Visual contextualization of nena countriesAriel Scharf
A brief visual summary of the government structure, population, history and important issues of each Near East and North African country to provide basic information and context.
Visual contextualization of nena countriesAriel Scharf
A brief visual summary of the government structure, population, history and important issues of each Near East and North African country to provide basic information and context.
Caretaker government and election in pakistanSibtain Raza
Here you can get all the information related to the process of caretaker government. If you need any type of further knowledge you can directly contact me .Always welcome :)
Actions in Aid of Civil Power: Analysis and Recommendations (February 2013)fatanews
Recommendations on Pakistan's Actions in Aid of Civil Power Regulation 2011 as made by Amnesty International and the International Crisis Group (ICG). Read the full text of the actual regulation at: http://www.slideshare.net/fatanews/fata-actions-in-aid-of-civil-power-2011-0627-june
In an update on forthcoming all-India census you can list the details that people have to be ready with so that the process would be easier, smoother for everyone involved. Since the same data will be used for UID Card, keeping everything ready will help provide proper data with correct spellings.
A presentation for newly recruited veterinarians to the department of Animal Production and Health Sri lanka. To make them aware of how the provincial council system works in the country
Programa Internacionalización de Empresas - Irak, Mercado de OportunidadesCIE Barcelona
Reunión Técnica con Representantes de Gobiernos de Irak y Consultores especializados en llevar empresas Españolas a este potente Mercado. Asisten ademas 16 Emkpresarios Iraquies que buscan seleccionar proveedores de servicios y Productos.
This is the vital assignment for IPE239 Comparative Political Systems, IPED Prpgram, Rangsit University. The course part aims at providing an introduction to the field of comparative politics. Various theoretical perspectives and basic concepts within the field are taken up. The political systems of a number of countries - in relation to formal political institutions and informal aspects of the political order - are presented, discussed and compared. Issues of identity as well as the position of nation states in a global context are also dealt with. The course part includes an introduction to comparative method and sources of knowledge about political systems.
FATA Local Governance Reforms: Long Road to Nowhere? (report, October 2012, U...fatanews
Summary
Pakistan’s Federally Administered Tribal Areas (FATA) remain mired in an archaic century-old system of indirect governance that provides space in which militant movements have thrived.
President Asif Ali Zardari recently announced the FATA Local Governance Regulation 2012, establishing a system of local councils in the troubled tribal region.
Although the regulation is disappointingly vague, and retains the sweeping prerogatives of the central government, it appears to have been driven in part by the army’s interest in building civilian governance capacity in conflict-torn areas.
The governments of Pakistan and the United States, along with local and international stakeholders, should advocate for continuity of implementation, insist on party-based local council elections, encourage experimentation within the bounds of the regulation, link the new councils to existing development structures, press the government to articulate a longer-term political vision for the FATA, and be realistic about the necessity of the army’s active involvement in shaping governance policy in the tribal areas.
About this Brief
Joshua T. White was a 2011–12 Jennings Randolph Peace Scholar at the U.S. Institute of Peace. He holds a Ph.D. from Johns Hopkins University, and conducted a portion of this research in conjunction with a generous grant from the American Institute of Pakistan Studies. Shuja Ali Malik received his M.Sc. in International Relations from Quaid-e-Azam University, and works as a producer at an Urdu-language news service in Islamabad. The views expressed in this brief do not necessarily reflect the views of the U.S. Institute of Peace, which does not take policy positions. Subscribe to our email newsletter at http://eepurl.com/qnf75
Mining, cleaning and sorting through open data is difficult. That's why we've done the work for you. Here are our insights and analyses on one of the world's largest data collection efforts – the 2011 Indian Census.
Third Annual Progress Report: Ghana-NPoA 2008Dr Lendy Spires
This Report is the Third Annual Progress report submitted by the National African Peer Review Mechanism - Governing Council (NAPRM-GC) to the APR Panel. The Report covers the period January – December 2008 and provides an overview of Ghana’s progress in implementing the National Programme of Action. The period under review will witness an election which will transfer power from one government to another government. This comes as a result of the current government having successfully served two consecutive 4-‐year terms. The election will be an acid test to the steadfastness of governance institutions in the country, particularly for the Electoral Commission and security institutions as well as for political parties. These institutions have to date performed creditably and it is the hope and wish of Ghanaians that they continue to do so.
CPLR annual activity report for 2015. Year 2015 in Ukraine for Constitutionalism, Governance and Public Administration, Judiciary, Criminal Justice, Combatting Corruption. CPLR achievements, publications, financial report, donors.
Caretaker government and election in pakistanSibtain Raza
Here you can get all the information related to the process of caretaker government. If you need any type of further knowledge you can directly contact me .Always welcome :)
Actions in Aid of Civil Power: Analysis and Recommendations (February 2013)fatanews
Recommendations on Pakistan's Actions in Aid of Civil Power Regulation 2011 as made by Amnesty International and the International Crisis Group (ICG). Read the full text of the actual regulation at: http://www.slideshare.net/fatanews/fata-actions-in-aid-of-civil-power-2011-0627-june
In an update on forthcoming all-India census you can list the details that people have to be ready with so that the process would be easier, smoother for everyone involved. Since the same data will be used for UID Card, keeping everything ready will help provide proper data with correct spellings.
A presentation for newly recruited veterinarians to the department of Animal Production and Health Sri lanka. To make them aware of how the provincial council system works in the country
Programa Internacionalización de Empresas - Irak, Mercado de OportunidadesCIE Barcelona
Reunión Técnica con Representantes de Gobiernos de Irak y Consultores especializados en llevar empresas Españolas a este potente Mercado. Asisten ademas 16 Emkpresarios Iraquies que buscan seleccionar proveedores de servicios y Productos.
This is the vital assignment for IPE239 Comparative Political Systems, IPED Prpgram, Rangsit University. The course part aims at providing an introduction to the field of comparative politics. Various theoretical perspectives and basic concepts within the field are taken up. The political systems of a number of countries - in relation to formal political institutions and informal aspects of the political order - are presented, discussed and compared. Issues of identity as well as the position of nation states in a global context are also dealt with. The course part includes an introduction to comparative method and sources of knowledge about political systems.
FATA Local Governance Reforms: Long Road to Nowhere? (report, October 2012, U...fatanews
Summary
Pakistan’s Federally Administered Tribal Areas (FATA) remain mired in an archaic century-old system of indirect governance that provides space in which militant movements have thrived.
President Asif Ali Zardari recently announced the FATA Local Governance Regulation 2012, establishing a system of local councils in the troubled tribal region.
Although the regulation is disappointingly vague, and retains the sweeping prerogatives of the central government, it appears to have been driven in part by the army’s interest in building civilian governance capacity in conflict-torn areas.
The governments of Pakistan and the United States, along with local and international stakeholders, should advocate for continuity of implementation, insist on party-based local council elections, encourage experimentation within the bounds of the regulation, link the new councils to existing development structures, press the government to articulate a longer-term political vision for the FATA, and be realistic about the necessity of the army’s active involvement in shaping governance policy in the tribal areas.
About this Brief
Joshua T. White was a 2011–12 Jennings Randolph Peace Scholar at the U.S. Institute of Peace. He holds a Ph.D. from Johns Hopkins University, and conducted a portion of this research in conjunction with a generous grant from the American Institute of Pakistan Studies. Shuja Ali Malik received his M.Sc. in International Relations from Quaid-e-Azam University, and works as a producer at an Urdu-language news service in Islamabad. The views expressed in this brief do not necessarily reflect the views of the U.S. Institute of Peace, which does not take policy positions. Subscribe to our email newsletter at http://eepurl.com/qnf75
Mining, cleaning and sorting through open data is difficult. That's why we've done the work for you. Here are our insights and analyses on one of the world's largest data collection efforts – the 2011 Indian Census.
Third Annual Progress Report: Ghana-NPoA 2008Dr Lendy Spires
This Report is the Third Annual Progress report submitted by the National African Peer Review Mechanism - Governing Council (NAPRM-GC) to the APR Panel. The Report covers the period January – December 2008 and provides an overview of Ghana’s progress in implementing the National Programme of Action. The period under review will witness an election which will transfer power from one government to another government. This comes as a result of the current government having successfully served two consecutive 4-‐year terms. The election will be an acid test to the steadfastness of governance institutions in the country, particularly for the Electoral Commission and security institutions as well as for political parties. These institutions have to date performed creditably and it is the hope and wish of Ghanaians that they continue to do so.
CPLR annual activity report for 2015. Year 2015 in Ukraine for Constitutionalism, Governance and Public Administration, Judiciary, Criminal Justice, Combatting Corruption. CPLR achievements, publications, financial report, donors.
The 2017 Investment Policy of Kazakhstan is well structured to attract foreign investors and multinational corporations seeking to contribute to balanced economic and GDP growth for Kazakhstan.
A new era is about to start in Kazakhstan. Faced with external economic pressures and reduced oil revenues, the country’s leadership has launched two major initiatives designed to stimulate the economy – Plan for a Nation and Bright Path. Invest in Kazakhstan 2016 drills under the surface of the reforms to find out what opportunities they present for investors.
The Challenges for Resource based industries in developing markets are multi-dimensional.
Balancing social responsibilities and innovation in market models will play an important role.
A large part of so called slow down in the infrastructure investments can be traced to these issues; and they will continue to exist despite changes in governments
Each year we at Trevian publish a guide we hope helps American companies gain the comfort and confidence to expand their business to Kazakhstan. This is our 2017 Guide to Doing Business in Kazakhstan.
Yao li Ps 104-02Country profile BelizeGeneral Indicators..docxjeffevans62972
Yao li
Ps 104-02
Country profile: Belize
General Indicators.
· Capital: Belmopan,16.451(2010)
· Area: 8,867 square Miles (22,966 km2 ) (2014)
· Population: 61,460 people.( 2014)
· Population Growth Rate: 1.92% (2014)
Economic Indicators.
· GDP (PPP): $1.624 billion(2013)
· Per Capital GDP( PPP): 8,800 (2013 Est)
· Distribution of GDP: Agriculture 13%, Industry 23%, Service 64%(2012 Est)
· Urban Population: 44.78% (2011)
· Population below poverty line: 41%(2013 Est)
· Labor force participation rate( Ratio of female to male shares): .656(2013)
· Environmental Performance Index (EPI) Ranking ( and score): 88(50.46)(2014)
Analysis section: Per capital GDP is average about all people’s income in the state. According to number, they have 8,800 for one year and their GDP (PPP) is $1.624 billion. For example, Belize compare with china, Chinese GDP (PPP) is $9.24 trillion, but the Per capita GDP (PPP) only have $6807.43. So, Belize people income is much higher than Chinese, and in the other words, they living standard is higher than Chinese.
Social Indicators.
· Human Development Index( HDI) Ranking (and value): 84(.732) (2013)
· Gender Inequality Index (GII) Value: 043 (2013)
· Infant Mortality Rate: 20.31/1000 (2014)
· Literacy: 76.9% (76.7% Male and 77.1% Female) (2000 census)
· Religions: Roman Catholic 39.3%, Pentecostal 8.3%, Seventh Day Adventist 5.3%, Anglican 4.5%, Mennonite 3.7%, Baptist 3.5%, Methodist 2.8%, Nazarene 2.8%, Jehovah's Witnesses 1.6%, other 9.9% (includes Baha'i Faith, Buddhism, Hinduism, Islam, and Mormon), other (unknown) 3.1%, none 15.2% (2010)
Analysis section:
Infant Mortality means the rate of baby died before one year old. The Infant mortality in Belize compare to Japan is very low. Which means the medical care is not mature, the environment is not well. Belize is developing country and the territory is very small (22,966 km2) so the country resource is not as well as another country. The area is close to tropic, it is good for agriculture. The people in Belize doesn’t obtain enough educated. The literacy only 76.7%. The education is very important to the country development. This is one of the reason that Belize is a developing country.
Political Indicators.
· Freedom House Rating (Freedom in the World Report) : Free; Political Rights—1, Civil Liberties—2.(2014)
· Corruption Perception Index (CPI) Ranking ( and score) : 62 (3.7) (2005)
· Press Freedom Index ( Reporters Without Borders) Ranking ( and index score) : 30 (18.54) (2015)
· Shares in Parliament, female- male ratio: 0.13 (2011)
· Date of State Formation: 7 September 1822 (from Portugal)
· System Type: Parliamentary Democracy and a commonwealth real monarchy.
· Constitution: Published in 1981
· Administration: Unitary monarchy
· Executive : Chief of state: Queen ELIZABETH II (since 6 February 1952); represented by Governor General Sir Colville YOUNG, Sr. (since 17 November 1993) head of government: Prime Minister Dean Oliver BARROW (since 8 February .
