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Economic Relations between Kazakhstan and Russia |
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Economic Relations between Kazakhstan and Russiap> In the last two years there was movement in the CIS countries on some issues that had been at a standstill, including4. VITAL PROBLEMS OF THE PRESENT-DAY STATE OF KAZAKHSTANI-RUSSIAN RELATIONS The Present State and Prospects for Economic Cooperation between The main feature of the present-day situation in Kazakhstan is the increasing impact of the mechanisms that have evolved in the years of reform and a weakening of the effect of non-market factors. In the initial stages, the underdeveloped state of such important instruments of the formation of the market as privatization, de-monopolization, absence of a competitive environment, were the main sources of inflation in the republic, a worsening state of the finances of enterprisers, an acute shortage of turnover capital, a fall in production due to falling demand and real earnings of the main mass of the population, as well as growing abuses in trade and banking structures. The prevailing technological, economic and organizational standards
made a significant impact on the potential of foreign trade relations. “The
cohesion of the economic space of the former USSR was affected through
centralized state planning implemented by command-administrative
management. In the process, the country’s economy worked as a ‘single
workshop’, and not all production and economic links here were rational
from the market point of view. The transition to a market economy
throughout the economic space of the former USSR required a profound
restructuring, and this called for considerable resources and time,” Ex- The policy of liberalization of foreign trade activity and of open
economy did not result in 1993 in any growth of exports. It amounted to A noticeable feature of Kazakhstan economy is the low level of the
development of machine building, which is not up to present-day
requirements, and this makes an adverse impact on other branches of the
economy, as it results in the common shortage of metal-tooling products. The basis of the development of Kazakhstan, just as of Russia and many
other CIS countries, is export of natural resources. In 1994, the
government introduced regulations for the licensing of natural resources,
and a law was adopted on payments for utilization of natural resources. It
was at that time that efforts were initiated to attract domestic and
foreign investors to develop the fuel and energy complex. The development
began of the Tengiz, Karachiganak, and some other oil yields at oil fields
continued to be introduced. Open – cut coal mining was expanded at In the metallurgical industry, the development of production of
ferrous metals and the raw-materials basis of such production continued,
including the revamping of the Karaganda metallurgical plant with the aid
of foreign investment; its re-orientation toward the iron ore pellets of
the Sokolovsko – Saribai mining association; the development of production
of stainless steel and rolled metal and the building of an electric
metallurgical plant for the production of stainless steels in Aktobe;
further development of ferrous alloys in Aktobe and Aksu and of its raw-
materials basis –the Donskoy ore –dressing plant; the re-orientation of
idle production lines of JSC Khimprom to the production of ferromanganese. At the same time there was a fall in the production of ferrous metallurgy due to an aggravation of the raw materials and fuel shortage and a parlous state of equipment at enterprises of this industry. The decline in industrial production was to a considerable extent due to non-solvency of enterprises in view of their insufficient financial resources, non- payment by the buyers for products delivered, and weak financial discipline. The decline in non-ferrous metallurgy continued, as production of copper, titanium, and manganese fell. To check the decline in this branch of industry, the production lines at the Chilisai ore-dressing plant switched to a different product; the Zyryanovsky lead plant was rebuilt, and its commissioning was brought forward; the raw – materials basis for the titanium industry was created, as was the Syrymbet tin field, the tin being produced at the Tselinny chemical plant. The functioning gold mines and ore-dressing plants were revamped, and work was accelerated to develop major gold fields at Vasilkov, Bakyrchik, and Akbakai. In 1994, the share of machine-building industry and machine tooling in
the overall industrial production continued to fall, amounting to six
percent. Low investment activity, non- competitiveness of the Kazakhstan
machine-building industry, limited financial consumer capacity
predetermined an almost twofold reduction volumes in most types of machine The situation was worst in the chemical and petrochemical industries,
whose production capacities far exceeded the republic’s domestic needs. The timber, woodworking, and papermaking industries suffered from
shortage of raw materials. Between the beginning of 1993 and the end of In 1993 and 1994, decline in production also continued in the
construction materials industry. Production of cement declined to the level
of 1973, while production of pre cast concrete products dropped to the
