Economics / Macroeconomics
Idrisova P.R.
Taraz State University named after M.H. Dulati
Economic
relations between Germany and Kazakhstan
Kazakhstan
and Germany today are priority partners and mutually beneficial cooperators in
bilateral. Economic and political integration, as an imperative of modern
times, should be an example for all states of the modern world. Important to
notice that, strategic partnership between Kazakhstan and Germany steadily gain
strength and scope and at the same time cover practically all areas of
activity. Trusting, constructive and predictable, now become the distinctive
quality of the Kazakh-German relations, which are expression of the cultural
communication between people. In addition, coincidence of positions on the
major issues of foreign policy, leads us to contribute harmonization of
economic, social-political and humanitarian capacities in the friendly bilateral
relations. Proof of it, is the Message from 2007 President of Kazakhstan
Nursultan Nazarbayev to the people of the republic: «New Kazakhstan in the new
world ... clearly arranged in all aspects of multi-vector foreign policy in our
country». Among of them - a priority of bilateral interstate relations with EU
partners, in particular with Germany in relation connected with Kazakhstan.
Germany targeting aim to promote independence and stability of Kazakhstan, its’
democratic development and economic prosperity as an equal partner of
international relations. Germany is interesting in expanding trade with
Kazakhstan, in the usage of investment opportunities and access to raw material
sources. An important element of bilateral relation was living in Kazakhstan
for more than 180 thousand of ethnic Germans. At the same time, primary
importance in establishing and strengthening political and diplomatic relations
with Germany, as the industrializing country of the European continent, was a
fact of economic cooperation, where the Kazakh side made some efforts to ensure
the receipt of foreign investments and new technologies, which is needed for
the structural reforms and effective enhanced the economic potential of
Kazakhstan. Confirmation of fact is speech of the President of the Republic of
Kazakhstan Nursultan Nazarbayev during his official visit to Germany:
«Kazakhstan - a key partner of Germany in Central Asia, and Germany -"
locomotive" in development of relations with the European Union». Federal Republic of Germany is one of the first officially recognized the
independence of the Republic of Kazakhstan December 16, 1991. Diplomatic
relation between two countries was established in February 1992. Therefore,
these relationships are maintained for 24 years. In September 1992the six
founding documents were signed, including such important political and economic
point of view, as a joint statement on the principles of relations and the
agreement on creation of the Kazakh-German Economic Cooperation Council. This
statement is a foundation of relations between the countries. In following
years, it actively worked and specifies a number of treaties and agreements.
Since 1993, from Germany side was assisted the development of Kazakhstan. The
assistance is covering two forms of cooperation: technical cooperation and
financial cooperation.
In November 1997comes into force
an agreement of financial cooperation. This agreement addresses the most
important issues of cooperation for Kazakhstan and Germany. It is based on the
implementation of technical cooperation on a part of Germany. Since that
Kazakhstan at the same time as a young state needed in development of various
sectors of the economy, and the priority is an agricultural, mining and
industry sector. For the development were necessary qualified personnel and
technical resources. Based on this document, Germany provide support to
Kazakhstan in the form of professionals: trainers, consultants, experts,
scientific and technical personnel; training and retraining of specialists and
managerial personnel. Germany supplied of materials and equipment, too. In
2001, it adopted such agreements as: "Provide labor market policy and
employment", "Promoting cooperation between specialized agricultural
universities and agricultural development in the reform process", "Promotion
of start-up entrepreneurs and small and medium enterprises", "Provision
of technical and administrative assistance to the Department of Foreign Aid
Coordination (DEAC) Agency for Strategic Planning (ASPR)», “Agreement on
Financial Cooperation” . These documents were given the opportunity to the
young state to get a loan for the development of projects such as:
"Support to investment in small and medium-sized enterprises (credit line
for the benefit of small and medium-sized enterprises)", "Efficient
use of renewable energy sources in the South Kazakhstan, financing social
infrastructure projects. Then, in the period from 2002 to 2007 it was concluded
12 bilateral and 23 economic documents. The main objectives of these agreements
were as follows: creation of new productions, building on metallurgical silicon
metal plant, biochemical products ,mechanical engineering, development of
transport, communications, information technologies , nano-technologies, infrastructure,
create high steel production limits.
