Astana calling no 337

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 337 / FRIDAY, JANUARY 17 2014

Affordable Housing Increasing Onus on regions to deliver

Kazakhstan Aims to Reduce Prison Population

Flying the Flag for EXPO-2017

Prosecutor’s Office announces ten-point plan

Sapar Iskakov embarks on Global Tour

News from the Government in Brief

Also in the News

Prime Minister Akhmetov presides over the briefing

Minister Zhamishev addresses the media

Affordable Housing Increasing It is a generally-recognized truth that something which is essential for the development of a prosperous modern society is a strong and affluent middle class. One of the best indicators of an affluent middle class is the growth in numbers of those owning their own homes. It was only in the latter years of the Soviet Union that private property was permitted, and it is only since Kazakhstan gained its independence in 1991 that a middle class has been able to develop and people have been free to own their homes.

In order to speed up this process, President Nazarbayev launched the program, “Affordable Housing-2020” in 2012. Under this scheme, the amount of affordable housing which is being built in Kazakhstan will increase every year to the point where, by 2020, ten million square meters will be constructed each year.

At this week’s meeting of the government, the Prime Minister, Serik Akhmetov, reported that 6.8m square meters of new affordable housing was made available in 2013, an increase on the figure for 2012. With the 10m sq.m. figure for 2020 in mind, the Prime Minister said that the target for 2014 must be 6.9m sq.m. At the same time, Mr Akhmetov warned a number of regions that they had not met their housing targets for sales or rented accommodation.

During the session, the Minister for Regional Development, Bolat Zhamishev, spoke about the challenges ahead. The Minister highlighted three questions in particular: housing construction which is funded by the national budget; housing which is funded through savings schemes; and the construction of the infrastructure for the housing industry.

Mr Zhamishev noted that most regions had responsibly used the money which had been allocated to them from the central budget for housing programs. But he warned those regions which have not utilized all of their funds, or not utilized them correctly, that from now on any money not spent would have to be returned to central government.

Further advice for the regional akims (mayors and governors) and the local authorities came from the Prime Minister. Mr Akhmetov pointed out that seven complexes had been opened in 2013 for making construction materials, and that a further eight such factories would be opened this year. As the amount of construction increases towards 2020, it is essential that local leaders do not lose sight of the need to keep these factories properly supplied with materials for two to three years in advance. “Such a task is facing you” said Mr Akhmetov, “and you must make sure that every factory is supplied.”

Mr Zhamishev had a warning, though, for the local authorities. The cost of housing construction will rise this year. For example, the projected increase for fourth class housing is from KZT 80,000 to KZT 90,000 per square meter, and for third class from KZT 90,000 to KZT 100,000. Even so, Mr Zhamishev said that the actual cost of a square meter of housing does not equate to the actual building cost. He suggested that local authorities investigate the possibility of attracting publicprivate partnership (PPP) money to help cover the cost of construction.

“The ‘Affordable Housing-2020’ Program foresees an increase every year in the amount of housing being made available.

By the year 2020 this should amount to ten million square meters. This year we will see the construction of 6.9m sq.m. funded by different sources of financing.”

Bolat Zhamishev, Minister for Regional Development ASTANA CALLING / ISSUE 337 / 2

Back to Contents

Zhakip Asanov, Deputy Prosecutor General of Kazakhstan

Kazakhstan Aims to Reduce Prison Population Kazakhstan has the largest prison population in Central Asia and one of the highest in the world. The Deputy Prosecutor General, Zhakip Asanov, was open about the issue last month when he presented the ten-point plan which his office has drawn up to deal with the problem.

Mr Asanov pointed out that the roots of the problem lie in Kazakhstan’s Soviet past, when a large number of corrective labor camps were created on the country’s territory. But he admitted that there has also been insufficient reform since Kazakhstan achieved independence, something the Prosecutor General’s department now wishes to address.

The statistics make for a sobering read. Shortly before the break-up of the USSR, one seventh of the Soviet prison population was incarcerated in labor colonies in Kazakhstan. Even in 1996, Kazakhstan was third in the list of the number of its citizens behind bars – only the US and Russia had more. Between 1975 and 2000, one in 35 citizens of Kazakhstan – and one in 18 of those between the ages of 18 and 50 – were in jail.