level of 1974. There was a considerable drop in production at enterprises
producing asbestos cement pipes and coupling (by 34.2percent), linoleum (by During the last five years, GDP volumes continued to fall, declining
roughly twofold; the greatest decline (by 25.4 percent) was observed in The situation was worst in the chemical and petrochemical industries,
whose production capacities far exceeded the republic's domestic needs. A
considerable share of the product was exported to other CIS countries and
the "far abroad," but the enterprises suffered from shortages of raw
materials, even shortages of oil, which is produced in Kazakhstan itself. The timber, woodworking, and papermaking industries suffered from
shortages of raw materials. Between the beginning of 1993 and the end of In 1993 and 1994, decline in production also continued in the
construction materials industry. Production of cement declined to the level
of 1973, while production of pre cast concrete products dropped to the
level of 1974. There was a considerable drop in production at enterprises
producing asbestos cement pipes and couplings (by 34.2 percent), linoleum During .the last five years, GDP volumes continued to fall, declining
roughly twofold; the greatest decline (by 25.4 percent) was observed in However, during the time of the reform considerable changes took place in the structure of GDP: The share of services grew sharply - from 32 percent in 1992 to 47 percent in 1995; the share of commodity production declined by 12 percent. The volume and share of services mostly grew in the trade] in banking and finances, insurance, and realty, while the share of everyday services fell. In other words, the main trend in the changes of macro-economic proportions was a move towards parameters characteristic of countries with well-developed market economies. The share of consumption of end products rose to 69 percent of utilized GDP as contrasted with 58 percent in 1993. Investment in 1995 amounted to some 30 percent of GDP. Beginning in the second half of 1994, certain positive changes began to occur: a decline in the rate of inflation, a growth in accumulation of capital, a stabilization in the exchange rate of the national currency, a decline in the banks' interests rates, and a relative growth in industrial production. The rate of inflation steadily declined from 4.9 in June 1994 to 3.2
percent in April 1995. The decline in production, which sharply Increased
in November 1993 through March 1994, practically, ceased in some branches
in 1994. As a result, industry as a whole grew by 0.3 percent in September,
by 1.1 percent in December, and by 1.2 percent in April. As distinct from
the previous years, a certain stabilization of production, which began in The positive dynamics in the consumer and wholesale prices was achieved above all by harsh financial and credit policies and the government's measures aimed at stage by stage liberalization of prices and tariffs for commodities and services, which resulted hi a sharp reduction in the range of regulated prices. At the beginning of 1996, only the prices of electric power, heating, gas, passenger and freight railway traffic were regulated, and at the local level, regulation involved prices" and tariffs of communal services and the services of urban passenger transport. In 1995, the monetary and credit policies were characterized by changes in the monetary and credit instruments of the National Bank, its operations at the inter bank credit, currency, and stock markets, and the development of the market of state securities. Whereas hi 1994 and January 1995 the principal instruments were centralized and auction credits, in 1995 the emphasis shifted from state-apportioned credits to the development of securities markets and auction credits. The primary market of state treasury bonds actively began to develop. The weighted average percentage rate for auction credits amounted in In 1995, the reduction in production output amounted to eight percent. In 1995, the policy of liberalization of foreign trade activity continued; distribution of export quotas was completely eliminated, and the list of licensed export products was considerably reduced. Kazakhstan traded with 124 states of near and far abroad. In the framework of official aid for development, Kazakhstan received a number of credits to the tune of $1.3 billion from international financial organizations and individual donor countries. One of the main types of foreign resources for the republic was direct investment, in particular the setting up of joint ventures and foreign enterprises. The rate of establishment of joint ventures in Kazakhstan is fairly high. Thus, at the end: of 1990 there were just 15 of them, while at the end of 1995 more than 2000. JVs operated in the republic, of which 500 operated on foreign capital only. Most of these were set up in the; mining industries. From the beginning of 1995, steadily increasing numbers of enterprises were turned over for administration. Toward the end of December 1995, external administration was introduced at some 20 major industrial enterprises in various sectors. The necessary legislative basis was created for the involvement of foreign capital in Kazakhstan. Thus the implementation of economic policies in 1992-1995 in Kazakhstan resulted in the liberalization and openness of the economy and the expansion of private enterprise. There were significant shifts in the market infrastructure. Trade and the banking sector developed rapidly, and other financial institutions were born - in other words, there was, progress in those spheres of the economy that had previously; been underdeveloped but that were vital for the functioning of the market economy. The liberalization of foreign and domestic trade resulted in a slight
