A WEEKLY ONLINE PUBLICATION / WWW.MFA.GOV.KZ ISSUE NO. 434 / FRIDAY, DECEMBER 4, 2015

Presidential Address Notes Challenges, Anti-Crisis Measures

Day of the First President Celebrates 24 Years of Achievement

Also In The News

FM Meets With UN, Austrian Officials, Addresses ECFA in Vienna

Presidential Address Notes Challenges, Anti-Crisis Measures

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President of Kazakhstan Nursultan Nazarbayev delivered his annual State of the Nation address Nov. 30, focusing on measures to ride out global crises and outlining changes in Kazakhstan’s financial system and fiscal and social policy.

A major announcement was a programme giving citizens free vocational training starting in 2017. “Technical and vocational education should be a major focus of investment policy,” the President stressed, as reported in The Astana Times.

Kazakhstan needs to return to a level of economic growth that will help it join the world’s top 30 most developed countries, he said. That means finding new internal sources of growth, deeply reforming state and corporate management and the country’s financial and fiscal sectors, and continuing to modernise.

Comprehensive anti-crisis and structural changes will be implemented in five areas – social policy, financial sector, budget policy, privatisation and competency regulation, and investment policy, he said.

Nazarbayev announced that salaries of health, education and social protection employees will be increased next year by 28–30 percent and social benefits for those categories upped by 25 percent. Salaries of B corps state employees will also be raised by 30 percent.

A new employment road map programme will be developed in early 2016, including programmes for short-term retraining and skills development and more loans for business development, the President explained – and told the nation that state support for those who can work will be provided only if they participate in retraining and employment programmes as of 2017.

“State-targeted support will be provided only to needy citizens based on an assessment of their real incomes and living conditions. All others must earn by working,” said the President. “The priority of the state in social policy should be the massive investment in human capital. We must continue to modernise education and health in accordance with previously adopted programmes.”

Regarding the recently volatile tenge, Nazarbayev said the National Bank would no longer intervene in the exchange rate and that inflation was to be brought to 4 percent.

The bank will also be required to conduct stress testing of all banking sector subjects on nonperforming loans. Banks that are unable to solve the problem of capitalisation must “leave the financial system,” he said. In 2016, pension assets will be transferred to management

by private domestic and foreign companies. The pension fund, Fund of Nonperforming Loans and other financial institutions will be withdrawn from the National Bank’s control, he said.

Kazakhstan must live within its means, Nazarbayev said. Taxes will not be raised, though tax revenues have fallen by almost 20 percent, value-added tax (VAT) by 25 percent and revenues from corporate taxes by 13 percent.

A new sales tax instead of the existing VAT will be introduced in 2017, he said. Ineffective tax incentives will be cancelled and the government must conduct a full audit of all budgetary programmes.

The work of national holdings was also criticised as “ineffective.” The government was instructed to develop a new privatisation programme to include all entities owned by the state, including those under Samruk Kazyna, Baiterek and KazAgro.

Antimonopoly activities need to be strengthened, artificial price control must be eliminated and processes of bankruptcy and rehabilitation of inefficient companies should be regulated, Nazarbayev said. He also spoke to the country’s entrepreneurs, urging them to participate in programmes to legalise real estate and capital and to participate in privatisation.

Nazarbayev also said he was saddened by Turkey’s downing of a Russian plane near the Syrian-Turkish border. He called for restraint on both sides, but also clearly said the Russian plane had been there to attack terrorists, not Turkey. He urged both sides to remain calm while the incident is investigated and then to resume building relations.

“However difficult it is, there needs to be a way to work together to create a commission to identify those responsible, to punish them, to admit any mistakes and to restore the relationship,” he said.

“However difficult it is, there needs to be a way to work together to create a commission to identify

those responsible, to punish them, to admit any mistakes and to restore

the relationship.” - President of Kazakhstan Nursultan Nazarbayev

President Nursultan Nazarbayev addresses the nation Nov. 30

Day of the First President Celebrates 24 Years of Achievement

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On December 1, Kazakhstan marks the Day of the First President, commemorating the anniversary of the country’s first ever popular democratic election of a national leader back in 1991.

A thoughtful editorial in The Astana Times newspaper reflected upon the date’s meaning for the Kazakhs.

Twenty-four years ago this month, Kazakhstan began its journey as an independent nation, and it would not be an exaggeration to say that outside observers would have seen nothing but trouble ahead for the young country – if they thought anything about it at all.

Those observers can’t be faulted for their doubts. Kazakhstan, a shard of the newly fragmented Soviet Union, may have been large in size, but the assets the country had on which to build its future looked small, and the challenges looming were great.

