Экономические науки/13.Региональная экономика

Е.Е. Dzholanov , Y. M. Ibatullin

M.Kh. Dulaty Taraz State University

 

Economic integration of Kazakhstan on the Great Silk Road

 

The idea for the joint construction of economic zone of the Silk Road was announced in September 2013 in Astana by Xi Jinping, the President of China. Analysts later praised his proposal as a geopolitical project of Beijing, which was developed in the form of a certain answer to the existing Central Asian integration programs from Russia or the United States.

China's initiative is of interest to Kazakhstan in terms of the economic component and the opportunity to develop transport and logistics cooperation. In addition, the very existence of a long-term strategy of China in the region will allow Central Asia to maintain and even increase the interest of world powers. Another aspect, that is attractive to Kazakhstan, is the ability to expand cultural and humanitarian cooperation.

The current global geopolitical turbulence, intersecting centrifugal and centripetal processes in international relations and new approaches to security force to look at Central Asian region in a new way. For the first time, Central Asia emerged as a separate region in the work of geographer Alexander von Humboldt in 1843. From the point of view of contemporary geopolitical analysis, the region is referred to as Hinterland, i.e. an area remote from Rimland (coastal area) and Heartland, which according to Halford Mackinder coincides with the Russian South Siberia. With regard to the Great Silk Road, the name was also been proposed by German scientist Ferdinand Richtgofen in 1877 [2].

Historically, the region was an important corridor between the Eastern Mediterranean, India and China, Persia and the Caucasus. XIX century was associated with confrontation between the Russian Empire and Britain for influence in Central Asia. Anglo sphere, presented by the United States and Great Britain, together with the junior partner in the face of the EU changed its tactics but not strategy. In recent years, the method of "smart power", which combines both rigid methods from military intervention to economic sanctions and gentle approach, based on a flexible diplomacy and humanitarian programs, has reached its goal of undermining the possibility of developing their own path of development for the countries of Central Asia particularly those that are restricted in natural resources and without infrastructure.

China is also interested in the pacification of the region, in order to secure transit routes for energy. Beijing successfully intercepted a narrative of the New Silk Road, and uses this concept to ensure their interests. In 1985, together with Pakistan, a project Karakoram Highway was put into action, and in 1995 an agreement was signed between Pakistan, China, Kazakhstan and Kyrgyzstan. Beijing deliberately holds diversification policy in the field of transport corridors. At the moment, there are three ways to Europe from China: 1) Trans-Siberian Railway (13 000 km. From the border with Russia to Rotterdam); 2) sea route from the port of Lianyungang to Rotterdam (10 900 km.) and 3) the route Shanghai-Rotterdam (15 000 km.). New direction, over which China is working, is Asia-Europe freeway and several joint projects called "continental bridge program" that will link China with Eurasia, Eastern Europe and the Mediterranean. In other words, there is a confrontation between China's efforts to revive the historic Silk Road in the new version and the US-led initiative, which is based on the idea of free trade with relevant geopolitical imperatives.      

At the 25th meeting of the Foreign Investors Council, held 22.05.2012 The President of the Republic of Kazakhstan N.A. Nazarbaev announced the beginning of large-scale project "New Silk Road": "Kazakhstan must revive its historical role and become the largest business and transit hub of the Central - Asian region, a bridge between Europe and Asia ... The first - it's advantageous geographical position; the second - a constant traffic growth; third - direct access to the markets of the Customs Union and the fourth - a favorable investment climate ... competitive advantage of the "New Silk Road", which will be based on the implementation of the "principle of 5C - speed, service, value, safety and stability. As a result of their territorial and functional linkages there must be a synergistic effect ". Chinese President Xi Jinping who visited Kazakhstan on a state visit on September 6-8 this year, talking about the importance of the project "New Silk Road" , said that in the area of "Silk Road" is home to three (3) billion people, the local regional market is unprecedented in its scale and potential. He urged the concerned parties to remove barriers to facilitate trade and investment. He also noted that China and Kazakhstan need to create an "economic corridor Silk Road". [3]

To date, the main challenges of transport and logistics system of Kazakhstan are the trans nationalization of the world market, increasing export and transit potential of Kazakhstan and establishing the growth of competitiveness of alternative routes. Through improved production and economic activity in Kazakhstan, the country is to strengthen the intermodal system, complicating the supply chain, economic diversification and non-discriminatory access of Kazakh products to global markets

. Kazakhstan is in the geostrategic position in Eurasia, having access to both nearby and distant markets. This dictates the call for the development of transport and logistics system. An important step towards this goal was the decision of Kazakhstan to revive the route of the  Great Silk Road. To do this, all the conditions are ripe and there are prerequisites, as the rapid development of transit traffic between Asia and Europe, where the share of China accounted for 50% of turnover, the development of an integrated transport strategy ("Great Leap Forward") and the rapid development of China's western provinces «Go West» namely Xinjiang, the accelerated development of China's western provinces. It is known that in 2010 the volume of trade between the EU and China amounted to more than $526 billion. Kazakhstan's share in this is relatively small. Taking into consideration that Kazakhstan supports the focal point of the Eurasian connection with the Middle East, it is necessary to create conditions for the development of the "New Silk Road"

The main step to restoring the route of the Silk Road is the development of Kazakhstan's transit. In connection with this today when choosing a strategic route, one of the topical route area of the Customs Union is the creation of transport and logistics base for the development of economic relations within the Common Economic Space (hereinafter - CES). Here, the most promising is the creation of a unified transport and logistics company (hereinafter UTLC). An important element in the implementation of UTLC is a creation of a common market for transport services, integrated transport system and implementation of transit potential of the countries - members of the Eurasian Economic Community.

