COMPETITIVE STRATEGY MODEL AND ITS IMPACT ON MICRO BUSINESS UNIT OF LOCAL DEVELOPMENT BANKS IN JAWA PJAEE, 17 (7) (2020)

THE DEMOCRATIC AND AUTHORITARIAN MODELS OF PUBLIC DIPLOMACY (USA AND PRC) IN THE XXI CENTURY: OPTIONS FOR

Fatima Turarovna Kukeyeva Фатима Тураровна Кукеева1, Sean Brennan Associate2, Ramina Alipkyzy Рамина Алипкызы3Bekov Kairat Bakbergenovich4 1professor of IR Department,al-Farabi Kazakh National UniversityКазахский Национальный Университет им. аль-Фараби 2Professor of History University of ScrantonPhD student 3al-Farabi Kazakh National University Казахский Национальный Университет им. аль- Фараби Kazakhstan, Almaty, 050000, 95 Karasai batyr 4Беков Кайрат Бакбергенович IR Department, al-Farabi Kazakh National University Казахский Национальный Университет им. аль-Фараби

Klemi Subiyantoro,Ina Primiana Sagir,Aldrin Herwany,Rie Febrian. Competitive Strategy Model And Its Impact On Micro Business Unit Of Local Development Banks In Jawa-- Palarch’s Journal Of Archaeology Of Egypt/Egyptology 17(4), 470-484. ISSN 1567-214x

Keywords: public diplomacy, the US, China, Kazakhstan, models, state, non-state actors.

ABSTRACT: The article analyzes the issues of interaction between the government and civil society involved in the formation and implementation of the state public diplomacy. The new public diplomacy is based on the concept of “soft power” aimed at developing the country's attractiveness in the eyes of the foreign public, capable to influence on its governments in favor of a particular state. The authors of the article tried to answer the question of whether there is a real link between effective public diplomacy and the level of its democratization. An analysis of the assets and liabilities of two successful models of the United States and China public diplomacy showed that both ones are similar in goal setting, but differ in the composition of participants and the degree of their independence in the framework of general state policy. With the formation of its own public diplomacy, Kazakhstan can follow both the American and Chinese models. However, this depends on objective and subjective factors affecting the possibility of their adaptation to Kazakhstani realities.

89

COMPETITIVE STRATEGY MODEL AND ITS IMPACT ON MICRO BUSINESS UNIT OF LOCAL DEVELOPMENT BANKS IN JAWA PJAEE, 17 (7) (2020)

INTRODUCTION Modern processes of globalization have strengthened the role of civil society in the formation of foreign policy by different governments. Relations between states are moving from closed intergovernmental negotiations to an open dialogue with a large number of participants. New public diplomacy, especially in politically open countries involves widespread public participation, which leads to the democratization of this process, strengthens its effectiveness and is a consolidating factor in promoting the ideas and values of the country abroad.

Traditional diplomacy has always been directed against other governments and, as a rule, demanded absolute secrecy, but public diplomacy is by its nature open and requires a greater degree of transparency. This created the idea that public diplomacy is a tool that is easier and more successfully used in democratic countries, and not in authoritarian ones. High democratic standards create unprecedented opportunities for the state to draw potential allies into its sphere of influence. In the changed world political and communication contexts, a new approach was required. Public diplomacy, based on the principles of cooperation with non-state actors, two-way communication and the use of modern technologies, is called the New Public Diplomacy. This concept appeared as a predominantly academic term, but quickly became applied among practitioners” (Dolinskii 2011).

New public diplomacy is not just a tool to achieve short-term goals, but a new opportunity to promote and share country’s values, primarily with democracy and an open society.

Open, peaceful and transparent public diplomacy increases its appeal to a foreign audience, and the participation of non-governmental acts creates new channels of relationships at the people-to-people level. The tendency to diversify communication formats to create an attractive image is strengthening in the foreign policy of the modern state. Therefore, successful efforts in the formation and implementation of public diplomacy can be useful for developing countries like Kazakhstan, which are at the beginning of this path.

The authors of the article aim to identify the assets and liabilities of two models of public diplomacy (USA and China) through the prism of participation of state and non-state actors in it and to identify the possibility of using these models of the Republic of Kazakhstan. The involvement of non- state actors in public diplomacy was measured through mechanisms as legislation, institutionalization, instruments and mechanisms, and areas of cooperation.

The theoretical and practical significance of the study is determined by the relevance and the possibility of using the obtained generalizations and conclusions for applied purposes.

90

COMPETITIVE STRATEGY MODEL AND ITS IMPACT ON MICRO BUSINESS UNIT OF LOCAL DEVELOPMENT BANKS IN JAWA PJAEE, 17 (7) (2020)

LITERATURE REVIEW The interaction of state and non-state actors in the framework of public diplomacy is considered in theoretical and country-specific works. Remarks of J. Melissen that public diplomacy, by definition, is focused on dialogue with the foreign public, and not just on disseminating information are very important for analyses of the article issues. Melissen also emphasizes that dialogue between governments and citizens should be seen as a long-term perspective (Melissen 2005).

The study of the theory and practice of the US public diplomacy, as well as its components, is a separate research area of the foreign political science. Numerous studies demonstrate the reasons for the effectiveness of American public diplomacy, its main characteristics and the latest development trends (Lebedeva 2017, Tsvetkova 2015, Jan Melissen 2005, Manzhulina 2005).

Among foreign publications, a number of works reflect two main trends in PD: the complexity of research approaches and an in-depth study of the problems. The second trend is associated with the desire of the academic community in analyzing modern public diplomacy to rely not only on US practice, but also to analyze the experience of other countries (Kovba 2017, Kazbekova 2014, Krivokhizh 2012).

In this regard, the Chinese public diplomacy model has a number of characteristics that distinguish it from the classical "American" one, is of particular interest. The studies identify the assets and liabilities of China's public diplomacy, analyze its features and evolution. Experts also note that the achievements of China in the framework of public diplomacy do not entail automatic respect for the political course and socio-economic structure of the state (Lomanov 2015).

The issue of public diplomacy is not the subject of comprehensive study in Kazakhstani political science. Some works do not provide answers to a wide range of questions about how Kazakhstan should form and conduct its public diplomacy, using the best practices of other countries.

A review of Kazakhstani literature indicates the practical absence of research aimed at studying the interaction of the state with non-state actors for the effective implementation of the goals and objectives of public diplomacy of the Republic of Kazakhstan.

This article is an attempt to fill this gap in terms of promoting the ideas and values of the country abroad.

THEORIES When analyzing the problems stated in the article we turn to the theory of “soft power”, which J. Nye, an American political scientist, defined as the ability to achieve the desired not by coercion or bribery, but by means of attractiveness. He describes public diplomacy as a communication

91

COMPETITIVE STRATEGY MODEL AND ITS IMPACT ON MICRO BUSINESS UNIT OF LOCAL DEVELOPMENT BANKS IN JAWA PJAEE, 17 (7) (2020)

mechanism, a tool to increase attractiveness of a country, and by doing so strengthen its authority (Nye 2008). “Soft power” as the ability of the state to shape the preferences of other countries is based on three most important components: the culture of the state, its political values and its foreign policy. Public diplomacy aims to transfer (broadcast or sell) these three components to other countries.

In order to understand the phenomenon of public diplomacy in connection with democratization, it is necessary to first comprehend the theoretical approach of constructivism. Followers of constructivism question the critical importance of material factors in achieving their ultimate goals. For constructivism, an intersubjective dimension based on an understanding of the “other” culture and traditions of the “others” and the diversity of the world are important. The basis for creating stable interstate relations lies in the understanding that is achievable through public diplomacy. Constructivists believe that public diplomacy is based on the interaction of civil societies and, in general, the degree of their development, i.e. the ability of the government to build civil societies on democratic principles (Saurugger 2013).

The possibilities of public diplomacy are being actively researched by specialists in marketing and political communication. The combination of the principles of public diplomacy and marketing laws in promoting the country's values and achievements has made the image of the state a product that needs to be sold to a foreign audience. The image of the government became known as the national brand, and “soft power” became its key constructive force (Pamment 2013).

Thus, the interaction of state and non-state actors within the framework of constructivism is an important factor in the conceptualization of public diplomacy of a modern democratic country, indeed, it is perhaps the most important factor.

The main method used by the authors is a comparative analysis, which allowed to compare various models of interaction between state and non-state actors, as well as to identify their competitive advantages and disadvantages when conducting public diplomacy of the countries. Institutional sub-bases allow to analyze mechanizms of the public diplomacy realization. The authors of the articles used the case study method, which illustrates the process of realizing the public diplomacy through the complementary government and civil society actions in the Western and Eastern societies

MODELS Public diplomacy started to be studied from the early periods of the Cold War, but the differences between its models are poorly developed in modern international relations. One of the most interesting is the well-known Gilboa formula (2000, 2001), which includes three models of public diplomacy: the basic model of the Cold War, the model of internal public relations and the model of non-state transnational cooperation (Gilboa 2008).

