Summary of the Terminal Evaluation
I.

Outline of the ProjectCountry:Republic of Kazakhstan

Project: Kazakhstan-Japan
Development ProjectCenterfor

Human

Sector: Human resource
Development

Cooperation scheme: Technical cooperation project

Division in charge: Japan Center Cooperation amount (at the time of evaluation):Team,
SocialDevelopment 889,583,000 yen
Department.
Period ofcooperation

1-1(R/D): Oct. 2000

Partner country’s implementing organization:
Kazakh Economic University(Extension):

Supporting organization in Japan: The Japan Foundation(E/N) (Grant aid)

Other related cooperation: Grant Aid

Background to and outline of the cooperation

Since its independence in 1991, Kazakhstan has been promoting various reforms for thetransition to a market economy. The real economy temporarily regressed greatly due to theconfusion caused by the rapid reforms, but slowly recovered after that. In the course of thetransition to a market economy, however, Kazakhstan has faced a shortage of humanresources, such as civilians who support the real economy and administrative officers whogive institutional support, with the result that it has still not be able to sustain stable growth.
The Kazakh Government established a long-term plan called “Kazakhstan 2030” and has been
making efforts mainly to achieve economic growth based on a market economy and develop
the human resources required for economic development.
In this situation, Japan was requested by the Kazakh Government to carry out a project thatsatisfies Kazakhstan’s need for the efficient development of human resources to promote thetransition to a market economy. As part of preparations for the project, Japan carried out aproject formulation study and a preliminary study in FY1997. In October 2000,
implementation discussions were held and Japan concluded a Record of Discussions (R/D)
with the Kazakhstan side concerning the “Kazakhstan-Japan Center for Human Development
Project.” The National Academy of Management (now Kazakh Economic University) was
appointed as the implementing organization. The goals of this Project are: 1) the
Kazakhstan-Japan Center should contribute to the development of human resources useful for
Kazakhstan’s transition to a market economy; and 2) the Center should contribute to thepromotion of mutual understanding between the Japanese and Kazakh people through theprovision of information and exchange programs. In September 2002, the Center opened andstarted three services: business courses, Japanese language courses, and mutual understanding
programs.
1-2

Contents of the cooperation(1)

Overall goal
1) The process of transition to a market economy in Kazakhstan will be enhanced.
2) Mutual understanding and friendly relations between the two countries will be
reinforced.
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(2)

Project goal
1) The Japan Center will play a key role in human development of Kazakhstan towarda market economy.
2) The Center will promote mutual understanding between the peoples of the twocountries through information services and other programs.

(3)

Outputs
1) The Japan Center will be managed efficiently and effectively, and accessible for thegeneral public.
2) Business and computer courses (hereinafter referred to as 'business courses') will be
continuously offered to provide practical knowledge and skills on the market
economy. The implementation of the courses will gradually be localized.
3) Japanese language courses will be continuously offered to fulfill the needs ofgeneral public, professionals in business and the public sectors and Japanese
language teachers. The implementation of the courses will gradually be localized.
4) Publication and visual materials related to Japan in such fields as economy, society
and culture will be provided. In addition, the Japan Center will be fully utilized
for activities for exchange programs between the two countries.

(4)

InputsJapanese side:
Dispatch of experts (including the payment of local operating costs), 552 million yen (9long-term experts and 43 short-term experts); acceptance of training participants, 50
million yen (23 participants); dispatch of a study team, 20 million yen; provision ofequipment, 166 million yen (as of the end of May 2005); other costs: 36 million yen
Kazakh side:
Placement of 4 counterparts; purchase of no equipment; provision of a site and facilities
for the Center and the implementation of incidental work; operating expenses (lighting,heating, and water expenses), 2,662,000 tenges (about USD19,568 at the average rate in
2004)
II.

Outline of the evaluation teamTeam
members

Team Leader: Mr. Yoshikazu TACHIHARA, Japan Center Team Leader, FirstGroup of the Social Development Department, JICA
Technical Assistance: Mr. Takayuki KAWAKAMI, Foreign Affairs Officer,
Technical Cooperation Division, Economic Cooperation Bureau, Ministryof Foreign Affairs
Evaluation Analysis: Mr. Akira MATSUMOTO, Consulting Manager of TAC
International
Business Course Planning: Mr. Hideki KAGOHASHI, Senior Consultant of theDevelopment Consulting Division, International Headquarters, UFJ
InstituteJapanese Language Course Evaluation: Mr. Hajime TAKAMIZAWA, Professorof the Graduate School of Letters, Showa Women’s University
Evaluation and Planning of Japanese Language Course: Mr. Yuichi
TAKAHASHI, Dispatch Support Section, Japanese-Language Learners’
Support Department, Japan Foundation
Evaluation Planning: Ms. Momoko SUZUKI, Japan Center Team, First Group
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of the Social Development Department, JICA
Interpreter: Ms. Keiko KOJIMA Training Coordinator, Training Program
Coordination Division, JICE
Period oftheevaluation

June 16 to July 1, 2005

III.