Over the past 15 years the situation has improved; Kazakhstan now occupies 35th place globally for the number of people imprisoned. There are currently 42,000 prisoners in Kazakhstan, including 3,000 women, 112 juveniles and nearly 2,000 foreigners. This causes not only social but economic problems, too. The budget for the criminal justice system has risen by 54% over the last four years and now stands at nearly KZT 50bn.

The government is keen to reduce the prison population, though not at any cost. Mr Asanov was quick to point out that serious offenders, such as murderers and others who represent a threat to the safety of the people, would not be released.

Nevertheless, the Prosecutor’s Office has come up with a ten-point plan to tackle some of the weaknesses of the prison system.

The first point on the list is that not enough has been done in the prison system to re-educate offenders; the emphasis is on punishment. Secondly, the legal code is excessively rigid. The “Kazakhstan-2050” strategy recognizes the need for more humane treatment of offenders and for the de-criminalizing of certain economic violations.

A third feature is a lack of experienced judges. In 2012, every third person convicted was sentenced to five to ten years in prison. Only 3% were ordered to carry out socially useful work, and just 1.5% were fined. This lack of experience is shown by the police, too, who use arrest as the basic method of restraining suspected offenders. This is the fourth aspect of the proposed reform.

The fifth point is the need to put more emphasis on reconciliation to solve issues. And a sixth problem is that too few prisoners are released early for good behaviour. The seventh point is that softer forms of punishment are often not considered. The eighth and ninth points were described by Mr Asanov as being “closely linked” – a lack of education in the system leads to high levels of re-offending; deal with the first problem and there are more chances of reducing the second. The final aspect relates to corrective labor colonies and questions whether they should be included in official prison statistics. There are 18 such colonies, housing some 3,000 offenders. But this is not simply a question of re-naming them. They could genuinely be turned into places to help re-integrate lawbreakers back into society with the chance that they would not then re-offend.

“The aim of this project is to remove Kazakhstan from the list of the top 50 countries for prisoner numbers.

We have pointed out ten basic reasons which have affected the growth of the prison population and presented measures to help to deal with this systematically.”

Zhakip Asanov, Deputy Prosecutor General of Kazakhstan

ASTANA CALLING / ISSUE 337 / 3

Back to Contents

Renowned businessman and traveller Sapar Iskakov has lent his support to EXPO 2017

Flying the Flag for EXPO-2017 Sapar Iskakov, the famous Kazakh businessman and traveller, is taking the official flag of EXPO 2017 on a 120-day tour around the world on the cruise liner Queen Elizabeth 6. The aim of the journey is to promote interest in EXPO-2017 as well as Kazakhstan’s role as host of the first ever exhibition of this kind to be held in Kazakhstan. It will take place from June to September 2017 in Astana.

Mr Iskakov’s trip is taking him to 26 different countries including Australia, Egypt, Japan, India, Italy, New Zealand, Portugal, Singapore, South Korea, Spain, Sri Lanka, Tonga, UK, US and Vietnam. All the countries on Mr Iskakov’s itinerary are participating in EXPO-2017.

Mr Iskakov will meet leading representatives of international organizations and businesses. On January 9, he talked to Astana Calling in London about his hopes for the trip.

Commenting on global environmental challenges, he said: “Energy is the most pressing issue of our age. I know first-hand after visiting both the Arctic and Antarctic that the environment is suffering. We need to find alternative sources of energy – solar, hydropower and other renewables. We will try to incorporate as much renewable energy at the EXPO as we can.”

Mr Iskakov believes that EXPO-2017 can change the image of Kazakhstan’s capital, Astana: “Just as the Eiffel Tower changed the face of Paris when it was built for the World’s Fair of 1889, we hope that EXPO-2017 will change the face of Astana. We will have new pavilions, accommodation, a press center and other facilities.” He emphasized the level of the task ahead, stating that construction of the venues will have to be completed by 2016 with the participation of “the whole country”.

Mr Iskakov likened the EXPO-2017 flag to the Olympic Torch: “It is a great honor to take the EXPO flag around the world and represent Kazakhstan. For me it is the same as taking the Olympic torch around the world.” Mr Iskakov hopes that many tourists will come to visit Astana for the first time to see a country that is growing quickly after years behind the so-called “Iron Curtain”.

He says that visitors to EXPO-2017 will be able to experience Kazakh’s legendary hospitality at “first-hand”.