92

COMPETITIVE STRATEGY MODEL AND ITS IMPACT ON MICRO BUSINESS UNIT OF LOCAL DEVELOPMENT BANKS IN JAWA PJAEE, 17 (7) (2020)

In the first model, states used public diplomacy with regards to antagonistic relations with other countries in order to achieve long-term results in foreign societies. In the second model the government of one country hires PR companies and even lobbyists in the target country to form country’s image abroad. (Gilboa 2008). The third transnational model involves conducting public diplomacy by various state and non-state actors in different countries. These actors typically use social networks, news resources, interactive media platforms, etc.

The authors of the article used this model for a comparative analysis of the American and Chinese models, considering the possibility of their adaptation to Kazakhstani realities.

Mechanism for the formation of public diplomacy In order to conduct effective public diplomacy that complies with the principles of democracy, it is necessary to determine the idea of its methods, tools and institutions. The instruments of public diplomacy are oriented both to long-term and short-term goals. Short-term mostly include, for example, the media and are effective for achieving quick results. The creation of cultural and educational programs and scientific cooperation are aimed at the implementation of long-term tasks. Workable mechanisms of public diplomacy include: engaging a foreign public by explaining state’s policies and or points of view; engaging a foreign public by facilitating the export of a culture such as artistic works or language; attracting a foreign public by facilitating direct contacts between their own people and foreign society; attracting a foreign audience by providing news. The choice of various means and methods of public diplomacy also depends on the available resources - economic, information, etc.

The most effective mechanism is networked public diplomacy, which allows non-state actors to be considered as partners, and not just as a repeater of messages generated by the government. Hierarchical communication flows are replaced by multidirectional flows of information that are not directly directed to the political elite. This is a democratic model of interaction between the state and civil society involved in the formation and implementation of public diplomacy.

U.S. PUBLIC DIPLOMACY ASSETS The most relevant and obvious example largely successful public diplomacy on the democratic model is from the United States of America. The tools, methods, and institutions for the implementation of American public diplomacy are in many cases connected both with democratic processes in domestic politics and with the promotion of democracy in foreign ones. Supporting the participation of American civil society in the formation and conducting public diplomacy by the US government allows for effective promotion certain ideas and values that are understandable and attractive to a wide foreign audience (Nye 2004, 11).

Legislation and Institutes. In the US, the two formal institutes dealing with the public diplomacy. The first is the Bureau of Education and Culture of the US

93

COMPETITIVE STRATEGY MODEL AND ITS IMPACT ON MICRO BUSINESS UNIT OF LOCAL DEVELOPMENT BANKS IN JAWA PJAEE, 17 (7) (2020)

Department of State, which manages the Fulbright program, English language study programs, scholarships for citizens of CIS countries, enhancing the prestige of American higher education, the department of civil exchanges, the program for the protection of cultural property, distribution of American works of art, etc. The second is the US State Department’s Undersecretary of State for Public Diplomacy and Public Affairs, the Successor to the United States Information Agency after 1999. These two branches of the State Department coordinate America’s ‘official’ public diplomacy, although there are plenty of institutions which provide ‘unofficial’ public diplomacy that act as informal methods for the spread of soft power as well, such as: philanthropic and sponsorship organizations. Hollywood, the media, music, etc. (ECA, Trofymenko 2014).

The law on assistance to other countries states that among the means of creating a democratic and free society abroad are international exchanges and other forms of public diplomacy. Statutory support for non-governmental organizations, independent media, etc. is directly related to public diplomacy (Note 1). The dissemination of freedom, democracy and human rights is included in the list of tasks of the State Department in the field of public diplomacy (Note 2). In particular, USAID (from 1953 to 1999), the Department of State, the National Endowment for Democracy, as well as other entities directly or indirectly associated with the government, participate in financing such activities. For example, the National Endowment for Democracy, established by the US Congress in 1983, operates in 90 countries (NED).

According to the United States basic foreign policy principle special attention in the framework of public diplomacy is given to supporting democratic reforms. The main tools for this purpose are the awarding of grants, the organization of research, meetings, and student and community exchange programs. Other important non-governmental target groups are independent media, analytical and research institutions, and more recently, individual social media activists and bloggers (Dale 2009).

The main feature of the US legislative base is, on the one hand, its flexibility, which consists in the fact that legislative acts are adopted annually, which means that it is possible to quickly respond to changes in the world. On the other hand, the USA legislatively included non-governmental structures in the mechanisms of its state public diplomacy.

Directions. The main directions of the American public diplomacy are: the US government and foreign civil societies (Government to Public; G2P), as well as civil society (USA) and civil society (foreign countries (Public to Public- P2P) (Snow, Taylor 2008).

In general, each of the directions has as its goal winning the support of populations abroad, which could exert pressure / influence on its government in order to adopt friendly policies towards a country using public diplomacy. First direction (US government and overseas civil society/ G2P). Currently, the US diplomatic service has various kinds of tools for carrying out actions in

94

COMPETITIVE STRATEGY MODEL AND ITS IMPACT ON MICRO BUSINESS UNIT OF LOCAL DEVELOPMENT BANKS IN JAWA PJAEE, 17 (7) (2020)

the direction of public diplomacy: personal meetings and communication of US politicians with various representatives of government agencies and the public, which allow to obtain information from the source; communication with the press, participation in interviews, briefings, press conferences, which convey to the public an official point of view on a particular issue, directly clarify the state’s policy in a particular area and provide answers to questions of interest to the public; work with printed information implies that the American embassies are constantly releasing press releases that inform about interesting and important events organized by the embassy, about visits and significant events that took place in the country. An example is the Washington File, which has been distributed since 1935. The Washington File prints the full text of statements and speeches by officials, transcripts of press conferences and briefings held at the White House, the State Department and other US government institutions (Manzhulina 2005). Digital diplomacy is associated with the rapid development of Internet communications, which form effective ways of communicating with foreign audiences in a constantly complicated, accessible and democratized global communication environment. Circular diplomacy enables state and non-state actors to quickly voice their position to a large foreign audience at low cost, in a short time to extract feedback from the public and respond flexibly by changing the content of their diplomatic activities.

The second direction (civil society (USA) and civil society (foreign country/ P2P). The increased activity of non-state actors in connection with the development of civil society indicates the democratization of public diplomacy: representatives of American NGOs, public associations, business communities, dialogue platforms, etc. They are not simple agents of state policy, but act as independent entities (Mellissen 2005).

This corresponds to the modern form of international relations, in which non- state actors play an important role, as well as the theory of new public diplomacy, which, in particular, emphasizes their importance in shaping the country's foreign policy. In addition, representatives of civil society conduct social diplomacy, which is solved outside the country. The effectiveness and scale of relief organizations also reflect the country's image and brand (Maheswaran 2008). Inclusion of non-state actors in to state diplomacy is achieved by providing them with the role of advisory, expert or advisory bodies for the State Department (ISAB (a)). They participate in official meetings, give opinions on projects or official documents, supplement the speeches of governments or statements in the field of development assistance, humanitarian, cultural exchange, business and so on. Thanks to their political independence from the state, non-governmental organizations can conduct their own international policies at all stages of its creation (setting goals, policies, decision making, implementation). They influence the behavior of their countries, initiating formal actions based on the law, which should be understood as exerting some pressure (ISAB (b)).

In the post-bipolar period, non-state actors were actively involved in creating among the new political and economic elites in the former Soviet satellites and republics a loyalty to the American model. Cultural and educational programs,

95

COMPETITIVE STRATEGY MODEL AND ITS IMPACT ON MICRO BUSINESS UNIT OF LOCAL DEVELOPMENT BANKS IN JAWA PJAEE, 17 (7) (2020)

centers, clubs have worked and are working in these countries in order to attract talented youth, academic workers and active representatives of civil society to democratic values, a market economy and human rights.

Today the US international educational programs are the most important instrument of public diplomacy and contribute to some change in the vector of foreign public opinion about the United States for the better. The US State Department offers a wide range of programs for representatives of various age and professional groups, separately highlighting potential leaders of foreign countries. The introduction of various programs of international development and cooperation, international exchanges, educational programs and other projects aimed at strengthening ties between Americans and representatives of other nations promotes the phenomenon of networked diplomacy between private citizens. Today, the US international educational programs remain the most important instrument of public diplomacy and contribute to a change in the vector of foreign public opinion about the United States for the better. The State Department offers a wide range of programs for representatives of various age and professional groups, separately highlighting potential leaders of foreign countries. Exchange programs fulfill several tasks: in addition to expanding knowledge, acquaintance with American state institutions, educational traditions, political, economic and social principles, exchange programs stimulate development, establish contacts, and establish professional and personal relationships.

