Political and Economic Overview
In FY 2002, Kazakhstan made limited progress toward continued reform. Negative developments included the selective prosecution and conviction of two opposition politicians on corruption charges, the suspension or closure of five independent media outlets, and harassment of several independent journalists. Positive developments included the temporary registration of a major new opposition party, successful nationwide registration campaigns conducted by two opposition parties, and the emergence of new progressive media outlets publishing articles critical of the government. In 2002, the Government continued its laudable progress on prison reform and created a human rights ombudsman. Draft legislation to restrict religious freedom was struck down as unconstitutional.
On the economic front, the Government of Kazakhstan continued to be a leader in economic reform among the Eurasian countries, building on its substantial progress in banking reform, mortgage industry development and accounting reform. U.S. cooperation with the Government of Kazakhstan on economic reform was boosted by the launch of the "Houston Initiative," a bilateral business development partnership targeted at small business development, development of the middle class and corporate good governance. Economic reforms and high oil prices contributed to Kazakhstan's strong economic performance in FY 2002. Oil prices, combined with growing output in almost every sector of the economy, helped Kazakhstan post an economic growth rate of 13.2% in 2001, after growth of 9.6% in 2000. The country's Gross Domestic Product (GDP) was $22.3 billion in 2001. Inflation has been under control at 6.4% in 2001 and is expected to be 6% in 2002. Real growth in GDP for 2002 is projected at roughly 10%.
After September 11, 2001, President Nazarbayev and his government made a firm and immediate commitment to support the United States in its fight against terrorism. Kazakhstan is a front-line state and has facilitated hundreds of aircraft overflights in support of Operation Enduring Freedom, signed an agreement to allow emergency landings of U.S. aircraft, and offered bases. The Government of Kazakhstan also remained strongly committed to cooperation on non-proliferation and demilitarization of the country's Soviet-era military infrastructure. The Kazakhstani Government, working together with the International Atomic Energy Agency (IAEA) and the United States, continued to develop options for the long-term storage of the three tons of weapon-grade plutonium from the BN-350 reactor.
Overview of U.S. Government Assistance
In FY 2002, the U.S. Government provided an estimated $95.93 million in assistance to Kazakhstan:
U.S. Government assistance continued to promote business development, democracy-building (including support for independent media, local government reform, non-governmental organizations, access to information, and education), humanitarian relief, health care, rule of law, military reform, nonproliferation, counternarcotics and regional security. Economic reform assistance helped Kazakhstan improve its legal and regulatory environment, strengthen its banking sector, and improve customs, mortgage, and private pension systems. In the health sector, the U.S. Government worked to increase access to quality primary health care, improve control of tuberculosis, and prevent the spread of HIV/AIDS. Through U.S. Government-funded training programs, Kazakhstani citizens gained the skills needed to implement reforms in primary health care, democratic reform, and business and finance. U.S. Government-funded activities promoting policy reform in the energy and oil sectors continued, as did activities promoting increased regional cooperation in solving environmental and energy-related issues, such as multilateral water resource management. Security related assistance for Kazakhstan focused on establishing professional armed forces in Kazakhstan capable of operating alongside NATO forces in peacekeeping and search-and-rescue and humanitarian operations, and on enhancing the reform of Kazakhstani Armed Forces. The U.S. Government also continued to help reduce threats of proliferation of weapons of mass destruction (WMD) and other weapons; ensure the security of nuclear materials at nuclear research and production facilities; enhance export control and border security capabilities; and redirect former Soviet weapons experts to peaceful projects. Kazakhstan has made major efforts in WMD nonproliferation and has paid increasing attention to concerns about conventional weapons transfers.
Training, Exchange, and Educational Reform Programs
Since 1993, U.S. Government-funded exchange programs have brought over 4,100 Kazakhstani citizens to the United States for short-term professional or long-term academic training, including over 400 in FY 2002. These programs give participants an opportunity to develop their skills and establish valuable contacts with U.S. counterparts.
USAID Training Programs: Through the Global Training for Development (GTD) and Strategic Technical Assistance for Results with Training (START) projects, USAID trained nearly 1,787 citizens of Kazakhstan, approximately 53% of whom were women, through 118 U.S.-based, in-country, and third-country training programs in FY 2002. Training focused on the development of microfinance institutions, NGO advocacy, support for small and medium-sized enterprises (SMEs), higher education, environmental issues, conflict resolution, and health care reform. Training also supported gender- and youth-focused initiatives. Returning program participants successfully supported local health clinics, civic education programs in local schools, regional trade programs, and the easing of tax obligations for certain NGOs. After training on public awareness campaigns and social marketing for health educators, one participant initiated an advocacy campaign in Kokshetau that has been successful in preventing the closing of family outpatient clinics. After participating in the civic education study tour, one participant successfully lobbied his school and nine others to begin using an expanded civic education curriculum. Using knowledge and skills gained from an SME development program in Israel, two participants developed a "Eurasia without Borders" project, through which they are working to persuade Central Asian governments to decrease taxes and fees for small businesses. Using new test writing methodology learned during a regional conference on family medicine faculty development, one participant successfully encouraged his medical academy to develop more objective exams for its students.
USAID Resource Network for Economics and Business Education (EdNet): Since its establishment in January 2001, EdNet has been helping reform-minded public and private institutions move toward market-related instruction and research. EdNet's website fosters greater sharing of information - including curricula and course syllabi - between universities in Central Asia and their counterparts in the West. Through the website, professors have received training on modern teaching methods, and gained access to up-to-date case studies and other teaching tools. EdNet also has distributed translated textbooks, computers and audio/visual equipment. EdNet sponsored a Visiting International Professors (VIP) Program. Seven VIP-Program professors have trained other local professors and worked to establish economics departments at local universities. By the end of FY 2002, 104 institutions had joined EdNet and more than 15,000 Kazakhstani students have been exposed to free market principles.
U.S. Department of State - Public Diplomacy Exchanges: In FY 2002, academic and professional exchange programs administered by the Public Affairs Section (PAS) and the Bureau of Educational and Cultural Affairs (ECA) continued to support democratic institution-building and the transition to a free-market economy. These programs focused on independent media, journalism, education reform, the economics of higher education, the rule of law, electoral reform, democracy, human rights, religious and ethnic diversity in America, NGO leadership development, grassroots participation in the political process, leadership training for women, Internet access and distance learning, small business and entrepreneurial development, public administration, English language instruction, and American studies. In FY 2002 approximately Over 300 Kazakhstani citizens traveled to the United States on academic and professional exchange programs. Approximately 65 Future Leaders Exchange (FLEX) high school students, 15 FSA Undergraduate students, and 15 Muskie/FSA Graduate fellows traveled to the United States on academic year or graduate degree programs. . Alumni of these programs have gone on to successful careers, filling positions in government, private industry, and academia.
Approximately 20 university professors gained experience in research, teaching and curriculum development under the Fulbright, Regional Scholars Exchange, and Junior Faculty Development (JFDP) Programs in FY 2002. Sixty businessmen and other community leaders traveled to the United States for internship and training programs on the Community Connections program. FY 2002 funding will provide opportunities for twenty Islamic leaders from Shymkent and Taraz to attend three-week programs in Bethesda and Philadelphia aimed at increasing understanding about religious and cultural diversity in the United States. An additional 78 Kazakhstani professionals participated in International Visitor (IV) programs on topics such as independent media management, university administration, NGO and youth NGO development, grassroots political party development, small and medium-sized enterprise management, global climate change, protection of the rights of the disabled, and U.S. immigration policies. In all, nearly 600 politicians, jurists, professors, university rectors, environmental experts, government officials, and NGO and community leaders have participated in the Embassy's International Visitor Program during the past ten years.
