The Eurasian Research Institute held the II International Congress on Economics, Finance and Energy (EFE’2016).

In memory of the 850th anniversary of death of Khoja Akhmet Yassawi, Eurasian Research Institute of International Kazakh-Turkish University named after Khoja Akhmet Yassawi  jointly with the International Relations Department of al-Farabi Kazakh National University with the academic support of the Turkish Economic Association and the International Turkic Academy and financial support of the Turkish International Cooperation and Development Agency held the II International Congress on Economics, Finance and Energy (EFE’2016) titled “Political Stability and Economic Development” on May 16-18, 2016 in Almaty.

In 14 sessions within the Congress of EFE’2016 in total 115 scientists and experts with 73 papers from 51 different organizations and 13 countries such as Turkey, Kazakhstan, the USA, Azerbaijan, India, Iraq, China, the Turkish Republic of Northern Cyprus, Libya, Georgia, the United Arab Emirates took part.

The purpose of the Congress was to identify the relationship between political stability and economic development from the perspective of all countries, especially the Eurasian countries, share the results of research on this subject with interested parties and jointly implement future projects. The importance of political stability for economic development and improving the standards of living was discussed in many literatures. Political stability is particularly important for those countries that were not able to develop economically. Investments and national income of the country are one of the major factors underlying the relationship between political stability and economic development. From this point of view, reports that were presented at the Congress EFE’2016 analyzed the impact of political stability (instability) on economic development.

On the first day of the two-day Congress of EFE’2016, General Consul of the Republic of Turkey in Almaty Riza Kagan Yilmaz, Executive Secretary of the Ministry of Education of the Republic of Turkey, elected to the Turkish Grand National Assembly as deputy Dr. Yusuf Ekinci, President of The Board of Trustees of the International Kazakh-Turkish University named after Khoja Akhmet Yassawi Prof. Dr. Musa Yildiz, Member of The Board of Trustees of the International Kazakh-Turkish University named after Khoja Akhmet Yassawi Prof. Dr. Muhittin Simsek, First Vice Rector of al-Farabi Kazakh National University Prof. Dr. Mukhambetkali Burkitbayev, Rector of the University of Foreign Languages ​​and Professional Career Prof. Dr. Sabri Hizmetli, I Vice-President of the International Kazakh-Turkish university named after Khoja Akhmet Yassawi Prof. Dr. Mehmet Kutalmysh and Director of the Eurasian Research Institute of the International Kazakh-Turkish university named after Khoja Akhmet Yassawi Assoc. Prof. Dr. Nevzat Simsek delivered speeches, as well as greeting speeches of the Minister of Economy of the Republic of Turkey Mr. Mustafa Elitash and the President of the International Turkic Academy Prof. Dr. Darkhan Kydyrali were read out.

The first opening speech of the conference was given by the General Consul of the Republic of Turkey in Almaty Riza Kagan Yilmaz. Mr. Riza Kagan Yilmaz began his speech by thanking the Eurasian Research Institute of the International Kazakh-Turkish university named after Khoja Akhmet Yassawi that had organized the Congress and other supporting institutions. When considering the question of how to overcome this crisis by referring to the global crisis due to various reasons and slowdown in the growth of some countries, he noted that the sub-themes of the Congress in the economic sense had been very well chosen. In a new era the role of the economic security increased, while during the cold war the military security was at the forefront. There is no political security without economic security and these two issues are interconnected with each other. In his speech Mr. Riza Kagan Yilmaz gave opinion on the need of reforms aimed at increasing the incentives for production in the world in order to overcome the downturn in the global economy. He added that this kind of discussions would contribute to the solution of the problem related to the global financial and political peace.

The second opening speech was given by the President of The Board of Trustees of the International Kazakh-Turkish University named after Khoja Akhmet Yassawi Prof. Dr. Musa Yildiz. Prof. Dr. Musa Yildiz in his speech mentioned that the first congress on economics, finance and energy had been held two years ago and told about their intention to institutionalize the Congress of EFE. Stressing the importance of the theme of this year’s congress on political stability and economic development, he noted that President of the Republic of Kazakhstan Nursultan Nazarbayev had also emphasized the role of political stability in the public address. First Vice Rector of al-Farabi Kazakh National University Prof. Dr. Mukhambetkali Burkitbayev in his speech stated that the congress was important not only for Kazakhstan or Turkey but also for all countries in Central Asia and along the Silk Road. According to him, the issue of increasing Kazakhstan’s political stability and integration is also mentioned in the 2050 strategy. Kazakhstan keeps its relations with neighboring countries regular and stable and will continue to maintain the stability. Executive Secretary of the Ministry of Education of the Republic of Turkey, elected to the Turkish Grand National Assembly as deputy Dr. Yusuf Ekinci stated that Khoja Akhmet Yassawi’s knowledge shed the light in this land and guided the humanity. Member of The Board of Trustees of the International Kazakh-Turkish University named after Khoja Akhmet Yassawi Prof. Dr. Muhittin Simsek in his speech specified the university’s three missions such as education, research and finding solutions to society’s problems. According to him, the world is built on economy, finance and energy and the President of Kazakhstan Nursultan Nazarbayev is well aware of them and there is a stability in these three elements. Rector of the University of Foreign Languages ​​and Professional Career Prof. Dr. Sabri Hizmetli thanked all the institutions that had contributed to the organization of the congress. He stated that Kazakhstan was Central Asia’s star and the country had increased the power of economy over the years by strengthening trade and energy sectors. According to him, this kind of conferences would strengthen relations between the countries of the Turkic world. Concluding his speech Prof. Dr. Sabri Hizmetli wished success to the participants. Director of the Eurasian Research Institute of the International Kazakh-Turkish university named after Khoja Akhmet Yassawi and coordinator of the EFE’2016 Congress Assoc. Prof. Dr. Nevzat Simsek in his speech stated that the congress was organized due to UNESCO’s declaration of 2016 as the Khoja Akhmet Yasawi Year. Taking into account the 25th anniversary of Kazakhstan’s and other CIS countries’ independence, the theme of the congress was determined as political stability and economic development. Assoc. Prof. Dr. Nevzat Simsek said that at the Congress the impact of political stability or instability on economic development would be discussed. He stated that they had began the series of the International Congress on Economics, Finance and Energy in 2014 as a coordinator and the purpose of the congress was to become a platform where the issues related to economy, finance and energy could be discussed together. The opening speeches were followed by congratulatory message of the President of the International Turkic Academy Prof. Dr. Darkhan Kydyrali.

