Kazakhstan News Bulletin Released weekly by the Embassy of The Republic of Kazakhstan
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Vol. 1, No. 4, February 12, 2002
Politics 
·"Kazakhstan and the U.S.: a growing partnership in need of our support"
·President Nazarbayev asks the new Government to be "a competent manager"
Economy
·Kazakhstan boasts most favorable investment climate in Central Asia
Society
·Smithsonian Institution announces the Silk Road exhibition
POLITICS
Secretary of State, Foreign Minister Kassymzhomart Tokaev visited USA
On February 4-6, 2002 the newly appointed Secretary of State - Minister of Foreign Affairs of Kazakhstan Kassymzhomart Tokaev visited Washington, D.C. for a round of meetings with top U.S. officials, including Vice President Richard Cheney, Secretary of State Colin Powell and National Security Advisor Condoleezza Rice. During the meetings, Mr. Tokaev confirmed that Kazakhstan stands by its offer of any assistance to the U.S. in the fight against international terrorism and discussed ways to expand the interaction between Kazakhstan and the U.S. in that sphere. Speaking later at CNN's Wolf Blitzer Reports, Mr. Tokaev said Kazakhstan has provided over 130 overflights for the US aircraft and is ready to provide airfields for antiterrorist operations if requested.
At the official meetings Mr. Tokaev discussed further development of Kazakhstan-US bilateral cooperation following the December 2001 visit of President Nazarbayev, including in the energy sphere, and the elimination of trade barriers, particularly through the graduation from the outdated Jackson-Vanik amendment to the 1974 Trade Act, which prevents Kazakhstan from having permanent normal trade relations with the United States. Mr. Tokaev discussed ways to enhance bilateral relations with cochairmen of the Congressional Silk Road Caucus Senator Sam Brownback (R-KS) and Representative Joseph Pitts (R-PA(16)).
Visiting New York for the World Economic Forum over the previous weekend, Mr. Tokaev pledged continuity in Kazakhstan policies on future of economic cooperation with the West. "Our Government is strictly in favor of sustaining sanctity of previous contracts with all American companies", he said.
Kazakhstan is expected to auction about 100 offshore blocks in its Caspian sector this year, many near the Kashagan oil field, which has been called the biggest oil find in 30 years.
He credited Kazakhstan's ten-year long investment boom, which has brought over USD 12 B in foreign investment, to the republic's political stability, transparent laws and "stability of contracts".
A drop in world oil prices in 2002 will not overly affect Kazakhstan, Tokaev said, due in part to the republic's plans not to cut crude output in 2002, despite some pressure from the OPEC. Kazakhstan is poised to produce about 40 million tons of crude this year, up from 37 million in 2001. By 2015, output is expected to hit 150 million tons.
"Kazakhstan and the U.S.: a growing partnership in need of our support"
On February 5 Representative Edolphus Towns (D-NY(10)), member of the House Energy and Commerce Committee, made a statement on the need for the United States to show "firm and long-term support" for Kazakhstan.
"Kazakhstan, the largest nation in Central Asia, has offered cooperation in every area of the war effort. Kazakhstan has stood with us, and we, as Americans, must join hands with them, helping Kazakhstan and our other new allies in the area as they work to stabilize this critical region", Mr. Towns said.
"There are many reasons we should become more involved with this strategically important country," he believes. "Not the least are the vast oil reserves of Kazakhstan that could potentially rival those of Saudi Arabia and will help guarantee our future energy needs. Kazakhstan's cooperation in the war on terrorism coupled with our energy concerns mean that now is the time for us to support Kazakhstan and their bright future".
The congressman believes that "the decade of growing friendship and cooperation, and particularly the strong support shown to us by Kazakhstan in fighting terrorists, has proved Kazakhstan to be our true friend and worthy of all help we can provide".
Among "a number of very real steps" for Congress to take, Rep. Towns proposed to "graduate Kazakhstan from an outdated Jackson-Vanik amendment to the Trade Act of 1974 and grant Kazakhstan permanent normal trade relations status". He believes that this step, to be taken during this session, will "provide a much-needed boost for the expansion of the U.S. trade ties with Kazakhstan and will directly benefit hundreds of American businesses there". Mr. Towns reminded "fellow members of Congress, and the American nation, that American investment in Kazakhstan over the past decade totals 5 billion dollars. That makes the U.S. the largest single foreign investor in the country, and makes Kazakhstan the clear focus of American investment in Central Asia".
Congress should also "consider earmarking assistance to Kazakhstan in the next year's budget. The assistance should go to further solidifying Kazakhstan's successes in reforming its economy and society, as well as to strengthening its military and border protection". This move will send "a clear message to the people of this important ally that the U.S. is serious about its intentions to stand by Kazakhstan as they move to become the main driving force behind the development of Central Asian stability and prosperity".
Stressing the commitment to seeing the whole of Central Asia develop into a truly stable and prosperous region, Mr. Towns believes that "only then will it cease to be a breeding ground for terrorism and a source of threats to our homeland and other peaceful nations. The time to act is now".
