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ASTANA CALLING

ISSUE NO 285 FRIDAY, 4 JANUARY 2013 WWW.MFA.KZ A WEEKLY ONLINE PUBLICATION OF THE MINISTRY OF FOREIGN AFFAIRS OF THE REPUBLIC OF KAZAKHSTAN

President Nazarbayev meets with leading TV journalists Addresses wide range of questions

Day of National Mourning for Shymkent Air Tragedy President convenes meeting of state officials

2012 – A Year of Achievement for Kazakhstan News agency Kazinform reflects on the past year

Focus on Innovation Yields Results Chairman of National Agency for Technological Development outlines progress

Things to Watch

Astana Sees In The New Year Concert with fireworks on Central Square

Also in the News

President Nazarbayev takes questions from TV journalists

President Nazarbayev meets with leading TV Journalists President Nazarbayev met with eight leading Kazakhstani TV journalists on December 29 and responded to a wide range of questions about Kazakhstan’s development and issues on the President’s agenda. A transcript of the meeting was published on the President’s website.

Asked by 24 KZ channel’s Arman Seytmamyt about the origin of the Kazakhstan 2050 Strategy presented to Parliament on December 14, the President explained that the document was in preparation for a long period and required deep analysis of global trends and the internal condition of Kazakhstan. It follows the adoption in 1997 of the Strategic Program up to 2030 and represents an effort to sum up the results achieved over the 15-year period of its implementation and consider the direction in which the country should develop. Foreign and Kazakhstani specialists as well as members of the government and experts from relevant ministries worked on each section of the Strategy.

Replying to a question from Olga Tsoy of Khabar about social justice, the President said that the state’s main function was to support people and give them the opportunity to work. He noted that unemployment in Kazakhstan is only 5% and that the issue for the country is to ensure that it has people with skills. He said that the country should be run along pragmatic lines like a corporation, earning money and spending it judiciously.

On the Kazakhstan 2050 Strategy: “We are a young country. The average age of the population of Kazakhstan is 30.

So there is no need to tell young people about what was in the past. They want to know what awaits them in the future and how the country will develop. And I decided that it was essential to put together a long-term program to answer these questions. I think it is very important that we determine the new political direction of the country’s development.”

In response to a question about EXPO-2017 from Oksana Loskutova from “Astana”, the President said that Kazakhstan expected to achieve a return on its investment in building the necessary infrastructure for the exhibition in the same way that Germany had done at Hanover in 2000 when it spent USD 35 million building the exhibition halls and made a profit of USD 350 million. He also said that he dreamed of building a city under a roof so that people can live comfortably at all times of year.

Yaroslav Krasiyenko of KTK asked about the impact on Kazakhstan’s interests of membership of the Eurasian Economic Union. The President explained the economic logic for membership and the historical development of single markets based initially on free trade agreements and then customs unions. He stressed that he had personally been the instigator of these processes on the territory of the former Soviet Union and that no one was imposing them on Kazakhstan. He said that the formation of the Single Economic Space is still in progress and will be fully implemented once 52 outstanding agreements have been adopted.

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Asked by 31 Channel’s Bolat Mursalim about the planned change of alphabet for the Kazakh language from Cyrillic to Latin, the President said that time would be needed and that at the very start, a commission would need to be formed and the Kazakh alphabet adapted for computer use. The President said that he saw the transfer to the Latin alphabet as completely natural given the increasing knowledge of English in Kazakhstan. “In 15 years everyone will know this alphabet. Most of the population will speak English, particularly the ruling elite ... A member of the Government or a Mayor will not be able to not speak English.”

On Kazakhstan’s economy: “In Kazakhstan, despite the fact that we have the ninth biggest territory in the world, we have a comparatively small-sized population, and, a correspondingly small economy.”

Maya Bekbayeva asked the President about his busy schedule, noting that on December 19 during a visit to Moscow, the President had 12 hours of meetings. President Nazarbayev said that in 2012 he had over 700 diplomatic meetings and had made 17 foreign visits.

He also received in Kazakhstan over 34 heads of state. This was apart from the many daily meetings required to run the country. He said that this left him with little time to think about his health.

On the results of 2012: “This past year was a good one for the country. The economy grew more than 5%.

In conditions of crisis across the world this is a very good indicator. Unemployment is 5%, inflation is at 5.3%, while it was 7% the year before. In today’s turbulent world, these are very positive indicators ...’

Laura Nurlan from the First Channel “Eurasia” asked a final question about what the President associates with New Year celebrations.

