Kazakhstan - The Times Of Central Asia

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“This Disaster Has Shown We Are All United”: An Interview with Zakirzhan Kharisovich, Deputy of Petropavlovsk, about the Kazakh Floods

This spring Kazakhstan struggled to contain flooding that displaced upwards of 120,000 people -- described by president Kassym-Jomart Tokayev as the country’s ‘worst natural disaster in 80 years’. With the flooding now contained, and excess water being repurposed, The Times of Central Asia spoke to Zakirzhan Kharisovich, a deputy of the maslikhat (local representative body) of the city of Petropavlovsk, about his experience of the natural disaster. TCA: What were the main challenges you faced during the first months of the floods? ZK: The last time we experienced floods was back in 2017, when my yard was filled with 30-40 centimetres of water. We knew then that if rainfall exceeded the norm, the subsequent rise in the water level in the Sergeevskoye Reservoir, 170 kilometers away, would again pose a threat. This year, alerted by weather forecasts, to combat the problem I joined residents in building embankments and dams. We were assisted by soldiers from Astana, whom we called the "300 Spartans", as well as staff from the Emergency Situations Department in Karaganda. Despite precautionary measures, this time my yard was flooded with three meters of water. I couldn’t access my home for over three weeks, and during that time everything inside -- furniture, household appliances, etc. -- was submerged. TCA: How was aid organized in the first days after the floods? ZK: Due to the collapse of the city’s water tower, we had no access to drinking water for almost a month. In addition to providing the aforementioned help, Kazakhstan’s volunteer movement worked full-pelt in shipping in truckloads of humanitarian aid, including household products, mattresses, clothes, food, cereal, rice and flour, as well as pumps and water-pumping generators. The range of their assistance was enormous. Our compatriots in nearby cities, such as Kurgan and Tyumen, were worried about us and were quick to assist. We also received support from other places, including Dagestan, Tajikistan, Ingushetia, and from Russia and further afield. TCA: How did the akimat, public services and local communities work together, and what support was provided by the central government in addressing issues? ZK: Under the supervision of the deputy akim, the akimat staff were actively involved in building the dam, as well as coordinating and organizing activities in response to the floods. I packed bags with water-absorbent materials. Regarding the actions of the central government, Roman Sklyar, the first deputy prime minister, immediately arrived on site to speak to residents and help supervise measures to both clear the damage and resolve other issues caused by the floods. Following his visit, prime minister Olzhas Bektenov proposed to allocate funds to replace essentials such as furniture, cooking utensils, refrigerators etc. So, in principle, if four million tenge ($9,100) worth of furniture and appliances has been lost, it will be covered by the government. This does however raise many questions. Whilst we have full confidence in the pledge made by the president to restore our property, doubts surround the lower officials’ full understanding of his intentions. TCA: What was...

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Victory Day Comes in Central Asian Countries Without Much Pomp, but Plenty of Feeling

