Attachment_J._10_Final_Report_CATF_evaluation.pdf

25 November 2015

This publication was produced for review by the United States Agency for International Development. It was prepared by Michael Josypenko, Director of Special Projects, Institute of Export, Export House, Peterborough, PE2 6FT, United Kingdom.

EVALUATION OF

CENTRAL ASIA TRADE

FORUM 2015, FINAL

REPORT

ALMATY KAZAKHSTAN, 28 – 29 OCTOBER 2015

The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.

EVALUATION OF

CENTRAL ASIA TRADE

FORUM 2015, FINAL

REPORT

ALMATY KAZAKHSTAN, 28 – 29 OCTOBER 2015

Contract No. AID-176-I-11-00003, Subcontract REC-FFP-087

EVALUATION OF CENTRAL ASIA TRADE FORUM 2015, FINAL REPORT iii

CONTENTS

Executive Summary

Introduction

Background

Methodology

Overview of CATF 5

General Feedback

Opening Ceremony and Plenary Session

Roundtable Sessions and Seminars

Exhibition Zone

Networking Events

Analysis of Attendees

Evaluation of Issues

Format, Content and Style

Exhibition Area

Frequency and Location

Funding and Budget

Communications and Outreach

Future Vision for CATF

Measuring the Success of CATF

Overall Conclusions and Recommendations Format, Content and Style

Frequency, Locations and Venue

Cost and Funding

Measuring the Success of CATF

Outreach Activities

Future Visions

Annex I, References

EVALUATION OF CENTRAL ASIA TRADE FORUM 2015, FINAL REPORT 1

EXECUTIVE SUMMARY

All individuals questioned by the author commented favourably on the quality and value of CATF 2015. The event delivers a combination of activities targeted at differing audiences, including high level assessment of current regional economic and geo-political events, discussions on various issues relating to regional trade and specific sectors, as well as sessions targeted specifically at business attendees.

The author considered other formats of the event, including a focus purely on advocacy and policy issues, as well as a shorter event; however the author’s analysis supports feedback from partners and attendees that the current mix of content is good.

However, improvements to the management of programme, content and planning are recommended to ensure a more streamlined and effective event which is focused on the needs of each element of the attendees.

The current location and venue are considered by all interviewees to be the best option at present; however the growth in attendees mean that the current format needs to be addressed. More efficient planning and management of group sessions can overcome some issues, but the author recommends that the focus of future Forums should be on raising the quality of the event, rather than the size.

The status of the exhibition area is an important consideration. This takes up considerable space and cost, which could be used for other elements, and the author saw little evidence of outcomes generated specifically by the exhibition. The presence of companies and products may be desirable, but this can be achieved by other forms of showcasing. There is demand for an expansion of the exhibition zone, although some of this comes from exhibitor groups within South Asia. Any expansion would not be possible within the current location, while a move to an external location alongside the Forum would cause administrative and logistical issues and costs. Any expanded exhibition area would have to run along commercial lines, which may conflict with the objectives of CATF, the Regional Economic Cooperation project or

USAID.

At present the event is totally financed from aid or development sources, with minimal commercial income. Potential exists to secure sponsorship for future events from commercial organizations, both within the CAR and beyond. This potential is likely to increase in the future with Kazakhstan’s accession to World Trade

Organization.

Other funding options exist through other business support or development organizations, while a partnership, either with a commercial conference organizer, or a body such as World Economic Forum could produce a self-supporting event.

Communications are generally acceptable, within the context of the existing event.

Longer term planning would make outreach and organization more effective, while the expected increase in international interest means that non-native communications must be carefully handled.

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From 2017 onwards, the terms of reference and objectives of the event will change.

The vision of funding partners, such as USAID, and the question of whether they wish to retain some control, or to achieve an independent event, is vital in shaping the future direction of the Forum. The anticipated growth in interest in the region as a result of Kazakhstan WTO accession and other initiatives is likely to bring greater interest from outside the region, which can help to shape the nature and content of the event.

The potential exists for the event to contribute up to 50% of costs from new sources by 2019, while self-sufficiency is a realistic vision within 6 years. Other methods of measuring success will depend on the objectives chosen by the funding partners and others, but in the current format a combination of advocacy / policy forming and business-related goals and metric are suggested.

