KAZAKHSTAN: AN ALLIANCE OF CIVILIZATIONS FOR A GLOBAL CHALLENGE
Ministery of National Economy of the Republic of Kazakhstan - Institute of Economic Research Royal Academy of Economic and Financial Sciences of Spain
This publication has been possible thanks to
with the collaboration of
under the sponsorship of
KAZAKHSTAN: AN ALLIANCE OF CIVILIZATIONS FOR A GLOBAL CHALLENGE
Ministery of National Economy of the Republic of Kazakhstan - Institute of Economic Research Royal Academy of Economic and Financial Sciences of Spain
Royal Academy of Economic and Financial Sciences Publications of the Royal Academy of Economic and Financial Sciences
Royal Academy of Economic and Financial Sciences
Kazakhstan: An Alliance of Civilizations for a Global Challenge / Ministry of National Economy of the Republic of Kazakhstan - Institute of Economic Research / Royal Academy of Economic and Financial Sciences.
ISBN- 978-84-09-11198-5
I. Title II. Royal Academy of Economic and Financial Sciences III. Observatory of Economic and Financial Research
1. Economy 2. Kazakhstan 3. Economic Issues
The Academy is not responsible for the scientific opinions expressed in their own publications. (Art. 41 of Academy Internal Rules)
Publisher: © 2019 Royal Academy of Economic and Financial Sciences, Barcelona. www.racef.es
Academician Coordinator: Prof. Dr. Anna Maria Gil-Lafuente
ISBN- 978-84-09-11198-5
Legal diposit: B 13068-2019
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, including photocopying, recording, electronic or mechanical method or otherwise without the prior permission of the publisher.
Printed and bound in Spain by Ulzama Digital, S.L.—Pol. Ind. Areta, C/Altzutzate, 51. (31620) Huarte—Navarra First printing June 2019 CONTENT
Foreword...... 9
List of acronyms...... 12
Section 1. General description of Kazakhstan ...... 13
Section 2. Strategic way of Kazakhstan...... 19
Section 3. Economic growth ...... 26
Section 4. Quality of life...... 34
Section 5. Economic review of regions...... 45
Section 6. Investment attractiveness of Kazakhstan...... 66
Section 7. Entrepreneurial development...... 71
Section 8. Infrastructure development - Growth of economic opportunities...... 79
Section 9. International integration processes...... 87
Section 10. Development of peace initiatives: peacekeeping capacity...... 92
Sources...... 99
Publications of the Royal Academy of Economic and Financial Sciences...... 103
Report The Republic of Kazakhstan Foreword
FOREWORD
One of the biggest challenges of the this short period there have been great ad- Spanish economy after the recent global vances towards modernization of its econ- crisis that began in 2008, and that has been omy and currently show a stable country going on for many years, aims to improve according to its macroeconomic indicators. the processes of internationalization of All this, the result of a priority economic pol- companies. For this, the different sectors of icy system established since the beginning the economy focus both on investment and of 1992 focused on the strengthening of the on the strategic position of new markets. In banking system, the freedom of prices, the this case, the young country of Kazakhstan expansion of foreign trade, the fostering of emerged from the dissolution of the former a favorable climate for foreign investments, Soviet Union and whose independence was the saturation of the market of the consumer declared in 1991 presents great investment and, finally, the transfer of public property to opportunities in the Eurasian region. private property. Kazakhstan is the ninth largest country At the political level, since 1990 in the world in extension with 2,724,900 Nursultan Abishevich Nazarbayev was km2, being five times larger than Spain and elected president of the former Soviet a population of 18,157,078 inhabitants. Its Socialist Republic of Kazakhstan. geostrategic position is of great relevance However, with independence and after the for the stability of Central Asia, as it is a referendum of December 1991, being the transit country between East and West, with only candidate, he remained president of a great logistical and commercial influence the new republic of Kazakhstan for almost due to its presence in the ambitious infra- three decades, since he was re-elected structure project of the Silk Road, the which successively in 1999, 2005, 2011 and re- will undoubtedly change the global econom- cently in 2015 for a period that had been ic outlook in the next decade. The project established until 2020. However, although aims to build new rail lines, ports, pipelines, this continuity of the executive branch is a gas pipelines, power plants, roads and all clear sign of political stability, there is cur- kinds of infrastructure that positions China rently a certain degree of uncertainty due at the center of an extensive network of to the succession debate of the president global connections. after his recent resignation. The presi- Beyond the importance of Kazakhstan dent’s policies during his long term have in the world panorama for its geostrategic been very focused on favoring economic position, it is also important to know different development from foreign investment and relevant facts that have happened in its short maintaining the balance of good relations history since the independence of 1991. In with Russia and the West.
9 Report The Republic of Kazakhstan Foreword
The beginning of this century, mainly the Expo Astana 2017 international exhi- between 2000 and 2007, has been a great bition, under the theme “Future Energy” economic strengthening for the country, as and actively participate in the program of a result of large-scale privatization, business Association for Peace of the North Atlantic development and also the favorable situation Treaty Organization (NATO). in the world market. Achieving that his econo- The foreign policy of this young country my obtained a fast growth and consolidation is also reflected in its membership in the that are reflected in an important increase in most relevant international organizations: the exports, high rates of investment and the The United Nations and its specialized or- expansion of the industry. Kazakhstan is a ganizations, the Organization for Security country with large mineral resources, being and Cooperation in Europe (OSCE) and one of the richest in the world in reserves of since 2015 in the World Trade Organization. oil, gas, titanium, magnesium, tin, uranium, (WTO). At the regional level, its role as a gold and other non-ferrous metals. It is im- member in the following organizations is portant to note that the excellent results of also highlighted: the Commonwealth of the economy come from the oil sector, which Independent States (CIS), the Eurasian developed a strategy of stable growth and Economic Community (EurAsEC), the that has driven all the socioeconomic chang- Conference for Interaction and Confidence- es in the country. Building Measures in Central Asia (CICA) The capital of Kazakhstan is Nursultan, whose permanent secretariat was es- whose name was recently changed in honor tablished in Almaty since June 2006, the of the former president who has governed the Shanghai Cooperation Organization (SCO), country since independence until recently. the Collective Security Treaty Organization Previously the city received the name of (CSTO), the Organization of Islamic Astana, being the capital from 1997 when it Cooperation (OIC), the Islamic Development was decided to replace Almaty. The new cap- Bank (IDB) and the Eurasian Development ital was built almost entirely and is a modern Bank (EDB). and futuristic city. It is a symbol of the chang- The Institute of Economic Research es and development of the country in recent of the Ministry of National Economy of the years. Republic of Kazakhstan and the Observatory On the other hand, there are many of Economic and Financial Research of the issues in which Kazakhstan has increased Royal Academy of Economic and Financial its visibility in the world, highlighting the Sciences of Spain present this report that importance of its foreign policy. Some of offers a clear vision on the economic context these outstanding achievements are: obtain and the panorama of investment in different non-permanent seat of Asia in the Security sectors and regions of the Eurasian coun- Council for the period 2018 - 2019, celebrate try. This analysis allows to know different
10 Report The Republic of Kazakhstan Foreword investment opportunities in a country that, scenario, Spain, due to its technological po- despite having a limited population for the tential, mainly in transport infrastructure, re- consumer market, has large reserves of oil, newable energy, urban waste management, gas and various minerals that have allowed pharmaceutical or agro-industry sectors, is an accelerated economic development and one of the countries that Kazakhstan has that has been marked It is an economic established as a priority in its commercial priority to attract foreign investments and a relationships. significant increase in their exports. In this
Prof. Dr. Anna Maria Gil-Lafuente Director of Observatory of Economic and Financial Research Royal Academy of Economic and Financial Sciences of Spain
11 Report The Republic of Kazakhstan List of acronyms
LIST OF ACRONYMS
RK – the Republic of Kazakhstan CIS - Commonwealth of Independent States USA – United States of America EU – European Union NGO – non-governmental organizations USSR – Union of Soviet Socialist Republics WTO – World Trade Organizations SME – small and medium enterprise AIC – agro-industrial complex OECD – Organization for Economic Co-operation and Development UN – United Nations UNESCO EDI – Education development index of specialized institution United Nations Educational, Scientific and Cultural Organization UNT – unified national testing EEEA – External evaluation of educational achievements GDP – gross domestic product
GRP – gross regional product
12 Report The Republic of Kazakhstan Section 1. General description of Kazakhstan
SECTION 1. GENERAL DESCRIPTION OF KAZAKHSTAN
The Republic of Kazakhstan is a unitary Chambers – Senate and Mazhilis; executive state with presidential government, which be- power – by the Government, which consists came independent since December 16, 1991. of central (Ministries and Agencies) and local Head of the state is Nursultan Abishevich authorities (Akimats); judicial power is imple- Nazarbayev. mented by national courts (Supreme courts Constitutionally, Kazakhstan is the and local courts). Underlying principles of state with three independent branches of activity of the Republic are public consent government: executive, legislative and ju- and political stability, economic development dicial. Current Constitution was adopted on for the benefit of the nation, patriotism, solu- nationwide referendum on August 30, 1995. tion of the most important issues of national Kazakhstan claims itself as democratic, secu- life by means of democratic methods, includ- lar, legal and social state, which supreme val- ing voting on the Republican referendum or ues are: human, his life, rights and freedoms. in the Parliament. Single source of official authority is nation. Private and public property is recog- Legislative powers are implemented nized and equally protected in the Republic by the Parliament, which consists of two of Kazakhstan.
Public holidays in the Republic of Kazakhstan
Holiday title Date
New Year January 1-2 International Women’s Day March 8 Nauryz meiramy March 21-23 Holiday of Unity of Nations of Kazakhstan May 1 Defender’s Day May 7 Victory Day May 9 Capital City’s Day July 6 Constitution Day of the Republic of Kazakhstan August 30 First President’s Day December 1 Independence Day of the Republic of Kazakhstan (national holiday) December 16
Source: Booklet “Kazakhstan today”. Statistics Committee of the Ministry of National Economy of the Republic of Kazakhstan. – 2016
13 Report The Republic of Kazakhstan Section 1. General description of Kazakhstan
Area, position, administrative division, population
Kazakhstan is state, situated in Central There are 8500 rivers and 48000 lakes in Asia, at the back of Eurasian continent. Territory the Republic, deserts and semi-deserts is 2 724 900 km2. The country takes the sec- take 54% of its territory, steppes 35%, and ond place by territory’s area among countries forests 5,9%. Moreover Kazakhstan is the of Commonwealth of Independent States largest country without entrance to the (hereinafter – CIS), and the ninth place in the World Ocean. world. Kazakhstan is washed by intracontinen- Capital of the Republic of Kazakhstan tal seas – Caspian and the Aral. The Republic is Astana, translated from Kazakh language has common borders with Russia on the north means “capital”. Population in the capital and on the west - 7 591 km (the longest con- estimated more than 1 mln. as of January 1, tinuous land border in the world), with China 2018, and it trends upwards. Kazakhstan is on the east – 1 783 km, with Kyrgyz Republic divided into two time zones: eastern (princi- on the south – 1 242 km, with Uzbekistan – pal) and western. 2 351 km and with Turkmenistan – 426 km. Total length of land borders is 13 200 km.
General information
TERRITORY NATIONAL LANGUAGE 2 724 900 km2 Kazakh
POPULATION NATIONAL CURRENCY 18 157 078 people KZT as of January 1, 2018
TIME CAPITAL GMT+6 (Astana, Almaty) Astana
ADMINISTRATIVE- RELIGION TERRITORIAL DIVISION >3 000 religious communities of 14 oblasts 40 confessions 2 cities of republican status Dominant religions – Islam and (Astana and Almaty) Christianity
Ethnic makeup of the Republic of for about 67,0% of population, Russians – Kazakhstan is multinational. Kazakhs account 20,2%, Uzbeks – 3,1%, Ukrainians – 1,5%,
14 Report The Republic of Kazakhstan Section 1. General description of Kazakhstan
Uigurs – 1,4%, Germans – 1%, other – 6,0%. • Share of urban population – 57%. Total population is about 18 157 078 people • Share of rural population – 43%. as of January 1, 2018. • Annual average growth rate of popula- • Average population density – 6,6 people tion in 2011–2016 – 1,5%. on km2. • Average age of the population – 31,7 years.
Population size
As of January 01, 2017, in percent
Source: Booklet “Kazakhstan today”. Statistics Committee of the Ministry of National Economy of the Republic of Kazakhstan. – 2016
Natural resources
One of the most important resources explored, but only 60 elements are extracted of Kazakhstan is its mineral resources. and used. Kazakhstan is one of the richest Kazakhstan takes sixth place in the world countries of the world on stocks of oil, gas, on stocks of mineral resources. According titanium, magnesium, tin, uranium, aurum, to some scientific assessments, explored and other non-ferrous metals. resources of Kazakhstan are evaluated in Kazakhstan is the largest manufactur- about 10 trln. USD. er of wolfram around the world, and takes Among 110 elements of the periodic first place in the world on its stocks, second table, 99 elements are detected, 70 are place on stocks of uranium and chrome,
15 Report The Republic of Kazakhstan Section 1. General description of Kazakhstan fourth place on manganese and argentum, The country is the largest manufacturer of fifth place on stocks of plumbum and zinc, uranium in the world, and one of the leaders eighth place on total stocks of iron ore (16,6 on manufacturing of chrome, manganese bln. ton). and zinc.
Kazakhstan in world rating on proved stocks and extraction
Share in world Title Place on stocks Place on extraction extraction, % Wolfram 1 - - Uranium 2 1 39,6 Chrome ore 2 3 16,2 Manganese ore 4 8 2,7 Argentum 4 10 3,6 Plumbum 5 11 0,7 Zinc 5 8 2,5 Coal 8 8 1,6 Bauxites (aluminum) 10 8 1,7 Titanium 10 19 0,4 Tin 10 - - Iron ore 11 13 1,0 Copper 12 11 2,6 Aurum 15 21 1,7 Source: Committee of geology and subsurface use of the Ministry of Investments and Development of the Republic of Kazakhstan, World Mining Data, 2016
About 300 significant deposits of gold deposit, distinguished by high capacity of are forecasted in the country, and 173 were brown coal beds, and Karagandinskiy coal explored in details among them. There are basin with stocks of coal more 50 bln. ton of gem-quality diamonds among them. In the coke coal. future, Kazakhstan is able to extract 100 Nowadays 14 perspective basins, ton of gold per year due to serious invest- which are situated throughout territory of ment support. Nevertheless, extracting 1% the state, are known, where 160 deposits of all underground stocks of gold, it takes of oil and gas were explored, recoverable 6th place in the world. oil reserves account 2,7 bln. ton. More 100 coal deposits are explored The most important active oil deposits in Kazakhstan, the largest is Ekibastuz are situated at the coast of the Caspian Sea
16 Report The Republic of Kazakhstan Section 1. General description of Kazakhstan
– where total stocks are estimated as very Kazakhstan is rich on stocks of chem- magnifical – 3-3,5 bln. ton of oil and 2-2,5 ical raw materials: there are the richest trln. m3 of gas. deposits of potassium and other salts, Taking into account explored and ex- orates, compounds of bromine, sulfates, pected reserves ashore, expert oil stocks phosphates, various raw materials for in the country are more than 6,1 bln. ton, paint and varnish industry. Large stocks stocks of gas are 6 trln. m3, where the of sulfur pyrite, consisting of complex largest annual extraction was 26,6 mln. ores, allow production of sulfuric acid and ton of oil and 8,2 bln. m3 of gas (in 1991). other chemical products, which are very In-house needs of the Republic are 18-20 important for the economy. There are in- mln. ton of oil and 500 thousand ton of lu- finite possibilities on production of different bricating oil per year, 16-18 bln. m3 of gas. kinds of petrochemical synthesis products Nowadays there are three large oil refiner- (especially ethylene, polypropylene, and ies in Kazakhstan: in Atyrau, Pavlodar and rubber), synthetic detergents and soap, Shymkent, where high-octane gasoline, feed microbiological protein, chemical fi- electrode coke, petroleum bitumen and bers, synthetic resin and plastic materials, sulfur are manufactured, and more 30 of cement. mini-oil refineries.
Raw material base of chemical industry
OIL AND GAS CONDENSATE COAL 3,9 bln. ton 162 bln. ton 12th place in the world 7th place in the world
PHOSPHATES NATURAL GAS 1 bln. ton 0,9 trln. m3 14th place in the world 24th place in the world
POTASSIUM PHOSPHORUS 6 bln. ton 1 bln. ton
Access to low-cost raw materials and caustic soda, sulfuric acid, chloride and stable demand on the part of metallurgical calcium hypochlorite, and also of phosphoric sector of Kazakhstan allow development of acid, are the most popular and prospective. manufacturing of different kinds of commer- There are perspectives for creation of cial chemicals. Output of hydrogen chloride, agrochemical production in Kazakhstan,
17 Report The Republic of Kazakhstan Section 1. General description of Kazakhstan particularly phosphate and nitrogen fertil- earthenware industry. Its mineral resources izers. Manufacturing of fertilizers and nitro- and mountains contain the rarest precious gen-containing mixtures achieved 28,9 bln. stones, various construction and finishing KZT, manufacturing of pesticides and other ag- materials. Mineral, medicinal, industrial rochemical products is at level of 14,4 bln. KZT. and thermal waters can be called as other Kazakhstan has the richest prima- resources of Kazakhstan, but they are not ry resources for glass, porcelain and extensively usedi.
