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New silk way. Trends of development.

Organizers:

Al Farabi Kazakh National University 

Relevance:

The Great Silk Road, in all its ancient forms, has revived to the new life today, and reappeared on the political map of the third millennium as a trend of using the enormous potential of the international community. 

Goals:

The revival of the Silk Road as new brand of rapprochement of peoples, cultures exchange and development of the global economy through the consolidation of the integration efforts of countries in the region in view of their deep spiritual and historical roots  

Key issues:

The development of mega-programs and macro-projects. Instruments of prognosing the development trends of individual countries and the entire pool of the Silk Road. The development of adequate behavior patterns in many areas of society . The role of China and other potential investors, the owners of unique transit corridor. The potentials of transcontinental corridor to form integration institutions. Perspectives for the development of the economic growth of the countries in the New Great Silk Road, taking into consideration the observance of balance between the needs of the economy, resource potential of territories, water security and environmentally -friendly public situation. Creation of the peaceful corridor for transit of goods, including energy resources. Constant exchange of views on the formation of the strategy of ecological, economic and social development of the region, as well as energetic diplomacy for the development of integration programs. 

The Great Silk Road, in all its ancient forms, has revived to the new life today, and reappeared on the political map of the third millennium as a trend of using the enormous potential of the international community. Russia, Japan, China, South Korea and India have already signed an agreement on construction of the Trans-Asian Railway of more than 14,000 km in length, which will connect the countries of the Atlantic and Pacific Oceans.According to the WTO and UNESCO data, in 2020 the Silk Road will become a very attractive route for tourists and businesses. The institutional capacity in the region, based on the national interests of the countries, will develop in two directions: along the North-Southaxis, which connects Russia and India and along the East-West axis, linking China and the European Union.Railways and highways of the New Silk Road will connect Europe with China and South East Asia with the Persian Gulf. This will make the countries (more than 30) introduce high standards of safety, electronic access mechanisms of doing business, copyright protection, develop market of new ideas and technologies for long-term economic growth and resource security.

 

