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Contents

 INTRODUCTION                                                     1

1. THE RUSSIAN-KAZAKHSTAN RATIOES AT THE PRESENT STAGE        5


     1.1 Mutual Trade
 8

     1.2 Cooperating in oil gas and power
        15
     1.3 Cooperating in sphere of transport and communication
           18

  2. CONDITION OF FOREIGN TRADE BOTH DEV’T OF THE JOINT / ENTERPRISES
     KAZAKHSAN AND RUSSIA

     2.1 Some aspects of economic interaction Kazakhstan and Russia
           22


     2.2 The factors of economic interaction of Kazakhstan and Russia
          24


     2.3 Engaging the foreign investments
       26
     2.4 Cooperating in the field of electric power industry
      27
     2.5 Cooperating in the field of machine construction industry
       28
     2.6 Cooperating in the field of a uranium industry
      29

  3. involvement in international organizations,
     kazakhstan and russia
                               31

     3.1 The Eurasian Union: Realities and Perspectives
       34
4.  VITAL  PROBLEMS  OF  THE  PRESENT-DAY  STATE  OF                     44
  KAZAKHSTANI-RUSSIAN RELATIONS

 CONCLUSION                                                            61

 LIST OF USED SOURSES                                            65



                                INTRODUCTION

The origins of Kazakhstani-Russian relations lie in  hoary  antiquity,  when
Kazakhs and Russians  lived  on  the  vast  Eurasian  territory  and,  being
neighbors, developed good-neighborly relations in all the spheres  of  human
activity.
      In analyzing the relations between  Rus  and  the  Great  Steppe,  one
cannot fail to mention the work of the greatest specialist  in  this  field,
Lev N. Gumilyov. In his preface to Gumilyov's  book,  Ancient  Rus  and  the
Great Steppe, Academician Dmitry S. Likhachev  wrote  this:  Rightly  taking
into account  the  links  between  subsistence  economy  and  the  level  of
prosperity of ancient societies, and thus their military power,  the  author
also compares historical events and climactic  fluctuations  of  the  steppe
zone of Eurasia. In this way he  arrived  at  a  series  of  clarifications,
which enabled him to describe in detail the  historical-geographic  backdrop
against which various cultural influences came in conflict  with  the  local
forms of the original culture of Eastern Europe.
      It must be noted in any analysis of the emergence of the 15 new, post-
Soviet states on the map of Eurasia that certain  specific  features  marked
the genesis of each of them. The present study focuses on the  processes  of
sovereignty of Kazakhstan, and the specificity of these  processes  lies  in
that from the very beginning the republic's  political  leadership  did  not
initiate  centrifugal  tendencies,  regarding  reasonable   integration   an
imperative of the times and endeavoring to ease  as  much  as  possible  the
destructive consequences at every stage in the disintegration of the  Soviet
Union. Kazakhstan was  the  last  former  Soviet  republic  to  declare  its
independence - not  out  of  any  strong  gravitation  toward  the  past  or
peripheral political development let us recall that Kazakhstan  was  one  of
the  first  to  experience,  in  December  1986,  the  repressive  power  of
totalitarianism then already withering away but because it  understood  that
artificial acceleration of this  process  is  fraught  with  the  danger  of
serious upheavals. The history of numerous bloody ethnic, social,  and  even
interstate conflicts in the post-Soviet space  bears  striking  evidence  of
that.
     The immediate subject matter of the  present  study  is  not  just  the
isolated process of the sovereignty of one of the post-Soviet countries  but
the emergence and development against  this  background  of  new  interstate
relations of two  major  republics  of  the  Soviet  Union,  Kazakhstan  and
Russia. In our view, it is relations between precisely these  two  countries
that can be seen as a model for the  establishment  of  equal  and  mutually
advantageous between newly independent states. This view is borne out  by  a
sufficiently smooth and planned, though far from  problem-free,  development
of  bilateral  Kazakhstani-Russian  relations,   a   meaningful   historical
tradition of mutual relations, and an absence of  sharp  turns  or  wavering
due to subjective or external causes.
     Another unifying factor is time—the many centuries of  the  history  of
mutual relations between the peoples of the two  countries  that  have  been
neighbors in these great open spaces since the beginning of time.  This  far
from simple history, full of drama and heroism, these strata of  time  bound
together by the unremitting toil of  numerous  generations,  unite  the  two
peoples.
