Askar A., Akhmetova A., Azylkanova S.A.

L.N.Gumilyov Eurasian National University


                    On the question of holding the EXPO-2017 in Kazakhstan


         As part of the Strategy - 2050 the Republic of Kazakhstan has committed itself to move towards a "green economy", which is defined as an economy with a high level of a quality of life, a careful and rational use of natural resources for the present and future generations [1].

According to experts, by 2050 it will allow Kazakhstan to increase the country's GDP by at least 3 percent and to open 500 thousand new jobs. "Green" energy sources should make up 50% of the total energy produced in the country. Expo should become the means of Kazakhstan's transition to a "green economy", becoming the platform for innovations in the global energy industry [2].
          The world specialized Expo exhibitions have become a significant event in the material and spiritual life both for the member countries and the international community as a whole. It is not by accident that the largest of them are estimated by contemporaries as the most important focus of interest of humanity. The ideology of the era can be viewed in them. They sum up the results of the century. The statistics of the World EXPO exhibitions indicate that the costs of the state-organizer on the construction of the exhibition complex, of the necessary infrastructure in the city and the region are partially paid off in the course of the preparation and holding of exhibitions, but mostly during a further usage (within 5-7 years) [ 3].

It is known, in November 2012 as a result of the secret ballot at the 152nd General Assembly of the International Exhibitions Bureau in Paris, the capital of Kazakhstan, Astana, with the most votes (103 out of 161), was ahead of the Belgian city of Liege and it has been declared the place of "EXPO-2017". The upcoming exhibition will be held under the slogan "Energy of the Future". It will cover one of the most topical issues of concern of the international community - alternative energy sources. The exhibition has its logo. This will be the first international exhibition, which will be held in the CIS and Central Asia.[4]
The following objects will be built on the territory of EXPO - 2017:
1. The pavilion of Kazakhstan in the form of a sphere with a diameter of 80 meters, with the lower platform of more than 90 meters is the main building of the exhibition;

2. International, thematic, corporate pavilions;

3. Trade, entertainment and service facilities;

4. Open stage 3000 people can observe events;

5. There will be a conference center, a press center, "covered city", apartment houses and hotels outside the zone.

Overall, there will be 38 constructions at the site.
The World Exhibition in Astana will last for 3 months. 100 countries and about 10 international organizations will be able to take part in it. It is expected that more than 2 million people will visit the exhibition [5].

At the moment, 26 countries, including Russia, Belarus, France, Austria, Switzerland, Italy, Monaco, Kyrgyzstan, Uzbekistan, Turkmenistan, Azerbaijan, Georgia, Armenia, Tajikistan, United Arab Emirates, Egypt, Lithuania, Turkey, China, Angola, Germany, India, Senegal, St. Kitts Israel and Nevis have confirmed their participation in the exhibition. In addition, four international organizations - UNESCAP, OECD, UNIDO, the United Nations submitted applications.
The total cost of Expo 2017 is 3 billion US dollars. 283 million Euros have been  allocated from Kazakhstan's state budget. By the beginning of March 2015 investments amounting to 127 billion tenge have been attracted. EXPO-2017 has been invested by the companies such as «Basis – A», «BI Group», «Sembol», «SredAzElektroMontazh», ABK «Kurylys - 1», «Mabetex Group», company ADS, «MegaManagement», AFF «Mabco construction s.a. », LLP« AVENUE» and others. The company «Sumsung» and the Construction Company «Bouygues» and three other foreign companies have also expressed an interest in investing in EXPO. The number of domestic manufacturers whose products will be used in the construction is 85. They are "Kazahkabel", LLP "Kazakhcement", LLP "Kemont", LLP "Polius", LLP «Korund LTD», LLP "Vostok-Universal" and others [6].

