040402`

Vol. 2, No. 16, May 8, 2002

Politics

First Summit of Conference on Cooperation and Confidence-Building

Measures in Asia to take place in Almaty in June

President sets up National Council to coordinate policies

Economy

Switzerland supports Kazakhstan's WTO bid

OPIC looks to boost investment in Kazakhstan

World Bank to expand presence in Kazakhstan

GDP up by 10% in January-April

Kazakhstan looking to boost coal production in 2002

Special report

Kazakhstan celebrates 10th anniversary of its military

POLITICS

First Summit of Conference on Cooperation and Confidence- Building Measures in Asia to take place in Almaty in June

The first Summit of the Conference on Cooperation and Confidence-Building Measures in Asia (CICA) is to take place in Almaty on June 4, Secretary of State Minister of Foreign Affairs Kassymzhomart Tokaev told journalists this week.

The forum, which was formed at the initiative of President Nursultan Nazarbayev in 1992, unites 16 member-countries in the Middle East and Asia. The Conference aims to promote peaceful dialogue and reduce regional tensions on the Asian continent. The summit was originally planned for November 2001 but was postponed in the aftermath of September 11th.

Mr. Tokaev said the Government is pleased with the planning of the summit thus far. Experts from CICA member-states are currently drawing up drafts of declarations on the fight against terrorism and other matters that will be signed at the summit, he added.

The presidents of Turkey, Iran, Kyrgyzstan, Tajikistan and Pakistan have already confirmed their attendance at the summit. The Foreign Minister expressed confidence that India, China, Azerbaijan, Egypt and Mongolia will also be represented by high-level delegations. Russian President Vladimir Putin has also preliminarily agreed to attend.

President Nazarbayev sets up National Council to coordinate policies

President Nursultan Nazarbayev signed a decree last week establishing the National Council as a consultative body under the president to draft proposals and recommendations on main directions of internal and external policies. The Council is to assist the head of state in ensuring coordinated functioning of all branches of power and increasing the state authorities' accountability with the people. The Council's responsibilities will also include drafting proposals to improve the state's functioning and examining the most important pieces of legislation or presidential acts prior to their introduction.

The Council's members will include the President as its chairman, the Prime Minister, the Speakers of both houses of Parliament, the Secretary of State, the Prosecutor General, as well as members of the Parliament, regional governors and mayors, leaders of local legislative assemblies.

The Council is to sit at least once in half a year. Its establishment came on the heels of the President's state-of-the-nation address on April 29, in which he reaffirmed his strong commitment to democracy. President Nazarbayev also called upon the Government and the people to move along the path of democratic reforms "step by step, preserving the values of our culture based on mutual assistance, tolerance, collectivism and mutual respect among the peoples of many ethnic background".

ECONOMY

Switzerland supports Kazakhstan's WTO bid

During meetings with Kazakhstan officials on May 3, Switzerland Vice President Pascal Couchepin pledged that his country would support Kazakhstan's bid to join the World Trade Organization.

On a visit to cultivate economic and political ties with Kazakhstan, Mr. Couchepin told journalists that he anticipated Kazakhstan would be granted membership at the same time as Russia, whose 7-year bid has recently been seen as gaining new momentum. Membership in the WTO "would become a big stimulus for foreign investors," Mr. Couchepin said, noting that small and medium-sized businesses in Switzerland were interested in the Kazakhstan's market.

OPIC looks to boost investment in Kazakhstan

The Overseas Private Investment Corp., an independent US Government agency, hopes to boost cooperation with Kazakhstan, OPIC President Peter Watson told Kazakhstan Ambassador to the United States Kanat Saudabayev during a meeting in Washington on May 3.

Mr. Watson told the Ambassador that OPIC planned to attract American businesses to invest in priority sectors of the republic's economy. OPIC will soon send a delegation to determine its involvement in specific projects in the republic, Mr. Watson added.

Since 1992 OPIC has invested some USD 98 million in Kazakhstan.

World Bank to expand presence in Kazakhstan

The World Bank is planning to enlarge its office in Kazakhstan in order to tackle larger projects and coordinate some regional projects, World Bank President James Wolfensohn said during a meeting with Kazakhstan Ambassador to the United States Kanat Saudabayev in Washington last week.

According to Mr. Wolfensohn, the World Bank is looking to increase its activities on a regional level in Central Asia, particularly in those projects relating to transborder issues such as water supply, regional trade, drug trafficking as well as healthcare.

GDP up by 10% in January-April

Kazakhstan's gross domestic product (GDP) grew by an estimated 10% in the first four months of this year in comparison with the same period in 2001, Finance Minister Alexander Pavlov said at a government meeting on May 7. Industrial production during the reported period was up 11.5-12%, Pavlov added.

The finance minister expressed particular pleasure with data showing a 14.6% growth in manufacturing in the first four months of 2002 as the sector outpaced growth in Kazakhstan's traditionally strong showing of the oil, natural gas and metals sectors.

Kazakhstan looking to boost coal production in 2002

Kazakhstan expects to see coal output in the republic rise to 81 million tons this year, up from 78.9 million tons in 2001, Minister of Energy and Mineral Resources Vladimir Shkolnik announced at a recent Government meeting.

Coal exports in 2001 totaled 27 million tons, with Russia being the major consumer of Kazakhstan exports. Mr. Shkolnik noted, however, that Kazakhstan coal companies have recently expanded their distribution markets to include new clients in Romania, Poland and Estonia.

Mr. Shkolnik said he believes with continued expansion of distribution markets Kazakhstan could easily "boost coal export shipment to 30-35 million tons" in the next few years.

SPECIAL REPORT

Kazakhstan celebrates 10th anniversary of its military

On May 7, Kazakhstan celebrated the 10th anniversary of its armed forces. Just two weeks ago Kazakhstan witnessed its largest military maneuvers since independence that involved 28,000 troops and a number of highly sophisticated weaponry.

Kazakhstan places great emphasis on the development of its conventional military as a guarantor of sustainable and prosperous economic development of the young nation. Its armed forces include modern air defense forces and the army. The fledgling navy is being developed on the Caspian Sea. Over the years the military has undergone a number of reforms towards a professional army of the 21st century. Recently, President Nazarbayev called for the adoption of a law on alternative military service as opposed to conscription service existing today.

In 1992, Kazakhstan renounced nuclear and other weapons of mass destruction and committed itself to non-proliferation cause. Since that time, working with the U.S. under the Cooperative Threat Reduction program, Kazakhstan has successfully removed over 1,000 nuclear warheads, dismantled and destroyed sprawling infrastructure of testing and production of chemical and biological agents.

Over the years Kazakhstan has been developing close ties with the United States, NATO countries and other nations within the Partnership for Peace program, including joint exercises and officer training. Kazakhstan's cadets have been studying at West Point academy, including a female cadet.

In the current war on terrorism, Kazakhstan has opened up its airspace for coalition aircraft; over 600 of those have flown over Kazakhstan since October 2001. During his recent visit to Kazakhstan, U.S. Secretary of Defense Donald Rumsfeld held talks with Kazakhstan's leaders on emergency use of three airfields in the south of Kazakhstan. Kazakhstan has also announced it will send its liaison officers, headed by a general, to U.S. Central Command headquarters in Tampa, Florida.

Separately, on May 9, Kazakhstan will commemorate the 57th anniversary of the Victory Day in the World War II. As part of the Soviet Union, Kazakhstan sent 1.336 million of its men and women to fight during the war with fascists, of whom one half never returned home.

* * *

For more news and information visit us at www.kazakhstan-embassy-us.org

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