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Sunday, Dec 16, 2007
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Contemporary Kazakhstan: 16 Years of Independence

On the festive occasion of the 16{+t}{+h} anniversary of Kazakhstan’s independence, it would be my great delight to share with the readers my thoughts and views on my country’s achievements and dynamics of its relationship with India.

Ambassador: Dr. Kairat UmarovCICA members

Kazakhstan: Land of Prosperity

In today’s world, Kazakhstan is associated with continuous growth and sustainable development. The reason is that over the last 8 years, my country has been enjoying 10% growth at average in row, which is among the highest in the world. It is true that at the early years of its statehood, Kazakhstan was in deep economic crisis as a consequence of the former USSR’s collapse. However, owing to successful economic reforms and sound public policy, the country has o vercome the hardships and is fast catching up with the Eastern European countries in terms of per capita income. Its GDP per capita in 1991 was $ 400, now it stands at $ 7 thousand.

In this success story, investments played a major role. For 16 years, we have attracted over $ 70 billion of FDI and we have come to the stage, when our domestic investment, which stands at $ 80 billion, surpasses the foreign investments attracted.

Today, we have become a net exporter of capital. Our entrepreneurs have already invested more than USD 18 billion in foreign economies, among them USD 5.3 billion is made in EU countries. International experts estimate the potential of Kazakh companies to invest abroad at over USD 40 billion. At present the Kazakh investors are encouraged to actively enter foreign markets through buying shares of successful companies overseas and participating in large scale projects.

In the globalizing world, it is necessary to learn from others to keep up with the high development strides and stay openminded. Thus, in building strategic policies we have borrowed the best practices from the experience of successful countries. For instance, we have established development institutions and holding companies in the priority sectors such as Samruk (oversees public companies), Kazyna (manages development institutions), KazAgro (agriculture) and Samgau (IT, science and technology). We have established special economic and industrial zones, technology parks, social and entrepreneurial corporations to help promote competitive manufacturing.

Under the Government’s Strategy of Industrial Innovation, we have developed industrial clusters in oil-and-gas machine-building, food processing, textiles, transport logistics, metallurgy, construction materials and tourism, where we have comparative advantages.

The special focus is on tapping the brightest talents through giving them the best training at the leading universities around the world. Under the Presidential Bolashak (‘Future’) Program, 3 thousand Kazakh students are given fully financed scholarships to pursue their higher education abroad.

For those who cannot afford to leave the country, the best professors from abroad, including India, are invited to deliver lectures at Kazakh universities in high technology, engineering, etc. The purpose is to impart world standard education on Kazakh students and train highly qualified managers and specialists to efficiently run the growing economy.

Kazakhstan has for the most part of its history been a raw material supplying country owing to its vast natural riches. Even today we successfully export mineral and fossil resources in great volumes to the world market. Kazakhstan has proven oil reserves for the next 50 years and gas reserves for more than 75 years.

However, we understand that the real progress will come only through diversifying the economy to decrease our dependence on raw material exports. In 2000, a National Fund was established to accumulate revenues from commodity exports. The Fund, which has already accumulated USD 16 billion, also allows to control inflation and stimulate the development of a non-commodity sector.

Kazakhstan has been reshaping itself owing to consistent and proactive policy of President Nursultan Nazarbayev whose vision transformed the country into a modern, progressive and economically viable state. Having achieved impressive economic growth, Kazakhstan is set to obtain even more ambitious tasks. For example, it is planning to enter the ranks of 50 most competitive economies in the world within a decade. 10 - year old “Kazakhstan 2030” long term development program provides strategic vision for the country to travel till 2030 creating jobs, generating wealth and ensuring prosperity of the people of Kazakhstan. As highlighted by President Nursultan Nazarbayev in his state of the nation address in February 2007, Kazakhstan is set to emerge as a “regional locomotive”.

Everyone agrees that without political stability in the country it is almost impossible to preserve economic progress. The Kazakh Government has been successful in ensuring stable domestic environment. In its 16 years of history, Kazakhstan has not seen any internal conflict or clash along the ethnic or religious lines. Kazakhstan’s case in promoting religious tolerance and freedom of religions is successful. In fact, we believe that the great asset we have for development is diversity of culture, talents and mindsets of our people consisting of over 130 ethnic groups with 40 religious outlooks. As a strong follower of secularism and inter-ethnic harmony, we believe in the principle of unity in diversity.

Despite their race or ethnicity, Kazakh citizens’ fundamental rights are well protected by the Constitution. Furthermore, minorities have a say in the Government policy through the Assembly of People of Kazakhstan, which has evolved from advisory organization to the national body with a quota of seats in the Parliament.

Thanks to its strong credentials in the religious accord, Astana is a host to the Congress of World and Traditional Religions, gathering many spiritual leaders from around the world, including India, to bring mutual understanding and tolerance among different faiths.