On 19 September 2006, the Royal Thai Armed Forces staged a coup d'état against then prime minister Thaksin Shinawatra, abrogated the 1997 constitution and formed a junta called Council for Democratic Reform (CDR). The 2006 interim constitution was then promulgated by King Bhumibol Adulyadej upon advice of the CDR leader, General Sonthi Boonyaratglin. The interim constitution established a Constitutional Convention (CC) and charged it with the duty to draft a new constitution before presenting the draft to the National Legislative Assembly (NLA), a legislature replacing the National Assembly abrogated by the CDR.[1] The CC set up a constituent committee to draw up the draft. The committee consisted of thirty five members, of whom 25 were selected by the CC itself and the other 10 were selected by the CC upon advice of the CDR.
The cost of federal legislation in nigeriastatisense
How PRODUCTIVE is the National Assembly?
This presentation explores budgetary allocations to the National Assembly since 1999 till date, and compares it with States Budgets, Federal Ministries & Agencies Budgets, as well as determine its ranking on a national budget scale
An Open Appeal to President, Chairman of the Parliament and Prime Minister of Ukraine urging to change the economic policy in order to protect national interests, ensure economic development and improve the standard of living in Ukraine
Unfair Elections in Vietnam (updated April 18, 2016)Doan Trang
This report provides an insight into the 2016 legislative elections in Vietnam, with an analysis of the political system and electoral process and how they are used to restrict the citizens’ right to participation.
It also gives factual accounts of harassment and rights violations against the independent candidates who, for the first time in the country’s history, courageously speak out against the repressive system by employing social media and standing for an election in which they see no chance to win.
Restriction of freedoms of movement, expression and assembly, intimidation and harassment by the police, defamation by the propagandists and the biased media are some among many forms of rights violation. Besides, the independent candidates are subjected to public haranguing in “meetings with constituents” which appear to be a procedure unique to China and Vietnam.
The analysis and accounts highlight the conclusion that the legislative elections in Vietnam are not free and fair under the rule of the Vietnamese Communist Party. Steps should be taken to bring about a legal and political reform in the country to ensure promote human rights, of which the rights to participation are crucial.
Similar to An Introduction to Kazakhstan for American Businesses (20)
An Introduction to Kazakhstan for American Businesses
1. A N I N T R O D U C T I O N T O
K A Z A K H S T A N
FOR AME R I C AN BUS INE S S E S
WA S H I N G T O N D C , D E C EMB E R 2 0 1 4
2. Kazakhstan is home of the apple. Scientists have used DNA evidence to locate
where the first eating apple grew. The wild variety,Malus Sieversii, which grows
on the slopes of the Tien Shan mountains, is the apple’s true ancestor.
Scratch the image of the apple to unlock it’s fresh scent.
3. Ayagoz Zaysan
Lepsi
A N I N T R O D U C T I O N T O
K A Z A K H S T A N
FOR AME R I C AN BUS INE S S E S
Qapshaghay Panfilov
Astana
Saryshaghan
Shu
Petropavl
Zhangatas
Balqash
Temirtau
Atbasar
Esil
Rudnyy
Ekibastuz
Turkistan
Orsk
Aral
Leninsk
Embi
Shalqar
Beyneu
Aqsay
Shymkent
Zhambyl
Taldygorghan
Oskemen
Oaraghandy
Koksnetau
Qostanay
Arqalyq
Zhezqazghan
Qyzylorda
Aqtobe
Oral
Aqtau
Pavlodar
For more information on investing or doing business in Kazakhstan,
visit www.trevianinternational.com
Atyrau
Almaty
4. CONTENTS
2 Kazakhstan: Facts and Figures
2 Political
2 Economic
2 Demographic & Social
4 Political Structure and Government
4 President
5 Parliament
7 Judiciary
8 History and Culture
10 Education
11 Nazarbayev University
11 Bolashak Presidential Scholarship Program
12 Human Rights
12 Human Rights Ombudsman
13 The Human Rights Action Plan
13 United Nations Human Rights
Commission (UNHRC)
AN INTRODUCTION TO KAZAKHSTAN FOR AMERICAN BUSINESSES
13 NGO Participation
14 Freedom of Religion
16 Economy
18 Special Section: Kazakhstan 2050 Strategy
19 Major Sectors
20 Priority Sectors
22 Special Section: In Focus–Chemicals and
Pharmaceuticals Industry
23 Special Section: The State Program for
Accelerated Industrial Innovative
Development (SPAIID)
24 Business and Investment Climate
25 Special Section: Doing Business in Kazakhstan
26 Special Section: Eurasian Economic Union
28 Investment
28 Investment Incentives
28 Investment benefits
31 Special Section: Expo 2017
5. 32 Investment Opportunities for U.S.Businesses
32 Oil, Gas, and Mining industries
33 Transportation & logistics
34 Information & communication technology
34 Energy
34 Power generation and distribution
35 Renewables
35 Green Bridge Initiative
36 Agribusiness
37 Chemicals and petrochemical
37 Pharmaceutical and biotechnology
37 Other
40 Kazakhstan-U.S.Relations
43 Trade and economic cooperation
44 Culture, democracy and human rights
45 Special Section: Jackson-Vanik Amendment
46 Regional Relations & Foreign Policy
46 Foreign policy
47 Regional security cooperation
47 Relations with Russia
47 Eurasian Economic Union (EEU) and
Customs Union
48 Regional security, terrorism and Iran’s
nuclear program
48 Relations with other Central Asian states
49 Relations with China
50 Looking Forward: Kazakhstan in the Future
AN INTRODUCTION TO KAZAKHSTAN FOR AMERICAN BUSINESSES 1
6. KAZAKHSTAN: FACTS AND FIGURES
KAZAKHSTAN: FACTS AND FIGURES
Political
Government Type: Presidential Republic
Chief of State: President Nursultan Nazarbayev
Head of Government: Prime Minister Karim Massimov
Legislative Branch: Bicameral Parliament – the Senate (47 seats) and the Mazhilis (107 seats)
Legal System: Civil Law System
Highest Courts: Supreme Court of the Republic, Constitutional Council
Suffrage: 18 years of age, universal
Capital: Astana (pop. 800,000)
Largest City: Almaty (pop. 1.5 million)
Administrative Divisions: 14 provinces and 2 cities of national status
Economic
GDP: $231.8 billion (2013)
GDP growth rate (annual): 6% (2013)
GNI per Capita: $20,570
Unemployment Rate: 5.3% (2011)
Youth Unemployment: 3.9% (2012)
Inflation: 5.8% (2013)
FDI Stock: $123.5 billion (2013)
Foreign Reserves: $27.7 billion
Agricultural Products: grain (mostly spring wheat and barley), potatoes, vegetables,
melons, livestock
Main Industries: oil, coal, iron ore, manganese, chromite, lead, zinc, copper, titanium,
bauxite, gold, silver, phosphates, sulfur, uranium, iron and steel; tractors and other
agricultural machinery, electric motors, construction materials
Exports: $84.7 billion (2013)
Imports: $48.8 billion (2013)
Demographic & Social
Population: 17.04 million (2013)
Population Growth Rate: 1.17% (2014)
Life Expectancy: 70 years (2014)
Median Age: 29.7 years (2014)
Ethic Groups: Kazakh 58.9%, Russian 25.9%, Uzbek 2.9%, Ukrainian 2.9%, Uighur 1.5%,
Tatar 1.5%, German 1.5%, other 4.0% (2009 est.)
Religion: Muslim 70.2%, Christian 26.2% (mainly Russian Orthodox), other 0.2%,
atheist 2.8%, unspecified 0.5% (2009 est.)
Major Languages: Kazakh (64.1%), Russian (95% – the business/government language in
the country)
Urban Population: 53.6% of total population (2011)
Health Expenditure: 3.9% of GDP (2011)
Literacy: 99.7%
AN INTRODUCTION TO KAZAKHSTAN FOR 2 AMERICAN BUSINESSES
7. NURSULTAN ABISHULY NAZARBAYEV
Nursultan Abishuly Nazarbayev
President of the Republic of Kazakhstan
Nursultan Nazarbayev has served as the President of the
Republic of Kazakhstan since its independence in 1991.
After the founding of the Republic, progressive economic
development policies succeeded in stabilizing a highly
volatile situation following the collapse of the Soviet
Union. Kazakhstan has since emerged as the most
economically successful nation in Central Asia, with a
booming, market-oriented economy that has achieved
an average annual growth of 8% since 2000 and with-stood
the global economic crises of 2008 and 2012. The
country boasts a democratically elected government and
an increasingly prosperous and sophisticated population,
all while maintaining harmony in the country’s multi-ethnic
population. Kazakh citizens have rewarded their
leader with multiple presidential landslide victories – in
1999, 2006 and 2011. In 2012, President Nazarbayev
announced the Kazakhstan 2050 Strategy, a vision of
Kazakhstan’s future at the core of which is the aspiration
to join the 30 most developed nations by year 2050. The
Strategy builds on the successes of Strategy 2030 and
aims to create a diversified, modern, knowledge-based
economy – an open country integrated into the global
community and economic marketplace.
Kazakhstan’s
principal ethnic
groups
4.0%
Other groups
2.9%
Uzbeks
2.9%
Ukrainians
1.5%
Uyghurs
1.5%
Tatars
25.9%
Russians
58.9%
Kazakhs
1.5%
Germans
AN INTRODUCTION TO KAZAKHSTAN FOR AMERICAN BUSINESSES 3
8. POLITICAL STRUCTURE AND GOVERNMENT
Political Structure
andGovernment
Since its independence from the Soviet Union in 1991, Kazakhstan has moved towards
a stable, democratic transition, which resulted in the establishment of a secular
constitution in 1995. The Constitution, modeled after Western principles of the
separation of powers, outlines the responsibilities of the executive, legislative and judicial
branches. The executive power is under the president, the government and the ministries.
The Senate and the Mazhilis control legislative powers. Lastly, the Constitutional
Council and the Supreme Court control judicial power.
President
The President of the Republic elected through a direct,
popular vote for a five-year term. The Constitution
gives the president the power to appoint and dismiss
the prime minister, with parliament’s approval. The
president may propose constitutional amendments,
and dissolve parliament during a national crisis. The
president is entrusted by the parliament all legislative
powers with a majority of two thirds of both chambers.
He has the right to veto laws, which may be countered
by a majority of two thirds of each chamber. As the
Commander in Chief of the armed forces, the president
retains the authority to make final decisions on issues
regarding national security and defense.
AN INTRODUCTION TO KAZAKHSTAN FOR 4 AMERICAN BUSINESSES
9. Parliament
The bicameral parliament is composed of the Senate
and the Mazhilis. The Senate includes forty seven
members. All fourteen regions, plus the cities of Astana
and Almaty, elect two representatives to serve for
six-year terms, with half of the Senate up for election
every three years.
Fifteen members are appointed by the president of
Kazakhstan with the view to ensure representation for
all the diverse national, cultural components of society.
The Mazhilis, with 107 members, makes up the
lower house of the legislative branch. 98 members are
elected by proportional representation to serve five-year
terms, and the Assembly of Peoples of Kazakhstan
chooses nine members.
The Assembly of Peoples of Kazakhstan gathers
prominent representatives from the country’s 140 ethnic
groups. The Assembly’s nine representatives in the
parliament are responsible for representing the
POLITICAL STRUCTURE AND GOVERNMENT
interests of the other 373 members of the Assembly
of Peoples.
The parliament has the right to take initiatives but
those having budgetary implications must be submitted
to the government for approval. Proposed bills are first
approved by at least two-thirds of the Mazhilis before
they are sent to the Senate for consideration. If the bill
is approved by at least two-thirds of the Senate within
sixty-days, the bill is sent to the president for his
signature. However, in case they are rejected, they are
returned to a second review by the Mazhilis who must
then vote by a majority of two thirds before returning
the bills again to the Senate. The parliament also
approves the president’s appointment of the prime
minister.
At the regional level, Maslikhats are local executive
bodies elected in each of the fourteen regions for
two-year terms through direct elections based on the
principles of universal suffrage. Maslikhats are in charge
AN INTRODUCTION TO KAZAKHSTAN FOR AMERICAN BUSINESSES 5
10. POLITICAL STRUCTURE AND GOVERNMENT
Karim Massimov
Prime Minister of the Republic of Kazakhstan
Mr. Karim Massimov is the current Prime Minister of the Republic of
Kazakhstan. He is responsible for the implementation of Kazakhstan 2050
Strategy as the country’s economy converges with the world’s 30 most
advanced economies. Massimov attended universities in Moscow and Beijing
and is fluent in Kazakh, Uyghur, Russian, Chinese, English, and Arabic. Karim
Massimov has held multiple positions, including Minister of Economy and
Budget Planning and Minister of Transport and Communications. Upon
assuming the position of Prime Minister in 2007, he successfully shepherded
the country through the global financial crisis. In 2012 Massimov assumed
the role of the Chief of Staff for the Presidential office. He was re-appointed
as Prime Minister in April 2014. Massimov is now working to maintain
Kazakhstan’s economic growth and implement the President’s “Kazakhstan
2050 Strategy.”
Erlan Idrissov
Foreign Minister of the Republic of Kazakhstan
Mr. Erlan Idrissov was appointed as the Foreign Minister of the Republic of
Kazakhstan in September 2012. Prior to his current appointment he held
multiple high level diplomatic appointments. Most prominently, he served as
the 1st Secretary of the Permanent Mission of Kazakhstan to the UN, aide to
the President of Kazakhstan, First Deputy Minister of Foreign Affairs of
Kazakhstan, Minister of Foreign Affairs of Kazakhstan. Mr. Idrissov has held
multiple ambassadorships, including the Extraordinary and Plenipotentiary
Ambassador of Kazakhstan to the United States of America, United Kingdom
and Brazil. Mr. Idrissov holds a degree from the Moscow Institute of
International Relations and speaks English, Hindi, Urdu and French.