Instruments of influence are the world's most developed film industry, popular music, contemporary art and literature, which effectively promote American values and fight stereotypes (Polovina 2015). In those parts of the world where the State Department considers it inappropriate to conduct cultural diplomacy programs, the United States Peace Corps is working, which at the beginning of the XXI century remains one of the most important tools of public diplomacy in almost all regions of the world.

Also, to promote their own brand, the US actively uses English. There are special English language departments at US embassies that offer language courses and other opportunities to open the US with American English. In addition, there are numerous sites for learning English with American characteristics. Materials for the study are based on informing students about the culture of the United States and the formation of a positive image of the country.

Since 2009, the Obama Administration used experts in the field of public diplomacy implementing policies aimed at changing the image of the United States in Islamic countries. Islamic media are developing the idea of Western society and culture as a dehumanized world of commerce, creating the ground on which anti-American sentiment prevails in the Islamic world. A favorable and objective view of the United States in foreign media is one of the most important tasks of American public diplomacy (Tsvetkova 2017).

One of the areas of official public diplomacy in the United States includes countering damage to the American image on the Internet, combating

96

COMPETITIVE STRATEGY MODEL AND ITS IMPACT ON MICRO BUSINESS UNIT OF LOCAL DEVELOPMENT BANKS IN JAWA PJAEE, 17 (7) (2020)

extremism, and monitoring social networks. Since 2006, the American government greatly expanded its efforts in this area, constantly expanding and improving the structures and methods used, notably, a number of digital diplomacy offices deal exclusively with social networks and network communities. For example, the Electronic Communications Center is responsible for supporting several platforms of the State Department’s social networks for formal discussions, such as the DipNote blog, and the State Department’s official Facebook and Twitter pages. Workers in this sector support Twitter channels in many languages of the world (Hansen 2012).

Also, in the structure of public diplomacy in the United States there is, in the State Department, a special section dedicated to politics, planning and resources, which is responsible for monitoring the implementation of the objectives of the public diplomacy carried out through social networks in order to prevent information leakage. Similar departments were created in the CIA, the Pentagon, as well as the Agency for International Cooperation. In particular, the CIA created the Open Source Center department, which performs daily analysis and tracking of foreign online publications of newspapers and magazines and immediately responds to negative information about the United States. The department distributes its “answers” through social networks and bloggers. The interaction of US government with civil society of foreign countries is aimed at solving the main tasks: to inspire the confidence of foreign citizens in US policy; inform foreign citizens about the American way of life and promote a widespread perception of this image (Manzhulina 2005).

As part of the American public diplomacy, the activities of public actors are funded by the state. The United States Agency for International Development is the main body of expenditure under this heading. The financial support of the state occurs mainly through various non-governmental structures, funds and organizations, as well as through the Information Agency. This is a recognition of non-governmental organizations as part of the resources of state soft power.

Thus, the main characteristic of public diplomacy in the United States is the combined efforts of governmental and non-governmental actors in order to promote a positive image of the country abroad. The American model demonstrates the democratic nature of the public diplomacy.

ASSETS AND LIABILITIES OF CHINESE PUBLIC DIPLOMACY In modern international relations, the People's Republic of China is on the forefront of the world politics, challenging traditional players, such as the United States, the countries of the European Union and Japan, as well as the rising powers of Brazil, India, and Russia. There is every reason to believe that China will soon become not only one of the first economies in the world, but also a recognized leader in public diplomacy, an integral element of the foreign policy of any major power in the XXI century.

According to the survey of a well-known research body “Kantar Millward Brown и Lightspeed” in 2016-2017 «China’s overall image is steadily

97

COMPETITIVE STRATEGY MODEL AND ITS IMPACT ON MICRO BUSINESS UNIT OF LOCAL DEVELOPMENT BANKS IN JAWA PJAEE, 17 (7) (2020)

improving internationally. China scores 6.22 on the 10-point system of its overall image, maintaining a slight upward curve in recent years…Overseas respondents are optimistic about China’s future development. Those in developed and developing countries both believed that China’s international status and global influence would continue to grow, and that China would lead the new round of globalization and contribute more to global governance» (Kantar 2018).

At the same time, the world is concerned about the economic, political and military upsurge of China, its global plans, human rights violations and the increasingly deteriorating environmental situation. For this reason, the Chinese leadership strives to use the tools of public diplomacy in order to create a positive image of the country: China as a trustworthy, cooperating, peace-loving, developing country that cares about its huge population; China, which is building a “harmonious society” at home and contributing to a peaceful and “harmonious world” as a responsible player in international affairs (d’Hooghe 2005).

Current public diplomacy should not only strengthen the legitimacy of the Communist Party, but also improve the country's image and attract foreign investment.

The issue of democracy in Chinese public diplomacy. The Chinese model of public diplomacy, for objective and subjective reasons, differs from the American model in terms of the degree of democratization of its formation and realization.

In the academic environment of China, there are two points of view on the formation of a national public diplomacy model. Supporters of the defensive line of public diplomacy as the main argument put forward the thesis about the necessity to improve the image of China in the international arena and the fight against such a phenomenon as "sinophobia." Their opponents believe that the Beijing Consensus proposed by the world could be a worthy alternative to the American model, especially in emerging and developing countries (Glaser 2009).

Both directions are designed to create a positive image of China in the eyes of a foreign audience. This process involves not only official state actors, but also non-state actors, the number of which is growing and expanding opportunities for dialogue with representatives of foreign civil societies. The NGO sector in China is allowed to exist by the regime and exerts an increasingly important influence on policy-making in various fields, but is nevertheless restricted and controlled by the government (d’Hooghe 2007).

Legislation. Official government sites lack information on the law on public diplomacy. However, it is known that public diplomacy, as part of soft power, was included on the agenda of the 17th Communist Party of China Congress. At the congress, the tasks of purposefully building “soft power” in China were put forward: “to create a system of core socialist values̆ , to increase the attractive and cementing forces of socialist ideology”; “To form a harmonious

98

COMPETITIVE STRATEGY MODEL AND ITS IMPACT ON MICRO BUSINESS UNIT OF LOCAL DEVELOPMENT BANKS IN JAWA PJAEE, 17 (7) (2020)

culture, to cultivate civilized morals”; “Widely disseminate national culture, build a common spiritual center of the Chinese nation”; "Promote innovation in culture, strengthen the vitality of culture” (China.org.cn).

The Сhinese doctrinal basis of the “Soft Power” includes the following foreign policy concepts: “Peaceful rise of China” (2003), the idea of the Beijing Consensus (2004), the doctrines of the “China’s peaceful Development” and the “Harmonious World of Shared Prosperity” (2004-2005 .), the concept of "China Dream" (2012) (Naumov, Polozhevich 2018).

Institutes. Chinese public diplomacy is conducted on an official and semi- official institutional basis. In accordance with these main areas are interaction along the lines of State - Chinese society-civil society of foreign countries and the general PRC - foreign society. Moreover, the Communist Party acts as the sole curator and ideologist of this interaction. Implementation of the public diplomacy is carried out at the Central Party School of the CPC Central Committee, the CPC Publicity Department, and also in the Department of International Relations of the CPC Central Committee. The Chinese strategy of “soft power” is also formed by the State Council of the PRC, and a number of specialized ministries are responsible for the direct implementation of its individual areas

The institutionalization of the public diplomacy of the PRC is associated with its formation in the early 2000s. The main structures involved in the development and decision-making in the field of public diplomacy were the Foreign Propaganda Department of the Communist Party of China and the Press Office of the State Council of the PRC. In addition, the Ministry of Foreign Affairs of the PRC plays an important role in the implementation of public diplomacy events, at which the Department of Public Diplomacy was opened in 2004. Since cultural and educational exchanges and events are an integral part of the country's public diplomacy, the Ministry of Culture and the Ministry of Education can also be attributed to the Chinese public diplomacy system (Brady 2006).

Despite the state-centric model of the PRC public diplomacy, since the late 1990s Chinese civil society is slowly developing, with its own contribution to Chinese public diplomacy (Xijing 2012). In consideration of the lack of independence, these ‘non-state actors with Chinese characteristics’ do distinguish themselves from the ‘state actors’ by three factors. Most NGOs, in particular the ‘younger’ ones, are: (1) not initiated by the state; (2) not operated by the state; and (3) they aim to serve their own societal or commercial interests.

