Kazakhstan
News Bulletin
Released weekly by the Embassy of the Republic of Kazakhstan
April 17, 2003 Vol. 2, No.3
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In this issue:
U.S. "Wholly Committed to Engagement, Dialogue" with Central Asia, American Diplomat Says
Gold, Forex Reserves at $6,219 Billion, National Bank Chairman Says
Financial Reserves to Allow Kazakhstan to Weather Potential Crisis for 3 Years, President Says
Kazakhstan Subscribes to the IMF's Special Data Dissemination Standard
U.S. "Wholly Committed to Engagement, Dialogue" with Central Asia, American Diplomat Says
The United States is "wholly committed to intensive engagement and dialogue with each of the nations of this pivotal region of the world [Central Asia and Caucasus]," Assistant Secretary of State Elizabeth Jones said in a speech last week. She spoke at the conference, "Central Asia: Its Geopolitical Significance and Future Impact", at the University of Montana in Missoula on April 10.
The diplomat said the U.S. has had important interests in the region beyond supporting the transition of formerly Communist countries. "After September 11 [2001], global interests such as combating terrorism, weapons proliferation, and trafficking in narcotics and other illicit goods also came to the fore," she noted. The United States has "an interest in resolving and, where possible, preventing violent conflicts that threaten regional stability. And we also have an interest in seeing all countries of the region become democratic, market-oriented states -- the best long-term guarantee of regional stability and of positive, mutually beneficial relations."
"Finally, the Soviet legacy of weapons of mass destruction -- weapons infrastructure and expertise -- remains a critical United States security interest in the region," Jones noted. The U.S. assistance continues to be targeted at the detection, deterrence, interdiction, control and reduction of the vast Soviet military arsenal, with its widely dispersed sources of WMD and WMD expertise.
She said the U.S. vision for this region is simple: "that these nations remain independent, and become democratic, stable, and prosperous partners of the United States." To fulfill this commitment, America "must have all the diplomatic and financial tools necessary to permit us to do so," Jones said. She added that in 2002 the U.S. spent $958 million on assistance in Central Asia and the Caucasus to build civil society, promote political and economic change, and combat terrorism. She called it "a bargain", given the scope of work.
"A stable, prosperous Central Asia and the Caucasus will mean a more secure world for the American people and a more prosperous future for the people of the region," Jones said. She reaffirmed "in the strongest terms the United States' long-term commitment to intensive engagement in this important region of the world.
"Engagement results in a classic win-win situation for everyone. This is attainable and we will continue to strive for it," she concluded.
Gold, Forex Reserves at $6,219 Billion, National Bank Chairman Says
The National Fund of Kazakhstan holds $2,210 billion, while gold and foreign currency reserves of the National Bank stand at $4,009 billion, bringing the total of the national reserves to $6,219 billion, National Bank Chairman Grigori Marchenko told journalists in Astana on April 17. This represents a monthly increase of 4.9 percent.
"In the meantime, the aggregate external debt of Kazakhstan amounts to $3.450 billion," Marchenko added and reminded that three years ago the debt actually exceeded reserves by $3 billion.
He was speaking after the regular meeting of the National Fund's Management Council chaired by President Nazarbayev. The Council discussed the way the National Fund, set up in January 2000 to accumulate excess revenues from oil and other raw materials sectors, was being operated. Finance Minister Zeinulla Kakimzhanov said that "the existence of the National Fund earns Kazakhstan's economy high marks and strengthens the republic's positive image."
Financial Reserves to Allow Kazakhstan to Weather Potential Crisis for 3 Years, President Says
Even if the world's oil prices will fall precipitously as a result of the war in Iraq, "Kazakhstan will be able to weather the crisis for three and more years," President Nursultan Nazarbayev said while visiting the North Kazakhstan region on April 15.
He said this will be possible due to strong financial reserves, which "currently exceed the state debt two times." "There's no such thing in any other country," Nazarbayev said, adding that this year National Fund's reserves are expected to exceed $3 billion.
Nazarbayev said the government is working to improve the people's lives, spending 120 billion tenge ($1=T152) for social purposes and raising the average pensions by 40 percent this year. The President said that 800,000 people live below poverty line, meaning they earn less than 2,000 tenge per person per month, and declared that the government would work to fight unemployment by creating new jobs.
Kazakhstan Subscribes to the IMF's Special Data Dissemination Standard
"On March 24, the Republic of Kazakhstan became the 53rd subscriber to the International Monetary Fund's Special Data Dissemination Standard (SDDS), marking a major step forward in the development of the country's statistical system," the IMF said in an April 4 statement. "The Kazakhstan authorities view subscription as the culmination of many initiatives on the statistical front," the Fund noted.
"Since its independence in 1991, Kazakhstan has made a significant effort to bring its official statistics in line with international standards," the Fund said. "Kazakhstan was among the first group of countries who participated in the IMF's General Data Dissemination System (GDDS) to have metadata posted to the IMF's Dissemination Standards Bulletin Board (DSBB), serving as an example for other countries in the region. On this occasion Kazakhstan is the first country to move from the GDDS to SDDS subscription, again providing an example to be followed by GDDS participants."
The SDDS, established by the IMF in March 1996, is intended to guide members in the provision of their economic and financial data to the public. Subscription to the SDDS is expected to enhance the availability of timely and comprehensive statistics and thereby contribute to the pursuit of sound macroeconomic policies and the improved functioning of financial markets. The SDDS identifies four dimensions of data dissemination: coverage, periodicity, and timeliness; access by the public; the integrity of the disseminated data; and the quality of the disseminated data. Although subscription is voluntary, a subscribing member commits to observe the standard and to provide metadata to the IMF about its data dissemination practices (for more information http://dsbb.imf.org/Applications/web/dsbbhome/).
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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