He replied that he remembered in particular 1968 when illuminated Christmas decorations first appeared. They were shaped like rockets reflecting the progress of the USSR’s space program. As a member of the Central Committee of the Komsomol, he often travelled to Moscow and was able to buy some to decorate the tree at home. That year, the President recalled that he completed his studies at the metallurgical institute and became an engineer-metallurgist. As President, he said that New Year was good when it was successfully completed and he knew that the following year would be better and not worse.

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President Nazarbayev meets with senior officials after the Shymkent tragedy

Day of National Mourning for Shymkent Air Tragedy On December 26 President Nazarbayev met with leaders of State bodies and law enforcement agencies, in the aftermath of the fatal crash the previous day of a military transport airplane carrying seven crew members and 20 state officials.

The President extended his deepest condolences to families and friends of the 27 people who died. He said the tragedy was a cause of sorrow to the whole nation and declared December 27 a day of national mourning in recognition of the deceased, who died carrying out their official duties.

The meeting was attended by Prime Minister Serik Akhmetov, the President’s aide and Secretary of the Security Council Marat Tazhin, Prosecutor General Askhat Daulbayev, Minister of Defence Adilbek Dzhaksybekov, Minister of Internal Affairs Kalmukhanbet Kassymov and the National Security Committee First Deputy Chairman Vladimir Zhumakanov.

The crash occurred just before 7pm on December 25, as the airplane began its descent towards Shymkent airport, close to the southern border of Kazakhstan. Among those on board were the acting head of the border security service, Colonel Turganbek Stambekov and other officials of the same service.

At Wednesday’s meeting, the President announced that a special interdepartmental commission would investigate the cause of the crash, headed by the Prosecutor General. The President emphasized that all circumstances surrounding the crash must be carefully scrutinized and said that the aircraft’s black box will reveal more detail.

Based on preliminary information, it appears that no malicious external causes were involved and the crash was the tragic outcome of a combination of events, the President said. The pilot was highly experienced and the aircraft in good condition, but weather conditions were very difficult at the time, with prevailing fog and a temperature at one degree below zero. The aircraft disappeared from radar 40 km from Shymkent airport.

The Chairman of the National Security Committee, Nurtai Abykayev, flew soon after the crash to the scene, where he met with families of the deceased as well as regional authorities. The Government and State agencies have been instructed by the President to extend all necessary support and help to the families of the 27 people who died.

“This is a time of sorrow for our whole nation. That is why I declared December 27 a day of national mourning. All other information will be given once a detailed analysis of the tragedy has been carried out.

Unfortunately similar accidents occur around the world. But this should not reassure us in any way. We must take all necessary measures to ensure that such accidents do not take place in our country” President Nazarbayev

First Deputy Chairman of the National Security Committee, Vladimir Zhumakanov, confirmed at Wednesday’s meeting that there was no indication of any malicious cause of the crash. He also emphasized that the border patrol is working to schedule and the state borders are subject to normal levels of protection.

Prosecutor General Askhat Daulbayev said that the best investigating officers from national security bodies and the military subdivision of the Interior Ministry had been appointed to the investigative commission. Expert evaluations of the crash site, the black box recordings and all documents relating to plane maintenance, will be among the materials studied by the commission to determine the causes of the fatal crash, he said.

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Focus on Innovation Yields Results Kazakhstan’s State Program for Accelerated Industrial Development provides a clear strategy to develop and support industrial innovation as a key driver of continued economic growth. The program is yielding tangible results, with the level of national innovative production up by 65% in 2012 compared to the previous year. This growth in innovation has, in turn, contributed to Kazakhstan’s rise to 51st ranking in the World Economic Forum Global Competitiveness Index for 2012-2013, up 21 places from its prior-year ranking.

Aidyn Kulseitov, Chairman of the National Agency for Technological Development

In a recent interview published on the Prime Minister’s website, the Chairman of the National Agency for Technological Development (NATD), Aidyn Kulseitov, outlined the rate of growth in innovation since the new State Program was put in place and discussed plans for the future.

Over 2010-2011 a total of 440 innovative projects received state support – this compares to 180 projects over the six-year period from 2003-2009. The NATD provides support in two forms: direct financing and service support for development projects, technical and economic assessments and acquiring patent technologies. Mr Kulseitov said that in 2012, the NATD financed three innovative projects: the first related to a new method to access GSM standards Euro-3 and Euro-4; the second involved the purchase of stateof-the-art equipment for cinematic special effects; and the third was in the agriculture sector, in high-tech deep grain processing.