U.S. Department of State - SME Internships and Exchanges: Through a grant to IREX, the Department of State implemented a program of internships and community exchanges for SMEs from Kazakhstan for the past two years. In FY 2002, this program brought 40 Kazakhstani entrepreneurs from Almaty and Astana to Tucson, Tulsa, and Portland for five-week management training courses and internships with similar enterprises in the United States.
U.S. Department of Agriculture (USDA) - Cochran Fellowship Program: In FY 2002, the Cochran Program provided training for 14 participants in meat processing, livestock genetics, agricultural credit, cooperative development and plant health. These programs helped identify market production expansion factors and targeted relationships between enterprise development and economic welfare in rural areas of Kazakhstan. Participants in the livestock genetics program visited suppliers of U.S. genetics and learned about the latest reproduction management technologies. Group participants from East Kazakhstan and Almaty oblasts (regions) are working with a U.S. genetics company to implement new technology to transfer cattle embryos. Another Cochran Program addressed the main features of small-scale meat processing systems that targeted and successfully reached multiple levels of users.
U.S. Department of Agriculture - Faculty Exchange Program (FEP): FEP provides long-term practical training to qualified university educators from progressive agricultural institutions to increase their capability to develop academic programs and curriculum on agricultural economics, marketing, agribusiness, and agrarian law in a market-based economy. Two Kazakhstani educators participated in the FEP in FY 2002 and FEP sponsored the participation of five former FEP participants in an international conference in Moscow. Participants in the FEP program are teaching special courses and offering agricultural extension services through an agricultural high school designed to provide current agricultural producers and managers with up-to-date information on agricultural production and management.
U.S. Department of Commerce - Special American Business Internship Training (SABIT) Program: The SABIT Program exposes managers and scientists to practical training in American methods of innovation and management by placing them with U.S. companies for hands-on training. In FY 2002, 25 Kazakhstani companies and organizations participated in numerous SABIT programs, including the technology commercialization, transportation infrastructure, information technology standards, and energy programs. Alumni also participated in the development of local and regional associations, and actively promoted the acceptance and implementation of international standards in various industries.
U.S. Department of the Interior - Fish and Wildlife Service (FWS): FWS conducted a training workshop on the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) in Almaty, Kazakhstan in July 2002. The 42 participants included representatives from CITES management authorities, scientific authorities and customs, as well as representatives of Kazakhstan's Ministry of Foreign Affairs and Ministry of the Interior. The workshop provided training on the implementation of CITES by designated management and scientific authorities and on wildlife investigation and inspection techniques by law enforcement entities. Participants received copies of the CITES treaty and training materials in Russian to facilitate dissemination of information to a larger audience within their organizations and countries.
Democracy Programs
USAID Civil Society Programs: In FY 2002, USAID's civil society programs continued to foster NGO development, the free flow of information, and citizen participation. USAID sponsored civil society resource centers, which disseminated information, trained NGO leaders, and served as a meeting place for local NGOs. As a result of training and information, Kazakhstani civic groups increasingly expressed their views on draft legislation and lobbied for favorable provisions in FY 2002. For example, with USAID technical assistance, NGO partners helped shape a formal concept on state support to NGOs that the Government of Kazakhstan officially adopted. USAID's partners organized several important advocacy campaigns. One particular campaign, which focused on housing reform, resulted in USAID partner organizations collecting over 42,000 signatures in support of changes to the housing law, which is now is under revision in the parliament. Media coverage on this housing reform campaign included 137 newspaper articles, 40 radio shows, and 66 television programs. Due to these efforts, 237 new housing contracts were signed, which provided tenants improved rights. Also, 13 housing associations held elections for the first time.
USAID Support for Independent Media: In FY 2002, USAID continued to provide assistance to Kazakhstan's independent media, which was subject to increasing harassment. USAID support combined media-advocacy activities with direct technical assistance to non-state television and radio broadcasters, as well as non-government newspapers. Advocacy activities included monitoring and reporting on infringements of press freedom, publication of a monthly bulletin on media law, direct support for local media-advocacy organizations, and legal aid for independent news outlets. Technical assistance included organizing seminars and training for both managerial and technical personnel of independent stations, with the aim of enhancing the stations' technical sophistication and sustainability.
USAID Civic Education Programs: USAID's civic education textbook and curriculum reform program for tenth and eleventh graders reached 335 schools and over 23,930 students throughout the country. USAID also supported debate clubs, students' local government days, democracy summer camps, student action committees and other civic education activities for 733 students during FY 2002.
USAID Local Government Initiative: The Local Government Initiative helped more than 17 communities in Kazakhstan use participatory practices such as open hearings, task forces, commissions, and economic development boards. The innovative public-private Community Based Economic Development Committee was replicated in two additional communities. Two leading independent Regional Civil Service Training Centers and 219 trainers (including 156 women) improved the quality of training available to local government officials. The "How to Conduct a Public Hearing" training resulted in the national Anti-Monopoly Committee's adoption of public hearings as a prerequisite for any tariff increase at the local level. With USAID's assistance, the Center for Assisting the Development of Small and Medium-Sized Cities of Kazakhstan, the first ever membership-based association of municipal officials, was registered as a public association. Despite these small successes, the lack of a national government commitment to decentralization continues to limit broader impact of local government assistance. USAID is refocusing its efforts on building a constituency for decentralization and promoting social partnerships.
U.S. Department of State - Democracy Fund Small Grants Program: In FY 2002, the Embassy's Democracy Commission continued to serve as a flexible mechanism for supporting democratic institution-building. It awarded 19 grants totaling $154,000 to local NGOs working in the areas of human rights, women's political leadership, civic education, prisoner's rights, freedom of speech, and independent media. The Democracy Commission has contributed to the development of a healthy NGO sector in several cities outside of Almaty and Astana, including Shymkent, Taraz, Ust-Kamenogorsk, and Karaganda. It also provided equipment and management training for independent media, funding for human rights monitoring organizations, support for specific projects by women's leadership organizations, anti-trafficking seminars, environmental organizations, and civic oriented publications.
U.S. Department of State - Internet Access and Training Program (IATP): In FY 2002, IATP, which is administered by ECA through a grant to the International Research and Exchanges Board (IREX), expanded its public access sites to a total of 16. The centers help the alumni of U.S. Government-funded exchange programs as well as accredited journalists maintain their contacts and broaden professional horizons. The public access sites provide Internet access and training to alumni and journalists in 12 of the country's 14 oblasts. These locally managed centers serve as a platform for ongoing PAS programming, such as English Teaching seminars and Speaker Programs. In some cities, they have become de facto hubs around which are clustered USAID, Soros Foundation, Department of State and Department of Commerce-supported activities. IATP also makes distance learning available to people who would not otherwise have access to higher education.
U.S. Department of Commerce - Good Governance Program (GGP): In FY 2002, the GGP, in consultation with the Kazakhstani and American public and private sectors, NGOs and the Organization for Security and Cooperation in Europe (OSCE) launched a business ethics program to promote good business practices and to strengthen integrity in the public and private sectors. The GGP launch included a roundtable on business ethics that led to an agreement to develop basic guidelines for codes of business conduct in Kazakhstan. In FY 2002, the GGP also worked to engage the public and private sectors as well as educational institutions in initiatives to build a better business environment. These efforts included support and participation in a conference on Ethics in Business and Economic Education in Almaty with the Resource Network for Business and Economics and cooperation with the OSCE, NGOs, and the private sector on a conference in Almaty to help initiate dialogue between the public and private sectors on issues of corruption, transparency and accountability in the public and private sectors. As a follow up to these initiatives, the GGP included four professionals from Kazakhstan in its 2002 Business Ethics "Train-the-Trainer" program. Training program alumni have given lectures on business ethics at local universities and conducted training for businesses in Almaty and surrounding regions.
