Astana Calling
A WEEKLY ONLINE PUBLICATION / WWW.MFA.GOV.KZ ISSUE NO. 341
President Visits Atyrau
UNDP, Government Collaborate on Energy-Efficient Lighting Project Kazakhstan Announces Currency Devaluation
Kazakhstan History: Symbiotic Nomads
Also In The News
Historic Kazakhstan
President Nursultan Nazarbayev (centre) and Minister of Oil and Gas Uzakbay Karabalin (right) review the construction of hydrocarbon production and deep oil refining complexes to be built in Atyrau
President Visits Atyrau, Emphasises Developing Education and Small Business President Nursultan Nazarbayev visited the Atyrau region on Feb. 6 where he spoke at the Atyrau Intellectual School of Chemistry and Biology, visited the Atyrau oil refinery and met with the region’s entrepreneurs and other public representatives. During the public meeting at the school, Nazarbayev stressed the importance of developing education in the country. The Atyrau Intellectual School opened in September of 2013 and is the 15th school in the Intellectual Schools system. Nazarbayev noted that the schools had produced more than 1,000 graduates so far, many of whom went on to attend the Nazarbayev University in Astana. The President also commented on the possibility of changing Kazakhstan’s name. “The name of our country ends in ‘stan,’ like the other states of Central Asia. At the same time, foreigners take an interest in Mongolia, with a population of only 2 million people—but its name does not end in ‘stan.’ Perhaps, eventually, it will be necessary to consider changing the name of our country to ‘Kazak Eli’ [land of the Kazakhs], but first this must be discussed with the people,” the President said. He also said that the multi-ethnic nature of the country was its great advantage. At the Atyrau oil refinery, Nazarbayev reviewed the ongoing construction of two new complexes, one for hydrocarbons production and the other for deep oil refining. Both are part of the State Programme of Accelerate Industrial-Innovative Development (SPAIID) and both are set to begin operation this year. Meeting with regional entrepreneurs there, Nazarbayev discussed the effects of the SPAIID, noting that 800 ventures had been launched, 700 billion tenge (US$4.5 billion) allocated for the project and 150,000 jobs created. The development of small and medium-sized businesses has been emphasised, he said, but needs more work. “This is a major issue for us: it allows us to provide people with jobs. The budgets of developed countries get 80 percent of their budgets from small and medium-sized businesses. As for Kazakhstan, 300 big ventures provide 80-90 percent of the budget revenue. It means that small and medium-sized businesses are not properly developing, and I would like to discuss with you the reasons for this situation,” the President said. Nazarbayev also emphasised the need to develop small and medium-sized businesses in his recent State of the Nation address. Alia Bekkuzhieva, head of the region’s employers’ union, said attitudes toward livelihoods have been changing and many of the region’s citizens, realising the limits of the oil industry, have begun to open their own businesses. Governor of Atyrau Baktykozha Izmukhambetov reported on the socioeconomic development of the region. He said that industrial production had grown by 8.8 percent in the region last year and five new agribusiness projects had been launched. Agriculture is one of the country’s priority development sectors. Nazarbayev instructed Regional Development Minister Bolat Zhamishev, who attended the meeting, to ramp up the construction of key infrastructure and social facilities as well as efforts to ensure the region has enough water.
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President Nursultan Nazarbayev (center) at the Akorda Presidential Palace with Prime Minister Serik Akhmetov (left) and Chairman of the National Bank of Kazakhstan Kairat Kelimbetov
Kazakhstan Announces Currency Devaluation Kazakhstan’s National Bank announced on Feb. 11 that the official rate of the Kazakh tenge (KZT) fell to 185 per U.S. dollar with a range of three tenge on either side. The National Bank stopped maintaining the exchange rate at the previous level of 155.56 per dollar as of Monday to decrease currency interventions on the market and stop interference with the formation of the tenge exchange rate. According to Chairman of the National Bank Kairat Kelimbetov, the bank will take measures to maintain the national currency at about 185 per dollar. “We will continue to level the sharp surges. The National Bank is well positioned to defend the new equilibrium rate,” Kelimbetov said. Kelimbetov said he sees no connection between this devaluation and the one held in Kazakhstan in February 2009. He also stressed that the National Bank and the government will seek to keep this year’s inflation rate between 6-8 percent. Prime Minister Serik Akhmetov held a press conference on Feb. 11, which also included comments from Kelimbetov, Minister of Economy and Budget Planning Yerbolat Dossayev, Minister of Agriculture Assylzhan Mamytbekov, Minister of Labour and Social Protection Tamara Duissenova, Minister of Oil and Gas Uzakbay Karabalin and others. Akhmetov said “the task of the government and governors of the regions is to ensure stability and prevent an increase in prices for socially important food products.” He issued instructions to ensure that the transition goes as smoothly as possible, including stopping excessive demands for basic goods, and he said the situation would be monitored daily. He also ordered strict measures be taken to ensure wages and social benefits are paid promptly. President Nursultan Nazarbayev met with Akhmetov and Kelimbetov on Feb. 12. According to his press office, the President also stressed that the devaluation should not adversely affect ordinary citizens. He instructed state authorities to monitor prices and respond strongly to possible currency speculation.