Timeline

08.05.2015 15:27:30
Kazakhstan is crucial to getting China’s Silk Road Economic Belt off the ground, which is why Xi first announced that initiative during a visit to Astana in September 2013. Since then, Kazakhstan has become a major site of Chinese investment. During Premier Li Keqiang’s visit in December 2014, China and Kazakhstan signed a framework deal that will see the two countries cooperate on infrastructure, energy, and housing deals worth over $14 billion. When Kazakh Prime Minster Karim Masimov visited China in March, the two countries signed more deals worth another $23.6 billion, this time focusing on industrial capacity in the steel, oil refining, hydropower, and automobile sectors.
08.05.2015 15:28:27
espite this, the two countries will have a hard time meeting their goal of increasing their bilateral trade volume to $40 billion this year. Last year, according to statistics from China’s Ministry of Foreign Affairs, China-Kazakhstan bilateral trade was worth only $22.4 billion, which actually represented a 21.5 percent year-on-year drop from the over $28 billion in trade in 2013.
08.05.2015 15:28:46
Petroleum is Kazakhstan’s top export, but the country is seeking to improve its industrial capacity in order to wean the economy off reliance on the energy sector. China is interested in helping with this transformation as part of the Silk Road Economic Belt’s development. However, China also seeks increased access to Kazakhstan’s natural resources. An oil pipeline linking Kazakhstan and China provided China with more than 86 million barrels of oil in 2013.
08.05.2015 15:32:08
Most intriguingly in geopolitical terms, Kazakhstan increasingly sees China as the answer to over-reliance on Russia, particularly given the hurdles facing the new Eurasian Economic Union. Xinhua spoke with Aidar Amrebayev, head of the Institute for World Economy and Politics under the Foundation of First President of Kazakhstan, who said that Kazakhstan can overcome the difficulties posed by Russia’s economic downturn and the ruble’s decline by taking part in the Silk Road Economic Belt.
08.05.2015 15:39:19
An op-ed in the Astana Times praised the close, “mutually beneficial” relationship between China and Kazakhstan. The piece noted economic cooperation on energy as well as infrastructure projects. However, the piece also emphasized that China-Kazakhstan cooperation “is not just about trade and investment. It is about shared values, reflected in the two countries’ foreign policy.” In particular, the two countries must cooperate to fight against extremism and terrorism in the region, the piece argued. “Working together will help both countries achieve their domestic and international ambitions,” Astana Times concluded.
08.05.2015 16:08:55
For China, Kazakhstan’s importance indeed extends far beyond economics. The Central Asian state is not only an important energy source and investment destination for China – cooperation with Kazakhstan has clear links to security in China’s Xinjiang province. China hopes that the Silk Road Economic Belt will boost Xinjiang’s economic fortunes, and that this growth will help quell ethnic tensions in the Uyghur Autonomous Region. Kazakhstan, which shares a lengthy border with Xinjiang, is seen as first step on Silk Road that will make economic development possible.
08.05.2015 16:10:18
China has been encouraging investment in Xinjiang by touting links to Silk Road Economic Belt, including setting up a cross-border free trade zone at Horgos (also known as Khorgos), now officially described a major “land port” for the Silk Road. But making good on the Silk Road will require substantial investments in Kazakhstan as well — for example, the Kazakh side of the Horgos FTZ remains underdeveloped and poorly linked to Kazakhstan’s major cities. Still, Astana Times at least has high hopes for the project: “The importance of Khorgos to Kazakhstan should not be understated. It already acts as a strong driver of economic growth in the Almaty Oblast and Kazakhstan as a whole and will spur economic growth across the whole of Eurasia.”
08.05.2015 17:52:13
China aims to redraw the geopolitical map of Asia with plans to bind other countries closer to it through a network of new ports, pipelines, roads and railways. One plan is to build a “Silk Road Economic Belt” through Central Asia. China’s biggest land port on that route is the newly established city of Horgos on the border with Kazakhstan.
08.05.2015 17:53:18
Horgos became a transit point on the ancient Silk Road in the Tang Dynasty (618-907 A.D.), according to local authorities. They say Horgos means either “place of much camel dung” or “place of good pasture” in the language of the Junggar people who dominated the area in the 17th and 18th centuries. The border was closed after the Russian revolution in 1917, and several times thereafter during periods of tension between Moscow and Beijing. Although the border reopened in 1983, trade was negligible until recently because of continuing tensions and poor transport links.
08.05.2015 18:37:30
China’s plan is to transform the sleepy frontier crossing into an international railway, energy and logistics hub for a “Silk Road Economic Belt” unveiled by President Xi Jinping last year. China established a free-trade zone there in 2012, and bilateral trade through Horgos in 2013 was $11 billion, up 55.5% from 2012, according to local government statistics.
08.05.2015 18:51:38
