In this issue:
Shanghai Cooperation Organization Takes Shape, Pledges to Fight Terrorism
In Turkey, President Calls for New Caspian Sea Stability Pact
Citing Strengthening Economic Prospects, Standard & Poor's Raises Currency Ratings for Kazakhstan
Kazakhstan Moves Toward Criminalizing Human Trafficking
Shanghai Cooperation Organization Takes Shape, Pledges to Fight Terrorism
Decisions made at the May 29 Moscow
summit of the 6-nation Shanghai
Cooperation Organization mean it is
"gaining momentum", President
Nursultan Nazarbayev of Kazakhstan,
who chaired the summit, said on
Thursday.
"The Shanghai Cooperation Organization
is gaining momentum and attracting the
attention of other international
organizations," Mr. Nazarbayev said.
"Recent events in the world give our
partnership a special meaning," he added.
"A new and more efficient way of
countering international terrorism
has to be devised," President Nazarbayev
said. As announced at the summit, the
SCO members will hold joint antiterrorist
exercises in Kazakhstan in the fall of 2003.
The presidents of the six member states - China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Uzbekistan, - agreed upon documents regulating the operation and financing of the SCO. They agreed that the SCO secretariatwill be set up in Beijing, while the Antiterrorist Center that will deal with terrorism and drug trafficking will be headquartered in Bishkek. Zhang Deguang, former Chinese Ambassador to Kazakhstan and presently to Russia, was named the organization's executive secretary.
The leaders adopted a declaration on the SCO's priorities that will include fighting the international terrorism, countering drug trafficking and building peace and stability in the region and beyond. Economic and humanitarian cooperation will also be promoted.
The leaders stressed the importance of the United Nations in resolving the major international problems, but they also underscored the need to reform it.
The Shanghai Cooperation Organization, formerly known as Shanghai Five that dealt mostly with cross-border security, was established in June 2001. At that time it admitted Uzbekistan and expanded its scope of interests to include fighting terrorism and extremism and promoting economic ties.
In Turkey, President Calls for New Caspian Sea Stability Pact
The signing of the Caspian Sea Stability Pact, a brand new document that would promote peace and security in the oil-rich region, is important today more than ever, President Nursultan Nazarbayev said on a visit to Turkey on May 21.
"Both Turkey, that has close relations with the countries of the Caspian region, and these very countries should sign such a document," Mr. Nazarbayev said in a speech to the Turkish Military Academy in Istanbul.
He said that the Central Asian and Eurasian regions play an important role for the global security, especially after the terrorist attacks of September 11, 2001. Moreover, the Caspian region has a special role to play as a significant energy supplier. Turkey is interested in these resources, Mr. Nazarbayev said, hence it is important for Ankara to see the Baku-Tbilisi-Ceyhan (BTC) pipeline built.
During his visit to Turkey, President Nazarbayev met the country's President Ahmet Necdet Sezer, Prime Minister Recep Tayyip Erdogan and other officials.
At an event in Istanbul the same day, the President said "oil originating in Kazakhstan needs to be taken into account" for the future of BTC line. While in 2002 Kazakhstan produced 47 million tons of oil and gas condensate, by 2010 the production will grow to 120 million tons, he added.
Turkish officials called for the soonest accession of Kazakhstan to the BTC line during the visit.
"This pipeline is the most convenient way to transport Kazakhstan's oil to Western markets in terms of security, stability, consistency of operations and environment protection," Prime Minister Erdogan said at the same event. He said Turkey is interested in seeing the legal and technical issues settled as soon as possible in order to open the way for shipping Kazakhstan's oil through the pipeline. The completion of the line, which may then potentially be renamed Aktau-Baku-Tbilisi-Ceyhan transportation system, is expected in 2005.
Kazakhstan has been advocating the multiple pipeline routes for its current and future oil exports, including pipelines through Russia, the Caucasus and Turkey, China and other routes. The ultimate decision on how to export the extracted oil lies with the private companies that own the rights to it, the government has said.
Citing Strengthening Economic Prospects, Standard & Poor's Raises Currency Ratings for Kazakhstan
Standard & Poor's Ratings Services said May 28 that it raised its long-term foreign currency ratings on the Republic of Kazakhstan to 'BB+' from 'BB', and its local currency ratings to 'BBB-/A-3' from 'BB+/B'.
"The upgrade reflects the sustained strengthening of the Republic's economic prospects, as well as prudent policies keeping the government's deficit and debt at low levels," the London-based agency said. At the same time, the 'B' short-term foreign currency rating on Kazakhstan was affirmed. The outlook is stable.
"Public sector net external assets are expected to reach about 28.4% of current account receipts in 2003, on the back of continued economic growth and the resource-based tax revenues that follow," said Standard & Poor's credit analyst Luc Marchand. "Moreover, fiscal prudence is underpinned by the accumulation of oil and tax windfalls in a National Fund, which will smooth the impact of oil price volatility."
The persistence of prudent financial policies has limited both fiscal deficits and inflation, thereby strengthening already robust economic prospects, the agency said.
Meanwhile, macroeconomic stabilization should continue, with price growth estimated at 6.4% in 2003, and economic growth at about 8.6%.
In addition, the vulnerability of the economy and the budget to external shocks has been decreasing. On the back of continuous increases in investment, production, and export capacities in the oil and gas sectors, Kazakhstan is able to post high potential growth and low deficits even in the face of low oil prices.
Kazakhstan Moves Toward Criminalizing Human Trafficking
Earlier in May, the Majilis (the lower house of the Parliament) approved additions to the country's Criminal Code that specify punishments for trafficking in human beings for purposes of sexual or other forms of exploitation, news agencies reported.
Deputy Justice Minister Irak Elekeev told reporters the adoption of the legislation would add a legally defined crime to the Code, that is one of the exportation of people from Kazakhstan, or human trafficking. He said the action was necessary because existing laws do not cover the trafficking of people from other countries via Kazakhstan. The additions approved by the Majilis would impose sentences of up to four years in prison for human trafficking.
"The new amendment would allow the competent authorities to fight back the activities of criminal transnational groups that prey on human trafficking," Majilis Deputy Ramazan Sarpekov said. "These types of crimes can only be defeated through common efforts."
There is already certain legislation enacted in Kazakhstan that deals with illegal migration, deprivation of freedom, the abduction and sale of human beings, and recruitment for purposes of prostitution. Human trafficking has become a growing problem in Central Asia in recent years.
The proposed legislation would put Kazakhstan firmly in line with its membership obligations to the International Migration Organization.
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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