Kairat Umarov
Ambassador of Kazakhstan to the United States
Ambassador Kairat Umarov has been the Ambassador to the US since January
2013. Prior this appointment, from 2009 to 2013, he served as a Deputy
Foreign Minister of Kazakhstan. Over his distinguished career in the foreign
service, he has held various positions at the Foreign Ministry and Presidential
Administration, including two stints as Counselor and Deputy Chief of
Mission at the Kazakhstan Embassy in Washington D.C., Ambassador-at-Large
at the Foreign Ministry, and Chief Inspector at the Center for Foreign Policy
of the Presidential Administration. From 2004-2009, he served as Ambassador
to India. From 2009 to 2013 he was Deputy Foreign Minister overlooking
bilateral relations with the United States, Kazakhstan's engagement with
international organizations and was responsible for raising international
awareness about Kazakhstan. He co-chaired the Kazakhstan-United States
Strategic Partnership Commission, the main bilateral cooperation mechanism,
and was Kazakhstan’s Sherpa at Nuclear Security Summits in Washington
D.C. and Seoul.
Mr. Umarov holds a PhD in History from Kazakh University of History,
Archeology and Ethnography and speaks Kazakh, Russian, English and French.
Ambassador Umarov speaks frequently on Kazakhstan’s strengths as a result
of its ethnic diversity, attractive investment and business climate, and
Strategic Partnership with the United States.
AN INTRODUCTION TO KAZAKHSTAN FOR 6 AMERICAN BUSINESSES
11. of social issues and under the supervision of “Akims”,
who are regional prefects appointed by the president.
Prime Minister
The prime minister is responsible for assembling and
submitting for approval to the president a unified
system of financing and labor payment for all entities
financed by the state budget. In an event of formidable
threat to the functioning of the country, the prime
minister is responsible for working with the president
and the Chairs of Parliamentary Chambers of the
republic to use the Armed Forces of the Republic. The
prime minister or the Chairs of Parliament Chambers
bear juridical responsibility for the legality of acts of
the parliament signed by the president as well as those
of the president.
The president, following consultations with parties
present in the Mazhilis selects the prime minister. The
prime minister is then appointed by majority of votes
by Mazhilis for a term of 5 years. After 10 days of his
appointment, the prime minister needs to provide a
proposal for the structure and composition of the
government to the president. The prime minister’s
main responsibility includes organization and
supervision of the government, sign resolutions of the
government, report the directions and decision taken
by the government to the president and perform other
functions linked to the organization and supervision of
the government’s activity.
Judiciary
The basic provisions regulating the structure and
activities of the judiciary are promulgated in the
constitution and the Law on the Judicial System. The
judicial branch of Kazakhstan consists of three levels:
The Supreme Court of Kazakhstan, local regional
courts and courts with equivalent regional court status,
and the local city and district courts.
In 2000, the government adopted judicial reform
that has significantly improved the country’s judicial
system. The reform entailed formation of the Judicial
Administration Committee under the Supreme Court,
establishment of judicial ethics commissions, and
increases in judicial salaries. It also raised the minimum
qualifications for judges and increased the independ-ence
of judges.
The Supreme Court has 44 members and is the
highest judicial body for civil, criminal and other cases,
as well as interpreter on the issues of judicial practice.
It acts as a court of appeal with regard to cases heard
by lower courts and a court of original jurisdiction for
certain categories of disputes. The District courts are
courts hear most cases, civil or criminal. Regional level
courts and city courts function as courts of appeal for
district court decisions.
AN INTRODUCTION TO KAZAKHSTAN FOR AMERICAN BUSINESSES 7
12. THE HEART OF EURASIA: HISTORY AND CULTURE OF KAZAKHSTAN
The Heart of Eurasia:
History and Culture
of Kazakhstan
Kazakhstan is built on 3,000 years of extraordinary history. The country’s development
has been influenced by such legends as Alexander the Great and Genghis Khan. For
centuries, the Silk Road through Kazakhstan served as one of the world's
oldest and most historically significant trade routes. Modern day
Kazakhstan traces its roots 550 years ago to the first Kazakh khanate in
1465. All of this has contributed to the richness of the Kazakh culture
and its capacity to adapt and develop.
Kazakhstan is located in the middle of the Eurasian
continent, sharing extensive borders with Russia, China,
Kyrgyzstan, Uzbekistan, Turkmenistan and the Caspian
Sea. Historically, Kazakhstan was the stage for “Silk
Road” commercial linkages and political relations
between different Eurasian powers. Today, Kazakhstan
plays an important role as a link between Europe,
Central and South Asia, East Asia, and the Asia-Pacific.
Following the emergence of the Soviet Union (USSR) in
1917, the Kazakh Autonomous Soviet Socialist Republic
was formed, becoming in 1936 the Soviet Republic of
Kazakhstan. The country was ruled by Soviet Russia,
which inflicted drastic measures to civilians, especially
forced agricultural collectivization, which created a
profound hunger wave that resulted in the death of
40% of the population at the time.
AN INTRODUCTION TO KAZAKHSTAN FOR 8 AMERICAN BUSINESSES
13. THE HEART OF EURASIA: HISTORY AND CULTURE OF KAZAKHSTAN
Kazakhstan’s population constitutes about 17.04 million
citizens. The main ethnic groups present in the country
are Kazakhs (58.9%), Russians (25.9%), Ukrainians
(2.9%), Uighurs (1.5%), Tatars (1.5%), Volga Germans
(1.5%) and other ethnicities (4%). There are over 140
different ethnic groups in Kazakhstan and the country is
well-known for its lack of interethnic tensions.
Kazakhstan has put great efforts in place to maintain
peace among its ethnic groups, which is essential for
the internal stability of the country. When visiting the
country in 2008, former UN General Secretary Kofi
Annan declared, “Kazakhstan may serve as example of
a peaceful multiethnic country where ethnic diversity
is a blessing, but not a curse.” Kazakh is the official state
language spoken by over 64.1% of the population. A
majority of the population, 95%, speaks the Russian
language, which is the second official language in the
Republic and the main means of inter-ethnic commu-nication.
Russian is also the primary language used in
local state organs, administrative bodies and business.
English is spoken by 15.4%. To have an international
competitive edge in the 21st century, the National
Trinity of Languages Program aims to ensure that all
citizens of Kazakhstan have full command of Kazakh,
Russian and English. However, the use of Kazakh
language is on the rise.
Astana Kazakhstan by night.
AN INTRODUCTION TO KAZAKHSTAN FOR AMERICAN BUSINESSES 9
14. EDUCATION
Education
Kazakhstan is committed to ensuring the education of its population. Already, 99.7% of
Kazakhstan’s population is literate, making it the 24th most literate country in the world
according to UNESCO’s Education For All Index. President
Nazarbayev recognizes that Kazakhstan’s future rests as
much on its ability to educate its people and improving
human capital is a key priority.
Having earmarked billions of dollars for education
reform, Kazakhstan is turning classrooms, at all levels
of learning, into modern refineries of the human capital
and talent needed to power the country’s industrial
development and sustain its ever-increasing integration
into the global economy.
Nowhere is that effort more evident than in the
Presidential Interactive Learning and Teaching
Initiative (PILTI), which upgraded the technological
capacity of thousands of secondary schools. Launched
in 2007 by former Minister of Education and Science
Zhanseit Tuimebayev, the PILTI aims to enhance the
teaching of science, technology, engineering and math
(STEM) by providing schools with a 21st century
learning environment. To do that, education officials
have assembled a team of the world’s top suppliers of
innovative education products, including members of
the UK consortium TVET UK and the California-based
firm Pasco Scientific. In the less than five years since
its launch, PILTI has facilitated the installation of new
AN INTRODUCTION TO KAZAKHSTAN FOR 10 AMERICAN BUSINESSES
15. STEM and language teaching technologies in more
than 20,000 classrooms across the country. More than
40,000 Kazakh teachers have been trained to use these
new tools and incorporate them into a pedagogical
method that emphasizes student participation, rather
than lecturing. There are plans to continue and increase
the scope of activity of the PILTI over the next several
years.
Nazarbayev University
Nazarbayev University was opened in Astana in 2010
with the mission of accelerating the development of
education and research facilities across Kazakhstan.
Nazarbayev University houses undergraduate schools
of engineering, science and technology, humanities
and social sciences, and pre-medicine. It boasts
state-of-the-art research centers devoted to life sciences,
energy, and education, the country’s largest English-language
library, graduate programs in business and
public policy, and a faculty made up almost entirely of
professors from foreign countries. Those professors, all
of them distinguished experts in their respective fields,
teach classes exclusively in English to the university’s
approximately 1,000 students. Annual enrollment in
Nazarbayev University is expected to reach 20,000
by 2020.
In an effort to attain an educational quality on a
par with the highest international standards, the
university has forged official partnerships with a number
of the world’s top-ranked schools, including University
College London, the National University of Singapore,
Harvard University, Carnegie Mellon University, the
EDUCATION
University of Wisconsin-Madison, the University of
Pennsylvania and the University of Pittsburgh. Partner-ships
have also been established with two US Depart-ment
of Energy national laboratories: the Lawrence
Berkeley National Laboratory at the University of
California and Argonne National Laboratory at the
University of Chicago.
‘Bolashak’ Presidential Scholarship Program
In 1993, Kazakhstan was the first Central Asian country
to launch a presidential scholarship program, ‘Bolashak’,
for international study. ‘Bolashak’, which means ‘future’
in Kazakh, speaks to the importance Kazakhstan puts
on educating its youth at the best universities in the
world. The Bolashak Program is an all-expenses paid
scholarship sponsored by the government of Kazakhstan
and awarded to high-performing students from
Kazakhstan for graduate study at an overseas university.
Upon completion of their graduate degree, Bolashak
scholars are required to return to work in Kazakhstan
for at least five years. The program is designed to train
future leaders in business, international relations, law,
science, engineering and other key fields.
Since its implementation in 1993, more than
10,000 students have been awarded the scholarship,
with most choosing to study in the United States and
Great Britain. They have successfully graduated from
America’s leading universities including Harvard,
Massachusetts Institute of Technology, Columbia,
Duke, Georgetown, Emory, Carnegie Mellon, Indiana
University, Vanderbilt and many others.
AN INTRODUCTION TO KAZAKHSTAN FOR AMERICAN BUSINESSES 11
16. HUMAN RIGHTS
Human Rights
Kazakhstan has consistently recognized the importance of human rights to the success
of the country. The first article of the constitution stipulates that the highest values of
Kazakhstan are “an individual, his or her life, rights and freedoms.”
To that end, the government has launched several initiatives to
ensure the protection of universal human rights throughout
the country.
Human Rights Ombudsman
The Commissioner for Human Rights in the Republic
of Kazakhstan (Ombudsman) was established in 2002
by Presidential decree to investigate human rights abuses
in the government and throughout the country. The
Commissioner and his associated organization, the
National Center for Human Rights, have taken steps to
ensure Kazakhstan’s compliance with the Paris
Principles adopted by the United Nations Human
Rights Commission in 1991, as well as implement
recommendations by the UN member states as
approved by the Kazakhstan government in 2011.
In 2013, Kazakhstan adopted a new Law on Creation
of the National Preventive Mechanism against Torture
and Other Cruel or Degrading Treatment or Punishment,
as part of the government’s work to ensure constitu-tional
guarantees of personal inviolability and
commitments under the Optional Protocol to the
Convention against Torture and other Cruel, Inhuman
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17. or Degrading Treatment or Punishment ratified by
Kazakhstan.
In January 2014, in pursuit of implementation of
the law the Coordination Council of the National
Preventive Mechanism against Torture was set up. It
gives the authority to the members of the National
Preventive Mechanism to conduct monitoring visits to
penitentiary institutions as defined by the law.
The Human Rights Action Plan
In 2009, President Nazarbayev announced the national
Human Rights Action Plan, a program to improve
human rights in Kazakhstan in conjunction with the
country’s assumption of the OSCE chairmanship in
2010. The Plan was undertaken between 2009 and
2012 in order to present recommendations for
improving human rights in the country across a variety
of sectors including labor, free speech, religious freedom,
minorities, and gender equality.
After the conclusion of the National Plan in 2012,
a follow-up meeting between officials from Kazakhstan
and the European Union discussed Kazakhstan’s
intention of creating a new plan for 2015-2020.