reduction of export in 1994 and early 1995 compared to the decline in the
volume of GDP. The export of commodities, mostly to CIS countries, amounted
to $13 billion in 1994 and $4.97 billion in 1995. The greatest share of
exports went to the Russian Federation — 47 percent, or $1.4 billion's
worth in 1994; in 1995, the exports amounted to $2.8 billion, including Russia's share in Kazakhstan's imports from CIS countries at the
beginning of 1995 was the largest - 70 percent; Turkmenistan's, 10 percent;
and Uzbekistan's, 9 percent. Of considerable significance is the fact that
more than 50 enterprises securing Russia's defense interests work on As before, Kazakhstan's exports to Russia are raw materials, oil and petrochemical products, as well as products of ferrous and non-ferrous metallurgy. Deliveries of ferrous metals (35.2 percent), copper and items made of copper (15.1 percent) make up a considerable share of exports. Russian enterprises are also the main consumers of Kazakhstan oil and petroleum products, which amount to 40 percent of the exports of mineral products. In 1994, Kazakhstan's imports of industrial and technical goods and of
consumer goods from the far and near abroad amounted to $3.4 billion; in The share of deliveries against convertible currency in the export- import operations between Kazakhstan and Russia amounted to 6.5 percent of the total volume of exports; the share of baiter operations was 32.6 percent; and the share of clearing and similar operations, 60.9 percent. In this process, baiter deals did not as a rule result in a balanced and equivalent exchange. Analyses of export-import barter deals in 1993-1995 shows that total exports were twice as large as imports of commodities. As a result of these operations, considerable funds of Kazakhstan Commodity producers annually stay in Russia. On the whole, the results of economic development show that the republic was close to achieving macroeconomic stabilization, that the impact of market incentives increased, and that a new system of reference points and motivations developed. The main problems of the critical period of development were partially solved, but new ones emerged. Harsh monetary and credit policies, liberalization of the domestic and
foreign markets promoted the formation in the republic of market mechanisms
for the regulations of the economy and for ensuring equal possibilities and
guarantees for all the agents of economic activity. In this situation the
possibility appeared of creating a common economic space covering The development of Kazakhstani-Russian relations between 1991 and 1995 showed that the two states adopted a great many documents covering a wide range of economic issues. The implementation of these agreements created favorable conditions for establishing economic links between economic agents and for the development of a common market that would be advantageous for the economic interests of both Kazakhstan and Russia. The relations between the two countries in the economic sphere developed, against the background of improving multilateral cooperation: within the CIS framework. The legal basis for this, process was the treaty on the jetting-up of the CIS Economic Union signed on September 24, 1993.' A characteristic feature of the situation in the CIS is universal
recognition of the need for stepping up integration processes in the
economic interaction of CIS countries. It should be noted that, among CIS
countries, economic relations were most intense between Russia, Kazakhstan, One of the basic documents on economic integration was an agreement on a customs union between the Russian Federation, the Republic of Kazakhstan, and the Republic of Belarus.1 Let us recall that on January 20, 1995 the presidents of Kazakhstan and Russia, in their joint declaration on the expansion and deepening of Kazakhstani-Russian cooperation, instructed their governments to sign an agreement on the customs union. The heads of governments of Kazakhstan, Russia, and Belarus signed this document. The formation of the customs union was preceded by extensive preparatory work aimed at harmonizing the legislative systems of the two countries. A number of governmental and interdepartmental agreements, protocols, and joint normative acts were signed, including those on free trade, on a unified procedure for regulating foreign trade, on the re- export of commodities, on the introduction of a unified procedure for non- tariff regulation of trade with a coordinated nomenclature and volumes of licensed and quoted commodities, on the establishment of a free trade zone, on the unification and simplification of customs procedures, on collaboration between customs services, on combating illegal drugs trafficking, on the terms of maintenance of military facilities on the territories of the two sides, and on joint security measures for the protection of the external borders of the Customs Union. These agreements covered a sufficiently wide range of issues, and they formed the basis for further action. The agreement on the setting up of the Customs Union was based on the
