Kazakhstan Featurees - The Times Of Central Asia

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Kazakhstan: A Rising Global Player in Trade and Diplomacy

Over the past decade, Kazakhstan has become an increasingly important land-bridge between East and West, both in terms of trade and diplomacy. A vast nation the size of Western Europe with powerful neighbors in the form of China and Russia, yet on the doorstep of Europe with access to the Caspian Sea, Kazakhstan’s location has elevated it to the cusp of becoming a global power. Given its geography, it is reasonable to assert that many decisions in Kazakhstan are, out of necessity, the result of a geopolitical tightrope act necessitating a balanced and far-reaching policy outlook. This strategic position has been described by Ariel Cohen, a Nonresident Senior Fellow at the Eurasia Center of the Atlantic Council, as a “visionary multi-vector policy pioneered” by President Tokayev. Indeed, “mutually beneficially cooperation” and “mutually beneficial strategic partnership” have become watchwords of Tokayev’s presidency. Due to projects such as the Belt and Road Initiative and the Middle Corridor, Kazakhstan’s location has made it an indispensable ally to China. Playing a pivotal role in the expansion of transcontinental trade has led the whole of Central Asia to, in the words of Tokayev, “become a global stakeholder.” Trade turnover between Kazakhstan and China continues to expand, reaching $31.5 billion in 2023 (a 30% increase on 2022), and new transit routes are continuously under construction, with the Bakhty-Ayagoz railway line set to lead the opening of a third border crossing with China and increase the throughput capacity between the two nations from 28 million to around 48 million tons. Both cultural and political ties continue to grow, with a 30-day visa-free travel regime coming into force in November 2023. As for the total amount of Chinese investment in Kazakhstan over the past eighteen years, estimates vary from $23.2 to over $36 billion. Even these huge sums, however, are dwarfed in comparison to the Netherlands, which, in the last five years alone, has invested a colossal $33.8 billion in Kazakhstan. Meanwhile, according to Kazakhstan’s Bureau of National Statistics data for January to December 2022, Italy was Kazakhstan’s largest exporter, accounting for 16.4% of exports worth $13.9 billion during this period. The strength of this partnership was evinced by President Tokayev paying an official visit to Italy in January 2024, during which he held talks with Prime Minister Giorgia Meloni and spoke about the two nations’ “dynamically” developing relationship and its “enormous potential”. As a block, the EU is Kazakhstan’s biggest overall trading partner, the destination for 39% of total exports and accounting for 29.4% of its total trade in 2021. Through initiatives such as the C5+1 and the B5+1, meanwhile, the United States has increasingly sought to engage with Central Asia, and with Kazakhstan in particular. With investment totaling $19.4 billion, the U.S. ranks second in terms of foreign investment over the past five years. A driving force behind this engagement has been the huge untapped reserves of Rare Earth Elements (REEs) located in Kazakhstan. According to the Brookings Institute, whilst China is the dominant player in...

Nauryz

Starting Over: Central Asian Countries Celebrate the Arrival of Spring

It’s time for renewal in Central Asia. Spring is arriving and it’s time to tidy up the home. Time for traditional music, cuisine, and brightly colored costumes. An occasion to reflect and renew, give thanks for the past, and build toward the future. Or set aside bad things that happened and start over. One of the world’s oldest holidays happens on the spring equinox, which is March 20 (Central Asia time) this year. Known as Nowruz, Navruz, Nauryz, and other variations, it means “New Day” in Farsi and traces its roots to the ancient Persian religion of Zoroastrianism. This year, it coincides with the Muslim holy fasting month of Ramadan. The holiday is also celebrated in the Caucasus, the Middle East, and other regions. [caption id="attachment_15786" align="aligncenter" width="1200"] A view of the shanyrak, the central part of the upper dome of the yurt is shown to guests as an art object during Nauryz festivities. A shanyrak design, containing blue that represents the sky, is the national emblem of Kazakhstan. Photo: TCA[/caption] Celebrations are already in full swing. This year, Kazakhstan introduced a new format for Nauryz, with events running from March 14-23. In 2009, UNESCO included the day on its list of “intangible cultural heritage of humanity.” In many parts of Central Asia, people decorate houses with branches of fruit trees to ensure a prosperous year. On the night before the spring equinox, people fill vessels with water from springs, milk, and grain. It is believed that such a ritual will bring abundant rains and a successful harvest in the coming year. Holiday concerts feature traditional instruments. There are the karnai and surnai (wind instruments) and dutar (strung) in Tajikistan and Uzbekistan, or the dombra and kobyz (both strung) in Kazakhstan and Kyrgyzstan. [caption id="attachment_15785" align="aligncenter" width="1200"] Baursak, a fried bread, and Nauryz kozhe, a cool, hearty drink that symbolizes good luck, are shown during Nauryz celebrations in Almaty, Kazakhstan in 2023. Ingredients of Nauryz kozhe can include water, meat, salt, milk or yogurt, and grain. Photo: TCA[/caption] A beautifully set table is another Nauryz tradition. The central place on the table in Tajikistan, Uzbekistan, Kyrgyzstan, and Turkmenistan is occupied by sumanak, a dessert. It is made of germinated wheat and cooked in a metal pot for about 12 hours. According to legend, you should make a wish while stirring the sumanak. It is said that if you make a wish from a pure heart, it will definitely come true. In Kazakhstan, a special place on the table is occupied by Nauryz kozhe, a hearty soup of milk, meat, butter, two kinds of millet, rice, and corn, symbolizing the seven principles of life: growth, luck, happiness, wealth, health, wisdom, and heavenly protection. At home, it is poured into seven bowls and placed before seven wise elders, known as aksakals. The number has a special meaning in many aspects of the celebration. Traditionally, everyone should invite seven guests to their home and visit seven houses themselves. Nauryz is also a time...