The most significant
organizations which helps to develop social and economic relationships between
two countries are DIHK, AHK, DE international Kazakhstan, GIZ,
Intergovernmental Kazakh-German Work Group on Trade and Economic Cooperation,
Working group on cooperation with Kazakhstan within the framework of the
Association of Central and Eastern Europe, OMV, German Economic Club in
Kazakhstan, Kazakhstan-German Business Council. These organizations promote the stable development of the two economies.
Abundant flow of investments. They also organize activities such as the year of
Kazakhstan's economy in Germany and the year of the German Economy in
Kazakhstan, Day of German Economy in Kazakhstan and Day of Kazakhstan's economy
in Germany. and various forums and conferences within the framework of these
events. On which discussed the future development of economic relations. Days
of Kazakhstan's economy celebrates in the largest industrial and financial
centers of Germany. These activities contribute to the development of
partnership between representatives of small and medium-sized enterprises of
the two countries. The development of mutually beneficial contacts contributes
to the activities of Kazakhstan-SKO-German Intergovernmental Working Group on
Trade and Economic Cooperation (IWG). From July 2010 operates the Kazakh-German
Business Council for Strategic Cooperation .In close cooperation with
the German Chambers of Commerce and economic institutions on a regular basis
the Days of Kazakhstan's economy in the largest industrial and financial
centers of Germany, which contributes to the establishment and strengthening of
business contacts.
Kazakhstan and Germany are developing increasingly strong mutually
beneficial relations, which have great potential. The experience of bilateral
relations shows that Germany - a reliable trading partner and a stable
investor. On February 3, 2009 in the framework of the visit of President
Nursultan Nazarbayev of Kazakhstan in Germany Kazakh-German business forum was
held with the participation of the Head of State. There were signed commercial
agreements in the field of trade and industry with leading representatives of
the German economy. The main focus is on the development of the following
priority sectors: Agriculture and food industry; Light industry; Mechanical
engineering; Chemical industry; Building industry; Pharmaceuticals; Information
and communications technology; Space
activities.
Bank of Development in
Kazakhstan and the Department of the Ministry of Agriculture presented projects
and priorities for the sector of agriculture and food industry. Germany offers
its services in the field of industrial and production infrastructure,
telecommunications, road construction, agro-processing, light industry. In the
light of a recession in Europe, as well as the reduction (for various reasons),
the demand for German products in the United States, is an important partner of
the German engineering industry. For German companies are becoming increasingly
attractive Russian and Chinese markets. Therefore, it is important to focus not
only on the bilateral Kazakh-German economic relations, but also take into
account the transit potential of Kazakhstan in the context of the growing
interest in German businessmen to the markets of neighboring countries.
Companies from Germany, coming to Kazakhstan at first to find consumers which
are looking for their tools, machines, equipment, and electronic products,
electrical and chemical industries. President of Kazakhstan with the help of
Germany created special Economic Zone "Ontustik". Main goal of which
is to create favorable conditions for processing produced in Kazakhstan cotton
fiber to finished products with high added value. Textile companies in the
territory of FEZ providing significant tax and customs preferences. On the
territory of "Ontustik" is planned to build about 15 textile mills
that will process 100 thousand. Employers in Germany and Kazakhstan intend to
expand cooperation in the sphere of information technologies. On this September
29, 2006, which was stated meeting, where Kairat Bukenov with representatives
of the federal states of Saxony and Baden-Württember.