18 Report The Republic of Kazakhstan Section 2. Strategic way of Kazakhstan
SECTION 2. STRATEGIC WAY OF KAZAKHSTAN
Since gaining independence, the coun- concept of sovereignty with alive and try is a subject to a lot of changes in all areas convincing content, improved international of living environment. prestige of Kazakhstan. Kazakhstan selected a way, focused The largest pilot nuclear test site was on a construction of sovereign, democratic, closed in Semipalatinsk in the second half of constitutional state. Year by year, our coun- 1991 by Decree of the President. try has moved to its purpose, by realizing Creation of foundation of market econ- necessary changes. omy model, formation of private ownership Kazakhstan rushed in its political and was begun in the same year. socio-economic development during the Kazakhstan declared its state sover- years of independence. This success is eignty on December 16, 1991. related to the nation of Kazakhstan, which Work with Strategy for establishment preserved and strengthened tolerance in and development of Kazakhstan as sov- the society and respect for individual, re- ereign state was begun at the beginning gardless of its social status, national identi- of 1992. This Strategy organized priority ty and religion. system of economic policy: strengthening of Beginning of 1990 is time of the First banking system, free pricing, external trade modernization. The country successfully expansion, creation of favorable climate for performed “triple transit” in economic, social foreign investments, saturation of consum- and socio-political areas within this period. er’s market and, finally, transfer of national Principle of separation of powers on property to private ownership. legislative, executive and judicial was re- Parliamentary presidential form of gov- flected in state structure. Process of multi- ernment was founded in the country. party system establishment was on the rise, Reforming of educational system civil rights and freedoms were essentially was begun in 1992. A number of policy doc- expanded, first nongovernmental organiza- uments were adopted within the framework tions (hereinafter – NGO) and independent of this reform. New types of schools were media appeared. added: lyceums and gymnasiums. New sub- Law “On election of President of Kazakh jects, test systems, Master’s and Bachelor’s SSR” was adopted on October 16, 1991, degrees and other updates were introduced which established new order of election of in higher education. the head of state by national vote. The same year, one of the most im- First nation-wide presidential elec- portant trends of country’s social policy was tion in Kazakhstan was performed on working towards returning Kazakhs, who left December 1, 1991. New election filled Kazakhstan involuntary, to the country, and
19 Report The Republic of Kazakhstan Section 2. Strategic way of Kazakhstan a decision regarding invitation of repatriates Professional two-chamber Parliament to their historical homeland was made. was founded in the country. Territory vast- All changes in political system during the ness, multicultural population composition, period (1993-1995) were fixed in adopted unformed civil society, establishment and first Constitution of 1993. Principle of sep- development of political culture and parties aration of powers was fixed. Representative, were strong arguments in favor of presiden- executive and judicial authorities of the tial government in Kazakhstan. country were determined as independent Reorganization of public health sys- governmental departments. tem was begun in 1995-1996. Main thrusts Alternative election to the Parliament of of the reform were introduction of medicine the country was performed for the first time, with many structures (state medicine, com- new representative government bodies were pulsory medical insurance, private sector). formed on site – Maslikhat. Formation of regulatory framework Private ownership right was defined of market economy was begun. So, law, in the Constitution of the Republic of regulating state support of small business, Kazakhstan for the first time and the first was adopted in 1997. measures on privatization and denational- Development strategy of the country ization were taken. Privatization in the coun- – “Kazakhstan-2030” was declared the try was performed step-by-step. National same year in a Message of the President. programmes were primary management Kazakhstan was the first among newly tools of these processes on each of stages. independent states of ex-USSR, which Kazakhstan introduced its own nation- proceeded to such major strategic planning. al currency - tenge in November 1993. This large-scale programme is a document One of the most outstanding examples of historical and political importance. Way of of far-sightedness and strategic vision new independent national development of during that period was establishment of Kazakhstan as independent state was built- International award called “Bolashak” for in in the strategy. Peculiarities and external training specialists with foreign education. development factors of the country are taken Banking reform was performed at the into account in the document. beginning of 1994. Strategy-2030 contained seven long- Further (1995 – 1998) a process of term priorities – national security; internal creation of the country’s political system stability and society consolidation; economic architecture was observed. Development of growth based on market principles, with high political system of Kazakhstan was defined level of foreign investments and domestic by provision of the Constitutions of 1995, savings; health, education and prosperity of which was adopted on referendum, and con- Kazakhs; power resources; infrastructure, firmed transition to presidential government. particularly transport and communication;
20 Report The Republic of Kazakhstan Section 2. Strategic way of Kazakhstan professional state. These priorities impacted factors, decrease of dependence of the re- on formation of state budget, each item sup- publican and local budgets on world prices’ posed particular actions on implementation market conditions. of annual, three- and five-year plans. So, Within that period of time, principal next tasks of the country and the society direction of socio-economic policy was were timely pension payment, payment of construction of post-crisis economic de- benefits and salary to public sector employ- velopment model, based on high rates of ees; crediting of small and medium-sized development of commodity sector: oil and businesses and farms with 100 mln. USD gas fields’ development with the purpose of with simultaneous reduction of loan rates for rehabilitation of other economic branches farms; schools computerization, firstly rural. and rise of income in national budget. Next period (1998-2000) is character- Major decision of economic policy of the ized by strengthening and growth of dem- state of that period was vector for creation of ocratic element of political system of the competitive production. country. General trends of political reforms, Period 2000-2002 is characterized focused on development of democratization, by further transformations. It was begin- were presented in annual messages of the ning of the Second modernization of the head of state to nation of Kazakhstan in country. Each Message was a new step 1998 and 2000. during implementation of the Strategy Step-by-step construction of parlia- “Kazakhstan-2030”, and set clear missions mentarism, based on multiparty system, for the next year. The Government prepared was observed for creation of democratic five-year indicative and ten-year strategic state. There are 7 parties in Kazakhstan plans in 2000, where priority of economic nowadays. growth was stipulated. The Strategy became Pension reform was begun in 1998. more and more concrete and practical. Kazakhstan is the first country among CIS It was necessary to work out the strate- countries, which performed reform of pen- gy for further political changes in 2000-2001 sion coverage. Its main principle was transi- due to delays of political reforms’ rates from tion from state “united” to stocking system of economic transition. pension coverage. These offers were presented in National fund of the Republic of the President’s Message to people of Kazakhstan was founded in 1999, and its Kazakhstan “To free, efficient and secure primary purposes are guarantee of stable society” in 2001. Tasks on society democra- social and economic development of the tization by primary trends, among which the country, accumulation of financial assets for most important are expansion of authorities future generations, decrease of economic of representative bodies, expansion of elec- dependence on impact of negative external tivity and improvement of elective legislation
21 Report The Republic of Kazakhstan Section 2. Strategic way of Kazakhstan and also consolidation of civil society organi- “Strategy of industrial and innovative de- zations, were assigned within the framework velopment of the Republic of Kazakhstan for of the Message. 2003-2015” was adopted in 2003, it aimed Ten-year strategic plan of the country at achievement of stable development by development was generated in 2001 in order means of diversification of economic sectors to implement the Development strategy up and departure from raw materials’ trend of to 2030. development. Some programmes were ad- Efficiency improvement of the state’s opted in addition to the strategy: formation activity with a focus on division of powers and development of national innovative sys- between public management levels, quality tem; extension of social reforms; microcre- administration of public services were import- dit development; development of small and ant strategic priorities within ten-year period. medium business, education in 2005–2010, As a result of implementation of the space industry, dwelling building, securities aforementioned strategic plan, areas of pub- market, and road industry for 2006–2008 lic health, education and social protection of and others. the population have experienced noticeable Presidential election of 2005 upended transformations. the whole era of sovereign development of Kazakhstan was designated as mar- the country and became preface of its new ket-economy country within the same stage, specific character of which is com- period, in 2002. Appropriate conclusion was plete political modernization of Kazakh so- given by the United States Department of ciety together with economic restructuring. Commerce, based on such parameters as In 2005, Kazakhstan entered group of national currency convertibility, attraction of countries with medium income according foreign investments in development of the to the classification of the World Bank. country, level of corruption etc. The same Message to people “Strategy of year, Kazakhstan became the first coun- Kazakhstan inclusion into fifty of the most try among CIS countries which received competitive world countries” added fresh im- sovereign investment rating. It officially petus to reforms in 2006. It was suggested confirmed that favorable conditions for in- in the strategy to focus on such important vestments were created in the state. trends as implementation of breakthrough Period, characterizing with successful international projects, development of com- operation of market economy institutes, was petitive production, integration into interna- begun in 2003. Private sector of the econ- tional economy by means of participation in omy, tax, and trade and investment legisla- regional and international economic allianc- tion was formed and is growing in strength. es, development of transport infrastructure. All these guarantee free promotion of sales New constitutional amendments were and capital. introduced in 2007: expansion of authorities
22 Report The Republic of Kazakhstan Section 2. Strategic way of Kazakhstan and privileges of legislative power, new resources development and strengthening structure of party field, development of real the institutional base. civil society and nongovernmental sector. National programme on forced indus- Social and economic peculiarity of the trial and innovative development (hereinaf- Message of 2008 was driven by the need in ter –NPIID for 2012-2014 was begun. The optimization of economic institutes, improve- national programme included ten industrial ment of legislation and strengthening of the programmes, “Industrialization map for state’s social policy. 2010–2020” and “Scheme of rational distri- Global financial and economic crisis of bution of production capacity”. Mechanism 2008–2009, which led to depression and of NPIID implementation on regional level uncertainty, updated role and actualized the was programme “Business road map up to Messages to Kazakh people. 2020”, aimed at improvement of business Trends, which do not allow GDP reduc- activity and creation of infrastructure of busi- tion and maintain economic growth, were ness support. clearly denoted in a 2008’s Message. In view of long-term execution of some The same year the government of the trends of the Strategy “Kazakhstan-2030” Republic of Kazakhstan adopted action plan and inclusion of the country to 50 devel- on stabilization of the economy and financial oped states, the President announced system for 2009-2010. Five key trends were new policy, having adopted Strategy determined in it: financial sector stabilization; “Kazakhstan-2050”. Kazakhstan took the problems’ solution on real estate market; 50th place in the world on GDP volume in SME development; agro-industrial complex 2012, and the 50th place in rating of global development, and also implementation competitiveness in 2013. These achieve- of innovative, industrial and infrastructure ments allowed declaring that modern projects. Implementation of crisis response Kazakhstan succeeded as state. Therefore, measures was begun. Strategy of regional inclusion of Kazakhstan to 30 of the employment and personnel development strongest world economies was declared (“Road map”) was implemented in parallel. as the main goal by the Head of the state in Important milestone in evolution of the December 2012. country was 2010 year. Strategic develop- Establishment of new development strat- ment plan of the Republic of Kazakhstan egy was stipulated by geopolitical changes up to 2020 was approved in Kazakhstan in the world, slowdown in global economy within that period. Such planning was proper growth, which brought new challenges and response to challenge, which appeared due opportunities before in the country. to world crisis. The main purpose of the Seven priority trends of the country de- strategy is to guarantee qualitative economic velopment were determined in the strategy growth by means of modernization, human “Kazakhstan-2050”:
23 Report The Republic of Kazakhstan Section 2. Strategic way of Kazakhstan
1. Economic policy: universal pragma- growth, identity and unity, formation of ac- tism according to principles of profitability, countable state. return on investments and competitiveness. Kazakhstan passed initial stage of com- 2. Comprehensive business support – plicated global transformation by following leading force of national economy. economic policy “Nurly Zhol” and Plan of 3. New principles of social policy: social nation – 100 specific steps. guarantees and personal responsibility. Third modernization, which guar- 4. Knowledge and competencies – ed- antees global competitiveness of the ucation and personnel development points. country, was declared by the President 5. Strengthening of statehood and de- of the country in its Message in 2017 as mocracy development. the next step of the state’s development 6. Coherent foreign policy: promotion of after successful implementation of two national interests and assistance in strength- modernizations. ening of regional and global security. Important event in political life of the 7. New Kazakh patriotism is a formula country in the same year was constitution- for success of multicultural and multi-faith al reform. This reform stipulates partial society. transfer of powers from the president to Nowadays, long-term priorities, laid in the government, and formation of new bal- the Strategy “Kazakhstan-2050: new politi- ance between branches of government. cal trend of successful state”, are reflected In his Message to the people of and detailed in following documents of state Kazakhstan in 2018, the president deter- planning system according to hierarchy. mined a number of solutions, which allow President declared new economic adaptation and orientation in a new world policy of Kazakhstan “Nurly Zhol”, which is – world of fourth industrial revolution. aimed at continuation of structural reforms “Strategic development plan of the in the economy, in his Message in 2014. Republic of Kazakhstan up to 2025” Infrastructure development plan became a (hereinafter – Strategic plan up to 2025) core of the new policy. was approved for initiation of third mod- President proposed Plan of nation – 100 ernization of the country in 2018. Strategic specific steps on implementation of five in- plan up to 2025 replaced Strategic plan up stitutional reforms for strengthening Kazakh to 2020, which purpose was overcoming statehood and inclusion into top 30 devel- consequences of the global financial cri- oped world countries in 2015. These are five sis and development of diversified econ- steps, which shall be consistently passed omy. Main tasks and target indicators of by the country: formation of professional Strategic plan up to 2020 were achieved in state apparatus, guarantee of supremacy of advance; remained ones are implemented statute law, industrialization and economic through national programmes and plans.
24 Report The Republic of Kazakhstan Section 2. Strategic way of Kazakhstan
New model of economic growth, based Reducing the tax burden to increase the on promotion of export-oriented produc- wages of low-paid workers tion due to productivity improvement and Increasing accessibility and quality of complexity of the economy, development higher education and improving students’ of human capital and attraction of private living conditions sector in the context of increased compe- Microloans increase tition, leading role of private sector, and Further gasification of the country implementation of potential of country’s Thus, through to political stability and regions development, were laid as a basis public consensus, Kazakhstan began the of Strategic plan up to 2025. process of economy, policy and conscious- Besides that, in March of 2018 President ness modernization. Independence of the of Kazakhstan announced five initiatives country successfully passed historical ex- aimed at social modernization: amination: overcoming a lot of challenges New opportunities for each family to and testing, Kazakhstan accomplished as purchase accommodation prosperous state with vibrant economy
25 Report The Republic of Kazakhstan Section 3. Economic growth
SECTION 3. ECONOMIC GROWTH
The beginning of XXI century was peri- 2007. Changes for the better were stipulated od of rapid growth of Kazakh economy. The by notable increase of export, high rates of growth was promoted by weighted course investments and industry increase. By the of Kazakhstan towards urgent performance middle of the first decade of new century, of consistent economic reforms, large-scale Kazakhstan became one of the most dy- privatization, entrepreneurial development, namically developing countries in the world. and also favorable conjuncture on the world Annual increase of Kazakh GDP was 9-10% market. within that period. The country advanced Economy of Kazakhstan strengthened new independent states by many indicators, its potential and achieved high ranges stable and joined the ranks of world leaders by development in period between 2000 and GDP growth rate.
Dynamics of GDP of the Republic of Kazakhstan in current prices for 2000-2016
(Gross Domestic Product in current prices, trln. KZT) Source: Statistics Committee of the Ministry of National Economy of the Republic of Kazakhstan
26 Report The Republic of Kazakhstan Section 3. Economic growth
According to classification of the World critical raw material for nuclear industry. In Bank, Kazakhstan entered the group of 1997, Kazakhstan was on the 13th place in countries with medium income and in uranium extraction, the state took third place terms of GDP per capita of the world rating after Canada and Australia in 2003, and be- among 211 countries in 2007 by reaching came the largest supplier of uranium in the the 88th position. Moreover, simultaneous- world in 2010. ly, Kazakhstan was included into the group In 2012, uranium extraction in of 25 the most investment-attractive world Kazakhstan accounted 37% of the whole countries. Economic development in 2000’s world production output. escalated faster, than had been expected. Economic growth model, which was GDP rate has doubled in 2008 in compari- formed within the period of high prices on son with 2000. main export goods, allowed successful Moreover, Kazakhstan doubled its GDP social and economic development. Content- per capita within three years period between wise, it was based on transformation of high 2005 and 2007: this important index exceed- primary revenue into domestic demand. ed USD 7,000 in 2007. But in comparison World economic crisis was a great with the middle of 1990s this index has in- challenge for durability of Kazakh econ- creased ten times. omy. The next, more powerful wave of Economic policy of Kazakhstan provid- crisis led to sharp decline of world prices ed excellent results. Oil sector provided eco- on Kazakh export products. Oil prices de- nomic growth. Strategy of stable growth of creased almost four times within 2008 and oil industry was developed, which promoted metal prices declined twice in comparison the whole economy and social area of the with previous prices. This led to growth rate country. Milliard ton of oil was extracted in reduction of Kazakh economy: GDP growth Kazakhstan in September 2005. Positions was only 3,3%. of Kazakhstan as appropriate investor in Foreign trade turnover of Kazakhstan oil and gas projects, implemented in the decreased on one third in 2009. World eco- country, were strengthened, conditions of nomic crisis detected necessity in diversifi- product sharing with foreign oil companies, cation of national economy. performing oil extraction in Kazakhstan, At the beginning of 2010 economy of were established. Kazakhstan demonstrated considerable Large domestic enterprises, special- growth, having overcome consequences of izing in extraction of raw materials, ore, world crisis of 2007– 2009. metal production, made a large contribution GDP increase was 7,5% in 2011. to economic growth of Kazakhstan. Status Kazakhstan took third place in the world of special importance was allocated to the after India and China on ratio of GDP and production of natural uranium, which is a investments.
27 Report The Republic of Kazakhstan Section 3. Economic growth
GDP increased almost 6% in 2012. Rates of economic growth decreased to Kazakhstan entered fifty largest economics 4,3% during completion of primary products’ on GDP volume in December 2012, and took supercycle in 2014. However, Kazakhstan 50th place among 148 countries (between achieved preservation of GDP growth – Italy and Portugal) in Global competitive- 1,2% in 2015, and 1,1% in 2016 against ness rating of the World Economic Forum instability and recession in partner countries. in 2013. The highest result in this rating Kazakhstan took 43th position in the was achieved in 2015, when Kazakhstan World Bank’s rating of GDP per capita in 2016. reached 42nd place (between Poland and Preservation of general stability in 2015-2016 Italy). General mission - to enter fifty of the meant that certain anti-crisis, stabilization most developed countries in the world was steps were made in correct direction. almost accomplished. Other economic sectors were devel- oped together with raw material sector.
GDP breakdown by branches for 2013 – 9 months of 2017, %
9 months of Branches 2013 2014 2015 2016 2017 Production of goods 38,2 37,5 35,6 36,0 37,7 Agriculture, forestry and fishing industry 4,5 4,3 4,7 4,5 4,5 Industry 27,7 27,3 24,9 25,5 27,6 Mining industry 15,2 15,1 12,6 12,9 14,0 Processing industry 10,6 10,3 10,3 10,6 11,5 Electrical supply 1,6 1,6 1,7 1,7 1,8 Water supply 0,3 0,3 0,2 0,2 0,3 Building 6,0 5,9 6,0 6,0 5,6 Tertiary industries 53,2 54,8 59,3 57,9 55,9 Trade 15,0 16,0 17,1 16,9 15,5 Transportation and warehousing 7,6 7,9 8,6 7,9 7,7 Services on accommodation and food 0,9 0,9 1,0 1,1 1,0 Information and communication 2,6 2,5 2,6 1,7 1,8 Financial and insurance activity 2,7 3,0 3,5 3,6 4,0 Real estate operations 8,4 8,3 9,0 8,9 7,6 Professional, scientific and technical activity 4,3 4,2 4,6 4,6 4,1 Activity in the area of administrative and 1,8 1,9 2,1 2,2 2,1 additional servicing
28 Report The Republic of Kazakhstan Section 3. Economic growth
9 months of Branches 2013 2014 2015 2016 2017 Public management and defense; 2,0 1,9 2,0 1,9 2,3 compulsory social benefits Education 2,9 2,8 2,9 3,0 3,5 Public health and social services 1,6 1,7 1,8 1,9 2,2 Art, entertainment and recreation 0,7 0,7 0,8 0,8 0,7 Rendering of other kinds of services 2,8 2,9 3,3 3,4 3,3 GVA 91,4 92,4 94,9 93,9 93,9 Net taxes on products and import 8,6 7,6 5,1 6,1 6,4 GDP 100,0 100,0 100,0 100,0 100,0
Source: calculations on the basis of data of Statistics Committee of the Ministry of National Economy of the Republic of Kazakhstan
So, share of goods production in struc- about 3.2 million people; number of active ture of the country’s economy in 2013-2016 SMEs in 2016 was about 1.2 million units. has decreased from 38.2% in 2013 to 36% Positive development dynamics, which in 2016, and share of services has increased main catalyst is National program of industri- from 53.2% to 57.9%. With economic de- al and innovative development implemented velopment, increase in share of services in in Kazakhstan, is observed in industrial sec- the structure of the economy is common for tor of the economy. It is focused on accen- many developing economics. tuated stimulation of competitiveness of the Primary share in sector of services is manufacturing industry, increase of labour occupied by trade, transportation, real productivity and increase of export volume estate transactions and financial activity. of processed goods. This will create a new New event in 2000s was development base for industrial growth. of new industries, including production of The program is solely focused on the trucks and cars, diesel locomotives, electric problems of processing sector development. locomotives, wagons. This predetermined necessity of parallel Average increase rate of GVA of agricul- launching of other programs on diversifica- ture was 4.5% in 2013-2016, and 6.0% of tion and promotion of related economic sec- construction. tors - primarily, productive services sector, Small and medium business is ac- agriculture, economy digitalization, etc. tively developed. Share of SMEs in GDP It is planned to achieve following economic increased significantly from 10.5% in 2005 indicators by 2019 as a result of the Program to 26.8% in 2016. Nowadays SMEs employ implementation:
29 Report The Republic of Kazakhstan Section 3. Economic growth
1. Growth of export volume of manufac- Also it is worth noting that invest- turing production by 19% by 2015; ments play a key role in the development 2. Increase of labour efficiency in pro- of the economy of any country. Solution cessing industry on 22% in real terms in of socio-economic problems, related to comparison with 2015 level; guarantee of economic growth, increase of 4. Investment amount to capital stock of pro- living standard of the population, country’s cessing industry in the amount of 4,5 trln. KZT; competitiveness, and macroeconomic sta- Hereinafter, at later stages of industrial- bility, depends on the volume, and state of ization, support will be given to mass output investment process. and strengthening of efficient Kazakh produc- Fixed investments in Kazakhstan in real ers on regional markets. terms increased 5.8 times within 2000-2016.
Dynamics of fixed assets for 2000-2016
(Real growth of investments, % by 2000 (2000=100) (right axis)
Source: Statistics Committee of the Ministry of National Economy of the Republic of Kazakhstan
Average ratio of fixed investments to Kashagan, Karachaganak and Tengiz,. GDP was 23.7% within 2000-2016. Average Share of processing sector is growing growth of economy of the Republic of in structure of fixed investment, during the Kazakhstan exceeded 10% during a period implementation of the industrial program. of accelerated growth of fixed investments Formation of new drivers of economic (2000-2007 - 28% to GDP). growth and further industrialization became Investments in mining sector are grow- the main purpose of Kazakhstan. Economic ing because of large industrial projects being development was promoted by improvement implemented in oil-extracting sector, such as of conditions for business.
30 Report The Republic of Kazakhstan Section 3. Economic growth
Eurasian Economic Union began its Secondly, almost all economic sub-in- work in 2015; Kazakhstan entered World dustries demonstrated positive growth (from Trade Organization, which opened new 21 industries in 2016 to 31 in 2017). opportunities for domestic exporters and Thirdly, processing industry demon- foreign investors. Second industrial five- strated five-year maximum of 5,1% against year plan, infrastructure program “Nurly previous indicators, which ranged from 0,2 Zhol” and Plan of Nation - 100 concrete to 2,9%. steps allowed Kazakhstan to pass the most Fourthly, “desirable” sectors have complicated stage of adaptation to a new grown. Pharmaceuticals increased by global reality. 41.8%, automobile construction by 39.0%, Precisely willingness of the state to any light industry by 7.3%, chemistry by 7.2% turn of events provided stability of the econ- and metallurgy by 5.9%. omy, despite of unfavourable conjuncture. Fifthly, export of non-commodity goods Economy of Kazakhstan sustained increased by more than 22%. Product line shock from low oil prices, delays in eco- expanded inside it: supplies of household nomics of key trading partners and is grad- appliances, buses, textiles and other prod- ually adapting to new realities. GDP growth ucts increased to foreign markets (exports achieved 1,1% in 2016, having increased of- of these goods was 1.5 billion US dollars or ficial forecast by 0,5%. The country returned more in 1.5 times). to the way of confident growth in 2017, by What had an impact on quality of eco- overcoming negative consequences of the nomic growth? Inflation stabilized, decreased world crisis. to 7.1%, fixed investments increased, macro- Level of gross domestic product at pur- economic background was stable. chasing power parity per capita was 26 072 National programs have also demon- USD in Kazakhstan in 2017. strated outcomes. By the end of 2017, GDP growth was 120 projects have been introduced in 4.0%. What was its key feature? 2017 according to Industrialization Map. Firstly, 2/3 of GDP increase was pro- 10 thousand permanent work places were vided by non-resource based economy. created. Processing and service segments of econ- National Export Strategy was approved, omy increased their role. support in the amount of 50 bln. KZT was Share of raw material sector contri- provided to 400 manufacturers-exporters (or bution was 33% in 2017 (agriculture - 3%, to every fourth exporter). mining - 30%), non-oil and gas sector - 60% More 4,000 km of roads were recon- (processing - 14%, electricity and water sup- structed under the programme “Nurly Zhol”, ply - 2%, construction - 3%, services - 41 %) and transit container carriages increased by and net taxes – 7%. 30% (348 thousand containers).
