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The Kazakhstan Institute for Strategic Studies under the President of the Republic of Kazakhstan

KAZAKHSTAN TODAY

Almaty, 2010

UDK 323/324 (574) BB 66.3 (5 ) 26


Scientic publication Recommended for publication by the Scientic Council of the Kazakhstan Institute for Strategic Studies under the President of the Republic of Kazakhstan

CONTENTS INTRODUCTION.................................................................................. 13 Chapter 1. THE HISTORY OF KAZAKH STATEHOOD 1.1. Kazakhstan before the 15th Century ................................................. 23 1.2. Kazakh Khanate (15th-18th Centuries).............................................. 35 1.3. Kazakhstan in the Russian Empire .................................................. 41 1.4. Kazakhstan in the USSR .................................................................. 48 1.5. Declaration of State Sovereignty of the Kazakh SSR and the Constitutional Law On State Independence of the Republic of Kazakhstan ......................................................... 57 1.6. The Election of the First President of the Republic of Kazakhstan (December 1991) ............................ 61 1.7. The First Constitution of the Republic of Kazakhstan of 1993 ....... 62 1.8. The Constitution of the Republic of Kazakhstan of 30 August 1995 ............................................................................ 64 1.9. The National Referendum on Extending the Term of the President of the Republic of Kazakhstan ............................... 66 1.10 The State Symbols of the Republic of Kazakhstan .......................... 67 Chapter 2. DOMESTIC POLICY 2.1. Kazakh President Nursultan Nazarbayev......................................... 71 2.2. The Kazakhstan-2030 Strategy ........................................................ 77 2.3. The 2007 Constitutional Reform...................................................... 85 2.4. The Parliament of the Republic of Kazakhstan ............................... 90 2.5. The Government of the Republic of Kazakhstan ............................. 95 2.6. Reforms in the Judicial System...................................................... 105 2.7. The Party System ........................................................................... 108 2.8. Kazakhstan Is a Multiethnic State.................................................. 116 2.9. The Non-Governmental Sector ...................................................... 118 2.10. The Media ..................................................................................... 121 Chapter 3. FOREIGN POLICY 3.1. Kazakhstans Multi-Vector Foreign Policy .................................... 127 3.2. Kazakhstans Nuclear-Free Status ................................................. 137 3.3. Kazakhstan the Chairman of the OSCE in 2010 ......................... 139 3.4. Kazakhstan and Russia .................................................................. 145 3.5. Kazakhstan and China.................................................................... 152 3.6. Kazakhstans Cooperation with Central Asian Countries .............. 157 3

Edited by B.K. Sultanov Editorial board: B.K. Sultanov, L.M. Muzaparova, R.Yu. Vasilenko, U.M. Nyssanbek, N.B. Seydin (responsible for publication)
Authors: M.A. Abisheva (ch(apter) 2; s(ection) 3.11), A.M. Borangaliyev (s. 4.6, 4.7, 4.12, 4.14), A.U. Ibragimova (s. 4.4, 4.13), R.Yu. Izimov (s. 3.5), K.D. Isayev (s. 3.8), T.A. Kozyrev (ch. 2), S.K. Kushkumbayev (s. 3.6, 3.16), M.T. Laumulin (introduction), S.S. Lukpanova (s. 3.3), A.A. Morozov (ch. 1, 2), A.K. Nazarbetova (s. 5.5), M.Ye. Nurgaliyev (s. 3.7, 3.11, 3.12), A.Zh. Rakhimzhanova (s. 4.1, 4.3, 4.8, 4.9, 4.10, 4.11, appendices), G.G. Rakhmatulina (s. 3.15, 4.1., 4.2, 4.5, 4.15), Ye.T. Seilekhanov (ch. 2, s. 5.1, 5.2, 5.3, 5.4), V.N. Sitenko (s. 3.13, 3.14), B.K. Sultanov (s. 3.1, 3.2, 3.4), L.A. Timofeyenko (s. 3.9, 3.10)

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Kazakhstan Today: monograph / Edited by B.K. Sultanov Almaty: The Kazakhstan Institute for Strategic Studies under the President of the Republic of Kazakhstan, 2010. 356 p. ISBN 978-601-7242-11-4
This joint monograph aims to present a generalised image of modern Kazakhstan. The book focuses on Kazakhstans role in the international community and discusses issues of the political, economic and social life of modern Kazakh society. It contains the history of the country and information on its present administrative-territorial divisions, population and government system. The book presents Kazakhstans main steps on the path of the establishment of statehood and interim results of the countrys development in its years of independence. The joint monograph targets primarily foreign readers who do not know much about the Republic of Kazakhstan, and will be also useful to local political analysts, researchers, civil servants, students and university teachers, and others.

ISBN 978-601-7242-11-4

UD 323/324 (574) BB 66.3 (5 ) KazISS, 2010

Kazakhstan today

3.7. Kazakhstan and the USA ............................................................... 163 3.8. Kazakhstan and the EU .................................................................. 169 3.9. Kazakhstan and Middle Eastern Countries .................................... 177 3.10. Kazakhstan and South Asian Countries ........................................ 183 3.11. Kazakhstan and Asia-Pacic Countries ........................................ 188 3.12. Kazakhstan and the UN ................................................................ 195 3.13. Kazakhstan and the CIS ................................................................ 200 3.14. Kazakhstan and the SCO .............................................................. 205 3.15. Kazakhstan and the EAEC ............................................................ 210 3.16. Kazakhstan and the CICA ............................................................. 215 Chapter 4. KAZAKHSTANS ECONOMY 4.1. Strategy for Economic Reform ....................................................... 225 4.2. Kazakhstans Natural Resources ..................................................... 232 4.3. The Investment Climate in Kazakhstan .......................................... 237 4.4. Small and Medium Businesses ....................................................... 240 4.5. Oil and Gas Production and Transport ............................................ 243 4.6. Mining ............................................................................................. 249 4.7. Processing Industry ......................................................................... 252 4.8. Space Industry................................................................................. 257 4.9. Agriculture ...................................................................................... 260 4.10. Trade ............................................................................................. 265 4.11. Banking ......................................................................................... 269 4.12. Transport ....................................................................................... 272 4.13. Communications ........................................................................... 276 4.14. Tourism ......................................................................................... 278 4.15. Foreign Economic Relations ......................................................... 281 Chapter 5. HUMAN DEVELOPMENT IN KAZAKHSTAN 5.1. Education ........................................................................................ 287 5.2. Science ............................................................................................ 298 5.3. Public Health................................................................................... 306 5.4. Environment.................................................................................... 311 5.5. Gender Policy.................................................................................. 319 Appendices. KAZAKHSTAN in FIGURES ...................................... 323 Information about authors .................................................................. 352 Information about the KazISS............................................................ 354

FOREWORD

Dear Reader, You are about to read this book about modern Kazakhstan, which is the worlds ninth largest country and the second in the CIS after Russia in terms of territory, and is one of the worlds richest countries in terms of natural resources; it is considered to be the most stable of the former Soviet states. Our country has been attracting the worlds attention over the past two decades with its successes in the creation of institutions of statehood, the implementation of market reforms in the economy and the formation of a tolerant multi-denominational and multiethnic society. Kazakhstan is famous for its contribution to the strengthening of global stability and nuclear security, as an initiator and active player in many processes in the sphere of disarmament, condence building and the creation of a collective system of security. This book reects our desire to tell the foreign reader more about Kazakhstan a country with an ancient culture and a long history, a talented population and a stable economy. Located in the very centre of the great Eurasian continent, Kazakhstan is a country in which different and diverse phenomena have become intertwined and synthesised. This country simultaneously belongs to both the East and the West. Our country is populated by people that belong to different ethnic groups and cultures. In the rst chapter of this book you nd information on the history of Kazakhstan and the formation of Kazakh statehood. The very history of the statehood of Kazakhs started in the 15th century, although the history of Turkic nomads, who are the direct ancestors of Kazakhstan, stretches for at least another millennium. This chapter provides all the relevant information about the government system of the Republic of Kazakhstan and the documents and symbols of our country. Here you will learn the conditions in which modern Kazakhstan was created when it received independence following the break-up of the Soviet Union in 1991.
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The second chapter of the book is devoted to the domestic political processes in Kazakhstan, the countrys government system, the main political forces and the nature of the political regime established in the country. The book draws particular attention to the institution of the presidencys place and role in the government system. This attention is understandable, given the rst Kazakh President Nursultan Nazarbayevs contribution to the process of building statehood and his inuence on it. In this chapter it is noted that Kazakhstans government institutions are not static in nature, rather they are always at the stage of modernisation and reformation. This equally concerns both political reforms in general and reforms in the parliamentary and judicial systems. The only solution in terms of strengthening the unitary nature of Kazakhstan and preserving its political stability was a combination of the model of unitary state with strong presidential power. In Kazakhstan, as in other liberal countries, political opposition exists. The emergence of the opposition was largely a result of the economic reforms conducted. To me, as the head of the Ministry of Foreign Affairs of the Republic of Kazakhstan, the most important is the third chapter, which is devoted to the international standing and relations of Kazakhstan with the rest of the world. In the almost 20-year period of its existence as an independent state from the late 1991 to 2010 the Republic of Kazakhstan joined the system of international relations, adopted its foreign policy, drafted a clear and coherent foreign policy concept and realised its national interests. Kazakhstans foreign policy and involvement in the affairs of the international community have developed rigorously in all key aspects that have become traditional. This includes participation in international and regional organisations (the UN, the EU, the Organisation for Security and Cooperation in Europe, NATO, the Eurasian Economic Community, the Collective Security Treaty Organisation (CSTO), the Shanghai Cooperation Organisation (SCO) and the Organisation of the Islamic Conference), development of bilateral relations (with Russia, Central Asian and CIS countries, the USA, EU member states, China, Muslim countries and Asia-Pacic states). Thus, Kazakhstans foreign
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policy is based on three key directions: international law, multilateral relations and bilateral relations. At the initial stage of the development of Kazakhstans foreign policy strategy (in the rst half of 1990s) the Eurasian Bridge concept was put forward, which pointed out that in terms of geography, culture, history and civilisation Kazakhstan belonged to both Europe and Asia. Later, in the second half of the 1990s, this concept was transformed into a doctrine of multi-vector diplomacy. This doctrine aimed to pursue foreign policies in all directions important to Kazakhstan: the CIS, Central Asia, East and West, Europe and Asia, the Muslim world, Asia-Pacic, developed powers and so on. During the implementation of foreign policy in different periods Kazakhstan faced different priorities and objectives. For example, between 1992 and 1995 nuclear problems occupied a signicant place in Kazakhstans relations with the USA, Russia and the West in general. In the second half of the 1990s the problem of the Caspian Sea, its delimitation and the designing of routes to transport Caspian hydrocarbons became a priority. At the beginning of the 21st century the issues of ensuring national and regional security, ghting international terrorism, drugs and so on became particularly relevant. During its entire history sovereign Kazakhstans foreign policy aimed to expand integration in the post-Soviet space: within the CIS, the Central Asian Economic Community and the Eurasian Economic Community. Relations with Central Asian countries have always been a priority for Kazakhstan. Kazakhstan has successfully entered the international community and international structures at global, regional and subregional levels. The country has joined most international treaties and agreements and, as a result, became part of the international legal space. Kazakhstan is party to international security treaties like the Treaty on the Non-Proliferation of Nuclear Weapons, the Strategic Arms Reduction Treaty I, the Anti-Ballistic Missile Treaty, as well as all the main documents of the UN and the OSCE. Kazakhstan, like all former Soviet republics, became member of the Organisation for Security and Cooperation in Europe (OSCE) on 30 January 1992. From the very rst days of its membership of this
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Kazakhstan today

organisation Kazakhstan started actively promote the strengthening of security in the CSCE/OSCE. As early as at the Helsinki summit in 1992 President Nursultan Nazarbayev proposed the creation of special forces under the CSCE for the prevention of regional conicts and maintaining peace in Eurasia. It was precisely then Kazakhstan oated the idea of creating the Asian equivalent of the OSCE the Conference on Interaction and Condence-Building Measures in Asia (CICA). Kazakhstans cooperation with the OSCE has been important for strengthening its positions in the international arena in general and relations with OSCE member states which represent Eurasia, Europe and North America and boosting the security of Kazakhstan and the entire Central Asian region, as well as developing democracy, ensuring human rights, pursuing balanced policy on ethnic minorities and preserving internal stability. The OSCE experience was also useful for convening the Conference on Interaction and Condence-Building Measures in Asia (CICA), initiated by Kazakhstan. In autumn 2007 at the Madrid meeting of the foreign ministers of OSCE member states Kazakhstan was elected chairman of the organisation in 2010, the duties of which our country started performing on 1 January 2010. As OSCE chairman Kazakhstan plans to focus on achieving the best balance between all three baskets of the OSCE. This approach will make it possible to see problems in their totality and effectively withstand not only the external manifestations of modern challenges and threats but also work with the sources of their origin. In addition, Kazakhstan considers the expansion and strengthening of a consensual eld on the fundamental issues of the organisations development as one of the OSCEs main tasks. In particular attention will be paid to holding the OSCE summit in Astana in 2010, which will discuss current security problems in the zone of responsibility of the OSCE, the situation in Afghanistan and issues of tolerance. Kazakhstan remains loyal to its role of initiator of integration processes in the post-Soviet space. At the same time, Astana understands that the maximum level of integration can take place only in the economic sphere (and in the military-strategic sphere only in an extraordinary case). Kazakhstans political sovereignty should be
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preserved in any development of the situation. This means that Kazakhstan aims to follow the European model of integration. Russia is Kazakhstans main foreign policy partner. The two countries are co-founders of the CIS, the Eurasian Economic Community and the Customs Union and are interacting within the CSTO and SCO, as well as participating in multilateral talks on the legal status of the Caspian Sea. Therefore, the multilateral nature of Kazakh-Russian relations is very noticeable. Relations between Kazakhstan and China, which is its second largest neighbour, occupy an important place in Astanas foreign policy. They cover a broad range of issues in the political, economic, trade, ethnic, border and military spheres. The Chinese factor is permanent in Kazakhstans foreign policy. Between 1992 and 2010 the main aspects of bilateral cooperation were fully dened. Problems that represent mutual interests are borders, crossborder rivers, trade and economic cooperation, the state of the Kazakh diaspora in Xinjiang Uighur Autonomous Region, cooperation in the spheres of oil and gas, transport and investment. A positive moment in Kazakhstans ties with the USA was that Washington practically recognised Kazakhstan as the leader (in terms of reforms and economic development) in Central Asia and to some extent in the CIS. Washington arrived at the conclusion that Astana should assume the role of leader in the region which helps the development of infrastructure in the energy sector and the creation of additional transit routes for hydrocarbons. Kazakhstan was the rst CIS country to be ofcially recognised by America as a market economy country. At the very beginning of the formation of independent Kazakhstans foreign policy and foreign economic policy the countrys leadership clearly realised that Western Europe and the EU institutions were the political and economic force that must be taken into account in the countrys foreign policy strategy. In 1992 the decision was taken to launch cooperation between Kazakhstan and NATO. Kazakhstan received additional security guarantees from NATO. On 27 May 1994 Kazakhstan signed the Partnership for Peace framework document. We in Kazakhstan perfectly understand, especially in the
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Kazakhstan today

context of the antiterrorist operation in Afghanistan, that the North Atlantic Alliance is one of the most important guarantors of security in Central Asia. Kazakhstans multi-vector foreign policy was shaped by the countrys pursuit of independent policy towards other power centres and regional powers in the second half of the 1990s. The latest events have shown that Kazakhstan is indeed capable of conducting an indeed multi-vector, yet also independent, policy at various international levels. Relations between Kazakhstan and Russia, China, Central Asian states, the USA and the EU are of strategic importance, which objectively cannot be doubted. Kazakhstans future foreign policy, like in the previous years, will aim at ensuring the security of the country and the security of its population security, as well the economic progress and sustainable development of the country. The books fourth chapter discusses Kazakhstans economic development. In recent years Kazakhstan is believed to be one of the most economically successful countries in the CIS. Progress in economic transformations in Kazakhstan is a shining example of those difculties that have to be overcome on the path towards a market economy by even a newly independent state that is the richest in terms of natural resources. The countrys economy has come a long way, accompanied by a dramatic slump in production and high levels of inations at the beginning and the stabilisation of the economy, a small economic growth and a reduction in ination in the late 1990s, when Kazakhstan completed a phase of macroeconomic stabilisation, the creation of its nancial system and privatisation in the chief sectors of the economy. Between then and the beginning of the global crisis the Kazakh economy was on the rise. Economic reforms resulted in serious socio-political changes in the country. All this had a complex, but generally positive, effect. The economic strategy placed emphasis on the macroeconomic stabilisation of the economy, the development of the nancial sector and the banking system, the freeing-up of entrepreneurial vigour through economic reforms and investment.
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Even now, there are problems in Kazakhstan. At the local level Kazakhstan has disproportions in terms of the size of the population, its structure and development. Local differences in climatic and geographical conditions in terms of demographic dynamics and socioeconomic conditions led to the uneven distribution and density of Kazakhstans population. There are great socioeconomic differences between the different regions of Kazakhstan. On the one hand, there are regions with a predominantly rural population and with agricultural and old industrial infrastructure; on the other, there are regions with a high level of urban population, with deposits of natural resources and competitive industry. The nal chapter of the book discusses the human dimensions of modern Kazakhstan education, science, healthcare, environmental protection and gender policy. Reforms, conducted by the Kazakh government after 1991, had to touch these spheres of social life too. At present, the higher education system is undergoing radical changes in Kazakhstan. In this sphere we have signed international agreements, including the Bologna Declaration. When referring to education and training specialists we should mention the Bolashak state programme, which occupied a remarkable place in the Kazakh education system in the mid-1990s. The programme is about preparing specialists for the country in the very spheres where there are shortages and taking the best of everything from foreign countries, while preserving young peoples attachment to the motherland, patriotism and a sense of national responsibility. The main strategic aim is to enable Kazakhstan to rely on its own resources, including in the education system, in the decades to come. As Kazakhstans rst President Nursultan Nazarbayev understands the objective of modernising the country and its society, the task is to move our independence from the outside world and the state of the object to the conscious management of processes of borrowing from external elements that help the modernisation of the political and governmental systems, i.e. become subjects and creators of our own modernisation. So what is modern Kazakhstan? A country that is successfully leaving behind the negative elements of its Soviet legacy, building
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an open and democratic society, which is liberal and secular in spirit. Kazakhstan is now leaving the transitional stage with economic reforms outpacing political ones. Facing various problems and difculties, Kazakhstan and its political elite have learnt to solve them and this should be recognised as the chief achievement of the postSoviet era. From a political, legal and psychological point of view Kazakhstan is a diverse society. Another inevitable objective faced by the new Kazakh political elite is to consolidate society. In Kazakhstans policy these priorities stand out: the construction of an efcient state which is capable of surviving in globalising international relations, of leading economically in the region and of remaining loyal to its Eurasian roots. Kazakhstan has everything to become a prosperous democratic state: ethnic diversity, a vast territory, a diverse economy and a well-educated population. Kanat Saudabayev Secretary of State of the Republic of Kazakhstan Minister of Foreign Affairs of the Republic of Kazakhstan INTRODUCTION

Modern Kazakhstan covers a territory in the very heart of the Eurasian continent. It is a country where various and often contradictory phenomena are entwined and synthesised; a country which at once belongs to East and West as a link of the Eurasian civilisation that has absorbed spiritual basics, ideas of humanism and the best traditions of world cultures and religions. Kazakhstan is located in the centre of Eurasia almost at an equal distance from the Atlantic and the Pacic. In terms of size, the country is the ninth largest in the world (2.7 million sq km), behind Russia, Canada, China, the USA, Brazil, Australia, India and Argentina. Its deep continental location signicantly inuences the countrys climatic conditions.
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On Kazakhstans expanses one can nd mountains and plains, wide and deep rivers and dry deserts. In its west lies the Caspian depression, and, to its east, the Ustyurt Plateau, stretching to the shores of the Aral Sea. The vast Turan lowland and the Kyzylkum desert are in the countrys south which are replaced by the Moyunkum and Betpak-Dala deserts further to the east. The plain is constrained by the southern offsets of the Urals Mountains and the low-rise Mugalzhar Mountains and the Turgai Valley. In the central part of the country are the Kazakh Uplands and in the southeast are mountain ranges, including Peak Khan Tengri (6,995 m). Kazakhstan has a great number of lakes and rivers, and the Caspian Sea coast stretches for 2,340 km the countrys west and southwest. The Ural River that merges with the Ilek tributary and the Emba River all ow into the Caspian Sea. To the east of the Caspian Sea in the sand desert is the Aral Sea, which not so long ago was the worlds fourth largest lake. In the southeast is another big lake Balkhash which covers an area of 18,200 sq km. Kazakhstan has almost 7,000 lakes, whose combined water surface exceeds 45,000 sq km. Remoteness from the oceans and the vast territory determine the sharp continental nature of the countrys climate, its zoning and insufcient precipitation. Kazakhstans climate differs from adjacent countries and from countries located on similar latitudes. Despite Kazakhstans particular climate, on sunny days its southern regions are not dissimilar to Egypt and California [1]. The average temperature in January ranges between -19 and -4 degrees Centigrade, while the average temperature in July uctuates between +19 and +26 degrees Centigrade with varying considerably between regions. Precipitation is also distributed unevenly: from less than 100 mm per year in desert areas to 1,600 mm in the mountains. Kazakhstan possesses sizeable reserves of mineral resources oil, gas, coal and metals. According to expert estimates, out of the 110 elements of the periodic table, 99 have been discovered in the country and 70 have been explored, while only 60 are actively being extracted. Kazakhstan is a major producer of tungsten and occupies rst place in terms of reserves, second place in terms of chromium and phos14

phorus ore reserves, fourth place on lead and molybdenum reserves and eighth place on iron ore. The country also has major deposits of iron, manganese and chromium ores, gold, barytes, potassium salts, compounds of bromine, sulphates and phosphorites. Kazakhstan is also rich in mineral, medicinal, industrial and thermal water reserves. Energy resources occupy a special place in the country. Fourteen promising oil basins, located all over the country, have been discovered, but so far only 160 oil and gas elds with combined reserves of 2.7 billion tonnes have been explored. The results of the latest explorations make it possible to suggest that major oil elds developed in western Kazakhstan on the Caspian Sea coast Tengiz, Prorva, Kalamkas and Karazhanbas are fragments of a greater oil structure, the nucleus of which is located in the northern part of the Caspian Sea. Its total reserves may reach as high as 3-3.5 billion tonnes of oil and 2,000-2,500 billion cu m of gas. The rich natural resources have encouraged industrial development in the country. One of Kazakhstans major industrial enterprises is the Sokolov-Sarbai Ore-enrichment Production Association, which is one of the countrys leaders in iron ore production and processing. Other agships of Kazakhstans industry include Mittal Steel Group, a leading steel producer, and the Access Komir coal company. The Kazmunaigas national oil and gas company is one of the largest companies in the country and is involved in drafting and implementing the single state policy and strategy in the oil and gas sphere. Kazmunaigas conducts the full cycle of work in this sphere: it explores, develops, extracts, processes, transports and sells hydrocarbons as well as building and operating oil and gas pipelines and production facilities in Kazakhstan and abroad [2]. Thus, the countrys advantageous geopolitical location, its vast territory and natural resources, political and economic stability objectively determine Kazakhstans rm positions in the Central Asian region. Its relations with the European Union and chairmanship of the Organisation for Security and Cooperation in Europe in 2010 are important in order for Kazakhstan to advance its interests in the global geopolitical system.
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Despite the diverse natural and other conditions that exist in any modern country, its real integrity and political, economic and social stability are maintained by a clearly functioning system of cooperation between all of its regions. Kazakhstan now has 14 regions and two cities of national importance. North Kazakhstan Oblast borders the Russian Federation. Its administrative centre is Petropavlovsk. The regions main production spheres are the processing of agricultural products which accounts for 35.4% of total output, power engineering with 31.5% and machinebuilding and metal processing with 23%. Pavlodar Oblast is located in the countrys north and borders the Russian Federation. The region has well-developed power engineering, metal and oil rening sectors. Grain production and animal husbandry dominate in the agricultural sector. Kostanai Oblast is also located in northern Kazakhstan and borders Russia. Its iron ore extraction and food industry are well-developed. Grain production and meat and dairy production are the main segments of its agriculture. Akmola Oblast is another northern region, traditionally strong in agriculture, especially well-known for the quality of its grain. Karaganda Oblast is Kazakhstans largest region, which is located in the countrys centre. Its main city is Karaganda. The region has welldeveloped energy, coal, ferrous and non-ferrous metal, chemical and food industries. Grain and meat production dominate its agriculture. Aktobe Oblast is situated on the border of the two continents Asia and Europe. The region is located in the countrys west and borders the Russian Federation and Uzbekistan; its administrative centre is Aktobe. It has a unique mineral resources base and occupies rst place in the world in terms of chromite ore, third place in Kazakhstan in copper ore and oil reserves and forth place in the country in terms of gas reserves. Ore-enrichment, chemical, food and machine-building sectors are well-developed. Atyrau Oblast is in the countrys west and borders Russia. Its capital is Atyrau. The main mineral resources are oil and gas, potassium salts; manganese, barium, calcium, bromine, cooking salt, lime
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and clay. Oil production, oil rening, petrochemistry, shing and sh products, and the cultivation of melons, watermelons and pumpkins are major sectors of its economy. West Kazakhstan Oblast borders Russia. The regions capital is Uralsk. Gas production, machine-building, the food industry and grain and potato production are well-developed. Mangistau Oblast borders Turkmenistan and Uzbekistan. The administrative centre of the region is Aktau. The main mineral resources are oil and gas. The oil and gas sector is a key sector in the region. Aktau also has a port on the Caspian Sea. South Kazakhstan Oblast is one of the largest regions in the country. Located in the south, it borders with Uzbekistan and its capital is Shymkent. Non-ferrous metallurgy, machine-building, the food industry and cotton production are developed well in the country. In addition, the region has plenty of mineral resources. Kyzylorda Oblast is also located in southern Kazakhstan. The region has the Aral Sea, which is an environmental disaster zone. The region extracts oil and cooking salt and cultivates rice. The region is home to the world-famous Baikonur space launching site which enjoys a special status and is practically run jointly by Kazakhstan and Russia (in accordance with an agreement signed on 25 March 1994) [3]. Zhambyl Oblast is in the countrys south and borders Kyrgyzstan. Its capital, Taraz, is an ancient Silk Road town, which has marked its 2000th anniversary. The region is famous for one of the worlds major deposits of phosphorites. The Amangeldy gas eld has been put into operation and will satisfy demand for gas in the entire south of the country. Animal husbandry and crop farming are well-developed in this region. East Kazakhstan Oblast borders Russia and China. Its administrative centre is Ust-Kamenogorsk. Most of its territory covers the Altai Mountains (the highest peak is over 4,000 metres). The Irtysh River ows through the region. Non-ferrous metallurgy, machine-building, power engineering, the timber industry, the food sector and meat and dairy production are key sectors in this region. Almaty Oblast is situated in Kazakhstans southeast and borders Kyrgyzstan and China. Taldykorgan is the regions capital. The key economic sectors are power engineering, metal processing, produc17

Kazakhstan today

tion of equipment and instruments and the light and food industries. The strongest agricultural segments are grain, beetroot and potato production, the wine industry and tobacco cultivation. The city of Almaty was Kazakhstans capital from 1929 until 1997. Its population was 1,130,100 people at the beginning of 1998, and this gure now stands at around 1.5 million. The city is located on the northern foothills of the Ile (Zailiyskiy) Alatau Mountains between the Ulken Almaty River and Kishi Almaty River. The citys northernmost point is at an altitude of 670 metres above the sea level and the southernmost at 970 metres. The city covers an area of 287.6 sq km. Almaty has the status of a city of national signicance. It is the largest nancial, scientic, education, cultural and tourism centre of the country. The citys many research establishments conduct studies practically in all spheres of science and they are united under the umbrella of the National Academy of Sciences, which was set up in 1946. The city is home to 75% of the countrys commercial banks and a majority of private pension funds and this determines its role as the countrys nancial centre. Almaty, as a nancial, scientic and cultural centre, has high investment attractiveness and fulls some of the functions of a capital city, acquiring the image of international business centre. It is the countrys largest transport hub. Astana is the capital of Kazakhstan. President Nursultan Nazarbayev initiated to move capital from Almaty to Akmola and this decision was passed by the Supreme Soviet of Kazakhstan on 6 July 1994. On 20 October 1997, by a presidential decree Akmola (it was renamed Astana in 1998) was announced as the capital of the Republic of Kazakhstan, and Astana is now the centre of the countrys economic, political and cultural life. The Kazakh settlement of Karaotkel was located on the site of modern Astana and it was on the northern branch of the Great Silk Road which linked Europe and Asia. In 1832, a military fortication was founded in the settlement and it swiftly turned into a major trade centre. The town changed names several times it was called Akmolinsk until 1961, Tselinograd in 1961-1992 and the previous name in
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the Kazakh spelling of Akmola was returned to the city from 1992 until 1998 and it received the new name, Astana, on 6 May 1998. By 2008, the capitals population had already exceeded 600,000. The capital now has 20 twin cities Moscow, Minsk, Kiev, Chisinau, Tashkent, Riga, Tbilisi, Baku, Cairo, Islamabad, Berlin, Budapest, Warsaw, Vilnius, Ankara, Gdansk, Dubai, Bangkok, Seoul and Amman. Astana became a member of the International Assembly of Capitals and Cities in 2000. The pace and wide range of transformations that are taking place in Astana have not gone unnoticed by the international community. UNESCO awarded Astana with the title and medal City of Peace in 1999. The new capital of sovereign Kazakhstan Astana is becoming an increasingly important political, socioeconomic and cultural centre of not only Kazakhstan but also of Central Asia and Eurasia. Now claiming a broad reputation as a rapidly developing city, Astana is generating professional interest among politicians, political scientists and sociologists. As one of the worlds largest nations, Kazakhstan has a relatively small population its population density is 6.1 people per square kilometre. The countrys population is 16.4 million people (2009), and life expectancy is 66.5 years. In the past two decades population growth has slowed in Kazakhstan. This is explained by, on the one hand, emigration of signicant part of the population, and, on the other hand, a steady reduction in natural growth. However, emigration rates gradually slowed, while natural growth increased. From 2002 natural growth has outpaced a negative migration balance, and since 2004 Kazakhstans population has started growing as a result of natural growth and inward migration. In 1992 the government began encouraging ethnic Kazakhs who were living abroad to return to Kazakhstan. Kazakhstans population is multiethnic: there are 131 ethnic groups in the country. According to 2007 statistics, ethnic Kazakhs account for 59.18% of the population, ethnic Russians 25.63% and other ethnic groups total 15.19% [15, p 44]. Current and more precise data will be obtained from the results of the census held in the country between 25 February and 6 March 2009.
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The state takes into account the multiethnic nature of the countrys population. With the aim of strengthening social stability and interethnic accord in the country, the Assembly of Kazakhstans Peoples [sic] was set up as an advisory body under the Kazakh president in 1995.* The assembly aims to draft practical recommendations to consolidate society based on assessment of events and forecasts of the political situation in the country. As a result of joint efforts by government agencies and the Assembly of Kazakhstans People the state of interethnic relations is stable and has favourable dynamics. Kazakhstan has for a long time distinguished itself because of the peaceful coexistence of many different ethnic groups practising various religions Tengrianism, Zoroastrism, Buddhism, Christianity, Judaism and Islam, and in modern history, after the break-up of the USSR, Kazakhstan has become one of the few new independent countries to develop steadily and without conict. Kazakhstan, as a multicultural country, now acts as a bridge between East and West. There are about 3,500 religious organisations, representing 46 denominations. The role and place of religion have signicantly changed in modern Kazakh society. In Kazakhstan, like in the entire world, religion is playing an increasingly noticeable role, and this specically concerns socio-political processes. It is through religion that a signicant part of the population is trying to revive traditional values and fundamental morals. The role and place of religion are also changing in the system of social relations, which is why a constructive dialogue between denominations is one of the main ways to achieve stability both in the country and in the world. The third Congress of World and Traditional Religions was held in Astana in July 2009. Kazakhstan is an ideal place for this type of meeting because interethnic and inter-religious accord has always received particular attention here. Important decisions aimed at ensuring the peaceful and stable development of Kazakhstan were the closure of the Semipalatinsk nuclear testing ground and the declaration of the countrys territory as a
*

In 2007 it was renamed the Assembly of Kazakhstans People.

nuclear-free zone. Over 40 years (1949-1989) 450 atmospheric, ground and underground tests had been carried out, which have contaminated the ground over a considerable area and caused irreparable damage to the lives and health of almost half a million Kazakh citizens. Kazakhstan, which obtained independence in December 1991, inherited the worlds fourth largest nuclear arsenal, one which exceeded those of Britain, France and China combined. This historical step has become a great contribution by Kazakhstan to the global process of nuclear disarmament and non-proliferation, the signicance of which is acquiring increasingly immense topicality. Since then Kazakhstan has fully freed itself from the entire nuclear arsenal and destroyed the entire auxiliary infrastructure such as launching silos and test tunnels at the site. Having voluntarily given up nuclear weapons and built peaceful relations with the rest of the world, Kazakhstan has ensured favourable conditions for its economic development and prosperity. Another major facility of strategic importance Kazakhstan inherited form the USSR was the world-famous Baikonur space launching site, which was a symbol of the Soviet Unions geopolitical power. All types of Soviet-made booster rockets have been launched from this cosmodrome. Baikonur is one of the worlds three space launching facilities, along with the ones on Cape Canaveral (the USA) and Jiuquan (China), which are designed to launch manned spacecraft. It was Baikonur that sent the rst satellite and the rst man into space; it also launched the manned spacecraft Vostok, Voskhod and Soyuz and orbital stations Salyut and Mir, as well as the Energiya-Buran space system and interplanetary space apparatuses. The cosmodrome experienced a critical period in 1991-1993 after the break-up of the USSR. The situation was resolved in the following way: the cosmodrome, along with the town of Leninsk (renamed Baikonyr in December 1995) was leased out to Russia in 1994. The annual rent is $115m, which is paid in kind with military and other vehicles and equipment. A further $50m per year is provided for maintaining infrastructure. Plans to build Kazakhstans Baiterek space launching facility at Baikonur were announced in late 2004. It is expected that it will
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launch commercial satellites with Angara rocket boosters. Russia and Kazakhstan will operate the new facility on a parity basis. Baikonur today is still a complex system, designed to launch spacecraft and ballistic objects. This base, serviced by space troops, launches practically all the newest spacecraft that are designed in Russia. The greatest value of Baikonur for Russia and global space science is that only this cosmodrome is capable of launching manned spacecraft and heavy Proton rockets, which have to bear the main workload of commercial launches now. The space launching site covers an area of 6,717 sq km. A total of 80,000 people live at the cosmodrome, half of them are Kazakh citizens who service it and its infrastructure. Kazakhstan is now an example of successful development among post-Soviet countries. The former Kazakh SSR was replaced by a rapidly modernising country which has established itself as a sovereign state and an equal member of the international community in its years of independence. Kazakhstan is a leader in terms of economic growth not only among CIS countries, but also all countries with transitional economies. Because of its geopolitical location, energy resources, weighed and balanced foreign policy, modern Kazakhstan acts as a stabilising factor in the Central Asian region and serves as a catalyst for its further development.
References 1. / . . .. ; . . .. (.) .; . . . . . : , 2008. 880 . 2. . . / . . .. . - . : , 2005. 236 . 3. http://www.materik.ru

CHAPTER 1. THE HISTORY OF KAZAKH STATEHOOD 1.1. Kazakhstan before the 15th Century People settled in Kazakhstans territory about one million years ago in the Upper Palaeolithic Age, and this has been proven by the excavation of cavemen encampments: Borykazgan and Tanirkazgan in the Karatau Mountains; Kudaikol, Zhaman-Aibat, Obalysai, Ogiz-Tau, Ulken Ak Maya in central Kazakhstan; Arystandy and Karaungur in south Kazakhstan; Onezhek in Mangistau Oblast; Kanai, Svinchatka, Peshchera and Novo-Nikolskoye in eastern Kazakhstan; Shatpakol, Shoshdaul, Kyz-Yemshek, Kainar, Zhylan-Kaban, Koi-Kara, Sarykamys, Shayandy in Atyrau Oblast and other camps. During this period economic activity was about consuming readily available natural products cavemen collected wild crops, fruit and berries and hunted wild animals.
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Hunting inuenced the humans outlook on the world a cult of hunting magic emerged and it was based on a belief in establishing power over animals by obtaining their image or symbol so-called totemism. The main primitive arts were the painting of animals, carving and primitive sculptural arts. Preserved and examined monuments of the Palaeolithic Age make it possible to conclude that proto-Kazakh territory (i.e. the territory of present-day Kazakhstan) was part of a zone of formation and development of humans since the early Palaeolithic Age. The Palaeolithic Age was replaced with the Mesolithic Age and later with the Neolithic Age. At that time crop farming and animal husbandry developed and people made the rst bows and arrows to make hunting easier. Socially, the Neolithic Age was a period of tribal communities and the supremacy of collective labour and common ownership of production tools. In addition, this was the time of greater forms of societal organisation: formations of tribes or tribal unions, which, in turn, consisted of several tribal communities united by blood relationship and the homogenous nature of economic activity. There are currently over 500 known Neolithic monuments in Kazakhstan; the brightest and most interesting of these are the Kul Sary camp in western Kazakhstan and Kyzyl-Su in the countrys east. Neolithic tribes of Kazakhstan, preserving their specics and distinctive cultural traditions, developed in close interaction with tribes of neighbouring regions. The period that followed was the Eneolithic Age copper-stone age, which started the switch from the use of stone to the use of metal. The adoption of copper tools of labour gave an impetus to the development of crop farming and animal husbandry, which, as a result, gradually replaced hunting and collection. Thus, the consuming economic formation was replaced with a producing one. The basics of mining, sowing and ceramic production were then founded. The sophistication of activity led to further evolution of the social formation tribes started uniting into tribal unions. Among the Eneolithic monuments discovered in Kazakhstan, researchers single out the monuments from the Botai culture, which
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received its name from the Botai railway station in Akmola Oblast and are dated back to the third to second millennia BC. Excavations unearthed traces of 158 units of housing. Examination showed that these were buildings from the last period of the settlements existence. Archaeologists discovered tools made of different types of rocks, clay and bones. Functional denitions showed the sophisticated economic mode of the population. For example, bone elements of bridles and hopple clasps pointed to the beginning of domestication of horses; stone clubs, knives, daggers, arrow-heads, darts and spears were linked to hunting; harpoons pointed to shing. The existence of tools to process and polish skins, needles, pricks and pierces described the sophisticated nature of the economic life of representatives of the Botai culture. Bronze was invented on the Eurasian steppes at the turn of the second to rst millennia BC. Ancient people managed through adding tin to copper to make metal articles much stronger. Tribes that inhabited Kazakhstans territory in the Bronze Age left archaeological monuments (settlements, burial grounds, mines and petroglyphs) which belong to the Andronian culture (the name was derived from the place of the rst excavations of a burial ground outside the village of Andronovo near the town of Achinsk in southern Siberia). Archaeologist Mikhail Gryaznov discovered similar burial grounds in western Kazakhstan. Later Andronian monuments were also found in southern and southeastern Kazakhstan and other parts of Central Asia. Representatives of the Andronian culture are related by origin, economic activity, language and culture tribes and tribal unions. Studies of Andronian artefacts led to the conclusion that most of their settlements had been built along river banks. Grain grinders, rectangular and round pestles for crushing and milling grain, sickles and stone hoes were found in all settlements. Animal husbandry played a considerable part in the lives of Andronians. Animals produced food, wool, leather, bones for items and dung fuel. The main products were meat and milk and the main animals were sheep, cows and horses.
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Andronians often roamed when pastures around their settlements became exhausted. Later, in the 15th century BC, they developed the drive-to-range form of animal husbandry, i.e. shepherds drove animals to remote pastures and drove them back only in autumn. The chief ethnographic features of the culture that distinguished the Andronian population from others are burial grounds in form of stone fences of different shapes: rectangular, round or oval. Another distinctive trait of the Andronians was the production of metal jewellery earrings, pendants and pieces for head-dresses. Andronian monuments have been found and studied almost in all regions of Kazakhstan. In western Kazakhstan the Kirgeldy burial ground and the settlement of Tasty-Butak were studied; in central Kazakhstan the Bylkyldyk, Karasai, Temir-Astau, Karabiye, Yelshibek, Balasar, Aksu-Ayuly, Tegibai-Bulak, Buguly, Bota, Akshatau and Aishrak burial mounds and settlements; in eastern Kazakhstan the Kanai, Sarykol and Koitas mounds; in northern Kazakhstan Borovoye, Alekseyevskoye and Yemovskoye; in southern and southeastern Kazakhstan the Tamgaly, and Karakuduk burial grounds and settlements and the Tegisken mausoleums. Today a very well-known tourism site is the Tamgaly petroglyphs. The Tamgaly forge is located 170 km north of Almaty. Archaeologists believe the gorge was home to a sanctuary for one of the Andronian tribes. The preserved artefacts are images of sun-headed gods, decorated warriors, grooms and brides, women delivering and multi-gure compositions depicting human beings and animals, scenes of hunting animals and sacricing bulls that had been chiselled on smooth rock surfaces. Compositions depicting chariots are very rare, while solar signs are widespread. Most petroglyphs were painted in the Bronze Age. Pictures painted in the Sak animal style, are mainly separate from much earlier petroglyphs, but in some cases they complement and even overlap them. Apart from petroglyphs, a great number of burial grounds were discovered at Tamgaly: stone burial boxes of the Middle and Late Bronze Age, earth mounds and stones dated between the Early Iron Age and the present age.
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Thus, in the Bronze Age of the development of humankind tremendous changes took place in the territory of Kazakhstan. Archaic forms of economic activity and everyday life of the Neolithic Age were replaced with crop farming and animal husbandry, temporary camps with settlements, stone and silicon instruments with high-quality items of alloys of different metals. Bronze Age tribes developed distinctive cultures which became the basis of the culture of early nomads of the Iron Age. At the beginning of the Bronze Age, in the rst millennium BC, the population of present-day Kazakhstan switched to a nomadic lifestyle. Tribal unions emerged at that time, and the primitive communal society started decaying. Information about tribes and tribal unions that inhabited Kazakhstan dates back to the middle of the rst millennium BC. According to ancient Persian sources, they bore the name of Saks and occupied Zhetysu (or Semirechiye in southeastern Kazakhstan, northern Kyrgyzstan and western China) and the basin of the Syr Darya River; Sauromats inhabited northwestern Kazakhstan, while Caspians lived on the eastern coast of the Caspian Sea. These tribes were involved in animal husbandry and crop farming. It was approximately at that time that states such as Sogd and Bactria existed in the southwest of the region with a signicant level of culture for the time. In the late fourth-early third centuries BC new tribes of Uisuns formed in the territory of present-day Kazakhstan between Lake Balkhash and the foothills of the Tien Shan Mountains, Kangyui in the foothills of the Karatau Mountains and Alans, descendants of Sauromats, settled in the western steppes of modern Kazakhstan. In the rst half of the rst millennium BC the primitive formation decayed in these areas and, in the sixth century, it was replaced with the feudal formation that existed for over 1,500 years. The Great Silk Road, which cut through modern-day Kazakhstan and linked China with Byzantium, played a crucial role in the development of the region. The chief commodity was silk fabrics. As a result, many towns emerged along the northern path of the route in the basin of the Syr Darya River.
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Perhaps the best known ancient town is Otrar, which was located at the conuence of two rivers the Arys and the Syr Darya. This place is called the Otrar Oasis, the ancient names of which are Turband, Turarband and Turar. The oasis is now located in South Kazakhstan Oblasts Otrar District. To the west it is constrained by the Kyzylkum desert, which covers an area between the two rivers the Syr Darya and the Amu Darya. The Syr Daryas right bank, which is part of the oasis, is a plain yet slightly hilly steppe covered with monotonous ora. It ends at the foothills of the Karatau range. The Otrar Oasis has always occupied a convenient strategic position in southern Kazakhstan. The Great Silk Road ran through Otrar, which is why almost all mediaeval Arab and Persian authors mention it. Otrar was located at the junction of various geographical landscapes and was a trade and transport hub at the time because southbound routes along the Syr Darya (to Shash, Sogd and further to Merv, Nishapur and Rey) and north- and west-bound routes through Khorezm (to the Aral Sea region, the Volga region, the Black Sea region and the Caucasus) intersected there. Kazakh scientists have been conducting archaeological research and excavations in the Otrar Oasis since 1969. The ancient towns of Otrar, Kuiruktobe, Kok-Mardan, Altyntobe and Mardan-Kuik have been excavated. The town quarters of the 16th-18th, 14th-15th and 11th and 12th centuries; a potters quarter from the 13th-14th centuries; baths from the 13th-15th centuries; a brick workshop from the 13th-14th centuries and a mosque and palace from the late 14th-15th centuries were unearthed in Otrar. The juma mosque of the late 14th-early 15th centuries was an interesting building in Otrar. Its construction was linked to Tamerlane, who ordered the construction of the mausoleum to Hajji Ahmed Yassaui in Turkestan and the mausoleum to Arystan Baba in the Otrar Oasis in Kazakhstan. No less famous was the town of Sygnak. It was rst mentioned in sources in the 10th century. In the 12th century Sygnak became the capital of the state of Kypchaks.
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The 13th century historian Juvayni described the destruction of the town by the Mongols in 1219 for showing resistance. He wrote that Jochi, moving downstream along the Syr Darya, conquered one town after another. Jochi was accompanied by two local traders Hasan Hajji and Ali Hajji. Hasan Hajji was sent to Sygnak to persuade its residents to surrender. However, the residents killed the trader and offered resistance to the invaders. Only after seven days of attack was Sygnak captured and its disobedient population massacred completely. Life in Syr Darya towns, many of which remained in ruins, was suspended for a long time. In the middle of the 13th century, Sygnak, which was listed as Sgnakh, was visited by Armenian King Hethum I and the town was mentioned once. In the second half of the 14th century the town became the capital of the White Horde. Sygnak was ruled by khans Erzen, his son Mubarek Hajji, Urus Khan and Tokhtamysh. It had a mint and a construction boom. After the failed ght of Tokhtamysh against Tamerlane the town was captured by Tamerlanes grandson Ulugbek, who tried to gain a foothold on the Syr Darya, but in 1423 he encountered a defeat and was pushed back to the south by troops of Barak Khan, a grandson of Urus Khan. Sygnak, located on the border with the always boiling and restless steppe, occupied a strategic place. One could only rule the steppe when one controlled Sygnak and the fertile plains cultivated by the farmers, around it. In the 14th-18th centuries Sygnak belonged to Kazakhs and was the largest town in the lower streams of the Syr Darya. Trade was active in noisy eastern markets and the environs were cultivated and watered by canals that took water from the Syr Darya Ordakent, Kyzyltal, Buzgul-Uzyak, Tyumen-Aryk and others. The best bows and arrows supplied by nomads were very popular, which meant that they could buy grain, fabrics and luxury items. Around the ruins of the town there is now a dry steppe, covered with saxaul and thorny bushes. Low-rise hillocks with the ruins of brick buildings and tiles point to the remnants of the architectural constructions which must have been in abundance around Sygnak.
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The town of Taraz, which occupied an important place on the Great Silk Road, exists and prospers to this day. The history of the emergence of Taraz is a very ancient one and is intertwined with the histories of the major tribal unions of Saks, Uisuns, Kanlys and Alans who inhabited in large tracts of Kazakhstan. The rst references to the town were made in the sixth-seventh centuries: in 568 Byzantine envoy Zemarch, on his way to Turkic Kagan Dizabul, mentioned Taraz, and Buddhist pilgrim Suan Jian, who crossed Zhetysu in 630, described some towns in this region, including Taraz. It is conventionally believed that Taraz was founded in 568 when it was rst mentioned in Greek written sources. The emergence of the town was helped by favourable conditions a relatively mild climate, fertile soil, rich pastures of its environs, which attracted many peaceful animal herders and tillers. Archaeologists believe that the ancient Taraz consisted of the traditional parts of Central Asian towns: a citadel and a shahristan (the centre of town). The ruler of the town lived in the citadel with the walls stretching 145 and 113 metres he possessed the entire oasis. The citadel housed treasures, weapons and stockpiles of goods owned by the ruler, nobility and traders. The citadel also minted copper coins from the eighth century and, later, bronze coins. In the eastern part of the shahristan archaeologists discovered a lock of gates overlooking the Talas River. Arab geographer Makdisi observed that the chief gate of the shahristan had been the eastern gate. The shahristan represented a rectangular site oriented to all cardinal points. The eastern side stretched for 390 metres, the northern for 360 metres; total area was about 14 ha. Excavations discovered a pipeline, pre-gate buildings, fort walls and many other facilities. The most amazing fact is that excavations unearthed ve cultural layers of the town and each of them produced many nds (samples of ceramic items of different shapes), proving the high level of production. It is worth noting that the third layer produced many Tyurgesh and Muslim coins.
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The most ancient lawyer of Taraz is the fth the poorest in terms of nds. However, wells and holes were discovered in several places and many nds were unearthed in them the handle of a burial sarcophagus in a form of monkey head, a statue of a horse with a saddle and the entire harness, items with handles in forms of bird heads and tile pipes with a length of 45 to 70 cm and a diameter of 21 to 23 cm, with a total length of 12 metres, were found in these. Studies of the water pipeline showed that the town was supplied water in three ways: rstly, water was supplied directly from the Talas River (it used to ow nearby town walls); secondly, from irrigation ditches and wells (excavations showed that these were numerous); thirdly, from a water pipeline. One of the major discoveries was the location of an ancient temple. Historical sources tell us that it used to be a church which Ismail ibn Ahmed later turned into a mosque. One of the most interesting facilities of the town is a mediaeval bath, located at the northeastern corner of the citadel. A rectangular shape, it consisted of ve rooms and was decorated with frescoes. In some rooms paintings covered the whole wall. The element of the paintings is a geometrical ornament: octagon stars linked via crosses, octagons and trefoils of red, black and yellow colours. Within the walls there were heat-transmitting pipes laid under the oor and walls which evenly heated the entire premises. Water buckets and a bath were found in the rooms. This sort of heating was popular and was used in the time at Uzbeks baths in Bukhara, Samarkand and other Central Asian towns. People entered the bath from the north. A oor was preserved from it as it was made of square tiles of burnt clay. Archaeological excavations discovered the artisans quarter in ancient Taraz. A building with an original ceramic stove was preserved inside a clay-wall building. It had a cupola-shape form and walls (5-6 cm wide) of burnt bricks made of crosshatched walls. The stove was about one metre in diameter and 40 cm tall. The stove was similar to tandoori used now to bake at bread. Judging by the tandoori and its relatively small size and its complicated conguration (double walls and air-pumping pipe), the stove
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was used to bake spherical and conical containers. This demanded high temperatures. Not far from the stove, within the building, several of these containers (not decorated) were discovered. During excavations a great number of irrigation and household ceramic items were found, which were usually of good quality and had good burning. Most watering vessels, such as plates, bowls and pialas had, along with geometrical ornaments, Arabic writings excerpts from the Koran or prayers to God. A vessel of Sogdian type with a glossy surface decorated with big ornaments reminiscent of narcissus owers looking down was also found. The numerous nds show that at the time Taraz was a major trade and cultural centre of the Talas valley with busy, noisy bazaars, shady gardens and magnicent mosques. Little craft workshops produced household items, unique and original. These items were popular in regions far away from Taraz. Taraz, like other towns, decayed at the beginning of the 12th century as a result of the Genghis Khan invasion. The town is linked to a tragic event known as the Otrar catastrophe when Genghis Khan sent a trade caravan of several hundreds of camels loaded with leather, jewellery, furs, silver and gold accompanied by 450 people in summer 1218 to Otrar. Otrar ruler Kypchak KayirKhan Inalchik suspected traders of spying and ordered their killing, and robbed their caravan. Genghis Khan through his envoys demanded the extradition of Kaiyr Khan, but in response his envoys were killed [1, p 55]. Genghis Khan could not forgive such an impudent move and took his troops to wage a war against Central Asia. It seems that Genghis Khan paid particular attention to his assaults against Muslim countries. He seemed to collect information from Muslim traders and defectors about the internal situation and military power of the state of Khorezmshah. In September 1219 Genghis Khan started his campaign. His army was made up of 150,000 troops, including 111,000 Mongols and others were soldiers of Genghis Khans vassals Uighurs and Karluks. The route of the Mongol armys advancement to Maverannahr lied through the Irtysh River and densely-populated and economically
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most developed parts of Kazakhstan through Zhetysu to towns along the Syr Darya. The population of present-day southern Kazakhstan was rst to face the Mongol invaders and they offered resolute resistance. The Mongols staged en-masse terror and violence and destroyed whole regions and many towns. Arabic and Persian sources listed about 30 towns in different regions where the population was fully massacred by the Mongols [2, p 6]. Genghis Khans invasion played an important role in Kazakhstans history because its territory became part of the three Mongol Uluses: the largest (steppe) part was ruled by the Jochi Ulus, southern and southeastern Kazakhstan by the Chagatai Ulus and the northeastern part of Zhetysu by the Ugudei Ulus. The Jochi Ulus occupied vast lands to the west of the Irtysh River encompassing the northern part of Zhetysu and the whole of Desht-e Kypchak to the lower Volga region. The Chagatai Ulus, in addition to previously mentioned areas, occupied East Turkestan and Maverannahr (an area between the Amu Darya and Syr Darya). Ugudei possessed western Mongolia, the upper streams of the Irtysh River and the Tarbagatai range. Genghiss descendants tried to turn their realms into independent possessions. After the death of Genghis Khan this trend increased and the empire fell apart into several independent countries. The successor to Jochi, who died in the same 1227, was his son Batu. He conquered western Desht-e Kypchak, the lands of Volga Bulgars and further western areas. He destroyed major Russian princedoms and devastated Poland, Hungary, the Czechs and others. As a result of a seven-year campaign (1236-1242) Batu took hold of lands west to the Volga River to the lower streams of the Danube, including the Crimea and the North Caucasus and West Kypchak steppes. Batu founded a new Mongol state the Golden Horde which included the territories of Jochi Ulus Eastern Desht-e Kypchak, part of Khorezmshah and western Siberia as well as newly conquered lands in the west.
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Russian principalities destroyed by Batu became vassals of the Golden Horde. Russian princes received titles from the Golden Horde and paid taxes, but remained relatively independent. According to some eastern sources, Batus state was called the Jochi Ulus and it was known as the Golden Horde. Its capital was Sarai-Batu (near Russias Astrakhan) and it was later known as Sarai-Berke. Initially, the Golden Horde was subordinated to greater Mongol khans, but by 1260 the Mongol Empire disintegrated into independent uluses. Then under Berke Khan (1256-1266), a brother of Batu, the Golden Horde became an independent state. Its successor Mengu Khan (1266-1280) started minting his own coins. The Golden Horde turned out to be an unstable country because it was weakened by internal discord, which resulted in the formation of the Ak Orda (White Horde) Khanate in the territory of present-day Kazakhstan between the Syr Darya River and the Aral Sea and the Ishim River in the northeast. By the beginning of the 15th century, Ak Orda had been broken up into several pieces: the Nogai Horde which occupied the area between the Urals Mountains and the Volga and the Uzbek Khanate which stretched from downstream Syr Darya to the Urals and the Tobol River. In the second half of the 15th century Kazakh khanates started to form and this process completed the formation of the Kazakh ethnos in the early 16th century. The ethnic composition was made up of ancient tribes of Uisuns, Kanlys, Kypchaks, Konyrats, Dulats, Argyns and Mongol tribes who arrived here in the 13th century; tribes that came from the Volga-Urals region, and tribes from the disintegrated Siberian Khanate of Kuchum. As often happens in history, it is hard to judge the events of that time. Obviously, the Mongol conquest was accompanied by the destruction of towns and large-scale massacres, the destruction of production and the blossom of slave trade. However, the Mongol rule encouraged trade, international relations and established postal services. Moreover, the Mongols, following their idea of centralised power, united previously chaotic tribes. The norms of nomadic lifestyle were regulated by Genghis Khans Yasa a collection of common law adopted for the new conditions.
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1.2. Kazakh Khanate (15th-18th Centuries) The reference point in the establishment of Kazakh statehood is believed to be the emergence of the Kazakh Khanate in 1456. The formation of the Kazakh Khanate was closely linked to the history of both the Golden Horde and Mogulistan. By the 14th-15th centuries most of present-day Kazakhstan was part of the Golden Horde. The south and Zhetysu of Kazakhstan was part of Mogul Stan the state of Chagatais which was established in 1370 after Tamerlane seized power in Central Asia. From the second half of the 14th century, the process of split and later of disintegration of the Golden Horde began. Many different independent khanates emerged in the territory of Kazakhstan, among which the formation named the State of Nomadic Uzbeks by historians was distinguished. This khanate reached its zenith under Khan Abulkhair (1429-1468). The population of this khanate were Uzbek-Kazakhs. In the late 1450s Sultan Dzhanibek and Sultan Kerei, with tribes of Alshyns, Argyns, Kereis, Kypchaks and Zhalairs, moved to the territory of Mogulistan. In 1456 Sultan Kerei was elected khan in the territory of present-day southern Kazakhstan the supreme ruler of Kazakhs. This moment was the beginning of the history of the establishment of Kazakh statehood. Ever since the emergence of the Kazakh Khanate on Central Asias map the word Kazakh has become an ethnonym the name of a people. From the emergence of the Kazakh Khanate the gradual process of its expansion started because of various Kazakh tribes voluntarily joining. Historians single out Khan Kasym (1511-1518), Khan Khak-Nazar (1538-1580), Khan Tauekel (1582-1598) and Khan Yesim (15981628) from among political gures of that period as personalities who played an important role in the formation and strengthening of the Kazakh Khanate. Under Khan Yesim the process of uniting Kazakh tribes into one state was completed. That period included the division of the Kazakh people into three Zhuzes Great (Uly), Middle (Orta) and Little (Kishi).
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Zhuz is an economically and geographically specic district inhabited by a group of communities which, until the formation of the Kazakh ethnos, was the territory of a tribal union. The word Zhuz means part or side. The foundations of the formation of Zhuzes were a merger of certain tribes into tribal unions. Zhetysu, the homeland of the Great Zhuz, is one of the main centres of the ethnogenesis of the forming Kazakh ethnos. The Great Zhuz was populated by Uisuns, Kanlys, Dulats, Albans, Suans, Zhalairs, Sirgeli, Oshakty and other tribes, most of which were related to ancient inhabitants of Zhetysu. In Russian sources the Great Zhuz was sometimes called the Uisun Horde or the Great Uisun Horde. Another specic district of roaming was to the north of Zhetysu. The main winter grounds were in the areas around the Syr Darya, the Karatau Mountains and the Moyunkum desert, while summer grounds were around the Tobol, Yesil, Nura and Sary-Su rivers in central Kazakhstan. These vast lands were inhabited by the main tribal unions of the Middle Zhuz: Kypchaks, Argyns, Naimans, Kereits, Konyrats and Uaks. However, the synonym of the Middle Zhuz was the name of the union of Argyns. As early as in the 17th century, like now, Argyns made up the majority of the Middle Zhuz. Western Kazakhstan had its own, relatively closed district of winter and summer grounds. Winter pastures were in the lower reaches of the Syr Darya and the Ural River and in the meeting point of the Yrgyz and Turgai Rivers and other places, while summer ground were along the Ural, the Tobol, the Yrgyz Rivers and the Mugalzhar Mountains. That is where the Little Zhuz was formed by three main tribal unions Alimuly, Baiuly and Zhetiru. The nomadic population of the Little Zhuz was linked to the sedentary districts of the Volga and Ural Rivers. Despite the relative distinctiveness, representatives of all three Zhuzes spoke in one language. There were tiny differences in dialects but they could understand one another perfectly. There were also differences in everyday life, dresses, furniture and utensils and folklore. The social relations of the Kazakhs were conditioned by the nomadic lifestyle domestication of livestock and grazing it on pastures,
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and the consecutive processing of products of economic activity. One of the earliest forms of ownership was the ownership of livestock, and this phenomenon helped property and social differentiation deepen. At the same time, some scientists believe, there was no private ownership of land, in contrast to sedentary societies. Land belonged to a community or tribe. Routes of roaming had been developed by centuries-long experience. Kazakhs grazed their livestock on hills in the summer, and on the plains in winter. Some Kazakhs were involved in farming crops, mainly, in southern Kazakhstan, Zhetysu and the areas around the Shu, Talas, Syr Darya and Arys rivers. Crafts and household trades related to the processing of animal products tanning, blacksmith and shoe-making also played a particular role in the economy of Kazakhs. Carpentry and jewellery also developed at that time. The social organisation of the Kazakhs was above all a combination of different relations, primarily genealogy. Major groups, even an ethnos, as Kazakhs understood it, was a result of the segmentation of one initial family. Family is still a key notion for Kazakhs today. The socioeconomic relations that existed in nomadic societies were unique. In traditional Kazakh society there were three large social groups. Social status, not material wellbeing, was the dening factor. Ak-suiyek (white-bone) aristocrats, including the Tore and Kozha (Hajji) subgroups, were the highest social stratum. The Tores were believed to have descended from Genghis Khan. The Kozhas were believed to be descendants of rst followers of Islam and enjoyed huge authority among Kazakhs. The Tores and Kozhas were not part of the traditional Zhuz system and were believed to constitute the steppe aristocracy. Middle classes kara-suiyek (black-bone) were the biggest group: these were families which ran their own economic entities. They were the main force of a tribe, its human, military and production resources. There were several groups among the black-bones which had professional and administrative nature. These were bis (judges) and
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batyrs (warriors). The bis were the most authoritative people in the steppe and they performed administrative and judicial functions. Batyr-warlords mainly acted during military campaigns and led militias of tribal unions. The lowest class was the Kuls, or slaves who had practically no rights. However, the institution of slavery in the nomadic society was not developed to such a great extent as in sedentary society and the number of slaves was insignicant. This social organisation was characteristic of the Kazakh Khanate, which occupied western Zhetysu and the valleys of the Shu and Talas Rivers by the middle of 15th century. The Kazakh Khanate was not a centralised state and its political and administrative system was inuenced by the nomadic lifestyle and living conditions of the population. The khanate consisted of feudal possessions uluses, which were headed by sultans who were descendants of Genghis Khan. The head of state was the khan, who combined supreme powers (civil, military and administrative). The Kazakh Khanate reached its highest level of development in the 17th century under Khan Tauke (1687-1817). Scientists credit his rule with the establishment of the legal basis of Kazakh society the Zheti Zhargy (Seven Principles) code of laws. This code regulated land, military, judicial and family relations; it also detailed punishment for criminal offences. The judicial system was based on the common law adapt and the Muslim law the sharia. Judicial functions were performed by the bis who also headed tribes. Particularly complicated cases were heard by a congress of bis. Sultans and even the khan took part in hearing some cases. For hearing cases, bis, sultans and the khan received remuneration bilik, khanlyk and some other gifts. If the defendant avoided hearings or fullling rulings, the claimant had the right to perform the barymta (forced seizure of livestock). According to Zheti Zhargy, usually criminal liability was extended directly to the guilty person, but the principle of collective responsibility of a community was also practised. For example, if the defendant did not turn up at hearings or did not pay the obligatory kun (price),
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then the ne was recovered from the entire community. In such cases members of the community exercised the right to punish the guilty person. A measure of punishment, such as imprisonment, did not exist in Kazakh society, so there were no prisons. After the death of Khan Tauke feudal internal ghts worsened, as a result of which the Kazakh Khanate was politically divisive. In that period the foreign political situation also worsened. Volga Kalmyks and Yaitsk Cossacks raided the Kazakh Khanate from the west, Siberian Cossack and Bashkirs from the north and Bukhara and Khiva troops from the south. However, the chief enemy was the Dzungars or western Mongolian tribes who united into the Dzungarian Khanate. Dzungars advanced into the steppe gradually: erce ghts interchanged with truces, so raids stopped for some time, but peaceful periods were short-lived. The Dzungarian Khanate strengthened and grew, demanding new resources. In spring 1723, Dzungars launched a large-scale assault on the Kazakh Khanate. This war was remembered as years of great disaster. Kazakhs had to retreat and moved away to Khiva, Samarkand and Bukhara. After receiving a temporary respite, and, with a desire for revenge the Kazakh people managed to consolidate and offer armed resistance. A year later Kazakhs, led by Khan Abulkhair, achieved a number of victories and relieved the Dzungars of Otrar, Shymkent, Turkestan and Sairam. In 1726 the tribal leaders of all three Kazakh Zhuzes held a congress and elected a sardar the supreme commander-in-chief of united Kazakh troops. Little Zhuz Khan Abulkhair became the sardar and led the Kazakh militia to several victories, including the well-known battle at Bulanty in the Ulytau foothills in Central Kazakhstan and the Anrakay battle near Lake Alakol. Despite the victories, Khan Abulkhair called his numerous troops back and returned to his tribal lands in western Kazakhstan. This was prompted by an agreement that he, as a victor over the Dzungars, was to occupy the throne of Kazakh khan, but Sultan Abilmambet was elected khan, and this seriously offended Abulkhair.
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This started another ght for power and the Kazakh Khanate was split, as a result of which the Little and Middle Zhuzes adopted Russian citizenship. From that time on Kazakhstans history was linked to that of the Russian Empire.

