmetov used the occasion to hold a bilateral meeting with the Premier of the State Council of China, Li Keqiang. The two men discussed the Kazakhstan-China trade relationship, in particular, oil and gas, energy, transit and transport and agriculture. Mr Akhmetov stressed the “positive dynamic” in the growth of trade with China. He invited Mr Li to visit Kazakhstan in 2014.

The Prime Minister also held a meeting with Noeleen Heyzer, the Executive Secretary of the UN Economic and Social Commission in Asia (UNESCAP). Mr Akhmetov told Ms Heyzer that Kazakhstan greatly values the programs which the UN is implementing in Central Asia, particularly the assistance being given to Kazakhstan’s trade and transit policies, and also UNESCAP’s cooperation in moving forward Kazakhstan’s global energy and ecology strategies, notably the “Green Bridge” initiative. (primeminister.kz)

“MEDIA EXPO-2013” Takes Place in Astana The second “MEDIA EXPO-2013” took place in Astana on November 27-28. The Exhibition was an opportunity for journalists from Kazakhstan’s media outlets to inform the general public about their work; and also for the journalists themselves to learn from experts in their field during master classes. The Exhibition was jointly organized by the “Senior Editors’ Club” and the Ministry of Culture and Information. 30 media organizations took part in “MEDIA EXPO-2013”, representing more than 50 printed publications, TV channels, information agencies and radio stations. They had stands displaying their work and how they carry it out and were open to discussions with members of the general public about what they do. In this way, the Exhibition helped to engender a strong connection with the public, and also showed a healthy rivalry between the different media outlets.

More specifically, the event gave the journalists themselves the opportunity to share their experiences and to discuss the challenges facing the media in today’s Kazakhstan. The organizers of the Exhibition had arranged also a number of thoughtprovoking presentations, such as by the journalism schools, the Gulnaz Alimgerey Studio School and the “KazMedia Ortalygy” School, which train young journalists; and the talk show presented by the “SUCCESSK” media agency, which specializes in image-building. The talk show featured the President of the “Senior Editors’ Club”, Kenzhebolat Zholdybay, and looked at the future prospects for the development of the printed media in the modern information era. (ortcom.kz) ASTANA CALLING / ISSUE 333 / 6

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Also in The News…

• President predicts GDP will continue to rise President Nazarbayev believes that the impressive growth rate which Kazakhstan has witnessed in recent years will continue in the near future. He predicts that in 2015-2016 per capita GDP will amount to around USD 20,000. The President was addressing students of the “Bolashak” scheme who study abroad on state grants. Another sign of progress is that Kazakhstan now holds reserves of USD 100bn. But he stated that Kazakhstan will not rest on its laurels. To be in the top 30 most developed countries in the world by 2050 – the target of the Strategy “Kazakhstan-2050” – GDP must reach USD 60,000 per capita. (ortcom.kz) • OSCE meets in Kyiv The 20th meeting of the Foreign Ministers of the Organization for Security and Cooperation in Europe (OSCE) countries is taking place in the Ukrainian capital, Kyiv, on December 5-6. The meeting takes place each year at the end of a country’s chairmanship of the Organization, and the delegation from Kazakhstan is being led by the Foreign Minister, Erlan Idrissov.

This year’s meeting will undoubtedly be overshadowed by recent political events in Ukraine, with demonstrations following Ukraine’s refusal to sign an Association Agreement with the EU. On the eve of the meeting, the OSCE Secretary General, Lamberto Zannier, went to see the demonstrations for himself. He said that the OSCE would be prepared to help foster dialogue between all sides in the dispute. (osce.org) • President visits Nazarbayev Center President Nazarbayev marked the Day of the First President on December 1 by visiting the new Nazarbayev Center in Astana. Designed by the British architect, Sir Norman Foster, the Nazarbayev Center will conduct research into the history of Kazakhstan’s independence, and into questions of the global economy and politics. Young people will be able to learn more about Kazakhstan’s history and also study languages, as part of Kazakhstan’s drive to create a tri-lingual population, speaking Kazakh, Russian and English. (ortcom.kz; akorda.kz) • “Eco-taxis” launched in Astana On December 1, President Nazarbayev and the Akim of Astana, Imangali Tasmagambetov, attended the opening of the capital’s first ecological taxi-park. The “Eco-taxi” project has been funded by AllurGroup with the help of the Mayor’s office, and as well as fitting Kazakhstan’s drive for a green economy, is also part of the build-up to EXPO-2017 in Astana.

Initially there are 100 taxis being driven by clean fuel. This will increase to 500 by 2017. (astana.gov.kz; akorda.kz) • Berlin Conference highlights Kazakhstan’s Role against Nuclear Weapons A conference took place in Berlin this week at the Academy of the Konrad Adenauer Foundation, to examine “Kazakhstan’s Role in Global Action against Nuclear Weapons”. The conference looked at Germany’s political, social and educational support for Kazakhstan’s nuclear disarmament efforts. A photo and art exhibition detailing the consequences of Soviet-era nuclear testing at the now-closed Semipalatinsk nuclear test-site was displayed at the conference. (mfa.kz) • New Year tree lit up in Astana On December 1 in Astana the traditional “yolka” – the New Year or Christmas fir tree – was lit up on the square in front of the Presidential Palace, the Akorda. As is tradition, the ceremony was led by “Grandfather Frost” and his helper, “Snegurochka”, accompanied by 30 local schoolchildren dressed as snowflakes. (astana.gov.kz) • “Sleeping Beauty” premieres at Astana Opera Two performances of a newly choreographed version of “Sleeping Beauty” will premiere at Astana Opera on December 6 and 7. The choreography is the work of the celebrated People’s Artist of the USSR, Yulia Grigorovicha. (ortcom.kz)

ASTANA CALLING A WEEKLY ONLINE PUBLICATION / WWW.MFA.GOV.KZ Please send comments and questions to pressa@mfa.kz

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