31 Report The Republic of Kazakhstan Section 3. Economic growth
Programme “Nurly Zher” was launched, Public-private partnership has revived. in total, 11.2 million m2 of housing was com- 160 agreements for 146 billion KZT have missioned (6.2% by 2016), and more than been signed within 2017. 100,000 families received new housing. 542 projects for an amount of 1.8 trln. According to National Program for de- KZT are at a stage of preparation. velopment of Agro-Industrial Complex, 851 Investors will be able to plan long-term cooperatives have been formed; 132,000 investments, as guarantee for consumption tons of milk and 33,000 tons of fruits and for three years and more was formalized in vegetables were produced over the past year. legislation. Credits in the amount of 286 bln. KZT External environment also positively in- were cheapened and guaranteed according fluenced on intra-economic activity. Factors to programme “Business Road Map 2020”, of positive external conditions were higher 23 thousand of business owners were ed- price environment for oil and metals, as ucated. 192 thousand of business subjects well as improvement of economic situation received a support in 2017, which is 10,3% of main trade partners of Kazakhstan - EU, more in comparison with 2016. Russia and China. 500,000 citizens were supported Positive shifts in foreign trade were according to Program for Development registered. Key role in activation of recon- of Productive Employment and Mass structive processes was played by price Entrepreneurship, 315,000 of them were factor. Inflation background decreased by employed on permanent jobs. 1.4 percentage points, and was 7.1% in Amendments for quicker transmittance comparison with 2016. of public resources to the economy were Stable growth of economic sectors, in- made in the Budget Code at the end of 2017. ternational recognition, and political stability New Tax Code was introduced on became the basis of prosperity of Kazakh January 1 of current year. society. Fines (for understatement of advance Main trends of economic policy for payments from 40% to 20%) were reduced. 2018 will be: Grounds for tax inspections were reduced. • maintenance of macroeconomic stability; There are incentives in electronic com- • provision of favourable business climate; merce, automobile construction, geological • development of economic sectors, in- exploration, processing of raw materials and cluding digital component; attraction of investments. Tax procedures • development of transport and logistic were simplified for SME and AIC. infrastructure. Ideology has been changed - it is aimed Development of economic sectors, includ- at protection of honest business and admin- ing digital component, will continue by means istration is simplified. of industrialization policy implementation
32 Report The Republic of Kazakhstan Section 3. Economic growth through guarantee of access to project ca- industry of “digital era” with the emphasis on pacity of Industrialization Map’s projects and innovation, technology transfer and promo- increase of high-tech industries’ share. Work tion of digitization of processing industry. on stimulation of introduction of elements So, economic policy of Kazakhstan will “Industry 4.0.”, such as Big data, cloud tech- allow provision of further stable economic nologies and 3D-printing, will be performed. growth and maintenance of inflation rate in a Development of third five-year indus- new target corridor of 5-7% in 2018. trialization will begin, aimed at formation of
33 Report The Republic of Kazakhstan Section 4. Quality of life
SECTION 4. QUALITY OF LIFE
Level and quality of life
Nowadays, social policy is an import- of world countries in terms of their social ant lever for development and achievement development in 2017 among 128 countries of high living standards in general in each with index value of 66,01. country, and therefore development and Considering components of quality of improvement of quality of life of the popu- life of the population, such as income and lation is one of Kazakhstan’s top priorities, welfare of the population, the following as reflected in many country policy docu- shall be noted: ments. Applied efforts and taken measures National labour market has undergone for improvement of level and quality of significant changes over 25 years of inde- life of the population have achieved some pendence: level of economic activity of the success. It should be noted that for the population has increased, number of em- further socio-economic development of ployed in the economy has increased, un- the country, achievement of level of OECD employment rate has decreased (especial- countries is an important aspect. ly among youth), share of self-employed in According to estimates of United the employment structure has decreased, Nations Development Program (UNDP), growth of real salary in the country was ob- Kazakhstan is in the category of coun- served, there were changes in employment tries with a high level of human develop- structure by economic sectors (public and ment and took the 56th place in Human private sector, formal and informal sector). Development Index rating in 2016. Role of small and medium-sized enterpris- Kazakhstan took the 7th place es and role of the service sector in employ- with the result of 74 percentage points ment has been strengthening gradually. in annual happiness index, made by Nowadays, the unemployment rate in International Association of Independent Kazakhstan is low - 5% and this indicator Research Agencies Gallup International. weakly responses to cyclic fluctuations of Ten of the happiest countries also includ- economic growth rates. This is related to ed Fiji, Colombia, the Philippines, Mexico, the fact that there is a “shock absorber” in Vietnam, Papua New Guinea, Indonesia, the form of self-employed population, part Argentina and the Netherlands. of which is engaged in informal sector of Kazakhstan took 74th place in the economy. The Social Progress Index of internation- al research project The Social Progress Imperative, which measures achievements
34 Report The Republic of Kazakhstan Section 4. Quality of life
Number and structure of employed in the years old, are gainfully employed, which is Republic of Kazakhstan, thousand people significantly higher than the average level of employment in OECD countries (66%). Among men, about 79% are gainfully em- ployed and 69% among women. Kazakh people work 1,805 hours per year in aver- age, that is more than employees in most developed OECD countries (1,763 hours). Being main source of income for the population, average salary in Kazakhstan has doubled within the last six years. In 2016, 78.3% of population income con- sisted of employment income, 68% among them was income from direct employment, There is a gradual decrease in share 10.3% - income from self-employment and of self-employed population: from 35% of entrepreneurial activity. Then, there is an in- total employed population in 2007 to 25% come in form of pensions that made 15% of in 2017. But, there are regions, where share household income structure in 2016. Lesser of self-employed population is still very high: share in household income was occupied by South Kazakhstan - 44%, Zhambylskaya - benefits - 2.8% and welfare assistance from 40%, Kyzylordinskaya and Akmolinskaya relatives - 3.2%. oblasts -35%. Unemployment rate has reduced from 7.3% to 5% within the last 10 years, level of Income structure youth unemployment (18 years - 24 years) has decreased from 9.4 to 3.9%. Share of qualified personnel in the labour force is increasing and share of low- skilled and unskilled employees is reducing throughout recent years. Share of people with higher education increased from 26.2% to 35.6% during 2010-2016 in structure of la- bour power, their number increased by 42%; share of people with secondary vocational education increased from 28% to 35%, their number increased by 30%. As to employment, more than 74% of population in Kazakhstan, from 15 to 64
35 Report The Republic of Kazakhstan Section 4. Quality of life
Housing provision. One of the most and public utilities by means of public funds). important tasks of the state’s economic Moreover, measures for development of policy is a provision of affordable housing to rental housing market in the country are citizens. being envisaged. National programs of housing con- According to the results of implementa- struction development in the Republic of tion of Programme “Nurly Zher”, 979.8 bln. Kazakhstan were successfully implemented KZT was invested in housing construction in for 2005-2007 and for 2008-2010, housing the past year, which is 18% more than the construction in the Republic of Kazakhstan last year’s level. Share of private invest- for 2011-2014, and “Affordable Housing – ments was 825.8 bln. KZT, or 84.3% of the 2020”. Provision of population with housing total investments, public investments were became a priority trend of current Program 154 bln. KZT, or 15.7% of the total invest- for Regions Development until 2020. ments. 11.2 million m² of housing were put The Government of the Republic of into operation, which is 6.2% higher than the Kazakhstan developed a single program last year’s level. 100.8 thousand dwellings of housing construction “Nurly zher”, which were built in total, where 75% of them were is currently active, in 2016. Main purpose at the expense of the private sector. of the program is comprehensive solution The most important aspect is that im- of housing construction problems, which plementation of programme “Nurly zher” will ensures further increase in affordability of increase housing stock, and the population’s housing for the population. housing provision level will be closer to It is planned to build about 1.5 million world standards. of affordable housing within 15 years by the Provision of population with housing program “Nurly Zher”. Programme “Nurly in Kazakhstan has grown by 20% since Zher” offers new approaches to housing 2005 and was 21 m2 per person by 2016. construction, taking into account internation- According to the statistics, 10.5 million al experience, and by integration of housing m2 of new housing was commissioned in issues from existing programs. Kazakhstan in 2016, which is 17.5% more National programmes of housing con- than in 2015. Residential real estate market struction were initially aimed at provision replenished on more than 89 thousand of of housing to socially vulnerable categories new apartments in 2016, and investments of citizens. Current program offers several in housing construction were 829.6 bln. mechanisms for development of housing KZT, which is 110.4 bln. KZT higher than market in Kazakhstan. These are subsidies a year ago. for mortgage lending rate, creation of con- It is expected that continuing pop- ditions for construction of private houses ulation growth, high intensity of internal (allocation of land, concessional lending, migration of population, urbanization and
36 Report The Republic of Kazakhstan Section 4. Quality of life increase of income in Kazakhstan will pro- PIRLS) are used. The country participates in mote growth of demand for housing and will international comparative studies of TIMSS, be one of the promising sectors for financial PISA, PIRLS since 2007. Participation in resources investments for Kazakhs and for these studies provides independent, objec- foreign citizens. tive assessment of the education quality. According to various estimates, housing With the appearance of economic op- deficit in Kazakhstan is about 23 - 25 million portunities, preschool education and training m2 of residential space. became a priority of state policy. Experience of foreign countries shows, In 2010, the President of the country N. that construction activity shall be at a rate A. Nazarbayev initiated program “Balapan” of about 1 m2/person per year for critical for 2010-2014. It was starting point for large- improvement of housing provision in ac- scale development of pre-school education ceptable terms (during life cycle of one in the country. Successful implementation of generation). For example, within the period the program allowed increase of network of of intensive solution of housing problems, pre-school organizations by 2,189 units (in 0.9-1.5 m2 of housing per person were built 2012 - 7,221, in 2016 - 9,410). Coverage annually in Japan, 0.7-0.8 m2 in USA, about of children aged from 3 to 6 years with 0.7 m2 in France and Germany, China sup- preschool education and training increased ports construction activity at level of 1 m2 per from 39.4% (2012) to 81.7% (2016). person for a long time. So, UNESCO marked Kazakhstan as To achieve construction activity in the country with significant progress in gross Kazakhstan at level of about 1 m2 per per- coverage ratio of children with preschool son, it is necessary to increase annual vol- education in International Report “Education ume of housing construction to 17 million m2. for everybody 2000-2015: achievements Education is one of key factors of and challenges” in 2015. human capital development. Development of network of pre-school Kazakhstan is among top 8 countries organizations promoted growth of number of according to the UNESCO IOI, due to high teaching staff. Compared to 2011, number of rate of coverage with primary education, pre-school education specialists increased adult literacy, share of students which stud- by 32 thousand people and was 84,796 ied to the 5th grade, and gender equality. people in 2016. Achievement of Kazakhstan on assur- Special attention was paid to develop- ance of quality of education is creation of ment of content of pre-school education. New national system for assessment of quality “State compulsory standard of preschool of education. Internal (UNT, EEEA, licens- education and training” was developed in ing, attestation) and international education 2008. Introduction of the Standard is stipu- quality assessment tools (PISA, TIMSS, lated by new requirements on preparation to
37 Report The Republic of Kazakhstan Section 4. Quality of life
12-year school education and competence 13,824 students are educated. International approach to education. Together with the School of Astana implements its activities by basic system of preschool education and the Program of International Baccalaureate training, alternative programs “Step by since 2013. step”, M. Montessori, early development of New model of labour payment for civil English language Gymboree Play & Music, servants, including educators, was launched Academy FasTracKids and others, have in 2016. Additional payments and incentives been successfully introduced in Kazakhstan. are stipulated for high achievements at work Further development of preschool edu- for teachers. This will improve professional- cation and training in accordance with world ism of teachers, increase attractiveness of trends is stipulated in policy documents. profession and reduce high pedagogical load. This is 100% achievement of coverage of Basic content of renewed education is children of 3-6 years old by 2020, the devel- implemented within the framework of the opment of public-private partnership (herein- trilingual education policy. Essence of the after referred to as PPP) in order to increase policy is fluency of new generation in three number of kindergartens, increase share of languages: Kazakh, Russian, and English. teachers, assess the results of children’s Nowadays, multilingual education is development. successfully implemented in specialized Network of secondary education in schools’ network “Daryn”, NIS, in education- Kazakhstan is very developed. It includes al innovative lyceums and others. public and private schools, lyceums, gym- Four subjects of natural and mathemati- nasiums, specialized schools for gifted chil- cal cycle were defined for transition to educa- dren, and Nazarbayev Intellectual Schools tion in three languages, according to which, (hereinafter NIS). education in high school will be in English, First NIS was launched in 2008 in they are Physics, Chemistry, Biology, and Astana on the initiative of the President of the Computer Science. Implementation of Republic of Kazakhstan N. A. Nazarbayev. teaching in English is planned for the begin- Intellectual schools were opened almost ning of 2019. in all regions of the country within 5 years. Modernization of technical and vo- Intellectual schools implement two educa- cational education system (hereinafter - tional models: First – integrated educational TVES) in accordance with the requirements programme of natural and mathematical of the society and industrial-innovative de- area, Second - Programme of International velopment of the economy, integration into Baccalaureate. the world educational space is the main link As of 2016, there are 20 NIS of natural of the state policy in the area of education. and mathematical area in all regional cen- Dual education has been introduced in tres and in Astana, Almaty, Semey, where Kazakhstan since 2012. Its principles are
38 Report The Republic of Kazakhstan Section 4. Quality of life implemented within the framework of nor- of the country. For the first time, 7 Kazakh mative legal framework. Promotion of dual contestants took part in 43rd Championship education is declared as one of the main World Skills International-2015. purposes of TVES development until 2020. Kazakhstan became 28th member of Concept of National Qualification the International Association Euro Skills in System and methodological recommenda- 2016. 500 contestants from 28 countries tions for the development of branch qualifica- took part in 35 competencies of six areas of tion frameworks and professional standards EuroSkills-2016 (Gothenburg, Sweden). were developed since 2011 to 2015 within Modernization of higher and post-high- the framework of the World Bank project er education in Kazakhstan was conducted “TVES modernization”. Adopted in 2012, in following areas: National Qualification System corresponds • integration to the European educa- to the European one, provides inter-sectoral tional space of higher education (signing of comparability of qualifications and is the ba- Lisbon Convention in 1997, attachment of sis for independent certification system. Kazakhstan to Bologna Declaration in 2010, Initiative of the President of the country development of academic mobility of learners “Free vocational education for everybody” is and faculty); aimed at state support of vulnerable social • expansion of access and support groups of population. Implementation of of talented Kazakh youth (launch of the this project since 2017 will allow TVES to Presidential Award Bolashak in 1993, annual achieve new development level. increase in number of grants); New approaches are being developed • Creation of a world-class university for renewal of content of educational pro- (Nazarbayev University) and joint interna- grams of TVES, which include possibility to tional universities (International Kazakh- receive up to three related qualifications by Turkish University named after Khoja credit educational system. Akhmed Yasawi, Kazakh-British Technical Kazakhstan is a participant of Turinese University, branch of Lomonosov Moscow process since 2010. Participation of State University). Kazakhstan in this international initiative Priority of higher and postgraduate edu- provides international assessment of TVES cation in Kazakhstan is a trinity of education, development. Report “Turinese Process science and production. The first research Kazakhstan 2016” was created for the first higher education university - Kazakh National time in 2016, based on self-assessment by Research Technical University named after national experts. K. I. Satpayev was created. Pool of leading Kazakhstan’s full participation in World scientists of the country, performing funda- Skills since 2015 is one of mechanisms for in- mental and applied scientific and education- troduction of international standards in system al researches was formed there.
39 Report The Republic of Kazakhstan Section 4. Quality of life
All these factors contributed to entry been developed and is being implement- of Kazakhstan into the European Higher ed. In the course of implementation of Education Area. previous state programs, the potential Public health and health service. of Kazakhstan’s healthcare system was Health of residents of Kazakhstan is one strengthened, elements of market mecha- of the key indicators, reflecting level of the nisms were introduced and a transfer of mod- country’s socio-economic development. ern medical technologies was implemented. National Health Care System of The new health development program is Kazakhstan is socially-oriented system, aimed at consolidating and developing the based on principles of universal population achieved results and solving health problems coverage, social justice, provision of quality in accordance with new challenges, and will medical care and joint and several respon- also become the basis for the planned de- sibilities for health in accordance with key velopment of the industry until 2050. principles of strategy of the policy of the The health sector is currently in the World Health Organization “Health-2020”. stage of active institutional reforms, the de- According to the report of the Global velopment of human resources at all levels Competitiveness Index (hereinafter - GCI) of the industry and the provision of high-tech for 2017-2018, Kazakhstan classified 57th medical care. The goal of the reforms is to in the ranking among 137 countries. A increase the efficiency, accessibility and significant improvement in the ranking is effectiveness of the health care delivery noted by the factor “Healthcare and primary system, the priority development of pri- education”, having risen by 35 positions to mary health care for the population, which 59th place, occupying an average level. ensures the improvement of the health Due to the measures taken to improve status of the population. Within the frame- the health of the population, the average life work of this state program, modernization expectancy in Kazakhstan in 2016 was 72.4 and priority development of primary health years, 76.6 years for women, and 68.0 years care (hereinafter referred to as PHC), with for men. the integration of all health services around Kazakhstan is moving to a phased the needs of the population are carried out. implementation of OECD standards aimed The structure of the PHC model is revised, at improving the quality and accessibility taking into account the maintenance of the of health services, improving the efficiency family service principle, which will reduce of health system management and financ- the burden on one general practitioner to the ing systems, and rational use of available level of OECD countries by 2019 (up to 1500 resources. people); a reorientation of PHC activities Today, the State Health Development from treatment to prevention, risk assess- Program “Densaulyk” for 2016-2019 has ment and disease management in the early
40 Report The Republic of Kazakhstan Section 4. Quality of life stages; measures are being taken to restore to 486 tenge) was carried out, since 2014 a pediatric sites for the most vulnerable group comprehensive per capita standard (herein- of children (from 0 to 6 years). after - CPCS) with a stimulating component Medical care for the main causes of mor- (partial fundholding) was introduced; estab- tality (circulatory system diseases, oncology, lished the Institute of Social Workers (by respiratory diseases, injuries and accidents) the end of 2014, there are 1.2 per 10,000 with the introduction of an integrated model population); the number of general practi- of disease management is being improved. tioners (hereinafter referred to as GP) was In 11 regions of the country, the Program for increased by 30%. Management of Chronic Diseases has been With the introduction of the Unified introduced, based on the active manage- National Health System at a steady-state ment of patients with chronic diseases (di- level, the state’s volume of free medical care abetes, arterial hypertension, chronic heart was consolidated at the level of the national failure). budget, reducing the difference in funding With the purpose of digital modern- between regions, the principle of “money fol- ization of healthcare, the Platform for lows the patient”, financing for cost-effective Interoperability (Integration) is being imple- groups, was implemented. mented, on the basis of which the Electronic Kazakhstan is a country that is actively Health Passport, the patient’s Personal developing medical tourism. For this pur- Account and the Personal Account of the pose, a network of clinics of various profiles Doctor will be developed. was created. A model of the public health service that In 2015 3,623 foreign patients visited is the basis for protecting public health has our country. Among them, there are citizens been created and is being developed. New of England, the United States, Russia, structural units of the Ministry of Health of Kyrgyzstan, Bulgaria, Turkey and other the Republic of Kazakhstan were formed: countries. The most popular services provid- the Public Health Protection Committee and ed to foreign patients in 2015 were micro- the Public Health Policy Department. The surgical removal of the spinal hernia of the Scientific Center for Public Health is also intervertebral disc, coronary artery bypass opening. grafting and treatment of various gynecolog- In order to strengthen the preventive ical problems. focus at the primary level, the following With the creation of modern clinics activities were carried out: in 2011, the of the National Medical Holding in Astana National Screening Program for 11 types and the development of cardio surgical and of diseases were implemented; leveling neurosurgical assistance in the country, the between the regions of PHC financing with need of Kazakhs for foreign treatment has an increase in tariff per 1 resident (from 169 significantly decreased, and for foreigners
41 Report The Republic of Kazakhstan Section 4. Quality of life it has become possible to receive medical especially dangerous infectious diseases and services in Kazakhstan according to the dangerous goods; international standards. • developed infrastructure of organiza- In the centers of the National Medical tions providing medical assistance; Holding, high-tech services are being per- • successful experience of transfer of formed now at the highest international level. modern medical technologies and highly spe- JSC “National Scientific Cardiac cialized medical care; Surgery Center” actively introduces and • implementation of a quality manage- applies innovative medical technologies for ment system based on standardization and the diagnosis and treatment of diseases accreditation; of the cardiovascular system. The center’s • modern tariff system of health financing; achievement is that Kazakhstan has be- • flexible system of cooperation between come one of the 22 countries in the world, the state and private enterprises, international conducting unique high-tech surgeries on organizations within the framework of devel- the open heart, for example implantation of opment of public-private entrepreneurship; the artificial ventricle of the heart. • wide opportunities for the development The Center of Maternity and Childhood of medical tourism; of the National Medical Holding is the first • creation of conditions for the develop- in the CIS region accredited by the JCI or- ment of domestic manufacturers of medicines ganization that provides highly specialized and medical products. medical care for children and adults. The clinics of the National Medical Ecology. Holding regularly provide medical services Kazakhstan is a country for which envi- to employees of the diplomatic corps, for- ronmental issues are no less important than eign companies and foreign teachers of socio-economic development. Nazarbayev University. At least five dozen green technologies Summarizing the development of the and world-class innovations have been health care system in Kazakhstan, the fol- discovered in Kazakhstan, and noted at the lowing strengths should be noted: national contest Online-Expo-2017 and oth- • political support of the state at the high- er national and international competitions. est level and guarantee of fulfillment of social Only 20 years ago it seemed almost commitments; impossible to plant a green belt around the • stable epidemiological situation for most young capital of Kazakhstan. The time has infectious diseases with high immunization passed and here the city built in the steppe coverage of children; is already surrounded by a real forest, which • effective system of sanitary protection creates a more comfortable microclimate in of borders from the import and distribution of the main city of the country.
42 Report The Republic of Kazakhstan Section 4. Quality of life
The area of the green belt of Astana future of the planet. In addition, electricity is reached 78 thousand hectares. cut off at major sites and tourist attractions. The Astana initiative “Green Bridge” The promotion of the Eurasian integra- - is a bridge between the Asia-Pacific and tion within the “Green Growth”, on the one European regions, aimed at the transition hand, and the desire to strengthen the do- to a green economy in a vast space and mestic capacity and the implementation of in different regions of Europe, Asia and the the national program “Zhasyl Damu” (“Green Pacific. It calls for the integration of environ- Development”), on the other, meets the mental and economic policies for sustain- needs of Kazakhstan. Our country has the able and effective development. opportunity to be a kind of “green bridge”, an The “Green Bridge” includes the envi- interregional dialogue and advisory platform ronmentally efficient use of natural resourc- for key regional partners. es and investments in ecosystem services, In Astana, in 2017, the International low-carbon development and adaptation to Specialized Exhibition “EXPO-2017” was climate change, the promotion of sustain- held, the theme of which is devoted to re- able urban development, the promotion of newable energy sources (hereinafter - RES). “green” business and technology. As of the beginning of 2017, there are The “Green Bridge” initiative is a practi- 50 enterprises operating in the country us- cal mechanism for an international transition ing renewable energy sources with a total to a “green” economy through the promotion capacity of 295.7 MW (hydroelectric power of technological progress, enhancing the ex- station - 139.8, wind power station - 98.2, perience of environmental management and solar power plant - 57.3, biogas plant - 0.35). improving legal, economic and institutional Kazakhstan’s cooperation in the field conditions. All this will stimulate the devel- of renewable energy with the International opment of a new environmentally friendly Financial Institutions, the European Bank for industry. Reconstruction and Development is carried Natural resources are not infinite. They out within the Framework Agreements on must be protected, saved and restored. In partnership between financial organizations. this respect, a lot of work is being done in Kazakhstan is a full member of the Kazakhstan. International Renewable Energy Agency For several years, the people of IRENA. Kazakhstan have been supporting the Today, airborne suspended particles of worldwide environmental action “Hour of less than 10 μm in size (PM10), that is finely the Earth”, which takes place every year on dispersed particles, which are small enough March 19. Billions of people from around the to penetrate the lungs and cause health world turn off lights and household appli- damage, are 10 micrograms per cubic meter ances for one hour as a sign of care for the in Kazakhstan, which is below the OECD
43 Report The Republic of Kazakhstan Section 4. Quality of life average (14 micrograms per cubic meter). experience more positive emotions (feeling 85% of the population is satisfied with the calm and confident, proud of success, joy, quality of water used in Kazakhstan, which etc.), than negative (pain, anxiety, sadness, is slightly higher than the average for the boredom, etc.). This index is above the aver- OECD indicator (84%). age among OECD countries (65%). In order to preserve natural landscapes, Kazakhstan has a moderately high rare animals and vegetation in Kazakhstan, sense of involvement in society and a mod- there are currently 10 state Nature Reserves erately high level of people’s participation in and 12 national parks in Kazakhstan. Nature public life: 91% of Kazakhstan’s population Reserves of Kazakhstan are owned by the is confident that they have someone to rely state. on in a difficult minute, which is significantly higher than the OECD average (88%). Satisfaction with life, safety. According to the latest data, more In general, Kazakhs are no less satis- than 84% of the population of Kazakhstan fied with their lives than the average resident noted that they feel safe walking the streets of OECD countries: in Kazakhstan, 73% of at night, which is much higher than in the respondents believe that during the day they OECD countries (68.3%).