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INTRODUCTION

Background

The Central Asian Trade Forum, organized by Chemonics Inc, Almaty Kazakhstan and United States Agency for International Development (USAID), has taken place in

Almaty, Kazakhstan each year since 2010. The fifth edition of the event took place at the Rixos Hotel, Almaty on 28 / 29 October 2015. The event is an element of

USAID’s Regional Economic Cooperation (REC) programme, managed by

Chemonics, and the goals of the event, as described in the Concept Paper on the event website1 include:

Develop trade among Central Asian countries, Afghanistan, and other large trading partners

Inform about export potential, competitiveness and development prospects of

Central Asian markets

Provide platform for business deals, including trade exhibition during the Forum

Motivate participants to develop export opportunities by choosing the best exporter based on company’s achievements during previous years

Develop recommendations and proposals to eliminate barriers in trade development

Exchange experience among participants and strengthen cooperation

Present new tools for effective economic development in Central Asia

Present Forum results to media

In October 2015 The Institute of Export, based in the United Kingdom was invited to conduct an evaluation of the 5th edition of the Central Asian Trade Forum (CATF) on behalf of Chemonics and USAID. Specifically, it was asked to consider, and provide recommendations, with the intention of delivering the highest quality of Forum possible, based on the following questions:

What is the best format for CATF? Should it be oriented more towards expo or advocacy activities, i.e. concentrate on B2B matchmaking and display of new products or promote the reform on policy level through in-depth look into trends of the trade sector or continue concentrating on both as it does now?

How frequently should the event be conducted?

Where is it better strategically to conduct future CATF events - Almaty, another city/country, shifting locations every year?

How should the implementer track the impact/results of the Forum?

What facilities should be used for different streams of the Forum, such as conference, workshops, expo etc. - the same high-status 5-star hotel that attracts high-level officials or larger and more accessible facilities where more businesses can attend and conclude deals?

How the cost of the event can be shared by USAID, participants, donor organizations, private sector? What fund-raising strategies would be effective for this event?

What should CATF accomplish within 3 to 6 years?

Assess effectiveness of the outreach campaign before, during and after the event.

1 http://eng.catradeforum.org/static/tmcms/pdf/conception_.pdf , viewed 2 November 2015.

http://eng.catradeforum.org/static/tmcms/pdf/conception_.pdf

EVALUATION OF CENTRAL ASIA TRADE FORUM 2015, FINAL REPORT 4

This report is intended to provide guidance to support the future development of

CATF, from 2017 onwards.

Methodology

Because of the short notice of the request from Chemonics, it was not possible to gather detailed information or conduct research prior to the Forum; therefore the visit itself would constitute the first opportunity for the Institute of Export to assess the event.

The author, Institute of Export Director of Special Projects, Mr. Michael Josypenko attended the two day event as representative of the IOE, after arriving in Almaty on the preceding afternoon. The visit included attendance at the Forum in full for both days, including the opening ceremony, plenary session and panel discussion, a number of roundtable events and seminars, as well as networking lunches, evening reception and fashion parade. In addition, the visit incorporated an examination of the exhibition feature within the Forum. After the end of the Forum, Mr. Josypenko also joined an informal internal debriefing and review meeting on Friday 30 October.

On arrival at the Forum on the morning of 28 October, an initial overview briefing was held with Mr. John Thissen, Director, Public Financial Management Caucasus and Central Asia PMUs, based in Washington D.C. A list of recommended contacts for formal interviews was supplied by Mr. Viktor Prodedovich, Chief of Party, USAID Regional Economic Cooperation Project (REC) at Chemonics Almaty office.

This list consisted of key partners and participants at the current, and previous editions of the Forum. This list included representatives from USAID, both in

Kazakhstan and in other regional centres, employed on the REC and other projects, event partners and sponsors, across the Central Asian Region, including a representative from Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)

GmbH, Representatives from regional Embassies, Chambers of Commerce, Centers for Economic Development. The list also included other moderators, trainers and participants from round-table and seminar sessions, including independent business experts, consultants and academics.

In addition to formal interviews with selected partners and stakeholders, the author also undertook informal discussions at every opportunity with a range of attendees of the Forum, including representatives from business, donor organizations, consultants, and exhibitors at the Forum.

Because of the demands of moderating or participating in the Forum it was not possible to meet with all of the recommended contacts for formal interviews during the course of the two day Forum, and a small number of contacts were approached by email, with the assistance of a member of the Chemonics staff in Almaty, and were invited to provide feedback by email to specific questions.

Following the initial visit, further desk research was undertaken, considering alternative venues and locations, as well as other practical and organizational

EVALUATION OF CENTRAL ASIA TRADE FORUM 2015, FINAL REPORT 5

elements. Further data and information was also requested and received, both from

Chemonics as well as EZ Solutions, the event management contractor.

The resulting data, combined with the contents of onsite interviews and personal observations was then analyzed and evaluated, and forms the basis of this draft report.

EVALUATION OF CENTRAL ASIA TRADE FORUM 2015, FINAL REPORT 6

OVERVIEW OF CATF 5

General Feedback on the Event:

All of the individuals questioned in formal or informal interviews commented favourably on the quality and value of CATF 2015. Those individuals who had attended previous editions of CATF referred to the positive development of the Forum as a significant event for developing trade relations within the region:

Attendees were also positive overall about the choice of venue and location for the event – recognising that the Rixos hotel provides a suitable location for an event of international stature, and featuring leading politicians and experts from Kazakhstan and across the region. However, the size and space limitations of the venue were recognized.