European officials cited areas for improvement but
also applauded Kazakhstan’s continued cooperation
and commitment to human rights.
United Nations Human Rights Commission
(UNHRC)
Kazakhstan has long worked with the UN to coordinate
on human rights issues and to focus on improving
human rights both in the country and around the world.
In 2010, Kazakhstan initiated a Universal Periodic
Review process under the auspices of the UN High
Commissioner for Human Rights. One of the most
prominent efforts towards improving human rights in
Kazakhstan has been the country’s election to the
UNHRC in 2012.
Kazakhstan’s election to the UNHRC recognized
the country’s progress towards defending human rights
and also motivates the country to continue to imple-ment
these efforts. As noted by Minister of Foreign
Affairs Erlan Idrissov, Kazakhstan’s election to the
HUMAN RIGHTS
UNHRC is both “a badge of honor” and “a spur to
continue improving human rights abroad and at
home.” Kazakhstan has acknowledged that it still has
work to do in the area of human rights reforms, but
remains committed to fulfilling them.
NGO Participation
Kazakhstan supports the active and independent
functioning of civil society organizations and NGOs in
a variety of sectors. In 2002, the Concept of State
Support for Non-Commercial Organizations was
adopted by the President to provide support for NGOs’
socially significant projects through “social contracts”.
In 2006, Kazakhstan adopted the Concept of Civil
Society Development for 2006-2011, which serves as a
“road map” for improving relations between the
government and the not-for-profit sector.
As part of this effort, Kazakhstan reduced the
registration fee for NGOs, signed and ratified the
Optional Protocol to the 1966 International Covenant
on Civil and Political Rights, simplified the often
criticized reporting requirements for entities receiving
foreign aid, and lifted the ban on the state financing of
NGOs. Today, the Government of Kazakhstan is actively
engaged in an ongoing dialogue with the civil society.
President Nazarbayev recognized the importance
of an effective partnership with the NGO sector and
AN INTRODUCTION TO KAZAKHSTAN FOR AMERICAN BUSINESSES 13
18. HUMAN RIGHTS
called on the government to cooperate with these
organizations to develop and strengthen the civil
society. As a result, the biannual “Civic Forum” was
established in 2003 to promote increased intra-NGO
dialogue and NGO-state cooperation.
The Civil Forum facilitates greater involvement of
the NGO community in the government led reform
efforts. The mechanism provides non-governmental
organizations with direct access to decision-makers
and promotes engagement in meaningful dialogue,
positive interaction and results-driven collaboration.
Consultative Body “The Dialogue Platform
on Human Dimension”
In 2013, the Ministry of Foreign Affairs created a new
consultative body “The Dialogue Platform on Human
Dimension”. The purpose of the body is to foster a
greater synergy between the government, the parlia-ment
and NGOs in joint efforts to solidify democratic
foundation in Kazakhstan.
The members of the body include the Presidential
Commission on Human Rights, Ministry of Foreign
Affairs, Prosecutor General’s Office, Assembly of Nation
of Kazakhstan, Ministry of Culture and Information,
Agency for Religious Affairs, Ministry of Health,
Ministry of Justice, Ministry of Labor and Social
Protection, Ministry of Internal Affairs, members of
the Senate and Mazhilis (Lower House of Parliament),
representatives of the political parties, The “Ak Zhol”
Democratic Party of Kazakhstan, the Communist
People’s Party of Kazakhstan, “NUR OTAN” National
Democratic Party.
Civil society is represented by over 27 NGOs, among
them the Foundation for the Development of Parlia-mentarism
in Kazakhstan, Kazakhstan International
Bureau on Human Rights & Rule of Law, “Adil Soz”
International Foundation for Protection of Freedom of
Speech, The Civil Alliance of Kazakhstan, Charter for
Human Rights, Almaty Helsinki Committee, etc.
UN Coordinator in Kazakhstan, Central Asia Office
of the UN High Commissioner for Human Rights,
OSCE Center in Astana, NDI, and Freedom House
take part in the meetings of the Advisory Body as
international observers.
Freedom of Religion
Kazakhstan is a multi-confessional secular state that
guarantees constitutional freedom of worship and
religion to each of its 46 religious denominations. The
country has earned international recognition for its
promotion of freedom of religion and belief as well as
its efforts to tackle intolerance and discrimination
both on domestic and international levels. Indeed, the
absence of any inter-faith conflict since the independ-ence
more than 20 years ago is a testament to these
efforts.
Mosque in Atyrau
The country’s 3,088 religious organizations operate
freely without government interference. Leaders of the
largest religious associations are members of the
Assembly of the People of Kazakhstan, the Human
Rights Commission under the President of the Republic
of Kazakhstan and local government organizations.
There are more than 2,500 places of worship of diverse
religions, including 2,268 mosques, 162 Russian
Orthodox churches, 86 Roman Catholic churches, and
614 Protestant Christian churches. The Kazakh Jewish
community has synagogues in Almaty, Astana,
Ust-Kamenogorsk, Kostanai, and Pavlodar.
Kazakhstan’s religious diversity, tolerance, and its
location on the crossroads of Europe and Asia make it
an ideal country to facilitate global inter-faith
AN INTRODUCTION TO KAZAKHSTAN FOR 14 AMERICAN BUSINESSES
19. conversation. The country has worked with partners
on a bilateral and multilateral basis to develop a dia-logue
among civilizations and religions. Since 2003,
every three years the country hosts the Congress of
Leaders of World and Traditional Religions. The forum
welcomesMuslim, Russian Orthodox, Roman Catholic,
Jewish, Hindu, Buddhist and other religions’ represen-tatives
and aims to nurture discussion on how the
spiritual and moral potential of world religions can be
used to prevent international conflicts and address
global threats, xenophobia and intolerance. Kazakhstan
aims to have the forum function as a permanent inter-national
organization mandated with the implementa-tion
of decisions taken collectively by influential
spiritual leaders.
Within the UN framework Kazakhstan has been
actively promoting inter-religious and inter-cultural
dialogue. In 2005 Kazakhstan was one of the main
sponsors of the UN Resolution on Promotion of Inter-religious
Dialogue and Cooperation for Peace. During
the International Year for the Rapprochement of
Cultures in 2010, initiated by Kazakh President
Nursultan Nazarbayev in the 62nd session of the UN
General Assembly, more than 1000 events were held
around the world by member states, international and
HUMAN RIGHTS
regional partners and UNESCO. Building on the success
of this initiative and with Kazakhstan’s advocacy, the
UN General Assembly then adopted a resolution
proclaiming the years 2013-2022 the International
Decade for the Rapprochement of Cultures.
Kazakhstan has used its presidencies of the
Organization of Islamic Countries (OIC) in 2011 and
the Organization for Security and Cooperation in
Europe (OSCE) in 2010 as platforms for strengthening
West-East dialogue. During the OSCE presidency
Kazakhstan hosted High-Level Conference on Tolerance
and non-Discrimination in Astana to promote the
values of tolerance, non-discrimination inter-cultural
dialogue.
Ascension Cathedral is a Russian Orthodox
Cathedral in Almaty Kazakhstan
AN INTRODUCTION TO KAZAKHSTAN FOR AMERICAN BUSINESSES 15
20. ECONOMY
Kazakhstan’s economy grew at an average of 8% per year over the past decade. The
country’s economic development strategy emphasizes modernization and diversification,
shifting away from its resource-based economy towards growth from non-oil sources.
The government recognizes the importance of
diversification, innovation, investment in human capital,
and international trade integration as a mechanism for
job creation. Increasing emphasis is also being put on
strengthening governance in order to support business
creation and private sector growth.
Kazakhstan weathered the global financial crisis well
through a dexterous response, combining fiscal relax-ation
with monetary stabilization. In 2009, the
government introduced large-scale support measures
such as the recapitalization of banks and support for
the real estate and agricultural sectors, as well as for
small and medium enterprises (SMEs). The total value
of the stimulus programs amounted to $20 million, or
14% of GDP. During the global economic crisis,
Kazakhstan’s economic growth slowed down to 1.2% in
2009, while the annual growth rate subsequently in-creased
AN INTRODUCTION TO KAZAKHSTAN FOR 16 AMERICAN BUSINESSES
to 5% and 6% in 2012 and 2013, respectively.
Economy
21. GDP GROWTH CONSTANT PRICES (ANNUAL %)
10
9
8
7
6
5
4
3
2
Kazakhstan’s “brand perception” is at its highest in
several years with increased awareness from established
and non-established investors, especially in the areas
of energy, industrial and automotive divisions, high-tech,
telecommunication infrastructure and business.
Established foreign investors in Kazakhstan view the
country as the most attractive post-Soviet investment
destination and highly value Kazakhstan’s macroeco-nomic
and sociopolitical stability, as well as its
competitive corporate tax rate.
ECONOMY
Kazakhstan’s external financial position has improved
as commodity prices have strengthened. Despite the
lingering uncertainty of the global economy, Kazakhstan’s
economy has been stable. GDP growth in 2013 was 6%,
growth in processing industries was 1.6%, the mining
industry grew 3.1%. industrial growth was 2.3%.
Agricultural output increased to 11,3%, transportation
and telecom industries showed growth rates of 7.6%
and 14% respectively.
AN INTRODUCTION TO KAZAKHSTAN FOR AMERICAN BUSINESSES 17
16
14
12
10
8
6
4
2
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
1
KAZAKHSTAN REAL GDP
BILLIONS (CONSTANT 2005 USD)
22. ECONOMY
Energy has driven much of this growth but the
government has also used funds from this sector to
diversify Kazakhstan’s economy. The National (Oil)
Fund, oil- and gas-revenue based “fund for future
generations” established by President Nazarbayev in
2000, has accumulated more than $70 billion in 2013
and is the cornerstone to managing and preserving the
country’s social-economic stability.
Kazakhstan 2050 Strategy
The Kazakhstan 2050 Strategy, a successor to
Kazakhstan 2030, is a vision of Kazakhstan’s future that
builds on the successes of the country in creating
growth through a market-oriented economy. At the
core of the 2050 vision is that Kazakhstan will join the
30 most developed nations by 2050 as measured by
GDP per capita as well as a wider range of social,
environmental and institutional achievements: a
highly educated, gainfully employed, healthy and secure
population; an efficient, sustainable and diversified
energy sector; a green economy with clean air and
water, resilient to the risks of climate change; a
balanced, efficient and decentralized urban and
regional economy; a diversified modern knowledge-based
economy; a country open to and integrated with
its neighbours and the world; and above all, an
effective, inclusive, transparent and accountable
economic and political system.
To achieve the goal of economic diversification
away from extractive industries, the government has
laid out a plan, so called Industrialization Map, to
implement more than 700 projects worth over $75
billion, nearly a third of the government’s current
GDP, over the next several decades. The priority projects
include those focusing on the development of human
resources and effective institutions. Other projects
cover wide-ranging reforms in industrialization,
infrastructure, energy efficiency, agriculture, sustain-able
urban development, cultural development, and
economic integration. The projects will create
approximately 220,000 jobs during the implementa-tion
period and an additional 180,000 jobs in the long-term.
The strategic priority of economic diversification
and modernization reinforces the need for foreign
direct investment (FDI) as the key instrument. The
country has a comprehensive integrated system
promoting inflow of FDI into priority industries. The
government provides for investment preferences that
include exemptions from corporate and land tax for 10
years, property tax for 8 years, customs duties, state
grants in kind, stable regime of taxation (excluding
VAT and excises), environmental charges and other
budgetary payments for a period of 10 years from the
moment of the conclusion of investment contracts,
reimbursement of the investor’s capital expenditures
up to 30% of the project amount, industrial privileges
for legal entities carrying out strategic investment
projects in residential areas with a low level of social
economic development, possibility of bringing and
keeping high skilled labor force for a period of the
investment project and up to one year after its
commissioning, etc. In addition, the country has
established nine special economic zones where
companies enjoy a special legal and taxation regime
that is locked in for 20 years.
The seaport city of Aktau Kazakhstan.
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23. Major Sectors
Energy: Kazakhstan ranks among the world’s top 20 oil
producers, with the ninth-most proven reserves in the
world and about a 2% share in global production.
Kazakhstan holds 30 billion barrels (four billion tones)
of proven recoverable oil reserves and potential reserves
of 100-110 billion barrels. New projects being developed
have led industry experts to estimate that by 2015,
Kazakhstan will be one of the top five oil exporters in
the world, with three million barrels per day.
Since 1991, Kazakhstan’s oil sector expanded rapidly
with the discovery of new fields, the development of
downstream infrastructure and favorable worldwide
commodity prices. By 2013, Kazakhstan’s extractive
industry made up about a quarter of the country’s
GDP, while crude oil alone accounted for 60% of all
exports. The oil & gas sector currently accounts for 2/3
of all tax (budget) revenues.
Kazakhstan’s leadership was conscious of the danger
of falling into a stagnated path of development caused
by an overconcentration of resources into the oil and
gas sector, known as the “Dutch disease.” The National
(Oil) Fund, an extra budgetary, off-shore fund modeled
after the Government Pension Fund of Norway, was
ECONOMY
Kashagan offshore oil field in the Caspian Sea
established in 2000 with the goals of saving government
resources for future generations and reducing budgetary
dependence on global commodity prices, thereby
creating for fiscal management.
