GOVERNMENT Weekly Review


Rizvana Sadykova

GOVERNMENT Weekly ReviewKazakhstan makes all efforts on stabilization of situation in Kyrgyzstan. Kazakh President Nazarbayev with official visit in Seoul.

On Monday Prime Minister Karim Massimov received Vice Chairman of the Kyrgyz interim government Almazbek Atambekov.  According to him, the parties discussed the issues of economic assistance and provision of humanitarian aid to Kyrgyzstan.Earlier, as is known, Chairman of the Kyrgyzstan interim government Roza Otunbayeva asked the President of Kazakhstan for economic aid. The meeting focused on discussion of the issues of economic assistance and provision of humanitarian aid to Kyrgyzstan.

Kazakh PM Massimov noted that Kazakhstan was interested in early stabilization of the situation in the Kyrgyz Republic and it would provide all-round support to the brother nation and expressed hope for preservation of consistence in implementation of the bilateral trade-economic agreements reached earlier and highlighted that Kazakhstan was ready to enhance investment cooperation. In turn, A. Atambayev expressed gratitude to the Kazakhstan President for help. Upon completion of the meeting the parties spoke for further consistent development of the Kazakh-Kyrgyz trade-economic cooperation.

At the same time OSCE Chairman-in-Office, Kazakh Secretary of State – Foreign Minister Kanat Saudabayev met with Chairman of the interim Government of Kyrgyzstan Roza Otunbayeva and other members of the interim Government of Kyrgyzstan. Mrs. Otunbayeva expressed gratitude to Kazakhstan for help in settlement of the situation in the country and thanked President of Kazakhstan N.Nazarbayev and K. Saudabayev as the OSCE Chairman for help and measures taken in order to stabilize the situation in the country.

The Kazakh Government held a regular session on Tuesday. Results of the social and economic development of the country and execution of the national budget in the first quarter of 2010 and tasks for the second quarter of the year were discussed at the session. “The results of the first quarter of 2010 look promising”, Kazakh PM Massimov said at the session of the Government. As the Head of the Government stressed, the country achieved such good results for the first time in last two ears. It was possible due to the policy held by the Head of the State together with the Government, regional Governors, national companies and private sector. The Premier also noted that the works within “Business Road Map-2020”, “Road Map-2010” and other programs must be continued. “We must keep abreast of the situation in order to consolidate the results and continue them through the year”, K. Massimov said.

Deputy Chairman of the National Bank Daniyar Akishev at the Government sitting announced that the Kazakh National Bank increased capitalization of the fund of deposit insurance by KZT 11 bln more. According to him, it was done in order to form stable resources in establishment of the banks funding base. Besides, the exchange policy will be aimed at prevention of fluctuation in exchange rates this year. As he noted that main priority at the moment is search for the best mechanisms on distribution of free resources of the Bank in the real sector of the economy.

PM Massimov urged the governors to organize a broad discussion of the programs on healthcare and education in the regions. He said the Government began to work on those two programs. As he earlier he instructed the ministers to start discussions with decision-makers in the fields of education and healthcare at the regional level.

The main political event of the week is the state visit of Kazakh President Nursultan Nazarbayev to the Republic of Korea. It began on Wednesday with the opening ceremony of the Year of Kazakhstan in Korea with participation of President Lee Myung-bak. “Today our nations and states are connected with trust and partnership relations. Close contacts are supported at the level of parliamentarians and governments, ministries and departments and business circles of the two countries. Trade-economic cooperation develops. We are interested in widening the Korean business involvement in the projects of Kazakh economy diversification as well as in development of processing industries and agriculture”, N. Nazarbayev said. According to him, the visit of President of the Republic of Korea Lee Myung-bak to Kazakhstan last year gave a new impulse to our relationships.

President of Kazakhstan held several bilateral meetings with the heads of large companies in Seoul. The President received Samsung CEO Gee Sung Choi, POSCO Steel Chief Executive Officer Chung Joon-Yang, STX Group Chairman Kang Deok-su, Poongsan Corporation CEO Jin Ryu, Seoul Semiconductor CEO Chung Hoon Lee. The issues of development of cooperation with these companies as well as realization of joint projects were discussed at the meetings. It was noted that more than 300 companies with South Korean capital functioned in Kazakhstan. N. Nazarbayev also met with Prime Minister of Korea Chung Un-chan at a working breakfast in Seoul.

Within a two-day state visit of President Nazarbayev to the Republic of Korea a number of agreements were signed between the governments of Kazakhstan and South Korea. “The trade turnover between our countries will reach level of over USD 2 bln”, President of Kazakhstan said it at a press conference on the results of the negotiations with South Korean President Lee Myung-bak. Currently about 300 joint enterprises with participation of the Korean capital are operating in Kazakhstan. Over last five-six years the total volume of direct investments from South Korea to our economy made up about USD 4 bln. For further cooperation development effective implementation of the Kazakh-Korean Actions Plan for Cooperation has great significance. “Kazakhstan has launched the State Program of Forced Industrial and Innovative Development as well as South Korea. We will launch a large number of enterprises”, the Kazakh President said. According to Nazarbayev, today the business groups of Kazakhstan have entered into an agreement with POSCO South Korean Company on purchase of titanium in Kazakhstan.  Besides, issue on construction of a polysilicon plant for development of solar energy in Kazakhstan was discussed. “We spoke on new technologies being developed by Korea. We would like to work with you. Kazakhstan considers it important to build a venture on production of electric diodes. An agreement on assembly of Korean cars in Kazakhstan was concluded. Cooperation in agriculture is quite promising. All of these demonstrate great interest in establishment of cooperation. Huge work has been set to us”, he said.

Discussion of interaction of Kazakhstan and South Korea in the international arena was an important part of the negotiations. During the talks in Seoul the parties agreed on development of close cooperation of the countries in order to achieve good results from realization of such large projects as construction of Balkhash Thermal Power Plant and joint exploration of Zhambyl deposit. At the same time the heads of state reached an agreement on boosting trade and raising investments, development of close interaction in construction of Kuryk port, exploration of uranium deposits, in the spheres of information technologies, petrochemistry, defense industry, transport infrastructure and agriculture.

The Kazakh President has been awarded an Honorary Doctorate degree of the Korean University today at the meeting with the faculty and students of the University. Speaking to the faculty and students, N. Nazarbayev thanked the leadership of the University for awarding him such an honorary title. He noted that the Korean University and its alumni made great contribution to the development of the country. They promoted Korea’s coming to the forefront of the world policy and economy.