1.3. Kazakhstan in the Russian Empire Kazakhstans accession into the Russian Empire was conducted in several phases, starting in the rst half of the 18th century and lasting until the 1860s. The preconditions for Kazakhstan joining the Russian Empire were the strengthening of the latter after it incorporated the Kazan and Astrakhan Khanates and geopolitical considerations of Kazakh khans. Rapidly developing Russia was also interested in relations with Kazakhstan in order to ensure security on traditional trade routes through the Kazakh Khanate to Central Asia and build a buffer zone on the southern borders of the empire. In the 16th century Russia was already close to Kazakh tribal lands. Russian towns had already emerged in the border areas Tyumen, Tobolsk and Tomsk. Trade was on the rise, and the Russian Empires inuence grew in Kazakh lands. The Little Zhuz joining Russia was a historically forced step because by the middle of the 18th century, after China destroyed Dzungaria, there was the danger of the victors expansion. In 1730 the Little Zhuz khan, Abulkhair, proposed that the Russian government set up a military union. This was turned down and instead it was suggested that his khanate become a Russian protectorate. On 19 February 1731, Empress Anna Ioannovna signed a decree regarding the Little Zhuz voluntarily joining the Russian Empire. On 10 October 1731, Abulkhair and a majority of tribal leaders of the Little Zhuz signed a treaty and took an oath on the inviolability of the treaty. It is worth noting that even though the Middle Zhuz, then ruled by Khan Ablai, was to a lesser extent linked to Russia, while the Great Zhuz was occupied by the Dzungars and the Kokand Khanate, Abulkhairs separate treaty became the beginning of the constantly growing inuence of Russia on the lives of Kazakhs. In 1740 the Middle Zhuz also became a Russian protectorate. In 1741-1742, the Dzungars again raided the lands of the Middle and Little Zhuzes, but the involvement of Russian troops forced them to withdraw. Khan Ablai himself was captured by the Dzungars but
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was released a year later following mediation by Orenburg Governor Ivan Neplyuyev. As a result of the weakening of the Kazakh khans power and the remoteness of new regions of Russia, part of the lands of the Middle Zhuz, which formally became a Russian protectorate, and the lands of the Great Zhuz fell under the Kokand Khanate. In 1787, some Kazakh tribes of the Little Zhuz, which were pressed by the Khiva Khanate, were allowed to cross the Ural River and settle in trans-Volga regions. This decision was ofcially xed by Emperor Paul I in 1801, when 7,500 Kazakh households set up the vassal Bukei (Interior) Horde, headed by Sultan Bukei. This period was also signied by the emergence of the national liberation movement of Kazakhs. The movement, led by Srym Datov, was directly linked to the tsarist governments attempts to regulate the internal lives of dependent Kazakh tribes. After adopting the Russian protectorate the signicance of the khan power declined, and the vertical power pyramid khan-sultans-tribal leaders fell into pieces because each tribal leader tried to independently agree with border and central authorities. As a result, this increased internal confrontation and open disobedience to the Russian administration and increased the number of attacks on border posts, freezing trade with Central Asia in the 1790s. Only by 1797 had Russia managed to pacify the majority of Kazakh tribes and the rebellion subsided. Srym Datov had to move to lands governed by the Khiva Khanate. In 1818, several tribes of the Great Zhuz announced the adoption of Russian protectorate. In the following 30 years (sometimes under pressure, sometimes voluntarily) most tribes of the Great Zhuz became Russian subjects. In 1822, Emperor Alexander II signed a number of additional documents: the Statute on Governing the Zhetysu and Syrdarya Oblasts and the Statute on Governing Turgai, Ural, Akmola and Semipalatinsk Oblasts. Bukei Horde became part of Astrakhan Province. The Semirechiye Cossack Troops were established from Cossacks moved from Siberia in the territory of Zhetysu which was regained from the Kokand Khanate.
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The continued incorporation of Kazakhstan into the Russian Empire was not conducted without conict. In 1836 a rebellion formed in the Bukei Horde and lasted until 1838. The main cause of the rebellion, led by Isatai Taimanov and Makhambet Utemisov, was the impoverishment of the majority of Kazakhs as a result of shortages of pastures. Lands suitable for farming were regularly seized for building Cossack villages, and they were not distributed evenly. This provoked spontaneous revolts, supported by tribal leader Isatai Taimanov and poet Makhambet Utemisov. They urged people to seize lands of the khan and the Urals Cossack Troops, cross the Ural River and seize livestock. Several tribes with their leaders joined the rebellion. Despite many calls by rebellion leaders to solve the problem in a lawful manner, the tsarist government decided to send punitive expeditions of Urals and Astrakhan Cossacks along with regiments loyal to Khan Dzhangir. In November 1837, the rebels were defeated at Tas-Tyube. Dispersed groups of rebels managed to break through to the left bank of the Ural River and regroup. After a respite, Isatai Taimanov and Makhambet Utemisov managed to attract additional forces and regrouped. This was of concern to the tsarist government. As a result, an expedition made up of regular troops, Urals and Orenburg Cossacks were sent to the other side of the Ural River and the rebels were destroyed on 12 July 1838. The longest and largest rebellion in the 19th century was the one led by Khan Kenesary Kasymov between 1837 and 1844 and covered the entire territory of the Middle Zhuz and parts of the Little and Great Zhuzes. It was caused by discontent against the rapid colonisation of lands and the strengthening and expansion of military border lines and the shrinking life expanses of nomads, who lost the last remnants of independence. This discontent helped Khan Kenesary unite a great number of Kazakh tribes. Military actions started in spring 1838 with the siege and burning of the Akmola fort and rebels moved towards the Turgai River. In September 1841, the leaders of the three Kazakh zhuzes elected Kenesary Kasymov khan and declared the revival of the one
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Kazakh Khanate. In August 1841 rebels laid siege Kokand fortresses in Sozak, Zhana-Kurgan, Ak-Mechet and Zhulek. Some victories over the Kokand Khanate helped expand Kenesarys army. The situation in the steppe stabilised in that period. Aiming to improve the khanates economic situation, Kenesary banned obstacles to and raids on trade caravans which paid good taxes. Diplomatic correspondence was established and Russian, Bukhara and Khiva envoys were received. As a result, some Russian ofcials responsible for relations with Asia, Orenburg Governor-General Perovsky in particular, started advocating talks and proposing a semi-autonomous unit similar to the Bukei Horde. Tsar Nicholas Is response to these projects (there will not be two monarchies in one kingdom) was straightforward the conict was solved militarily in 1843. In addition to Cossacks and regular troops, sultans loyal to the tsarist government launched a campaign against Kenesary. Rebels were rst driven to the lands of the Great Zhuz and Siberian Cossack troops forced them over the Ili River, then governed from Kokand. Caught between a rock and a hard place, Kenesary ed to the lands of the Kyrgyz in the foothills of Alatau. Entering into conict with them, Kenesary and the remnants of troops loyal to him were destroyed in a battle on Lake Issyk-Kul. Meanwhile, the administrative management of Kazakh lands by the tsarist government continued, and in 1850 Kazakhstan was divided into four regions with capitals in Uralsk, Turgai, Akmolinsk and Semipalatinsk. It should be noted that the governance of vast territories of Central Asia was complicated because there were shortages of resources for the establishment of administrations and skilled bureaucrats. The regions were divided into districts, volosts and villages. A village had between 50 and 70 houses and ten to 12 villages were grouped into one volost, while ten to 15 volosts formed a district. Senior sultans, whose administrative powers were preserved by the government, were appointed to strengthen the governments positions. Volosts were headed by sultans, who were ranked as Grade 12 ofcials, and villages were headed by village leaders, whose rights
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were similar to village perfects. The bi court system was preserved with slight changes. In the late 19th century, peasants from Russian and Ukrainian provinces were moved to Turkestan. According to the Statute on Governing the Turkestan Territory, only Russian subjects of Christian faith from the rural folk were allowed to settle. Migrant peasants were offered over 3 million sq m of land each. This process was sped up during famines and with the start of the Stolypin reforms. Shortages of farmland in the European part of Russia and the possibility of receiving free land encouraged Russian peasants to move to the Urals region, Siberia and Turkestan. The census conducted in 1897 showed that out of 8 million people living in Turkestan, Russians numbered about 700,000 people. Over a half of them lived in Semirechiye and Syrdarya Oblasts. By 1916 Russians accounted for a quarter and a tenth of the local population respectively. Between 1906 and 1912 over 438,000 households of peasants moved to Akmola, Turgai, Ural and Semipalatinsk Oblasts. More than half of the migrants were involved in agriculture, a quarter in administrative, judicial and military-police structures, and one in ten was involved in industry. Migrant peasants started growing their usual crops: winter wheat, rye, oats, corn, potatoes, clover, ax, cabbages, tomatoes and beetroot, which were very rare in Turkestan. In addition, the local population borrowed elements of animal husbandry such as making hay because nomads grazed their animals in pastures in winter, which was often accompanied by die-offs. There was some distribution of labour: the local population was involved in animal husbandry and grew cotton and watermelons, melons and gourds and crafts, while Russian settlers supplied bread, vegetables and were involved in dairy production. Famines in central regions of Russia prompted new waves of migration. Tens of thousands moved to Turkestan Territory in 19051906, and in December 1910 the tsarist government allowed the migration directorate to seize nomads lands and give them to migrants. Migration bureaucrats used this right to seize not only pastures from
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Kazakhs but also winter grounds with cultivated land. Land conscations heavily damaged the nomadic lifestyle of Kazakhs because under the disguise of excess land the government seized pastures. All this combined with other factors led to the greatest rebellion in Kazakhstans history a national liberation rebellion led by Amangeldy Imanov in 1916. In 1916, the government issued a decree mobilising male populations of Kazakhstan and other Central Asian regions aged between 19 and 43 to work to build fortied facilities and do military service on the frontlines; according to the decree, 250,000 people from Turkestan Territory and 230,000 people from Steppe Territory were called up to the army. Until then the Kazakh population had not been conscripted to serve in the army. Discontent accumulated because of land grabs for building villages for Cossacks and migrants, rapid impoverishment because of horse and livestock sales for the needs of the ghting army combined with catastrophic rates of ination burst the situation. The rebellion, which covered most of Turkestan, including Syrdarya, Akmola, Semipalatinsk, Semirechiye, Turgai and Ural Oblasts with more than 10 million of their multiethnic populations, was caused by the crushing of a rally in Khodzhent on 4 July 1916. It was ofcially reported that about 20 rallies were held in Syrdarya Oblast in July alone. The rebellion was more organised in Turgai Oblast where largescale military actions covered the entire central Kazakhstan. Rebels laid siege to the regional capital Turgai. The tsarist government was forced to send regular troops to rebel areas and the rebellion was crushed by spring 1917. Industrial production in the region started to take roots at the beginning of the 20th century. The mining, gold and coal sectors developed rapidly. At the turn of the centuries, the construction of railways helped develop trade both in Kazakhstan and abroad. The development of capitalist production formed multiethnic working classes, 60% to 70% of which were Kazakhs. Within the empire, Kazakhstan and Russia formed a single administrative and economic entity. Russian settlers and local Kazakhs
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were actively involved in economic and cultural relations that grew into friendship between the peoples. As a result, the fates of the Kazakh and Russian peoples were intertwined. Today it is precisely these two ethnic groups that constitute a reliable foundation for stability in Kazakhstans multiethnic society.

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1.4. Kazakhstan in the USSR The next stage in the development of Kazakh statehood started during 1917, a critical year for the country. By that time Kazakhstan already had its national cultural elite, who put forward ideas for independent development. The Kazakh public, led by Alikhan Bukeikhanov at the beginning of the 20th century, tried to re-establish the Kazakh statehood in 1917 as the Alash autonomy. The evolution of opinions held by Bukeikhanov and his comrades between the beginning of the century and 1917 led to the establishment of the Alash party in July 1917 and the subsequent national liberation struggle. Alash became a national democratic political organisation, mainly made up of representatives of national intelligentsia. Alashs main idea was to achieve Kazakhstans economic and political independence and adopt capitalistic relations in the country. As a result, as early as 1917, the Kazakh cultural elite clearly realised the basic differences between their national interests and the interests and views of the Russian liberals. Alash members fought for Kazakhstans independence using legitimate political methods. The main ideological difference between the Alash party and Bolsheviks concerned issues surrounding the class repressive nature of the state. Alash members had consistent views on issues of democratising the government system. In their platform they advocated the presidential form of government that was the most advanced at the time and a democratic nature of elections to ensure the participation of all people, regardless of their origin, in the election processes and spoke in favour of personal immunity, freedom of speech, freedom of the press and freedom of assembly. After the Soviet government established itself throughout Kazakhstan, the leaders of the Alash party had to recognise it as the central government of all ethnic minorities of Russia. Nevertheless, despite this, they set a number of demands for the central Soviet government to ensure the independence of the Alash autonomy to a certain extent. Their chief demand was to unite all lands of the Kazakh people within
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the Alash (Kazakh) autonomy, or restore the territorial integrity that was destroyed during colonisation. A signicant role in the consolidation of Kazakh lands (governed by the Kazakh Revolutionary Committee (Kazrevcom) and other administrative-territorial units) and the future uniting of the Kazakh republic, was played at an expanded meeting of Kazrevcom on 27 October 1919. This meeting discussed the issue of convening an All-Kazakh Congress of Soviets to solve the problem of uniting the Kazakh people into one Soviet autonomous state that had great political signicance. In his speech, Akhmet Baitursynov made a number of proposals: 1) the Soviet government should give the Kazakh people the right to self-government; 2) the residents of some regions which earlier opposed the Soviet government should be pardoned. The expanded Kazrevcom meeting decided to convene an AllKazakh Conference of Soviets to discuss the problem of uniting the Kazakh people. This conference was held in Aktobe on 3-11 January 1920 and gathered 250 delegates from Turgai, Ural, Akmola, Syrdarya, Semirechiye, Fergana and Trans-Caspian Oblasts and Alash party members. The conferences resolution On the Union of Kazakh Oblasts stressed the need to unite all Kazakh oblasts into the Kazakh Autonomous Soviet Socialist Republic (ASSR), which would join the Union of Soviet Socialist Republics. Based on this draft, the chairman of the Soviet of Peoples Commissars (SPC) of the Russian Soviet Federative Socialist Republic (RSFSR), Vladimir Lenin, and the chairman of the All-Russian Central Executive Committee of Soviets (ACEC), Mikhail Kalinin, signed a decree On the Establishment of the Kyrgyz (Kazakh) Autonomous Soviet Socialist Republic. In accordance with the decree, the following oblasts and districts became part of the Kyrgyz (Kazakh) Autonomous Soviet Socialist Republic: - Semipalatinsk Oblast with Pavlodar, Semipalatinsk, Ust-Kamenogorsk, Zaisan and Karakaraly Districts;
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- Akmola Oblast with Atbasar, Akmola, Kokshetau and Petropavlovsk Districts and parts of Omsk District; - Turgai Oblast with Kostanai, Aktobe, Yrgyz and Turgai Districts; - Ural Oblast with Ural, Ilbish, Temir and Guryev (presently Atyrau) Districts; - Mangistau District of Trans-Caspian Oblast and Fourth and Fifth Volosts of Krasnovodsk District of Trans-Caspian Oblast, inhabited by members of the Adai tribe; - the Bukei Horde, which was part of Astrakhan Province, and Sinomor Volost and areas of First and Second Coastal Districts of Astrakhan Province, inhabited by Kazakhs. According to ofcial statistics from 1920, the Kazakh ASSR covered an area of 1,871,239 sq km and its population was 5,046,000 people. Ethnic Kazakhs accounted for over 46% of the total population. The declaration of the Kazakh ASSR became a major event in ensuring the territorial integrity of Kazakh Soviet statehood. At the same time, southern regions, populated by Kazakhs, were still part of the Turkestan ASSR. Moreover, signicant numbers of Kazakhs were dispersed in the territories of the Khorezm and Bukhara Peoples Republics: Kazakhs accounted for 19.3% of the Turkestan ASSR, 1.5% of the Bukhara Peoples Republic and 3.5% of the Khorezm Peoples Republic. The national-state demarcation of multiethnic Central Asia was conducted in 1924 and it focused on the Turkestan ASSR, the Khorezm and Bukhara Peoples Republics. It resulted in the establishment of the Uzbek SSR and Turkmen SSR; the Tajik ASSR as part of the Uzbek SSR; the Kyrgyz ASSR as part of the RSFSR, while the Kazakh districts of former Semirechiye and Syrdarya Oblasts that were part of the Turkestan ASSR were transferred to the Kazakh ASSR. The territory of the Kazakh ASSR increased by 700,000 sq km, and its population by 1,468,000 people. The reform of the republics administrative division had been completed by the beginning of 1925; after the capital city of the
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Kazakh ASSR was moved from Orenburg to Ak-Mechet (presentday Kyzylorda), and Orenburg and the districts around it had been transferred to the RSFSR. Thus, by 1925 almost all Kazakh lands had been united into one republic and the task of ensuring its territorial integrity had been completed. In 1936, the Kazakh ASSR was transformed into a Soviet republic and this was enshrined in the Soviet Constitution of 1936. Based on and in line with the Soviet Constitution, a new constitution was drafted for the Kazakh SSR. The tenth extraordinary All-Kazakh Congress of Soviets, held in late March 1937, adopted the Constitution of the Kazakh SSR, which consisted of 11 chapters. In accordance with this constitution, the Kazakh SSR was declared a socialist state of workers and peasants. It also declared that the entire power belonged to workers represented by the Soviets of Workers Deputies. The economic basis of the Kazakh SSR was the socialist economic system and the socialist form of ownership of production tools and means. Socialist property had two forms state and collective-cooperative. The small private holdings of peasants and craftsmen were allowed if they were based on personal labour and excluded the exploitation of someone elses labour. It was stated that the economic life of the Kazakh SSR was dened and directed by a state economic plan. The 1936 constitution also declared that the Kazakh SSR voluntarily united with other Soviet republics into the USSR a union state and had the right to freely leave the USSR. The constitution also dened the republics administrative-territorial organisation and specied that the territory of the Kazakh SSR could not be changed without its consent. It also recognised single Soviet citizenship and citizenship of the Kazakh SSR. The spheres of powers of the Kazakh SSR and its supreme bodies of government system were clearly dened. The supreme body of government of the Kazakh SSR was the Supreme Soviet which was recognised as the only legislative body. Deputies of the Supreme Soviet were elected by popular vote for four years. The Supreme Soviet elected the presidium of the Supreme Soviet consisting of a chairman, two deputy chairmen, secretary and 15
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members. The Presidium of the Supreme Soviet was given the right to issue legislative decrees and was delegated other powers. Deputies of the Supreme Soviet enjoyed parliamentary immunity. The constitution also dened the structure of the central bodies of government. The supreme executive body of government of the Kazakh SSR was the Soviet of Peoples Commissars which was responsible for and accountable to the Supreme Soviet and its presidium. The Soviet of Peoples Commissars set up peoples commissariats: union-republican and republican. The local bodies of government were the Soviets of Workers Deputies which were elected by popular vote for two years. Soviets elected executive committees which were executive bodies. The forms of the work of the Soviets, the frequency of their convocation, the structure of executive committees and spheres of their activities were also dened. The structure of local executive bodies was always changing, which entailed constitutional amendments. At the end of 1936, the Kazakh SSR was divided into eight oblasts, and then later in January 1938, a further three oblasts Kyzylorda, Pavlodar and Guryev (Atyrau) were created; 18 months later, in October 1939, another three oblasts Semipalatinsk, Zhambyl and Akmola were formed. In March 1944, Kokshetau Oblast was separated from North Kazakhstan Oblast and Taldykorgan Oblast was separated from Almaty Oblast. As a result, by 1945 there were 16 regions in the Kazakh SSR. Taldykorgan Oblast and Akmola Oblast were abolished (in 1959 and 1960 respectively), and then in 1962 three territories were created within the Kazakh SSR West Kazakhstan Territory (which included Aktobe, Ural (present-day West Kazakhstan Oblast) and Guryev (Atyrau) Oblasts) with its administrative centre in Aktobe; South Kazakhstan Territory (which included Kyzylorda, Shymkent (present-day South Kazakhstan Oblast) and Zhambyl Oblasts) with the capital in Shymkent; and Tselinny Territory (which included Kostanai, North Kazakhstan, Kokshetau (whose territory was divided between the North Kazakhstan and Akmola Oblasts in 1999), Pavlodar and Tselinograd (which was restored in 1961, present-day Akmola Oblast) Oblasts) with its centre in Tselinograd (present-day Astana).
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West Kazakhstan Oblast was then renamed Ural Oblast, and South Kazakhstan Oblast was renamed Shymkent Oblast. This was done to prevent confusion between these regions with the freshly established territories. On 20 April 1978 the Supreme Soviet of the Kazakh SSR adopted a new constitution. Its preamble stated that a society of genuinely free people of labour in which the prosperity and culture of people had been steadily improving had been created. It was claimed that the Kazakh SSR was an equal republic of the USSR, which united all peoples and ethnic groups. These provisions of the constitution did not reect the real state of Kazakh society in which discontent was brewing over the worsening living conditions, the Communist Partys diktat and the absence of any hope for the republics sovereignty. This discontent was openly manifested in Almaty in December 1986. The constitution of the Kazakh SSR had 10 chapters and was modelled on the Soviet constitution of 1977. One of its chapters discussed the national-state and administrative-territorial system of the Kazakh SSR. In contrast to the constitution of 1937, the new constitution had a chapter which extended the sovereign rights of the republic to an extent. For example, one of its articles said that the Kazakh SSR was involved in solving issues that fell into the jurisdiction of the USSR in the Supreme Soviet of the USSR, the Presidium of the Supreme Soviet of the USSR, the Soviet government and other bodies of the USSR. The Kazakh SSR had the right to establish relations with foreign countries, conclude treaties with them and exchange diplomatic and consular representatives with them and take part in the activities of international organisations. It is worth noting that the Kazakh SSR could exercise these legal provisions only under monitoring by central bodies. The republics government system was described in the constitutions fth chapter which contained provisions about the Supreme Soviet, its structure, lawmaking activities, the Presidium of the Supreme Soviet and their powers. It was stated that the Supreme Soviet of the Kazakh SSR had powers to solve all issues that the Soviet constitution delegated to a union republic. This meant that in this
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constitution, like in previous constitutions, the principle of division of powers between branches of power was not enshrined. Legally the Supreme Soviet was able to solve all issues which fell under the jurisdiction of the Kazakh SSR. However, this was just a formal provision because all those issues were preliminarily solved by the Central Committee of the Communist Party of the Soviet Union (CC CPSU) and only after that were they legally adopted. The constitution meticulously regulated the status of the Council of Ministers the government as the supreme executive body of government. The Council of Ministers united and directed the work of union republican and republican ministries and state committees. In 1986 there was an event that was a harbinger of Kazakhstans independence. On 16 December 1986, the Central Committee of the Communist Party of Kazakhstan held its fth plenum and discussed the sole organisational issue the replacement of the political gure who had governed the republic for no less than a quarter of a century: First Secretary of the Central Committee of the Communist Party of Kazakhstan, Dinmukhamed Kunayev. Gennady Kolbin, who had previously been rst secretary of the Ulyanovsk Oblast Committee of the Communist Party and had won Mikhail Gorbachevs approval for actively pursuing an anti-alcohol campaign in Russias Ulyanovsk Oblast, became the new head of Kazakhstan. No adviser of Gorbachev in the Kremlin, neither he himself, had analysed the situation at the time and could not predict peoples reaction to an unknown gaining power. Kremlin functionaries continued to regard Kazakhstan as their patrimony. Even the Central Committee of the Communist Party of Kazakhstan was not informed about the new appointment. On 16 December rst a small group of working and student youth staged a protest action in Almaty against the Communist Partys decision. The rally was peaceful and was of a political nature, but it did not call for the overthrow of the constitutional system nor attack any other ethnic group. On the second day when the number of protesters reached several thousand, mainly students, Moscow ordered the Blizzard-86 operation, aimed at dispersing protesters using army units, special-task troops, police and the KGB.
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The December 1986 events, which shocked the entire world, proved that a new generation whose national consciousness was above all dened by the honour of its people had emerged in the Kazakh lands. It was the rst time in 70 years the younger generation had delivered a worthy rebuff to all the hardships experienced by Kazakhstan because of the administrative-command and often simply violent policy of the central government in Moscow. This was the beginning of the movement towards democracy as part of perestroika across the entire Soviet Union. Perestroika gave rise to some democratisation of society. For example, the election legislation was amended in 1989. With the aim of ensuring the representation of public organisations it was decided to allow them to elect a quarter of all members of the Supreme Soviet. Public organisations elected members of the Supreme Soviet at their congresses and republican conferences. Another novelty was that members of the Supreme Soviet were relieved of their jobs for the duration of their parliamentary mandate. This was the rst, small step towards parliamentarianism. From 1987, production fell in the USSR, and, as a consequence, in Kazakhstan too. At the same time, the party-government system became increasingly paralysed. In 1989 the 15th congress of the Communist Party of Kazakhstan relieved Gennady Kolbin of his post of rst secretary of the Central Committee of the Communist Party of Kazakhstan and replaced him with Nursultan Nazarbayev. Nursultan Nazarbayev began to implement his own programme. The priority objectives for the new head of Kazakhstan were: rstly, strengthening social stability, civil and interethnic accord; secondly, drafting and conducting a programme of economic reforms; thirdly, carefully dening and dividing powers between republican and central government bodies. In accordance with the Kazakh SSR Law On the Adoption of the Post of the President of the Kazakh SSR and Making Amendments and Addenda to the Constitution of the Kazakh SSR of 24 April 1990, the 1978 constitution acquired a new chapter President of the Kazakh SSR which stipulated provisions on the status and powers of president. That same day Nursultan Nazarbayev was elected the
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republics rst president by a decision by the Supreme Soviet of Kazakhstan. After the break-up of the Soviet Union and the emergence of an independent, sovereign state, the Constitution of the Kazakh SSR stopped corresponding to new political, economic, social and ideological realities. In October 1990 the Declaration of State Sovereignty of the Kazakh SSR was adopted. The Constitutional Law On State Independence of the Republic of Kazakhstan, adopted on 16 December 1991, blocked the effect of the Constitution of the Kazakh SSR of 1978 without abolishing it legally, because the basic provisions for the new independent state and the corresponding new conceptual ideas and principles required the adoption of a new constitution.

1.5. Declaration of State Sovereignty of the Kazakh SSR and the Constitutional Law On State Independence of the Republic of Kazakhstan Against the background of a general political decline in June 1989, a plenum of the Central Committee of the Communist Party of Kazakhstan nominated Nursultan Nazarbayev for the post of the head of the Communist Party of Kazakhstan. After that by the Supreme Soviets decision he was elected rst president of the Kazakh SSR. Later, at the end of 1991, the popular election of the rst president was held for the rst time in Kazakhstans history. Nursultan Nazarbayev became president with the majority of the vote. In the early 1990s, prior to the adoption of the countrys new constitution, the Constitution of the Kazakh SSR, adopted in 1978, was still formally in effect. It is fair to note that this constitution had many provisions that were democratic in nature, even though it was adopted in Soviet times. It clearly reected the unity of power and the fact that it belonged to the people. However, this constitution, which was adopted in politically stagnant times, was adapted to the then situation: the extremely high levels of concentration of government functions in the hands of the Communist Party. From 1990 onwards a number of fundamental amendments were made to the constitution, taking into account the situation that emerged. The rst legislative act of this sort was the Declaration Of State Sovereignty of the Kazakh SSR adopted on 25 October 1990. Thus, in keeping with existing political realities, Kazakhstan adopted the declaration of state sovereignty in October 1990, which was later enshrined in the Constitutional Law On State Independence of the Republic of Kazakhstan in 1991. These legislative acts dened the realisation of Kazakhstans place and role as an independent democratic and lawful state, as an equal and fully-edged member of the international community. The Declaration of State Sovereignty of the Kazakh SSR started the real, practical fullment of the countrys state sovereignty. The Kazakhs, rst as part of the RSFSR and then of the USSR, had prac57

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tically no state sovereignty and, as a result, were not able to act as a real entity of international law. The historical signicance of the declaration is, above all, that it has given real meaning to the countrys state sovereignty and reminded Kazakhstan of its own statehood with its centuries-old history, culture and established state and legal traditions, stressing the principle of the territorial integrity of Kazakhstan and declaring the system of division of power as the most important principle of the countrys functioning as a democratic and lawful state. The declaration xed the inviolability and integrity of Kazakhstans territory and dened the country as an entity of the international law. This historical document declared three fundamental norms that have considerably expanded Kazakhstans sovereign rights. First is the principle of the supremacy of the countrys constitution and laws on Kazakhstans territory and the countrys right to suspend on its territory the effect of acts violating the countrys sovereign rights and constitution. Second is the principle of Kazakhstans exclusive ownership of national wealth in its territory. In addition, it proclaimed the countrys right to its share in the common union property, including in the diamond, foreign exchange and gold reserves of the USSR. Third is Kazakhstans right to act as an independent entity in international relations and dene its foreign policy to pursue its own interests. In essence, the declaration became the rst fundamental legislative act of the young country that began a preparatory stage of the further development of the countrys state and legal system in order to shape full state independence. The second legislative act of this scale was the Constitutional Law On State Independence of the Republic of Kazakhstan, adopted on 16 December 1991, which recognised the legal status of the country as a sovereign state. This day is now marked as national holiday the Independence Day of the Republic of Kazakhstan every year. On this day the Supreme Soviet, expressing the peoples will, solemnly declared the countrys state independence and stated that
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it exercised full power in its territory, independently dening and pursuing its domestic and foreign policy. The constitutional law declared Kazakhstan as an independent, democratic and lawful state, exercising full power on its territory. The signicance of these provisions is proven by the fact that they have since been xed and further developed in the provisions of the current Constitution of the Republic of Kazakhstan. Having developed the key ideas of the declaration of state sovereignty, the constitutional law univocally set that the Republic of Kazakhstan would build its relations with all countries on the principles of international law as required from an independent state. Moreover, the constitutional law clearly dened the future aspects of the countrys economic, legal, socio-cultural and political development. The constitutional law also established the states policy for the creation of an independent economic system with its own nancial and credit, tax and customs policy based on a plurality of form of ownership. The economic system, specied in the constitutional law, has strengthened through the creation of nancial and credit, tax and customs institutions and the adoption of the countrys national currency, the tenge, in 1993. Based on the provisions of the constitutional law, Kazakhstan very quickly created all the necessary attributes of statehood. It also endorsed symbols of the state the national ag, the national emblem, the national anthem and state decorations. Single citizenship of Kazakhstan was adopted for the rst time. Taking into account this institution, literally days after the declaration of independence on 20 December 1991, the country adopted the Law On Citizenship of the Republic of Kazakhstan. In order to protect the countrys independence and territorial integrity the constitutional law envisaged creating Kazakhstans own power-wielding structures the armed forces, the Republican Guard, internal and border troops. In addition, the constitutional law, conrming the Kazakh nations right to self-determination, recognised the united people of Kazakhstan as the only source of government in the country. The united people are made up by the Kazakh nation along with citizens of the
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country of all ethnic groups, united with the Kazakh nation by commonness of historical fate, common hopes and concerns. In essence, this law had become Kazakhstans temporary constitution when its independence was being established. In terms of legal force it even exceeded the then Basic Law of the Kazakh SSR and legislative acts of the Soviet Union, whose provisions were recognised in the countrys territory only if they did not contradict the Constitutional Law On State Independence of the Republic of Kazakhstan [3]. Following the adoption of this constitutional law Kazakhstan was recognised by many countries as a fully-edged member of the international community and all necessary international legal mechanisms were created for cooperation, and the country acquired the voting right to take part in solving regional and global issues. On 2 March 1992 Kazakhstan became a fully-edged member of the United Nations. The main result of the adoption of the Constitutional Law On State Independence of the Republic of Kazakhstan was the international recognition of Kazakhstan, the strengthening of its reputation on a regional and global scale and an increase in the countrys status. As an independent state Kazakhstan is a full member of many international and regional institutions and organisations. The countrys constitution, which dened the strategic aspects of the development of society and the state, was drafted and endorsed by the people and a new legal system was created on the basis of the constitutional law. The fundamental human rights and liberties and mechanisms of protecting human rights and freedoms were enshrined in legislation. Thus, the Declaration of State Sovereignty of the Kazakh SSR and the Constitutional Law On State Independence of the Republic of Kazakhstan have laid the constitutional and legal foundation of the independent state.

1.6. The Election of the First President of the Republic of Kazakhstan (December 1991) In September 1989, amendments were made to the 1978 constitution to adopt the institution of the highest executive post the chairman of the Supreme Soviet of the Kazakh SSR and later in April 1990 the institution of the president of the Kazakh SSR. The president, as the highest government ofcial, was entrusted with functions directly linked to both legislative and highest executive activities. As the Soviet governments inuence was being eroded, the president of the Kazakh SSR was given great powers: he acted as the guarantor of observation of human rights and liberties in the country, observation of the constitution and laws; took measures to protect sovereignty, security and territorial integrity of the country; and represented Kazakhstan in the international arena. The adoption of these provisions bore uncompromising nature between the continuing diktat of the Soviet central bodies and the countrys desire to expand its sovereignty. The adoption of the institution of presidency in Kazakhstan made it possible to ll the vacuum of power which was created as the Communist Party lost its governing functions. The events that followed have shown that in the situation of the rapid disintegration of one union state, the adoption of the post of president was a timely step taken by the countrys leaders that helped establish real independence, protect sovereignty and bring the state out of the political and economic crisis. The break-up of the Soviet Union made former members of it sovereign. The phase of active dismantling of the totalitarian socialist system and freeing society from the communist ideology and switching to a market economy started. All this demanded historical decisions that dened the future of Kazakhstan. The popular election of the rst president in Kazakhstans history was held on 1 December 1991. As a result of the election, Nursultan Nazarbayev was elected the countrys president with 98.7% of the votes.
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1.7. The First Constitution of the Republic of Kazakhstan of 1993 After the declaration of sovereignty Kazakhstan faced a number of complex tasks: strengthening independence, ensuring political stability and national security, and nally, identifying the nature of the new statehood, which mean that all the elements of the state system had to be transposed to the features of an independent, democratic state. Kazakhstan was forced to resolve these issues under very complicated conditions. The country was encountering a deep socioeconomic crisis, the consequences of which were: the collapse of industry, hyperination and a slump in living standards. In this situation the focus had to be rst of all placed on the stabilisation and development of the countrys economy. There had not even been any signs of basics of a market economy one of the main economic preconditions for the establishments of democracy. In reality, no-one has disproved the theory that the economic base denes the ideological superstructure, even if they longed to do so. As a result of the break-up of the USSR, interethnic problems worsened in almost all post-Soviet countries, and this was bound to inuence the situation in multiethnic Kazakhstan. There are plenty of examples, and the emergence of many new hotbeds of interethnic tension in the Commonwealth of Independent States (CIS) became practically an inevitable attribute of the commonwealths post-Soviet development. Moreover, the country lacked its own, historically developed democratic traditions and experience of functioning democratic institutions. And in the rst years of independence the 70-year-long experience of the Soviet past considerably hindered the acceleration of new democratic values in the mass consciousness of the countrys population. This means that the key aspect of the states domestic policy at that stage was the drafting and public discussion of the rst Constitution of the Republic of Kazakhstan. It was high time the countrys
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Basic Law was brought in line with the new political and economic realities in the country. The Supreme Soviet of the 12th convocation voting to dissolve itself in December 1993 and the Constitutional Court of the Republic of Kazakhstans declaration of the Supreme Soviet of the Republic of Kazakhstan, elected on 7 March 1994, as illegitimate (following a civil lawsuit) led to a constitutional crisis and the need to draft a new constitution. The countrys Supreme Soviet, which drafted the constitution, laid the foundation for Kazakh statehood. It is worth noting that that work on drafting the constitution was conducted in the situation of political discords that existed in society. The situation was complicated by economic disintegration in the former Soviet Union, the problem of settling payments, high ination, a slump in production, a growth in unemployment and falling living standards. All this was reected during the public discussion of the wording if the rst constitution. Its provisions related to the status of the Russian language, citizenship and the form of Kazakh statehood prompted heat debates. The rs constitution of sovereign Kazakhstan was adopted on 28 January 1993 at the ninth session of the Supreme Council of the Republic of Kazakhstan of the 12th convocation. As the act of supreme legal power it created the foundation for building national state independence. However, as the act of supreme legal power Kazakhstans rst constitution was ambiguous. On the one hand, the constitution helped to conduct market and democratic reforms, and, on the other, caused debates and instability in power, in its legislative branch because of a failure to solve the issue of the division of powers between the legislative and executive branches. Some fundamental formulations in the constitution that related to the nature of statehood, language problems, private ownership of land and citizenship issue became the subject of increasing attention and factors of social tension.

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1.8. The Constitution of the Republic of Kazakhstan of 30 August 1995 The recognition of the Supreme Soviet in March 1994 as illegitimate prompted the need to adopt a new constitution for the country. The text of the new Constitution of the Republic of Kazakhstan was endorsed in a national referendum on 30 August 1995, which was preceded by wide discussions over the new provisions of the constitution among the Kazakh public and foreign experts. In total, there were about 33,000 public discussions of the draft constitution in Kazakhstan and they involved over 3 million citizens. As part of this campaign almost 30,000 proposals and remarks had been made on it. As a result, over 1,100 amendments and addenda were made to 55 articles. Item 1 of Article 1 of the new constitution states that the Republic of Kazakhstan proclaims itself a democratic, secular, legal and social state whose highest values are an individual, his life, rights and freedoms. In this way Kazakhstan chose a democratic model for state development, the legal provisions of which met the needs of the state construction in the country. We, the people of Kazakhstan, united by a common historic fate, creating a state on the indigenous Kazakh land, considering ourselves a peace-loving and civil society, dedicated to the ideals of freedom, equality and concord, wishing to take a worthy place in the international community, realising our high levels of responsibility before the present and future generations, proceeding from our sovereign right, adopt this constitution. These are the exact words the Basic Law of the Republic of Kazakhstan begins with. Kazakhstans constitution not declaratively, but with its entire structure and technical-legal basis and a system of clear-cut state, political and legal categories creates rm preconditions for building and developing a modern state and a social market economy. The general outline of Kazakhstans statehood is clearly dened in Article 1 of the Basic Law, which says that the Republic of Kazakhstan proclaims itself a democratic, secular, legal and social
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state whose highest values are an individual, his life, rights and freedoms. The constitution denes Kazakhstan as a unitary and indivisible state. The chief characteristic of a unitary state is that it does not have any national-state or autonomous entities. Being unitary means single citizenship, legislation and a system of government. According to the constitution, Kazakhstan is a republic with the presidential form of government, where the president is the head of state, the highest government ofcial, who denes the key aspects of the countrys domestic and foreign policy. The Kazakh constitution legally supports a strong presidential form of government, and, as a result, a sustainable and consistent institution of strong state power has been created in the country. At the same time, one of the fundamental principles of the Constitution of the Republic of Kazakhstan is the principle of peoples sovereignty, which means that the only source of government in Kazakhstan is its people. From this constitutional provision it derives that state power in the country comes from the people and it belongs to them and may be exercised by them directly, i.e. through national referendums and free elections or may be delegated by the people to government bodies. The principle of the peoples full power, enshrined in the Constitution of the Republic of Kazakhstan, is a universal principle which has a value that is common to all humankind and inherent to the majority of modern democratic constitutions. The supreme direct expression of the peoples power, according to the constitution, is national referendums and free elections (Item 2 of Article 3 of the constitution). This means: Kazakh citizens have the right to take part in governing the state directly and through their representatives, elect and be elected to government and local government bodies; take part in national referendums; the adoption of democratic rules for forming representative bodies and democratic procedures for their activities; the combination of representational and direct democracy; increasing the role of political parties and public associations in the political system of society.
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1.9. The National Referendum on Extending the Term of the President of the Republic of Kazakhstan The 1993 constitution did not envisage a procedure for resolving critical situations between the branches of power. This preconditioned a crisis of the representative branch of power in 1993-1994, which was followed by the delegation of legislative functions to the countrys president and the constitutional crisis in March 1995. In the situation of the absence of a legislative branch, a referendum became the most rational solution to the constitutional crisis and an instrument in reforming the Kazakh political system. On 25 March 1995, with the aim of preserving unity in society and preventing the polarisation of the political and social situation in the country, the Assembly of Kazakhstans People adopted a resolution on the need to hold a national referendum on extending the term of the Kazakh president until 1 December 2000. Proceeding from the situation that had emerged and taking into account the views of all social strata of the countrys population (which demanded that the president take measures to avoid a split in society), Nursultan Nazarbayev agreed to hold the referendum. The referendum held on 29 April 1995, which, according to ofcial information, had a turnout of 91.3%, resulted in 95.4% of voters favouring the extension of the presidents term. The referendum results enabled President Nazarbayev to continue radical reforms, and the president announced that developing democracy was the main objective. Constitutional reforms, unresolved problems related to private property, education and reforms in the agricultural and legislation spheres had to nd their solutions in the new constitution.

1.10. The State Symbols of the Republic of Kazakhstan The ofcial distinctive symbols of Kazakhstan and symbols of its sovereignty are the national ag, the national emblem and the national anthem. The design of the national ag of the Republic of Kazakhstan was proposed by artist Shaken Niyazbekov. The national ag is a piece of rectangular cloth of sky-blue colour with a picture of a golden sun with a soaring golden eagle in the centre and a vertical strip with a national ornament. The sky-blue colour of the ag symbolises sky. In heraldry blue and its shades correspond to human traits such as honesty, loyalty and hope. The sky-blue background of the national ag aims to stress the purity and goodness of intentions of the people of Kazakhstan in their aspirations to a new statehood and the adherence of the people of Kazakhstan to the good and noble idea of unity. The golden sun, surrounded in sunrays, embodies peace and wealth. The eagle embodies generosity and vision, the height of the intentions of the people of Kazakhstan, and symbolises the breadth of the soul of the steppe people, open to all peoples and nations who respect the proud, free-willed and independent spirit of multiethnic sovereign Kazakhstan. The national emblem was designed by Zhandarbek Malibekov and Shot-Aman Ualikhanov. The main element of the national emblem is the shanyrak the chief element of the yurt which is the basis of its dome. For Kazakhs the shanyrak is a symbol of the tribal nest, native home. This means that the shanyrak on the national emblem symbolises Kazakhstan as a common home for all ethnic groups who reside there. On the edges of the emblem are the heads of winged horses-unicorns. The horned horse in many cultures is regarded as a holy animal. It came from ancient times and today, embellishing the countrys emblem, it symbolises hidden talents and creative power of the young state. Winged horses, embracing the shanyrak on the emblem, are
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elevating it to the sky, thus showing the condence of the people of Kazakhstan in a bright future. The national anthem of Kazakhstan has a compelling history. Until 2006, it used the tune of the anthem of the Kazakh SSR and lyrics, written by a group of Kazakh poets about Kazakhstan obtaining its independence. A competition for the tune and lyrics of a new national anthem of Kazakhstan was announced in early 1992, and about 750 applications were received. During discussions the public favoured preserving the tune of the previous anthem, which was held dear and close to the heart of every citizen of Kazakhstan (it was composed by composers Mukan Tulebayev, Yevgeny Brusilovsky and Latif Khamidi in 1944). The winners of the competition were four authors who worked together. Three of them Muzafar Alimbayev, Kadyr Myrzaliyev and Tumanbai Moldagaliyev are well-known young-generation poets who were joined by the young talented poetess Zhadyra Daribayeva. The national anthem was translated from Kazakh into Russian by Bakhyt Kairbekov. On 7 January 2006, the popular song Menin Kazakstanym (My Kazakhstan) was made Kazakhstans national anthem. It was written in 1956, and its lyrics were amended by President Nursultan Nazarbayev. The rules for playing the national anthem were also adopted. Now, at ofcial events people have to stand up and put their right hand on the left side of their chests when the national anthem is played. The national anthem is another state symbol in which the tune and lyrics express the same sense as the national ag and the national emblem. The lyrics of the national anthem In the sky is a golden sun, On the steppe is a golden grain. The epic of courage, Is my country! Since ancient times,
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Our glory has been known. Guarding their honour, Strong are my Kazakh people! Refrain: My country, my people, I am your ower, nurtured by you, I am your song, lling you, You are my country, my Kazakhstan! A path has been opened for new generations By my vast country. Unity suits My independent country. Meeting the new era As an old friend Our country is happy This is my country! Refrain: My country, my people, I am your ower, nurtured by you, I am your song, lling you, You are my country, my Kazakhstan!

References 1. . . : i, 2007. . 55. 2. . : . : . . , 2001. . 6. 3. . // . 14 2002.

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4. . XIX XX // . 1997. 11. 5. .., .., .. . , 1996. 6. .., .., .. (1985-2006 .). : . . , 2007. 7. . . -: , 1985. 8. .. . , 2007. 9. .., .. . . -: , 1992. 10. .. . : , 2005. 11. : . , 1993. 12. http ://zhistory.ru 13. http://www.tarsu.kz 14. http://www.ukg.kz

Chapter 2. DOMESTIC POLICY 2.1. Kazakh President Nursultan Nazarbayev In keeping with the current Constitution of the Republic of Kazakhstan, the president is a symbol and guarantor of the unity of the people and government, the inviolability of the constitution and human rights and liberties of the citizens (Article 40). The efciency of the presidential form of government in Kazakhstan is that the Kazakh president, within the political and constitutional eld, is not a passive observer. Constitutional provisions regarding the president of Kazakhstan show that he is an active and authoritative participant of state and political processes [1]. The rst president of Kazakhstan, Nursultan Nazarbayev, was born in the village of Shamalgan in Almaty Oblasts Kaskelen District on 6 July 1940.
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He is a doctor of economics and a full member of the National Academy of Sciences of Kazakhstan, the International Engineering Academy, the Academy of Social Sciences of Russia and an honorary member of the Belarusian Academy of Science. Mr Nazarbayev is an honorary professor of the al-Farabi Kazakh National University and an honorary professor of the Lomonosov Moscow State University. President Nazarbayev is the author of more than ten books, such as The Steel Prole of Kazakhstan, Without the Right and the Left, The Strategy of Resources-Saving and a Switch to Market, The Strategy of Establishment and Development of Kazakhstan as Sovereign State, and Market and Socioeconomic Development. Some of his books, for example On the Threshold of the 21 Century, The Eurasian Union: Ideas, Practice and Prospects. 1994-1997, In the Flow of History, The Epicentre of Peace, and The Critical Decade have become bestsellers which have been widely translated abroad. 1960 the president begins his professional career at the Karaganda Metal Combine, where during the rst decade of his work he had claimed acknowledgement and respect of his colleagues as a responsible worker, good organiser and talented orator; 1967 graduates from the Higher Technical Educational Establishment under the Karaganda Metal Combine; 1969 1973 performs functions at the Communist Party and the All-Union Young Leninist Communist League (VLKSM) in Temirtau in Karaganda Oblast; 1973 1977 secretary of the Party Committee of the Karaganda Metal Combine; 1977 1979 secretary, second secretary of the Karaganda Oblast Party Committee; 1979 1984 secretary of the Central Committee of the Communist Party of Kazakhstan; 1984 1989 chairman of the Council of Ministers of the Kazakh SSR; 1989 1991 rst secretary of the Central Committee of the Communist Party of Kazakhstan; February April 1990 chairman of the Supreme Soviet of the Kazakh SSR [2];
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April 1990 December 1991 experts regard this as the period of institutionalising the presidential form of government in Kazakhstan [1]; 24 April 1990 the Supreme Soviet of the Republic of Kazakhstan creates the post of president of the Republic (after the creation of the post of president of the USSR on 14 March 1990) and Nursultan Nazarbayev is elected the rst president in Kazakhstans history. From this moment his personal history is inviolably linked to the history of the whole nation. It is worth noting that at the initial stage the presidential power was limited: the president was a gurehead without real power. Nevertheless, the creation of the post of president played a particular role in the subsequent transformation of the entire political system of Kazakhstan. The further development of the institution of the presidential power in Kazakhstan was linked to the adoption of the Kazakh SSR Law On Improving the Structure of Government in the Kazakh SSR and Adopting Amendments and Addenda to the Constitution (Basic Law) of the Kazakh SSR on 20 November 1990 and amendments and addenda to it on 25 June 1991. In accordance with this document, the president was declared the head of state with the highest executive powers. With the adoption of this law the government system of Kazakhstan, formally remaining parliamentary, in essence, switched to the semi-presidential model. The nal legitimisation of the institution of presidency took place after the rst presidential election on 1 December 1991, in which Nursultan Nazarbayev received 98.7% of the vote. After the voluntary dissolution of the Supreme Council at the end of 1993 and delegation of legislative rights to the president before it, the presidential form of government became a political reality which was legally formulated in the 1995 constitution*. The basic model of the presidential power that was set up then is still in force. It should be noted that it has demonstrated a fairly high level of efciency and largely helped the country to overcome
* The clearness of the choice in favour of the strong presidential power and its correspondence to the peoples expectations were conrmed by a referendum on 30 August 1995 (89% of yes votes), which meant the adoption of the new constitution.

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the serious crisis of the 1990s [3, pp 45-50]. Nursultan Nazarbayev once said that having chosen the model of a presidential republic, we have brought the country out of the post-Soviet economic and political chaos [4, p 8]. However, objective needs for further development demanded the countrys government actively search for an efcient model for the state and political system, including the nal choice of a presidential or parliamentary form of government, a solution to the problem of the division of branches of power and the decentralisation of power. On 16 May 2007, speaking at a joint session of parliaments chambers, the president proposed his own vision of this model: The need to build Kazakh statehood and a market economy from scratch and develop a liberal political system for the rst time in our history demanded the bold consolidation of society. That is why I assumed all responsibility for what is taking place in the country and this was a must. However, today, when all important parameters of the process of modernising the country have been dened and we realise that it is irreversible, there is sense in redistributing some duties and responsibilities between the president and parliament. I propose to choose a way of changing the constitution in which the country remains presidential but with the considerable expansion of parliaments powers. This will transform our countrys model of government from presidential into presidential-parliamentary. [4. p 11] Since 2007, when the countrys constitution was amended, the institution of presidency has preserved its role as an element stabilising the system, concentrating the efforts of elite groups on solving important political problems, as was the case, for example in the mid-1990s (the economic crisis) or at the beginning of the 2000s (the elites crisis) [5, 10]. Analysts point to the fact that in Kazakhstan the presidential form of government is one of the fundamental organisational conditions for the stability of the entire political system of the country. The presidential power in Kazakhstan embodies not only the strength of government but also, not least, the basis on which the mechanisms of self-regulation of branches of power develop and their organic integration into the structure of public life and deep strata of social culture, inherent to Kazakh society [1].
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This was all prompted by the consensus nature of the political course, adopted by the Kazakh president, which has always helped mobilise and consolidate political and economic elites during reforms that were crucial for the country. Another advantage of the head of states policy was the ability to conduct large-scale reforms with minimum conict, which, in turn, demanded the consolidation of efforts in solving these. Kazakh society was consolidated around the strong and dynamic leader with a clear vision of prospects of further development. The unity and stability achieved under the leadership of President Nazarbayev was a deliberate political decision taken by the majority of the countrys population, repeatedly conrmed in elections, including the presidential election in 2005* and the parliamentary election in 2007**. As a result, in this case stability acts as an en-masse demand and the policy of stability, pursued by Mr Nazarbayev, meets the peoples expectations [5, p 11]. When considering the rst presidents role in Kazakhstans modern history, it is necessary to note the special role personalities play in the political process in modern Kazakhstan and the post-Soviet space in general. It is no great exaggeration to say that the history of the establishment of independent Kazakhstans statehood was fully personied in and revolved around one person. Successes achieved during the years of independence, including Kazakhstans current leadership in Central Asia, are largely linked to Mr Nazarbayevs personality. It is no accident that Russian experts on Kazakhstan and Central Asia consider Kazakhstans phenomenon inseparably from the Nazarbayev factor, a politician on a global scale who has had successful experience in economic and social reforms: Kazakhstans indisputable success is not only and not that much about oil or the elements of the periodical table hidden in the depths of the steppe. In short, Kazakhstan under Mr Nazarbayev has to a greater extent managed to become a fully-edged state than Georgia under Eduard Shevardnadze, Ukraine under Leonid Kuchma or Kyrgyzstan under
* On 4 December 2005, Nursultan Nazarbayev was re-elected president of Kazakhstan with 91.15% of the vote. ** On 18 August 2007, the presidents Nur Otan party won a vast majority in the parliamentary and local elections.

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Askar Akayev. Experts claim that this is an obvious historical fact [6, pp 14-15]. Political analyst Yury Solozobov notes: Nursultan Nazarbayev, whatever fervent Kazakh opposition members say about him, has met a much more important objective for his country. In Kazakhstan, a new national state has been built on a great territory with a small multiethnic population. The most important fact is that this successfully functioning statehood has been built not in the context of high oil prices, but, on the contrary, from the basis of the almost total collapse of the economy in the early 1990s Kazakhstan, I am deeply convinced, is a shining example of the most successful postSoviet statehood. [6, pp 159, 161]

2.2. The Kazakhstan-2030 Strategy The dening factor of Kazakhstans development was strategic planning. At the rst stage of our development we had to focus on institutional construction and the solution of immediate macroeconomic problems, whereas as early as 1998 we managed to look at longer-term prospects. President Nazarbayev noted at the time that it is now important to thoroughly comprehend our situation and analyse our development from the point of view of international experience and compare the degree of implementation of our reforms and formation of new institutions with the best international experience. It is no less important to soberly analyse our strengths and weaknesses and, only after that, to draft our own strategy [7]. This strategy was presented by the head of state in 1997 in his rst State-of-the-Nation Address Prosperity, Security and Improvement in the Wellbeing of All People of Kazakhstan until 2030, or the Kazakhstan-2030 Strategy. All of the presidents state-of-the-nation addresses that followed set the main aspects of the countrys domestic and foreign policy, taking the strategys priorities into account. For example, in his address Through the Crisis to Renewal and Development, made on 6 March 2009, the president stressed: We have adopted Kazakhstans development strategy for decades to come, and our experience in turning it into the countrys real successes have made us condent in our own strength and we have become convinced of the correctness of the path we have chosen. [7] Russian political analysts, closely watching our successes, have concluded that in the end, the countrys wellbeing lies in the implementation of the Kazakhstan-2030 Strategy [6, p 117]. The Kazakhstan-2030 Strategy is based on seven long-term priorities: 1. Developing and strengthening the national security system Strengthening national security is one of the necessary mechanisms that ensure the stable and sustainable formation of any state. After the adoption of the Kazakhstan-2030 Strategy the development of

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Kazakhstans national security system acquired strategic importance and purpose. Our country has now created a comprehensive and efcient security system which takes into account its social, economic and military-political aspects. Kazakhstans security system is based on laws and special programmes, including the 1998 Law On National Security, the Strategy for National Security in 2006-2010; the Military Doctrine; and the Blueprints of Military Reforms. The latter programmes resulted in Kazakhstan launching the process of creating a professional army, capable of defending the country from foreign aggression. In issues of ensuring national security Kazakhstan sticks to a multi-vector policy with singling out strategic partners. This foreign political course has led to Kazakhstans present membership of various systems of collective security which make it possible to maintain the balance between interests of global powers in its territory, ensuring the basics of the strength of our states national security. These systems of collective security are the Shanghai Cooperation Organisation (SCO), the Organisation for Security and Cooperation in Europe, the CIS Collective Security Treaty Organisation and the Conference on Interaction and Condence-Building Measures in Asia (CICA)*. Kazakhstans active involvement in these international organisations coincided with the beginning of the implementation of the Kazakhstan-2030 Strategy. 2. Ensuring domestic political stability and the consolidation of society Ensuring domestic political stability is a key priority for Kazakhstans development until 2030. Implementing this priority will only be possible when the following main components, dened in the strategy, exist:
* It was Kazakh President Nursultan Nazarbayevs idea to establish the CICA belongs to. Kazakhstan is an active member of the organisation, proven by its summits held in Kazakhstan. This organisation is expected to occupy an important place in creating a system of collective security in Asia. That Kazakhstan initiated and took part in its creation shows the maturity of our state and its ability to full a considerable role in the context of Asian and global security.

- equal opportunities for all citizens of the country; - the removal of interethnic contradictions and the quality of rights for all ethnic groups; - the reduction of the gap between the rich and the needy; - the solution of social problems and rural problems; - the development of all forms of communications between people; - the strengthening of mutual respect, tolerance and trusted relations between different denominations [7]. As a result, our formula for domestic political stability can be presented as the sum of two components social stability and interethnic stability. And now we can proudly say that his formula is working successfully. This is also stressed by Russian experts: Kazakhstan is the most successful country in the CIS. It is the only country to efciently modernise the economy while preserving social and interethnic stability. [6, p 187] In the 2008 state-of-the-nation address the head of state noted that over the past 16 years of independence we have designed our own model of ensuring social stability, interethnic accord, building Kazakh identity and Kazakh patriotism. This is our Kazakh know-how, which we are proud of and have to carefully preserve [8]. 3. Economic growth based on an open market economy with high levels of foreign investment The development of private initiative and business, active foreign trade and the attraction of investment in the countrys economy are important preconditions for ensuring sustainable economic growth in Kazakhstan. In terms of this indicator, for the past few years Kazakhstan has been on a par with rapidly developing countries, such as China, India and ASEAN countries. Our countrys economic growth was based on the implementation of the rst, preparatory, stage of the Kazakhstan-2030 Strategy in 1998-2000. Kazakhstan then built the basis for the fullment of all
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the provisions of this programme. The present stage aims at the postcrisis development of the economy with high rates of development of oil and gas elds as the basis of reviving the oil and gas sector and increasing budget revenue. The rapid development of the oil and gas sector brought Kazakhstan out of the economic crisis in the 1990s. Since 2000 Kazakhstan has been rmly moving along a path of intensive economic development that coincided with the second stage of the Kazakhstan-2030 Strategy. The second stage was intended to be carried out between 2001 and 2010. This phase organically continues the previous policy based on high economic growth rates, macroeconomic stability and the creation of conditions for a switch to sustainable economic growth model. Generally, since the beginning of the strategy, Kazakhstans GDP has increased ve-fold, and its foreign exchange and gold reserves now exceed $40bn. We can say that Kazakhstan is now, despite the consequences of the global economic crisis, ready and able to make a new qualitative breakthrough in its economic development: We have all the necessary resources and experience to withstand the global crisis We will overcome all the difculties and make our Kazakhstan a strong, prosperous and respected state in the world. [9] 4. The health, education and wellbeing of all of Kazakhstans people The issue of the social wellbeing of Kazakhs has always been a priority for state policy. Kazakhstan has adopted a comprehensive approach to their solution, envisaging increasing not only the living standards of the population but also developing human capital and improving the quality of life. In the healthcare sphere the priorities of the state policy are to improve the quality of medical services offered to the population and assist the healthy lifestyle of citizens. This means that emphasis is placed not on the treatment of diseases but their prevention. These priorities are being implemented as part of the programme of reforming and developing the healthcare sphere in Kazakhstan in
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2005-2010, which aims to build an efcient system of medical services that meets the modern needs of the population. The programme has already produced good results. For example, Kazakhstan has managed to considerably improve medical services for the population, medical and demographic indicators of births, deaths, natural population growth and stabilise the maternal and infant mortality, and decrease the occurrences of diseases caused by poor living conditions. The Code of the Republic of Kazakhstan On the Health of the People and the Healthcare System has been drafted and submitted for the Mazhiliss consideration. Since Kazakhstan aims to build a knowledge-based economy, the government is paying particular attention to the education sphere. Reforms have been conducted in secondary and higher education to ensure access to education for all the citizens of the country, especially young people, and international standards are being adopted. Funding for the education sphere has constantly been increased, teachers salaries have also been increased and school infrastructure has been improved. By 2008 public spending on education had increased by 6.4 times between 2000 and 2008 and it will have grown by almost 10 times by 2011. Kazakhstan was the rst country in the CIS to computerise its schools. A new mechanism of enrolling students through comprehensive university entrance tests has been adopted. A multilevel system of training specialists which meets international standard classications of specialities has been introduced. A market of education services based on the mechanism of the multi-channel funding of universities has emerged. Special focus has been placed on the social protection of the population. Government spending on social security and assistance totalled 566.5 billion tenge in 2008, up by 22.5% from 2007. Growing funding for social programmes has made it possible to increase social allowances for all categories of recipients. For example, the minimum pension paid under the solidarity system is 12,700 tenge, the average pension is 18,400 tenge and the maximum pension is 26,700 tenge. The average size of pension has almost doubled in the past ve years.
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The central budget makes timely monthly social payments to 4.3 million people, or about a third of the countrys population. In addition, local authorities allocated 1.1 billion tenge for target social support; 1.7 billion tenge for child allowances and 3.6 billion tenge for housing support. 5. The efcient use and development of energy resources It is no exaggeration to say that the main locomotive that has the pulled other sectors of Kazakhstans economy is the oil and gas sector. That is why the development of energy resources was singled out by the president as one of the strategys long-term priorities. Moreover, the growing Kazakh economy is demanding more spending on energy, and so Kazakhstan needs to adopt energy-saving technologies and develop alternative and traditional sources of energy. In order to achieve this aim the Law On Energy-Saving was adopted on 25 December 1997 which, along with the industrial and innovation development strategy, gave rise to the process of intensive development of energy-saving technologies and of alternative sources of energy. The further development of our energy potential has necessitated the solution of a number of important problems, the principle of which is to ensure the outstripping development of deep rening and quick entry for products with high added value to the international market. Aside from this, the key aspect of the work on energy potential is to diversify and ensure stable energy routes to global markets. Kazakhstan bears and realises its signicant responsibility to maintain an energy balance and security on the global scale.

opment of transit transport corridors. The main objective in this sphere is to create a rational transport network integrated into the international transport system that ensures access to global markets. To this end Kazakhstan has adopted the Blueprint to Develop International Transport Corridors and the Transport Strategy until 2015, which envisages running 80 investment projects worth about $30bn from different sources of funding. The building of transport corridors with relevant infrastructure, mainly telecommunications, is playing a signicant role in the development of Kazakhstans transit transport potential. Fibre optic lines have been built along the North-South and East-West transport corridors. Kazakhstan plans to build a national information superhighway which will become the shortest telecommunications bridge between Europe and China, Japan and Asia-Pacic. In addition, as part of the strategy the country is carrying out comprehensive work to develop the telecoms sector. At the end of 2005, the KazSat telecommunications and broadcasting satellite was launched. The satellite has become a good basis for the development of broadcasting systems and xed satellite services in Kazakhstan. The number of Internet users in Kazakhstan has exceeded 2 million people and is expected to increase to 3.5 million people in 2010. The wide use of the Internet in schools makes it possible to use innovative, above all interactive, methods of teaching. 7. The formation of professional government One of the long-term priorities of government building in Kazakhstan is, undoubtedly, to improve the efciency of the government system and build a professional government. This aim demanded the reformation of the civil service and the principles of its work and the creation of a body of professional civil servants. During the entire period that the Kazakhstan-2030 Strategy has been being implemented a lot has been achieved. For example, the Law On the Civil Service, adopted on 23 July 1999, laid the foundations to optimise and improve the quality of government. Other
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steps in this direction were the creation of the Agency for the Civil Service in September 1998, the adoption of the Rules for Re-training and Improving Qualications of Civil Servants (on 11 October 2004) and the adoption of a testing system for applicants for jobs in the civil service. All these acts created a mechanism to increase transparency in the stafng of government agencies and increase the professional skills of civil servants. The legislative basis of this process has been laid in the Laws On the Civil Service, On Fighting Corruption, On Administrative Procedures, as well as the Code of Honour of Civil Servants that was adopted. The 2007 constitutional reform increased the local government capabilities: local legislative bodies were given powers of local self-government. International organisations and experts admit that Kazakhstan has brought its legislation and procedures in the civil service signicantly in line with modern international standards.

2.3. The 2007 Constitutional Reform The need for political reforms rst emerged in the second half of the 1990s. The events of autumn 2001 showed that the need to further democratise the political system was increasing and was acquiring a more shaped and systematic nature. In other words, it was clearly seen that the pace of political reforms was far behind that of economic reforms. The country and the government faced the problem of nding a formula for stability, which, in turn, demanded the creation of a mechanism for the coordination of the interests of major socio-political and social groups. Kazakhstan had to make a choice. The rst scenario meant the preservation of the political situation as it was, i.e. freezing the process of political modernisation, and using government structures to ensure stability. The second scenario required that Kazakhstan undergo a stage of political liberalisation and gradually switch to the classic model of democracy with a balance between branches of power, a functioning civil society, citizens involvement in political decision-making and other attributes. For the countrys sustainable development, the authorities, to their credit, opted for the second scenario. It was for this reason that various platforms for dialogue were created in the country: rst, the permanent conference on drafting proposals on further democratisation and the development of civil society, and later the national commission for democratisation and the development of civil society. A presidential decree, issued on 20 March 2006, set up a state commission to draft and specify a programme of democratic reforms. The state commission faced a complex task: to draft a strategy for political reforms that would make liberal democratic transformations in the country systematic and irreversible and nd a compromise on the vision of the countrys future development. In addition, it was necessary to identify the main problems that hindered political modernisation and nd solutions to these. The commission completed its work on 19 March 2007.
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New constitutional amendments, based on the results of this commissions work and recommended by the head of state, passed by parliament in spring 2007 opened wide opportunities to boost the entire political process in Kazakhstan. New ideas touched various aspects of political life. On the one hand, this was in practical terms a fundamental reformation of the existing political model, resulting in signicant expansion of the powers of the legislative branch, a new conguration of the party sphere, the development of real civil society and the non-governmental sector, all of which would ensure the direct involvement of wide-ranging groups of the population in political processes. On the other hand, these changes laid the foundation for better coordinated operation of the government system because all central bodies of power will now be mutually dependent and mutually supplemented. In addition, the most vivid characteristic of the new political system will be the strengthening of the mechanism of checks and balances in relations between the branches of power. By involving parliament in the processes of choosing, agreeing and nally endorsing a candidate for prime minister, the president signicantly strengthened powers of lawmakers and gave them the right to get involved in the formation of the executive branch. As a result, the whole cycle of endorsing a candidate for prime minister will be at an equal distance from the main centres of power mechanisms because the right of the nal vote will be exercised by the political parties represented in the Mazhilis. This means that the responsibility for appointing a prime minister will be equally distributed between the president and the legislative branch. In turn, the members of parliament represent various regional interests, the interests of different strata of Kazakh society and the main political and ideological forces of society. Generally, the wide spectre of political forces, as the architects of the constitutional reform intended, which will be presented in parliament, is an important condition for the national dialogue that is needed for Kazakhstans sustainable development. The new functions and powers of parliament include both chambers right to take part in the formation of the Constitutional Council,
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the Audit Committee and the Central Election Commission. These functions will enable Kazakh society to get involved in the election process and the process of adopting the countrys budget, dene development priorities and will serve as an impetus to expand access to information, discussion and public argumentation of its vision on the development of the political, economic and social spheres of the countrys life. Prior to these amendments the development of political institutions in Kazakhstan was largely according to a trajectory set by the executive branch, but now with parliamentary involved in appointing the Constitutional Council, the Audit Committee and the Central Election Commission, politically and socially active groups of the population involved in political parties will have a direct impact on the functioning of power. The lawmakers, party factions and parliamentary groups will become the main players of the election process as the new powers of political parties (which, in line with the new amendments, will be elected to the lower chamber of parliament by a proportional system, i.e. on party tickets, and the number of MPs was increased by 30 people, including nine to be appointed by the Assembly of Kazakhstans People) signicantly increase the publics access to representation in branches of power in our country. Another breakthrough aspect in the development of constitutionalism was the abolition of the ban on public funding of political parties, NGOs and public associations. What is the point of this step? The constitutional provision for funding the entire range of political forces will legalise their activities, increase the efciency of dialogue and cooperation with the government, ensure wider social representation in parliament and strengthen relations between government bodies and society on the most crucial issues of everyday life. Moreover, public funding will boost the populations civil activity and improve civic-consciousness. Particular attention should be placed on the states funding of political parties on the legislative basis. Public funding seems to have become the necessity of the time. On the one hand, this signicantly narrows the eld for hidden lobbying of interests of various groups
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within the country and practically abolishes the practice of funding from aid, because in the legal eld political players, as a rule, will aim to act within the countrys legislation. On the other hand, there will be no grounds to accuse the state of directly supporting certain parties in during election campaigns because the state will offer support to all legally existing and promote their platforms when they achieve recognition by the electorate. The Mazhiliss increased control over the work of the government following the constitutional amendments will prompt the government to raise the quality of its current and future work and make the principle of competitiveness an obligatory condition for the executive branch. The Mazhilis will be capable of raising a vote of no condence in any member of government according to the principle of a simple majority, which will signicantly increase the degree of responsibility of the executive branch. Moreover, the government will not be able to rely only on its administrative powers because of a new provision which enables parliament to judge the governments work based on the report on the fullment of the central budget. The failure to endorse the report will also mean a vote of no condence in the government. In other words, the governments activities will largely be coordinated with parliament, making them not just transparent but also grounded. This is precisely what is described as the mechanism of checks and balances in action. Along with powers, the responsibility of the MPs also grows. The provision of the absence of the imperative mandate of deputies was excluded from the constitution which should strengthen intra-party discipline and order and help parties develop as participants of the political processes and boost party factions and groups of deputies. At the same time, the experience in some developed countries shows that party factions are the main centres of intra-party discussions and debates, increasing the efciency of the work of parties. These changes could also be described as progressive because they have laid a new system of relations between MPs and their voters through the party political system. This means that a party member who becomes a deputy cannot discredit the work of their party in
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parliament or contradict it or themselves and cannot manipulate the will of voters who elect them as representatives and defenders of their interests. Cutting the presidential term from seven to ve years after 2012 and limiting the number of consecutive terms to two is the most important part of the constitutional amendments. Even though some researchers found that this amendment violated the rights of Kazakh voters and negated the very principle of democracy when the election of the head of state is dependent on time limits set by the terms of ofce, generally this state of affairs is the most preferable and acceptable in the present reality in Kazakhstan. Increasing the number of senators appointed by the president by eight (taking into account the necessity to present ethnic and cultural and other important interests of society in the Senate) will improve the positive perception of parliaments upper chamber by society because in Kazakhstan the image of a politician depends on their recognisability, reputation and socio-political activity in the perception of the conservative majority. Powers assigned to the Senate, such as its consent to the appointment of prosecutor-general, chairman of the National Security Committee, chairman of the National Bank and its powers to adopt laws when the Mazhilis is dissolved, are a very strong argument in favour of boosting the activities of the upper chamber. The Senate is in essence turning into a balancing component in the activities of the Mazhilis within the legislative branch in usual conditions and the main centre of power in force-majeure circumstances and situations, i.e. the backbone factor of stability and sustainability of the presidential-parliamentary form of government.