By saving a portion of the tax revenues generated
by oil-related activities in the Fund, the authorities are
able to build up an emergency savings fund from
which they can draw on to close funding gaps when
there is a shortfall in revenues or in a time of economic
recession to stimulate macroeconomic growth. In 2013
the Fund’s reserves amounted to $70 billion, equaling
35% of GDP in 2013. During the 2008–2009 financial
crisis, oil fund savings were used to finance a major
part of stimulus package (around $10 billion) that
helped alleviate the economic downturn. After the
crisis, the stimulus was unwound and the non-oil
deficit has been declining.
Mining: Since 2011 Kazakhstan has become the
world's leading uranium producer, with almost 35% of
global production. Kazakhstan has the second largest
uranium reserves in the world. KazAtomProm, the
national uranium holding company, manages seventeen
projects, twelve of which are jointly-owned and executed
by foreign firms, including Rosatomprom (Russia),
AN INTRODUCTION TO KAZAKHSTAN FOR AMERICAN BUSINESSES 19
24. ECONOMY
AREVA/COGEMA (France), Uranium One (Canada),
and CAMECO (Australia). Among these ongoing
projects include South Inkai, Budenovskoye 2, and
Tortkuduk, which are considered to be among the ten
largest uranium mining sites in the world.
In addition to uranium, Kazakhstan contains 4% of
global iron reserves, 8% of the world’s zinc reserves
and 4% of the world’s chrome reserves. The country
has also significant reserves of rare-earth metals. In
2013 production of beryllium, tantalum, niobium, etc.
amounted to 1.5 thousand metric tons. To process and
export rare earth metals to overseas market
KazAtomProm has established joint ventures with
renowned companies from Japan, Korea, European
Union and other developed countries.
There are sufficient coal reserves to last over the
next 100 years. In the future, the development of the
raw materials base will be achieved through enriching
and improving the quality of coal and the deep
processing of coal to obtain fluid fuel and synthetic
substances. As an alternative source of energy,
methane from coal layers in the Karaganda basin can
be extracted, compressed and piped to market to
satisfy large-scale energy needs.
Priority Sectors
*(See Investment Opportunities for US businesses section below for
detailed information on these sectors)
Kazakhstan is deeply committed to diversifying its
economy outside of the hydrocarbon and mining sectors.
There are numerous other sectors where the country
shows high growth potential in the coming years and
the government is actively supporting investment in
these areas. In June 2014, the government announced
that foreign investors in non-energy sectors would
receive a new set of preferences. Among them are
exemptions from corporate and land tax up to 10 years,
property tax for 8 years, reimbursement of investment
costs and expenditures up to 30%, possibility of
bringing and keeping high skilled labor force for a
period of the investment project and up to one year
after its commissioning, stable regime of taxation and
environmental regulation within investment contracts,
to name a few.
Machinery: The production of machinery and
equipment is vital to Kazakhstan’s development and
relates to several other core economic goals, such as
the growth of the energy and mining sectors as well as
infrastructure. Manufacturing that serves the country’s
booming construction sector is also a high-growth
opportunity and the gross value-added amount for
Kazakhstan’s industrial engineering sector in all of
2008 was equaled in the first half of 2013, a sign of the
machinery sector’s booming growth.
Agriculture: Kazakhstan is already one of the top
10 grain exporters in the world and the growing cattle
production sector shows great promise. With abundant,
rich grazing lands, premium beef has seen an especially
high rate of growth and in 2013 the number of cattle
owned by private farmers grew to 13.7%
Green energy: Part of Kazakhstan’s 2050 targets
includes having 50% of domestic energy consumption
met by renewable sources. Wind, hydro, and solar energy
sources are abundant in the country and renewable
sources are expected to contribute 1 billion kWh in
2014. It is expected that during EXPO 2017 “Future of
Energy” in Astana the country will showcase the first
results of its strategy to develop alternative energy
solutions.
AN INTRODUCTION TO KAZAKHSTAN FOR 20 AMERICAN BUSINESSES
25. Information Technology: Kazakhstan’s strategic
location between China and Europe allows for it to
play a critical linking role between these economic gi-ants,
as well as acting as the communications hub for
Central Asia. Exports of ICT products and services
quintupled between 2007 and 2012. The government
is looking to further develop the telecoms, electronic
services, and software sectors through fostering private
sector initiatives and supporting IT infrastructure such
as IT Park “Alatau” near Almaty.
ECONOMY
Tourism: Kazakhstan’s natural beauty and rich
history provide underutilized resources for a prosperous
tourism sector. Eco-tourism is already being developed
in the country’s 11 national parks, where infrastructure
and tourism services represent growing opportunities.
Kazakhstan boasts world-class ski resorts and hosted
the 2011 Winter Asian Games. Four UNESCO World
Heritage sites include three historical locations, while
the country’s Silk Road heritage provides a unique
historical legacy for tourists. It is expected that during
EXPO2017 more than 2 million tourists will visit
Kazakhstan.
A mountain valley in Dzungarian Alatau Kazakhstan.
AN INTRODUCTION TO KAZAKHSTAN FOR AMERICAN BUSINESSES 21
26. ECONOMY
In Focus: Chemicals and
Pharmaceuticals Industry
Kazakhstan is well-positioned to develop a chemical
production sector given its wealth of raw materials: 99
out of the 110 elements of the Period Table can be
found on the territory of Kazakhstan. To date, 70
elements have been explored and 60 have been extracted.
The most significant of these include oil and gas,
uranium, zinc, as mentioned, but also lead (second
largest reserves in the world), manganese (third largest
reserves in the world), and copper (fifth largest reserves
in the world). Petroleum-related downstream products,
such as phosphates and sulfuric acid, are part of this
focus. Chemical production increased by 5.9% in 2012
and the country plans to develop the sector further for
export purposes. The pharmaceutical sector will take
advantage of the high level of scientific and educational
development in the country’s southeast area.
Other mining operations in the country focus on
tungsten, bohrium, silver, chromites, copper, fluorides,
molybdenum, and gold. Many of these minerals can be
used in the production of petroleum-related downstream
products. Sulfur reserves found in the composition of
ore can be used to produce sulfuric acid and other
chemical products used in the production of almost all
types of petrochemical synthesis products, including
ethylene, polypropylene, rubber material, synthetic
detergents, soaps, chemical fibers, cement, synthetic
resin and plastics.
AN INTRODUCTION TO KAZAKHSTAN FOR 22 AMERICAN BUSINESSES
27. The State Program for Accelerated
Industrial Innovative Development (SPAIID)
Launched between 2010 and 2014, the State Program
for Accelerated Industrial Innovative Development
(SPAIID) is a short-term program that provides
investment incentives to small and medium enterprises
as well as large firms developing manufacturing and
infrastructure facilities in the country. Some 672 new
projects were launched, creating 67,000 permanent
new jobs, contributing $17.4 billion in manufacturing
and generating $724.4 million in exports, during the
first four and a half years of SPAIID’s implementation.
Among the successful projects were power lines, drill
PDC bits, chemicals and cement factories.
According to the Minister of Economy and Budget
Planning, Yerbolat Dossayev, SPAIID has increased
Kazakhstan’s production capacities and profoundly
ECONOMY
contributed to economic growth and development.
Moreover, the program was essential to stabilizing the
economy and employment during the 2008 global
financial crisis. Since 2008, Kazakhstan`s nominal
GDP doubled, reaching $185.7 billion by 2013. Between
2010 and 2015, Kazakhstan seeks to implement major
industrialization projects that will (1) increase the
capacity to manufacture goods competitive for export,
and (2) expanding opportunities for SMEs through the
development of local content, subsequent conversion
and processing. On July 2nd, 2014, the Kazakh govern-ment
presented a report to President Nazarbayev
entitled New Industrialization of Kazakhstan: Results of
Half Year of 2014, which reviewed the success of earlier
projects and outlined new ones. According to the report,
a number of innovative, new projects will be developed
with the help of foreign companies including IVECO
(Italy), Toyota Tsusho Corporation (Japan) and
Byelkamit (Italy-U.S.). In addition, the advent of the
Customs Union and the Eurasia Economic Union
(EEU) has helped the economy increase its exports of
processed artifacts; for example, the size of vehicle-related
manufacturing increased 24-fold since 2010.
With the help of investments made by transna-tional
firms, Kazakhstan will be starting in 2015 a new
five-year project of the SPAIID program focusing on
metallurgy, oil processing, petrochemicals, the
chemicals industry, food processing machinery
engineering, and construction materials.
AN INTRODUCTION TO KAZAKHSTAN FOR AMERICAN BUSINESSES 23
28. BUSINESS AND INVESTMENT CLIMATE
Business and
InvestmentClimate
Kazakhstan has made significant efforts to remove bureaucratic obstacles to
investment and the creation of an attractive business environment.
The country ranks 77th in the World Bank’s Ease of Doing Business
Index, and 50th in the World Economic Forum’s Competitiveness
Index. The Constitution affords foreign companies the same rights
and obligations as Kazakh nationals. The Investment Code guarantees
legal equality between local and foreign investors, protects investor’s rights,
allows for the legal arbitration of disputes, guarantees against nationalization
and affirms the right to repatriate profits. Thanks to these, the country ranks
22nd in the Investor Protection Index of the World Bank.
The government's efforts to strengthen the state's fiscal
balance, reduce the national debt, and aid the recovery
of the banking sector following the 2007-08 crisis,
prompted Fitch Ratings to upgrade Kazakhstan's
sovereign rating to BBB+ with a stable outlook in
November 2012. Kazakhstan’s business-friendly laws
support the growth of foreign investment and stronger
economic growth.
The government provides investment preferences
such as exemptions from customs duties, state grants in
AN INTRODUCTION TO KAZAKHSTAN FOR 24 AMERICAN BUSINESSES
29. kind, privileges relating to land tax and property tax for
legal entities carrying out strategic investment projects,
and industrial incentives for legal entities carrying out
strategic investment projects in residential areas with a
low level of socio-economic development. The country
has a comprehensive integrated system promoting
inflow of foreign direct investment into domestic
production with high value added and export orientation
of high value added domestic production. The govern-ment
provides for certain investment preferences that
include: exemptions from customs duties; state grants
in kind; privileges relating to land tax and property tax
for legal entities carrying out strategic investment
projects; and industrial privileges for legal entities
carrying out strategic investment projects in residential
areas with a low level of social economic development.
BUSINESS AND INVESTMENT CLIMATE
In addition, the country operates 9 special economic
zones where companies enjoy special legal and taxation
regime. The status is locked-in for 20 years.
In 2013, FDI amounted to $24 billion, the
equivalent of 10% of GDP. FDI has introduced new
forms of technology and jobs for domestic firms and
subcontractors that partner with foreign entities, while
transferring skills and know-how to the indigenous
labor force. While the majority of FDI to date has been
channeled into the oil, gas and mining sectors, and
their associated services, the government emphasizes
promoting FDI into other industries and reduce the
country’s dependence on extractive industries, as part
of its 2050 strategy.
Doing Business
2015 Rank
77
Doing Business
2014 Rank
76
Change in
Rank
-1
DB 2014
Rank
DB 2013
Rank
Change in
Rank
Starting a Business 55 53 -2
Dealing with Construction Permits 154 152 -2
Getting Electricity 97 92 -5
Registering Property 14 18 +4
Getting Credit 71 67 -4
Protecting Investors 25 21 -4
Paying Taxes 17 16 -1
Trading Across Borders 185 186 +1
Enforcing Contracts 30 35 +5
Resolving Insolvency 63 82 +19
AN INTRODUCTION TO KAZAKHSTAN FOR AMERICAN BUSINESSES 25
Topics
Data from World Bank
30. BUSINESS AND INVESTMENT CLIMATE
Eurasian Economic Union
The Eurasian Economic Union (EEU) builds on the
successes of the Customs Union (CU) and Common
Economic Space (CES) to establish a market of over
171 million people with an annual GDP of $2.7 trillion.
The objectives of the EEU are to form a legal framework
for a united economic zone, establish a common energy
market, and enable the free movement of labor and
capital, between Belarus, Kazakhstan, and Russia.
It is important to note that the EEU is an economic
union only and not a political union. Each EEU member
state retains veto power on proposed decisions or
policies. The veto allows each state to preserve its
national sovereignty on issues related to trade and
investment. Kazakhstan does not support the creation
of any related supra-national political entity that would
undermine the country’s national sovereignty and
territorial integrity, such as an EEU Parliament.
Kazakhstan’s integration into the Customs Union
with Russia and Belarus, which took full effect in
January 2012, has cut the border-crossing time in half.
Deeper integration under the umbrella of the EEU
promises to further reduce transportation and transac-tion
costs. As a result of the creation of a new business
environment and conditions for interaction between
different businesses, it is estimated that member states
will experience a 25% growth by 2030.