principles of unified customs territory of the member states of the Customs Agreements on the Customs Union envisage the possibility of introduction of coordinated time restrictions on mutual trade in case of shortages of commodities on the domestic market, acute payment deficit, and other circumstances. The countries assumed the obligation to establish unified control over their customs organs and organize joint supervision of the movement of commodities and transport vehicles on the borders. The procedures for such supervision are regulated by agreements between the customs organs of the states involved. The agreement on the Customs Union is open to all other CIS member states that will recognize the provisions of the agreement and express a readiness to fulfill them in their entirety. The joint statement was in effect an agreement on coordinated moves for further realization of economic reform and creation of a uniform mechanism for regulating the economies based on market principles. It set the task of unification of legislation on foreign trade, customs, currency, finances, prices, taxes, and other economic laws ensuring free development of production links and of enterprise, as well as equal possibilities and guarantees for economic agents of the three states. In that document, the heads of the governments of the three states noted the considerable progress in the creation of possibilities for a real formation of a customs union on the basis of agreements and protocols signed. The sides agreed that tariff and quantitative restrictions on mutual trade will be lifted through the setting up of fully identical systems of regulation of external economic links, unconditional guarantees for effective joint protection of the external borders of the member states of the Customs Union, and establishment of identical trade procedures, common customs tariffs, and measures for non-tariff regulation with respect to third countries. It was stressed that the development of foreign economic links will be promoted by the stage-by-stage formation of a clearing union to ensure continuous clearing on the basis of mutual convertibility of national currencies and formation of an effective payment system. An agreement was reached to render state support to the development of direct links and cooperation between enterprises, to the establishment of financial-industrial groups, formation of favorable conditions for mutual access and protection of investment, and acquiring real estate, Measures were outlined for the formation of a common scientific/technological space for a more rational utilization of the available intellectual, scientific, and technical potential. State delegations headed by deputy heads of governments take part in regular monthly sittings of the commission. These sessions consider the implementation of agreements, analyze the state of affairs in the practical formation of the customs union, and coordinate joint measures. At the same time each side set up its own national sections of the intergovernmental commission on the customs union. Five groups were set up in the framework of each national commission to cover the following areas: 1. Creation of the Customs Union. Solving tasks in the realization of a mechanism for the establishment, of a. free trade zone; working out normative acts for the unification of currency, financial, and general legislation; preparing proposals for the introduction of unified procedures for foreign trade regulation and an identical customs tariff, for coordinating a unified procedure of customs control, for working out an agreement on unified management of customs services, and so on. 2. Harmonization of legislative systems to coordinate the legal basis of agreements with agreements already achieved and to eliminate discrepancies in the economic legislative systems of the states, and to solve other issues. 3. Realization of the provisions of treaties; of friendship, cooperation, and mutual assistance; preparation of draft agreements and documents on freedom of movement, citizens' legal status, conversion, mutual debts of enterprises, and on military cooperation. 4. The development of production and enterprise. Taking coordinated measures for economic reforms, preparing agreements on scientific and technological cooperation, investment activity, state support of enterprises participating in joint financial-industrial groups. 5. In the area of finances and payment relations: the organization of work on providing regular quotations for the national currencies, on the setting up of a network of currency exchange points, on concluding an inter bank agreement on mutual access to domestic markets of authorized banks, on working out a common mechanism for currency regulation and control, on unification of taxes and their size, on the methodology of price formation, and so on. Practically all issues have been resolved in. the framework of the three countries on non-tariff regulation of foreign trade activity; work on the unification of normative legal acts in this area has been completed. The partners came to an agreement on the procedure for registering contracts on exports of strategically important commodities. Work is being completed on the establishment of unified operation modes in trading with countries and on re export of commodities. Apart from bilateral agreements, the Customs: Union also relies on a
