At a Cross Road of the Silk Road: Global and Local Impact of Regional Development

in Kazakhstan

Prof Siddharth S Saxena, Svetoslav Varadzhakov & Parjakti Kalra

Cambridge Central Asia Forum

Presented at:The 4th Astana Economic Forum3rd and 4th of May, 2011

HistroyHistroy

The newly formed Customs Union between the three former Soviet republics of Kazakhstan, Russia and Belarus in 2010 and relates this form of economic and political cooperation to the times of the Mongol Empire when trade from Europe to China flourished under a single institutional framework.

We provide views on the customs code accepted by the three member states, especially Kazakhstan, and highlight economic, political and social benefits that this form of cooperation could bring to the participating states and their close neighbors and trade partners and particularly aid development within the regions of Kazakhstan

Interestingly and ironically the Customs Union, Interestingly and ironically the Customs Union, despite re-uniting the countries from the Soviet despite re-uniting the countries from the Soviet Period is pushing the countries like Kazakhstan Period is pushing the countries like Kazakhstan to diversify their supply and acquisition routes to diversify their supply and acquisition routes and networks and away from a Moscow oriented and networks and away from a Moscow oriented transport centeredness. transport centeredness.

This has both internal and external This has both internal and external consequences!consequences!

This comes with both opportunities and This comes with both opportunities and challengeschallenges

Regional Development Regional Development AspectsAspects

Changing of the trade corridors also Changing of the trade corridors also creates new pathways in the regions and creates new pathways in the regions and induce growth opportunities induce growth opportunities

Need for matching local production Need for matching local production capacity with regional and global supply capacity with regional and global supply chain dynamics starts to growchain dynamics starts to grow

New impact on contiguous regions across New impact on contiguous regions across the countries creates interesting the countries creates interesting possibility for greater integration possibility for greater integration

Manufacturing and Local Manufacturing and Local Branding Branding

Due to labour cost advantages Kazkhstan Due to labour cost advantages Kazkhstan has very interesting niche for developing has very interesting niche for developing cheap integrated technological products cheap integrated technological products derived from local strengths in Agro-derived from local strengths in Agro-Business, Oil & Gas, Green Technologies Business, Oil & Gas, Green Technologies and Metals and Mining areas for e.g. and Metals and Mining areas for e.g. Superconducting electronics, Processed Superconducting electronics, Processed wheat products etc. wheat products etc.

Diversification of economy has great Diversification of economy has great regional underpinningsregional underpinnings

Cleantech/GreentechCleantech/Greentech• Polymer and oxide semiconductor devices

• Cheap deposition of polymers by printing

• Improve devices by understanding physics

• Successful spin-out of technologies

You have the sun! we have the technologies!

Light-emitting diodes Solar cells Transistors

Technology some eg.Technology some eg.Information and Communications TechnologiesInformation and Communications Technologies

e-health, e-governance, e-citizenshipe-health, e-governance, e-citizenship

Next Generation Microelectronics and optoelectronicsNext Generation Microelectronics and optoelectronics

Biotechnologies, Pharmaceuticals, Medicine and Health DiagnosticsBiotechnologies, Pharmaceuticals, Medicine and Health Diagnostics

Innovation in Food and Agriculture TechnologiesInnovation in Food and Agriculture Technologies

Integration of wind, solar, hydro power hybrid unitsIntegration of wind, solar, hydro power hybrid units

High Precision Oil and Gas exploration and analysis High Precision Oil and Gas exploration and analysis

Efficient Manufacturing of Products and PackagingEfficient Manufacturing of Products and Packaging

Smart Infrastructure development like tunnels, bridges and pipelinesSmart Infrastructure development like tunnels, bridges and pipelines

Recommendations to Increase Recommendations to Increase Competitive AdvantageCompetitive Advantage

of Kazakhstanof Kazakhstan

Increase Capacity for innovationIncrease Capacity for innovation

Diversify science base and research infrastructureDiversify science base and research infrastructure

Increase Capability to diffuse knowledge and experience Increase Capability to diffuse knowledge and experience through collective learning and networking systemsthrough collective learning and networking systems

This will Lead to a functioning knowledge-based clusterThis will Lead to a functioning knowledge-based cluster

Support Entrepreneurial business community – Find Support Entrepreneurial business community – Find enthusiastic partners to participate in local, regional, enthusiastic partners to participate in local, regional, national and international programmes of innovation, national and international programmes of innovation, change and new business creationchange and new business creation

Cambridge ConnectionCambridge ConnectionCambridge Kazakhstan Development TrustCambridge Kazakhstan Development TrustCambridge Kazakhstan CentreCambridge Kazakhstan CentreCambridge Central Asia forumCambridge Central Asia forum

Famous Alumni and Teachers – Darwin, Newton, Kapitza, Keynes Famous Alumni and Teachers – Darwin, Newton, Kapitza, Keynes etc.etc.

Noble Prize Winners - 87Noble Prize Winners - 87

Global OutreachGlobal Outreach

Cambridge Central Asia Forum as a dedicated interface with FSU (Cambridge Central Asia Forum as a dedicated interface with FSU (www.cambridge-centralasia.orgwww.cambridge-centralasia.org). 18 Years of joint initiatives.). 18 Years of joint initiatives.

Economic, Environmental, Political and Technology PolicyEconomic, Environmental, Political and Technology Policy