     The Soviet period in the relations between the two states let us recall
that, according to the  1977  Constitution  of  the  USSR,  the  constituent
republics of  the  Soviet  Union  were  declared  to  be  "sovereign  Soviet
socialist states" united in the Union  of  Soviet  Socialist  Republics  and
having the right to enter  into  relations  with  foreign  states,  conclude
treaties  and  exchange  diplomatic  representatives,  and  -  theoretically
-secede from the  USSR  was  marked  by  the  prevalence  of  the  so-called
converted  forms.  The  ubiquitous  and  all-round  dominance  of  All-Union
structures made meaningless all talk of real  interstate  relations  between
Kazakhstan and Russia. Both sides  were  in  this  case  the  objects  of  a
grandiose social experiment. Although positive achievements of tills  period
cannot be discarded either.
     The emergence and further development of relations of equal partnership
between new independent states, the Republic of Kazakhstan and  the  Russian
Federation, became a sort of synthesis of the entire  centuries-old  history
of Kazakh-Russian relations. Only now can  the  relations  between  the  two
countries be justifiably described as subject-subject ones. At  this  stage,
both states solved such problems as defining their status in the  system  of
world politics, establishing  relations  with  leading  world  nations,  and
entering the field of international law.
     The  dominant  role  of  Kazakhstani  problems   has   determined   the
chronological framework of the investigation.
     The overall time frame covers the period from December 1991 the setting
up of the Commonwealth of  Independent  States,  which  finally  marked  the
disintegration of the USSR to the end of 1995.
     In the four years,  bilateral  Kazakhstani  -  Russian  relations  went
through a series of significant stages the study  of  which  can  adequately
determine the level of mutual  relations  between  the  two  countries,  the
scope  and  range  of  integration.  We  single  out  three  stages  in  the
development of Kazakhstani-Russian relations:
     — Defining the legal interstate relations of the two countries December
1991 - May 1920
     — Searching for a model of economic and political  cooperation  between
the states May 1992 - March 1994
— Expanding and deepening integration between Kazakhstan and Russia  in  the
economic and other spheres March 1994 - 1995.
      Although  some  elements  of  legal  contractual   relations   between
Kazakhstan and Russia may be discovered before December 1991, when  attempts
to preserve the Soviet Union were made,  it  will  be  more  chronologically
correct, in our view, to choose the moment at  which  the  CIS  was  legally
formed  and  the  activity  of  the  Union  structures  of   authority   was
discontinued as the starting point of the study.
      We propose that the signing in May 1992 of the treaty  of  friendship,
cooperation, and mutual assistance between the two countries be singled  out
as the concluding moment  of  the  first  stage  in  the  relations  between
Kazakhstan and Russia and at the same time  as  the  beginning  of  the  new
stage. That document became the foundation for qualitatively  new  relations
in the history of the two states, opening the first  page  in  the  official
interstate relations in  the  new  history  of  Kazakhstan  and  Russia.  It
determined  the  principles  of  bilateral  relations  in   the   political,
economic, military-strategic, cultural, and  spiritual  spheres,  lending  a
colossal impulse to the entire subsequent negotiation process.
     During the search for a model  of  interstate  economic  and  political
cooperation between Kazakhstan and Russia,  the  principles  were  developed
for bilateral  relations,  which  were  later  recorded  in  the  treaty  of
friendship, cooperation, and mutual assistance. The first official visit  of
President Nazarbayev of Kazakhstan to the Russian Federation in  March  1994
marked the beginning of the third stage in the development  of  Kazakhstani-
Russian relations - that of  expanding  and  deepening  integration  between
Kazakhstan and Russia.
     This division  of  the  time  frame  of  bilateral  Kazakhstani-Russian
relations into periods shows that one of the goals of the present  work  is
to demonstrate continuous development between Kazakhstan and Russia in  the
post-Soviet period.
     As the period of political history analyzed here is extremely close  to
the present, it cannot be regarded as worked out in detail in  Russian  and
foreign scientific literature. However, the problems of development of  the
new statehood of post-Soviet countries of Kazakhstan in this case,  of  the
birth and evolution of  interstate  relations,  of  their  entry  into  the
international community, are being studied ever more actively.