The specific views of the respondents depended (not surprisingly) on their perspective and on their involvement with the event. Therefore the representatives of Pakistan and Bangladesh, both of which have a strong interest in encouraging businesses from their countries to exhibit within the exhibition, focused on the size limitations of the exhibition area, and the need to take measures to increase the available space.

In contrast, interviewees who had a role in moderating or presenting in round table sessions tended to base their feedback on their experiences in those sessions.

Opening Ceremony and Plenary Session:

The opening ceremony was particularly notable for the high profile presence of the

US Ambassador to Kazakhstan, George Krol and the attendance of Zhanar Aitzanova, Minister of Economic Integration of Kazakhstan; this was commented on by a number of respondents. The subsequent plenary sessions provided an opportunity for representatives from the countries within the region to present on current issues and their impact, although one respondent did comment that the session consisted of pre-planned speeches, and that it would have benefited from a greater element of discussion about solutions to problems.

Round Table Sessions and Seminars:

The author attended a number of sessions over both days of the conference, including:

Session Day

Export Development of Horticultural Products in Central Asia Day one

Perspectives for Trade Development between South and Central Asia

Day one

International Best Practices in Export Development – Business Case Studies

Day two

“It’s already a brand!” –

Maximillian Foedinger, Consultant and Expert of the Project

Increasing Efficiency in Kazakhstan’s Public Sector.

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New Realities of Transport and Logistics for Trade Development in Central Asia

Day two

Export Marketing for Central Asian Businesses Day two

Quality & Competitiveness of Export Products – ISO 9001 Day two

These sessions covered not only a wide range of subjects, but also different styles of content, ranging from technical discussions, targeted for a specific expert market, to business-oriented advice. All sessions were well attended and appreciated by attendees, although in some sessions there seemed to be some uncertainty about what the target audience was. For example, in the first part of the seminar on Best Practices in Export Development, where much of the content appeared to be targeted at exporting companies, a show of hands revealed very few representatives from business in the audience.

The various sessions also featured considerably different approaches to audience involvement; some sessions (particularly the business facing ones) generated a considerable amount of interaction and questions from the floor, while others had little or none. This may be in part due to the nature of the subjects, but was also possibly a result of the style of the moderators of the sessions.

Some sessions also appeared to have been designed with little consideration of an overall objective, and seemed to be designed to enable a number of speakers to participate; more control of content at the planning stage, preparation and briefing of speakers and more forceful time management may be useful in this area.

The popularity of the roundtable and seminar sessions also meant that most, if not all rooms were full, with delegates often having to stand. It was clear to see that a number of business visitors had planned to attend specific sessions in advance.

The round table sessions also saw a number of technical issues, with equipment failures, and lack of coordination or continuity between English and Russian language presentation slides. These issues may be a result of event and technical staff being stretched too thinly between rooms, and will doubtless be addressed for future events.

Exhibition Zone:

The author also spent time in the exhibition zone, talking to exhibitors and assessing displays. The stands covered a wide range of types of business and participation;

some stands were occupied by relatively experienced exporting companies, some of which had participated in previous Forums; other exhibitors appeared to be less experienced or well prepared. Some booths were occupied by organizations who provide support to support developing businesses, such as the company Spinna; others seemed to represent a number of small artisans.

Understandably the objectives and expectations of companies varied. The representatives of chocolate manufacturer Rakhat, who had previously exhibited, and who won a “Best Exporter” prize, saw the exhibition as a good promotional opportunity. By contrast other exhibitors seemed more interested in selling products from the stand; one company, selling food products consistently sold goods in bags to

EVALUATION OF CENTRAL ASIA TRADE FORUM 2015, FINAL REPORT 8

attendees, and appeared to have brought large quantities of product for the purpose of selling.

Networking Events:

The author attended various networking events, including the fashion show and appreciation letter event and the gala buffet dinner. The fashion show was an interesting opportunity to showcase local design talent, and provided entertainment for attendees, although the appreciation letter formalities seemed to be overly long.

The dinner event provided good networking opportunities, and enabled the author to interact with a number of attendees; however the format of the Best Exporter Awards was not ideal, with considerable background noise from the room.

Analysis of Attendees:

Details of attendees was requested by the author, and supplied by event managers, E Z

Solutions (Lyudmila Dmitruk) on 8 November. According to these statistics a total of

663 persons attended CATF 2015 over the two day period.