Since 2010, 96 projects from a total of 450 proposals have been selected by the NATD for service support, Mr Kulseitov said. The majority are in the agriculture, energy, ICT and machine-building sectors. Another NATD service highlighted by Mr Kulseitov are the four design bureaus operating across the country, which have developed over 200 packages of design documentation, of which 12 are now being supplied to the market.

Through a network of commercial offices across the country, the NATD supports the commercialization of projects and development of potential markets. Mr Kulseitov said that several projects have now reached the state of preparation for commercialization.

Looking to the future, Mr Kulseitov spoke of the potential for the Alatau Innovative Technology Park to develop into a cluster of high-tech Kazakh companies acting as a focus for innovation development. In 2011 KZT 3 billion (USD 20 million) was allocated to develop the necessary infrastructure and the NATD is working to attract leading development companies from a wide range of sectors to the Innovative Technology Park. In 2012 the number of enterprises located at the Innovative Technology Park more than doubled to reach 138.

The NATD is also working in conjunction with private sector investors, who in 2012 provided KZT 14 billion (USD 93 million) to finance innovative projects. A total of 930 new positions resulted from such projects in 2012, indicating the potential for innovative industries to create new jobs.

Mr Kulseitov highlighted the rise in innovative business to 7.1% of Kazakhstan’s economic activity in 2012, from just 4% the previous year and emphasized the potential for continued growth in the sector, supported by the State Program for Accelerated Industrial Development.

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2012 – A Year of Achievement for Kazakhstan 2012 was a significant year for Kazakhstan and the year ended on a high note when, on December 14, the President outlined the “Kazakhstan 2050” strategy which will shape the direction of the country over the coming decades, the news agency Kazinform says in a review of the past year.

In his December address to the nation, President Nazarbayev recalled the uncertainty of the early days of sovereignty following the declaration of independence in 1991, and reviewed the achievements under the “Kazakhstan 2030” strategy which was adopted in 1997. The Kazakhstan 2030 vision consolidated sovereignty and enabled the establishment, over a remarkably short period, of a modern economy, the foundations of a social state and a new form of social consciousness.

On that solid foundation, the economy grew from strength to strength, with a 16-fold increase in GDP over 15 years to KZT 28 trillion (USD 186 million) by 2011. A stable national gold reserve was created to underpin economic security, while citizens experienced a significant increase in living standards as average net monthly income and pension increased by nine and ten times, respectively.

The success of Team Kazakhstan at the London Olympics was one of the highlights of 2012

The overarching achievement of Kazakhstan 2030 has been to replace uncertainty with confidence, so that the new generation of Kazakhstanis who were born during the early years of independence and are now entering the workforce, can face a hopeful future and take pride in developing their country even further, guided by the vision of Kazakhstan 2050.

The principal aim of Kazakhstan 2050 is for Kazakhstan to enter the ranks of the 30 most developed countries in the world by 2050, the year adopted by many countries around the world as the horizon for strategic planning.

The many achievements of 2012 have positioned Kazakhstan well to embark on the ambitious new strategy. The January 2012 election was a major milestone in the country’s democratic development, leading to the first multi-party Parliament, with three parties represented and the leading Nur Otan party retaining its strong majority.

From January 1, the Single Economic Space between Kazakhstan, Russia and Belarus came into effect, opening the way to increased trade and economic integration. The potential for further regional integration was signalled as Kyrgyzstan and Tajikistan clearly indicated their intention to join the Customs Union and the Single Economic Space.

As the year advanced, the social agenda came to the fore in July when the President set out the 20 Steps to a Society of Universal Labour program; work has begun on implementing measures aimed at achieving a modern economy which will have social justice at its core and will remain resilient in the face of crisis. The legal and judicial reform program started in 2010 gained pace, as a report on re-certification of law enforcement officials announced in August that one-third of senior managers across all law enforcement bodies in Kazakhstan are to be replaced.

August brought joy and celebration as the nation united in support for Team Kazakhstan, which took 12th place overall at the London 2012 Olympics. Gold medals were won by race cyclist Aleksandr Vinokurov; weightlifters Zulfiya Chinshanlo, Maiya Maneza, Svetlana Podobedova and Ilya Ilin; track and field athlete Olga Rypakova; and boxer Serik Sapiyev. A silver medal was won by boxer Adilbek Niyazymbetov and bronze medals by freestyle wrestlers Gyuzel Manyurova and Akzhurek Tanatarov; Greco-Roman wrestler Daniyal Gadzhiyev and boxers Ivan Dychko and Marina Volnova.

Kazakhstan’s year drew to a successful close when Astana won the bid to host “Expo-2017” on the theme of “Future Energy”.