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2.4. The Parliament of the Republic of Kazakhstan The history of Kazakhstans parliamentarianism begins in March 1990, when the election to the Supreme Soviet of the Kazakh SSR of the 12th convocation was held. This was the rst democratic election to the countrys highest legislative body when the Soviet administrative-planning system was still strong. Over 2,000 candidates contested 360 seats in parliament. The peculiarity of this election was that 90 people were elected from republican public organisations. Even though this election was held in the absence of fully-edged political parties, it made the transformation of the totalitarian system irreversible. From 1990 the political system changed signicantly in Kazakhstan. Public and political movements exerted pressure on political institutions, mainly on the power structures of the Communist Party of Kazakhstan, blaming it for the economic crisis and failures in economic reforms. Moreover, discord emerged among the Communists and calls were made for reforming the party. New parties and movements then emerged Azat, Zheltoksan, Alash, Unity, the Social Democratic Party and others. The changing political situation set its demands after the declaration of independence the country badly needed to develop the new legal basics of its statehood. That is why the rst laws to be drafted were the Laws On the Establishment of the Post of President, On the Election of President of the Republic, the Declaration on State Sovereignty; the new name of the state was adopted and the citizenship of the Republic of Kazakhstan was established; new state symbols: the national emblem, the national ag and the national anthem were adopted; the legislative basis for the formation of the armed forces and the law-enforcement agencies of the state was created. Taking the new conditions into account, the new constitution was drafted and adopted by the ninth session of the Supreme Soviet of the Republic of Kazakhstan of the 12th convocation on 28 January 1993. This became the beginning of a switch to a qualitatively new stage of ensuring national independence and real guarantees
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of civil rights and liberties and the practical implementation of the promising ideas of building a democratic society and lawful state. However, the new possibilities opened up and the growing economic crisis diverted the peoples attention from politics. The further implementation of reforms and the deteriorating socioeconomic situation showed the inefciency of central bodies of power, above all, in the legislative branch represented by the obsolete Soviets, which failed to react quickly to the rapidly changing events and adopt appropriate measures. The results of the work of certain bodies of the Supreme Soviet of the 12th convocation that were functioning on the permanent basis also conrmed the idea of creating a professional parliament, which would work in one pattern with the government. It was in these conditions that the countrys leaders chose to create an orderly state structure based on the principle of a division of branches of power functioning on a permanent basis with a clear distribution of rights, duties and responsibilities between all of its players. This resulted in the adoption of the Law On the Voluntary Dissolution of the Supreme Soviet of the Republic of Kazakhstan on 10 December 1993. The next election to the Supreme Soviet of the 13th convocation was held on 7 March 1994, and it helped the development of a multiparty system in Kazakhstan. A total of 73.84% of voters took part in the election, and out of 910 candidates 692 met the registration requirements and contested 135 parliamentary seats in single-seat constituencies, with an average of ve candidates standing in each constituency. The Union of Peoples Unity of Kazakhstan, the Peoples Congress Party, the Socialist Party and the Federation of Trade Unions set up their party factions and a further 14 groups of deputies were set up based on their members occupations. Parliamentary opposition very quickly emerged in the Supreme Soviet of the 13th convocation and it was led by the Progress group of deputies, which proposed a package of reforms titled the New Economic Policy.
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For the rst time in Kazakhstans history political parties and movements gained access to the real levers of power and the possibility of inuencing government policies. The new Supreme Soviet, elected in March 1994, was more professional and started its work by hearing many urgent laws. However, the imperfection of the Code On Elections, the continuing debate about many provisions of the constitution, the sluggishness of the Supreme Soviet in adopting necessary market laws created a deadlock in the political and economic sphere. It was precisely this reason that Kazakhstans national currency, the tenge, collapsed at the beginning of 1994. The events that took place in March 1995 had considerable inuence on the political situation in the country. On 6 March 1995 the Constitutional Court of the Republic of Kazakhstan issued a ruling on a lawsuit brought by the former parliamentary candidate, Tatyana Kvyatkovskaya, who cast doubts on the constitutionality of certain actions in the organising and holding of the election to the Supreme Soviet. By this ruling the Constitutional Court found the March 1994 parliamentary election and the powers of deputies illegitimate. As a result, in line with the Constitutional Courts ruling, the Supreme Soviet ceased to exist. The ruling stated: not only did the methodology of the vote count, adopted by the Central Election Commission, lead to widespread violations of the constitutional principle of one voter one vote, but it also distorted the election results, and, in essence, changed the election system established by the Code On Elections. By this the Central Election Commission violated Article 60 of the constitution, exceeding its powers. [10] Thus, the second composition of the Supreme Soviet was found illegitimate and the unconstitutionality of parliaments powers meant the unconstitutionality of the governments powers. As a consequence, as well as the members of the Supreme Soviet, government members had to resign. The parliamentary crisis grew into a constitutional one. In this situation the entire responsibility for the future development of Kazakhstan fell onto President Nursultan Nazarbayev. In that period his work was more intense than it had ever been. In the
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absence of parliament the head of state signed 511 decrees, including 132 that had the force of law, to revive the economy through the creation of a new and sufcient legislative basis. He went on to issue laws that were vital to continue the reforms the Laws On Land, On Oil, On the National Bank, On the Parliament of the Republic of Kazakhstan and the Status of Its Deputies, On Excises, On Bankruptcy and so on [11]. Two years later in December 1995 the rst bicameral Parliament of the Republic of Kazakhstan was established: the election of members of the Senate, parliaments upper chamber, was held on 5 December, and the election of members of the Mazhilis, the lower chamber, was held on 9 December. In accordance with the Constitution of the Republic of Kazakhstan, adopted by a referendum on 30 August 1995, the Parliament of the Republic of Kazakhstan is the supreme legislative body of the country. The Law On Elections in the Republic of Kazakhstan set different procedures for the election of members of the Senate and members of the Mazhilis. Senators were elected by regional legislatures (two senators from each region) with a two-year cycle of election of half of the senators, while members of the Mazhilis were elected in a direct election in single-seat constituencies for four years. According to the Law On the Parliament of the Republic of Kazakhstan and the Status of Its Deputies, 15 deputies of the Senate are appointed by the countrys president with account of the need to ensure the representation of national cultural and other signicant interests of society in the Senate and nine deputies of the Mazhilis are elected by the Assembly of Kazakhstans People. According to the architects of the constitutional reform, the Senate was appointed to represent the interests of regions and limit excessive radicalism by the Mazhilis, while regions received the opportunity of comprehensive discussion and weighted decision of their main problems through the senators. This has, to some extent, integrated the lawmaking initiatives of each region of the country. In addition, the election of half of the senators every two years makes the parliamentary system very exible, because the relatively
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frequent election changes the social composition of the upper chamber in line with social and political changes in Kazakh society. At the same time, the other half of senators ensures the continuity and efciency of the upper chamber. The term for senators is six years, while the term for members of the Mazhilis is ve years. Members of parliament take an oath before the people of Kazakhstan.

2.5. The Government of the Republic of Kazakhstan The government is the highest body of the executive branch. It tops the system of executive bodies, which includes ministries, agencies, committees and local executive bodies regional, district and town administrations or akimats. The president, with parliamentary approval, appoints and dismisses the prime minister; on the prime ministers suggestion denes the structure of the government and appoints and dismisses members of government; forms, abolishes and reorganises central executive bodies; and accepts an oath by members of government. The government drafts the main aspects of the states socioeconomic policies, its defence capability, security, public order; presents a central budget to parliament and reports on its implementation; submits draft laws to the Mazhilis and ensures the observation of laws; manages the state property; and drafts foreign policy. The prime minister forms and heads the government and bears responsibility for its work; reports to the president about the main aspects of the governments work; and signs resolutions. Members of government independently take decisions within their powers. They are responsible before the prime minister for the work of bodies they run. Each chamber of parliament has powers to discuss reports by government members on the issues of their activities. In case of a government member failing to observe laws, deputies can propose the president dismiss that government member. The government within its powers adopts resolutions which have compulsory force throughout the country. The newly-formed government drafts a plan of action and presents a report on it to parliament. If parliament rejects the governments programme, it should resubmit the programme within two months. If parliament rejects the programme again by two-thirds of the vote, this means a vote of no condence in the government. The government has powers to make lawmaking initiatives. The government composes a plan of lawmaking work under which it submits draft laws to parliaments Mazhilis. Ministries and state com95

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mittees take part in drafting laws and their heads bear responsibility for their quality. The government fulls orders by the president on submitting laws to the Mazhilis. The government also implements external functions. It takes decisions on the implementation of international agreements and carries out measures to develop foreign relations in the trade, nancial, education, science and other spheres. The Government of the Republic of Kazakhstan acts within the term of powers of the president and resigns before the election of a new president. The work of the Government of the Republic of Kazakhstan is coordinated by the Ofce of the Prime Minister, which is a government body which supervises the activities of ministries and agencies of Kazakhstan. The main tasks of the Ofce of the Prime Minister are: the information and analytical, organisational and legal and paperwork provision of the activities of the prime minister and the Government of the Republic of Kazakhstan; the pursuit of a single state policy in the sphere of protecting state secrets and coordination of the activities of government bodies and organisations to protect state secrets and ensure information security. The Ofce of the Prime Minister also coordinates the work of government bodies in the process of drafting and implementing acts by the government and prime minister and monitors the deadlines of implementing acts and orders issued to the government by the head of state, resolutions by the government and prime minister and instructions by the prime minister. The Government of the Republic of Kazakhstan includes 17 ministries. The Ministry of Foreign Affairs of the Republic of Kazakhstan (MFA) is the central body that performs foreign political activities and heads the single system of diplomatic service bodies of the Republic of Kazakhstan. The main tasks of the ministry are: drafting a blueprint for and the main aspects of Kazakhstans foreign policy and presenting the relevant proposals to the president and the government; implementing the countrys foreign policy and assisting its foreign economic
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policy and strengthening Kazakhstans international reputation; and defending the rights and interests of Kazakhstan, its citizens and legal entities abroad. The MFA is also responsible for advancing through diplomatic means and methods Kazakhstans efforts to ensure international peace, global and regional security; ensuring through diplomatic means and methods the protection of sovereignty, security, territorial integrity and the inviolability of borders of the Republic of Kazakhstan, its political, trade and economic and other interests in relations with foreign countries and international organisations. The ministry also drafts proposals for the president on Kazakhstans foreign political and foreign economic strategy and implements the presidents international initiatives. The Ministry of Defence of the Republic of Kazakhstan leads the armed forces, solves tasks relating to the countrys defence and drafts a blueprint for building and developing the armed forces, other armed and military formations, conducts a single military and technical policy in the state, drafts a state programme for the development of weapons and military equipment and proposals on state defence order and spending on defence, and provides material and technical supplies to the armed forces and cooperates with other government agencies on issues surrounding the defence of the country. The chief organ to manage the countrys armed forces during peacetime and war is the Committee of the Chiefs of Staffs of the Armed Forces of the Republic of Kazakhstan. It coordinates plans for the creation and development of the armed forces, other armed and military formations, their speedy combat and mobilisation preparations, organises and conducts operative-strategic plans for the use and coordination of the armed forces, other armed and military formations and drafts plans for speedy preparation of the country in the interests of defence. Relevant legislative acts of Kazakhstan regulate the provision of military security of the state when there is a threat and during war, the rules for creating and operating wartime government agencies and military command.
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The Ministry of Transport and Communications of the Republic of Kazakhstan is a central body which manages and coordinates any inter-sectoral coordination of issues around the development and implementation of state policy in the transport and telecommunications sphere. The main tasks of the Ministry of Transport and Communications are: the formation of state policy in the transport and communications sphere and the reactive creation of an efcient and technologically advanced transport and telecommunications system to meet the demands of the economy and society for transport and telecoms services. The ministry includes: the Committee for the Development of Transport Infrastructure, the Railways Committee, the Civil Aviation Committee and the Transport Control Committee. The main functions of the Ministry of Transport and Communications are: the formation of state policy in the transport and telecoms sphere; drafting government and sectoral programmes for the development of transport and telecoms networks; drafting legislative acts, proposals to improve the application of legislation and drafting and adopting legislative acts regarding transport and telecoms issues it is responsible for. In addition, its functions include drafting and adopting technical and other standards in the transport and telecoms sphere on issues which are within the powers of the ministry; making predictions and offering timely and quality services to meet the transport and telecoms needs of the country and the economy. The Ministry of Economy and Budget Planning of the Republic of Kazakhstan is involved in creating and developing a system of state planning to help the efcient implementation of priorities of Kazakhstans socioeconomic development. The main tasks of the Ministry of Economy and Budget Planning are: the formulation of strategic goals for and aspects of the main priorities of Kazakhstans socioeconomic development; the formulation of state scal, customs and budget investment policies with account of priorities of the countrys socioeconomic development and monetary-credit policy and policy in the sphere of international economic and nancial relations. In addition, the ministry drafts
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government policy in the sphere of managing state-owned assets in various sectors of the economy. The Ministry of Culture and Information of the Republic of Kazakhstan is a central executive body of Kazakhstan, and its main purpose is to formulate state policy in the spheres of culture, information, domestic political stability, interethnic accord and the development of languages, archives and paperwork, publishing and printing. The ministry includes the Culture Committee, the Information and Archives Committee and the Languages Committee. The Ministry of Health of the Republic of Kazakhstan is a central executive body which manages the sphere of healthcare, medical and pharmaceutical education. The main functions of the Ministry of Health are: developing state policy in the healthcare sphere, medical science and medical and pharmaceutical education; ensuring free medical services to the level guaranteed by the government (stipulated in legislation). In addition, the ministry is also responsible for supplying safe, efcient and quality medicines to the population and medical establishments. The ministry incorporates the Committee for Sanitary and Epidemiological Supervision, the Pharmacy Committee and the Committee for Monitoring the Quality of Medical Services. The Ministry of Agriculture of the Republic of Kazakhstan is a central executive body that fulls state policy in the spheres of agriculture, forestry, shery and hunting, environmental protection territories and the management of water resources and ora and fauna resources. The ministry coordinates the work in the spheres of agricultural machine-building, veterinary, phyto-sanitary, pedigree animal husbandry, melioration, irrigation and drainage, and food production. This ministry includes the Water Resources Committee and the Committee for Forestry, Fish and Hunting Industry. The Ministry of Employment and Social Security of the Republic of Kazakhstan manages the sphere of labour and social relations and conducts any inter-sectoral coordination in it. The main objectives of the ministry are: formulating state policy in the spheres of labour, health and safety at workplace, employment,
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social partnership, pension, social insurance and migration in line with its powers. The ministry runs territorial bodies in regions and Astana and Almaty. It also includes the Migration Committee. The Ministry of Energy and Mineral Resources of the Republic of Kazakhstan is a central executive body that formulates state policy and coordinates management processes in the spheres of energy, mineral resources, oil and gas, petrochemistry and nuclear, energy-saving and the use of renewable and non-traditional sources of energy. The main objective of this ministry is to ensure the sustainable development of Kazakhstans economy. The ministry also drafts programmes for the development of the countrys fuel and energy sector and ensures the sectors development and the countrys energy security and independence. In addition, one of the ministrys most important functions is to ensure the replenishment of the mineral resource base, the rational use of mineral resources and the comprehensive development of petrochemical productions. The Ministry of Education and Science of the Republic of Kazakhstan conducts management and inter-sectoral coordination in the spheres of education and science. The main objectives of the ministry are: formulating a single state policy in the spheres of education, science, technology and aerospace activities and the state youth policy; creating the conditions necessary for people to receive education; improving scientic research and boosting the nations labour competitiveness; ensuring the protection of rights and legal interests of children. The ministry includes the Committee for Supervision and Examination in the Education and Science Sphere and the Aerospace Committee. In line with legislation, the Ministry of Education and Science drafts blueprints, strategies, state and targeted programmes and plans to implement state policy in the spheres of education, science and technology and the state youth policy; to ensure rights and legal interests of children; formulate the policy to improve the quality of
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education and draft the innovation policy in the spheres of education, science and aerospace and develop the space sector. The Ministry of Internal Affairs of the Republic of Kazakhstan (MIA) is a central executive body that manages the system of interior bodies of Kazakhstan and protects public order and ensures public security in Kazakhstan. The ministry implements state policies on the law-enforcement. The objectives of the interior bodies are: protecting public order and ensuring public security, including in emergency situations and under martial law; preventing, investigating and uncovering crimes and administrative violations and searching for criminals; conducting preliminary investigation, questioning and administrative procedures within remits dened by legislation. In addition, the ministrys powers include: detecting and preventing homelessness and crimes by minors; ensuring trafc safety; guarding government and other facilities and individuals and escorting detainees and convicts, preventing terrorist attacks and releasing hostages. The ministry also monitors the observance of rules of living in Kazakhstan by foreign citizens and stateless persons. The activities of interior bodies should be based on the principles of lawfulness, the unity of command, the unity of the system of interior bodies, transparency and coordination with other law-enforcement and government agencies, ofcials, organisations and citizens. The Ministry of Industry and Trade of the Republic of Kazakhstan performs the functions that draft state policy and legislative regulations in the sphere of industrial development, the development of the defence industry and the scientic, technical and innovative development of the country. This ministry also coordinates the development of the trade, entrepreneurship and protection of competition, construction and architecture, landscaping and housing and utilities spheres. The most important objective of this ministry is to create favourable conditions for encouraging private investment in the non-extractive sector of the economy. The ministry includes the Committee for Industry and Scientic and Technical Development, the Committee for the Regulation of
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Trade and Tourism Activities, the Committee for the Protection of Competition, the Committee for Construction and the Housing and Utilities Sphere, the Committee for Technical Regulation and Metrology and the Investment Committee. The Ministry of Environmental Protection of the Republic of Kazakhstan conducts management and inter-sectoral coordination on the drafting and implementation of state policy in the sphere of environmental protection and the use of natural resources. The main objective of the ministry is to improve the environment and achieve favourable levels of the environmentally sustainable development of society. The ministry incorporates the Committee for the Supervision of Environmental Protection and territorial environmental protection bodies in the regions, Astana and Almaty. In line with legislation, the ministry formulates state policy on environmental protection and drafts proposals to formulate a single state policy in this sphere. This ministry also develops and improves the system of state management in the environmental protection sphere, state environmental expert examination, activities relating to the issuing of permits, licences and environmental conclusions, regulation and standardisation within its remits and a system of economic methods and mechanisms of encouragement of the rational use of natural resources and environmental protection. The Ministry of Finance of the Republic of Kazakhstan is a central executive body that manages the budget and nancial sphere. The main objectives of the ministry are: formulating and implementing state policy on the budget, customs and tax control, internal nancial control and state purchases. This ministry also conducts state regulation of the production and sale of tobacco products, ethyl alcohol and alcoholic products and certain types of petroleum products. The ministrys powers also include issues of bankruptcy, out-ofcourt procedures of liquidation of indebted companies, rehabilitation procedures relating to insolvent debtors, the management of state property, accountancy, nancial reporting and auditing.
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The ministry includes the Treasury Committee, the Customs Control Committee, the Tax Committee, the Financial Control and State Procurement Committee, the Committee for Work with Insolvent Debtors, and the State Property and Privatisation Committee. The Ministry of Justice of the Republic of Kazakhstan is a central executive body of Kazakhstan that manages the sphere of the legislative provision of activities of government and public organisations in the country. The main objectives of the ministry are: providing a legislative basis for the work of the state; ensuring the legality of the work government agencies, organisations, ofcials and citizens; ensuring the protection of the rights and lawful interests of citizens and organisations. The ministry includes territorial bodies in the regions, Astana and Almaty and the Registration Service Committee, the Intellectual Property Rights Committee, the Penal and Penitentiary System Committee, and the Committee for Legal Advice and Services. In the order set by legislation, the Ministry of Justice develops national legislation, organises lawmaking work and conducts the legal examination of legislative acts. Its powers also include providing a legal basis for the drafting and conclusion of Kazakhstans international agreements; offering legal advice and services to the population; and protecting intellectual property. Relatively recently the ministrys functions expanded into administering criminal punishment and the temporary isolation of suspects in detention centres. In addition, the ministry supervises the government registration of legal entities, property rights and operations with them, legislative acts, acts of civil status, registration of citizens, registration of movable property as security and issuance of documents to citizens of Kazakhstan. The Ministry of Emergencies of the Republic of Kazakhstan formulates state policy in the sphere of preventing emergency situations of a natural or manmade nature, handling the consequences of these and civil defence.
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This ministry is responsible for state control in the sphere of re and industrial safety, and health and safety at hazardous production facilities. The ministry also monitors safety in industry and the building and expanding of state material reserves, ensuring the functioning and development of the state system for the prevention and handling of emergency situations, and the prevention and extinguishing of res. The ministry incorporates territorial bodies in the regions, Astana and Almaty, the Committee for State Control and Supervision in the Sphere of Emergency Situations and the Committee for State Material Reserves. In line with the tasks delegated to it, the ministry prevents and clears up natural and manmade emergency situations and takes civil defence measures. In addition, it drafts proposals to use material, technical, food, medical and other resources from state and mobilisation reserves and means from government reserves. The Ministry of Tourism and Sport of the Republic of Kazakhstan formulates state policy in the spheres of tourism and sport. The development of tourism has been acquiring particular importance for the countrys economy. The development of amateur and professional sport in Kazakhstan is also an important aspect of the governments activities that aims to diversify the development of the economy and the social sphere in Kazakhstan. The ministry includes the Tourism Committee and the Sport Committee.

2.6. Reforms in the Judicial System After the adoption of the Constitution of the Republic of Kazakhstan on 28 January 1993, new social and political relations emerged in the country. Moreover, Kazakhstan declared that its aim was to build a lawful state. Achieving this required radical legal reforms which would better meet the socio-political, socioeconomic and international status of the new state. The presidents Resolution On the State Programme of Legal Reforms in the Republic of Kazakhstan of 12 February 1994 became a historical document that dened the priority aspects for reforms in the judicial and legal system: just and independent courts; highly-qualied, impartial judges appointed on a permanent basis; improvements in the living standards of judges these are the foundations of impartial judiciary and it is precisely a decent life for a judge that stresses the importance and immeasurable responsibility of their work and provides social security for them. Therefore, improving their living conditions was made a priority. This resolution clearly regulated the structure of the countrys judicial bodies, the powers of judges and personnel issues. The structure and composition of judicial bodies were also dened at that point. It was decided that the Supreme Court would rule on all economic issues and issues relating to the carriage of justice and the provision of judges with everything they needed for this was delegated to the head of the apparatus. The composition of regional and town courts has been the same since that time, while the powers and objectives of martial courts in Kazakhstan enabled them to become members of the plenum of the Supreme Court of the Republic of Kazakhstan. The institution of peoples assessors was abolished. The presidents next step in reforming the judicial system was the 1995 Decree On Courts and the Status of Judges in the Republic of Kazakhstan, which had the force of constitutional law. The decree xed the dening status of the judiciarys independence, making it one of the equal branches of government. The main government bodies of Kazakhstan responsible for legislative and legal issues are the Supreme Court, the Constitutional
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Council, the Prosecutor-Generals Ofce and the Ministry of Justice of the Republic of Kazakhstan. Judicial power shall be exercised on behalf of the Republic of Kazakhstan and shall be intended to protect the rights, freedoms, and legal interests of citizens and organisations and ensure the observance of the constitution, laws, other legislative acts and international agreements of the republic. [12, Article 76] The highest judicial body in the country is the Supreme Court of the Republic of Kazakhstan, the members of which are appointed by the Senate following the presidents nominations which in turn are based on recommendations by the countrys Highest Judicial Council. The Supreme Court has powers to supervise and overturn rulings of lower courts. In addition, it is the body that gives explanations on issues of judicial practice and the application of legislative acts. The Constitutional Council of the Republic of Kazakhstan issues rulings on all issues relating to the observance of constitutional norms and procedures adopted. The Constitutional Council considers the presidents protests and if they are not overcome by a majority of the vote decisions by the Constitutional Council are regarded as void. The Constitutional Council rules on the legitimacy of presidential and parliamentary elections and examines laws to establish their conformity with the Constitution of the Republic of Kazakhstan. The Constitutional Council has seven members, three of whom, including the chairman, are appointed by the president. Four members represent the chambers of parliament: two members are appointed by the Speaker of the Senate and the other two by the Speaker of the Mazhilis. All former presidents receive lifetime membership of the Constitutional Council. The chairman of the Constitutional Council is appointed by the president, and when votes are divided equally the chairmans vote is critical. The organisation and work of the Constitutional Council is regulated by a constitutional law. The Constitutional Councils rulings come into force from the day of their adoption and are obligatory throughout Kazakhstan. They are nal and cannot be appealed against.
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The government body that monitors the observance of law is the Prosecutor-Generals Ofce. The Prosecutor-Generals Ofce reports to the president. It exercises supreme control over the exact and uniform application of laws, presidential decrees and other legislative acts in the country and monitors the legality of search, questioning, investigation, administrative and penal procedures. The Prosecutor-Generals Ofce takes measures to establish and eliminate any violations of law, protest laws and other legislative acts contradicting the constitutions and laws, represent state interests in court and conduct criminal prosecution. The state prosecution represents a single centralised system of bodies and establishments with prosecutors at a lower level being subordinate to prosecutors at a higher level and the prosecutor-general. The Prosecutor-Generals Ofce carries out its duties independently of other government bodies and ofcials, political parties and other public associations. Involvement in the activities of the prosecutors ofces is banned. Acts issued by the Prosecutor-Generals Ofce are obligatory for all bodies, organisations, ofcials and citizens. With the aim of ensuring the supremacy of the constitution and laws and protecting human rights and liberties of citizens, while exercising supreme control over the exact and uniform application of laws, presidential decrees and other legislative acts, on behalf of the state prosecutors ofces: detect and take measures to eliminate violations of the constitution, legislative acts and acts by the president; exercise control over the legality of search, questioning, investigation, administrative and penal procedures; and represent state interests in court. In addition, the Prosecutor-Generals Ofce appeals against laws and other legislative acts contradicting the constitution and laws of Kazakhstan; has the right to conduct criminal prosecution in the order and within the powers set by law. Prosecutors ofces compose state legal statistics to ensure the uniformity, objectivity and sufciency of statistical indicators, carry out special records, and monitor the application of laws in the sphere of legal statistics and special records.
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2.7. The Party System Political parties play an important role in socio-political and public life, acting as a link between society and the state. The objective of parties is to actively take part in political life at all stages of the political process: in elections, in forming legislative branches of power and adopting political and government decisions. In a democratic state, competition between political parties plays an important role. In this regard, on the one hand, the development of the party system can be considered an indicator of democratisation in general, and, on the other hand, one can suggest that the establishment of democratic institutions (above all, free elections) helps parties to develop. The Constitution of the Republic of Kazakhstan guarantees the rights of parties, movements and associations, except for those whose activities aim to change the constitutional system with force, violate the integrity of the country, undermine the security of the state and incite social, racial, interethnic, religious, class and tribal discord. The state is not allowed to become involved in the business of parties and public associations. Generally, the process of party construction, which from the very beginning accompanied political transformations in Kazakhstan, in the rst decade of the reforms, was chaotic in nature. This was mainly conditioned by the fact that political transformations in the country took place in parallel with the creation of the foundations of Kazakhstans statehood and the adoption of market mechanisms and the transformation of public consciousness [13]. Due to understandable reasons the dissolution of the previous, Soviet model of political system and ideology the process of party construction in Kazakhstan developed under the conditions of the lack of a social base and the blurring of political platforms of most parties. This conditioned a complicated, state-by-stage nature of party construction in the country. In July 1996 the country adopted the Law On Political Parties in the Republic of Kazakhstan. In accordance with this law, in order to prevent the possibility of a one party monopoly, the territorial
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principle of forming parties was adopted and the creation of political parties in government agencies and the establishment and activities of militarised political parties were banned. This law bans the creation and activities of political parties which aim to change the constitutional system with force, violate Kazakhstans territorial integrity, undermine the states security and incite social, racial, interethnic, religious, class and tribal discord. With the aim of preventing a bond between government and party bodies the law stipulates that civil servants are guided by requirements of legislation when performing their duties and should not be bound by the decisions of parties or their bodies. On 9 February 2009 the Kazakh president signed the Constitutional Law On Adopting Amendments and Addenda to the Constitutional Law of the Republic of Kazakhstan On Elections in the Republic of Kazakhstan. The law aims to create a legal mechanism to form a parliament of at least two parties and improve the election process. The law stipulates that if as a result of an election only one party is elected to parliament, the next party with the second highest vote is allowed into parliament even if it does not clear the 7% barrier. Thus, the law regarding political parties aims to strengthen the multiparty system in the country on democratic principles. As for the role and signicance of parties in Kazakhstans sociopolitical life, we should note that mechanisms for the parties real involvement in government have not yet nally been devised. Kazakh society has not yet fully realised the role of parties as a mechanism of government by the people. The establishment of democratic institutions and the reformation of the party system in Kazakhstan have not yet been completed. However, we can already state that parties have all the preconditions to become a bridge between the people and the government, foster government thinking in the masses and express and represent the populations interests. The institution of strong and large political parties with wide regional networks is becoming an additional factor in the stabilisation of society and a mechanism through which the electorate receive the possibility of consciously inuencing government policy.
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As a result, the prospects for parties which operate within legitimate boundaries in terms of their political stability and ability to inuence are very promising and stable. At the moment, there are ten political parties operating in Kazakhstans political eld, of which nine are ofcially registered. The Alga! party remains unregistered. The following parties are ofcially registered: The Nur Otan Peoples Democratic Party The Nur Otan Peoples Democratic Party is the most powerful political force. The chairman of Nur Otan is President Nursultan Nazarbayev. The Otan* Republican Political Party was set up in January 1999 and was registered with the Ministry of Justice on 12 February 1999. On 4 July 2006, at the ninth unscheduled congress of Otan in Astana, the Asar Republican Party merged with Otan. The Otan party acquired its new name at its tenth unscheduled congress in Astana on 22 December 2006 when it united with the Civil and Agrarian parties. As a result of their merger, it was decided to rename the Otan Republican Political Party as the Nur Otan Peoples Democratic Party. Nur Otan is now the largest political force in Kazakhstan, with the ofcial number of members exceeding 700,000 people. The partys main goals are: to actively conduct economic and political reforms to further democratise society; to improve the living standards of citizens; to establish social justice and preserve stability in the country; to strengthen interethnic and inter-religious accord; to foster patriotism among citizens and responsibility for all-round and harmonious development of Kazakhstan. In the Mazhilis of the parliament of the third convocation, Nur Otan held the majority. After the 18 August 2007 unscheduled election to the Mazhilis, Nur Otan with 88.4% of the vote was the only party that cleared the 7% hurdle and became the only party to sit in the Mazhilis.
*

The National Social Democratic Party The National Social Democratic Party was set up on 10 September 2006 and was registered on 25 January 2007. The number of members is 140,000. The chairman of the party is Zharmakhan Tuyakbai. The party has branches in all regions of Kazakhstan and in Astana and Almaty. The National Social Democratic Party is a member of Socialist International, an inuential international organisation. The party aims to build a democratic, lawful, social sate and an innovative economy and pursue a new humanist policy. In the election to the Mazhilis in 2007, the party came second with 4.5% of the vote. This result was achieved because of a merger with the Nagyz Ak Zhol Democratic Party. However, after the defeat in the election, the leaders of Nagyz Ak Zhol Bolat Abilov, Oraz Zhandosov and Tulegen Zhukeyev announced their withdrawal from the National Social Democratic Party. The Azat Democratic Party The Azat Democratic Party of Kazakhstan was set up from the Nagyz Ak Zhol Democratic Party, which, in turn, was established on 29 April 2005 as a result of a split in the Ak Zhol Democratic Party, and was registered on 17 March 2006. On 23 May 2007 Nagyz Ak Zhol and the National Social Democratic Party decided to create the For a Fair Kazakhstan election bloc to take part in the election to the Mazhilis. However, after the adoption of the new election law which banned election blocs, Nagyz Ak Zhol merged with the National Social Democratic Party, but preserved its registration. The National Social Democratic Party received 4.54% of votes in the election, but failed to get into parliament. On 9 October 2007 Nagyz Ak Zhol split from the National Social Democratic Party. On 29 February 2008 the party renamed itself as the Azat Democratic Party. The structure of the party also changed: Bolat Abilov was elected chairman instead of three cochairmen of the party, Tulegen Zhukeyev became secretary-general
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The previous name of the Nur Otan Peoples Democratic Party

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and Marzhan Aspandiyarova and Petr Svoik became deputy chairs of the party. Azat positions itself as a party of the middle class. The party aims to build a democratic, secular, lawful and social state and an open society, to consolidate citizens efforts to build an independent, prosperous, democratic and free Kazakhstan. The party has lately been drifting towards the national-patriotic eld. The Ak Zhol Democratic Party The Ak Zhol Democratic Party of Kazakhstan was registered on 3 April 2002. Its membership exceeds 175,000 people. In the 2004 election to the Mazhilis the party collected 12.04% of the vote, receiving one seat. In the latest parliamentary election, the party won 2.09% of vote and failed to clear the 7% hurdle. In local elections, it won one seat in a district legislative body. The election defeat forced Ak Zhol to split into two independent parties. On 18 September 2007, the plenum of the Central Committee of the Adilet Democratic Party discussed the results of the election to the Mazhilis and the local elections of the Ak Zhol Democratic Party. The plenum unanimously decided to convene the fourth unscheduled congress of the Adilet party to discuss splitting from the Ak Zhol party. As a result, the Adilet party will most likely re-emerge as a political player. It is worth noting that the leader of Ak Zhol, Alikhan Baimenov, who was seen as a moderate opposition member, after the election became somewhat radicalised, protesting against the election results jointly with the leaders of the National Social Democratic Party and the Communist Peoples Party in public and in court. Nevertheless, it is too early to talk about the consolidation of constructive and radical opposition forces into a single party, but the possibility of this occurring in the future should not be ruled out. The party aims to build an independent, prosperous, democratic and free Kazakhstan. Its fundamental values are democracy, independence, freedom and justice.
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The Adilet Democratic Party The Adilet Democratic Party was registered on 14 June 2004. Its chairman is Maksut Narikbayev. The party has 70,000 members and branches in all regions, Astana and Almaty. In the 2004 election to the Mazhilis, Adilet received 0.76% of votes. In the Mazhilis of the third convocation the party had one seat one in a single-seat constituency. The parliamentary election on 18 August 2007 made this party realise that it would not be able to enter parliament with its limited cadre and material resources. That is why on 8 July 2005 the fth congress of Adilet decided to join the Ak Zhol party. The partys main objective is to build a lawful, democratic and social state in Kazakhstan, create an efcient, advanced and developed economic system and build a civil society. The Communist Party of Kazakshtan The Communist Party of Kazakhstan is a successor of the Socialist Party of Kazakhstan, set up in the early 1990s from the branch of the Communist Party of the Soviet Union in the Kazakh SSR. The Communist Party of Kazakhstan was registered on 27 August 1998 and underwent re-registration on 20 March 2003. Its leader is Serikbolsyn Abdildin. The partys membership exceeds 54,000 people, and it has branches in all regions of the country. Party members are chiey WWII veterans, workers and pensioners. The party boycotted the election to the Mazhilis of the fourth convocation. The partys main objectives are: to create conditions for building a society of freedom and social justice based on the principles of scientic socialism in Kazakhstan and build a communist political system. The Communist Peoples Party of Kazakhstan The Communist Peoples Party of Kazakhstan was formed by several members who split from the Communist Party of Kazakhstan in
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February 2004. On 21 June 2004 the party received state registration. Its leader is Vladislav Kosarev. The party has over 100,000 members, mainly workers, students, representatives of the intelligentsia, pensioners, and entrepreneurs. The party held no seat in the Mazhilis of the third convocation. It received 1.29% of the vote in the election to the Mazhilis of the fourth convocation, but secured not a single parliamentary seat. In local elections it managed to win 10 seats in local legislatures. According to its political platform, the partys activities are based on the Marxist-Leninist ideology, adapted to new realities of the development of society. The Auyl Social Democratic Party The Auyl Social Democratic Party was registered on 1 March 2002, and it was re-registered on 2 April 2003. The party is chaired by Gani Kaliyev. It has over 61,000 members and branches in all the countrys regions. The partys declared goals are to strengthen government regulation and support to the agricultural sector and protect the interests of farmers. The party held no seat in the Mazhilis of the third convocation. It won 1.51% of votes in the parliamentary election on 18 August 2007, and claimed 31 seats in local legislatures. The Party of Kazakhstans Patriots The Party of Kazakhstans Patriots was registered on 4 August 2000 and re-registered on 21 March 2003. It has 172,000 members. The leader of the party is Gani Kasymov. It had no seat in the Mazhilis of the third convocation, and managed to receive only 0.7% of the vote in the 18 August 2007 parliamentary election. It received one place in local legislatures. In late August 2007 President Nazarbayev appointed Gani Kasymov senator, and this is expected to boost the partys development.
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The partys declared aims are: to help the national revival of Kazakhstans peoples, to build a democratic, lawful state and a civil society with a market economy, to involve the socially active groups of society in government and public affairs, to ensure the countrys sustainable development, to improve the living standards of the population and to prioritise peoples health. The Rukhaniyat party The Rukhaniyat party was registered on 6 October 2003. It has 72,000 members and branches in regions, Astana and Almaty. Its leader is Altynshash Zhaganova. The support base of the party is workers of the education, healthcare, science and cultural spheres, entrepreneurs and students. The party aims to develop the economy, solve social problems and develop a highly moral and spiritually rich society. It was not represented in the Mazhilis of the third convocation. In the election to the Mazhilis of the fourth convocation it received 0.37% of the vote.

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2.8. Kazakhstan Is a Multiethnic State Kazakhstan has become home to over 130 ethnic groups. Various reasons historical, political, and social helped make this the case. A few centuries ago the Kazakh steppe started to see people from outside. Russian peasants who were in search of lands ended up there, as did Cossacks who were called to protect the frontiers of the Russian Empire. In the 19th century many Uighurs and the Hui people ed China in search of peace and security and settled in modern-day Kazakhstan. A great wave of Russian, Ukrainian, Belarusian, Polish and Bulgarian settlers with their families, junks and livestock moved to the Kazakh steppes during the Stolypin reforms. In the 1930-1940s Koreans, Germans, Chechens, Ingush, Meskhetian Turks and many other ethnic groups were forcibly deported to Kazakhstan. After WWII, dozens of thousands of people from all over the former Soviet Union ooded Kazakhstan either for the great construction projects of communism or to tame virgin lands [14]. Kazakhstan is a multiethnic country and the basis of its political stability is interethnic accord. Kazakhstan has created a legislative basis which is founded on civil and political commonness of all citizens which ensures the equality of rights and liberties of citizens regardless of their ethnic or religious origin. This principle is the foundation of the governments policy on ethnic minorities. The legislative basis of Kazakhstans policy towards ethnic minorities is a set of legislative acts, starting with the constitution, which ban any activities that could disturb interethnic accord. Generally, the countrys policy towards ethnic minorities is based on the supremacy of law and the rational combination of collective rights of ethnic groups and the individual rights of people. Kazakhstan has created a unique and efcient mechanism to pursue a policy on ethnic minorities and hold an interethnic dialogue in form of the Assembly of Kazakhstans People, which was set up by a presidential decree of 1 March 1995 as an advisory body under the president and which later became an ofcial body.
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As a result of its activities, the process of the cultural revival of ethnic groups is under way now and the assembly ensures an all-round dialogue between them. This experience is being studied by some of the neighbouring countries. A balanced policy on languages is being pursued, and Kazakhstan is one of the few countries that have solved these problems without serious conicts and shocks. A natural process of mastering the state language, Kazakh, by the countrys citizens, especially by young people, is under way. Kazakhstans language diversity enriches the culture of Kazakhstan and acts as an important factor, boosting the unity of multiethnic Kazakhstan. Among the signicant auxiliary measures to revive and develop cultures of ethnic monitories are the houses of friendship that are funded from the budget. With state support, newspapers and magazines are published in 11 languages, 44 television studios broadcast in 12 languages and 18 radio studios broadcast in seven languages. Under state purchase orders up to 30 book titles with a total number of over 80,000 are published in minority languages every year in Kazakhstan. The Dostyk (Friendship) socio-political magazine is published with the editorial board involvement of all of the heads of the countrys national cultural associations that are members of the Council of the Assembly. Festivals of folk arts and languages of Kazakhstans peoples are held regularly, and the Day of the Unity of Kazakhstans People, the Day of the Remembrance of Victims of Political Repressions and the Day of Spiritual Unity and Accord are marked. In addition, each ethnic group has their own traditional folk holidays that have been revived during the years of the countrys independence and that are marked with representatives of other ethnic minorities. The countrys spiritual revival and inter-religious accord and tolerance are being ensured. Tolerance in the religious sphere, historically inherited by the present generation of Kazakhstan, is a good basis for preserving civil and inter-religious peace in the future. As a result, it has been proven by deeds that multiethnicity is not a fault but, on the contrary, an advantage to the country.
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2.9. The Non-Governmental Sector During the years of its independence Kazakhstan has managed to conduct major political reforms that have made possible the creation of a new political system and the development of new civil society institutions: political parties and independent media. The non-governmental sector is the most dynamic of them. Non-government organisations (NGOs) operate in all socially important spheres of life. These include issues of environmental protection, the social sphere, education, culture, healthcare, gender relations, human rights and so on. The number of issues NGOs deal with is approaching 6,000. However, at the initial stage of the development the non-governmental sector was barely surviving and lived on foreign grants. At that time Kazakhstan did not have a holistic system of interaction and cooperation between the state and NGOs. Nor was there a legislative basis for the operations of NGOs. Moreover, the economic state of the country hindered signicant state support to this sector. However, the situation has now drastically changed and as a result of real state support to NGOs the sector is now a fully-edged member of the political process. Over the last several years, the number of ofcially registered NGOs has increased considerably. The characteristic features that accompany the development of the third sector in Kazakhstan are: its noticeable activity, involvement in public life and the growing understanding of the fact that NGOs can have an important positive impact on the development of society in general. The creation of the Civil Alliance of Kazakhstan in 2005 has played a great role in strengthening the positions of NGOs in Kazakhstan. Earlier, the full development of NGOs had been hindered by lack of a strategy for cooperation between non-governmental organisations. They were disunited and did not coordinate their work to solve social problems. In addition, the situation was complicated by unhealthy rivalry between them. Generally, all this damaged the development of NGOs. The abovementioned Civil Alliance of Kazakhstan was called on to consolidate
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local civil society institutions to maintain efcient cooperation with the government. Its activities signicantly strengthened the role of NGOs in society. Its involvement in the lawmaking process is also strengthening the non-government sector. In March 2006, the Civil Alliance initiated the creation of the chamber of Public Experts at the Kazakh parliaments Mazhilis. This boosted the professional level of legislative acts. In addition, this chamber exercises public control over parliamentary work. A shining example of the sectors growing role in the countrys life is the election of the Civil Alliance president and co-chairwoman of the Union of Women Entrepreneurs of Kazakhstan, Aigul Solovyova, to parliament. The presence of civil society activists in power structures offers additional opportunities to establish an equal dialogue between the authorities and civil society groups. Another important step in boosting the non-governmental sector in Kazakhstan was a constitutional reform, as a result of which a ban on state funding of public associations was lifted. This will lead to wider involvement of NGOs in the process of reforms and closer cooperation with the state. As a result, NGOs received a new impetus for their development and involvement in solving socially important problems. One of the instruments that boosted the role and importance of NGOs in society is their participation in election processes. NGOs views on elections reect the level of socio-political maturity of NGOs themselves and the states readiness for democratic elections. During the 2007 parliamentary election in Kazakhstan, public organisations carried out advert campaigns to boost voters participation in the voting and monitored the course of the election. For example, in addition to observers from the OSCE, the CIS and other international organisations, about 8,000 activists from the national public Committee for Monitoring Elections observed the election. Annual civil forums which represent an efcient platform for dialogue for discussing existing problems and nding solutions to them based on the principles of equal partnership and cooperation are one of the indicators of the growing signicance of the civil sec119

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tor in Kazakh society. The role of the non-governmental sector in democratising the country was legitimised at the Civil Forums held in 2003 and 2005, which also started the creation of a systematic mechanism for cooperation between civil society, government agencies and businesses. Finally, the third Civil Forum in October 2007 dened the priority aspects of cooperation between the state and NGOs and drafted mechanisms for this. Forum participants arrived at the understanding of the need to build an equal dialogue between society and the government of all levels. Today non-governmental organisations have great opportunities to draft breakthrough ideas and are capable of offering invaluable assistance to the state in solving many social problems. The countrys competitiveness should be based on civil initiative that aims to develop the economy, continue democratic transformations and improve the countrys life, President Nursultan Nazarbayev told the third Civil Forum. We should note that the president is an ideologist of the priority development of non-governmental organisations and the establishment of civil society in general and prioritises these tasks in his annual state-of-the-nation-addresses. During the forum NGOs secured the support of the main political player in the country, the Nur Otan party. The party intends to lobby the interests of NGOs, advance social programmes and laws that encourage their development. All in all, the state sees the non-governmental sector as a reliable partner in solving social, economic and legal problems because the main requirement of the current stage of development is to overcome the autonomy of components of the political system and establish equal cooperation.

2.10. The Media Kazakhstans media market has matured after undergoing the necessary stages of development. There are a number of reasonably strong media outlets and media groups in the country that unite their efforts in order to survive in erce market competition conditions. This process was not chaotic. It was conditioned by the purposeful government policy on the media, the main principles of which are: the creation of a single media space in the country; the democratic modernisation of state-owned and private media outlets; and the creation of conditions for ensuring political stability and interethnic accord, information security and the efcient work of political institutions in the country. After obtaining independence Kazakhstan faced the problems of creating its media market. Following this, it is feasible to consider the main stages of the formation of the Kazakh media market. Local experts single out specic stages of the development of the media market in Kazakhstan. The rst stage, from 1991 to 1995, was characterised by state monopoly of the media when there were practically no independent media outlets. This was a period of the beginning of the era of openness: the media started to criticise certain aspects of the political system. At this point, the ideology of the fourth estate and the myth about the independent press were prevalent among Soviet and Kazakh journalists. The rst politicised newspapers and private television channels, as well as a great number of new publications of diverse editorial policies, emerged on the Kazakh media market at that time. This stage started in 1991 when independent Kazakhstan adopted its rst legislative acts the Law On the Press and Other Media Outlets, which conrmed Kazakhstans adherence to democracy. Article 1 of the law pronounced freedom of press and freedom of speech. Censorship was banned by legislation for the rst time. Government ofcials were also banned from involvement in editorial issues and from hindering journalists professional activities. The law also expanded journalists right to seek out and obtain information, and it granted political parties, public associations and in121

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dividuals the right to set up media outlets, which gave an impetus to the formation of democratic principles of the functioning of the media. The novelty and democratic values of the rst media law became a powerful factor for the rapid development of the Kazakh press. However, since this law was adopted at the very beginning of Kazakhstans independence, many provisions of it quickly became obsolete, falling behind the requirements of the time. The media legislation helped the development of the media eld to an extent, but in terms of quality the media grew slowly in the market economy. A switch to market relations drove the prices of paper, printing and postal services up and this hindered the development of the local media. In April 1992 the government drafted measures to support the media in this period, offering assistance with paper and other materials as part of the state orders and tax breaks. In addition, the government drafted a programme to privatise state-owned media outlets. In essence, this started the formation of the independent media in Kazakhstan. This stage had specic features: the partial departure of the state from controlling the media; the emergence of the party press; and the high level of trust in the media by the population. The second stage of the development of the media was between 1996 and1999. This period saw the government depart from unconditional domination of the media market and the rapid development of the private media. At the same time, the privatisation of some media outlets reduced the market share of the state-owned media. Many media observers describe this period as the golden age of the national media. This was also the rst wave of the privatisation of the media. New publications and television and radio stations started to emerge on the Kazakh media market. New outlets started using the models and formats of modern Western journalism and tried to separate news from commentary and making newspapers on the principles of thematic columns. Electronic media outlets also adopted the format of live broadcasting. This stage saw the dynamic qualitative and quantitative growth of the media market and an increase in the role of the Kazakh media in the countrys socio-political sphere.
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This stage was characterised by: the beginning of the crystallisation of Kazakhstans media market; the large-scale privatisation of previously state-owned media outlets and printing enterprises; a switch from state funding and subsidies for media outlets to state purchase orders to conduct state media policy; and the emergence of media groups. Simultaneously, there was a clear trend of the politicisation of the media and the strengthening of political and economic elite groups inuence on major media outlets and the media acquired the status of a separate functional resource. The third stage started in 1999 and ended in 2002 after the adoption of another Law On the Media. The law was passed in July 1999 and consisted of 26 articles, and it was concise in its content, but very strict about the presss duties. This law abolished the state monopoly to the media legislatively. In line with this law the state retained only two means of inuencing the media: - legislative (administrative) leverage, which meant that the state could intervene only if the media law were violated; - economic (non-administrative) leverage, which was applied through the system of the state purchase orders (the state purchase orders were placed through tenders, in which private media outlets could also take part). A number of amendments to the media law in 2001 played an important role in the development of the local press. Particular attention was paid to the gradual limitation of the retransmission of foreign television programmes by Kazakh stations. These amendments aimed to protect local television which encountered great problems competing with more developed and powerful foreign television channels. At the same time, it required the local electronic media expand their volume of production and encouraged the qualitative growth of local television products. One of the main features of this stage was a boost in the role of the media in the system of political and economic relations and, as a result, their gradual loss of independence in the media system.
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Having been convinced in the efciency of information technologies, political and economic elite groups started investing in the media market, creating their own media groups that divided practically all national media outlets among themselves. In general, this stage was characterised by: the clear division of media players into pro-governmental, opposition-minded and neutral; the signicant increase in the medias inuence during election campaigns; the medias involvement in rivalry between power groups; the nal switch to practice, apart from the administrative and economic regulation of the activities of media outlets; the states increased role in controlling media activities; and the emergence of public organisations that protect media freedom. The fourth stage started in 2002 and is still under way. The landmark of this stage is the creation of the Public Council on the Media under the Kazakh president in 2002. The council is an advisory body, and its main objectives are: the systematic comprehensive analysis of the activities of the media and the drafting of recommendations for the president on building and improving state media policy. The council has the right to request and obtain information, documents and material from government agencies and listen to reports by government ofcials and media organisations on the observance of the media legislation. The main result of the councils activities so far is the rejection of the new edition of the Law On the Media in 2004. Even though this draft law had undergone all stages of discussion and was ready for signing, the president, after learning arguments put forward by the Public Council and NGOs, decided to veto this law. President Nazarbayev was praised for this by the international community. On 6 February 2009 after discussions throughout 2008 there was another important event: the president signed the Law On Adopting Amendments and Addenda to the Law of the Republic of Kazakhstan On the Media. These amendments were initiated by the head of state. Speaking at the opening of a parliamentary session, President Nazarbayev stressed the need of further liberalisation in the media sphere and the removal of excessive bureaucratic barriers.
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The work on these amendments took into accounts opinions of many media and human rights organisations, as well as media experts. The president signed the Law On Adopting Amendments and Addenda to the Law of the Republic of Kazakhstan On the Media on 6 February 2009 [16]. At that time the idea of drafting the Code of Professional Ethics for Journalists was oated, and it was adopted at the rst Congress of Journalists of Kazakhstan. Organisations that protect the rights of media workers, for example the Solidarnost (Solidarity) foundation for protecting the rights of journalists, were set up. In summer 2006, technical amendments were made to the Law On the Media to improve the media situation in the country: outlets were made to undergo the process of re-registration if their circulations, editors-in-chief and addresses changed; the personal responsibility of editors for the content of their outlets was increased and so on. The main characteristics of this stage were: the adoption of the new rules of the game in relations between the media; the increased role of the media in political processes; and the devising of a mechanism to ensure a balance between freedom of speech and the medias responsibility before society. At present, the Kazakh media market is the most developed in Central Asia. According to the Kazakh Ministry of Culture and Information, as of December 2008 there were 2,810 media outlets, of which 21% were state-owned and 79% private. As for electronic media, there are now 63 television companies, 40 radio companies, 142 cable television operators and ve satellite broadcasters. In addition, there are 11 news agencies operating in Kazakhstan at the moment. The countrys Internet community is the regions largest with over 2 million people.

References 1. .. // http://www.kisi.kz 2. // www.akorda.kz

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3. / . . .. . : , 2008. 4. .. (, 16 2007 .) // : (22 2007 .). , , 2007. 5. .A. // : . : , 2008. 6. : - . .: , 2007. 7. .. -2030: , . . , 2001. 8. , 6 2008 . // http://www.akorda.kz 9. .. . . 6 2009 . // www.akorda.kz 10. 6 1995 . // . 1995, 7 . 11. .., .., .. , // -. 2005, 30 . 12. 30 1995 . ( 7 1998 .). 13. .. // -Policy. 2001. 3. 14. .. . -: , 1990. 15. .., . // : : . . .-. . : , 2007. 16. : // http: // www.internews.kz

CHAPTER 3. FOREIGN POLICY 3.1. Kazakhstans Multi-Vector Foreign Policy Since obtaining independence Kazakhstans foreign policy has been based on a principle of multi-vector relations that was declared by Nursultan Nazarbayev as soon as he was elected the countrys president on 1 December 1991. President Nazarbayev believes that the multi-vector policy means the development of friendly and predictable relations with all states that play a signicant role in global politics and represent practical interest for our country. Kazakhstan, because of its geopolitical position and economic potential, cannot limit itself to narrow-regional problems. This would not be understandable to not only our multiethnic population but the entire international community. Kazakhstans future is both in Asia and Europe, in East and West. By pursuing
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exactly this policy will we be able to avert any manifestations of threats to Kazakhstans security. We will be able to strengthen favourable external conditions by economic and political transformations in our country. [1] This position has largely been dened by the countrys geopolitical position, its multiethnic and religiously diverse population and the level of economic development as a whole. Taking into account the current international realities the main emphasis in Kazakhstans foreign policy strategy has been placed on ensuring an efcient security system in Central Asia which is aimed at preventing unconventional threats and challenges (international terrorism, religious extremism, drug trafcking and illegal migration) posed by Afghanistan and other countries bordering the region. In order to solve this problem Kazakhstan found it expedient to focus on the following priority foreign policy aspects: - involvement in interstate associations the Conference on Interaction and Condence-Building Measures in Asia (CICA), the Shanghai Cooperation Organisation (SCO) and the Collective Security Treaty Organisation (CSTO); - strategic cooperation with Russia and China; - friendly relations with Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan; - constructive cooperation with the USA, European Union countries and international organisations, such as the Organisation for Security and Cooperation Organisation (the OSCE) and NATO. - cooperation with the countries of the Islamic world; and - partner relations with Asia-Pacic countries. Taking into account the situation developing in the world, we think that a quite promising international organisation is the CICA, whose main objective is to boost cooperation through multilateral approaches to ensuring peace, security and stability in Asia. From the very beginning the idea of convening the CICA was backed by a number of Asian countries that dene the political climate on the continent and by leading international organisations. The legislative basis for the Asian security system has already been laid out, with specic mechanisms to ensure stability in the
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region. As a result, the CICA is turning into a locomotive of mutual approaches in ghting challenges to security in Asia and making a signicant contribution to ensuring peace and security in the entire world. The Eurasian Economic Community (EAEC) is also acquiring greater weight and reputation: it is aimed at economic integration that envisages the creation of a free trade zone and the formation of a customs union. At the summit of the heads of state of the EAEC member states in Dushanbe on 6 October 2007, the leaders of Belarus, Kazakhstan and Russia signed the documents to create the Customs Union. The creation of the legislative basis of the Customs Union is expected to be completed in 2010. In order to overcome the consequences of the global economic crisis, the summit of the EAEC in Moscow on 4 February 2009 decided to set up an anti-crisis fund worth $10bn. The largest donors are Russia ($7.5bn) and Kazakhstan ($1bn). In order to encourage the development of hi-tech sectors the decision was taken to set up an international centre of high technology. The escalation of tension and the conict situations which constantly emerge on the borders of CIS countries raises the issue of drafting joint measures to counter various phenomena that threaten their stability and development. An important step in this direction was the creation of the CSTO. On 4 February 2009 the CSTO summit in Moscow decided to form the Collective Rapid Reaction Forces (CRRF). These forces should become an efcient and universal instrument to maintain security in the entire space of CSTO, including rebufng military aggression, destroying terrorists, extremists, organised crime and drug trafcking gangs and the consequences of emergencies, if need be. The backbone of the CRRF will be one division and one brigade of air-borne forces (ABF) of Russia and one brigade of ABF of Kazakhstan. Cooperation within the SCO is also acquiring particular signicance and it includes a wide range of mutual actions of an economic, military and political and humanitarian nature. At the same time, it is necessary to stress that the SCO is not a military political bloc and its activities are not aimed at other countries and regions. At the SCO
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summit in Dushanbe in August 2008 particular attention was placed on joint work on the Afghan issues. Under the auspices of the SCO a special conference will be held on Afghanistan to discuss the ght against terrorism, drug trafcking and crossborder crime. The SCO places a lot of attention on increasing economic cooperation, including in the energy, transport, agricultural, trade and investment sectors, as well as the activities of an interbank association, the SCO Business Council and the creation of a transcontinental transport corridor between Europe and Asia. Kazakhstans cooperation with regional and international integration associations shows our governments openness and readiness to build and develop international relations both in bilateral and multilateral formats and on the basis of mutual respect, partnership and prospects. Developing bilateral economic, political, cultural and humanitarian relations with close neighbours plays a key role in ensuring stability and security in Central Asia and creating conditions for mutually benecial cooperation. Kazakhstan and Russia, as a result of various economic, political, ethnic, language, demographic, religious and geographical reasons (the worlds longest land border, a signicant share of Russian speakers in Kazakhstan and ethnic Kazakhs in Russia, interest in political and trade and economic cooperation and so on), are extremely intertwined countries. This is proven by bilateral trade and economic cooperation. Kazakhstans trade with Russia exceeds its trade with all the other Central Asian countries combined. In 2008, bilateral trade reached $20bn in 2008 (against $9.5bn in 2005), and it grows by 30% a year on average. There are over 1,600 enterprises that have the involvement of Russian capital in Kazakhstan [2]. Russian-Kazakh cooperation has been developed both in bilateral and multilateral formats within the CIS, the EAC, the CSTO, the SCO and the Central Asian Cooperation Organisation (CACO). It should also be noted that relations between Kazakhstan and Russia are a foundation for the creation of Eurasian nancial, energy, transport and customs infrastructure.
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The signicance the Kremlin attaches to relations with Kazakhstan was evidenced by the fact that his rst foreign trip as president of Russia Dmitry Medvedev was to Kazakhstan (in May 2008). The special importance given to Kazakh-Russian relations is also proven by three other visits made to Kazakhstan by President Medvedev in 2008 in July, September and December. In 2009, bilateral talks at the highest level were held in Moscow on 4 February as part of the summits of the CSTO and the EAEC. Kazakh President Nursultan Nazarbayev believes Kazakh-Russian relations enjoy a high level of trust and strategic partnership. He thinks that there are no political or economic problems between the two countries that cannot be solved through a constructive dialogue and account of mutual interests [3]. This point of view is also shared by Russian President Medvedev who stressed at a meeting with President Nazarbayev on 4 February 2009 that Kazakhstan and Russia were developing a friendly and allied dialogue [4]. Cooperation with China remains a priority aspect of Kazakhstans foreign policy and its long-term aim is to preserve the peaceful international situation, needed for the successful implementation of internal modernisation in the country. Sovereign Kazakhstan had to build its policy towards China from scratch. President Nazarbayev, analysing the situation in those years, said: Both sides had been forming an image of an enemy and [their] military doctrines declared one another as potential foe General policy and general propaganda had tuned us to a belief that China is enemy No 1 Kazakhstan, after obtaining independence, had to dene its relations with the Peoples Republic of China from scratch. We had to get rid of the legacy we inherited from party ideologists. [5, page 221]. The Chinese leadership also showed readiness to start a largescale dialogue with Kazakhstan on all aspects of bilateral relations. The former president of China, Jiang Zemin, said that China would always be a reliable friend and good neighbour despite any changes taking place in the world [6, pp 35-36]. Kazakh-Chinese economic cooperation is currently developing well. In Chinas foreign trade with CIS countries, Kazakhstan oc131

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cupies second place, behind Russia. In 2007, bilateral trade reached $9.1bn (against $3.7bn in 2005). China shows interest in, above all else, the energy sector. The West Kazakhstan-West China oil pipeline with a design capacity of 20 million tonnes of oil a year is expected to be completed by 2011. Two gas pipelines one from Uzbekistan and the other from Turkmenistan are being built through Kazakhstan to China. Developing relations (bilateral and multilateral) with Central Asian countries Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan is a strategic foreign policy priority for Kazakhstan. Astana proceeds from the fact that the regional countries are bound not only by economic interests but the common fates of the peoples, who are in a good sense doomed to live together in close friendship. At a meeting of the heads of states of the CACO in Bishkek on 9 and 10 January 1997 Central Asias rst trilateral Treaty of Eternal Friendship was signed by Kazakhstan, Kyrgyzstan and Uzbekistan. Article 3 of this treaty stipulates that the parties will offer to one another all-round support, especially in the issue of preventing threats to independence and sovereignty and territorial integrity. Kazakhstan provides sizeable economic and humanitarian aid to neighbouring countries because this helps their stability, and, as a result, security in the region as a whole. For example, Kazakhstans investment in the four other Central Asian countries exceeded $1bn in 2008, including $628.2m that was placed in the Kyrgyz economy and $200.8m in the Uzbek economy. An important way of eliminating conventional and unconventional threats to Central Asian countries is regional integration. The Kazakh presidents initiative to set up a Union of Central Asian States is still a topical issue. The initial stage of this project envisages the creation of a favourable business climate in the entire territory of the region. This may be achieved via the conclusion of intergovernmental agreements to remove protectionist barriers to imports, exports, investment and labour, on the one hand, and joint projects important to the entire region, on the other. The next stage may involve the creation of regional consortia food, water and energy and transport and telecommunications.
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Kazakhstan favours expanding constructive interaction with the USA, taking into account this countrys leading role in the world. Of particular signicance in establishing constructive relations with the USA was the Kazakh leaderships decision to voluntarily give up the status of nuclear power. This fact largely predetermined the future nature of bilateral relations. The former US president, Bill Clinton said that the world had been saved from another threat of nuclear terrorism and nuclear proliferation and praised President Nursultan Nazarbayev for this [6, p 13]. This policy resulted in the memorandum, signed in Budapest on 5 December 1994, on the provision of security guarantees by the United Kingdom, Russia and the USA which aims to ensure the long-term security of the country. The energy sector plays a special part in the development of economic cooperation. One of the rst foreign companies that started operations in Kazakhstan was Chevron, which commenced the development of the Tengiz oil eld in 1993. Chevron and Mobil were involved in the construction of the Caspian Pipeline Consortium (CPC) pipeline, which was completed in 2001. Kazakhstan joined the transCaucasian Baku-Tbilisi-Ceyhan (BTC) oil pipeline in June 2006. The USA is one of the largest investors in the Kazakh economy. Direct US investment totals about $15bn. Kazakh-US trade stood at $2,046m in 2007 (2.5% of Kazakhstans total foreign trade). There are 374 Kazakh-US joint ventures and 91 representatives of US companies registered in Kazakhstan. Great hopes are pinned on the Kazakh-US initiative of publicprivate partnership adopted in February 2008, which will support not only US energy projects in Kazakhstan but will also attract US investment and innovations in the non-extractive sector of the Kazakh economy. Maintaining relations with EU countries and expanding mutually benecial political and economic contacts is another of the main foreign policy priorities of Kazakhstan. Kazakhstan, like Turkmenistan and Uzbekistan, is acquiring increasing importance for the EU (for example, in the energy security
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sphere). With regard to this, the European Union and Central Asia: Strategy for a New Partnership, adopted in 2007, stresses that new prospects are opening up for cooperation between the EU and Central Asia. The EU is also interested in other issues security (border management, migration, the ght against organised crime, international terrorism, trafcking in human, drugs and weapons); regional cooperation; human rights; environmental protection; transport infrastructure; education and culture. Developing cooperation with EU countries is a very current priority for Kazakhstan. The main sphere of cooperation is energy. Kazakhstan is one of the EUs main suppliers of hydrocarbons, accounting for about 20% of its total oil and gas consumption. Trade between Kazakhstan and the EU reached $36.4bn in 2008, with the largest trading partners being Italy (12.6%), France (5.8%), the Netherlands (4.5%), Germany (2.9%), Britain (2.1%) and Spain (1%). EU member states investment capabilities are of signicant interest to Kazakhstan. Since obtaining independence, Kazakhstan attracted about $40bn in foreign direct investment from EU countries, or almost 50% of the total. The main investors are the Netherlands, Britain, France, Germany and Italy. The bulk of this investment was placed in the energy sector. Kazakhstan is now interested in bringing European investment to knowledge-intensive and innovative sectors of industry. The creation of liberal conditions for Kazakh investment in the EU is of similar importance. Kazakhstan is cooperating with the EU in projects like the creation of the INOGATE project to ship oil and gas to Europe and the TRACECA transport corridor from Europe to Central Asia via Caucasus and the construction of the 8,445-km-long West Europe-West China road corridor is expected to be completed by the end of 2013. A special aspect of Kazakhstans foreign policy is the chairmanship of the OSCE in 2010. This envisages not only performing diplomatic functions, but also implementing serious economic and political reforms in the country.
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With this aim President Nursultan Nazarbayev endorsed the Path to Europe Programme for 2009-2011 on 29 August 2008. This programme aims to lift Kazakhstan to the level of strategic partnership with leading European countries, with stress made on developing cooperation in the technological, energy, transport, trade and economic and humanitarian spheres. During its chairmanship of the OSCE Kazakhstan intends to expand cooperation between this organisation and the Islamic world. For example, at the 11th summit of the Organisation of the Islamic Conference in Dakar on 13-14 March 2008, the former Kazakh foreign minister, Marat Tazhin, proposed that Muslim countries join the process of drafting the agenda of the OSCEs activities in 2010. In particular, he proposed to consider the possibility of cooperation between the two organisations on issues of migration and integration of Muslim communities in European countries, the rights of Muslim women and young people in Western societies, modern understanding of international law and environmental protection [7]. Another important aspect of Kazakhstans foreign policy is to develop a dialogue between civilisations and religions held by the Kazakh leadership over the past few years. Astana hosted three congresses of world and traditional religions in 2003, 2006 and 2009 and gathered spiritual leaders of the worlds major religions. Kazakhstan initiated a forum of the foreign ministers of Muslim and Western countries titled Common World: Progress via Diversity in Astana in October 2008. Kazakhstan attaches particular signicance to developing cooperation with the inuential military and political organisation NATO, consistently speaking for the realisation of the existing potential in aspects such as defence policy, scientic research, the development of defence technologies, political and defence measures aimed at the prevention of the proliferation of weapons of mass destruction (WMD). The current relations between Kazakhstan and NATO are characterised by positive, consistent development and are mutually benecial in nature, including the Partnership for Peace programme, drafted
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to build new relations in the security sphere between NATO and its partner. Kazakhstan also pays particular attention to developing relations with Muslim countries. Moreover, our country builds relations with them not on an ideological or religious basis, but proceeding from its national interests and common norms of international law. Kazakhstan has already established economic and cultural cooperation with all leading Muslim countries. It is a member of the OIC (since 1995) and it is cooperating with the Islamic Development Bank and the Islamic Educational, Scientic and Cultural Organisation. Muslim countries, in particular Arab ones, are active in placing investment in the Kazakh economy. However, Kazakhstan does not just receive Arab investment, but it is also involved in cultural exchange with the Arab world. For example, our country is funding work to restore the Sultan Beirbars mosque in Cairo Sultan Beibars was a prominent ruler of Egypt in the 13th century; Kazakhstan is also building the Abu Nasr al-Farabi historical and cultural site in Damascus, where he is buried. In its cooperation with Muslim countries, an important task for Kazakhstan is to position itself as a secular country, in which religion is separated from state and any attempts to manipulate religious issues in achieving political aims will be resolutely stopped. As for the revival of Islam in the country, it should happen as part of the general development of culture and spirituality in Kazakhstan. Taking into account the growing economic weight of Asia-Pacic countries, Kazakhstan has shown signicant interest in expanding cooperation with Japan, India, South Korea, Pakistan, Malaysia, Singapore, Thailand and Indonesia. As a result, Kazakhstan, successfully pursuing its multi-vector foreign policy, has managed to occupy a well-deserved place in the system of international relations and claim a reputation as a reliable, principled and predictable partner.