For companies that operate in the region, integra-tion
of the markets and harmonization of customs and
trade policies will allow for capturing a range of positive
synergies in capital optimization and efficiency leverage.
With a total middle class of 76.8 million people
(around 30% of the population in Kazakhstan and
more than 55% in Russia) that is growing at an annual
rate of 7%, there will be immense growth in demand
for goods and services. Russia now contains the sixth
largest middle class in the world, as measured by
purchasing power parity.
Kazakhstan is a great springboard for businesses
interested in expanding operations to other countries
in the EEU, Central Asia and the Caucuses. Kazakhstan
shares borders with China, Kyrgyzstan, Uzbekistan,
70
60
50
40
30
20
10
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
AN INTRODUCTION TO KAZAKHSTAN FOR 26 AMERICAN BUSINESSES
2009
2010
2011
2012
2013
-10
-20
-30
-40
KAZAKHSTAN VOLUME OF IMPORTS AND EXPORTS
Volume of imports of goods and services (% Change)
Volume of exports of goods and services (% Change)
31. KAZAKHSTAN TRADE (% OF GDP)
Turkmenistan and Russia, and is a littoral state to the
Caspian Sea. There are regular ferries between the port
of Baku in Azerbaijan, and the port of Aktau on
Kazakhstan’s Caspian coastline. The simplified trade
procedures of the EEU will allow companies to declare
goods in one location, and deliver them to population
centers throughout member states’ without facing
additional bureaucratic barriers.
The EEU was been created to facilitate trade, both
inside of the Union and with outside economies, not to
BUSINESS AND INVESTMENT CLIMATE
act as a barrier to trade. As such, it is a stepping-stone
towards Kazakhstan’s broader integration into the
global market. It is important to emphasize that the
EEU’s trade rules are compatible with those of other
trade blocks, including that of the European Union.
Kazakhstan is expected to gain full admission into the
World Trade Organization (WTO) by 2015, which will
further supplement the trade and investment gains
achieved under the auspices of the EEU.
AN INTRODUCTION TO KAZAKHSTAN FOR AMERICAN BUSINESSES 27
120
100
80
60
40
20
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
32. BUSINESS AND INVESTMENT CLIMATE
Investment
Kazakhstan emerged as the strongest performing econ-omy
in Central Asia since the fall of the Soviet Union.
It was the first former Soviet Republic to repay all of
its debt to the International Monetary Fund, seven
years ahead of schedule. In 2002, the country became
the first sovereign state in the former Soviet Union to
receive an investment-grade credit rating from an in-ternational
credit rating agency.
Due to its relatively stable macroeconomic envi-ronment,
wealth of natural resources, and supportive
regulatory environment, as well as its proximity to
large regional markets, Kazakhstan has been relatively
successful in attracting FDI since its independence.
14
12
10
8
6
4
2
0
FOREIGN DIRECT INVESTMENT NET INFLOWS (% OF GDP)
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Investment Incentives
Kazakhstan has institutions to promote and support
investment, including KazNexInvest and the Foreign
Investors’ Council, and the newly established role of an
investment ombudsman that helps facilitate communi-cation
between investors and the government and help
investors address their issues. In recent years, govern-ment-
supported enterprises have also entered joint
ventures as an effective instrument to bring in foreign
expertize and capital necessary to co-fund projects in
construction, logistics, petrochemicals, manufacturing
and IT.
In 2014, the Kazakh government revealed a new
set of measures designed to attract large-scale FDI.
Among the new policy measures are 10-year corporate
tax exemptions, provision of investment subsidies and
easing of barriers to employing foreign skilled workers.
The new policy measures will also provide for greater
stability and predictability in the area of governance,
thus protecting foreign investors. In addition to the
creation of an investment ombudsman office, the
government is also aiming to reduce the regulatory
and administrative burdens on new businesses by
creating “one-stop shop” investment vehicles.
Investment Benefits
Kazakhstan is one of the most investment-friendly
transit hub for the greater Eurasia region. Kazakhstan
recently jumped to the 40th spot on the World Bank’s
Logistics Performance Index, from the 86th spot. By
2020 the country aims to become a key logistics hub
for Eurasia and beyond by developing transportation
and export centers on the territory. Kazakhstan is
building the Western Europe -Western China Interna-tional
Transportation Corridor, which will reduce
ground transportation time for cargo vehicles from 30
to 10 days, and multiply total transit cargo volume by
1,000%, from 16 million to 170 million tons.
AN INTRODUCTION TO KAZAKHSTAN FOR 28 AMERICAN BUSINESSES
33. Improved infrastructure will generate multiple positive
externalities. In the short term, the development of
infrastructure will increase Kazakhstan’s GDP by 68%,
above a 2010 baseline, and will boost the GDP of
neighboring countries by 43%. In the long term,
BUSINESS AND INVESTMENT CLIMATE
developed logistics corridors will simplify supply-chaining
and goods distribution for domestic and
internal firms, allowing goods to move to markets
efficiently.
The city of Almaty Kazakhstan.
AN INTRODUCTION TO KAZAKHSTAN FOR AMERICAN BUSINESSES 29
34. The Bayterek Tower and city fountain.
AN INTRODUCTION TO KAZAKHSTAN FOR 30 AMERICAN BUSINESSES
35. From June 10 to September 10,
2017, Astana, the UNESCO-declared
“City of Peace,” will be
the first city in the Common-wealth
of Independent States
(CIS) to host the EXPO2017
exhibition. This is a great point of pride for Kazakhstan.
The theme of EXPO2017 is the ‘Future of Energy’. The
event will gather experts from around the world to
present innovations and global best practices for various
energy applications. The exhibition will serve as a basis
for multinational scientific, technical, political and
cultural exchange, discussion, collaboration and
cooperation. EXPO2017 will make a significant contri-bution
to the development and use of alternative energy
sources globally, creating more environmentally-friendly
economies as well as provide an impetus for
AN INTRODUCTION TO KAZAKHSTAN FOR AMERICAN BUSINESSES 31
Kazakhstan’s own transition to a green economy.
The event will be held during Astana’s 20th
anniversary as the nation’s capital and will celebrate
the emergence and successes of independent Kazakhstan.
The hosting of such an important event affirms the
growing recognition of Kazakhstan as a strong actor in
international affairs. EXPO2017 will not only increase
global recognition of Kazakhstan as a leader in
alternative energy solutions, but also reinforce the
country’s integration into the global community and
economic marketplace.
EXPO2017 will generate significant urban develop-ment
advances in Kazakhstan. The government has
already allocated $325.25 million to build the exposition
site, ground infrastructure and transit routes. Officials
anticipate an additional $1.3 billion in FDI into infra-structure
projects–roads, railways, and buildings. This
is creating jobs and will have lasting economic impact.
Kazakhstan is proceeding with the preparations for the
exhibition ahead of the schedule, with construction
beginning in October 2014, two months ahead of
schedule. After EXPO2017, this new infrastructure will
improve the quality of services provided to the local
population and businesses.
Nearly five million people from 100 countries are
expected to attend EXPO2017, which would make it the
largest international gathering Central Asia has ever
witnessed. To increase the accessibility of the event to
people from all around the world, Astana plans to
install streaming cameras throughout the EXPO site.
Tourism will enjoy growth in years following the event
as a result of the improvement in the image of the
country abroad.
EXPO2017
BUSINESS AND INVESTMENT CLIMATE
Adrian Smith+Gordon Gill Architecture will design the Astana Expo 2017 site.
36. INVESTMENT OPPORTUNITIES FOR U.S. BUSINESSES
Investment
Opportunities for
U.S. Businesses
Oil, Gas, and Mining industries
The oil and gas sector represents a major dimension of the U.S.-Kazakhstan bilateral
partnership. After all, in 1993, Chevron became the first major Western oil company to
invest in Kazakhstan with the creation of TengizChevroil. Over the past twenty two
years, Western energy firms and their advanced technologies have been essential to
fueling the growth of Kazakhstan’s oil industry and
uncovering some of the most challenging offshore,
deep-sea energy deposits in the world.
Today, Chevron is Kazakhstan’s largest private oil
producer, while ExxonMobil also maintain significant
operations in the country. Chevron, owns 15% of the
Caspian Pipeline Consortium, 50% of Tengiz and 18%
of Karachaganak hydrocarbon field. The ExxonMobil
Corporation owns 7.5% of shares of the Caspian
Pipeline Consortium, 16.81% of the Kashagan oil field
and 25% of the Tengiz oil field. Subsequently, U.S.
firms hold significant shares of Kazakhstan’s oil assets:
the Kashagan field (5.4 billion tons of oil and 1.7 billion
tons of recoverable oil), the Tengiz field (3.1 billion
tons of oil, of which 0.75 – 1.1 billion are recoverable,
the Korolev Field (188 mil tons of total reserves), and
the Karachaganak field (initially 1 billion tons of oil,
condensate, and natural gas).
AN INTRODUCTION TO KAZAKHSTAN FOR 32 AMERICAN BUSINESSES
37. Mining represents 27% of the country’s GDP and has
immense growth potential. Assuming the upward trend
in global commodity prices for uranium, zinc and copper
continue, foreign businesses have many investment
opportunities in the Kazakh mining industry.
Kazakhstan’s gold reserves, for example, are considered
to be the eighth largest in the world, have not yet been
fully tapped.
Transportation & Logistics
Kazakhstan is a landlocked country. As a result, trans-portation
costs remain high and the limited number of
export routes challenges Kazakhstan’s development.
Despite this, the government recognizes the value of
Kazakhstan’s location in the middle of Eurasia, and
seeks to attract investment for the development of
INVESTMENT OPPORTUNITIES FOR U.S. BUSINESSES
logistics, road and rail infrastructure, and technologies.
The country needs to specifically modernize its infra-structure
and invest in this sector with projects averaging
$25 billion by 2030, which 40% will be in railway
systems, 23% in roads, and 12% in water transport
systems.
Recently, the logistics-focused Khorgos East Gate
Special Economic Zone (SEZ) has been established on
the China-Kazakhstan border to generate business
initiatives such as a storage and transport facility, food
production, textile manufacturing, chemical and metal
treatment. U.S. firms Deloitte and AECOM have been
contracted to develop the center. Such ventures, if
successful, will likely be replicated across the country.
The Chevron Tengiz is the world’s deepest
operating super-giant oil field, with a complex geology
and extremely high reservoir pressure.
AN INTRODUCTION TO KAZAKHSTAN FOR AMERICAN BUSINESSES 33
38. INVESTMENT OPPORTUNITIES FOR U.S. BUSINESSES
Information and Communication Technology
Technological innovation is at the forefront of efforts to
diversify Kazakhstan’s economy. The government aims
to become a major technological hub in Central Asia,
focusing on ICT. Relatively high literacy and education
levels as well a population with a median age of 30 years
render Kazakhstan’s workforce capable to work in this
sector.
The government recognizes the important role of
technological innovation in the diversification of the
economy. The Park of Information Technologies in
Alatau, a special economic zone, has been established
to facilitate transfer of technology and foster innovation.
U.S. firms Microsoft, Hewlett Packard, Sun Microsys-tems,
and Cisco Systems have demonstrated interest in
the Alatau technology park, as well as Thales (France),
Siemens (Germany), LG (South Korea), and Samsung
(South Korea). Oracle maintains an office in Almaty,
while Samsung’s Almaty office is its headquarters for all
of the operations in Central Asia and Mongolia.
The local demand for high-quality telecommunication
infrastructure and services, particularly Internet access
and data transfer services, is increasing with rapid
economic and social progress. There is a demonstrated
market demand for a more agile technological infra-structure,
included upgraded telecommunications
networks in rural and urban areas and enhancing
broadband Internet access. While there are international
firms working on these projects, Kazakhstan is interested
in attracting the high-tech expertise of U.S. companies.
Energy
Power generation and distribution
According to the Ministry of Industry and New Tech-nologies,
Kazakhstan aims to produce 150 billion kWh
of electricity by 2030 to meet anticipated demand.
Electricity production centers are located in the
Northeast of the country near coal and hydro-powered
stations. During the Soviet Union, Kazakhstan was part
of an electricity grid that spanned all of the Central
Asian republics. Today, there are three electricity grids
The Moinak hydropower plant is one of the
largest energy projects in Kazakhstan.
AN INTRODUCTION TO KAZAKHSTAN FOR 34 AMERICAN BUSINESSES
39. in the country: Surplus energy generated in the north is
sold to Russia, Kyrgyzstan and Uzbekistan. The insuffi-cient
generating capacity in the south and lack of
capacity to regulate generating frequency (i.e. to match
generating capacity to meet demand during peak loads)
are problems that need to be addressed by modernizing
existing facilities and adding new power plants.
Improving the quality of power generation and distribu-tion
services and hardware is a significant growth
opportunity for Kazakhstan. There are also plans to
transition to smart power systems, which could create
new opportunities for U.S. companies.
