Kazakhstan to mark the 15th anniversary of Constitution Day
The Constitution Day holds great meanings for Kazakhstan. On August 30th, 1995, the new Basic Law was adopted in a referendum, paving the way to the building of a modern democratic state in which more than 120 ethnicities coexist.
The new constitution also allowed for rapid economic reforms but at the same time safeguarded the country's social and political stability, an approcah which was part of H.E President Nursultan Nazarbayev's strategy which focuses on "the economy first, then politics" to make Kazakhstan a example to follow in Central Asia and the rest of the world.
The world was stunned by the Kazakhstan's most dynamic development approach and its advanced economic, social and political developments which took place in just 15 years. As a result, the international community put its trust in Kazakhstan who then, in 2010, held the presidency of the Organization for Security and Co-operation in Europe, the world's largest regional security organization with 56 member states in 3 continents. Kazakhstan also prepares for holding the chairmanship of the Organisation of the Islamic Conference (OIC) in 2011.
This demonstrates the fact that ever since it gained independence from the former Soviet Union in 1991, Kazakhstan's innovative and creative approaches empowered its successful bid to become a powerful state with a successful development experience and to make an economic miracle which now matches the achievements of Asia's most developed nations as well as of most European nations. Today, Kazakhstan enjoys steady economic growth and social and political stability and has become a leader in enforcing reforms that have become an example to follow for Central Asia and the rest of the world.
Over the past years, Kazakhstan proved the correctness of its approach to democracy and economic growth as well as the wisdom of its singular leadership at a time when the economies of other Central Asian countries reel under successive crises.
The results are evident nationwide, and in the people's prosperity and the national economy's ability to maintain steady and sustainable growth, a fact attested by global financial and economic institutions.
Kazakhstan's economic growth reached 10% in the last few years. The country's GDP doubled between 2000-2008 to reach US$182 where services accounted for 51.2%, industry for 42.8% and agriculture for 6%. The economic development approcah succeeded in attracting US$75 billion of foreign direct investments while foreign investments by Kazakh companies' reached US$ 1.5 billion in international markets.
GDP per capita increased manifold and there are plans to push it up to more than US$6000. The average monthly income increased five-fold and the average pensions three-fold and the percentage of the population with an income below the minimum has fallen four-fold from 50 to 12% while the average annual income went up to US$ 11500 (in 2008) overtaking the international average of US$10400. In appreciation of these achievements, the United Nations, in its Human Development Report 2009 gave Kazakhstan a high ranking on the human development index (HDI) for its high human development which demonstrates the growing prosperity nationwide.
Kazakhstan embraced an open-doors approach pushing trade exchange to US$73 billion in 2008, up from US$45 billion in 2006 (more than 62% in just two years). The country's exports went up to USS$ 44 billion in 2008, up from US$ 30 billion in 2006, while imports grew from US$ 16 billion to US$ 29 over the same period, recording a surplus of US$ 15 billion which grew six-fold since 1994.
"When companies were closing everywhere, we set up 170 new businesses. That allowed us to create 400,000 new jobs. The unemployment rate in Kazakhstan has not gone up, but rather it has fallen from 7.5 percent down to six percent, and it's all been done using our own reserves", according to H.E President Nursultan Nazarbayev.
"A hard period in the country's modern history has already ended. Although the consequences of the global financial crisis are still there, the Kazakh economy did not suffer a huge impact, thanks to the counteractions and precautions we already took. Before the crisis, we could achieve high growth rates that matched those achieved by India and China," President Nazarbayev said about the Kazakh economic situation during the global crisis stressing that the country's economy enjoys stability and is expected to achieve a prominent position among the economies of the world's advanced countries.
Backed by strategies, economic and social assets and huge achievements over the past years, "the bold action" taken by the Kazakh government to counter the global financial crisis has helped overcome the consequences. Experts agree that the current crisis could even awaken Kazakhstan and bolster its economy and even make development in the country which is to chair the Organization for Security and Co-operation in Europe sustainable and stable. Others project steady economic growth in Kazakhstan over the coming years.