3.2. Kazakhstans Nuclear-Free Status On obtaining independence in 1991, Kazakhstan inherited a major arsenal of weapons of mass destruction, including 1,216 nuclear warheads for intercontinental ballistic missiles and nuclear reserves for strategic bombers. Kazakhstans inherited nuclear arsenal exceeded those of the United Kingdom, China and France put together and it was enough to destroy everything alive on Earth completely. Aside from the stockpiled nuclear weapons, Kazakhstan had the necessary infrastructure and resource basis for the production of the active components of nuclear weapons. In particular, Kazakhstan accounts for 21% of global proven uranium reserves. In addition, Kazakhstan had the worlds second largest nuclear testing potential. With such nuclear capabilities, Kazakhstan attracted attention from global geopolitical centres immediately, especially when in the early 1990s, despite the complicated economic situation, the country could afford to preserve a small amount of nuclear weapons in its warehouses. Discussions on the need to preserve nuclear potential preoccupied Kazakh society in order to guarantee security and deter the ambitions of potential foes. Now, it is hard to even imagine what negative effect our countrys decision to obtain the status of nuclear power would have had. We have to pay tribute to the wisdom of the Kazakh leaders who withstood pressure from local hawks and did not give in to the temptation to show their nuclear ambitions. On 29 August 1991 President Nazarbayev signed a historical decree to shut down the Semipalatinsk nuclear testing ground. Later Kazakhstan joined the Strategic Arms Reduction Treaty I, and the Kazakh parliament ratied the Lisbon protocol in July 1992 and the Treaty on the Non-Proliferation of Nuclear Weapons in December 1993. Kazakhstan joined the Comprehensive Test Ban Treaty in September 1996. Kazakhstan was the rst country in the CIS to withdraw all nuclear weapons from its territory, and the last nuclear warhead that remained underground at the Semipalatinsk nuclear testing ground on
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27 May 1995. Since then Kazakh land has been fully free of nuclear weapons. Kazakhstans decision on voluntary give-up of the status of nuclear power based on the principles of humanism was an unprecedented and absolutely new step in building civilised interstate relations. Following this, US Senator Richard Lugar speaking at a conference in Washington on 22 February 2003 stated that Kazakhstans wise and bold choice to give up nuclear weapons was in striking contrast to events in India, Pakistan, North Korea and Iran, which is why the world should particularly value the policy adopted by Kazakhstan. He noted that if the international community were to look for success stories in this sphere, it was sufcient to turn to Kazakhstans example [8, p 400].

3.3. Kazakhstan the Chairman of the OSCE in 2010 At the beginning 2009, Kazakhstan, along with Greece and Finland, joined the OSCE troika of chairmen. However, Kazakh representatives started working actively in the OSCE structures as early as in 2008, rst joining the Ofce of the Coordinator of OSCE Economic and Environmental Activities, the country then becoming deputy chairman of the OSCE Parliamentary Assembly, heading the OSCE contact group for the Mediterranean Partners for Cooperation and the personal representative of the OSCE chairman-in-ofce on combating intolerance and discrimination against Muslims. It is worth noting that both for Kazakhstan and the OSCE Kazakhstans chairmanship of the organisation in 2010 is a remarkable event. For Kazakhstan it is not just international recognition of its achievements in domestic and foreign policy, but also the realisation of its responsibility for their further development and readiness to share responsibility for security in the entire space of the OSCE. OSCE member states had to face several precedents linked to Kazakhstans chairmanship: the rst time a CIS country undergoing political transformation has held this post; the country is largely located in Asia; and the country is predominantly Muslim. That is why it was not easy to nd a consensus on Kazakhstans chairmanship. Kazakhstan rst put forward the idea in 2003 and set the initial aim of achieving it in 2009. This initiative was something unexpected by the OSCE member states. The delay in passing decision on the chairmanship, announced in November 2009, uncovered institutional problems in the organisation and the discrepancy between the legislative basis and practical aspects of its activities. It turned out that the legislative basis of the chairmanship did not have clear criteria for assessing a hopeful countrys correspondence to the right to chair the organisation. It became clear that the decision on Kazakhstans chairmanship was to a greater extent linked to the overcoming of Western partners bias towards CIS countries and to current NATO-Russia and EU-Russia relations rather than to the organisations legislative basis.
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A compromise was the decision to suggest that Kazakhstan would chair the organisation in 2010 instead of the requested 2009. This delay was linked to the opportunity to conduct greater reforms in the political, judicial and social spheres and the need to prepare Kazakh ofcials for work in OSCE structures. The then chairman Finlands invitation to Kazakhstan to take part in the OSCE troika of chairs from 2008 to draft OSCE long-term programmes was unprecedented. As a result, Kazakhstan, having entered OSCE structures two years ahead of its chairmanship, received the real possibility of not only acquiring work experience but also drawing the organisations attention to Central Asias topical problems. Moreover, Kazakhstan joined the troika at a difcult time of its development. The global economic crisis damaged the entire system of international relations. The OSCE, despite being an inuential organisation, still cannot play a primary role in solving modern conicts. The OSCE managed to establish a dialogue in the era of the bipolar world and after the demise of the USSR it retained its signicance, helping newly independent countries of the former Soviet Union establish themselves. The organisation now needs to nd new forms of cooperation and attach new understanding to the experience accumulated because adequate responses to modern challenges are possibly only if it changes radically. From the very beginning the OSCEs activities evolved in three aspects military and political, economic and humanitarian. The rst two spheres developed relatively steadily, while the third started causing heated debate at the end of the 20th century, because it turned into a kind of political school of democratic transformations in postSoviet countries. The work of the OSCE showed a misbalance between functional and geographical factors. Economic and military dimensions were practically duplicated and overlapped by the activities of the EU and NATO, while the humanitarian aspect with the Council of Europe. These organisations adopted specic decisions in these spheres, whereas the OSCE held more advisory meetings of member states and its documents remained declarations.
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Geographically the OSCE, which has 56 members of North American, European and former Soviet countries, worked mainly in the countries of the former Soviet bloc through its Ofce for Democratic Institutions and Human Rights. The OSCEs capability was inuenced by US domination, the expansion of the EU and NATO, colour revolutions in post Soviet countries, Russias growing role and the energy crisis. The year 2008 was the most complicated for the OSCE because the recognition of Kosovos independence, the war between Georgia and Russia over South Ossetia and the declaration of the independence of Abkhazia and South Ossetia took place outside a platform for dialogue. The political reality is that in the global crisis with the principle of universal security within the OSCE not implemented, it is necessary to change the ideological approach to the entire security system. This idea is shared by French President Nicolas Sarkozy and Russian President Dmitry Medvedev. The creation of a new European security system in which CIS and EU countries could use a new architecture of security and which will be adequate to new challenges and threats is logically grounded and responsive to the modern stage of global development. The OSCEs short-term task is to strengthen its role in the global system of international relations. What is the uniqueness and potential of the OSCE and what can Kazakhstan propose during its chairmanship? Despite the current complications, the OSCE is an unusual organisation that unites North American, European and former Soviet countries and all member states have equal rights, including the right to chair the organisation. The principle of consensus adopted by the OSCE allows Kazakhstan and CIS countries to inuence the course of discussion and decision-making on key security issues. At a winter session of the OSCE Parliamentary Assembly, Speaker of the Kazakh parliaments Senate Kasymzhomart Tokayev stressed that in the modern world a system of security and cooperation should not be considered European or Asian [9].
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That ensuring security is possible only to the detriment of ones interests is not acceptable now and this became the main leitmotif of the assemblys winter session in 2009. This view was also stressed by the Kazakh and Russian delegations and during discussions. OSCE countries treat all initiatives proposed by Kazakhstan carefully. The Finnish chairman of the OSCE in 2008, Alexander Stubb, praised Kazakh representatives work in the economic and environmental sphere and Kazakhstans efforts in reforming the political system. The countrys Path to Europe programme does not just aim to expand political and economic cooperation and attract investment and technologies, but also raises Kazakhstans relations with EU countries to the level of strategic partnership. It considers the security of OSCE comprehensively and it is capable of creating a single Eurasian security system, one which is adequate to global challenges and threats, inviting NATO, the CSTO, the CICA, the SCO and the ASEAN to cooperate. OSCEs cooperation partners are: in Asia South Korea, Thailand and Japan; and in the Mediterranean Algeria, Egypt, Israel, Jordan, Morocco and Tunisia. The OSCE has the potential to prevent and solve interethnic and religious crises, which will help overcome a clash of civilisations. The Charter for European Security, adopted at the Istanbul summit in 1999, gave an impetus to close cooperation with partners and there is now the need to amend this charter and create a common Eurasian security system. From 2003 the main priorities of chairmanship were to reform the OSCE, solve regional conicts, ght terrorism and drug trafcking, help democratic processes, counter human trafcking and promote tolerance and freedom of religion. At an OSCE meeting on cultural, religious and racial tolerance in 2006, Kazakh President Nursultan Nazarbayev set clear goals for Kazakhstans chairmanship: - taking into account the situation in Central Asia, Kazakhstan is ready to act as a regional guarantor, ensuring genuine and longterm security;
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- Kazakhstan, with its positive experience of interethnic and religious accord, aims to democratise its political system and as an active member of the OSCE intends to strengthen the organisation, taking into account the interests of all member states [10]. On 30 April 2007 in Vienna the former foreign minister, Marat Tazhin, presented Kazakhstans vision on the development of the OSCE [11]. In the situation of global changes and fast global processes the priority objective of increasing the efciency of the OSCE could be solved through the creation of a genuine platform for dialogue that will unite the Euro-Atlantic and Eurasian spaces. In 2007 Kazakhstan adopted political changes, amended its constitution to increase the role of political parties, held an election to parliaments Mazhilis, continued reforms in the judicial and local self-government spheres and started building an efcient model of cooperation between the government and civil society. In 2008 amendments were made to the Kazakh Laws On Political Parties, On Elections and On the Media. At an OSCE Parliamentary Assembly winter session, Kazakh Senate Speaker Kasymzhomart Tokayev detailed Kazakhstans priorities during its OSCE chairmanship in 2010, describing them as clear and irreversible: - Kazakhstan aims to increase Central Asias signicance in the OSCE. The aim is to deepen common values in this part of the world. Kazakhstan aims to make its contribution to ensuring security and stability in Eurasia; - Kazakhstan has strong experience in heading regional organisations, like the CIS, the SCO and the CICA. Kazakhstans chairmanship of the OSCE opens up new possibilities for establishing constructive cooperation between various regional organisations; - as OSCE chairman Kazakhstan intends to boost the role of the organisation as a unique platform for a dialogue between Europe and Asia [12]. Thus, during its chairmanship Kazakhstan will focus the organisations activities on maintaining stability in Central Asia and, as a consequence, strengthening stability in the entire space of the OSCE. The country also plans to take urgent measures to full socioeconomic
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programmes in Afghanistan; strengthen economic relations between Central Asian countries; develop transport and transit routes in Central Asia; and assist the rational use of water and energy resources in the region. Kazakhstan is also ready to share its experience of interethnic and religious accord. It is precisely these spheres, that are at the core of the OSCEs activities, that need a new vision. Kazakhstans chairmanship of the OSCE conrms the main principle of the organisation the equality of all its members and their interest in sustainable development.

3.4. Kazakhstan and Russia For numerous, economic, political, ethnic, language, demographic, religious and geographical reasons, Kazakhstan and Russia are extremely intertwined states. Their common border, which is the worlds longest land border, plays an important role in this. That over a million ethnic Kazakhs live in Russia and over 4 million ethnic Russian live in Kazakhstan is of particular signicance to the development of good-neighbourly relations. This is why Kazakhstan and Russian cannot help but be interested in political, trade and economic, cultural and humanitarian and military and technical cooperation. The legislative basis for Kazakh-Russian relations is the Treaty on Friendship, Cooperation and Mutual Assistance, signed by Kazakhstan and Russia on 25 May 1992. The treaty establishes that Kazakhstan and Russia, starting from the base of the historically developed close relations between the two states, will build their friendly relations on the principles of mutual respect for state sovereignty, territorial integrity and the inviolability of the existing borders. The treatys provisions on the peaceful settlement of disputes and the non-application of force or the threat of force, including economic and other pressure, equality and noninterference in internal affairs, human rights and fundamental liberties, and the voluntary observance of obligations is particularly important [13, pp 300-311]. The logical element of the development of bilateral documents in the political, economic and cultural and humanitarian spheres became the Declaration on Eternal Friendship and Allied Relations, signed on 6 July 1998. This declaration is aimed at the 21st century context. Kazakh-Russian relations were boosted by the election of Vladimir Putin as president of Russia. A new blueprint for Russias foreign policy, adopted at President Putins initiative on 28 June 2000, paid particular attention to the development of good-neighbourly relations and strategic partnerships with CIS countries. The quick pace of Kazakh-Russian relations was continued by the current Russian president, Dmitry Medvedev, who paid his rst
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foreign visit to Kazakhstan on 22-23 May 2008. During the visit the heads of the two countries signed a joint statement and intergovernmental agreements on cooperation in the space sphere and on the GLONASS satellite navigation system. President Medvedev paid his second visit to Kazakhstan on 5-6 July 2008 and took part in the celebrations of the 10th anniversary of the Kazakh capital, Astana. On 22 September 2008, Dmitry Medvedev paid another visit to Kazakhstan to take part in the fth Forum of Heads of Border Regions of Kazakhstan and Russia entitled The Development of Border Interregional Cooperation in the Sphere of High Technology. The presidents held talks on bilateral cooperation in the fuel and energy, transport and cultural and humanitarian spheres and discussed the problems with ensuring national security and countering modern threats and challenges at the forum. President Medvedevs fourth visit to Kazakhstan took place on 19-21 December 1998. An informal summit of the heads of state of Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Turkmenistan was held in the settlement of Burabai. This meeting discussed breakthrough projects to boost the efciency of cooperation between the regional organisations of the EAEC and the CSTO that were endorsed at these organisations summit in Moscow on 4 February 2009. In international relations, this level of intensity of high-level contact is quite extraordinary. Describing the state of bilateral relations at the Russian Federal Assemblys State Duma on 5 April 2005, Kazakh President Nursultan Nazarbayev said: Despite the well-known formula of eternal friends and eternal interests, Kazakhstan and Russia are countries that are destined to be eternal friends through their histories. [14, p 204] This view is shared by Russian President Medvedev, who said at the presentation of credentials by the Kazakh ambassador to Russia on 27 February 2009, that Russia highly values its friendship with our strategic ally, Kazakhstan, [and] from year to year our partnership is reaching a larger scale and is bolstered by major projects [15].
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The effectiveness of bilateral cooperation is shown by a growth in trade between Kazakhstan and Russia that is greater than Russias trade with all other countries in the region put together. In 2008, bilateral trade reached $20bn (against $4.6bn in 2001) and it grows by an average of 30% per year. Kazakhstan accounts for 15% of Russias total trade with CIS countries, while Russia has 24.7% of Kazakhstans foreign trade. There are over 1,600 enterprises with the involvement of Russian capital in Kazakhstan [16]. Cooperation between the border regions of the two countries has good prospects. The sixth forum of interregional cooperation was held in Orenburg in 2009 and it has given a new impetus to interaction between the border regions of the two countries. Kazakhstan and Russia have agreed to create a joint venture to process gas from Kazakhstans Karachaganak gas condensate eld at the Orenburg Gas Processing Plant. This agreement was ratied by the Kazakh parliament Senate in January 2008 and by the Russian State Duma in July 2008. Both countries are working on the expansion of the Caspian Pipeline Consortium pipeline (which Kazakhstan owns a 19% stake in) and the Atyrau-Samara oil pipeline. Kazakhstan has pledged to supply 17 million tonnes of oil for the Burgas-Alexandroupolis pipeline, and, it is for this reason that Kazakhstan is interested in acquiring a stake in the project. The establishment of three joint ventures for extracting and enriching uranium and designing nuclear power reactors of small and average capacity is of particular importance. As part of the joint projects, Kazakhstan is running its own space programme. Cooperation with Russia will enable Kazakhstan, which is home to the Baikonur space launching site, to enter the global market of satellite launching services and create its own technological basis for production. The construction of the Caspian gas pipeline from Turkmenistan to Russia via Kazakhstan and a nuclear power station in Aktau and the boosting of freight transits between western Europe and western China are now a priority.
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Cooperation between Kazakhstan and Russia on the development of roads linking western Europe and western China along the St Petersburg-Kazan-Orenburg-Aktobe-Almaty-Khorgos-China route is of strategic signicance. Out of Russias 27 regions bordering CIS countries, 12 border Kazakhstans seven regions along the 7,591-km-long border. This necessitates efcient counteraction to real threats and challenges around Kazakhstan, which is a sort of outpost of Russia and the EU. Continuing attempts by international terrorist organisations, for example the banned Hizb-ut Tahrir Islamic party, to create combat cells in Kazakhstan and Russia prompts active counteraction to terrorism and extremism, including as part of cooperation with Russian intelligence services. Kazakh and Russian intelligence services are actively cooperating in ghting the drug trafc from Afghanistan to Russia and Europe and creating a drug-free belt around Afghanistan. The scale of the drug threat is proven by the fact that the Kazakh law-enforcement agencies seized 28.9 tonnes of drugs (including 1,693 kg of heroin) in 2008 alone. Illegal migration also presents a serious problem for Kazakhstan and Russia. After the break-up of the Soviet Union, migration processes sped up in Central Asia, like elsewhere in the former Soviet space, because of the sharp deterioration of the socioeconomic situation in all the newly independent states and a rise in interethnic and inter-religious tension, as well as porous borders. Since obtaining independence in 1991, the economic and political development of former Soviet countries has been different. As a result of regional migration, Russia and Kazakhstan are recipient countries, while Kyrgyzstan, Tajikistan and Uzbekistan are source countries. Kazakhstan and Russia have now increased cooperation to develop Kazakhstans navy in the Caspian Sea. In particular, Russia agreed to hand over battleships and train crews, as well as build navy infrastructure on the Caspian [17, p 94]. The countries interest in military cooperation was shown by the rst Kazakh-Russian Interaction-2008 military exercises attended by the Kazakh and Russian ministers of defence in Almaty Oblast
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on 3-11 July 2008. The second exercises were held in Russias Chelyabinsk Oblast in September. As part of agreements signed by the two countries Ministries of Defence, joint war games will be held regularly between 2009 and 2011. Among the advantages of Kazakh-Russian relations is undoubtedly the legal delineation of the 7,591-km-long state border between the two countries. Kazakhstan has, by the way, also solved territorial and border issues with all of its neighbours China (1,740 km), Uzbekistan (2,350 km), Kyrgyzstan (1,050 km) and Turkmenistan (400 km). One of the main priorities in bilateral relations is cooperation in tapping the natural resources in the Caspian Sea. Kazakhstan was the rst Caspian-littoral country to manage to settle all conicts with Russia, above all, on the issue of the status and division of the sea oor. The Kazakh-Russian statement, signed in January 1998, stipulated a provision that a consensus should be achieved based on the fair division of the Caspian Sea oor while the common use of the water surface, including ensuring free navigation and coordinated rules for shery and environmental protection, should be preserved. Talks on dening the legal status of the Caspian Sea are still under way. Kazakhstans position on this issue is clear and denitive. President Nazarbayev told a news conference in Baku on 24 May 2005 that there was the understanding between Kazakhstan, Russia and Azerbaijan regarding the median line of the sea and its delimitation. Kazakhstan is interested in turning the Caspian Sea into a sea of friendship and mutually benecial cooperation [18]. Russian-Kazakh relations are developing not just in the bilateral format, but also multilaterally within the CIS, the EAEC, the CSTO, the SCO and the CACO. Kazakhstan and Russia are cooperating most closely within the Eurasian Economic Community (one of the founding members is Kazakhstan). The community aims at economic integration with the creation of a free trade zone and a customs union. In the socio-humanitarian sphere the country plans to conduct joint research on the priority aspects of science and technology and harmonise the national systems of education, science and culture.
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At the summit of the heads of EAEC member states in Dushanbe on 6 October 2007, the leaders of Belarus, Kazakhstan and Russia signed documents to set up a single customs zone and a Customs Union. The legislative basis of the Customs Union is expected to be nalised in 2010. Particular attention has been given to Kazakh-Russian cooperation within the Shanghai Cooperation Organisation, which was established in 1996. The member states of the organisation are China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Uzbekistan. Bilateral relations within the SCO include a wide range of interaction in the economic, military and political and humanitarian spheres. Attention is mainly focused on solving problems of ensuring security, peace and stability in the SCO member states and increasing the organisations role in international efforts in nuclear non-proliferation, the ght against terrorism and crossborder crime. The energy sphere is a promising aspect of Kazakh-Russian cooperation within the SCO. Cultural and humanitarian ties are very intensive between Kazakhstan and Russia. Sufce it to say that the Year of Russia in Kazakhstan and the Year of Kazakhstan in Russia were held in 2004 and 2005 respectively. A monument to Kazakh great poet Abai was opened in Moscow in 2006. Branches of eight Russian universities, including the Lomonosov Moscow State University, operate in Kazakhstan. As a result, despite the global nancial crisis, relations between Kazakhstan and Russia in all main aspects the economic, political and cultural and humanitarian spheres are developing well. The Plan of the Joint Actions of Kazakhstan and Russia for 2009-2010, signed by the two heads of state, has particular signicance for this process. Another synchronisation of watches on the main issues of bilateral relations took place at a meeting of the Russian and Kazakh ministers of foreign affairs in Moscow on 14 March 2009. This meeting praised bilateral cooperation in all the spheres and expressed the hope for close interaction between the brotherly peoples of Kazakhstan and Russia both bilaterally and on the international stage.
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The ministers stressed the need to expand cooperation in boosting economic security, countering international terrorism, drug trafcking and organised crime and dealing with the consequences of natural disasters within the CIS, the CSTO and the EAEC. Ahead of Kazakhstans chairmanship of the OSCE in 2010, it was stressed that Russia will fully support Kazakhstan in this important mission [19].

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3.5. Kazakhstan and China Developing relations with China both bilaterally and multilaterally occupies an important place in Kazakhstans foreign policy strategy. Ancient historical ties, geographical closeness and common interests in the spheres of security and economic cooperation political meant that interaction between Kazakhstan and China was dened by the Kazakh leadership as priority. After Kazakhstan declared its independence both countries showed interest in building stable and good-neighbourly relations at a new level. As early as on 3 January 1992 the countries established diplomatic relations. The subsequent ofcial visit by Kazakh President Nursultan Nazarbayev to China in October 1993 started regular meetings between the two countries at the highest level. One of the rst agreements that dened the principles of interaction between the two countries was the Joint Declaration on the Foundations of Friendly Relations between the Republic of Kazakhstan and the Peoples Republic of China which was signed during President Nazarbayevs meeting with President Jiang Zemin in Beijing in 1993. Based on this document both sides immediately started solving the problems inherited from Soviet-Chinese relations. During the several years that followed one of delicate topics of bilateral relations regarding the delimitation of the state border had been discussed. As a result of signing several agreements (in Shanghai in 1996, Moscow in 1997 and Almaty in 1998) within the Shanghai-Five organisation, border problems were mostly solved and the delimitation and demarcation of all sectors of the Kazakh-Chinese border have now been completed. Remarkably, Kazakhstan was one of the rst in Central Asia to solve this type of important issue in bilateral relations. Mutual interest in the two countries adherence to the principle of mutually benecial cooperation, non-interference in one anothers internal affairs and the steady development of bilateral relations is proven by the fact that the positions of Kazakhstan and China on many bilateral and multilateral issues coincide. In particular, as a result
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of insistent actions by Kazakh diplomats on nuclear issues and our countrys status as nuclear-free power, China offered assurances of the non-use of nuclear weapons to Kazakhstan in February 1995. Beijing irreversibly regards the preservation of stability and order on the countrys borders and its domestic stability as a very important aspect of the development of cooperation with Kazakhstan [20, p 89]. At talks the countries also agreed to jointly use and protect water resources of the crossborder Ili and Irtysh rivers. Following the adoption of a joint declaration by the countrys leaders during Chinese President Jiang Zemins visit to Kazakhstan in 1996, Kazakh-Chinese relations rose to a new level of strategic partnership. Jiang Zemin stressed that not only did friendship and mutually benecial cooperation between Kazakhstan and China correspond to the fundamental interests of the two countries peoples, but also beneted peace, stability and development in Asia and the whole world [20, p 126]. One of the key moments in cooperation between the two countries was the adoption of the Joint Declaration between the Republic of Kazakhstan and the Peoples Republic of China on the Further Development of All-Round Cooperation in the 21st Century during President Nazarbayevs ofcial visit to China in 1999. Another important step was the common ground between both countries positions on security problems which was reected in their activities within the SCO. As political ties strengthens steadily, so does bilateral trade and economic cooperation. China has now become one of Kazakhstans most promising trade and economic partners. Economic relations are developing extremely rapidly between the two countries. For example, bilateral trade between Kazakhstan and China was $368m in 1992, whereas it reached $500m in 1997, $1bn in 1998 and about $13.8bn in 2007. China is Kazakhstans second largest trade partner behind Russia [21]. Bilaterally and multilaterally, Kazakhstan and China are conducting many strategic projects in several spheres such as energy, telecommunications, transport and agriculture. At the same time, Astana and Beijing are putting effort into major projects in the non-extractive
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sectors of the economy, gradually increasing the level of products with high value added and high technologies in bilateral trade. An important aspect of bilateral economic trade is the energy sphere. Chinas economy is growing with unprecedented paces and is encountering acute shortages of hydrocarbons. As a consequence, the intensication of foreign energy ties with energy supplier-countries is becoming increasingly important for Beijing. In this respect Kazakhstan, as one of the major exporters of mineral resources is of particular interest to China. Cooperation in the oil and gas sector is developing rapidly between China and Kazakhstan. Chinese companies active involvement in the Kazakh oil and gas sector started with China National Petroleum Corporations (CNPC) purchase of a 60% stake in Kazakhstans Aktobemunaigas oil and gas company in 1997. In 2003, under bilateral intergovernmental agreements in the oil and gas sector signed in 1997, enterprises in the two countries started the implementation of a major project to build an oil pipeline from Kazakhstan and China. The rst phase of the Atyrau-Kenkiyak oil pipeline has already been completed, and the Atasu-Alashankou oil pipeline was completed and commissioned in 2005, and it shipped about 6 million of oil to China in 2008 [22]. The completion of the Kenkiyak-Kumkol and Kumkol-Atasu pipelines is expected to link the earlier built AtyrauKenkiyak and Atasu-Alashankou pipelines to unite all these Kazakh pipelines into a single system and integrate this with Chinas oil pipeline networks. This project was carried out by Kazakhstans KazMunaiGas national oil and gas company and the CNPC. The completion of the project at the end of 2009 has made this oil pipeline an important tool in diversifying routes to transport energy resources to global markets. Over the course of Kazakh-Chinese economic cooperation, with the steady growth in trade and freight shipment, the importance of transport links has been growing constantly. Kazakhstan and China have huge, untapped opportunities to cooperate in the transit transport sphere.
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As a result, the Kazakh government is taking active measures to expand the countrys transit potential. Kazakhstan is an active member of the UN ESCATO, SPEC and TRACECA. In order to boost transit of freight Kazakhstan has initiated the construction of the Western Europe-Western China transport corridor. To this end, in early 2008 Kazakhstan and China signed an agreement on opening four cargo routes: - Urumqi-the Khorgos border post-Karaganda (Kazakhstan); - Urumqi-the Jimunai border post-Karaganda; - Urumqi-the Baketu border post-Karaganda; - Urumqi-the Alashankou border post-Karaganda. It was also decided to open three passenger routes: - Urumqi-the Jimunai border post-Karaganda; - Urumqi-the Baketu border post-Karaganda; - Urumqi-the Alashankou border post-Karaganda. Generally, the current relations between Kazakhstan and China can be described as consistent and dynamic. The heads of the two countries hold regular meetings and our countries positions on many international and regional problems are regarded as similar. It is worth noting the new, fourth, generation of Chinese leaders, led by President Hu Jintao and Premier Wen Jiabao who came to power in autumn 2002, demonstrated consistency in Chinese policy towards Kazakhstan [23, p 221]. Hu Jintao reiterated that Chinese policy would adhere to the established course of the entire spectre of bilateral relations between Kazakhstan and China. In turn, President Nazarbayev stressed in his 2004 state-of-the-nation address that Beijing was one of the chief political and economic partners of Astana and that the continuing strengthening of relations with China served as the clear and important course of Kazakhstans foreign policy and that the development of good-neighbourly and friendly relations between Beijing and Astana were Kazakhstans foreign policy priorities [24]. In August 2007 ahead of the 15th anniversary of the establishment of diplomatic relations between Kazakhstan and China, President Nazarbayev invited President Hu Jintao to pay an ofcial visit to Astana. During the visit he met the countrys leaders and signed a joint statement.
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In addition to meetings between the heads of state, prime ministers and ministers hold meetings on a bilateral and multilateral basis. On 31 October 2008, important agreements were signed during Chinese Premier Wen Jiabaos visit to Kazakhstan, including an agreement on cooperation in the nuclear energy sphere between the Kazatomprom national nuclear company and China National Nuclear Corporation; in the gas extracting and transporting sphere between KazMunaiGas and CNPC; in the transport sphere between the Kazakhstan Temir Zholy national railway company and The Ministry of Railways of the Peoples Republic of China. Bilateral agreements, signed in the nuclear energy sphere, opened up new opportunities for Kazakhstan, making it possible to switch from exporting raw materials to taking part in the joint construction of nuclear power plants. Beijing, in turn, received direct access to raw materials to develop its nuclear power engineering. Cooperation between Kazakhstan and China is not limited to the bilateral format: the countries also maintain relations within international organisations: the UN, the SCO and the CICA. China attaches a particular signicance and offers all-round support to the Kazakh presidents initiative the CICA and takes an active part in all meetings of this organisation. As a result, the backbone of cooperation between Kazakhstan and China is the development of multilateral and long-term cooperation. At present, along with successful political and socioeconomic relations, cultural ties are also developing fruitfully. In the security sphere, Kazakhstan and China are maintaining a wide consensus and interaction, both countries making signicant contributions to maintaining peace and stability.

3.6. Kazakhstans Cooperation with Central Asian Countries Objectively speaking, Central Asian countries play one of the key positions in Kazakhstans foreign policy strategy. Even though in terms of trade they do not play the roles played by Russia, China or the USA, they could potentially occupy more signicant positions. This is conditioned by an obvious factor of geographical proximity, which means interdependence in the transport and communications and water and energy spheres, which results in the similarity of a whole range of foreign policy and foreign economic problems and tasks. Integration projects that emerged in Central Asia between 1990 and 2000 had failed to realise for various reasons. In particular, one of the obvious reasons was linked to the frequently changing priorities within regional initiatives. At the same time, Kazakhstan remained a supporter of and active player in various regional organisations. Speaking in favour of boosting Central Asian cooperation, in 2005 Astana made yet another proposal to its southern neighbours to deal with issues of regional integration and oated its idea of the creation of a Union of Central Asian States. It was suggested that the Treaty of Eternal Friendship, which was signed by Kazakhstan, Kyrgyzstan and Uzbekistan should lay the foundation of this initiative. Astana invited Central Asian countries to build close economic integration and move towards a common market and a common currency in the future. On 1-2 September 2006 at an informal summit in Astana, the leaders of Kazakhstan, Uzbekistan, Kyrgyzstan and Tajikistan again discussed regional projects that had already been considered in multilateral forums. Kazakhstan expressed its desire to become a regional trade, economic and investment locomotive. Astanas key package of proposals was to set up sectoral consortia such as water and energy, transport and food consortia, special border zones and joint investment structures.
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Drafting coordinated approaches to regional water and energy problems is a topical issue. Kazakhstan, along with Turkmenistan and Uzbekistan, is among the countries that face acute shortages of fresh water, the main reserves of which are in Kyrgyzstan and Tajikistan. This factor is becoming increasingly considerable in the expansion of regional cooperation. Despite all Central Asian countries agreeing on the creation of an expert group to draft a formula for using water resources that is acceptable to everyone, regular meetings both at the highest and the ministerial levels have not led to the signing of a comprehensible agreement that would be accepted by everyone. Generally, having received support for the idea of a possible interstate association from Bishkek and Dushanbe, Astana continued the negotiation process with Tashkent. In 2006 Uzbekistan boosted cooperation with CIS countries and joined the EAEC and the CSTO, which was particularly welcomed by Tajikistan and Kyrgyzstan. Central Asian countries expected signicant political and economic results from involvement in the EAEC, in particular, from links with Uzbekistan, but Tashkent did not become a fully-edged member of this organisation and nally stopped its membership of this organisation in November 2008. Tashkents position impacts the efciency of major regional projects. Uzbekistan is known to have problems with all its neighbours. Relations with Kyrgyzstan and Tajikistan are complicated by the situation on the borders, visa regime, migration issues, transit and transport issues, water and energy and other problems. All this causes tension in relations between regional countries and demands constant attention. The key issues of Uzbekistans relations with its neighbours remain the same. They became subjects of talks and were put on the agenda of summits, but there has not been any signicant movement. It is very likely that Uzbekistan will not be able to switch to a more intensive pattern of relations with its neighbours because of the current structure of its economy and also for political reasons. This was proven by Uzbek President Islam Karimovs visit to Kazakhstan on 22-23 April 2008 when the Uzbek leader ofcially refused to back the Kazakh initiative of uniting into a Central Asian union.
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Cooperation between Kazakhstan and Kyrgyzstan is developing relatively rapidly, although there are a number of bilateral economic problems between them. In particular, transit issues, water and energy problems and the regulation of labour migration are always topical for Kyrgyzstan. In turn, Kazakhstan always raises the problem of its property in Kyrgyzstan and debts accumulated by Kyrgyz companies. Generally, these problems can be solved and do not mar the relatively close relations between the countries. In 2007-2009, Kazakhstan and Kyrgyzstan took certain political and economic steps to boost ties. Astana, in implementing its initiative to create the Union of Central Asian States, proposed to start gradually moving towards this idea on a bilateral basis at the initial stages. Kazakh business people and managers of national companies have started actively cooperating with Kyrgyz colleagues to expand mutually benecial trade and economic ties. On 26 April 2007 during Kazakh President Nursultan Nazarbayevs visit to Kyrgyzstan an agreement on the creation of the Interstate Council, headed by the heads of countries, was signed. The council is responsible for a whole range of bilateral relations political, economic, cultural and security issues. Kyrgyz President Kurmanbek Bakiyev supported Astanas integration initiatives which will help regional economic cooperation. In addition, the Council of Ministers of Foreign Affairs has been set up to successfully coordinate the activities of the Interstate Council. An important indicator of the development of bilateral relations is Kazakh companies and the capitals involvement in the construction of the Kambarata hydropower stations and a number of other economic projects. During the visit the countries also established the Kyrgyz-Kazakh Investment Fund with charter capital of $100m, which should boost bilateral trade and economic relations. President Bakiyevs ofcial visit to Kazakhstan on 17-18 April 2008 strengthened these trends and made it possible to specify a number of the above-mentioned joint investment projects. Kazakh-Tajik relations are also developing relatively successfully. Astana is interested in investing in building hydropower facilities in
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Tajikistan and in its agriculture and metallurgy. Kazakh investment companies and funds have received ofcial support from the Tajik government and are ready to invest funds in socioeconomic projects in Tajikistan on a mutually benecial basis. The existing problems in the transit and migration spheres can be solved and this was stressed at a meeting of the two countries heads of government in Astana on 23 August 2007. The most important aspect of the climate in the region is the issue of building and operating hydrotechnical facilities and dams in the upper reaches of major rivers. The upstream countries Kyrgyzstan and Tajikistan regard water as their national strategic resource and are trying to shift this issue onto the economic plane, whereas the downstream countries Kazakhstan, Turkmenistan and Uzbekistan are convinced that this approach is articial and express their concern over the stability of the water ow. This problem has acquired particular acuteness in relations between Tashkent and Dushanbe. Kazakhstan treats problems faced by Tajikistan with understanding and expresses is readiness to full projects to build hydropower stations but it also aims to seek out understanding on issues with Uzbekistan, which is, unconditionally, important for the success of the implementation of these initiatives. From the point of the fullment of Kazakhstans policy towards Central Asia, President Nazarbayevs visit to Tajikistan on 12-13 September 2007 was very important. Tajik President Emomali Rakhmon reservedly supported the Kazakh initiative to set up the Union of Central Asian States, but he particularly welcomed Astanas nancial and economic efforts to boost bilateral and regional cooperation. In a similar way as it took place in Kyrgyzstan, the visit resulted in the establishment of the Tajik-Kazakh Investment Fund with charter capital of $100m. The Tajik leadership has demonstrated interest in expanding regional cooperation. In particular, during his visit to Kazakhstan on 12-13 May 2008, President Rakhmon positively reacted to the Kazakh initiative on regional association and signed a memorandum
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on setting up the Interstate Coordination Council of Tajikistan and Kazakhstan and the Council of the Ministers of Foreign Affairs of the two countries. As a result, Astana invited its Central Asian partners to consistently move towards close regional cooperation on a pragmatic basis taking into account the specics of each country. In this context this strategy enjoys support from Bishkek and Dushanbe, while ofcial Tashkent demonstratively rejected the Kazakh initiative. That Ashgabat has become active also has had an impact on cooperation between Central Asian countries. Turkmen President Gurbanguly Berdymukhamedov launched a more intensive dialogue with his neighbours. The new Turkmen leaders foreign policy debut traditionally started with an ofcial visit to Russia and later to regional neighbours. In this context, relations between Kazakhstan and Turkmenistan became active between 2007 and 2009 the Kazakh and Turkmen leaders held an unprecedented number of meetings as part of bilateral and multilateral cooperation. The intensication of relations with Kazakhstan has both economic and political grounds. Obviously, the Turkmen president pays particular attention to the development model and experience of Kazakhstan. Kazakh-Turkmen relations have been boosted as a result of mutual economic interests and their interest in expanding the geography of transport routes. Intergovernmental consultations prepared work to implement agreements achieved at a meeting of the Turkmen, Russian and Kazakh presidents in Turkmenbashi on 12 May 2007. Kazakh President Nursultan Nazarbayevs ofcial visit to Ashgabat on 11-12 September 2007 made it possible to detail the Caspian gas pipeline project, the North-South transport corridor and, as part of this corridor, the construction of a railway line with the involvement of Russia and Iran. An important accord was the possibility of investing Kazakh capital in the Turkmen economy, including in the energy sphere. Clearly, both countries have shown interest in harmonising their energy policies, above all in relation to exporting gas to foreign markets. With a
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pragmatic approach there is room to expand cooperation to include neighbouring Uzbekistan. All this shows that relations between Central Asian countries have now changed signicantly. Regional ties which had remained stagnant for a long time became active. Relations between Kazakhstan, Kyrgyzstan and Tajikistan have always been relatively intensive both bilaterally and multilaterally, whereas cooperation with Uzbekistan is complicated with a range of political and economic problems. Meanwhile, Turkmenistan has been avoiding multilateral relations, taking part in few targeted international projects quite pragmatically. The regional countries relations with leading external players and relations between Kazakhstan and Uzbekistan remain key aspects of the climate in the region. The solution of border, passport and visa control and trade and economic problems is still an issue for Central Asian countries. The mutually acceptable distribution of water resources is a longrunning problem and transit and transport and migration problems also always top the agenda of bilateral and multilateral meetings. Kazakhstan has announced its desire to develop closer cooperation and intends to strengthen positive trends both politically (the establishment of interstate countries, bilateral and multilateral dialogue) and economically (investment in energy, transport and so on). These efforts are not prompted by the ambitions of the leader, but the state of bilateral and multilateral relations between the regional countries. This strategy is based on the objective necessity to ensure stability and security in the region and create favourable foreign economic and foreign political medium.

3.7. Kazakhstan and the USA The United States of America is one of the global actors that can exert signicant inuence on the development of political and economic processes. This fact explains why one of Kazakhstans priority foreign policy directions is the development of relations with the USA. Kazakhstan is actively developing cooperation with the USA in practically all spheres at the moment. America was one of the rst countries to ofcially recognise our countrys independence (on 25 October 1991) and establish diplomatic relations with Kazakhstan. Another important event in the development of bilateral relations was that Kazakhstan voluntarily gave up of nuclear weapons. This step has conrmed Kazakhstans adherence to peaceful development and signicantly increased the level of mutual trust between the two countries. Since Kazakhstans independence, President Nursultan Nazarbayev has paid six ofcial visits to the USA, which have resulted in a number of bilateral agreements which laid the foundation for the development of the further fruitful cooperation between the two countries. In particular, in May 1992, during President Nazarbayevs visit to the USA, the Agreement on Trade Relations, the Treaty between the United States of America and the Republic of Kazakhstan Concerning the Reciprocal Encouragement and Protection of Investment and the joint declaration on the adoption of a treaty on the avoidance of double taxation were signed [25, p 79]. In February 1994, Kazakhstan and the USA signed the Charter on Democratic Partnership during another visit by the Kazakh president to the USA. The 11 September 2001 events triggered a new stage in KazakhUS relations. Kazakhstan condemned the terrorist attacks in Washington and New York and backed the US anti-terrorist operation in Afghanistan [26]. Kazakhstans support for the US counterterrorist operations in Afghanistan and Iraq was appreciated by the Americans. In December
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2001, at a meeting in Washington President Nazarbayev and US President George Bush adopted a joint statement on Kazakh-US relations which reiterated mutual adherence to strengthening the long-term strategic partnership between Kazakhstan and the USA. At this meeting the Kazakh leader proposed the implementation of the Houston initiative which envisaged exchanging experience and establishing cooperation between the two countries in the sphere of entrepreneurship. As a result, on 3 October 2002 the Houston initiative was launched and this was announced by the then Kazakh minister of foreign affairs, Kasymzhomart Tokayev, and the then US ambassador to Kazakhstan, Larry Napper. Mr Tokayev said that the Houston initiative was a partnership between Kazakhstan and the USA that would bring the two countries private sectors closer and improve the competitiveness of Kazakhstans businesses, jointly producing and selling goods on global markets [27]. At the rst stage of the implementation of this initiative, the European Bank for Reconstruction and Development (EBRD) allocated $300m to Kazakh nancial institutions as technical assistance. The second phase of the Houston initiative provided funds for social programmes in Kazakhstan. On 30 January 2004, Mr Tokayev met the former coordinator for US assistance to Europe and Eurasia, Carlos Pasqual and noted the effectiveness of bilateral cooperation in the implementation of the rst phase of the Houston initiative which aimed to bring the two countries business circles together, conduct various joint projects and to develop the middle class in Kazakhstan. The implementation of the Houston initiative represents the main aspect of Kazakh-US economic cooperation because it expands government support to the development of small and medium-sized businesses in Kazakhstan, which, in turn, increases the socioeconomic indicators of the country and improves the general level of the wellbeing of the population. One of the most important events to have inuenced the development of Kazakh-US relations was a visit by the former US secretary of state, Condoleezza Rice, to Astana in October 2005.
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At meetings with Kazakh ofcials, she supported the countrys efforts in economic development and said that America considered Kazakhstan as a driver of economic growth in Central Asia. In May 2006, during an ofcial visit to Astana by the former US vice-president, Dick Cheney a memorandum on mutual understanding between the two governments was signed as part of the Kazakh-US economic development programme. The programmes budget now totals $40m over four years and includes the following components: nance and investment, the development of human capital, boosting entrepreneurship and competitiveness, improving the investment climate and global integration. The programme will be jointly funded by the US and Kazakh governments in future. The US contribution is expected to stand at $24.5m and that of Kazakhstan at $15.5m. In September 2006 President Nursultan Nazarbayev paid his sixth ofcial visit to Washington where he met US high-raking ofcials. In particular, President Nazarbayev met President George Bush, VicePresident Dick Cheney, the former secretary of commerce, Carlos Gutierrez, the former secretary of energy, Samuel Bodman, and the director of the CIA, Michael Hayden. This visit resulted in the adoption of a joint Kazakh-US statement in which Washington showed its support for Kazakhstans strategy to join the worlds 50 most competitive countries, its leadership in regional integration processes and its desire to joint the World Trade Organisation (WTO). The visit was very effective for Kazakhstan, as the level of trust between the USA and Kazakhstan has since increased. In March 2007, the US House Committee on Foreign Affairs discussed the prospects for the development of Kazakh-US cooperation with the then Kazakh ambassador to the USA, Kanat Saudabayev. The meeting paid particular attention to one of President Nazarbayevs state-of-the-nation addresses and noted the signicance of the further development of the strategic partnership between Kazakhstan and America. In particular, the chairman of the committees Subcommittee for Asia, the Pacic and the Global Environment, Eni Faleomavaega,
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noted that Kazakhstan had become a reliable partner in ghting terrorism and stressed its role in satisfying global energy needs as a country with huge energy resources. He said he was optimistic about bilateral cooperation [28]. In October 2008, the former US secretary of state, Condoleezza Rice, paid her second visit to Astana and held meetings with President Nazarbayev, Prime Minister Karim Masimov, and the former minister of foreign affairs, Marat Tazhin. During these meetings she discussed the state and prospects for bilateral relations and a wide range of international and regional issues. The parties focused on the normalisation of the situation in Afghanistan, the stabilisation of the situation in Iraq and the solution of the Caucasian conict. Generally, Kazakh-US relations are now developing rapidly. There is a steady growth trend in bilateral trade: it stood at $1.9bn in the rst ten months of 2008 (exports totalled $471.2m and imports $1,445m) against $1.3bn in the same period of 2006 and $681.1m in the rst ten months of 2004. This shows that bilateral trade has increased by over three times [29]. The United States is Kazakhstans major investor. The share of US direct investment in the Kazakh economy accounts for about 23.5% of total foreign direct investment. US investment in Kazakhstan has exceeded $15bn over the years of independence. About 400 US companies are operating in Kazakhstan [28]. These gures, undoubtedly, show the importance of the US factor in Kazakhstans future economic development. The USA is now backing the diversication of routes to export energy resources from Kazakhstan. For example, America supported the construction of the Western Kazakhstan-Western China oil pipeline and the connection of Kazakhstan to the Baku-Tbilisi-Ceyhan (BTC) oil pipeline. An agreement on Kazakhstans joining the BTC took place at a meeting between Kazakh President Nursultan Nazarbayev and Azerbaijani President Ilkham Aliyev on 16 June 2006. After the signing President Nazarbayev stressed that this project had opened a third route to transport oil from Kazakhstan, in addition to the Russian
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and Chinese routes, and that increasing the countrys oil output had become a very urgent matter. Cooperation in this sphere meets the interests of both Kazakhstan and the USA. Kazakhstans involvement in alternative regional projects relating to the export of energy resources to global markets opens up the possibility of entering new promising markets that have been prompted by heightened interest in Kazakh hydrocarbons from other major regional players such as India, Japan and other AsiaPacic powers. Kazakhstan and the USA now have very strong cooperation based on a rm legislative and contractual basis and interact in the sphere of ensuring security. In 2003, the two countries signed a ve-year plan of military cooperation. This document covers spheres of bilateral cooperation such as countering international terrorism, developing peacekeeping forces, strengthening Kazakhstans air defence forces, developing military infrastructure in the Caspian Sea and the Navy, establishing a military institute of foreign languages and so on. Between 30 January and 1 February 2008 scheduled bilateral consultations were held in Astana between the defence structures of Kazakhstan and the USA led by Kazakh Deputy Minister of Defence Lt-Gen Bolat Sembinov and Deputy Assistant Secretary of Defence Mitchell Shivers. As a result, in February 2008, a memorandum of understanding was signed by the Kazakh Ministry of Defence and the US Department of Defence regarding a ve-year plan of cooperation for 2008-2012. The signing of the second ve-year plan of military cooperation is a sign of the expansion of military and political cooperation between the two countries aimed at the implementation of the national plans for the transformation of Kazakhstans armed forces, the improvement of the countrys peacekeeping potential and the development of the national system of military education and training, as well as the supplies of modern samples of military and technical equipment and vehicles. In light of Kazakhstans increasing role as regional economic leader, the USA is increasingly interested in expanding cooperation
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with Kazakhstan in practically all spheres of relations. Key aspects of bilateral cooperation are joint projects in the spheres of energy, economic partnership and ensuring regional stability and ghting international terrorism. At the same time, Kazakhstan, which remains the most politically and socioeconomically stable country in the region, is an important geostrategic partner in Central Asia for the USA. In January 2009, at a meeting with US Ambassador to Kazakhstan Richard Hoagland, Speaker of the Kazakh parliaments Mazhilis Ural Mukhamedzhanov expressed the hope to preserve the continuity of the US foreign policy towards Central Asian countries after the election of Barack Obama as Americas president [30].

3.8. Kazakhstan and the EU Cooperation with the European Union is one the major aspects of Kazakhstans foreign policy. Prospects for and the need to develop these relations for Kazakhstan are determined by the EUs international role in the modern world. In addition, the EU is an important trade and economic partner for Kazakhstan and a major investor in its economy. Western European countries rich experience in legislative and scientic and technical development is also of particular interest to Kazakhstan. The chronology of Kazakhstans relations with the EU involves singling out several stages of bilateral cooperation. The initial phase (1992-1995) was characterised as the period of the establishment of ofcial political contacts and the formation of the contractual and legislative and institutional basis for interstate relations between the sides. The signicant milestones of bilateral interaction in that time were the signing of agreements and the exchange of plenipotentiary delegations between Kazakhstan and the EU*. The logical result of cooperation between Kazakhstan and the EU in this period was the signing of the Partnership and Cooperation Agreement in Brussels on 23 January 1995 during a scheduled meeting of the EU Foreign Affairs Council. This agreement was signed by President Nursultan Nazarbayev and the General Secretary of the EU Council, Alain Jupp [31]. It is worth noting that the Partnership and Cooperation Agreement became the primary bilateral document, aimed at developing political, economic and cultural links between Kazakhstan and the
* Kazakhstan and the EU established diplomatic relations on 2 February 1993. In December 1993 Kazakhstan opened its representation to the EU in Brussels. In November 1994 the European Commission opened its representation in Almaty and earlier, in April 1992, the Kazakh government and the European Commission signed a memorandum on funding, which became the foundation for the TACIS technical assistance programme for the CIS in Kazakhstan in solving the economic, political and social problems of the transitional period. As part of the technical assistance, the TEMPUS programme was launched in Kazakhstan in 1994 to provide assistance in the education and scientic research spheres. A number of Kazakh higher educational and scientic establishments took an active part in this programme. In December 1994 the Kazakh government signed the Final Act of the European Energy Charter, which aims to encourage industrial cooperation between the EU and other countries through offering legal guarantees in the spheres of investment, transit and trade. The treaty also covers energy efciency and nuclear security issues.

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EU. The agreement created the foundation for a constructive political dialogue and an open trade and investment regime between the parties and envisaged cooperation in 27 directions: from transport to education and from energy to ghting crime. The years that followed (1996-2000) were marked by the expansion and revitalisation of relations based on earlier achieved accords. The main stress in this period was put on cooperation in the oil and gas and energy spheres and the transport and telecommunications sector and mutual trade and investment were strengthened. At the same time, initiatives to create bilateral cooperation structures were developed in practice. In particular, on 29 April 1996, the Kazakh government set up a joint Kazakhstan-European Union cooperation committee. It should be noted that this committee has become an important political link in developing and maintaining a constructive partnership between Kazakhstan and the EU in the years that followed. Other joint institutional bodies, for example, the Cooperation Council and the Parliamentary Cooperation Committee, were also set up at a high level. In May 1997, an EU delegation on issues of justice and internal affairs paid a visit to Kazakhstan. With the aim of bringing closer, modifying and harmonising EU and Kazakh legislation, EU politicians proposed the creation of an advisory centre for strategic and legal issues in Kazakhstan. The same year the basic agreement on the European Energy Charter, signed three years earlier, came into force. For Kazakhstan this document was of extraordinary signicance: it guaranteed the inadmissibility of discrimination in the energy market and assisted Kazakhstans integration into the global energy community with the observation of national trade and economic interests. On 17-18 June 1998, a European Commission delegation visited Astana to discuss the political and organisational aspects of the implementation of the TACIS programme in Kazakhstan. In addition to the adoption of national indicative programmes and assistance programmes, the EU drafted interstate and regional programmes for partner countries such as INOGATE (assistance to Caspian-littoral countries in attracting investment in new pipelines), TRACECA
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(investment projects and assistance in developing a transport corridor between Europe and Central Asia), Eurocustoms (cooperation in the customs sphere) and the Eurostat (cooperation in the statistics sphere) [32]*. A landmark event in this period was the enforcement of the Partnership and Cooperation Agreement between the Republic of Kazakhstan and the European Union (1 July 1999), which completed the ofcial political formation of relations [33]. New aspects of mutually benecial cooperation became: the development of partner relations with European Space Agency enterprises for the creation and launch of a joint satellite and other projects in the hi-tech sphere. The rst step in this direction was the successful launch of the Cluster 2 satellite using a Russian booster from the Baikonur space launching site in March 2000. That cooperation in this sphere should be expanded is necessitated by Kazakhstans possible involvement in the Galileo satellite navigation system and the European framework programme for boosting competitiveness and developing innovations. An inter-parliamentary dialogue between members of the Kazakh parliament and the European parliament is developing successfully. On 23 May 2000 a group of members of the European parliament, led by the then rst deputy chairman of the Central Asia and Mongolia Delegation, Ioannis Koukiadis, visited Kazakhstan and discussed issues of cooperation between the parties with the heads of the Kazakh parliament and government and took part in the rst sitting of the Kazakhstan- European Union Parliamentary Cooperation Committee. This committee has so far held eight sittings and its activities help productive exchange of information and views on a wide range of issues of cooperation in the political, economic and social spheres between parliamentarians. Particular attention is being paid to programmes of EU technical assistance in the environmental protection and healthcare spheres. For example, Kazakhstan received nancial and technical assistance to
* Kazakhstan and the EU are also cooperating under other programmes: Copernicus; the Central Asia Drug Action Programme (CADAP) and the Border Management Programme for Central Asia (BOMCA)

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solve problems in the Aral Sea region and clear up the consequences of nuclear tests in the Semipalatinsk testing ground. Kazakh President Nursultan Nazarbayevs ofcial visits to EU bodies in Brussels in June 2000 and November 2002 gave a signicant impetus to the development and creation of favourable conditions for strengthening bilateral cooperation between Kazakhstan and the EU. During these visits, the Kazakh leader met the then president of the European Commission Romano Prodi, and the former secretary-general of the Council of the European Union and senior representative for the common foreign and security policy, Javier Solana [34]. The visits resulted in the signing of an agreement on amending the Kazakh-EU agreement on trade in textile products and the ratication of an agreement between the Kazakh government and the European Atomic Energy Community on cooperation in the sphere of controlled fusion. Since 2002, relations between Kazakhstan and the EU have entered a new level of cooperation. This period is regarded as the period of the active implementation of the fundamental provisions of the Partnership and Cooperation Agreement, accompanied by the EUs increasing interest in cooperation with Central Asian countries. The latest global events have signied interaction in new spheres. Joint efforts are being put into drafting new projects to assist Kazakhstan in solving the problems facing the countrys domestic development. In February 2002 the then head of the department for relations with Central Asia and the Caucasus of the European Commissions Directorate General for External Relations, Cornelius Wittebrood, held talks with the Kazakh government in Astana. He stressed that the EU considered Kazakhstan as an important economic partner and was ready to develop mutually benecial cooperation. During the talks accords were reached on the avoidance of double taxation, foreign labour exports and the inviolability of earlier signed contracts. In addition, issues of environmental protection and regional cooperation, strengthening border and customs services and Kazakhstans membership of the WTO were discussed. Cooperation in the investment sphere occupies a particular place in Kazakh-EU relations. The EU member states accounted for 40%
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of the total foreign direct investment in Kazakhstan in 2002. European investment was attracted mainly through the transfer of major industrial enterprises to foreign rms management and the creation of joint and subsidiary enterprises. According to statistics, there were 1,355 enterprises with the involvement of capital from EU countries in Kazakhstan as of January 2003, and leading countries were Belgium, the United Kingdom, Germany, Ireland, Italy, the Netherlands and France. European capital was mainly invested in the countrys extractive sector [35]. Cooperation is dynamically developing in the oil and gas and energy spheres. When considering the structure of Kazakh exports of mineral resources, it should be stressed that the EU accounts for the bulk of them. EU countries energy policies are based on using the existing oil pipelines that ship hydrocarbons to European oil reneries and becoming actively involved in extraction in the Caspian Sea shelf. Shell (the Netherlands), TotalFinaElf and Schlumberger (France), ENI and Agip (Italy), British Petroleum and Lasmo (UK), Repsol (Spain), Wintershall (Germany) and Statoil (Norway) are involved in oil and gas extraction in the Caspian and Central Asian region. In addition, Kazakh-EU cooperation in the oil sector is under way as part of the Baku-Tbilisi-Ceyhan and Odessa-Brody-Plock oil pipeline projects. During an ofcial visit to Kazakhstan on 15-16 March 2004 the EUs then External Relations Commissioner Chris Patten noted that cooperation in the energy sphere was a strategic aspect of the EUs policy in Central Asia. As a result, in November 2004 the Baku initiative resulted in a dialogue was launched between the EU and Black and Caspian-littoral countries to expand partnership in the energy sphere*.
* On 30 November 2006 as part of the Baku initiative EU, Black and Caspian-littoral countries and their neighbours held the second ministerial energy conference in Astana and adopted a package of important documents: a roadmap on specic projects; a conceptual note; and conclusions. Kazakhstans former Minister of Energy and Mineral Resources Baktykozha Izmukhambetov and the EUs former Commissioner for Energy Andris Piebalgs led their respective delegations. This initiative covers the following aspects of cooperation: harmonising energy markets based on the principles of the EU internal energy market taking into account peculiarities of partner countries; including energy security through exports/imports of energy resources, diversifying supplies, transit and demand for energy; supporting the sustainable development of the energy sphere, including boosting energy efciency of renewable sources of energy and managing demand; attracting investment in energy projects of common and regional interest.