China upgraded Horgos to a city in September. The Chinese side of the free-trade zone features five multistory wholesale markets where Kazakh traders buy Chinese tires, furs, electronics and other consumer goods. A gas pipeline from Turkmenistan enters China in Horgos. China has built an expressway to the border here and a railway connecting China’s network to Kazakhstan’s. Official maps and statements now describe Horgos as China’s main land port on the Silk Road Economic Belt.
08.05.2015 19:04:48
The Kazakh side of the free-trade zone has lagged behind, with only a small cluster of cargo containers and yurts—traditional tents—selling Russian chocolates, homemade honey and other comestibles. Kazakh traders complain that Almaty, the nearest Kazakh city, is a bumpy five-hour drive away. Kazakh officials say they will start building malls and hotels and finish upgrading the road to Almaty next year. That is one of the last sections of a transcontinental highway from China’s east-coast port of Lianyungang to Russia’s St. Petersburg, to be opened by 2016.
08.05.2015 19:35:28
Horgos is a small element of a broader program including a “21st-Century Maritime Silk Road” that was also unveiled last year. That plan envisions constructing or expanding ports and industrial zones across Southeast Asia, South Asia, the Middle East, Africa and Europe. The two Silk Road plans will be funded by Chinese aid, investment from state and private firms, a new $50 billion Asian Infrastructure Investment Bank and a Silk Road Fund announced in November.
08.05.2015 19:49:58
External factors contribute is more than hinder the realization of the scale of the Eurasian project co-development. The pressure to which Russia is exposed to the west and China - from the east, making their cooperation more rational strategy. China Initiative (economic) and Russia (legal and institutional) are different in nature and, therefore, complementary.
08.05.2015 22:09:21
The Central Eurasia - Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan, Turkmenistan and Mongolia, as well as part of Azerbaijan, Afghanistan and Pakistan - can provide its international subjectivity and political and socio-economic stability only through participation in large-scale cross-border projects.
08.05.2015 22:19:36
Transport and logistics capacity in the region is enormous, as the potential co-development of Eurasia (the creation of cross-border investment clusters and regions of priority development). Implementation EPSHP will reduce road transport of goods in comparison with the route through the Suez Canal. The length of the route is 8,400 km, of which 3,400 km were laid on the territory of China, and 2,800 km and 2,200 km are under construction or being modernized in Kazakhstan and Russia respectively.
09.05.2015 21:44:45
Transfer here the main trade flows will significantly reduce costs and insurance costs by raising the level of safety of transport and logistics routes, reduce threats to natural disasters and international political instability inherent in the waters of the southern seas. Reorientation of a substantial part of Russian energy exports to growing Asian markets will also contribute to improving the return on investment in related infrastructure projects.
09.05.2015 21:49:29
There is another problem. As the Russian scenario sin notions of static action of the United States and gosdepovskie can not accurately determine the priorities of Russia in the current conflict. The State Department, probably easier. Washington Moscow feels better than Moscow, Washington, and a set of tools is incomparable. All this, however, does not negate the fact that there is a choice, and the Kremlin, and the efficiency and timeliness of response may neutralize any opponent's strategy, even stronger and more prepared.
09.05.2015 21:52:24
The importance of the economic rise of the center of Eurasia for Russia is obvious and provides not only direct but also indirect benefits for government, business and the country in general.
09.05.2015 22:06:27
First, the arrangement of the center of the Eurasian project is economically the most promising. On the one hand, it will bring together the interests of the state and private business development in the Russian regions, and on the other - would create a long-term infrastructure for the profitable operations of numerous private companies interested in the production and trade cooperation with other countries in the region.
09.05.2015 22:28:25
Second, economically strong and attractive investment center of Eurasia - a necessary condition for recovery of the Russian regions - Siberia and to a certain extent the Far East. Thus Siberia disposing large-scale human and resource potential, participation in the Silk Road is not only and not allow to expand transit as provides integration of the regional economy in an open international system.
09.05.2015 23:19:10
The main objects of the primary investment (by States and specialized financial institutions such as the Asian Development Bank Infrastructure Investment Fund of the Silk Road and so on.) Will be the transit and resource industries. In the second stage, they will be complemented by the processing industry and other industries, up to high-tech.
10.05.2015 12:53:02
Project resettlement center of Eurasia - an important pillar of Russia in world politics, the factor of its formation and strengthening as an international center of power associated with players aimed at stabilizing rather than undermining the region. For Russia, the strengthening of international cooperation around the center of Eurasia meets the problem of formation of the Eurasian Economic Union as held interstate association with elements of supranational integration, and for a number of small states of Eurasia eliminates the problem of choice.