"Business Road Map-2020" which President Nazarbayev described as a bold action, as well as to the solid strategies and economic foundations and assets bolstered by the success achieved over the past years.
Stimulus plans and actions to catalyze the economy succeeded in preventing recession in Kazakhstan and even helped make a growth rate of 1.3%. In the first months of 2008, Kazakhstan's economy grew by over 8%. The government countered the crisis and helped the country achieve positive growth rates thereby the international holdings and the reserves of the national fund now are in excess of US$ 50 billion, which means the country has grown more than 25-fold over the past 10 years during which spending on development and investment went on non-stop. The nation's unemployment rate has fallen to 6.3 percent (less than it was before the global financial crisis), thanks to the government's effective strategy which managed to create more than 400000 new jobs. The successful implementations of the Road Map Program in 2009, some 862 housing and public facilities projects have been completed.
The current year 2010 is seen as a transition year as Kazakhstan is set to benefit from the Caspian Oil rush and the predicted production increase in 2013. Kazakhstan's currency reserves reached US$ 52.7 billion in February 2010 fueling expectations that the country's economy is only a decade away from its golden era driven by resources, huge investments in infrastructure and the simplification of various regulations.
Kazakhstan has become important and attractive for investors and businessmen who are increasingly interested in knowing it better and having stronger presence in it. Kazakhstan has huge natural resources. The country's oil production stands at 1.5 million bpd and is set to grow to 3 million bpd later this year. Reserves of 99 earth elements (out of the 105 elements on the Mendeleiev periodic table) were discovered in Kazakhstan and 60 elements already being mined. Last year, Kazakhstan became the world's largest miner of uranium with annual capacity standing at 14000 tons.
The Business Road Map-2020 is the country's way to the top as it relies on preparing the economy for the post-crisis circumstances and sustainable growth through industrialization, modern infrastructure and efficient and cost-effective investments to improve the competitiveness of the human capital, provide quality services (social security, public utilities, housing etc.), boost interracial harmony, strengthen national security and continue the expansion of international relations.
With valuable assets such as grand development plans, underground natural resources, foreign investments in mega projects, growing population, zero percent illiteracy and political stability, Kazakhstan is qualified to join the club of advanced nations of Caspian Sea region and the world.
Based on its active, realistic and balanced foreign policy and rapid economic achievements, Kazakhstan was able to widen its economic openness through striking solid strategic partnerships with most countries, including the UAE which was among the first countries to establish diplomatic relations with us in 1992 and which sets an example in relations among nations and peoples. The Kazakh-UAE political, economic, cultural and tourism relations are further boosted by the brotherly relations between the leaderships and the peoples of the two countries and the so many accords signed over the years.
Kazakhstan and the UAE share identical positions on many international issues and both commit themselves to constructive dialogue and understanding among nations and peoples, resolving international issues through dialogue and peaceful means as well as maintaining consultations and contacts. All this enabled the two countries to promote cooperation to integration in various political, economic and trade areas and to launch promising joint investments utilizing their financial and human capabilities to realize their aspirations for progress.
The recent years, the Kazakh-UAE relations saw significant activity as Kazakhstan is eager for wider relations with the UAE which has set an example so pronounced that countries in the region and around world are seeking to learn from its development and experience.
President Nursultan Nazarbayev's Repetitive visits to the UAE, the last being in March 2009, and H.H President Sheikh Khalifa Bin Zayed Al-Nahyan, the most recent being in July 2008, and the exchange of tens of visits by senior officials from both countries have contributed to the promotion of bilateral relations and the mutual trust of both leaderships.
During an official visit to the UAE between 16-17 march 2009, H.H Sheikh Kalifa conferred the Order of Zayed on H.E President Nazarbayev. The Order is the UAE's highest honour awarded to the Heads of States. President Nazarbayev in return conferred the state award of Kazakhstan Altyn Kyran (Golden Eagle) Order, Kazakhstan's highest honor.
