Foreign policy
in today's age of globalisation is increasingly
important to any country in establishing stature
abroad and in attracting foreign investments.
Could you describe to our readers to the nature,
priorities and objectives of Kazakhstan's
foreign policy, and how successful have you
been so far in reaching these goals?
I believe that foreign policy in itself
plays a very important role for Kazakhstan
as well as in Kazakhstan, because the geopolitical
situation of Kazakhstan is quite complicated.
We have a very complicated surrounding.
We are neighbouring with China and Russia
as well as Central Asian countries. Therefore,
we have to be quite flexible and at the
same time persistent in constructing predictable
cooperation with all relevant countries.
So, the top priority for us to have good
neighbourhood with the above mentioned countries,
and we have succeeded over the last 10 years
to build a very good political environment.
Kazakhstan has a very big territory and
a very dispersed population, which means
that we need additional markets in order
to arrange entrepreneurship and production
in the country. This is the reason why Kazakhstan
is very active in establishing integration
and cooperation with neighbouring countries.
So, at the same time Kazakhstan is very
famous in the world in the first place for
its huge oil and gas deposits, but also
by its initiatives in the field of security
and peace. As early as 1992, the president
has elaborated its initiative of convening
confidence-building measures of security
and interaction in Kazakhstan. And therefore,
on the 2nd of June, the countries that supported
this initiative, including Russia and China,
Pakistan and India, Turkey and Iran, Central
Asian countries as well as Egypt will come
here to Almata to take part in this summit,
to talk about security measures in this
part of the world. This problem has become
very active as an outcome of the well-known
and very unfortunate developments in the
United States and in Afghanistan.
We think that the foreign policy is very
important, and as I already said, and the
nature of the foreign policy of Kazakhstan
is to have a predictable environment in
order to pursue economic reforms within
the country. And in this respect, Kazakhstan
is considered to be one of the leading countries,
not only within the CIS, but also in the
post-socialist era. For example, in terms
of foreign direct capital, Kazakhstan is
leading in the CIS, and is on the 2nd or
3rd place in the post-socialist countries,
after Slovenia and Hungary. As far as the
structural reforms of the economy is concerned,
Kazakhstan is also considered to be a developed
country, and the United States as well as
the European Union have established a special
status for Kazakhstan as a market economy.
It means that all the major financial institutions
in the world are giving very high records
for the banking system as well as for the
financial credibility of Kazakhstan.
And being the former prime minister of this
country, I would also like to say that now
there is in the country as well as the country
itself has huge amounts of deposits. For
the first time in our history, we succeeded
to accumulate more than $2,5bn. as hard
currency deposits in the national bank.
Also, due to the economic and financial
reforms, the private commercial banks also
succeeded to allocate more than $1bn. Also,
we used to be the first country in the CIS
to pursue the pension reforms. And the pension
funds in Kazakhstan have managed to accumulate
more than $1bn. We have created a special
class of what we call 'a national bourgeois',
who have money, and who would like to invest
their money in a number of fields in Kazakhstan,
not only here but also abroad. But, one
of the major interest for them are the deposits
and the major offshore oil fields of the
Caspian Sea.
Kazakhstan's long-term goal is to secure
multiple oil export routes. Could you indicate
to our readers the latest developments and
the stance of your country on issues such
as the division of the Caspian Sea and the
establishment of these oil routes?
As far as Kazakhstan in concerned, we have
political superstitions and no political
prejudice. For us, as more pipelines are
possible has to be good for Kazakhstan in
the future, because we have huge offshore
oil reserves in the Caspian Sea, and the
geography itself is very favourable for
Kazakhstan. If there were a middle line,
which will determine the geopolitical stature
of the Caspian Sea, 29% of the entire Caspian
Sea will belong to Kazakhstan. For example,
for Russia it will only be 19%, for Iran
for example, it will be less than 10%. This
is the reason why we are insisting on the
determination of the juridical stature of
the Caspian Sea by outlining the middle
line, and we are working on the bilateral
level with Russia in order to determine
this middle line, and in order to establish
the possession of the natural and mineral
resources on the seabed in the northern
part of the Sea. And god bless, in the middle
of May, an appropriate agreement will be
signed in Moscow between Russia and Kazakhstan.
Kazakhstan is also a continental country.
We do not have direct access to the open
seas, and that is the reason why the problem
of pipelines is become more acute to us.
So, until now, there has been a single project,
CPC, which has been operating for several
months, and we believe that this project
has a strategic importance for Kazakhstan,
since we gained access to the Black Sea,
to the open Sea. And, we supplied more than
1mln. tonnes of crude oil through this pipeline,
but in the next 2-3 years, we think we will
be able to supply 12 and maybe even 15mln.
tonnes through this pipeline. This will
give us an opportunity to enlarge the production
of crude oil. So far, in Kazakhstan, we
produce 40mln. tonnes, or maybe a little
bit more, of crude oil.
If there will be additional pipelines, obviously
Kazakhstan will be able to double this production,
which is the reason why we are very much interested
in examining additional possibilities for
the construction of pipelines, or participating
in the proposed projects. In this respect,
Baku-Tblisi-Ceyhan, so through the territory
of Turkey, is a matter of interest for us.
But, at the same time, I believe that the
feasibility studies should be completed, because
even a few American companies are doubtful
about the eventual feasibility of this project.