This year, as in previous years, the attitude toward Victory Day celebrations in Central Asian countries serves as an important political marker. The leaders of Kazakhstan, Kyrgyzstan, Tajikistan and Turkmenistan are scheduled to attend the Victory Day parade in Moscow on May 9. The leaders of Belarus, Cuba, Laos and Guinea-Bissau will also take part in the celebrations. The absences of the presidents of Uzbekistan, Armenia and Azerbaijan are particularly noticeable in that list. It's noteworthy that the Russian press is commenting on the different stances taken by the Central Asian countries in an extremely negative way -- deliberately agitating discord between Russia and the region. It's even been stated that Victory Day has been "canceled" in the region. Such are the broadcasts taking place against a backdrop of analysts' opinions: that in the coming decades, Central Asian countries won't be able to break the ties that bind them to their former Soviet master, as the economic dependence on Russia is only growing. This is especially true for Kazakhstan, as the lion's share of Kazakhstan's oil goes through Russian pipelines to Europe. In addition, a project increasing the transshipment of Russian hydrocarbons to China through Kazakhstan is in the works. However, contrary to the opinion of Russian tabloids, the Central Asian countries remain reverent and respectful of the cultural institution that is Victory Day. Most residents of the republics are proud of their fathers and grandfathers who fought on the fronts of World War II. In particular, for several years in a row, Kazakhstan has maintained a leading role in terms of doling out state budget payments to veterans of World War II. According to statistics, the size of a lump-sum social payment commemorating Victory Day in Kazakhstan, where 148 veterans live, averages $3,800. In Tajikistan there are 24 surviving veterans of World War II, and their payments amounted to $2,200-$2,300. Veterans in Uzbekistan received about $1,500, and in Belarus, Azerbaijan and Kyrgyzstan, about $1,100 apiece. Russia's 12,500 surviving veterans in Russia will receive the least -- the equivalent of only $107. To be sure, Kazakhstan has not held military parades in honor of the holiday for a year. That move is explained by the need to save money. This spring, unprecedented floods -- which affected almost half of the country -- have pushed President Kassym-Jomart Tokayev's administration to tend towards being thrifty and instead fund humanitarian aid and reconstruction. According to the Ministry of Defense of Kazakhstan, the parade requires spending about 4 billion tenge ($9 million) -- such a huge sum of money can be spent more impactfully on providing housing for the victims. Along with large-scale, WWII-related festive events in Kazakhstan, other important projects, such as international forums, have been canceled. Nevertheless, in his speech, President Tokayev not only congratulated veterans, but also emphasized the need to prepare for the 80th anniversary of the May 1945 victory, which is scheduled to be widely celebrated next year. In Uzbekistan, May 9 is considered a Day of Remembrance, but...

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Kazakhstan, Kyrgyzstan, and Uzbekistan Favor EEU Economic Integration

On May 8, Russian President Vladimir Putin, President of Belarus Alexander Lukashenko, President of Kazakhstan Kassym-Jomart Tokayev, President of Kyrgyzstan Sadyr Japarov, and Prime Minister of Armenia Nikol Pashinyan convened in Moscow for a meeting of the Supreme Eurasian Economic Council - the governing body of the Eurasian Economic Union (EEU). The event, which marked the tenth anniversary of the establishment of the Russian-led economic integration bloc, was also attended by heads of the EEU observer states, President of Cuba Miguel Diaz-Canel Bermudez and President of Uzbekistan Shavkat Mirziyoyev. In his address, Kazakhstan President Tokayev remarked that in the relatively short period since the Treaty on the Eurasian Economic Union was signed in Astana ten years ago, cooperation between the parties has contributed greatly to the development of Kazakhstan’s economy, and stated: “The correctness of the chosen vector of development of our association has been confirmed by the macroeconomic results of the past decade. Thus, Kazakhstan’s trade turnover with the EEU member countries has increased 1.7-fold and reached $28.5 billion.” Referencing the positive potential for EEU cooperation with rapidly developing countries in Asia, Africa, and the Middle East, he urged EEU member states to join the Ashgabat Agreement on the creation of an International Transport Corridor to engage with markets in the Persian Gulf. The Kazakh president also emphasized the need for improvements to trade links between Europe and Asia, North and South, and warned that unless renewed, the existing infrastructure in the Eurasian region will continue to deteriorate. Citing the modernization and expansion of transport and logistics infrastructure as a key priority, he stated, “In Kazakhstan, we plan to repair 11,000 and build over 5,000 kilometers of new railways by 2030. As part of the Belt and Road initiative, a Kazakh terminal, built in the Chinese city of Xi’an, accounts for up to 40% of all container traffic on the China-Europe route. There are also plans to launch 5 cross-border transport and logistics hubs on Kazakhstan’s borders with Russia, China, Uzbekistan, and Kyrgyzstan, and on the Caspian Sea.” Kyrgyz President Japarov announced that further development of Eurasian economic integration, including the creation of a single market for goods and services without barriers, a common energy market, and freedom of movement of labor resources, remains a priority for Kyrgyzstan. Regarding benefits afforded by Kyrgyzstan’s membership of the EEU, Japarov said that the country’s trade with EEU member states has grown by 76%, from $2.5 billion to $4.4 billion, its exports to EEU countries have tripled from $410 million to $1.23 billion, and its imports increased by more than 50%, from $2 billion to $3 billion. Apart from gold, 80% of Kyrgyzstan’s exports go to the EEU countries. The Kyrgyz president also emphasized the importance of linking the EEU and the Chinese Belt and Road initiative. Despite the current observer status of his country and the EEU, Uzbek President Mirziyoyev reported that over the past three years, trade between Uzbekistan and the EEU has grown by 60 percent. Looking ahead, he announced, “Uzbekistan is interested in expanding practical partnership and...