Kazakhstan and the UAE have signed a large number of agreements and memorandums of understanding on double-taxation, trade and economic cooperation, combating organized crime and reciprocal visa exemption for holders of diplomatic passports etc.
Official relations have provided the best climate for initiatives by the private sector in both countries. This was realized by a number of UAE real estate, infrastructure, and tourism projects which are related to the Kazakhstan's investments in oil and mineral resources and agriculture. Both countries have solid ground for cooperation.
In March 2010, the Financial Markets Authority in the Republic of Kazakhstan granted the Al Hilal Bank an official license to open the Republic's first Islamic bank under the name "Al-Hilal Islamic Bank".
The new bank is fully owned by Al Hilal Bank with a capital of $36m. The main headquarters will be established in the city of Almaty with a second branch in Astana.
Aldar Properties, the leading property development company in Abu Dhabi, and Al Maabar launch Abu Dhabi Plaza in Astana, the capital city of Kazakhstan, in the Special Economic Zone. This international move by the property development firms will feature an integrated community development created for the rapidly growing capital city. The US$ 2 billion Abu Dhabi Plaza is a major mixed-use development, located near presidential palace in the centre of Astana, comprising of a retail podium, integrated plaza, residential apartments, international grade office accommodation, and a hotel quarter. This integrated community will be a 24 hour destination, offering complete leisure and work solutions for the residents of Abu Dhabi Plaza.
In 2009, Etihad Airways, the national airline of the United Arab Emirates, launched non-stop flights on to Astana in Kazakhstan from its Abu Dhabi home base. Astana became the second destination in Kazakhstan served by Etihad and the Abu Dhabi-based airline's 52nd across its expanding global flight network.
This follows the launch by Etihad in December 2008 of flights to Almaty, Kazakhstan's largest city.
Kazakhstan and the UAE established a joint committee in 2004 as vehicle for the development of bilateral relations. At the fourth regular meeting of the said committee in May 2010, the two sides signed the final protocol on political, economic, trade cultural and humanitarian cooperation between the two countries.
Culture is another significant sphere for cooperation between the two countries.
In May 2010 in Abu Dhabi, the "Kazakh Cultural Days" Festival was inaugurated at Emirates Palace. The audience were treated to unique performances by the Kazakh State Folklore and Ethnographic Folk Orchestra, the Kazakh State Academic Orchestra, Shat Dombra Orchestra. In may, 2010, the UAE Culural Week festival was inaugurated in Astana.
The UAE, represented by H.H Sheikh Saif Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Interior, took part in kazakhstan's celebrations of the 12th Anniversary of Astana, the new Capital of Kazakhstan, which coincided with celebrations of President Nursultan Nazarbayev's 70th birthday.
According to data released by the UAE Ministry of Foreign Trade, non-oil trade exchange between Kazakhstan and the UAE saw significant growth and stood at US$ 686 million in 2007. Due to the global financial crisis, the figure went down to US$ 381 million in 2008, then to US$197 million in 2009 ranking Kazakhstan as UAE's 74th biggest trade partner.
UAE's non-oil exports to Kazakhstan reached US$4 million in 2009, while UAE's re-exports reached US$ 164 million of vehicles, tractors, motorbikes, machinery, electric appliances, while Kazakh exports to the UAE ( natural and cultured pearl, precious stones, metals, foods, steel etc) stood at US$ 28 million.
Kazakhstan and the UAE share huge potentials which constitute strong ground for even stronger relations, wider cooperation and mutual interests. H.E President Nursultan Nazarbayev stressed that Kazakshatan could draw lessons from the UAE experience in attracting foreign investments and developing economic zones.
H.E Ambassador of Kazakhstan to the UAE Askar Musinov noted that his country seeks to tap the UAE experience in addressing and handling the global financial crisis. He also noted that the Kazakhstan, which is rich in natural and agirucltural resources as it is the world's 9th largest country in terms of area, is a welcoming place for UAE investments in agricultural and food production.
WAM/MN