NEW
ADDRESS
by the President of the
Mr. Nursultan Nazarbayev
to the People of
THE «KAZAKHSTAN-2030»
STRATEGY AT A NEW STAGE OF
DEVELOPMENT OF
30 Major Directions
of
Domestic and Foreign Policy OF
In 1997, 10 years
ago, in the first annual address to the people of
Today, it is
possible to declare with the full responsibility:
More important
societal issues are on the agenda now, dictated both by the logic of
development of our country and by a wider global context. Modern challenges and
threats urgently demand more dynamic modernization of all systems of social,
political and economic relations which will allow
As the main
priorities of a new stage of comprehensive modernisation of
I. State policy directed at
The first
direction - The development and realization of a complete strategy directed at
maintaining steady growth of competitiveness of the economy
The global system
of the world economy is a well developed and well functioning mechanism working
by its own rules. We should work by these rules too. Nobody is especially
looking forward to welcoming us in the world markets, but we have to become in
demand and consolidate our position. For this purpose it is necessary:
First, to conduct
a systematic analysis, monitoring and assessment of major branches of
Second, to do a
comparative analysis of competitive industries and sectors in other countries,
as well as of trans-national corporations which are operating in the same
international markets; to assess factors which lead to lagging behind of
Kazakhstan’s exporters and economic sectors or, on the contrary, those factors
which can give them competitive edge;
Third, to
determine advantages and disadvantages of certain export industries and to
define priorities where it is necessary to support existing advantages and
eliminate problems.
At the same time,
we should evaluate the efficiency of actions already undertaken to develop
promising industries, including for the domestic market, and consider
opportunities of development of their export potential;
Fourth,
proceeding from such systematic analysis, we should develop breakthrough
macro-projects capable of changing the structure of our industry with
significant added value, multiplicative effect, export and resource saving
potential;
Fifth, it is important
to provide a goal-oriented system for supporting access of
I assign the
Government to work out and implement a comprehensive Strategy of achieving a
new quality level of competitiveness and export capacity of the economy.
On this basis, we
should prepare an appropriate Action program as well as an assessment system of
intermediate and final outcomes. It should contain recommendations prepared
jointly with the “Atameken” National Union of Entrepreneurs for large, medium
and small businesses, information on necessary legislation changes and real
measures of state assistance in particular sectors. Proceeding from these
results, we will be able to develop modern approaches to future restructuring
of our economy.
I assign the
Government to establish a National Council on competitiveness and export which
must become the coordinating and working body.
The second
direction - Searching for, creating and gaining
First, we need to
expand areas where we can already use our achievements and successes. The main
attention should be focused on markets of
Second, we need
to speed up the search for new export niches, and consider seemingly
non-attractive and non-traditional ones as well. Our foreign partners can be
engaged in this work on mutually beneficial basis.
Third, the
development of new industries in
For example, last
year, as you know, we launched a unique bio-ethanol production facility in
This year the
construction of the first integrated petrochemical complex will start in the
Atyrau Oblast (Region) which will allow developing petrochemical industries of
international levels in the future. Today, the Atyrau oil refinery can already
produce gasoline and diesel fuel meeting European standards.
Fourth, we have
to analyze our possibilities for establishing and developing new industrial
production in border areas, where our neighbouring states have already created
trade, industrial, financial and service structures. Such breakthrough projects
can be linked, for example, with the economic growth in
The Government,
primarily, the Ministry of Industry and Trade, as well as state holdings should
design and launch a program to expand and occupy export “niches” for
Kazakhstan’s goods and services offering recommendations to our business
community.
The third
direction – Participation in large scale and “breakthrough” projects
Our economic achievements
have determined
Now, we have the
strength to turn
First, the
Government should create an information system for our companies on prospective
regional projects and help them participate in such initiatives and receive
state contracts on a competitive basis. These can be high-tech industries,
infrastructure projects and others.
Second, it is
necessary to stimulate the cooperation of our large corporations with
trans-national companies for the purpose of implementing concrete
“breakthrough” projects.
Third,
I assign the
Government, all relevant bodies and institutions including state holdings with
the creation of favourable conditions for
The fourth
direction – Focusing the activity of state holdings and organizing their
operations in accordance with international standards
We should not
allow our state holdings to become uncontrollable multi-faceted conglomerates
which in many cases are not competitive on international markets. We should
avoid the danger of their transformation into simple financial “sinecures” with
fixed system of benefits. It is necessary to make sure the state holdings do not
substitute the activity of constituent national companies and organizations. On
the contrary, they should consolidate such economic activity on a new level,
end duplication of functions and the lack of productivity of internal
competition and its closeness, and should seek to expand those companies’
effectiveness and transparency.