In the chaos of the collapse of the Soviet Union, young Kazakhstan was left with out-of-date industries and under-funded public services. Standards of living were low; quality of life was poor.

Kazakhstan’s history and geography back then were not seen as assets, but as problems to be added to an already daunting mix. Central Asia was seen as remote. Charting an independent course in the world when surrounded by such powerful neighbours was viewed as a possibility even more remote. On top of that, the migrations – forced and voluntary – of the past meant Kazakhstan’s population was made up of many different ethnic, cultural and religious groups in a region where ethnic tensions are never far from the surface.

Nearly a quarter century on, there are still challenges to conquer. Kazakhstan is not immune to the forces wreaking havoc on the global economy at the moment, for example. But by any assessment, the nation whose beginnings looked dire has enjoyed remarkable, sustained progress. Kazakhstan has risen to become a middle-income country. Living standards and general well-being have improved dramatically, as have the opportunities available to the population. Kazakhstan is a stable and respected member of the world community today.

This progress is, of course, a collective achievement in which everyone in Kazakhstan – as well as the international partners who gave valuable support – can take pride. However, on December 1, the nation recognises the man who has guided it throughout this period of progress: Nursultan Nazarbayev.

The date is the anniversary of Nazarbayev’s election by a popular vote as the first President of an independent Kazakhstan in 1991. It

Gala concert in honour of the Day of the First President in Astana

has been celebrated as the official public holiday First President’s Day since 2012.

It is not unusual for a country to celebrate its first President when he or she has played a critical role in establishing the nation. The U.S., for example, has celebrated Washington’s Birthday – now called Presidents’ Day – as an official holiday since 1885.

What causes some discussion is that in Kazakhstan’s case, this recognition is being given while the President is still in office.

But while few individuals in history can equal the role Washington played as the father of the U.S., he only served as its president for eight years. President Nazarbayev has now been the leader of Kazakhstan for three times as long, and commemorating an event that happened nearly a generation ago doesn’t seem so strange.

Despite his long service, Nazarbayev’s popularity, measured both by successive election results and by independent surveys, remains strong, and the respect in which he is held is obvious. Kazakhstan’s population understands and appreciates the role Nazarbayev has played in building prosperity and harmony and giving the new country a voice and status in the world. Looking outside Kazakhstan’s borders to see the challenges other countries in the region face – and which Kazakhstan itself continues to navigate – the appreciation only grows.

Nazarbayev’s leadership and friendship are also valued by Kazakhstan’s international partners, who recognise the role the country plays in promoting dialogue and peace and the lead Nazarbayev has personally provided regarding nuclear disarmament.

It is for all these reasons that Kazakhstan celebrates First President’s Day. It is a day to recognise not just the achievements of one man but what, thanks to his leadership, the citizens of a young country have built together.

Nearly a quarter century on, there are still challenges to conquer. Kazakhstan is not immune to the forces

wreaking havoc on the global economy at the moment, for example. But by any assessment, the nation whose beginnings looked dire has enjoyed

remarkable, sustained progress. Kazakhstan has risen to become a middle-income country. Living standards

and general well-being have improved dramatically, as have the opportunities available to the population. Kazakhstan is a stable and respected member of the

world community today.

FM Meets With UN, Austrian Officials, Addresses ECFA in Vienna

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Minister of Foreign Affairs of Kazakhstan Erlan Idrissov held a number of bilateral and multilateral meetings and took part in the second Annual Meeting of the Advisory Council of the Eurasian Council on Foreign Affairs (ECFA) during his working visit to Vienna Dec. 2. The date of the meeting coincided with the fifth anniversary of Kazakhstan’s chairmanship of the Vienna-based Organisation for Security and Cooperation in Europe (OSCE) and adoption of the Astana Declaration at the Astana OSCE Summit of 2010.

Idrissov began at the UN offices in Vienna, meeting UN Deputy Secretary-General and Executive Director of the UN Office on Drugs and Crime (UNODC) Yury Fedotov to discuss cooperation between Kazakhstan and the UNODC, fighting corruption, revitalising international agreements and the initiatives proposed by President of Kazakhstan Nursultan Nazarbayev at the UN General Assembly in September, reported The Astana Times.

With Director General of the International Atomic Energy Agency (IAEA) Yukiya Amano, Idrissov discussed implementing the agreement between Kazakhstan and the IAEA on establishing a bank of Low-Enriched Uranium (LEU) in the country.

Following that, Idrissov and Director General of the UN Industrial Development Organisation (UNIDO) Li Yong signed an administrative agreement between the government of Kazakhstan and the UNIDO on targeted contributions to the Industrial Development Fund.