     The crucial period of the disintegration of the USSR and the  emergence
on the map of the world of new, independent states was  primarily  reflected
in scientific periodicals. Special mention should be made of the  collective
work The New Treaty of Union: The Search for Solutions.
Problems of mutual relations between  newly  independent  states  have  also
become  the  subjects  of  attention  of  Russian  experts   and   political
scientists. The period of disintegration of the USSR and of the  development
of Kazakhstan as a sovereign  independent  state  are  at  present  actively
studied by Kazakhstan scientists. Works have been written on the problem  of
the emergence of the new statehood, development of the system of  separation
of powers, democratization of society, evolution  of  party  structures  and
institutions of democracy, and the construction of a new legal and  judicial
system. Present State and Works on the  subject  of  bilateral  Kazakhstani-
Russian relations from the moment the two states achieved  independence  can
be divided into several groups. The first and the  most  numerous  one  deal
with relations between Kazakhstan and Russia within  the  framework  of  the
Commonwealth of Independent States.
     In recent years the development of market  relations  has  considerably
boosted  interest  for  economic  and  trade  cooperation  between  the  two
independent states. Mention must be made of a joint work  by  the  staff  of
the Russian Institute for Strategic  Studies  under  the  title  Kazakhstan:
Realities and Perspectives of Independent Development, It should  be  noted,
though, that this work suffers from an obviously incomplete documentary  and
factual basis and a certain superficiality in the analysis of the problem.
     The study is based  on  such  sources  as  legal  acts  and  interstate
 Kazakhstani-Russian treaties, agreements,  declarations,  joint  protocols,
 and other documents and materials,  as  well  as  decrees,  decisions,  and
 resolutions of the organs of state power in Kazakhstan and Russia.
     Extremely important sources for the study of the  last  five  years  in
 the history of Kazakhstan and  of  Kazakhstani-Russian  relations  are  the
 works of President Nursultan Nazarbayev of Kazakhstan: Without the Right or
 the Left, The Strategy of the Formation and Development of Kazakhstan as  a
 Sovereign State, The Strategy of Resource Saving and the Transition to  the
 Market, The Market and Socioeconomic Development, and  especially  his  new
 book, On the Doorstep of the 21st Century,  as  well  as  his  speeches  at
 various forums.' Just as important as sources for the present study are the
 books by President Yeltsin of Russia: Confessions on a Given Theme, Memoirs
 of a President as well as his official speeches,  and  also  the  works  of
 other Russian politicians and public figures, which afford a  deeper  grasp
 of the essence of events happening in the post-Soviet space in the 1990s.
     The process of market reform in the republic  and  the  tendencies  and
prospects for further reform in the socioeconomic sphere  are  reflected  in
several  books  by  Kazakhstan's   Prime   Minister   A.M.Kazhegeldin:   The
Socioeconomic Problems of Development  of  the  Republic  of  Kazakhstan  in
Times  of  Reform,  Kazakhstan  in  Times  of  Reform,  Problems  of   State
Regulation Under the Conditions of Socioeconomic Transformation.
     The formation of the republic's diplomatic service and problems of  its
civilized entry  in  the  world  community  are  studied  in  the  works  of
K.K.Tokayev, Kazakhstan's foreign minister.
Intense  legislative  processes  at  all  levels   in   the   given   period
necessitated close attention to the legal basis  of  the  newly  independent
states. As far as Kazakhstan is concerned, that legal basis  includes  above
all the Constitutions of 1993  and  1995,  of  which  the  content  and  the
sociopolitical background may be seen  as  the  quintessence  of  the  given
period in the country's history.
      The main distinctive feature of the source base of the  study  is  the
fact that most documents of the given period of political history  have  not
yet been moved to the archives; it was therefore necessary to turn  on  many
occasions  to  various  central  and  departmental  current  archives.   The
identification and systematization of many sources, their publication  in  a
collection of materials devoted to the  development  of  Kazakhstani-Russian
relations was in themselves an important task.
It may thus be said that extensive sources have been used in  the  analysis
of the above-mentioned problems; their study made it possible  to  paint  a
comprehensive picture of the development of  Kazakhstani-Russian  relations
against the background of the sovereignty of Kazakhstan in 1991-1995.