State holdings
should primarily occupy a leading place in ensuring competitiveness and
realization of national strategy aimed at
First, I assign
state holdings and corresponding state bodies to carry out a critical analysis
of available analytic, marketing and technological achievements and to clarify
further steps indicating final results and timescale for achieving them. The
process of “niche” formation for our exporters and full international
integration demand clear tasks and a plan of realization of concrete
“breakthrough” projects.
Second, state
holdings should work actively with international companies in creating joint
projects and assist them in entering
Third, state
holdings should play their role in diversifying the economy, involving,
stimulating and supporting
Fourth, in order
to accomplish these tasks, it is necessary to set up a plan of restructuring of
all state holdings as one common organism as well as to create corresponding
goal-oriented, fully functioning, effective, flexible and transparent internal
structures. In this connection it is advisable to carry out a functional
analysis of effectiveness and structural orientation which form each state
holding and then to determine which assets will remain under the control of
each state holding, how they will develop and what kind of assets should be
brought out to competitive area.
The “Samruk”
Holding
First, the main
purpose of “Samruk”, as it manages the state owned companies, is to ensure the
growth of their value.
Second, I entrust
“Samruk” management with speeding up the preparation of a unified strategy of
its own development defining activity of state companies it incorporates.
Third, “Samruk”
should apply its capacities and resources to carrying out those tasks and
projects which would produce a competitive edge for all national consumers of
infrastructural services and relevant sectors of the economy in external
markets. Namely, businesses and citizens must finally obtain unconditionally
higher quality and, if feasible, cheaper energy, railroad, telecommunication
and communal services.
Fourth, “Samruk” should create a clear scheme of drawing investments
from pension funds, development institutions and private investors, both Kazakh
and foreign, to secure its strategy.
The “Kazyna” Fund
of Sustainable Development
“Kazyna” should
formulate and implement a common strategy covering all institutions and
organizations it incorporates. The goal for all should be one and consist of
providing assistance and motivation to raise competitiveness and exporting
capabilities of Kazakhstan’s small, medium sized and large businesses, ensuring
international breakthroughs and favourable conditions for finding export
“niches” and developing infrastructure.
First, the “Kazyna”
Fund must deliver modern services with the view of raising competitiveness and
support of most promising exports, from financing applied research to promoting
Second, “Kazyna”
should define how it can stimulate the introduction of new technologies and
develop applied science with respect to enhancing competitiveness and exporting
capacities of relevant priority sectors and companies.
Third, it is
expedient that “Kazyna” provides assistance to our pioneering enterprises and,
chiefly, to non-extractive industries, in improving conditions for their
foreign trade and expansion of export access, including via structuring
finance, export loans, export insurance, etc.
Fourth, it is
necessary to comprehensively re-evaluate venture financing for new businesses
on a competitive basis which could win them a niche on international markets
and keep steadfast positions there. Today, “Kazyna” should possess a wide range
of instruments for setting up new competitive production and sectors of
Fifth, one of the
Fund’s major activities should be the invitation to appropriate international
companies to set up joint ventures with export potential.
Sixth, the Fund
should actively engage domestic and foreign businesses into export oriented
special economic and industrial zones, and technological parks.
Seventh, it is
necessary to create this year a Fund of funds, involving foreign financial
institutions as well.
“KazAgro”
Similar
approaches should also underlie the activities of “KazAgro” National holding.
First, the
principal goal of “KazAgro” is a systematic solution of issues of raising
agricultural productivity, preventing land degradation, improving water usage
efficiency and the use of other natural resources of our country caused by
outdated agricultural technologies, slow development of agricultural science
and fragmentation of small peasant farms, among other reasons.
Second, within
the framework of its tasks, “KazAgro” should provide a quality analysis of all
branches of agricultural sector, define niches which require development in the
first place. For instance, a new market of agricultural products exists and
actively develops in the world today in the shape of ecologically clean
foodstuffs, new productions, etc.
Third, “ÊazAgro”
is required to develop and implement in the near future systems of financing
existing and new agricultural processors with export potential. Such financing
should be purpose-oriented and provide replacement for outdated
àgrotechnologies and the creation of agricultural hi-tech industry. Probably it
could be helpful to involve second tier banks as operators in this process.
One of the main
tasks of all state holdings, including national companies they incorporate and
other organizations, is to put the activity on a systematic approach through
international practice of corporate management, accountability and
transparency.
They should
become a model of corporate behaviour for all businesses in
First, operation
of state holdings should be organized in accordance with the Corporate
Management Code.
Second, it is necessary to raise transparency of state holdings.
Society should be informed of these companies’ strategy, their property
structure, financial and economic activity results, etc.
