Summary of the Terminal Evaluation
I. Outline of the ProjectCountry: Republic of Kazakhstan

Project: Kazakhstan-Japan Center for Human
Development Project (Phase 2)

Sector: Human resources development

Cooperation scheme: Technical cooperation
project

Division in charge: Japan Center Program
Division, Public Policy Department

Cooperation amount (at the time of evaluation):
934,000,000 yen

Period of
5 Years from Oct 1, 2005 tocooperation Sep 30. 2010

Partner country’s implementing organizations:
Ministry of Education and Science, Kazakh
Economic University (Almaty, Astana), Kazakh
University of the Humanities and Law (Astana)Supporting organization in Japan: The JapanFoundation
Other related cooperation:

1-1

Background to and outline of the cooperation

Since the Republic of Kazakhstan (hereinafter referred to as “Kazakhstan”) became
independent in December 1991, it has adopted radical policies for a CIS country and has
achieved positive economic development. Moreover, with an increase in exports of natural
resources, such as oil, the country has been maintaining its real GDP growth rate at around 9%
to 10% in recent years.
On the other hand, economic human resources are insufficient for its rapid economic growth,which requires the provision of intellectual support to persons engaged in business activities inorder to improve their business knowledge and skills. In addition, industrial diversification
has been delayed.
Against this background, the Kazakh Government established in 1997 a long-term
development plan “Kazakhstan 2030,” which specifies Kazakhstan’s development strategy byplacing importance on the achievement of economic development up to the level of asemi-developed country in Asia through a market economy and on the development of humanresources for the achievement of this. In addition, the government has also established amore detailed plan entitled “Innovative Industrial Development Strategy of Kazakhstan for
2003-2015,” in which the Government pays attention to the need for developing small andmedium-sized companies and aims to diversify its industries – mainly in manufacturing.
This Project is Phase 2 of the Project for Kazakhstan-Japan Center for Human Development(hereinafter referred to as “KJC”). The project period is from October 2005 to September
2010. Under this Project, the provision of business courses and Japanese language educationand the promotion of mutual understanding have been carried out in Almaty City (mainly
Kazakh Economic University, in which KJC has been placed) and Astana City to strengthen
the functions of the KJC as a base for the “development of human resources for Kazakhstan’stransition to a market economy” and the “promotion of mutual understanding between
Kazakhstan and Japan” and thereby develop the achievements in Phase 1 and expand theimpact based on KJC’s fundamental organization established in Phase 1.

1-2

Contents of the cooperation(1)

Overall goal
1) Human resources will be developed to contribute to Kazakhstan’s transition to amarket economy.
2) Mutual understanding will be promoted between Japan and Kazakhstan.

(2)

Project goal
The functions of the KJC will be strengthened as a base for the “development of humanresources for Kazakhstan’s transition to a market economy” and the “promotion ofmutual understanding between Kazakhstan and Japan.”(3)

Outputs
1) Management of the KJC: A system for effectively managing the KJC will beestablished.
2) Management of business courses: Practical know-how and knowledge aboutbusiness management and the development of small and medium-sized companies
will be provided effectively to the private and public sectors, and a system for theirprovision will be established.
3) Management of Japanese language courses: High-quality Japanese language courses
will be provided and a system for increasing opportunities to provide them will beestablished.
4) Promotion of mutual understanding: The function to bilaterally disseminate
information on various subjects in Kazakhstan and Japan will be strengthened.
5) Public relations: The KJC will gain substantial visibility in Kazakhstan.

(4)

Inputs (at the time of the evaluation)
Japanese side (JICA): Total 934,000,000 yen
Dispatch of 13 long-term experts; dispatch of 58 short-term experts; acceptance of
39 training participants; provision of equipment totaling 1,060,542 tenges;
payment of local costs totaling about 186 million tenges
Kazakh side:
Placement of 4 counterparts; provision of equipment and facilities; payment oflocal costs (such as lighting, heating, and water expenses) totaling about 11
million tenges

II.

Outline of the evaluation teamTeam
members

Leader/Supervisor: Mr. Katsutoshi FUSHIMI, Director, Japan Center Program
Division, Public Policy Department, JICA
Advisor: Mr. Takeshi KANEKO, JICA Senior Adovisor
Japanese Language Course Evaluation: Mr. Kiyoshi OGURI, Japan Foundation
Evaluation Analysis: Ms. Tomoko MATSUSHITA, Manager, INGEROSEC
Corporation
Evaluation and Planning: Ms. Rumiko NOMURA, Assistant Director, Japan
Center Program Division, Public Policy Department, JICA

Period of March 5 to 20, 2010
theevaluation
III.

