News from Kazakhstan

POLITICS

Kazykhanov Visits Turkey to Help Advance Astana-Ankara Partnership

The official visit of Kazakhstan’s Foreign Affairs Minister Yerzhan Kazykhanov to Turkey on August 2-4 gave a new impulse to the strong relations between the two countries that are based on common historical roots, cultural values, and interests in many regional and international issues. The Minister’s programme began with a visit to the Mustafa Kemal Ataturk memorial complex in Ankara and laying of flowers to the tomb of the Turkish Republic’s foundoffing father. During the following meeting of President Gul with Kazykhanov, the Turkish leader highlighted the need to implement agreements previously achieved by the leaders of the two countries. He also confirmed his participation in the first Summit of Cooperation Council of Turkic-speaking states (CCTS) that will take place in Almaty in October. According to Kazykhanov, the main task of the Summit will be “determining the rules and procedures to create basic documents.” The agreement to establish the CCTS was concluded in the framework of the 9th Summit of Heads of Turkic-speaking states held in Nakhchivan, Azerbaijan in October 2009. “Transport and energy are the key areas of cooperation between Kazakhstan and Turkey and, of course, we want to expand these areas,” Kazykhanov said to President Gul. “Moreover, Turkey is a major investor in Kazakhstan’s economy and its investments are made directly in the industrial sector.” Yerzhan Kazykhanov held talks with his Turkish counterpart Ahmet Davutoglu. Using the opportunity, Kazykhanov thanked him for the invitation to visit Turkey in the sacred for the Muslim world month of Ramadan. The sides further considered the current state and prospects of cooperation between Astana and Ankara both on bilateral and multilateral bases in economic, political, and cultural cooperation. Kazykhanov and Davutoglu agreed that the bilateral trade in the coming years is expected to reach US$ 10 billion. By the end of this year the figure is projected to exceed US$ 4 billion. The Kazakh diplomat thanked Turkey for supporting a number of Astana’s initiatives in the international arena. Thus, he expressed his gratitude to the Turkish side for its work as the Chairman of the Conference on Interaction and Confidence-Building Measures in Asia (CICA) and, having noted the unique nature of the forum, discussed the issues of holding the informal meeting of the Council of Foreign Ministers of participating States of CICA in September during the UN General Assembly. In turn, Davutoglu highlighted that Kazakhstan despite being a young nation has become visible in the international arena, as evidenced by the high activity of Kazakhstan’s diplomacy. Following the talks, the heads of diplomatic agencies singed several bilateral agreements. The documents included an agreement on training of diplomatic personnel and the programme of cooperation for the years of 2012-13. During his visit, Kazakh Foreign Minister also met with the Parliament Speaker of Turkey Cemil Cicek. At the meeting, the sides noted the high level of trade and economic cooperation between their countries. The number of Turkish companies operating in Kazakhstan reaches about 3,000. Referring to the Kazakh-Turkish inter-parliamentary cooperation, Cemil Cicek voiced his intention to visit Kazakhstan. Furthermore, he invited the Chairman of Kazakhstan’s Senate Kairat Mami to visit Turkey soon. Kazykhanov and Cicek reviewed inter-parliamentary links within the Parliamentary Assembly of Turkic-speaking countries (TurkPA) and the OSCE Parliamentary Assembly. In addition, they went over the preparations for the forthcoming visit of Oral Mukhamedzhanov, Chairman of Kazakhstan’s Majlis, to Turkey in autumn. As part of the programme, Kazykhanov also visited the headquarters of TURKSOY, the organisation designed for strengthening cultural ties between the Turkic-speaking states.