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We know that the
Turkey's government has provided its guarantees
as far as the feasibility studies are concerned,
but at the same time we know that the projects
usually come out more expensive than the previous
numbers and figures indicate. We think that
as soon as the entire picture of this project
will become clear, Kazakhstan will join. In
the meantime, we are also interested in having
concrete regarding our participation. How
many shares we are supposed to have in this
project? Also, what will be the eventual costs
of this project, because the tariffs of shipping
crude oil will depend on the costs of this
project? So, there are a few concrete issues
that must be solved in the near future.
In today's world, regional integration
is increasingly popular for example in Europe,
in America, in Latin America, Africa and
so on. It is a global trend, but also within
the Asian region. What are your direct expectations
concerning this economic and political integration,
and do you see it continue into the future?
Yes, we believe so, and Kazakhstan is very
much committed to regional integration.
In this part of the world, Kazakhstan is
actively involved in the Eurasian society,
and the Eurasian economic community. There
are such countries as Russia, Belarus, Uzbekistan,
Kyrghyzstan, and Tajikistan that are members
of the community. But we believe that the
centre of this community are Russia and
Kazakhstan, since we have the same level
of the structural economic reforms, we have
similar economic and banking financial systems,
we have a common border of more than 6500km.
So, we think that on the bilateral basis,
but at the same in the multilateral organisation,
we will be successful in enhancing the regional
cooperation.
Also, in Central Asia there is the Central
Asian Organisation of Cooperation, but due
to some objectives and difficulties of economic
cooperation, this organisation will concentrate
its efforts on political cooperation. I
am saying difficulties of economic cooperation,
because the level of structural reforms
as well as the entire economic mentality
of these countries is very much different.
Central Asia in itself is not homogenous
political as well as first of all economically.
But, at the same we believe it is necessary
to enhance the political cooperation in
this part of the world, which is especially
important taking into account the latest
developments in Afghanistan and other parts
of the world.
Also, I would like to note the Shanghai
organisation of countries. A member of this
organisation is China, which has never joined
any blocks or organisations before. So,
in this respect, China has made an exception,
and I just came back from Moscow were I
attended the ministerial meeting of the
Shanghai organisation of cooperation, and
I must say that China is very active, and
China would like to see concrete results
within this cooperation, which includes
such areas of political, economic, security
and joint efforts to combat religious extremism,
narco-business, and so on. It is quite a
comprehensive organisation, and it becomes
quite interesting because on the 7th of
June in St. Petersburg, there will be a
Summit of the Shanghai Organisation of Cooperation,
where the heads of state are expected to
sign a charter of this organisation. The
headquarters of this Organisation of Cooperation
will be set up in St. Petersburg with the
executive secretary, which will be leading
the day-by-day work and activities of this
organisation. Generally speaking, it becomes
very important.
Within these initiatives for economic
integration, but also within the world economy
in general, it becomes increasingly important
for a country to be competitive. Could you
highlight to our readers the specific competitive
advantages that Kazakhstan enjoys at the
moment?
I think that within the world economy,
we are quite competitive. First of all,
we succeeded to pursuing very drastic and
radical economic reforms, and Kazakhstan
has a very good record among the international
financial institutions. We have no debts
within the International Monetary Fund,
because last year we paid back $400mln.,
just before the end of term. And now, we
are in consultations with the International
Monetary Fund regarding further economic
reforms. We also have very close relationships
with the World Bank, the Asian Development
Bank, as well as with the Islamic Development
Bank.
And, Kazakhstan is also very competitive,
because we have very much a sustained economy.
To the big extent, we have been able to
sustain economic growth. For example, in
2000 the economic growth was 9%, last year
the economic growth was 13%, and this year
the economic growth is expected to be more
than 7%. I think that also one of the major
factors of our competitiveness are the major
deposits of our oil and gas, as well as
other mineral resources. And I think that
if these economic reforms will be continued
and if there will be an appropriate concept
for the exploration of hydrocarbons first
of all on the offshore of the Caspian Sea,
Kazakhstan will be a very important member
of the world economy, and obviously Kazakhstan
will be a very inalienable part of the world's
globalisation.
I would also like to add that Kazakhstan
is committed to eventually joining the WTO.
We are very much active in pursuing talks
with the appropriate countries under the
auspice of this organisation, and I believe
that during the period of 2-3 years, Kazakhstan
will become a member of the WTO. It is also
one of the important signs of our credibility
and competitiveness in the world economy.
You have had a long career in which
you gathered a wide political and economic
knowledge. With this in mind, what would
be your final message to our readers, the
Asian and more generally, the world business
community?
My final message would be that Kazakhstan
has, as I already said, succeeded to build
a very good political and diplomatic environment.
Kazakhstan would like to be in good relations
with all the Asian countries, because Kazakhstan
is a Eurasian country not only political,
but also geographically. Our foreign policy
is directed at having stable and predictable
relationships, first of all with Asian countries,
but also with every appropriate and relevant
European country. We believe that the world
community will help and understand us, as
we have been becoming a committed member of
the world community since Kazakhstan as early
as in 1993 rejected nuclear weapons and became
a member/entity of the treaty that bans comprehensive
nuclear testing. So, I think that the foreign
policy of Kazakhstan is peaceful and very
stable. |
V.I.P. INTERVIEWS 