44 Report The Republic of Kazakhstan Section 5. Economic review of regions
SECTION 5. ECONOMIC REVIEW OF REGIONS
The basis of the regional policy of conglomeration of urban agglomerations. Kazakhstan is a balanced development Cities become the centers of economic strategy based on a rational balance of growth and make a predominant contribution the priority development of the centers of to the economic development of all regions economic growth, territorial concentration of the country. In the gross regional product and managed urbanization, as well as mac- for 2016, the share of the city of Almaty was ro-regional development based on the hub 22.6%, the city of Astana - 10.4%. The econ- and beam principles. As poles of growth, omy of cities is shifting from industry oriented the most dynamically developing cities and to service oriented. Thus, in the structure of regions, integrated with global and regional the service sector in Almaty the most de- markets, act as “locomotives” of develop- veloped are services related to real estate ment for other regions of the country. (26.5%), services in the field of advertising Spatial and territorial development of the and market research (10.2%), services in country is characterized by the presence of the field of architecture, engineering surveys, vast territories, low population density, as well technical testing and analysis (10.0%), pro- as differentiation of levels of development fessional, scientific and technical services of regions. Leading positions in the average (3.9%). In Astana, the biggest share in the republican production of the gross regional field of service is taken by the real estate product (hereinafter-GRP) per capita are (19,3%). In Astana, the services of parent occupied by Astana city, Almaty city, Atyrau companies are developed; advisory services region (in these regions, the excess of the on management issues (17.1%), rental ser- average republican production of GRP per vices (11.3%), as well as services in the field capita in 2016 was from 99% to 227.8 %). of architecture, engineering surveys, techni- The level of urbanization in Kazakhstan cal testing and analysis (6.1%), professional, is 57.3%, in the country there are 87 cities, scientific and technical services (5.2%). including 2 cities of national importance In general, the economic specialization (Astana, Almaty), 38 cities of regional signif- of the regions was formed under the influ- icance and 47 cities of regional importance. ence of objective factors: At the same time, there are traces of the existing natural and climatic conditions, transition of urbanization to a new stage, fol- availability of mineral deposits and labor lowing the growth of the largest cities into the resources. agglomeration (Astana, Almaty, Shymkent Regions of Kazakhstan are grouped and Aktyubinsk agglomerations). The cities into macroregions - regions that are similar of Astana and Almaty have the potential to in their economic, natural and socio-demo- grow into a modern type of metropolis or a graphic characteristics.
45 Report The Republic of Kazakhstan Section 5. Economic review of regions
Brief characteristics of regions
Macro-region Economic specialization Southern: Agriculture (labor-intensive sub-sectors), food industry; in Zhambyl, South-Kazakhstan, Kyzylorda region - oil production Kyzylorda, Almaty regions Northern: Kostanay, Akmola and North- Metallurgy (ore mining), agriculture (grain) economy Kazakhstan regions Western: Oil and gas extraction; in Aktobe region - also extraction of non- Atyrau, Mangistau, West- ferrous metal ores, agriculture Kazakhstan, Aktobe regions Central-Eastern: East Kazakhstan, Karaganda Metallurgy, Coal Industry, Electric Power Industry and Pavlodar regions
Astana: Astana city Administrative, business, financial and educational services
Business, financial and educational services; machine building; Almaty: Almaty city pharmaceuticals; agriculture and food industry
GRP of the regions of Kazakhstan
Source: Data of the Committee on Statistics of the Ministry of National Economy of the Republic of Kazakhstan
46 Report The Republic of Kazakhstan Section 5. Economic review of regions
Astana City
Astana is located in the northern part The city of Astana - the capital of the of Central Kazakhstan on the banks of Republic of Kazakhstan, is a political, the Yesil River. In the GRP structure, the business and cultural center of the largest shares account for trade (17.7%), Republic of Kazakhstan. real estate transactions (12.4%), construc- tion (11%), professional, scientific and technical activities (10.8%).
General information
Territory 0,8 thousand km2 Population 972.7 thousand people Density 1389.6 people GRP 4865.3 billion tg Volume of industrial products 454.4 billion tg Investments in fixed assets 581.6 billion tg
In Astana, there is the office of an inter- GDP, 11.1% of attracted investments, 14.2% national concern that unites the energy and of revenues to the state budget, 19.7% of petrochemical companies of “Shell”. housing, and 22% of the output of small and During the years of the formation of medium-sized businesses. the capital, there was a rapid growth of the The city of Astana is the core of the city’s economy. The socio-economic indica- Astana metropolitan area, which in the fu- tors characterizing the development of the ture will become a center of high technologies city testify to the current trend of dynamic and innovations on the basis of the autono- growth of the real sector of the economy, mous organization of education “Nazarbayev an increase in the inflow of investments into University”, medical cluster and special eco- the capital’s economy and the improvement nomic zone “Astana - a new city”. of social development indicators. In 2017 In Astana, the International Financial the international exhibition “EXPO-2017: Center “Astana” (hereinafter – IFCA) was Future Energy” was held in Astana. created - the core of the financial infrastruc- The share of the capital in the regional ture of Kazakhstan, the financial hub for the context accounts for 10.4% of the country’s entire Central Asian region. On the territory
47 Report The Republic of Kazakhstan Section 5. Economic review of regions of the IFCA, there is a special legal regime Oceanarium, Kazakhstan’s History based on English common law that regulates Museum, “Atameken” Center. the relationship between the participants of In Astana, in addition to Nazarbayev the IFCA and stakeholders aimed at devel- University, there is a number of universi- oping the financial market (capital market ties. Among them, the Eurasian National development, asset management, manage- University named after L.N. Gumilev, ment of well-being of wealthy individuals, Kazakh Agrotechnical University named Islamic finance, new financial technologies). after S. Seifullin, KAZGYU University, The city is developing a multimod- Astana Medical University, etc. al industrial and logistics center, the International cooperation with foreign city-forming basis of which will be the airport universities, scientific centers and other of international class, land freight terminal scientific organizations of the countries of and passenger terminal. the European Union, America and Oceania, The capital of Kazakhstan Astana is Asia and Africa, the CIS countries, inter- the leader of urban tourism. Every year in national scientific and educational funds, the city grow new objects. Tourists from embassies and missions in Kazakhstan is many countries of the world certainly want carried out. to visit Baiterek, President’s Palace,
Almaty City
The city is located in the south-east of structure, the largest share is accounted for the country, at the foot of the Zailiysky Alatau by the following sectors: trade (35.6%), real Mountains. The city was founded in 1854, estate transactions (11.8%), financial and and it was the capital of the Republic of insurance activities (8.6%), professional, Kazakhstan from 1929 till 1997. In the GRP scientific and technical activities (6.5% %).
General information
Territory 0.7 thousand km2 Population 1751.3 thousand people Density 2501.9 people GRP 10601.3 billion tg Volume of industrial products 772.1 billion tg Investments in fixed assets 858.7 billion tg
48 Report The Republic of Kazakhstan Section 5. Economic review of regions
Nowadays, the city of Almaty is the eco- agglomeration have a unique recreational nomic center of Kazakhstan with a high potential and tourist resources of world level of development of small and medium significance. businesses, a high level of GRP per capita (in Kok-tobe - a hill on the outskirts 2016 - 6 138.5 thousand tenge or 18 thousand of Almaty, is a favorite place for walks US dollars). Almaty is a financial, innovative, among the city’s residents. cultural and business center of the country. In Almaty there is the world-famous Almaty is a major logistics hub on high-mountain skating rink Medeo, locat- the route Western Europe - Western ed at a distance of 15 km from the city. A little China. The city provides about 20% of the above the high-mountainous Medeu skating country’s foreign trade turnover. Here the rink, on the ridge of the Zailiysky Alatau SEZ “Park of Innovative Technologies” there is a popular ski resort in Kazakhstan operates. There is also an industrial zone - Shymbulak. set up to provide state support to private In Almaty, there is the leading national entrepreneurship and the development of institution of the Republic of Kazakhstan priority industries: engineering, food, light, - KazNU named after al-Farabi. In the presti- pharmaceutical, chemical industries and the gious global rating “UI Green Metric Ranking production of building materials. of World Universities - 2017” KazNU partic- In order to provide telecommunications ipated for the first time and took a worthy services throughout Kazakhstan and the place in the group of the best. regions of Central Asia the head office of The city has a trade center of the largest Kcell and the headquarters of TeliaSonera international trading company in the world Eurasia are located in Almaty. The city METRO. of Almaty and the territory of the Almaty
Southern Macroregion
Zhambyl Region
The region is located in the south of the The chemical industry is the dominant republic. The center of the region is located in one among the branches of the processing the city of Taraz, which was founded in 1864. sector in the region, where its share is In the GRP structure, the largest share almost 40%. The share of the region in is accounted for by industry - 18%, transport the chemical industry of the Republic of and warehousing - 16%, trade - 12%. Kazakhstan is 32%.
49 Report The Republic of Kazakhstan Section 5. Economic review of regions
General information
Territory 144.3 thousand km2 Population 1115.3 thousand people Density 7.7 people GRP 1182.8 billion tg Volume of industrial products 341 billion tg Investments in fixed assets 216 billion tg
The main producer of chemical products In Taraz, there are many ancient in the region is Kazphosphate LLP, which mosques and other sacred places - the creates the entire value chain from mining Mausoleums “Aisha-Bibi” and “Babaji- and processing of ore, to the production of Khatun” (X-XII cc.), “Karakhan” and technical phosphates and mineral fertilizers, “Daudbek”, which allows travelers to feel as well as their delivery to the consumer and the atmosphere of past centuries. is one of the main exporters of chemical 5 cultural monuments located on the products to world markets. Great Silk Road are listed in the UNESCO Metallurgy is also one of the key indus- World Cultural Heritage List, namely the tries in the region. Aktobe, Ornek, Kulan, Kostobe, and the In the metallurgical industry, it is planned Akyrtas complex in the Zhambyl district. to create competitive production facilities, The main priority of tourism develop- expand the range of products, modernize ex- ment is the project “Ancient Taraz”, located isting enterprises in the industry. Production in the central part of the city on an area of of ferroalloys, gold and silver remains the about 20 hectares. most significant sectors of metallurgy.
South-Kazakhstan Region
The region is located in the southern The South-Kazakhstan region has part of the republic. The center of the region unique minerals and raw materials, labor is located in the city of Shymkent, founded in and recreational resources that make the XII century. up the potential of its unique competitive In the GRP structure, the largest share advantages. is accounted for by industry (25.0%), real The mining industry of the region is estate transactions (12.6%), trade (11.1%), represented by mining of metallic ores, non- transport and warehousing (10.5%). metallic minerals, salt and sodium chloride.
50 Report The Republic of Kazakhstan Section 5. Economic review of regions
General information
Territory 117.3 thousand km2 Population 2878.6 thousand people Density 24.5 people GRP 2789.2 billion tg Volume of industrial products 789 billion tg Investments in fixed assets 380.6 billion tg
The basis of the manufacturing indus- the picturesque valley of the Shaga River, try in the region is the production of food thermal springs near the regional center of products, the production of refined products, Ordabasinsky district, Temirlanovka village the metallurgical industry, the production of and near Mankent village, and also a curative other non-metallic mineral products and ma- climate for people with cardiovascular dis- chinery. One of the three oil refineries of the ease in the area of White Waters, Tyulkubas country - Shymkent “Petro-Kazakhstan” and aul Turar Ryskulov. Refinery - operates in the region. The mausoleum of Khoja Ahmed On the territory of the region there Yassawi in Turkestan (until the 16th century are natural resources that can be used for the city of Yassi) in Southern Kazakhstan is treatment and recreation. These include the a unique monument of the past of Kazakh mineral waters of the operating sanatorium people. The mausoleum of Khoja Ahmed Saryagash and mineral thermal waters, the Yassaui is a unique masterpiece of archi- wells of which are located 20 km to the south tecture dating back to the late 14th and of Kentau town, in the foothills of Karatau, in early 15th centuries.
Kyzylorda Region
The region is located in the southern part and largest cosmodrome is located. of the republic. The center of the region is lo- The Kyzylorda region possesses large re- cated in the city of Kyzylorda, which is located serves of oil, gas, uranium, vanadium (65% of on the river Syrdarya and was founded in 1820. Kazakhstan’s vanadium, 15.1% of zinc, 13.7% In the GRP structure, the largest shares of uranium, 9.6% of lead are in the region), there fall to industry (36.9%), transport and ware- are a number of other ore minerals (promising housing (16.2%), trade (7.6%). deposits of titanium , gold, copper ore). There On the territory of the region there is the are unique deposits of common salt, explored city of Baikonur, where the world’s first large deposits of high-quality glass sands.
51 Report The Republic of Kazakhstan Section 5. Economic review of regions
General information
Territory 226 thousand km2 Population 773.1 thousand people Density 3.4 people GRP 1308.3 billion tg Volume of industrial products 669.2 billion tg Investments in fixed assets 216 billion tg
The main prospects for the develop- the world market of natural uranium. The ment of metallurgy are associated with the development of uranium deposits is carried deep processing of metallurgical raw mate- out by Kyzylkum LLP, participants of which rials available in the region: ferrous metal- are JSC NAC Kazatomprom, a consortium lurgy - vanadium production and non-ferrous of Japanese energy companies (Toshiba metallurgy based on zinc and lead deposits. Corporation, TEPCO, Chubu Electric, In the region, the enterprises of LLP “HuaYu Tohoku Electric, Kyushu Electric and International” in Kyzylorda (production of Marubeni Corporation), and the Canadian chemical reagents for the oil industry) and Uranium One. LLP “SKZ-U” NAC “Kazatomprom” (produc- The area of interest is the Barsakelmes tion of the main reagent for the extraction of State Reserve, the Korkyt-Ata Memorial uranium-sulfuric acid) work stably. Complex, and the famous Aitbai Mosque. In 2009, Kazakhstan took the first The number of tourists wishing to visit place in uranium mining in the world and Kyzylorda region in recent years has signifi- continues to maintain a leading position in cantly increased.
Almaty Region
The Almaty region is characterized by the country in the production of sugar beets, the agrarian-industrial orientation of the soybeans, potatoes, meat, eggs and wool, economy. second place - in grapes and vegetables. The region’s agriculture produces 16.1% The region has a dominant position in the of the gross agricultural output in the repub- republican commodity production of tobacco lic. The region occupies a leading position in products, beverages, and grape wine.
52 Report The Republic of Kazakhstan Section 5. Economic review of regions
General information
Territory 223.5 thousand km2 Population 1983.5 thousand people Density 8.9 people GRP 2190.0 billion tg Volume of industrial products 681.9 billion tg Investments in fixed assets 528.9 billion tg
Six industrial zones are formed in the The region has half of the hydro region: “Taldykorgan”, “Arna” in Kapshagai, resources of Kazakhstan in the form of “Boraldai” and “Bereke” in the Ili region, mountain rivers, where it is possible to build “Kazbek bey” in the Zhambyl district, “Kairat” hydroelectric power stations. There is a sig- in the Talgar district. It is planned to locate nificant potential forwind energy, especially enterprises for the production of innova- in the area of the Dzungar Gate and Shelek tive, high-tech and environmentally friendly corridor. products. In the Almaty region, 7 companies were On the basis of a gypsum board plant in certified in the agricultural organic pro- the village of Zarechny, Almaty region, with duction sector for the cultivation of various the participation of one of the world leaders crops. Also, there is an enterprise “Asia in the production of construction and finishing Gold” LLP, certified for processing, storage, materials of the German company “Knauf”, transportation and other operations with or- the “Knauf Gypsum Kapchagai” was cre- ganic products. ated. Today “Knauf Gypsum Kapchagai” is The tourist potential of the region is the largest producer of gypsum boards in the characterized by the presence of natural Central Asia region. and recreational resources (landscapes The modern tobacco factory, was of Zailiysky and Dzhungar Alatau, lakes opened by “Philipp Morris International” Alakol, Balkhash, Kapshagai reservoir, in 2000 in the village of Otigen Batyr of the mountain lakes, the river Ile, as well as Ili district of the Almaty region, it is one of the unique flora and fauna and cultural-historical largest enterprises in Kazakhstan. (kurgan) complexes and rock paintings).
53 Report The Republic of Kazakhstan Section 5. Economic review of regions
Northern Macroregion
Kostanay Region
The region is located in the northern part In the GRP structure, the largest share of the republic. The center of the region is lo- is accounted for by industry - 23%, trade - cated in the city of Kostanay, founded in 1879. 17%, transport and warehousing - 13%.
General information
Territory 196 thousand km2 Population 879.1 thousand people Density 4.5 people GRP 1522.3 billion tg Volume of industrial products 599.4 billion tg Investments in fixed assets 178.5 billion tg
In Kostanay region, over 90% of the re- transportation and other operations with or- public’s iron ore production, 100% of iron ore ganic products. pellets and asbestos are produced, lignite, One of the most interesting sights of coal, building sands, clay, crushed stone, the Kostanay region is the Naurzum State gold ore, etc are mined. Nature Reserve, which is the object of Agriculture - the second leading indus- UNESCO. try in the production structure of the region. The diversity and richness of untouched In a total republican grain harvest Kostanay wilderness allows developing the ecological region ranks the 3rd place. Kostanay re- tourism of the region. gion is also a region with developed live- In the region, there is a group of auto- stock production, which gives 6.0% of the mobile companies “Allur Auto” working. gross agricultural output of the Republic of Today, a group of automotive companies is Kazakhstan. the manufacturer and official distributor of 22 companies are certified in the field SsangYong Motor, Chance, Iveco, Suzuki of agricultural organic production for cul- Motor Corporation, Mitsubishi Motor tivation of various crops. There are also 14 Corporation. The branches of AllurAuto are enterprises certified for processing, storage, also located in Almaty, Astana, Kyzylorda.
54 Report The Republic of Kazakhstan Section 5. Economic review of regions
Akmola Region
The region is located in the northern part Prospective deposits for development of the republic, the center of the region is locat- are the development of gold-bearing ore ed in the city of Kokshetau, founded in 1824. mining. In the structure of GRP, the largest share Sufficient are the balance reserves is accounted for by industry - 25%, agricul- of the Vasilkovskoye gold deposit, prom- ture, forestry and fisheries - 15%, trade - 14%. ising places - Aksu, Bestobe, Zholymbet, Akmola region is an agrarian-industri- Quartzite slides. al region.
General information
Territory 146.2 thousand km2 Population 734.4 thousand people Density 5.0 people GRP 1344.3 billion tg Volume of industrial products 455.6 billion tg Investments in fixed assets 223 billion tg
Vasilkovskoye gold deposit is the created on the basis of mountain pine largest gold deposit in Kazakhstan, with re- forests. There are many nature reserves serves of about 360 tons. The mine belongs in the region, such as the Kurgalzhinsky to the Kazakh-Swiss company KAZZINC National Park, Erementau, Atbasar, (Glencore is a Swiss trading company that Borovskoye and Zerendinskoye hunting owns 70% of the shares in the Kazakh-Swiss grounds. holding company KAZZINC). The natural gem in the region is the The development of uranium mining Borovoe resort - an amazing and attractive and processing, which is an export-oriented edge of pristine nature with magnificent for- product, is associated with the promising ests and therapeutic lakes, with fir-needle Zvezdnoe and Deep deposits. saturated air, and rare in beauty and unique- A large recreational area, including ness landscapes. a sanatorium health resort complex was
55 Report The Republic of Kazakhstan Section 5. Economic review of regions
North-Kazakhstan Region
The region is located in the northern 11% of the country’s agricultural output, a part of the republic. The center of the region quarter of Kazakhstan’s wheat, highly val- is located in the city of Petropavlovsk, found- ued in the world market. ed in 1752. The region has a strong position on In the structure of GRP, the largest the prospective development of livestock, share belongs to the agriculture, forestry including meat with a high export potential. and fisheries sector (23.9%), trade (15.9%), In the region, the company “Ak Nan industry (13.5%). Sever” LLP has been certified for process- The North-Kazakhstan region is an ing, storage, transportation and other oper- agrarian-industrial region, occupying only ations with organic products in the village of 3.6% of the territory. The region produces Novoishimskoye.
General information
Territory 98 thousand km2 Population 563.3 thousand people Density 5.7 people GRP 918.2 billion tg Volume of industrial products 198 billion tg Investments in fixed assets 167.1 billion tg
Machinery is one of the main industries The uniqueness of the North- in the region. The machine-building industry Kazakhstan region is in the opportunity is represented by 30 enterprises that are to offer a variety of recreation: historical manufacturing and 26 enterprises that pro- cognitive, ecological, agritourism, hunting, vide services for repair and installation of fishing. machinery and equipment operating in the In 2015, a panthelic clinic was opened districts of the region. The territory of the in the region of Aiyrtausky district, with region is part of the North Kazakhstan ura- its maral farm. There, for medical purposes nium-ore, diamondiferous and tin-rare metal only natural, high-quality and environmen- province. tally friendly raw materials are used.
56 Report The Republic of Kazakhstan Section 5. Economic review of regions
Western Macroregion
Atyrau Region
The region is situated in the west of the “Exxon Mobil”, integrated energy com- republic. The center of the region is located pany “Chevron Overseas”, LLP “Yer Sai in the city of Atyrau, founded in 1640. Caspian Contractor” is a joint Kazakh-Italian In the structure of GRP, industry enterprise founded by LLP “ERC Holding” accounts for the largest share - 49%, pro- and Saipem International BV (ENI Group fessional, scientific and technical activities Company). - 12%, construction - 9%. The French company Total E&P The basis of the economy of the Atyrau Kazakhstan owns 16.81% of direct share region is the oil and gas production indus- participation in the Production Sharing try, the chemical industry, the production Agreement for the northern part of the of machine-building products, construc- Caspian Sea, which covers Kashagan and tion materials, the agro-industrial and other fields. fishery industries. In Atyrau, there is the office of the Large companies are working on the international concern, uniting the energy territory of the region for the extraction and petrochemical companies “Shell”. The of crude oil and gas at the Tengiz field. company takes part in the development of They are JSC NC “KazMunayGas”, one the field of production in the North Caspian of the largest corporations in the world including Kashagan.
General information
Territory 118.6 thousand km2 Population 607.5 thousand people Density 5 people GRP 5200.7 billion tg Volume of industrial products 4495 billion tg Investments in fixed assets 2036.8 billion tg
The region has sufficient potential for the The region has unique deposits of development of mechanical engineering, there various minerals and building materials. are opportunities to produce equipment and In the region there is a powerful raw ma- provide services for the oil and gas industry. terial base for the production of boron
57 Report The Republic of Kazakhstan Section 5. Economic review of regions products, potassium sulfate, magnesium Many finds from the Cretaceous Mountains sulfate, edible salt and other chemical of Zhylyoi occupy a worthy place in the ex- compounds. position of the only paleontological museum The oil region has a high potential for of the Mesozoic period in Kazakhstan. This tourism development. This is the plateau of museum is located in the regional center. Aktolagai and Akkergeshen in Zhylyoi re- There are places in the region for lovers of gion, where the fossilized remains of the old- hunting and fishing. For lovers of eco-tour- est forms of mollusks, invertebrates, reptiles ism, there is the “Akzhayik” reserve, which and shark teeth lie literally under their feet. can be reached by quadrocycles.
Mangistau Region
The region is located in the south-western the Caspian Sea and was founded in 1963. part of the republic. The center of the region is In the GRP structure, the largest share located in the city of Aktau, which is a port on is accounted for by industry (48.6%).