President Nazarbayev asks the new Government to be "a competent manager"
Speaking at the first session of the new Government on February 7, President Nazarbayev called for the ministers to reform their work, fight the red tape, and reduce bureaucracy and paperwork. The President instructed the Government to exercise fully its responsibilities in handling the economy and called for the more prudent economic management.
"Let's stop developing programs that do not have funding and resources allocated for them. I ask the new government not to invent yet another reform. Rather, be a competent manager", Mr. Nazarbayev said.
ECONOMY
IMF commends Kazakhstan "for the markedly improved macroeconomic performance in 2000-01"
"Directors commended the authorities for the markedly improved macroeconomic performance in 2000-01, reflected in continued strong growth, the reduction of inflation to single digits, stability in the foreign exchange market, and the increased stock of international reserves and foreign assets", the IMF's Executive Board said in a public information notice on Kazakhstan on February 5, 2002.
"Although a favorable external environment, including high oil prices, contributed to such a positive outcome, the prudent stance of macroeconomic policies adopted by the authorities played an important role", said the report. (For its full text please visit
Driven by the strong growth in the petroleum sector and associated spillover effects, real GDP growth in 2001 is expected to be around 13 percent, said the report. Inflation has declined further to 6.4 percent in December (year-on-year). Gross international reserves of the National Bank of Kazakhstan (NBK) have risen to $2.5 billion, which provides for about three months import coverage. In addition, the government's assets in the newly created National Fund for the Republic of Kazakhstan (NFRK), have reached $1.24 billion (6.4 percent of GDP) at end-December 2001. Petroleum production has been rising at around 15 percent per annum and the oil sector alone, including transportation, now accounts for approximately one quarter of GDP.
The IMF believes that "Kazakhstan is in a much better position now to confront a downturn in the external environment". Nevertheless, it stressed "the need to consolidate the recent gains and strengthen the basis for sustained, diversified economic growth by stepping up the implementation of structural reforms".
Kazakhstan boasts most favorable investment climate in Central Asia
Kazakhstan can boast of the most favorable investment climate in Central Asia, revealed a survey of public relations managers from foreign oil companies who took part in a conference organized by the Kazakhstan Petroleum Association (KPA) on January 25.
The KPA unites major domestic and foreign oil companies working in the republic, including ChevronTexaco, ExxonMobil, Agip KCO, BG, Hurricane Kumkol Munay, Karachaganak Petroleum Operating, Kazakhoil, Tengizchevroil, TotalFinaElf and others.
SOCIETY
"The Soul of Kazakhstan" book launch
During his visit to the U.S. last week, Foreign Minister Tokaev was an honorary guest at a presentation of a new book "The Soul of Kazakhstan" at a crowded ceremony at the Folger Shakespeare Library on the Capitol Hill on February 5.
The book dedicated to the traditions and history of the republic and its peoples was authored by internationally recognized photographer Wayne Eastep and Dr. Alma Kunanbai, a respected anthropologist and ethnographer from Kazakhstan, and was made possible through the sponsorship of ExxonMobil Corp. that has an extensive business presence in the republic.
Talking to the audience that included members of Congress and Congressional staff, academia, media and business leaders, Mr. Tokaev praised the book as "an important contribution to bringing the peoples of Kazakhstan and the United States together".
Addressing the gathering, Senator Sam Brownback, cochairman of the Congressional Silk Road Caucus, said Kazakhstan is a critical country in Eurasia and it is important for the United States to develop the relations in many spheres, including the cultural one.
Representative Joe Pitts, the Caucus cochairman, said Kazakhstan is "a jewel in the crown" of the region and the book will help build cultural bridges between the Americans and the people of Kazakhstan.
Smithsonian Institution announces the Silk Road exhibition
The Smithsonian Institution announced on January 31 that its 36th Folklife Festival, "The Silk Road: Connecting Cultures, Creating Trust", held outdoors on the National Mall between Seventh and 14th Streets, will present a single-themed event for the first time in its history. It will be devoted to exploring the cross-cultural influences among the lands of the legendary Silk Road. The free-admission Festival will be held June 26 through June 30 and July 3 through July 7 2002.
With trade routes that crisscrossed Asia and Europe from Japan to Italy, the historic Silk Road linked diverse cultures and peoples and promoted the unprecedented sharing of ideas, art, music, science and innovations.
Musicians, artisans, cooks and storytellers from Kazakhstan will be among some 350 men and women of culture from more than 20 countries telling the complex story of the Silk Road, its peoples and cultures and the intercultural exchange that continues today and extends to life in the United States.
For more information visit the Festival's Internet address is
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News Bulletin of the Embassy of the Republic of Kazakhstan
(Compiled from own sources and various agencies' reports)
Contact persons: Roman Vassilenko, Aibek Nurbalin
Tel.: (202) 232- 5488 ext. 104, 115
Fax: (202) 232- 5845