Renewables
The country has significant potential in the renewable
energy sector with its low population density and access
to renewable energy sources such as wind, sun, and
water. The UNDP estimates that potential for wind
energy in Kazakhstan alone exceeds the country’s current
energy consumption by ten-fold. The government aims
for the share of renewable energy in domestic electricity
generation to rise to 30% by 2030 and 50% by 2050. By
2020, the country should have thirteen wind, fourteen
hydropower and four solar power plants, as well as a
nuclear power plant.
Green Bridge Initiative
Kazakhstan’s Green Bridge Initiative is based on five
fundamental principles, including (1) the leading role
of the government in energy reforms, (2) the long-term
interests of investors in green business, (3) the coopera-tion
of the public- and private-sector, (4) effective
INVESTMENT OPPORTUNITIES FOR U.S. BUSINESSES
management and (5) a results-oriented approach to
new energy projects. The objectives of the Green Bridge
program are designed to strengthen national governance
of natural resources, develop informational infrastruc-ture,
boost outreach and education, encourage green
business and related technologies, introduce effective
financial and economic mechanisms, and the creation
of unified standards for the green economy.
The Green Bridge targets conservation in five core
sectors: mountainous and wetland ecosystems, sustain-able
energy (availability and efficiency), food security,
urban infrastructure and transport, adaptation to climate
change and natural disasters.
As the underpinning to the Green Bridge, the main
provisions of the Global Energy-Ecological Strategy,
aimed at managing the long-term transition from
conventional to sustainable energy, were reflected in
the Framework for Action and Follow-up of the
Outcome document.
Kazakhstan was hit by two major disasters in the
20th century: 500 nuclear weapon tests at the Semi-palatinsk
test site and the drying up of the Aral Sea due
to the diversion of water from the Amu Darya and Syr
Darya rivers for irrigation. Against this background, the
people of Kazakhstan have been particularly conscious
of the need for greater efforts to protect and restore the
environment. The Semipalatinsk nuclear test site was
shut down in 1991, while joint projects with the World
Bank helped to restore water to the northern part of the
Aral Sea.
The government is developing new laws to
encourage investment in the renewable energy sector.
In 2013, Kazakhstan adopted legislation that provides
for capital subsidies and establishes feed-in tariffs for
firms using renewable energy resources, which will be
in place for 15 years. Together with Islamic Development
Bank, the country has established a renewable energy
fund worth $50 million that will attract strategic
investment and expertize into the renewable energy
sector, particularly wind, solar, biomass and small
hydro. Furthermore, in 2013, the government launched
a pilot version of the national carbon-trading scheme.
AN INTRODUCTION TO KAZAKHSTAN FOR AMERICAN BUSINESSES 35
40. INVESTMENT OPPORTUNITIES FOR U.S. BUSINESSES
And as already stated, the World Expo in 2017 will be
held in Astana and be dedicated to the topic of “Future
Energy.”
Agribusiness (Agriculture, Food Processing,
and Food Retailing)
Kazakhstan offers many opportunities for agricultural
investment. Over 80% of the country’s total area
classified as agricultural land, 70% of which is occupied
by pasture lands. Arable land availability per inhabitant
(1.5 hectares) is the second highest in the world after
Australia (2.1 hectares). Agriculture constituted 6% of
GDP in 2013 and 1/3 of employment. After a transition-ing
to a market economy after Soviet collapse, Kazakhstan
managed to substantially increase its production and
trade capacity in agro food products, becoming one of
the top grain exporters in the world. Russia, China and
Caucasus are the major export destinations for Kaza-khstan’s
wheat.
Kazakhstan’s agribusiness sector shows great growth
potential. The rapidly growing economy and
increasing disposable income have translated into
growing demand for higher value and quality food
products. The highly attractive end-consumer market
will lead to advancement of a market for packaged
foods, branded products and retail private labels. The
suppliers present in the market include The Coca-Cola
Company, Procter & Gamble, Nestle SA, and Unilever.
The current undercapitalization of local players and
limited competition in the sector opens up attractive
opportunities for new entry with promising growth
prospects.
In addition, the drive to increase the currently
limited capacity of local suppliers will generate demand
for agricultural productivity. In 2012 and 2013, the US
shipped $212.4 billion in agricultural products to
Kazakhstan. Opportunities for US companies include:
feeds and feed mix, pedigree animals and genetic
KazAgro
In order to promote and develop the agro-industry, in
2006 the government created KazAgro, a national
agency that encompasses different companies and
affiliated structures, oversees various investments in
agriculture projects, and ensures their success and
sustainability. Its mission is to implement the govern-ment
agriculture policies and ensure the effective
management of investment assets and state resources
by joint stock companies. It also provides budgets and
establishes a medium-term financial plan. Moreover, it
is responsible for implementing efficiency norms and
management motivation. It also plays a major role in
attracting foreign companies by providing state
incentives for an eventual investment in Kazakhstan.
KazAgro reported total assets of KZT 582 billion
(USD 3.2 billion) as of December 31, 2013. It consists
of several major subsidiaries – Food Contract
Corporation, KazAgroFinance, Agrarian Credit Corp,
KazAgroGarant, Fund of Financial Support of
Agriculture, etc. The Holding is planning to sell its 48
subsidiary companies during the new state program of
privatization of state assets. The majority of them are
micro-credit organizations. The Holding has external
ratings from Fitch (a long-term foreign currency rating is
'BBB', a long-term local currency rating is 'BBB+' and a
short-term foreign currency rating is 'F3'. The outlooks
for the long-term ratings are stable).
AN INTRODUCTION TO KAZAKHSTAN FOR 36 AMERICAN BUSINESSES
41. material, grain infrastructure, agricultural machinery
and software, farm management technologies and
services, agricultural consulting services, water saving
technologies, sustainable irrigation/water supply systems
development, and organic agriculture standards
development.
Rich soil, favorable weather conditions, and a long
growing season in the south, render Kazakhstan an
attractive place for large-scale agriculture. Kazakhstan
has identified three agricultural sub-sectors with a high
growth potential: crop production, livestock production
and infrastructure and machinery. To date, 21.3 million
square hectares are devoted to crop production and
include a variety of products from grapes to cotton.
Livestock output is constantly rising, which led to an
increase in meat, egg and milk production by 3%, 12.6%
and 1.4%, respectively, between 2011 and 2012.
government support to agriculture between 2009 and
2011 amounted to $1.36 billion per year, according to
the OECD Producer Support Estimate.
The government has multiplied its efforts to attract
local capital and foreign investment and knowledge
into Kazakhstan’s agriculture sector. Among these
include the provision of subsidized loans to agricultural
enterprises, subsidies for machinery upgrades and
construction, state-funding of organizations developing
veterinary and phytosanitary sectors, the provision of
subsidies for industrial energy costs, waved import
duties on farm equipment, raw materials and spare
parts, and exemption from corporate income and
property taxes.
Chemical and Petrochemical Industries
With vast oil reserves and raw chemical material deposits,
Kazakhstan has huge growth potential in the petro-chemical
industry. In 2004, the government adopted
the “Program for development of the petrochemical
industry of the Republic of Kazakhstan for 2008-2013,”
pursuant to which it has started constructing the
National Industrial Petrochemical Technopark in
Atyrau that will convert the resources from Tengiz and
Kashagan oil fields to high-value petrochemical products
INVESTMENT OPPORTUNITIES FOR U.S. BUSINESSES
for export and domestic consumption.
Pharmaceutical and Biotechnology Industries
Kazakhstan’s pharmaceutical market is the most
accessible, transparent and, from a legislative point of
view, progressive in Central Asia. Currently, some 70%
of domestically consumed medicine is imported, while
30% are internally manufactured. The government
adopted a resolution on “The State Program for the
Development of Pharmaceutical Industry for 2010-2014,”
with the objective of increasing domestic production of
pharmaceuticals from 30 to 50% by the end of 2014.
Under the program, foreign manufactures are eligible
to obtain equal treatment with domestic ones if they
decide to produce domestically. In the future the
country could leverage its favorable business environ-ment
and regional ties to supply neighboring states,
such as Uzbekistan, Kyrgyzstan, Turkmenistan and
Tajikistan, all of which have growing populations and
lack domestic production capacity.
Other
US companies that have carried out business in other
sectors. Boeing sold $1.3 billion of aircrafts to Air
Astana in 2012. FedEx that operates large shipping
facility outside of Astana, and DHL maintains offices
throughout the country. General Electric (GE) operates
a large assembly plant in Astana, where it manufactures
passenger locomotives for the national railway company,
Kazakhstan Temir Zholy (KTZ). In 2012, GE and KTZ
signed an agreement worth over $90 million to equip
the Astana plant to assemble GE’s Evolution heavy-haul
passenger locomotives, which contain an advanced
diesel electric engine. These locomotives are assembled
from components and kits manufactured in Grove City
and Erie, Pennsylvania, supporting American jobs.
U.S. companies also have a major presence in Kazakhstan’s
financial services (Citigroup, JP Morgan, etc.), IT and
telecom (Microsoft, IBM, Cisco, etc.) and other sectors.
AN INTRODUCTION TO KAZAKHSTAN FOR AMERICAN BUSINESSES 37
42. INVESTMENT OPPORTUNITIES FOR U.S. BUSINESSES
AN INTRODUCTION TO KAZAKHSTAN FOR 38 AMERICAN BUSINESSES
Astana Kazakhstan
43. Kazakhstan’s Partnerships for
SME Development
President Nazarbayev emphasizes the importance of
small and medium sized enterprises (SMEs) to
Kazakhstan’s long-term, sustainable development.
Under the ‘Road Map for Business 2020’, SMEs are
eligible to obtain subsidized-interest loans, loan
guarantees, assistance in developing production
(industrial) infrastructure, services to support businesses
(consulting, legal, actuarial, and other), and the training
of personnel.
In order to accomplish national development
objectives, the government has partnered with interna-tional
organizations. President Nazarbayev announced
in 2014 a program allocating 1 trillion tenge ($5.5 billion)
from the National Fund of Kazakhstan to support
industrial policy, banking sector, and SMEs. The
implementation of the program will be supported by
the Asian Development Bank (ADB), based on a frame-work
INVESTMENT OPPORTUNITIES FOR U.S. BUSINESSES
View of the President’s Palace Acorda,
Astana Kazakhstan
agreement on co-financing both sides signed in
May 2014 in Astana.
Kazakhstan has also been working with the European
Bank for Reconstruction and Development (EBRD) to
support SMEs. The Kazakh government has provided
donor funding to the EBRD’s Small Business Support
(SBS) program, which provides advisory services to
enterprises throughout the country. Already, the EBRD
provided 15 billion tenge to Kazakhstan’s SMEs.
With financial support of USAID, the government
of Kazakhstan carries out the program “Business
Connections” to support Kazakh SME through arranging
for them business missions and trainings in the United
States. More than 120 Kazakh companies representing
various industries, such as construction, pharmaceuticals,
education, food processing, etc., have already became a
part of the project and had a chance to meet with their
American counterparts and potential business partners.
AN INTRODUCTION TO KAZAKHSTAN FOR AMERICAN BUSINESSES 39
44. KAZAKHSTAN-U.S. RELATIONS
Kazakhstan-U.S.
Relations
Kazakhstan is the U.S.’ most reliable partner in Central Asia. Kazakhstan and the U.S.
have worked together since December 1991, when the U.S. was the first country to
recognize Kazakhstan’s sovereignty and independence. Since then, the two countries
have worked together on issues regarding security,
energy, trade, democracy promotion and nuclear
nonproliferation.
In 2010, Kazakhstan and the United States launched the
Annual Bilateral Consultations (ABC) under Strategic
Partnership – a framework for cooperation on range of
issues including regional cooperation, stabilization of
Afghanistan, security, democratic reform, rule of law,
human rights, civil society development, economic
development, energy, science and technology, and
people to people contacts. In accordance with the
Action Plan, the parties created working groups that
collaborate on the issues. The level of interaction was
raised to Strategic Partnership Dialogue (SPD) in 2012.
In 2013, Washington hosted the second SPD meeting
where the two sides recognized that significant progress
has been made in the bilateral relationship since the
inaugural meeting in 2012.
Kazakhstan has worked with the U.S. to ensure
stability in the region of South and Central Asia. The
country has supported stabilization activities in
Afghanistan and fought the common regional security
threats, including nuclear proliferation, terrorism,
AN INTRODUCTION TO KAZAKHSTAN FOR 40 AMERICAN BUSINESSES
45. trafficking in persons, narcotics, and organized crime
as well as the newly emerging ones–climate change,
food security, and water security. Its efforts have
contributed to stability, peace and economic prosperity
of the neighboring countries.