U.S. Department of State - Support for the National Endowment for Democracy (NED): In FY 2002, the Department provided approximately $316,000 in FSA funds and Human Rights and Democracy Funds (HRDF) to NED to supplement its grant-making activities in Kazakhstan. NED grants helped to create opportunities for independent journalists, members of the political opposition, and the public in general to participate in debates and discussion on the political situation in Kazakhstan, to provide alternative recommendations, and to balance the government dominated political landscape. Subjects for discussion have included the reinstatement of the Constitutional Court, the functions of democratic government, and responsibilities of citizenship in a modern democracy. Other programs have included civic education and "street law" programs. Programs to promote women's participation in the political process have also been supported. NED grants have enabled a number of organizations to produce and disseminate training materials, reports, bulletins, and newsletters. Kazakhstan also benefits from NED regional and cross-border programs that support important journals of discussion such as Tsentralnaya Aziya i Kavkaz, as well as programs conducted by Central Europeans to spread experience and training in democratic development.
Economic Development Programs
USAID Business Development and Economic Restructuring Programs: In FY 2002, Kazakhstan continued to make progress in business development and economic restructuring. U.S. Government-funded economic reform and business development activities throughout the country had a significant impact on enterprise accounting, municipal finance, and customer service. The program's focus is on the U.S.-Kazakhstan Houston Initiative Business Development Partnership. The Houston Initiative's aim is to support economic diversification, small and medium enterprise growth, and the expansion of a prosperous middle class. Many USAID economic assistance activities directly support the Houston Initiative. Highlights of USAID-funded activities include:
U.S. Department of Agriculture (USDA) - Emerging Markets Program: USDA's National Agricultural Statistics Service provided technical assistance and training to improve the capability of the Kazakhstan Government to provide adequate, timely, and relevant statistics on Kazakhstani agriculture. In FY 2002, technical assistance focused on survey design and data analysis in order to reduce survey errors. Assistance also focused on comparing data derived from multiple Kazakhstani government and private sources and the possibility of switching to survey-based agricultural statistics in official publications.
Trade and Investment Programs
USAID Efforts to Remove Investment Constraints: In FY 2002, USAID's work to remove investment constraints that impede the growth of businesses focused on both national-level reforms and local implementation of those reforms. Trade and investment advisors worked with local administrations in seven cities to streamline government procedures, and in the process, fostered greater participation of the private sector on issues that affect business. In Uralsk, the City Administration worked closely with our advisors to streamline the process for acquiring and developing land by a total of 146 days - eliminating more than 30 individual procedural steps. In Pavlodar, advisors teamed with local government officials to lower the average length of the business registration process from seventeen to eight days, nearly eliminating the fines imposed on investors who failed to complete the process within ten days. New businesses now register with only one government agency rather than three.
USAID Customs Reform Programs: Trade and investment advisors worked with the Ministry of State Revenues on an open and participatory process for the drafting of a new customs code. As a result, more than 90 businesses and several business associations participated in the development of the new code - the vetting of which included three open hearings over a period of several months. All drafts and comments were posted on an open access website for the public to see and provide comment. USAID advisors provided technical support in the drafting of the code and sensitized officials and members of Parliament on the need to ensure the code's compliance with WTO principles. USAID customs experts also gave training to Kazakhstani customs officials on how to combat corruption within the agency.
USAID Support for Association Development: Association development efforts produced positive results and helped strengthen the membership, management, and advocacy capacity of the Kazakhstan Forum of Entrepreneurs. During 2002, the Forum worked closely with USAID to draft and lobby for the adoption of a franchising law. It organized businesses to participate in a legal drafting group, organized a special seminar for Parliament to explain franchising, and worked with individual legislators to ensure the adoption of its proposals. After the law was adopted in June, members of the Forum established the Franchising Association of Kazakhstan to provide information and training on franchising, and to identify franchising opportunities. Another important success was the Forum's work on the new customs code. Working closely with USAID projects, the Forum educated its members on best international customs practices and lobbied heavily to have them adopted as part of the new customs code. More than half of its proposed changes was adopted. As of January 2003, the code is still being considered in the Parliament. The Forum has become an active private sector institution to promote economic change in Kazakhstan.
U.S. Department of Commerce - Business Information Service for the NIS (BISNIS): In FY 2002, BISNIS facilitated a variety of transactions in Kazakhstan, including in environmental technologies, telecommunications, financial services, machinery, and mining/power. Two firms formed partnerships in environmental technologies that received grants (EcoLinks), a new-to-market company made an initial sale of machinery, one U.S. company reported a major sale, and two others reported resolution of payment and ownership issues. In FY 2002 BISNIS efforts helped strengthen the business climate in Kazakhstan, facilitated the launch of new financing mechanisms, and spearheaded efforts to halt ill-developed legislation and adopt a new, more business-friendly franchising law in June 2002. BISNIS Almaty helped establish the new Franchising Association of Kazakhstan in February 2002
U.S. Export-Import (Ex-Im) Bank: In FY 2002, Ex-Im Bank approved a single, medium-term insurance transaction for the export of grain storage handling equipment by International Corporation of Milford, Indiana.
U.S. Department of Agriculture (USDA) - Export Credit Guarantee Programs: In FY 2002, USDA allocated $5 million of export guarantee coverage under the GSM-102 program, resulting in $2.3 million in registered U.S. exports of poultry and meat to Kazakhstan. Also in FY 2002 USDA allocated $15 million under the Supplier Credit Guarantee Program (SCGP), which resulted in $1.7 million in registered U.S. exports of poultry and meat to Kazakhstan. Therefore the GSM-102 and SCGP programs helped facilitate trade between Kazakhstan and the United States valued at a total of $4 million.
U.S. Trade and Development Agency (TDA): Continuing to recognize the importance of Kazakhstan to U.S. energy policy, TDA provided $34,910 for a definitional mission to look at downstream oil and gas projects. TDA also supported an orientation visit of two Kazakhstani officials to attend the Air Traffic Control Association's annual meeting and to visit with U.S. companies providing air traffic control communications equipment.
Energy and Environmental Programs
USAID Energy Sector Programs: In FY 2002, USAID assistance included work in both the oil and gas and the electric sectors. USAID worked with the Kazakhstan Petroleum Association to provide background materials in advocacy campaigns to improve the operating environment within the oil and gas sector. USAID started a Student Chapter of the Society of Petroleum Engineers at the Kazakhstan Technical Institute in Almaty. Assistance to the electric energy sector included support of Kazakhstan's participation in regional meetings on how to regulate a private energy sector, as well as support to consumers who may be eligible for subsidized utility bills. USAID also supported the Kazakhstan Energy Association (KEA). With two international and 65 local business and individual members, KEA is now a respected voice at the Ministry of Energy and Mineral resources and Parliament. KEA is beginning to work with utility providers on how they can better serve their customers. USAID also built two heating efficiency models in Atyrau to demonstrate low cost options for heating efficiency that can be easily replicated.
USAID Environmental Programs: In FY 2002, USAID's environmental programs focused on water management. Aspects of this work were part of a broader USAID regional program covering all of the Central Asian countries. USAID assistance helped establish policy and technical working groups involving participation from Kazakhstan and the other Central Asian countries to improve the collection, analysis, and exchange of hydrological data. Significant progress has been made towards establishing a regional communication system that will collect and distribute hydrological data. Water officials of all five republics have agreed to share this data with each other. A base station (meteor-burst system) for collecting such data will be established in the Almaty Region. USAID has also agreed to provide the hydro-meteorological agency in Almaty with a high-resolution terminal for receiving meteorological imagery from the National Oceanic and Atmospheric Administration (NOAA) satellite, which will be useful in projecting stream flows. USAID also continues work with oil field cleanup, petroleum policy, and regulatory reform.