number of multilateral agreements and conventions adopted by the CIS Thus the main principle on which the Customs Union is founded is the existence of a unified customs territory and a uniform mechanism for regulating the economy, based on unified legislation. Toward the end of 1995, significant changes occurred in the trade and economic relations of Kazakhstan and Russia. The agreement was revised on trade and economic relations; the emphasis was made on the development of direct links between producers, which resulted in a considerable increase in the exchange of products. In 1995, trade between Kazakhstan and Russia amounted to $319 billion, or 54 percent of the total volume of the republic’s trades, an increase of 55.4 percent on the same period in the previous year. Exports amounted to $2.1 billion, which made up 42 percent of the total volume of Kazakhstan export; exceeding the 1994 figures by a factor of 1.5. Imports reached the $1.8 billion mark, or 49 percent of all imports, exceeding the 1994 imports by 66 percent. Work on the formation of the Customs Union can thus be seen as one of the main achievements in the field of economic integration of Kazakhstan and Russia. A breakthrough was achieved in the establishment of a common market. The three countries established a unified customs zone and eliminated controls at their internal borders. Close businesslike links were established between the customs services. The Customs Union brings tangible results to each of its members. The
overall volume of trade between the CIS countries outside the Customs Union
continued to fall, while the lifting of custom barriers enabled Kazakhstan, In October 1995, the heads of the governments of Russia, Kazakhstan, and Byelorussia issued a joint appeal to the governments of CIS member states to join the triple union. Running somewhat ahead of the story, let us note that in March 1996 Kyrgyzstan joined the customs union. At the same time progress in the development of bilateral economic
relations is checked by a number of problems, notably by chronic nonpayment
of mutual debts. Kazakhstan's debt for electric power received from Russia
grew almost threefold in 1995. In turn, Russia owed a large sum to Serious possibilities are sometimes missed for successful cooperation
between enterprises in the fuel and energy complex, in metallurgy, and
other branches of the economy of Kazakhstan and Russia. Close production
links became established between the Orskneftegazsintez JSC and the In Russia, the formation of financial-industrial groups went on at an increasing pace. The results of their work in 1995 show that integration of industrial and banking capital had a positive impact on economic development. Further effective economic cooperation between Kazaklistan and Russia calls for systematic analysis and work on a mechanism of control over the implementation of bilateral Kazaklistani-Russian treaties and agreements. The following tasks should in our view be singled out in the field of economic cooperation between Kazaklistan and Russia that are of mutual interest and call for coordinated decisions of the governments: a) Stabilization of export of raw materials and subsequent increase in it as a basis for the growth of currency earnings for the modernization of production; b) Diversification of exports; c) Additional currency and investment resources for restructuring the economy; d) Support for active trading policy on CIS countries' potential markets; e) Moderate protectionism in relation to newly created import-replacing production lines. Under these conditions the two countries will have to solve new problems in economic integration in the framework of the Customs Union and in the system of world economic links, in searching for additional financial resources necessary for the implementation of economic restructuring and their balanced growth, in defending the interests of the domestic market from unfavorable conditions in the world economy and from, foreign competition at the stage of stabilization of their economies. In choosing a promising export and import specialization, Kazakhstan and Russia should give preference to commodities that are least susceptible to market fluctuations. To achieve this, it is necessary to conduct regular analysis and forecasting of the situation on the markets for the principal import and export commodities, favoring long-term agreements on their purchase/selling over one-off deals. In the medium-term perspective, transition should be effected from restrictive policies to encouragement, consistently facilitating the formation of a progressive, structure of exports and creating a corresponding system of its state support. Analysis of export/import operations of foreign trade companies and enterprises shows that, in the absence of combined controls over exports and currency and of an obligatory norm of currency sales, 1 all export earnings reach the republic. According to Kazakhstan specialists calculations, some $0.6-0.8 billion end up on the accounts of Kazakhstan enterprises in the countries of near and far abroad. According to Russian experts, corresponding figures for Russia range from $5 to $17 billion. In this connection, one of the main tasks of management of foreign trade activities of the two states is the setting up of systems of customs control over export and import contracts and banking control over currency earnings, investments, and other commodities. In future, it is advisable to step up coordination of information systems of control over repatriation of currency earnings by the customs bodies and the banking system, which will permit a concentration of efforts on securing maximum currency earnings from exports. It is advisable to restrict the decisive role of the state in foreign