Creation in Kazakhstan of 30
new industrial productions with use of scientific achievements and with
implementation of advanced technologies in such branches as is provided:
metallurgy, chemistry, transport system, infrastructure, agriculture and
construction. Plants on production of railway coaches and wheel couples,
agricultural machinery, beam easels, metal manganese, modular constructions,
spherical easels, tubes of intra soil irrigation, a profile are profile PHV of
a tape, complex alloys, technical gases, steel bent lead outs, mountain
concentrating productions, chemicals, sheet power effective glass and foam
glass. So, Germany is interested in development of cooperation in power
engineering, telecommunications, construction, mechanical engineering and
agriculture. The result was the implementation of "KazAgro" and the
Claas company, with the support of Engineering Union of Kazakhstan, the project
to establish a regional center in Akkol Akmola region production line for the
assembly of agricultural tractors Xerion known brand. In the territory of a
special economic zone such German companies as ThyssenKrupp, Georgsmarienhuette
Holding, Bochumer Verein, Kranbau Koethen, FTD Fahrzeugtechnik Dessau GmbH,
Boehmer Armaturen, Chandler, IsoPlus, ISMD Holding registered the subsidiaries.
According to Nursultan Nazarbayev, in order to improve the development of the
Kazakh-German relations would be useful to intensify economic cooperation in
the following areas: The creation of new industries, such as construction of a
metallurgical plant for silicon metal production, development of steel
production higher limits, biochemical products, machinery, wood products,
building materials, etc. Cooperation in the field of new technologies.
Development of transport communications, information technology,
nano-technology and biotechnology. Development of infrastructure including
energy. Consequently, needs and opportunities of the two countries coincide
favorably, which is a key to the further progressive development of bilateral
relations.
In late January 2007 the President of Kazakhstan Nursultan Nazarbayev
made an official visit to Germany as well, and in September of the same year
with visit in Kazakhstan flew Horst Köhler, during the negotiations the
parties reached some agreements. The result of this meeting was contract about
"Joint statement of intent for cooperation in order to create innovation
and investment partnership for the period till 2010". According to
statistics, the trade turnover between Kazakhstan and Germany reached $ 2.9
billion $ for 2007 and for the first half of 2008 -. 1.5 billion $. In 2009
passed «Year of Kazakhstan in Germany" and in 2010 was celebrated
"Year of Germany in Kazakhstan». For these two important years were signed
memorandum of intergovernmental interagency and 34 economic agreements and
contracts totaling more than $ 2 billion EUR. Preparing professionals in
agricultural field, localization joint of ventures and expansion of trade,
economic relations and overcoming with the consequences of the economic crisis
were the main topics of these years. In 2009 in the framework of the" Year
of Kazakhstan in Germany "organized about 100 events in various areas. For
example, in Cologne passed the Kazakh-German forum. Speaking for the members of
the business forum, the President noted that Germany is one of the reliable and
priority partners of Kazakhstan. In consequence in our country was established
more than 800 enterprises with German capital. The number of joint ventures of
Kazakhstan with Germany more than any other country in Bilateral investment
cooperation covers areas such as: Oil and Gas ( "Kazgermunai",
"Proysag», «RWE - DEA», «Erdoyl - Erdgas Gommeren"); Mineral
resources ( "ekshon", "Ivikon"); Transportation and
communication ("Siemens", "MAN", "Mercedes-Benz",
Volkswagen", "Dialer-Chrysler", "Lufthansa",
"EADS", "Knauf", "Deutsche Telecom"); Agricultural
(BASF," AgroEvro ").
Due to the fact that the mining
sector is not a determining factor in the German economy, German companies
access to this market very difficult. In addition, small and medium-sized
German companies do not focus on the major long-term investment without some
guarantees. There are also difficulties with the financing of joint projects
with the Kazakh partners. Lack of coordination of actions of different
official agencies of Kazakhstan, the presence of a large number of licensing
procedures. Subjective obstacles in solving many problems and contradictions in
the legislation and guidance letters to various departments form the basis for
forming an opinion about Kazakhstan as a country with a still relatively high
level of risk in business. On the other hand, the cause of a problem is often a
lack of awareness of the German companies themselves. Kazakhstan - a country
with a fairly narrow consumer market, it plays a very important development of
regional cooperation with neighboring Central Asian countries. Removal of trade
and customs barriers, coordination of authorized bodies, the convergence and
the possible unification of customs and tax systems can make an attractive
market in the region, not only for trade but also for long-term investment. In
the light of a recession in Europe, as well as the reduction (for various
reasons), the demand for German products in the United States, is an important
partner of the German engineering industry, for German companies are becoming
increasingly attractive Russian and Chinese markets. Therefore, it is important
to focus not only on the bilateral Kazakh-German economic relations, but also
take into account the transit potential of Kazakhstan in the context of the
growing interest of German businessmen to the markets of neighboring countries.