With Executive Secretary of the Comprehensive Nuclear-Test-Ban Treaty (CTBTO) Lassina Zerbo, Idrissov reviewed the Plan of Action of Kazakhstan and Japan for their co-chairmanship in the Article XIV Conference on the CTBT.

Among Idrissov’s bilateral meetings were talks with Federal President of Austria Heinz Fischer and Federal Minister for European Integration and International Affairs Sebastian Kurz. The sides noted the good pace of the development of relations between Astana and Vienna and Kazakhstan’s interest in advanced Austrian technologies and expertise alongside Austria’s interest Kazakhstan’s energy resources.

Fischer praised the cooperation between Kazakhstan and Austria and Nazarbayev’s initiatives in strengthening international security and sustainable economic growth. Austria also confirmed their interest in participating in EXPO 2017 in Astana. Idrissov emphasised that Kazakhstan is working to diversify its economy and upgrade

its industrial base, with the emphasis on transitioning from the raw materials sector to innovative development.

The sides also reviewed international issues including the situation in Syria, Iran and Ukraine.

Later, Idrissov attended the meeting of the ECFA, a pan-European think tank launched last year in Brussels and focusing on Europe’s relations with countries of Eurasia and Central Asia. The ECFA is chaired by former Foreign Minister of Austria and former EU Commissioner for External Relations Benita Ferrero-Waldner. Prominent European politicians, including former Czech President Vaclav Klaus, former Polish President Aleksander Kwasniewski, former Norwegian Prime Minister Kjell Magne Bondevik and former Spanish Prime Minister Jose Maria Aznar attended the meeting to consider the impact of current geopolitical changes on Europe and Eurasia.

The Eurasian region “is each year making greater contributions to the global dialogue on energy security, the environment, people and drug trafficking and counterterrorism. For that reason, the ECFA is a very useful instrument to further improving relations between Central Asia and the European Union, as well as the world,” Ferrero-Waldner said in her speech, according to a press release distributed by ECFA.

At the meeting, increased cooperation between the EU and Central Asia concerning all aspects of mutual security and information-sharing, deepening EU-Central Asian energy security and trade bonds, nuclear nonproliferation and developing links between European and Central Asian political institutions were discussed.

Addressing the council, Idrissov recalled the language of the Astana Declaration, which described “a vision of a free, democratic, common and indivisible Euro-Atlantic and Eurasian security community stretching from Vancouver to Vladivostok, rooted in agreed principles, shared commitments and common goals.” According to Idrissov, the Astana Declaration “is more relevant now than ever, as we see crises in international relations that make the need for better understanding and more robust and trustful dialogue among all countries in Europe and Eurasia even more dire.”

Kazakh FM Idrissov (left) with Executive Director of the UN Office on Drugs and Crime, Director-General of the UN Office in Vienna Yuri Fedotov

Also In The News...

• PresidentsignsnewbudgetlawsPresident of Kazakhstan Nursultan Nazarbayev signed the law “On the national budget for 2016–2018.” The law was developed in accordance with the Budgetary Code of Kazakhstan based on the basic forecast of macroeconomic indicators for 2016–2020 and the President’s requests and statements in addresses to the nation. Nazarbayev also signed a law on amendments to the existing budget for 2015–2017 aimed at improving macroeconomic indicators of the social and economic development of the country. (akorda.kz)

• PrimeMinisteroftheNetherlandsvisitsAstanaPrime Minister of the Netherlands Mark Rutte arrived in Astana Dec. 2 for an official visit which was intended to strengthen diplomatic and economic ties between the two countries and which included the signing of an official agreement on the Netherlands’ participation in EXPO 2017. Rutte held meetings with Kazakhstan’s President Nursultan Nazarbayev, Prime Minister Karim Massimov, Chairman of the Senate Kassym-Jomart Tokayev and Chairman of the Mazhilis (lower chamber of Parliament) Kabibulla Dzhakupov.Nazarbayev and Rutte discussed the status of bilateral economic relations, issues in the oil and gas industry, agriculture, transport and space development and exchanged views on international issues. Within the framework of talks in Astana, Chairman of the Astana EXPO 2017 National Company Akhmetzhan Yessimov and Ambassador of the Netherlands to Kazakhstan Hans Driesser signed an agreement on the Netherlands’ participation in the upcoming international specialised exhibition EXPO 2017 in Astana (akorda.kz)