Based on information supplied at the time of registration for CATF, the background and activity of the visitors was assessed: the largest categories of visitors were as follows:

Category of attendees:2

Category of Attendee

Number of attendees

International organizations * 119

Associations / Chambers of Commerce ** 73

Government Departments 71

Consultants 47

Representatives from specific industry sectors (food / agriculture, healthcare, textiles, chemicals / pharmaceutical, construction, electronics

Transport / logistics 41

Other businesses, including trading companies 44

Other categories, including media 48

Information not supplied 31

* The category of “International organizations” includes USAID, and Chemonics staff:

2 Data based on spreadsheet of attendee registrations supplied by EZ Solutions, 8,, 11

November 2015

EVALUATION OF CENTRAL ASIA TRADE FORUM 2015, FINAL REPORT 9

** The author believes that the category of “Associations / Chambers of Commerce” also includes some representatives from companies exhibiting within the exhibition area, under the supervision of Chambers of Commerce.

Based on the information supplied, it is difficult to assess whether the representatives from specific industries were actually from businesses or from other types of activity within the sector, (such as business support agencies, trade associations, or other experts). However, assuming that between 50% - 66% of these representatives were from businesses, it is possible to estimate that business visitors made up between 175

– 215 out of the total of 663 attendees. This comprises between 26% - 32% of all overall attendees.

Nationality of attendees3

Nationality

Number of attendees

Kazakhstan 372

Kyrgyzstan 77

Afghanistan 64

Uzbekistan 47

Pakistan 24

Tajikistan 23

Turkmenistan 4

USA * 14

Others ** 16

* US visitors excludes most USAID representatives; most of these appear to have been registered as Kazakhstan origin.

** Other nationalities of visitors included Latvia, France, Switzerland, Belarus, Georgia, S. Korea.

In addition to the official figures, a further 351 attendees were registered separately to attend the sessions on ISO 9001 certification which were organized by TŰV

International Certification, who handled the administration and registration directly.

These attendee details are not included in the above analysis; however it is reasonable to assume that a large number of these attendees were from business background. On that basis, it is possible to estimate the total attendance at around 1000 persons, of which between 500 – 600 might be from business background.

3 Data based on spreadsheet of attendee registrations supplied by EZ Solutions, 8 November

2015.

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The author understands that these additional participants were not able to take part in any other elements of the Forum, but may be considered as a part of the attendance for statistical purposes.

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EVALUATION OF ISSUES:

Format and content.

The objective of the Central Asian Trade Forum is a subject to be considered in some detail.

The draft concept paper, published on 2 July 2015 on the CATF website 4 contained eight objectives, which were set out in the introduction to this document, and which included “…Develop trade among Central Asian countries, Afghanistan, and other large trading partners…”.

A press release, published on the US AID website on 28 October5, describes the purpose of CATF as: “…to discuss the current state of trade development in the countries of Central Asia and the broader region, promote discussion of each country’s trade facilitation prospects, and promote regional cooperation within the context of the new regional and global economic environment…”

This latter definition suggests a more generalised objective, with less direct focus on developing trade within the region.

Ultimately, the future direction of CATF will be shaped by the vision of USAID as the current primary funding partner, in particular:

Whether CATF is intended to remain as a part of a wider Regional Economic

Cooperation Programme, Whether USAID wish to retain a measure of control of the event, Whether the event is intended in the future to be an independent “stand-alone” project, with its own internal objectives.

Based on personal observations by the author, combined with formal and informal interviews and conversations with attendees and partners, CATF 2015 appeared to deliver a combination of activities, targeted at differing audiences.

A “high level” assessment of current economic and geo-political events in the region, delivered by Ministerial representatives from the region.

Panel discussions of various issues relating to regional trade, specific sectors, and export development, delivered by experts, academics, government and non-government officials.

Exporting advice, targeted specifically at companies, delivered by business experts.

4 http://eng.catradeforum.org/static/tmcms/pdf/conception_.pdf, accessed 15 November 2015 5 http://en.car-rec.net/press/press_releases/usaid_hosts_the_fifth_annual_central_asian_trade_forum/ , accessed 15 November 2015 http://eng.catradeforum.org/static/tmcms/pdf/conception_.pdf http://en.car-rec.net/press/press_releases/usaid_hosts_the_fifth_annual_central_asian_trade_forum/ http://en.car-rec.net/press/press_releases/usaid_hosts_the_fifth_annual_central_asian_trade_forum/

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The Forum also acted as a host for other specific activities which appear to be a continuation of ongoing initiatives organized elsewhere;

An ongoing dialogue on Transport and Logistics in CAR

A programme of seminars on ISO 9001 certification, organized by TÜV and partners.

This mixture of activities prompted one interviewee to comment that the Forum organizers “… need to decide whether to focus on macro-economics or micro, Macro is focused on decision makers, micro on businesses – who is your audience?...”

However, another interviewee offered a more balanced point of view, suggesting that he saw no problem with the Forum having a combination of advocacy and business-related content, providing that this combination was consistent with the overall objectives of the event. The same speaker also pointed out that attendees from business form an important element of a conference of this type, and that there should be a “golden balance” between numbers of attendees from business and academic / government / agency background, with a minimum of 50% from business.