Potential route  of "New Silk Road"http://www.kazlogistics.kz/upload/potencialnyi_marshrut.jpg

It is necessary to provide a guaranteed supply of quality through transport and logistics services on the principle of "one window" in respect of containerized cargo on the whole of the EEA, operation and development of key transit corridors passing through the Customs Union countries, to modernize and to ensure the development of key transport assets EEA.

The main cargo on the "New Silk Road" will be from East to West. Western and central provinces of China are on direct rail links with the EU on the rail route through the station Dostyk. Now the delivery of goods to Europe by railway is on average 2-3 times faster than by sea, which is a significant competitive advantage for the transport of goods critical to the speed of delivery to the counter or assembly plant. In addition, the transport infrastructure of East China (railway communication with seaports, river traffic on the Yangtze) is heavily congested, leading to an increase in time for the transportation of goods from the western and central provinces by sea [4].

As a result of the project "New Silk Road", it should engage players of all forms of ownership. The Government of Kazakhstan approved a comprehensive action plan to implement the project "Kazakhstan - New Silk Road". ITC is determined by general coordinator for the implementation of tasks for the development of transport and logistics system, JSC "NC" KTZ” is defined by a logistics operator. JSC "NC" KTZ " is the basis for the formation of a multi-modal logistics operator of transnational scale with full-assets and competencies that can integrate the whole chain of delivery. Also, the National Company is a mediator between business organizations and government agencies to address emerging issues and problems.

For the purpose of an integrated approach to solving the problem of the decision of the Head of State on the establishment of Kazakhstan in 2016 as a trade and logistics business hub of the region, as well as to meet the balance of interests of all transport subjects, the Union of Transport of Kazakhstan «KAZLOGISTICS» (hereinafter - the Union) was created. Union was created to bring together public transport associations, transport logistics centers, enterprises of road, air, sea and rail transport in Kazakhstan. One of the objectives of the Union is the interaction with government agencies and especially with the Ministry of Transport and Communications.

In May 2013, the Union of Transport of Kazakhstan «KAZLOGISTICS» signed a joint action plan between the Union and the Ministry of Transport and Communications of the Republic of Kazakhstan, which was based on the Book of Problems of all modes of transport,  formed by a union in December 2012. This is a mechanism  of system processing  of the problems, collecting information, which requires the state to respond, ongoing monitoring  problems and factor analysis with the removal of the workers in the bodies of the Union to determine the causal and necessary recommendations on personnel, regulatory and organizational solutions. These materials are classified to carry out a comprehensive analysis of the need for a regulatory framework appropriate changes and the development of new regulations. Only such a meticulous approach will form the basis of trust in the actions of businesses in the transport and logistics sector, will give confidence to consumers and carriers in the reliability of their services in the market.

Regarding the problems of maritime transport the need is noted for a Port Authority, the need to improve sectoral legislation and bring it into line with international requirements, a comprehensive study of transport of goods from the river port of Atyrau to the Azov Sea and the Central regions of Russia and back, taking into account the time and cost of transportation, specialization of courts and terms of navigation, the absence of state regulation in the seaports of the Republic of Kazakhstan, as the absence of long-range identification and Tracking of ships (LRT). However, training of the personnel in HEIs of Kazakhstan needs some work, compliance with international level and create Aktau training center for professional personnel for maritime transport. Constraint is the lack of the country's "white list", according to the IMO Convention, entitling to train specialists for maritime transport in Kazakhstan [5].

At the same time there are problems in  training personnel for civil aviation, finance implementation of international aviation standards «E Freight», ensuring the supply of fuel at all airports in Kazakhstan without intermediaries and support the competitiveness of the Republic of Kazakhstan in the maintenance of international air cargo. Of particular concern of local companies is the adoption by the Board of the Eurasian Economic Commission documents that limit the competitiveness of the country, related to the import and transit of goods and coming from the territory of the Customs Union to the Republic of Kazakhstan.

Relevant are becoming Kazakhstan brand motor carriers, the seriousness of the problems of road transport infrastructure and the urgency of solving these problems, in particular, the question of protection of the market of international road transport. Efficient transport control for vehicles traveling in Kazakhstan is not provided. Consequently, the Kazakhstan market of transport services is captured by foreign operators; this violates the principle of fair competition, causing significant social and economic damage to the country. In order to protect the national road transport market, Transport Control Committee MOTC of RK should take measures to strengthen control over all foreign travel of vehicles through the territory of the Republic of Kazakhstan.