ECONOMIC

7.1 % Growth Announced for Kazakh Economy in First Half of 2011

At the enlarged meeting of the Government in late July, Kazakhstan’s Minister of Economic Development and Trade Kairat Kelimbetov summarised the results of the first half of 2011 and set priorities for an economic development for the remaining six months of the year. According to Kelimbetov, domestic economy demonstrated a positive growth at a rate of 7.1 percent. The growth in the economy resulted from the increasing in industrial production by 5.8 percent, in the volume of construction work by 1.7 percent, in trade by 14.3 percent, and in transport services by 6.5 percent. “High rate of growth was the result of implementation of Industrialisation Map project.” Kelimbetov commented. As part of Programme for Accelerated Industrial and Innovative Development, 294 investment projects worth KZT 8.1 trillion (US$ 1 = KZT 146) are expected to be launched before 2014. These include more than 192 projects in 2011. “The most important factor for a stable economic development is a control of inflation. In the current first six month of the year inflation level was 5.1 percent. In this sense measures preventing a significant rise in prices, such as tightening monetary policy, were taken by the National Bank,” Keilmbetov said. More steps to improve business climate and reduce administrative barriers are currently being made by Government. According to the Minister, first, before the end of the year, the number of licences and permits to launch and run registered business will be reduced by 30 percent, along with the number of government’s planned audits. Second, in 2012, the Ministry will determine an exhaustive list of permits within the single law in accordance to their degree of hazards. These measures designed to ease and improve the process of monitoring of businesses and, in fact, will reduce the number of inspections. “Another crucial area of development is going to be the development of agricultural sector, food security, rational use of land resources, development of livestock, and the revision of all agricultural lands,” the Minister reported. The “People’s IPO”, programme that allows Kazakhstani people to participate in the equity of the country’s leading companies, is expected to further boost the development of the financial sector in the Kazakhstan. At the same time, Mr. Kelimbetov emphasised that anti-bribery measures and efforts to create reliable legal environment will be taken. “Investment in the Future” is an another project designed to increase the quality of human resources, medical and educational services, to ensure save conditions for employment and provide further improvement in social sphere. Finally, the Minister set up the main directions for the development in the second half of the year. According to Kelimbetov, his agency will work to ensure that all measures to reach indicative parameters of the development in the branches and regions are taken. Moreover, before the end of the year the remaining projects, some within the industrialisation map, should be finished. At the same time active projects like “Performance 2020” and “Improvement of Enterprises’s Competitiveness” should be further accelerated. Concluding his report, Minister Kelimbetov said that the realisation of the stated objectives requires coordinated work of all the central and local executive bodies.

Astana to host "Digital Communications Kazakhstan - 2011" conference

International Conference of information and communication technologies "Digital Communications Kazakhstan - 2011" will be held in Astana on September 14-16, the press service of the Ministry of Communication and Information informs. Kazinform refers to PM’s official site. Over 65 speakers and 400 delegates from Kazakhstan, Europe, USA, Russia and China will discuss topical issues of the information and communications sphere over the three-day event. Representatives and heads of such companies as HP, IBM, IAB, "Kazakhtelecom" JSC, "Zerde" JSC, KBTU, "Kazcommercbank" JSC, Tele2, HTC, Sony, Huawei, Beeline, TIMWE, 1C, Tern, Google, Mail.ru, SAP, OpenText, Ericsson, Kiwi, Namba will take part in the conference. Besides, the world leading vendors will present their recent innovations in the IT, telecommunications, mobile technologies and e-government at an exhibition that is planned to be held within the conference. The Conference Chairman Karl Johannesson believes that this event will attract more international partners ready to implement joint projects with the players of the Kazakh market and invest to the ICT projects in Kazakhstan. Kazinform cites PM’s official site.