U.S. Environmental Protection Agency (EPA): The EPA signed a Memorandum of Understanding with the Government of Kazakhstan in 2002 to work jointly to support the Central Asian Regional Environmental Center (CAREC), an NGO that promotes sustainable development and addresses environmental problems in the Central Asian republics. In FY 2002, the U.S. provided $200,000 for the CAREC's small grants programs. In FY 2002, 32 grants totaling $ 72,730 were awarded to support transboundary water-usage and water/energy efficiency programs. In FY 2002 EPA initiated, together with the CAREC, a project to improve water quality (drinking water and wastewater) in the Ili-Balkhash basin in southeastern Kazakhstan. With contributions from the Almaty regional government, work will proceed in rural and urban areas to reduce pollution, ensure safe drinking water, and institute sustainable water finance systems. Contacts are in place with authorities in Sinkiang province in China, whence the Ili River flows into Kazakhstan, to expand the project into a transnational project, which could then qualify for funding from the Global Environment Facility. In addition, the Kazakhstan Building Codes Project began in late FY 2002, building on and leveraging EPA-funded work in Russia. This project is designed to raise awareness of improvements in building design and efficiency, improve and update local building codes to introduce greater energy efficiency, reduce emissions of greenhouse gases (GHGs) and conventional pollutants, and promote economic growth and development through the introduction of new construction technologies.
U.S. Nuclear Regulatory Commission (NRC) - Nuclear Safety Regulation Program: In FY 2002, the NRC worked with the Kazakhstani Atomic Energy Agency (KAEA) to complete seminars on quality assurance in radiotherapy and radiological protection, help KAEC issue regulations covering processing and disposal of low and intermediate-level nuclear waste and sodium processing, and help KAEA issue a regulatory roadmap for disposition of the spent fuel from the BN-350 reactor.
U.S. Department of Energy (DOE) / National Nuclear Security Administration (NNSA) - Nuclear Reactor Safety Program: DOE is working with Kazakhstan to conduct an irreversible shutdown of the BN-350 reactor by providing technical assistance and equipment to place it in an environmentally, industrially and radiologically safe condition. The BN-350 breeder reactor in Aktau has been shut down by decree of the Kazakhstani government after being declared unsafe to operate by the IAEA. In FY 2002, work continued on the development of a detailed decommissioning plan to be submitted to the IAEA in FY 2003 for peer review. In order to remove the cesium 137 contaminant from the sodium coolant, DOE worked cooperatively with Kazakhstan to design, fabricate and install cesium traps, which are currently in operation. Additionally, design work is progressing on sodium draining and pacification procedures.
Security, Regional Stability, and Law Enforcement Programs
U.S. Department of Defense (DoD) - Cooperative Threat Reduction (CTR) Program: Kazakhstan has been a strong cooperative partner under the CTR Program, receiving an estimated $178 million in CTR assistance from FY 1992 through FY 2002. In May 2002, the Kazakhstan Parliament ratified the CTR Umbrella Agreement. This helped resolve internal GOK differences over granting tax and customs exemptions to USG assistance provided under the CTR Umbrella Agreement. During FY 2002, DoD provided CTR assistance in the following areas.
U.S. Department of Defense (DoD) - Cooperative Threat Reduction/Defense and Military Contacts: In FY 2002, multi-level military-to-military contacts and participation in bilateral and multilateral exercises continued to help integrate Kazakhstani military personnel into Western military operations and promote the modernization of Kazakhstani equipment and training in accordance with NATO standards. Some 22 military-to-military contact events were conducted in FY 2002. The highlights were trilateral consultations among the United States, Turkey and Kazakhstan and a survey of maritime forces, to coordinate, equip and train forces in the Caspian Sea region. All of the contacts that took place in FY 2002 encouraged the development of professional and apolitical armed forces capable of legitimate self-defense and of contributing to international peacekeeping operations. These contacts have also helped develop long-term institutional relationships between Kazakhstan and the United States, and promoted substantive dialogue on important defense topics.
U.S. Department of Defense (DoD) - Cooperative Threat Reduction/Defense Enterprise Fund: The U.S. Department of Defense has provided a total of $7.0 million to the DEF for equity investments, grants and loans in joint ventures with Kazakhstani former WMD enterprises. The DEF has invested $3.2 million in a Lucent project to create a second national telecommunications carrier using satellite communications and $3.1 million in a KRAS Group venture to manufacture and market printed circuit boards and consumer electronics.
U.S. Department of Defense (DoD) - Defense Reform Initiatives: DoD's defense reform initiatives in Kazakhstan in FY 2002 included exchanges on defense resource management (models for building a comprehensive defense budget) and defense-related environmental issues.
U.S. Department of Defense (DoD) Counter-Proliferation Programs: In FY 2002, the DoD/FBI Counterproliferation Program expended approximately $35,000 for Kazakhstan to support training. Under the DOD/U.S. Customs Service Program, an estimated $76,000 for Kazakhstan was provided for counterproliferation awareness training.
U.S. Department of State - International Military Education and Training (IMET) and Foreign Military Financing (FMF): In FY 2002, Kazakhstan was provided $2.75 million in FMF, plus an additional $2 million in supplemental FMF funding in the aftermath of the September 2001 terrorist attacks. FY 2002 saw the first major equipment deliveries to the Ministry of Defense, including $2.5 million in radios for the Peacekeeping Battalion and Mobile Forces, and $850,000 in personal equipment to the Peacekeeping Battalion. In FY 2002 and FY 2003, FMF funding will be used to construct Kazakhstan's first military base and training center near the strategically important oil fields on the North Caspian Sea. This center will enable joint training in the area of counterterrorism. In FY 2002, the MOD began an important shift to long-term force development planning with FMF by starting the process of developing a five-year plan. The plan represents a sign of dedication to military reform. This plan will not be formalized until FY 2003, but requests for FY 2002 equipment was based on the plan's objectives to continue development of Kazakhstan's Peacekeeping Battalion and capabilities in maritime security of the Caspian Region. Included in these requests were personal soldier equipment and 39 HMMWVs military vehicles.
U.S. Department of State - Export Control and Related Border Security (EXBS) Program: As a former nuclear weapons state with nuclear reactors, and an inheritor of Soviet biological and chemical weapons infrastructure and expertise, Kazakhstan has the potential to be a source or transit country for weapons of mass destruction (WMD), WMD materials and technology, as well as a source of conventional-weapons transfers to countries of proliferation concern. Kazakhstan has demonstrated a willingness to cooperate with the United States in preventing weapons proliferation, and the EXBS Program seeks to enhance Kazakhstan's nonproliferation capabilities. In FY 2002, the Department of State allocated $2.92 million in FREEDOM Support Act (FSA) and Nonproliferation, Anti-terrorism, Demining and Related Activities (NADR) funds to provide EXBS training and equipment assistance for Kazakhstan, building on $3.1 million in EXBS assistance in FY 2001, and $2.6 million in FY 2000. In FY 2001, the EXBS Program provided Kazakhstan's Border Guards, Customs Service and Ministry of Defense with over 130 radios to strengthen interoperability (34 officers were trained in the use of the radios), repairs to a patrol boat, x-ray machines and interdiction tool kits and intensive border inspection training in the United States for 16 Kazakhstani Border Guard and Customs officials to enhance the effectiveness of vehicle inspections and passenger interviews. In addition, assistance provided included night-vision devices, patrol vehicles, computers and other support equipment for border control officers, additional communications equipment and training for an export control command center, support equipment for border posts, radiation pagers and training, "train-the-trainer" workshops and training equipment, and additional maritime equipment. In August/September 2002, the EXBS Program Advisor and the U.S. Ambassador to Kazakhstan turned over 47 vehicles to Kazakh Border Guards and Customs, an event covered extensively and favorably by the local press. Also in FY 2002, EXBS funds supported U.S. Department of Energy (DOE) efforts to help Kazakhstan develop a computerized review system for nuclear export control licenses. DOE also continued providing internal compliance systems for export control at Kazakhstan's nuclear industries and facilities and training to help Kazakhstani officials recognize dual-use commodities and radioactive materials. These efforts were supportive of Kazakhstan's interest in joining the Nuclear Suppliers' Group.