Outline of the evaluation results

3-1

Confirmation of the achievements

Type of evaluation: Terminal evaluation

For this Project, 9 long-term experts and 43 short-term experts were dispatched over five years
to design business courses and Japanese language courses at the initial stage, give thecounterparts guidance concerning the management of the courses, employ and train local staff
members for the Kazakhstan Japan Center for Human Development (KJC), and establish thefoundation for the system of carrying out the KJC Project. To teach basic knowledge andapplied skills, over these three years the KJC provided (one- and two-week) module-typebusiness management courses that consisted of the following subjects: marketing, strategic
management, human resources management, project management, product quality control,
financial management, international trade business, management planning, and organizational
behavior. The number of those who have completed the courses is 666 so far. The number of
those who have completed the entrepreneur training course (eight-week intensive course) is
73. Seminars on the European Bank for Reconstruction and Development (EBRD) and otherseminars were held 34 times and drew 1,019 participants in total. Visiting education
programs (on-site guidance) were also provided on an experimental basis to six companies tocreate model companies. The KJC employed not only Japanese experts but also many
Kazakh lecturers to provide business courses that combined the Japanese experts’ theories andguidance based on experience in Japan with the local lecturers’ guidance conforming to thesituation of Kazakhstan (for the lectures that need understanding about accounting,commercial law, tax law, labor law, and other subjects necessary for local projects). The
Japanese language courses included an autumn course (September to January), a spring course(February to June), a class for Japanese language teachers, a class for the introduction ofJapanese culture, a children’s class, a Japanese language learner’s course in Astana, and aJapanese language education seminar. During the three years, a total of 1,282 persons
participated in the courses. According to the results of a questionnaire survey in 2005, about
77% of the participants in the business courses responded that the courses were very helpful
for improving the knowledge and skills necessary for their jobs, and 94.8% of the participantsin the Japanese language courses responded that they were satisfied with the lessons and that
not only their eagerness to learn the Japanese language, but also their intellectual curiosity
about Japan were satisfied. Moreover, although, because the KJC is far from the city center,the main users of the library and the computer room are the course participants, 5,823 persons
have so far used the library and 1,749 persons used videos. In addition, a total of 9,736
persons participated in mutual understanding programs (Japanese movie festivals, origami
classes, and other programs through which Japanese culture is introduced to Kazakhs), whichhave been held almost monthly since August 2002.
The establishment of the activity foundation for this Project took one and a half years after theconclusion of the R/D, and the KJC began full-scale operations in September 2002. In spiteof these restrictions, as planned initially, the KJC achieved one of the goals – playing animportant role in developing the human resources necessary for Kazakhstan’s transition to amarket economy.
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3-2

Summary of the evaluation results(1)

Relevance

The project goals and the overall goals are in accordance with Kazakhstan’s state policy as
indicated in “Kazakhstan 2030” and the “Strategy of Innovative Industrial Development of
Kazakhstan for 2003-2015” – that is, the development of human resources necessary for the
economic sector. They are also in accordance with Japan’s aid policy for priority sectors.
Moreover, there is high demand for the KJC’s activities, and the scale of the target groups isjudged to be appropriate. Therefore, the relevance of this Project is high.
(2)

Effectiveness

The KJC has been performing its function of developing human resources through three
activities: the provision of business courses, the provision of Japanese language education, andthe implementation of mutual understanding programs. At the same time, the KJC is highly
regarded by the participants in the courses. Therefore, it can be said that the KJC has played
an important role in these activities (Project Goal 1). In addition, both the number ofapplicants for seminars and the number of courses and programs have been on an upward
trend. It can therefore be considered that this Project has been effective in the promotion ofmutual understanding between people in both countries (Project Goal 2). However, toincrease the popularity of the KJC, it is necessary to expand and strengthen public relations
concerning the center’s activities for not only Japanese living in Kazakhstan but also people inboth countries.
(3)