1.THE RUSSIAN-KAZAKHSTAN RATIOES AT THE PRESENT STAGE

      In a context of  events,  which  have  taken  place  in  region  after
September 11, the role of Russia in Central Asia a little  has  varied,  as
well as all has varied geopolitical formulated in region last years.
      In these conditions of one of important external policies of tasks  of
Kazakhstan is the adjusting of tactics and strategy in ratios with  Russia,
which would correspond  by  modern  geopolitical  realities  and  long-term
interests of our country.
      Central Asia and Caspian Sea, so-called  recently  Caspian  –  Central
Asia region, go into an region of traditional interests of Russia.
      In this region it always had the important national interests,  which,
however, in different periods were defined by different  circumstances  and
factors.
      The key interests of Russia in this region at the present stage can be
reduced to the following.
Central Asia has the important value in of a safety of Russia.
      The importance of this region for Russia is stipulated not oil by  the
factor implying from desire to save influence on Caspian Sea;
      Our  region  is  of  interest  for  Russia  territorial,   where   its
compatriots live. Are those, on  our  sight  three  dominating  interest  of
Russian Federation,  dominating,  Caspian  –  Central  Asia  region  at  the
present stage. It in this region has also other interests  trade,  cosmotron
of “Baikonur”, industrial communications etc. but they now  in  basic  carry
not so priority character.
      Until recently Russia ensured above-mentioned  interests  without  the
special efforts. All countries of region in the majority were  that  or  are
otherwise  dependent  on  Russian  Federation.But  the  events,  which  have
occurred after September of the last year, have brought  in  serious  enough
variations to a geopolitical situation in Central Asia and have affected  on
common position of forces in region.
      One of the occurred key variations consists that the break  in  sphere
of traditional vital interests of Russia is watched  which  today  faces  to
necessity Central Asia of policy.
      As a whole by 2001 in Central  Asia  the  private  tripartite  balance
between interests of Russia, China, USA was folded.
      The given balance can figuratively be  presented  as  a  triangle,  in
which upper corner Russia, in one lower corner - USA, in the friend -  China
settled down. These  countries  have  occupied  three  strategic  niches  in
Caspian – Central Asia region: military-political, oil and  gas,  commodity-
raw.
      The Russian presence at region last years was ensured, first  of  all,
with  strategic  military-political  component.  A  peaking  of  a   problem
extremism and the terrorisms in Central Asia, activation Islamic of  driving
of Uzbekistan,  irreconcilable  part  of  Integrated  Tadjik  opposition  at
immediate support Talib have established in 1999 - 2001 real threat for  the
countries of region.
      In these conditions only Russia was considered by the states of region
as the real factor and safety. It is enough to recollect, that  these  years
the contacts through link DKNB, intensive two-sided ratios in  military  and
military-engineering sphere were especially made active.
      Thus, USA has occupied oil and gases a niche in our region, and Russia
and China by virtue of economic circumstances could not with it  compete  in
this direction.
      In this geopolitical triangle Russia all the same  occupied  a  little
bit dominating positions. This majoring  in  many  respects  was  determined
strategic military-political component,  which  role  in  the  international
ratios is traditionally high.
      In a context  of  a  common  global  situation  Russia  forced  to  be
reconciled with a determination of military basses of USA in region  of  its
traditional interests.
      Taking into account all these circumstances, Russia faces to necessity
of the policy in Central Asia. The further prolongation  above-mentioned  of
the tendencies will have for it painful enough consequences.
      Despite of some variation of a role of Russia  in  Central  Asia,  for
Kazakhstan the strategic interests in a  ratio  of  Russia  continue  to  be
saved.
      The necessity of activation of  ratios  with  Russia  and  holding  of
constructive cooperating on much important for Kazakhstan to  directions  is
dictated as well by that  in  case  of  essential  weakening  of  Russia  in
Central Asia it will be fraught with negative  consequences.  The  situation
in region can become unstable and badly forecast.
      In the whole traditional interests of Kazakhstan in a ratio of  Russia
are founded on four factors having long-time character  and  diminuendos  by
such eternal categories, as geography and history.
      First, the maintenance partner of  ratios  with  Russia  is  necessary
valid intercontinental of an arrangement of Kazakhstan, for which  the  exit
on the world market is vital for an economic  development.  Russia  in  this
respect occupies the strategically important position; being by  the  state,
on which region pass vital for us strategy of transport  and  communication.