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Since 2006 Kazakh-EU energy cooperation has strengthened signicantly. In order to revitalise energy projects the EUs former Commissioner for Energy Andris Piebalgs paid an ofcial visit to Kazakhstan in May 2006. In December 2006 Kazakhstan and the EU signed a memorandum on cooperation in the energy sphere. This document envisages two roadmaps on cooperation in strengthening energy security and industry, the implementation of which includes the regular exchange of information on energy issues, mutually benecial shipment of energy resources and the development of environmentally friendly technologies. A promising aspect in strengthening the Kazakh-EU energy dialogue is development cooperation in the nuclear energy sphere and the uranium industry. This cooperation resulted in the signing of a Kazakh-EU agreement on using nuclear energy for peaceful purposes on 5 December 2006. This document envisages improving cooperation in nuclear security and nuclear fusion through ensuring the sustainable structure of the development of trade in nuclear materials between the two sides. Another important sphere for cooperation that developed qualitatively during this period is cooperation in the sphere of trade in textile products. In April 2004 Kazakhstans then permanent representative in the European Communities, Konstantin Zhigalov and the then permanent representative of Ireland that chaired the EU, Anne Anderson, signed a Kazakh-EU intergovernmental agreement on trade in textile products, under which Kazakhstan received the opportunity to export over 150 textile items to the EU. Kazakh textile exports to EU countries (Belgium, the UK, Germany, Denmark and Italy) stood at $8.4m in 2004, while imports from the EU (the UK, Germany, Italy, France and the Netherlands) were $29.6m [35]. Generally, the structure of trade between Kazakhstan and the EU has not undergone signicant changes, and metals, hydrocarbons and minerals account for the bulk of Kazakh exports. Kazakhstans imports include electrotechnical equipment, ground, air and water transport means and their spare parts, chemical and metal products. Taking into the account that the EU acquired ten new members on 1 May 2004 and another two Bulgaria and Romania on 1 January
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2007, Kazakhstan and the EU signed a protocol to the Partnership and Cooperation Protocol, which adapted the agreement to the expanded EU. Let us note that following the expansion (the EU-25) in May 2004 Kazakhstans trade with the EU countries jumped signicantly to $15.3bn in 2005, comprising exports of $11bn and imports $4.3bn. In 2006 trade continued to grow and reached $22.7bn, with exports of $16.53bn and imports of $6.26bn. EU countries accounted for 36.3% of Kazakhstans total foreign trade. In 2007 trade increased to $27.5bn (exports of $19.5bn and imports $8bn) and in 2008 reached $34.1bn (exports of $26.9bn and imports $7.1bn) [35]. In the rst quarter 2009, trade between Kazakhstan and the EU totalled $4.7bn, including exports of $3.3bn and imports $1.4bn. During the years of cooperation EU countries have invested over $73.4bn in the Kazakh economy. The main investors are the Netherlands, Germany, Italy, France and the United Kingdom [35]. Since 2006 Kazakhstan and the EU have been intensifying the political component of cooperation. In October 2006 the former minister of foreign affairs of Kazakhstan, Kasymzhomart Tokayev, paid his rst ofcial visit to EU bodies in Brussels. He met the former secretary-general of the Council of the European Union and senior representative for the common foreign and security policy, Javier Solana, and the former European Commissioner for External Relations and European Neighbourhood Policy, Benita Ferrero-Waldner, who announced the proposal to increase the level of cooperation with Kazakhstan by involving the country in European Neighbourhood Policy and holding regular consultations in the format of the EU Troika-Kazakhstan at the ministerial level. This topic developed further during Benita Ferrero-Waldners visit to Kazakhstan on 18-20 October 2006. She met Kazakh President Nursultan Nazarbayev, the former minister of foreign affairs, Kasymzhomart Tokayev, and the former speaker of the Kazakh parliaments upper chamber, the Senate, Nurtai Abykayev. During these meetings the parties discussed a wide range of issues surrounding interaction between Kazakhstan and the EU, includ175

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ing the issues of diversication of energy supplies to EU countries; the regions energy security; interaction within the Galileo space navigation programme; and the expansion of political and trade and economic cooperation. President Nazarbayevs visit to Brussels on 4-6 December 2006 became a signicant step in cooperation between Kazakhstan and the EU. The president visited the European Commissions headquarters and met the president of the European Commission, Jos Manuel Barroso [36]. The talks resulted in the signing of a memorandum on mutual understanding in the energy sphere. President Nazarbayev also met the former secretary-general of the Council of the European Union and senior representative for the common foreign and security policy, Javier Solana, and they exchanged views on a broad spectre of issues of Kazakh-EU political cooperation. Being aware that the Partnership and Cooperation Agreement, signed by Kazakhstan and the EU, was expected to expire in 2009, the parties agreed to raise their bilateral relations to the level of strategic partnership. An important point in political cooperation is the involvement of Kazakh and EU leaders in meetings in the format of the EU TroikaCentral Asian countries. During a meeting in Astana in March 2007 they discussed a draft EU Strategy for Central Asia in 2007-2013, which was adopted at the EU summit on 22 June 2007 under the title The European Union and Central Asia: Strategy for a New Partnership. In the meeting the EU stressed its desire to increase the level of its presence in the Central Asian region through assisting in the political and economic development of Central Asian countries. As a result, in the past 18 years mutual cooperation between Kazakhstan and the EU has reached positive results almost in all spheres of interaction. Kazakhstan positively assesses the prospects for future cooperation and hopes for expanding a dialogue with the EU. In turn, the EU also positively assessed President Nazarbayevs initiative to draft the special Path to Europe programme in the context of Kazakh-European relations, including the preparations ahead of Kazakhstans chairmanship of the OSCE in 2010.
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3.9. Kazakhstan and Middle Eastern Countries Middle Eastern countries now have a powerful political, business and intellectual potential. In the global system of energy balance, regional countries occupy a special place, which has allowed them to create major nancial and economic centres that have a considerable impact on the geopolitical alignment of forces in the modern world. Since acquiring independence Kazakhstan has been trying to establish friendly relations with Middle Eastern countries, with the intention of close interaction. Kazakhstan sees them as promising economic, political and cultural partners because all the necessary conditions have developed for mutual understanding and cooperation between Kazakhstan and the countries in the region. Kazakhstan established diplomatic relations with Middle Eastern countries between 1992 and 1999. One of the rst countries to establish ofcial relations with Kazakhstan in March 1992 was the Republic of Turkey. Ofcial visits that followed by Turkish President Turgut Ozal to Kazakhstan in 1993 and President Nursultan Nazarbayev to Turkey in 1994 expanded economic ties and political cooperation. A package of important interstate agreements, signed by Astana and Ankara, has helped the consistent development of both diplomatic relations between the two countries and trade and economic relations, including as part of meetings of Turkic states. Dynamically developing bilateral relations between Kazakhstan and Turkey have found reection in joint activities to implement the Baku-Tbilisi-Ceyhan project. This oil pipeline ships Caspian oil to global markets, which is why Astana and Ankara attach particular signicance to it. A new impetus to interaction between Kazakhstan and Turkey was given by their leaders declaration of the development of strategic partnership between Astana and Ankara. This initiative was announced during President Nazarbayevs visit to Turkey in May 2003 and was conrmed during his meeting with Turkeys former President Ahmet Necdet Sezer at the NATO summit in Istanbul in June 2004 [37]. As a result, the constant nature of relations between the two states is a shining example of successful cooperation in which the issue of
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strengthening bilateral mutually benecial contacts receives increased attention and Kazakhstan and Turkey intend to continue cooperation in international and regional organisations in the future. The geopolitical location and economic potential of the Islamic Republic of Iran make it a major partner for Kazakhstan, and ofcial relations were established in January 1992. The foundation of long-term cooperation between the two countries was laid during President Nazarbayevs visit to Tehran in November 1992 and Irans former President Ali Akbar Hashemi Rafsanjanis visit to Kazakhstan in October 1993. Later priority aspects of bilateral cooperation were dened during President Nazarbayevs visit to Iran in May 1996, October 1999 and October 2007 and during the then Iranian President Mohammad Khatamis participation in the Economic Cooperation Organisation summit in Almaty in May 1998 and his visit to Kazakhstan in April 2002 [37]. The establishment of partner relations between Astana and Tehran is characterised by the similarity of the two countries positions on many international and regional issues. Kazakhstan and Iran now are putting joint efforts into the creation of the North-South transport corridor to reduce distance and optimise routes to supply goods from Europe to Asia. The planned construction of a railway link and roads along the Caspian Sea to join Irans transport networks will intensify economic processes not only between Kazakhstan and Iran, but also throughout the entire region [38, p 183]. Astana and Tehran also intend to use the potential of sea routes in the Caspian Sea and ship freight between major ports in Kazakhstan and Iran. Kazakhstan is currently actively cooperating with Iran as part of a project to ship oil on tankers from the port of Aktau to the Iranian port of Neka, where it would be swapped for Iranian oil in the Gulf for sale to Asia-Pacic countries. The two Caspian-littoral states attach particular attention to dening the legal state of the Caspian Sea. An interstate dialogue in this direction is being held as part of summits of heads of Caspian-littoral states.
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The two countries are also developing cooperation at regional levels. Irans involvement in the Shanghai Cooperation Organisation since July 2005 (as an observer) helps expand the range of issues for discussion and consultation and exchange views on topical problems of international politics. Enjoying its strong reputation in developing countries in Asia, the Arab Republic of Egypt tries to act as a mediator in solving complex regional problems. The similarity of Kazakhstans and Egypts positions on a broad scope of issues of regional security, including interethnic conicts and interstate contradictions, and the formation of a regional system of collective security conditions the desire of Kazakhstan and Egypt to establish close mutually benecial relations. The countries established diplomatic relations in March 1992. Important political events in the history of Kazakh-Egyptian relations include President Nazarbayevs visit to Egypt in February 1993 and March 2007 and Egyptian President Hosni Mubaraks visit to Kazakhstan in November 2006. Cooperation between Astana and Cairo on strengthening security measures in the region is reected in the countries interaction to implement the Kazakh initiative of convening the CICA and the Congress of Leaders of World and Traditional Religions, as well as joint work within international organisations like the OIC and the League of Arab States. The Kingdom of Saudi Arabia occupies a key position in the political and economic life of the Middle East, and it is the worlds largest exporter of energy resources as well as the home to Islamic holy shrines. Kazakh-Saudi relations were established on 30 April 1994 and President Nazarbayev paid his rst ofcial visit to the country in the autumn of that year. Strengthening friendly relations between the countries, at Saudi King Fahd Bin Abdul Azizs invitation President Nazarbayev paid his second visit to the kingdom in March 2004. In turn, high-ranking Saudi ofcials visited Kazakhstan, including Deputy Prime Minister and Minister of Defence and Aviation and Inspector General of the Kingdom of Saudi Arabia Crown Prince Sultan
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Bin Abdul Aziz, Justice Minister Abdullah Al-Asheikh and Supreme Judicial Council Chairman Saleh Bin Abdullah Bin Humeid. Bilateral relations between Kazakhstan and Saudi Arabia in the trade and economic sphere have great potential. Moreover, Saudi Arabia has impressive investment opportunities and shows interest in fullling major infrastructure projects in Kazakhstan. In addition, the countries leaders aim to create the best conditions for establishing active business contacts in the sphere of trade and nance. Relations in the Middle East are characterised by the complicated relations between Israel and the Arab world. It is important to note that Israel is interested in cooperation with Kazakhstan as this will enable it to establish and expand relations with other Muslim countries. Relations, established between Kazakhstan and Israel in April 1992, are developing both in the trade and economic and cultural and humanitarian spheres. Taking into account the continuing Arab-Israeli conict, Kazakhstan has spoken in favour of conducting a policy of balance of interests in the region. Kazakhstans position on the Middle Eastern settlement is based on support for UN resolutions adopted on this issue. Calling for the maximum use of negotiation potential to solve the existing Israeli-Palestinian problems, Kazakhstan has established political contacts with Israel and in parallel with the Palestinian National Authority. President Nazarbayev paid an ofcial visit to Palestine twice in 1995 and 2000. In turn, the former head of the Palestinian National Authority Yasser Arafat visited Kazakhstan in 1991 and 1999. During talks the Kazakh and Palestinian leaders discussed issues of bilateral cooperation. The states are now aiming to create the necessary conditions for a regular exchange of views on topical international problems, including the situation in the Middle East. This circumstance proves Kazakhstans balanced policy on the problem of the Middle Eastern settlement. Kazakhstan is dynamically and fruitfully developing relations with the United Arab Emirates. After the establishment of diplomatic relations in September 1992, Kazakhstan started to build the basis for bilateral cooperation.
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As a result of a number of ofcial and working visits by Kazakh President Nursultan Nazarbayev to UAE in 1998, 2000, 2004, 2005 and 2006 and UAE President Sheikh Khalifa Bin Zayed Al Nahyans visits to Kazakhstan in 2002 and 2008, a package of important interstate agreements was signed. In particular, the states signed the Plan of Joint Action: Kazakhstan UAE, which envisages large-scale bilateral cooperation in the economic sphere, primarily, in industry, petrochemistry, transport and telecommunications and construction. It is worth stressing that for Kazakhstan the UAE is a promising partner in the Arab world. Signicant investment potential allows the UAE to fund the construction of various facilities and projects in Kazakhstan, including the Aktau City project in the Caspian Sea region and the Abu Dhabi Plaza project in Astana. Proceeding from this Kazakhstan favours boosting interstate cooperation and increasing contracts between the two countries entrepreneurs. Relations between Kazakhstan and the State of Qatar also help strengthen Kazakhstans investment cooperation with Gulf countries. After signing a joint statement in July 1993, the two countries ofcially established diplomatic relations. During Kazakh President Nursultan Nazarbayevs visit to Qatar in 1998 and 2007 and Emir of Qatar Hamad Bin Khalifa Al Thanis reciprocal visit to Astana in 1999 the two leaders discussed strengthening bilateral agreements and opportunities to develop economic and cultural and humanitarian cooperation. Doha attaches great signicance to developing relations with Astana and encourages Qatars private sector to cooperate with Kazakh partners. Kazakhstan and Qatar are now trying to give a new impetus to interstate relations, expanding cooperation in the oil and gas, education, healthcare, agricultural, tourism and sport spheres. In its relations with the Middle Eastern countries Kazakhstan aims to develop a constant dialogue and regular consultations on a broad spectre of global and regional issues. It should also be noted that boosting cooperation with Muslim countries meets Kazakhstans long-term interests and is one of the countrys foreign policy priorities.
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Muslim countries regard Kazakhstan as a reliable partner and leader in the Central Asian region, considering it as an inseparable part of the Muslim community [39]. This is precisely why Arab countries welcome Kazakhstans involvement in the Organisation of the Islamic Conference and the Islamic Development Bank and offer all-round support to Kazakhstans foreign policy initiatives to convene the CICA, the Congress of World and Traditional Religions and the Muslim World-the West dialogue. In addition, Kazakhstans chairmanship of the OSCE in 2010 and of the OIC in 2011 invites positive reaction from Middle Eastern countries. For its part, Kazakhstan is trying to fully open up the potential of trade and economic cooperation with Middle Eastern countries by creating a favourable investment climate for funding the non-extractive sector of its economy. The implementation of major investment projects in the energy, infrastructure, tourism, food, banking, metal and other sectors will make it possible to elevate Kazakhstans relations with Middle Eastern countries to a new level.

3.10. Kazakhstan and South Asian Countries The South Asian region with its benecial geostrategic position, political weight and human resources represents great interest to Kazakhstan. The geographical proximity of the Indian subcontinent to Central Asian countries and the rich history of relations between the peoples of the two regions that have managed to establish close links in trade and cultural exchange necessitate stable and mutually benecial interstate relations. We should note that the signicant factors that inuence the nature of relations in South Asian countries are the differences in the national interests of each of them. Proceeding from this point, Kazakhstan is trying to conduct a balanced foreign policy towards South Asian countries. Moreover, Kazakhstan pays heightened attention to issues of ensuring security and stability in South Asia because political contradictions between regional leaders India and Pakistan need all-round discussion and solution. Appropriately reacting to challenges coming from the region, Kazakhstan is taking active measures to develop political and economic cooperation with South Asian states [40, p 136]. In pursuit of its foreign policy India is trying to normalise relations both with its regional neighbours and distant states. In foreign relations Delhi is guided by the principles of multi-polar world system, focusing on problems of global stability and security. At the same time, India aims to expand regional and global cooperation, including with Central Asian countries. Since the establishment of diplomatic relations between Kazakhstan and India during President Nazarbayevs visit to Delhi in February 1992, the countries showed interest in boosting friendly relations. Kazakhstan and India pointed to the similarity of their positions on key aspects of regional and global politics and the absence of fundamental contradictions on the main problems of international relations. The declaration on the principles of relations between Kazakhstan and India, signed during the visit, laid the foundation for bilateral
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cooperation in the political, trade and economic, nancial and other spheres. The following Indian visits to Kazakhstan were of signicant importance for the negotiation process between Astana and Delhi: the former Prime Minister Pamulaparthi Venkata Narasimha Raos visit in May 1993 and the former Vice-President Kocheril Raman Narayanans visit in September 1996, during which agreements on technical cooperation, cultural exchange and the creation of the Kazakh-Indian intergovernmental commission for trade and economic, scientic and technical, industrial and cultural cooperation were signed [41]. Within the intergovernmental commission there are joint working groups on information technologies, oil and gas, military and technical cooperation, the ght against international terrorism, textiles working group and the subcommittee for scientic and technical cooperation. The countries intentions to boost economic cooperation were conrmed during President Nazarbayevs second visit to India in December 1996. The signing of the Convention between the Government of the Republic of India and the Government of the Republic of Kazakhstan for the Avoidance of Double Taxation, the Agreement on Encouragement and Mutual Protection of Investments and the memorandums on mutual understanding, on holding days of Kazakh culture in India and of Indian in Kazakhstan helped increased the potential of bilateral cooperation. The Kashmir problem remains an important aspect of KazakhIndian talks. The Kazakh side has spoken in favour of a peaceful solution to India-Pakistan contradictions based on taking account of the opinions of all parties concerned and international law [42, p 28]. From the very beginning interaction between Kazakhstan and India aimed to strengthen regional security and expand economic contacts, which is why one of the key issues of the interstate political dialogue remains to be efforts to advance Kazakhstans initiative to convene the CICA.
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The Indian government, one of the most active supporters of the development of the CICA, played a positive role during drafting the declaration of principles for cooperation between CICA member states in 1999. India took active part in the CICA summits in 2002 and 2006, as well as helping sign the Almaty act in 2002 and endorse the CICA Catalogue of Condence-Building Measures in 2004. This shows Delhis desire to achieve the maximum effect in drafting new approaches to regional security issues. The existence of such an unusual platform for dialogue such as the CICA makes it possible for conicting parties to sit at the negotiations table and discuss problems. In particular, during the intensication of the conict between India and Pakistan in 2002 Kazakhstan and Russia, making use of the advantages of this forum, attempted to normalise relations between Delhi and Islamabad. A telling example of the strengthening of relations between Astana and Delhi was President Nazarbayevs third visit to India in February 2002, which resulted in the signing of the Kazakh-Indian Joint Declaration. In July 2002, the then Indian Prime Minister Atal Bihari Vajpayee paid an ofcial visit to Kazakhstan. A new boost to the development of Kazakh-Indian relations was given by Indias Vice-President Mohammad Hamid Ansari in April 2008 and President Nazarbayevs fourth visit to Delhi in January 2009, as a result of which bilateral relations have reached the strategic level of partnership. At present Kazakhstan and India are combining their efforts to develop political and economic ties both at interstate and regional levels. This is precisely why Kazakhstan and India activated their activities in other regional structures. Aiming to be involved in processes taking place in Central Asia and wanting to boost relations with Russia and China, India, with Kazakhstans support, received observer status in the SCO during the summit in Astana in July 2005. Indias desire to take part in SCO initiatives such as the Regional Antiterrorist Structure (RATS), the SCO Energy Club and the SCO-Afghanistan contact group will help
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expand cooperation between member states of the organisation in the priority aspects of its activities. Thus, Kazakhstan and India count on a long-term economic and political partnership that will make it possible to establish transport and telecommunications links, ensure bilateral cooperation in the energy and information technology spheres, as well as allowing them to tap the potential of mutually benecial cooperation between the two Asian countries. The Islamic Republic of Pakistan exerts considerable inuence on the processes that are taking place in South Asia. Kazakhstan and Pakistan established diplomatic relations in February 1992 during President Nazarbayevs state visit to Pakistan. During the visit the following basic documents of bilateral relations between the two countries were signed: the declaration on the principles of relations between Kazakhstan and Pakistan, the agreements on the establishment of diplomatic and consular relations, on trade and economic cooperation, on cooperation in the spheres of culture, sport and tourism and the protocol on the creation of a joint intergovernmental commission. In August 1995, Pakistans then Prime Minister Benazir Bhutto visited Kazakhstan and its President Farooq Leghari paid an ofcial visit to Kazakhstan in October 1996. After these visits the parties dened some promising aspects of bilateral relations, strengthening their legislative basis by a number of important documents, in particular, by the Agreement on the Avoidance of Double Taxation, accords on joint actions to ght the illegal turnover of drugs and psychotropic substances, terrorism and other crimes. In the late 1990s political activity slowed down in relations between Kazakhstan and Pakistan. However, with the arrival of new leadership in Pakistan the situation changed to the better and the decline in diplomatic cooperation was overcome. In November 2000 Pervez Musharraf, the then head of the executive branch of power in Pakistan, visited Kazakhstan on an ofcial visit, during which Astana and Islamabad conrmed intentions to develop bilateral relations further without discriminating the interests of other countries. This circumstance shows Kazakhstans balanced
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approach to India-Pakistan contradictions and its desire to establish a permanent and comprehensive dialogue between them in order to bring about a peaceful solution to the Kashmiri problem. The further expansion of cooperation, including in the banking sphere, was helped by President Nazarbayevs visit to Pakistan in December 2003, which resulted in the signing of a bilateral agreement on cooperation between the two capitals. Ofcials from Pakistan are taking an active part in promoting the idea of the CICA from the very beginning of its establishment. It is worth noting that the former president of Pakistan, Pervez Musharraf, who attended the CICA summit in Almaty in 2006, raised issues regarding the expansion of cooperation in the trade sphere and on transport and energy projects. In addition, Pakistan was granted observer status in the SCO and this helps the countrys involvement in the process of solving issues of regional security. Pakistan aims to become a full member of this organisation, helping it intensify its interstate economic cooperation, especially with Central Asian countries. As a result, Kazakhstans cooperation with South Asian countries, which are characterised by special geopolitical location and wide economic opportunities, enables Astana to tap the potential of interstate cooperation and favourable prospects for Kazakhstans access to the global transport and communications networks that stem from it. Since the very beginning of its independence Kazakhstan has been aiming to develop and boost political dialogue with South Asian countries, placing particular emphasis on the economic potential of this cooperation. Because of this, not only will Kazakhstans future cooperation with South Asian states have a positive impact on the socioeconomic development of these countries, but will also help ensure regional stability and security.

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3.11. Kazakhstan and Asia-Pacic Countries The Asia-Pacic vector of Kazakhstans foreign policy is one of the most promising directions of cooperation for the future. Expanding both bilateral and multilateral relations with Asia-Pacic countries will help Kazakhstans multi-vector foreign policy. This region now occupies an increasingly important place in modern Kazakhstans foreign policy because Asia-Pacic countries have high economic and industrial growth rates. At the same time, high economic development rates increase the living standards of the population and general consumer demand, which makes the region a promising market. The regional countries rapidly developing economies constantly need to increase energy imports. On the global stage, the leading Asia-Pacic countries are claiming increasingly better reputations and are turning into new centres of the global economy and politics, capable of exerting substantial inuence on the development of regional and global processes. Kazakhstan and Japan. Asia-Pacics leading and most economically developed country is Japan. The dialogue between Kazakhstan and Japan started in May 1992 with the visit by the then Japanese minister of foreign affairs, Michio Watanabe. The foundation for bilateral relations was laid by President Nursultan Nazarbayevs visit to Japan in April 1994. The Joint Statement was signed during the visit, and notes of the recognition of treaties and agreements signed by the USSR and Japan were exchanged. The then Japanese Prime Minister Ryutaru Hashimotos 1997 Silk Road Diplomacy strategy helped expand Japans cooperation with Kazakhstan, as well as other Central Asian countries. In December 1999 President Nazarbayev paid his second visit to Japan and signed the Joint Declaration on Friendship, Partnership and Cooperation. In December 2002, Kazakhstans former Minister of Foreign Affairs Kasymzhomart Tokayev visited Japan to meet government ofcials. In 2004 Japans former Minister of Foreign Affairs Yoriko Kawaguchi announced a new initiative towards Central Asian countries the Central Asia plus Japan dialogue.
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This forum helped expand Japans cooperation with Central Asian countries at a multilateral level. The dialogues main priorities were the boosting of cooperation with regional countries in the spheres of economy, security and culture. In August 2004, the rst meeting of ministers of foreign affairs of the countries involved was held in Astana. An historical event that had a serious impact on Kazakh-Japanese relations was the rst visit to Kazakhstan by Japans then Prime Minister Junichiro Koizumi in August 2006. During his visit a joint declaration on the further development of friendship, partnership and cooperation between the two countries was signed. At meetings with Kazakh ofcials the former Japanese prime minister showed interest in cooperating in the nuclear energy sphere. In April 2007 a delegation the heads of Japans major corporations, power engineering and trade companies and nancial institutions, led by Minister of Economy, Trade and Industry Akira Amari, visited Kazakhstan. As a result of the visit, the sides signed a joint statement on strengthening strategic partnership in the sphere of the peaceful use of nuclear energy and over 20 cooperation agreements in the nuclear sphere. In June 2008 the Kazakh president paid another ofcial visit to Japan. The visits main objective was to raise economic cooperation between the two countries to a new level. During the visit President Nazarbayev met Emperor Akihito, government members and business people. Currently, economic cooperation between Kazakhstan and Japan is ourishing. The main items of Kazakh exports to Japan are still titanium and chemical products, while Japan supplies equipment, devices and cars to Kazakhstan. Japanese companies are involved in major international oil projects in Kazakhstan and conduct geological exploration to nd deposits of rare metals. Japanese companies run energy-saving projects in Kazakhstan using new technologies. Japan also conducts projects in Kazakhstan as part of its Ofcial Development Assistance (ODA) Programme. The funding from this
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programme in Kazakhstan has exceeded $1bn since it was launched [43]. Kazakhstan and the Republic of Korea. Kazakhstans diplomatic relations with South Korea were established on 28 January 1992. The chief role in establishing interaction between the countries was played by high level meetings. Kazakh President Nursultan Nazarbayev visited South Korea on an ofcial visit twice in 1995 and 2003. During his ofcial visit to Seoul on 15-18 May 1995, President Nazarbayev signed one of the main documents for bilateral relations a declaration on the main principles of interaction and cooperation between Kazakhstan and South Korea. The declaration said that both countries admitted that guarantees of the rights of ethnic minorities was the main element of stability in the international community and that they would respect and protect the rights and interests of citizens who had roots in Kazakhstan and Korea to ensure their cultural traditions and religion in line with the norms of international law [44, pp 332-333]. The Joint Declaration, signed during the Kazakh presidents second visit to South Korea in November 2003, stressed the countries readiness to put efforts to support peace and stability in Asia and ght international terrorism, organised crime and drugs. Astana and Seoul agreed to expand cooperation through active systematic exchange in the spheres of education, culture, tourism, sport and local self-government [45]. During the rst state visit by South Korean President Roh Moohyun to Kazakhstan on 19 and 20 September 2004, the countries signed the Joint Statement. This statement pointed to the need to expand bilateral relations in the spirit of friendship and cooperation and raise practical interaction in the spheres of trade, energy, mineral resources, science and technology to a higher level [46]. Present relations with South Korea, taking account of its economic and political potential, as well as its presence in the Kazakh economy, bear the nature of a strategic partnership for Kazakhstan. The contractual and legislative basis for cooperation between Kazakhstan and South Korea consists of over 60 documents, includ190

ing agreements on cultural and scientic and technical cooperation, cooperation in the spheres of education, information technologies and telecommunications, energy and mineral resources and other spheres. South Korea is one of the leading investors in the Kazakh economy. Its total investment in Kazakhstan has reached about $3bn (as of 30 September 2008, according to the National Bank of Kazakhstan). The main spheres of investment are construction, trade, nance, information technologies, the production of buses, equipment for the oil and gas and chemical sectors and white goods. Over 300 enterprises with the involvement of South Korean capital are operating in Kazakhstan, including 48 joint ventures and 62 representative ofces. Taking into account the tremendous interest that South Korean companies have in Kazakhstan, one can suggest that active cooperation between the two countries in the hi-tech sphere will ensure the necessary resources for our countrys economic modernisation. However, Kazakhstan now needs investment for a number of key sectors that are not as attractive agriculture, machine-building and so on. Apart from frequent political and economic contacts between Kazakhstan and South Korea, one can talk about serious prospects for cooperation in the humanitarian and cultural spheres, in which a particular role is played by Kazakhstans Korean diaspora, which numbers over 100,000 people. Kazakhstans wise minority policy is one of the main assurances of the consistent development of KazakhSouth Korean relations. In the foreign policy sphere bilateral ties between Astana and Seoul are important in the context of establishing and furthering Kazakhstans cooperation with Asia-Pacic countries. One of the main promising aspects is interaction with South Korea in the context of regional integration and cooperation in ASEAN. In essence, participation in ASEAN is one of the main ways of involving Kazakhstan in Asia-Pacic integration structures, but this is largely hindered by Kazakhstans geographical remoteness. No less important is South Koreas participation, as an inuential global player, in the activities of the CICA.
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Positions adopted by Kazakhstan and South Korea on key global problems, including in the sphere of strengthening the regime of the non-proliferation of weapons of mass destructions, ghting terrorism and solving regional conicts, are generally similar. Kazakhstan and Indonesia. A major Asia-Pacic country and the worlds largest island state is Indonesia. It has a population of 240 million people, 90% of whom are Muslim, making Indonesia the worlds largest Muslim country. Indonesias foreign policy directions are traditionally aimed at rmly protecting national interests, constructive involvement in solving global problems and ensuring peace, stability and security globally and regionally. Indonesia advocates drafting new parameters of the global order based on multi-polarity, strengthening the UNs central role and the supremacy of international law. Jakartas main foreign policy objective is to create favourable conditions for strengthening the countrys territorial integrity and speeding up economic development [47, pp 8-17]. The similarity of Indonesias and Kazakhstans positions on foreign policy issues is a favourable basis for the development of mutually benecial bilateral relations. In 1995, during the former Indonesian President Mohammed Suhartos ofcial visit to Kazakhstan, documents that laid the foundation for bilateral relations were signed. In particular, the countries signed the Joint Declaration and the Agreement on Economic and Technical Cooperation [48, p 270]. President Nursultan Nazarbayevs reciprocal visit to Indonesia resulted in the signing of the agreement on settlements between the National Bank of Kazakhstan and the Central Bank of Indonesia and the agreement on cooperation between the two countries commerce and trade chambers. Kazakhstans trade with Indonesia is relatively small, but it shows an upward trend. In 2006 bilateral trade totalled $24.3m and $34.2m in 2007, whereas in the rst half of 2008 this gure reached $25.7 more than in the whole of 2006. Kazakhstan and Indonesia are closely cooperating within the UN, the CICA and the OIC.
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Kazakhstan and Malaysia. Out of all the Asia-Pacic countries, Malaysia is of particular interest to Kazakhstan, especially its experience in economic development. Industry contributes 46% to the Malaysian economy, while services account for 41%. Malaysia has achieved extraordinary successes in the production of electrical and electronics equipment. The country is the worlds largest producer of electronic chips and household air conditioners. Malaysia has achieved astonishing results in the spheres of car production, oil and gas processing and textiles. Diplomatic relations between Kazakhstan and Malaysia were established on 16 March 1992, and the countries established their diplomatic missions in 1996. The Kazakh president paid his rst ofcial visit to Malaysia in May 1996. This visit resulted in basic intergovernmental agreements on trade and economic cooperation, on encouragement and protection of investment and economic and scientic and technical cooperation. In return, Malaysias former Prime Minister Mohathir Mohammad rst visited Kazakhstan in July 1996. As a result, agreements on air links and on cooperation between the countries central banks, as well as the Joint Declaration, were signed. In September 2003 Malaysias former supreme ruler, Tuanku Syed Sirajuddin, visited Kazakhstan, while President Nazarbayev went on a state visit to Malaysia in June 2006. This visit elevated bilateral relations to a new level: as a result the countries signed a number of agreements which were important in practical terms for the development of bilateral cooperation: the intergovernmental agreement on the avoidance of double taxation and the prevention of tax evasion and a package of business agreements in the sphere of information technologies, nance and construction. Kazakhstan and Malaysia are successfully cooperating in the sphere of space technologies and conquering space. In October 2007, a Malaysian delegation, led by Minister of Science, Technology and Innovation Jamaluddin Jarjis, visited Kazakhstan in connection with a Malaysian astronauts ight to the International Space Station from the Baikonur cosmodrome.
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Kazakhstan and Malaysia are actively cooperating within international forums. In October 2008 in Astana the seventh Asia Cooperation Dialogue ministerial meeting was attended by Malaysians former Minister of Foreign Affairs Abdul Rahim Bakri. In 2007, Kazakh-Malaysian trade totalled $67.13m, while in January-September 2008 this was $48.5m [49]. The two countries are currently closely cooperating in the sphere of education and enhancing qualications. Every year, Kazakh specialists (lawyers, doctors, diplomats and economists) undergo training courses in Malaysian educational establishments as part of the Malaysian programme for technical assistance for developing countries. In the modern world Kazakhstans interests cannot be limited to neighbouring regions. The countrys Ministry of Foreign Affairs is broadly building relations with Asia-Pacic countries, where a new global centre of politics and economy is emerging. The region already accounts for two-thirds of the global economic output. The economic successes of Asia-Pacic and its economic growth rates are impressive. As a consequence, Kazakhstan shows interest in exchanging experience with leading Asian countries in economic and industrial development. Asia-Pacics progress in the hi-tech sphere generates interest in Kazakhstan, while the commonness of positions on international political issues is a favourable basis for developing mutually benecial cooperation between Kazakhstan and Asia-Pacic countries.

3.12. Kazakhstan and the UN The UNs main goal is to promote peaceful and sustainable development globally. After obtaining independence Kazakhstan also dened peaceful development and expanding neighbourly relations as the key principle of its foreign policy. The similarity of the goals and tasks of Kazakhstan, as a young state that started making the rst steps on the international stage, enabled it to become a full member of the UN on 2 March 1992. This landmark event in the history of the countrys diplomacy and foreign policy took place at the 46th session of the UN General Assembly as a result of the adoption of Resolution 46/224. In autumn 1992 at the 47th session of the UN General Assembly the Kazakh delegation took part in the UN forum as a full member for the rst time. At this session President Nazarbayev delivered a speech to dene the key principles and aspects of Kazakhstans foreign policy and the countrys plans to enter the international arena as an independent and sovereign player. This speech could be rightfully described as a historical event in Kazakh foreign policy. In it the head of state stressed the countrys readiness to share the responsibility for achieving development goals, strengthening the regime of the non-proliferation of weapons of mass destruction, observing human rights and drafting efcient measures to counter modern challenges and threats to stability and security with other members of the international community [50]. During this speech the president proposed one of Kazakhstans rst initiatives to the international community one that concerned the creation of a special forum the Conference for Interaction and Condence-Building Measures in Asia (CICA). As a result, Kazakhstan started intensive activities in the international area as a player that was capable of inuencing the formation of a fundamentally new system of collective security in Asia, based on a dialogue and mutual understanding in solving topical international problems. Kazakhstans position and its governments specic steps on nuclear disarmament invited respect in the international community.
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In particular, at the 49th session of the UN General Assembly in their speeches heads of state welcomed Kazakhstans move to join the Strategic Arms Reduction Treaty (START-1) and the Treaty on the Non-Proliferation of Nuclear Weapons. The continuation of Kazakhstans initiatives on nuclear disarmament was its signing of the Comprehensive Nuclear Test Ban Treaty (CTBT) in October 1996. This boosted Kazakhstans reputation as a young state that adhered to the principles of stability and peaceful development. As part of its activities in the UN, Kazakhstan pays particular attention to cooperation in ensuring regional security and organising peacekeeping operations. In December 1995, along with Kyrgyzstan and Uzbekistan, Kazakhstan signed an agreement on the creation of a joint peacekeeping battalion in Central Asia under the aegis of the UN. In 1996 Kazakhstan joined the UN system of reserve agreements for possible involvement in peacekeeping operations. Kazakhstans close involvement in peacekeeping activities was proven by the creation of the Kazakh peacekeeping battalion (Kazbat) in 2003, subunits of which took part in mine clearing in Iraq between 2003 and 2008. In 2003 Kazakhstan and the UN also signed a memorandum of understanding regarding contributions to UN preparatory measures and expressed readiness to provide troops, armoured and transport means of Kazbat for peacekeeping operation and showed interest in closer involvement in the UN system of purchases for peacekeeping operations. As a result, Kazakhstan deserved the UNs recognition as a state that adopted a balanced and constructive approach to solving topical international problems. Kazakhstan attaches special signicance to international cooperation in the development of transport networks in Central Asia and alternative routes to access global markets. In 1999 at the 53rd session of the UN General Assembly Kazakhstan initiated the adoption of a resolution on transit issues in Central Asia which was co-authored by 19 other members of the UN. In August 2003 Kazakhstan proposed to hold the rst UN ministerial conference to discuss problems of landlocked countries. This
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conference resulted in the adopted a UN General Assembly resolution on the Almaty programme of action on cooperation between developing landlocked and transit countries. The Almaty conference became the rst UN event to discuss problems of landlocked countries. An important event in relations between Kazakhstan and the UN was the former UN Secretary-General Ko Annans visit to Astana in October 2002. During the visit Mr Annan praised Kazakhstan as a regional leader in preventing conicts. He also noted that Kazakhstan had achieved signicant results in switching from administrative-command to market economy and managed to preserve stability in the country, adopting a bold position on nuclear disarmament [51]. In relations with the UN Kazakhstan also focuses on countering non-traditional threats that bear a crossborder nature. Taking into account international experience, we should note that there is no country (regardless of its political, economic and political might) that is capable of independently countering the serious modern challenges of terrorism, religious extremism, the non-proliferation of weapons of mass destructions, weapons smuggling, drugs and so on. This is primarily linked to the fact that these problems have international, crossborder nature and need appropriate collective solutions. In connection with this, in January 2005 Kazakhstan hosted a UN Security Council Counter-Terrorism Committee special meeting to consolidate efforts to ght terrorism threats. Kazakhstans election to the UN Economic and Social Council (ECOSOC) on 2 November 2006 became an important event in cooperation between Kazakhstan and the UN and this was the recognition of the countrys constructive role in the activities of the UN. During a plenary session of the UN General Assembly Kazakhstans candidacy was supported by 187 countries out of 192 and, along with 53 other countries, it became the rst Central Asian country to be elected to ECOSOC. Thus, from 2007 Kazakhstan represented Asias interests in this structure. In May 2006 the UN Economic and Social Commission for Asia and the Pacic (ESCAP) held its 63rd session in Almaty. Over 500
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delegates, including heads of governments and ministers of member states of ESCAP, representatives of UN specialised agencies, international and nongovernmental organisations, discussed issues of reforming ESCAP, regulating globalisation processes and eliminating poverty and exchanged views on future cooperation in the spheres of transport, trade, energy, information technologies and environmental protection. This meeting resulted in the adoption of the Almaty declaration devoted to the 60th anniversary of the commission and nine resolutions aimed at expanding cooperation in the region. Assessing the results of this meeting, Kazakhstans former Minister of Foreign Affairs Marat Tazhin noted that the delegates active involvement in discussing the Almaty declaration proved the existence of collective political will and determination of countries to develop regional cooperation to improve the lives of the millions of people in region living in poverty [52]. Kazakhstans standing in the UN is based on the countrys interests in the entire set of issues discussed by the UN. Particular attention is drawn to cooperation with the UN in the spheres of economy, environment protection, social development, the progressive development of international law, the observation of human rights and ghting organised crime and drug trafcking. Thus, during the years of close cooperation with the UN Kazakhstan has acquired signicant potential in working with the UNDP, UNICEF, the UN High Commissioner for Refugees (UNHCR), the UN Development Fund for Women (UNIFEM), the International Labour Organisation (ILO), the International Atomic Energy Agency (IAEA), the WHO and other organisations as part of attracting the UNs expertise and technical and nancial assistance to Kazakhstan [53, pp 281-282 and 288-302]. Kazakhstans foreign policy position is based on the promotion of a multi-polar world as the best form of ensuring international stability and the balance of forces. This position is reected in Kazakhstans strategic course to pursue a multi-vector foreign policy. This is why Astana now speaks in favour of the UNs role as a key instrument of collective regulation of international relation and
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formation of a multi-polar system based on the UN Charter and international law. Regarding the issues surrounding the reformation of the UN Kazakhstan advocates the adaptation of the organisations institutions to modern geopolitical and economic realities and rational transformations taking into account the opinions of all states in solving the main international problems. Kazakhstans participation in the work of international organisations is one of the foreign policy priorities of the country. That is why Kazakhstans integration to the UN system became an important step on the path of implementing the young states foreign policy objectives. In particular, Kazakhstans membership of the UN helped strengthen its sovereignty and independence and offered favourable external conditions for further transformations and modernisation in the socio-political, economic, humanitarian and other spheres of public life.

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3.13. Kazakhstan and the CIS Kazakhstan attaches priority signicance in its foreign policy to cooperation within the Commonwealth of Independent States and the development of integration ties with its participants. Since the signing of the declaration on the establishment of the CIS (in Almaty on 21 December 1991), Kazakhstan has been actively speaking in favour of strengthening the organisation, developing intense relations within it, supporting and expanding trade and economic and cultural and humanitarian ties preserved between member states. Kazakhstans approach to multilateral cooperation within the CIS is based on the concept of multi-speed integration which means the formation of a small group of countries that are linked by closer cooperation. At the same time, Kazakhstan invariably adhered to the idea that activities of subregional associations within the CIS should be open in nature and their aims and actions should comply with the general direction of the development of the CIS. The commonwealth is characterised by member states selective participation in particular spheres of multilateral interaction. The CIS bodies decisions only have power for those countries that were involved in their adoption. The well-developed network of CIS charter bodies includes the Council of Heads of States, the Council of Heads of Government, the Interparliamentary Assembly, the Council of Ministers of Foreign Affairs, the Council of Ministers of Defence, the Council of Commanders of Border Troops and others. The permanent executive, administrative and coordination body is the Executive Committee. In line with a programme for the development of the CIS, which was approved by the Council of Heads of States in June 2000, economic cooperation was given priority [54]. In 1994, CIS countries adopted measures to switch to a multilateral free trade regime based on the corresponding agreement on the creation of a free trade zone. However, CIS countries failed to draft and agree on a multilateral basis to a list of exemptions from the free trade regime provided in the
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agreement, which is why the 1999 protocol on amending the agreement on the creation of the free trade zone stipulated that exemptions from the free trade zone that were of a temporary nature might be applied on the basis of bilateral documents. We should note that as a result of the existing differences in economic potential, the level of economic reforms and internal and external conditions for economic development the movement towards a full-scale free trade zone is not even possible for the CIS countries. As a consequence, in addition to coordinated actions, each country is characterised by the gradual formation of a free trade zone which is intrinsic only to itself. This means that the process of economic integration between the CIS countries has a complicated and contradictory nature. Factors that directly inuence it are the different levels of each states economic development and contradictions in particular political and economic interests of the member states. In recent years the issues of countering new security challenges and threats and cooperation in the law-enforcement sphere have become increasingly relevant. Given the actual development of events, cooperation in this sphere is now of the highest demand. An extended contractual and legislative basis was created for interaction in this sphere. For example, a programme for ghting international terrorism and other manifestations of extremism is being fullled. An accord was achieved on the implementation of an international programme of joint measures for ghting crimes within the CIS. New organisational structures and mechanisms of interaction were created. This primarily includes the CIS Antiterrorist Centre, which has been in operation since 2001 at Russias Federal Security Service (FSB) in Moscow, using special subunits and a joint data base of security bodies, intelligence services and other relevant bodies from the CIS countries. Joint efforts are growing in the sphere of ghting drugs. The CIS adopted a blueprint for cooperation in countering the illegal turnover of drugs, psychotropic substances and precursors (in 2002). As part of this blueprint member states carry out joint anti-drug programmes.
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The desire to interact in this sphere is obvious and very strong because the CIS countries are vulnerable to this threat and are actually on the frontline of drug aggression. Cooperation is becoming active in the humanities sphere too. One of the main objectives in this sphere is the further development of the historically established common educational, scientic and cultural space as an important factor of encouraging integration processes in other spheres. At the same time, there are also shortcomings in the CIS and they considerably complicate its activities and hinder its development. Since its establishment the organisation has adopted over 1,600 documents, most of which have remained on paper. The CIS countries and bodies are currently searching for new ways to improve its activities. At the summit in Astana in September 2004 Kazakh President Nursultan Nazarbayev proposed to reform the CIS in the context of the escalation of international terrorism. The Council of Ministers of Foreign Affairs was ordered to draft proposals to improve and reform the CIS bodies and submit them for the following sitting of the Council of Heads of State. This work resulted in the Council of Heads of State adopting a decision on this issue at the summit in Kazan in August 2005. With the aim of drafting additional proposal of a conceptual nature relating to the further improvement of mutually benecial cooperation within the CIS, a high level group on improving the efciency of the CIS was set up. At the summit of heads of CIS member states in Moscow in July 2006, the organisations chairman, President Nazarbayev, noted the commonwealths positive role in easing the consequences of the break-up of the USSR and preventing events from developing into an unpredictable scenario. However, the Kazakh president noted that the CIS had failed to become an efcient integration mechanism. Moreover, disintegration trends strengthened in the former Soviet space. As a result, the Kazakh leader stressed the need to choose pragmatic and the most important aspects and forms of mutually benecial cooperation that meet the interests of all peoples inhabiting in the CIS countries.
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Under the Kazakh programme for the reformation of the CIS the member states should focus their efforts on those aspects that can bring about interstate consensus and that objectively are not within the powers of other regional associations or are not used to the full. In particular, Nursultan Nazarbayev proposed ve important directions for the reformation of the commonwealth: a) improve migration policy; b) strengthen contacts in the transport sphere; c) boost cooperation in the sphere of education and science; d) join efforts to counter modern challenges and threats; and e) solve humanitarian problems. In as early as 2007 President Nazarbayevs ideas were implemented. The Kazakh formula of One year One topic was adopted for the work of the CIS. In 2007, the topic was migration policy. As part of this, the Kazakh leader proposed the creation of an interstate council for data on demand and supply in the CIS labour market. The summit of heads of CIS states in Moscow in February 2008 focused on problems of humanitarian cooperation educational, scientic, informational, cultural and youth affairs, as well as sport and tourism. However, the chief priority of the organisations future development is still to expand economic cooperation between member states. In Chisinau, in mid-November 2008 the CIS summit endorsed a plan of key measures to full a strategy for the CISs economic development until 2020 [55]. As part of the process of multi-speed integration, at the informal summit held in Kazakhstan (at Burabai) in December 2008, Belarus, Kazakhstan and Russia achieved accords on the legislative basis for the creation of a Customs Union of these three countries [56]. In the sphere of cooperation in the foreign policy sphere, all the CIS member states supported Kazakhstans initiative to chair the OSCE in 2010. A positive decision on Astanas application was treated as a common achievement: Kazakhstan was considered as a single candidate from CIS countries. It is rst time a CIS country will occupy the post of the OSCE chair, and it is particularly noteworthy that it is a country which is geographically located in the Asian region.
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Speaking at the Moscow summit of the CIS in February 2008, the Kazakh president expressed gratitude to his counterparts for a rm and consistent position in the issue of supporting Kazakhstans candidacy for the post of the OSCE chair. Thus, the continued future boosting of the activities of the various institutions and structures of the CIS generally meets the interests of Kazakhstan.

3.14. Kazakhstan and the SCO Paying priority importance to the issues of maintaining stability and security in the Eurasian space, Kazakhstan focuses on strengthening and developing interaction within the Shanghai Cooperation Organisation (SCO). From the early ages of its existence the SCO aimed at strengthening mutual trust and good neighbourly relations between member states and assisting their efcient cooperation in the political and trade and economic spheres. A central place in the Shanghai process was occupied by security issues even when the ve participants (China, Kazakhstan, Kyrgyzstan, Russia and Tajikistan) rst met in Shanghai in 1996 to agree to strengthen condence in the military sphere and mutual reduction in armed forces along borders. Between 1996 and 1997 the Shanghai Five signed a number of agreements to solve border problems along the former Soviet-Chinese border that had persisted for many years in the past. The Shanghai and Moscow (which followed the following year) summits became prototypes of a structure which within the following six years has been transformed into a fully-edged organisation of all-round cooperation. The joint work to implement these agreements served as the foundation for what has become know as the Shanghai spirit, the quintessence of which is mutual benet, equality, respect for the interests and opinions of one another, mutual consultations and the achievement of mutual understanding through consensus and voluntary implementation of accords achieved. At the same time, it is worth noting that the new structure logically lled those spaces in the processes of maintaining security which had existed in the Central Asian region. The involvement of global players, like Russia and China, became a strong factor in favour of the policy pursued. The transformation of the Shanghai Five into the Shanghai Cooperation Organisation took place at the summit in Shanghai in June 2001, which was attended for the rst time by Uzbekistan. As a result
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of this meeting the heads of the six states signed the declaration on the establishment of the Shanghai Cooperation Organisation and the Shanghai treaty on ghting terrorism, separatism and extremism. Not only did the nal document dene those phenomena that pose a threat to all member states, but also indicated specic directions and forms of ghting them. Simultaneously, the declaration on the establishment of the SCO considerably expanded a range of tasks it is supposed to deal with. Its objects were to strengthen mutual trust, friendship and good neighbourly relations between member states; to encourage efcient cooperation between them in the political, trade and economic, scientic and technical, cultural, educational, energy, transport, environmental protection and other spheres; to put joint efforts to maintain peace, security and stability in the region, build a new democratic, just and rational political and economic global order [57]. In order to organise the practical activities of the SCO, new main working bodies were set up: the Council of Heads of State, the Council of Heads of Government (prime ministers), the Council of Ministers of Foreign Affairs, conferences of heads of ministries and/or departments, the Council of National Coordinators; the Secretariat; and the Regional Antiterrorist Structure (RATS). The secretaries of member states Security Councils and prosecutor-generals also hold regular meetings. As a result, in contrast to the Shanghai Five, the SCO has a wider range of tasks and a more clearly dened structure. The new organisations interests were expanded into political, economic and cultural and humanitarian cooperation. Kazakhstan consistently insisted on the need to strengthen the SCO institutions further, develop the organisations potential in the security sphere and expand its partner relations. These aspects were reected in the decisions adopted at the SCO summit in Astana in July 2005. The summit resulted in the Astana Declaration and important antiterrorist documents: a blueprint for cooperation between SCO member states in the ght against terrorism, separatism and extremism and a charter on member states permanent representatives in the RATS.
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It was also decided to grant observer status to Pakistan, Iran and India [58]. The SCO became the start of the formation of a fundamentally new system of subregional cooperation through close interaction between six states with the possible membership of other countries (if they agreed to follow the principles and obligations laid in the foundation of the SCO). The SCO is not a military bloc or closed alliance, aimed against someone else, but an open organisation that is ready for wide international cooperation, including the possibility of its expansion. The heads of states dened the main tasks of the SCO at the current stage as supporting peace, stability and security in the region and developing trade and economic cooperation. For Kazakhstan, which is interested in maintaining stability and security in Central Asia, all these points present vital interest. Nothing less than stability and security is an indispensable condition for the countrys movement along the path of further economic and political transformations. Since international terrorism has become active, ghting the socalled three evils terrorism, extremism and separatism has become a priority for Kazakhstan, like other Central Asian countries. Unlike many other international organisations, from the very start the SCO managed to dene these phenomena and adopt specic aspects and forms of ghting them. The practical structure of the organisation that implements these activities is RATS, which has its headquarters in Tashkent. These aspects are a good basis for the realisation of the SCOs antiterrorist potential in the interests of all of its participants. Kazakhstan precedes from the fact that cooperation between SCO member states in the trade and economic sphere has long-term prospects. In particular, as an energy exporter Kazakhstan is interested in alternative routes to supply energy resources to global markets an important element of the SCOs economic policy. As part of the ght against new threats and challenges the issue of ensuring energy security is becoming increasingly signicant for Kazakhstan, as an energy power. Therefore, as an organisation that
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pays great attention to new threats and challengers, the SCO may help solve topical problems in this sphere. In this context Kazakhstan suggested the idea of setting up the SCO Energy Club as a rst step towards an Asian energy strategy, which may become one of the organisations main aspects. Water issues are also acquiring increasing signicance in the Central Asian region. During the SCO summit in Bishkek in 2007 the Kazakh President Nursultan Nazarbayev offered to draft common approaches to the use of crossborder rivers and reservoirs [59]. Water problems may become relevant for joint member states efforts in the future. One of the acute problems for Kazakhstan is migration which can only be solved by the combined efforts of a number of countries and international organisations. It is important to regulate this issue within the SCO by establishing a special coordination body. Given the situation in Afghanistan the SCOs activities in this sphere both in terms of military security and ghting terrorism and drug trafcking and socioeconomic and political reconstruction in the country are becoming particularly signicant. The SCO-Afghanistan contact group, set up in 2006, is an important coordination body for this. The organisation may activate its efforts on Afghanistan by increasing the level of states representations in this contact group and holding a SCO regional conference on Afghan problems with representatives of Afghanistan. At a meeting in Moscow on 14 January 2009, deputy ministers of foreign affairs from member states agreed that a special working group would continue preparations for this conference [60]. The SCOs global reputation is on the rise, which is why the international communitys interest in it is increasing. India, Iran, Mongolia and Pakistan enjoy observer status in the organisation. EU experts are talking about the possibility of granting the organisation the status of a dialogue partner to the EU. The CSTO, ASEAN, the EAEC and other regional integration structures have also shown interest in close partnership with SCO. Japan, Belarus, Sri Lanka, South Korea and other countries have also shown interest in a dialogue with the SCO.
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Kazakhstan advocates the expansion of the existing interaction with observer countries and partners of the SCO in various spheres, including politics, the economy and the cultural and humanitarian sphere. Kazakh diplomat Bolat Nurgaliyev has headed the SCO Secretariat since January 2007. The involvement of Kazakhstans representatives in the work of various structures of the SCO is a factor that improves the countrys political image and reputation in the international arena. As a result, Kazakhstan, as one of the initiators of the Shanghai process, from the very beginning insisted that the SCO was an important element in ensuring stability and security in Central Asia. The organisation was prompted by objective reasons related to problems in this sphere. Eight years on from when the Shanghai Five was transformed into a fully-edged international organisation we can say that it is in demand as a factor to form a just and efcient architecture of global security. Therefore, strengthening the existing and building new effective SCO structures meets the interests of stability and security in Central Asia, creating the conditions necessary for the regions sustainable development. Interaction within the SCO is of practical interest for Kazakhstan in terms of encouraging regional integration, ghting traditional and new threats and challenges, pursuing economic policy, ensuring energy security and solving the situation in Afghanistan. Further boosts to the SCOs activities will help pursue Kazakhstans foreign policy.

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3.15. Kazakhstan and the EAEC The economic globalisation is one of the present days leading development trends. Today, many countries are suffering from the global nancial crisis. Quite obviously, none of them are able to resolve this serious problem on their own. It is now important that countries implement a coordinated economic policy, for nancial institutions to cooperate and to implement joint projects. Therefore, regional integration is becoming increasingly signicant as an economic development tool. Thus, in overcoming the consequences of the global economic crisis and improving the national economy and its competitiveness, Kazakhstan is seeking to fully use new opportunities to participate in the growing global division of labour and various forms of international cooperation, including the creation of a new common market of goods and services with other countries [61]. The Eurasian Economic Community (EAEC), which was set up on 10 October 2000, is the most advanced integration body in the CIS. The presidents of Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan signed its founding agreement as an important step to develop real integration between the ve countries and mutual comprehensive cooperation between them to form a Single Economic Space (SES) in the future [62, p 142]. On 28 August 2006, Uzbekistan joined this pact but later, in October 2008, the country withdrew from the organisation. Trade between the member countries grew from $29bn in 2001 to $104bn in 2007. In 2008, it exceeded $130bn, which proved the communitys effectiveness in general. At present, a Customs Union is being established within the EAEC by Belarus, Kazakhstan and Russia. It is assumed that the rest of the EAEC members, Tajikistan and Kyrgyzstan, will join the union when their economies are ready. The Customs Union Commission (a supranational body forming the key directions of the countries customs policies) held its rst session on 4 February 2009. The session considered conceptual co210

operation conditions for the involved countries customs services in the single customs area, discussed specic matters related to indirect taxation and decided to speed up the formation of the Single Customs Tariff (SCT). It is expected that the SCT will be fully formed in 2009. It should be noted that the members of the customs alliance have already agreed on the single customs tariff for 4,000 goods. The union will become an important factor for developing mutual trade among the EAEC countries and for establishing the Single Economic Space in the future. The community constantly focuses on resolving problems of poverty, migration, energy and water usage, and using the communitys transit potential. The adoption of a blueprint for forming the communitys single transport space is also important for boosting integration between EAEC member states. The implementation of this document will help member states coordinate customs and tariff policy in the transport sphere, develop new corridors and modernise infrastructure. It is no secret that a number of serious problems, such as poorly developed transport systems, obsolete infrastructure and the lack of modern logistics centres, are preventing community members from boosting cooperation between them. As a result, it is becoming important for EAEC countries to conduct a coordinated policy to improve interaction between their transport systems, increase freight and passenger trafc (taking into account market demand) and develop their transit potential. In this regard, the Western Europe-Western China transport route is a promising project. This corridor is important because it will open transit routes not only to Russia, China and Europe but also to South Asian countries via Uzbekistan and Kyrgyzstan. The construction of the second line of the Volga-Don canal is also very signicant. This project will give the communitys members better access to the Black and Mediterranean Seas and further to the open ocean. Kazakh President Nursultan Nazarbayev has repeatedly stressed the urgency of enabling these routes [63].
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The agenda also includes issues relating to cooperation in the energy sphere. In this context, the member states have achieved a reasonable amount. Joint construction of hydropower stations is under way in Kyrgyzstan and Tajikistan. Customs procedures for interstate power supplies have been simplied. Energy departments are implementing a blueprint which will shape a common energy resources market but there is still a lot of work to be done. Some of the communitys regions still suffer from energy shortages, so it is becoming more important than ever before for the EAEC to jointly construct additional power generating facilities, improve the power grid and adopt up-to-date energy technologies. Cooperation between EAEC countries in the water sector also remains a current issue as mechanisms for mutual water and fuel supplies are inefcient. To this end, Kazakhstan has repeatedly proposed the creation of an International Water and Energy Consortium that would improve cooperation between these countries in the water sector. However, this project is still under consideration. Uzbekistans withdrawal from the EAEC has aggravated this problem. This country is also interested in the efcient use of water and energy resources. However, despite the current situation, it is reasonable for Uzbekistan to take a constructive part in quadrilateral water talks. This will allow the countries to reach a compromise on the problem. It should also be stressed that the EAEC countries are paying signicant attention to cooperation in the social sector. The community has adopted a number of programmes to ensure decent living conditions for the 206 million people inhabiting the member countries. In particular, the Ten Simple Steps towards Ordinary People programme [64, pp 15-16], which was proposed by Kazakhstan, is being implemented. Its basic goals are to develop the communitys social aspects and create conditions for the member countries citizens to move freely across the countries and choose places of permanent or temporary residence, to be employed, to receive education and subscribe to newspapers and magazines in any EAEC country. Ordinary people, who remember the USSR, may nd many provisions of this statement strange. But one should bear in mind that
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we became citizens of different sovereign countries in 1991. And it took quite difcult decisions and a number of interstate agreements to make each of these simple steps. Today, the EAEC is continuing to implement these projects, which will make it possible to receive real returns from cooperation. Migration is now becoming increasingly important. The global nancial crisis, a slowdown in industry and a freeze in the construction sector have had a negative impact on the labour market and the state of migrants in EAEC countries. Therefore, this problem needs a comprehensive solution by migration departments, employers, insurance and other relevant organisations. The EAEC governments need to take urgent measures in this area and develop coordinated approaches to stabilise the situation in their domestic labour markets and create additional jobs. The deterioration in the state of the migrant labour market always poses a threat to stability in the region. Kazakh President Nursultan Nazarbayev has repeatedly stressed the need for the community members to adopt a coordinated policy in this sphere. Signicant attention is also being paid to the expansion of ties in the healthcare sector. It is necessary to boost cooperation between research institutes and medical centres across the EAEC. The countries need to create joint health resorts and medical clusters, which will signicantly help develop human resources in the member countries. Joint innovative projects are also one of the most key areas of integration within the EAEC. The EAEC Interstate Council decided at a session on 4 February 2009 to create a centre for new technologies, which would help boost the competitive advantages of the member states, and modernise and diversify their national economies. It is expected that joint scientic and technical programmes will be implemented at this centre. In 2008, the community members drafted the Innovative Biotechnologies intergovernmental programme. The programme will help the countries use the latest high-efciency technologies to produce competitive bio products for medicine, agriculture and environmental protection.
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On Kazakhstans initiative, the Eurasian Economic Club of Scientists was established to unite scientic forces and contribute to the communitys development. The creation of a Union of Central Asian States, which was rst proposed by Kazakhstan in February 2005, will also promote integration within the EAEC. Central Asian countries have signicant potential for further integration in the real sector of economy and to expand cooperation in the cultural and humanitarian spheres. The unions establishment would be an important move towards this and, subsequently, ensure stability and security in the region [65, p. 47] We believe the idea of the Union of the Central Asian States does not contradict other integration associations in the post-Soviet area, for example, the Eurasian Economic Community. On the contrary, if the idea is successful, the union could become the EAECs southern bloc and give a powerful impetus to integration processes within the community and the Single Economic Space in the future. Thus, Kazakhstan is conducting an active foreign policy. The realisation of our countrys initiatives will become a key factor for strengthening stability and security in the region, developing good neighbourly relations and mutually benecial cooperation, which is very relevant considering the present global situation. The EAEC countries coordinated economic policy, the formation of the Customs Union and the successful implementation of joint scientic and technical programmes will help the sustainable development of the communitys member states. At present, the EAEC is an effective regional bloc and a driving force of integration in the post-Soviet space.

3.16. Kazakhstan and the CICA The Central Asian countries integration into the global community made it necessary to elaborate on new measures to promote the Asian subcontinents sustainable development. Asian countries, a number of which have quite complicated relations with each other, bear the weight of historical problems caused mainly by their colonial past and modern ethnic, religious, economic and political disagreements. Kazakh President Nursultan Nazarbayev proposed the convening of a Conference on Interaction and Condence-Building Measures in Asia (CICA) at the UN on 5 October 1992 and 20 Asian countries supported the idea and joined the process. Eight more countries and three international organisations became observers. Initially the conference was designed as an Asian equivalent of the OSCE, however, some CICA members have not only contradictory but also conicting relations with each other. In promoting the CICA, the Kazakh authorities have always referred to the fact that Kazakhstan, as a young state, does not have disagreements with any Asian country and, therefore, our country initiated this regional proposal and suggested that its meeting point and headquarters be located in Kazakhstan. Undoubtedly, the CICA, designed to pursue a long-term and laborious task, must closely cooperate with other Asian regional organisations. In this context, the organisation is a pre-emptive step to create a comprehensive security system in Asia. Asia is an extremely mosaic continent with a big variety of political, economic, ethnic, cultural and civilisation differences. To full this task, it is necessary to nd a common platform from which to build a functional security system for the whole region. At present, the world is following the path of regional cooperation. The examples of efcient economic cooperation in North America (NAFTA), Europe (EU) and Southeast Asia (ASEAN) prove integration bodies powerful positive inuence on the creation of regional security systems. Asia is currently very fragmented geopolitically but the idea of the CICA is designed for the future. It is necessary to start by creating effective mechanisms for the conferences functioning.
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Countries like China, Japan, India, Iran and Turkey and regional alliances, such as the Organisation of the Islamic Conference, the League of Arab States, ASEAN and others, play a special role in ensuring security in Asia. Mutual interests and economic efciency could become a fundamental basis for creating the Asian security system. During the second half of the 20th century, a number of countries, including the former USSR, proposed the creation of a common security system in Asia. But the idea failed due to a number of reasons. Some of those initiatives were excessively comprehensive, which caused them to remain mainly declarative, and some did not have the cross-cutting issues capable of involving all participants. Some initiatives failed because of quite severe conditions for their implementation, for which conicting sides, primarily, and other countries with various political and economic systems were not ready. Others failed because of rivalry between global powers, further aggravated by global ideological confrontation. At present, there is no real global ideological confrontation; the bipolar system of international relations has broken down. Therefore, part of the aforementioned problems will not have a negative impact on the implementation of the CICA. The Declaration on Principles Guiding Relations between CICA Member States, signed by the ministers of foreign affairs on 14 September 1999, does not have an imperative approach, which may have made a number of provisions simply declarative. At the same time, considering the composition of the conference, it was unlikely that there would be a different result. Thus, the organisations basic goals were to expand the areas of common interests among the countries with various foreign policies and resolve problems affecting all Asian countries. During working meetings, Kazakh ofcials proposed a number of new provisions, which Astana believed would boost the bloc. One of the problems encountered in drafting joint documents was the participants diverse visions of resolving issues or the lack of common interests among some countries.
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To resolve this task, the organisation started drafting a catalogue of condence-building measures. The catalogue was meant to give participants a chance to choose and concentrate on a wide range of urgent issues and problems. Participating states are entitled to choose what is more important for them to solve at present. These include issues related to condence-building measures in the military and political, economic, environmental and humanitarian areas, as well as the ght against new challenges and threats. Ten years of Kazakhstans efforts to implement the idea resulted in the conferences rst summit of heads of state and government in Almaty on 4 June 2002. The Kazakh leaderships foreign visits, special working groups regular work, special envoys missions and meetings of diplomats and experts have all been directed towards boosting the CICA process since its establishment in 1992. The summit participants signed the Almaty Act and issued the Declaration on Eliminating Terrorism and Promoting Dialogue among Civilisations. Astana believes that it will be useful and important for the conference to use the resources of the Shanghai Cooperation Organisation and the Collective Security Treaty Organisation. Kazakh President Nursultan Nazarbayev said that much has already been done as part of the Shanghai Cooperation Organisation and this organisation can become an effective tool to ensure security and condence across the vast Asian continent [66]. At the rst summit, Kazakhstan suggested that the CICA observers, including Japan, Malaysia, Vietnam, Indonesia and Thailand, become fully-edged members. This would promote the organisations successful work as a continental body. The Almaty Act denes the CICA as a forum for a dialogue, consultations, decision-making and implementing measures based on a consensus on problems regarding security in Asia. In addition, participants announced that they regard the CICA as a unique Asian forum incorporating countries of diverse cultures and traditions, which makes it one of the most important mechanisms for the promotion of dialogue among civilisations and cultures. The CICA member states intend comprehensively and actively to develop this dialogue,
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taking into account the fact that Eurasia was not only the cradle of some major world civilisations, but also served as a bridge between them [67]. The catalogue of condence-building measures was adopted by the foreign ministers of the participating countries on 22 October 2004. It is no less important that the CICAs ideology is based on the principle of cooperative security. The ideas of collective security with a strict policy of bloc allegiance, which was characteristic of the two world wars and during the Cold War, is no longer topical and reect the past epoch, the organisations ideologues believe. In other words, cooperative security implies that participating countries should not defend themselves from third parties but maintain peace and stability and resolve existing conicts and prevent possible ones. In particular, the declaration of principles says that member countries stress that any bilateral or multilateral military agreements must not be directed against any third party and must not undermine other states security interests [68, p 20]. In December 2005, Almaty hosted a session of the special working group, which considered the catalogue of condence-building measures in three dimensions and new challenges and threats. In addition, a crucial issue was to create the conferences secretariat and its technical and nancial coverage. With its excessively diverse political, economical and cultural nature, the Asian continent has always been and remains a bundle of contradictions. However, the CICA is overcoming the inertia of traditional approaches, destroying stereotypes and the scepticism of observers and experts. Naturally, it is too early to speak about a panacea for conicts and contradictions in Asia. It is obvious that one should not expect from the Almaty Act more than what the conference members have so far agreed to. At present, the basic document is important enough and could become a starting point for future talks. The signing of the agreement on the CICA Secretariat, with its headquarters in Almaty and Astana, at the second summit on 17 June 2006 made a signicant contribution to the strengthening of the
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conference as an institution. In addition, the summit appointed the secretariats executive director. The summit also approved the membership of Thailand and South Korea, which joined the conference in 2004 and 2006 respectively. The declaration of the conferences second summit proclaimed 5 October CICA Day. The summits nal document expressed support for Asias candidacy for the post of the UN secretary-general. It is remarkable that South Korea was then represented by its Minister of Foreign Affairs and Trade Ban Ki-moon, who was elected UN secretary-general in early 2007. We hope that the CICA will become a strong cooperation force in resolving threats to security in Asia like the OSCE in Europe, Ban Ki-moon said [69]. At the 62nd session of the UN General Assembly on 12 November 2007, the conference was granted observer status in the UN. Kazakhstan regards the conference as a ground-breaking forum of its kind for discussion and exchange of views. This forums basic objective is to set up a constructive dialogue on security and condence-building on the Asian continent. In Asia, where the most formidable problems have intertwined into a complicated web, it is difcult to reach consent over the whole range of security issues. Therefore, the CICA participants must, rst of all, focus on the common, most current and controversial issues. Taking this into account, the second summits declaration emphasised the conferences role as a versatile mechanism for developing common approaches to security and cooperation matters based on a consensus [70]. Therefore, the establishment of the secretariat in Kazakhstan was the basic result of the second summit. Astana will continue to chair the conference until 2010, when the third summit is due. The development of the CICA structures will make the organisation speedy and timely and help draft a catalogue of condence-building measures and principles of cooperation security function. The CICAs organisational development involves the solution of issues relating to funding, research and analytical support and the examination of decisions adopted.
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The CICA ministers of foreign affairs held their third meeting in Almaty on 25 August 2008 and summarised the results of their performance. They also welcomed Jordan and the UAE as new members of the CICA and adopted the declaration entitled the CICA Progress in Implementation of Condence-Building Measures. With continued interest from the member states the CICA process may become a forum for dialogue between the parties involved with a possibility of becoming an international law-making institution. The implementation of the idea is capable of becoming a basis for creating a regional security system and speeding up processes of economic, cultural and social cooperation between Asian countries.

References 1. .. // www.president.kz 2. - // http: // www/mid./ru 3. . 50- . , 2006, 1 . 4. .. .. . , , 4 2009 . // www.kremlin.ru 5. . XXI . , 1996. 6. . , 2000. 7. . 11- . , 13 2008 . // www.centrasia. ru/news 8. : . , 2005. 9. . . , 20 2009 . // www.parlam.kz. 10. .. , 2006 . // www.akorda.kz.

