Vol. 4, No. 47, November 7, 2001
Politics 
- President Nazarbayev ties Kazakhstan's future to oil, metals, regional cooperation
- State Department 'satisfied' with Kazakhstan's cooperation in anti-terrorist effort
- Ambassador Saudabayev presents credentials to Governor General of Canada
Economy
- A Caspian Alternative to OPEC
- Parliament approves 2002 Budget
- Kazakhstan collects 18.3 million tons of grain
- Washington to allocate USD 15 mln to support SMEs in Kazakhstan
POLITICS
President Nazarbayev ties Kazakhstan's future to oil, metals, regional cooperation
Addressing the National Academy of Sciences on November 6, President Nursultan Nazarbayev praised the Kazakhstan's economic achievements of the past few years and urged more regional integration to cement those gains, the Associated Press reported.
"I regard with enthusiasm the integration in our region," Mr. Nazarbayev told his audience, highlighting Kazakhstan's involvement in the Eurasian Economic Union (previously the CIS Customs Union) and the Central Asian Economic Community.
Mr. Nazarbayev said the government will continue to work to develop the oil, gas and metals industries as well as agriculture, all of which have been the backbone of Kazakhstan's economy since the Soviet era. He said that GDP growth, which totaled 12.6% in the first 9 months of 2001, was expected to finish the year at 10.2%, up from previous forecasts of 4%. The president credited the GDP growth to increased output in those four aforementioned sectors.
President also noted that the next main task for Kazakhstan is to "focus on its perspectives" and "science must play important role in the development of the country". Kazakhstan's scientists are notable for their research and development in physics, mathematics, biology and chemistry, particularly petroleum chemistry.
State Department 'satisfied' with Kazakhstan's cooperation in anti-terrorist effort
The United States is "satisfied" with Kazakhstan's contribution to the American effort to fight global terrorism, US Deputy Assistant Secretary of State Lynn Pascoe told journalists in Astana on November 5 after meetings with several top level Kazakhstan's officials.
On Monday Mr. Pascoe met separately with Foreign Minister Yerlan Idrissov, Security Council Secretary Altynbek Sarsenbaev and Defense Minister Sat Tokpakbaev. The US official characterized the meetings, which focused on the US anti-terrorist campaign in Afghanistan and around the world, as "noteworthy, useful and important," Interfax reported.
Mr. Pascoe did not go into details of his talks, though he noted that Washington and Astana have been working in close concert lately, with Foreign Minister Idrissov having made two trips to the US in the past month.
Ambassador Saudabayev presents credentials to Governor General of Canada
Kazakhstan's Ambassador to the USA Kanat Saudabayev presented his letters of credence as non-resident Ambassador to Canada to Governor General Adrienne Clarkson in Ottawa on November 7.
During the after the ceremony the Kazakhstan's diplomat conveyed kind wishes of friendship and prosperity to the people of Canada from President Nazarbayev. He stated that since the establishment of diplomatic relations with Canada in 1992 the sound foundation has been laid for the development of bilateral cooperation. Over 30 joint ventures currently work in Kazakhstan, and the trade turnover in 7 month of this year reached 27 million. He stressed, however, that the potential for cooperation by far exceeds the present level and there are considerable prospects for mutually beneficial partnership in mining, refining, telecommunications, agriculture and other spheres. Ambassador Saudabayev believes the future visit of President Nazarbayev to Canada will give a new impetus to the cooperation.
Governor General Clarkson underscored the need to expand and deepen interaction between the two nations that have a lot in common, particularly, vast natural resources, climatic conditions, the size of the land mass with the relatively small population. She hopes this cooperation will further develop in both political and economic spheres, as well as in culture and education.
The same day Ambassador Saudabayev met with Prime Minister Jean Chretien who expressed confidence that Kazakhstan-Canada cooperation have all the prerequisites for developing exponentially.
ECONOMY
A Caspian Alternative to OPEC
"Caspian oil contribution to the world oil market can weaken OPEC's price and political manipulation", says Dr. Brenda Shaffer, research director of Caspian Studies Program at Harvard University in her article in November 7's issue of the Wall Street Journal.
"The U.S. should deal with Azerbaijan and Kazakhstan because, although they are predominantly Muslim states, they maintain complete separation of religion and state. The overwhelming majority of the populations of these states are secular and their foreign policies, especially in Azerbaijan, are staunchly pro-American. While both countries need to make significant progress to strengthen democracy and the rule of law, the human rights situation there is a liberal dream compared with Saudi Arabia and the neighboring Gulf states", she said.
"So, Azerbaijan and Kazakhstan are pro-American states, awash with oil, non-coordinated with OPEC, and begging to have their oil flow westward.
"Caspian oil cannot replace the volumes from Saudi Arabia and the other Persian Gulf states. However, its contribution to the world oil market can weaken OPEC's price and political manipulation. In the event of a temporary reduction of Gulf oil flow, the Caspian contribution could soften the blow to the oil market. Diversification of oil sources and energy forms should remain a constant policy, and quick development of Caspian oil contributes to that goal."
Parliament approves 2002 Budget
The Kazakhstani parliament gave final approval to the 2002 budget on Friday, setting the national deficit at 0.9 percent of GDP, Reuters reported.
The budget, which was passed on its second and final reading by both the Majilis and Senate, is based on revenues totaling KZT 489 B (USD 3.302 B) and expenditures of KZT 516.3 B (USD 3.486 B). The average exchange rate for next year is expected to be KZT 154.6 per dollar. The average projected price for oil, major export commodity of Kazakhstan, used in the calculations is set at 19 dollars per barrel, which, in the view of financial experts, makes the budget prudent and steady.
The vote was 55 to one with one abstention in the Majilis and unanimous in the Senate. The bill will now be sent to President Nursultan Nazarbayev.
Kazakhstan collects 18.3 million tons of grain
Kazakhstan nears the end of a bumper harvesting campaign, having gathered 18.3 million tons of grains in bunker weight from 99.7% of the sown area as of November 6, an Agriculture Ministry official told Reuters on Tuesday.
Kazakhstan's grain harvest, which peaked at over 25 million tons annually in the Soviet era, had dipped to under 10 million tons by 1998 before rebounding to 16 million tons in 1999 and 13 million tons last year. Per hectare grain yields averaged 1.40 tons this year, up from 1.06 tons in 2000, the official said.
The harvest confirms Kazakhstan's role as a major high-quality grain exporter, the significance of which was highlighted recently with the decision of UN World Food Program to use U.S.-provided funds to purchase wheat from Kazakhstan to help alleviate the starvation of people in Afghanistan.
Washington to allocate USD 15 mln to support SMEs in Kazakhstan
The US government is planning to commence a multifaceted program to provide support for small- and medium-sized enterprises (SMEs) in Kazakhstan in conjunction with the United States Agency for International Development (USAID), US Ambassador to Kazakhstan Larry Napper announced at a press conference in Astana. According to Napper, the program is aimed at assisting entrepreneurs in expanding into new markets, increasing the competitiveness of their products, and ensuring a more favorable legislative base to encourage the development of their SMEs. One of the key elements of the USAID program is the development of a regional computer trade network.
According to the US ambassador, the program will run for five years. The U.S. government will allocate annually USD 3 mln, which will total USD 15 mln in the end, Napper announced. In its initial stages the program will be introduced in five cities in the republic, Atyrau, Uralsk, Almaty, Ust-Kamenogorsk, and Pavlodar.
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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