Optimism Meets Reality at the B5+1 Forum in Almaty

The inaugural B5+1 Forum, a conference dedicated to strengthening business between the five Central Asian republics and the United States, came to a close today in Almaty after a second well received day of panel discussions. The B5+1 Forum was created by the Center for International Private Enterprise (CIPE), which aims to use public-private partnerships to create a better environment for business and trade. The B5+1 platform brings international and local companies together with high-ranking government officials from all six countries, to learn about the difficulties that each side faces, and suggest new ways to attract partners and investment. Following an opening day focused on “Looking within Central Asia”, today’s speakers brought attention to “Central Asia’s place in the world economy”. The morning began with a keynote speech by Eurasian affairs expert S. Frederick Starr, who argued that because the five countries are now members of different trade blocs, the revival of the Central Asian Economic Union could break down their existing barriers to business and trade with the United States. During a morning session on international partnerships, foreign experts brainstormed ways to speed up the Central Asia region’s economic integration with the rest of the world. To an audience of business leaders whose overall mood was optimistic, the EU’s ambassador to Kazakhstan Kestutis Jankauskas and World Bank economist David Knight brought a dose of realism, by explaining that business in Central Asia is not performing as well as in other emerging regions. This, they both said, is because the governments – and business owners – have mostly still not let go of self-defeating ways of approaching markets and investment. The middle session went into more detail about the investment landscape, particularly in terms of IT and fintech. Jennifer Miel, executive director for Kazakhstan for the US Chamber of Commerce, mentioned that all five Central Asian countries have seen healthy increases in foreign direct investment since 2021. This was soon tempered by Anatoly Motkin of the agency StrategEast, who said that to achieve further sustainable growth, the region must unify its legislation and best practices, so that foreign investors can treat it as a single market as much as possible. The Forum’s closing session explored the role of business associations in public-private dialogue. The panel was moderated by Eric Hontz, CIPE’s director for accountable investments, and featured the executive directors of the US Chambers of Commerce in Kyrgyzstan, Tajikistan and Uzbekistan – Aisuluu Sydygalieva, Nilufar Bulbulshoeva and Tatyana Bystrushkina. Discussion centered on best practices and solutions for effective member representation. The B5+1 Forum forms part of CIPE’s program called “Improving the Business Environment in Central Asia” (IBECA). CIPE themselves are affiliated to the US Chamber of Commerce – the catalyst behind the B7 and B20 platforms – and receive funding from the US Department of State. Early indications are that the B5+1 Forum in 2025 will be held in Bishkek, Kyrgyzstan.

Economy

CIPE’s Inaugural B5+1 Forum Opens in Almaty

In recent years the countries of Central Asia have taken more confident steps towards working with the United States and Europe, so that both local and international companies and agencies can capitalize on the region’s potential. Instrumental in this process has been the Center for International Private Enterprise (CIPE), which last year created the diplomatic ‘C5+1’ platform – a group comprising the governments of the five Central Asian republics – Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan and Turkmenistan – plus the United States, whose State Department has been integral to the development of the platform. Following the first C5+1 Summit in New York in September 2023, led by the presidents of all six countries, CIPE has now created a dedicated business platform for these nations: ‘B5+1’. The inaugural B5+1 Forum will be held in Kazakhstan’s business capital of Almaty this week, and will bring together policy makers from Central Asia, America and other countries, as well as high-profile private companies working in the region. At the C5+1 Summit, presidents Biden, Tokayev, Mirziyoyev, Japarov, Rahmon and Berdimuhamedov had committed to the establishment of B5+1 in order to “accelerate regional cooperation and connectivity [and]… advance efforts to create a more favorable business environment for U.S. private sector trade and investment in Central Asia.” The B5+1 event will be divided into two thematic days: “Looking within Central Asia” on Thursday 14 March, where representatives of the US Department of State, Kazakhstan’s Ministry of National Economy, the Caspian Policy Center and others will present their visions for improving Central Asia’s investment climate and economic integration; and “Central Asia’s place in the world economy” on Friday 15 March, where leaders from the US-Kazakhstan Business Council, the American-Uzbekistan Chamber of Commerce, the European Bank for Reconstruction and Development (EBRD) and others will look outwards, to give an international perspective on how the region can grow its trade and investment volumes. At a time of geopolitical upheaval and disruption of existing supply chains, the Almaty forum will also continue the conversation on enhancing regional connectivity via the Trans-Caspian International Transport Route, also known as the Trans-Caspian Corridor. The B5+1 Forum forms part of CIPE’s program called “Improving the Business Environment in Central Asia” (IBECA). CIPE themselves are affiliated to the US Chamber of Commerce – the catalyst behind the B7 and B20 platforms – and receive funding from the US Department of State. The establishment of B5+1 is closely aligned with commitments made during the September C5+1 Presidential Summit and outlined in a document called the New York Declaration to strengthen their economic relations, and improve the business environment for regional economic integration and investments. The upcoming Forum aims to deliver on two key commitments in the declaration. The Times of Central Asia will be in attendance at the B5+1 Forum on 14-15 March, and will be publishing insight and analysis from the event.