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Kazakhstan Set to Reimburse Businesses for Equipment Costs

The Ministry of Industry and Construction has announced that from mid-May, the government of Kazakhstan will reimburse small and medium enterprises (SMEs) for costs incurred in the purchase of industrial and technological equipment. The initiative is designed to help entrepreneurs modernize their technological equipment, increase productivity, and expand the range of their products. Arstanbek Sagiev, head of the business stimulation directorate at Kazakhstan’s Center for Industry and Export, QazIndustry JSC, commented that because the purchase of technological equipment accounts for the lion’s share of expenditure of any enterprise, the business community had long requested state support. Outlining the initiative, he reported, “From May 12, 2024, enterprises that manufacture products on the list of priority goods can apply for part reimbursement of costs associated with purchasing equipment. QazIndustry will reimburse up to 40 percent of funds spent on the purchase of technological equipment, but not more than 60 million tenge.” At least 30 percent of equipment currently used by Kazakh manufacturers is past its best and hence, has a negative impact on both productivity and the competitiveness of domestic producers. In the absence of funds to develop production, coupled with financial burdens imposed by costly loans, many small and medium businesses are forced to postpone updating and replacing essential equipment. According to QazIndustry the state’s new reimbursement initiative will prove one of the most effective means of stimulating enterprises to modernize their equipment and therefore, their production.

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Why Kazakhstan’s Deepening Ties With Afghanistan Are Significant

At the end of April a Kazakh delegation made an official visit to Kabul, where a meeting of the Kazakh-Afghan Business Forum and an exhibition of Kazakh products were held. This was the third bilateral event aimed at expanding trade and economic ties between Kazakhstan and Afghanistan. The visit to Kabul indicates Astana’s intention to enhance Kazakhstan’s relations with the new Afghan authorities, and not only through trade. This is evidenced by a number of details that differed from previous official contact. First, an unannounced trilateral government meeting took place between Afghanistan, Kazakhstan and Turkmenistan in Kabul. The result was the announcement that a new logistics route to Afghanistan through Turkmenistan and Kazakhstan would be developed. There is nothing earthshaking about this – Turkmenistan is set to become a transportation hub for international corridors passing through Kazakhstan, primarily the North-South and the Middle corridors, as well as the Lapis Lazuli Corridor (Turkey-Azerbaijan-Turkmenistan-Afghanistan). What is significant is that the sides are striving to create favorable conditions for logistics, especially more competitive transport tariffs so trains can pass through faster. This is particularly important given congestion in Uzbekistan, where bottlenecks occur. The announcement in Kabul also means a direct route to economically attractive western Afghanistan and further south. What else made the Kabul visit notable was the meeting between Kazakh deputy prime minister Serik Zhumangarin, who oversees trade, and Abdul Kabir, the Taliban’s deputy prime minister for political affairs. Given the reputation of the Taliban, it is not in the interests of Astana to simply stage a conversation for the cameras. Unfortunately, details about the Zhumangarin-Kabir meeting are few. According to the available information, the deputy prime ministers discussed security issues in Afghanistan, apparently in the context of how to grow the Afghan economy. Following the meeting, Kabir stated that Afghanistan does not want to be a threat to the region, and intends to improve relations with its neighbors through the progressive development of trade and economic relations. The Zhumangarin-Kabir meeting is said to have taken place on the initiative of the Afghan side. Considering Kabir’s closeness to the emir of the Taliban, it is likely that the initiative came from him. Other notable outcomes of the visit of the Kazakh delegation to Kabul included: discussion of joint projects for geological exploration, mining and processing of solid minerals in Afghanistan, as well as in the IT sector; discussion of the possibilities for supplying Kazakh-made cars and subsequent localization of service centers in Afghanistan; a rise in the quota for Afghan students at Kazakh universities from 30 to 60, as well as a 10-day trip to children’s camps in Kazakhstan for 30 Afghan children in the summer of 2024; and discussion of the possibility of establishing direct flights between the two countries. Aidar Borangaziev is a Kazakhstani diplomat. He has worked in the diplomatic service in Iran and Afghanistan. He is a founder of the Open World Center for Analysis and Forecasting Foundation (Astana). He is an expert in regional security.

