Astana, Kazakhstan, Jan. 22
By Daniyar Mukhtarov - Trend:
Any issue related with the opportunity of renting a land plot for agricultural operations to foreign companies or physical entities in Kazakhstan will become politicized, Kazakh political analyst Dosym Satpayev told Trend on Tuesday.
He recalled that a scandal occurred over a statement in Ukraine in 2013 that the Chinese intend to lease three million hectares of farmland for 50 years. Later it turned out that the matter rested in the drip irrigation systems.
"As for Kazakhstan, transferring the farmland to the foreigners contradicts the law on national security," he said. "The country's food security envisages the protection of the economy, including the agro-industrial complex upon the article 22. The country is able to ensure the physical and economic affordability of the qualitative and safe food products for the population, sufficient to meet the physiological norms of consumption and population growth."
The analyst said the reality shows that during the investors' activity in other sectors of Kazakhstan's economy, for example in the oil and gas sector, the country's interests were not always protected. Satpayev gave the example of environmental decline which causes the suffering of citizens, although similar claims can be made against many Kazakh companies.
"But I am sure that Kazakhstan has the opportunity to maintain and develop its own competitive agribusiness. To this end, we need only to reduce the influence of large landowners associated with the elite, who are only interested in controlling Kazakhstan's agriculture, but not in its development. There is no real competition. There is no strong financial support from the state and the second-tier banks do not intend to lend to agricultural producers," the expert said.
Satpayev said as a result of this the shops in the country mainly sell processed agricultural products of other countries.
"But the most interesting will come after Kazakhstan's joining the World Trade Organization. Political will, real state support and innovative projects are needed for Kazakhstan's agriculture to become competitive. It would be naïve to think that foreign companies that will come to Kazakhstan's agriculture will immediately begin sharing all their technology. It would be better to buy these technologies, train local professionals from young people, who massively move to cities from the villages and rural areas," Satpayev said.
The issue of lease of agricultural lands to foreign companies in Kazakhstan requires legal study, the country's Regional Development Minister Bolat Zhamishev told Trend earlier.
"It was about the investment commitments of those who claim to receive land in Kazakhstan. The president spoke about effective land users. That is, if we are talking about the need to attract investment from foreign companies in agriculture, then it is important to understand how we should fulfill it. It is clear that we are not talking about the transfer of land to ownership, but only its lease. And this is a large complex of issues primarily in the legal sphere, which must be discussed in detail," the minister said.
Kazakh government must first deal with the issue of secondary renting of agricultural land among the residents of the country, as, speaking of the legal aspects, the secondary rent of agricultural land have been banned in our country, according to the minister.
"It is necessary to sort it out, because such a ban limits land turnover," the minister said.
On Jan. 17, in his message to Kazakh people President Nursultan Nazarbayev pointed out at the need for transition of agriculture to the path of innovation.
The president said that food needs will increase in the world, investments will be made in this sector, and today's farmers must take care of production, and not be content with short-term achievements connected with weather conditions.
The President went on to say that "primarily those introducing new technology, continuously increasing productivity, operating on the basis of the best international standards should work on the land."
"In the first place it is important to establish an effective land market, including through transparent pricing mechanisms. Lease of farmland only taking into account investment and the introduction of advanced technologies will increase competition and we should not be afraid of it, even if foreign companies will lease and show the best examples of how to deal with land and how to produce agricultural goods," Nazarbayev said.
The head of state has recommended removing all barriers to business development in agriculture.
Translated by N.H., E.A., L.Z., M.L.
Edited by C.N.