Statement by the Minister of Foreign Affairs of Kazakhstan Mr. Kassymzhomart Tokaev at the international conference "New prospects of economic cooperation in Central Asia" (Berlin, May 18, 2006)

Dear Mr. Chairman,
Dear ladies and gentlemen,

It is a privilege to address this distinguished audience - we are grateful to our hosts - Germany - for their timely initiative to organize this Conference, which provides an excellent forum to discuss the prospects of regional economic cooperation in Central Asia. In the light of the latest developments in the region this might have far-reaching implication.

Today Kazakhstan is being considered as a remarkable \"success story\" which is due to our strong determination to pursue liberal economic reforms, build à solid base for democracy and civil institutions, maintain stability in the society.

Our country enters à new stage of comprehensive modernization - President Nazarbayev has set an ambitious goal to join the community of most competitive nations in the world.

We are planning to contniue carrying out structural reforms to make our economy more attractive for foreign investment, to further develop our transport infrustructure and financial system. We want our economy to be more sustainable and more accountable to the world markets.

We see our crucial mission in promoting regional economic integration, facilitating trade and investment, thus using the huge potential of the region.

Our message is quite clear - Kazakhstan is fully committed and ready to cooperate with the EU and all other partners in our common pursuit of regional cooperation and greater integration of Central Asia into the global economy, which forms the basis for the region\'s sustainable development.

None of the countries can be prosperous while having poor and unstable neighbors. Therefore, we strongly believe that alongside with our Central Asian partners Kazakhstan will be able to contribute in addressing the most pressing problems of the region like terrorism, drug trafficking, illegal migration, arms flow. We are hopeful that economic reforms will become a driving force of the positive development of the situation in the region.

Let me very briefly elaborate on the goals of economic cooperation in Central Asia.

From our view, the major task for all Central Asian states is to promote all three components of sustainable development - economic development, social development and environmental protection - as interdependent and mutually reinforcing pillars which contribute to the enhancement of security of their very statehood as well as their capacity to withstand the pressure of acute threats.

The only effective way to solve social issues is to galvanize regional economic cooperation.

Thus, the need for wider economic cooperation is an obvious goal given that Central Asian countries combined have à promising market of more than 50 mln. consumers and producers of commodities and services - and once consolidated this market could boost the economies of all parties involved in this process.

Particular emphasis should be placed on the development of energy sector and respective infrastructure to deliver region\'s hydrocarbon resources to the world markets.

Kazakhstan being one of the world’s top suppliers of hydrocarbons, sticks to the principle of multiple export routes. Negotiations on joining the Baku-TbiIisi-Ceyhan pipeline are in their final stage. We have agreed in principle with Russia to increase capacity of the Caspian Pipeline Consortium.

Kazakhstan is also due to start export its oil to China through the newly constructed pipeline Atasu-Alashankou which is of strategic importance for the region. It is the first pipeline route to China, and the first one totally situated on the territory of producer and consumer states. It is open for supplies from neighboring countries, including Russia. We also talk about building à gas pipeline to China bearing in mind potential of Central Asia and Russia. Energy sector will remain à major priority for the near-term outlook with the European Union. We closely follow the developments in this sphere, namely recently adopted by the European Union «Green Book» on energy, where the emphasis is placed on the Caspian Sea basin and Kazakhstan in particular. As to Kazakhstan\'s own efforts in spheres of Trade, Finance, Investment and Infrastructure Development - we remain fully committed to the integration processes within such multilateral bodies as the Shanghai Cooperation Organisation, EurAsEC, and to some extent Single Economic Space. We support the dialogue between Central Asia and EU as well as Central Asia and Japan and wish to be actively involved in these processes. The situation in Central Asia can not be comprehensively assessed without Afghanistan. Kazakhstan committed itself to rendering assistance to this country. We view Afghanistan as an important part of Central Asia, which unfortunately remains à major source of instability and threats to regional security. Kazakhstan is ready to provide Afghanistan with grain, mineral fertilizers, and agricultural equipment, participate in the development of infrastructural projects in energy, transport sectors, to assist Afghanistan in training qualified specialists in various areas. Unfortunately, this country has become a major source of drug trafficking and production of poppies is rapidly growing which should be a matter of grave concern for all international community. Strict and resolute measures have to be taken to address this problem. I would like to draw your attentnion to the UN Special Program for the Economies of Central Asia (SPECA), initiated by Kazakhstan in 1997 and now being implemented under the auspice of UN ECE and UN ESCAP. Afghanistan joined SPECA in 2005 and it is an encouraging fact. Another promising endeavour is the TIFA Agreement signed by all Central Asian states with the US Government on promoting regional trade and investments. We are planning to host à TIFA meeting in Almaty to discuss ways of strengthening financial, trade and investment cooperation in the region. As for the relations with major powers in Central Asia we consider them of an utmost priority in our foreign policy. I fully agree with all speakers today that we have to abandon the perceptions and rules of so called “Great Game” and put our strategy on the norms of partnership. We managed to build stable, predictable and forward looking relations with all countries involved. Our strategy is based on geopolitics but at the same time on pragmatic considerations - maintaining security and stability, promoting prosperity through mutually beneficial economic cooperation in the region. We have friendly and costructive relations with Russia, China, Uited States and EU as well as with Turkey, India, Iran, Pakistan, Persian Guls states, Japan and other countries. We are witnessing Central Asia gradually transforming from periphery into one of the most important geo-economical elements of the world. Growing importance of the region is determined by presence of à number of factors shaping its geo-strategic role. The new challenges of globalization require revaluation of regional policy and elaboration of à unified regional strategy meeting the interests of all parties concerned. Kazakhstan believes that the most instrumental means of adaptation to the new geo-economic situation for our region is creation of the Union of Central Asian States which has been proposed by President Nazarbayev. Such an integration of the Central Asian states will comply with geopolitical and geo-economic interests of all major powers, and contribute to further stabilization of the region and its authority on international arena. Kazakhstan is ready to work out à new format of cooperation based upon effective economic interaction of the parties and principles of the common market with unimpeded flows of goods, services, capital and labor. But at the same time we have to admit that present situation in Central Asia is characterized by à wide range of complex national problems, remaining internal and intergovernmental disputes of political, economic and territorial nature. Dear ladies and gentlemen, It is my sincere hope that the Conference will lead to better understanding of the processes taking place in Central Asia and enhance the ties of Western and EU countries soon to be chaired by our host - Germany - with the regional states on the basis of mutually beneficial economic cooperation for the sake of supporting the process of regional integration. Our relations with the EU are dynamically developing and we believe that our partnership should be raised to à higher level by linking Kazakhstan to the European Neighborhood Policy as à partner country. The same goes about our efforts to join the WTO to which we believe Central Asian states should have easier access. We welcome the initiative on elaborating à unified EU Strategy towards the countries of Central Asia, which Germany aims to offer in course of its EU chairmanship. I would like to extend our profound appreciation to the Government of Germany as well other European countries for their support of our claim to the Presidency in the OSCE. Kazakhstan fully understands the crucial importance of meeting up major international standards and will be striving to be complied with them.

Thank you for your attention.