U.S. Department of State - Support for Science Centers: Kazakhstan is an active member of the International Science and Technology Center (ISTC). In FY 2002, the Department of State provided research grants totaling about $2 million to former Kazakh WMD scientists to study chemical and radiation mortality and morbidity rates among children in former weapon test sites in Semipalatinsk and the Aral region; groundwater transport of radionuclides; carbon-containing materials; and calcium oligophosphate medicines. FY 2003 funding will likely remain the same.
U.S. Department of State - Nonproliferation and Disarmament Fund (NDF): NDF permits rapid responses to unanticipated non-proliferation opportunities or emergencies worldwide. In FY 2002, NDF continued to fund the draining and processing of the sodium coolant that accompanied the shutdown of the BN-350 plutonium fast breeder reactor in Aktau.
U.S. Department of State - Redirection of Biological Weapons (BW) Expertise: Under the BW Redirection program, the Department of State provides overall policy guidance and funding to support program activities carried out by the Departments of Health and Human Service, Agriculture, and the Environmental Protection Agency. Department of State also oversees the coordination and involvement of other USG agencies, including Defense, Energy, DHHS, USDA, and EPA, to provide technical and scientific expertise.
U.S. Department of State - Support for the Civilian Research and Development Foundation (CRDF): The CRDF announced three new project awards for Kazakh scientists and activated one Cooperative Grant Program award at $60,000. The CRDF received four proposals from U.S.-Kazakhstani research teams in response to its Special Competition for Research on Minimizing the Effects of Terrorist Acts on Civilian Populations. The results will be announced in 2003. As of August 2002, the CRDF is continuing support for one project involving Kazakhstan scientists under the Next Steps to Market Program. Three CRDF funded Regional Experimental Support Centers continue to operate in Kazakhstan.
U.S. Department of State - Anti-Crime Training and Technical Assistance (ACTTA) Program: In FY 2002, the Bureau of International Narcotics and Law Enforcement Affairs (INL) trained over 150 Kazakhstani officials from the Ministry of Internal Affairs, procuracy, courts, Customs Control Agency, Border Guard Service, Ministry of Justice, Financial Police and the Committee for National Security (KNB). The main objective of these training programs was to help officials combat the growing regional threat of narcotics trafficking and associated problems of organized crime, corruption, money laundering, and drug abuse. INL training programs also promoted the rule of law and cooperation among law enforcement agencies. In addition, INL also sponsored the participation of Kazakhstani officials in 14 regional conferences in FY 2002. However, INL programs in Kazakhstan have now begun to shift from the almost exclusive use of training initiatives toward the development of infrastructure and systems to advance objectives of judicial reform, democratic policing and institutional improvements in law enforcement. Programs aim to establish durable support structures to advance INL projects in Central Asia. INL has worked closely with the U.S. Department of Justice (OPDAT and ICITAP) in continuing to fund a DOJ/OPDAT Resident Legal Advisor and to implement an assessment of Kazakh law enforcement agencies and capabilities. INL also established the first INL law enforcement and drug control officer position in Central Asia and has begun funding the salary of a locally hired program coordinator. Incumbents in these positions will work closely with host government authorities in Kazakhstan and with U.S. missions in Central Asia to develop new programs in drug control, judicial reform and border interdiction programs with FY 2002 supplemental funding. A formal Letter of Agreement between the U.S. and Kazakhstani authorities will further solidify the crime control and drug enforcement relationship. Problems relating to corruption, a centralized bureaucratic system and human rights concerns continue. For FY 2003, INL proposes to continue programs to support judicial reforms, the Resident Legal Advisor program, and INL permanent positions in Kazakhstan that will support programs throughout Central Asia.
U.S. Department of State - Anti-Terrorism Assistance (ATA): Officials of the Government of Kazakhstan (GOK) participated extensively in ATA training provided in FY 2002. More than 340 participants received training in the following ten course topics: major case management; post-blast investigation; VIP protection; hostage negotiation; counter-surveillance; vital installations security; explosive incident countermeasures; WMD awareness seminar; WMD operations; and mail security. The Kazakhstani Government's Presidential Security Service opened a counter-terrorism training center in Astana, which it hopes will serve as a model for other nations in the region in fighting terrorism. The GOK has requested ATA "train-the-trainer" assistance in support of this effort.
U.S. Department of Justice - Overseas Prosecutorial Development Assistance and Training (OPDAT): OPDAT continued to post a Resident Legal Advisor at the U.S. Embassy in Almaty. In FY 2002, OPDAT organized a regional conference on organized crime, focusing on investigation and prosecution techniques that are both effective and that uphold civil liberties; supported an assessment of trafficking in human beings in Central Asia conducted by a DOJ attorney with expertise in this area; and provided a practical training program conducted by representatives from DOJ's Office of International Affairs (OIA) to address priority issues related to transnational judicial assistance in criminal matters between the United States and Kazakhstan. In June, the RLA participated along with high-level delegations from Kazakhstan, the Kyrgyz Republic, Tajikistan and Uzbekistan in a joint OPDAT-ATA counter-terrorism conference in Washington, DC dealing with the means of building a comprehensive legislative regime to combat terrorism and terrorist financing in compliance with United Nations and FATF standards. In July, the RLA helped prepare, accompanied and conducted follow-on for Kazakhstan's delegation to the OPDAT anti-corruption conference at ILEA Budapest, including working with the anti-corruption working group organized by USAID to focus on the supply side of bribes (i.e., the Foreign Corrupt Practices Act and the OECD Convention). At the request of senior members of the Kazakhstani judiciary, OPDAT partnered with the United Nations Office for Drugs and Crime (UNODC) and the Kazakhstani judiciary to conduct a seminar for legal and law enforcement personnel on drug crimes and money laundering. The seminar covered the UN drug conventions, counter-narcotics legislation in Central Asia, drug trafficking casework in the United States and Russia, and mutual legal assistance on drug-related criminal cases. At the conclusion of the conference, the Kazakhstani participants recommended that the drug-related offenses in their Criminal Code be amended to reflect international standards. In FY 2003, OPDAT expects to post an in-country RLA and provide technical assistance focused on drug trafficking, money laundering, criminal procedure, corruption and counter-terrorism.
U.S. Department of Energy (DOE) - Nuclear Material Protection, Control & Accounting (MPC&A) Program: DOE/NNSA's MPC&A Program is supporting the upgrade of three Kazakhstani former nuclear facilities' safeguards in accordance with IAEA's 1999 revised guidelines. This includes the Aktau BN-350 site. DOE assisted in completing prior upgrades from 1996-1999 to meet IAEA's earlier standards.
U.S. Department of Energy - International Nuclear Export Control Program: INECP provides support to the State Department's EXBS Program's nonproliferation goals by focusing resources on cooperative projects in the three themes that guide its domestic program: licensing, industry outreach, and enforcement. In May 2002, a ribbon-cutting ceremony was held in Kazakhstan for the INECP-sponsored System to Review Kazakhstan Exports (STORKE), a computerized automated licensing system now being used by the GOK licensing authority to farm out relevant license applications to nuclear technical experts, enhancing technical review of nuclear export license applications. Also in May, INECP presented a workshop to representatives of the Kazakhstan Atomic Energy Committee, National Nuclear Center - Institute of Atomic Energy and Institute of Nuclear Physics, Ministry of Foreign Affairs and the Nuclear Technology Safety Center on end-use/end-user analysis as applied by U.S. technical experts in the course of nuclear export license reviews. Issues covered included the context and basis for such analyses, the steps taken in analyzing end-use and -users, and practical exercises. In the area of Industry Outreach, representatives of INECP joined a Department of Commerce (DOC)-led team that met in September in Astana with the Kazakhstani Government's export control agency to discuss the U.S. Government's kick-off of internal compliance program training for Kazakhstani industry. The DOC's ICP software tool will be tested at a nuclear-related enterprise, necessitating INECP support of the Nuclear Technology Safety Center's participation in the customization process. INECP also is sponsoring a study of the export control-related implications of an additional protocol for Kazakhstan, including integration of reporting software with STORKE. While no specific progress was made on enforcement in Kazakhstan in FY 2002, plans and funding have been designated for enforcement-related training in FY 2003.