“Your Life is Your Freedom” – Women Rally in Almaty

A rally in support of women's rights was held in Almaty on March 7th. The event, which was approved by the city administration, was organized by Bibinur Sheralieva, an activist from the regional council for family and social protection under the Amanat Party. The gathering took place in Mahatma Gandhi Park, a place usually reserved for such events. Sheraliyeva, the organizer of the rally, put forward demands to protect the rights of divorced women, proposing that alimony laws be amended to offer a fixed amount, regardless of the fathers' income. She also advocated the introduction of mandatory marriage contracts to take into account the property interests of women and children during divorce proceedings. In addition to the organizers, a woman took the stage to share her experience of facing domestic violence and told of the tragedy of losing her home due to systematic beatings by her father-in-law. Her story highlighted the problem of impunity for aggressors. The rally also called for the repeal of the amendment on reconciliation of parties under the new law on domestic violence, as well as a legal ban on the practice of tokal (second wife) and polygamy. The rally was not without controversy, however, with one attendee demanding a ban on "feminist and LGBT propaganda," which drew disapproval from the majority of the crowd. Another organizer of the rally, Dilnar Insenova, declared her support for the need to "protect family values," expressing doubts about the impact of European standards on society in Kazakhstan. The rally briefly descended into absurdity when, instead of delivering her planned speech, Insenova began to dance to the song "Chyna" by the Kazakh artist, Irina Kairatovna, provoking laughter from those filming clips against a backdrop of portraits of domestic violence victims, their videos going viral on social media. Most continued to draw attention to important issues, however; raising placards and chanting slogans such as "Your life is your freedom" and "We demand the protection of women's rights," and demonstrating their commitment to positive change in the area of women's rights.

The C5+1 Concept: The Idea Behind This Week’s B5+1 Forum in Almaty

Recognizing that the Central Asia region could benefit more from initiatives in global security, business and trade if its countries strengthened their cooperation in key areas, the Center for International Private Enterprise (CIPE) created the ‘C5+1’ platform last year for just this purpose. The Center’s 5+1 group features the governments of the five Central Asian republics – Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan and Turkmenistan – plus the United States, whose State Department and international chambers of commerce are central to the platform’s work. An inaugural C5+1 Summit was held in September 2023, on the sidelines of the 78th session of the UN General Assembly in New York. At this high-level meeting, the presidents of each of the Central Asian nations joined US president Joe Biden in dialog on enhancing the region’s stability and prosperity through economic, energy, and security partnerships within the C5+1 framework. Building on this start made by C5+1, CIPE is now launching the ‘B5+1’ format, focused on cooperation in the global business context. The inaugural B5+1 Forum will take place this week in Kazakhstan’s business capital of Almaty, and will include presentations and panel discussions with policy makers from the United States, Central Asia and several other countries. On 14 and 15 March leaders from the public sector will discuss Central Asia’s economic integration, international trade and investment alongside dozens of influential private companies. The B5+1 Forum will pick up where the C5+1 Summit left off in exploring opportunities for American companies in Central Asia. This potential lies in key sectors such as critical minerals, renewable energy and manufacturing. The Almaty event will also continue the conversation on enhancing regional connectivity via the Trans-Caspian International Transport Route, also known as the Trans-Caspian Corridor. At a time of geopolitical upheaval and disruption of existing supply chains, international investment in this trade route is being sought through the Partnership for Global Infrastructure and Investment. The B5+1 Forum forms part of CIPE’s program called “Improving the Business Environment in Central Asia” (IBECA). CIPE themselves are affiliated to the US Chamber of Commerce – the catalyst behind the B7 and B20 platforms – and receive funding from the US Department of State. The establishment of B5+1 is closely aligned with commitments made during the C5+1 Summit last September, and outlined in a document called the New York Declaration. The upcoming Forum aims to deliver on two key commitments in the declaration. The Times of Central Asia will be in attendance at the B5+1 Forum on 14-15 March, and will be publishing insight and analysis from the event.