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SAGGAS Interview with Kairat Kelimbetov: Kazakhstan’s cooperation with China and other partners


10 December 2021 | By SAGGAS | @SISUShanghai

  • Kairat Kelimbetov

    Kairat Kelimbetov is the Astana International Financial Center Governor, former Governor of the National Bank of Kazakhstan, and former Deputy Prime Minister of Kazakhstan.

In an exclusive interview for Shanghai Academy of Global Governance and Area Studies (SAGGAS), Kairat Kelimbetov, the Astana International Financial Center Governor, former Governor of the National Bank of Kazakhstan, and former Deputy Prime Minister of Kazakhstan, spoke about the unique path of Kazakhstan’s economic transformation after the collapse of the Soviet Union;  the economic cooperation between Kazakhstan and China and its other key partners;  the anti-Crisis policies amid Covid-19; as well as the current state of the Astana International Finance Center.

 

SAGGAS: What have been the challenges of Kazakhstan's economic transformation in the past thirty years and how did the country address them?

Kairat Kelimbetov: The key challenge for Kazakhstan was the same as for other former Soviet republics – creation of an independent state and its institutions.  In terms of the national economy, our primary objective was to execute an effective transition to the market economy.  Among many other tasks, this involved the creation of a new national currency, revival of economic links severed with the collapse of the Soviet Union, and building new economic links with the outside world.  

There were several unique features in Kazakhstan’s approach to economic reforms that contributed to our success.  From the very start, we identified several strategic signposts that we followed all these years – open economy, diversification combined with effective management of the commodities segment, robust efforts to develop human capital, and unwavering commitment to social guarantees for our citizens.  Our focus has been on the rapid modernization and improvement of our global competitiveness, preparing us for future challenges.

 

SAGGAS: What is the current state of economic cooperation between China and Kazakhstan in the framework of "one belt and one road," including the prospects for financial cooperation?

Kairat Kelimbetov: Cooperation with China is an important element of Kazakhstan’s economic agenda, and the Belt and Road is the primary focus of this engagement.  Our country has been a major contributor to the development of the regional transportation infrastructure, including investment of over $30 bn in the Kazakhstan segment of the East-West corridor,  of which the dry port in Khorgos on the Kazakhstan-China border is an integral part. Additionally, together with our partners, we have developed a database of projects and investment opportunities that exist for international investors in the framework of Belt and Road.  

 

SAGGAS: What is your take on Kazakhstan's economic cooperation agenda with major powers such as Russia and regional powers like Turkey?

Kairat Kelimbetov: Kazakhstan’s unique geographic location puts it on the cross-roads of two of the region’s key integration initiatives – Belt and Road, and the Eurasian Economic Union.  Union members include Russia, Belarus, Armenia and Kyrgyzstan.  The Eurasian Economic Union provides free access for member states to each-other markets, ensuring free movement of goods, services and labor.  This access to large Russian market is obviously an important positive factor for Kazakhstan, and we are working on expanding the scope and depth of this cooperation.  And as Belt and Road and the Eurasian Economic Union expand their complementarity, Kazakhstan’s role and economic benefits will only increase.

We view Kazakhstan’s role as a facilitator for economic cooperation in the region for all countries, including our neighbors, as well as states further away, such as Turkey or Pakistan.  At this point, most of Turkey’s investments in Kazakhstan take place in the construction sector.  But we see a lot of potentials in our cooperation within the framework of the Belt and Road Initiative, particularly given Turkey’s own role as a transportation hub and its vast experience in construction.  

 

SAGGAS: What is the economic situation in Kazakhstan now, amid Covid-19?

Kairat Kelimbetov:  Obviously, the pandemic became a once-in-a-lifetime challenge for Kazakhstan, as well as for other countries.  Fortunately, the global economy recovered faster than expected, and our outlook in terms of public finances is quite positive.  

Another positive development is the increased volume of goods in transit through the territory of Kazakhstan.  This is a result of our strategic focus on diversification and on establishing Kazakhstan as an important transportation hub along the East-West corridor.  In fact, the world-wide effort to ensure resilience of supply chains has further contributed to the growth of transit shipments through our territory.  In only 10 years, the transit volume of goods between China and Western Europe  has increased from 7 to 600 TEU, and two-thirds of this volume moves through the territory of Kazakhstan.

Our goal now is to leverage these positive trends, and to make the necessary adjustments to our economic models and regulatory regime to be prepared for longer-term shifts that the pandemic has generated.  

 

SAGGAS: What is the current state of development of Astana International Finance Center?

Kairat Kelimbetov:  AIFC was launched only three years ago.  We already have more than 1,000 companies from all over the world registered as participants.  They select AIFC due to the English common law regime, an independent Court and Arbitration Center with international judges, and very competitive tax and regulatory incentives. The Astana International Exchange – with shareholders including the Silk Road Fund and Shanghai Stock Exchange – have already handled several listings, both IPOs and SPOs.  Our focus now is on developing offerings that are new and innovative for the region, including green finance and Islamic finances.  

Very importantly, we work very closely with our Chinese partners.  Shanghai Stock Exchange has its representatives working full-time at AIFC, developing and fine-tuning our offer to Chinese investors.  We also serve as a platform, or a gate-way, for international investors interested in projects being implemented under the Belt and Road umbrella.  By offering high international standards and a modern financial infrastructure, we provide the level of comfort that these investors need to work in the region.

 

Established in 2018, the Shanghai Academy of Global Governance and Area Studies (SAGGAS) at the Shanghai International Studies University (SISU) is China's leading academic think-tank in global and area studies. Learn more: http://www.saggas.shisu.edu.cn

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Press Contact

SISU News Center, Office of Communications and Public Affairs

Tel : +86 (21) 3537 2378

Email : news@shisu.edu.cn

Address :550 Dalian Road (W), Shanghai 200083, China

Further Reading