U.S. Department of Energy (DOE)-Aktau BN-350 Breeder Reactor Fuel Disposition/Decommissioning: The BN-350 breeder reactor in Aktau has been shutdown by decree of the Kazakhstani Government after being declared unsafe to operate by the IAEA. In FY 2002, work continued on the development of a detailed decommissioning plan to be submitted to the IAEA in FY 2003 for peer review. In order to remove the cesium 137 contaminant from the sodium coolant, DOE worked cooperatively with Kazakhstan to design, fabricate and install cesium traps, which are currently in operation. Additionally, design work is progressing on sodium draining and pacification procedures. In FY 2002, DOE also continued its efforts to place the spent fuel assemblies from the BN-350 nuclear power plant in Aktau in safe and secure storage. These assemblies contain nearly three tons of weapons-grade plutonium. In FY 2002, the program focused on evaluating different options for BN-350 spent fuel transportation and storage.
Social-Sector and Humanitarian Programs
USAID Primary Health Care Programs: In FY 2002, USAID continued to develop models of quality primary health care (PHC) at pilot sites in the Karaganda, East Kazakhstan, Almaty, and Pavlodar oblasts. USAID's PHC programs emphasized community involvement, higher-quality care, and better financing of PHC services. Kazakhstani communities have become better informed on health care through mass media health information campaigns. USAID-supported "Keeping Children Healthy" campaigns reached a wide audience through national television and newspaper coverage with specific activities in four cities and nearby rural areas, as well as Almaty Oblast. Campaigns are intended to improve people's knowledge on the importance of breastfeeding, appropriate use of antibiotics, and treatment for children suffering from diarrhea. Survey results show that 32.5% of people know the hydration and dietary requirements for children suffering from diarrhea, compared with 18% last year. In addition, a USAID-supported Drug Information Center in Karaganda Oblast is disseminating information on prescription drugs, so physicians can prescribe the most effective and least costly medications. An increasing number of Kazakhstani citizens, primarily women and adolescents, had access to free, confidential, and accurate reproductive health (RH) information through the Red Apple RH Hotline, making nearly 50,000 calls this year. The hotline leveraged private funding to extend to Uralsk in the far west and to three additional sites in future. Initial groundwork was laid for a Safe Motherhood pilot program that aims to modernize care for pregnant women and their newborns both at PHC and maternity hospital levels. Reformed primary health care practices now cover approximately 39% of Kazakhstan's population. Families in pilot areas increasingly relay on PHC practices for their care. PHC's outpatient visit share totaled 42.5% in 2002 (40% target). PHC is also better funded, producing 19% of total health expenditures, up from 12% last year.
USAID Infectious Disease Programs: USAID is providing technical assistance to the government in the nationwide implementation of the Directly Observed Treatment, Short Course (DOTS) tuberculosis (TB) strategy recommended by the World Health Organization (WHO). These joint efforts have led to a 57% increase in diagnosing TB (case notification rates) since 1995. Better notifications, along with anti-TB pharmaceuticals and free treatment of TB patients, have led to a 36% decline in TB mortality in Kazakhstan. Mortality in prisons has decreased by 85% since 1997. USAID and the Centers for Disease Control and Prevention (CDC) calculated that implementation of the DOTS strategy in Kazakhstan has already saved the lives of approximately 13,000 Kazakhstani citizens since 1998. The HIV epidemic remains relatively small by global standards and is concentrated among intravenous drug users. By September 2002, Kazakhstan reported 3093 cases of HIV infection though the actual figure is estimated about ten times higher. USAID, through CDC, is helping the Government of Kazakhstan establish more efficient surveillance system by setting up four sentinel surveillance sites in cities where HIV prevalence is highest and where trained experts on HIV data collection and analysis are available. A large scale study of 1600 injecting drug users and sex workers assessed behavioral risk factors, prevalence of HIV, hepatitis and sexually transmitted infections (STI) in Karaganda and Temirtau that will help design HIV prevention programs among these groups. USAID has started an extensive program of outreach work and peer education that is focusing on high-risk groups, such as intravenous drug users, sex workers and prisoners. USAID launched condom social marketing with a gala concert in Almaty in collaboration with the Mayor's office. Famous Kazakhstani rock stars performed and made statements encouraging healthy lifestyles.
U.S. Department of State - Coordinator's Office Humanitarian Assistance: In FY 2002, the Humanitarian Programs Division of the Office of the Coordinator of U.S. Assistance to Europe and Eurasia facilitated the delivery of $7.19 million in U.S. Defense Department excess and privately donated humanitarian commodities to needy populations in Kazakhstan at a cost to the U.S. Government of approximately $700,000. These commodities were distributed primarily through the U.S. private voluntary organization Counterpart International.
U.S. Department of Agriculture (USDA) - Food Aid Programs: In FY 2002, USDA provided $5 million in GSM-102 commercial financing to Kazakhstan, as well as a $15 million Supplier Credit Guarantee Program (SCGP). Kazakhstan, jointly with Uzbekistan, received $2.0 million in food assistance furnished through a USDA-funded program and administered through the American Red Cross for an Aral Sea program.
Partnership Programs
USAID Health Partnership Program: In FY 2002, USAID continued to fund partnerships between U.S. and Kazakhstani health organizations. The Kazakhstan School of Public Health (KSPH) in Almaty and Virginia Commonwealth University are focusing on health management education, as this has been identified as a critical need in Kazakhstan. Partners completed design of a new Master of Health Administration/Master of Public Health program, which will be the first of its type in Central Asia. A distance education program in public health and health management and a curriculum for a Ph.D. program in health services research are under development. The USAID-funded partnership between the City Health Administration in Astana and Mercy Health System in Pittsburgh, Pennsylvania, has produced a model urban primary health care clinic that emphasizes integrated delivery of social services.
USAID EcoLinks Environmental Partnership Program: USAID's EcoLinks Program seeks practical, market-based solutions to industrial and urban environmental problems. The program promotes partnerships linking Kazakhstani businesses, local governments, and associations with their counterparts in the United States, Central and Eastern Europe, and the other Eurasian states. These partnerships are helping Kazakhstani organizations to identify and remedy environmental problems, adopt "best practices," and increase trade and investment in environmental goods and services. EcoLinks conducts competitions for grants to carry out one-year-long partnership activities on a cost-sharing basis, and provides small grants to meet immediate short-term needs on an as-needed basis. In FY 2002, the EcoLinks Partnership Grant Program awarded one large ($49,000) and four small ($3,200 to $5,000) grants totaling $70,000.
USAID NGO Partnership Programs: USAID has supported successful partnerships between U.S. and Kazakhstani NGOs, such as those between the Almaty Association of Entrepreneurs and the Tucson Chamber of Commerce, the Kazakhstan Association of Tourism Agencies and the Tucson Visitors Bureau, and Tucson's United Way organization and the Confederation of Non-Governmental Organizations of Kazakhstan (CNOK). The NGO "Asar-United Way" was successfully launched in FY 2002 to advocate development of the civil sector.
U.S. Department of State - University Partnerships: The University Partnership Program continued to promote self-sustaining and long-term relationships between U.S. and Kazakhstani universities. These partnerships facilitate the exchange of information and scholars on important issues, including law, business administration, education administration, and agricultural reform. In FY 2002, ECA, in cooperation with PAS, awarded a new university partnership grant to the University of Maryland to establish linkages with three northern Kazakhstani agricultural departments. This grant is in addition to existing university affiliation grants to Indiana University and Vanderbilt University. In all, these affiliations link nine Kazakhstani universities with partners in the United States.