After the opening speech, the Congress began with a plenary session moderated by coordinator of the EFE’2016 Congress and Director of the Eurasian Research Institute Assoc. Prof. Dr. Nevzat Simsek. During the plenary session Director of the Institute of Economics of the Ministry of Education and Science of the Republic of Kazakhstan Prof. Dr. Orazaly Sabden, Prof. Dr. Winston Nagan from the University of Florida and Prof. Dr. Recep Kok from the University of Dokuz Eylul of the Republic of Turkey presented their papers as invited speakers.

Prof. Dr. Orazaly Sabden in his presentation titled “The Development of the Economy by Organizing the Structure of Small and Medium-Sized Enterprises in Kazakhstan” provided information on the basic tools and reforms for economic development in Kazakhstan and in the world. He mentioned 6 important factors such as science and technological development, ecology, security, space studies, spiritual wealth for peace and economic development in the world. Prof. Dr. Orazaly Sabden said that one of the most important elements in Kazakhstan’s economic development was development of SMEs. Despite Kazakhstan’s aiming to reach 50% of SMEs contribution to the country’s gross domestic product (GDP), currently this ratio is only around 18%. He provided detailed information about the reforms that can be made to contribute to the increase of the rate. Prof. Dr. Orazaly Sabden underlined the importance of loans to businesses, changes and additions to the law on entrepreneurship. Noting that trade’s share in small enterprises is 40%, while production’s share is only 3%, he stressed the need of special conditions that would encourage the enterprises to produce. According to him, universities should join the government and business as in western countries. Prof. Dr. Orazaly Sabden added that in order to increase the public interest in entrepreneurship in Kazakhstan, it was necessary to increase the programs that would provide information about entrepreneurship in the media, as well as the number of offices that would help in other subjects.

Prof. Dr. Recep Kok from the University of Dokuz Eylul of the Republic of Turkey in the presentation titled “The Effects of Country Risk Components on the Reel Sector” analyzed the risk factors of Turkey, Kazakhstan, Azerbaijan and Russia for the period of 1998-2015. Financial, economic and political risks in these countries were examined in detail with various econometric techniques. Despite the fact that financial risks were reduced in Kazakhstan, Azerbaijan and Russia in 2005, the risk increased again after 2014 and this occurred due to the fall in oil prices. According to Prof. Dr. Recep Kok, inability to convert the resources into wealth through investment by means of human and physical capital has created a temporary artificial prosperity and the countries caught the Dutch disease during this period. In addition, Prof. Dr. Recep Kok stated that Kazakhstan was more stable than Azerbaijan, while Russia was more unstable compared to other countries due to spending its opportunities to show itself in the international arena.

Prof. Dr. Winston Nagan from the University of Florida in his speech titled “Sustainable Development and Radical Inequality” began presenting information about theories of sustainable development and economic development. According to Prof. Dr. Winston Nagan, economic theory should be logical and its operational capacity should be strong. In this regard he touched upon the problems of the neoclassical model. Human capacity and resources are very important for economic growth. Equitable growth requires opportunity of freedom and capacity of freedom. If there is no capacity of freedom, then there is no human capital. If there is no human capital, then there is no economic growth. Factors affecting this cycle can negatively impact sustainable economic growth.

During 1 plenary session and 14 sessions on May 16-18, 2016, academics and experts under the main theme “Political Stability and Economic Development in the Eurasian Region” discussed many issues such as Political Stability and Economic Development in Eurasian Region, Political Stability and Economic Development in Turkey, Relations of Political System and Economic Performance, Causes, Ratings and Descriptions of the Political Instability, Political Instability’s Economic Influence Channels, Global Development and Political Stability, Global Crisis and its Effects on Eurasian Countries, Economic Globalization and its Effects on Eurasian Countries.