economic activity to internationally recognized standards, to be
implemented in accordance with the rules and norms of the World Trade It is also advisable, in a situation of considerable reduction of the share of state property, to export and import commodities in state interests only within the framework of intergovernmental agreements, which must not include any privileges or tax or duty exemptions. For this purpose, the possibility is created for domestic purchases on a competitive basis. The state policy of selective protection in relation to promising exporting industries and conquering foreign markets gradually becomes one of the main priorities of economic policy as a whole; it is called, upon to prepare the implementation of a really proactive export policy, without which it is impossible to ensure either the payment of foreign debts, or internal financial stabilization, or investment activity and employment. Another important task is the achievement of favorable trading procedures-in relations with foreign countries and their trade and economic groups, organizations, and unions, as well as the lifting of existing discriminatory restrictions, and prevention of new ones, with regard to the member states of the customs union. To solve this task, plans are made to work consistently and
purposefully toward the entry of Kazakhstan and Russia in the World Trade Formation of new economic relations with states of the near abroad will require a longer that previously believed period of time and a gradual and coordinated advance toward generally accepted international norms of organization. The future economic policy of Kazakhstan in relation to Russia and the countries of the near abroad must have the following goals development and rationalization of cooperative economic links in terms of minimizing expenditure and increasing competitiveness; — The utilization of transit communications serving the export/import commodity flows from Customs Union members to third countries; — Cooperation and coordination of CIS countries' efforts in the restructuring of production and in optimizing the distribution of production forces. An active economic policy in relation to countries of the near abroad is seen as one of the levers for the rehabilitation of the economy and creating conditions for its upward swing. Particularly important in the economic relations of Kazakhstan and Thus the entire course of economic cooperation between Kazakhstan and Present-day economic science and practice show that economic integration is the absolute imperative of the future. CONCLUSION The analysis, in terms of history and political science, of the birth and development of new, sovereign states at the end of the 20th century, considered here in dynamic interaction with the development of other states, leads us to a number of significant conclusions. The formation of interstate relations between the Republic of An in-depth analysis of the causes of the disintegration of the USSR
was not the goal of the present study; besides, as President Nazarbayev
pointed out, it is difficult and even practically impossible to understand
everything that is connected with this event, which had such stupendous
consequences. However, it is possible to outline the objective and
subjective characteristics of this historical event. It is no secret that Russia played an integrative role, being a kind
of backbone in the genesis and architecture of the unitary state. Among other factors, the subjective element also played a role in the disintegration of the USSR. This element could be analyzed in terms of persons and situations, but this is not of the greatest importance for the purposes of the present study. The dialectical development of Kazakhstani-Russian relations in the
process of the sovereignty of Kazakhstan showed the correctness of the view
of this process as a consequence of the disintegration of the USSR and
subsequent objective course of events in the post-Soviet space. It is
important to stress, in the context of our study, the consistent efforts of In turn, the declaration of sovereignty was only the beginning of a
complex process of real sovereignty for the post-Soviet countries. Using The parliamentary system developed in Kazakhstan as a significant part of a general political reform; it went through many political conflicts and problem situations. The Supreme Soviet of Kazakhstan, consisting of 360 deputies elected in The first professional parliament of Kazakhstan, numbering 177
deputies, was elected in March 1994. Its fate was contradictory and
dramatic. Though elected for a term of four years, this Supreme Soviet was