General information
Territory 165.6 thousand km2 Population 642.8 thousand people Density 3.7 people GRP 2463.4 billion tg Volume of industrial products 1887.6 billion tg Investments in fixed assets 405.6 billion tg
Mangistau region is an industrial The region has a powerful transit, region, where 25% of Kazakhstan’s oil is transport-logistics and infrastructure-service mined. Most of the deposits are concen- potential of international importance as a trated in the area of Zhanaozen and on the border region of the Republic of Kazakhstan, Buzachi peninsula. emerging into the multinational system of the More than 60 oil and gas deposits Caspian region. Two international transport have been discovered on the territory of the corridors of TRACECA and “North-South” Mangistau region. The manufacturing in- linking Eastern Europe with Central Asia dustry is represented by metallurgy and the and Northern Europe with the countries of production of finished metal products, me- the Persian Gulf pass through the territory chanical engineering and chemical industry. of the region.
58 Report The Republic of Kazakhstan Section 5. Economic review of regions
An important role in creating a favorable the Caspian region and further to Europe. business environment and investment cli- The car ferry terminal of the port of Kuryk mate is provided by the activities of the Free was also launched. Economic Zone “Aktau Sea Port”. The cargoes that are using transpass- Port Kuryk is a key link of the Trans- ing Caspian route from China via Kuryk to Caspian Transport Corridor. Azerbaijan, Georgia and Turkey - exits to the The construction of the ferry complex Black Sea ports, will pass through Kuryk. in the port of Kuryk allows ensuring the Mangistau region can attract tourists transshipment of cargoes, without unloading with dozens of underground mosques cut them from the wagons, to the countries of down in rock massifs.
West-Kazakhstan Region
The region is located in the western in 1613. In the structure of GRP, industry part of the republic. The center of the region accounts for the largest share - 50%, trade - is located in the city of Uralsk, which is lo- 9%, transport and warehousing - 7%. cated on the river Zhayik and was founded
General information
Territory 151.3 thousand km2 Population 641.5 thousand people Density 4.2 thousand km2 GRP KZT 5200.7 billion Volume of industrial products KZT 4495 billion Investments in fixed assets KZT 401.6 billion
The West Kazakhstan region special- One of the world’s largest oil and gas izes in the oil and gas industry, machine bearing land areas - Karachaganak, is building, food industry, construction located near the city of Aksai. Reserves of industry, grain economy and livestock. the deposit are 1.35 trillion cubic meters The region is rich in deposits of gas and gas of gas and 1.2 billion tons of oil and gas condensate, oil, borate ores, oil shale, po- condensate. tassium-magnesium salts, calcareous rocks, Karachaganak oil and gas conden- cement raw materials, chalk, keramzite sate field on the terms of the production clays, construction and alluvial sand. sharing agreement develops international
59 Report The Republic of Kazakhstan Section 5. Economic review of regions consortium with British Gas and Eni Uralsk has a dozen of the most inter- (32.5% each), Chevron Texaco (20%) and esting monuments of history and culture, Lukoil (15%) which are an invaluable asset for future The region is one of the four regions generations, and are of undoubted interest of Kazakhstan, which specializes in the to anyone, who has any interest in history production of oil refining products. at all. The house-museum of E.Pugachev, Enterprises of the machine-building complex Michael-Archangel Cathedral, built in produce products in such priority areas as 1751, the Cathedral of Christ the Savior, oil and gas, agricultural, power engineering, the building of a real military school are situ- shipbuilding, instrument making. ated in the region.
Aktobe Region
The region is located in the north-western in transportation of petroleum products, part of the republic. The center of the region is chemical industry, machine building equip- located in the city of Aktobe, founded in 1869. ment for the oil and gas industry; In the structure of GRP, industry ac- • in machine building, Aktobe Oil counts for the largest share - 36%, trade - Equipment Plant JSC supplies oilfield equip- 18%, transport and warehousing - 9%. ment to oil refining regions: South Kazakhstan The economic potential of the Aktobe region: region, Pavlodar region, Mangistau region, • high potential for creation of a petro- West Kazakhstan region. chemical cluster, prospects for cooperation
General information
Territory 151.3 thousand km2 Population 641.5 thousand people Density 4.2 people GRP KZT 5200.7 billion Volume of industrial products KZT 4495 billion Investments in fixed assets KZT 374 billion
Aktyubrentgen JSC supplies medical carried out: Aktobe Non-Metallic Piping equipment to all regions of the country. Plant JSC - pipe products, Stroydetal LLP In the production of other non-metallic - concrete constructions, brickworks for the mineral products, the following activities are production of silicate and ceramic bricks,
60 Report The Republic of Kazakhstan Section 5. Economic review of regions blocks of cellular concrete, whose products The meteorite crater “Zhamanshin” are supplied both to neighboring regions and is a shock crater in the Irgiz district of the to other regions of the country. Aktobe region. According to the most widely In the field, the enterprise GEOM LLP accepted hypothesis, it was formed as a re- has been certified for processing, storage, sult of the meteorite falling to Earth. The size transportation and other operations with of the inner ring of the crater is about 7×7 km. organic products. Based on the results of radioisotope The Aktobe region is a unique tourist site. analysis, the crater is about 1 million years On the border with the Atyrau region old (according to other estimates, up to 53 Cretaceous plateau “Aktolagai South” is million years). located - geomorphological object of the The conservation park “Orkash” is the state reserve fund, which is of national and kingdom of eagles, the habitat of 9 species of international significance. In some places, birds of prey: a black kite, an ordinary long- nature has created whole chalk labyrinths of legged buzzard, a buzzard, a steppe eagle, an sheer walls, columns, niches, ledges, terrac- imperial eagle, a swamp harrier, a steppe har- es, landslide amphitheaters. rier, a meadow harrier and an ordinary kestrel.
Central-Eastern Macroregion
East Kazakhstan Region
The region is located in the northern The largest metallurgical company part of the republic. The center of the region Arcelor Mittal owns Lisakovsk ore mining is located in the city of Ust-Kamenogorsk, and processing enterprise, iron-manganese founded in 1720. mines and auxiliary enterprises. In the structure of GRP, industry ac- Since 2014, Polymetal (RF) has counts for the largest share (34%), trade launched a new project in Kazakhstan - (12.2%), agriculture (8.6%), transport and “Kyzyl”, located in the East Kazakhstan warehousing (8.2%). region and uniting the resources of the fields East Kazakhstan region is one of the Bakyrchik and Bolshevik. The development industrialized regions of Kazakhstan. of the gold ore project “Kyzyl” will be invest- In the region, large manufacturing enter- ed about 500 million US dollars. prises are concentrated: non-ferrous met- allurgy, machine building, construction industry, woodworking industry.
61 Report The Republic of Kazakhstan Section 5. Economic review of regions
General information
Territory 283.2 thousand km2 Population 1389.6 thousand people Density 4.9 people GRP KZT 2793.9 billion Volume of industrial products KZT 1506.6 billion Investments in fixed assets KZT 436.8 billion
Enterprises of the industry produce East Kazakhstan region is characterized by basic noble and non-ferrous metals: lead, a developed production infrastructure, which zinc, copper, refined gold and silver, as well is represented by all major modes of trans- as titanium, magnesium, tantalum, fuel for port: rail, air, water and road. nuclear power plants. The territory of Kazakhstan Altai due to The region has a factory for the produc- its unique landscape and biological diversity tion of buses of Daewoo Bus Kazakhstan is included in two hundred priority global eco- LLP. logical regions, defined by the International AZIA AVTO JSC is the current manu- Organization WWF Living Planet. facturer of passenger cars in Kazakhstan. The main tourist destinations are Among the partners of the plant are the Belukha Mountain, Austrian Road, Alakol world’s leading concerns: Volkswagen Lake and Markakol, Katon-Karagai nature Group, General Motors, Renault-Nissan- park; Bukhtarma reservoir, Kiin-Kerish AvtoVAZ and KIA Motors. canyon, the Akbaur nature-historical The region has a great tourist poten- monument, the memorial complex of tial. The territory of the region includes the Abai Kunanbayev house-museum in Markakol and West-Altai conservation Zhidebay-Boril, the mausoleums of Kozy parks, Katon-Karagai nature park, the Korpesh-Bayan Sulu, Enlik-Kebek, the natural forest reserve “Semey-Ormany”. monument of Yyrgyzbay-ata.
Karaganda Region
The region is located in the central part of - 14%, transport and warehousing - 9%. the republic. The center of the region is locat- Karaganda region is the largest indus- ed in the city of Karaganda, founded in 1934. trial center of the country. In the structure of GRP, industry ac- The largest enterprise of the metallurgi- counts for the largest share - 45%, trade cal industry of Kazakhstan, Arcelor Mittal
62 Report The Republic of Kazakhstan Section 5. Economic review of regions
Temirtau JSC produces 100% of cast iron Corporation Kazakhmys LLP produces and finished rolled products of ferrous met- refined copper grade MOOK - 99.99%. On als and about 90% of the republic’s steel. At the basis of the metallurgical industry, the Zhezkazgan and Balkhash copper smelters, chemical industry is developed in the region.
General information
Territory 428 thousand km2 Population 1382.7 thousand people Density 3.2 people GRP KZT 3712 billion Volume of industrial products KZT 1947.7 billion Investments in fixed assets KZT 317.6 billion
The basic industries account for 89.2% mausoleums of Zhoshi Khan, Alash Khan, of industrial production. the monuments of the Paleolithic and The industry is represented by the min- Neolithic epoch, the branch of the Great ing and metallurgical complex, the food, Silk Way- the so-called “Sarysu”, Karlag pharmaceutical and chemical industries and many others. have been developed, the consumer Karaganda has one of the leading goods industry and the construction ma- universities in Kazakhstan - Karaganda terials industry have been formed. State Technical University. KSTU has the The mineral and raw materials base only “Kazakhstan Institute of Welding” in of the region is rich in copper and tung- Kazakhstan, whose goal is to train inter- sten reserves, as well as large deposits of national specialists and transfer modern coal, lead, zinc, iron, manganese, and rare welding technologies in the oil and gas metals. industry. The Karaganda region has potential for The particular proud is the fact that the tourism development: basis of higher engineering education at the richness of nature, flora and fauna the University was received by the Head of - Karkaraly lakes, forests and moun- State N.A. Nazarbayev. tains, Lake Balkhash, Ulytau district, The shopping center of the largest sanitary institutions, hunting; unique ar- international trading company in the world chitectural and historical monuments - the METRO operates in the regional center.
63 Report The Republic of Kazakhstan Section 5. Economic review of regions
Pavlodar Region
The region is located in the north-east- In the structure of GRP, industry ern part of the republic. The center of the accounts for the largest share - 37.9%, region is located in the city of Pavlodar, transport and warehousing - 14.7%, trade founded in 1861. - 10.3%.
General information
Territory 124.8 thousand km2 Population 757 thousand people Density 6.1 people GRP KZT 1975.5 billion Volume of industrial products KZT 1370.4 billion Investments in fixed assets KZT 439.8 billion
The economy of the region is rather di- 70% of the republican coal production, 3/4 versified. The Pavlodar region occupies the of the republic’s ferroalloys production, and main share in the republican volume of coal about 40% of the republican production of production (59.5%), ferroalloys (73.1%), electricity and oil products. raw aluminum (99.8%), aluminum oxide The territory of the region includes the (99.8%), electric energy (38.0%). largest coal deposit in Kazakhstan - the The region is characterized by favor- Ekibastuz coal basin. Under the share- able location and development of com- holders’ agreement, the management of munication with other states and regions the coal basin is located at the joint venture of Kazakhstan along the South-Siberian of Kazakhstan’s Samruk-Energo JSC and and Central Siberian railroads, automo- Russian RUSAL (the world’s largest alumi- bile, aviation, electronic, pipeline and river num producer). transport. Bayan-Aul is a favorite place for On the territory of the Pavlodar region tourists, located near the town of the a diversified industrial complex has same name of the Bayanaul district of been developed. The industrial potential the Pavlodar region, 210 km from the city of the region is determined by large ex- of Pavlodar and 135 km from Ekibastuz. port-oriented industrial companies. They The territory of Bayanaul nature park produce coal, electricity, heat, alumina, locate a picturesque freshwater lake ferroalloys. The region accounts about Sabyndykol, with a total area of 7.4
64 Report The Republic of Kazakhstan Section 5. Economic review of regions square km. and Lake Zhassybai, the In general, all regions of Kazakhstan area of which is 4 square km. have their own economic and natural In addition, the shopping center of the features that ensure balanced economic international trading company METRO op- growth of the regions. erates in the center of the Pavlodar region.
65 Report The Republic of Kazakhstan Section 6. Investment attractiveness of Kazakhstan
SECTION 6. INVESTMENT ATTRACTIVENESS OF KAZAKHSTAN
Since 1991, targeted state policy has all direct foreign investment, other sectors, allowed Kazakhstan to attract more than namely, manufacturing and trade, account $ 280 billion gross foreign direct invest- for a significant share of them - 18% and ment (hereinafter - FDI). And only since 10%, respectively, which indicates an in- 2005, 259.2 billion US dollars of gross crease in the diversification of investment foreign direct investments were attracted flows. to Kazakhstan. The main reason for such Historically, the bulk of foreign invest- a rapid growth in FDI since the mid-2000s ment has been attracted to the mining indus- was that in 2002 Kazakhstan became the try. This is an average of 60%. It should be first CIS country to receive an investment noted that since 2010, during the implemen- credit rating from S&P (BBB-). tation of the Industrialization Program, the As a result, the country has received share of foreign investment in processing multiple benefits in the form of transfer of has grown 1.5 times (from 9% to 15%). modern technologies, increasing the level A large part of the sector of professional of employment in industry and diversification and scientific and technical activities is occu- of economic ties. Although the raw materi- pied by geological exploration, interest in this als sector accounts for almost a quarter of sector is also high among foreign investors.
The structure of FDI in terms of activities in 2016
Source: The National Bank of the Republic of Kazakhstan
66 Report The Republic of Kazakhstan Section 6. Investment attractiveness of Kazakhstan
Currently, the creation of favorable investment preferences is being expanded. conditions for investors is one of the main Investors implementing investment projects objectives of the country’s investment pol- in priority sectors of the economy are guar- icy. Thus, the Government of the Republic anteed stability of tax legislation. Modern tax of Kazakhstan is carrying out purposeful code of the Republic of Kazakhstan is one of work to improve the country’s investment the most complete and corresponding to the climate and create favorable conditions for western standards. investors. The state policy on improving the invest- The country continues to be attractive ment climate is positively assessed at the for investments focused on access to rich international level. natural resources, as well as for companies State programs implemented by the interested in a growing domestic market. state also play an important role in expand- At the same time, an urgent challenge for ing the flow of investments. Kazakhstan is to attract more export-ori- Firstly, the Entrepreneurship Code of ented investments aimed at increasing effi- the Republic of Kazakhstan establishes ciency. In 2017, the republic presented the regulations that guarantee the safety and National Investment Strategy, designed security of investments of both domestic and to respond to this challenge and open new foreign investors. opportunities for investors. In particular, the security and safety In addition, in 2017, the Government of investments is expressed by the state’s of the Republic of Kazakhstan established obligations to ensure the protection of inves- a National Company to attract investments tors ‘rights when investing in the Republic to the Republic of Kazakhstan - NC Kazakh of Kazakhstan, using revenues, resolving Invest JSC. Kazakh Invest plays the role of investment disputes and providing state a single negotiator representing the inter- support for investors’ investment activities ests of the Government of the Republic of by providing investment preferences. Kazakhstan in discussing the prospects and In addition to these measures, in ac- conditions for implementation of investment cordance with the Entrepreneurial Code, projects. The company has a network of stability is guaranteed when the tax legisla- its representatives abroad, in particular in tion of the Republic of Kazakhstan and the Washington, Chicago, Istanbul, Ankara, legislation on employment of the population Beijing, London, Frankfurt am Main and in the sphere of attracting foreign labor are Paris for targeted work with investors. changed. Nowadays, Kazakhstan has created a Since January 1, 2017, one of the pref- favorable investment climate: a simplified erences presented to investors implement- tax regime operates, national legislation is ing investment projects is the exemption of constantly being improved, and a package of imports from value added tax for imports.
67 Report The Republic of Kazakhstan Section 6. Investment attractiveness of Kazakhstan
Secondly, within the framework of im- of Kazakhstan, the Investor Service Sector proving the international legal framework for in the Public Service Centers are open, investment, Kazakhstan signed 47 bilateral where investors can obtain all necessary and 1 multilateral (EurAsEC) Agreements on information and permits (public services). the promotion and protection of investments. This mechanism is aimed at minimizing the These Agreements create favorable participation of investors in collection and legal conditions for the promotion and pro- preparation of documents and limiting their tection of Kazakh investments abroad and direct contact with state bodies. foreign investment at the territory of our Fourthly, within the Strategy country. “Kazakhstan - 2050” the Head of the State The provisions of these Agreements are has set a long-term goal for Kazakhstan to aimed at ensuring the full protection and se- enter the 30 most developed countries in curity of the invested mutual investments, as the world. A great pride and achievement of well as the safety of investors’ investments Kazakhstan in 2016 was joining the OECD by providing appropriate guarantees. Investment Committee. Thirdly, the Council of Foreign Investors In recent years, the Government has under the President of the Republic of undertaken a number of qualitatively new Kazakhstan, and the Council for Improving initiatives to attract investments in non-pri- the Investment Climate under the Prime mary sectors of the economy. For example, Minister of the Republic of Kazakhstan have several special free enterprise zones with been established and are working efficiently. preferential taxation have been established These dialog platforms are designed to solve in various regions of the country. More and promptly the problematic issues of investors more foreign investors take advantage of arising in the course of investment activity in these zones. Kazakhstan. In addition, as part of the implementa- In order to protect the rights and le- tion of investment attraction tasks, it should gitimate interests of investors engaged be mentioned that in 2015, the Government in investment activities in the Republic of Council on Investment Promotion Kazakhstan, the Institute of the Investment (Investment Headquarters) was established. Ombudsman has been established. This The work of this council is divided into three institution serves as a platform for interac- main areas - attracting investments in pub- tion between investors and the state to solve lic-private partnership projects and privat- current problems of investors in extrajudicial ization objects, improving the investment cli- and prejudicial order. mate and attracting foreign direct investment Additionally, in order to provide services from transnational companies. and permits, investors actively operate a The work on the third direction is already “one-stop shop” for investors, in all regions bearing fruit. Today, more than 29 TNCs from
68 Report The Republic of Kazakhstan Section 6. Investment attractiveness of Kazakhstan the Global 2000 list are involved. Among There is a number of projects in the them are General Electric, Toyota Motor, manufacturing sector, implemented in Chevron, Total, Airbus Group, Hyundai partnership with the Chinese side. To date, Motor, Sanofi, Rio Tinto, Danone, Kia this list includes 51 projects for a total of $ Motors, HeidelbergCement, Alstom, Metro 26.2 billion implemented in the regions of Group, Solvay, LG Electronics, Peugeot, Kazakhstan in such sectors as chemical Cameco and others. industry, mining and metallurgical plant, The Investment Headquarters site is agro-industrial complex, engineering, focused exclusively on the business result, construction materials, information and thereby allowing to increase investment communication technologies, transport and volumes, increasing the attractiveness of logistics, renewable energy and electricity. the country as a recipient of foreign direct Successful implementation of these projects investment. will open a number of high-tech enterprises Similar Councils have been established with creation of more than 15,000 jobs and in all regions under the akims’ leadership, production of final export-oriented products to address investors’ issues at the local with high added value. level. All these facts confirm that even in Kazakhstan has been a full member of the era of global financial instability, the the WTO since 2015, which will give an ad- investment climate in Kazakhstan and the ditional impetus to the country’s investment macroeconomic situation in the country re- attractiveness. main stable and inspire confidence among The main investors in the economy of investors. Kazakhstan are the EU countries and the In general, the positive dynamics of United States. economic growth, the improvement of the Over the years of Kazakhstan’s inde- balance of payments and the build-up of pendence, the European Union has become production capacities ensured in 2017 con- the leading trade and investment partner of firmation of the level of investment reliability Kazakhstan, ahead of Russia and China. of Kazakhstan by international rating agen- Europe accounts for half of the foreign trade cies and allowed to improve the forecast turnover and more than 50% of all FDI in the from “negative” to “stable”. economy of our country. These results, according to foreign In the structure of FDI among Asian experts, are achieved due to a verified and countries, the bulk is accounted for by strategically sound internal and foreign poli- China, which launched the initiative “One cy of the country’s leadership. Belt - One Way” to create joint projects of Thus, work to improve the investment the “Economic belt of the Silk Road” and the climate and legislation does not stop at the “Silk Road of the XXI century”. measures achieved and is constantly being
69 Report The Republic of Kazakhstan Section 6. Investment attractiveness of Kazakhstan improved. Kazakhstan will continue to sup- business and the reduction of barriers to the port the policy of improving the investment development of entrepreneurship. Thus, this business climate to ensure the most com- year it is planned to reduce 25 spheres of petitive conditions in order to increase the control out of 114 and 3 areas of supervi- investment attractiveness of the country. sion out of 18, reduce the total number of All large-scale measures taken within inspections by 30% and reduce the amount the framework of improving the investment of reporting provided by business to state climate are being introduced to create bodies by 30%. comfortable conditions for investors and for The investment policy will be aimed at the formation of Kazakhstan as a regional maximizing the attraction of private invest- investment hub. ment and restoring the role of the banking In 2018, in order to ensure a favorable sector in financing the economy. To this end, business environment and create a strong the work will be continued to improve the middle class of entrepreneurs, a new pack- investment climate to the level of the OECD age of systemic measures to improve radi- countries. cally the business climate will be prepared, The government seeks to align its in- especially at the regional level, to bring the vestment and economic policies with inter- business out of the shadow through simpli- national best practices and improve continu- fication of tax and other administration. At ously the investment climate in Kazakhstan, the legislative level, there is an improvement so, the country could offer competitive and in the conditions for the legal regulation of attractive conditions for foreign investors.
70 Report The Republic of Kazakhstan Section 7. Entrepreneurial development
SECTION 7. ENTREPRENEURIAL DEVELOPMENT
The Government of Kazakhstan is car- have been taken to improve the business rying out systemic reforms to create com- environment and reduce administrative fortable conditions for doing business. So, pressure on business. in recent years, unprecedented measures
Legislative regulation
For 2006-2016, a solid legal foundation Based on the practice of OECD coun- for regulating entrepreneurial activities has tries, Kazakhstan has created a separate been created, which was aimed at a gradual structure in the name of the National reduction of administrative barriers, improv- Chamber of Entrepreneurs of the Republic ing legislation, and improving the business of Kazakhstan “Atameken”, whose activi- climate in the country. Regulatory policy in ties are aimed at comprehensive protec- the current conditions is based on observing tion of business rights and interests. the balance of interests of the state, business and the population.
