ASEM: Kazakhstan at heart of EurAsia

Kazakhstan's impetus has not passed unappreciated at the Asia-Europe Meeting (ASEM) 2014, in Milan, Italy 16-17 October. Although largely focused on problems of the conflict resolution in Ukraine and the security of energy supplies, the tenth meeting of the representatives of the countries from two continents had sufficent space to engage into an exchange of successful models of co-operation. 

The developments between Europe and Kazakhstan attracted attention as one of the most fruitful, bypassing $50 billion in trade. The Central Asian giant has been the only country from the region invited to this high-profile event, becoming its 52nd partner. The Kazakhstan attendance received a warm welcome on behalf of participants and organizers, in particular European Council President Herman van Rompuy.

The ASEM focused on financial and economic co-operation, trade and investment; issues of a global concern as terrorism and organized crime, epidemics; a considerable attention has been devoted to discussion of international affairs. Within complex international context the 'Eurasian idea' stays the key element in the development of the relation between Asia and Europe, becoming exceptionally valuable in the context of the global financial crisis, that still has a negative impact on the international markets, including Europe and Asia.

Reflecting upon the situation, Kazakhstan President Nursultan Nazarbayev (pictured) underlined the paramount significance of the exchange and co-ordination of efforts of the international community in overcoming the recession, that touched many countries, he stressed that the economic improvements are directly dependent on the capacity of leadership to engage in common work, with international initiatives such as ASEM providing a solid platform.

The intense exchanges with Britain, Japan, Germany, China, South Korea. Hungary, Italy and the Netherlands – the latter the biggest investor in Kazakhstan so far (22 % FDI) – took place within the ASEM framework and confirmed a profound interest in co-operation with Kazakhstan. The success came not by chance, but as a result of tailored policies, starting with measures to improve the investment climate this summer: stabilizing tax rates, introducing tax exemption and facilitating visa regimes, all of these brought visible results. This encourages investments in Kazakhstan to open new perspectives to combat recession, which creates incentives for economic development.

The interest in smart investments in Kazakhstan manifested at ASEM is rooted in the country's multi-vectoral policy aimed as progressing in engagements with Russia in Eurasian Economic Union (EEU) in May and with the European Union, while signing the enhanced Agreement in October.

The Partnership and co-operation agreement (PCA) signed in Brussels prior to the ASEM meeting will create a unique opportunity for Europe to exchange with the EEU via Kazakhstan, that is truly valuable in the context of the deteriorating relationship between Russia and the West over Ukraine. Some analysts labelled this approach by Kazakhstan as a determination to become the 'Switzerland of the former-Soviet Union'.

Lined with the EU's support of Kazakhstan's accession to the World Trade Organization (WTO), this disposition will continue to attract investment creating a positive economic impact, further expanding and deepening co-operation, as well as identifying new ways of interaction.

In his address at ASEM, President Nazarbayev called for the unification of the European and Asian agendas in response to global challenges, embracing the integration potential of the Eurasian region. The necessity to change the paradigm for international co-operation remains paramount, stressed Nazarbayev, criticizing protectionism as an obstacle on the way to real solution of the current crisis.

The transformation of the global financial architecture, overcoming imbalances in the financial sector and the development of an effective model for the regulation of international capital flows is the other tool to overcome the crisis. For example, Almaty – the southern capital of Kazakhstan – has a potential to become a knot, to tighten Europe and Asia together in a new dynamic international financial centre, and the revival of the Silk Road will provide Europe with the shortest and safest route to Asia to boost trade.

Asia and Europe need to rediscover each other and build a fundamentally new basis of co-operation.  A platform for international action in the field of economics and finance could be put forward towards the Kazakhstan initiative, 'G-Global'.

Kazakshtan's readiness to provide all possible support to promote dialogue and co-operation on the continent sounded exceptionally valuable amid the debate on conflict resolution in Ukraine – it should be resolved exclusively through the negotiation process, Nazarbayev affirmed, and Kazakhstan is doing its utmost to promote peace and stability in Eurasia.

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