Official Statements:

Kazakhstan’s Prime Minister reports

on 2007 economy results (extracts)

In 2007 growth rate in mining sector made up 2;6%; oil and condensed gas production grew by 3.8%; natural gas production output increased by 9.7%.

The Government increased its stakes in Kashagan and Kumkol fields, as well as in Bogatyr coal mine. This work will be continued. The President’s instruction to bring back under the state control resources currently operated by unconscientious subsoil users and land owners will be enforced in the current year.

The new Tax Code will clearly define “rules of the game” for subsoil users and the payoff from the extraction industries will be increased. All the talks with subsoil users have been suspended until the new Tax Code is enacted.

According to preliminary data, GDP growth in 2007 made up 8.5%, with growth being ensured in all sectors.

At the same time, turbulence at the global financial markets in the second half of 2007 did have an effect on the growth rates. And the reason for that is that Kazakhstan is more integrated into the global economy. We were the first in the region to experience the negative fallout. But the economy strengthened through the years of independence has proved its viability.

The Government has taken a package of stabilizing measures to bolster economic growth. To this end, over KZT 403 billion was earmarked: over KZT 143 billion in 2007 and almost KZT 260 billion in 2008.

The Government along with the National Bank and the Agency for Financial Supervision will be closely watching financial situation in each bank and taking urgent actions. Should financial institutions or their owners fail to solve the arising problems, new managers will be introduced as prescribed by applicable legislation as well as new investors, including foreign ones, will be attracted. All this will be done openly and in accordance with clear procedures prescribed by the law, K. Massimov said.

Herewith he emphasized that “to save the banks through extending one-way support is not a goal in itself for the Government. It is the financial institutions that will still bear the burden and undertake the risks. Our task is to ensure stability and soundness of the financial system as a whole and to protect interests of depositors”.

The Government is already elaborating a plan of comprehensive real-time response to threats posed to the financial stability; approaches are being enhanced to macroeconomic forecasting and system risks management. In 2008 a number of effective measures will be taken to expand structural reforms in the financial sector and to develop the equity market, Prime Minister said.

When dwelling on the 30 Corporate Leaders Program, the Prime Minister noted that “we have already launched specific investment projects. The State Committee for Economy Modernization has approved of a list of 97 break-through projects. 22 of the projects were launched in 2007”.

Among these projects one could single out construction of a gas processing facility, mining integrated works, a copper smelter, an aluminum smelter, a pant to produce chlorine and caustic soda; construction of a section rolling facility and a metallurgical silicon-producing facility.

Actual setting of these facilities in operation will enable us to be speaking of substantial diversification of the economy, the Prime Minister emphasized.

In 2007, growth rate of the processing industries made up 6.7% which is higher than in mining industries.

The efforts taken by the state to diversify the economy makes the economic system more resistant to external shocks. State holding companies and social enterprises established pursuant to respective presidential decrees are bringing tangible results. Measures are being taken to support S&MBs and remove the red tape barriers.

Institutes of development have approved of 76 investment projects totally worth USD 4.6 billion. 41 facilities totaling USD 790 million have already been placed in operation.

According to the Prime Minister, over 1100 Kazakhstan-based enterprises have already adopted international quality standards. For the past year over 240000 jobs have been created, including 115000 in rural areas.

However, low efficiency remains a factor that still contains the competitive edge enhancement; according to preliminary data, efficiency only grew by 7% last year.

According to the Prime Minister, “the strengths and weaknesses of the Kazakhstan’s economy have been clearly defined and there is a clear vision of how to strengthen the current positions and bolster the nation’s potential. Our strengths are stable financial and fiscal positions, K. Massimov noted.

“Kazakhstan’s financial system remains stable and efficiently operating. However, turbulence at the global financial markets has exacerbated some internal problems of the Kazakh financial sector. Structural reforms of the financial sector and more effective regulation of the sector are the two major issues on the agenda”, the Prime Minister noted.

