..Press Release................................ UNESCAP News Services

Date 18 May 2007
Press Release No. L/22/2007/CS63/15

United Nations Economic and Social Commission for Asia and the Pacific
United Nations Special Programme for the Economies of Central Asia
Government of Kazakhstan

Asia-Pacific Business Forum 2007
“At the Crossroads between Asia and Europe: Harnessing the Possibilities
of Central Asia"

18-19 May 2007
Almaty, Kazakhstan

Opening Speech
By
Mr. G.I. Orazbakov, Minister of Industry and Trade,
at the Asian and Pacific Business Forum
in the framework of the 63rd Session
of the UN Economic and Social Commission
for Asia and the Pacific (UNESCAP)
Almaty, May 18, 2007

“At the Crossroad between Asia and Europe:
Using Central Asian Opportunities”

Distinguished UNESCAP Executive Secretary, Mr. Kim Hak-Su,
Esteemed UNCTAD Secretary-General, Dr. Supachai Panichpakti, 
Ladies and Gentlemen,

On behalf of the Government of the Republic of Kazakhstan I would like to welcome all the participants of this event that gathered top-rank representatives of Kazakhstani and international business communities, as well as the leaders of international and regional development institutions.

We regard it as a great honor that the member states accepted our proposal to host the annual session of the UNESCAP and the Business Forum in the anniversary year of the Commission in Almaty. We also believe that this choice testifies willingness of the member-states and the ESCAP Secretariat to glance at Central Asia at a new angle.  This region, thanks to its immense natural resources, significant transit-transport potential and well-educated population, already plays a noticeable role in contemporary geopolitical relations.

Dear Participants of the Forum,

Globalization processes involving practically all spheres of human life are becoming the leading trend in the modern world development. Accelerated scientific and technological progress, economic interdependence, free movement of capital, information and services cause changes in people’s world outlooks, traditional understanding of politics and economics, and raise new issues in the area of international, regional and national security.

Due to contradictory processes of globalization, openness of borders for international communication and growing interdependence, countries of Central Asia face a number of new challenges. International terrorism and religious extremism, environmental problems, illegal traffic of drugs and small weapons present a transboundary threat. Transnational organized crime, illegal migration and trafficking of people are becoming matters of serious concern in recent years.

We can cope with transboundary threats only through joint efforts, and no country or region can remain outside or indifferent, irrespective of their levels of economic development. In connection with the above, the role of such international institutions for cooperation and security, as the CIS, OTCS (Organization of the Treaty for Collective Security), EurAsEC, SCO (Shanghai Organization for Cooperation) and CICMA (Conference on Interaction and Confidence-building Measures in Asia) is acquiring crucial importance for retaining security and stability in Central Asia.

Central Asia, being located in the very heart of the Eurasian Continent, at the contact point of different civilizations and cultures, must actively integrate in the contemporary system of global political and economic interrelationships. Thanks to development of technologies, communications, transport and infrastructure, Central Asian states can enjoy good perspectives for expansion of economic cooperation and become a linking bridge between West and East. Kazakhstan is interested in construction of transcontinental transport routes, large trade and economic nodes, logistics centers in Central Asia that would facilitate development of the region into a self-sufficient link of trade and economic relations between global markets of higher capacity.

Currently Central Asian economies are on the verge of a new development stage. Understanding of the necessity of joint efforts and coordinate actions to promote common interests of their countries in the global arena should form a foundation both for intra-regional cooperation and interaction and closer contacts with the outer environment. In view of the above, we highly value the role of the Economic and Social Commission for Asia and the Pacific (UNESCAP) that regards the aspects of regional and sub-regional cooperation for resolving the above and other issues as a cornerstone of its activities.

In the foreign policy of the Republic of Kazakhstan great importance is assigned to development of relationships with Central Asian states and establishment of the region as an independent and full-right subject of international relations. This is preconditioned by historically close political, economic, ethnic-confessional and cultural ties between peoples of the region. Now these ties depend also on availability of such common goals, as integration into the global community and enhancement of the countries’ national competitiveness. We are deeply convinced that in the current international situation and under conditions of acute market competition, Central Asia should set such most important priorities, as development of regional cooperation, political modernization and continuation of market reforms.

Esteemed Ladies and Gentlemen,

The Republic of Kazakhstan is a country with a unique history, ancient culture, identity and the multinational population. Kazakhstan is located in the very middle of Eurasia on the crossroad between major economies of the world. Thanks to its generally recognized economic achievements of independence years, Kazakhstan has all it needs to ascend to a new level of economic development.

In 2006 the GDP of Kazakhstan increased by 10.6% as compared to 2005 and totaled US $77.2 billion, and the per capita GDP exceeded US $5,000. The GDP planned for 2007 should amount to US $100 billion.

The rate of the GDP growth in Kazakhstan is about 10%, and this trend will continue in the future as well. In 2006 the industrial output increased by 7% and exceeded US $51 billion. The Gross agricultural output grew up by 7% and exceeded US $6.6 billion. The growth of investments in fixed assets constituted 10.6%.

From 1993 to 2006 the gross inflow of foreign direct investments (FDI) into the national economy of Kazakhstan totaled US $ 51.2billion (the corresponding per capita indicator is the highest one for the CIS). In 2006 the FDI inflow to the Republic of Kazakhstan amounted to US $10.4 billion which is by 57.7% more than in 2005.

Alongside with rich natural resources, agrarian and industrial potential, availability of qualified workforce and relatively inexpensive manpower, as well as favorable geopolitical location, investors find Kazakhstan attractive also due to political stability and interethnic accord.

Nowadays Kazakhstan is characterized by a high rate of economic growth. The country has provided good conditions to attract investments, and it has accumulated some financial resources that could be invested in other economies. In his recent Message -“New Kazakhstan in the New World” – President N.Nazarbaev emphasizes that the RK Government should implement a more active investment policy that would facilitate the economic growth, increase commodity turnover and improve common people’ living standards all over the region.

Dear Forum Participants,

Kazakhstan has always built its regional policy upon the principles of good neighborhood, equality and respect of each other’s sovereignty. Economic relations with other states developed quite dynamically, but not sufficiently fast. Close political contacts should be complimented with creation of favorable and mutually beneficial environment for businesses of our countries and establishment of rational mechanisms for maintenance of trade and economic relations. Now we have all opportunities for implementation of major joint projects in the energy, agriculture, manufacturing sectors and for transfer of technologies. All the above may be viable only on condition that geographical, transit, resource and enormous human potential of our countries are efficiently mobilized.

It is noteworthy that interaction between countries of Central Asia should be built upon a comprehensive review of common issues of the region. One of the above is a balanced use of water resources of transboundary rivers and preservation of related basin ecosystems. The growing impact of man-caused factors on river basin ecosystems is inevitably leading not only to degradation of natural landscapes, but also to shrinking of areas suitable for human life and activities.

We hope that participants of the Asian and Pacific Business Forum being held in Almaty will do their best to ensure achievement of the above goals.

Let me wish you all success, and may the Business Forum enjoy fruitful discussions and achieve the goals set.

Thank you.

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Headquartered in Bangkok, UNESCAP is the largest of the UN's five Regional Commissions in terms of its membership, population served and area covered. The only inter-governmental forum covering the entire Asia-Pacific region, UNESCAP aims to promote economic and social progress. More information on UNESCAP is available from www.unescap.org