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Central Asia as an Emerging Economic Region

Central Asia, spanning an area from the Caspian Sea in the west to China in the east and from Afghanistan in the south to Russia in the north, is rapidly emerging as a significant economic block. Comprising five post-Soviet states — Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan — this region is distinguished by its rich natural resources and strategic geographic position, as well as its natural beauty and cultural heritage. With a combined population of around 75 million people, Central Asia has emerged as a dynamically developing market that is increasingly attracting global interest. The transformation unfolding in Central Asia holds both promise and significant challenges for its residents and foreign investors alike. This shift is driven by increasing calls for political reform, the dynamism of a youthful population, and an imperative for sustainable development alongside the pressing need to diversify economic bases. Structural changes following independence in 1991 set the stage for robust growth from 2000s onward Following the collapse of the Soviet Union in 1991, Central Asian countries faced the challenge of transitioning from centrally-planned to market-oriented economies. This period was marked by significant economic difficulties across the region including negative GDP growth and hyperinflation, compounded by the complexities of privatization, legal reforms, and both social and political instability. The nations responded with different development strategies aimed at market liberalization, infrastructure improvement, and the utilization of natural resources. By 2000, Central Asia experienced a noticeable economic resurgence, marking a striking contrast to the conditions in 1991. In that year, Uzbekistan's GDP growth was at -0.5%, Kyrgyzstan at -7.9%, and Kazakhstan at -11%. A decade later, these countries reported positive growth rates of 4.2%, 5.3%, and 13.5%, respectively. This remarkable turnaround can be attributed to the "low base effect," where the initially low economic indicators set the stage for significant improvements over time. The total GDP of Central Asian countries has grown seven times since the beginning of the 2000s. In comparison with the global economic growth rate of +2.6% annually, the Central Asian region grew by an average of 6.2% between 2000 and 2023 according to IMF data. All Central Asian states are forecasted to outpace the IMF’s projected growth rate for emerging markets and developing economies 2024 which stands at 4.2%; however, actual growth will depend on reforms and foreign investment. Kazakhstan has set the highest growth goal with a five-year target GDP increase to $450 billion, which would require an achievable but challenging 6% annual growth. As illustrated below, Kazakhstan stands out as the economic powerhouse of Central Asia with a GDP almost 1.5 times that of all the other countries combined. Labor markets: Optimal demographics for growth and innovation According to United Nations data, approximately 75 million people live in Central Asia, representing 1% of the world’s population. Relative to the global median age, all of Central Asia boasts a young population. A youthful population fuels economic growth by replenishing the workforce, driving innovation, and expanding consumer markets. It supports older demographics...