Preparations are already underway for a major global event which will advance the socio-economic, scientific and technological development of Kazakhstan and provide an international showcase for the development of sustainable energies.

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Astana sees in the New Year Astana saw in the New Year in style with a four-hour celebration on Central Square featuring music, theatre and fireworks.

There were performances by soloists from the State Philharmonic and well known actors as well as a disco for young people.

Ahead of the celebrations, the editors of astana.kz the official website of the city of Astana polled the capital’s citizens to find out where they would spend New Year, and what dish they would be cooking.

51% of respondents said they would be spending New Year with relatives.

Around 15% said they would be with friends and 9% said they would see in the New Year in restaurants and cafes. Almost all of those polled said that they would be eating traditional “Olivier” salad, a dish invented in the 1860s by the Belgian chef Lucien Olivier, who worked in one of Moscow’s most famous restaurants. It is popular throughout much of the former Soviet Union and is well established as a dish served at New Year. It is made with diced potatoes, vegetables, eggs, and ham and dressed with mayonnaise.

President Nazarbayev toasts the nation’s health

While most citizens of Astana celebrated, others were hard at work.

Between December 31 and January 2, around 400 workers kept the city’s streets clear by removing a total of 23,666 cubic meters of snow.

95 children were also born in Astana’s three maternity hospitals during the night of December 31 in line with the usual number of daily births.

While Kazakhstan marks January 1 as a national holiday, its traditional celebration of the New Year is Nayryz on March 22, the spring equinox.

The history of this holiday is believed to go back as far as Ancient Iran and is celebrated in Iran and Iraq as well as across Central Asia.

New Year celebrations in Astana

“Security on the streets, families with enough to live comfortably, children’s health, stability at work, these are not fantasies but real priorities of the country. Dreams inspire us. Goals show us the way. I wish that all your dreams take shape as goals and lead to success. And may the warmth of those close to you stop you getting cold along the way.”

Extract from President Nazarbayev’s New Year message

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Also in The News…

• In his New Year message to Kazakhstanis, President Nazarbayev said that Kazakhstan achieved great success in 2012, citing the example of Astana winning the bid to host “EXPO-2017”. He referred to “Kazakhstan-2050” as a common goal for the united nation of Kazakhstan. (Zakon) • On December 31 President Nazarbayev and President Putin exchanged New Year’s greetings by telephone. (Kazinform) • According to British experts, Kazakhstan ranks third out of the 25 most dynamic economies. Chinese observers highlight Kazakhstan’s plans to develop the non-energy sector and Ukrainians emphasize that Kazakhstan is in top position among the CIS countries in the global competitiveness ratings. (Zakon) • The Kazakh Statistics Agency says that the minimum wage for December 2012 rose by 0.9 % to 16,698 tenge in comparison with November 2012. 23 % of people’s wages went on meat and fish, 16.4 % on dairy and eggs, 9.9 % on fruit and vegetables, 7.8 % on bread and cereals and 2.1 % on sugar, tea and spices. (Primeminister) • Project “KazCopper” to build a mining and smelting complex in the Aktobe Region will be supported by the “Business Roadmap-2020” Program. The project will cost USD 84.4 million; internal funds add up to USD 55.4 million and USD 29 million will be raised from loans. (Kazinform) • On January 1 a new electronic system for registering the right to own property was introduced which has reduced the total registration time to one day. (Zakon) • A resident of Astana has won over KZT 106 million in “Super Lotto”. This is the second largest sum ever to be won in the history of Kazakh lottery. Two years ago another “Super Lotto” player in Astana won KZT 155 million – over USD 1 million. (Nur) • The “ZhelDor” international hockey tournament for young hockey players is taking place from January 3 - 6 in Astana. Junior teams from Kazakhstan, Russia and Belarus will participate in the tournament. The “ZhelDorEkspeditsiya” group of companies first organized the tournament in 2010 to support and develop children’s sport in Russia and Kazakhstan, promote a healthy lifestyle and also implement an internal corporate social program designed to encourage children and young people to regularly take part in sport. (Kazinform) • Team “Astana” has successfully completed the fifth stage of the Africa Eco Race 2013. Competitors had to drive 689 kilometres from Oued Hamra to Dakhla. The winners of this stage were French racers Jerome Pelichet and Xavier Panseri from Team Loomans. The race started with administrative and technical verifications on December 27 in the French town of Saint Cyprien and will finish January 9 at the Lac Rose in Dakar. (Zakon)

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Things to Watch…

• President Nazarbayev’s annual meeting with heads of diplomatic missions accredited in Kazakhstan will take place on January 18.

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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