Mr Iskakov, whose first name, “Sapar”, means “journey” in Kazakh, is known in Kazakhstan as an adventurer, keen amateur archaeologist and successful businessman. He has travelled to more than 100 countries and territories across the world. In 2007, he went to the South Pole where he planted the flag of Kazakhstan as well as the flag of the city of Astana. In 2008, he visited the North Pole, and in 2009 he became one of the first of his countrymen to enter the stratosphere in a Russian MiG-29. Mr Iskakov describes travel as his main hobby.

“Now is the time for the world to get to know Kazakhstan.”

Sapar Iskakov

ASTANA CALLING / ISSUE 337 / 4

Back to Contents

News from the Government in Brief Kazakhstan prepares for major business forums The year may still be young but the business community of Kazakhstan is already looking ahead to two important business gatherings which will take place in the spring. On April 17-18, the Eurasian Business Forum will be held in Almaty. Later in the spring on May 21-23, the Astana Economic Forum will take place in the capital. The Eurasian Business Forum was the subject of a high-level briefing this week. A crucial element of the Strategy “Kazakhstan-2050” is the development of entrepreneurship and small and medium businesses. As the government spokesman, Altay Abibullayev said at this week’s briefing, “The principles of the President and the economy of the country are to strengthen the basis of strong entrepreneurship and ensure the competitiveness of Kazakhstan’s output.” There are already one and a half million small and medium businesses registered in Kazakhstan, of which 850,000 are active. This involves more than two million people – one eighth of the country’s population. The Eurasian Business Forum, which is open to business people of all levels, is expected to be a major platform for reviewing the successes as well as the concerns of Kazakhstan’s entrepreneurs. (ortcom.kz)

Prime Minister briefs President On January 13, Prime Minister Akhmetov briefed President Nazarbayev on the socio-economic development of the country in 2013 and on the basic macro-economic indicators for the past year. Mr Akhmetov said that the economy grew by 6% in 2013; investment increased by 6.5%; industrial production by 2.3%; construction work was up by 3%; and gross agricultural output increased by 11.6%. Unemployment stands at 5.2%, and inflation at 4.8%. The Prime Minister reported also on the development of the second stage of the industrial-innovation program. This will involve the diversification of basic industries, the development of clusters and technology and innovation transfer.

The President emphasized to Mr Akhmetov the importance of the development of the energy sector and the completion of a number of infrastructure projects. And he reminded the Prime Minister that the government’s most important tasks remain raising the standard of living in the country, providing employment and ensuring that the population recognizes their civic obligations. (akorda.kz)

Prime Minister stresses need to keep fulfilling state orders Prime Minister Akhmetov used a meeting with members of the government on January 10 to underline the need to follow the instructions of the President, which he issued at the government meeting on October 11, 2013. At that meeting, President Nazarbayev expressed his displeasure with a number of aspects of government policy, both national and local. At this latest meeting, the Minister of the Economy and Budget Planning, Yerbolat Dossayev, reported that all the points raised by the President had been addressed. He spoke of work to revise the plan to combat the shadow economy; put forward proposals to delineate more clearly the responsibilities of different departments; outlined the increased number of enterprises which would be included in the second wave of privatization; and discussed the provision of funding for development, pension funds, financial organizations and public-private partnership (PPP) projects.

In a wide-ranging discussion, other aspects covered included improving the effectiveness of special economic zones; renewable energy; greater controls over people driving while under the influence of drink or drugs; and the provision of quality school textbooks. In conclusion, the Prime Minister said, “All of the President’s instructions should be carried out to a high standard and on time… We shall keep a constant watch on the progress of these issues.” (ortcom.kz)

Customs Union has raised investment: Deputy Minister Membership of the Customs Union with Russia and Belarus has led to an 88% rise in investment in Kazakhstan’s manufacturing sector, the Deputy Minister of the Economy and Budget Planning, Timur Zhaksylykov, reported at a briefing on January 13. In 2009, total investment in the sector was USD 1.8bn but since the Customs Union came into being in 2010, investment rose to USD 3.4bn in 2012. Overall investment in Kazakhstan in this period rose by 34%, from USD 21.4bn to USD 28.3bn. The Deputy Minister said that the situation was strengthened still further in 2012 when the Agreement on the Single Economic Space came into effect. And from 2010 to 2012 the trade turnover between Kazakhstan, Russia and Belarus increased by 85%, to stand at over USD 24bn. As of January 1, Kazakhstan can now also take part in state and municipal procurement in Russia and Belarus. When Russia and Belarus agreed to this at the start of 2012, Kazakhstan asked for a two-year preparatory period. As an indication of the difference this could now make, Mr Zhaksylykov pointed out, this market was worth USD 198bn to Russia and Belarus in 2012, whilst the equivalent market in Kazakhstan in 2012 was worth USD 7.6bn. (ortcom.kz; primeminister.kz) ASTANA CALLING / ISSUE 337 / 5

