THE STATEMENT OF THE PRESIDENT OF THE REPUBLIC OF KAZAKHSTAN NURSULTAN NAZARBAYEV AT THE INTERNATIONAL CONFERENCE "KAZAKHSTAN-2030 STRATEGY IN ACTION"
October 11, 2005
Dear participants of the conference!
Eight years ago for the first time of my presidency I appealed to the people of Kazakhstan with a message, wherein I shared with the citizens my imagination of the mission of our state and prospects of our society. I submitted for consideration the long-term Strategy for Development of Kazakhstan Until the Year 2030. This Strategy sought to shape the contours of the Kazakhstan future and accordingly the trends of the country.
I saw the mission of our country in the construction of an independent, prospering and politically stable Kazakhstan with inherent national unity, social justice, and economical welfare for the whole population.
I permit myself to cite different abstracts from the Strategy. “In 2030 our offspring will live in the country which no longer will be at the background of the world events. Their Kazakhstan, being a center of the EuroAsia will play a role of economic and cultural connecting unit between three regions that quickly grow; they are China, Russia and the Moslem world.
Kazakhstan of 2030 will not be perfect yet. It will not be the richest, the most educated, the most advanced country in the world. But, it will have successfully passed the difficult path and will have entered the next stage of development. Of course, all this – just the imagination of future, a model, an ideal target, a dream. And a lot of you will smile bitterly only, they will consider this like Utopia, comparing the ideal with today’s life, when sometimes the most elementary thing is in shortage”.
Thus, I have told to the Kazakhstan people in 1997, calling them to live thinking not only about the current problems that sometimes have been unbearably painful, but to see a perspective even though not clear and obvious, but one that will help us move forward.
I was sure, that the state and the society as a whole was in need of global vision and strategy of development, being the system of co-ordinates within the frames of which the reforms would move gradually and by a system, and as a whole the development of the country.
And Kazakhstan was the first in the whole post-soviet territory which had chosen the way of the strategic planning.
The basic purpose we have targeted in the Strategy is the supply prosperity, safety and welfare improvement of all citizens of Kazakhstan.
Let us, for a moment, restore in the memory the events of the past years and remember what circumstances have accompanied the Strategy adoption.
Still being in the general economic and transformation crisis caused by the painful transition from the command to the market economics which occurred in its new turn, provoked by the financial crisis in the South East Asia and Russia.
Delays of wage payments and pensions, high level of unemployment, in winter frozen cities and electricity interruption, it was seemed that all this would always accompany our life.
The rise of economic and social problems inside the country coincided with the external instability.
But, how-ever that might be hard, we continued with economic, social and political reforms, which created all prerequisites for the implementation of the Strategy. This was not a survival strategy, but a development strategy for decades.
Today, summarizing the outcomes of eight years of Strategy implementation which constitutes one fourth of the way we needed to go, we can state that the chosen strategic priorities are right and justified.
National security, domestic political stability and consolidation of the society are the two conditions, without which the sustainable development of our country could not have taken place.
It was not by accident that in the Strategy, these items are indicated as the most important priorities in terms of their significance.
As of today, we have created all possible conditions to ensure the security of our country.
Modern armed forces have been established.
Thanks to our diplomatic efforts, both the sovereignty and the territorial integrity of the state have been strengthened.
Over the course of the past years, we were able to delineate the borders for the entire distance thereof, which constitutes over 14 thousand kilometers, and this is a serious guarantee of our security.
Kazakhstan actively participates in the formation of the foundations for regional security. We have reinforced our strategic partnerships with the leading countries of the world – the Russian Federation and China, the USA and the European Union.
Today we can say with confidence, a “belt” of peace has been formed that around us and not a single country in the world has claims to us, nor is hostile towards us.
Peace and tranquillity reign within our country as well.
Having declared civil consciousness based on equal opportunities for all citizens regardless of their nationality, religion, or political views as our priority were we able to achieve them.
Today, Kazakhstan is one of the few post-Soviet states that have preserved national harmony and civil peace, and where there are no conflicts between different nationalities or confessional discord.
It was Kazakhstan who hosted the first convention of the leaders of the world and traditional religions, and the decision has been made to conduct the second convention here, in our country. Is not that worthy to be proud of?