Low budget deficit, stable growth of budget revenues and accumulated international reserves enable to accomplish the state tasks in full. The 2008 budget already envisages real-time response to changes in economic situation.

Pursuant to the President’s instructions, the Government will cut down all the ineffective budget expenses. Fundamental factors of economy growth in the current year will remain unchanged. Economy growth rate in 2008 is expected at 5-7%.

Kazakhstan’s PM Karim Massimov pays a working visit to the UAE

While in Abu Dhabi, Karim Massimov met President H. H Sheikh Khalifa bin Zayed Al Nahyan; Prime Minister Muhammad bin Rashid al-Maktum; Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi; and Dubai World Chairman Sultan Ahmed bin Sulayem.

February 16-17, 2008 Kazakhstan’s Prime Minister Karim Massimov came to the UAE on a working visit.

While in Abu Dhabi, Karim Massimov met President H. H Sheikh Khalifa bin Zayed Al Nahyan; Prime Minister Muhammad bin Rashid al-Maktum; Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi; and Dubai World Chairman Sultan Ahmed bin Sulayem.

Karim Massimov expressed gratitude to the UAE for support rendered to Kazakhstan within a number of large-scaled investment projects and extended the UAE leader an invitation on behalf of President Nazarbayev to visit Kazakhstan.

The UAE accepted the invitation and pointed to the positive dynamics of trade-and-economic relations between the two countries.

Fruitful cooperation between the Governments and business communities of the two countries facilitated development of relations and joint implementation of investment projects in the realms of transport and communications, construction, energy, and petrochemistry.

February 17, three 3 resulting memoranda were signed in the presence of Kazakhstan’s Prime Minister Karim Massimov and Sheikh Mansoor bin Zayed Al Nahyan, UAE Minister of Presidential Affairs. These were MoU to construct a petrochemistry facility in West Kazakhstan signed between the Kazakh National O&G Company KazMunaiGaz and International Petroleum Investment Company (IPIC) of Abu Dhabi; MoU to develop bauxite deposits and construct an aluminum plant in Kostanai oblast of Kazakhstan signed between Abu Dhabi's Mubadala Development Co. and Tobol social enterprise of Kazakhstan; and MoU to finance development of a plant manufacturing chemicals and mineral fertilizers signed between the Kazakh Ministry of Industry and Trade and IPIC of Abu Dhabi.

“We are proud to sign the important agreement to construct an aluminum plant supplied by local bauxite deposits in Kazakhstan. This is an important vector for us, an important project and important partnership; we hope to implement this is going to be a first–rate project”, said Khaldun Khalifa al-Mubarak, chairman of Abu Dhabi Executive Affairs Authority, following the signing ceremony.

Thus, first steps were taken to implement agreements reached in the course of Kazakhstan President’s visit to the UAE late 2007. Implementation of the mentioned projects will facilitate accomplishment of the tasks set by the Kazakh President in his annual address to the nation.

In the course of the talks with Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, and Dubai World Chairman Sultan Ahmed bin Sulayem the sides reiterated intentions of their nations to implement the agreements reached in the course of N. Nazarbayev’s visit to the UAE in November 2007.

At the meeting the sides discussed prospects of cooperation in the realm of tourism, notably infrastructure development in Astana and creation of resort zones in Kazakhstan.

Besides, the sides welcomed forthcoming creation of the Kazakhstan-UAE Business Council to be established in March 2008 in the course of the Kazakhstan Chamber of Commerce and Industry delegation’s visit to the UAE.

All members of international community are celebrating

an International day of mother language on February 21.

Kazakh people have their own language. Kazakh is the official state language of Kazakhstan, along with Russian, the official language of commerce. In Kazakhstan, nearly 10 million speakers. More than two million speakers reside in China. Russian Census reported 560,000 Kazakh speakers in Russia. Other sizable populations of Kazakh speakers live in Mongolia (fewer than 200,000). Large numbers exist elsewhere in Central Asia (mostly in Uzbekistan) and the former Soviet Union, and in Afghanistan, Iran, Turkey, and other countries. There are also some Kazakh speakers in Germany. They immigrated from Turkey in the 1970s.