The non-state groups that have an impact on China’s image abroad include academics and (transnational) epistemic communities; NGOs; overseas Chinese communities; friendship associations; twin sister organizations; students; and tourists.

In addition, specialized structures make a significant contribution to the implementation of China's public diplomacy: Office of Language Council

99

COMPETITIVE STRATEGY MODEL AND ITS IMPACT ON MICRO BUSINESS UNIT OF LOCAL DEVELOPMENT BANKS IN JAWA PJAEE, 17 (7) (2020)

International (Hanban), the Association of Public Diplomacy, the Chinese Council for the Promotion of International Trade, the Chinese Scholarship Council, the All-China Federation of Industry and Commerce, the Chinese Promotion Council international investment. Recommendations for the successful use of soft power tools by China are also being carried out by specialized think tanks: Guangdong Southern Institute of Soft Power Research (established in 2012), State Innovation Center for Joint Research of Soft Power of Chinese Culture (established in 2013 on the basis of Wuhan University), State Center for Research on the “Soft Power” of Chinese Culture (established in 2014 at the Institute of International Relations of Beijing University). In addition to the above institutions, in the PRC there are several hundred “think tanks”, to one degree or another dealing with economic, cultural, sports, educational diplomacy of the country (Tarabako 2016).

The number of state (government and party) institutions as well as public institutions that are responsible for interacting with overseas Chinese citizens on various issues are among the institutions conducting the China’s public diplomacy: the Committee of the All-China Assembly of PRC, the Office for Foreign Affairs Chinese (directly subordinated to the State Council of the PRC), Information Office of the State Council of the PRC, Committee on Relations with Hong Kong, Aomin, Taiwan and Foreign Chinese of the All- China People’s Committee Chinese Political Advisory Council, China Party of Aspiration and Justice (Zhigundan Party, one of the nine official political parties in the PRC), All-China Federation of Returned Overseas Chinese (a public analogue of the Office for Foreign Chinese Affairs), World Federation of Ethnic Chinese (Dolzhnikova 2016). China public diplomacy is carried out by such public organizations as the Chinese People's Association for Friendship with Foreign Countries (CPAFFC), the China Association for NGO Cooperation (CANGO), the China Association for the Promotion of Democracy, the China World Peace Foundation (CWPF), and projects initiated directly by state-sponsored organizations fall into the category of public diplomacy bodies (Dolzhnikova 2016).

Thus, China’s public diplomacy is developing towards greater openness and delegation of part of its authority to non-state actors. However, in most cases, non-government organizations are excluded from the process of developing priorities for its implementation. Structures that enjoy relative “autonomy”, such as universities, participate in the implementation of decisions that have already been taken, however, they do not directly affect the development of state policy in the field of “soft power” and public diplomacy.

Directions. The first direction (state - Chinese public - civil society of foreign countries). Working with representatives of civil society in foreign countries, the state uses the following methods: analytical studies; popularization of traditional and modern Chinese culture; the spread of the Chinese language abroad and international scientific and educational cooperation; work with the foreign Chinese diaspora; the formation of a positive image of the Chinese socio- economic development model and its investment activity abroad; assistance to international development and crisis diplomacy. An example of the state-

100

COMPETITIVE STRATEGY MODEL AND ITS IMPACT ON MICRO BUSINESS UNIT OF LOCAL DEVELOPMENT BANKS IN JAWA PJAEE, 17 (7) (2020)

Chinese society direction is the PRC’s youth policy, which aims to offset the growing influence of Western culture and the Western way of life, which potentially threatens the socialist foundations of the PRC. The Chinese leadership today is making significant efforts to popularize the national culture and historical heritage of China, to increase the country's prestige in the eyes of its own citizens. This phenomenon has received the name "cultural boom" (Krivokhizh 2012).

In general, in Chinese society, the leading role of the state and the party in initiating and conducting public diplomacy, and, therefore, in building up the country's “soft power”, is not questioned by most Chinese citizens, under threat of legal harassment. At the same time, the full control of this sphere by the state is traditionally criticized by Western analysts. For example, Joseph Nye, in his article “What China and Russia Don’t Get About Soft Power “soft power, calls the leading role of the state the main minus of the “soft power” of China, since distrust of the country's leadership entails distrust of the entire event under its auspices (Nye 2013).

Chinese leaders, who seek to improve the image of the state and are developing new strategies to conduct their public diplomacy: to identify realistic goals and various key issues, to select target groups and to adjust each message to a specific audience. They use a wide range of public diplomacy tools. For example, public diplomacy projects to promote the “Belt and Road " initiative have as a goals: to dispel doubts and misunderstandings and increase the level of recognition of the program; strengthen mutual strategic trust among participating countries; the third is to spread among the global community the Chinese idea of a “human community of one destiny” (Kireyeva 2018).

The so-called “Panda diplomacy” is used by China in relation to the civil society of foreign countries. Its essence is that the PRC presents a large panda, a national symbol of the country, as a gift to a foreign state, thereby expressing its gratitude and respect. It is worth noting that this step helps strengthen bilateral relations and foster dialogue.

The second direction. (State - Chinese society-Civil society of the foreign countries). More and more activities in the field of public diplomacy are held outside the scope of state control. In China, a civil society is being formed, whose representatives are actively involved in establishing cooperation between societies. Personal diplomacy, international academic and business cooperation, as well as cultural events, have a growing impact on China’s world position. These people-to-people events are initiated and supervised by the government, but in most cases official participation is limited to granting permission. An example is the China People's Friendship Association with Foreign Countries (CPAFFC) and many other organizations, such as educational and cultural institutions, the media, women's and youth organizations, as well as academic and professional societies that organize exchanges and events between representatives of civil society. Until the late 1980s, activities at this level were almost completely initiated and organized by the state. But since the 1990s, a growing number of exchanges have taken

101

COMPETITIVE STRATEGY MODEL AND ITS IMPACT ON MICRO BUSINESS UNIT OF LOCAL DEVELOPMENT BANKS IN JAWA PJAEE, 17 (7) (2020)

place without much formal involvement, although in most cases, permission from the authorities is still necessary (CPFAFC, d’Hooghe 2007). Representatives of the China’s top universities and think tanks are increasingly involved in public diplomacy. In China there are epistemic communities oriented on specific issues — such as gender or environment — or on specific countries or regions. All these groups are increasingly engaged with international academic networks. They attend international conferences, frequently speak for foreign audiences and participate, often rather openly, in international debates and exchanges of information (Lu 2005). A feature of the people-to-people line is its focus not only on foreign recipients, but also on citizens of their country. For Chinese public diplomacy, building a harmonious society within the country and a harmonious world outside, under the party’s direction, it is seen as an interconnected process. Chinese policymakers note that through public diplomacy it is necessary to explain the policies of the PRC not only to foreigners, but also to compatriots. To explain the various political steps, lectures and meetings are held with representatives of the Ministry of Foreign Affairs, Internet discussions, conferences with the participation of prominent diplomats.

Mechanisms and Tools. In its public diplomacy, the Chinese leadership uses the same tools and methods as other states: media, publications, the Internet, development assistance, commercial transactions, as well as cultural and other events. By nature, Chinese public diplomacy it is primarily aimed at eradicating the myth of the “Chinese threat” and creating the image of a responsible world power. To solve this problem, the institutes of public diplomacy work in the following areas: cultural, educational and image-building. These areas are mainly are developing in the framework of network diplomacy.

Culture plays a special role in this process. The cultural approach postulates that the “soft” influence of the Celestial Empire should be based on traditional Chinese values, modified by the CCP in the concept of “harmonious society” and “harmonious peace” (Timofeyev 2009).

One of the effective mechanisms is the activity of Confucius institutions, which are associated with the popularization of the Chinese language. Since 2005, China has been implementing the “go abroad” policy announced by President Jiang Zemin. Over the years, a phenomenon has arisen in the world that can be called the “boom of the Chinese language”, which is associated primarily with the need to cooperate with the first (since 2014) world economy in terms of GDP. According to the State Chancellery for Spreading the Chinese Language Abroad in 2017, there are more than 40 million people studying the Chinese language (China.org.cn 2015). Since the founding of the first Confucius institution in Seoul, South Korea in 2004, more than 500 Institutes and more than 1,000 Confucius Classes have been created in almost 150 countries of the world, which indicates the exceptional ambitiousness of this project. The activities of Confucius institutions and Classes are regulated by the State Chancellery for the Distribution of the Chinese Language Abroad (Hanban), affiliated with the Ministry of Education of the PRC (China.org.cn 2015).