      Secondly, Russia is one of the important subjects of the international
system, having significant  political  weight  and  rather  large  military-
engineering opportunities. The Russian factor in  many  respects  determines
external policy a situation around of Kazakhstan, both on regional,  and  at
the international level.
      Thirdly, Russia is the major economic partner Republic of  Kazakhstan.
It not only imports different production and techniques to  Kazakhstan,  but
also is the market of selling  of  Kazakhstan  production.  About  70  %  of
Kazakhstan industrial potential is involved on economy.
      In - fourth, both states are combined with  a  historical  generality,
  spiritual and cultural links. In  region  of  Russia  the  man  is  Kazakh
  Diasporas including 740 thousand. In  Kazakhstan  Russian  are  second  on
  number ethnic group, making about 30 percents of  the  population  of  the
  country.
      In this context the Russian direction of exterior policy of Kazakhstan
  remains to one of priority and strategic.
      As a whole at the present stage in the Russian-Kazakhstan  ratios  the
  following most priority and  perspective  directions  of  cooperating  are
  meant:
  • Mutual trade.
  • Interaction in oil and gas and power sphere.
  • Cooperating in sphere of transport and communications.
  • Cooperating in sphere of safety.

  1.1 Mutual Trade.

      The interests of both countries are answered with magnifying of mutual
  trade. Russian Federation traditionally occupies the first place among the
  basic trade partners of Kazakhstan both on export, and  on  import.  Trade
  turn over in 2001 from Russian Federation has made 4 639,3 million  of  US
  dollars (Diagrama1,2).
      It is necessary to mark, that last years the  growth  of  a  share  of
  Russian Federation in import and reduction  in  export  is  watched.  The
  specific gravity of Russia in total amount of the  Kazakhstan  export  is
  sequentially reduced (from 44,5 % in 1994 up to 20,2 % in  2001)  and  is
  augmented in import (from 36,3 % per 1994 up to 45,4 % per 2001).  Within
  several last years of Kazakhstan has negative trade balance with  Russian
  Federation.


     Basic trade partners, in import, 1994-2001 (%)

     [pic]
|1994    |1996    |1997    |1998    |1999    |2000    |2001    |
|•Russian | 36,3   | 54,8   | 45,8   | 39,4   | 36,7   | 48,7   |45,4    |
|Federatio|        |        |        |        |        |        |        |
|n        |        |        |        |        |        |        |        |
|• China  | 2      | 0,8    |1,1     | 1,2    |2,2     | 3      | 2,8    |
|Poland   | 0,7    | 1      |1       | 1,1    | 1,7    | 1,2    | 0,9    |
|•Uzbekist|7,8     | 2,1    |1,5     | 2,2    | 2,4    | 1,5    | 1,3    |
|an       |        |        |        |        |        |        |        |
|•Kyrgysta| 2,9    | 2,1    |1,5     | 1,2    | 0,7    | 0.6    |0,4     |
|n        |        |        |        |        |        |        |        |
|•     

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