Efficiency

With regard to inputs into this Project from the Japanese side, although the quality differedamong the business course lecturers (dispatch of experts under simplified turnkey contracts)
and it took a lot of time to establish the foundation for the activities with the use of the initialbudget for the Project (for the provision of equipment and establishment of the facilities), theother inputs were provided almost according to the schedule within the project period. The
Vice-President of the Kazakh Economic University assumed the position of project
coordinator and was placed appropriately to manage the Project, together with four otheruniversity staff members and 13 local staff members employed hastily at the beginning of the
Project. In addition, the KJC’s facilities and equipment have mostly been put to proper use.
However, appropriate IT staff members should be employed promptly to further promote theeffective use of the facilities of the computer room. To improve the capabilities of the local
staff members of the KJC management department, training in Japan and educational training,such as OJT, have been carried out positively, with the result that the Kazakh staff members
have begun to play a substantive role in the management of the KJC and the efficiency of the
management has increased. On the other hand, because the project period is limited, it isnecessary to have young staff members stay with the KJC and improve their capabilities
further. Although the efficiency is judged to be generally high, it is necessary to construct a
more efficient independent management system.
(4)

Impact

It can be said that, in the economic and business sectors, the KJC’s provision of usefulknowledge to the participants in the business courses has played a certain role in developing
Kazakhstan’s human resources, such as among businesspersons and government officials.
Because of this, it can also be said that the KJC has to a certain extent contributed to
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“Kazakhstan’s transition to a market economy,” one of the overall goals. However, theextent of the impact that the KJC has had from a quantitative viewpoint is difficult to strictly
evaluate at present. To measure the impact on the overall goals, it is necessary not only tocontinue and expand the activities from a longer-term viewpoint, but also to evaluate it from amultifaceted viewpoint. It is necessary also to take into consideration changes in the
behavioral styles of the business course participants, such as improvements in the
management of their companies, and the relationship to individual phenomena, such as
improvements in performance.
With regard to the second overall goal, “strengthening of mutual understanding and friendly
relations between both countries,” it is possible to analyze, for example, whether the KJC has
served as a resource center that provides information on Japan through its various activities(business courses, Japanese language courses, and mutual understanding programs).
However, because it has only been three years since the opening of the KJC and because it isdifficult to conduct a large-scale quantitative evaluation, such as an attitude survey of the
population in both countries, this study only indicates an approximate value for the impact,
although it can be confirmed that the project has had a positive impact.
(5)

Sustainability(Organizational aspects)
In June 2004, the KJC was officially registered as an institution attached to the Kazakh
Economic University and was allowed to gain revenues and conclude contracts. Moreover,remuneration for the staff members of the Kazakh Economic University, including theVice-President, is paid monthly from the KJC’s revenues (their salaries are paid by theuniversity). They are engaged in the management of the KJC. Business courses, Japanese
language courses, and mutual understanding programs are regularly held as training courses
for human resources development and programs for the promotion of mutual understanding
between both countries. It can therefore be said that the organizational foundation has been
established.
(Technical aspects)
With regard to both the business courses and the Japanese language courses, the Kazakh
lecturers have acquired knowledge and skills from Japanese experts and lecturers. With
regard to the Japanese language courses in particular, 10 Kazakh lecturers (1 full-time lecturer
and 9 part-time lecturers) are teaching the courses. Their teaching skills are high, technicaltransfer has progressed through OJT and practical training in Japan, and the ability to manage
the courses has improved. Therefore, it can be said that the sustainability of the managementof the courses is high. In general, it can be said that the management capabilities of the KJC
staff members have been improving. If the existing staff members continue to work for the
KJC and endeavor to improve their capabilities, it will be possible to improve sustainability
regarding the technical aspects.
(Financial aspects)
The KJC’s utility costs are paid by Kazakh Economic University. Moreover, the KJC
receives tuition fees from the training course participants and gains other revenues frommembership, books, videos, and Internet services. The KJC’s revenues are paid as basic
salaries for the KJC staff members and remuneration for the staff members loaned from
Kazakh Economic University. However, even if the amount of expenses paid by JICA (for5/8

Japanese experts and lecturers) is excluded, the cost recovery rate estimated from the KJC’srevenues and expenditures is about 5% to 20%. Therefore, it cannot be said that KJC is
profitable. During the three years from 2002 to 2004, the average ratio of revenues tooperating expenses was 12.8%. This figure is comparable to similar institutions in
Kazakhstan (Germany’s Goethe Institute and the UK’s British Council), so is not particularly
poor. First of all, however, it is necessary for Japan and Kazakhstan to cooperate to confirm
the basic policies to consider what financial policy they should adopt to manage the KJC.
Given what has been described above, it cannot be said that financial sustainability is
sufficient at present.
3-3