10.05.2015 14:26:45
In addition, the political strengthening of Russia in the context of the economic development of the center of Eurasia would "expand" many other countries that are in search of his place in the world or not satisfied with this place, to meet the great Eurasian project. Moscow will be able to offer favorable cooperation in major economic projects in Eastern Europe and the Caucasus (as well as some other partners, such as Turkey and Mongolia).
10.05.2015 14:29:53
If successful, the project and start the accelerated economic development of Central Eurasia, we can expect augmenting human capital and the emergence of a new Eurasian identity, which, by the way, so much written and spoken Russian philosopher Nikolai Trubetskoi, Florovsky, Pyotr Savitsky and others. In the 20-ies. the last century it seemed speculative thoughts, but now under them can be really existing geopolitical and economic foundation.
10.05.2015 19:37:28
If business and the state will be able to quickly develop the necessary agenda, Russia has all chances to become the leader of the elevation - the concentration of the resource, industrial and intellectual currents.
10.05.2015 19:51:22
A special place in the national strategy of the Eurasian co-development should take the disclosure of the unique potential of Western Siberia, which has not only rich in natural resources and well-developed industrial base, but also a great human capital. Development of the large Eurasian project is not only the latitude, but the meridional transport routes contributes to solving the problems associated with the disposal of Siberia on foreign markets.
11.05.2015 11:16:36
Great Siberian cities, primarily Krasnoyarsk and Novosibirsk have all the prerequisites to become a major Eurasian transport and logistics units, as well as centers of regional development projects, including scientific and technological, industrial, and educational components.
11.05.2015 11:17:12
Great economic potential of water resources in Siberia and its agricultural land. Therefore, the Eurasian strategy of Russia, aiming to use not only its transit potential, but first and foremost the stabilization and long-term development of the entire Central Eurasia, must provide the international positioning of the Western Siberia and its leadership in a number of cross-border projects.
11.05.2015 14:30:53
Perhaps even at this stage it is necessary to study the possibility of connection to the common energy market of western China with 22 million population. In the future, justified the establishment of a ring power system consisting of Siberia, Kazakhstan, Central Asia and western China.
11.05.2015 14:54:34
In order not to miss the "Eurasian moment," Russia should be discussed with key regional partners, especially China, the joint development of a new strategy in Eurasia. It is necessary to form a high-level commission on cooperation in the field of transport and logistics corridors in Eurasia and co-development projects.
11.05.2015 18:07:34
It requires the creation of the Working Group on the EAEC transport and logistics, including air transport, infrastructure, possibly including representatives of Kyrgyzstan. And most of the Eurasian Economic Commission should take the initiative (White Paper) transport and logistics strategy EAEC - a common position of the participating countries. It is advisable to prepare a joint Russian-Kazakh-Chinese strategic document "Energy belt of Eurasia", which determines the long-term priorities for international cooperation in the energy trade, taking into account the objective transformations of this market.
11.05.2015 18:28:40
The new program "Dialogue in Central Eurasia" has contributed to the creation of a political system format of interaction between the institutions of the Eurasian integration and regional partners (China and the rest is not participating in the EAEC states). On the expert and political levels it is time to work out a long-term program to strengthen the international cooperation of other institutions, such as the SCO and the Collective Security Treaty Organization in the new context of regional cooperation.
11.05.2015 19:42:48
Also it is necessary to initiate expert-analytical study of the project of international cooperation on the Irtysh River, which is shared and actively use China, Kazakhstan and Russia, based on the principle of "common river", by analogy with the Mekongckoy initiatives, including creation of an effective basin commissions and attract investor packet.
11.05.2015 21:09:04
Inspired by our co-development projects in Eurasia, Russia, China, Central Asian countries, Mongolia, and in the long term India, Turkey, Iran and South Korea will be able to find the answer to a number of domestic and international calls, to lay the foundation for sustainable development of the region and to eliminate the possibility of "explosion from within. "
11.05.2015 23:38:12
Central Eurasia should be safe and sturdy home for its peoples, steadily developing common rear Russia and China needed to address the strategic objectives of their foreign policy.
12.05.2015 00:13:40
The rise of Central Eurasia - one of the three components of a new global strategy for Russia, the other pillars of which are the relations with Europe as the most close civilizational region is still an important source of technology and social experience, and have already begun to turn Asia Pacific.