Third, state
holdings should carry out economic activities, staff recruitment, etc. on the
basis of transparent competitive procedures.
Fourth, it is
necessary to provide effective work of boards of directors to ensure future
strategy and realization of effective control over management, financial and
activity results.
Fifth, we expect
that annual audit of state holdings, to be carried out by an independent
auditor with impeccable reputation, will promote maintenance of a clear and
transparent system and public assessment of the activity of holdings.
Such principles
should define the work of all state holdings.
I instruct
leaders of state holdings to present the development and new structure concepts
for the presidential approval no later than August 2007. After the approval of
their strategy and structures, “Samruk”, “Kazyna”, and “KazAgro” should start
the realization of tasks, and their leaders will be personally responsible for
their results.
The fifth
direction – Substantial increase of efficiency and macroeconomic returns of the
extractive sector
We are going to
further ensure a responsible and mutually beneficial energy policy.
Further
development of hydrocarbon sector and attraction of foreign and local investors
need to be coordinated directly with the economy diversification and through
this method solve major tasks of creating new promising industries.
The Government
should raise the issue with large investors working with our natural resources
about their greater and concrete contribution to
First of all, we
proceed from
The time has come
to develop comprehensive strategy of further reinforcing
First, the
Government together with state holdings should undertake concrete measures to
stimulate and ensure access of Kazakh energy exporters to international
markets.
Second, the
Government should formulate new natural gas industry strategy and create
legislative basis for its realization.
Third, the
Government should start intensive talks with our neighbours in order to ensure
undisrupted energy supplies, and convince them that it is expedient to create
in
Fourth, it is
necessary to create an effective legislative basis for reasonable use of our
natural resources and solution of problems of environmental contamination,
uncontrolled import of outdated and “dirty” technologies, inefficient use of
renewable resources, etc.
It is necessary
to toughen control over observance of environmental legislation during the
development of oil fields on the Caspian shelf. The Government should raise an
issue of introducing international certificates on the principle of “green oil”
which obliges to respect rigid ecological standards in hydrocarbon extraction.
The main issue of
our energy and petrochemical development is to increase profitability of these
sectors through raising added value of energy products. Management of priority
sectors such as petrochemistry, gas resources, and export energy routes should
be especially effective.
First, the
Ministry of Energy and Mineral Resources should create and implement programs
to modernize and re-equip oil and gas enterprises, create new petrochemical
industries. We should develop production with added value, accompanying and
adjoining industries for the oil and gas sector.
It is necessary
for the Government to staff this Ministry with modern personnel professionally
capable of solving the most serious issues in the energy area, the main
industry of our national economy at this stage.
Second, the
Ministry of Energy, together with other state bodies, should prepare a program
of practical measures on switching to energy efficient technologies. The
introduction of such technologies, savings programs, natural resources rational
use need to be realized with respect for the principles of combination of the
best economic, social and ecological factors. Such a program can provide, for
example, for the introduction of tough government control over placement and
utilization of energy production and consumption wastes, the observance of
environmental contractual obligations by entrepreneurs, and the introduction of
low waste technologies, etc.
Third, before the
end of the year the Ministry of Energy and Mineral Resources should prepare a
new development strategy directed at balanced extraction and export in the oil
and gas industry but at the same time at exploration and search for new
hydrocarbon fields and new methods of using oil and gas resources.
Fourth, it is necessary to improve the legislative basis and carry out
complex monitoring of subsoil management and observance of subsoil user
obligations. The Government should exclude bureaucratic delays, reduce the list
of certifying documents and simplify the procedure for granting rights to
subsoil users.
Fifth, the
Government should improve monitoring systems for contractual obligations of
large enterprises concerning social obligations and replacement of qualified
foreign staff by Kazakh specialists.
The sixth
direction – A new level of stability and competitiveness of the financial
system under the conditions of liberalization
First, our banks
should be prepared for competition in domestic markets as well as in regional
and international projects. We have removed a number of restrictions for
non-residents on access to our financial system in the framework of
Second, it is
necessary to create conditions for providing market justified support to
promising sectors of economy by Kazakhstan’s banking system and strengthen bank
presence in regional economic projects, including public-private partnerships.
Third, to solve
an important issue of attracting the capital from strong second tier banks for
the realization of national projects, especially energy, infrastructural and
breakthrough projects.
Fourth, it is necessary to re-examine the issue of removing
unreasonable restrictions in capital movement. This issue needs to be
considered in view of the necessity to support the most relevant
Fifth, we need to
create an effective stock market. Its development is impossible without
attracting people to actively invest their savings in securities. It is
necessary to carry out a large scale educational campaign teaching our people
the basics of investment literacy.