Kazakhstan is a democratic country, where free and fair elections are held, providing opportunities for its citizens to choose their destiny.

There are seven political parties and over 5,000 NGOs in the country. More than 8,000 media outlets are registered in the country, with 80% of them being privately owned.

Freedom of speech, prohibition of censorship are the true attributes of the Kazakh democracy.

On 30 November 2007 Kazakhstan was elected to the Chairmanship of the Organization for Security and Co-operation in Europe in 2010. Thus, my country has become the first country on the post-Soviet space to lead the Organization. This fact speaks for itself of democratic credentials of my country.

Kazakh Diplomacy: Promoting Peace and International Understanding

With a view to create favorable external environment for domestic development, Kazakhstan’s foreign policy has always been peace-loving, consistent and predictable. As a landlocked country, Kazakhstan needs goodwill of its neighbors to interact with the outside world. Ensuring peace and securing friendship not only in the neighborhood, but also around the world are the main pillars of Kazakhstan’s foreign policy.

Kazakhstan’s outspoken resolve to promote international security is backed up by solid deeds. My country is the first country in the world to have voluntarily abandoned its nuclear status and disposed its nuclear arsenal, the forth largest in the world. At the height of the USSR’s might, Kazakhstan unilaterally closed down the Semipalatinsk nuclear test site, which was on its territory.

A Treaty on Creation of Nuclear-Free Zone in Central Asia was signed among Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan in September 2006 to avoid any possibility of developing military nuclear program in the region.

Kazakhstan’s growing economy opens vast opportunities for its neighbors and its approach to regional cooperation is inclusive. The Kazakh President’s initiative on establishing a Union of Central Asian States seeks to multiply existing capabilities for the benefit of our nations. Perceiving Central Asia as an economic entity, a number of countries in the neighborhood launched a dialogue mechanisms for this region. For example, there are Central Asia + Japan, Central Asia – EU and Central Asia + Korea. The list could be continued as Central Asia + SAARC, which could be established in the foreseeable future, as our next door neighbor Afghanistan has become a member in the SAARC.

One of the most important Kazakh foreign policy initiative is the CICA (Conference on Interaction and Confidence Building Measures in Asia), which unites 18 Asian countries and is aimed at promoting political dialogue on security issues and strengthening peace in the continent. India has been an active supporter of the forum right from its inception. This year, member countries have celebrated the 15th anniversary of the Conference.

Today it is coming out of Kazakhstan and its events are being held in member countries. For instance, on 14 March 2007, the CICA Senior Officials Committee (SOC) meeting was held in Bangkok, Thailand. In 2008 and 2009, Republic of Korea and India may host the next meetings of the SOC.

Overall, Kazakh leadership’s foreign policy has been instrumental in raising the international profile of my country. Kazakhstan’s multi-vector foreign policy has paid off in the sense that it has made it possible to be friendly with all the countries in the world and we do not have any enemy or foe in the globe. Under this policy, Astana maintains strategic partnership with Russia, China, US and EU to name a few. Its relations with Asian countries and other parts of the world are growing dynamically, especially with India.

Kazakhstan and India: Partners in Development

This year we celebrate the 15{+t}{+h} anniversary of establishment of Kazakhstan-India diplomatic relations (22 February 1992) although contacts between our nations date back to the days of the Great Silk Route. Kazakhstan and India are strategically important to each other, as they are in their extended neighborhood. It is especially so in the globalization age, when the world is fast becoming a “one small village”.

Inspired by the past, we are making a lot of efforts to revive the direct transport routes and nourish our friendly relations in any possible way. Most importantly, President Nursultan Nazarbayev and Prime Minister Manmohan Singh, who regularly meet with each other, are behind endeavors to strengthen the bilateral relations.

In recent year, bilateral interaction has seen dynamic growth in various spheres. Trade turnover has increased by 74% and reached USD 210 million in 2006. The same year Indian investment to Kazakhstan increased to 16 million US Dollars, indicating the growing confidence of Indian businessmen in the favourable environment in the Kazakh economy. On their part, Kazakh companies are also establishing their presence in India with KazStroy (infrastructure), Caspain Shelf (oil exploration), TVL (retail equipment) being the earliest ones to explore the Indian market.

To my mind, the positive developments taking place in the bilateral relations are largely a product of successful institutionalization process of mutual interaction. There are several bilateral structures which meet annually and are the driving forces behind the trend.

Nowadays, Kazakhstan and India are rediscovering each other. This, coupled by the rapid economic growth taking in each country, opens a wide horizon for the constructive and mutually beneficial cooperation. I am sure that in the 21st century our countries will seize the momentum to further strengthen constructive partnership.

On this joyful occasion of Independence Day of Kazakhstan, I would like to express my best wishes for the enhanced friendship between our nations.

- the author is Ambassador of Kazakhstan to India

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