E-money in Kazakhstan: Development Perspectives

Astana Calling, Aug 5, 2011

Now, as more people buy and pay for various goods and services via Internet, customers should be provided with the relevant convenient payment instruments and the electronic money is undoubtedly one of them. Kazakh citizens have been actively using for a quite long time (at least ten years) the electronic money issued by the foreign systems, and each year this activity only increases. Indeed, the ease of handling such payment instruments, purchases without regional binding, time-saving, almost complete absence of a human factor in customer service, reduction of merchants and banks’ costs on servicing operations increase the popularity of this financial tool. According to the data of "KazContent” JSC, the online stores’ revenues in Kazakhstan amounted to approximately US$ 5 million in 2010 and, according to the experts’ estimate, this figure in 2011 will increase by 20%. The volume of e-commerce market in Kazakhstan is evaluated at US$ 240 million. At that, annually the market growth in the last few years amounts to not less than 10%. Despite the fact that this money has been in circulation for a long time, the country had no regulatory framework regarding it, that is, Kazakhstan in the framework of e-commerce development needed a law on electronic money, which would regulate this means of payment. On 21 July 2011 President Nazarbayev signed the Law "On amendments and supplements to some legislative acts of the Republic of Kazakhstan on e-money issues". "With the adoption of the bill all the transactions between Kazakhstan’s Internet users and sellers should be carried out legally only with the use of "electronic” money issued by the domestic issuers and expressed in the national currency", reported Deputy Chairman of Kazakhstan’s National Bank Bisengali Tadzhiyakov, introducing the bill in the Majlis (Parliament’s lower house). Nevertheless, the prospects of e-commerce depend largely on the realities on the ground than from payment regulations, for example, in the countries, where the postal services can not cope with an accurate and quick delivery of goods, the distance selling have no chance. As for Kazakhstan, according to the words of the President of Internet Association Shavkat Sabirov, Kazpost, as the primary means of delivery, is gradually developing and in the near future "we can make a big jump in e-commerce." One should not forget about the main problem of this financial tool - different kinds of online fraud. In view of this, the Act of 21 July 2011 states that transactions with electronic money in Kazakhstan can be carried out in an amount not exceeding the sum that roughly equals US$ 5,000 a day. This norm, as stated, has been legislated for the security purposes, which is very important for Kazakh public to believe in this innovative tool. Thus, new legislation on e-money will increase the online transactions using electronic money and raise their effectiveness and, in turn, will be the significant step forward to the development of e-commerce in Kazakhstan.

OTHER NEWS

Kazakhstan’s Muslims Celebrate Start of Ramadan as Nation Chairs OIC

On 1 August, President Nursultan Nazarbayev congratulated the Muslims of Kazakhstan on the beginning of the holy month of Ramadan and wished each family peace, understanding, prosperity and welfare. Prime Minister Karim Massimov took to his Twitter page to congratulate all citizens of the country on the event. Messages of congratulations were also received from Chairman of Kazakhstan’s Spiritual Board of Muslims and the Grand Mufti Sheikh Absattar Hajji Derbisali, and Chairman of Kazakhstan’s Religious Agency Kairat Lama Sharif. On this day the Muslim world celebrated the start of the holiest month in the Islamic calendar that is spent by Muslims fasting during the daylight hours from dawn to sunset. Being one of the five pillars of Islam, Ramadan (also pronounced in Kazakh as Oraza) fasting is often thought figuratively to burn away all sins and is intended to teach Muslims about patience, spirituality, humility and submissiveness to God. Kazakhstan, being a secular and a multiethnic country where all religions are equal, is still predominantly Muslim nation, which makes Ramadan particularly important for the believers. This year Kazakhstan has also assumed chairmanship in the Council of Foreign Ministers of the Organization of Islamic Cooperation (OIC CFM), having successfully hosted its 38th session in the capital city of Astana. The second largest international organization after the United Nations, OIC is not a religious structure, however, the majority of its member states have predominantly Muslim populations. A time for worship and contemplation, Ramadan marks the day the Holy Quran was sent down to the lowest heaven, thus being prepared for gradual revelation by the angel Jibraeel (Gabriel) to the Islamic prophet Muhammad. Furthermore, Muhammad told his followers that the gates of Heaven would be open all the month and the gates of Hell (Jahannum) would be closed. To allow for complete devotion to their faith, Muslims in Kazakhstan abide by stringent rules from dawn until sunset for the entire month. At the end of each day, the faithful break their fast with a meal called “auzashar” in Kazakh (“iftar” in Arabic). Muslims also generally have a pre-fast meal called “auz bekitu” in Kazakh (“suhoor” in Arabic), which occurs before dawn. The evening of the 23rd day of the month, or Laylat-al-Qadr (Kadyr Tuni), which stands for the Night of Decree, is a very special time in which sins may be forgiven and any act returned multi-fold. This night is believed to be the one on which Muhammad first received the revelation of the Holy Quran. During Ramadan, Muslims in Kazakhstan and throughout the world try to show greater sympathy for the needy and poor. Fasting plays a key role in accomplishing these goals by allowing for greater concentration on the spiritual, generating empathy for the hungry and cleansing the body of overindulgence. The first day of the next month is spent in celebrations and is observed as Eid ul-Fitr (Oraza ait in Kazakh), which stands for Festival of Breaking Fast. During this time, gifts are exchanged, large meals consumed, and the company of family and friends enjoyed. Kazakhstan is considered as one of the successful models of peaceful co-existence and harmonious development in the OIC. Due to the efficient steps taken to foster mutual ethnic and religious tolerance Islam is respectfully treated in the country, which provides a good lead to follow and may serve as a role model for other Muslim countries of the world.