Chairman of the National Bank of Kazakhstan Kairat Kelimbetov at a recent Central Communications Service briefing
The President, said, “This is a purely financial measure aimed only at improving the economic situation of our businesses, each of which employs 10,000-40,000 people. Our economy will receive additional income, and overall it will have a positive impact on its further growth. To that end, the decision was made.” Kelimbetov noted that six months of research had gone into the decision, and Akhmetov noted that the country has sufficient stocks of socially important petroleum products, including gas and diesel gas, to avoid price increases for the next 30-45 days and that the government has the resources to provide food assistance to special needs populations. There will be a decision next week on any price limits, he said. According to the Almaty-based National Bank, the country’s economy is closely integrated into the global economy and therefore must take into account changes in global financial and commodities markets. Currently, as a result of quantitative easing in the U.S., capital is flowing from developing markets to developed ones, leading to increased pressure on the currencies of those countries. Amid uncertainty over the further development of the world economy, volatility on global financial and commodity markets has increased. Another reason the bank gives for the devaluation is the lingering instability of the Russian rouble. In 2013, the Russian national currency fell 7.1 percent against the dollar, with the downward trend persisting into January 2014. Another contributing factor is the state of Kazakhstan’s balance of payment. Despite the current account surplus, there has been an increase in imports, including imports of consumer goods. To further cut inflation rates to 3-4 percent, the National Bank plans to shift to inflation targeting with a measure calling against tight regulation of the tenge exchange rate. In the longer run, the tenge exchange rate will be defined by macroeconomic factors.
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UNDP, Government Collaborate on EnergyEfficient Lighting Project With lighting expected to reach 36 percent of Kazakhstan’s energy consumption by 2015, the country is looking for energy-efficient lighting solutions. The Ministry of Industry and New Technologies of Kazakhstan and the United Nations Development Programme’s Global Environmental Facility (GEF) are working together on a project, “Promotion of Energy-Efficient Lighting in Kazakhstan,” to develop electric energy, improve energy efficiency and promote energy saving. The project aims to transform the lighting market in Kazakhstan and gradually replace outdated and inefficient lighting systems. Syrym Nurgaliyev, project manager, and Dinara Tamabayeva, public relations specialist, both from the UNDP, discussed the project’s goals and its plan for achieving them.
Who initiated the project and why was the project launched in Kazakhstan? The Ministry of Industry and New Technologies decided that it was necessary to introduce in Kazakhstan all available methods of energy efficiency—renewable energy, modernisation of construction materials, modernisation of systems—and among them was the issue of increasing lighting efficiency. … The ministry asked the UNDP to share worldwide advanced experience and best practices and introduce them here in Kazakhstan.
How will the project function? The project consists of four components. The first is the implementation and creation of policies and measures introducing energyefficient lighting. This includes regulatory issues. … The UNDP helps the Ministry of Industry and New Technologies amend laws regarding construction rules and regulations and sanitary rules and norms and adopt new standards. … The second component is the development of a market for energy-efficient lighting by increasing the access of market participants to energy-efficient technologies, which may involve discount and coupon programmes. Within this component, we show the population the advantages of energy-efficient lamps. … This year, we want to hold a comprehensive programme, create a discount programme and have pilot events with producers and supermarkets. The third component is increasing awareness of and interest in energy-efficient lighting among consumers. Within this component we are developing video ads and handouts. We plan to organise big events this year, like campaigns and flash mobs, to increase the level of awareness of energy-efficient lighting. The fourth component is the launch of a number of pilot projects showing the practical implementation and commercial benefits of the project.