Cross-Sectoral Programs
Atyrau Regional Initiative: In FY 2002, the U.S. Government's Regional Initiative in Atyrau ended. It was part of a five-year agreement with Chevron/Texaco. However, assistance efforts there continue as part of regular USAID and other U.S. Government programming, principally in tuberculosis treatment programs and small and medium enterprise promotion.
USAID Conflict Prevention Programs: USAID sees conflict prevention as an ultimate goal of its overall program - one that is addressed already through its ongoing initiatives in equal access to water and energy resources and to quality health care; opening channels for grievances; and improving prospects for economic opportunity. In FY 2002, USAID began a community development program in Almaty, South Kazakhstan, and Zhambul Oblasts that addressed sources of conflicts in vulnerable communities through rehabilitation of small-scale social and physical infrastructure projects.
Eurasia Foundation: In FY 2002, the Eurasia Foundation made 55 grants totaling approximately $1.1 million to NGOs in Kazakhstan, with an average grant size of nearly $19,650. About 40% of these grant funds supported private enterprise development, with the remainder targeting improvements in the areas of civil society and public policy and administration. As part of the Foundation's efforts to foster democratic values at the grassroots level, it funded the efforts of one grantee to organize an advocacy campaign to help students demand cleaner and safer dormitories. To assist farmers in accessing capital, the Foundation awarded a grant to the Farmer's Fund of Kazakhstan to introduce credit unions to farmers and lobby the national bank and parliament for rules and legislation that support the formation of credit unions, so that more farmers will have access to cheaper credit.
Peace Corps: In FY 2002, the Peace Corps program in Kazakhstan focused on four sectors: teaching English as a foreign language, economic development, public health and environmental education. By year's end, 120 Peace Corps Volunteers (PCVs) were serving two-year terms of service in each of Kazakhstan's 14 oblasts working with Kazakhstani colleagues in local organizations. The Peace Corps awarded four grants, totaling $60,000 in the areas of education, environment and business. Since 1993, more than 500 PCVs have served in Kazakhstan.
Programs Promoting the Objectives of the Silk Road Strategy Act
In FY 2002, a number of U.S. Government-funded assistance programs contributed to the objectives laid out in the SRSA: promoting reconciliation and recovery from regional conflicts; fostering economic growth and development; promoting infrastructure development; increasing border control capabilities; and promoting democracy, tolerance, and the development of civil society. Please see the above sections for numerous examples of programs that contributed to one or more of these objectives.
USAID programs focused primarily on fostering economic growth and development, and strengthening democracy, tolerance and the development of civil society. In addition to the Houston Initiative, the USAID program supports regional trade promotion to bring people and businesses together as trading partners, especially among small and medium-sized enterprises. This is USAID's first major initiative aimed at increasing regional trade and is the first to employ technology designed to facilitate this goal including an easily accessible Internet-based regional trade network where businesses can locate offers to buy and sell goods and services. A team of local and expatriate trade advisors (located in each of the 11 Enterprise Development Centers in the region) will work with individual companies or use information on the web-site to find trade matches and facilitate deals. Fifty percent of the deals to date have involved Kazakhstani firms, leading to more than $180,000 in initial transactions. It is hoped that the upcoming official launch of the website (www.smetradecenter.net) will catalyze further interest and trade transactions.
Despite the increasingly difficult environment for the independent media and opposition parties, USAID found sufficient political space in Kazakhstan in which to successfully support programs and meet targets. USAID sponsored introductory multi-party training workshops for several political parties that focused on organizational, strategic, and message development. In efforts to increase the availability of information on civic rights and domestic public issues, this year 23,980 students participated in USAID's civic education courses. USAID-funded textbooks for tenth and eleventh graders include topics such as women in political life in Kazakhstan, international human rights, and civic responsibility. As a result of these activities, students are more aware of political and social issues and more active in solving them.
Preview of FY 2003 Programs
In FY 2003, USAID's priorities will include the promotion of enterprise growth, civil society development, information dissemination, improved health care, and environmental management. In the area of enterprise growth, USAID will focus on improving the business environment through a regional trade network, strengthening business advisory services and business-related education, and further developing financial mechanisms such as mortgages and microfinance. USAID's civil society program will continue to focus on the organizational development and sustainability of civic organizations. Civic advocacy and political party building programs will play important roles in this process. USAID will continue to support information dissemination activities such as civic education, anti-trafficking, and independent media. Legal reform programs, including a new judicial training activity, will also continue in the coming year. The local government program in Kazakhstan focuses on promoting social partnerships and creating constituencies for decentralization. USAID will begin a per capita health care financing program in the city of Almaty. Two pilot projects will be undertaken to develop models for treatment of multi-drug resistant TB. A treatment program for HIV/AIDS patients will also be implemented in FY 2003. USAID will focus environmental efforts on increasing citizen participation in public policy processes. USAID will also continue to focus on promoting energy efficiency, regional water management, and mitigating the impact of oil and gas development on the Caspian Sea.
In FY 2003, security related assistance for Kazakhstan will continue to focus on reducing the threats of proliferation of WMD, other weapons, and nuclear materials, enhancement of export control and border security capabilities, and redirecting former Soviet weapons expertise to peaceful projects. The U.S. Government will also continue its security assistance programs to establish professional armed forces in Kazakhstan capable of operating alongside NATO forces in peacekeeping, search-and-rescue, and humanitarian operations, and to enhance the Kazakhstani Armed Forces' military reform efforts. Approximately 41 events are projected under the Military-to-Military Contact Program in FY 2003. These include two exercises in Kazakhstan.
The U.S. Government, through the Department of State's academic and professional exchange programs, university partnerships, and internships, along with the Commerce Department's SABIT and Good Governance programs, will continue to support democratic institution-building, the transition to a free-market economy, and rule of law. Through cross-sectoral programs such as the Peace Corps, the U.S. Government will provide assistance in a broad range of issues to include teaching English as a foreign language, economic development, public health and environmental education.
In FY 2003, DoD anticipates completing the CTR-funded project to secure fissile material at Semipalatinsk and initiating projects to eliminate a former nuclear weapons storage site, dismantle liquid missile propellant facilities, and demilitarize the former Soviet chemical weapons production facility at Pavlodar. DoD plans to undertake a new BWPP project with Kazakhstan that will engage former biological weapons scientists in developing the capability to detect and diagnose outbreaks and to attribute them to natural or terrorist causes. This project also will seek to consolidate pathogen collections into central labs and to modernize diagnostic capabilities to minimize need for pathogen retention at vulnerable field stations. Additionally, in FY 2003, DoD will explore with the State Department, other agencies and Embassy Almaty the possibility of assisting Kazakhstan to strengthen its border control capabilities through the new CTR Weapons of Mass Destruction Proliferation Prevention initiative.
In FY 2003, the Export Control and Related Border Security (EXBS) Program will continue to support the Departments of Energy, Commerce, the U.S. Coast Guard and the U.S. Customs Service further delivery of equipment and training in the areas of nuclear licensing, legal and regulatory practices and procedures, as well as detection, interdiction, deterrence and enforcement. Maritime capacity building and increased Caspian border security efforts will be developed and implemented based on a June 2002 assessment of needs and capabilities of Border Guards and Customs Officials to patrol shipping lanes and secure their seaports. Upcoming plans include delivering additional survey meters, night vision goggles, training equipment for two training centers, and equipment for a command center. Ten additional Consolidated Interdiction Tool Kits (CITK) are scheduled to arrive in Almaty in February 2003, with IBIT II training following in March/April 2003.