Sixth, further
improvement of legislative basis for expansion of electronic banking services
will be a factor in electronic trade system development.
The Government,
together with the Agency of financial supervision, should prepare a strategy
and necessary legislation on carrying out the abovementioned work.
The seventh
direction – Accession to the WTO on conditions favourable to Kazakhstan
The strengthening
of
First, it is necessary
for Êàzakhstan’s national interests to bring our legislation in accordance with
WTO obligatory agreements’ norms by the end of the year.
Second, under
Third, it is necessary to develop real, effective and systematic
measures to improve customs administration, provide professional conformity of
customs service experts to modern demands. We should pursue a policy of
openness of the economy, reduction of customs tariff barriers between the
countries and establishment of a unified level of external tariffs in the whole
region. Our state allocates significant sums to national customs system for
realization of these and other tasks.
Fourth, it is
necessary to speed up the transition of all legal entities to financial
reporting based on international standards.
Fifth, the
Government together with the “Atameken”
II. State
policy aimed at management of growth and sustainability of the economy of
Kazakhstan through diversification, infrastructural development and creation
of basis of hi-tech industry
The eighth
direction – Economy diversification and non-raw materials sector development
The Government
should pay particular attention to the realization of “breakthrough” investment
projects, in particular, in non-extractive sectors of the economy.
We should pass
from “accumulating growth” to “growth management” which signifies, first of
all, that we carry out investment policy aimed at infrastructure development
and further industrialization of
First, the
Government should create conditions for the development of new technological
and system-forming businesses with real multiplicative effect. Such businesses
can include, for example, oil and gas machinery; special alloys, biochemical
and petrochemical production; processing of foods, textiles, and agricultural
products, the creation of construction materials industry and others.
Second, the
Government should realize programs of sustainable agricultural complex
development in the agrarian sector due to the increase in productivity and
profitability of its branches, as well as development of domestic production
competitive advantages.
Third, it should
improve legislative basis and carry out complex monitoring of subsoil
management and subsoil users obligations implementation.
Fourth, the
Government should prepare measures for effective development of
I assign the
Government and state holdings, in dialogue with the “Atameken” Union of
Entrepreneurs, to formulate requirements and recommendations for the largest
companies on elaboration of their industrial diversification strategies.
The ninth
direction – Carrying out of a unified state strategy aimed at high technologies
introduction and support for innovations
First, it is
necessary to carry out technology transfer procedures actively and deliberately
proceeding from our competitive advantages. It is necessary to promote the
creation of a network of design centres and organizations which will both
import the existing technologies and adapt them as well as introduce homeland
scientific research into the industry.
Second, it is
necessary to create structures ensuring the funding of projects in high
technology including the basis of venture financing. It is impermissible that
Third, it is
necessary to stimulate innovation by
Fourth, it is
necessary to systematize the state order for research works so that these
projects’ results are useful in the real sector of economy.
Fifth, it is
necessary to promote the development of technological sector by strengthening
protection of intellectual property and trademarks. It is necessary to create a
bank of innovations and patents accessible for acquaintance and financing. This
is the task for “Kazyna”.
The tenth
direction – Formation and the beginning of work of regional centres for
economic growth and competitiveness
The coordinated
formation of regional centres of economic growth and competitiveness through
the priority development of leading cities possessing significant economic
potential plays a crucial role in the regional development. The Government
should determine such centres by studying their development facilities as
national economy growth centres.
Our capital
Astana has certainly become a major centre of economic growth having changed in
only one decade from a country town into a modern mega-polis with vast
opportunities and not only for Kazakhstan’s citizens.
We should further
develop these opportunities if we want to really compete with other world
recognized capitals.
First, it is
necessary to develop at least two new centres in Astana – on the right and the
left banks of the river in the southeast direction.
Second, it is
important to accelerate the construction of National biotechnologies centre’s
new scientific complex in Astana.
Third, the
Government should continue realizing the program to create a medical cluster in
Astana on the basis of new world level national scientific innovative medical
centres.
Fourth, it is
necessary to create a Eurasian water centre in Astana to solve in their
entirety the issues of research and protection of water resources on the
continent.
I assign the Akim
of Astana and the Government to determine concrete indicators of social and
economic development which can be achieved in the mid- and long-term
perspectives.
The issue of
social-entrepreneurial corporations remains crucial.
We set ourselves a goal of regional integration for
First, this task should be realized in view of
Second, such
“centres of economic growth” should be equipped with all necessary social
infrastructure with the emphasis on elementary, secondary and professional
education.
Third, “centres
of growth” need to be created on the basis of development of network of
social-entrepreneurial corporations. Their activity is aimed at investment and
innovative projects in agriculture, transportation and logistics and other
sectors. The Government should transfer relevant state property to
social-entrepreneurial corporations, and solve issues of those corporations’
development with the participation of the business community.