not quite ready for routine legislative work; besides, there were
significant violations of procedure during its election, and it was
therefore dissolved on a decision of the Constitutional Court in March The country's political parties and movements took an active part in the elections in December 1995 of a new parliament consisting of two chambers, the Senate and the Mazhilis. Compact and professional, the new parliament is, in the view of many jurists and politicians, quite capable of fruitful legislative work and is absolutely in keeping with the democratic principle of the division of powers. The constitutional process in the republic also developed in a dynamic
way. This process consistently, step by step opened up new areas of the
rule of law, which corresponded to the vital periods in the development of
the republic. The path traversed from the first Constitution of sovereign Decisions on a wide range of problems in interethnic relations, the
dynamics of their development from the Forum of the Peoples of Kazakhstan
and the rise of national-cultural centers to the convocation of the There is no need to emphasize the importance of Russia as a magnitude
of world order and Kazakhstan's closest neighbor. It is known all too well
what complex, and at times painful, political, economic, and social
processes took place, and are still taking place, in both states. During
the hundreds of years of cohabitation on vast adjacent territories, President Nazarbayev repeatedly stressed that Russia is our main strategic partner, and the special relationship with Russia helps in the solution of the most important current and long-term tasks in the development of Kazakhstan. It may be stated today that a qualitatively new level of relations is now taking shape in the relations between Kazakhstan and Russia, characterized above all by the beginning of a practical realization of the high integration potential accumulated in the public consciousness of the two countries. It is tills area in Kazakhstan's foreign policy, one that provides the key to the formation of a new shape of the Kazakhstan state and is closely connected with the policy of integration, that is an absolute priority for Kazakhstan. Under the new historical conditions, the stable and dynamic development
of Kazakhstani-Russian relations rests on a serious legal basis. That basis
is the treaty of friendship, cooperation, and mutual assistance between the However, the everyday practical experiences of bilateral cooperation
show that the joint efforts of the two countries must be constantly kept
up. Closer integration, especially in the economy and in the humanitarian
sphere, is necessary in the interests of democratic reform both in A considerable share of the economic potential of Kazakhstan and Russia
is employed in supporting production in the two countries. In recent years,
integration links have dynamically developed not only on the interstate
level but also between individual regions and enterprises. Besides, our
peoples are linked by centuries-old spiritual and cultural ties, as well as
by kinship and purely human relations, which must be constantly reinforced. Various aspects of economic and financial relations, problems in state security and military-strategic cooperation, and humanitarian problems may, as practical experience has shown, be positively resolved only if mutual interests are taken into account, and if there is a conscious desire for fruitful and mutually advantageous cooperation. On March 28, 1994 a package of 23 treaties and agreements were signed, five of them by the heads of state. These are, above all, the treaties on further deepening of economic cooperation and integration, on military cooperation, an agreement on the main principles of using the Baikonur launching site, and a memorandum on the issues of citizenship and legal status of citizens of the two countries. These steps are in keeping with the integration efforts of our states
in the CIS framework, too. The ground has been laid for the economic and
settlement unions, and the Interstate Economic Committee - the Economic Other agreements, which significantly increase the horizons of
multilateral and bilateral cooperation, also promote the progress of the The historical experiences of good-neighborly relations between LIST OF USED SOURSES 1.Mansurov. T. “Relationship between Kazakhstan and Russia”, 1998, /p.p178- 2. Esengalin. N. “ External Economy” 1999, /p.p 12-45/ 3. Peter Bophinger. “Kazakhstan 1993-2000” 2001, /p.p171-184/ 4. Luts Hoffmann. “ Kazakhstan During the Transition”1998, /p.p202-235/ 5. World Bank “Annual Report” 1998, /p.p 252-259/ 6. World Bank “Annual Report” 2000, /p.p153-159/ 7. National Agency of Statistics “Semiannually Report”2001 /p.p 159-175/ 8. Hella Engerrer “Research of relationship between Kazakhstan and Russia during the Transition” 1999 /p.p 25-50/ 9. Katerina Dittmann “Tendency of Economic Development of Kazakhstan”, 1998 10. Todaro “Transition in CIS countries 2001 /p.p 25-31/ 11. Mishkin “Relation Between Russia and CIS Countries 2001 /p.p 23-30/ 12. Krugman “International Economies” 2001/2 /p.p 31-35/ 13. EBRD “Annual Economic Report ” 2001, /p.p 123-159/ 14. Daniel Gross “Economic Transition in Former Soviet Union” 1995 /p.p 145- |
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