Outline of the evaluation results

3-1

Confirmation of the achievements

Achievement 1.
be established.

Type of evaluation: Terminal
evaluation

Management of the KJC: A system for effectively managing the KJC will

The progress of the Project is controlled through the establishment of a long-term
management plan and the JCC. Although a human resources development plan that was tobe established at first has not been established, training has been constantly provided to staff
members. A total of 23 staff members have received training so far. According to the
KJC’s financial statements, operating revenues have been gradually increasing, while
expenditures have also been increasing year by year. The KJC should therefore manage its
services more efficiently.
Achievement 2. Management of business courses: Practical know-how and knowledge
concerning business management and the development of small and medium-sized companies
will be provided effectively to the private and public sectors, and a system for their provision
will be established.
A total of 101 courses have been held so far. A greater variety of courses have been
provided to the Project (Phase 2) than in the Project (Phase 1). More than 3,500 persons
have participated in the courses up to now. Although there was a time when the number ofparticipants in the business courses was small and their profitability became an issue, it is on
an upward trend in the second half of FY2009. Most of the participants have a high regard
for the courses, answering that they had 80% to more than 90% satisfaction.
Achievement 3. Management of Japanese language courses: High-quality Japanese language
courses will be provided and a system for increasing the opportunities for providing them willbe established.
The number of course participants is about 3,000 so far in Phase 2, much higher than the 1,282
in Phase 1. To meet a wide range of Japanese language learners’ needs, the KJC in Almaty
has provided classes at nine levels. The KJC has also held classes in rural towns, such as
Astana and Karaganda. In these towns, the participants were also 90% satisfied on average,
indicating that the classes are attracting many participants.
Achievement 4. Promotion of mutual understanding: The function to bilaterally disseminate
information on various subjects in Kazakhstan and Japan will be strengthened.

A total of 92 events were held in Phase 2. Although these events varied in size, they were
held constantly. Through these events, various activities were carried out not only in
Almaty, but also in rural towns. On the other hand, it has still been difficult to say that the
information sent from Kazakhstan to Japan is sufficient, compared with information sent fromJapan to Kazakhstan.
Achievement 5.

Public relations: The KJC will gain substantial visibility in Kazakhstan.

The number of subscribers to the mailing list has exceeded the 2,000 mark and there are manycases where information sent by e-mail has encouraged people to participate in the businesscourses. The enhancement of the website will become a challenge in the future and it isurgently necessary to take a more strategic approach to public relations.
Degree of attainment of the project goal
Project goal: The functions of the KJC will be strengthened as a base for the “development of
human resources for Kazakhstan’s transition to a market economy” and the “promotion ofmutual understanding between Kazakhstan and Japan.”Because the KJC has provided more services in Phase 2 than in Phase 1 and has beenaccomplishing the expected achievements in most of its fields of activity, it is likely to attainthe project goal to some extent. On the other hand, JICA still pays most of the local activity
expenses (84.9% as of October 2009; 88% in Phase 1). However, KJC’s balance of revenues
and expenditures, including its retained earnings, has been steadily increasing and reached
38% of its operating costs in FY2009. KazEU has also indicated its intention to increase its
share of the costs in the future. With regard to the staff’s management capabilities, it has
become a future challenge to develop human resources that can develop general strategicplans, which requires continuous technical transfer (since the system for evaluating the staff
members’ capabilities was just introduced in December 2009, it is too early to evaluatechanges in their capabilities now.) Ensuring financial and organizational sustainability is the
key to the attainment of the project goal.
3-2

Summary of the evaluation results(1)

Relevance

The project goal and the overall goals are in accordance with Kazakhstan’s state policy
described 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.
Because there is a high demand for most of the activities under the Project, the Project ishighly relevant. With regard to the business courses, given the situation of the economiccrisis in the country, the KJC has made efforts to increase the number of participants, such as
by conducting surveys on the needs of potential participants, and has provided courses thatkeep up with changing requirements, with the result that improvements can be seen both in theability to attract participants and the profitability.
(2)

EffectivenessSince the interim evaluation, the chief (or an equivalent position) of each department has been
selected from among the local staff, the project management system has been reviewed
through, for example, concentrated technical transfers, with the result that improvements canbe demonstrated in their motivation to perform the services and their awareness of increasingprofits. On the other hand, there is still a tendency to make light of monitoring according to
PDM.
As described above, the project goal is likely to be attained to some extent, but there areproblems of increasing the share of the costs and training staff members who are capable ofpreparing strategic plans.
(3)