The Government
and the Akims should prepare concrete proposals on locating industrial
enterprises and zones in these centres in view of our plans on industry, trade
and high technologies development.
The eleventh
direction – Strategic infrastructure development on the basis of public-private
partnership as well as improvement of management quality in this sphere
I assign the
Government, together with the Akims, to prepare a modern infrastructure
development plan covering the following tasks:
our integration
into the international infrastructure market;
development of
centres of regional economic activity;
technological
interaction between various types of transportation;
cost reduction
for business and citizens.
For its
realization, we should actively use state holdings and form an infrastructure
development mechanism on the basis of public-private partnerships.
First, we need to
purposefully support, update and expand transportation infrastructure. We
should use as much as possible the country’s transit potential, and for doing
this we need to integrate our transport structure into the world system.
Second, it is
necessary to actively develop air transportation. We should bring our airport
infrastructure and aviation in accordance with the national economy and
international requirements.
It is necessary
to create all conditions for development of competition in local air travel
market to increase quality, air services safety and decrease costs. Air
transport should become more accessible to citizens.
A relevant
infrastructure development program should be worked out by the end of 2007.
Third, it is
necessary to modify the country’s network of railways through stage-by-stage
transformation of rail transportation and its management on a competitive
basis. Also, it is necessary to launch and expand the network of railway
logistical lines which will meet present and future demands for such services.
The railway sector should comply with world standards on safety, speed of
delivery and service, and tariffs should correspond to the well-founded sector
requirements.
The Ministry of
Transport and Communication, together with the “Samruk” state holding, should
review the current Rules of railway transportation and develop new ones,
calling for higher level of economic development.
Fourth, it is
necessary to carry out a consistent work on demonopolization and free
competition development in the telecommunications sector. Finally, it is
necessary to finish work on tariff readjustment in order to attract investors
into this sector. It is necessary to create conditions for internet services
cost savings, thus increasing the global network penetration into our schools,
enterprises and homes.
Fifth, we need to
be careful in water transportation infrastructure development. The intensive
development of the Caspian shelf calls for new ports and marine vessels. It is
expedient to implement programs for creating new dock yard capacities and
modernization of existing sea and river ports.
Sixth is the
motor transportation infrastructure development. Last year, we began
implementing the highway development as part of the existing program up to
2012. For the first time the government allocates almost 10 billion US dollars
in financing road construction. This infrastructure development will also raise
traffic safety while reducing road imperfections.
Within six month
the government should prepare a strategy of bringing main international
motorways to international standards. Moreover, within the framework of
transport logistical cluster development a highway connecting Western Europe
with Western China should be built on the
We also need to
expand in accelerated manner the local roads networks and improve access to the
most distant settlements of
The twelfth
direction – Development of electric power resources and creation of a
foundation for nuclear power energy
Today, the most
crucial issue is to provide electric power to Southern Kazakhstan,
First, it is
necessary to solve carefully the issue of electric power distribution between
energy abundant and energy scarce regions with attraction of neighbouring
countries’ capacities and switching to energy saving technologies.
Second, it is
necessary to modernize consistently the power sector, solve the issues of
deterioration and shortage capacities, and create conditions for new business
development as well as operative equipment expansion and electric power supply
networks reconstruction.
Third,
diversification of energy sources demands nuclear energy sector’s development
with the aim of providing resources for the country’s stable development. It is
necessary to carry out technical and economic feasibility of constructing
nuclear power station in
Fourth, it is
necessary to consider an opportunity to establish an energy stock exchange,
based on the example of
I assign the
Ministry of Energy and Mineral Resources to elaborate a package of measures to
elevate the capacity of existing utility companies, constructing new generating
capacities and optimizing the power transmission lines in order to meet energy
needs of the regions, up to the end of 2007. Finally, we need concrete steps
and consistency in solving the energy supply problem in the south of the
country.
Economic and
administrative measures directed at stimulation of an effective use of electric
power and also at the development of mechanisms for the introduction of the
energy saving technology, including science intensive branches, should become
important directions of the work.
The thirteenth
direction – Consistent actions on supporting small and medium sized businesses
First, the
Government should analyze where and why legislative, administrative and
bureaucratic barriers show up on the way of business initiative, then reduce
them as much as possible and also exclude the unreasonable reporting of small
and medium sized businesses before the state. Also we need to improve tax legislation
to stimulate the development of entrepreneurship in full measure and contribute
to taking the business out of “the grey area”.