A representative from GIZ echoed these thoughts, suggesting that the event

“…Should provide a forum for “Business talking to business” – i.e. one business talking to another, but also experts talking to business.” , but also suggesting that it should not only be business-focused, but include technical, policy or advocacy sessions, involving academics, administrators, civil servants, business representatives and working groups.

The involvement of senior Government Ministers (or Deputies), Ambassadors, high profile academics and other expert speakers can undoubtedly provide a level of prestige, credibility and publicity which have helped to enhance the reputation of the

Forum to date. These would seem to be an essential component for future events.

Similarly, the Forum would seem to have an important role in facilitating and driving macro-economic debate and analysis of significant issues within the region, as well as collaborating to support the development of an inter-regional and international trade in specific industry sectors.

The author also shares the view of some interviewees that the Forum has a valid role in encouraging trade at the level of individual businesses, by acting as a meeting-point, generating and nurturing contacts, and also providing expert insights on specific subjects in order to encourage greater cross-border sales.

These three strands can form the basis for an effective series of Forums in the future, and this subject will be considered further in the context of future objectives and measures for assessing the success of events. However, it will be important to retain a balance between these different strands of activity. Too great a focus on delivering low-level export preparation to businesses risks undermining the prestige of the overall event, while a Forum focusing purely on macro-economic, policy and academic debate may alienate business and reduce its effectiveness.

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Maintaining a mix along these lines will also require a greater level of control and discipline, in order to ensure that all aspects can be covered satisfactorily within the existing two day time frame while providing content to meet the expectations of attendees. It may be wise to reduce the duration of some panel sessions – various participants commented that some panel meetings appeared to be designed to enable a specific number of speakers to participate, rather than to achieve a meaningful debate.

Similarly, some sessions (particularly those featuring business insights) could be delivered more effectively and in a shorter period of time, by using a workshop format. Tighter control of moderators and expert contributors will undoubtedly be required.

The presence of external programme elements, such as the ISO 9001 seminars organized by TŰV should be taken into account in future planning, but should not be a significant factor in any decisions over the wider Forum.

Exhibition Area:

At this point it would be wise to consider the role and format of the exhibition area.

The exhibition area at CATF 2015 featured around 60 companies or artisans displaying products (or in some cases services) from Central and Southern Asia.

Nationality of companies in exhibitor zone: 6

Nationality companies

Kazakhstan 23

Kyrgyzstan 11

Uzbekistan 8

Tajikistan 1

Pakistan 8

Afghanistan 6

Other 4

As was noted in the preceding pages, the companies in the exhibition zone are made up of a wide range of different sizes and levels of experience, ranging from established exporters to small artisan producers, and this was reflected in their objectives and activities – Some were happy to use the event for general profile building and networking, while others were focused on selling products at the stand.

The exhibition zone occupies a considerable amount of space within the Forum area, at a time when the Forum is close to capacity at the current venue, with a shortage of

6 Based on data from exhibition brochure

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alternative venues (see below). Therefore it would be helpful to analyze the role of the exhibition zone in generating the outcomes in terms of potential new business contracts which were reported in days following CATF 2015.While the Forum overall generated Letters of Intent in excess of $45 million value, outcomes from direct sales at the exhibition area, reported one week after the Forum did not exceed US$ 2,000.7

However it is not clear whether any of the large possible business gains, reported in the form of Letters of Intent (LOIs), were generated because of the exhibition zone, or whether they would still have occurred without the presence of the zone. If these

LOIs have occurred as a direct result of the exhibition, this would be a strong argument in favour of the exhibition zone. If they happened without any involvement of the exhibition area, the direct financial value of the exhibition is open to question.

At the same time, it would be helpful for the organizers to clarify their concept of what purpose the exhibition area is intended to serve in the context of the Forum;

An opportunity to showcase successful exporters in the region?

An opportunity for new exporters to make contacts or generate sales?

A showcase of high quality products from the region?

A business networking opportunity?

A chance to showcase the work of USAID and other organizations, and the companies they support?

At present the exhibition area appears to fulfil all of these aims to a limited extent, but appears to be a compromise. More clarity of the purpose of the exhibition area would help to define its future role.

If the value of the exhibition in its current format is not clear, new formats might be considered, which might offer a more effective showcasing opportunity, while making better use of the space available. This might comprise a smaller number of static showcase or brochure displays of companies / products around the edges of the ballroom(s), while the inner space of the ballrooms is used for networking or refreshment breaks. This would have the extra value of giving the companies a bigger audience for their products, while making better usage of space. Some companies or products could also be showcased more effectively in the format of a “live” event, along similar lines to the fashion show.

If the exhibition area is seen to have a value, consideration might be given to extending it further, although such a move would probably require a move to an external location, which would bring logistical challenges. Delegations from Pakistan and Bangladesh have already expressed an interest in bringing larger groups of exhibitors in the future. However an expansion of the exhibition area would certainly require it to operate on a commercially viable basis, involving a higher level of fees, and higher administrative workload, as well as a need to attract buyers to cater for the expectations of a larger number of exhibitors. Stakeholders might also consider the appropriateness of a commercial exhibition being organized under the auspices of an aid agency.