Factors for the emergence of the effects

In this Project, feedback from the participants in the KJC’s activities (business courses,
Japanese language courses, and mutual understanding programs) and other institutions isreflected in the design and contents of the courses from time to time, and the processes ofregular monitoring and improvement of the contents of the courses are incorporated into the
KJC’s activities. It can be said that this has made it possible to respond promptly to
Kazakhstan’s rapidly changing customer needs and policy agendas and was effective in
gaining achievements.
3-4

Problems and the factors causing them

From the start of the KJC, it was assumed that the Japanese side would provide long-term
inputs into the management of the KJC. Moreover, there was a tendency to make themanagement of the Project itself the purpose, thinking that the very existence of the KJC in
Kazakhstan would be important for the promotion of friendly relations between bothcountries. In addition, because the Project was managed without establishing quantitative
indicators for measuring the level of achievement, it was hard to say that the achievement of
the goals has been properly monitored, with the result that the Project was not totally managed
according to the PDM. Because of this, importance was not placed on improvements in thecapabilities of the KJC staff and the counterparts. This impeded the achievement of someproject goals.
3-5Conclusions

The Kazakh side and the Japanese evaluation team held a series of consultations andconcluded that the outputs specified in PDM had almost been achieved. Kazakhstan’stransition to a market economy has rapidly progressed and there have been changes in thehuman resources necessary for economic development and the needs related to the technicalcontents. In addition, because economic and cultural interest has been increasing between
Kazakhstan and Japan, it is necessary for the KJC to continue to fulfill these needs. The
Kazakh Government also submitted a request for continuation of the support for another five
years (October 1, 2005 to September 30, 2010) as Phase 2. To heighten the achievements
and impacts of this Project, JICA decided to consider this positively.
3-6

Recommendations (concrete measures, proposals, and advice concerning the Project)(1)

Establishment of the legal status

Because the KJC has still not gained any legal status in Kazakhstan, it has problems such as
being unable to have its own bank account. Moreover, because the R/D was not ratified at
the national assembly in Phase 1, to provide equipment, the Japanese side has lent it to the
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KJC, regarding it as the property of the Japanese Embassy in Kazakhstan. To manage theProject smoothly, it is necessary for JICA and the counterpart agency to solve these problems
immediately.
(2)

Accurate assessment of the needs and monitoring to effectively provide the businesscourses

Because Kazakhstan’s transition to a market economy has been rapid and there are competing
institutions that develop business human resources, the needs with regard to the KJC’s
business courses are expected to become more diverse. Because of this, it is necessary toconstruct a system for accurately assessing the needs. In addition, it is essential to monitor
the achievements in each course and, if necessary, review the course design according to theresults. Concretely, it is desirable to carry out the following measures by the end of the
Project:a) Regular surveys of the needsb) Establishment of monitoring and evaluation systems (such as feedback from theparticipants and cooperating organizations)c) Exchange of opinions through regular meetings with related government agencies
and cooperating organizations(3)

Strengthening of the information provision function and public relations

In Kazakhstan, the number of Japanese companies and the number of Japanese ODA projects
is limited. Because of this, Kazakhstan has a limited number of places where information on
Japan is available, and the Kazakh people have not understood Japan well. In Japan as well,there are few opportunities to obtain information on Kazakhstan’s culture, society, andeconomy. In this situation, the KJC’s role in mutual understanding between both countries is
extremely important. Therefore, the KJC is required to improve the function of providing
information about both countries. At the same time, it is necessary to enrich public relations
to make the KJC more widely known. It is desirable for carry out these efforts by the end of
the project period.
(4)

Proper assignment of personnel to the management of the KJC

In Phase 2, the KJC is expected to diversify its business courses. Efficient and effective
diversification of the business courses requires the appointment of course managers. In
addition, to carry out activities stably in Astana, it is desirable to establish a base and assign aliaison officer to the base. JICA and the counterpart agency should take the necessary
measures at the beginning of Phase 2.
(5)

Improvement of the KJC’s profitability

Most of the KJC’s operating costs are paid from JICA’s local operating expenditures.
Because each of the courses has a good reputation, revenues from the tuition fees have been
increasing year by year. However, the cost recovery rate of the KJC’s operating costs is still
low. To manage the KJC stably, it is necessary to increase the cost recovery rate. In
addition, by the beginning of Phase 2, the Japanese side should fully discuss to what extent
and how the KJC’s sustainability should be achieved, taking into consideration the public
nature of the Project as an ODA project and the KJC’s direction for the future.
3-7

Status of the follow-up
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Since October 2005, the governments of both countries, JICA, and the counterpart agency
have been discussing the implementation of Phase 2 of this Project.

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