102

COMPETITIVE STRATEGY MODEL AND ITS IMPACT ON MICRO BUSINESS UNIT OF LOCAL DEVELOPMENT BANKS IN JAWA PJAEE, 17 (7) (2020)

International educational projects are the powerful resource of China’s public diplomacy. The PRC Ministry of Education and its supervised institutions as the China Scholarship Council and the Chinese Service Center for Educational Exchange, are carrying out large-scale work to attract foreign students to study in the PRC (CSC, CSCSE). In 2017, the number of foreign students in China reached 489.2 thousand, which provided the country with the third place in the world. It is expected that by 2020 this indicator will be at least 500 thousand people (Kapital 2019).

The Chinese have their own “Voice of China,” called China Radio International, with broadcasts in all the major languages of the world. Xinhua's official Chinese news agency provides services in English, and China State Television (CCTV) has expanded its international broadcasting for satellite TV subscribers. In addition to their own media, foreign media are increasingly used in Chinese public diplomacy. Many foreign correspondents are accredited in Beijing. On January 1, 2009, following the 2008 Olympics, China eased restrictions on foreign media, allowing journalists more freedom to conduct interviews and cover events throughout the country, including in Tibet. Foreign media abroad are also increasingly showing interest in cooperation projects with China or projects with China as a theme, as the BBC China Week in March 2005 showed.

In addition, China continues to leverage the power of the Internet. Many Chinese websites are designed specifically for public diplomacy and are controlled by the Information Bureau. They provide news and official information or focus on teaching the Chinese language and promoting Chinese culture (Note 3).

Major ministries have their own websites, like most national newspapers. Newspaper archives are easily accessible, and you can download new and old articles for free. In addition to the official sphere, there is an unofficial world of millions of Chinese bloggers. Some Chinese bloggers have become widely known in the world and, thus, contribute to the formation of China's image as a country with a vibrant culture (Note 4).

An effective tool for Chinese public diplomacy is its diaspora policy. The Chinese diaspora is one of the largest in the world, numbering, according to various estimates, from 35 to 50 million people. Millions of ethnic Chinese and their descendants have taken root in business, culture and politics around the world (Larin 2014). The diaspora policy of the PRC successfully combines its various models (repatriation, paternalistic, pragmatic), which allows transmitting its own “soft power” and Chinese values through representatives of Chinese communities abroad, as well as stimulating the most promising and useful Chinese for returning to their historical homeland, although there are limitations to this policy as some members of the diaspora are quite critical of the Chinese government. A poll conducted by BBC World, showed that 70 percent of respondents cited the lack of democracy, the growth of population, bureaucracy and corruption as the main obstacle to a positive image of China (BBC 2006).

103

COMPETITIVE STRATEGY MODEL AND ITS IMPACT ON MICRO BUSINESS UNIT OF LOCAL DEVELOPMENT BANKS IN JAWA PJAEE, 17 (7) (2020)

In the context of post-modern transnational relations, China’s public diplomacy is gradually changing towards attracting the public, and not just informing it. This means that Chinese public diplomacy is no longer limited to a hierarchical, state-oriented format. But the Chinese authorities are trying to control the process of conducting public diplomacy by non-state actors, especially on political issues.

Thus, despite advances in public diplomacy and an improved image over the past decade, China is trapped between its goal of improving its image abroad and the undemocratic nature of its public diplomacy, especially given the broad discontent in Hong Kong and elsewhere. However, practice shows China has many assets and liabilities for public diplomacy, they serve as an indicator for China’s future challenges and successes in this field.

KAZAKHSTAN ON THE WAY TO FORM ITS PUBLIC DIPLOMACY An analysis of the two models of public diplomacy of the United States and China showed that they are similar in terms of the goal-setting, but differ in the composition of the participants and the degree of their independence in the framework of this process. Both models have certain advantages that developing countries like Kazakhstan can use to democratize their public diplomacy.

Kazakhstan forms its public diplomacy in the context of the restructuring of the contemporary international system, the formation of its civil society and the development of new communication technologies. The support of the state’s policy by civil society is an important factor in the international legitimacy of Kazakhstan. Being one of the leading countries in Central Asia, it seeks to shape the image of a modern, open and investment-friendly country in the context of international transformation of the global world order.

According to the published index of country brands of the American company East West Global Nation Branding Index 200 for 2009, Kazakhstan took 28th place from 200 countries of the world and ranks first among the CIS countries with the most favorable international image (Bogоviyeva 2010).

Undoubtedly, the recognition of Kazakhstan in the world has increased thanks to political and economic reforms, natural resources and an original culture. However, these factors do not work equally for a positive perception by the foreign community of Kazakhstan. This is especially true for its efforts at democratization and a resource-oriented economy.

The Kazakhstani government needs to develop a strategy for the public diplomacy that allows it to realize its potential in this area, and create an attractive image of the country. To do this, it is necessary to set goals Kazakhstan public diplomacy; to find the place of democracy in the its formation; to evaluate the role of civil society in the process; to analyze consensus between state and non-state actors regarding the formation and conduct of public diplomacy and national identity values.

104

COMPETITIVE STRATEGY MODEL AND ITS IMPACT ON MICRO BUSINESS UNIT OF LOCAL DEVELOPMENT BANKS IN JAWA PJAEE, 17 (7) (2020)

Kazakhstan’s public diplomacy differs from that of most Western countries. Its approach is inherently centralized, with a desire to integrate into world international space. A multi-vector foreign policy expands the possibilities of attracting the interest of a wide foreign audience to Kazakhstan.

ASSETS AND WEAKNESSES. Legislation. Until 2019, the concept of public diplomacy was not present in Kazakh foreign policy documents or regulatory legal acts. In December 2019, the concept of “soft power” appears in a government document: “Kazakhstan is implementing its own concept of“ soft power ”... Kazakhstan is providing timely and complete information to the world community about its position on major international issues, foreign policy initiatives, political, socio-economic and cultural and humanitarian development of the state” (Note 5).

Thus, the value principles of the “soft power” concept, therefore, public diplomacy of the state are outlined: “The concept is based on such values as peaceful foreign policy, political and social stability, sustainable and dynamic economic growth, the effectiveness of the model of interethnic and interfaith harmony, attractiveness investment climate, ease of doing business, innovative education” (Note 5).

The appeal to soft power is associated with two important factors: the inaccessibility of hard power comparable to the great powers in the foreign policy of Kazakhstan and the desire to use existing assets to create a positive image of the country.

State Actors Like in most countries, Ministry of Foreign Affairs of Kazakhstan is the most important state actor in public diplomacy, as the organizer and conductor of national information transmitted to a foreign audience There is no special body that would systematically manage public diplomacy. Kazakhstan leaders also are important actors. Both President and Premier take time to address foreign audiences and include contacts with businessmen and ordinary people during their foreign visits.

The Assembly of Peoples of Kazakhstan is a semi-public institution capable of raising the image of Kazakhstan abroad. The Assembly today is a constitutional body headed by the President of the country, the guarantor of the Constitution. The main task of the APC is the implementation of state national policy. This is the only organization of its kind in the CIS, which ensures socio-political stability in the Republic of Kazakhstan and increases the effectiveness of interaction between state and civil society institutions in the field of interethnic relations. The activities of the Assembly (Note 6) contribute to the growth of the international authority of Kazakhstan as a country that effectively addresses issues of interethnic relations.

But this organization so far does not meet the requirements of modern public diplomacy. Despite the excellent work carried out by the embassies and the Ministry of Foreign Affairs, the insufficient development of other Kazakhstan missions abroad, organized by a network with the participation of non-state actors of civil society, reduces its effectiveness.

105

COMPETITIVE STRATEGY MODEL AND ITS IMPACT ON MICRO BUSINESS UNIT OF LOCAL DEVELOPMENT BANKS IN JAWA PJAEE, 17 (7) (2020)

Indeed, the lack of legislative and institutional foundations of Kazakhstan’s public diplomacy cannot contribute to the effective application of this organization. However, the country has resources (culture, education etc.) that can compensate this lack and to promote the development of public diplomacy as an integral part of the state’s foreign policy.

Non-state actors. The number of non-state actors involved in the public diplomacy of Kazakhstan and in strengthening its “soft power” is growing. Non-state actors are represented by business, cultural, scientific and educational institutions. In 2018 22 thousand NGOs are officially registered in Kazakhstan (24.kz). But among them there is no one officially collaborate with international and multilateral organizations, distribute their messages on English-language websites and in international publication, changing the image of Kazakhstan.

Tools. Most instruments used by Kazakhstan to conduct public diplomacy do not differ much from those used by other countries: the media, publications, internet, development aid, commercial deals, and cultural and other events.

Assets of Kazakhstan public diplomacy. Culture. The Kazakhstan cultural and historical heritage and modern achievements in this area are the fundamental resource of PD. Its assets include a unique fusion of cultures, traditions and customs of the steppe civilization, art, science, creating a dialogue of cultures of the modern Kazakhstan.