• Kazakhstan,ChinasignagreementsonmodernisingoilrefineryThe Petro Kazakhstan Oil Products company, which manages a refinery in Shymkent, Kazakhstan, and China Petroleum Engineering & Construction (CPECC) in Beijing have signed an additional agreement to their existing contract for the implementation of the second phase of reconstruction and modernisation of the plant Nov.30. The document defines the fixed price of the contract based on the results of a review of the design and estimate documentation of the project obtained by Petro Kazakhstan Oil Products. The project of reconstruction of one of the three largest oil refineries in Kazakhstan is aimed at increasing the processing capacity of the plant from 5.25 million tons to 6 million tons, as well as increasing its manufacture of light oil products from 61 percent to 89 percent, bringing the quality of the products to Euro-3 standard. (inform.kz)

• DayofFirstPresidentCelebratedinAnkaraThe Day of the First President of Kazakhstan was celebrated in Turkey’s capital city, Ankara. The celebration included exhibits of President Nursultan Nazarbayev, who the holiday honours, paintings, copies of records of his visits to Turkey, books and videos translated into Turkish by Kazakhstan’s embassy in Turkey. Special interest was sparked by a five-volume edition of selected works of Nazarbayev issued by the embassy in the Turkish language. The edition includes the books “In the heart of Eurasia,” “In the Flow of History,” “Critical Decade,” “Kazakhstan’s Path” and “On the Threshold of the 21st Century.” (kazinform.kz)

• Ministry of Defence to develop new peacekeeping trainingprogrammeKazakhstan’s Ministry of Defence plans to develop a new programme for training peacekeepers to expand its peacekeeping work. The ministry plans to hire military officers who have participated in UN missions to train Kazakhstan’s peacekeepers. A training centre for peacekeeping operations has been established at Military Base 61933 to prepare military personnel for Kazakhstan’s peacekeeping battalion. At this stage, the programme is considering recruiting military personnel from Kazakhstan’s army who have taken part in peacekeeping operations with UN and trained under the guidance of American and British instructors. (Tengrinews.kz)

• PresidentlightsmainNewYeartreeinAstanaPresident Nursultan Nazarbayev took part in the ceremony of lighting the main New Year tree of the country Dec. 1. For several years on the first day of winter, the President has lit the main New Year tree of the country. This year, the 25-metre-high main New Year tree is located near the Khan Shatyr entertainment and shopping centre. The event was attended by more than 2,300 students as well as creative teams of the city. (akorda.kz)

• PresidentmeetsdirectorofHermitageMuseumPresident Nursultan Nazarbayev of Kazakhstan met Director of the Russian State Hermitage Museum Mikhail Piotrovsky in Astana. During the meeting, Nazarbayev noted importance of establishing cooperation between the National Museum of Kazakhstan and the Hermitage. The President thanked Piotrovsky for his visit to Astana, emphasising that experience exchange and regular working contacts between museums would make a significant contribution to the preservation of the cultural and historical heritage of the peoples of Russia and Kazakhstan. Piotrovsky reported on the Days of the Hermitage exhibit held Dec. 1–2 at the National Museum of Kazakhstan and thanked the President for his attention to the development of cross-cultural interaction between the two countries. (akorda.kz)

• ArchitectureprojectdesignedforKazakhstangainsinternationalattentionThe Slalom House project, designed by architect from Kazakhstan Shokhan Mataibekov representing the Union of Architects of Kazakhstan, was one of two of the country’s projects shortlisted for an award at the World Architecture Festival held in Singapore in November and is gaining international attention for its fanciful design.Slalom House project has earned praise for its whimsical design, and has been included on lists like Business Insider’s “33 Ridiculously Cool Buildings of the Future” and the Huffington Post’s “World’s Most Amazing Future Condo Developments.” If built, the residential tower block would have a total area of more than 75,000 square metres, of which nearly 40,000 are meant for 421 apartments. The slalom slope would be 326 metres long and 27 metres wide. The concept envisions the construction of a slalom slope on the top of a U-shaped living complex. According to the architects, Slalom House, with its ski slope, could both contribute to the sport and entertainment options of Astana and become a tourist destination, as there is no other building like it in the world. The skiing option will be available all year thanks to the Snowflex synthetic system. (astanatimes.com)

• DenisTenwinssilveratinternationalicedancecompetitionKazakhstan’s figure skater and bronze medalist at the Sochi Winter Olympics Denis Ten won silver at the International Competition for Ice Dance NRW Trophy 2015, which was held in Dortmund, Germany, Nov. 25–29. Ten was third with 82.63 points after performing his short programme. His free skating earned him 159.28 points, allowing the Olympic champion rise to second place. Jorik Hendrickx of Belgium took the gold and Russian Sergey Voronov, who was ranked first after the short programme, eventually secured the bronze. (sports.kz)

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