Language policy in the Republic of Kazakhstan

Optimal process of language structuring is one of the most socially important aspects in state life because it contributes to strengthening of civil accord and further consolidation of society and provides adequate realization of ethnolinguitic and cultural needs.

Reforms in the sphere of language policy can be divided into several stages chronologically comprising the main events.

The first stage (1992-1997) - Elaboration of thoroughly considered and rational state policy on language relations in the society.

The second stage (1998 – 2000) - Establishment of mechanisms for implementation of state language policy. Elaboration of state, regional, and sectoral programs on functioning and developing of languages.

State program on functioning and developing of languages (1998) gave an opportunity to take specific measures for achieving the main objectives set in the initial stage of implementation of the law “On the languages in the Republic of Kazakhstan”. After passing a number of legal regulations of the Government of the Republic of Kazakhstan there were created the necessary prerequisites for further extension and intensification of the language structuring processes in all the spheres of social life.

The third stage (since 2001) - In accordance with the functional principle of the linguistic field forming in the republic ratified by the Constitution of the Republic of Kazakhstan and reflected in the law “On the languages in the Republic of Kazakhstan” and in the State program on functioning and developing of languages for 2001-2010, language structuring is carried out in 3 areas on differential basis: extension and strengthening of social-communicative functions of the state language; preservation of general cultural functions of the Russian language; development of other languages of the peoples of Kazakhstan.

Differential approach is caused by distinctions in the tasks set before every functional-linguistic groups. So, the development vector of the Kazakh language is determined by a need to implement its public status. The guideline for ensuring the Russian language functioning is keeping communicative functions of this language that is officially used along with Kazakh in public organizations and local authorities. Satisfaction of linguistic needs of ethnical groups demands creation of conditions for learning and development of the languages of the peoples of Kazakhstan, realization of the constitutional right of every person to use native language and to choose freely the language of communication, study and creative work.

Implementation of the public status of Kazakh demands extension of its lexical and semantic range capabilities in the light of new social, cultural and scientific realities in accordance with the experience of world languages’ development.

State language teaching

State language of the Republic of Kazakhstan is Kazakh.

State language is a language of public administration, legislation, legal proceedings, and office work used in all the spheres of social relations on the territory of the state.   Every citizen of the Republic of Kazakhstan has a duty to master the state language that is the main consolidation factor of the people of Kazakhstan.

Government, other public, local representative and executive bodies promote the state language in the Republic of Kazakhstan in every possible way and create all the organizational, material and technical conditions necessary for unimpeded and free mastering of the state language by all the citizens of the Republic of Kazakhstan.

It is well known that only administrative methods of language promoting if not supported by any additional stimulating measures are not effective enough. That is the reason why there is a need along with imperative measures to introduce stimulating methods on a broader scale. State central and local executive bodies conduct purposeful work on teaching the Kazakh language.

Kazakhstan is a multiethnic community. With a population of 16 million people Kazakhstan is home for more than 130 ethnic groups, representing over forty religious confessions and denominations, live peacefully in Kazakhstan and enrich each other's cultures. International community highly appraises Kazakhstan experience in dealing with interethnic issues. Kazakhstan pursues a consistent policy of ensuring beneficial conditions for realization of interests of all ethnic groups in the country, for ever further harmonization of inter-ethnic relations.

There has been a breakthrough in peoples' awareness and in resurrecting the culture and traditions of the peoples living in Kazakhstan, and this is due to the creation of a legal and democratic basis in the field of interethnic relations and the implementation of the State Programme for the Development of Languages, ratified by Presidential Decree in April 2002. Just in the sphere of national education alone, there are more than 100 ethnic schools and 170 Sunday language centres operating in Kazakhstan. The government allocates funds annually to support these Sunday schools, and help is also received from local budgets. This active process of resurrecting national cultures has led to the creation of more than 470 regional national cultural centres in the provinces. The state provides support for 19 republican and regional national newspapers and radio and television programmes, and for six national theatres.