7 Based on information provided by email by Viktor Prodedovich on 6 November 2015.

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Frequency & Location

Interviewees were asked about the preferred location and venue for the Forum; all commented that the location, in Almaty, and the venue at the Rixos offered a good choice for the event.

Kazakhstan was quoted as a good choice of host country:

It acts as a regional travel and transport hub, with good flight connections to other countries in the region.

It is accessible for visitors from most, if not all countries in the region.

Delegates were asked about the possibility of hosting the event in other Central Asian countries; some interviewees from Uzbekistan suggested that country, but admitted that visitors from some CA countries might face difficulties in obtaining travel permits or visas to enter Uzbekistan.

When this issue was probed further, delegates responded that Uzbekistan might be considered as a venue for an additional event, over and above the main forum, but would not be a practical choice for the main CATF.

Interviewees were also asked about alternative locations within Kazakhstan, such as

Astana. Once again, all of the people interviewed agreed that Astana would not be a suitable alternative; reasons given for this opinion included:

Almaty is the primary location for such events

Almaty is the business centre of Kazakhstan

The climate in Astana is not ideal at different times of the year (too hot, too cold), Government and bureaucrats would prefer to travel to Almaty and would be more likely to attend.

With regard to the specific choice of location, the Rixos hotel was considered as a suitable venue, as it provides an attractive, high quality venue for high profile visitors

(i.e. government officials, senior civil servants, administrators and academics), who currently comprise a considerable element of the attendees and speakers. However, the limitations of the venue in terms of space, under the current format of the Forum, were recognized.

The author has investigated alternative choices of venue within Almaty, focusing on five star hotels, with sufficient prestige to be acceptable to attract high profile visitors, as well as an international audience. The following hotels were considered, with the hotel Rixos also included for comparison purposes:

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Hotel

Venue Facilities

Other Conference Events held there

Bedrooms

Rixos Hotel, (current location) 5 star

3 ballrooms, 5 Diamond Suites, total capacity 1455 sqm. 8

236 rooms, plus 2 suites

Almaty Intercontinental Hotel

4.5 star / 5 star

3 plus ballroom, Largest has capacity for up to 500

- 700 people, total capacity 1124 sqm 9

Kioge Kazakhstan 2015 & 2016 (exhibition at Atakent Expo, conference at Intercontinental)

270 guest rooms

Ritz Carlton Hotel 5 star

5 ballrooms, 1163 sqm space, capacity of 200 seating in 3 ballrooms, 10

Deluxe Travel Market, Kazakhstan, Apr 2016

125 rooms, 20 suites, Other five star hotels with smaller meeting facilities are not included. Hotels of less than five star rating were not considered for this analysis, on the grounds that they would not have sufficient attractiveness for high profile or international visitors; it was also anticipated that they might not have suitable meeting or event facilities, for the same reason.

From the above comparison it would appear that a limited number of other five star hotels have event or meeting facilities which match those of the Rixos hotel; however this research is based on remote desk research, and actual facilities have not been viewed by the author.

Another alternative venue which might be considered is the Atakent Exhibition

Centre, which hosts a number of exhibitions across various industry sectors, many of which feature a conference element, which is either held within the expo centre, or in the close-by Best Western Plus Atakent Hotel (4 star). However it is considered that neither the exhibition venue itself, nor the Best Western hotel would provide a suitable, high profile venue for the conference element of the Forum.

It should not be forgotten that hotels and venues in other locations (such as Astana) might offer comparable or more extensive conference facilities; however, given the feedback above, a change of location to Astana purely for the sake of conference facilities would not seem to be a wise move.

At present, there seems to be little option but to continue to use the Rixos hotel as a venue, assuming that the attraction of high profile government and VIP speakers continues to be a fundamental element of the organizer’s strategy for the event.

8 http://almaty.rixos.com/meeting-conference/detail/MEETING/59/76/0 accessed 25 November 9 http://www.ihg.com/intercontinental/hotels/gb/en/almaty/alaha/hoteldetail/meetings-events#scmisc=nav_meetings-events_ic& accessed 25 November 2015 10 http://www.ritzcarlton.com/en/Properties/Almaty/Events/Weddings/Venues.htm accessed 25 November 2015 http://almaty.rixos.com/meeting-conference/detail/MEETING/59/76/0 http://www.ihg.com/intercontinental/hotels/gb/en/almaty/alaha/hoteldetail/meetings-events#scmisc=nav_meetings-events_ic& http://www.ihg.com/intercontinental/hotels/gb/en/almaty/alaha/hoteldetail/meetings-events#scmisc=nav_meetings-events_ic& http://www.ritzcarlton.com/en/Properties/Almaty/Events/Weddings/Venues.htm

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However, the issue of space availability and overcrowding will need to be addressed in other ways, as discussed elsewhere in this document.

