At a Cross Road of the Silk Road: Global and Local Impact of Regional Development in Kazakhstan Prof Siddharth S Saxena, Svetoslav Varadzhakov & Parjakti Kalra Cambridge Central Asia Forum Presented at: The 4 th Astana Economic Forum 3 rd and 4 th of May, 2011

Histroy The newly formed Customs Union between the three former Soviet republics of Kazakhstan, Russia and Belarus in 2010 and relates this form of economic and political cooperation to the times of the Mongol Empire when trade from Europe to China flourished under a single institutional framework. We provide views on the customs code accepted by the three member states, especially Kazakhstan, and highlight economic, political and social benefits that this form of cooperation could bring to the participating states and their close neighbors and trade partners and particularly aid development within the regions of Kazakhstan

Interestingly and ironically the Customs Union, despite re-uniting the countries from the Soviet Period is pushing the countries like Kazakhstan to diversify their supply and acquisition routes and networks and away from a Moscow oriented transport centeredness. Interestingly and ironically the Customs Union, despite re-uniting the countries from the Soviet Period is pushing the countries like Kazakhstan to diversify their supply and acquisition routes and networks and away from a Moscow oriented transport centeredness. This has both internal and external consequences! This has both internal and external consequences! This comes with both opportunities and challenges This comes with both opportunities and challenges

Regional Development Aspects Changing of the trade corridors also creates new pathways in the regions and induce growth opportunities Changing of the trade corridors also creates new pathways in the regions and induce growth opportunities Need for matching local production capacity with regional and global supply chain dynamics starts to grow New impact on contiguous regions across the countries creates interesting possibility for greater integration

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

Cleantech/Greentech Polymer and oxide semiconductor devices Cheap deposition of polymers by printing Improve devices by understanding physics Successful spin-out of technologies You have the sun! we have the technologies! Light-emitting diodesSolar cells Transistors

Technology some eg. Information and Communications Technologies e-health, e-governance, e-citizenship Next Generation Microelectronics and optoelectronics Biotechnologies, Pharmaceuticals, Medicine and Health Diagnostics Innovation in Food and Agriculture Technologies Integration of wind, solar, hydro power hybrid units High Precision Oil and Gas exploration and analysis Efficient Manufacturing of Products and Packaging Smart Infrastructure development like tunnels, bridges and pipelines

Recommendations to Increase Competitive Advantage of Kazakhstan Increase Capacity for innovation Diversify science base and research infrastructure Increase Capability to diffuse knowledge and experience through collective learning and networking systems This will Lead to a functioning knowledge-based cluster Support Entrepreneurial business community – Find enthusiastic partners to participate in local, regional, national and international programmes of innovation, change and new business creation

Cambridge Connection Cambridge Kazakhstan Development Trust Cambridge Kazakhstan Centre Cambridge Central Asia forum Famous Alumni and Teachers – Darwin, Newton, Kapitza, Keynes etc. Noble Prize Winners - 87 Global Outreach Cambridge Central Asia Forum as a dedicated interface with FSU ( 18 Years of joint initiatives. Economic, Environmental, Political and Technology Policy