Vol. 4, No. 2, October 3, 2002
SPECIAL ISSUE
FOR IMMEDIATE RELEASE
KAZAKHSTAN AND THE UNITED STATES
LAUNCH NEW MAJOR PARTNERSHIP INITIATIVE
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Houston Initiative envisages funding for private U.S.-Kazakhstan partnerships
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Idea first agreed upon by Presidents Nazarbayev and Bush in December 2001
The Governments of Kazakhstan and the United States of America announced on Thursday in Almaty the launch of the new multimillion public-private partnership, the Houston Initiative, to develop ties between the private sectors of the two countries, to increase competitiveness for Kazakhstan's business sector and to develop profitable business partnerships beyond traditionally strong oil and gas sector. Secretary of State and Minister of Foreign Affairs Kassymzhomart Tokayev and U.S. Ambassador to Kazakhstan Larry Napper announced the launch at a news conference in Almaty, the largest city of Kazakhstan and its commercial capital. "The Houston Initiative is a partnership between Kazakhstan and the United States to draw closer private businesses of the two nations, to increase competitiveness of our country's business sector and to jointly produce and sell products on the world markets", Mr. Tokayev stated, calling today's launch "a historic event".The joint initiative is "an inherent part of the strategic partnership between Kazakhstan and the U.S.", Mr. Tokayev noted. Presidents Nursultan Nazarbayev and George W. Bush agreed upon the idea of such a program during their December 2001 meeting at the White House. The name Houston Initiative derives from the fact that the idea was first discussed by President Nazarbayev and former President George H.W. Bush in Houston earlier in December of last year."The program's launch has become possible due to Kazakhstan's leadership in the post-Soviet domain in developing stable banking and financial sector, advanced tax and pension system, utilities reform and the introduction of international accounting practices", Mr. Tokayev declared. It is aimed at "establishing a strong entrepreneurial class in Kazakhstan as a guarantor of sustainable, stable and democratic development of our country". According to Mr. Tokayev, while Kazakhstan's energy sector draws primary attention of the international business community with prospects for investment in the next decade approaching "gigantic sum of $150-200 billion", the new initiative is being launched "in order to avoid creating misbalance in national economy [of Kazakhstan] and to solve large-scale task of ensuring harmonized development of other industries, connected to this strategic sector".The partnership envisages "massive support for small and medium-sized businesses, including through credits, direct investment, credit and risk insurance, system of cooperation between large and small enterprises and technical assistance", the Kazakhstan's official said. Special attention will be given to small businesses' participation in housing construction, including through the establishment of building societies and mortgage banks, he added. The program also calls for the establishment of regional enterprise support centers in Kazakhstan, as well as providing technical assistance in upgrading Kazakhstan's products to ISO quality standards.The two governments will jointly finance the partnership. Ambassador Napper announced that the U.S. will allocate around $10 million to fund this initiative in the current fiscal year.The relations between Kazakhstan and the United States, already strong through the decade-long cooperation in non-proliferation, energy development and promoting democratic changes, have strengthened and broadened significantly over the past year since September 11th, 2001. Kazakhstan condemned the terrorist attacks on that day and declared its unconditional support for the war against terrorists. The republic has opened up its airspace and provided its major international airport for U.S. and coalition aircraft to use in the campaign in Afghanistan, and engaged in important security cooperation with the United States, including the intelligence sharing. * * *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