 The competitiveness of domestic international carriers is of particular concern. The rolling stock is in poor condition, as it has hardly ever been updated since 2009. This is due to the fact that zero customs duties on the purchase of commercial vehicles from third countries were canceled by the Eurasian Economic Commission. At the same time, other countries of the Customs Union (Russia, Belarus) did not stop updating vehicles. Today, the number of cars in Russia - 30 000 vehicles; Belarus - 11,700 vehicles; Kazakhstan - 10,000 vehicles. Based on the above data, it is clear that in Belarus the number of vehicles is more than in Kazakhstan. Although, until 2009, the situation was the opposite. This is also due to the fact that in 2009 zero tariff rates for the purchase of vehicles from third countries were restored by the Decree of the President of Belarus. For the purpose of updating and maintaining the rolling stock of domestic vehicles on international traffic, it is required to take similar measures on the state support [7].

Among the problems of rail transport in Kazakhstan, there is a lack  of the authorized body for the inspection of the technical condition of containers, inaccurate cost calculation methods and composition of services, timing of works on overload and failure to ensure the safety of transported goods, delays in the supply wagons. A result of successful reform of the railway sector is the attraction of transit cargoes through pilot runs of container trains in areas of "East-West", which resulted in launching this year a regular container train "Chengdu-Lodz", "Wuhan - Pardubice", and in particular cargo container train "Chongqing-Duisburg" design which now takes 1.5 hours. The system of electronic interaction between CCC and JSC "NC" KTZ" in the tool frames "Dostyk - Green Corridor" and " E-Train "(procedure of prior information about the goods) is introduced through the station Dostyk. It is important to note the advantages of the "Electronic Train", such as the fast speed of movement, performing cargo transportation within the required time. All this are indicators of the high level of stability and service, which in itself is of great interest and trust relationship shippers.

The tools to address the problems include: the establishment of working groups in the frameworks of a round table by region, meetings, the imposition and discussion of problems, the subsequent systematization of the protocols, the opening of the Corporate Fund «KAZLOGISTICS», maintenance of transport and logistics magazine "Trans Logistics» and information analytic portal «www.kazlogistics.kz», which houses the Civic Center "People's Control tRANSPORT" for the transparent conduct of public hearings, investigate disputes for all transport modes, direct access customers and all participants in the transport and logistics process for applying to the Union , on violations or omissions by the competent state authorities; covert market research on the principle of «MISTERY SHOPPING», development and periodic updating Books problems for each mode of transport, which reflects all the current issues in transport development, influencing the occurrence of this problem factors, solutions and decision-makers.

Another platform for promoting the idea of the "New Silk Road" is the info-communication platform G-Global, which has a strategic importance for the unification initiatives of the Head of State in a single "Mega-project". As part of this global project, the revival of the "New Silk Road" is a very practical tool for the integration of the various countries of Europe and Asia, where Kazakhstan is interested not only in the development of transport and logistics infrastructure, but the most important thing in creating opportunities for European and Asian countries in efficient trade and exchange through the "New Silk Road". [6]

The idea of the "New Silk Road" is in constant search and dialogue. There are prospects of speed container line “East - West and International road transport." The Forum provides an open platform for interaction with international players. This is an opportunity to present transport and logistics potential of the country, with the reflection of the problems and solutions that will trust in the route, technology and management.

The general concept of the revival of the status of the Silk Road in Kazakhstan is based on the establishment of a global confidence in the project "New Silk Road". The objectives can be achieved only by combining the efforts of all participants, working as a unit. The concentration of forces will provide the basis for increasing transit traffic and recognition by the international community of Kazakhstan as a major logistics hub in Central Asia. In the unity there  is  power!

 

Literature:

1.                 О Государственной программе Республики Казахстан "Возрождение исторических центров Шелкового пути, сохранение и преемственное развитие культурного наследия тюркоязычных государств, создание инфраструктуры туризма": указ Президента Республики Казахстан: [принят 27 февраля 1998 г. N 3859] // Казахстанская правда – 2007. - №1

2.                 Статистический ежегодник Казахстана/Статистический сборник/Алматы: Агентство Республики Казахстан по статистике, 2012.

3        История Казахстана с древнейших времен до наших дней. (очерк) Алматы: Дәуір, 1993.

4.     Экономика туризма: Учебное пособие. – М.: РМАТ, 1996. – 85 с.

5.     Кулибаев А. - Туризм на Шёлковом пути как фактор устойчивого развития (на примере Алматинской области).//Транзитная экономика- №4-5,2000г.- с.48

6.     Трансконтинентальный коридор "Западная Европа - Западный Китай" - новый путь в Европу - www.nomad.su

7.     Назикова Ж.А.  Железнодорожный транспорт Казахстана Поиск 2010 г   1 с54