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Volunteers of the UNDP project help promote energy-efficient lighting in Kazakhstan
In 2013, we ran a project introducing efficient lighting in schools in the Akmola and East Kazakhstan regions. The akimats provided us with information on schools and co-financed the project, and the effect was very good. … We changed the lighting system in schools there and children could better see the board even from the back desks. … This year we plan to work on street lighting. We will show how to illuminate streets; we already have streets lighted with light-emitting diode [LED] lighting in Astana. We also choose one regional centre, one small city and one rural area. We don’t take into account Astana and Almaty because these cities are very well lighted.
How do you choose the areas in which to introduce energy-efficient lighting? We have certain criteria: we need co-financing, we don’t need modern equipment … and we also need the support of akimats.
“We have a special working group to choose the areas, [which includes] representatives of Kazakhstan’s communal housing services, the Ministry of Environment and Water Resources and the Ministry of Industry and New Technologies.” Who is financing the project? It is financed by the Global Environment Facility though the UNDP. When we talk about financing, we mean that we help create institutional frameworks. … Kazakhstan has its own funds. We need to show where to allocate the funds. At what stage is the project right now? We have analysed the existing regulations and what needs to be done in terms of norms and rules and standards and this year we will implement our results. This year, we will introduce eight standards for LED lighting … . We are also working with other countries within the Customs Union so our norms can be taken into account in the customs regulations and will be legitimate for all three countries [Kazakhstan, Russia and Belarus]. … We are creating requirements for the supply of goods because currently there are none regarding lamps—they are just supplied. In order to check the quality, we plan to open a testing laboratory, which will issue certificates. Who is involved in writing bills? We have a working group; we’ve hired specialists in this field, experts on sanitary norms and rules. We hire companies that do analysis; we hold tender and the most experienced company wins. … We also have international best practice experts. Who controls the introduction of new technologies on the ground? We monitor the lighting, conduct social research and control the level of lighting. What will happen once the project is completed? We plan to create such conditions by 2016 that the work we are doing now will continue without our participation. … The work will be based on regulatory documents we are elaborating now.
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Central Asia’s history includes agriculturalists and nomads
Central Asia: A Unique Symbiosis of Cultures Central Asia has long held an important position in the world and is an area of unique resources and cultures. Central Asia’s special nature can be traced back to its origins as a symbiosis of the worlds of agriculturists and nomads. Originally, Eurasia was inhabited by hunter-agriculturists. As a result of the challenges of living on the steppe, some of these agriculturists started to wander in search of better conditions while others accepted the challenges successfully and adapted to new conditions. In the region, therefore, we have an intertwining of the processes of cultural creation and environmental creation, both of which took different paths but evolved together and ended up linked in a very special way. Thus, the symbiosis of two equally self-sufficient, independent types of human communities, each having its own logic of development, cultural dominance, values, goals and priorities, should be regarded as the main denominator in defining the phenomenon of the Central Asian civilisational community. Considering Central Asia in the context of a civilisational paradigm does not mean assessing the national social and cultural community which has communicative unity and historical experience connected with a particular national identity. Rather, it is only pointing out the unity of the continent and special factors setting apart some civilisational areas where the process of interaction and mutual influence of different cultures took place. This underlines the fact of tolerance towards each other, not integration of human cultures. At the same time, all reflections about the symbiosis of the communities are possible only given the acceptance of the significance of the spread of Islam and the spread of Turkic languages, which determined the historical and cultural homogeneity of the Central Asian region. Eurasian nomads created their own mechanisms for existing in the world, the essence of which was harmonious development and the co-evolution of society and nature. Nomadic civilisations are natural and environmentally friendly; they do not create big changes in their surroundings. The traditions of nonintervention in natural processes, preserving and caring for natural landscapes and contemplative perception of the cosmos are associated with nomads. Nomads, who live by the principle of “all I own I carry with me,” cannot express themselves in cities or temples, statues, writing or nourished lands. Thus, we can make an important suggestion about nomads` worldviews: that the notion of space should prevail over the notion of time. Special vitality is given to “empty” territories, where nothing seems to exist. There, the nomad does not feel the traces of his ancestors in his footsteps, but he sees them with his inner sight, said George Gachev in “Mentalities of the Nations of the World.” As we see, the nomad is a master of a vast area, concerned not only about himself and his relatives, but also about the inviolability of his environment. He uses his intelligence and willpower, grassland changes, maintenance of pasturage sequencing and different types of migration, which lay the foundation for a distinctive socio-cultural organism. Even the trivial-seeming character of interseasonal nomadic migration and the utilisation of flora are organised to maintain the balance of the ecosystem. Eurasian nomads are defined by horse riding, which is associated with belligerency, mobility, dynamism and impulsiveness. This explains the views of some foreign researchers, expressed by Gilles Deleuze: “A place where flat space appears, where it grows and stretches in all dimensions, is a place where a nomad appears. He grows together with it and extends it: a nomad gives birth to a desert in the same way as he is born by it.” According to Deleuze, in contrast with the agriculturist, the nomad has absolute movement and speed because “... even if the route of a nomad lies in common roads, it is still not the way known to sedentary nations. That road splits a space, giving to each person a certain part of the space and ensuring the connection of the parts of the roads. The nomad`s route is a complete contrast to the road. It splits people in infinite space and indefinite territory.”