We implement political reforms directed towards further democratization of the foundations of governmental administration and building of a civil society, on a consistent basis.
Progressive democratization of the society, without weakening of the governmental power that is responsible for the stability and the future of the country, is the direction, which we follow.
Here I have to say about our new capital, Astana. The capital has succeeded, it is growing and transforming beneath our eyes. Apart from the geopolitical advantages, the relocation of the capital has caused an enormous multiplier effect on the whole economy of the country.
Accomplishing a range of strategic and economic tasks, it was important for us to motive the young generation. I think we have achieved it.
Reflecting upon the stability of our development, I am, time and again, convinced of the accuracy of my views that for a successful progress of the state and for fulfillment of social obligations, an effective economy is necessary.
That is why we have selected economic growth, exploration of energy resources, and development of infrastructure as the main means of implementation of our strategic goal.
In difficult times, we have implemented major economic reforms within the context of realization of these priorities, and the successes of the present day are the natural yield and the consequence of such reforms.
As of today, Kazakhstan is one of the most dynamically developing countries in the world, and this fact is acknowledged by everyone. We have not only reached the pre-reform GDP level, but it is now at 116% of its 1991 level. Experts include in leading post-soviet countries.
The average GDP growth rate over the last five years, was 10.3 %. this year GDP per capita will reach $ 3440 USD which will constitute a 3-fold increase from 1999. I have already noted that the our growth rates will allow us to double the GDP as early as 2008, i.e. 2 years earlier than it was stipulated in the strategic plan for the decade.
Production Growth is taking place in practically all sectors of the economy which gradually rids us of raw-material orientation of the economy. In the framework of implementation of the Strategy for Industrial-Innovation Development and Cluster Initiatives, the production volumes are growing in non-oil sectors. All this is the evidence of qualitative changes in the economy.
These results would not have been possible in the absence of targeted government policies aimed at support of the economic growth.
We ensured the macroeconomic stability.
We created an economic environment that corresponds to the standards of a developed market.
Kazakhstan was one of the first CIS countries that the European Union and the USA acknowledged as a market economy, and the leading international rating agencies have given our country an investment-grade rating.
We made an investment break-through and created a favorable investment climate.
Today, the country takes the leading place among the CIS states in terms of the attracted foreign investments per capita.
Almost 80 percent of all foreign investments into the Central Asian Region are allocated to Kazakhstan.
Moreover, the state via the development institutions has also become an active initiator of investment processes.
Undoubtedly, the development of the oil sector became the engine for the economic growth.
Our objective is to develop this sector taking into account our own interest and the interest of international energy stability and security, on the one hand, and on the other, to use the resources of the sector, transform them into new advantages, and at the same time to build a new economy, the economy of our future. An economy, which will be a viable one, regardless of the availability of raw material resources, which may someday be depleted.
The main wealth of a nation lies not in the availability of natural resources, but in its ability innovate.
In this connection, experience of Finland and Singapore – the countries that became world leaders in competitiveness, should serve as an example for us. In order to achieve this, our economy should be able to respond adequately to the challenges put forth by the world competition.
According to the Global Competitiveness Report published by the World Economic Forum, in 2005 Kazakhstan, having left its CIS neighbors behind, is at the 61st place in the range of 117 countries, included in the report. However, as you know, we undertook a more ambitious task to enter the top 50 most competitive nations.
The trends of the current development break the stereotype of intracontinental (land-locked) “doom” of the country.
Involvement of Kazakhstan in the process of economic globalization, at the first stage, presents an opportunity to become over time an active participant of the global economic integration process through performing the function of one of the main raw materials suppliers, mainly hydrocarbons, to the European and Chinese markets.
I see Kazakhstan as a junction country in the Central Asian region, as an integrator of inter-regional economic relations, and a center of gravity for capital and investments, locating regional production or subsidiaries of the major global companies, targeted at the Central Asian market, and a center for international services market.
In perspective, Kazakhstan may perform the functions of an important link, a trans-continental economic bridge for interaction among the European, Asia-Pacific, and South-Asian economic regions.
At my request, the Strategy for Territorial Development Until the 2015 which would set new tasks for the future, is currently being developed.