Second, we should finish the work of creating fair competitive
environment and equal conditions for all economic players. I assign the
Government to carry out comprehensive revision of antimonopoly legislation and
create precise mechanisms to uncover the facts of limiting the competition and
arrangements between market participants, ulterior monopolization of the key
economic branches of our economy and also corresponding recommendations on the
use of punitive measures.
Third, we should
reduce the spheres for natural monopolies as much as possible. We need to
update current and develop new programs of restructurization and development of
competitive relations in corresponding branches. Targeting the regulation and
control of sectors of economy with natural monopolies such as
telecommunications and air navigation, railway transportation and ports,
electric power industry, oil and gas transportation and also housing and
municipal sectors, is necessary to create independent sector regulators. These
structures headed by joint agencies will combine functions of tariff and
technical regulation.
Fourth, we should improve the process of creating new enterprises and
companies. For example, it is necessary to create such conditions within the
framework of “one window” system that a
businessman could register a firm within two or three days.
Fifth, we need to
use resources of the state and state owned companies more actively as a
catalyst to create demand for products and high quality services of small and
medium sized businesses on a public and competitive basis for sustainable and
dynamical economic growth of
Sixth, it is expedient
to develop special programs for the development of new businesses on a
transparent and public competitive basis where the best business ideas will get
financial and technical support for establishment of a new business, for
example, for covering legal and consulting expenses. I think this is a task for
the “Kazyna” Fund.
The fourteenth
direction – The guickest and overall implementation of technical standards
meeting international requirements
Technical
standardization should be considered not only a tool for maintaining quality of
products and services, but also an obligatory condition for maintaining
competitiveness of our goods and services in the global economy.
Standardization
of
I assign the
Ministry of Industry and Trade:
First, to analyze
the effects of the law on technical regulation;
Second, to
transfer work on the introduction of procedures and rules of international
standardization into a practical field within six months.
The fifteenth
direction – Strengthening the institute of private property and contractual
relations
I would like to
stress once again the need to continue work on realization of a complete
program of strengthening private property and contractual relations protection.
First, the
development of a legal basis and law enforcement practices in this area
certainly belongs to our priorities. I assign to develop a corresponding
package of legislative acts. I expect the draft laws “On the state registration
of rights to real estate and transactions with it” (new edition), “On
modification and additions to some acts of the Republic of Kazakhstan on issues
of the state registration of rights to real estate and transactions with it”
will soon be made laws.
Second, it is
necessary to improve the respect for private property and contractual relations
at all levels, including through the use of all possible instruments of the
government, the education and judicial systems, etc. I also expect our civil
society institutions to play a constructive role since the strengthening of
private property is simultaneously the creation of basic guarantees of human
rights and freedoms.
Third, the
Government should take necessary measures for improving the contractual
relations which clearly define rules of public-private partnerships.
The sixteenth
direction – Formation of the basis for further industrialization of Kazakhstan
We should manage
economic growth on the basis of the policy of further industrialization of
First, it is
necessary to conduct an analysis, fully assessing the issue of equipping the
economy with industrial means and the depreciation of the country’s fixed
capital, and prepare a specific action program, aiming at radically updating
capital equipment, industrial infrastructure and technological processes.
Second, it is
necessary to determine priority areas and enterprises and the system of primary
measures of their industrialization on a modern basis.
Third, it is
necessary to develop the instruments for governmental stimulation of the
private sector, which must play the leading role in the process of further
industrialization.
I assign the
Government, before the end of 2008, to carry out the work that is closely
connected with the strategy of achievement of a qualitatively new level of
competitiveness and export opportunities of the economy for the development of
the Industrial and Innovative Strategy.
III. State
policy directed towards providing international standards of education and
professional retraining, corresponding to dynamics and prospects of the
development of the labour market
The
seventeenth direction – Improving the systems of elementary and secondary
education, and retraining of personnel, and bringing them up to world standards
We should achieve
quality education services at world standard levels all around the country.
First, we need to
eliminate our children going to school in three shifts. It is necessary to
build 100 new schools in regions of
Second, it is
necessary to create a unified system of assessing learning efficiency,
knowledge level and abilities of each student.
Third, we should
develop the practice of online training and create an educational TV channel in
the country.
Fourth, we need
to add additional hours or subjects on natural sciences to the national
curriculum, mathematics and computer science come first. It is also necessary
to envisage the creation of a system of special classes of natural science
content. The government should develop mechanisms to attract necessary
investment in this area.
Fifth, we should
attract foreign teachers of English language to our schools. It is necessary to
produce the situation where any average school could provide children the
opportunity to learn a foreign language at the highest level.
Sixth, we need to
think about introducing a system of state competitions for grants to schools
with high indexes of achievement which will be given, for example, in the form
of financing scholarships to students from needy families. It will allow them
to receive further education in more prestigious and advanced educational
institutions.