11. . // www.osce.org. 12. . . , 20 2009 . // www.parlam.kz. 13. : . , 2001. 14. .. 5 2005 .; .. . .: , 2008. 15. . 2009, 28 . 16. - // http: // www/mid./ru 17. . // . , 2006. 18. . 2005, 25 . 19. . .. // http: // www. mid.ru 20. . . , 2001. 21. .: http: // ru.government.kz/site/ 22. .: www.russian.people.com.cn; // http: // www.fmprc.gov.cn 23. .. . , 2006. 24. . 6 2004 . 25. .. (1985 2002 .): . . 2- ., . . : , 2003. 26. 11 2001 . // http: // www.mfa.kz 27. . // http: // ru.government.kz 28. . // . 2007, 3 . 29. .: // http: // www.stat.kz/ 30. 16 2009 . // www.inform.kz

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31. . (19911999). , 1999. 120 . . 32. 32. // http://ncu.at.kz. 33. , -. . , 1999. 34. // http://www.mfa.kz 35. // http: // www.stat.kz 36. . 2007. 1 (02). . 39. 37. // http: // portal.mfa.kz 38. .. . : , 2001. 39. // http: // www. kazenergy.com 40. .. . : , 2001. 41. // http: // portal.mfa. kz 42. - . : , 2006. 43. // www.mfa.kz 44. .. : . : ii, 1997. 45. 1214 2003 . // . 2003, 14 . 46. // . 2004, 20 . 47. . // Analytic. 2008. 4. 48. .. : . : ii, 1997. 49. . 50. .. 47-

(-, 5 1992 .) // // www.akorda.kz 51. // . 2002, 18 . 52. 63- . 23 2007 . // www.un.org 53. .. . : , 2001. 54. 21 2000 . // http // cis.minsk.by/ 55. 2020 . // http: // cis.minsk.by/ 56. // htpp: // www.centrasia.ru 57. 15 2001 . // htpp: // www.sectsco.org 58. 5 2005 . // htpp: // www.sectsco.org 59. 16 2007 . // htpp: // www.sectsco.org 60. // http: // www.ca-news.org 61. . // . 2009, 2 . 62. . / . . .. . : , 2004. 63. .. 22 2008 . // http: // www.akorda.kz. 64. // . 1998. 2. 65. .. // -. 2005. 3. 66. .. // www.mfa.kz 67. . , 4 2002 . // www.mfa.kz

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68. , // : (). : , 2001. 69. . // . 2006, 1 . 70. // : . , 2007.

CHAPTER 4. KAZAKHSTANS ECONOMY 4.1. Strategy for Economic Reform The grave socioeconomic crisis of the late 1980s and early 1990s broke down the USSR and economic ties, and accelerated unemployment and ination. It was time to take decisive steps to overcome the existing misbalance and reform the economy. The rst stages of the economic reform aimed at overcoming the crisis and ensuring stable development of the necessary institutes of the new economic system. From 1992 to 1997, the most important, backbone reforms were effected, including economic liberalisation, privatisation, the building of a market infrastructure, introducing the national currency and developing the nancial system, as well as the tax and budget systems, and the attraction of foreign investment.
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These reforms and anti-crisis programmes fostered the expansion of the market economy and formed the basis for macroeconomic stabilisation and the transfer to a new stage of development. The Kazakhstan 2030 Development Strategy announced by President Nazarbayev in October 1997 was the most important factor in determining a logical route for the nations progress. Later on, midterm strategic plans and programmes were prepared in order to attain the priorities set by the Strategy. From 1998 to 2006, the dynamics of the key macroeconomic indicators was stable. GDP, industrial production, investment, foreign trade, gross agricultural produce, and other economic indicators were steadily rising. By 2007, the rate of economic growth averaged 10%. GDP per capita exceeded $6,800 compared to $1,445.9 in 1997 (an almost vefold increase). Trade in the same period grew 5.4 times, including exports 6.6 times and imports 4.2 times. As the economy stabilised, important macroeconomic measures were taken. These included the improvement of tax laws, the introduction of a savings pension system, the formation of a stock market, and the development of a two-tier banking system. At this stage, a new objective was set: to diversify the economy, make effective use of environmental assets, and encourage the advancement of knowledge-intensive high-tech processing production. The strategic approach to the use of the countrys natural resources resulted in the creation of the National Fund in August 2000. Its purposes are to ensure stable socioeconomic development, accumulate nance for future generations (savings function), and ease the economys exposure to unfavourable external factors (stabilising function). Today, the National Funds reserve exceeds $25bn. The current stage of Kazakhstans economic development is determined by the Industrial and Innovation Development Strategy for 2003-2015 prepared in 2002. This comprehensive programme aims at economic diversication and the transfer (in the long term) to a service and technological economy. The diversication of industries and exports required the creation of special development institutions. The Kazyna Sustainable
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Development Fund and the Samruk Kazakhstan Holding for State Asset Management were set up to ensure the systemic and coordinated functioning of Kazakh national companies and government development institutions. The main principles of the national holding and national management company are to enhance the competitiveness and economic activity of companies, to introduce the best corporate governance practices, and to assist the government in advancing companies. The key activities of Kazyna are the development and implementation of the strategy to improve the competitiveness and export opportunities of small, medium and large businesses in Kazakhstan, create the conditions and stimuli for businesses to enter the global market, form export niches, and advance the nations infrastructure. The nancial and innovation development institutions under Kazynas management include the Development Bank of Kazakhstan, the National Innovation Fund, the Investment Fund of Kazakhstan, the Corporation for Export Development and Promotion, the State Export Credit and Investment Insurance Corporation, Damu Small Business Development Fund, Kazyna Capital Management Fund, and Kazakhstan Investment Promotion Centre. Kazynas development institutions take a proactive part in the implementation of promising investment, industrial, and innovation projects in the framework of the Diversication of Kazakhstans Economy through the Development of Clusters in the Non-Extractive Sectors programme (the Cluster Initiative) launched in 2004, and the 30 Corporate Leaders Programme prepared in 2007 to further modernise the economy. The objective of these programmes is to consolidate the efforts of businesses and the government to create new production and upgrade existing production so as to ensure diversication and enhance the export potential of the non-primary sector in the medium term (before 2015). Samruk Holding consolidated the government stakes in Kazpochta (the national mail operator), KEGOC (Kazakhstan Electricity Grid Operating Company), Kazakhtelecom (the national telecommunica227

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tions operator), Kazmunaigas (the national oil and gas company), and Kazakhstan Temir Zholy (the national rail company). The main purpose of the holding is to prepare and implement a strategy for the development of the real sector that would meet the countrys interests, and to maximise the long-term value of the companies. The uniqueness of Samruk, which is the rst such association in the CIS, is that it combines the stability of a government economy with the dynamism of a business-orientated company. For objective economic and geographic reasons, Kazakhstan pays particular attention to uniform regional development, and effective territorial and economic organisation of regions. To this end, the Territorial Development Strategy until 2015 was prepared in 2006. To strengthen the institutional base of this fundamental strategy, it was decided to set up regional development institutions in the form of social and business corporations. Compared to commercial corporations, their main difference is that they reinvest their prots to attain the social, economic, or cultural goals of the region in the interests of which the corporation has been set up [1]. In 2007, seven social and business corporations consolidating geographical regions were set up in Kazakhstan. Their operations have already produced results. The strategic approach to the advancement of the socially orientated economy helped Kazakhstan form the conditions for quality economic growth, improvements in living standards, and the development of competitive sectors. Further efforts will aim at deepening diversication, strengthening production infrastructure, and enhancing government support for business activities. This solid base will help counteract external challenges more effectively. The current stage of Kazakhstans economic strategy is determined by the need to overcome the effects of the global economic crisis. The results that were earlier attained through the nations economic policy allow one to conclude that the country will successfully pass this crisis stage. As a part of the global economy, Kazakhstan was also exposed to the effects of the global nancial crisis of 2007. In the autumn of 2007,
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the nancial sector faced problems that resulted in cuts in lending for shared construction and to small and medium businesses. The shortage of liquidity affected the rates of industrial growth, which fell to 4.5% in 2007. The government took urgent steps to stabilise economic development $4.6bn was allocated to improve situation in the nancial sector. The second wave of the nancial crisis stepped out the global nancial system, with an adverse effect on the real sector. This resulted in a signicant slowdown in the global economy and a respective fall in the global demand for goods and services. To stabilise and revitalise the domestic economy, Kazakhstans government had to take additional measures. On 25 November 2008, the government of Kazakhstan approved the Plan of Action to Stabilise the Economy and Financial Sector in 2009-2010 (the Anti-Crisis Programme) nanced from the national budget and the National Fund. A total of 2.2 trillion tenge, or about 20% of GDP, is expected to be injected into the economy. The main operator of the Anti-Crisis Programme is the Samruk-Kazyna National Welfare Fund, which was set up in 2008 following the merger of the Samruk Kazakhstan Holding for State Asset Management and Kazyna Sustainable Development Fund. Samruk-Kazynas main task is to foster the development of Kazakhstans economy against the background of the global crisis, using the nancial and other resources of national development institutions. Today, the stability of the nancial environment, which is the key element of the economy, is extremely important to our country. Finance is often referred to as the circulatory system of the economy, and every breakdown in this system adversely affects the activities of the whole complex. A total of $4bn was allocated to support the nancial system. This money was used to additionally capitalise the four leading banks (Halyk Bank of Kazakhstan, Kazkommertsbank, Alliance Bank, and BTA Bank) through the purchase of additional issues of their shares. According to the capitalisation terms, the money will be used to implement projects in the real sector.
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It should be emphasised that the government does not intend to nationalise the banks. Samruk-Kazyna will own up to 25% of their shares, and when the global nancial crisis eases the government will gradually withdraw the state holding (on market terms). Another important element of the support of Kazakhstans nancial system is the creation of the Distressed Asset Fund, also in the framework of the Anti-Crisis Programme. Its main task is to improve the nancial condition of commercial banks by purchasing distressed assets and managing them, including sale in the market. In 2008, the national budget spent 52 billion tenge, as the rst tranche, to capitalise the Distressed Asset Fund. In 2009, the funds authorised capital will be increased to 122 billion tenge, also from the national budget. The fund allows foreign investors to participate. The second most important objective of the Anti-Crisis Programme is to resolve problems in the real estate market. The programme contains measures to revitalise the construction market. In particular, the government will purchase and complete properties that are at least 20% complete. Money will be provided to renance mortgages with lower interest rates, for additional mortgage lending, and for the establishment of the Rental Housing Fund. Local executive bodies (akimats) and social and business corporations will take a proactive part in the implementation of this objective. The third task for the Anti-Crisis Programme is to support small and medium businesses. This is an extremely important objective for our country because small and medium businesses, being an engine of the economy, enhance its diversication and structural reconstruction opportunities. To support small and medium businesses, the National Fund will spend $1bn, which will be used to renance existing loans of small and medium businesses and issue new ones. In this case, the interest rate will not be higher than it was before the crisis (not more than 14%). Another factor that will encourage economic activity by the population will be the measures taken by the government to increase local content in large mining projects.
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The Anti-Crisis Programme is also expected to provide funds to develop the agro-industrial sector. This is a very important objective for Kazakhstan because 47% of its population lives in rural areas. To implement this, the National Fund will contribute $1bn, and the national budget a further $3bn. This money will be used to develop processing industries in the agricultural sector. An essential task of the Anti-Crisis Programme is the implementation of innovative, industrial and infrastructure projects. The National Fund will spend $1bn on these activities, and another $3bn is expected to be raised in foreign direct investment during 2009. The 30 Corporate Leaders Programme will also be pursued proactively. Signicant attention will be paid to infrastructure projects, which will help stimulate domestic demand and foster economic growth in the country. In addition, the Programme states that the government will use its best endeavours to preserve the real incomes of people, and ensure the performance of the Head of States order to raise social payments, pensions, and salaries to the public sector in 2009-2011. In other words, all social obligations will be discharged irrespective of the price of oil. It should be emphasised that, in counteracting the global economic crisis, Kazakhstan is gaining respective experience. When external sources of nancing are closed, strategic approaches and decisions are being found based on the countrys own opportunities and resources. This gives us condence that the country will progress further. The comprehensive implementation of the Anti-Crisis Programme will help Kazakhstan resist the existing globalisation threats and overcome the crisis, moving to a totally new level of development.

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4.2. Kazakhstans Natural Resources Kazakhstan has a huge resource potential, which plays an important part in its dynamic economic development. The country ranks rst in terms of the known reserves of zinc, wolfram, and barytes, second in silver, lead and chromites, third in copper, manganese, and uorite, and forth in molybdenum. In terms of its gold reserves, Kazakhstan is in the top ten. It also has about 8% of the global reserves of iron ore, and about 21% of global uranium reserves. The advancement of the oil and gas sector is particularly important to Kazakhstans economy. Today, the country is rich in hydrocarbons, holding 3.3% of global reserves. The recoverable oil reserves are 4.8 billion tonnes. The recoverable gas reserves, including the new elds in the Caspian shelf, reach 3 trillion cu m, while the potential reserves are estimated at 6-8 trillion cu m. In terms of hydrocarbon resources, Kazakhstan ranks second in the CIS after Russia. Oil and gas condensate production totalled 67.2 million tonnes in 2007 (up 4.1% on 2006) and 70.7 million tonnes, or 1.8% of the global oil production, in 2008 (Table 1). The balance of reserves and production suggests good prospects for the development of the countrys oil and gas sector. The forecasted oil production and exports are shown in Table 1, gas production in Figure 1. Table 1 Forecasted oil production and exports in Kazakhstan (million tonnes)
Description Production Exports 2007 (actual) 67.2 60.4 2008 (actual) 70.7 62.8 2010 (forecasted) 80.0 73.3 2015 (forecasted) 100.0 90.0

important to the advancement of Kazakhstans oil and gas sector. Oil production in this eld will start by 2013.
70 60 50 40 30 20 10 0 2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: Ministry of Energy and Mineral Resources of the Republic of Kazakhstan 29.6 33.7 38.9 42.6 43.2 43.9 45.1 53.3 61.5

Figure 1. Forecasted gas production in Kazakhstan (billion cu m) The countrys oil and gas production progresses in accordance with the state Programme for the Development of Kazakhstans Sector of the Caspian Sea, launched in 2003. The Programme set several stages of the development of oil and gas elds. The rst stage covered 2003-2005 and included exploration and the construction of onshore facilities. The second stage (from 2006 to 2010) plans the expedited development of elds. During the third stage (from 2011 to 2015), stable production is expected to be reached. In addition to the oil and gas blocks that are currently under development, more than 200 new promising blocks will be determined and offered to bidders. The mining and metallurgy sector is among the backbone industries of Kazakhstan and has high export potential. Its products, ferrous and non-ferrous metals, are in stable demand in the global market. Kazakhstans ferrous industry builds on major iron ore deposits, whose reserves reach some 700 million tonnes (8th place globally). Kazakhstans iron ore production ranks tenth after China, Brazil, Australia, Russia, the U.S., India, Ukraine, Canada, and South Africa,
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Source: Ministry of Energy and Mineral Resources of the Republic of Kazakhstan

The development of the giant Kashagan eld, which will be carried out by a consortium of major oil and gas companies, is extremely
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which account for more than 80% of global production. In the CIS, Kazakhstan is third after Russia and Ukraine. Manganese ore deposits are important to Kazakhstans ferrous metallurgy. The country boasts over 7% of global reserves. A peculiarity of Kazakhstans manganese ore is high manganese content (up to 25%) and low phosphorus and sulphur content, and as a result its treatment is cheaper. Non-ferrous metallurgy is also essential for the industrial development of Kazakhstan. This sector accounts for 11.7% of the total industrial production. The country is extremely rich in copper, lead, zinc, and other nonferrous, rare, and precious metals. Kazakhstans proven copper reserves are estimated at 37 million tonnes, or 5.5% of global reserves, and the country ranks fourth after Chile, Indonesia, and the U.S. Over 90 copper deposits were explored in Kazakhstan, the largest of which are Jezkazgan, Aktogai, and Aidarly. The countrys proven zinc reserves are 25.7 million tonnes, or 9.5% of global reserves. Kazakhstan is fourth after Australia, the U.S. and Russia. There are more than 50 deposits containing zinc, with polymetallic ores as a prevailing type. Kazakhstans proven lead reserves reach 11.7 million tonnes, or 10.1% of global reserves. Kazakhstan ranks sixth after Russia, Australia, Canada, the U.S. and China. Kazakhstans lead reserves are concentrated in more than 50 deposits. The country has signicant potential to develop its aluminium industry. Over 20 bauxite deposits were explored in Kazakhstan. The main portion of reserves is in Kostanai Oblast (Western Turgai and Central Turgai bauxite areas). Ten bauxite deposits are being developed. The mined bauxites are sent for processing to the Pavlodar Alumina Plant, whose products are exported mainly to Russia and Tajikistan. Aluminium production in Kazakhstan totalled 1,514,500 tonnes in 2006, 1,550,300 tonnes in 2007, and 1,713,400 tonnes in 2008.
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Kazakhstan is a large gold-bearing area. Its proven gold reserves reach 1,700 tonnes (4% of global reserves), making it seventh after South Africa, the U.S., Australia, Russia, Uzbekistan, and Indonesia. A total of 199 commercial gold deposits were explored in almost all regions of the country, including 127 primary, 40 complex, and 32 placer deposits. Copper and polymetallic deposits account for the main portion of the reserves (68%). The largest gold deposits are Vasilkovskoye (360 tonnes of gold in proven reserves) and Bakyrchik (277 tonnes). In the recent years, gold production exceeded 20 tonnes a year. Kazakhstans silver reserves were explored in more than 100 deposits, with the polymetallic (copper, lead, and zinc) ones accounting for the main portion (about 60%) of the reserves. Silver content in these deposits is 40 to 100 g per tonne. Approximately 25% of the countrys silver reserves are concentrated in cupriferous sandstone deposits (Jezkazgan and others), with silver content reaching 10-20 g per tonne. The portion of gold and silver ores in the total silver reserves and production is insignicant. The leading silver production companies are Kazakhmys and Kazzinc; the annual silver output reaches 700-800 tonnes. Coal production is key to the economy of Kazakhstan. In terms of proven coal reserves, the country ranks eighth and accounts for 4% of global reserves. Power-station and coking coal, which is the most valuable for industry, is found in 16 deposits. Kazakhstan is one of the top ten largest coal producers globally. In the CIS, it ranks third in terms of reserves and rst in terms of coal production per capita. Today, the countrys coal industry accounts for 78% of electric power generated in Kazakhstan, and virtually 100% load of the byproduct coke industry. In addition, it fully meets the utilities sectors demand for fuel. The leading coal producers in Kazakhstan are the companies from Pavlodar and Karaganda Oblasts (Bogatyr Access Komir, Vostochny Mine, Eurasian Energy Corporation, Maikuben-West, Coal Department of Mittal Steel Temirtau, and the Borly Coal Department of Kazakhmys).
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Kazakhstan is one of the world leaders in terms of proven uranium reserves, accounting for 21% of global gure. About 65% of these are suitable for treatment using the most progressive, environmentally friendly and cost effective method of in-situ leaching. In accordance with the Blueprint for the Development of the Uranium and Nuclear Power Industries of the Republic of Kazakhstan in 2002-2030, uranium production will reach 15,000 tonnes a year by 2010, making Kazakhstan the global leader. Thus, Kazakhstan has signicant natural reserves and noteworthy potential for the advancement of its primary sector and increasing its inuence on the global markets in raw materials.

4.3. The Investment Climate in Kazakhstan Having become independent, Kazakhstan faced a need to locate resources that would ensure a shift from a centrally planned economy to a market economy. Socioeconomic, political and nancial factors, or, in other words, a favourable investment climate, were to be created to raise the attractiveness of the investment market and reduce investment risks. This was achieved rather speedily. Steady ows of foreign investment into the mining sector contributed to the countrys economic growth. Today, investors are attracted by a countrys investment potential, low investment risks, stable legal framework and key macroeconomic characteristics (rich natural resources, workforce, xed assets, infrastructure, etc.), consumer demand, and other factors. Kazakhstan has the majority of the above features, which is why investment is growing at a signicant pace. To form a favourable investment climate, the legal framework was improved. The Laws On State Support to Direct Investment and On Investment were adopted to speed up the advancement of priority sectors. These statutes provide guarantees for direct investment, insurance against political risks, measures of state support, privileges and preferences. In other words, they create a favourable investment climate that corresponds to the strategic development goals of the country. Kazakhstans investment system opens all industries to investors. The government is particularly proactive in attracting investment. In the process of economic reform, not only were conditions conducive to the attraction of foreign investment offered. Large domestic sources of potential investment were set up including the system of commercial banks, the savings pension system, the stock market, and the Regional Financial Centre of Almaty. The adopted statutes and organisational measures strengthened the countrys investment attractiveness and stimulated the inow of foreign investment. As a result, Kazakhstan was the rst CIS country to receive an international investment grade.
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In order to ensure effective communication with investors the Foreign Investors Council under the President of Kazakhstan was formed. This advisory body ensures direct dialogue with investors working in Kazakhstan and expeditiously resolves issues related to the investment activities and investment climate. The foreign members of the Council include the top managers of international economic and nancial institutions, and foreign companies and corporations who are interested in long-term cooperation with Kazakhstan and who are working in the sectors that are a priority for the countrys industrial and innovative development. The Councils tasks include making proposals to the Head of State on the improvement of the investment climate and implementation of major investment projects. To full its objectives, the Council has set up ve joint working groups taxation, legislative issues, ongoing operations of foreign investors, improvement of the investment image of Kazakhstan, and the oil and gas sector. The working groups tackle various aspects of investment to make relevant recommendations to the members of the Council and government structures. The states proactive participation in building the favourable investment climate results in annual increases in foreign investment. During the rst nine months of 2008, foreign direct investment in Kazakhstan totalled $12.8bn, vs. $10.6bn in the same period of 2007, and $7.5bn in 2006. The experts estimate that, to date, Kazakhstan has received 80% of all direct investment in Central Asia. The World Bank included our country in the top twenty countries deemed attractive to investors. Investment in xed assets grows year by year. Because of the worsened external environment, measures were taken to activate internal sources, strengthen the state expenditure in the investment process, and stimulate domestic investment programmes. In 2007, the National Investors Council under the President of Kazakhstan was set up by a Decree by the Head of State, to work on the measures of state support to large business projects. This advisory
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body works to speed up economic diversication and modernisation, and implement breakthrough projects with the participation of domestic investors, taking into consideration the development trends in national and foreign markets. Samruk-Kazyna plays a leading part in consolidating domestic investment potential. The objectives of this fund include fostering investment activities in Kazakhstan, and the promotion of Kazakh investors abroad. Currently, every region of Kazakhstan implements or plans investment projects that are of socioeconomic importance to not only the region itself, but to the country as a whole. As a result of the governments proactive policy to raise investment potential, the percentage of the non-government sector in total investment continues to grow. As the market economy evolves, Kazakhstans private sector is solidifying its positions in investment and the portion of own funds is gradually increasing. From 1993 to July 2008, over $76bn was attracted in foreign direct investment. Two thirds of investment in Kazakhstan goes to the primary sector (mining and exploration), followed by real estate (over 10%), transport and communications (over 10%), and the processing industry (less than 9%). The fact that this structure has been preserved over a long time helped align interregional disproportions, and increase capitalisation of the previously underinvested industries and regions. However, in the long term, this can result in industry lagging behind. For this reason, the government is trying to diversify investment ows and attract more money into the processing industry, and into industrial and agrarian regions. Taking into consideration the pace of economic modernisation and the need to make full use of the nations investment potential, the state will also put effort into maintaining a favourable investment climate and improving the countrys investment image.

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4.4. Small and Medium Businesses Kazakhstan pays particular attention to the development of small and medium businesses. The government guarantees freedom of business and ensures its protection and support to it. Small business is an important element, whose condition and level of development inuences the sustainable economic growth of the country. The country has a legal framework for business development. State support to business aims at eliminating administrative barriers and ensuring that business activities can be conducted with ease. A host of statutes were adopted to govern the government policy to build a strong market economy. In order to create favourable conditions for the advancement of business (through the stimulation of domestic demand, and support to domestic enterprises), government purchases focus on local suppliers. The legal framework related to competition also strives to protect the rights of market players and consumers from monopolies, anticompetitive actions of government bodies, and unfair competition. The state Competition Protection Agency works to create favourable conditions for fair competition in Kazakhstans commodity markets to ensure their effective functioning, the development of a uniform economic space, free ow of goods, and the freedom of economic activities in the country. The business sector takes an active part in drafting and adopting statues, and improving the legal framework related to the development of business in Kazakhstan. This is done through the participation in the work of expert councils established by central and local executive bodies. Statistics says that the country has a little more than 1,000,000 small businesses, which altogether employ 1.7 million people. The government understands the need to develop this sector and encourages small and medium businesses by all means. It places production and public service orders, helps promote goods in the markets of other regions, and helps promote investment and innovative projects.
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The new Tax Code that took effect on 1 January 2009 provides tax preferences for all businesses that invest in the economy. It also lessens the overall tax burden on the non-primary sector and simplies tax administration, primarily for small and medium businesses. The resulting budget losses will be compensated by higher outputs in the primary sector. This will help raise the role and status of small and medium businesses. Social and business corporations are tasked with creating the conditions to strengthen cooperation between large regional enterprises and small and medium businesses who can offer certain goods or services as outsourcers. In this way, small and medium businesses clusters will be created. Additionally, social and business corporations will help promote the products of small and medium businesses in interregional and international markets. Their participation in projects ensures access for small and medium businesses to nancial, land, and technological resources, as well as to external markets, provides collateral guarantees from social and business corporations, and offers an opportunity to expand operations by founding joint ventures and grouping with manufactures of similar or related products. To encourage and support small and medium businesses in the process of diversication, state holdings have set up a committee for the outsourcing of non-strategic, non-core assets and operations of joint-stock companies with a government stake and of state enterprises, and for their transfer into a competitive environment. An essential element in the development of small and medium businesses are microcredits to the population that help attract nongovernment funds in the sector. In 1997, the government adopted a resolution to set up the Small Business Development Fund, which was reorganised in 2008 as the Damu Business Development Fund under Samruk-Kazyna. This fund develops and promotes long-term lending schemes with the use of government funds allocated for businesses. The Business Development Fund provided loans to 199 microcredit institutions. Its contribution to the support of microcredit institutions active nationally is 44%. As a result of the microcredits,
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in particular to socially vulnerable people, workplaces are being created and preserved. The country is now implementing a system to rate the freedom of business by region. These ratings should provide an objective estimate and reveal the barriers that hinder the advancement of small and medium businesses. Some administrative barriers have been already removed. Proposals have also been made for the long term that require discussion and amendment of the respective statutes.

4.5. Oil and Gas Production and Transport The top priority for Kazakhstans economic policy today is to solidify its positions in the regional energy space. Kazakhstan is one of the top twenty largest producers of hydrocarbons. The oil and gas sector accounts for up to 25% of the countrys budget. Hydrocarbon production is growing at a signicant pace. In 2008, 70.6 million tonnes of hydrocarbons were produced, up 90% on 2000. Over 80% of hydrocarbons are exported to world markets. In order to further develop the oil and gas sector, work is being carried out to forecast and discover new promising elds, and speed up their exploration, development and commissioning. Increased production of oil and gas requires the speedy development of transport infrastructure. Projects are under consideration to expand existing transport systems and build new routes to export Kazakh hydrocarbons. Because of the favourable prospects for the construction of pipelines, in planning hydrocarbon export routes Kazakhstan pursues a multi-vector policy which allows the most effective use of pipeline systems. The oil and gas sector has to solidify the countrys role as an inuential and responsible player in global oil and energy markets. Therefore, important objectives at present include strengthening the countrys energy security, ensuring reliable and safe transit for hydrocarbons, and developing international cooperation over pipelines. The ratied Energy Charter Treaty is key to the enhancement of the countrys export potential. This document sets forth the principles of unimpeded and non-discriminatory transit of energy resources an issue which is extremely to Kazakhstan as an intercontinental state. Hydrocarbons exported by Kazakhstan transit through many countries, primarily Russia. For this reason, it is important to strengthen the governments role in oil and gas transport. This also explains the participation of state companies in the capital of major transport companies, and the strategic importance of the oil and gas sector to Kazakhstans economy.
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Pipelines account for the majority of exported oil. Therefore, the top priorities of the countrys policy are to further develop oil and gas transport infrastructure, and to create new export systems and expand existing ones. At present the main routes for Kazakh oil are the Caspian Pipeline Consortiums (CPC) oil pipeline, Atyrau-Samara and Kazakhstan-China pipelines, and the sea transport system through the Aktau port. The 1,510-km CPC pipeline connects the Tengiz oileld with an oil loading terminal on the Russian coast of the Black Sea near Novorossiysk. This pipeline is the largest route for Kazakh oil exports. Over 131 million tonnes of oil have been transported since 2001 (the year it was commissioned), including 31.1 million tonnes in 2006, 25.6 million tonnes in 2007, and 25.8 million tonnes in 2008. Taking into account the forecasted increases in the production of hydrocarbons, Kazakhstan needs to expand the CPCs capacity up to 67 million tonnes a year (including 50 million tonnes for Kazakh oil). Kazakhstan and Russias energy authorities arrived at respective understandings in May 2008. Another important export route is the Atyrau-Samara oil pipeline, which opens access to the markets of Eastern Europe through the Baltic Pipeline System and the Druzhba System, and to the Black Sea ports. Atyrau-Samara exported 15.6 million tonnes of oil in 2006, 16 million tonnes in 2007, and 16.8 million tonnes in 2008. Because of the planned increases in oil production, in particular in Western Kazakhstan, Kazmunaigas and the Russian Transneft are considering raising Atyrau-Samaras capacity to 20 million tonnes a year, with a plan to expand further to 25 million tonnes a year. Currently, Atyrau-Samaras capacity can be expanded with the help of batching technology for pumping high-gravity oil from the Tengiz, Karachaganak and Kashagan elds. The Kazakh side is currently negotiating with Transneft to reach a decision on this issue. The Kazakhstan-China oil pipeline is being constructed in two stages. The rst stage included building the Atasu-Alashankou section to transport oil from Western and Central Kazakhstan and Siberia to China.
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The 813-mm Atasu-Alashankou pipeline runs 962 km. Its throughput capacity at the rst stage is 10 million tonnes year; it will be increased to 20 million tonnes. In 2007, the pipeline exported 4.7 million tonnes of oil. Investment in Atasu-Alashankou amounted to $806m. Construction was funded from authorised capital and loans raised against guarantees by the China National Petroleum Corporation (CNPC). On 28 June 2006, the rst start-up facility was commissioned. A total of 400,000 tonnes of oil were pumped to ll the pipeline. To full the second phase of the Kazakhstan-China pipeline project, the Kenkiyak-Kumkol oil pipeline will be built, the existing pipeline at the Kumkol-Karakoin-Atasu section will be reconstructed and modernised, and the Kenkiyak-Atyrau section will be reconstructed. As for sea transport, the most important element in enhancing oil exports is the Aktau port situated on the Caspian Sea. Today, Aktau is the only Kazakh seaport which has offshore oil loading terminals and oil transhipment facilities to ensure transport of Kazakh oil by the Caspian Sea to Azerbaijan (Baku), Russia (Makhachkala), and Iran (Neka). In 2008, the Aktau port shipped around 9 million tonnes of Kazakh oil. In accordance with an agreement between Kazakhstan and Azerbaijan, Kazakhstan is implementing the Kazakhstan Caspian Transportation System (KCTS) project, which includes the YeskeneKuryk pipeline and the Transcaspian system. The latter will include oil unloading terminals on Kazakhstans coast of the Caspian Sea, oil carriers for sea transport, oil loading terminals on Azerbaijans coast of the Caspian Sea, and connections to the Baku-Tbilisi-Ceyhan system. KCTS is expected to transport 500,000 bpd (23 million tonnes a year) at the initial stage, with a further expansion to 750-1,200 bpd (35-56 million tonnes a year). Oil transport to Iran is another promising southern route. Kazmunaigas, Total, JNOC and INPEX are implementing the Kazakhstan-Turkmenistan-Iran oil pipeline project, which will become
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an alternative route for Caspian oil being pumped to the Persian Gulf markets. The participants are currently considering Phase I of the project, which includes tanker transportation of oil (without the construction of the oil pipeline) from Kazakhstan to the Iranian port of Neka. A particular problem today is the overloaded Turkish straits. Too many carriers and tankers cross the Bosporus and the Dardanelles when passing from the Black Sea to the Mediterranean. Safe navigation and environmental requirements impose restrictions on the throughput capacity of the straits. In the long term, these will limit transport of additional quantities of Kazakh oil, hence the need for bypass projects. This is the reason why Kazakhstan is considering participating in the construction of the Burgas-Alexandropoulos and Odessa-BrodyPolotsk-Gdansk pipelines. In its energy policy, Kazakhstan is pursuing a multi-vector approach and paying particular attention to the creation of new export routes to supply hydrocarbons to global markets. These will become a signicant factor in raising the countrys export potential and strengthening its economic security. The gas sector is another important component of Kazakhstans economy. Natural gas, the known and estimated reserves of which reach 3.3 trillion cu m (including the recently discovered elds on the Caspian shelf), and potential resources 6-8 trillion cu m, is becoming an increasingly signicant energy carrier. The paramount goals of the plan to advance the gas sector are to multiply the socioeconomic effects of the increased production and sound management of domestic gas reserves, and to enhance transit opportunities of the gas transport system with a view to satisfying domestic demand and further raising export potential. Gas exports and transit are also important to Kazakhstan. The main gas routes are the Central Asia-Centre (CAC), Orenburg-Novopskov, Soyuz, Bukhara-Ural and Bukhara Gas Area-Tashkent-Bishkek-Almaty (BGA-TBA) pipelines. CAC transits Central Asian gas and exports Kazakh gas. Orenburg-Novopskov and Soyuz transit Russian gas and export Kazakh
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gas. Bukhara-Ural transits Central Asian gas, and BGA-TBA imports natural gas from Uzbekistan to Kazakhstan. The most urgent issue for the countrys gas transport sector is the reconstruction and modernisation of the gas pipeline system, in particular the CAC pipeline. CAC exports Kazakh and Central Asian gas to Russia, the Caucasus and Europe. Intergas Central Asia prepared an investment feasibility study on the expansion of CAC, Makat-Northern Caucasus and Okarem-Beineu pipelines. This paper provides for the implementation of projects to raise the throughput capacity of CAC from 54.8 to 100 billion cu m a year. Energy security and the energy decit of the southern regions are also very serious issues for Kazakhstan. The Beineu-Shymkent pipeline, which will supply gas from western regions to southern oblasts and further to Kazakhstans eastern border, is being constructed to consistently meet the southern regions demand for gas. Kazmunaigas is nalising an investment feasibility study of the project. Another signicant issue is the diversication of export routes. The Kazakhstan-China pipeline project is being developed, which will increase Kazakh gas exports to China and ensure the transit of gas there. In particular, it is expected that Turkmen gas will be transported to China through Uzbekistan and Kazakhstan to the Kazakhstan-China border (through Shymkent to Khorgos). The rst phase of the project was planned for 2007-2009. The Caspian and Transcaspian gas pipeline projects are also important to the advancement of Kazakhstans gas transport system. An agreement on the former was made at an international level by Russia, Kazakhstan and Turkmenistan in late 2007. The Caspian pipeline project envisages the construction of a new pipeline, including along the Caspian Sea shore of Kazakhstan, with a throughput capacity of 30-40 billion cu m a year. This project will increase Kazakhstan and Turkmenistans transit potential and increase exports of Central Asian gas to Russia and to global markets. The Transcaspian gas pipeline project is being considered in connection with the construction of the Baku-Tbilisi-Erzurum (BTE) pipeline in Southern Caucasus, which is complete and ready to pump
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gas. This route will allow the export of natural gas to Europe through Azerbaijan, Georgia and Turkey. The Transcaspian pipeline, the throughput capacity of which is expected to be 20 billion cu m, will export Kazakh gas to Europe, through a link to the BTE pipeline. However, it should be noted that this project involves some risks. These include the legal status of the Caspian Sea, which directly affects the policy of laying the underwater pipeline, as well as some political, environmental and technological issues.

4.6. Mining The mining sector is one of the key industries in Kazakhstan. Its particular features are the great variety of the extracted minerals and, correspondingly, the host of businesses that explore and develop deposits and provide logistical services to subsoil users. During Soviet times, Kazakhstan worked intensively to expand the raw material base and produce all the types of minerals that were ready for extraction. Major mining enterprises were set up and infrastructure developed. Todays strategic objectives call for the most effective use of Kazakhstans traditional advantages, which include the development of mineral resources. A signicant economic aspect of Kazakhstans mineral resources is that they often lie near the surface and can be extracted using cheap open-pit mining. In addition, in some instances, their occurrence allows complex usage. In Central Kazakhstan, for example, non-ferrous and ferrous ores, coking coal, limestone and re clay occur near each other. This combination is advantageous to the development of ferrous and nonferrous metallurgy and related chemical and mechanical engineering production. The Karatau Mountains, Rudny Altai, the Mugodzhar Hills, the Turgai Valley, and the Mangystau Peninsula are particularly rich in minerals. Kazakhstans huge natural resources make its mining sector one of the most important industries, determining its economic potential. The volumes of Kazakhstans mining production are signicant in global terms. Open-pit and underground mines and ore processing enterprises have been consolidated and are now the property of various groups. The leaders in the mining sector are Kazchrome, Kazatomprom, Kazakhmys, Kazzinc, Kazakhaltyn, and ArcelorMittal Termirtau. Central Kazakhstan is home to the Karaganda and Ekibastuz coal basins where coking and high-calorie power-plant coal is mined from open pits and underground mines. The Karaganda basin mainly consists of underground mines containing high quality coking coal
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with an ash content of 10% to 35%. The basin has large gas reserves methane has been extracted here for a long time. The basin also includes the Bogatyr mine, which is the largest mine in the world, producing 50 million tonnes of coal a year. The main coal producer is ArcelorMittal, an international metallurgical company. ArcelorMittal uses coal for its steel plant, which is also situated in the region. The Ekibastuz basin is situated to the northeast of Astana, in Pavlodar Oblast. This basin is the largest coal producer in Kazakhstan. Its coal mines are managed by Bogatyr Access, a state enterprise, which accounts for about 35% of the coal production in Kazakhstan. The Ekibastuz coal has high ash content, ranging from 35% to 50%. This coal is mainly used by households and to generate power at thermal power plants. As a cheap power-plant fuel, Kazakhstans coal is widely used in Northern Kazakhstan, the neighbouring Western Siberia, and the Urals. In the long term, Kazakhstans coal industry will progress even further. In addition to the reconstruction and re-equipment of mines in the Karaganda basin, the Maikuben brown coal eld (to the south-east of Ekibastuz) and the Priozerny mine (Turgai brown coal basin) have been launched since Independence. Kazakhstan ranks second globally in terms of known uranium reserves, which are concentrated in six uranium areas Shu-Sarysu, Syrdarya, Northern Kazakhstan, Caspian, Balkhash, and Ili. Kazatomprom, a state nuclear holding company, is the fourth largest producer of uranium in the world. In 2006, Kazakhstan produced some 5,300 tonnes of uranium, out of which 3,000 tonnes were produced by Kazatomprom. In 2007, production reached 6,937 tonnes. Kazakhstan is also a notable player in the world copper, uranium, titanium, ferroalloys and steel markets. In Eurasia, it is the only producer of chrome. It also has signicant inuence on the regional iron, manganese, coal and aluminium markets. Situated close to Russia, China and India and boasting huge resources, Kazakhstan has become one of the hottest regions on the global investment map.
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Kazakhstans mining sector has very promising economic potential. The advancement of the competitive mining industry enhances the taxable base and provides signicant prot for the national budget. The intensive development of the production and exports of raw materials in recent years has seen the national economy attain signicant economic growth and strengthen its investment potential. The countrys main objective today is to create the conditions conducive to the advancement of the industry, investment attraction, and construction of the relevant infrastructure, which will help make the most effective use of the industrys competitive edge.

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4.7. Processing Industry The advancement of high value-added production is one of the most important conditions for the dynamic development of Kazakhstan. This is the reason that the government is offering signicant support to the countrys processing industry. This sector is in an exceptional position, because it creates new technology that often contributes to the progress of other industries. Kazakhstans processing industry has a number of advantages. These include the host of idle production facilities where new production could be launched, cheap workforce with relatively high qualications, the signicant educational and cultural background of the population, and the countrys natural and geographical potential. The common development priorities in the sector are technical upgrades, energy and resource saving, technical and environmental safety of the technologies used, loss-reduction, and the effective use of mineral resources. Since 1999, Kazakhstans processing industry has been demonstrating steady growth. The most dynamic sectors were metallurgy and metalworking, production of construction materials and foodstuffs, and the production of oil distillates. One particular of the processing sector is that it is fully fed with local raw materials and fuel. Kazakhstan is rich in coal, oil, non-ferrous and ferrous metals, chemical raw materials, and the construction materials that are necessary for the advancement of heavy industry. The countrys diversied agricultural sector supplies raw materials for light industry and food processing. The most developed mechanical engineering sectors in Kazakhstan are heavy and agricultural engineering, manufacture of machine tools, instrument engineering (to a certain extent), and electrical engineering. Taking into account the needs of the economy, the sector manufactures equipment for the mining, coal, oil, metallurgical and food industries, and machinery for the transport and construction sectors. The countrys mechanical engineering enterprises also produce press and forging equipment (Shymkent), cutting machines (Almaty),
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batteries (Taldykorgan), centrifugal pumps (Astana), and X-ray equipment (Aktobe). The centres of industrial production are Almaty, Karaganda, UstKamenogorsk, Shymkent and Atyrau. Astana and Pavlodar are the important hubs in agricultural engineering. Foreign investment is being attracted into the mechanical engineering sector to set up the production of medical equipment, agricultural machinery, diesel engines, food industry equipment, electric motors, and other items. A total of 41 chemical enterprises operate in Kazakhstan. These include Kazphosphate, Kazazot, the Aktobe Chromic Compound Plant, Kaustik, Orica Kazakhstan, Nitrokhim, Ulba-Ftorkompleks, Reactive Phosphorus Compounds, SDT Group, and Yevrokhim. In the near future, some chemical enterprises will be consolidated into a nationalised chemical company which will manufacture fertilisers and other products. The products offered by Kazakhstans chemical sector are plastics, chemical bres and yarn, tyres for cars and agricultural machinery, a wide range of rubber goods, chromic compounds, calcium carbide, caustic soda, nitrogen and phosphoric fertiliser, phosphorus compounds (white phosphorus, sodium tripolyphosphate, phosphoric acids), synthetic detergents, sulphuric and nitric acids, and other items. The countrys chemical industry is built on a solid mineral base, which includes phosphate rocks, iron pyrites, barytes, bromine, sodium and potassium salts, sodium sulphate, oil processing and coking industry by-products, and sulphur dioxides produced by non-ferrous metallurgy. Today, the most developed chemical sectors are the mining-andchemical industry and the heavy chemicals industry. They extract chemical minerals and produce mineral fertilisers and inorganic (phosphoric and sulphuric) acids, respectively. The petrochemical industry is also on the rise. The country has three oil reneries in Atyrau, Pavlodar and Shymkent that produce petrol, diesel, fuel oil, aviation kerosene, petroleum bitumen, and other oil products.
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To meet the countrys demand for oil products to a fuller extent, another oil renery is expected to be built in Western Kazakhstan, not far from Aktau. The prospects of this sector are based on the government support and further investment in all-round oil rening. To advance Kazakhstans petrochemical sector, the National Industrial Petrochemical Technology Park (a special economic zone) was set up in Atyrau Oblast. This facility will rene crude from the Tengiz eld in accordance with an agreement with TengizChevroil. The construction sector manufactures cement, asbestos sheeting, asbestos-cement pipes, rolled roong, linoleum, sanitary ware, oor and decorative ceramic tiles, panels and other structures for largepanel house construction, kaolin for the paper industry, radiators, convectors, and other construction materials and structures. Kazakhstan has sufcient resources to manufacture construction materials. Cement manufacturing has become an important industry in Kazakhstan. Powerful cement plants were built in Shymkent and Semei, in the vicinity of which large cement clays occur. New high-tech brick and linoleum enterprises were launched. Glass plants and a host of other enterprises will be set up. The development of non-ferrous metallurgy in Kazakhstan is rather impressive. This sector started in 1928 when the rst major enterprises, the Leninogorsk Polymetallic Plant and the Karsakpai Copper Plant, were built. Ever since then, the extraction and processing of non-ferrous metals in Kazakhstan have been progressing at a signicant pace. Kazakhstans non-ferrous sector became a leading export industry because of the countrys rich mineral base. The main industries in the non-ferrous sector are copper, lead and zinc, aluminium, and titanium and manganese. Each of these industries includes mines, open pits and concentrating plants that often form large works. Copper extraction and smelting are concentrated in Central and Eastern Kazakhstan. The largest copper enterprises are the Balkhash
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and Zhezkazgan Mining and Metallurgy Plants. The lead and zinc, or polymetallic, industry occupies the east and south of the country. The Shymkent Lead Plant (based on the Karatau Mountains deposits) is operating in the south. The town of Tekeli is another important polymetallic producer. The aluminium and titanium and manganese industries have developed in Pavlodar and Ust-Kamenogorsk, where large thermal and hydro power plants generate large volumes of cheap electricity. Kazakhstans ferrous metallurgy includes integrated and non-integrated production. The country manufactures cast iron, steel, rolled iron, and ferroalloys. The largest ferrous metallurgy enterprise in Kazakhstan is the Karaganda Metallurgical Plant, which combines two integrated plants and uses iron-ore concentrates delivered from Kostanai Oblast and metal scrap. The plant manufactures cast iron, steel, pipes, railing, and sheet iron. Quality ferrous metallurgy is also being further developed. This includes the Aktobe and Aksu ferroalloy plants. Some metallurgical products made in Kazakhstan are the cheapest in the world. Metallurgical goods are also much cheaper than oil and gas in terms of transport costs because they do not require separate infrastructure (such as oil and gas pipelines). The metallurgical sector and the production of nished metalwork contribute to the enhancement of Kazakhstans exports. The countrys metallurgical industry is currently the most consistent competitor in external markets. The food and light industries also have signicant potential and are an important element in comprehensive economic development. During its years of independence, Kazakhstan has built a solid base to further advance these sectors. The most developed food sectors in Kazakhstan are the production of meat, bakery, our, and dairy products. Sugar production is developing in the south where sugar beet is grown. Other food industries include sh (Northern Caspian), confectionery, canned items, and winemaking. The most advanced light industries (out of the numerous that exist) are the manufacture of textiles (including cotton, wool and
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cloth manufacture), leather and footwear, felt, knitted fabrics, and sewing. The largest textile centres are Almaty, Shymkent, Karaganda, Kostanai, Taraz, Petropavlovsk, and Uralsk.

4.8. Space Industry In recent years, space operations have become integrated into economic processes. This tendency has required the government to develop a whole complex of space activities. Scientic experiments in the area of space technology, geophysics, medicine and biology, biotechnology and fundamental sciences have made it possible to use space achievements in almost every eld, from alerts to the possibility of environmental disasters to the creation of new virus vaccines. A wide range of services associated with space research and orientated to end users need to be developed. The country will have signicant economic benets if space research and other astronautic achievements are integrated into its economic activities. At the very beginning of the space era, the role of space exploration in human life could not have been imagined. Today, there is no area of human activities that could not make use of the results of space exploration. The industrial, agricultural, transport, energy, health, educational and telecommunications sectors all of them make use of the space industrys achievements. During the years after the rst articial satellite and Vostok 1 with Yury Gagarin aboard were launched, space exploration progressed signicantly. Today, over 40 countries produce and launch spacecraft demonstrating their scientic and technological potential. More than 130 countries use the results of space activities. The Baikonur Cosmodrome ensures the operation of the International Space Station. Space satellites now provide precise records of natural and land resources. Observations from space help predict yields, locate forest res and epicentres of earthquakes and oods. It is important to not only develop the orbital and earth components of the observation and navigation system, but also to ensure its effective use and integration with the programmes and plans for the acceleration of the countrys socioeconomic and innovative advancement. The mechanism of public-private partnership will be used to achieve this.
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Space activities in Kazakhstan are performed by the National Space Agency, which was set up in 2007. Its main objectives are to develop uniform state policy in the area of space activities and ensure its implementation; to exercise government control and coordination of space activities; to form and develop the space industry, including designated space systems, ground facilities, space research and technology, and human potential; to create conditions for the formation of a market in space technology and services; to promote international cooperation in the area of space activities; and to coordinate work related to Baikonur. The National Space Agency works through subsidiaries, which include Kazakhstan Garysh Sapary, the National Centre for Space Research and Technology, Baiterek, the Republican Centre for Space Communications and Electromagnetic Compatibility of Electronic Equipment, and the other state enterprises that participate in the management of Baikonur. The companies activities include fundamental applied research into the physics of near, deep and terrestrial space; implementation of intersectoral space programmes and projects; and creation and implementation of high-performance information and space technology to meet socioeconomic objectives. In 2004, to increase the efciency of the space industry, the government adopted the State Programme for Space Activity Development in 2005-2007. A similar programme for 2009-2020 is currently under consideration. These papers cover the following issues: the creation of a scientic space system and advanced space power installations; development of a scientic and experimental base for space activities and astrophysical research; development of a national system for satellite monitoring of Kazakhstans territory and crust; research aboard the International Space Station; and the upgrade of ground space facilities. A total of $6bn is expected to be invested in Kazakhstans space industry by 2011, and an additional 69 billion tenge in the National Space Agencys projects. This money will be used to set up the Baiterek complex, a spacecraft assembly and test complex in Astana, the KazSat communica258

tions and broadcasting system with ground control, and an earth remote sensing system with ground control. Retraining and professional development for space specialists, and preparation of technical regulations and standards in the area of space activities is also planned. In order to effectively advance its space activities, Kazakhstan is in close contact with Russia, one of the leading space powers. According to the agreement between Kazakhstan and Russia on the development of cooperation with regard to the effective use of the Baikonur complex, signed on 9 January 2004, Russias operation of Baikonur is extended until 2050. Cooperation between the countries is not limited to Baikonur. Other issues include increasing the environmental security of space activities and enhancing Kazakhstans participation in the implementation of ground and space programmes. A promising player in Kazakhstans space industry is the Baiterek joint venture, which plans to set up Baiterek, a new, environmentally friendly spacecraft complex at Baikonur to provide commercial launch services. In addition, the National Space Agency was working towards sending a Kazakh astronaut to the International Space Station in the autumn of 2009 to full a special scientic programme. The State Programme for Space Activity Development aims at the creation of a fully-edged space industry, a knowledge-intensive hi-tech sector fostering the industrial and innovative development of the national economy and solidifying national security and defence.

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4.9. Agriculture Agriculture is one of the key industries of Kazakhstans economy. In the north, the climate is favourable for the cultivation of spring wheat, oats, barley and other crops, as well as vegetables, melons, and a number of industrial plants (sunower, crown ax, tobacco, etc.). In the warm south, at the foothills and in the river valleys, cotton, sugar beet, yellow tobacco and rice are grown using irrigation. Gardens and vineyards bear fruit. Kazakhstans diverse nature provides signicant opportunities for the development of animal husbandry. Sheep, horse, camel and cattle breeding are the traditional types of husbandry in Kazakhstan. The desert and semi-desert areas in central and southwest Kazakhstan are widely used as seasonal pastures. In summer, mountain meadows in the east and southeast are used. As a priority sector of the countrys economy, agriculture has great potential and signicant reserves. Kazakhstans agrarian sector has the following features: the horizontal and vertical zoning of soil and vegetation is strongly expressed. The forest-steppe and steppe zones account for 10% of all land, semi-desert and desert about 60%, and mountain areas about 5%. Annual precipitation is low in all farming areas (150-320 mm); the total area of agricultural land is 222.6 million hectares, including 24 million hectares (10.8%) under the plough, 5 million hectares (2.2%) occupied by hayelds, and 189 million hectares (85%) by pastures; northern regions specialise in growing crops and animal husbandry; southern regions, where irrigation plays a signicant part, cultivate diverse plants (crops, oil plants, fruit and berries, vegetables, cotton); Kazakhstan is a major exporter of wheat and our (one of the top ten exporters globally); cotton and leather/wool have a sig260

nicant portion in the countrys agricultural exports (15% and 25%, respectively); animal husbandry is traditional in Kazakhstan. To strengthen the rural economy, state and industrial programmes to develop and support the agricultural sector and villages were adopted over the last ten years and fuelled with solid nance. Additionally, the Kazagro national holding was set up in 2006 to improve the system of state support. The holding includes the Food Contract Corporation, Mal Onimderi Korporatsiyasy, Kazagronance, the Agrarian Credit Corporation, the Fund for Financial Support to Agriculture, Kazagrogarant, and Kazagromarketing. The holding company works to implement the state policy of food security, provide credits and insurance for agricultural businesses, and develop the markets in agricultural produce and rural areas. These and other issues can be resolved if the policy of investment in Kazakhstans agricultural sector is improved, the agrarian production and service infrastructure is advanced, and horizontal and vertical ties and the respective production cycles are created in the agricultural sector. Currently, the development of exports and respective infrastructure, and control and stabilisation of domestic food markets are of particular importance. The strategic objectives for the investment policy are to diversify the sources of nance for the sector, expand the market in domestic and foreign capitals, develop the system of guarantees to creditors, and enhance the instruments of nancing, because the national budget still remains the main source of funds. Measures are also being taken to advance rural businesses and the system of nancial services to rural population, including with the participation of the commercial players in the nancial market. Kazakhstan is trying to make its agricultural sector export-orientated, which is why it is particularly important to develop the production and service infrastructure. This involves providing the sector with better equipment, introducing up-to-date processes and leasing schemes, encouraging associations of small agricultural producers, developing the full production cycle, advancing nonagricultural businesses in rural areas, and ensuring the institutional
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development of credit and consumer partnerships and cooperatives in rural areas. In addition, taking into account foreign achievements in the promotion of competitive agriculture, it is planned to develop an insurance system for the crop growing sector, provide agricultural players with access to exhibitions and fairs, and set up a network of information and advisory centres in rural areas. Cluster development projects (with regard to the cotton, horticulture, processing, and poultry breeding clusters) are being implemented within the framework of the governments strategic programmes. In particular, as a result of government support and private investors, projects are being implemented to set up a network of vegetable warehouses, greenhouses and poultry farms and build grain and cotton processing factories. The agricultural sector needs to enhance exports and diversify markets. This will allow the country to use the advantages of the sector when global demand for quality food expands. To this end, new grain terminals will be built abroad (in Iran, on the Black Sea, and on the Chinese border) and the Aktau seaport capacity will be increased. In addition, the government is providing support to innovative agricultural projects, as well as research and engineering. Kazagroinnovatsiya was set up for this purpose. This company consolidates agricultural research institutions, in particular in the area of grain farming, animal husbandry, food industry, forestry, farming, crop growing, shery, mechanisation, and agricultural economics. The consolidation of agrarian research and production potential will raise the effectiveness of new agricultural technologies and ensure their commercialisation, as well as the adoption of best world practices and their adaptation to domestic conditions. The priorities of agrarian science are based on the peculiarities of the countrys agricultural sector, its competitive advantages and specialisation. Environmental security, the quality of produce and restoration of natural resources are issues of particular importance.
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Agricultural businesses are also proactive in enhancing cooperation between each other. In 2005, the Agricultural Union of Kazakhstan was created in order to consolidate farms, public associations and agricultural organisations. The associations members are legal entities and their associations and unions, including the Farmers Union, the Poultry Farmers Union, the Grain Union of Kazakhstan, and associations of regional households. The association provides advisory and legal assistance to its members so that they can obtain grants and loans from the state or private nancial institutions or lease equipment. This is made possible because of the connections to state authorities and large private agricultural organisations. As Kazakhstans agrarian potential evolves, more attention is being paid to the quality of equipment in the sector. The demand for modern machinery and mechanical aids is being fuelled by changes in production processes, growing specialisation and concentration of production, and quantitative and qualitative characteristics of agricultural equipment. Animal husbandry is traditional in Kazakhstan. Domestic animals (horses, sheep, cows, and camels) were the basis of the Kazakh family economy for centuries. The government policy in the area of animal husbandry ensures stable increases in cattle and poultry population and improvements in their yields and reproduction. Work is being done to further raise competitive production in the sector in order to maintain the countrys food security and exports. Enhancements to the infrastructure for large animal farms are planned, which will include special feedlots for cattle and sheep, a network of slaughter facilities, and modern meat processing plants. Production and advanced processing of wool and leather will be developed. These projects will be implemented within the framework of public-private partnership and with the participation of foreign investors. Another important issue for animal husbandry is the expansion of the livestock breeding sector, which will include an increase in the specic weight of pedigree stock, development of specialised
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infrastructure, and modernisation of animal farms. The number of animal farms is expected to grow to 500. Kazagro provides nance to import pedigree livestock. Investment in agriculture increases year by year. The size of agricultural businesses own funds, loans and foreign investment grows in addition to budget allocations. Kazagro is an active participant in these processes. The holding company attracts domestic and foreign investment to increase Kazakhstans agricultural potential and provides systemic government support to upgrade the sector and make it competitive.

4.10. Trade Trade is one of the most prominent economic activities in Kazakhstan, essential for the successful development of its economy. Since 2003, the sectors share in the nations GDP has been between 11% and 12%. The trading sector employs up to 15% of the economically active population. Trade turnover is increasing year on year and the percentage of non-foods is growing continuously. The sector has the highest representation of private properties and small and medium businesses. It also provides full-time and part-time employment for women and young people, which is why it has so much social and economic importance. The trading sector in Kazakhstan is advancing in line with global tendencies: traditional forms of trade are being replaced by modern ones; large retail chains achieve dominance; the supply system is becoming vertically integrated; up-to-date sales, marketing and merchandising technologies are being used; and new forms of trade such as e-commerce and mobile commerce are emerging. All common forms of retailing are present in Kazakhstan. The range of goods offered in the market is continuously being expanded and the quality of services is growing. The number of modern trading oors is increasing with the development of the competitive market. Kazakhstans market is rather attractive for retail development. The contributing factors are the growing trends towards concentration of economic activities, increased economic density, improvements in personal incomes and living standards, and the implementation of urban development programmes. The retail segment (cash-and-carry stores, supermarkets, hypermarkets, trade networks) has been the most dynamic in the recent years. Shopping malls have also become very popular as places for family entertainment. Kazakhstan has a number of large chain stores and some malls franchised by international trading companies. Prior to 2006, individual entrepreneurs and markets dominated the retail market. Yet, as the consumer market develops, the trading
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companies percentage in trade turnover is on the increase. Trading in non-foods has demonstrated the most noticeable growth. Retail infrastructure also received powerful impetus from the quality development of trade. Modern warehousing, logistics and information services, and manufacture of equipment are on the rise. Todays retailing is characterised, primarily, by the changing balance between store-based and non-store forms of trade. The consolidation of retail businesses, the emergence of new forms of trade, and the transformation of the sector into a modern service industry are a positive inuence on the development of the sector. The arrangement of trading in fresh products in retail outlets is very important to Kazakhstan because individuals and small businesses get an opportunity to sell their products at fair prices. This is also a solution to the problem of the sectors social orientation. In addition, as Kazakhstan needs to develop its food potential and saturate the market with fresh products, the need also arises to systematise the efforts of wholesale purchasers and retail outlets aimed at the improvement of the supply chain at a regional level to make it export-orientated. These schemes have been successful in other countries and include specialised fairs, exhibitions and workshops where producers and traders can agree on the quality and quantities of supplies. Achieving this objective will help strengthen ties between trading and production systems, improve transport and logistics potential, enhance the range of products, and satisfy the demands of the market. The effective development of retailing depends on the level of wholesaling. The latter has a function of regulating trade ows across consumers and retailers located in various regions of Kazakhstan. The wholesaling infrastructure is continuously being developed. Previously scattered, this segment demonstrates better organisation of procurement and supply systems, as well as storage and batching, to meet the market demands. A highly organised system of trade and services is being built in Kazakhstan as a result of improvements in the trading policy of the state and the respective legal framework, as well as in the consumers welfare and purchasing power.
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The growing investment in the material and technical base of sales outlets contributes to the advancement of up-to-date infrastructure that meets the requirements of present-day trade, creates favourable conditions for domestic producers, and fosters effective ows of goods with minimum transaction costs. Business activities in the area of trade are not limited to trading and servicing. To improve quality, it is necessary to set up an informational infrastructure and a public system to provide producers, intermediaries and buyers with the latest information on supply and demand, and news from the sector. A consumer culture is also growing. Consumer rights institutions are trying to increase the transparency of service and trade companies. From the very rst days of the market economy in Kazakhstan, commodity exchanges emerged as a form of trade. They fostered the arrangement of domestic exchange of goods and information, on external markets in particular. However, this form of trade is not very popular. There are only ve commodity exchanges in Kazakhstan and their sales and turnover are not very high. Nevertheless, Kazakhstan needs to develop exchanges that would allow effective prices and terms of supply to be set, as well as quality requirements that would enhance the prospects of processing companies and the territorial dispersion of markets. A new commodity exchange is expected to be set up on the Regional Financial Centre of Almatys (RFCA) Special Trading Floor. The Special Trading Floor was established to develop the regional stock exchange in Kazakhstan, with the intention of becoming a link between the Asian and European exchanges. In the future, it is likely that a common commodity exchange will be organised with the Russian Trading System (RTS). Kazakhstan produces a great deal of exchange commodities and its convenient geographic location attracts traders from all over the continent. Because of changes in the global trade on exchanges, the CIS needs to create a relevant trading system and a pricing policy that would take into account the specics of production and marketing.
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The effective development of trade will be fostered by enhancements in logistics, which includes logistics complexes, the packaging industry, transport, warehousing, freight-forwarding services, and regional transport terminals. The transport and logistics sector is one of the priorities for the Kazakhstan-2030 Strategy. To this end, warehousing and logistics zones will be built near large cities to ensure the sale of goods. Essential communications will link these areas with the cities. These facilities will be built on the terms of public-private partnership. The possibility of setting up special economic zones will also be considered. In these zones, with the help of investors, distribution centres, warehouse stores (which will purchase goods from industrial or agricultural producers), and A- and B-class shared warehouses (managed by warehouse operators) will be developed. New forms of trade constantly emerge in global trading. E-commerce, which includes using mobile access to the Internet for shopping, is an innovation that is still underdeveloped in Kazakhstan. E-commerce has serious potential for the advancement of small and medium businesses. Signicant attention is being paid to the development of this segment, taking into account the territorial dispersion of population and manufacturers in Kazakhstan. The hospitality and household and business service industries are also developing impressively. The latest technologies are spreading rapidly and international companies are entering Kazakhstans markets. In the foodservice sector, almost all formats (restaurants, cafes, canteens, fast food restaurants and catering) representing many world cuisines are present. The number of businesses is growing at a signicant pace (almost threefold from 2004 to 2008, with the number of seats having grown more than fourfold and the value of services almost fourfold). The level of service is also growing as competition tightens. Mastery contests and festivals are being organised. The service sector is demonstrating similarly high results. Competition in this sector is the toughest and fosters the development of modern service techniques and organisation of business.
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4.11. Banking From its rst days, Kazakhstans banking system has been orientated towards international nancial market standards. At present, this is an established sector, able to play a proactive part in the concentration and redistribution of capital. From the very beginning, Kazakhstans banking system was formed in line with the best banking principles used worldwide. In January 1991, the Law On Banks and Banking in the Kazakh SSR was adopted to launch banking reforms. After the state sectoral banks had been reorganised and the national divisions of the Gosbank of the USSR had been vested with the functions of the central banks of sovereign states, and following the establishment in 1991 of the rst commercial banks, a two-tier banking system was formed in Kazakhstan. The rst tier of the new system included the National Bank of the Republic of Kazakhstan and its branches in oblast centres. The second tier comprised banks that were established from former specialised banks, and those newly established by individuals and legal entities. In the early 1990s, the number of nancial institutions commercial banks and organisations offering banking services soared. The number of commercial banks in 1993 exceeded 200. However, following tightened requirements for second-tier banks, in 2002 their number decreased to 38. On the other hand, the number of institutions offering banking transactions increased signicantly over the same period. Improvements in nancial control and supervision helped strengthen the nancial stability of second-tier banks and the reliability of the system as a whole. By November 1993, when the tenge was introduced, Kazakhstans banking system had been generally formed. This allowed the move to the countrys own monetary policy. To further strengthen the banking system, the Programme for the Second-Tier Banks Adoption of the International Financial Reporting Standards was approved in December 1996. In accordance with
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the programme, all banks operating in Kazakhstan were obliged to reach international levels in the sufciency of equity, liquidity, asset quality, management, accounting, and data input and transfer before the end of 2000. In November 1999, the Kazakhstan Deposit Insurance Fund was founded, which became the backbone of the Deposit Insurance System. Sixteen banks joined this system in early 2000. On 1 January 2004, the deposit insurance system became compulsory. This means that if a bank is licensed to accept deposits from individuals it is obliged to join the insurance system. Amendments to the banking laws made in April 2000 concerning the banking secrecy of individuals deposits also contributed to the improvements to the deposit protection system. These improvements fostered the attraction of peoples savings to banks. As a result, the volume of banking transactions increased, the banks competitiveness improved, and their services became cheaper and more accessible to the general public. At present, the population of Kazakhstan are active users of the services of second-tier banks (savings, payments, etc.) and this is a positive inuence on the countrys economic development. In 2004, the Agency for the Regulation and Supervision of the Financial Market and Financial Institutions was set up to better protect the users of nancial services, develop a stable infrastructure for the domestic nancial market, and create an effective and independent system of consolidated supervision. The National Bank assigned the Agency the respective functions and powers; the Agency now functions successfully as the national regulator. The National Bank implements state monetary policy, issues banknotes and coins, and exercises the central banks functions, foreign exchange regulation and control, management of gold and foreign exchange assets, and trust management of the National Fund of the Republic of Kazakhstan. Today, 37 second-tier banks operate in Kazakhstan. They have 380 branches nationwide and 15 representative ofces abroad. A total of 16 banks, including seven subsidiary banks, have foreign participants. Also, 33 representative ofces of foreign banks operate
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in Kazakhstan. This conrms interest in Kazakhstans market and the advanced level of the national banking system. Kazakhstans leading banks are striving to enhance their foreign economic transactions and their rankings by international rating agencies. These ratings help them attract capital from global markets. The banking sector is one of the key elements of the countrys economy. The banks assets equal 80% of the countrys GDP, deposits 30%, and loans about 60%. In comparison to the rst days of Kazakhstans banking sector, these gures have grown tremendously. Over the last year, the dynamics of the banking system slowed because of external inuences. It should be noted however that the regulators policy and state measures aimed at ensuring the stability of the banking sector helped prevent a sharp decline in the performance of the banks. Commercial banks in Kazakhstan offer a wide range of services for individuals and legal entities. These include traditional banking services as well as innovations such as e-banking and Internet banking. These services apply the most modern bank and service technologies. As the clients nancial expertise and trust in nancial institutions grow, the competition in the banking market toughens. This is causing the banks to improve their services and operations. In conclusion it can be said that Kazakhstans banking sector has been following market principles and is able to create the conditions necessary to accumulate the populations savings and further provide them in the form of loans to the real sector.