I would like to note once more that economic growth is not a goal in and of itself, but a way to ensure the well-being of our citizens and stable social development. Human capital is getting more and more determinative factor in the light of the new large-scale economic tasks. That is why, health, education, and well-being of citizens has become one of the major priorities of the long-term strategy, and a criteria for evaluation of the entire scope of our activities.
The progressive economic growth has permitted us to significantly increase expenditures on the social sector, and to begin the implementation of large-scale state programs on development of education and healthcare systems for the period until the year 2010.
In the course of the reforms, we could create an efficient system of social security and overcome the paternalistic approach in our society.
We were the first country on the entire post-Soviet area in introducing the system of pension savings.
As of today, we have already begun the formation of a fair, three-level system of social security, in which responsibility is distributed among the state, the employer, and the employee.
I have never promised the impossible, but what I have promised I fulfill. Our pensions and wages are currently among the highest ones in the post-Soviet space. Owing to large-scale and complex approach, we have left our neighbors lagging far behind us, for ten years ago the situations in their countries were better than the situation in Kazakhstan. Having taken a line toward economic, social and political modernization we have been gradually implementing it, and, as it was determined by the Strategy, we will provide prosperous life for Kazakhstan and its people.
Building of an economically developed, social-oriented, and democratic state within a short time period – is an extremely difficult task.
Many things depend on how well the power structures are organized, and how well state governance and economy management are performed in conditions of global changes.
We could create a compact and professional government, which successfully carries out implementation of the intended plans.
As of today, our state apparatus has become more flexible, efficient, and adaptive to external changes and people's needs.
We have harmonized strategic, indicative and budgetary planning, and we have created an integral and efficient system of planning. In the framework of the administrative and budgetary reforms, we have delineated the authorities among various levels of governmental administration, and we have started the process of de-bureaucratization. A new model of public service, which has been recognized as one of the most progressive among the countries of the CIS, has been introduced into practice.
I would like to note that we have studied the best world practices in reforming of social-economic sphere. Owing to rational and considered combination of world experiences and our country's specifics we have been successful.
Both international organizations, and the governments of other countries take an interest in our experience. I would like to quote an opinion of famous economist, the Head of Russian School of Economics – Yevgeniy Yasin. During the discussion about social responsibility of his government, he stressed the following: «Russia and Kazakhstan move together toward liberal reforms implementation, but Kazakhstan has become more successful in this sphere. We learn from Kazakhstan's liberal reforms in the market of electrical energy industry, housing and utilities infrastructure, pension system".
I believe, that this is a well deserved recognition of Kazakhstan's achievements.
Dear conference participants!
On the whole, positive changes have taken place in the development of our country, and these changes indicate timeliness of the long-term Strategy adoption and propriety of the chosen priorities.
Kazakhstan has proven to itself and to its closest neighbors that it can attain the goals set before it, regardless of the scope and the scale thereof.
Consistency, continuity and gradual development in achieving strategic goals ensure success and sustainable development of our country.
Of course, not everything happens right away. Singapore and Malaysia's journey towards prosperity lasted decades, but their course was a right one.
Today Kazakhstani path is set: from stability through modernization to prosperity.
I believe that even now we are ready for a critical break-through, because the foundation for it has been created.
Today, Kazakhstan has a respected place within the world community, and has become a leader in reforms within the region, an island of well-being and tranquility, aimed towards the future.
We have become an example of successful realization of an open market economy and democratic development, the direction that the whole world is headed towards.
Today, many international experts, who provided their consultations to us both during the state of development of the Strategy, and during the process of the subsequent implementation thereof, are present in the audience.
I would like to express my gratitude to you for your contribution to our development. At this conference, we have yet another opportunity to share the best practices, jointly discuss our future actions, given that the main objectives of the further economic, social and political modernization of Kazakhstan have been set in the President’s address to the people of Kazakhstan in February of this year as well as in presentation of the opening of the Parliamentary session.
I believe that only by the means of collaboration, constant exchange of the accumulated experience, objective evaluation of the past, and proper planning of the future, common progress can be attained.
I would like to wish productive work to all participants of the conference.
Thank you for your attention.
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