Big boxing finds home in Kazakhstan capital city – Astana

Kazakhstan has paid more and more attention to such issues as development of sport and tourism over recent years. In particular, it is the last and most vivid Astana’s successful attempt to make history in the national boxing. Last year Kazakhstan received the right to host the 2011 World Junior Boxing Championship in Astana. The decision in this regard was made at the enlarged meeting of the Executive Committee of the AIBA in the city of Xiamen in China. In January five cities were contesting for the right to become home of the upcoming international boxing event. In the end two cities remained for the final stage of consideration. Kazakhstan’s bid prevailed. It should be noted that the history of Kazakhstan’s boxing hasn’t seen such a large scale event held in the country. Accordingly, the Ministry of Tourism and Sport of Kazakhstan and Kazakhstan’s Boxing Federation and Mayor’s Office of Astana exerted every effort to organize and hold this event at the highest possible level. The tournament gathered a vast number of participants – around 500 sportsmen – from 46 countries. Moreover the event demonstrated its historic meaning since the opening day. All the fights were spectacular and unpredictable. After the preliminaries 32 out of 48 entered countries continued to fight for their chances to get a medal of the Championship in Astana. It clearly demonstrated high competitive level and strength of the tournament. Russia had more sportsmen remaining in the quarter-finals than any other country – 11 and Kazakhstan with Ukraine followed with nine athletes each. The finals of the competition were every bit as the beginning of the event – unrespectable, unpredictable but even more spectacular. In total, eight countries claimed gold medals at the tournament in Astana. Kazakhstan’s result is one gold medal, one silver and three bronze medals. Our boxer Bekzhan Kibitkaliyev became a gold medalist of the Championship in Astana in the weight category of 54 kg. Tolegen Didar won silver medal in the category of 80 kg. Ayan Kalybekov, Kayyrgeldy Dautbek and Askar Dyusaly won the bronze medals of the tournament. After the competition the teams ranking tops Russia, Uzbekistan and Australia follow second and third respectively. Kazakhstan is fourth in teams ranking with five medals won at the Championship. This ‘gold’ was Kazakhstan’s first at the World Championship since 2006. As head coach of our national team Sultan Kastoyev said it was a successful Championship for our team especially taking into account a ‘gold drought’ of Kazakhstan’s boxing for a long time. At the time of today Astana is awaiting the next large scale boxing event that is going to be held in the capital of our country - the World Championship among adults in 2013. The International Amateur Boxing Association (AIBA) unanimously supported Kazakhstan’s request for hosting the World Championship among adults in 2013 in Astana, AIBA President Ching-Kuo Wu made it public on August 1.