Kazakhstan has actively supported the stabilization
of Afghanistan. The country granted overflight rights to
coalition forces during Operation Enduring Freedom
(OEF) and has since allowed for continued air and land
transit for NATO and U.S. troops, equipment and supplies
to and from Afghanistan. The port of Aktau and
Kazakhstan’s roads air, road and rail networks are part
of the Northern Distribution Network (NDN). In
addition, Kazakhstan has played an important role in
economic recovery of Afghanistan and efforts to integrate
the country into the region within the US Department
of State’s New Silk Road Initiative. The government
established a $50 million scholarship program to
educate one thousand Afghan students at Kazakhstan’s
universities. It co-chaired the Istanbul Process, opened
a trade office in Kabul, pledged to contributed to the
KAZAKHSTAN-U.S. RELATIONS
development of Afghan National Security forces $2
million, and established KazAID – an aid agency
focusing on Afghanistan and Central Asia. Kazakhstan
also constructed several infrastructure projects in
Afghanistan, including schools, hospitals, bridges, water
supplies and the Kunduz-Talukan road.
Threat reduction is a cornerstone of US-Kazakhstan
efforts to ensure regional stability. U.S. assistance to
Kazakhstan under Cooperative Threat Reduction (CTR)
Initiative, also known as the Nunn-Lugar Program,
allowed Kazakhstan to rid itself of 1,410 nuclear
warheads and eliminate its Soviet-inherited infrastruc-ture
for “weapons of mass destruction.” Thanks to this,
Kazakhstan signed the Nuclear-Non Proliferation Treaty
(NPT) with an indefinite extension, as a non-nuclear
weapons state (NNWS) – an event that was marked by
the visit of then Vice-President Al Gore to Almaty in
December 1993. In fact, gaining the status of a NNWS
was one of its most important decisions since
independence.
AN INTRODUCTION TO KAZAKHSTAN FOR AMERICAN BUSINESSES 41
46. KAZAKHSTAN-U.S. RELATIONS
Kazakhstan takes a firm stand in promoting nuclear
disarmament, non-proliferation, as well as control,
accounting and physical security of nuclear material.
Kazakhstan is a party to the Nuclear Non-Proliferation
Treaty (NPT), the Comprehensive Test Ban Treaty
(CTBT) and the Central Asian Nuclear Weapon Free
Zone (CANWFZ). Kazakhstan is an active partner in
the Global Initiative to Combat Nuclear Terrorism,
which aims to strengthen the global capacity to prevent,
detect and respond to nuclear terrorism. With the strong
support of the US, Kazakhstan is now in the final stages
of negotiating the terms of its hosting of the Interna-tional
Atomic Energy Agency (IAEA) nuclear fuel bank.
This bank will prevent the proliferation of nuclear
weapons by allowing countries to purchase fuel, rather
than setting up their own enrichment plants.
In May 2006, Kazakhstan and the U.S. signed a
cooperative agreement against the trafficking of
radioactive and fissile materials. The U.S. helped to
install fissile-detecting equipment in major border
crossings and train local staff. Kazakhstan’s border
security agencies have now increased their capabilities
to survey, detect and interdict the passage of radioactive
and fissile materials. The Kazakhstani government has
built a Training Center for Trafficking, under the
Ministry of Internal Affairs, and has introduced training
courses for anti-money laundering/counterterrorism
finance for government and non-government personnel.
Kazakhstan’s Support of
Peacekeeping Operations in Iraq
In 2003, Kazakhstan sent 27 military engineers to
assist coalition operations in Iraq. Over five years, nine
contingents totaling 290 Kazakh peacekeeping troops
were rotated through Iraq. Kazakhstan’s troops
undertook humanitarian assistance operations, convoy
security, perimeter and base defense activities, quick
reaction force duties, traffic control point operations,
water purification, and demining. In fact, Kazakhstani
forces dismantled five million mines and explosives
during their tenure in Iraq. Kazakhstani doctors,
together with their Iraqi colleagues and other
international counterparts, provided medical assistance
to more than 500 Iraqis.
AN INTRODUCTION TO KAZAKHSTAN FOR 42 AMERICAN BUSINESSES
47. In addition, Kazakhstan has improved its ability to
disrupt drug trafficking origination from Afghanistan
and dismantle associated criminal organization through
the effective investigation, prosecution and conviction
of traffickers. American units have also trained Kazakh
commandos to fight against insurgencies.
Kazakhstan has made strides in fighting organized
crime and terrorism. The country annually hosts the
“Steppe Eagle” joint counter-terrorism and peacekeeping
exercise between Kazakh, U.S. and NATO forces. Thanks
to this exercise and the military training assistance
Kazakhstan receives, it has developed peacekeeping
forces that are capable of carrying out missions that
include working with NATO forces. Moreover, as high-lighted
by the visit of U.S. Secretary of the Navy Ray
Mabus to Kazakhstan in Jun 2012, the U.S. Navy helped
Kazakhstan’s Defense Ministry to strengthen its emer-gency-
response capacity in the Caspian Sea. These
efforts confirm Kazakhstani government’s commitment
to ensuring regional stability through international
collaboration.
Trade and Economic Cooperation
For United States, Kazakhstan is a reliable partner and
regional leader in Central Asia and the United States is
one of the largest and fastest-growing trade partners of
Kazakhstan. In 2013, the trade turnover volume between
Kazakhstan and the U.S. amounted to $2.7 billion, an
increase of 9 percent as compared to the previous year.
Kazakhstan exported $1.4 billion worth of goods
and services to United States in 2013. The exports were
concentrated in natural resources. Top exports included
oil products ($1 billion), iron and steel, uranium,
tantalum and other uranium ores.
The overall volume of imports from the U.S. was
$1.3 billion. Non-agricultural imports represented
$882 million, a 7 percent increase from 2012, and were
concentrated in machinery ($333 million), aircraft
($204 million), electrical machinery ($127 million),
vehicles ($71 million), and railway (locomotive parts)
($70 million). Agricultural exports, which totaled $80
million in 2013 were concentrated in poultry meat
($68 million).
KAZAKHSTAN-U.S. RELATIONS
The U.S. is the fourth biggest foreign direct investor in
Kazakhstan. Since 1993 the U.S. has invested $ 25 billion
in foreign direct investment. Between 2005 and 2013
the US was the second largest investor in the Kazakh
economy, with majority of investment targeting the
energy and mining sectors.
Kazakhstan annually hosts various investment and
trade-economic events, where Kazakhstani government
officials and business leaders present current and future
investment opportunities open to U.S. investment and
establish frameworks for future cooperation with U.S.
businesses. During the investment road shows in 2012,
GlaxoSmithKline, Innovaro, Transcosmos have signed
memorandums of understanding with Kazakh businesses.
During Kazakhstan-U.S. Convention in 2013 the
Government has officially presented EXPO-2017 and
its opportunities for American energy companies.
Kazakhstan has worked with the U.S. to develop into
a prosperous market that embraces free-market
competition. Under the framework of the annual
bilateral consultations (ABC), founded in 2010, that
has been elevated to Strategic Partnership Dialogue in
2012, Kazakhstan and the Obama Administration focus
on creation of favorable conditions for the development
of investment and trade as well as economic develop-ment
more broadly. The U.S. has pledged to support
Kazakhstan in its effort to obtain the WTO membership
and to deepen trade and investment ties, particularly in
the sectors prioritized by Kazakhstan Strategy 2050.
Kazakhstan works closely with the United States to
support its leadership role in economic development
efforts in the Central Asia region. Together with
Kyrgyzstan, Turkmenistan, Tajikistan, Uzbekistan, and
Afghanistan the countries established the United
States-Central Asia Trade and Investment Framework
(TIFA) in 2004. In 2014, at the 9th Council Meeting,
the countries focused on advancing accession of the
countries into WTO, customs, investment, standards,
and sanitary measures coordination, as well as
procurement.
The United States pays great attention to energy
cooperation and has supported Kazakhstan in its efforts
AN INTRODUCTION TO KAZAKHSTAN FOR AMERICAN BUSINESSES 43
48. KAZAKHSTAN-U.S. RELATIONS
25%
20%
15%
10%
5%
0%
TOP 5 EXPORT DESTINATIONS OF KAZAKHSTAN– 2013
China Russia Italy Netherlands France
40%
30%
20%
10%
0%
TOP 5 IMPORT DESTINATIONS OF KAZAKHSTAN– 2013
Russia China Ukraine Germany U.S.
to increase its role in ensuring global energy security.
The Energy Partnership Commission that was established
in 2003, plays an important role in coordinating energy
cooperation between the countries. At the 10th Annual
Meeting of the Commission in 2014 the countries
agreed to continue promoting cooperation in four broad
areas: nuclear security, hydrocarbon resources, renew-able
energy and energy efficiency, and electric power.
In the context of Kazakhstan’s plan to transition towards
Green Economy, the countries have established a
permanent expert dialogue and advanced implementa-tion
of renewable energy, energy efficiency, and clean
energy projects.
The U.S. has actively promoted diversification of
pipeline export-routes in the Caspian Sea region, in
order to increase the energy security of consumers in
Europe and the Middle East and to diversify the market
opportunities for Kazakhstani exporters. With American
support, Kazakhstan signed an agreement with
Azerbaijan in June 2006 to transport oil through the
Baku-Tbilisi-Ceyhan (BTC) pipeline. For Kazakhstan,
this agreement was necessary to safeguard its export
markets due to Russia’s refusal to increase the trans-portation
capacity of the Caspian Pipeline Consortium
(CPC) and the BTC’s capacity to handle increased
production.
Since 2006 Kazakhstan has been co-funding
programs under USAID’s Economic Development
Program jointly with USAID, demonstrating country’s
interest in USAID’s expertise and support in developing
small and medium enterprises, economic reforms, and
regional trade. For the year 2014, programs targeting
development of small businesses, foreign investment
attraction and energy efficiency increase were allocated
around $4.1 million. Kazakhstan received approximately
$2 billion of all-agency funding from the U.S. between
1993 and 2012.
AN INTRODUCTION TO KAZAKHSTAN FOR 44 AMERICAN BUSINESSES
49. Another prominent initiative is the Science and
Technology Commission which was launched June 24-
25, 2013, in Astana by the U.S. State Department and
the Ministry of Education and Science of Kazakhstan.
By creating a dialogue platform with several working
groups (biomedical partnership, disease control, peer
review, innovations, etc.) Kazakhstan and the United
States affirm their commitment to strengthen scientific
and technical cooperation between scientists, engineers,
and students at research institutes and in the private
sector.
In addition to the Science and Technology
Commission, the United States welcomes Kazakhstan’s
climate change initiatives such as the “Green Bridge
Initiative” officially presented during “RIO+20” UN
Conference and “EXPO 2017”, where the U.S. will be
hosting its own pavilion. The United States highly
appreciates the decision of Kazakhstan to host the
KAZAKHSTAN-U.S. RELATIONS
International Science and Technology Center (ISTC)
headquarters office in Astana.
The New Silk Road initiative
Kazakhstan-U.S. economic ties are set to grow in the
near future with the State Department-backed New
Silk Road initiative for Central Asia and Afghanistan. It
aims to use energy, transport, trade, and infrastructure
projects to integrate the region, provide regional
stability and boost its potential as a transit area between
Europe and East Asia.
South and Central Asia remains one of the least
economically integrated regions in the world, presenting
an untapped opportunity for investment. As such, the
initiative targets to improve this by accelerating the
flow of goods, services and people throughout the region
to promote cross-border collaboration and trade.
AN INTRODUCTION TO KAZAKHSTAN FOR AMERICAN BUSINESSES 45
Kazakhstan’s Graduation From
Jackson-Vanik Amendment
The Jackson-Vanik Amendment, passed in 1974, is a
series of trade restrictions linked to human rights issues,
particularly discriminatory emigration. Under the law,
the U.S. denies the most favored nation (MFN) and
normal trade relation statuses’ to countries that do not
extend their citizens the right of freedom of emigration.
Originally passed to punish Soviet Union for thwarting
efforts of the Jewish population to emigrate, the
legislation enabled 100,000 Jews to leave the Soviet
Union over the next decade. Yet, almost three decades
later, the Soviet Union is gone, and the legislation
remains in force, obstructing trade relations between
the U.S. and Kazakhstan.
While each year the U.S. President reviews
compliance with the amendment and renews an
extension of the Jackson-Vanik waiver for Kazakhstan,
it is the official position of the Republic of Kazakhstan
that it should receive a permanent exemption.
Jackson-Vanik-related restrictions on trade are relics of
the Cold War that are not applicable to current
emigration policies or to the treatment of religious
groups in Kazakhstan. Kazakhstan has earned interna-tional
recognition for its promotion of freedom of
religion and support for efforts to tackle racial and
religious intolerance and discrimination both on
domestic and international levels.
Kazakhstan has been a strong and reliable partner
of the US in security, energy, and trade, and has indicated
willingness to cooperate on issues like agricultural
imports and the protection of intellectual property
rights. Jackson-Vanik is incompatible with WTO rules,
so when Kazakhstan gains WTO accession, U.S.
businesses will not be able to take advantage of
associated lowered tariffs and trade-promotion benefits
granted to WTO members. The U.S.’ permanent
graduation of Kazakhstan from Jackson-Vanik and
recognition of Kazakhstan as an equal trading partner
would boost bilateral trade volumes and would send a
signal to the global market that the two countries are
committed to further deepening their ties.