12.05.2015 22:41:50
Russia's internal development should be meaningfully linked to the main vector of its foreign policy. It is this, along with the modernization of public administration, changes develop your potential model of the economy and an increase in the military and political capabilities will allow to strengthen the position of Russia as a world power XXI century.
12.05.2015 22:43:37
Russia's internal development should be meaningfully linked to the main vector of its foreign policy. It is this, along with the modernization of public administration, changes develop your potential model of the economy and an increase in the military and political capabilities will allow to strengthen the position of Russia as a world power XXI century.
12.05.2015 22:44:13
For Russia, 2014 was marked by a real "turning to the East," the emergence of a genuine strategic partnership with China, and at least a radical transformation of relations with the West. These historic changes have coincided with the release of a new stage of the process of Eurasian integration and the extension of a number of strategic initiatives Beijing. The most important of these was proposed in 2013 the concept of the Economic Belt of the Silk Road (EPSHP) - large-scale investment, and transport and logistics of the project.
13.05.2015 05:43:55
The first steps to implement the initiative taken in November 2014, when the investment created "Silk Road Fund" with a capital of 40 billion dollars. The goal of the Chinese project - turn the region into one of the world centers of economic growth and global influence. "Silk Road" is intended to link the north-western regions of China to the markets of Europe and Asia. However, the significance of the project is not confined to the carriage of goods, it bears a strategic plan for development of the region through the creation of new infrastructure, industry, trade, services.
13.05.2015 05:44:32
Moscow needs a proactive stance on the initiative of the PRC, as its implementation will affect the prospects for continued leadership of Russia in the region, and its overall position in the world. Necessary cooperation between Russia and China for joint EPSHP creative development and expansion of its capacity due to the interaction with the project of Eurasian integration. On this basis, Russia will not only give a new impetus to its economy, but also to strengthen the Eurasian Economic Union (EAEC), using the influx of Kazakhstan and Central Asia, Chinese investments, working on social and economic stability.
16.05.2015 01:24:53
Over the past decade the international arena comes more experienced and confident investors from China. The country is becoming a serious player in the global investment market and, according to some experts, in the near future is to become a leader. Relying on the experience of working with Chinese companies that invest in overseas projects, we conclude: the key elements of successful foreign investment is the knowledge of the local market, the ability to make profitable trades, as well as an effective system of risk management and the choice of a reliable partner
16.05.2015 02:20:21
Over the last decade there was a rapid growth in foreign direct investment (FDI) from China. Today, the country ranks third in the world in terms of investments in foreign projects, demonstrating the figure at more than 100 billion US dollars, and it is said that out of the world's largest manufacturer of China is becoming a major investor.
16.05.2015 02:21:55
In recent years, Chinese investors have switched attention from mining projects in high technology and consumer goods. This trend is due to the development of Chinese business, the rapid transformation of the national economy and the expansion of investment activities of Chinese companies, should change as the market itself, and the geography of Chinese FDI.
16.05.2015 03:14:53
On the one hand, Chinese investors are diversifying portfolios that were previously mainly includes assets in the energy and mining industries, and actively enter into mergers and acquisitions in sectors such as technology, agriculture and real estate.
16.05.2015 05:56:53
On the other hand, the scope of the interests of Chinese companies is not limited to the Asian, Latin American and African countries with rich natural resources; They began to show increased investment interest in the developed markets of Europe and North America.
16.05.2015 15:34:19
2015 should be another momentous year for Chinese FDI. It is expected that foreign investment in China this year will exceed domestic investment, which means that the national economy will be recorded net capital outflows. This is partly explained by the fact that now a policy of actively promoting the development of Chinese companies to overseas markets and they get unprecedented support as never before.
16.05.2015 16:30:22
Therefore, Chinese companies have a great opportunity to continue to travel around the world for investments, crossing new frontiers. For many years, EY working with Chinese companies, assisting them in the implementation of growth strategies.
16.05.2015 17:11:25
Therefore, Chinese companies have a great opportunity to continue to travel around the world for investments, crossing new frontiers. For many years, EY working with Chinese companies, assisting them in the implementation of growth strategies.

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