The state of small and medium-sized enterprises
Thanks to the implemented measures, people, SMEs produced products worth small and medium-sized enterprises (here- KZT 10.5 trillion. inafter SMEs) in our country have become As of January 1, 2017, the number of mass and relatively dynamic, as evidenced operating SMEs is 1,106 thousand units, by official statistics. Currently, the share which is 2.2 times more than in 2005. of small and medium-sized enterprises in Kazakhstan’s GDP is 26.8%, the number of employees in this sector is 3 183 thousand
71 Report The Republic of Kazakhstan Section 7. Entrepreneurial development
The dynamics of the number of operating SME entities for 2005-2016
* In accordance with international practice, in order to apply uniform approaches to the formation of indicators on the number of SMEs and to eliminate discrepancies with the data of the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan, starting from February 1, 2015, an indicator is published of the number of “acting”, instead of “active” entities. ** Actualized data for 2016 according to the “Methodology for updating the Statistical Business Register”, approved on June 24, 2015, No.96.CS MNE RK. Source: Committee on Statistics of the Ministry of National Economy of the Republic of Kazakhstan
In the structure of SMEs, there is a country chooses the form of IE organization significant quantitative superiority of indi- due to favorable conditions for doing busi- vidual entrepreneurs (hereinafter referred ness. The opening of a limited liability part- to as IE) over legal entities, as well as the nership (hereinafter referred to as LLP) as superiority of small-sized enterprises over compared to an IE is a more complicated medium-sized enterprises. This is related procedure, in addition, the costs of opening to many factors, including taxation, the a legal entity exceed the cost of registering number of procedures for registration, etc. IE more than 6 times. The biggest part of the entrepreneurs of the
72 Report The Republic of Kazakhstan Section 7. Entrepreneurial development
The structure of the small and medium-sized enterprises as of May 1, 2017
Source: Committee on Statistics of the Ministry of National Economy of the Republic of Kazakhstan
According to preliminary statistics, in GDP was 26.8%, showing an increase of 2016 the share of SMEs’ contribution to 16.3% compared to 2005.
The dynamics of the share of the GVA of small and medium-sized enterprises in GRP, in %
* According to the Entrepreneurial Code of the Republic of Kazakhstan dated October 29, 2015 No.375-V for the purposes of state statistics, the use of the criterion of referring to small and medium-sized enterprises is carried out only by the average annual number of employees. ** Preliminary data for 2016. Source: Committee on Statistics of the Ministry of National Economy of the Republic of Kazakhstan
73 Report The Republic of Kazakhstan Section 7. Entrepreneurial development
At the same time, employment in SMEs increased by 7 percentage points SMEs increases every year. Thus, the compared to 2005, and currently accounts share of the population employed in the 3,166,792 people.
Employment in small and medium-sized enterprises
According to the Entrepreneurial Code of the Republic of Kazakhstan dated October 29, 2015 No.375-V for the purposes of state statistics, the use of the criterion of referring to small and medium-sized enterprises is carried out only by the average annual number of employees. ** Preliminary data for 2016. Source: Committee on Statistics of the Ministry of National Economy of the Republic of Kazakhstan
Positions in international rankings
The result of the ongoing reforms Switzerland) and others, the promotion of and economic transformations are not the Republic of Kazakhstan on the path of only official statistics, but also strong reforms that improve the business climate enough positions of Kazakhstan in the in the country and contribute to attracting world ratings on assessing the business both domestic and foreign investment, is environment. According to the estimates steady and obvious. of such leading international organizations The report “Doing Business 2017: mea- as the World Bank, the European Institute surement of quality of regulation and efficien- of Management Development (IMD, cy” presents the results of an assessment
74 Report The Republic of Kazakhstan Section 7. Entrepreneurial development of the quality of the business environment. In general, following the results of According to the World Bank’s “Doing 2017, World Bank experts took into account Business 2018” rating published in 2017, the following reforms of the Government of Kazakhstan ranked 36th, rising its rating by the Republic of Kazakhstan: 28 points compared to 2008. Kazakhstan Regarding the indicator “Registration took a position in the neighborhood with of ownership”, Kazakhstan facilitated the such countries as Switzerland (33), Japan transfer of property through improved (34), Russia (35), and Belarus (38). transparency and dispute resolution mech- Out of the 10 basic indicators of the anisms in the land resources management Doing Business rating, Kazakhstan improved system. its positions by 5 indicators. Thus, the country Regarding the indicator “Protection of showed a significant growth in the indicators minority investors”, Kazakhstan strength- “Opening of enterprises” (+9 points), “Joining ened the protection of minority investors the electric grids” (+5 points), “Protection of by increasing shareholder rights and role minority investors” (+2 points), “Registration in making major corporate decisions, spec- of property” (+1 point), “Taxation” (+10 points). ifying ownership and control structure, re- Comparison of Kazakhstan’s positions quiring greater corporate transparency and on indicators expanding access to corporate information during the court proceedings. Comparison of Kazakhstan’s positions on Regarding the indicator “Enforcement indicators of Doing Business rating of contracts”, Kazakhstan simplified the execution of contracts by introducing ad- ditional temporary standards for key litiga- tion that are observed in most cases. Despite the achieved positive results, taking into account the instability in the world economy and the need to minimize the difficulties for business in the country, further work to improve the business cli- mate is needed.
75 Report The Republic of Kazakhstan Section 7. Entrepreneurial development
The dynamics of Kazakhstan’s positions in the Doing Business rating
Support of small and medium-sized enterprises
To support and build the potential of Single Program of Business Support and Kazakhstan’s business in the country, a set Development “Business Roadmap 2020”. of measures is being implemented through This program is a logical continuation of the the adoption of various state and sectoral implementation of the road maps of 2009 and programs. Indirect support measures are also 2010, with emphasis shifting to post-crisis implemented through development institu- development, maintaining existing and cre- tions and social-entrepreneurial corporations. ating new permanent jobs, as well as devel- The Entrepreneurial Code of the oping entrepreneurship in the regions. This Republic of Kazakhstan provides for the program provides for four areas of support: following types of state support for private 1. Support for new business initiatives of entrepreneurship: single-industry cities, small towns and rural 1. financial and property support; settlements. 2. infrastructure support; 2. Sectoral support of entrepreneurs 3. institutional support, consisting in the operating in priority sectors of the economy creation and development of financial insti- and manufacturing industries. tutions for the support and development of 3. Reduction of the currency risks of private entrepreneurship, research institutes entrepreneurs. with state bodies to study problems and 4. Providing non-financial measures to develop proposals for the development of support entrepreneurship. private entrepreneurship; In order to increase the incomes of the 4. information support, consisting in self-employed and unemployed by creating information-analytical, educational-method- conditions for their productive employ- ological, scientific-methodological support of ment, the Program for the Development private entrepreneurship. of Productive Employment and Mass Today, the most recognizable and Entrepreneurship for 2017-2021 was sought-after by entrepreneurs is the adopted.
76 Report The Republic of Kazakhstan Section 7. Entrepreneurial development
Within the framework of this program, Financial rehabilitation of the agro-in- one of the directions is to create conditions dustrial complex entities, restructuring, for mass entrepreneurship. In this direction refinancing and financing of financial obli- all microcredit instruments are combined gations of agricultural commodity producers. and a set of measures for the development Increase in economic accessibility of of microcrediting in the countryside and in goods, works and services for agro-industri- the city is presented. In addition, it is sup- al complex entities. posed to develop the system of obtaining The development of state systems for entrepreneurial skills on the basis of “Bastau providing agro-industrial complex entities Business” with the participation of regional will help agricultural producers develop phy- chambers of entrepreneurs. tosanitary and veterinary safety. In order to support entrepreneurs Increasing the effectiveness of the state working in the agricultural sector, the State regulation of the agro-industrial complex, Program for the Development of the Agro- this will improve the methods of state partic- Industrial Complex for 2017-2021 was ipation in the development of the agricultural launched. This program provides for four sector and provide comprehensive support areas of implementation: to agricultural commodity producers.
Services for Business
Today in Kazakhstan, entrepreneurs • clarification of existing measures of state can receive a set of services in the “one- support for business; stop-shop” mode. At the regional level, • assistance in selection of credit prod- there are service centers for entrepreneurs ucts of financial institutions and many other (SCEs), at single-industry cities level - sta- services. tionary centers for the support of entrepre- In addition, every entrepreneur can get neurship (CSPs), and at the district level interesting information about support tools, - mobile CSPs. as well as obtain public services using infor- In these centers, both current and po- mation and communication technologies. tential entrepreneurs can receive the follow- So, since 2013 the Unified Internet ing services free of charge: Portal “Business Territory” operates • training in the basics of business https://business.gov.kz, which contains infor- for start-uppers and entrepreneurs of all mation about all programs of state support, industries; regulatory legal acts regulating business • development of business projects, activity, measures of protection of business expert examination and evaluation of their entities, public procurement of state bodies, effectiveness; subsoil users and national companies.
77 Report The Republic of Kazakhstan Section 7. Entrepreneurial development
Today, businesses can receive auto- and ensure a transparent mechanism, the mated service on www.egov.kz portal. “E-licensing” portal http://elicense.kz These are services on state registration of operates between the state-licensors and a legal entity, registration of representative the business community. This portal allows offices, liquidation of business, etc. you to submit electronic applications for the To automate the licensing processes receipt and reissue of permits.
78 Report The Republic of Kazakhstan Section 8. Infrastructure development - Growth of economic opportunities
SECTION 8. INFRASTRUCTURE DEVELOPMENT - GROWTH OF ECONOMIC OPPORTUNITIES
Kazakhstan has a vast territory of 2.7 Kazakhstan has an advantageous million square km and is one of the largest geographical position. Being at the junc- countries in the world in terms of area. At tion of two continents - Europe and Asia, the same time, the country has a low pop- Kazakhstan has a significant transit poten- ulation density. Distances between cities tial and is a kind of crossroads for the main and rural settlements are very large. In transit corridors from east to west and from this regard, the formation of a developed north to south. transport and logistics infrastructure is one In Kazakhstan, a number of strategic of the strategic tasks of the state. documents were adopted, the main priority Currently, the State Program for being the integration of the national trans- Infrastructure Development “Nurly port system into the Eurasian transport Zhol” for 2015-2019 is being implemented corridors. in Kazakhstan2, which provides for creation The unavailability of customs’ borders of a unified transport and energy system, allowed the business to reduce transport as well as integration of Kazakhstan’s costs, accelerate transportation of goods, economy into a single national market. as well as increase the competitiveness of A new network of roads, railways and its products. airlines is aimed at uniting the ray principle Currently, a number of large interna- of all regions of the country with each other, tional infrastructure projects are being im- as well as with the capital, as a result of plemented in Kazakhstan, such as the dry which a reliable infrastructure framework port of Khorgos on the border with China, of the country will be created. The interna- the Aktau port on the Caspian Sea, the tional corridor Western Europe - Western Kazakhstan-Turkmenistan-Iran railway cor- China, the routes Astana - Karaganda ridor that connects the Central Asian coun- - Almaty, Astana - Ust-Kamenogorsk, tries with the Persian Gulf and the Bandar Astana - Aktobe - Atyrau, Almaty - Ust- Abbas port on south of Iran, as well as the Kamenogorsk, Atyrau - Astrakhan are of transit corridor Western Europe - Western significant importance. China. In 2016, based on the results of the The One Belt - One Way initia- Nurly Zhol program, more than 100,000 tive provides a unique opportunity for jobs were created, and over 2,000 km of Kazakhstan to become the doorway to engineering networks were built, which pro- China for the Eurasian Economic Union, a vides employment for the population and single market comprising 182 million peo- opens new opportunities for the regions. ple. In a long term, a significant proportion
79 Report The Republic of Kazakhstan Section 8. Infrastructure development - Growth of economic opportunities of trade between China and Europe can The initiative of China to form the pass through this route 2 times faster than “Economic belt of the Silk Way” and the pro- by sea. This will open up opportunities for gram “Nurly Zhol” contribute to the revival business in Central Asia to capitalize new of the Great Transcontinental Highway of trade routes. Eurasia - the Silk Way.
Railway transport
Railways in Kazakhstan are the back- Turkmenistan and Iran, have significantly bone of the country’s transport system. activated the new transit corridors. In 2001, the construction of the In 2014, the railway lines Zhezkazgan- Aksu (Pavlodar region) - Degelen (East Beineu and Arkalyk-Shubarkol were put Kazakhstan region) railway, connecting into operation, which connected the cen- the north-western and western regions, tral region with the west and north of the was completed. As a result, the route from country in direct directions. Regarding the Pavlodar to Semey was reduced by 1.6 railways, freight trains were launched. thousand km. In 2016-2017, the second Almaty-Shu In 2001-2003, the Khromtau (Aktobe railway line was built, which doubled its region) - Altynsarino (Kostanay region) transit potential. railway was built, which connected the The construction of new railways has northern and western parts of the country. significantly reduced the distance, time In 2005-2008, the construction of the and costs for transportation and delivery Ust-Kamenogorsk-Shar railway line, which of passengers and goods both inside the connected the unified rail infrastructure of country and for transit. In addition, the the eastern region, was underway. new railways improved transport logistics In 2009-2012, a new railway line within the country, as well as optimized the Korgas-Zhetygen (Almaty region) was built, international routes of freight traffic in the which became the second exit to the border directions North-South and East-West. with China. Another factor contributing to the Between Kazakhstan and China, improvement of the railway transport infra- an agreement was signed on the es- structure was the construction and commis- tablishment of the international center sioning in 2017 of the new station “Astana- of cross-border cooperation “Khorgos”, Nurly Zhol”. The capacity of the new station which was the gateway to East Asia. The covers completely the need for servicing the Dostyk-Alashankou and Khorgos border capital’s passenger traffic in the long term. crossings on the Kazakh-Chinese border, Railway stations of the cities of Almaty, as well as the Sarakhs-Mashhad between Aktobe, Ust-Kamenogorsk and Shymkent
80 Report The Republic of Kazakhstan Section 8. Infrastructure development - Growth of economic opportunities fully meet the demand of the existing pas- introduction of the Talgo trains into operation senger traffic. makes it possible to shorten significantly the At the end of 2016, the share of railway journey time. If earlier the time from Astana transport in the country’s total freight turn- to Almaty was 26 hours, now it is 11 hours. over was about 42%, in general, the coun- In 2016, the Aktobe Rail and Beam Plant try’s passenger turnover was 7%. was put into operation, which applies the In the future, it is planned to build an technology “Primetals Technologies ItalyS. international high-speed railway that will rl (Siemens-VAI)”. A special feature of the connect the PRC, Kazakhstan, Russia and implemented technology is the innovative Belarus (Beijing-Urumqi-Almaty-Astana- process of differential thermal strengthening Kazan-Moscow-Minsk). The length of this of the rail, which makes it possible to use road will be 7.7 thousand km. these rails on high-speed lines and lines with Today, rail transport is an important part increased freight intensity. The manufacture of the country’s industrial infrastructure. of 120-meter length rail in the CIS countries As part of the creation of domestic was set up for the first time. transport engineering, the construction of In addition, in Kazakhstan, special plants for the production of main diesel attention is paid to training specialists for locomotives, freight cars, Talgo passenger the transport and communications industry. cars and the plant for the production of The Tynyshpayev Kazakhstan Academy of modern electric locomotives using Alstom Transport and Communications (KazATC) in technology have been completed. Thus, the Almaty trains such personnel.
Road sector
The road sector of Kazakhstan plays Further development of the industry an important role in the development of the is facilitated by the implementation of the country’s economy. state program for infrastructure develop- The length of the motor roads of the ment “Nurly Zhol”. Republic of Kazakhstan is 128.3 thousand Within the framework of the Nurly Zhol km, with the specific gravity of public roads program, 7,000 km of motorways were built with a hard surface of more than 90%3. and reconstructed, including such import- During the period from 2012 to 2017, ant highways as Center - South (Astana 4.2 thousand km were reconstructed, which - Karaganda - Almaty), Center - East led to an improvement in the condition of (Astana - Pavlodar - Ust-Kamenogorsk) and roads by 31%4. This allowed doubling the Center - West (Astana - Aktau). The recon- passengers’ turnover and freight turnover struction of the highways Astana - Temirtau, by road for the same period. Astana - Kostanay - Chelyabinsk, Astana
81 Report The Republic of Kazakhstan Section 8. Infrastructure development - Growth of economic opportunities
- Petropavlovsk, Pavlodar - Omsk, Beineu - and road safety throughout the road corri- Shetpe was also completed. dor from south to west. It should be noted that the projects are The transit corridor “Western Europe being implemented jointly with international - Western China” has a serious econom- financial organizations (hereinafter referred ic effect for both Kazakhstan and other to as MFOs) in order to master the best participating countries, which have not world experience in improving the quality only strengthened the transit potential, but of services and attracting modern tech- also the internal effect of regional devel- nologies to the road construction sector. opment. Thus, for example, in Kazakhstan Thus, in cooperation with the International this corridor covers 200 settlements with Bank for Reconstruction and Development, a total number of 5.5 million people. In Kazakhstan introduces an automated road this regard, the growth of small and medi- management system. um-sized enterprises, the service industry, Taking into account the world expe- tourism and other sectors of the economy rience, Kazakhstan, in addition to state is expected. funds and funds of MFOs, actively uses In addition, on the border with China, public-private partnership tools in large the infrastructure of the Dry Port in the SEZ road projects. These are the following proj- “Khorgos-Eastern Gate” is fully formed. ects: “Construction and operation of the Along with this, the opening within the highway “Big Almaty ring road”, “Creation framework of the Shanghai Cooperation of the infrastructure of the automobile Organization four corridors passing through checkpoint on the section of the highway the territory of Kazakhstan until 2020, will “Almaty-Khorgos” (Western Europe - attract additional volumes of freight from Western China)”, “Construction and oper- neighboring countries. In addition, China’s ation of high-speed highways in the South accession to the Convention “International Kazakhstan region” and etc. Road Transportation”, unification of For Kazakhstan, in addition to the de- weight-dimension parameters, will create velopment of domestic road infrastructure, favorable conditions for the further develop- the completion of the construction of the ment of road transport. Kazakhstan section of the international All this should ensure the integration automobile corridor “Western Europe - of the national transport system into the Western China” is important, allowing to Eurasian transport corridors. reduce the time of transportation of freight For the period of 2011-2016, the vol- from Lianyungang (PRC) to St. Petersburg ume of transit via road transport increased (Russia) to 10 days. by 4.5%, with freights from China (55.3%) The main purpose of the construction and Uzbekistan (26.2%) to Europe and the of this site is to increase the transportability Eurasian Economic Union.
82 Report The Republic of Kazakhstan Section 8. Infrastructure development - Growth of economic opportunities
In general, state measures will allow through the economic benefits of reduc- to reconstruct and build more than 7 thou- ing transport costs in production costs, sand km of high-speed roads, to reduce the increasing the speed of interregional and average travel time 2 times between hub intercountry transport and, accordingly, cities in one direction, create more than reducing the time losses and the operating 200 thousand jobs, and build 260 objects costs of road users, strengthening the links of high-grade and high-quality road service. between regions, which in general, will The effect of the implementation of positively affect the growth of the economy. large-scale road projects will be achieved
Water transport
Kazakhstan is the largest country in transit traffic, its share in providing freight the world, which has no access to the sea. transportation in the Caspian basin is However, the advantageous geographical about 25%. location of Kazakhstan predetermines its Reconstruction of this port enabled geopolitical role as a transit bridge between the country to join international transport Europe and Asia. routes through the Caspian Sea. The One of the bridges connecting Europe result was a direct access to the ports of with Asian countries is the Caspian Sea, the Caspian and indirectly - the Black Sea- which is the transport artery for the delivery Mediterranean Sea and Baltic basins, the of transit freight. Persian Gulf and South-East Asia, and con- The Caspian Sea is of great importance ditions were created for large-scale transit within the economic space of the European freight traffic. Union - CIS - China - South-East Asia. In the port of Kuryk in December In the middle of the 2000s, Kazakhstan 2016, a railway ferry terminal with a ca- proposed the construction of a navigable pacity of 4 million tons of freight per year channel “Eurasia” between the Caspian was launched. In 2017, the second phase and Black Seas. Effective infrastructure of construction of the Kuryk port - an au- of the Caspian region provides economic tomobile ferry terminal - was launched. growth on a Eurasian scale. Completion of the project will bring the total Coastal transport infrastructure of throughput capacity of Kazakhstan’s sea- Kazakhstan on the Caspian Sea includes ports to 26 million tons. three operating seaports - Aktau, Kuryk and The port of Bautino specializes as a Bautino. base for supporting offshore oil operations. The port of Aktau is involved in trans- Following the results of 2016, the volume shipment of goods in export-import and of domestic maritime transport amounted to
83 Report The Republic of Kazakhstan Section 8. Infrastructure development - Growth of economic opportunities
3,082 thousand tons of freight, which is 7% River navigation is carried out in the more than in 2015 due to transportation on basins of the Irtysh rivers (including Lake the Turkmenistan-Makhachkala line and a Zaisan, Bukhtarminsk, Ust-Kamenogorsk new service from Makhachkala-Baku. and Shulba Reservoirs), the Urals, Kigach, The domestic merchant fleet comprises 8 Ishim, Ili, Kapchagai Reservoir and Lake tankers, which transport about 70% of the total Balkhash. volume of oil passing through the port of Aktau. River transport occupies a small share Currently, about 300 vessels operate in in the total volume of the republic’s trans- the Kazakhstan sector of the Caspian Sea. port operations. Transportation of passen- Maintenance services to these vessels gers and freight on inland waterways of are provided by ship-repair bases of the Kazakhstan is carried out by about 140 Mangistau region. vessels.