The author was also asked to consider the frequency of the event. Up till now, CATF has taken place on an annual basis. It should be noted that most major conference events take place on an annual basis, providing continuity which reinforces the brand and its place as a significant event in the calendar. On that basis, it is recommended that CATF should continue in this format.

It is also important to consider that the economic, political and regulatory environment within the Central Asian region has undergone significant changes in the recent past, and it can be reasonably expected that this will continue in the short and medium term future. Therefore it is appropriate that a forum which seeks to facilitate trade against a backdrop of a changing environment should continue to function on at least an annual basis, in order to retain its topicality and relevance.

In terms of duration, the two day format appeared to work well; attendee numbers remained high on day two, although this was influenced by the addition of the separate ISO 9001 seminars which attracted an extra 350 visitors. Many major conferences operate as one day events – in its current format, and with a mixture of objectives, it is difficult to see how this could be achieved for CATF. However it would be wise to review the duration of some sessions within the programme, with the intention of reducing some longer sessions into a shorter one or two hour window.

This could be done by greater discipline on content, speakers and moderators, and by using other delivery mechanisms, such as smaller break-out groups. The resulting time savings could be used to operate some popular round tables more than once, which would increase capacity and reduce overcrowding.

Funding and budget.

CATF 2015 was organized with a budget of approximately US$ 300,00011. This currently consists almost entirely of contributions from aid and development agencies, with the majority derived from USAID, and smaller contributions from other partners, such as European Bank for Reconstruction & Development (EBRD) and Deutsche

Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH.

The budget covers operating costs, including venue hire, event management, equipment rental, food & drink, expenses for high profile and VIP guests, and administration costs.

At present there is little commercial income, either in the form of participation fees or commercial sponsorship. The cost of participation in the trade exhibition is quoted at

US$ 100.00 per participating company for the two days of the Forum. Anecdotal reports suggested that some participants in the exhibition did not pay, but this was not confirmed. Even assuming that all exhibitors paid in full, it is unlikely that this would

11 Information provided by Viktor Prodedovich, Chemonics Inc, Altmaty in interview on 30 October

EVALUATION OF CENTRAL ASIA TRADE FORUM 2015, FINAL REPORT 18

fully cover the costs of room hire, provision of stands and furniture and other administrative costs.

Commercial sponsorship has been considered in the past, but not actively pursued while the option of charging a participation fee to attendees was also considered for

CATF 2015, but was not implemented because of concerns over the possible effects on participant numbers12.

According to Amy Lovejoy, Director, Regional Office of Economic Development, USAID/Central Asia13, the objective of USAID is to create a sustainable, high quality and effective event for the future. Further funding is not ruled out; indeed Amy speculated that increased funding levels might be leveraged; however this would require a clear vision and specific objectives in order to become an acceptable investment.

Current funding does not appear to include any contribution from the Asian

Development Bank, whose CAREC (Central Asia Regional Economic Cooperation) programme provides funding for CAR infrastructure projects such as transport links.

This would appear to be a good fit for transport and logistics elements of the Forum, and an approach to ADB locally might be beneficial.

Opportunities exist to charge a participation fee for certain classes of attendee, such as commercial service providers, consultants and other organizations and individuals who may derive a direct financial benefit from their participation; however such individuals are frequently required as moderators or expert speakers, and any attempt to charge might undermine these efforts.

More achievable options may exist for attracting commercial sponsorship in the medium or long-term future, either from domestic or regionally based organizations, or from sponsors based outside of the region. The attractiveness of the sponsorship option has certainly increased with the impending accession of Kazakhstan to the

World Trade Organization, although some of the potential may only be fully realized in time, as the promised liberalization of the Kazakh service sector is fully implemented within the next five years, making Kazakhstan and the rest of the region more attractive to external banks, finance, legal, and other service industries. The attractiveness of the proposition is also likely to be positively influenced by the improvement of the ranking of Kazakhstan in the 2015 “Ease of Doing Business” rankings, issued by the World Bank14.

Possible candidates for sponsorship would include:

Kazakhstan and Regional Companies

International Companies

12 Information provided by Viktor Prodedovich, Chemonics Inc, Altmaty in interview on 30 October

13 Informal review meeting on 30 October.

14 http://www.doingbusiness.org/rankings , accessed 15 November 2015 http://www.doingbusiness.org/rankings

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Banks, domestic banks, plus local subsidiaries of external banks, (Citibank, RBS, ING?)

External banks (EU, USA, Asia), project based banks, personal banking, asset management.

Business services, tax advisors and consultants, present in Kazakhstan and CAR, including Deloitte, Grant Thornton, PWC, Ernst & Young, KPMG, External business services, tax advisors and consultants, EU, USA, Asia, EMEA region.