Of course, it is necessary to
differentiate the scope of cooperation, taking into account the specifics of
both economies. Germany is not the investor, providing billions of investments
for the implementation of major projects. It is therefore necessary to define
such Kazakh-German projects to be achievable and to which may be involved not
only large corporations, but also as many SMEs as possible. So, for example,
German companies have good opportunities to participate in infrastructure
projects, as this sector of Kazakhstan's economy is very promising for
investments. It is necessary to pay attention to management development,
vocational training and qualifications of Kazakh specialists - it is in these
areas Germany has and will provide significant support in the future.
Kazakhstan and Germany have good opportunities for technological cooperation.
As the largest possible number of Kazakhstani entrepreneurs should attend and
participate in trade shows in Germany and other European countries, to enable
them not only to get acquainted with new technologies, but also to establish
contacts with potential partners, with their own possibilities and projects.
The economic cooperation between Germany and Kazakhstan come to a new level.
German businessmen are interested not only in Kazakhstan raw materials, but
also in The possibility to invest in the development of small and medium-sized
businesses. Kazakhstan supplies Germany with raw materials, and in return
receives the equipment and technologies, and investments of German capital in
the development of small and medium business in Kazakhstan. Thus, Germany is
becoming a support for the industrialization of Kazakhstan. In conclusion, we
can say with confidence that the Kazakh-German economic relations will continue
to grow steadily, and the republic will come more and more entrepreneurs, both
from Germany and other European countries. However, Kazakhstan should
strengthen its partnership with Europe, particularly with Germany, and take
everything positive from the process of European integration. The main purpose
of the establishment of relations between Kazakhstan and Germany is the
development of political and economic cooperation, the establishment of equal
partnership with the European Union and Kazakhstan's integration into the
European Economic Community . Germany is one of the most important economic
partners of Kazakhstan. The experience of bilateral relations shows that
Germany - a reliable trading partner and a stable investor. Kazakhstan has
registered about 688 joint ventures with participation of German capital,
including current - 547. Such well-known corporations such as
"Siemens", "DaimlerChrysler", "Volkswagen" and
financial institutions Deutsche Bank, Allianz, Hermes consider Kazakhstan as a
reliable investment partner and a key state in Central Asia. German Development
Society (DEG), a subsidiary of KFW (state development bank), established
fruitful relations with the institutions of the Republic of Kazakhstan for the
purpose of financing at a low interest rate of the investment projects. Speaking
about trade flows of Germany with the CIS countries, Kazakhstan after Russia,
Ukraine and Belarus takes the 4th place as the importer of the German goods,
Germany after Russia is the second main importer of the Kazakhstan goods.
Generally Germany imports oil, alloys of copper and iron, and exports, on the
contrary, generally machines, cars, chemical production and food. In
conclusion, we can say with confidence that the Kazakh-German economic
relations will continue to grow steadily, and the republic will come more and
more entrepreneurs, both from Germany and other European countries. However,
Kazakhstan should strengthen its partnership with Germany and take everything
positive from the integration process. The main purpose of the establishment of
relations between Kazakhstan and Germany is the development of political and
economic cooperation, the establishment of equal partnership with the European
Union and Kazakhstan's integration into the European Economic Community.
List of
references
1. http://normativ.kz/- electronic base of official texts of legislative and
other normative legal acts of the Republic of Kazakhstan in the field of
taxation, labor relations, finance, customs legislation, regulating migration
processes, banking and money transfers and other activities regulated at
national and local level.
2. http://www.mfa.kz/ - Ministry of Finance of Kazakhstan
3. http://adilet.zan.kz - Information and legal system of normative legal
acts of the Republic of Kazakhstan
4. http://www.dihk.de/ - official page of DIHK, AHK, IHK
5. https://tengrinews.kz - the laws of Kazakhstan, foreign economic activity