Aviation
During the years of independence, a recognized as the Best airline of Central Asia complex civil aviation system was created and India with one of the youngest fleets in in Kazakhstan. the world (6-8 years) has been established. So, during the last 5 years there has The republic has 20 airports of repub- been some positive dynamics (+33.5%) in lican and regional significance. To date, 14 terms of the number of passengers carried out of 16 airports, which were admitted to by airlines, as well as of passengers served servicing international flights, have been by the RoK airports (+ 32.6%). categorized according to the standards of This fact has allowed to increase in- the International Civil Aviation Organization comes on transportations (+67%) and from (hereinafter ICAO). activity of air freight transport (+15%)5. In the field of ground infrastructure, The growth in the volume of air trans- annual reconstruction and modernization portation was accompanied by an increase of the runways, taxiways, passenger termi- in the total number of civil aircraft. So, if in nals, including engineering infrastructure, 2011 there were only 691 vessels, then by power supply, heat supply, water supply the end of 2017 there were 913 of them. systems, fuel supply, is carried out annually. In addition, during the visit of the Head So, for 26 years of independence of State to the United States in early 2018, reconstruction of 15 runways and 11 ter- contracts were signed for the supply of 9 minals of the airports of Kazakhstan was aircraft for a total of $ 1.5 billion. carried out. Air carrier, leading in the region, Air In 2017 the construction of a new ter- Astana, which for the last 6 years has been minal of the international airport “Nursultan
84 Report The Republic of Kazakhstan Section 8. Infrastructure development - Growth of economic opportunities
Nazarbayev” was completed, capable of Given that the territory of the Republic serving more than 8 million passengers a of Kazakhstan has an advantageous geo- year. strategic location at the crossroads of the The new passenger terminal of the European-Asian air transport market, tran- capital airport with an area of 47 thousand sit transportation is one of the main direc- square m. has a technological scheme for tions of aviation development. In the period servicing passengers both on international of 2010-2017, the number of transit pas- and domestic routes, meeting the require- sengers of Kazakh airlines has increased ments of ICAO international standards and more than 30 times from 20 thousand to recommended practices. 620 thousand passengers per year6. The Currently, in the field of domestic flights main directions are “China-Europe, Turkey, there are regular flights on 53 routes, most Russia”, “Central Asia - India”, etc. of which are in Almaty (16 flights) and One of the factors in the development Astana (14 flights). There are 21 trans- of the transit potential is the comparatively verse routes that do not include Astana and low tariffs of domestic airports for inter- Almaty. national flights than at the airports of our Almaty has a service with 20 countries neighbors in the region. on 29 international routes, and Astana - Additionally, one of the strategically im- with 16 states on 25 routes. From Astana, portant elements in the development of the flights to 5 international financial centers industry is the provision of aviation security. - Frankfurt, London, Dubai, Hong Kong, To date, each airport has organized Seoul, are carried out. At the same time, aviation security services, staffed with the 126 international and 289 domestic flights necessary technical means and personnel. are performed weekly from Astana. In November 2017, ICAO’s aviation The total number of air routes of the security audit was successfully completed. Republic of Kazakhstan is 90, while their According to official audit estimates, there length is 83,876 km. The total number of has been significant progress and a high air corridors on the border with neigh- level of compliance with ICAO require- boring countries is 73. Airports of Almaty ments (83%). and Astana allow the adoption of modern Gradually, the process of transition wide-bodied aircraft. In general, all medi- to the British model of civil aviation regu- um-range passenger aircrafts can take off lation is being implemented, which is the in almost all airports in Kazakhstan. most advanced form of management. A That is, the state of the ground infra- Memorandum of Understanding was signed structure allows developing domestic air with the British Civil Aviation Agency, differ- transport and creating international routes, ent approaches were developed to imple- especially with border regions. ment this model.
85 Report The Republic of Kazakhstan Section 8. Infrastructure development - Growth of economic opportunities
The growth of the industry calls for training centers, in 2018, the construction staffing. Thus, in addition to the existing of the Aviation Training Center in Astana Academy of Civil Aviation, the College will begin. at the Academy, as well as 20 aviation
86 Report The Republic of Kazakhstan Section 9. International integration processes
SECTION 9. INTERNATIONAL INTEGRATION PROCESSES
Kazakhstan plays a rather important Since gaining independence, role as a participant in world economic pro- Kazakhstan has pursued a balanced and cesses. The country possesses significant pragmatic foreign policy. reserves of the main types of resources, Today, the country’s foreign trade turn- is located at the intersection of the main over exceeds the aggregate turnover of transcontinental trade and transport routes, other Central Asian countries. and preserves internal stability. In order to The Republic of Kazakhstan is one of increase the effectiveness of using the ex- the first leaders and an active consistent isting advantages, Kazakhstan initiates the organizer of integration processes. development of most regional and interre- Kazakhstan’s participation in interna- gional projects. tional economic integration is a prerequi- According to the experience of the de- site for creating an economic basis for the velopment of integration processes in the sovereignty of the Republic of Kazakhstan, world, it is the collective exercise of sover- ensuring high economic growth, joining it to eignty that is the most optimal way of ensur- the world community as a full member. ing national interests and real independence The goals and principles of economic in today’s interconnected world. integration in Kazakhstan are to increase the Kazakhstan has established itself as sustainability of development through eco- a successful, stable state in the system of nomic strengthening; opening up new de- international relations. velopment opportunities for national econo- Kazakhstan’s foreign policy efforts are mies; economic pragmatism; voluntariness, focused on ensuring and strengthening respect for sovereignty and the strengthen- security, sovereignty and territorial integrity, ing of national statehood; equality in making political stability and sustainable economic all decisions; evolutionary development and development of the country. openness of the Eurasian space.
Kazakhstan in the Eurasian Economic Union
Kazakhstan is a member state of the Eurasian Economic Union (hereinafter - creation of the union came into force on EEU) - an international integration economic January 1, 2015. association along with Armenia, Belarus, It is known that Kazakhstan’s desire to Kyrgyzstan and Russia. The Treaty on the become an advanced state, to get into the top
87 Report The Republic of Kazakhstan Section 9. International integration processes
30 developed countries of the world in 2050, the transport of goods. Competitiveness of is itself a positive intention. Participation of products has been increased. Participation Kazakhstan in the EEU creates an addition- in the EEU brings benefits to all citizens al foundation for diversifying the economy, who enjoy equal educational, professional, increasing labor productivity, entering the 30 social, medical preferences. most competitive countries in the world. Kazakhstan in the EEU has every rea- The creation of the EEU is one of the key son to continue to be a space for growth, directions of the global movement towards economic freedom, attraction of investment regionalization and stability of development. and business support. The economic potential of Eurasian In May 2015, an agreement on free integration is very high. The volume of na- trade with Vietnam was signed in Astana, tional economies is more than 2.2 trillion and in December, the heads of state consid- US dollars, the population is more than 182 ered the possibility of pairing the EEU and million people. the Economic belt of the Silk Way. The work No custom borders allowed business- was begun on the creation of a roadmap for men to reduce transport costs and accelerate cooperation with China.
Economic indicators of the EEU in 2016
OIL PRODUCTION STEEL PRODUCTION 628.3 million tons 76.2 million tons 1st place in the world 5th place in the world 14.6% of the global indicator 4.5% of the global indicator GAS PRODUCTION GROSS GRAIN HARVESTING KZT 686.2 billion m3 76 million tons 2nd place in the world 2nd place in the world 18.4% of the global indicator 9% of the global indicator COAL MINING MILK PRODUCTION 489.6 million tons 45.4 million tons 6th place in the world 3rd place in the world 5.8% of the global indicator 7% of the global indicator ELECTRIC ENERGY PRODUCTION MEAT PRODUCTION 1235.1 billion kW*h 7.9 million tons 4th place in the world 4th place in the world 5.1% of the global indicator 3.5% of the global indicator CAST IRON PRODUCTION EXTENSION OF RAILWAYS 54.6 million tons 107.0 thousand km2 3rd place in the world 2nd place in the world 4.5% of the global indicator 7.8% of the global indicator
88 Report The Republic of Kazakhstan Section 9. International integration processes
The volume of foreign trade in goods and products thereof (10.7%), products of the EEU with countries outside the EEU of the chemical industry (6.1%) prevail in in January-December 2017 amounted to the commodity structure of exports of the 633.8 billion US dollars, including exports countries of the EEU to countries outside - 386.6 billion US dollars, imports - 247.2 the EEU. The largest share in imports is billion US dollars. occupied by machinery, equipment and In comparison with the period of 2016, vehicles (44.7% of total imports from coun- the volume of foreign trade increased by tries outside the EEU), chemical products 24.4%, or by 124.4 billion US dollars. The (18.1%), food products and agricultural raw volume of exports of goods increased by materials (12.2%). 24.5%, or by 78.3 billion US dollars, imports - Mineral products (27.7%), machinery, by 22.9%, or - by 46.1 billion US dollars. The equipment and vehicles (18.5%), food positive balance of foreign trade in goods products and agricultural raw materials increased from 107.2 billion US dollars in (15.1%) prevail in the commodity structure January-December 2016 to 139.4 billion US of mutual trade. dollars in January-December 2017. The EEU has become a full-fledged The volume of mutual trade of the EEU subject of international law developing re- for January-December of 2017 amounted lations with traditional partners and forming to 54.2 billion US dollars, or 126.1% to the its new system of trade and economic rela- level of the corresponding period of 2016. tions with leading and promising economic The volume of trade with the countries of centers - China, India, Vietnam, Iran, Egypt, the EEU amounted to 17.4 billion US dol- Israel, Latin American countries, interna- lars, which corresponds to 22.4% of total tional structures and regional integration mutual trade. associations. The main buyer of goods exported by The cooperation of states within the the EEU member states is the European framework of the EEU is based on the Union (49.3% of total exports). Among the principles of economic pragmatism and EU countries, the most significant supplies mutual benefit, integration is seen as an of goods are carried out to the Netherlands additional growth stimulus, contributing to (10.7%), Germany (7.1%), Italy (5.9%), the successful solution of national tasks Poland (3.4%). and providing additional growth through Mineral products (62.6% of total ex- the implementation of the integration ports to countries outside the EEU), metals potential.
89 Report The Republic of Kazakhstan Section 9. International integration processes
Kazakhstan’s accession to the World Trade Organization
In 2015, Kazakhstan officially joined the World Trade Organization following more than 19 years of negotiations. Kazakhstan’s accession to the WTO is an additional incentive for the ongoing work 3. Getting easier access to world mar- to improve the country’s competitiveness kets for goods, services, capital, interna- and improve the welfare of the country. tionally recognized rights to protect national Participation in the WTO contributes to the economic interests in these markets. solution of such important intra-economic 4. Reducing commercial risks by estab- tasks of Kazakhstan as growth of labor pro- lishing a more stable trading regime, as well as ductivity, and reduction of costs. reducing transportation costs due to guaran- teeing the freedom of transit of goods through Economic benefits of the territory of the WTO member states. Kazakhstan joining the WTO 5. Creation of civilized conditions for 1. Recognition of Kazakhstan as a coun- competition and access to a unified interna- try with an open market economy integrated tional legal space. into the world economy and world structures. 6. Positive prospects for the investment 2. Conducting trade between the WTO climate will lead to the development of do- members on a non-discriminatory basis, mestic production, will serve as a powerful due to a large contribution to the global source of renewal of production and eco- export of oil, oil products, natural gas, elec- nomic growth of the country. tricity and coal. 7. Accelerated development of indus- Expanding the range and quality of tries that produce final products with a high goods and services will lead to a reduction level of research intensity and value added, in prices of not only finished imported goods high and medium manufacturability. and services, but also the domestic ones, in the production of which imported compo- nents are used.
90 Report The Republic of Kazakhstan Section 9. International integration processes
Kazakhstan and OECD: towards mutually beneficial cooperation
One of the priorities of Kazakhstan’s foreign economic policy is close cooper- implemented in three countries of the world ation with the Organization for Economic - Peru, Morocco and Kazakhstan. Within Cooperation and Development (OECD). the framework of the Country Program, the Kazakhstan actively implements the Republic of Kazakhstan can join a number of OECD standards in economic practice. the OECD instruments and take part in the Approaching to these standards contributes work of its structures. The program imple- to the entry of Kazakhstan into 30 developed ments projects aimed in particular at the de- countries of the world. velopment of human capital, SMEs’ access Kazakhstan’s cooperation with the to financing, as well as improving the policy OECD began in 2008 within the framework in attracting and supporting investments. of the Eurasian Competitiveness Program The country program envisages (hereinafter referred to as the ECP) and Kazakhstan’s accession to 29 OECD decla- continued as a co-chair in the Central Asian rations and recommendations, as well as 17 Initiative between 2013 and 2016. reviews of the socio-economic status of the ECP is being implemented with the Republic of Kazakhstan. aim of attracting investments, increasing At present, the Government of competitiveness and developing private Kazakhstan initiated the accession to 21 of entrepreneurship. 29 legal instruments of the OECD Country 2015 was a new stage of cooperation program. Kazakhstan received 17 out of 21 between Kazakhstan and OECD. The coun- confirmations of accession to legal instru- try program was signed, which represented ments. Joining a legal instrument means a qualitatively new platform for the exchange bringing national legislation in line with the of experience. Similar program is being best practices of the OECD states.
91 Report The Republic of Kazakhstan Section 10. Development of peace initiatives: peacekeeping capacity
SECTION 10. DEVELOPMENT OF PEACE INITIATIVES: PEACEKEEPING CAPACITY
Kazakhstan has accumulated a unique of independence of the republic. The most experience of implementing peace ini- revealing examples of the peace initiatives tiatives, which can be indicative of world of Kazakhstan are the following. practice and originates from the first years
The refusal of nuclear weapons
After the collapse of the USSR, Kazakhstan possessed the fourth largest nuclear missile arsenal in the world, includ- ing one of the world’s largest landfills - the Since then, Kazakhstan has been faith- Semipalatinsk nuclear test site. The attitude ful to the ideal of a world without nuclear towards the newly-formed republic, which weapons, setting itself the task of serving possesses nuclear weapons, from the side as an example in promoting a nuclear-free of the world community was ambiguous and, initiative in the world. In 2012, Kazakhstan in many respects, distrustful. Kazakhstan, initiated the project of public diplomacy proceeding from the ideal of a world free of “ATOM” (Abolish Testing. Our Mission) in nuclear weapons and the peaceful use of order to contribute to “real and sustainable nuclear energy for the benefit of all mankind, changes by attracting citizens of the whole decided to renounce voluntarily nuclear world to unite for the sake of stopping the weapons, declaring the world community its testing of nuclear weapons, thereby declar- peaceful position. This allowed Kazakhstan ing to the world community that humanity to destroy distrust as a new source of a deserves and demands a world without nu- potential nuclear threat and to start relations clear weapons”. The initiative was supported with the international community from clean by citizens of more than 100 countries. page. Kazakhstan adheres to the position It is noteworthy that the project was that peace and security guarantees creation launched on August 29, 2012 in memory of of a deliverance from nuclear weapons, the closure of the Semipalatinsk nuclear test instead of possession. In 2006, 4 more site in 1991. This day the UN declared the Central Asian states joined the initiative of International Day of Action against Nuclear Kazakhstan to create a nuclear-weapon-free Tests precisely at the initiative of Kazakhstan, zone, forming a new, sixth nuclear-free zone which is evidence of the support of the - the “Area of Peace”. world’s non-nuclear policy of Kazakhstan.
92 Report The Republic of Kazakhstan Section 10. Development of peace initiatives: peacekeeping capacity
Another evidence of widespread inter- functioning of nuclear power plants, as well national support for Kazakhstan’s anti-nu- as to strengthen the nuclear non-prolifera- clear policy is the creation in Kazakhstan tion and disarmament regime. of the world’s first Low Enriched Uranium Thanks to many years of efforts to Bank under the aegis and full control of the promote nuclear disarmament at the inter- International Atomic Energy Agency. The national level, Kazakhstan has consolidated Bank was established to provide nuclear its leading position in the world anti-nuclear fuel to member states of this organization in movement. case of need to maintain the uninterrupted
Establishment of the Conference on Interaction and Confidence Building in Asia
Kazakhstan became the first country in the Central Asian region to propose the creation of a security structure with a great It should be noted that at the time of estab- integration potential, initiating the creation lishment, Asia did not have a similar structure of the Conference on Interaction and for ensuring peace and security, unlike other Confidence Building in Asia (CICA), an regions. As it grows and develops, this initia- international forum to strengthen coopera- tive has been receiving even greater support tion aimed at ensuring peace, security and from a number of states that support the con- stability on the Asian continent. cept of mutual trust and sustainable security. Since the establishment of this orga- The first tangible success of CICA activities nization in 1992, it has been joined by 16 can be called the restoration of the dialog be- countries in Asia. Today CICA unites 26 tween India and Pakistan at the time of exac- member-states; 8 countries and 4 interna- erbation of relations in 2002. Having strength- tional organizations, including the UN, hav- ened institutionally and organizationally, the ing observer status. CICA gained observer status in the UN and The Forum is based on the understand- developed cooperation with the OSCE and ing that peace and security in Asia can be the Shanghai Cooperation Organization (here- achieved through dialog and cooperation inafter referred to as the SCO). To date, CICA leading to a common inseparable security in is a popular and viable organization, which Asia, where nations will peacefully coexist, has proved to be an effective mechanism for and their people will live in an atmosphere of ensuring peace and sustainable security in peace, freedom and prosperity. Asia through dialogue and trust.
93 Report The Republic of Kazakhstan Section 10. Development of peace initiatives: peacekeeping capacity
Kazakhstan’s chairmanship in the Organization for Security and Cooperation in Europe
One of the important milestones in such meetings with a 2-3-year regularity. the history of modern Kazakhstan was the After 11 years of pause, Kazakhstan or- chairmanship in 2010 of the Organization ganized the next OSCE summit in Astana, for Security and Cooperation in Europe strengthening the role and credibility of (hereinafter - the OSCE) - the largest region- the organization as an important dialog al structure uniting 56 countries in Europe, platform between the Euro-Atlantic and Central Asia and North America. Kazakhstan Euro-Asian countries. The Astana summit was the first among the countries of the was an important event in the history of the post-Soviet space to chair the OSCE. OSCE. If the Helsinki Summit of 1975 laid This historic decision, demonstrating the foundations of the European security the OSCE’s commitment to the principle community, the Astana Summit of 2010 of equality of the participating states and took a step further, laying the foundations the doctrine of a “common home from of “Eurasian security”. Thus, the Astana Vancouver to Vladivostok” was a recogni- Declaration of the OSCE Summit for the tion of Kazakhstan’s growing role in inter- first time enshrined the notion of a common national politics. and indivisible space of the Euro-Atlantic Kazakhstan led the OSCE guided by and Eurasian security community. new challenges that the organization faced, Having led the OSCE, Kazakhstan where signs of a contradiction between managed to implement the plan for its re- Western countries on the one hand and suscitation. The international dialog within the countries of Eurasia on the other be- the OSCE was extended by holding consul- gan to show themselves. Kazakhstan has tations with such authoritative structures as set the task of removing the OSCE from NATO, EU, Council of Europe, SCO, CIS, a segmented state, where fundamentally etc., which brought it to a qualitatively new different approaches of understanding se- level. curity dimensions have emerged between The chairmanship in the OSCE is a countries. This was impossible without a significant contribution to the process of full-fledged dialog between the leaders of strengthening the foreign policy image of the countries. At the same time, starting in the Republic of Kazakhstan, recognizing 1975, only 6 top-level meetings took place the success of an independent Kazakhstan within the OSCE, which clearly reflected by the international community, its worthy the lack of consensus and non-compliance contribution to regional and international with the regulations providing for holding security.
94 Report The Republic of Kazakhstan Section 10. Development of peace initiatives: peacekeeping capacity
Interaction within the framework of the Shanghai Cooperation Organization
Kazakhstan is one of the founding leaders of the SCO. The SCO is a regional international organization founded in 2001 by the leaders of China, Russia, Kazakhstan, 2004 to 2011, thanks to the work of the Tajikistan, Kyrgyzstan and Uzbekistan. SCO Regional Anti-Terrorist Structure, more Today, the SCO is a weighty global than 500 terrorist acts were prevented. organization: 8 countries are the SCO Nevertheless, the SCO does not position member states, 4 countries have observer itself as a military bloc as opposed to other status, and 6 are partners in the dialog. The regions, but adheres to “the principles of total territory of the SCO member states is mutual trust, mutual benefit, equality, mutual 30 million km2, which is 60% of the territory consultations, respect for the diversity of cul- of Eurasia. Its cumulative demographic tures and the desire for joint development”. potential is one-fourth of the world’s pop- Interacting within the framework of the ulation, and its economic potential includes SCO, Kazakhstan attaches priority impor- China’s most powerful economy after the tance to the key issues of political, econom- United States. ic, cultural and humanitarian cooperation, The main tasks of the SCO are strength- as well as to ensuring the fullest possible ening the stability and security in a broad security and stability in the space. space that unites the participating states, The activity of the SCO was recognized combating terrorism, separatism, extremism, and widely supported by other states, which drug trafficking, development of economic allowed it to become one of the most ef- cooperation, energy partnership, scientific fective regional cooperation mechanisms, and cultural interaction. Today, the SCO fac- where Kazakhstan is one of the most active tor is an important element of stability in the participants, thereby contributing to the vast Eurasian space. Only in the period from overall development in the Eurasian region.
Interethnic unity and religious tolerance
Kazakhstan is a vivid example of the desire for interethnic harmony, being home to representatives of more than 130 nationalities.
95 Report The Republic of Kazakhstan Section 10. Development of peace initiatives: peacekeeping capacity
Since 1995 the Assembly of the peo- provides regularly an international platform ple of Kazakhstan has been established for peaceful dialog for representatives of and successfully functioning in Kazakhstan, Islam, Christianity, Judaism, Shintoism, which became the constitutional body of Hinduism and Buddhism and other religions. the country, representing the interests of all The Congress of Leaders of World and ethnic groups in order to ensure strict obser- Traditional Religions is held on the basis vance of the rights and freedoms of citizens of trust and mutual understanding, which regardless of their nationality. The activity of opens wide prospects for international the Assembly of the people of Kazakhstan cooperation and helps to overcome such is aimed at the implementation of state negative phenomena as conflicts, violence, national policy, ensuring social and political religious extremism and terrorism. As the stability in the country and enhancing the President of Kazakhstan noted at the last effectiveness of interaction between state V Congress, the world community highly and civil society institutions in the sphere of appreciates the culture of religious tolerance interethnic relations. that exists in Kazakhstan, which has unique In the sphere of religion, Kazakhstan world significance. demonstrates a successful example of har- Over the years of independence, con- monious coexistence of representatives of trary to many expert forecasts, Kazakhstan more than 18 confessions. managed to prevent interethnic and interre- Since 2003, when I Congress of ligious conflicts and to pave a peaceful path Leaders of World and Traditional Religions to the future for the multinational people of took place in Kazakhstan, Kazakhstan Kazakhstan.
Multi-vector foreign policy and open dialog
In foreign policy, Kazakhstan adheres to the principles of constructive multi-vector na- ture and balance, maintaining good relations with all major world powers, and developing friendly cooperation with neighboring states, Kazakhstan also actively develops the Islamic world, Turkic-speaking countries, cooperation with the EU, which is the and states of other regions. The experience largest foreign investor in Kazakhstan. An of building the foreign policy of Kazakhstan is important step in the development of the unique in that Kazakhstan managed to build European vector of cooperation was the equally friendly relations with virtually all implementation of the State Program “The countries of the world. Way to Europe” for 2009-2011, thanks to
96 Report The Republic of Kazakhstan Section 10. Development of peace initiatives: peacekeeping capacity which agreements on strategic partnership for the Joint Comprehensive Plan of Action were concluded with France, Spain, Italy to resolve this situation. Kazakhstan actively and other EU countries, an intergovern- participated in the resolution of the Afghan mental program with Germany was signed. issue and mediated during the aggravation Kazakhstan became the first country in the of Ukrainian-Russian relations. In 2017, Central Asian region to sign the Agreement seven rounds of peaceful settlement of the on Enhanced Partnership with the EU, Syrian conflict were held in Astana, where thereby gaining the opportunity to enter a Kazakhstan’s actions were highly appreciat- higher level of dialog with the leading coun- ed by the participating countries. tries of Europe. Based on the accumulated experience, Geographical position of Kazakhstan: Kazakhstan also declared its readiness the proximity to the world powers - the to mediate in other conflict situations of a Russian Federation and China, as well as global scale, for example, in the talks on the the transit position of Kazakhstan at the denuclearization of the DPRK. crossroads of Europe and Asia, allows Evidence of the world community’s trust Kazakhstan to conduct dialogs between the in Kazakhstan and its peacekeeping policy conflicting countries on its territory, playing is the election of Kazakhstan as a non-per- an active role in eliminating conflict situa- manent member of the UN Security Council tions between countries at the regional and (hereinafter referred to as the Security international levels. Council), as well as Kazakhstan’s chairman- The peacekeeping authority of ship in this organization in January 2018. Kazakhstan is reflected in its active partic- Heading the Security Council Committees ipation in diplomatic mediation around a on Afghanistan / the Taliban, ISIS/DAISH number of different conflict situations. Thus, and Al-Qaida, Somalia/Eritrea, Kazakhstan in Almaty, the first two rounds of negotiations contributes to their fruitful activities. It should were held around the Iranian nuclear prob- be noted that Kazakhstan is the first state of lem, the results of which formed the basis Central Asia in this post.