FY 2002 FUNDS BUDGETED FOR U.S. GOVERNMENT ASSISTANCE TO KAZAKHSTAN,
INCLUDING EMERGENCY RESPONSE FUND (ERF) AND EMERGENCY SUPPLEMENTALS
(millions of dollars, rounded to the nearest $10,000, as of 12/31/02)
| FREEDOM SUPPORT ACT (FSA) FUNDS |
FY 2002 |
ERF Supplemental |
Emergency Supplemental |
TOTAL |
| U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT (USAID) | ||||
| - Economic Restructuring |
$1.46 |
|
|
$1.46 |
| - Private-Sector Initiatives |
$11.70 |
|
|
$11.70 |
| - Environmental Management |
$2.70 |
|
|
$2.70 |
| - Democratic Reform |
$5.00 |
|
$1.00 |
$6.00 |
| - Social-Sector Reform |
$6.00 |
|
|
$6.00 |
| - Cross-Cutting/Special Initiatives |
$2.49 |
|
|
$2.49 |
| - Eurasia Foundation |
$1.55 |
|
|
$1.55 |
| - Parking Fine Withholding |
$0.01 |
|
|
$0.01 |
| TOTAL USAID |
$30.90 |
|
$1.00 |
$31.90 |
| TRANSFERS TO OTHER AGENCIES | ||||
| U.S. DEPARTMENT OF AGRICULTURE (USDA) | ||||
| Agricultural Research Service (ARS) - BW Redirection & Collaborative Research |
$1.09 |
|
|
$1.09 |
| Cochran Fellowship Program |
$0.16 |
|
|
$0.16 |
| Faculty Exchange Program (FEP) |
$0.04 |
|
|
$0.04 |
| TOTAL USDA |
$1.29 |
|
|
$1.29 |
| U.S. DEPARTMENT OF COMMERCE | ||||
| Business Information Service for the Newly Independent States (BISNIS) |
$0.11 |
|
|
$0.11 |
| Special American Business Internship Training (SABIT) Program |
$0.50 |
|
|
$0.50 |
| TOTAL U.S. DEPARTMENT OF COMMERCE |
$0.61 |
|
|
$0.61 |
| U.S. DEPARTMENT OF STATE | ||||
| Bureau of Educational & Cultural Affairs (ECA) - Public Diplomacy Exchanges |
$4.55 |
|
|
$4.55 |
| EUR Bureau - Public Diplomacy Programs (including Democracy Commissions) |
$0.40 |
|
|
$0.40 |
| Coordinator's Office (EUR/ACE) Humanitarian Assistance - Transp. Costs/Grants |
$0.70 |
|
|
$0.70 |
| Export Control & Related Border Security (EXBS-FSA) [excluding Georgia BSLE] |
$2.30 |
|
|
$2.30 |
| Bureau of Internatl. Narcotics & Law Enf. Affairs (INL) - Anti-Crime Training & Tech. Assist. |
$0.50 |
|
$0.50 |
$1.00 |
| International Information Programs (IIP) |
$0.10 |
|
|
$0.10 |
| TOTAL U.S. DEPARTMENT OF STATE |
$8.55 |
|
$0.50 |
$9.05 |
| U.S. ENVIRONMENTAL PROTECTION AGENCY (EPA) | ||||
| Biotechnical Redirection Program |
$0.50 |
|
|
$0.50 |
| Environmental Programs |
$0.60 |
|
|
$0.60 |
| TOTAL EPA |
$1.10 |
|
|
$1.10 |
| U.S. DEPARTMENT OF ENERGY - Nuclear Reactor Safety |
$1.00 |
|
|
$1.00 |
| U.S. NUCLEAR REGULATORY COMMISSION (NRC) - Nuclear Reactor Safety |
$1.10 |
|
|
$1.10 |
| U.S. DEPT. OF HEALTH & HUMAN SERVICES (HHS) - Biotech. Engagement (BTEP) |
$1.05 |
|
|
$1.05 |
| NATIONAL SCIENCE FOUNDATION / CIVILIAN R&D FOUNDATION (NSF/CRDF) |
$0.50 |
|
|
$0.50 |
| TOTAL TRANSFERS TO OTHER AGENCIES |
$15.20 |
|
$0.50 |
$15.70 |
| TOTAL FY 2002 FSA FUNDS BUDGETED |
$46.10 |
|
$1.50 |
$47.60 |
| OTHER U.S. GOVERNMENT FUNDS (AGENCY BUDGETS) |
FY 2002 |
ERF Supplemental |
Emergency Supplemental |
TOTAL |
| U.S. DEPARTMENT OF AGRICULTURE (USDA) - Emerging Markets Program (EMP) |
$0.10 |
|
|
$0.10 |
| U.S. DEPARTMENT OF DEFENSE (DoD) | ||||
| Cooperative Threat Reduction (CTR) |
$7.64 |
|
|
$7.64 |
| Warsaw Initiative |
$0.13 |
|
|
$0.13 |
| DoD/Customs Counterproliferation |
$0.08 |
|
|
$0.08 |
| DoD/FBI Counterproliferation |
$0.04 |
|
|
$0.04 |
| TOTAL DoD |
$7.88 |
|
|
$7.88 |
| U.S. DEPARTMENT OF ENERGY (DOE) | ||||
| Materials, Protection, Control & Accounting (MPC&A) |
$2.60 |
|
|
$2.60 |
| Nonproliferation & International Security |
$10.10 |
|
|
$10.10 |
| Nuclear Reactor Safety |
$1.00 |
|
|
$1.00 |
| Russian Transition Initiatives (RTI) |
$1.60 |
|
|
$1.60 |
| TOTAL DOE |
$15.30 |
|
|
$15.30 |
| U.S. DEPARTMENT OF STATE | ||||
| International Military Education & Training (IMET) |
$0.80 |
|
|
$0.80 |
| NADR / Anti-Terrorism Assistance (ATA) |
$1.23 |
|
|
$1.23 |
| NADR / Export Control & Border Security (EXBS) |
$0.66 |
$2.00 |
|
$2.66 |
| NADR / Science Centers |
$2.00 |
|
|
$2.00 |
| DRL Bureau - Human Rights & Democracy Fund (HRDF) |
$0.25 |
|
|
$0.25 |
| ECA Bureau - Public Diplomacy Programs (ECE Account) |
$1.08 |
|
|
$1.08 |
| Warsaw Initiative / Foreign Military Financing (FMF) |
$2.75 |
|
$2.00 |
$4.75 |
| International Information Programs (IIP) |
$0.04 |
|
|
$0.04 |
| TOTAL U.S. DEPARTMENT OF STATE |
$8.81 |
$2.00 |
$2.00 |
$12.81 |
| U.S. DEPARTMENT OF EDUCATION - Fulbright-Hays Programs |
$0.01 |
|
|
$0.01 |
| U.S. DEPARTMENT OF THE INTERIOR - FISH & WILDLIFE SERVICE (FWS) |
$0.06 |
|
|
$0.06 |
| U.S. DEPARTMENT OF LABOR |
$0.20 |
|
|
$0.20 |
| U.S. ENVIRONMENTAL PROTECTION AGENCY - Environmental Programs |
$0.07 |
|
|
$0.07 |
| PEACE CORPS |
$2.33 |
|
|
$2.33 |
| U.S. TRADE & DEVELOPMENT AGENCY |
$0.70 |
|
|
$0.70 |
| TOTAL FY 2002 AGENCY FUNDS BUDGETED |
$35.44 |
$2.00 |
$2.00 |
$39.44 |
| TOTAL FY 2002 U.S. GOVERNMENT FUNDS BUDGETED |
FY 2002 |
ERF Supplemental |
Emergency Supplemental |
TOTAL |
| (FSA + AGENCY FUNDS) |
$81.54 |
$2.00 |
$3.50 |
$87.04 |
| VALUE OF TRANSPORTED DoD EXCESS & PRIVATELY DONATED COMMODITIES |
$7.19 | |||
|
TOTAL FY 2002 U.S. GOVERNMENT ASSISTANCE
(INCLUDING HUMANITARIAN COMMODITY VALUE) |
|
|
|
TOTAL
$94.23
|
