Through Modernization to Leadership
We are not only close neighbors; the two states have many areas of common interest aside from the political sphere. Russia has adopted the 2020 Strategy which is based on innovative development. The program of forced industrial-innovative development was adopted in Kazakhstan this year as well. The main purpose of the documents is establishment of a new competitive economy of XXI century able to improve the life quality of the population. In this regard, an interesting question arises: whether the two states considering each other as strategic partners are able to form their new economies together?
Firstly, both countries already cooperate in a number of spheres regarding innovations. These are the prospects for peaceful exploration of the outer space and nuclear energy. Kazakh Leader Nursultan Nazarbayev said at the V Forum of the Heads of Near-border Regions in 2008: "Integration of Kazakhstan and Russia in the innovative sphere is an important element of occupying a joint niche in the global scientific and technological spheres".
The current turmoil in the global economy attached special importance to these words. The world countries turned out to be on the threshold of a new era of post-crisis world today. Although it hasn't yet emerged among the ruins of the global crisis, the world politicians already argue about whom the leadership will belong to. Astana and Moscow are not exception. The Leaders of both states responded by declaring the policy of industrial-innovative development.
In order to understand such behavior we need to look at the developed countries. 70-85% of the GDP growth there falls on the innovative sector of the economy. In the USA, Europe or Japan the investments volume into the high-tech manufacturing makes up to 2.5% of the GDP. In the post-soviet space this figure is about 0.4-0.5%. This allows developed countries to maintain their leading positions in the world economy even in the crisis.
Such position illustrates well the fluctuations in trade turnover between Russia and Kazakhstan. In 2009 it lost USD 6 bln. The share of Kazakhstan in it decreased by 40% and in Russia this figure made 35%. Although the volume of export didn't change, prices for the products changed: natural resources and oil at foreign markets cheapened while the prices and demand in high value-added products didn't change significantly.
According to the experts, this trend will only get intensified due to which innovative economy will be considered as the only tool of overcoming the problems at foreign markets. But the most important thing is that it will allow creating a new "business model" of XXI century. It is evident that such situation realizes political establishment of both countries since in recent years we see live interest from their sides in cooperation in knowledge-intensive fields.
Thus, President of Russia Dmitry Medvedev expressed hope that specialists of the Nazarbayev University which plans to open a special economic zone on its ground, would cooperate with Skolkovo (in Moscow region - edit) innovative centre. This is the Russian analogue of America's "Silicon Valley" specializing in know-how generation. Unlike famous Russian "city of science" - Novosibirsk, commercialization is in spotlight here.
Although, Skolkovo project is under realization now, several leading world companies expressed intention to join it. For instance, America's Boeing plans to establish a centre to design modern aircrafts. Phillips Holland group is going to produce LEDs and medical equipment in Skolkovo. Finnish producer of cell phones Nokia also wished to be a co-founder of a project of innovative centre in Skolkovo. "It will become some kind of an exposition of our achievements with the leading universities of Russia as well as it will let us showcase our technologies which will be developed by Nokia with its partners", President of the Company Olli-Pekka Kallasvuo said.
However, Russian experts would like Kazakhstan to join this project too. And it is not accidental. If Kazakhstan and Russia start rivaling with each other in innovative sphere both countries will lose in race for global and region leadership. By the way, Kazakhstani experts expressed concern that Skolkovo would negatively impact domestic companies' competitiveness. Chairman of the Board of National Innovative Holding JSC Aidyn Kulseitov refuted such doubts saying: "Innovative industries will not suffer from joining the Customs Union. On the contrary, this will favor them a lot. Establishment of the Customs Union will let removing certain barriers".
Dmitry Medvedev finally dispelled the doubts on this problem suggesting Kazakhstan participating in implementation of Skolkovo project. Thus, he confirmed strategic partnership between our countries not only in traditional spheres of cooperation but also in security, economy and politics, as well as in exchange of technologies.
The main capital of smart economy is people but not money. As Russian Prime Minister Vladimir Putin noted, "development of human is the main goal and condition of progress of modern society". The innovative way of Kazakhstan's development provides for exchange of technologies, highly qualified specialists and sharing experience in training personnel of XXI century.
Over 16 thousand Kazakhstani students are studying in Russia at present, namely in Moscow, Saint Petersburg, Astrakhan, Saratov, Ufa and Kazan.
"Kazakhstan and Russia enjoy today close cooperation in extraction and enrichment of uranium, and interaction at the markets of third countries", Russian President's Aide Sergey Prikhodko says.
In 2009 Kazakhstan became the leader in uranium production in the world. Along with this, creation of a vertically integrated company on the ground of Kazatoprom JSC remains a priority of the republic in this direction. Kazakhstan has large reserves of uranium while Russia possesses technologies for its processing. All of these create favorable conditions for mutually beneficial partnership. Besides, Kazakhstan plans to build an atomic power station which will satisfy the country's demand and will ensure stable growth of economy
Both countries have been interacting within the project of the International Nuclear Fuel Bank. Moreover, nuclear industry is the sphere of long-term cooperation for Russia and Kazakhstan since it is an only alternative of traditional energy based on oil, gas and coal. According to experts, world's demand in fuel for atomic power stations will grow in the nearest ten years. This means that positions of Moscow and Astana will be enhanced in the global economy due to nuclear trend.
Space exploration is one more promising direction for cooperation, Kazakhstan says. Today our country makes its first independent steps towards space. And success in it depends on partners. There are not so many countries in the world which reached progress in space development and one of them is Russia.
In 2004 our countries entered into an agreement on establishment of Baiterek space complex on the ground of Angara ecologically safe rocket. Probably, Russia will become our strategic partner both on Earth and in space.
In October 2010 there was adopted a state program Development of space activity for 2010-2014.
"The fifth objective of the Program provides for strengthening international cooperation with the leading space empires in the sphere of space development projects and programs and continuation of mutually beneficial partnership with the major strategic partner in space - the Russian Federation", Head of Kazkosmos Agency Talgat Mussabayev said.
Alternative energy can also become a promising field of cooperation for Russia and Kazakhstan. Astana has already set to realization of the postulates of the Kyoto Protocol. In 2011 the republic will start trading at Chicago Climate Exchange. Alternative energy is actively developed to date which is proved by the volume of investments attracted into this sphere in developed countries and China. The projects in this field will let poor countries reduce and almost close the gap with industrially developed states.
"We will work on diversifying the energy sources and developing new kinds of energy. I am confident that both Russia and Kazakhstan possess good potential for this", the Russian Leader says.
Expert society faces today a dilemma: Who are we? Are we partners or competitors? Kazakhstan is not still capable to compete with Russia. On the other hand, those who adhere to the principle of cooperation will gain success in XXI century. Therefore, we can say that Astana and Moscow are not rivals but strategic partners in politics and in building innovative economy.
Both countries complement each other well and enhance their potential in politics. They adhere to this position in their economic strategies too. Cooperation in innovative sphere provides for fulfillment of several conditions - access to advanced technologies, exchange of specialists and training highly-qualified personnel. All of these are observed in the Kazakh-Russian relations now.