The nature of Kazakhstan is unique and diverse to attract both tourists and researchers. It is no coincidence that such a popular American publication as The Huffington Post recommends travelers to visit Kazakhstan. This rating included 17 places for an “epic” trip in 2017, where Kazakhstan ranks third, and also advises not to be just a tourist, but to be a researcher (Dzhanuzakova 2017). In order to develop tourism, the government adopted the new budget for 2015-2020, which provides for the annual allocation of budgetary funds for the formation of the tourist image of Kazakhstan (State program).

There are many stereotypes about Kazakhstan that have a negative effect on the country’s image abroad: the “Borat effect”, a negative comparison of Kazakhstan with other “stans” such as Afghanistan and Pakistan, a resource economy, corruption, etc. Therefore, for modern Kazakhstan, it is necessary to create a system of public diplomacy that would combine traditional views and new marketing approaches in order to achieve the desired effect. Culture should carry a recognizable element of the country's modern identity, which destroys stereotypical patterns. In this sense, for example, young talented singers (Dimash Kudaibergen), composers (Rakhat-Bi Abdysagin), directors (Aisultan Seitov), Rapper (Scryptonite) and others can become the best Kazakhstan's cultural ambassadors abroad.

However, the lack of consistency in Kazakhstan’s development of soft power and its part of public diplomacy reduces the cultural diplomacy effect. Cultural diplomacy is a result of cooperation between state and non-state

106

COMPETITIVE STRATEGY MODEL AND ITS IMPACT ON MICRO BUSINESS UNIT OF LOCAL DEVELOPMENT BANKS IN JAWA PJAEE, 17 (7) (2020)

actors and requires a coordination mechanism for its implementation in other countries.

Education, along with culture, is an asset of Kazakhstani public diplomacy. In the modern world, where competition takes on a cultural and civilizational dimension, a positive image of a country is created due to many factors, where education plays an important role.

Following the example of the United States and China, Kazakhstan provides educational services to foreign students. In 2018-2019 the number of foreign students in Kazakhstani universities was 23 thousand people, compared with 14 thousand in 2017-2018 (Pokidayev 2019).

Universities that provide education that meets international quality criteria can cope with this task. The main advantage of providing educational services in front of other political and economic instruments is the ability to influence the formation of values and perceptions of citizens of other countries, that is, the struggle for the minds of future elites.

Educational exchanges of the Republic of Kazakhstan should be aimed not only at attracting foreign students to universities in the country, but also at assisting Kazakhstani students in studying abroad, and for educators in teaching abroad. In this area, the Republic of Kazakhstan has unique experience in the Bolashak scholarship program, which allows citizens of Kazakhstan to receive an education at the best universities abroad with a prerequisite for the successful completion of studies and further work in Kazakhstan. To increase the competitiveness and popularization of Kazakhstani education, Nazarbayev University in the capital of Nur-sultan was opened with the latest technical base and invites lecturers from leading world universities (Note 7).

Professors from the leading universities, intellectuals in various think tanks, and prominent cultural figures are increasingly involved in promoting the image of Kazakhstan abroad. In Kazakhstan, there are various centers focused on specific problems or on specific countries or regions. They are published in international journals and are interviewed or quoted in major Western newspapers. They spread the idea of growing academic freedom, the multiplicity of thinking on international issues and the academic science of Kazakhstan, as an intellectual and scientific force to be reckoned with.

Diasporas. According to the World Association of Kazakhs, in 2018, over 5 million people representing the Kazakh diaspora live in 43 countries outside of Kazakhstan in 2018. The majority of them live in China, Mongolia, Turkey (Sabekov 2019).

In the public diplomacy assets, Kazakhstan can include an action plan of the Government on supporting ethnic Kazakhs abroad for 2018-2022. The plan provides the scholarship program for Kazakh diaspora representatives training at the Kazakhstan universities and colleges. To realize the program the government plans 47 million tenge in 2019, in 2020 - 219 million tenge, in

107

COMPETITIVE STRATEGY MODEL AND ITS IMPACT ON MICRO BUSINESS UNIT OF LOCAL DEVELOPMENT BANKS IN JAWA PJAEE, 17 (7) (2020)

2021 - 407 million tenge. About 19.2 million tenge will be sent to provide Kazakh schools and Kazakh cultural centers abroad with textbooks and teaching aids in the humanitarian field (Syzdykbayev 2018).

For more effective activities, government agencies need to actively support Kazakh cultural centers abroad, which were created on the initiative of the public and are well able to cope with the task of promoting the image of Kazakhstan and Kazakh spiritual values. Helping Kazakh diasporas abroad helps preserve their native language, culture, and traditions. Only then will the diaspora be a great force; they will have common interests and sympathy with us for our historical homeland. It is from this point of view that developed states value their diasporas and pay special attention to them.

The foreign policy resources of the Republic of Kazakhstan are determined by its geopolitical location. The Kazakhstan potential is evidenced by its international and domestic initiatives: Conference on Interaction and Confidence-Building Measures in Asia (CICA); Kazakhstan’s initiative to hold the International Congress of Leaders of World and Traditional Religions (SLMTR) International Interfaith Forum, which is regularly held in Astana and is called by Kazakh politicians the most important institution of global “spiritual diplomacy”; OSCE summit in Astana (2010); launching G-Global communication platform (2012); Astana club; “Kazakhstan-2050 Strategy: a new political course of a successful state”; an active position as a mediator to settle the Ukrainian and Syrian crises, etc.

Geopolitical location contributes to the "discovery" of Kazakhstan for the world through the realization of its transit potential, the revival of the Great Silk Road. In shaping the experience of Kazakhstani public diplomacy, it also should be noted the significant role of its participation in events at the sites of the "Turkic world" and annual meetings within the framework of the World Turkic Forum with the agenda to develop cultural and public diplomacy.

Kazakhstan integration policy is also an essential resource for the public diplomacy development. Nur-Sultan strives to use soft power tools to maintain its multi-vector foreign policy, which allows not only maintaining mutually beneficial relations with regional and global countries, but also gaining loyalty to the foreign and domestic policies of the Republic of Kazakhstan.

A promising resource for the public diplomacy development is the digital diplomacy or PD 2.0. Kazakhstan is considering using global online platforms for presenting the culture of the people, history and spiritual heritage of the country. Public organizations are actively working in this direction. The WikiBilim Public Foundation (National Translation Bureau) is the initiator of several important projects for the development of the Kazakh sections of online platforms popular around the world that have a significant impact on the country's image. The fund has contributed to such projects as the development of the Kazakh , adding the to the Google Translate machine translation service, translating the selected speeches of the TED conference into Kazakh, creating the open university of

108

COMPETITIVE STRATEGY MODEL AND ITS IMPACT ON MICRO BUSINESS UNIT OF LOCAL DEVELOPMENT BANKS IN JAWA PJAEE, 17 (7) (2020)

Kazakhstan - OpenU and the open library of Kazakhstan - Kitap.kz (Kenzhekhanuly 2018).

Assets should include state policy on national and religious issues. The Assembly of Peoples of Kazakhstan (APK) is a unique institution whose activities are aimed at ensuring tolerance, interfaith and intercultural harmony. According to the APK, Kazakhstan has created comfortable living conditions for representatives of more than 100 ethnic groups and 17 faiths, 962 ethnocultural associations operate in the country, newspapers and magazines are published in 15 languages, and theater performances can be seen in 7 languages. Small Assemblies work in each region of Kazakhstan (Note 6). Over the years of independence, the idea of creating this institution and the subsequent development of the country refuted the claim that Kazakhstan’s multiethnic nature is a weak link.

An important strategic resource for the public diplomacy is dialogue platforms for government bodies (mainly the Ministry of Education and Science and the Ministry of Culture and Sports) and non-governmental actors, the main of which is the Civil Forum of Kazakhstan. The Civil Forum discusses strategic issues of the non-governmental sector and the social sphere development. However, the international component in the agenda of these dialogue platforms is practically absent. This means that it is necessary to increase the participation of the civil sector representatives in promoting a positive image of the country (Qogam.gov.kz 2019).

CONCLUSION Clearly, Kazakhstan does not have advantages in conducting its public diplomacy like the United States and China. These global states have large foreign services, specialized news agencies (US News Agency, USAID, etc.) or a network of international cultural centers (Confucius Institute). All these are supported by significant financial resources. All these factors limit Kazakhstan’s public diplomacy, which also has differing strategic priorities. With a view of economic development, the Kazakh authorities are striving to use public diplomacy to create a positive image of the country not so much in front of foreign citizens, but in front of the governments of other countries.

Differences in the strategic priorities of developed (USA) and developing (Kazakhstan) countries give rise to differences in the target audience of public diplomacy.