Manifesto of the President of the Republic of Kazakhstan “Peace. XXI Century”
An important step in the promotion of Kazakhstan’s peace initiatives at the inter- national level can be called the Manifesto United Nations. In this document, the of the President “Peace. XXI Century”, President proposed a global program “A which became an official document of the World Without War”, outlining the following
97 Report The Republic of Kazakhstan Section 10. Development of peace initiatives: peacekeeping capacity algorithms for the actions of the world attention to real zones of conflict, such as the community aimed at destroying the virus Middle East. It is assumed that security is- of wars and conflicts forever. sues will be guaranteed by the UN structures. Firstly, this is a consistent movement Thirdly, overcoming the phenomenon towards a world without nuclear and oth- of military blocs, which have a huge conflict er weapons of mass self-destruction. potential and thereby impede international Kazakhstan, which refused voluntarily from cooperation. one of the most powerful nuclear arsenals, Fourthly, this is the actualization of the hopes that its example will serve as a show- international disarmament process in the case for other states, supporting the adoption light of new threats, such as cybercrime and of international documents on the renuncia- information attacks. tion of nuclear weapons and the ban on the Fifthly, equitable access of all nations use of scientific achievements for the creation to infrastructures, resources and markets, of new types of weapons of mass destruction. which is the basis for eliminating the root Secondly, this is a successive expansion causes of wars and conflicts. of nuclear-free zones - the “Areas of Peace”. This manifesto has received wide world Kazakhstan, being the founder of the young- support from the world community and is est nuclear-free zone in the world, proposes used in the work of the UN and other inter- the expansion of such zones, paying special national organizations.
98 Report The Republic of Kazakhstan Sources
SOURCES
1. Customs Information Portal // http://keden.kz/en/prir_resurs_kz.php 2. Interim report on the theme of the study “Business Climate 2016” 3. The main aspects of the strategic development of public-private partnership in Kazakhstan. A.R. Oynarov // Public Administration and Public Service - 2014. 4. Data of the Committee on Statistics of the Ministry of National Economy of the Republic of Kazakhstan 5. What does the new terminal of Astana airport look like. https://tengrinews.kz/ kazakhstan_news/kak-vyiglyadit-novyiy-terminal-aeroporta-astanyi-319209/ 6. Official website of the Eurasian Economic Commission http://www.eurasiancommis- sion.org/ 7. Official website of the World Trade Organization https://www.wto.org/ 8. Official website of the Shanghai Cooperation Organization http://www.sectsco.org/ 9. Official website of the Organization for Security and Cooperation in Europehttp://www. osce.org/ 10. Official website of the Organization for Economic Cooperation and Developmenthttp:// www.oecd.org/ 11. Official website of the Collective Security Treaty Organization http://www.odkb-csto.org/ 12. Official website of the Asia-Europe Forum http://www.aseminfoboard.org/ 13. Official website Conference on Interaction and Confidence Building in Asia http://ww- w.s-cica.org/ 14. Official website of the project “Belt and the Road” https://beltandroad.hktdc.com/en/ belt-and-road-basics 15. Official website of the President of the Republic of Kazakhstan http://www.akorda.kz/ en/national_projects/sezd-religii-2012_1338973130 16. Official website of the President of the Republic of Kazakhstan http://www.akorda. kz/ru/special/speeches/internal_political_affairs/in_speeches_and_addresses/vystu- plenie-prezidenta-respubliki-kazahstan-nanazarbaeva-na-mezhdunarodnoi-konfer- encii-ot-zapreta-yadernyh-ispytanii-k-miru-svobodnomu-ot-ya 17. Official website of the President of the Republic of Kazakhstan http://www.akorda. kz/ru/speeches/external_political_affairs/ext_speeches_and_addresses/vystuple- nie-prezidenta-respubliki-kazahstan-n-nazarbaeva-na-zasedanii-soveta-bezopasnos- ti-oon-nerasprostranenie-omu-mery-doveriya 18. Official website of the President of the Republic of Kazakhstan http://www.akorda.kz/ ru/speeches/external_political_affairs/ext_other_events/manifest-mir-xxi-vek
99 Report The Republic of Kazakhstan Sources
19. Official website of Agency Khabar JSC http://khabar.kz/en/news/obshchest- vo/item/89190-pervyj-v-mire-bank-nizkoobogashchennogo-urana-otkroet- sya-v-ust-kamenogorske 20. Official website of the Ministry of Foreign Affairs of the Republic of Kazakhstan http:// mfa.gov.kz/en/content-view/evrazes 21. Official website of the Eurasian Economic Community http://www.evrazes.com/ 22. The official website of the ATOM project https://www.theatomproject.org/en/ 23. Kaptagayev, O.K. (2010). Multi vector nature is the priority of Kazakhstan’s foreign policy. Published in Al-Farabi. Kazakhstan: political realities of contemporaneity”. 3(31), pp. 87-97 24. Sultanov B.K. (2007). Multi-vector foreign policy of Kazakhstan: experience and prospects. http://kisi.kz/ru/categories/geopolitika-i-mezhdunarodnye-otnosheniya/ posts/mnogovektornaya-vneshnyaya-politika-kazahstana-opyt-i-p 25. Hanhui, Zhang. (2015). Speech of the Ambassador Extraordinary and Plenipotentiary of the People’s Republic of China in the Republic of Kazakhstan. Published in “Kazakhstanskaya Pravda”, July 7, 2015. 26. Official website of Akimat of the Akmola region http://akmo.gov.kz/?lang=en 27. Official website of Akimat of the Aktobe region http://aktobe.gov.kz/en 28. Official website of Akimat of the Almaty region http://zhetysu.gov.kz/ru/ 29. Official website of Akimat of the Atyrau region http://atyrau.gov.kz/?lang=en 30. Official website of the 17th North Caspian Regional Exhibition “Atyrau Oil and Gas” https://www.oil-gas.kz/en/, https://atyraubuild.kz/en/ 31. Official website of Akimat of the West Kazakhstan region http://bko.gov.kz/en/ 32. Official website of Akimat of the Zhambyl region http://www.zhambyl.gov.kz/index. php?lan=rus 33. Official website of Akimat of the Karaganda region https://karaganda-region.gov.kz/eng/ 34. Official website of Akimat of Kostanay region http://kostanay.gov.kz/en/ http://map. investinkostanay.kz/en 35. Official website of Akimat of the Kyzylorda region https://e-kyzylorda.gov.kz/?q=en 36. Official website of Akimat of the Mangystau region http://mangystau.gov.kz/en 37. Official website of Akimat of the South Kazakhstan region http://ontustik.gov.kz/en 38. Official website of Akimat of the Pavlodar region http://pavlodar.gov.kz/en/home/ 39. Official website of Akimat of the North Kazakhstan region http://sko.gov.kz/?lang=en 40. Official website of Akimat of the East Kazakhstan region http://www.akimvko.gov.kz/en/ 41. Official website of the city of Almaty https://almaty. gov.kz/page.php?page_id=3894&lang=2 42. Official website of the city of Astana https://almaty.gov.kz/page. php?page_id=3894&lang=2
100 Report The Republic of Kazakhstan Sources
43. Official website of the Association of participants of special economic zonesof Kazakhstan “SezUnion” http://sezunion.kz/en 44. Official website of AIFChttp://www.aifc.kz/ 45. Speech of the President of the Republic of Kazakhstan N. Nazarbayev at the meeting of the UN Security Council “Nonproliferation of WMD: confidence measure” dated January 19, 2018, available under the link: http://www.akorda.kz/ru/speeches/exter- nal_political_affairs/ext_speeches_and_addresses/vystuplenie-prezidenta-respubli- ki-kazahstan-n-nazarbaeva-na-zasedanii-soveta-bezopasnosti-oon-nerasprostrane- nie-omu-mery-doveriya 46. Official website of the Ministry of Foreign Affairs of the Republic of Kazakhstan http:// www.mfa.kz/ru/content-view/sotrudnichestvo-respubliki-kazakhstan-s-oon 47. The State Program for Infrastructure Development “Nurly Zhol” for 2015 - 2019 48. Investor’s Guide. The Republic of Kazakhstan. 49. N.A. Nazarbayev The era of independence. - Astana, 2017. - 508 p. 50. Data of the Ministry for Investment and Development of the Republic of Kazakhstan 51. Report of the Minister for Investment and Development “On issues of transit, logistics and roadside service” as of June 27, 2017. 52. What does the new terminal of Astana airport look like. https://tengrinews.kz/ kazakhstan_news/kak-vyiglyadit-novyiy-terminal-aeroporta-astanyi-319209/ 53. Report of the Minister for Investment and Development of the Republic of Kazakhstan at the meeting of the Government on issues of further development of civil aviation dated January 23, 2018.
101
Royal Academy of Economic and Financial Sciences
PUBLICATIONS OF THE ROYAL ACADEMY OF ECONOMIC AND FINANCIAL SCIENCES
Publications available on our website: www.racef.es Publications available in our channels of Youtube & Vimeo
Report The Republic of Kazakhstan Publications of the Royal Academy of Economic and Financial Sciences PUBLICATIONS OF THE OBSERVATORY OF ECONOMIC AND FINANCIAL RESEARCH
M-24/11 Nuevos mercados para la recuperación económica: Azerbaiyán. M-30/12 Explorando nuevos mercados: Ucrania, 2012. (Incluye DVD con textos en ucraniano), 2012. M-38/15 Desarrollo de estrategias para la cooperación económica sostenible entre España y México, 2015. M-41/16 Cuba a la luz de la Nueva Ley de Inversiones Extranjeras: Retos y oportunidades para la economía catalana, (Estudio elaborado por el Observatorio de Investigación EconómicoFinanciera), 2016. MO-47/16 Colombia: la oportunidad de la paz. Estudio sectorial para la inversión de empresas españolas en el proceso de reconciliación nacional (Estudio del Observatorio de Investigación Económico-Financiera de la RACEF). MO-50/17 La gestión y toma de decisiones en el sistema empresarial cubano. Gil Lafuente, Anna Maria; García Rondón, Irene; Souto Anido, Lourdes; Blanco Campins, Blanca Emilia; Ortiz, Torre Maritza; Zamora Molina, Thais. MO-52/18 Efectos de la irrupción y desarrollo de la economía colaborativa en la sociedad española. Gil-Lafuente, Anna Maria; Amiguet Molina, Lluís; Boria Reverter, Sefa; Luis Bassa, Carolina; Torres Martínez, Agustín; Vizuete Luciano, Emilio. MO-53/19 Índice de equidad de género de las comunidades autónomas de España: Un análisis multidimensional. Gil-Lafuente, Anna Maria; Torres Martínez, Agustín; Boria Reverter, Sefa; Amiguet Molina, Lluís. MO-54/19 Sistemas de innovación en Latinoamérica: Una mirada compartida desde México, Colombia y Chile. Gil-Lafuente, Anna M.; Alfaro-García, Víctor G.; Alfaro-Calderón, Gerardo G.; Zaragoza-Ibarra, Artemisa; Goméz-Monge, Rodrigo; Solís-Navarrete, José A.; Ramírez-Triana, Carlos A.; Pineda-Escobar, María A.; Rincón-Ariza, Gabriela; Cano-Niño, Mauricio A.; Mora-Pardo, Sergio A.; Nicolás, Carolina; Gutiérrez, Alexis; Rojas, Julio; Urrutia, Angélica; Valenzuela, Leslier; Merigó, José M. MO-56/19 Kazakhstan: An Alliance or civilizations for a global challenge. Ministry of National Economy of the Republic of Kazakhstan – Institute of Economic Research; Royal Academy of Economic and Financial Sciences of Spain.
105 Report The Republic of Kazakhstan Publications of the Royal Academy of Economic and Financial Sciences OTHER PUBLICATIONS OF THE ROYAL ACADEMY OF ECONOMIC AND FINANCIAL SCIENCES
M-1/03 De Computis et Scripturis (Estudios en Homenaje al Excmo. Sr. Dr. Don Mario Pifarré Riera), 2003. M-2/04 Sesión Académica de la Real Academia de Ciencias Económicas y Financieras en la Académie du Royaume du Maroc (Publicación del Solemne Acto Académico en Rabat el 28 de mayo de 2004), 2004. M-3/05 Una Constitución para Europa, estudios y debates (Publicación del Solemne Acto Académico del 10 de febrero de 2005, sobre el “Tratado por el que se establece una Constitución para Europa”), 2005. M-4/05 Pensar Europa (Publicación del Solemne Acto Académico celebrado en Santiago de Compostela, el 27 de mayo de 2005), 2005. M-5/06 El futuro de las relaciones euromediterráneas (Publicación de la Solemne Sesión Académica de la R.A.C.E.F. y la Universidad de Túnez el 18 de marzo de 2006), 2006. M-6/06 Veinte años de España en la integración europea (Publicación con motivo del vigésimo aniversario de la incorporación de España en la Unión Europea), 2006. M-7/07 La ciencia y la cultura en la Europa mediterránea (I Encuentro Italo-Español de la Real Academia de Ciencias Económicas y Financieras y la Accademia Nazionale dei Lincei), 2007. M-8/07 La responsabilidad social de la empresa (RSE). Propuesta para una nueva economía de la empresa responsable y sostenible, 2007. M-9/08 El nuevo contexto económico-financiero en la actividad cultural y científica mediterránea (Sesión Académica internacional en Santiago de Compostela), 2008. M-10/08 Pluralidad y unidad en el pensamiento social, técnico y económico europeo (Sesión Académica conjunta con la Polish Academy of Sciences), 2008. M-11/08 Aportación de la ciencia y la cultura mediterránea al progreso humano y social (Sesión Académica celebrada en Barcelona el 27 de noviembre de 2008), 2009. M-12/09 La crisis: riesgos y oportunidades para el Espacio Atlántico (Sesión Académica en Bilbao), 2009. M-13/09 El futuro del Mediterráneo (Sesión Académica conjunta entre la Montenegrin Academy of Sciences and Arts y la Real Academia de Ciencias Económicas y Financieras, celebrada en Montenegro el 18 de mayo de 2009), 2009. M-14/09 Globalisation and Governance (Coloquio Internacional entre la Real Academia de Ciencias Económicas y Financieras y el Franco-Australian Centre for
106 Report The Republic of Kazakhstan Publications of the Royal Academy of Economic and Financial Sciences
International Research in Management Science (FACIREM), celebrado en Barcelona los días 10-12 de noviembre de 2009), 2009. M-15/09 Economics, Management and Optimization in Sports. After the Impact of the Financial Crisis (Seminario Interncional celebrado en Barcelona los días 1-3 de diciembre de 2009), 2009. M-16/10 Medición y Evaluación de la Responsabilidad Social de la Empresa (RSE) en las Empresas del Ibex 35, 2010. M-17/10 Desafío planetario: desarrollo sostenible y nuevas responsabilidades (Solemne Sesión Académica conjunta entre l’Académie Royale des Sciences, des Lettres et des BeauxArts de Bélgica y la Real Academia de Ciencias Económicas y Financieras de España, en Bruselas el día 8 de Junio de 2010), 2010. M-18/10 Seminario analítico sobre la casuística actual del derecho concursal (Sesión Académica celebrada el 4 de junio de 2010), 2010. M-19/10 Marketing, Finanzas y Gestión del Deporte (Sesión Académica celebrada en la Real Academia de Ciencias Económicas y Financieras en diciembre de 2009). 2010. M-20/10 Optimal Strategies in Sports Economics and Management (Libro publicado por la Editorial Springer y la Real Academia de Ciencias Económicas y Financieras). 2010 M-21/10 El encuentro de las naciones a través de la cultura y la ciencia (Solemne Sesión Académica conjunta entre la Royal Scientific Society de Jordania y la Real Academia de Ciencias Económicas y Financieras de España, en Amman el día 8 de noviembre de 2010). 2010. M-21B/10 Computational Intelligence in Business and Economics (Proceedings de MS´10 International Conference celebrada en Barcelona los días 15-17 de julio de 2010). Edición de World Scientific, 2010. M-22/11 Creación de valor y responsabilidad social de la empresa (RSE) en las empresas del IBEX 35. 2011. M-23/11 Incidencia de las relaciones económicas en la recuperación económica del área mediterránea (VI Acto Internacional celebrado en Barcelona el 24 de febrero de 2011), (Incluye DVD con resúmenes y entrevistas de los ponentes) 2011. M-25/11 El papel del mundo académico en la sociedad del futuro (Solemne Sesión Académica en Banja Luka celebrada el 16 de mayo de 2011), 2011. M25B/11 Globalisation, governance and ethics: new managerial and economic insights (Edición Nova Science Publishers), 2011. M-26/12 Decidir hoy para crear el futuro del Mediterráneo (VII acto internacional celebrado el 24 de noviembre de 2011), 2012. M-27/12 El ciclo real vs. el ciclo financiero un análisis comparativo para el caso español. Seminario sobre política anticíclica, 2012.
107 Report The Republic of Kazakhstan Publications of the Royal Academy of Economic and Financial Sciences
M-28/12 Gobernando las economías europeas. La crisis financiera y sus retos. (Solemne Sesión Académica en Helsinki celebrada el 9 de febrero de 2012), 2012. M-29/12 Pasado y futuro del área mediterránea: consideraciones sociales y económicas (Solemne Sesión Académica en Bejaia celebrada el 26 de abril de 2012), 2012. M-31/13 Why austerity does not work: policies for equitable and sustainable growth in Spain and Europe (Conferencia del académico correspondiente para Estados Unidos, Excmo. Sr. Dr. D. Joseph E. Stiglitz, Pronunciada en Barcelona en diciembre de 2012), 2013. M-32/13 Aspectos micro y macroeconómicos para sistemas sociales en transformación (Solemne Sesión Académica en Andorra celebrada el 19 de abril de 2013), 2013. M-33/13 La unión europea más allá de la crisis (Solemne Sesión Académica en Suiza celebrada el 6 de junio de 2013), 2013. M-33B/13 Decision Making Sytems in Business Administration (Proceedings de MS’12 International Conference celebrada en Río de Janeiro los días 10-13 de diciembre de 2012). Edición de World Scientific, 2013. M-34/14 Efectos de la evolución de la inversión pública en Educación Superior. Un estudio del caso español y comparado (Trabajo presentado por la Sección Primera de la Real Academia de Ciencias Económicas y Financieras), 2014. M-35/14 Mirando el futuro de la investigación científica (Solemne Acto Académico Conjunto celebrado en Bakú el 30 de mayo de 2014), 2014. M-36/14 Decision Making and Knowledge Decision Support Systems (VIII International Conference de la RACEF celebrada en Barcelona e International Conference MS 2013 celebrada en Chania Creta. Noviembre de 2013). Edición a cargo de Springer, 2014. M-37/14 Revolución, evolución e involución en el futuro de los sistemas sociales (IX Acto internacional celebrado el 11 de noviembre de 2014), 2014. M-39/15 Nuevos horizontes científicos ante la incertidumbre de los escenarios futuros (Solemne Acto Académico Conjunto celebrado en Cuba el 5 de mayo de 2015), 2015. M-40/15 Ciencia y realidades económicas: reto del mundo post-crisis a la actividad investigadora (X Acto Internacional celebrado el 18 de noviembre de 2015), 2015.
ME-42/16 Vivir juntos (Trabajo presentado por la Sección Tercera de la Real Academia de Ciencias Económicas y Financieras), 2016. MS-43/16 ¿Hacia dónde va la ciencia económica? (Solemne Acto Académico Conjunto con la Universidad Estatal de Bielorrusia, celebrado en Minsk el 16 de mayo de 2016), 2016.
108 Report The Republic of Kazakhstan Publications of the Royal Academy of Economic and Financial Sciences
MS-44/16 Perspectivas económicas frente al cambio social, financiero y empresarial(Solemne Acto Académico Conjunto con la Universidad de la Rioja y la Fundación San Millán de la Cogolla, celebrado en La Rioja el 14 de octubre de 2016), 2016. MS-45/16 El Comportamiento de los actores económicos ante el reto del futuro (XI Acto Internacional de la Real Academia de Ciencias Económicas y Financieras, celebrado en Barcelona el 10 de noviembre de 2016), 2016. MS-46/17 El agua en el mundo-El mundo del agua/ Water in the worldThe World of Water (Nueva Edición Bilingüe Español-Inglés del Estudio a cargo del Prof. Dr. Jaime Lamo de Espinosa, publicada con motivo del 150 aniversario de Agbar), 2017.
MS-48/17 El pensamiento económico ante la variedad de espacios españoles (solemne acto académico conjunto con la Universidad de Extremadura y la Junta de Extremadura celebrado los días 2-3 de marzo de 2017), 2017. MS-49/17 La economía del futuro en Europa. Ciencia y realidad. Calmîc, Octavian; Aguer Hortal, Mario; Castillo, Antonio; Ramírez Sarrió, Dídac; Belostecinic, Grigore; Rodríguez Castellanos, Arturo; Bîrcă, Alic; Vaculovschi, Dorin; Metzeltin, Michael; Verejan, Oleg; Gil Aluja, Jaime. MS-51/17 Las nuevas áreas del poder económico (XII Acto Internacional de la Real Academia de Ciencias Económicas y Financieras celebrado en Barcelona el 16 de noviembre de 2017), 2017. MS-53/18 El reto de la prosperidad compartida. El papel de las tres culturas ante el siglo XXI. Solemne acto académico conjunto con la Fundación Tres Culturas del Mediterráneo (Barcelona Economics Network). Askenasy, Jean; Imanov, Gorkmaz; Granell Trias, Francesc; Metzeltin, Michael; Bernad González, Vanessa; El Bouyoussfi, Mounir; Ioan Franc, Valeriu; Gutu, Corneliu. MS-54/18 Las ciencias económicas y financieras ante una sociedad en transformación. Solemne acto académico conjunto con la Universidad de León y la Junta de Castilla y León. Rodríguez Castellanos, Arturo; López González, Enrique; Escudero Barbero, Roberto; Pont Amenós, Antonio; Ulibarri Fernández, Adriana; Mallo Rodríguez, Carlos; Gil Aluja, Jaime. MV-01/18 La ciencia y la cultura ante la incertidumbre de una sociedad en transformación (Acto Académico de la Real Academia de Ciencias Económicas y Financieras en la Universidad de Tel Aviv celebrado el 15 y 16), 2018. MS-55/19 Desafíos de la nueva sociedad sobrecompleja: Humanismo, dataísmo y otros ismos (XIII Acto Internacional de la Real Academia de Ciencias Económicas y Financieras celebrado en Barcelona el 15 y 16 de noviembre de 2018), 2018.
109