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4.12. Transport Ever since ancient times, people living in the territory of todays Kazakhstan and Central Asia have made use of the advantages of the proximity of the Great Silk Road running from the southeastern borders of China to the Mediterranean coast of Turkey a distance of more than 6,500 km. The Silk Road transited an enormous number of goods and cultural achievements. Kazakhstan has taken measures to strengthen its trade and economic relationships along the famous route. At present, Kazakhstan has transport (rail, motor, and air) links to China and can deliver goods from Europe and Asia to almost every point in China and Southeast Asia. It also has sea links to Iran and intermodal (rail and motor) connections to Turkey. Transport is extremely important to Kazakhstan. Its vast territory, low population density, long distances between populated localities, and remoteness from global markets make the transport system vital. Despite its landlocked location, Kazakhstan has high transit potential as a bridge between Europe and Asia. This is why there is a need to develop the transit sections of continental routes. This is the objective of the Transport Development Strategy until 2015 (Transport Strategy) approved in 2005, which envisaged the creation of a transport and communications complex complying with governments economic strategies. When this objective is achieved, Kazakhstans transport sector will become integrated with the global transport system and will ensure accessible, secure and rapid deliveries between the East and the West. Using the countrys transport potential will bring signicant income to the nation and transport companies and promote the advancement of a competitive transport and logistics sector. The sectoral strategic programme provides for the gradual development of a network of transport routes and interlinks. In addition, infrastructure facilities and all types of transport means will be upgraded. The strategy covers all types of transport (except pipelines); the development and effectiveness of these depend largely on state policy.
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The role of rail transport in Kazakhstan is very important. Railways account for the largest portion of freight and passenger trafc in the country. Kazakhstans rail network has four major longitudinal routes (Turksib, Trans-Kazakhstan (Petropavlovsk-Karaganda-Shu), Orenburg-Tashkent, and Kungrad-Beineu-Makat-Astrakhan) and three latitudinal routes (Trans-Siberian, Central Siberian, and Southern Siberian (with branch lines)). The total length of the railways in Kazakhstan exceeds 14,000 km. Fifteen division points (eleven with Russia, two with Uzbekistan, one with Kyrgyzstan, and one with China) connect the countrys rail system with neighbouring states. The Transport Strategy provides for the building of 1,600 km of new railways and the electrication of 2,700 km of the existing lines. The construction of the Druzhba-Alashankou cross-border railway passage between Kazakhstan and China and opening of the SaraghsMashhad railway passage between Turkmenistan and Iran has opened new transit routes on the Great Silk Road, from the Chinese ports of Lianyungang, Qingdao, and Tianjin on the Pacic coast, to Kazakhstan, Kyrgyzstan, Uzbekistan, Turkmenistan, Iran, and Turkey, and to the ports of the Mediterranean and the Persian Gulf. At present, goods are being transported along this route through Kazakhstan at a great rate. Kazakhstan has a network of motor roads totalling more than 88,000 km. Five international motor routes, with a total length of 17,000 km, cross Kazakhstan. All oblast cities and towns have automobile connections to all regional localities and settlements. The investment policy is aiming at the modernisation of the existing roads and construction of new international and local routes. Because of the countrys vast territory, air transport is extremely important and there is often no alternative. Kazakhstan is home to 22 large airports, including 14 international hubs. Freight and passenger transit between Europe and Asia is extremely important to the sector. Air Astana, the nations largest airline, provides both domestic and international ights. Leading international companies, including
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British Airways, Lufthansa, KLM, Turkish Airlines, and Iran Air, also operate in Kazakhstan. The length of Kazakhstans navigable waterways is more than 6,000 km. The water routes run along the Irtysh, Syrdarya, Ural, Kigach, Ili, and Ishim Rivers, the Bukhtarma, Ust-Kamenogorsk, Shulba, and Kapchagai Water Reservoirs, and Lakes Balkhash and Zaisan. The Caspian Sea links Kazakhstan with Russia, Iran, Azerbaijan, and Turkmenistan. Russian rivers and channels provide connections to the Black and Baltic Seas and further to Western Europe. The Aktau Port situated on the Caspian Sea is the only ice-free seaport in Kazakhstan and a strategic international hub. Grain, ores, coal, wood, and oil products are being transported by sea. Because of the extensive development of the oil sector, freight trafc on the Caspian Sea has grown signicantly. Pipeline transport is becoming increasingly important in light of the enhancement of the countrys oil and gas potential. The rst oil pipeline from the Dossor eld to the Rakusha port was commissioned in 1915 to pipe the Emba oil to the Caspian Sea. In the 1930s, when oil production increased, a 900-km Guriyev-Orsk oil pipeline was built. The development of oil elds in Western Kazakhstan called for the construction of the Uzen-Makat-Samara pipeline, with a link to the Atyrau Renery, and the Uzen-Zhetybai-Shevchenko pipeline. The Omsk-Pavlodar pipeline was laid in the 1960s when the Pavlodar Renery was commissioned. The major Central Asia-Centre and Bukhara-Ural gas pipelines cross Kazakhstan with links to the industrial centres in Western and Northern Kazakhstan. Southern regions are fed with gas from the 1,317 km Mubarek-Tashkent-Shymkent-Taraz-Almaty pipeline. Future pipeline development strategies will try to ensure that new oil pipelines provide stable supplies to the nations own reneries and transport Kazakh oil to external markets, using the routes that are the most convenient to freight forwarders. At present, the most signicant transport objective for Kazakhstan is to further improve domestic and interstate links and upgrade the majority of the existing infrastructure.
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To speed up these large-scale efforts that are of international importance Kazakhstan needs signicant investment in order to upgrade its railroads, ground facilities, and air trafc control system.

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4.13. Communications Communications are an integral part of Kazakhstans economic and social infrastructure. The main components of this sector are telecommunications and postal services. The largest providers of telecommunications and postal services in Kazakhstan are Kazakhtelecom and Kazpochta, respectively. The country has ve cellular operators, including three GSM providers. In accordance with the Access to Telephony Programme, by 2013, telephone and Internet connections, including those based on the modern CDMA-40 wireless format, will be made available nationwide. The number of Internet users has grown signicantly recently. However, only 14 out of 100 people in Kazakhstan had access to the Internet before 2008 and the 2008 gure was expected to increase to 21. The government has prepared and introduced a proactive E-Government Development Programme. The number of state services provided via web-portals to people and businesses is increasing every day. Some information services are already available electronically. These include information on real estate, and data related to the draft law on the national register of registration numbers databases. In order to successfully advance the Internet, the government has adopted the Blueprint for the Formation and Development of Kazakhstans Internet Segment (Kaznet) as a Single Information Space for 2008-2012. In 2006, the Samgau National Science and Technology Holding was set up, which is a determinant of how telecommunications, the Internet in particular, and technical progress will advance. The main objective of this organisation is to provide a basis for the creation of a high-tech society in Kazakhstan. To achieve this, equal access to knowledge, information, information and communications services, and technologies will be provided to all people irrespective of their social status, age, or location. The postal service is managed by Kazpochta, the national postal operator, which represents Kazakhstan in the global community. Ka276

zpochta offers a wide range of services, including mailing, nancial and agency services, and is a system that handles all information, money and commodity ows. The postal operator has the largest network of branches and these provide full coverage of the country, including districts and rural areas. Kazpochta was the rst operator in the CIS to develop a postal and savings system and is the only structure that has implemented it. The regional communications community acknowledged the success of Kazpochta and recommended Kazakhstans new postal system as a promising model for postal services in the CIS. Kazakhstans postal service presently employs approximately 21,000 people and has more than 3,200 ofces nationwide, including 14 oblast and four national branches. Kazakhstans postal service is now being intensively transformed into a multifunctional nancial supermarket, which will soon offer a full range of postal, nancial and other services, as well as into a general logistics operator, something that is essential for such a big country with high transit potential. Kazpochta is the only major network which has access to almost all of Kazakhstans population and has no alternatives. At the same time, courier, direct mail and mail order services are being developed. Major international logistics operators such as DHL, EMS, FedEx, and UPS have representative ofces in Kazakhstan. Oblast branches are connected to the corporate information network by optical bre lines (Frame Relay). All regional postal branches are interconnected by satellite channels. Since 2007, negotiations have been underway to transfer these channels to IP VPN ground lines provided by Kazakhtelecom. The economic success of a country is possible only if a modern IT infrastructure exists. The creation of this infrastructure needs to involve domestic engineers and producers. This is an objective necessity if an up-to-date IT infrastructure is missing, it will be impossible to enhance the economy. The development of a competitive communications sector ensures the harmonious progress of the economic space.
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4.14. Tourism When thinking where to go, tourists are attracted by natural landscapes, geographic peculiarities, cultural heritage, advanced infrastructure, and security. Kazakhstan has all the opportunities to become a country with a favourable tourism image. Kazakhstan is situated in the heart of Eurasia, at the intersection of the largest Asian and European countries. This favourable geographic location is very benecial for the development of international tourism. Kazakhstan has diverse tourism potential and unique opportunities to develop almost all types of tourism, from visits to historic places and ecotourism, including observation of rare species of ora and fauna, to adventure travel and other active types of tourism. The country has many unique natural preserves and national parks, over 100 therapeutic facilities, and more than 9,000 archaeological and historic sites. Kazakhstans tourism sector is an established structure, which is continuing to progress. This is conrmed by annual increases in the number of incoming tourists. The development of tourism is one of the priorities of the Strategy for Kazakhstans Joining the Worlds 50 Most Competitive Countries. The State Tourism Development Programme for 2007-2011 was adopted because the tourism cluster is one of the seven priority non-primary sectors, the advancement of which will raise the competitiveness of the country and enhance its economic diversication. A number of investment incentives and preferential treatments are provided and the visa laws are being improved. The countrys recreational potential allows the development of a host of promising sub-sectors. A list of twenty breakthrough projects attractive to tourists was compiled and is being implemented. The largest projects are the construction of the Zhana Ile tourist centre on the Kapchagai Reservoir, the Burabai complex in the Shchuchinsk and Borovoye recreational area, and the Kenderli Resort in Mangystau Oblast. Following the example of the U.S., who have made the National Aeronautics and Space Administration (NASA) a popular tourist
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site, Kazakhstan is developing the First Space Harbour on the Planet project in Baikonur. This project will include excursions into the history of the space industry. Other major projects include the construction of a chain of cheap tourist-class hotels in the regions. Twenty small hotels for 900 beds are already being built in Akmola Oblast alone. Another project envisages the construction of a 4,000-seat sports complex on the left bank of the Ishim River in Astana. The creation of a special economic zone in Mangystau Oblast is also being considered. A project has been prepared to develop beach and cruise tourism on the Caspian Sea, including building the Aktau City coastal town. Another promising project is the construction of the Kenderli Resort. Kazakhstans geographic peculiarities make it evident that the country has signicant potential for ecotourism. In particular, Kazakhstans diverse mountainous rivers are ideal for rafting. Tremendous work is being carried out in order to develop the ten most attractive tourist routes in the national natural parks, Altyn Yemel, Ile Alatau, and the Charyn Canyon in particular. The Great Silk Road routes are also being worked on as an area of cultural and educational tourism. A 1,200 km northern line of the Silk Road runs through Kazakhstan, from China to Uzbekistan. This section is a unique complex of historic, archaeological, and architectural sites. The ancient cities of Otrar, Sauran, and Turkestan were not only trade centres, but scientic, cultural, and religious hubs. Today, more than 300,000 people visit these places every year for educational and religious purposes. Hotels and caravanserais are being planned along the route, and mutual recognition of tourist visas in Central Asia is being negotiated. The launch of the Silk Road Pearl tourist train along the route Almaty-Turkestan-Tashkent-Samarkand-Bukhara-Urgench-MaryAshgabat-Almaty is also planned. In addition, Kazakhstan has world-class ski sites that can compete with the best ski resorts in the world. The most popular tourist sites are the Shymbulak ski resort, the Medeo high-altitude skating
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rink, and the Shchuchinsk-Borovoye resort, often called the Kazakh Switzerland. Asiada-2011 will be a powerful stimulus for the development of tourism. Sports facilities which will be built for the Asian Games in Almaty and Astana can then be used as tourist sites. As for international cooperation, 23 intergovernmental agreements on tourism are in effect now. Intergovernmental agreements with Slovenia, Lithuania, Moldova, and Cuba are being discussed. Agreements with Germany, the UK, South Korea, France, Japan, and the U.S. are being drafted. An important measure aimed at the development of international relations in the area of tourism is strengthening ties with the World Tourism Organisation. Cooperation in the framework of this authoritative structure will help Kazakhstan join the global tourism community in the shortest possible time, effectively form its tourism image, take part in the largest forums, and exchange technologies.

4.15. Foreign Economic Relations Kazakhstan is a fully edged participant in international economic relations. The number of its partner countries has grown signicantly, and economic ties have been established with many developed and developing states. Kazakhstan is moving steadily towards integration with the global market. Kazakhstans trade partners include European, Asian, American and African countries, and Australia. Since 1997 the geography of Kazakhstans foreign trade has changed noticeably towards enhanced relationships with foreign countries. This has had a positive inuence on Kazakhstans foreign economic activities. The dynamics of Kazakhstans foreign trade is shown in Table 2. Table 2 Kazakhstans Foreign Trade $ billion
2000 2001 2002 2003 2004 2005 2006 2007 2008 Trade, total Exports Imports 13.8 15.0 16.3 21.3 32.9 45.1 61.9 80.5 109.1 8.8 5.0 8.6 6.4 9.7 6.6 12.9 20.1 27.8 38.2 47.8 71.2 8.4 12.8 17.3 23.7 32.7 37.9

Source: Statistics Agency of the Republic of Kazakhstan

An analysis of Kazakhstans foreign trade proves that it is growing steadily. In 2008, foreign trade turnover was almost eight times as high as in 2000. The main consumers of Kazakhstans products in 2008 were Italy (16.7% of all exports), Switzerland (15.8%), China (10.8%), Russia (8.7%), France (7.6%), the Netherlands (6.5%), and Iran (2.9%). The largest portion of exports from Kazakhstan is raw materials. In 2008, mineral products accounted for 73% of Kazakhstans exports which shows that the country is still orientated towards primary production. Therefore, the priorities of Kazakhstans state policy are the modernisation and diversication of economic development. This
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was emphasised by President Nazarbayev in his State-of-the-Nation Address Through Crisis to Renovation and Development on 6 March 2009, Our future depends on further economic modernisation and the development of basic infrastructure. We will continue to nance and implement existing promising investment projects. [2] An important element of Kazakhstans foreign policy is deepening cooperation with the European Union. This is particularly signicant because of the extension of the EU and its readiness to activate political dialogue with Kazakhstan. The relations between Kazakhstan and the EU are leaning towards becoming stable and long-term. Kazakhstan is the largest of the EUs partners in Central Asia and the CIS. The most dynamic platform for cooperation is the oil and gas sector. In future, Kazakhstan is expected to become the largest supplier of Caspian oil and gas resources to European markets. In addition, trade and economic ties are being expanded in the area of transport, industrial production, and agriculture. An analysis of the trade between Kazakhstan and the EU shows that it is progressing positively (see Figure 2). The economic ties of Kazakhstan with Russia and China are also being developed.
35,000 30,000 25,000 20,000 15,000 10,000 5,000 0
1994 1996 1998 2000 2002 2004 2006 9 month 2008

Russia is Kazakhstans strategic trade partner and a stable and continuous investor in its economy. Trade between the countries accounts for 20% of Kazakhstans foreign trade. In 2008, trade turnover reached about $20bn, an increase of more than 50% on 2007. The dynamics of trade between Russia and Kazakhstan is shown on Figure 3.
25 20 15 10 5 0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

years

Source: Statistics Agency of the Republic of Kazakhstan

Figure 3. Trade between Kazakhstan and Russia ($ billion) At present, Russian investment ows into priority sectors such as industry, construction, nance, transport, and communications. According to the Statistics Agency, more than 3,000 businesses involve Russian capital. Russia is Kazakhstans main energy partner. The Protocol to the Agreement on the Delineation of the Northern Part of the Caspian Sea Floor, which was signed in May 2002, offered new prospects for oil and gas cooperation between Russia and Kazakhstan. The Protocol delineates the northern Caspian Sea between Russia and Kazakhstan and sets forth the principles of the joint development of the Kurmangazy (Kazakhstan) and Tsentralnaya (Russia) geological structures, as well as the Khvalynskoye eld (Russia). Kazakh oil is being transported by the Atyrau-Samara pipeline. The volume of oil pumped annually exceeds 15 million tonnes.
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years
Source: Statistics Agency of the Republic of Kazakhstan

Figure 2. Trade between Kazakhstan and the EU ($ million)


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The countries are the main shareholders in the Caspian Pipeline Consortium (CPC). Today, Kazakhstan is third after only Russia and Norway among non-OPEC suppliers in terms of oil exports to the EU market. Because of the increased production and sale of Kazakh gas, efforts were made to agree on gas processing in Russia and on using Russian transport infrastructure for exports. The forthcoming development of the Orenburg Gas Processing Plant, which will process gas from the Karachaganak eld, is very important. The volume of Kazakh gas to be processed at the facility is expected to reach 15 billion cu m a year. Russia and Kazakhstan are jointly taking part in the modernisation of the Central Asia-Centre (CAC) gas transport system. Within the programme for the reconstruction of the gas pipeline system, it is planned to gradually increase the CAC throughput capacity from todays 54.6 billion cu m to 80 billion cu m a year. China is also a signicant trade partner for Kazakhstan. Trade relations between the countries are very dynamic. In the rst nine months of 2008, bilateral trade reached $8.74bn. In Chinas foreign trade with Central Asia and Eastern Europe, Kazakhstan consistently ranks second to Russia. The dynamics of trade between Kazakhstan and China is shown in Figure 4. Energy is obviously one of the priorities for bilateral cooperation. The implementation of the Atasu-Alashankou oil pipeline project, which pumped 5.1 million tonnes of oil in 2008, was particularly important. At present, the Kenkiyak-Kumkol oil pipeline Phase II of the Kazakhstan-China pipeline is being constructed. The establishment of the Khorgos Cross-Border Cooperation Centre also contributed to the development of cooperation between the countries. The Kazakh government is negotiating the construction of the Khorgos-Zhetygen rail line. The need for this project was emphasised by President Nazarbayev in his State-of-the-Nation Address on 6 February 2008 [2]. The construction of the Khorgos Centre is essential for both Central Asia and the CIS (primarily Russia) as it will create conditions
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for the expansion of the post-Soviet countries trade and economic ties with China.
16 14 12 10 8 6 4 2 0 2001 2002 2003 2004 2005 2006 2007 9 month 2008

years

Source: Statistics Agency of the Republic of Kazakhstan

Figure 4. Trade between Kazakhstan and China ($ billion) The Western Europe-Western China transport corridor is another project with Chinese investment that is signicant for the development of Central Asias transit potential. This route is expected to run as follows: St. Petersburg-Moscow-Kazan-Orenburg-KyzylordaShymkent-Taraz-Almaty-Khorgos-Lianyungang. Its length will be 8,445 km, including 2,787 km in Kazakhstan. The Balkhash thermal power plant is another priority project with Chinese investment. Module 1 of the plant is expected to be commissioned by 2013, and Module 2 in 2016. However, we believe, that economic cooperation between the two countries has signicant potential for enhancement. Not only are the energy and transport sectors promising economically, but the processing industries as well. Construction materials, pharmaceuticals, light industry, agrarian sector, and innovations are also areas with good prospects for cooperation.

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References 1. .. 50- . . , 2006 . 2. .. . , 2009 .

CHAPTER 5. HUMAN DEVELOPMENT IN KAZAKHSTAN 5.1. Education The development of education and science is one of the strategic priorities of Kazakhstans state policy. They are a signicant inuence on the pace of economic, social and cultural progress and will determine the nations competitiveness in the forthcoming years. Almost all successful modern states that are proactively integrated with the system of global economic relationships banked on a smart economy. However, to create it, we need, rst of all, to develop our own human capital, said President Nazarbayev in his State-of-the-Nation Address New Kazakhstan in the New World. A Strategy for the Next Stage of Development [1]. To this end, the government has adopted a number of policies with the objective of making domestic education and science match
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the best international standards and meet the needs of economic and social modernisation. To achieve this, the government is taking measures to reform education and science, adapt them to modern requirements, and integrate them with global educational and scientic processes. Over the years of independence, Kazakhstans education system has passed through several stages and the following have been achieved: a legislative framework for the educational process has been formed; a differentiated, multi-tier education system (preschool, school, vocational, higher and postgraduate education) has been developed; the principles of, and approaches to, education management have been adjusted taking into account the objectives of the market and state development; a system of public and private schools and institutions of higher education has been formed to meet the basic needs for education; the National Education Quality System, which includes the unied national testing for school graduates, has been developed and adopted; educational institutions have been computerised and all schools and institutions of higher education are now being connected to the Internet; the mechanism of free and paid for education has been standardised; a mechanism of educational grants and loans has been created; Kazakhstans education system has entered the global educational space by joining the UNESCO Education For All initiative and the Bologna Convention; a three-tier higher and postgraduate education system (Bachelors, Masters and Ph.D. programmes) has been adopted; credit technologies for institutions of higher education have been introduced; distance learning is being developed; and
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the technical and nancial base of educational institutions has improved signicantly. Having joined Education for Alls (EFA) Dakar Framework for Action, Kazakhstan is now working to achieve the goals set by the World Educational Forum. In the recent years, global community has begun to pay signicant attention to the quality of fundamental education, which is an integral and paramount condition for improving the quality of life. The EFA global movement reects this process to the fullest extent possible. The countrys educational policy aims at ensuring the quality development of all people. The implementation of the EFA Framework for Action in Kazakhstan is conducive to the sustainable and comprehensive functioning of the sector, and its harmonisation with the strategies for the improvement of the quality of education. Kazakhstans education system is continuing to be improved. The legislative framework has been changed signicantly. The laws On Education, On the Rights of the Child in the Republic of Kazakhstan, and On Social and Medical and Pedagogical Correctional Support to Disabled Children have been adopted. In accordance with President Nazarbayevs State-of-the-Nation Address dated 19 March 2004, Towards a Competitive Kazakhstan, Competitive Economy, and Competitive Nation, the Blueprint for the Education system Development in Kazakhstan until 2015 and the State Education Development Programme for 2005-2010 were approved in 2004. The programme objectives are to modernise the national multitier education system, improve the quality of education, and meet the needs of people in pursuance of the nations Strategic Development Plan until 2010. In order to form an effective education model, the programme has set the following goals: transition to a 12-year school education and setting up of a system of vocational education for high school students; development of a new level post-secondary vocational education;
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development of a three-tier system of higher education (Bachelors, Masters and Ph.D. programmes) to be nanced through academic loans; and creation of the National System for the Education Quality Assessment. According to the Head of State, further reform of education is [] one of the most important instruments in ensuring Kazakhstans real competitiveness. The main criterion of success of the educational reform is reaching a level when every national of Kazakhstan, who has the respective education and qualication, is in demand in any country. We should ensure that quality educational services that meet world standards are provided nationwide. [2] Within the framework of this programme and in accordance with the Law On Education, the government is focusing on the development of preschool, school, vocational, higher and postgraduate education. Preschool education is important to develop communicative skills and speech in children, ensure their physical development, and prepare them for school. During the educational reform, the most signicant objectives were to determine and implement the measures that would protect childrens rights to preschool education. As a result, the preschool system has seen positive changes since 2000. The number of preschool institution closures has fallen, and many have been reopened (after kindergartens and day nurseries had been returned into municipal ownership). The number of children in preschools has grown over the recent years. Preschool preparation of children aged ve and six has been made compulsory and free of charge. This socially important resolution has enhanced the accessibility of education and provided an equal start for all children who enter school. At present, more than 80% of future students study in preschool groups at schools and kindergartens. Special private institutions (with English, ne arts, or music classes) are being set up for gifted children. To ensure equal access to preschool education for all children, the network of preschool institutions will be expanded with the help of
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national and local budgets and private investment. The introduction of low-cost preschool models, where children spend two to four hours a day in the institution, is planned. Kazakhstans preschool institutions are held in high esteem by parents and teachers, and have been positively evaluated by international organisations such as UNESCO, UNICEF, ADB, and the Russian Regional Development Bank (RRDB), and others. The priorities for school education are to ensure that free secondary education in state schools is available at all times to all nationals, that the quality of the educational process meets modern requirements, and that all children of school age study at school. School education is one of the key factors of socialisation, a persons involvement in social processes. It provides the fundamental skills and knowledge that are necessary for future professional activities or further education, as well as for the respective social status. School education has three levels primary, secondary, and high school, and is an essential element of the education system as a whole. An important issue for schools is the transition to the 12-year school programme, which will have three stages and will accept students from the age of six. This transition will be made in 2010. The Education and Science Ministrys Centre for 12-Year Education is now testing teaching and methodical materials in 52 schools nationwide. Educational standards, and teaching programmes, plans, and aids for the 12-year programme are being developed. To achieve this objective, international experience has been analysed and scholars from universities in the leading countries, authors of textbooks, and the best teachers have been involved. The National Centre for State Educational Standards and the Kazakh Education Academy, named after Ybyrai Altynsarin, have been set up to streamline the updates of educational materials and raise the quality of education. A tremendous amount of work is being carried out to achieve the objectives associated with the transition to 12-year school education. These objectives include shrinking the decit of available seats in schools and providing additional seats for the rst grade students
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(aged six); creating conditions that will allow specialised training in high school, in particular in non-graded schools and schools for disabled children; strengthening schools material and technical base; providing advanced training and professional development to teachers in accordance with modern requirements; and developing new standards, programmes and textbooks. To reduce the decit of seats, it was planned that about 300 schools and boarding schools were to be built in the three-year period from 2007 to 2010. In 2007, 76 schools were built; in 2008, 88 schools for 63,000 seats were commissioned under the 100 Schools, 100 Hospitals presidential programme; and another 102 schools for 69,000 students are expected to be built in 2009-2010. The Uchebnik Research and Methodological Centre has been launched. This organisation will provide textbooks for all levels of education, and ensure their theoretical examination and practical testing. Particular attention is being paid to rural schools. To ensure the comprehensiveness and quality of education in non-graded schools, the number of mixed classes at the secondary and tertiary levels will be gradually decreased. There are plans to build specialised boarding schools in rural areas for children from nongraded schools. As ordered by the Head of State and in accordance with Governmental Resolution No. 213 dated 13 March 2004, in 2004 Kazakhstan adopted the unied national testing system which has become a tool of independent external control over students expertise. Unied national testing combines a graduation examination in schools with entrance examinations for colleges and institutions of higher education. The testing includes four disciplines: three compulsory (Kazakh/Russian, Mathematics, and the History of Kazakhstan) and one optional. Since 2007-2008, Kazakh has been made a compulsory discipline in Russian schools, and Russian a compulsory discipline in Kazakh schools. As a consequence, the tests now include ve disciplines. The computerisation of schools in 2001 was a signicant achievement. Almost all schools, including those in rural areas, were provided
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with up-to-date computers. At present, they are being connected to the Internet. A total of 75% of schools are expected to be connected to the Internet by 2010. In accordance with the EFA Framework for Action, measures are being taken to provide education to disabled children, the number of which now exceeds 120,000. Disabled childrens rights are being governed by the Law On Social and Medical and Pedagogical Correctional Support to Disabled Children, in compliance with Article 23 of the UN Convention on the Rights of the Child. Additionally, measures are being taken to educate children with deviant behaviour. Ten specialised institutions have been opened to teach more than 800 children falling into this category. As at the beginning of the school year of 2007-2008, 7,958 day schools operated in Kazakhstan with the number of students exceeding 2,627,000 [3]. The country also has a network of night schools for nationals of any age (both employed and unemployed) offering in-house, correspondence, family, and external classes. In the school year of 2007-2008, 24,000 people studied at 79 night schools. Vocational (primary and secondary professional) education includes a network of educational institutions that prepare qualied technical and service staff for various professional sectors. As at the beginning of the school year of 2007-2008, the vocational system comprised 313 professional schools and lyceums (106,769 students) and 460 colleges (499,546 students). The Education and Science Ministry has been paying continuous attention to the introduction of new technology in the vocational system. Since 2001, professional schools, lyceums and colleges have been equipped with multimedia classes, computers, electronic teaching materials on fundamental and special disciplines, and connections to the Internet. The government has been supporting the institute of social partnership with employers, subsidising students in particular specialisations subsidies that are paid back by the graduate proceeding to work for a specic enterprise. The State Education Development Programme for 2005-2010 and the Strategic Plan envisaged increasing the number
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of students studying under the scheme from 17% to 24% in colleges, and from 96% to 98% in professional schools. Promoting Professional Education in Kazakhstan, a joint Kazakh and German project, has been implemented within the respective intergovernmental cooperation agreement. This project was intended to develop the mechanisms of interaction between vocational schools and employers relevant to the current economic conditions. The system of higher education has also changed signicantly during the years of independence. The non-government education sector has been developed, a new entrance model has been introduced, and new requirements for the quality of education have been adopted. In 1999, the system of higher education in Kazakhstan became multi-level: base higher education (Bachelors degree), higher research and teaching education (Masters degree), and special higher education. Classical-type universities have been established from regional institutions of higher education. Teachers, agricultural and technical institutes have progressed. New institutions, including the Gumilyov Eurasian University, the Kazakhstan Institute of Management, Economics and Strategic Research (KIMEP), the Atyrau Oil and Gas Institute, the Kazakh National Music Academy, and the international Kazakh-Turkish Yassawi University (the rst institution established by Turkic peoples), the Kazakh-British Technical University, the Kazakh-American University, and the Kazakh-German University, have been set up. A new international university is expected to be opened soon in Astana. In 2007-2008, licences were withdrawn from some institutions of higher education and their divisions that had failed to pass the qualication audit by the Education and Science Ministry. This was done within the framework of the state policy to improve the quality of educational services. As a result, the number of institutions reduced to 167; their students numbered 717,053. The government has been making signicant efforts to provide social support to students. In accordance with President Nazarbayevs order, the government resolved to allocate, starting from 1 March 2009, 3 billion tenge ($20m) for educational grants to excellent stu294

dents who then study for free. As a result, the number of grantees has grown by 11,500 students. In addition, the government will allocate 15 billion tenge ($100m) for subsidised educational loans to medical and technical students. The eligibility criteria for subsidised loans are academic performance and social status. The preferred borrowers are orphans, students with disabled parents, students from large or broken families, and students with parents who are pensioners. The enhancement of international cooperation is one of the priorities in reforming the higher education system. Kazakhstans young people are provided with an opportunity to learn from foreign educational and research centres, and the national education systems achievements are being promoted abroad. In this context, a signicant objective of the higher education system is for Kazakhstan to join the global educational space. To achieve this objective, Kazakhstan is taking measures to implement the Bologna and Lisbon Declarations, to ensure that Kazakhstans institutions of higher education are accredited worldwide, and to ensure the nostrication of diplomas issued in Kazakhstan and other countries. Direct partnerships between Kazakh institutions of higher education and foreign research and educational centres are also being strengthened. On 5 November 1993, President Nazarbayev signed a resolution to found the Bolashak international scholarship. This initiative was intended to help talented young people receive quality education abroad for the benet of the country. In 1994, the rst group of Kazakh students went to study in foreign countries. From 1994 to 2004, about 800 Bolashak scholarships were awarded. In 2005, the Head of State, in his annual State-of-the-Nation Address, increased the number of scholars to 3,000 a year. A number of new concepts have been introduced to effectively implement this initiative: scholarships for specialised higher education and Bachelors degrees have been awarded for the rst time, and the Bolashak awardees are now selected in strict compliance with the Priority Specialities List approved annually by the Republican Commission for Training Abroad.
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In 2005-2007, the Priority Specialities List for the Bolashak scholarship was prepared in line with the countrys development priorities and its demand for highly qualied personnel in certain economic sectors. These benchmarks are set forth by the nations strategic documents such as: 1. Strategy for Industrial and Innovative Development for 20032015; 2. State Education Development Programme for 2005-2010; 3. State Public Health Reform and Development Programme for 2005-2010; 4. State Programme for Space Activity Development in 20052007; 5. State Programme for Rural Areas Development in 20042010; 6. Cultural Development Programme for 2006-2008; 7. State Housing Construction Development Programme for 20052007; 8. State E-Government Development Programme for 20052007; and 9. Transport Strategy until 2015. At present, the Bolashak scholars can study in 32 countries, at 630 leading universities. The scholarship is focused on Masters and Ph.D. degrees. Technical and medical specialities are preferred as they are in greatest demand in Kazakhstan. Bolashak is somewhat of a guarantee of a successful career and professional achievements. Many graduates hold important positions with government bodies, public and international organisations, and jointstock companies and take part in various state and international projects, making their contribution to the advancement of the country. Postgraduate education has also been developing successfully. In recent years, the Masters degree was introduced as an intermediary stage between the Bachelors degree and Ph.D. Compared to the Bachelors degree, the Masters degree offers students heightened expertise in an academic discipline or professional eld of study. The Masters courses are being provided by major universities (the al-Farabi Kazakh National University, the Kazakh National Technical
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University, the Gumilyov Eurasian State University, the Kazakh State Management Academy, KIMEP, the International Business Academy, and the International Business University and others). Some of these institutions invite foreign lecturers. The Masters degree is a qualitatively new level of business and educational services. In KIMEP, for example, the MBA programmes combine specialised business and management courses, long-term international cooperation, and share experiences with the best Western business schools, which is, in the aggregate, an undoubted advantage. Many graduates take postgraduate courses, while the others apply their expertise in practice. The demand for highly qualied young specialists is growing steadily. The reforms that have been carried out in the recent years have made it possible to make a transition from the unied education system to a multiple-option system. Students have been provided with an opportunity to select the forms of education (from full-time attendance to distance learning), teachers methods, and training materials. Syllabuses have been improved and innovative and authors training programmes have been enhanced. The technical and nancial base of the countrys education system has also improved signicantly. The nations budget expenses for the development of education are growing each year. In 2007, the budget expenses for education were 455.8 billion tenge (3.6% of the GDP), compared to 85.4 billion tenge (3.3%) in 2000. In 2008, this gure reached 547.8 tenge. By 2012, annual allocations for education are expected to total up to 816 billion tenge [4]. In other words, in 2008, the public investment in education was 6.4 times higher than in 2000, and in 2011 it is expected to grow almost tenfold.

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5.2. Science Kazakhstan has a powerful scientic and technical potential due to the combination of the Soviet scientic heritage and the achievements made during the years since independence. In Soviet times, scientic schools were established in many areas, including non-ferrous metallurgy, catalysis, physics, mathematics, space research, mining, chemistry, biologically active substances, high-molecular compounds, human, plant and animal biochemistry and physiology, geography, and botany. Social sciences developed successfully. Many works by Kazakh scholars have been recognised worldwide, including in the area of geology, non-ferrous metallurgy and chemistry, and others. Having become independent in 1991, Kazakhstan faced the challenge of building its own scientic base. The rst steps were the creation of the legislative and organisational framework for Kazakh science. In 1992, the Law On Science and Scientic and Technical Policy of the Republic of Kazakhstan was adopted and the Ministry of Science and New Technologies was created. In 1992-1993, structures (for standardisation, scientic personnel evaluation, state registration of research and development, deposit manuscripts and dissertations, and patents) were established to determine the scientic and technical policy of the sovereign Kazakhstan. In 1993, the Republican Special-Purpose Scientic and Technical Programme for the Development of the State System of Scientic and Technical Information in the Republic of Kazakhstan was adopted. A number of national scientic centres were established, including the Centres for Electronic Engineering, Communications, Advanced Processing of Minerals, Biotechnologies, and the National Nuclear Centre. In 1996-1999, a number of organisational reforms were effected in the administrative system. The Education and Science Ministry was formed to become the executive body in charge of scientic development. The National Academy of Sciences, previously a state
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institution, became a public organisation. Academic institutes began to withdraw from the National Academy of Sciences to become sectoral organisations or join institutions of higher education. In 2001, the Law On Science was adopted on the basis of the Blueprint for the Science and Scientic and Technical Policy of the Republic of Kazakhstan, which was developed a year earlier. This law governs social relationships in the area of science and sets forth the rights and obligations of the participants in scientic and technical activities. The Innovative Development Programme until 2015 was approved in the same year. In July 2002, the Law On Innovative Activities took effect. The state innovation policy aims to create a balanced production infrastructure that ensures that competitive, high-tech products and services dominate production and administration sectors. In 2006, a new era of improvements in the area of scientic administration began. The main feature of the structural reforms effected in 2006 was a new decision-making system, a concept proposed by President Nazarbayev at a lecture at the Eurasian National University on 26 May 2006. The importance of this system was emphasised by the fact that the Governments High Scientic and Technical Commission (HSTC), which was set up in August 2006, was headed by the Prime Minister. The HSTC was intended to determine the national scientic and technical priorities and report to the Head of State on the development of science and technology in the country once every three years. In 2007, the HSTC established the International Expert Council, which was tasked with analysing global scientic trends and the potential for advanced research into particular sciences. The results of this analysis, in the form of proposals and recommendations, are regularly reported to HSTC so that it can adjust the nations scientic and technical policy. In July 2006, the Science Committee was established within the Education and Science Ministry. This structure became the single administrator authorised to nance research, including fundamental studies and programmes of national importance. The Science Committee is a working body of the HSTC. By 2010, all research
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activities by sectoral ministries are expected to be nanced through the Committee. The Science Fund, which was established within the Education and Science Ministry as a joint-stock company with the government having a 100% stake, is authorised to nance development work, as well as scientic and technical, risk, and initiative projects. The Funds strategic goal is to support world-class research and development applications that could prove effective, selected on a tender basis. The change of the HSTCs status and the establishment of the Science Committee and the Science Fund have strengthened the institutional basis for support and innovations, and helped Kazakh scholars better understand global trends and focus on the priorities that are conducive to improving the countrys competitiveness. Other improvements include the introduction of the targeted nancing of research, the creation of a state scientic and technical expert body, and the update of the respective legislative framework. Five national scientic centres (the National Nuclear Centre and the National Centres for Advanced Processing of Minerals, Biotechnologies, Electronic Engineering, and Communications) are working to preserve the potential of the major sectoral scientic institutions that are leaders in their respective disciplines. The primary objective of these centres is to ensure the industrial application of scientic products that have been fully commercialised and patented, and have successfully passed commercial tests and proved their technical and economic effectiveness. In addition, three scientic centres (for geosciences and enrichment metallurgy, and biological and astrophysical research) have been set up within academic research institutes. These centres are intended to focus science and technology on the priority areas of fundamental studies and enhance the fundamental sciences contribution to the socioeconomic development. In August 2005, the Education and Science Ministrys National Biotechnology Centre (NBC) was created. Its objectives are to advance research in the eld of biotechnology, and develop the main areas of research in accordance with the state scientic and technical priorities, subject to their socioeconomic importance.
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The NBCs main activities are fundamental and applied research, into resource-saving, environmentally friendly, and wasteless technologies in particular; creation of knowledge-intensive production while ensuring the protection of intellectual property and the commercialisation of domestic technologies, as well as the transfer of foreign ones, to meet the demands of agriculture, healthcare, environment protection, food and processing sectors; and the preparation and professional development of specialists. NBC is the lead organisation that has been coordinating the following applied scientic and technical programmes: Development of Up-to-Date Technologies to Form the Biotechnology Cluster in the Republic of Kazakhstan for 2006-2008; Avian Inuenza: Study and Development of Control Aids and Measures for 2006-2008; Scientic and Technical Backup of Biological and Chemical Security of the Republic of Kazakhstan for 2006-2008; and Scientic and Technical Backup of the Monitoring and Genetic Mapping of Highly Infectious Anti-Crop and Anti-Animal Agents to Ensure the Biological Security of the Republic of Kazakhstan for 2004-2006 (completed). Thirty scientic institutions, including six research centres (Auburn University, University of Texas and University of California from the U.S., the French National Centre for Scientic Research (Centre National de la Recherche Scientique), Nagasaki University from Japan, and the Vector State Scientic Virology and Biotechnology Centre from Russia) have taken part in the implementation of these programmes. In July 2007, the Geoscience and Enrichment Metallurgy Centre was established. Its subsidiaries include the Physics and Technology Institute, the Satpayev Institute of Geological Sciences, the Geography Institute, the Seismology Institute, the Akhmedsan Hydrogeology and Hydrophysics Institute, and the Altai Geology and Environment Institute. The centres activities include the creation and advancement of a modern scientic and production cluster in the area of hydrocarbon and mineral exploration, production, recovery and advanced processing; generation of new materials; maintenance of environment, water and seismic security; and sustainable development of production and
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natural complexes in accordance with Kazakhstans strategic priorities to become one of the top 50 most competitive countries. The centre employs 1,534 specialists, including 15 academicians, 135 doctors of science, and 247 candidates of science. In March 2004, the Astrophysical Research Centre was established by merger of the Space Studies Institute, the Ionosphere Institute, and the Fesenkov Astrophysical Institute, who were made subsidiaries. Its core activities are astrophysical observations and theoretical studies of galactic and extragalactic objects (stars and primary planets); research into the mechanisms of solar-terrestrial relationships (the study of dynamic processes that determine the interaction of spheres (atmosphere, ionosphere, magnetosphere) based on the monitoring of mesosphere, ionosphere, the geomagnetic eld, and cosmic rays) to develop the physical principles for forecasting space weather over Kazakhstan; development of the fundamentals of remote sensing, and the methods and technologies of space monitoring and environmental forecasting of the human impact on the countrys natural and economic complexes; and creation of new technologies in the areas of space materials science and the physics of metals. The National Scientic Centre for Motherhood and Childhood (Astana), the Syzganov National Scientic Surgery Centre, and other major scientic institutions are making their important contribution to the scientic advancement of Kazakhstan. The State Scientic Development Programme for 2007-2012 has become a new impetus for the advancement of science. This programme has begun to reform administration in the eld in order to optimise scientic institutions activities; enhance nancing; organise new forms of scientic activities; solidify the material and technical base for scientic research; improve innovative potential; strengthen ties between science and production; ensure that scientic technologies and products are given practical application; and raise the economic effectiveness of science. The period of 2007 to 2009 was a preparatory stage for the programme. The legislative framework has been adjusted to modify the administration of science and technology, and reform the nancing of R&D and engineering.
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In 2010-2012, the programme will focus on 1) the integration of science and education; 2) the preparation of scientic personnel; and 3) the development of scientic infrastructure to improve domestic sciences contribution to production. Additionally, the programme plans to set up ve state-of-the-art national laboratories, which will cooperate directly with the best scientic centres worldwide. These laboratories will serve as the base for centres in 15 regional universities, which will undertake research in the priority elds of applied technology under the guidance of the laboratories. Business incubators, which are intended to commercialise small technical projects and will be located in research centres and universities, will make a substantial contribution to the advancement of the production-orientated branches of knowledge. The establishment of the Samgau National Science and Technology Holding Company is among the most recent administrative decisions. The company will coordinate the development of IT. Public-private partnership is extremely important to the advancement of national science. It is understood that private businesses should be involved in the development of applied products and in the creation of innovative infrastructure, and should play a leading part in technological modernisation. In future, it is planned that R&D will be nanced by private investors through venture funds or on a contractual basis. Amendments to the Tax Code regarding the treatment of R&D costs as deductibles are expected to stimulate private sector demand. By 2012, the private sector is expected to pay 50% of the national R&D costs, compared to 7% in 2005. In the end, it is expected that the private sector will nance two thirds of the national R&D costs. In the recent years, Kazakhstans government has been working intensively to bring the national patent laws in compliance with the modern international requirements. This has been instigated by the fact that Kazakhstan had become attractive to both domestic and foreign applicants. The budget allocations for science remain a key factor for scientic progress. In 2005, investment in science exceeded 12.4 billion tenge
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(an increase by 5.8 times on 2000), and by 2012 it is expected to total up to 350 billion tenge a year (a 25-fold increase). The budget allocations for the Science Development Programme for 2007-2012 will total 43,386,200,000 tenge, including 24,133,700,000 for Phase I (2007-2009) and 19,252,500,000 for Phase II. In future, the national budget expenditure on science will be at least 2% to 2.5% of GDP. This is comparable with the level of expenditure in developed countries. During the years since independence, Kazakhstans science has achieved impressive results, some of which have been recognised worldwide. There are plans to renew and expand the existing chemical and petrochemical enterprises using domestic technologies. Effective and competitive small to medium oil, gas and coal processing facilities will be built. The achievements in the eld of social sciences include the ndings on the formation of the Kazakh ethnic territory and on the history of the Kazakh nationhood and the national liberation movement, as well as the closed gaps in the history of Kazakhstans literature and ne arts in the early 20th century. In the area of physics and mathematics, the following developments have been made: an automated air pollution forecasting system for industrial cities; the theory of multi-purpose automatic control systems for deterministic and stochastic complex processes; and the fundamentals of the computer-aided design of multifunctional newgeneration materials. A high-resolution electrostatic energy analyser and a special composite spectrometer for the analysis of fractured surfaces have been developed. A methodology for forecasting the yield of cereal crops with the help of remote sensing and ground surveillance has been made available. The agroclimatological zoning of Kazakhstan has been calculated. The condition of the areas adjacent to the Caspian and Aral Seas has been studied and the reasons for environmental crises there have been analysed. The achievements in the eld of geoscience are as follows: new fundamentals of metallogenic and ore-formation analysis have been developed; a series of geologic and economic maps, with elements of
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forecasting, has been prepared to show the condition and prospects of the main types of Kazakhstans mineral resources; the countrys oil and gas map has been issued; new advanced geographic information systems and hydrogeological databases have been developed; and physical and dynamic earthquake source models have been created. Signicant achievements have also been made in the area of non-ferrous metallurgy. New technologies have been theorised and developed, and new promising metallurgical and enrichment processes have been launched at enterprises in Kazakhstan and the CIS. The developments in the area of chemical technology include new high-performance catalysts and catalytic processes for the rening of Kazakh oil; and a series of new synthesised monomers and polymers, on the basis of which high-strength composite materials and watersoluble polymers have been obtained. A new niacin technology has been patented in 20 foreign countries. This vitamin is necessary for medicine and agriculture. New medications have been created and launched. Biological achievements include successful research into molecular and cell biology, and the structural and functional organisation and control of the genome of higher organisms. Kazakh scholars from NBC have created domestic cures for avian inuenza and have made tests, together with their Russian counterparts, of the measles vaccine. A cartographic pasture cadastre model, which has no comparables, and a concept of the biological reproduction of soil fertility have been developed. Kazakh agrarian science has created and tested 193 crop varieties, taking into account the bioclimatic potential of the regions, and has formed a gene pool of forage (3,473 specimens) and vegetable (156 specimens) crops. Fourteen new types, races and breeds of livestock have been developed.

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5.3. Public Health In his State-of-the-Nation Address for 2008, President Nazarbayev set a task to fundamentally reform public health. The health of the nation is a nationwide objective The main problem of the public health system today is that it still does not meet the demands of people in modern Kazakhstan. Today, we are not satised with the existing infrastructure, and the quality and organisation of medical services. [5] To this end, the following priorities have been set for public health for the forthcoming years: restoration and development of healthcare facilities; focus on disease prevention; professional development of medical workers; procurement of medications for the population; and promotion of and ensuring a healthy lifestyle. These priorities are being achieved within the framework of the State Programme for Public Health Reform and Development for 2005-2010. This paper provides for the creation of an effective healthcare system which would meet the modern demands of the population. The long-term objectives of the programme are to adopt international principles of the organisation of health services, with the focus on primary healthcare (PHC); to create an optimal healthcare model which would meet the demands of the population, the sector, and the state; to enhance the accessibility of health services to the population and encourage the population to take care of their own health; to provide equal access to medical services and implement the principle of joint responsibility of the state and population for healthcare; to enhance preventive and health-improving measures; to promote maternal and child health; to improve the medical and demographic situation; and to reduce the incidence of socially important diseases. The rst stage of the programme (2005-2007) has shown that the country had achieved signicant improvements in healthcare: the key medical and demographic rates (including the birth rate, mortality, and natural increase) have improved; the rates of maternal and infant mortality have stabilised; the incidence of socially
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important diseases such as TB, cancer, infectious pathologies, and mental and substance dependence disorders, and the level of traumatism have reduced. The draft Code On Public Health and the Healthcare System has been nalised and submitted to the Mazhilis for consideration. Rural healthcare services are also being developed. Each state outpatient clinic in rural areas has been provided with the necessary medical equipment, vehicles and personnel. Telemedicine equipment has been installed in rural hospitals to arrange consultations with the leading healthcare centres and doctors nationwide. The material and technical base of healthcare institutions is being strengthened. In 2005-2007, 13.9 billion tenge was provided to buy equipment for the state PHC and emergency medical services. In 2007, the salaries of medical personnel were raised by 50-70%. In 2007, construction of eleven medical treatment institutions with general specialisations was begun under the 100 Schools, 100 Hospitals presidential programme. Although Kazakhstan has overcome the negative trend of population decrease, the problem of child and maternal mortality is still acute. In 2005-2007, 7.9 billion tenge was allocated to equip childrens and obstetric institutions. Also, signicant funds have been allocated to provide free medicines to children under ve years of age, iron- and iodine-containing preparations to pregnant women, and medicines to chronically ill children and adolescents who are provided with dispensary and outpatient care. On 20 August 2007, the National Scientic Centre for Maternity and Childhood opened in Astana. New medical technologies are being introduced. In 2007, 28 unique cochlear implantations were made to children who had severe hearing loss. In 2008, 150 of these surgeries were carried out. To ensure early detection of diseases and provide timely and effective medical aid and rehabilitation, preventive examination programmes for women of childbearing age (from 15 to 49) have been launched. Case follow-ups and treatment are also being provided. X-ray equipment has been purchased for these purposes.
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The Programme for the Development of Cardiologic and Cardiac Surgery Services for 2007-2009 have been developed and approved. In 2007, the national budget allocated 5.4 billion tenge to implement it. In 2008, cardiac surgery departments were opened in West Kazakhstan, North Kazakhstan, Almaty and Atyrau Oblasts. In 2009, similar departments were opened in Zhambyl, Kyzylorda and Mangystau Oblasts. The Anti-AIDS Programme for 2006-2010 is ongoing. As at 1 January 2008, 9,378 people living with HIV, including 223 children, were recorded as a total for the years starting from 1987. Because of the adverse situation with AIDS in Central Asia, the Blood Service Improvement Programme for 2008-2010 has been adopted with the aim of reducing the risk of AIDS contracted for medical reasons. In addition, eight new blood centres are expected to be built in the oblasts. Work is in the pipeline to compile a state pharmacopoeia, which will set forth uniform standards for both domestic and foreign medications. To ensure equal access to medicines, there are plans to develop a new model for the provision of medicines to outpatients, which will be based on government-xed prices for medications. In 2008, the following work was continued: the reform of the PHC system and the hospital sector; improvement of the HR and scientic potential; gradual adoption of international standards in the pharmaceuticals sector; improvement of the quality of medical services; and improvement of the legislative framework in the sector. To this end, the Health Ministry has adopted a strategic plan for the development of the sector during 2009-2011. This initiative will help nd solutions to the existing problems and form a healthy nation. The national budget was expected to provide 299.5 billion tenge to implement the strategic plan in 2009, and 411.6 billion and 368.9 billion in the subsequent years, respectively. In the near future, the construction of a total of 96 healthcare facilities is planned. Over 50 billion tenge has been allocated to this end. It is also planned to complete the construction of the Republican Scientic Neurosurgery Centre, the Republican Diagnostic Centre, the
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Research Institute of Emergency Medical Services, and the Scientic Cardiac Surgery Centre. In addition, the construction of four training clinics for institutions of higher medical education was begun in 2008, with the nancing reaching 5.2 billion tenge. Institutional reforms are also underway. The Governmental Resolution dated 13 May 2008 established the National Medical Holding Company, with a 100% government stake, which comprises the National Centre for Maternity and Childhood, the Republican Childrens Rehabilitation Centre, the Research Institute of Emergency Medical Services, the Republican Diagnostic Centre, the Republican Scientic Neurosurgery Centre, the Scientic Cardiac Surgery Centre, and the Kazakh State Medical Academy. New mechanisms of administering healthcare institutions will be developed based on the example of this structure. New institutional developments include a quality management system for medical services. To this end, the state accreditation of healthcare institutions will be arranged in 2009 to determine whether they are effective enough to accept public orders. Requirements for the Sanitary and Epidemiologic Service are becoming stricter. This structure is playing an important part in controlling the quality of environment, foodstuffs and water that are necessary to maintain human health. In particular, in 2009, an objective was set to develop controls which would prevent poor quality products that contain melamine, dioxides or mycotoxins being imported. Because of the problems instigated by the global nancial crisis, the government is considering how to improve the provision of medications to the population, in particular through the development of the domestic pharmaceutical production. It is also taking measures to prevent increases in prices of medications and medical services. From 1 July 2009, the procurement and distribution of medications will be carried out through a unied distribution system. This scheme is expected to guarantee the quality and security of medicines as all supplies will be subject to compulsory certication in state laboratories. Medications will become more accessible because the sole distributor will hold three months stock and ensure uninterrupted supplies to customers, including rural ones.
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The unied distribution system will enhance the effectiveness of the provision of medicines and improve the control of their use in hospitals. It is also expected to stimulate the development of domestic pharmaceutical production. The incentives will include various forms of preferential treatment, more government purchase orders, and long-term contracts with domestic producers. The year-on-year expenditure provides a vivid picture of the governments care of public health. The government spending on healthcare was about 2.2% of GDP in 2006, 2.3% in 2007 and 2.5% (383 billion tenge) in 2008. In 2009, the national budget spent 482 billion tenge and by 2012 the expenditure on public health is expected to exceed 600 billion tenge a year. In 2008 alone, the targeted current transfers for the equipment of local blood centres and healthcare institutions totalled 17.72 billion tenge; for the development of mobile- and telemedicine in rural areas 629.7 million tenge; and for the construction and reconstruction of healthcare facilities in rural areas 17.02 billion tenge. In 2009, the national budget allocated over 33 billion tenge in targeted current transfers to implement the State Programme for Public Health Reform and Development for 2005-2010. This gure included 15.76 billion tenge to be spent on the equipment of local healthcare institutions; 15.66 billion tenge on the provision and expansion of the guaranteed free healthcare services; and 1.6 billion tenge on the development of mobile- and telemedicine in rural areas. The positive changes in the healthcare system suggest that it will strengthen further.

5.4. Environment The fundamentals of the state environment protection policy were set forth by the Environmental Security Blueprint approved by President Nazarbayev on 30 April 1996. The Blueprint considered the environmental priorities of the transition period, including the environmental issues of privatisation, and the need to create environmental legislation, state control and expert bodies, and the economic mechanisms of environmental management. Since the Blueprint has been adopted, signicant changes have happened in the social development of Kazakhstan. Strategic documents for the nations advancement have been adopted; the environmental legislation framework has been developed; a number of international environmental conventions have been signed; and an environmental management system has been created. The Laws On Environment Protection, On Specially Protected Natural Areas, and On Environment Expert Assessment were adopted in 1997, On Radiation Security in 1998, and On Air Protection in 2002. As for the rational nature management, the Presidential Decrees On Subsoil and Subsoil Use (1996) and On Oil (1995) and the Forest, Water and Land Codes (2003) were made effective. A signicant number of bylaws have been developed and approved to govern various aspects of state management and nancing of environment protection, use and restoration. In January 2007, the Environmental Code was adopted, which has become a very important instrument in the development of state environmental policy. This document standardised the environmental principles and requirements effective in Kazakhstan in accordance with international levels. The Blueprint for the Transition to Sustainable Development for 2007-2024 has also set forth the long-term priorities and plan of action for environment protection. The Law On the Promotion of Renewable Energy Sources is currently being drafted, which will govern and stimulate the generation of power from non-traditional sources (wind, geothermal, biochemical and solar energy).
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Additionally, the Strategy for the Effective Use of Energy and Renewable Resources is being drafted for the purposes of sustainable development. The Environmental Code is being amended with regard to importing environmentally hazardous technologies, machinery and equipment. To improve the nations legislation, the government is trying to bring it in compliance with the legislation of developed countries and to adopt international standards. Kazakhstan has ratied a number of international environmental treaties including the Biodiversity Convention, the United Nations Convention to Combat Desertication, the Vienna Convention for the Protection of the Ozone Layer, the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), and the Convention of the World Meteorological Organisation, among others. In 2009, Kazakhstan acceded to the Kyoto Protocol, which sets forth the procedure for, and limits on, emissions. Institutionally, environment protection is managed by the Environment Protection Ministry, which is the chief coordinator of all nationwide activities in this eld. In addition to the ministry, the respective structural divisions of other ministries, departments and governmental bodies, and a host of civil sector organisations work on environmental issues*. Environmental expert assessment, permit-issuing, and inspection work has been ne-tuned. Currently, the most topical environmental problems in Kazakhstan are climate change and ozone layer depletion, the reduction in biodiversity, desertication, water and air pollution, and the accumulation of production and consumption waste. Taking into account the current emissions of ozone depleting substances and the forecasted permitted emissions within the Montreal Protocol on Substances that Deplete the Ozone Layer signed on 16 September 1987, the rst several decades of the 21st century will be a determinant in terms of ozone depletion. The ozone layer over Kazakhstan and the planet as a whole will begin to repair
* In 2008, for example, over 20,000 people took part in environmental hearings nationwide.

over the next thirty years if no more ozone depleting substances are emitted. Biodiversity issues also remain topical. The rare endemic and extinct species in need of protection include over 400 species of plants and 300 species of vertebrates, a signicant portion of which is on the verge of extinction. To preserve original ecosystems, with their whole complex of biocommunities, and to save the life cycle of animals and plants, a network of specially protected natural areas, that are considered a benchmark in terms of natural conditions, ora and fauna, has been set up. In 2002, Kazakhstan had 24 specially protected natural areas, including nine conservation areas and seven national parks with a total area of 2,815,800 hectares. Out of this gure, forests accounted for 24.7% (695,400 hectares) and water reservoirs 10.5% (294,400 hectares). Research into the dynamics of natural processes and scientic observations are being undertaken in conservation areas and the nature records are being kept. In addition, Kazakhstan has four zoological gardens, all the property of the state. Their aggregate area is 1,567,000 sq m, including 447,400 sq km occupied by animal housing. The countrys zoos are home to 7,400 animals of 823 species. Desertication is a signicant environmental problem. A total of 70% of the countrys area is exposed to desertication and degradation to a greater or lesser extent, which can be explained by its natural peculiarities. Out of 188.9 million hectares of pastures, 26.6 million are extremely degraded. The pastures and hay elds adjacent to rural populated localities are in the worst condition, which manifests itself in the area reduction, spread of poisonous weeds, and shrub invasion. The salinisation of irrigated land is increasing the area of saline deserts in closed basins and their resalinisation. Saline soils account for 31.3% of all irrigated arable land. On the whole, there is a stable trend towards the deterioration of land, including the reduction in humus content, biogenic elements, plant species, and biological productivity.
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Because of the catastrophic reduction of the Aral Sea, the Aral region has been declared an environmental disaster zone. The Programme for the Comprehensive Solution of the Aral Problems for 2004-2006 has resulted in the level in the northern part of the sea reaching 41.4 m on the Baltic system of heights, compared to 39 m before the project. The surface area has increased from 2,606 to 3,156.6 sq km and the volume of water from 17.7 to 25.2 cu km, while its salinity has decreased from 23 to 12 g per litre. In order to further resolve the problems of the Aral region, on 26 September 2006, the government approved the Programme for the Comprehensive Solution of the Aral Problems for 2007-2009. The former Semipalatinsk nuclear test site remains one of the most environmentally distressed areas in the country. The Programme for the Comprehensive Solution of the Problems of the Former Semipalatinsk Nuclear Test Site for 2005-2007 has proved that the area is still contaminated with radioactive substances and that its water bodies have high content of production-induced radionuclides. The programme above aimed at maintaining the security at nuclear and radiation sites. The activities included non-dissemination of radioactive contamination, the management and disposal of nuclear weapon waste, and the restoration of contaminated areas. Work is in the pipeline to draw reliable radiation maps of the area. To further restore the land at the Semipalatinsk nuclear test site, the Programme for the Comprehensive Solution of the Problems of the Former Semipalatinsk Nuclear Test Site for 2009-2011 was developed in 2008 on the orders of the Head of State. This programme provides for the return of more than 80% of the site area into economic use. The research within the Environment Protection Programme for 2005-2007 has shown that over more than 100 years of the development of oil and gas elds in Kazakhstan oil production enterprises had signicantly worsened the environmental situation in the regions adjacent to the Caspian Sea. Soil contamination, numerous oil storage pits and onshore wells, and the tanker eet are the main sources of toxicants in the Caspian Sea. The lack of effective wastewater disposal systems at oil and gas
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enterprises is causing the formation of lifeless water reservoirs, with salt water and toxic substances. The radioactive contamination of oil elds, caused by the fact that oileld water in many areas has high radionuclide content, is also a signicant issue. The health of the population living in the areas of oil production is of special concern. Four generations of people have been living in an area of intense air, soil and water pollution by oil products. Research suggests that certain diseases such as blood and haematopoietic organ diseases (two to four times higher than the countrys average) can be associated with oil contamination. Signicant changes have been recorded in the life of the sh fauna in the Northern Caspian Sea, which is one of the causes of the threefold reduction in sturgeon production. All these facts require utmost attention by governmental bodies to the environmental problems of the Caspian region. In addition, the responsibility for the stabilisation and improvement of the environment at the Caspian Sea was stipulated by the Framework Convention for the Protection of the Marine Environment of the Caspian Sea (dated 4 November 2003), which was ratied by Kazakhstan on 13 December 2005. Following this, the government prepared and adopted a national plan of action to protect the Caspian Sea environment. Government bodies are also considering the qualitative and quantitative composition of groundwater and surface water that is exposed to environmental burden because of the irretrievable withdrawal of natural water and pollution by poorly treated wastewater. This situation is caused by the fact that the majority of water facilities and networks were commissioned or overhauled more than 20 or 30 years ago. Untreated wastewater ows directly to absorption elds (in Taraz, for example) or waste ponds (Kokshetau, Kyzylorda, Uralsk, Petropavlovsk, and Kostanai). A signicant volume of wastewater from industrial enterprises (up to 24% in some towns) ows directly to municipal treatment plants, the majority of which are overloaded. So, wastewater treatment technologies are not compliant with the design data. In Taldykorgan,
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Atyrau, Pavlodar, Ust-Kamenogorsk and Semei, the treatment facilities are overloaded by 1.5 to 2 times. Wastewater ponds are often lled to their maximum, resulting in the continuous threat of the embankments failing. In 2006, the amount of wastewater disposed into surface water exceeded 2.8 billion cu m, up 8% on 2005. The quality of water supplies to the population, in rural areas in particular, also remains a topical issue. In almost every region, there are localities that have a shortage of quality drinking water. In early 2009, the Head of State requested that the government consider the possibilities of using groundwater for these purposes. In the recent years, a tendency towards lesser water intake due to the use of recirculation and recycling systems has appeared. The volume of water taken from natural water bodies and used for irrigation, watering and agricultural water supplies have to some extent decreased. Another concern is the condition of trans-border rivers that ow from neighbouring countries and are already polluted. They are aggravating the environmental situation in trans-border regions. Kazakhstan is taking measures to resolve this issue through intergovernmental committees set up in conjunction with its neighbours. The issue of historical contaminations also remains acute. The Environment Protection Programme for 2005-2007 produced proposals as to how assess the environmental impact of historical contaminations and repair them. These contaminations include waste from past operations of oil and gas, heat and power engineering, mining and processing industries, as well as abandoned oil and injection wells and owing water wells. In recent times, thorough research has been undertaken to assess the impact of military space and test sites on the environment and public health. This research has proved that the test and simulated launches of launch vehicles cause the contamination of vast areas along their trajectories. Natural sites are being severely damaged by both the components that separate from launch vehicles and the residual propellant. These issues are being resolved by the committees that have
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been set up with Russia at an intergovernmental level to assess the damage caused to Kazakhstan, and with the help of interstate legal mechanisms. Air pollution is another issue of concern. At present, the emission of chemical compounds is about 200 kg per person a year, compared to 163 kg in 2000. In recent years, the nationwide pollutant emissions from stationary sources have stabilised at approximately 3 million tonnes a year. At the same time, emissions by vehicles are growing continuously because of the increase in the number of vehicles used in the country. Air pollution is an issue of particular importance to the cities. In the majority of large cities, the contribution of vehicles to gross emissions is 60% or more, and in Almaty it is 90%. The main causes of air pollution from stationary sources in Kazakhstan are the obsolete technologies at many enterprises; a lack of dust-trapping and gas-cleaning plants; poor performance by existing treatment facilities; breaches in operating practices; and use of poor-quality coal in the power industry. The government has taken measures to make the 43 largest enterprises in the country, which account for 80% of emissions, eliminate the causes of pollution and repair the damage caused. In 2008, a total of 123 billion tenge was spent to this end. As a result, emissions have reduced by 149,000 tonnes throughout the country. The aggravation of the radiation issue is also giving cause for concern. These include the operation of the former Semipalatinsk nuclear test site, the activities of the atomic industry, the production and processing of minerals with high content of radioactive elements, and the natural radioactive anomalies in the populated localities and in groundwater used for drinking water supplies. These facts have been conrmed by the research undertaken within the Environment Protection Programme for 2005-2007. Chemical contamination is another topical issue for Kazakhstan. It involves the spread of chemically active substances used in economic activities, the most dangerous of which are persistent organic pollutants that are not biodegradable and concentrate in living organisms.
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The disposal of pesticide and toxic chemicals packaging is also a serious problem. The country lacks pesticide storages and specialised burial sites for unusable pesticides and their packaging. Land contamination by industrial and energy waste is one of the most signicant environmental problems in Kazakhstan. The industries that produce the highest volumes of waste are ferrous and nonferrous metallurgy and coal mining. Non-ferrous metallurgys waste sites occupy approximately 15,000 hectares, including 8,000 hectares occupied by rock dumps, about 6,000 hectares by mill tailings, and more than 500 hectares by the metallurgical plants dumps. The growing storage of waste is producing new technogenic landscapes to the detriment of the environment. The issue of storing and processing the increasing volumes of domestic waste is also very important. The domestic waste storage facilities often do not comply with health standards and affect the environment, land in particular. To resolve this problem, the Environment Regulation and Control Committee set up the Waste Department in 2008. In order to understand what action was needed, the Committee inventoried all waste facilities throughout the country and approved some 7,500 waste certicates. The responsibility for environmental violations has been signicantly toughened. In some instances, licences have been withdrawn and huge penalties been imposed on enterprises. Large-scale natural and man-caused disasters also cause signicant damage. Forest and steppe res are the most detrimental. The damage caused by them since 2000 has already exceeded several billion tenge. Biodiversity is also affected by unauthorised logging, grazing, collecting of medicinal herbs, and hunting. To preserve natural resources, trees are being planted, new recreational areas are being created, and hydrotechnical amelioration and other measures are being undertaken. In recent years, expenditure by the national budget and businesses on environment protection has grown signicantly. In 2009, this spending is expected to increase by 150 billion tenge.