Back to Contents

Also in The News…

• Large section of transit corridor completed in 2013 More than 800km of the Western Europe-Western China transit corridor was completed in 2013. A total of 254 km of the highway passing through Kyzylorda Region was built; 224 km in South Kazakhstan Region; 188 km in Zhambyl Region; and the final 140 km in the Aktobe Region. This represents 806km of the 1,721km built so far. When completed in 2015 the transit corridor will be 2,787km long. (timesca.com) • Kazakhstan to participate in “Silk Road” project At a meeting on January 9 with the Chinese Ambassador to Kazakhstan, Le Yucheng, the Deputy Minister of Foreign Affairs of Kazakhstan, Kairat Sarybay, said that Kazakhstan is ready to take part in the “Silk Road Economic Belt” project, which was launched by President Xi Jinping during his state visit to Kazakhstan in September 2013. The project will cover aspects of cooperation related to the economy, trade, investment and culture, and is aimed at raising interregional cooperation to a new level. Mr Sarybay said that the project is generally consistent with the initiative put forward by President Nazarbayev, “Kazakhstan – New Silk Road”, which seeks to promote the development of Kazakhstan as the trade, logistics and business hub in Central Asia. (timesca.com) • Closer trade ties between Kazakhstan and Iran The third meeting took place in Astana on January 9 of the Kazakhstan-Iran working group on trade cooperation. Of particular interest was the strengthening of ties and closer cooperation in industry, mining, agriculture, transport and logistics, tourism and culture. (ortcom.kz) • Turkmenistan railway link to be completed in 2014 The President of Turkmenistan, Gurbanguly Berdymukhamedov, has ordered the completion of the Turkmen section of the Iran-Turkmenistan-Kazakhstan railway by October this year. More than 180km of the Turkmen section of the line was constructed in 2013, and now just 90 kilometers of the Turkmen section of the railway has still to be built. The two countries agreed to build the “North-South” rail link in 2007 and plan for it to carry up to 10m tons of traffic a year. (bnews.kz) • Baikonur: 2014 program and continuing Russian cooperation Preparations are underway at the Baikonur Cosmodrome for the first space launch of 2014. A Soyuz-U rocket is due to carry a Progress M-22M cargo capsule to the International Space Station on February 5. Russia leases the Cosmodrome from Kazakhstan, and the Head of Kazcosmos, the Kazakh Space Agency, Talgat Musabayev, has told the Russian newspaper, Izvestiya that, “no sane person in Kazakhstan” would want Russia ever to leave Baikonur. The current lease of Baikonur, the world’s first and largest operational space launch facility, runs to 2050. If Russia were ever to leave Baikonur, Mr Musabayev continued, Kazakhstan would not want the Cosmodrome to close. (inform.kz, trend.az)

ASTANA CALLING / ISSUE 337 / 6

Back to Contents

• Pre-school program extended to 2020 A government resolution was issued last week, extending the “Balapan” pre-school educational program up to 2020. The “Balapan” program was introduced following an initiative by President Nazarbayev in 2010, and initially made provision for extended pre-school education for 70% of all children up to 2014. Under the new provisions, all children in the 5-6 year old bracket should be receiving pre-school education by 2015. Further plans are underway to extend this to all pre-school age children by 2020. Just over 20% of the funding will come from the central government, with the bulk of funding coming from local authorities. (ortcom.kz) • Olympic delegation to number 300 The delegation from Kazakhstan to the Winter Olympic Games in Sochi will be made up of 300 people, about half of whom are competitors. The rest are trainers; doctors; journalists; press office representatives; members of the National Sports Directorate; parents of the athletes and veterans of Kazakh sport, who have done so much to help with the development of sport in Kazakhstan. (inform.kz) • Dmitry Babenko: Asian speed-skating champion Dmitry Babenko of Kazakhstan became Asian speed-skating champion three times at the recent Asian Regional Qualifying Competition held in Tomakomai in Japan. He took the gold medal in the 1500m, 5,000m and 10,000m distances. Babenko will be competing at all three distances in the Winter Olympic Games in Sochi in February. (inform.kz)

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

ASTANA CALLING / ISSUE 337 / 7

Back to Contents