We should pay
particular attention to the issue of perfecting the evaluation and remuneration
system for best teachers.
The eighteenth
direction – Introduction of certification of educational institutions at
international standards level, priority development of natural and engineering
sciences in the sphere of higher education
First, the
Government should introduce a system of certification of educational
institutions at international standards level, which will allow evaluating
fairly the education quality at all higher education institutions. It is also
necessary to think about the attraction of competent institutions for
international accreditation of higher education organizations.
Second, it is
necessary to merge a number of academic scientific institutions with the best
higher education institutions within the framework of structural reforms of
science which may serve as a basis for establishment of new universities
uniting education and scientific research.
Third, the
Government should develop an appropriate legislative basis for the development
of specialized educational programs and applied scientific centres of exact and
engineering sciences.
Fourth, the
Ministry of Education and Science and other relevant structures of the Government
should prepare a program of scientific and technical development and control
its implementation on principles of strengthening the coordination at the
intersection of scientific, creative and technological works with the effective
use of financial assets and ending the duplication of scientific and applied
researches.
Fifth, we should
collaborate more actively with foreign developmental institutions and academic
centres and also encourage private investment into mathematical and scientific
education.
Sixth, the active
involvement of foreign scientists and teachers in sectors of education
representing the greatest interest for us should become a component of the
strategy of increasing the number of qualified professors and teachers of
engineering.
Seventh, we need
to create specialized training focusing on information technologies and new
forms of information distribution.
The nineteenth
direction - Formation of the basis of a “smart economy”
Practically all
modern successful states deeply engaged in the world economy have relied upon a
“smart economy.” For its creation we should, first of all, develop our own
“human capital.”
At first, we
should draw attention to the following:
First, we must
have requirements and corresponding infrastructure for regular renewal of
publicly database of knowledge required for our new economy in compliance with
the world technological level of development as a whole.
Second, it is
necessary to provide direct support for the establishment of innovative
educational consortia for educational programs and applied science research.
Third, we need to
expand the practice of combined participation of scientific research
institutions and universities in competition for receiving state or private
sector orders for scientific research and development engineering, grants,
joint scientific publications, etc.
Fourth, we need
to recommend companies supplying new technologies to engage in obligatory
education of
Fifth, it is necessary
to create relevant preconditions to ensure the interests of business people in
scientific technological provision and competitiveness of the private sector.
There must be also strict monitoring of execution of contractual obligations by
the business community regarding the training of
IV. Modern
social policy: attention to demands and necessities of people and creation of
new jobs
Two years ago we
assumed the course towards consistent social modernization. We have achieved a
lot.
What is crucial
for us is to provide everybody with necessary conditions to implement important
and clear life principles:
- to provide for one’s family;
- to own a home;
- to educate children;
- to improve health; and
- to accumulate funds for retirement.
From our previous
experience and from the experience of other countries we should make two
principal conclusions.
First, social
support for people from the government can only be effective if it has a
targeted and individualized nature. The state is obliged and actually takes
responsibility for supporting only those members of the society who really need
help, first of all, children, mothers with many children, veterans and the
disabled.
Second, the most
effective social policy was and still is the policy of motivating to productive
work and creation of new jobs. We need to have real incentives for people who
once lost their jobs for one reason or another to get new ones and offer them
an opportunity to have a new profession. Moreover, we need to resume the
popularization and active promotion of work specialties, especially in the
industry, for the young generation.
The twentieth
direction – Consistent policy in the sphere of housing availability and
development of real estate market
First, the
Government must analyze and accelerate the implementation of the program of
municipal housing including the development of construction industry,
construction of accessible housing for rent, ensuring the transparency of the
process during land allocation, and promoting individual housing construction.
Second, there is
still an unresolved issue of increasing the quality of construction and
servicing the facilities already built by adapting international standards of
quality.
The Government
and relevant ministries are facing an important task of creating an effective,
competitive and transparent property market. This market must provide the most
favourable conditions for obtaining housing, giving buyers the opportunity to
have full information on conditions and prices of transactions, and developing
effective credit instruments from financial organizations.
Third, the
administrative and legislative requirements in the area of real estate should
be made simpler and easier. We should also resolve the issue of facilitating
procedures of registering land slots and the transparency of their allocation.
Fourth, we should
adopt measures to improve our system of state registration of real estate
rights and transactions, and develop an effective method of real estate
assessment.
Fifth, we should
estimate the opportunities for creating additional stimuli for wide scale
housing construction.
Sixth, the Government must analyze tendencies on international property
markets and using best international practices establish effective instruments
for financing rental housing construction and stimulating individual housing
construction.