5.5. Gender Policy In Kazakhstan, the policy of gender equality is being pursued in accordance with the Constitution. Article 14.2 of the Constitution reads that, No one shall be subject to any discrimination for reasons of origin, social or property status, occupation, sex, race, ethnic origin, language, religious beliefs, persuasions, place of residence, or any other circumstances. [6] Kazakhstan has acceded to the most important conventions and declarations adopted by the UN and other international organisations in regard to womens rights. This has helped improve the situation with the political rights of women and overcome hidden and open gender discrimination. As for the political rights of women, the most important events were Kazakhstans accession to the UN Conventions on the Elimination of All Forms of Discrimination against Women, on the Political Rights of Women, and on the Nationality of Married Women. Kazakhstan has also signed a number of statutes of the International Labour Organisation concerning the rights of women and children. Kazakhstans gender policy is being developed on the basis of the Blueprint for the State Policy on the Improvement of the Status of Women. This paper sets forth the main principles, priorities and objectives of gender policy in Kazakhstan. Its objectives are to achieve a balanced representation of women and men in authority; to provide equal opportunities for economic independence, business development, and career advancement; to create conditions conducive to the equal exercise of rights and duties in a family; and to eliminate gender-based violence. The blueprint is effective for the current period (until 2010) and for the longer term (until 2030). [7] The Gender Equality Strategy for 2006-2010 is another conceptual instrument that species areas of gender policy and is aimed at more effective resolution of the most signicant gender issues. In particular, it provides for the creation of a training network for female politicians, and for the allocation of budget funds for socially important projects that concern the issues of family and women. [8]
319

318

Kazakhstan today

Chapter 5. Human Development in Kazakhstan

To improve womens employment opportunities, the Strategy provides for the development of state and private childrens preschool institutions. A special section of the Strategy concerns gender education and advocacy among the population, in particular state ofcials, parliamentarians, the Maslikhat deputies, managers at all levels, and the mass media. At present, Kazakhstan has a whole system of institutional mechanisms to protect the rights of women and improve their status. These mechanisms are being continuously developed and improved and are becoming increasingly effective. The main such institution is the National Family and Gender Policy Commission, which is a consultative and advisory body to the President. Similar structures operate at regional levels of state management. The Commission is working to eliminate the stereotypes of gender superiority and clarify the necessity of social equality of women and men. Its priorities for the near future are to lobby the draft laws On Equal Rights and Equal Opportunities for Women and Men and On Domestic Violence. The involvement of women in economic activities is another issue on the agenda. Since 2000, the government has been taking measures to support womens businesses. Tens of thousands of women have obtained soft loans and opened their own businesses. The Small Business Development Fund has allocated more than 2 billion tenge to this end over six years. NGOs are playing a signicant part in improving womens status in Kazakhstan. Currently, about 150 NGOs are active in the country, the most prominent of which are the Association of Business Women of Kazakhstan, the Feminist League, the Almaty Womens Informational Centre, and the Almaty Centre for Gender Research. In addition to these, the Institute of Social and Gender Research is operating under the Kazakh State Female Teachers Institute, and there are also some other scientic centres. Womens NGOs have set up centres for employment and occupation guidance, and small business and legal support. They are also developing a network of crisis centres to combat violence against women.
320

In the area of gender issues, Kazakhstan is cooperating with international organisations including UNIFEM, OSCE, the International Organisation for Migration (IOM), USAID, the British Council, and UNDP. The government is creating conditions to implement the gender approach in the budgeting processes at all levels and in the development of state socioeconomic programmes. UNIFEM and the National Family and Gender Policy Commission are implementing the Social/ Gender Budgets in Kazakhstan project. Parliamentarians are also mindful of the issues of family and women. They have created the Otbasy group and are cooperating with the National Commission. Maternity and infancy protection is at the centre of the governments attention, taking into account the importance of the nations health. In 2008, Kazakhstan began to implement a special Maternity and Infancy Protection Programme. As part of the state Peoples Health Programme, it is one of the priorities for the nations gender policy. The programme has a number of blocks, including social support to women and healthcare. In particular, the birth and childcare allowances have been signicantly increased. In 2008, compulsory social insurance for pregnancy and childbirth, and for childcare until one year of age was introduced. The National Scientic Centre for Maternity and Childhood and the Republican Childrens Rehabilitation Centre were launched. Additional measures are being taken to support large families. The gender programmes have produced visible positive changes in the demographic situation. The birth, natural increase and reproduction rates have improved and the maternal and infant mortality rates are tending to decrease. The health of the population is improving. Kazakhstan has created all the conditions for women to take part in the state management on a par with men. Signicant efforts have been made to strengthen womens political leadership.

321

322
References

Kazakhstan today

The structure of GDP by sector


%
Sector 1st 1st half 1st nine half 1st nine quarter 1st2007 months of 2007 quarter 1st2008 months of of of 2007 2007 2008 2008 39.5 1.9 1.9 0.02 33.0 17.4 13.0 2.6 4.6 58.8 Trade, repairs of cars and household items 14.1 0.8 10.1 7.9 2.2 5.4 18.2 2.2 4.0 42.0 2.3 2.2 0.1 30.8 16.2 12.7 1.9 8.9 55.9 12.8 0.8 11.1 8.7 2.4 5.8 15.8 2.3 3.4 44.4 5.2 5.1 0.1 28.9 14.9 12.4 1.6 10.3 53.7 12.2 0.9 11.3 9.0 2.3 6.0 14.4 2.2 3.1 43.4 5.7 5.6 0.1 28.3 15.1 11.5 1.7 9.4 54.3 12.4 0.9 11.5 9.0 2.5 5.9 14.9 1.9 3.3 42.4 2.1 2.1 0.03 34.7 19.8 12.3 2.6 5.6 57.4 13.5 1.0 9.6 7.0 2.6 5.9 18.2 2.0 3.6 46.7 2.7 2.6 0.1 37.3 22.6 12.9 1.8 6.7 52.4 12.1 0.9 10.3 8.3 2.0 5.5 15.3 1.9 2.9 47.4 5.5 5.4 0.1 34.0 20.5 12.0 1.5 7.9 50.7 11.9 0.9 9.9 8.0 1.9 5.4 14.7 1.8 2.7 2008 45.6 5.3 5.2 0.1 32.2 18.7 11.8 1.7 8.1 52.1 12.3 0.9 11.0 8.5 2.5 5.3 14.9 1.7 2.8 1st 1st 1st nine quarter half of months 2009 2009 of 2009 37.3 2.7 40.2 3.2 43.4 6.2 Production of goods Agriculture, hunting, forestry, shery Agriculture, hunting, forestry shery Industry The extractive sector

1. .. . 28 2007 . // www.akorda.kz 2. .. 50 . 2006 . 3. // www. stat.kz 4. . ! // www.akorda.kz 5. .. . 2008 . // www.akorda.kz 6. . , 1998. 7. // www.gender.cawater-info.net 8. 20062016 // www.akorda.kz
28.7 14.8 11.0 2.9 5.9 64.8 14.6 1.2 10.6 7.8 2.8 6.2 21.3 2.3 4.3 3.1 0.1 30.3 16.2 12.0 2.1 6.7 60.0 13.6 0.9 10.5 8.0 2.5 5.8 18.3 2.6 4.0 6.1 0.1 29.5 16.3 11.4 1.8 7.7 55.5 13.1 0.9 10.3 8.0 2.3 5.2 15.7 2.4 3.5 Manufacturing Production and distribution of electricity, gas and water Construction Production of services

APPENDICES. KAZAKHSTAN IN FIGURES

Appendices. Kazakhstan in Figures

323

Hotels and restaurants Transport and telecommunications Transport Telecommunications Financial activities Operations with property, letting and services to consumers Government expenses Education Healthcare and social services

2.1

1.9

1.8

1.7

1.9

1.7

1.6

1.5

2.3

2.2

2.2

324
Sector 1st 1st 1st 1st 1st nine half 1st nine half 1st nine quarter 1st2007 months of 2007 quarter 1st2008 months of 2008 quarter half of months of of 2007 2007 2008 2008 2009 2009 of 2009 1.9 2.0 1.8 1.8 1.7 1.8 1.8 1.7 2.0 2.1 2.2 98.3 97.9 98.1 97.7 99.8 99.1 98.1 97.7 102.1 100.2 98.9 -4.4 93.9 6.1 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 93.2 6.8 93.2 6.8 92.9 7.1 94.2 5.8 94.0 6.0 93.3 6.7 93.0 7.0 95.5 4.5 100.0 -4.7 -4.9 -4.8 -5.6 -5.1 -4.8 -4.7 -6.6 -5.2 95.0 5.0 100.0 -3.9 95.0 5.0 100.0 Other services Total by sectors Indirectly-measured services of nancial intermediation Total added value Taxes and customs duties Gross domestic product

Kazakhstan today

Table continuation

Indices of physical volume of industrial output of the Republic of Kazakhstan by sector


%
1999 Industry Extractive sector Fuel extraction Extraction of coal, lignite and peat Extraction of crude oil and accompanied gas Extraction of natural (combustion) gas Extractive sector, excluding fuel extraction Extraction of iron ore Extraction of non-ferrous metals Manufacturing Production of foodstuffs, including beverages Production of tobacco products Textile and garment industry Production of leather, leather products and shoes Timber industry and production of wooden items Pulp and paper industry; publishing Production of coke, petroleum products and nuclear materials 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009* 102.7 115.5 113.8 110.5 109.1 110.4 104.8 107.2 105.0 102.1 101.7 109.6 121.0 114.0 115.9 110.2 113.4 102.7 107.0 102.6 105.5 106.1 109.0 118.3 115.3 116.9 110.3 114.9 104.2 106.4 103.0 106.3 107.3 83.7 128.4 105.7 93.1 115.0 102.4 99.7 111.3 101.2 102.8 92.1 114.4 115.8 115.1 117.4 108.3 113.6 102.9 106.1 102.6 105.3 107.7 135.0 125.0 101.5 121.2 122.5 124.6 106.1 104.6 104.5 115.1 108.4 110.9 130.6 106.8 110.5 108.9 102.5 101.4 191.7 94.3 115.3 116.0 106.3 117.1 117.5 106.2 108.3 104.5 98.2 91.5 111.7 99.6 82.9 113.8 102.8 93.1 104.6 99.3 99.7 89.3 101.1 95.5 105.7 102.0 117.4 115.0 108.1 107.9 109.2 107.6 108.1 107.8 91.4 116.1 108.2 108.7 110.7 109.4 117.0 107.7 107.4 86.3 102.8 110.9 109.6 109.6 109.0 107.0 102.8 102.2 103.1 121.7 125.6 115.7 95.4 103.4 114.0 102.7 103.1 173.9 286.3 134.9 127.8 122.2 102.9 133.8 120.0 124.7 119.6 97.1 98.8 90.4 81.6 110.4 92.3 110.5 167.0 128.1 91.8 114.4 91.3 109.1 86.7 109.6 140.4 124.4 105.1 117.6 131.4 115.8 106.7 98.9 98.5 95.5 98.8 93.1 87.6 91.6 86.3 88.6 102.1 88.6 117.1 119.4 108.6 113.3 104.3 116.2 104.7 109.2 103.6 105.3

Appendices. Kazakhstan in Figures

325

Production of petroleum products

71.2 103.8 123.7 109.8 113.4 104.9 118.6 104.0 108.3 103.1 103.7

326
Table continuation 1999 Chemical industry Production of rubber and plastic products Production of other nonmetal mineral products Metallurgy Ferrous metallurgy Production of non-ferrous metals Production of nished metal products Machine-building Other sectors of industry Production and distribution of electricity, gas and water Production and distribution of electricity Production and distribution of gaseous fuel Supplies of steam and hot water Collection, purication and distribution of water * - preliminary data 91.9 96.7 91.1 78.2 137.9 69.0 103.7 113.9 113.6 105.0 93.1 103.1 134.9 118.9 101.8 107.9 107.6 105.0 116.7 116.3 108.4 106.4 100.3 104.7 96.1 138.6 146.1 117.5 128.8 129.3 135.5 119.6 124.4 93.7 105.4 103.0 89.2 101.4 111.5 96.1 106.3 105.9 118.6 161.3 113.4 117.6 111.7 95.3 103.6 128.6 109.3 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009* 76.3 92.3 78.4 96.2 86.3 98.3 103.6 80.6 92.6 92.7 94.3 96.5 91.2 95.5 85.7 87.7 107.6 98.1 97.8 72.7 158.9 103.8 130.9 103.8 111.9 95.8 104.1 94.8 115.1 103.3 96.4 101.1 106.2 101.7 104.7 93.3 98.4 98.2 184.9 142.3 130.8 160.4 140.5 155.9 125.2 132.2 132.2 108.7 96.4 122.7 104.1 102.0 130.3 115.7 113.6 179.9 141.2 109.6 121.6 131.7 124.7 119.4 114.6 70.0 164.3 150.2 115.0 153.8 140.2 123.2 100.1 117.4 95.7 105.8 108.6 101.9 110.3 102.0 104.4 102.8 109.2 105.4 98.5 108.1 105.9 103.4 112.0 102.2 103.8 108.5 107.6 106.5 94.0 105.5 113.4 103.1 110.0 102.6 103.4 88.8 104.5 107.6 100.6

Kazakhstan today

Production in the Republic of Kazakhstan


1999 Coal, 000 tonnes Crude oil, including gas condensate, 000 tonnes Natural gas (total output), 000000 cu m Iron ore, 000 tonnes Iron pellets, 000 tonnes Copper ore, 000 tonnes Chromium ore, 000 tonnes Asbestos, 000 tonnes 58,378 30,130 9,946 9,617 2,814 28,773 2,406 139 55,665 1,262 450 Sugar, tonnes Petroleum products, 000 tonnes Motor fuel (petrol, including jet fuel), 000 tonnes Kerosene, including jet fuel of kerosene type, 000 tonnes Gasoils (diesel fuel), 000 tonnes Fuel oil, 000 tonnes Cement, 000 tonnes Marketable concrete, 000 tonnes Cast iron, 000 tonnes 2000 74,872 35,317 11,542 16,157 6,640 32,751 2,607 233 38,783 1,741 569 2001 79,135 40,091 11,610 15,886 6,107 34,872 2,046 271 37,520 1,776 556 2002 73,731 47,271 14,109 17,675 7,308 36,703 2,370 291 26,082 2,107 538 2003 84,907 51,451 16,597 19,281 8,849 34,887 2,928 355 29,300 2,123 518 2004 86,875 59,485 22,102 20,303 9,447 30,383 3,287 347 28,802 2,127 536 2005 86,617 61,486 24,973 19,471 7,494 34,067 516 306 26,141 2,756 565 2006 96,231 65,003 26,382 22,263 8,473 34,082 269 315 35,956 2,850 589 2007 67,125 29,562 23,834 8,572 31,266 231 293 40,235 3,080 615 2008 98,384 111,072 70,671 32,889 21,486 6,952 32,566 349 230 43,228 3,375 655 228,486 279,715 346,513 390,543 480,255 542,586 528,781 490,247 392,261 508,496 5,488 1,298 71 1,830 2,133 838 741 3,438 6,241 1,255 63 1,954 2,391 1,175 934 4,011 7,039 1,582 109 2,245 2,737 2,029 1,496 3,907 7,460 1,693 245 2,304 2,797 2,129 3,508 4,009 8,648 1,841 309 2,754 3,069 2,581 4,261 4,138 8,873 1,928 294 2,888 2,708 3,662 6,254 4,283 10,844 2,359 249 3,705 3,550 4,181 8,946 3,582 11,202 2,345 314 3,888 3,333 4,880 10,658 3,369 11,384 2,633 385 4,295 2,584 5,699 15,471 3,795 11,791 2,505 402 4,375 3,204 5,837 10,108 3,105 Cereals, coarse our and gradules and other grain products, 000 tonnes Flour of grain and plant crops; mixtures of ne grinding, 000 tonnes Fresh bread, 000 tonnes

Appendices. Kazakhstan in Figures

327

Raw steel, 000 tonnes

4,105

4,799

4,691

4,866

5,069

5,372

4,477

4,245

4,784

4,243

328
Table continuation 1999 Ferroalloys, 000 tonnes Flat-rolled products, 000 tonnes Zinc-plated rolled products, 000 tonnes Raw aluminium: alumina, 000 tonnes Raw lead, tonnes Raw zinc, tonnes Rened copper, tonnes Electricity, 000000 kWh Heating energy, 000 Gcal Natural water, 000000 cu m 2,125 2,069 2,234 2,201 2,221 63,321 65,503 76,398 78,651 85,699 87,325 2,388 47,498 51,635 55,384 58,331 63,866 66,942 1,158 1,217 1,231 1,387 1,420 1,468 1,505 1,515 279 364 396 499 709 762 606 580 3,186 3,894 3,888 4,018 3,838 4,040 3,105 3,000 3,441 604 1,556 1,000 1,092 1,130 1,235 1,401 1,447 1,530 1,614 1,703 2000 2001 2002 2003 2004 2005 2006 2007 2008 1,590 2,826 527 1,713 98,184 158,890 185,812 158,722 162,175 133,178 157,016 135,446 115,974 117,641 248,754 262,570 277,073 286,454 294,566 316,731 357,090 364,821 358,226 365,572 361,890 394,723 425,670 452,989 432,511 445,268 418,356 427,723 406,091 398,411 67,920 90,829 2,350 71,669 83,183 2,464 76,621 93,218 2,673 80,348 94,057 2,788

Kazakhstan today

Indices of physical volume of industrial output of the Republic of Kazakhstan by sector in 2009*
% year-on-year
January- January- January- January- January- January- January- January- January- January- JanuaryJanuary February March April May June July August September October November December

98.2 104.3 107 77.7 108.6 112.4 82.7 51.5 96.4 87.6 97.7 88.1 104.3 92.9 93.6 86.1 95.6 96.7 71.7 101.0 80.3 84.4 68.5

96.8 101.5 103.3 77.2 104.6 106.7 86.6 62.4 96.1 88.6 97.9 84.4 99.0 81.5 91.2 86.6 93.3 93.0 72.5 105.1 86.4 85.9 73.7

95.4 99.8 101.3 79.8 102.3 105.8 87.8 64.5 97.0 88.2 97.7 87.2 92.7 82.1 79.2 83.4 93.4 93.5 74.7 108.2 84.0 84.7 77.6

95.2 99.9 101.4 79.2 102.6 107.2 87.8 68.2 96.3 87.8 96.2 88.3 88.4 88.8 76.9 84.2 94.0 94.3 75.5 95.5 79.0 82.2 77.5

95.4 99.9 101.4 81.1 102.4 106.4 88.4 68.7 96.8 88.5 95.6 86.7 85.2 103.9 80.7 81.6 93.3 93.3 78.4 88.8 77.7 85.9 80.2

97.3 101.8 102.9 79.0 103.3 106.4 92.3 72.7 101.4 90.5 96.6 88.6 85.2 100.2 78.8 80.9 95.2 94.8 75.5 89.8 79.8 89.9 85.0

97.9 103.2 104.9 81.0 105.5 106.9 92.0 76.6 96.6 90.3 96.9 90.8 86.0 94.7 79.2 85.0 97.0 96.9 72.7 86.1 79.6 87.5 84.0

98.5 104.0 105.9 83.0 106.5 107.8 92.0 81.6 95.0 90.6 97.3 92.6 89.0 102.7 82.2 93.4 98.3 97.5 69.9 87.7 83.2 86.7 84.5

99.0 104.7 106.6 85.0 107.3 108.3 92.7 85.1 94.7 90.8 97.3 93.2 89.1 96.6 81.1 95.0 100.2 99.2 70.0 88.2 85.2 87.6 87.5

99.8 105.2 106.9 87.4 107.5 108.4 94.1 88.7 95.3 92.2 97.4 92.6 86.5 93.6 82.2 97.0 104.2 103.0 69.0 87.8 88.4 89.5 90.6

100.7 105.7 107.2 89.7 107.7 108.6 97.2 95.6 97.4 93.7 97.8 92.4 88.6 91.9 85.0 99.6 104.4 102.7 70.0 91.4 91.4 92.1 94.0

101.7 106.1 107.3 92.1 107.7 108.4 99.7 101.1 98.5 95.5 98.8 93.1 87.6 91.6 86.3 102.1 105.3 103.7 76.3 92.3 92.7 94.3 96.5 Appendices. Kazakhstan in Figures

Industry Extractive sector Fuel extraction Extraction of coal, lignite Extraction of crude oil and accompanied gas Extraction of natural (combustion) gas Extractive sector, excluding fuel extraction Extraction of iron ore Extraction of non-ferrous metals Manufacturing Production of foodstuffs, including beverages Production of tobacco products Textile and garment industry Production of leather, leather products and shoes Timber industry and production of wooden items Pulp and paper industry; publishing Production of coke, petroleum products and nuclear materials Production of petroleum products Chemical industry Production of rubber and plastic products Production of other nonmetal mineral products Metallurgy Ferrous metallurgy

329

330
Table continuation % year-on-year
January- January- January- January- January- January- January- January- January- January- JanuaryJanuary February March April May June July August September October November December

Kazakhstan today

98.3 93.3 69.5 88.9 92.2 90.7 95.3 93.9 92.7 81.8 82.0 81.8 85.3 88.2 89.8 96.2 97.5 92.4 92.7 93.6 93.6 94.3 91.7 85.9 87.0 90.1 92.0 96.8 103.3 105.9 90.5 91.7 92.3 92.7 94.0 94.5 94.7 94.8 106.0 95.5 92.2 92.2 93.3 91.7 92.4 93.5 94.0 94.5 95.0 76.1 106.8 77.4 96.6 75.7 95.8 75.5 85.7 78.2 78.0 77.7 75.2 79.5 102.9 80.2 102.6 81.9 110.5 95.5 95.1 104.1 96.0 92.7 106.6 101.8 98.8 109.6 108.6 99.5 91.2 88.4 89.2

96.6

91.0

90.5

92.2

96.0

92.9

90.4

88.5

89.1

90.0 92.6 93.8 108.4 97.0 96.7 104.7 97.4 95.0

91.2 95.5 85.7 107.6 98.1 97.8 104.1 98.4 98.2

Production of non-ferrous metals Production of nished metal products Machine-building Other sectors of industry Production and distribution of electricity, gas and water Production and distribution of electricity Production and distribution of gaseous fuel Supplies of steam and hot water Collection, purication and distribution of water * preliminary data

Production of key industrial products in the Republic of Kazakhstan


2003 Extractive sector Coal - total, 000 tonnes Crude oil, including gas condensate, 000 tonnes
84,906.5 86,875.1 86,617.3 96,230.5 98,383.9 111,072.3 101,524.2 51,451.1 59,484.8 61,486 65,003.1 67,125.3 70,671.0 45,376.3 50,671.5 50,869.8 54,338.8 55,265.0 58,646.0 6,074.8 8,813.3 10,616.2 10,664.3 11,860.3 12,025.0 76,383.5 64,250.0 12,133.5

2004

2005

2006

2007

2008

2009*

Crude oil (natural mixture of hydrocarbans), including oil extracted from bituminous minerals, 000 tonnes Gas condensate, 000 tonnes Natural gas in gaseous state, including accompanied oil gas, 000000 cu m Natural gas in gaseous state (marketable output), 000000 cu m Iron ore, 000 tonnes Iron pellets, 000 tonnes Copper ore, 000 tonnes Copper-zinc ore, 000 tonnes Aluminium ore (bauxites), 000 tonnes Lead in lead concentrate, 000 tonnes Zinc in zinc concentrate, 000 tonnes Manganese ore, 000 tonnes Chromium ore, 000 tonnes

16,596.9 22,102.1 24,972.9 26,381.6 29,561.5 32,889.3 7,195.8 8,849.0 6,189.2 4,737.3 37.5 393.5 2,369.0 2,927.8 2,599.6 8,969.5 9,447.0 5,970.2 4,705.4 33.0 361.4 2,318.1 3,287.1 3,937.4 9,516.8 7,494.0 5,786.8 4,815.4 31.0 364.3 2,233.2 515.9 5,615.3 9,664.5 8,473.0 4,644.6 4,883.8 48.1 404.6 2,531.1 269.2 6,965.9 9,791.3 11,708.6 19,280.9 20,302.5 19,471.1 22,262.6 23,834.1 21,486.3 8,572.0 3,897.0 4,942.6 40.2 386.0 2,482 231.2 7,479.9 6,951.8 34,886.8 30,382.8 34,067.1 34,081.8 31,266.0 32,566.3 5,248.6 5,160.1 38.8 387.4 2,485 348.5 5,765.0 13,749.2 17,377.2 18,884.0 28,539.2 41,068.2 26,053.2

3,5610.7 10,972.9 22,289.6 6,182.4 31,224.8 5,034.1 5,130.0 39.4 418.6 2,467.7 4,678.0 4,215.9 24,884.8

Natural sand, 000 cu m Granules, chips and stone powders; pebbles, gravels, road metal or crushed stones, 000 tonnes Salt and pure sodium chloride, tonnes Asbestos, 000 tonnes * preliminary data for January-December 2009

287,238 354.5

347,850 346.5

17,8167 416,680 227,643 305.5 314.7 292.6

504,100 230.1

213,320 230.0

Appendices. Kazakhstan in Figures

331

332 Production of key industrial products in the Republic of Kazakhstan


2003
Manufacturing industry Meat and meat products, tonnes Tinned meat, tonnes Sausages, tonnes Fish processed and tinned, tonnes Fruit and vegetable juices, 000 litres Cotton oil and fractions, tonnes Raw sunower oil, tonnes Rened sunower oil and fractions, tonnes Margarine and similar products, tonnes Unprocessed milk and cream, tonnes Milk and cream in solid state, tonnes Butter, tonnes Cheese and cottage cheese, tonnes Flour of grain and plant crops; mixtures of ne grinding, tonnes Fresh bread, tonnes Sugar, tonnes Chocolate, confectionary products made of chocolate and sugar, tonnes Noodles and other pasta products, tonnes Brandies, 000 litres Vodka, spirits with alcohol content by volume no less than 45.5%, 000 litres Ethyl alcohol, 000 litres Wines, 000 litres Beer, 000 litres Cigars, cheroots, cigarillas, cigarettes, 000000 pieces Fleece (sheep), washed degreased uncarbonised, uncombed, tonnes Cotton bre, tonnes Fabric, 000 sq m Carpets and carpet products, 000 sq m Leather of cattle or horse skin without hair, 000 sq dm Leather of sheep, goat or pig skin without hair, 000 sq dm
67,522 68,815 85,625 91,412 1,446 1,869 2,659 3,179 22,658 23,057 25,065 30,759 22,724 2,3869 28,329 26,984 56,980.2 77,297.2 99,458.6 129,997.2 27,113 28,504 38,395 38,269 63,908 70,556 57,559 66,800 43,545 52,882 56,295 74,291 22,658 25,189 26,893 25,756 148,019 154,412 179,673 225,816 2,138 2,604 4,277 4,444 10,566 13,040 19,736 18,596 11,189 13,033 14,952 17,042 2,122,740 2,126,574 2,755,964 2,849,866 517,623 536,235 564,816 588,561 480,255 542,586 528,781 490,247 48,340 51,932 69,772 74,676 72,009 79,228 85,092 104,148 2,213.3 2,797.2 5,430.8 6,278.1 29,379.1 33,345.1 56,984 54,767.3 18,428.5 18,161.9 28,405.3 27,491.2 39,300.1 40,352.1 52,869.3 36,794.9 234,846.4 278,041.4 323,470.9 363,838.8 25,714.9 28,037.5 30,008.1 30,833.8 6,027 3,195 1,227 2,668 132,638 140,070 156,270 145,018 25,592.9 20,301.9 35,530.2 56,459.6 98.9 99.1 105.6 101.5 99,821.8 133,468.9 88,110.3 115,401.2 32,081.8 44,971.0 1,637.2 1,079.4 110,187 4,702 38,180 34,107 168,035.1 27,914 71,772 83,791 29,016 258,733 3,847 19,707 17,154 3,079,725 614,569 392,261 77,569 124,842 6,115.3 49,871.1 26,359.6 19,414.6 410,960.2 31,507.0 2,880 110,471 43,325.3 36.1 202,728.3 295.6 113,466 4,613 39,983 38,783 122,509.5 27,338 55,056 62,162 34,133 265,508 3,403 16,598 15,473 3,375,460 655,161 508,496 77,052 122,395 4,292.9 45,026.9 23,517.2 13,284.8 360,676.2 28,482.5 803 133,348 43,479.6 2.0 286,731.1 754.3 122,187 4,618 38,965 41,020 132,162.4 34,218 90,320 69,539 45,342 235,156 2,861 14,732 13,900 3,467,621 640,358 385,166 90,737 127,228 4,427.7 39,817.3 19,705.4 11,753.7 360,806.9 26,748.2 735 97,194 34,658.2 2,9 238,757.7 14.7

Kazakhstan today

2004

2005

2006

2007

2008

2009*

Table continuation
2003 809.3 373.6 60 17,171 2004 724.3 480.1 203 23,012 2005 784.7 595 702 29,102 2006 780.7 571.6 343 31,865 2007 1,107.5 680.1 653 38,005 2008 1,213.1 672.2 643 35,853 2009* 1,218.0 654.2 266 79,854 32,867,771 3,6870,302 48,454,551 61,729,843 6,8135,024 60,061,105 57,974,680 2,631.0 2,659.3 2,491.9 2,627.5 2,925.0 2,687.7 2,716.8 1,841.4 1,927.5 2,359.2 2,345.3 2,633.3 2,505.2 2,613.2 309.2 2,754.1 3,069.3 61,410 27.8 112.5 294.3 2,887.6 2,708.4 81,042 95.1 85.0 248.7 3,704.7 3,549.9 83,444 22.8 81.2 313.6 3,887.5 3,333.1 66,267 54.1 51.9 385.0 4,294.5 2,583.8 70,187 221.8 38.6 401.6 4,375.1 3,203.8 80,344 204.8 46.9 376.2 4,268.4 3,255.6 35,445 205,399.0 45,092.0 4,025,072 4,731,527 6,364,272 8,148,061 10,177,456 8,401,400 10,820,461 201,817.3 197,349.9 228,931.9 246,195.6 238,157.8 186,825.9 1,374,955.0 378.7 2,581.1 786,073 545,660 1,548,732 5,069,401 1,401,136 3,837,781 267,035 827,377 804,874 19,266 465.2 3,662 858,990 854,443 1,994,671 5,371,698 1,447,307 4,039,709 292,276 7,732,961 707,443 19,261 681.3 4,181.2 993,544 1,052,873 2,365,984 4,476,642 1,530,064 3,104,724 222,744 8,832,103 812,095 17,875 717.5 4,880.2 988,094 1,214,039 2,906,969 4,244,521 1,614,317 2,999,610 169,564 806,083 796,234 21,824 991.6 5,698.6 1,023,178 1,183,476 1,331,613 4,784,105 1,702,784 3,440,708 209,683 722,927 707,954 22,564 695.2 5,837.3 905,917 1,052,085 1,096,549 4,243,582 1,590,519 2,826,202 174,098 645,627 628,763 20,825 598.5 5,998.2 803,580 918,642 911,919 4,146,810 1,468,912 2,980,293 201,167 678,226 673,598 22,525

Shoes, excluding sport and protective shoes, 000 pairs Wooden windows and frames, glass doors and frames and thresholds, 000 sq m Wooden built-up construction structures, tonnes Paper and cardboard corrugated perforated or unperforated, in roles or sheets, tonnes Paper or corrugated cardboard boxes and bags, kg Coke and semicoke made of coal, lignite or peat; retort coal, 000 tonnes Motor fuel (petrol, including jet fuel), 000 tonnes Kerosene, including jet fuel of kerosene type (tempurature of destillation of 150-300 degrees Centigrade), 000 tonnes Gasoils (diesel fuel), 000 tonnes Fuel oil, 000 tonnes Phosphorus, tonnes Mineral or chemical nitric fertilisers, excluding fertilisers in pellets, forms or similar packaging weighting no more than 10 kg, 000 tonnes Mineral or chemical phospohrous fertilisers, excluding fertilisers in pellets, forms or similar packaging weighting no more than 10 kg, 000 tonnes Pharmaceutical preparations, thousand tenge Bottles, jars, asks and other glass containers, excluding ampouls; corcks, leads and other glass closing items, 000 pieces Ceramic burnt construction bricks, excluding bricks made of silicic stone our or diatomite dirts, 000 cu m Cement, 000 tonnes Lime, tonnes Silicate and slag bricks, tonnes Concrete construction ready-built frames, tonnes Raw steel, tonnes Ferroalloys, tonnes Flat rolled products, tonnes Tin plate and rolled sheets coated with tin, tonnes Raw and semirened silver or in powder, kg Rened silver, kg Raw and semirened gold or in powder, kg

Appendices. Kazakhstan in Figures

333

334
Table continuation
2003 2004 2005 2006 2007 2008 2009* 10,336 1,734,965 87,829 328,834 368,133 12,900 397,581 71,877 286807 101 1,245 353 9,906 9,576 9,774 9,011 8,157 8,205 Rened gold kg 1,419,761 1,467,966 1,505,415 1,514,749 1,555,859 1,713,818 Raw alluminium: alumina, tonnes 133,178 157,016 135,446 115,974 117,641 105,766 Raw lead, tonnes 294,566 316,731 357,090 364,821 358,226 365,572 Raw zinc, tonnes Rened copper in blocks, excluding sintered, rolled, extruded or blacksmithed, 432,511 445,268 418,356 427,723 406,091 398,411 tonnes 3,271 4,011 7,115 5,758 7,773 10,253 Centrifugal pumps for uids; other pumps; uid lifters, pieces 215,053 460,154 535,246 365,910 132,750 148,445 Oil and gas processing equipment, thousand tenge Automated washing machines with capacity of no more than 10 kg of dry 20,148 49,755 72,827 101,811 126,720 68,175 washing, pieces 503,339 553,619 345,975 410,155 322,518 326,374 Television sets, pieces 77,322 60,616 55,568 46,118 11,237 Tape recorders and other voice-recording equipment, pieces 2,628 3,206 2,268 2,945 6,311 3,271 Cars, pieces 103 32 144 1,523 2,043 1,013 Lorries, pieces

Kazakhstan today

* preliminary data in January-December 2009

Gross output of agricultural products by all entities


in current prices, million tenge
2003 Kazakhstan Akmola Oblast Aktobe Oblast Almaty Oblast Atyrau Oblast East Kazakhstan Oblast Zhambyl Oblast West Kazakhstan Oblast Karaganda Oblast Kostanai Oblast Kyzylorda Oblast Mangistau Oblast Pavlodar Oblast North Kazakhstan Oblast South Kazakhstan Oblast Astana Almaty Kazakhstan Akmola Oblast Aktobe Oblast Almaty Oblast Atyrau Oblast East Kazakhstan Oblast Zhambyl Oblast West Kazakhstan Oblast Karaganda Oblast Kostanai Oblast Kyzylorda Oblast Mangistau Oblast 615,368.5 69,900.2 24,493.1 80,608.9 6,963.7 58,173.2 36,455.0 24,168.2 29,715.1 84,643.7 13,296.5 1,348.6 25,649.4 68,377.7 87,696.9 2,356.3 1,522.0 355,717.4 48,223.0 9,701.3 41,559.4 1,300.9 27,263.5 22,756.5 11,632.9 12,958.5 47,285.5 8,383.9 67.9 2004 698,832.9 79,347.2 27,001.8 95,632.8 7,967.5 70,020.1 42,465.7 25,335.5 36,722.7 92,181.0 16,107.5 1,627.9 33,497.0 85,135.6 80,421.9 3,413.9 1,954.8 391,249.1 54,139.4 9,755.0 50,128.0 1,386.4 32,477.3 25,857.8 10,799.9 16,302.8 48,018.5 10,494.9 143.2 2006 853,312.9 90,032.0 29,388.8 118,954.7 10,888.8 80,290.4 45,832.3 27,049.8 43,095.3 130,255.4 18,376.1 2,633.5 39,037.5 108,947.4 100,858.1 5,441.9 2,230.9 432,491.6 57,588.8 5,225.9 55,591.4 1,974.6 2,713.8 23,193.4 7,345.1 13,167.0 70,647.4 10,855.4 694.3 2007 1,121,773.6 131,005.2 40,700.6 145,982.1 13,312.9 98,504.3 60,331.9 34,729.4 54,822.2 188,866.3 24,146.1 2,870.3 50,187.6 147,471.5 118,669.4 7,077.0 3,096.8 630,795.7 94,050.5 12,752.8 73,879.2 3,112.8 37,740.4 34,154.2 12,260.6 19,432.3 115,755.3 15,486.3 278.0 2008 1,384,188.4 137,973.8 66,085.9 183,097.8 17,185.7 110,205.4 63,202.0 57,965.0 75,387.4 237,915.0 29,718.4 4,282.3 53,753.9 202,234.9 134,116.2 7,602.7 3,462.0 761,117.2 92,724.7 29,826.4 88,055.9 4,543.3 37,817.3 30,013.4 26,216.2 30,111.6 147,433.0 18,697.2 1,196.4 2009 1,620,280.0 212,051.1 61,252.7 219,804.6 17,576.1 146,952.6 84,376.3 42,140.6 80,214.3 241,618.0 33,115.4 3,239.9 78,891.8 238,340.1 158,169.4 1,278.4 1,258.7

Appendices. Kazakhstan in Figures

2005 Total 763,843.4 82,007.8 27,362.5 105,434.8 9,445.3 75,118.5 45,737.4 22,917.2 35,533.3 108,742.9 16,848.7 2,385.0 36,268.7 93,979.0 95,218.9 4,762.5 2,080.9 Crop farming 400,217.9 52,848.4 6,524.9 52,072.3 1,732.0 30,607.4 26,188.3 5,660.5 10,785.2 56,292.9 10,308.5 604.5

920,152.7 161,219.5 18,453.0 109,418.6 2,823.3 59,579.7 47,494.4 9,847.0 30,098.5 144,640.0 21,248.4 382.8

335

336
Table continuation
Pavlodar Oblast North Kazakhstan Oblast South Kazakhstan Oblast Astana Almaty Kazakhstan Akmola Oblast Aktobe Oblast Almaty Oblast Atyrau Oblast East Kazakhstan Oblast Zhambyl Oblast West Kazakhstan Oblast Karaganda Oblast Kostanai Oblast Kyzylorda Oblast Mangistau Oblast Pavlodar Oblast North Kazakhstan Oblast South Kazakhstan Oblast Astana Almaty 259,651.1 21,677.2 14,791.8 39,049.5 5,662.8 30,909.7 13,698.5 12,535.3 16,756.6 37,358.2 4,912.6 1,280.7 14,348.4 21,598.1 24,581.2 246.3 244.2 420,821.3 32,443.2 24,162.9 63,363.3 8,914.2 52,376.6 22,638.9 19,704.7 29,928.3 59,608.0 7,520.7 1,939.2 23,513.3 32,110.5 42,077.1 155.9 364.5 490,977.9 36,954.7 27,947.8 72,102.9 10,200.1 60,763.9 26,177.7 22,468.8 35,389.9 73,111.0 8,659.8 2,592.3 25,997.5 38,090.1 49,931.3 157.5 432.6 623,071.2 45,249.1 36,259.5 95,041.9 12,642.4 72,388.1 33,188.6 31,748.8 45,275.8 90,482.0 11,021.2 3,085.9 32,564.8 48,612.9 64,963.1 155.8 391.3 2003 11,301.0 46,779.6 63,115.7 2,110.0 1,277.8 2004 2005 15,834.8 15,392.3 60,363.2 65,422.8 50,740.7 59,589.1 3,175.5 4,469.4 1,631.7 1,719.4 Animal husbandry 307,583.8 363,625.5 25,207.8 29,159.4 17,246.8 20,837.6 45,504.8 53,362.5 6,581.1 7,713.3 37,542.8 44,511.1 16,607.9 19,549.1 14,535.6 17,256.7 20,419.9 24,748.1 44,162.5 52,450.0 5,612.6 6,540.2 1,484.7 1,780.5 17,662.2 20,876.4 24,772.4 28,556.2 29,681.2 35,629.8 238.4 293.1 323.1 361.5 2006 15,524.2 76,836.9 58,781.0 5,286.0 1,866.4 2007 24,190.1 109,381.4 68,738.1 6,919.5 2,664.2 2008 21,189.1 153,622.0 69,153.1 7,446.9 3,070.7 2009 42,049.8 184,246.8 86,641.6 1,094.4 915.0 700,127.2 50,831.6 42,799.7 110,386.0 14,752.7 87,372.9 36,881.9 32,293.6 50,115.7 96,978.0 11,867.0 2,857.2 36,842.0 54,093.4 71,527.8 184.0 343.7

Kazakhstan today

Indicators of Kazakhstans foreign trade


million dollars
Continents, countries and group of countries Total, of which: CIS Other countries Europe EU countries Non-EU countries Asia America Africa Australia and Oceania
2002 2003 2004 2005 2006 16,254.3 21,335.4 32,877.5 45,201.3 61,927.2 5,237.6 4,851.1 3,109.6 1,741.5 3,095.0 2,991.9 66.8 11.9 6,912.9 10,215.1 12,200.6 16,637.5 11,016.7 14,422.5 22,662.4 33,000 45,289.7 6,635.0 14,671.2 21,723.6 30,539.0 4,041.8 10,492.4 15,287.1 22,790.1 2,593.2 4,112.8 3,598.0 55.0 21.6 4,178.8 5,684.6 2,219.4 61.8 25.3
Source: Foreign trade statistics of the Kazakh Ministry of Finances Customs Control Committee Appendices. Kazakhstan in Figures

2007

2008

2009 80,511.7 109,072.6 71,604.4 22,564.6 57,947.2 35,636.0 27,529.5 6,436.5 3,389.0 71.4 45.2 7,748.9 7,771.3 12,033.7 2,508.9 158.8 49.3 8,106.5 18,775.6 3,065.6 396.0 73.9 28,575.2 18,849.0 80,497.3 52,755.4 51,397.6 32,066.1 39,135.2 28,817.3 12,262.3 3,894.1 815.0 77.7 3,248.8 24,313.1 16,137.9 4,323.2 171.0 57.3

337

338 Main indicators of small entrepreneurship


Number of entities Year legal entities farms 76,373 95,460 111,434 121,722 148,011 156,978 163,721 169,326 169,481 464.6 828.9 585.9 733.5 557.9 622.7 504.3 542.8 461.8 533.8 571.6 504.7 524.6 474.5 405.8 482.5 438.1 378.7 467.4 351.4 357.3 324,033 457,949 809,626 844,632 1,033,438 1,327,126 1,152,071 428.8 345.6 311 294,844 385.0 265.5 340.7 78,387 107,218 155,031 222,993 302,715 473,648 437,313 farms 30,172 33,778 39,590 42,516 46,194 51,339 50,612 47,756 55,865 58,480 475,841 415,709 358,583 297,234 247,688 215,116 169,781 119,038 individual entrepreneurs legal entities individual entrepreneurs legal entities individual entrepreneurs Number of employees, thousand people Production, million tenge farms 87,567 133,475 146,288 165,056 178,007 166,956 185,395 265,500 316,083 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Kazakhstan today

Main indicators of the development of the transport sphere Freight trafc by all means of transport
billion tonne-km
2003 258.4 147.7 40.2 0.07 92.9 70.4 2004 283.1 163.5 43.9 0.08 66.9 75.6 2005 296.3 171.9 47.1 0.09 96.7 77.1 2006 328.5 191.2 53.8 0.04 69.9 83.3 Total of which: railways other ground river air, million tonne-km pipelines naval 2007 350.5 200.8 61.5 0.05 88.1 87.8 0.3 2008 369.7 214.9 63.5 0.06 69.4 90.3 0.8 JanuaryNovember 2009 305.1 177.5 57.4 56.9 59 68.7 1.3

Passenger trafc by all means of transport


million passenger-km
2003 Total of which: railways coaches and buses taxi trolleybuses trams river air 94,806 10,686 55,676 25,148 288 353 0.9 2,654 2004 100,305 11,849 59,291 25,950 248 329 0.5 2,638 2005 107,600 12,136 63,831 27,820 221 327 0.5 3,265 2006 118,824 13,670 70,429 30,436 192 310 0.4 3,787 2007 124,366 14,587 72,224 31,655 146 296 0.6 5,457 2008 127,455 14,719 73,900 32,978 108 255 0.8 5,495 JanuaryNovember 2009 117,234.1 13,311 72,116.3 26,601.5 92.4 229.3 1.5 4,882
Appendices. Kazakhstan in Figures

339

Kazakhstan today

Appendices. Kazakhstan in Figures

7,657.3 7,840.6 7,901.7 8,028.9 8,228.3 8,336.8 8,425.6 8,466.0 8,421.4 8,415.0 8,413.5 8,464.8 8,490.9

6,985.2 7,181.8 7,261.0 7,403.5 7,631.1 7,762.9 7,868.4 7,925.4 7,862.1 7,857.2 7,830.4 7,896.6 7,955.2

535.7

6.3 The unemployment rate,% 8.8 8.4 8.1 7.8 7.3 6.9 6.6 6.4 6.6 6.6 6.9 6.7

4,229.6 4,469.9 4,640.5 4,776.6 4,973.5 5,138.3 5,186.0 5,237.6 5,229.9 5,199.4 5,199.1 5,209.7 5,266.4

000 km
2003 railways roads of which, paved trolleybus, in two-way calculation tram, in two-way calculation river and naval 14.6 89.0 83.6 0.4 0.1 4.0 2004 15.1 90.0 84.1 0.4 0.1 4.0 2005 15.0 90.8 82.8 0.3 0.1 4.0 2006 15.1 91.6 83.7 0.3 0.1 4.1 2007 15.1 93.1 84.0 0.3 0.1 4.1 2008 15.1 93.6 84.1 0.3 0.1 4.1

2,755.6 2,711.9 2,620.4 2,626.9 2,657.6 2,624.7 2,682.4 2,687.8 2,632.2 2,657.8 2,631.4 2,687.0 2,688.8

Rolling stocks Main indicators of the labour market


000 pieces
2003 All transport means of which: cars private cars coaches and buses including private coaches and buses lorries private lorries trams trolleybuses river vessels 1,148.7 1,095.5 61.4 35.8 223.1 133.4 0.3 0.4 0.1 1,204.1 1,145.5 62.9 37.2 224.9 134.1 0.3 0.4 0.1 1,405.3 1,306.8 65.7 35.3 281.5 143.4 0.3 0.4 0.1 1,745.0 1,635.9 75.0 42.3 311.8 165.5 0.3 0.4 0.1 2,183.1 2,051.4 83.4 48.0 359.2 204.2 0.2 0.3 0.1 2,576.6 2,415.9 89.2 52.0 414.3 246.7 0.2 0.3 0.1 1,471.5 2004 1,532.3 2005* 1,752.6 2006* 2,131.9 2007* 2,625.7 2008* 3,080.1

2003

Hired employees

Indicators

Labour force

Self-employed

Unemployed

672.1

* According to the Kazakh Ministry of Internal Affairs data

340

Economic dependents

Workforce

3,278.6 3,383.4 3,476.9 3,493.9 3,463.2 3,485.5 3,401.9 3,364.3 3,410.5 3,416.2 3,548.8 3,497.7 3,468.7

Length of transport lines routes

Thousand people

Q3

2009 Q2

Q1

year

Q4

2008 Q3

Q2

Q1

2007

2006

2005

2004

658.8

640.7

625.4

597.2

573.8

557.2

540.6

559.3

557.8

583.1

568.1

341

342 Deposits opened by the population in Kazakhstans banks


End-period, million tenge
Non-xed deposits Total In the national currency 69,384 121,142 155,597 163,411 183,727 112,512 2,159 1,025 35,323 2,629 871 37,561 3,443 471 42,049 2,354 540 566,117 744,088 705,891 655,132 34,024 1,044 324 241,806 In foreign currency In the national currency In foreign currency In the national currency 2005 2006 2007 2008 2009 1,936,311 1,500,005 1,447,850 1,034,157 596,848 Conditional deposits Fixed-term deposits In foreign currency 250,267 301,954 506,690 591,881 981,757

Kazakhstan today

Loans to the economy


End-period, million tenge
Currency Total In the national currency Short-term 869,136 1,256,652 1,457,607 1,520,477 1,213,473 1,255,882 2,421,943 4,158,399 4,162,074 3,944,318 3,298,207 3,699,754 3,099,970 2,269,055 1,336,208 In foreign currency Duration Long-term 1,722,953 3,434,345 5,800,763 5,939,804 6,430,599 Entity Non-banking legal entities 1,923,271 3,156,922 4,681,174 5,122,516 5,417,897 Individuals 668,819 1,534,076 2,577,195 2,337,766 2,226,175

2005 2006 2007 2008 2009 Source: www.nationalbank.kz 7,644,072 7,460,281 7,258,369 4,690,998

2,592,090

Indicators of tourism
people
2003 2004 2005 2006 2007 2008 2009
January- January- January- January- January- January- January- January- January- January- January- January- January- JanuaryJune December June December June December June December June December June December June September 23,180 31,371 41,121 685 44,990 94,692 89,332 713 13,617 59,630 33,910 706 31,367 154,885 106,486 751 17,225 79,049 78,114 756 39,872 27,306 210,692 100,820 184,379 80,342 846 860 56,203 29,443 255,626 111,766 209,143 91,345 921 853 62,117 18,523 286,691 116,119 193,122 63,363 1,007 1,029 37,937 261,070 174,940 1,163 17,654 72,091 42,382 1,122 24,621 144,033 94,453 1,162

Inbound Outbound Domestic Number of travel agents

Appendices. Kazakhstan in Figures

343

total

total

total

total

total

total

total

cinemas

total

attendance, thousand people

membership, thousand people

mobile cinemas

attendance, thousand people

attendance, thousand people

attendance, thousand people

number of events held, thousand people

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 57 1,929.9 4,071 4,366.0 198 4,595.5 4 670.5 55 1,826.9 3,935 4,239.3 195 4,543.0 4 589.1 53 1,835.7 3,848 4,153.8 185 4,220.8 4 572.8 51 1,795.0 3,664 4,037.7 187 3,525.4 4 481.6 2,409 188.8 48 1,707.3 3,539 3,953.1 172 3,515.5 4 428.8 2,259 166.3 9,420 125,234 93 9,521 129,321 120 48 1,482.5 3,462 3,860.5 143 3,800.9 4 398.1 2,042 156.3 9,465 121,550 82 67 73 86 76 77 77 47 1,564.6 3,312 3,778.9 121 3,965.5 4 280.9 1,891 121.8 7,838 104,534 68 68 44 1,321.1 3,220 3,988.5 103 3,261.0 4 235.3 403 86.6 6,737 90,611 57 37 306 146 216 266 246 301 301 298 49 1,376.5 3,558 3,357.3 147 3,181.6 3 279.0 1,703 81.2 6,768 84,667 73 47 549

43

1,577.4

2,533

2,630.8

88

1,866.0

211.8

1,519

62.7

5,761

number of amateur troupes

78,034

number of people involved in amateur troupes

78

68

477

900.0 805.2 815.9 2,855.4 3,489.7 4,100.5 4,327.3 5,696.1 6,414.1 7,023.4

90 72 62 66 61 67 73

number of concerts held

attendance, thousand people

5,204 2,318.5 6,519 1,642.6 6,321 1,805.3 6,906 2,338.5 6,796 2,589.5 7,100 2,746.4 7,464 2,954.7

36 48 41 42 50 53 63 66

1,009 2,506 1,574 1,029 1,987 1,935 2,127 2,201

2,600 203.1 10,061 134,642 194 2,824 222.1 10,936 146,338 149 3,050 238.4 11,804 159,852 136

Environmental protection
1998 Current spending on environmental protection, million tenge Number of immobile sources of pollution Air pollution from immobile sources, 000 tonnes Air pollution from immobile sources, per capita, kg Pollutants rendered harmless, 000 tonnes Recycled pollutants, 000 tonnes Solid pollutants, 000 tonnes Fluid and gaseous pollutants, 000 tonnes Toxic production waste, 000 tonnes Use of toxic waste at enterprises, 000 tonnes 10,992.5 55,913 2,327.7 16,766.5 3,621.1 687.4 1,640.3 83,911.8 12,558.3 1999 13,288.7 54,753 2,308.6 16,498.7 1,744.4 641.1 1,667.5 2000 16,704.9 58,356 2,429.4 163 17,292.2 4,313.2 668.5 1,760.9 2001 17,780.8 67,530 2,582.6 174 18,139.4 4,469.2 672.3 1,910.3 2002 18,555.3 74,073 2,529.3 170 17,681.4 1,910.4 673.4 1,855.9 92,042.3 102,464.1 130,031.0 137,081.9 12,158.8 16,634.7 23,699.0 34,829.3 2003 24,664.0 84,878 2,884.3 193 18,849.7 3,932.8 729.6 2,154.7 141,945.7 29,066.6 2004 28,682.1 96,725 3,016.5 201 21,329.3 4,423.0 752.9 2,263.6 146,116.8 24,619.7 2005 43,558.2 108,576 2,968.8 196 21,656.4 5,223.4 713.7 2,255.1 228,243.1 13,825.0 2006 56,320.1 123,037 2,921.1 191 23,116.5 4,947.3 721.3 2,199.8 2007 58,725.5 137,712 2,915.0 188 23,802.4 5,316.3 717.6 2,197.4 263,971.2 281,768.7 42,181.4 24,898.5 2008 91,288.3 152,820 2,643.1 168 24,262.0 6,161.5 688.7 1,954.3 453,373.0 48,360.4

cultural events

344 Indicators of the development of the cultural sphere


Theatres Libraries Museums Zoos Club-type cultural establishments Cinema organisations Concert organisations Recreational parks -

Kazakhstan today Appendices. Kazakhstan in Figures

345

346 Main demographic indicators The size of population


end-period, thousand people
January February March April May June July August September October November December

Kazakhstan today

2007 2008 2009

15,409.2 15,581.6 15,797.3

15,422.9 15,599.4 15,815.0

15,437.6 15,620.6 15,828.1

15,454.1 15,639.9 15,848.0

15,470.8 15,484.9 15,500.8 15,658.3 15,676.9 15,696.3 15,865.0 15,880.6 15,902.9

15,514.7 15,713.2 15,922.8

15,527.7 15,730.5 15,942.3

15,543.0 15,750.1 15,965.6

15,556.8 15766.1 15,981.9

15,565.6 15,778.2

Number of births
people
January JanuaryFebruary JanuaryMarch JanuaryApril JanuaryMay JanuaryJune JanuaryJuly JanuaryAugust JanuarySeptember JanuaryOctober JanuaryNovember JanuaryDecember

2007 2008 2009

29,452 31,508 33,219

54,377 60,796 61,951

77,802 86,921 86,870

105,752 117,985 119,854

133,469 147,560 148,562

159,113 176,702 175,656

188,785 210,717 210,604

215,214 241,741 241,320

239,554 270,255 270,328

269,240 305,357 304,842

296,927 334,486 332,108

316,822 359,300

Number of deaths
people
January JanuaryFebruary JanuaryMarch JanuaryApril JanuaryMay JanuaryJune JanuaryJuly JanuaryAugust JanuarySeptember JanuaryOctober JanuaryNovember JanuaryDecember

2007 2008 2009

16,498 16,033 13,859

29,936 29,498 25,356

43,031 42,198 36,118

56,828 56,366 49,294

70,228 69,242 60,815

82,583 81,292 71,987

96,845 94,750 85,150

109,592 106,811 96,086

120,974 117,598 106,798

135,188 131,599 119,546

148,355 143,341 131,356

158,931 155,065

Natural growth
people
January JanuaryFebruary JanuaryMarch JanuaryApril JanuaryMay JanuaryJune JanuaryJuly JanuaryAugust JanuarySeptember JanuaryOctober JanuaryNovember JanuaryDecember

2007 2008 2009

12,954 15,475 19,360

24,441 31,298 36,595

34,771 44,723 50,752

48,924 61,619 70,560

63,241 78,318 87,747

76,530 95,410 103,669

91,940 115,967 125,454

105,622 134,930 145,234

118,580 152,657 163,530

134,052 173,758 185,296

148,572 191,145 200,752

157,891 204,235

Number of marriages
January JanuaryFebruary JanuaryMarch JanuaryApril JanuaryMay JanuaryJune JanuaryJuly JanuaryAugust JanuarySeptember JanuaryOctober JanuaryNovember JanuaryDecember

2007 2008 2009

8,818 8,219 8,966

17,982 8,725 18,028

28,277 26,949 27,203

40,474 37,894 39,208

47,677 45,214 46,529

59,505 56,575 57,291

75,744 69,467 72,025

93,660 87,730 88,441

107,495 98,483 101,093

121,314 113,121 117,725

134,997 125,132 129,847

146,380 135,280

Number of divorces
January JanuaryFebruary JanuaryMarch JanuaryApril JanuaryMay JanuaryJune JanuaryJuly JanuaryAugust JanuarySeptember JanuaryOctober JanuaryNovember JanuaryDecember

2007 2008 2009

3,269 2,783 2,914

6,075 5,662 5,958

8,873 8,123 8,892

12,162 11,427 12,805

15,239 14,124 15,873

18,230 17,007 19,046

21,804 20,542 22,978

25,169 23,644 26,289

27,868 26,673 29,552

31,073 30,150 33,159

33,952 33,181 36,277

36,108 35,852

External migration
people
January JanuaryFebruary JanuaryMarch JanuaryApril JanuaryMay JanuaryJune JanuaryJuly JanuaryAugust JanuarySeptember JanuaryOctober JanuaryNovember JanuaryDecember

2007 2008 2009 2007 2008 2009 2007 2008

1,612 524 -224 3,762 2,605 2,465 2,150 2,081

3,872 2,422 248 8,014 6,592 5,253 4,142 4,170

5,957 4,381 838 12,453 10,525 8,265 6,496 6,144

8,268 6,790 900 17,530 15,323 11,277 9,262 8,533

10,675 8,477 798 23,421 19,833 14,636 12,746 11,356

Net migration 11,454 11,972 9,940 8,819 483 946 Immigration 28,111 33,155 24,626 28,314 18,202 21,789 Emigration 16,657 21,183 14,686 19,495

12,222 6,722 1,077 38,699 32,241 25,277 26,477 25,519

12,188 6,302 2,316 43,359 36,852 29,396 31,171 30,550

12,104 4,842 3,856 47,596 40,668 33,730 35,492 35,826

11,355 3,496 4,665 50,878 44,340 36,965 39,523 40,844

10,878 2,419

53,309 47,657

42,431 45,238

Appendices. Kazakhstan in Figures

347

2009

2,689

5,005

7,427

10,377

13,838

17,719

20,843

24,200

27,080

29,874

32,300

348 CIS countries


people
January JanuaryFebruary JanuaryMarch JanuaryApril JanuaryMay JanuaryJune JanuaryJuly JanuaryAugust JanuarySeptember JanuaryOctober JanuaryNovember JanuaryDecember

Kazakhstan today

2007 2008 2009 2007 2008 2009 2,530 4,726 6,979 9,681 12,982 16,657 19,579 22,722 25,358 1,978 3,913 5,770 7,997 10,656 13,819 18,357 24,117 28,890 1,920 3,722 5,890 8,433 11,672 24,597 29,011 33,089 33,896 27,968 1,697 3,835 6,176 8,403 11,047 13,745 16,326 Emigration 15,339 19,582 19,309 22,503 26,195 2,162 5,241 7,703 10,605 13,265 16,247 18,834 21,529 24,394 26,735

2,854

6,400

10,047

13,913

18,942

Immigration 22,752 26,955 31,543 34,885 38,293 40,875 29,214 28,807 36,982 38,659 30,221

42,747 31,463

39,758 42,862

Other countries
people
January JanuaryFebruary JanuaryMarch JanuaryApril JanuaryMay JanuaryJune JanuaryJuly JanuaryAugust JanuarySeptember JanuaryOctober JanuaryNovember JanuaryDecember

2007 2008 2009 2007 2008 2009 159 279 448 696 856 1,062 103 257 374 536 700 867 230 420 606 829 1,074 768 1,418 2,089 2,874 3,589 4,457 5,463 Emigration 1,318 1,601 1,138 1,264 443 1,351 2,822 4,718 6,568 8,379 9,480

908

1,614

2,406

3,617

4,479

Immigration 5,359 6,200

7,156 10,712 5,968 1,880 1,402 1,478

8,474 12,458 6,893 2,160 1,660 1,722

9,303 13,933 7,535 2,403 1,930 1,906

10,003 15,126 8,158 2,541 2,185 2,079

10,562 16,194

2,673 2,376

Healthcare
1999 Number of all doctors, thousand people Number of nurses, thousand people Number of hospitals Number of hospital beds, thousand Number of hospital beds for children, thousand 50.6 110.4 917 108.2 18.9 2000 49 106.6 938 106.9 18.6 2001 51.3 109.4 981 110.2 18.4 2002 53.7 113.4 1,005 111.9 18.4 2003 54.6 115 1,029 114.8 20.3 2004 54.8 117 1,042 116.6 19.4 2005 55.5 119.6 1,063 117.6 20 2006 57.3 125.2 1,086 119 20 2007 59.4 130 1,055 119.6 19.6 2008 58.9 131.7 1,041 120.8 20.4

Appendices. Kazakhstan in Figures

349

350 Permanent pre-school organisations


1999 Number of permanent pre-school organisations
1,102 124,401 81.0 14,370 16,048 16,544 17,400 17,908 19,046 20,588 84.2 86.1 89.8 94.5 99.0 102.6 105.3 22,869 1,089 1,103 1,095 1,106 1,120 1,179 1,327 1,500

2000

2001

2002

2003

2004

2005

2006

2007

2008
1,692

Kazakhstan today

Number of children in permanent pre-school organisations Coverage of children in permanent pre-school organisations (number of children per 100 places) Number of pedagogical personnel in permanent preschool organisations* * Excluding medical personnel

133,217 140,350 147,489 156,542 168,761 185,368 207,798 232,925 257,053 108.0 24,089 110.7 27,277

Day and evening secondary schools


1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10

Number of day secondary schools Number of pupils in day secondary schools, thousand people Number of pedagogical staff in day secondary schools Number of evening secondary schools Number of pupils in evening secondary schools, thousand people

8,284

8,290

8,309

8,408

8,334

8,254

8,221

8,157

8,055

7,958

7,859

7,811 3,115.2 3,117.8 3,247.4 3,085.0 3,115.0 3,044.7 2,935.9 2,824.6 2,715.9 2,627.4 2,561.6 2,534.0 250,300 262,242 276,343 273,736 279,326 285,854 286,934 286,345 282,924 279,098 276,850 282,254 37 31 44 48 47 66 75 76 76 79

26.1

24.3

25.5

24.6

24.5

27.0

26.2

26.3

24.1

24.0

Appendices. Kazakhstan in Figures

351

Kazakhstan today

Chapter 5. Human Development in Kazakhstan

Information about authors

G.G. Rakhmatulina PhD in Economics, senior analyst, Agency on Investment Protability Research Ye.T. Seilekhanov Doctor of Political Sciences V.N. Sitenko counselor at the Embassy of the Republic of Kazakhstan in Austria B.K. Sultanov Doctor of History, director of the KazISS under the President of the Republic of Kazakhstan L.A. Timofeyenko researcher, the foreign policy department, the KazISS under the President of the Republic of Kazakhstan

M.A. Abisheva PhD in Political Sciences, head of a department, the Security Council of the Republic of Kazakhstan A.M. Borangaliyev researcher, the economic research department, the KazISS under the President of the Republic of Kazakhstan A.U. Ibragimova economist R.Yu. Izimov researcher, the foreign policy department, the KazISS under the President of the Republic of Kazakhstan K.D. Isayev adviser to the director of the KazISS under the President of the Republic of Kazakhstan T.A. Kozyrev PhD in Philological Sciences, senior researcher, the socio-political research department, the KazISS under the President of the Republic of Kazakhstan S.K. Kushkumbayev Doctor of Political Sciences, chief researcher, the KazISS under the President of the Republic of Kazakhstan M.T. Laumulin Doctor of Political Sciences, chief researcher, the KazISS under the President of the Republic of Kazakhstan S.S. Lukpanova PhD in History A.A. Morozov head of the socio-political research department, the KazISS under the President of the Republic of Kazakhstan A.K. Nazarbetova researcher, the socio-political research department, the KazISS under the President of the Republic of Kazakhstan M.Ye. Nurgaliyev PhD in History A.Zh. Rakhimzhanova PhD in Economics, head of the economic research department, the KazISS under the President of the Republic of Kazakhstan
352

353

Kazakhstan today

Chapter 5. Human Development in Kazakhstan

Information about the Kazakhstan Institute for Strategic Studies under the President of the Republic of Kazakhstan

The Kazakhstan Institute for Strategic Studies under the President of the Republic of Kazakhstan (KazISS) was established on 16 June 1993 by the Decree of the President of the Republic of Kazakhstan. The main mission of the KazISS is providing the activity of the President of Kazakhstan and governing bodies of the country with scientic and analytical data. The KazISS has become a high professional scientic-analytical centre. At present, six doctors of sciences, twelve candidates of sciences, specialists in political sciences, historians, economists and sociologists work there. During the period of the KazISS activity, its experts have published more than 150 books on international relations, problems of global and regional security. The Institute is publishing four scientic and analytical magazines: Kogam zhane Dauir (in Kazakh), KazakhstanSpektr, Analytic (in Russian), and Central Asias Affairs (in English). Kogam zhane Dauir, Kazakhstan-Spektr and Analytic are included in the list of scientic publications of the Committee for Control in the Sphere of Education and Science of the Kazakh Ministry of Education and Science for publishing primary scientic results of dissertations. The KazISS has a website that offers information in three languages Kazakh, Russian and English. About 184,859 users visit the KazISS website annually, and the greater part of them are foreign citizens. The KazISS annually conducts a great number of international scientic conferences, seminars and round table discussions. Foreign experts are interested in the KazISS conferences which have been conducted annually since 2003 and are devoted to problems of security and cooperation in Central Asia. Not only experts from
354

Kazakhstan and the Central Asian countries, but also scientists from Russia, China, Germany, France, India, Turkey, Pakistan, Japan and other countries attend the KazISS scientic forums. Students of the leading Kazakh universities and foreign experts undergo practical trainings and internship at the KazISS. At present, the Institute provides all necessary conditions for professional and scientic growth of its staff, e.g. for defense of Masters and Ph.D. theses. For more information about the KazISS please call or visit us at the following address: 87 B Dostyk Avenue 050010, Almaty Republic of Kazakhstan Tel: +7 (727) 264-34-04 Fax.: +7 (727) 264-49-95 E-mail: ofce@kisi.kz http://www.kisi.kz

355

Kazakhstan today

Scientic publication

KAZAKHSTAN TODAY
Monograph

Designer A.K. Sadvakasov Page maker A.A. Zhumagaliyeva Translation and editing by Tandem Ltd.

In the book authors used materials of the www.akorda.kz, www.astana.kz, www.inform.kz and www.yvision.kz websites and the archives of the KontinenT magazine
Signed for publishing: 25.04.2010. Format: 6090 1/16. Offset paper. Offset printing. Paper size 22.25 Circulation 2,000 The Kazakhstan Institute for Strategic Studies under the President of the Republic of Kazakhstan 87 B Dostyk Avenue, Almaty, 050010 Printed in the Ye V Volkova IP publishing house, Almaty

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