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Agricultural civilisations were connected to river valleys and could exist only in definite space frames. Vitally important for them was coordinating their activities strictly with natural cycles. It is no accident that, having reached a certain level of prosperity, they regarded their civilisation as their supreme value, with its rules, rhythms, traditions and beliefs. As opposed to nomadic civilisation, here we can observe a sharp contrast between human activity and the environment. Concerned first of all with order, regulating chaos, the agriculturist tries to cultivate the world as a garden and a field. He endeavours to change space, which is expressed not only in agriculture, but also in urban development. Here we are talking about classic, city-building cultures. Agriculturists cultivated lands, organising space into empires in contrast to the chaotic—to their eyes—world of nomad. Here we see how the lifestyles of these societies result in different attitudes. Agriculturalists, concerned with the material sphere, emphasise individualism, rationalism and steady habits to create comfort and order. Nomads value syncretism, unity with nature and inactivity. The union of these two societies can be seen in patterns of regional barter, demographic exchanges and the exchange of services, amenities and information. The character of these relations also suggests, in addition to mutual economic interests, the existence of an unconscious mutual attraction and sympathy, which has been defined as complementarity. The two had to create original ways to work together and pay each other for using the same environmental niche. “Nomads pasture on the fields where crops have already been gathered. Sometimes they pay for using the crop residues and sometimes they are paid for the manure, which nourishes the fields,” noted Anatoliy Khazanov in 2000 in “Nomads and the External World.” Famous nomad researcher Nikolai Kradin defined three types of nomadic empires according to the character of the relationship between the nomadic and agricultural systems: cases of no integrated economic and political systems, cases where nomads and agriculturists functioned as the same political organism but there was no close connection between economic systems and cases where empires were formed after nomads conquered agricultural territories so nomads and agriculturists with urban populations were the part of the same social organism. All three types of empires can be found in Central Asian history. Despite the strong influence of foreign cultures, one of the major factors of the unity of Central Asia is a national identity, with its own traditions and political life. Civilizations are presented today according to external, material and technical parameters that give them the definition “civilisations,” but internally they are also “socio-cultural organisms.” They are carriers of symbols, styles, mentalities, codes and so on that we can call the system of values of certain cultures and reflect former traditions and civilisations. The phenomenon of the Central Asian unity with which the modern generation associates itself serves as a clue to comprehending the essence of the concept of unity in diversity. The coexistence of cultural elements of different origins reflects the times when two economic types merged together to give birth to the notion of the Central Asian world. The author is Head of the Department of Source Studies, Historiography and National History of the Institute of State History of the Committee of Science at the Ministry of Education and Science of the Republic of Kazakhstan.