Companies in Kazakhstan and CAR, market leaders in target sectors (pharmaceutical, healthcare, food & agriculture, textiles etc.)

Leading international companies in target sectors (US, EU, Asia based)

Global companies active in oil / gas sectors

Global transport & logistics companies, (shipping lines, airlines, freight forwarder groups)

Domestic sponsorship may be easier to secure in the short term, while securing international sponsorship may require an overseas presence, or at least, native speakers. It should also be recognized that securing any significant sponsorship may require dedicated and skilled staff, which will have a cost impact which must be considered.

An alternative solution may lie in a partnership or collaboration with the European

Business Association of Kazakhstan (EUROBAK). Many of the domestic organizations mentioned as possible sponsorship targets above are members of this organization.

A more bold option might also be considered, namely a collaboration with an existing international conference organizer on a joint-branding basis. A suitable candidate would be an externally-based organization with experience of arranging high level conferences in remote destinations on a commercial basis. If a suitable candidate can be identified, and terms of reference agreed which meet the requirements of both parties, the partner organization could take on the role of planning and organizing the conference annually on a commercial basis, including securing sponsorship, keynote speakers etc. Care would need to be taken to ensure that the objectives of USAID and other partners are fully understood, fulfilled and respected; however, an arrangement of this sort offers the possibility of ensuring complete or partial financial self-sufficiency, while delivering an event within USAID’s objectives with little organizational workload.

Another alternative option has also been put forward, namely a collaboration with the

World Economic Forum (WEC), organizers of the Davos Meetings and other regional events. This body has a strong track record in organizing high profile events around the world on economic, political, business and other issues, such as the “Unlocking

Resources for Regional Development” event15, held in Turkey in September 2014.

This organization also has an impressive roster of partners and members from major multinational companies across the world, and would certainly have the resources and capacity to organize an event for the CAR. However it is difficult to understand on what basis a collaboration might be based, as the WEC would presumably be the

15 http://www.weforum.org/events?page=1 , accessed 15 November 2015 http://www.weforum.org/events?page=1

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dominant partner in any collaboration. Nevertheless, the concept may be worth exploring further.

Communications and outreach.

According to Chemonics Chief of Party Viktor Prodedovich and event manager

Lyudmila Dmitruk of EZ Solutions, communications with attendees, partners and event contributors are split between the two organizations. Communications with

“normal attendees” are dealt with by EZ Systems, while liaison with partners falls to

Chemonics. This latter aspect is the most significant, and includes identifying and contacting VIP guests, speakers and moderators, including politicians and government administrators. This is recognized as a difficult task, as persons of this kind may need to be approached a long period before the event, but may also be liable to withdraw, possibly at short notice, due to circumstances beyond the control of the organizer.

More routine correspondence is handled by event managers EZ Solutions, which includes recruiting and registering attendees, as well as post event correspondence.

The routine correspondence typically starts around two months before the event, and finishes around two weeks after the Forum, with the post event report.

Much of the communication with attendees from outside Kazakhstan appears to be done using sister offices of Chemonics or USAID, as well as external partners

(chambers of commerce or trade groups, who may oversee groups of attendees or exhibitors for CATF).

The timing of communications with partners and high level guests was commented on in interviews. Various partners and stakeholders commented that the recruitment process for moderators and speakers had only taken place at a fairly late stage (i.e. a few weeks before the event). All interviewees stated that a longer period of advance notice would help to recruit prominent and VIP speakers, whose diary is likely to be busy. One additional suggestion was to book expert speakers several months in advance, but to give them their speaking brief at that time, to allow them time to prepare a relevant and well prepared presentation. However this approach assumes that the subject matter of sessions will be finalized several months in advance, and reduces the opportunity to react to sudden or unexpected events which may affect the region.

When recruiting keynote speakers, organizers may also be able to utilize the leverage of USAID, through the US Embassy network, in order to attract high level

(Ministerial) speakers. This should be utilized whenever possible, as the quality of keynote speakers is always a significant factor in the attractiveness of conferences, and provides good PR and press opportunities.

A further key element of interaction is the post-event feedback and assessment of outcomes from the event. Feedback from attendees is obtained in a written feedback form, collected at the end of afternoon sessions. During the sessions which the author attended, the collection process was closely enforced; however according to EZ

Solutions, Lyudmila Dmitruk, forms were collected from around 18% of attendees in

2015. A higher ratio would clearly be helpful.

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The post event liaison with key exhibitors and partners is the role of the Chemonics staff. This is done in order to obtain details of concrete outcomes from the Forum for assessment purposes. This tends to be done in an informal way, through individual discussions. At the time of writing, post-event feedback has indicated that approximately US$ 45 million of value in Letters of Intent and Memoranda of

Understanding were agreed during the Forum.

An additional factor to consider in relation to communications is the style and language used. The majority of communications for this event will be in Russian;

however with a growing international interest, a greater focus on English…