Efficiency

Both the Kazakh and Japanese sides have made inputs according to plan. The expected
achievements have almost been accomplished. However, there were cases in which delays inthe dispatch of Japanese experts, the timing of dispatches, and changes in the contract form
had an adverse effect on the transfer of work and the attraction of participants, resulting in adecrease in efficiency. However, because experts were recruited from the private sector
whenever needed, it became possible to input human resources that meet local needs.
Although the KJC is managed by a limited number of staff members, they closely cooperate toperform the services effectively. Although there was once concern about the high rate of job
separation, many staff members now recognize the significance of their work at the KJC, aresatisfied with the working environment, and hope to continue to work for the KJC.
Therefore, there seems to be no problem in terms of efficiency. The local staff members are
expected to accumulate know-how in planning and management.
(4)

ImpactWhen the project goal is accomplished, if it is possible to continue to perform the services, thepossibility of attaining the overall goal can be judged to be high. This makes it important toensure its sustainability from the financial, organizational, and managerial aspects. In
addition, the degree of attainment of the overall goal seems to have had a considerable effecton Kazakhstan’s economic situation and business development by Japanese companies.
(5)

Sustainability

The provision of various courses since the second half of FY2009 has begun to bring about anincrease in the number of course participants, an improvement in the financial condition, andan improvement in the management capabilities of some staff members. The Japanese
language courses show high sustainability in all the organizational/managerial, technical, andfinancial aspects, and the staff members of the courses have begun to acquire the capabilities
to continue their activities while maintaining a certain size and quality. Although the staff
members of the business courses have improved their management capabilities in the past
year, it seems hard to continue the provision of business courses without the input of long- andshort-term Japanese experts. The General Affairs Division and the promotion of mutual
understanding have experienced no problems that hinder everyday work. It is urgently
necessary for all the departments to train staff members who can prepare strategic plans.
With regard to financial sustainability, since the Project has assumed the Japanese side’s
long-term input into the management since Phase 1, most of the necessary expenses have still
been paid from JICA’s expenses for the strengthening of overseas projects (85% of the total
necessary expenses as of September 2009). Although there was a time when operating
revenues decreased due to the difficulty of attracting business course participants, theintensive input since the second half of FY2009 has increased operating revenues, resulting inthe stability of the business courses. To construct a sustainable management system, it isnecessary to consider how the KJC’s expenses, including its retained earnings, should be used

more effectively.
3-3 Factors contributing the effectivenessFor the business course, the form of the contract has been changed to better reflect the needsof the students. Before, the contract was inclusive – all the lectures were set for a year-,and had less flexibility. Even if there was a demand for the lectures with new themes andtopics, KJC could not respond to them as the contract was hard to change. In contrast, in the
new contract form, JICA recruited experts each time, and KJC was better able to select thelecture that meets the needs of the students.
3-4. Factors negatively affecting the effectivenessDue to the change of the contract form (from the inclusive to the simplified), KJC had
difficulties with making a yearly schedule for the business course, resulting to the decrease in
the number of the applicants.
3-5

Conclusions

The services have been expanded from Phase 1, the expected achievements are in the processof being accomplished in most of the fields of activity, and the project goal is likely to beattained to some extent. On the other hand, it has been confirmed that the KJC’s weakness in
its financial and organizational/managerial aspects is still been problematic for its
sustainability.
To improve the relevance of the Project, it is necessary to plan and provide services that moreaccurately meet the needs concerning business courses and the promotion of mutual
understanding, which requires further training of the staff. Moreover, from the short-term
perspective, it is necessary to provide courses that significantly serve the common good,taking into consideration the local economic situation. From the medium- and long-term
perspectives, it is necessary to design financially sustainable courses.
3-6

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

Management of the KJC

KazEU-related persons, the Embassy, and project experts should establish a working group toreview the implementing system, the financial plan, and the activities. Each department
should establish and revise the operating manual to transfer the services smoothly as describedin PDM.
(2)

Business courses

Hold business courses according to the Innovative Industrial Development Strategy of
Kazakhstan for 2003-2015 by the end of the Project and, at the same time, provide training for
public officials according to recommendations from the Strategy Development Mission sent in
October 2009.
(3)

Japanese language courses

Taking into consideration the current ability to manage the Japanese language courses, arrange
the contents of the courses to be provided after the end of the Project. Strengthen the staff’scapabilities by on-the-job and off-the-job training, stably securing Japanese lecturers.
Moreover, cooperate with the Association of Japanese Language Teachers to holdconsultations about plans and systems to hold Japanese speech contests and Japanese language
examinations.
(4)

Promotion of mutual understanding

Strengthen cooperation among the departments and cooperation with companies anduniversities, in order to reduce dependency on JICA’s expenses for the strengthening ofoverseas projects and increase profits.