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Also In the News... •
Kazakhstan appoints ambassador to Russia A Feb. 11 presidential decree appointed former secretary of state Marat Tazhin as Kazakhstan’s Ambassador Extraordinary and Plenipotentiary to Russia. Before becoming secretary of state, Tazhin was minister of foreign affairs, head of the National Security Committee and advisor to the President. Galym Orazbakov, former ambassador of Kazakhstan to Russia, was appointed the head of the Agency for Competition Protection. (akorda.kz)
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Minister of Foreign Affairs discussed regional cooperation and security with Special Representative of UN Secretary General Kazakh Minister of Foreign Affairs Erlan Idrissov discussed regional security, water and energy resources and global and regional cooperation with Special Representative of the United Nations Secretary-General and Head of the United Nations Regional Centre for Preventive Diplomacy for Central Asia Miroslav Jenča at a meeting on Feb. 10. Idrissov noted that cooperation with other Central Asian states is a priority for Kazakhstan and that the country supports the Joint Plan of Action for the Implementation of the UN Global Counter-terrorism Strategy in Central Asia. The two sides also discussed the stabilisation of Afghanistan, with Idrissov noting Kazakhstan’s contributions to that process, which include humanitarian and education assistance. (mfa.gov)
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1.1 trillion tenge allocated for pensions in 2013, Ministry to focus on preventing workplace injury Minister of Labour and Social Protection Tamara Duisenova reported that budget pension contributions for 2013 reached 1.1 trillion tenge and were distributed to 1.8 million retired people. Her department will also be focusing on preventing workplace injuries, she said, as employers now pay over 78 billion tenge a year for on-the-job injuries. Kazakhstan’s Civil Code mandates that employees injured while working receive benefits related to their monthly wage according to the extent of their injury. Payments for disabilities are coordinated between the state budget, social insurance funds and insurance companies. (primeminister.kz)
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Regional theatres need funding, says Minister of Culture and Information Regional theatres must be rebuilt and more funding provided for theatre productions, Minister of Culture and Information Mukhtar Kul-Mukhammed said a government meeting regarding regional theatres chaired by Prime Minister Serik Akhmetov on February 11. Kul-Mukhammed said that 80 percent of regional theatres need to be rebuilt and much of their equipment hasn’t been updated in 30 years. At the meeting, Kul-Mukhammed, regional governors and the mayors of Astana and Almaty delivered reports. (primeminister.kz)
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Astana to host third international exhibition KADEX 2014 The Ministry of Defence press service reports that the KADEX 2014 international exhibition will be held in Astana on May 22-25. KADEX 2014 will consist of five sections: armament and military equipment for ground and naval forces; aviation and air armaments, air defence systems and means; special use forces; IT, communication systems and equipment; and combat service support and equipment support. The exhibition will consist of an international military conference and session of the business council of the Collective Security Treaty Organisation (CSTO) Intergovernmental Commission on Military-Economic Cooperation and the Coordinating Board of Commissioners of the CSTO member states on advertising issues and exhibition activities. (ortcom.kz)
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Kazakhstan Olympic uniform rated among the best The uniforms worn by team Kazakhstan at the Opening Ceremony of the Sochi Olympics were listed as one of the nine best on Russia’s Sports.ru website. Other top informs included the shorts worn by athletes from Bermuda and the Cayman Islands, Germany’s rainbow outfits, Sweden’s remarkable trousers, Great Britain’s hats, New Zealand’s flag bearer Shane Dobbin’s fur mantle, the U.S.’s stars and stripes outfits and the only representative from the Kingdom of Tonga, who wore palm trees on his uniform. Kazakhstan has 58 athletes competing in this Olympic Games. (tengrinews.kz, inform.kz)
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Astana Arlans take down Mexico’s Guerreros, 3-2 Astana’s Arlans denied Mexico’s Guerreros a chance at redemption, beating them 3-2 in a victory that saw Kazakh head coach Sergey Korchinsky pull out all the stops. Astana lost the first two fights of the night in the flyweight and lightweight categories, but came back with victories by welterweight Manat Omerzakov in his debut fight, light heavyweight Hrvoje Sep and super heavyweight Filip Hrgovic. The Arlans have already beaten the Russian team, 4-1. They will face Cuba’s Domadores in Havana on February 21. (tengrinews.kz)
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Gennady “GGG” Golovkin defends title in Monaco Kazakh professional boxer Gennady “GGG” Golovkin retained his WBA and IBO middleweight titles and extended his winning streak to 29-0 with 26 knockouts by defeating Ghana’s Osumanu Adama with a technical knockout in seven rounds in Monaco on Feb. 2. Adama became Golovkin’s 16th back-to-back KO. This is the 10th time Golovkin has defended and retained his title. (tengrinews.kz and astanatimes.com) ASTANA CALLING A WEEKLY ONLINE PUBLICATION / WWW.MFA.GOV.KZ Please send comments and questions to pressa@mfa.kz
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