During the preparation for this grand event Kazakhstan necessarily takes into account the experience of other countries. Here are the positive and negative examples of the exhibition. Positive examples, in this case, are Japan and China. During EXPO-2005 in Aichi (Japan), the organizers received the net income of $ 51 million, plus $ 152 million was invested by corporate partners of the exhibition. Expo-2010 in Shanghai brought $ 12 billion in profit for the organizers. The Chinese authorities did not disclose the revenue and the costs of the preparation for the event, but unofficially the investment, taking into account the cost of urban infrastructure, were estimated at $ 40 billion.
As a negative example, let us take the Hannover Fair in 2000, where there were only 18 million people, instead of the planned 40 million visitors. The loss was, according to various sources, from 1.2 to 1.5 billion Euros, and a small number of pavilions were used after the exhibition. Some of the constructions of the 2008 exhibition in Spanish Zaragoza were also not used [7].
Initially, the main rival to host EXPO-2017 was Belgium, because this country has participated in international exhibitions since 1897. The total number of its exhibitions is 8. The largest exhibition was held in 1958 in Brussels with the Atomium as a symbol. Currently, this structure is one of the main attractions and the symbol of the capital. Atomium symbolizes the atomic age and the peaceful use of nuclear energy. Sometimes this structure is called the Brussels Eiffel Tower. There were some problems with the preparation for this exhibition, because there were no sufficient funds for it. To hold the exhibition, the Belgian government was forced to use the funds, which they planned to spend on public holidays. For example, the anniversary of the Belgian Revolution, the national Independence Day, has been widely celebrated every 25 years since 1855. The Belgian Government refused to hold the holidays to use these funds for the construction of exhibition pavilions [8].
Another famous structure built for the Universal Exhibition is the Eiffel Tower in France. Paris held the world exhibition in 1889, which was timed to coincide with the centenary of the seizure of the Bastille. The construction was supposed to be disassembled at the end of the exhibition. The hugeness of the construction saved the tower from the planned demolition (20 years after the exhibition), since it was dangerous to demolish it. In 2014 the French celebrated its 125th anniversary. The Eiffel Tower is the fourth most popular tourist destination after Disneyland visits, Notre-Dame de Paris and the Louvre Museum. 7 million people visit the
tower annually [9].

Kazakhstan also encountered some problems, which were later resolved, the presentation of the Expo flag at the 155th session of the General Assembly of the International Exhibitions Bureau has been the evidence of that. Now the country has every right to involve foreign parties, to negotiate with corporate investors, to promote the image of the exhibition. Moreover, the problems with the start of work to prepare for the construction of facilities to the exhibition are being solved: reclamation, fencing the area, laying engineering networks with the supply of electric power, delivery of missing building materials, complex steel structures for unique objects, etc.
Based on the foregoing, we consider the potential advantages and disadvantages of holding the EXPO-2017 in Kazakhstan (Table 1).

Table 1 - The potential pros and cons of holding the EXPO-2017 in Kazakhstan

Pros

Cons

- Further diversification and modernization of the economy
- Infrastructure development
- Development of small and medium-sized businesses, creation of new jobs
- Development of tourism, hospitality, services
- Increase awareness of the country
- The development of clean energy
- Transfer of the objects of the exhibition to the scientific laboratories of Nazarbayev University later on
- Exhibits and stands will be used as permanent sites for the demonstration of innovative developments

- Temporary employment
- The high cost for the exhibition
- Risk of not covering the expenses
- Probable inefficient use of the buildings in the territory of the exhibition in the future

Note - compiled by the authors





As it can be seen from Table 1, there are more potential advantages from conducting EXPO 2017 than the disadvantages in the long term. Although, it is worth noting that no event of such level can be accurately forecasted by the real payback.


Thus, "Expo-2017" is a chance for the Republic of Kazakhstan to show what the country is capable of. In addition, by holding the exhibition the state will have a real opportunity for step by step implementation of the most complex and high cost events to develop alternative economy, high-tech and renewable energy within the framework of the Concept of the Republic of Kazakhstan for the transition to a "green economy" [10].

 

 

 

 

 

 

 

 

 

 

 

 

References


1. Missive of the Head of the State Nursultan Nazarbayev to people of Kazakhstan. November 11, 2014, "Kazakhstan-2050 is our strength"
2. Presidential Decree of May 30, 2013 ¹ 577 "Concept for the transition of the Republic of Kazakhstan to the" green economy ", Astana, 2013
3. https://expo2017astana.com
4. htpp: // expo 2008.ru/contact
5. https://ru.wikipedia.org/wiki/world_exhibition_(2017)
6. http://www.iak.kz/ru/blogers-kz/baglan/expo-2017/
7. http://www.matritca.kz/news/20161-nursultan-nazarbaev-cel-ekspo-2017-demonstraciya-dostizheniy-kazahstana-mirovomu-soobschestvu.html
8. https://expo2017astana.com/en/proekt-ekspo-2017
9. http://www.akorda.kz/ru/page/page_expo-2017-v-astane_1356073251
10. https://expo2017astana.com/news/2014/10/talgat-ermegiyaev-mifyi-i-pravda