According comparative analyses Kazakhstan’s public diplomacy is formed and carried out mainly by government agencies, which brings it closer to the Chinese model. This is due to two factors. Firstly, non-state actors must act within the framework of the strategic interests of the country abroad, determined by the state. Secondly, it is difficult to implement democratic public diplomacy in the deficit of democracy in the country's political system.

The issue about the formation of legislative and institutional frameworks for cooperation between the Kazakhstani state and non-state components of public diplomacy remains open. Its decision is of importance in the context of

109

COMPETITIVE STRATEGY MODEL AND ITS IMPACT ON MICRO BUSINESS UNIT OF LOCAL DEVELOPMENT BANKS IN JAWA PJAEE, 17 (7) (2020)

Kazakhstan's positioning itself as an active regional and global player in the international arena.

The management of instruments of Kazakh public diplomacy is mainly owned by the state, based on the interests of the state and through state structures. This is due to the lack of mechanisms for interaction between state and non- state actors in public diplomacy; poor consolidation between non- governmental actors and the practical shortage of international NGOs.

Another factor that brings Chinese and Kazakhstani public diplomacy closer is the focus on cultural, educational values and the scale and creativity of the country's international initiatives. Public debates about internal issues (political regime, corruption, human rights, etc.) are not subject of interaction with foreign public.

At the same time, government support for NGOs, the activities of the ANC, the development of cultural and educational relations with foreign countries at the level of people-to-people testify to the western orientation of Kazakhstani public diplomacy.

According the research it can be argued that Kazakhstan’s public diplomacy due to limited resources and lack of experience, is in a state of formation and transit from the Chinese (non-democratic) to the American (democratic) model. The success of its formation and transit depends on a number of factors. Kazakhstan’s public diplomacy can use its own resources to create a positive image of the country abroad, without fear of stereotypes that great powers suffer (the aggressive nature of the American global war on terrorism or China’s desire to build a new International Relations architecture).

Today, Kazakhstan should be developed in the framework of the new public diplomacy, the main characteristics of which are dialogue with the foreign public and the complexity of communication technologies (social networks, blogs, video hosting). This leads to the fact that the state is losing its monopoly on public diplomacy, and non-state actors are actively involved in it. However, even though Kazakhstan’s public diplomacy is similar in many respects to the Chinese model, the scale and creativity of the international initiatives of Nur-Sultan requires taking over the experience of the American model based on democratic principles of cooperation with foreign societies

NOTES 1. U.S. Code. Title 22. FOREIGN RELATIONS AND INTERCOURSE, Chapter 32. FOREIGN ASSISTANCE, Subchapter I. INTERNATIONAL DEVELOPMENT, Part XI. Support for Economic and Democratic Development of the Independent States of the Former Soviet Union, Section 2295. Assistance for the independent states. Date Views 15.01.2020. www.law.cornell.edu/uscode/text/22/2295 2. 1. U.S. Code. Title 22. Section 2732: Public diplomacy responsibilities of the Department of State. Date Views 15.01.2020. www.uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22- section2732&num=0&edition=prelim

110

COMPETITIVE STRATEGY MODEL AND ITS IMPACT ON MICRO BUSINESS UNIT OF LOCAL DEVELOPMENT BANKS IN JAWA PJAEE, 17 (7) (2020)

3. www.linese.com, www.china.org.cn, www.chinatoday.com and www.gov.cn 4. www.globalvoicesonline.org, www.danwei.org, www.cmp.hku.hk and www.chinadigitaltimes.net 5. Resolution of the Government of Kazakhstan from 10.12.2019 # 113 On the draft Decree of the President of the Republic of Kazakhstan On the Concept of Foreign Policy of the Republic of Kazakhstan. Postanovlenie pravitel'stva RK ot10.12.2019. № 113 O proekte Ukaza Prezidenta Respubliki Kazahstan "O Koncepcii vneshnej politiki Respubliki Kazahstan. Date Views 21.08.2019 nomad.su (in Russ) 6. Assemly of People of Kazakhstan. www.assembly.kz 7. Center for International Programs. www.bolashak.gov.kz

REFERENCES Aced C. The 21st Century Media (r)evolution: Emergent Communication Practices. Date Views 17.06.2019 www.researchgate.net/profile/Cristina_Aced BBC (2006) Date Views 15.07.2019. www.bbc.co.uk/pressoffice/bbcworld/worldstories/pressreleases/2006/ 05_may/emergin g_giants.shtml Bogoviyeva E. (2010) Kazakhstan Nation Brand: Economic, Political and Cultural Narratives. Conference Paper. Date Views 13.08.2019 www.researchgate.net) Brady Anne-Marie (2006) ‘Guiding Hand: The Role of the CCP Central Propaganda Department in the Current Era’, in Westminster Papers in Communication and Culture, vol. 3, no. 1, 2006, pp. 58-77. URL: https://www.google.ru/url- www.westminsterpapers.org-articles-wpcc (15.01.2020) CANGO. China Association for NGO Cooperation. Date Views 10.06.2019 www.devex.com=organizations%2Fchina-association-for-ngo- cooperation-cango China.org.cn. Resolution of the 17th All-China Congress of the CPC on the report of the Central Committee of the 16th convocation. Date Views 15.11.2019 www.google.ru/url-russian.china.org.cn-archive-content China.org.cn (2015) 500 Confucius Institutes Worldwide. - China Internet Information Center. Date Views 10.07.2019 www.china.org.cn/china/2015-12/04/content_37234761.htm CPFAFC. China People's Friendship Association with Foreign Countries. Date Views 15.08.2019 www.google.ru/url- en.cpaffc.org.cn. CPAFFC. Chinese People's Association for Friendship with Foreign Countries. Date Views 17.07.2019 www.en.cpaffc.org.cn CSC. China Scholarship Council. Date Views 20.06.2019 www.chinesescholarshipcouncil.com CSCEE. Chinese Service Center for Educational Exchange. Date Views 20.06.2019 www.cscee.org CWPF. Chemical Weapons Productivity Facility. Date Views 16.07.2019 www.cwpf.org.cn Dalle Helle (2009) Public Diplomacy 2.0: Where the U.S. Government Meets “New Media”. December 8, 2009. URL:www.heritage.org-global-

111

COMPETITIVE STRATEGY MODEL AND ITS IMPACT ON MICRO BUSINESS UNIT OF LOCAL DEVELOPMENT BANKS IN JAWA PJAEE, 17 (7) (2020)

politics.report-public-diplomacy-20-where-the-us-government-meets- new-media (15.01.2020) d’Hooghe Ingrid (2005) Public Diplomacy in the People’s Republic of China’, in Jan Melissen (ed.), The New Public Diplomacy: Soft Power in International Relations. Basingstoke and New York: Palgrave Macmillan. d’Hooghe Ingrid (2007) The Rise of China’s Public Diplomacy. The Hague, Netherlands Institute of International Relations Clingendael. Clingendael Diplomacy Papers No. 12: 6. ISBN: 978-90-5031-1175 Dolinskii A. (2011) Public diplomacy discourse. Mezhdenarodnye processy (International processes) 9(1): 64. Date views 15.01.2020 https://www.google.ru/urlDolinskiy-25 (in Russ) Dolzhnikova A.V. (eds.) (2016) Intellectual Capital and Intellectual Migration in a Globalized World Date views 15.01.2020 https://books.google.kz/Комитет+по+связям+с+Сянганом,+Аомыне м,+Тайванем+и+зарубежными+китайцами (in Russ) Dzhanuzakova A. (2017) The Huffington Post included Kazakhstan in the top 17 travel spots. Date views 15.01.2020 www.inform.kz/ru/the- huffington-post-vklyuchilo-kazahstan-v-top-17-mest-dlya- puteshestviy_a3006663 (in Russ) ECA. The Bureau of Educational and Cultural Affairs of the U.S. Department of State. Date Views 18.09.2019 www.eca.state.gov Gilboa E. (2008). Searching for a Theory of Public Diplomacy. The ANNALS of the American Academy of Political and Social Science, 616(1), 55– 77. Date views 15.01.2020 http://ann.sagepub.com/cgi/content/abstract/616/1/55 Glaser B. (2009) Soft Power with Chinese Characteristics: The Ongoing Debate. Chinese Soft Power and Its Implications for the United States: a Report of the CSIS Smart Power Initiative. Ed. by B. Glaser, M. Murfy. Washington. Date views 15.01.2020 csis- prod.s3.amazonaws.com/s3fs public/legacy_files/ files/media/csis/pubs/090310_chinesesoftpower__chap2.pdf Hansen F. (2012) Revolution @State: The Spread of Ediplomacy. Date Views 15.01.2020. www.drive.google.com/file/d/0B50vsjnQymHPeGdraUVKa21fQWM/ view ISAB (a). International Security Advisory Board. Date Views 18.07.2019 www.google.2009-2017.state.gov-isab-usg ISAB (b). International Security Advisory Board (ISAB) Charter - State.gov. Date Views 12.09.2019. www.2009- 2017.state.gov/t/avc/isab//index.htm Kantar (2018). 2016-2017 China National Image Global Survey. Date Views 01.11.2018 www.google.ru/us.kant Kapital (2019) China will intensify efforts to attract foreign students. Date Views 25.02.2020 https://kapital.kz/world/75559/kitay-aktiviziruyet- usiliya-po-privlecheniyu-inostrannykh-studentov.html (in Russ) Kazbekova D. (2014) Казбекова Д.С. Public diplomacy in the foreign policy of the Federal Republic of Germany and the Republic of Kazakhstan. Date Views 15.01.2020. https://www.twirpx.com/file/2222488/ (in Russ)