Seventh, we
should establish a legislative basis for stimulating insurance companies
offering services concerning mortgage credit lending.
The twenty
first direction – Improvement of health service quality and development of
high-tech healthcare system
First, I consider
it is necessary to achieve efficiency and quality improvement of health
services by revising mechanisms of management, financing, coordination and
control in healthcare. We should also introduce a system of accountability for
healthcare providers open to the public and a system of internal control and
external audit.
It is necessary
once and for all to determine those health services which are to be provided by
the state and not to mix them with private services. On the other hand, an
opportunity must be given for the development of private medical service.
Second, we should
develop programs for increasing average life expectancy, reducing rates of
infant and maternal mortality and the level of tuberculosis and reducing the
expansion of HIV/AIDS.
Third, primary
medical training should become a compulsory part of all school and university
curricula. In this regard, it is also necessary to increase the population’s
knowledge and awareness of a healthier lifestyle and healthcare issues. A
special attention should be given to the development of mass sport and
promotion of sport among the population.
Fourth, within
the next three years it is necessary to construct 100 hospitals in regions
across
Fifth, a serious
attention should be given to the sanitary infrastructure of
Sixth, incentives
should be created to develop a competitive market of healthcare and medical
insurance services which should be accessible for the people.
Seventh, it is
necessary to rapidly adapt the training and certification of doctors and
medical workers to international standards of education. It is also necessary
to think over the introduction of an incentive based wage system for medical
workers depending on the level of their qualification category, specialty type
and workload.
In the meantime
we should start creating a high-tech healthcare system which is to be available
to the widest cross-section of our population. For this purpose:
First, the
Ministry of Healthcare should develop a system of improvement of modern and
high-tech prophylaxis and diagnostics, first of all, in pre-school and school
establishments; patients’ medical consultations, treatment and rehabilitation
of socially significant diseases. It is necessary to stimulate the creation of
high-tech medical centres of early detection and prevention of diseases.
Second, the state
should assist public healthcare authorities in developing a system of
high-performance information technologies, among other things by creating
nationally accessible electronic medical records.
The twenty
second direction – Development of a cumulative pension system
The Government
should draft proposals regarding further improvement of a cumulative pension
system.
The most pressing
tasks are:
First, the
provision of state guarantees for keeping pension savings and their sufficiency
at old age.
Second, maximum
population coverage with a cumulative pension system.
V. Political
and administrative development in accordance with the logic of the New stage
The twenty
third direction – Development of the political system
The primary task
at the new stage is further strengthening the foundations of an open,
democratic and legal state which harmoniously combines universally recognized
democratic values with the traditions of our multi-ethnic and multi-religious
society.
The important
directions for the development primarily are:
• Increasing the interaction efficiency
and strengthening the system of checks and balances between the branches of
power;
• Expanding the powers of representative
bodies;
• Creating favourable conditions for
strengthening the role of political parties and development of civil society
institutions;
• Improving efficiency and transparency of
government institutions;
• Reforming the structure of executive
power to provide improved public access to the government decision making
process;
• Further strengthening the institutional
mechanisms for the protection of human rights and freedoms;
• Creating conditions for the development
of local self-government; and
• Promoting the harmonious development of
mass media.
The State
Commission, having worked for a year, has presented the basic directions of
democratic reforms. Now, it is time for a group of legal experts to prepare
draft laws and amendments to our Constitution.
I am also confident that all this will finally allow us to find an
optimal model of harmonious political and state formation of our country at
this new stage of
The twenty
fourth direction – Realization of
administrative reforms and modernization of executive power
We are creating a
qualitatively new model of state administration on principles of corporate
management, productivity, transparency and accountability to society taking
into account best international experience.
First, the
Government, together with the akims, should radically change approaches to the
drafting and contents of program documents. Each state body should have a
strategic plan, a determined mission, clear priorities and established target
parameters of all state bodies’ activity, and the work of each civil servant
should be focused on these priorities. I assign to rethink active programs, to
unite them around our strategic priorities and reduce or transfer other
programs to another level of responsibility where necessary.
Second, the
separation of functions of state bodies into strategic, administrative,
executive, and controlling and supervising should reach its logical conclusion.
The analysis of governmental decisions should be carried out annually to avoid
duplicating functions and improve inter-budgetary relations, overcoming the
conflict of interests.
Third, it is
necessary to improve the budgetary planning aimed at maintaining efficiency,
productivity, controllability and transparency.
Fourth, the
Government should transfer all non-strategic economic activity of the state to
the competitive market environment.
Fifth, the system
of state procurement should establish precise rules and procedures; they should
be transparent, controllable, clear and easily fulfilled.