Ambassador Abdraimov: Kazakhstan shifts to knowledge-based economy
Kuvituskuva:
Kazakhstan wants to serve as a gateway to the entire Central Asian market.
Text Patrik Saarto
Kazakhstan is known for its oil and mining industries, but it’s time to update the economy’s profile. The foreign trade model based on exporting natural resources and importing technology is outdated, says Kazakhstan’s new ambassador to Finland, Azamat Abdraimov.
– We have decided to transform our economy into a knowledge-based economy, Abdraimov said in his speech at an EastCham member event in September.
By Ambassador Abdraimov, President Kassym-Jomart Tokayev has initiated ambitious reform agenda in Kazakhstan. In the span of four years, Kazakhstan has effectively carried out major reform packages, overhauling the political and economic systems. Experts from Bloomberg and Moody’s have highlighted the government efforts to improve the business climate, attract investment, and diversify the economy away from oil and gas. They positively evaluate the measures taken to create a favorable business ecosystem, reduce bureaucratic barriers, and the progress made in public governance and anti-corruption efforts.
On September 9 2023 Moody’s raised the long-term rating of Kazakhstan from Baa2 to Baa1, with forecast “Stable”.
Natural resources will continue to play an important role in the economy, but Kazakhstan wants to focus on local processing of these resources. Of course, this requires a significant amount of foreign expertise and technology, but the goal is also to attract foreign investments.
– We are still selling our resources and buying machinery and equipment. Now we are trying to relocate parts of production to Kazakhstan. We try to develop our own production. It’s very important for Kazakhstan, Abdraimov explained.
“We try to develop our own production.”
Abdraimovin mukaan Kazakstan tavoittelee ulko- ja taloussuhteissaan tasapainoa eri ilmansuuntien kanssa.
EU is the main trade partner of Kazakhstan
Kazakhstan’s strength lies in its wide range of critical raw materials — out of 34 materials, listed by EU, 16 are found in Kazakhstan. According to Abdraimov, there is intense international competition for these raw materials, and, for instance, China is very interested in what Kazakhstan has to offer.
Kazakhstan’s approach is to practice a so-called multi-vector foreign policy, meaning it cooperates equally with different partners in the world. With EU, Kazakhstan has agreed on a strategic partnership concerning raw materials and hopes that European companies will invest in the exploration, production, and processing of these materials.
The EU is Kazakhstan’s largest trade partner, with a trade turnover of 41.4 billion US dollars. In Northern Europe, Finland is a key partner for Kazakhstan.
– It is gratifying that the Finnish government’s program adopted last year mentioned Central Asia and set the task of strengthening economic relations with the countries of this region, and we very welcome the opening of the EastCham Finland office in Almaty, the Ambassador noted.
A Gateway to Central Asia
Abdraimov emphasizes that Central Asia as a whole offers a developing market of over 80 million people. The region has a young and growing population, and its geographical location is highly strategic.
– We see ourselves as a gateway to the entire region, Abdraimov says.
“We see ourselves as a gateway to the entire region.”
The Ambassador says that Central Asia is rapidly turning into a key link in global transportation communications. Kazakhstan, together with its partners, is actively developing the Trans-Caspian International Transport Route, known also as Middle Corridor, where the volume of transportation can be increased fivefold in the medium term.
Newly appointed Ambassador of Kazakhstan to Finland Azamat Abdraimov introduced himself to EastCham members in Eteläranta on September 26.