112

COMPETITIVE STRATEGY MODEL AND ITS IMPACT ON MICRO BUSINESS UNIT OF LOCAL DEVELOPMENT BANKS IN JAWA PJAEE, 17 (7) (2020)

Kenzhekhanuly R. "Digital Diplomacy and Promotion of Kazakhstan's Interests in Virtual World". Date views 15.01.2020 www.mfa.gov.kz- content-view-rauan-kenzhekhanuly-digital-diplomacy-and-promotion- of--interests-in-virtual-world&usg Kireyeva A. (2018) «Belt and Road Initiative»: content, goals, meaning. Sravnitelnaya politika (Comparative Politics). V. 9, No 3: 61-74. Date Vies 15.02.2020. www.doi.org/10.18611/2221-3279-2018-9-3-61-74 (in Russ) Kovba D. (2017) Ковба ДМ Chinese Civil Society in the Context of Soft Power Theory. Date Views 21.01.2020. www.publishing- vak.ru>Ffile>Farchive-politology-2017 (in Russ) Krivokhizh S.V. (2012) Soft power and public diplomacy in foreign policy ractice of China. Vestnik SPbGU. Vostokovedeniye. Afrikanistika. (SPbSU Bulletin. Eastern studies. African studies) 2012. Series 13. Date views 15.01.2020 www.google.ru/url-cyberleninka.ru-article- myagkaya-sila-i-publichnaya-diplomatiya-v-teorii-i- vneshnepoliticheskoy-praktike-kitaya (in Russ) Larin A. (2014) Chinese diaspora – resourse of benefits and challenges. Date views 15.11.2019 www.google.ru/url-analytics-and-comments- kitayskaya-diaspora-istochnik-vygod-i-vyzovov Lebedeva M. (2017) (eds) Public Diplomacy: Theory and Practice. Moscow, Aspect Press, 272 p. (in Russ) Lomanov A.V. (2015) Contemporary chinese concept “soft power”. “Soft power” in relations between China and external world. (in Russ) Lu Yiyi (2005) The Growth of Civil Society in China Key challenges for NGOs. Asia program-February 2005. ASP BP 05.01. Date views 15.01.2020 www.google.ru/url-pdfs.semanticscholar.orgeaad Maheswaran Durairaj (2008) Nation Equity: Country-of Origin Effects and Globalization. Date views 15.01.2020 www.ink.library.smu.edu.sg/lkcsb_research Manzhulina O.A. (2005) The USA Public Diplomacy. Date views 15.01.2020 www.rusneb.ru (in Russ) Melissen Jan ed. (2005) The New Public Diplomacy Soft Power in International Relations. Palgrave MacMillan. Date views 15.01.2020 www.culturaldiplomacy.org-academy.pdf-research-books-soft-power- The-New-Public-Diplomacy.pdf Naumov A.O., Polozhevich R.S. "Soft Power" and public diplomacy of the PRC at the present stage. Date views 15.01.2020 www.google.ru/- www.spa.msu.ru-aspirantura- mjagkaja_sila_i_publitchnaja_diplomatija_knr_na_sovremennom_etap e.pdf (in Russ) NED. National Endowment for Democracy. Date Views 15.07.2019 www.ned.org Nye Joseph (2004) Soft power: the means to succeed in world politics. Public affairs,New York, p.xi Nye Joseph (2013) China and Russia Don’t Get About Soft Power-April 29, 2013. Foreign policy. Date views 15.01.2020 www.google.ru/url- foreignpolicy.com-what-china-and-russia-dont-get-about-soft-power Pamment J. New Public Diplomacy in the 21st Century: A Comparative Study of Policy and Practice. – Routledge: London, 2013. 184 p. Date views

113

COMPETITIVE STRATEGY MODEL AND ITS IMPACT ON MICRO BUSINESS UNIT OF LOCAL DEVELOPMENT BANKS IN JAWA PJAEE, 17 (7) (2020)

15.01.2020 www.routledge.com.New-Public-Diplomacy-in-the-21st- Century-A-Comparative-Study-of-Policy. Pokidayev D. (2019) MES: Kazakhstan increased number of foreign students in its universities by 50% Date views 15.11.2019 https://kursiv.kz/news/obrazovanie/2019-01/mon-kazakhstan-za-god- uvelichil-kolichestvo-inostrannykh-studentov-v (in Russ) Polovina Elena (2015) The USA Public Diplomacy in Russia and Ukrain. Center for «Creative diplomacy» social initiative support and development. Date views 15.01.2020 https://www. picreadi.ru- publichnaya-diplomatiya-ssha (in Russ) Qogam.gov.kz (2019) Civil Forum of Kazakhstan. Date Views 15.01.2020. wwwqogam.gov.kz/ru/pages/grazhdanskiy-forum-kazahstana Russian news. The concept of a community of the common destiny of mankind is transformed from a concept into real actions. Date Views 15.11.2019 www.google.ru/url/russian.news.cn (in Russ) Sabekov S. (2019) How many Kazakhs live abroad. Date views 15.01.2020 www.inform.kz/ru/skol-ko-kazahov-prozhivaet-za- rubezhom_a3539766 (in Russ) Saurugger Sabine (2013) Constructivism and public policy approaches in the EU: from ideas to power games. Journal of European Public Policy, Volume 20, issue 6. Date views 15.01.2020 https://www.tandfonline.com/author/Saurugger%2C+Sabine Snow Nancy, Taylor Philip M. (2008) Public Diplomacy before Gullion. Routledge Handbook of Public Diplomacy Routledge. Date views 15.01.2020 www.routledgehandbooks.com State program of development of tourism industry of the Republic of Kazakhstan for 2019-2025. Date Views 23.07.2019 egov.kz-cms-law- list Syzdykbayev A. (2018) The plan to support ethnic Kazakhs was approved in the Republic of Kazakhstan on May 25, 2018. Date views 15.01.2020 https://www.inform.kz/ru/plan-po-podderzhke-etnicheskih-kazahov- utverdili-v-rk_a3264331 (in Russ) Tarabako K.A. (2016) "Soft Power" Research Centers as Part of China 's National Strategy, p. 228—235 (in Russ) Timofeyev O.A. (2009) Soft methods of international influence and transformation of foreign policy paradigm in the PRC. Vestnik TOGU. Philosofskie I politico-kulturnye problemy (Philosofic and political cultural problems. TOSU Bulletin) 2009, 4(15) (in Russ) Trofymenko M. (2014) US public diplomacy structural analyses. Date Views 15.01.2020 https://cyberleninka.ru/article/n/u-s-public-diplomacy- structural-analysis Tsvetkova N. (2015) The US Public Diplomacy: Theories and Concepts. Date Views 15.02.2020 www.gramota.net/materials/3/2015/4-1/50.html (in Russ) Tsvetkova Natalia (2017) President Obama 's Legacy in US Public Diplomacy. Date views 15.01.2020 gorchakovfund.ru/news/view/natalya-tsvetkova-nasledie-prezidenta- obamy-v-oblasti-publichnoy-diplomatii-ssha/ (in Russ) Xijing Jia (2012) Civil Society Development and Political Reform in China. Date views 15.01.2020

114

COMPETITIVE STRATEGY MODEL AND ITS IMPACT ON MICRO BUSINESS UNIT OF LOCAL DEVELOPMENT BANKS IN JAWA PJAEE, 17 (7) (2020)

http://ru.theorychina.org/xsqy_2477/201209/t20120919_234673.shtml (in Russ) 24kz. 22 thousand NGOs officially registered in Kazakhstan Date Views 19.08.2019. www.24.kz/ru/news/social/item/280310-22-tysyachi-npo- ofitsialno-zaregistrirovano-v-kazakhstane (in Russ)

115