Identifier
Created
Classification
Origin
08ASTANA614
2008-03-21 10:03:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Astana
Cable title:  

KAZAKHSTAN - SCIENCE AND TECHNOLOGY COOPERATION OVERVIEW

Tags:  TSPL PREL PGOV KSCA KZ 
pdf how-to read a cable
VZCZCXRO1276
RR RUEHLN RUEHVK RUEHYG
DE RUEHTA #0614/01 0811003
ZNR UUUUU ZZH
R 211003Z MAR 08
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 2110
INFO RUCNCIS/CIS COLLECTIVE 0446
UNCLAS SECTION 01 OF 02 ASTANA 000614 

SIPDIS

DEPARTMENT FOR OES/STC, SCA/RA, AND SCA/CEN

SENSITIVE

SIPDIS

E.O. 12958: N/A
TAGS: TSPL PREL PGOV KSCA KZ
SUBJECT: KAZAKHSTAN - SCIENCE AND TECHNOLOGY COOPERATION OVERVIEW

-------
Summary
-------

UNCLAS SECTION 01 OF 02 ASTANA 000614

SIPDIS

DEPARTMENT FOR OES/STC, SCA/RA, AND SCA/CEN

SENSITIVE

SIPDIS

E.O. 12958: N/A
TAGS: TSPL PREL PGOV KSCA KZ
SUBJECT: KAZAKHSTAN - SCIENCE AND TECHNOLOGY COOPERATION OVERVIEW

--------------
Summary
--------------


1. (SBU) EST Officer's January 20 - February 19 TDY visit to
Kazakhstan provided a timely opportunity to discuss the Kazakhstani
government's science and technology (S&T) infrastructure,
particularly in light of continued negotiations on a bilateral
Science and Technology Agreement. Kazakhstani officials expressed a
strong desire to continue and expand cooperation with the U.S. on
S&T issues. Kazakhstan is interested in cooperating with the U.S.
on fundamental sciences as well as applied areas, including
information technology and communications (ITC),oil and gas,
biotechnology, nanotechnology, atomic and nuclear research, space,
health, and metallurgy and mining. The Kazakhstanis appear to be
strongest in the biotechnology, oil and gas, and nuclear fields as
these receive broad government support. Kazakhstani officials made
it clear they would be interested in broad U.S. representation when
the first Joint Committee Meeting (JCM) is held to clarify the
mechanisms on how to make a bilateral S&T agreement work to its
fullest potential. This cable is the first of a series of four
cables summarizing EST officer's meetings in Kazakhstan. End
Summary.

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Bilateral S&T Agreement
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2. (SBU) The U.S. and Kazakhstan have been discussing a bilateral
Science and Technology Agreement since late 2003. The two sides
largely agreed some time ago on the text of the S&T Agreement;
however, the Kazakhstanis refused to accept tax exemption language,
as required by U.S. law, which prohibits the taxation of foreign
assistance. In preparation for Prime Minister Masimov's March visit
to Washington (which was ultimately cancelled),the Ministry of
Foreign Affairs appeared to have persuaded the other relevant
ministries to reverse course and agree to incorporate a tax
exemption into the S&T Agreement. The Kazakhstanis are optimistic
that the S&T Agreement will thus be ready for signature by the
Summer of 2008.

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R&D Policy in Kazakhstan
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3. (SBU) Kazakhstani research and development (R&D) goals include

the diversification of Kazakhstan's economy, the development of high
tech basic industry, and an increase in research expertise. Basic
research areas of focus include mathematics, physics, biology, and
chemistry. Kazakhstani officials hope to increase the number of
students attending U.S. universities as part of the country's effort
to strengthen its basic research sector. The Kazakhstani government
established the Bolashak (Future) Program in the 1990's which
currently sends 3000 students per year to study abroad at foreign
universities. A large percentage of Bolashak students go to the
U.S., where they study a wide range of topics, from the sciences to
finance. Approximately two percent of the national budget has been
committed to R&D.


4. (SBU) Kazakhstan has established a Science Development Program
for 2007-2012. The aims of the program include: upgrading research
infrastructure; training highly qualified research and engineering
personnel; increased R&D funding, including private investment;
improvement of the regulatory framework for R&D activities; and
building an information environment favorable for R&D.


5. (SBU) In order to upgrade infrastructure, a network of five
national research labs for collective use and 15 engineering labs
will be set up at local universities. They will be fully equipped
and meet best international standards. Universities will set up and
develop advisory centers for small- and medium-sized enterprises
(SME's),centers of advanced research, technology transfer
departments, student development labs, and small innovation
enterprises to produce new types of products. By 2012, the
government plans to upgrade material and technical resources of all
state research centers and research institutes.


6. (SBU) Another important aspect in Kazakhstan's Science and
Technology Development Program is the training of highly qualified
research and engineering personnel. Kazakhstan's aim is to train
young people in research and engineering professions that are in
line with national priorities in R&D and industrial and innovation
development. Kazakhstan also hopes to recruit local and foreign
research and engineering personnel to work in new national research
labs and design and development bureaus. An additional facet of
Kazakhstan's S&T development includes retraining and continued
professional development of specialists in a number of new
functional directions and research areas, including
commercialization of research products.

ASTANA 00000614 002 OF 002




7. (SBU) The government will provide targeted and selective funding
for promising research projects which will be administered by the
Ministry of Education and Science, which will support fundamental
and applied research, and the Science Fund, which will support
initiative and abstract applied research. The national research
system, which has been mainly funded by the government, is be
diversified through private co-financing. To attract private
investments, the Science Fund, or the Ministry of Education as
national budget program administrator, will call for proposals from
local enterprises interested in research products. The winning
company will provide 50 percent funding for the project chosen. The
Science Fund's share of all governmental budget allocations for
development will be increased up to 25 percent by 2010. The total
budget of the Science Development Program in 2007-2012 is KZT 44
billion ($361.5 million).

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Comment
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8. (SBU) Kazakhstan has invested a significant amount of money into
the development of a strong S&T infrastructure and has plans to
increase investment in the near future. It was readily apparent in a
number of meetings that Kazakhstani officials have a strong desire
to use the petro-dollar windfall to diversify Kazakhstan's economy
by strengthening its science and technology sector. In many ways,
however, there is still a strong disconnect between education and
research, a legacy of the USSR. Upon independence, Kazakhstan did
inherit strong agro-biotechnology and nuclear industries. These
areas are where Kazakhstan shows the greatest potential for
international cooperation, not only because of their strong funding,
but also because of the large number of Soviet trained specialists
who work in these centers. Because of Kazakhstan's long term goals,
the fields of ITC, oil and gas, nanotechnology, space, health, and
metallurgy and mining will also play important roles and may be
other avenues for future S&T cooperation. End Comment.

ORDWAY