Kazakhstan
News Bulletin
Released weekly by the Embassy of the Republic of Kazakhstan
March 26, 2003 Vol. 1, No.15
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In this issue:
Kazakhstan Believes Saddam Hussein Responsible for Conflict, Says It Has Moral Right to Demand Nonproliferation from Others
Kazakhstan's Economic Growth Due to Oil Wealth, Structural Reforms, IMF Says
Kazakhstan Joins Interstate Oil and Gas Transportation System
Five Political Parties Registered
Kazakhstan Believes Saddam Hussein Responsible for Conflict, Says It Has Moral Right to Demand Nonproliferation from Others
Kazakhstan's Foreign Ministry on March 21 said Saddam Hussein was responsible for the start of military operations in Iraq, but also expressed concern about the international community's lack of unity over the crisis.
"The responsibility for the latest developments (around Iraq) lies with Saddam Hussein who has failed to provide convincing evidence of his country's disarmament," Kazakhstan's Deputy Foreign Minister Alikhan Smailov said. Having renounced the world's fourth largest nuclear arsenal and having worked with the IAEA and international inspectors, Kazakhstan has "a moral right to demand from other nations to conduct policies of nonproliferation in the name of ensuring global security," he added.
"Unfortunately, there is a trend toward the split of public opinion on the Iraqi problem. This can have unpredictable consequences for the world, and Saddam Hussein is responsible for that," Smailov noted. He said Kazakhstan regrets the unfortunate loss of human life accompanying the war.
"The military actions in Iraq have resulted from the lack of unity among nations on this problem, which makes one think of the need to reform the UN," the diplomat added. Earlier last week, the Foreign Ministry said Kazakhstan remained an "active member" of the U.S.-led international antiterrorist coalition, and was looking forward to working further with the United States. It also called for strengthening the role and authority of the United Nations in ensuring global peace and security.
Smailov also said Kazakhstan's economy would not be affected by the war in the short term, due to the existence of the $2-billion National Fund, low external debt and the fact that raw materials sector account for only 15 percent of the GDP.
Kazakhstan's Economic Growth Due to Oil Wealth, Structural Reforms, IMF Says
Kazakhstan's "strong economic performance" over the past several years was not only due to "oil wealth" but also to "early structural reforms and prudent macroeconomic management", the IMF said in a March 11 statement following its mission's visit to the republic. The mission met with senior officials in the Kazakhstan government and the National Bank to discuss the economic situation and outlook for Kazakhstan, and the appropriate set of macroeconomic and structural policies required to meet the challenges ahead.
"The economy grew by about 9.5 percent in 2002 and by over 10 percent per year over the last three years. Inflation in 2002 at 6.5 percent was broadly unchanged from the previous year, but accelerated somewhat in early 2003," the statement said.
"External performance was also strong. Reserves of the National Bank reached US$3.1 billion by end-2002, while assets of the National Fund now exceed US$2 billion. This strong macroeconomic performance is expected to continue during 2003," the IMF stated.
The Government and the IMF were said to agree that "the overall policy environment facing Kazakhstan was undergoing significant change because of very high world oil prices and, over the medium term, sharply rising oil export volumes". The IMF "welcomed the important role played by the National Fund in managing the growing oil wealth and agreed with the authorities' intention to use part of the oil wealth to address pressing social and economic needs."
The Fund also noted that ensuring competitiveness in the non-oil sector required the acceleration of structural reforms, trade liberalization, and further improvements in the business climate. Citing "the impressive achievements made in stabilizing the economy, the extremely favorable medium- and long-term economic outlook for Kazakhstan, and the very low probability that the country will need to borrow from the Fund in the future", the IMF said it would not replace its resident representative in Kazakhstan later this year. It will remain, however, open for policy dialogue and requests for technical assistance.
Kazakhstan Joins Interstate Oil and Gas Transportation System
Kazakhstan joined the 21-nation Interstate Oil and Gas Transportation System March 26, after President Nursultan Nazarbayev signed the bill ratifying the accession to the appropriate agreement.
The move is meant to create favorable conditions for transporting Kazakhstan's oil to Europe. Experts believe the republic will clearly need additional transport facilities in five years time, and hence the accession to the system is deemed a strategic move. It is intended to provide platform for prompt solutions to issues relating to tariffs, financing, transportation, and the environment that can arise during the exportation of Kazakhstan's resources.
The agreement, signed in 1999 in Kiev, is part of the complex INOGATE program, designed to create common regulations and mechanisms on oil pipelines' usage for pipelines transporting oil to the European markets. The signatories of the agreement undertake to assist each other in rehabilitating the existing and building new pipeline systems. The document also ensures security guarantees for transport infrastructure.
Five Political Parties Registered
As of March 21, five political parties were registered in Kazakhstan by the Ministry of Justice based on their applications meeting the legally required membership threshold of 50,000. These parties include two centrist parties with currently the largest number of seats in the national Parliament, Civil and Otan, the recently created Ak Zhol democratic party, the Agrarian party, and the Communists.
The Ministry of Justice said applications from two more political parties, Renaissance of Kazakhstan and Auyl (Village), were received and were being reviewed. The Ministry said final results of the registration processes would be announced at a later date. Earlier the Ministry rejected applications of four parties, Alash, Compatriot, El Dana, and Party of Patriots, who failed to assemble enough membership.
Currently, there are four party caucuses in the national Parliament of Kazakhstan, including the Agrarian party with 11 members, Civil Party (27), Auyl Democratic Party (12) and Otan (44). The next parliamentary election is due in the fall of 2004.
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News Bulletin of the Embassy of the Republic of Kazakhstan to the USA and Canada
(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
