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Kazakhstan Institute for Strategic Studies

under the President of the Republic of Kazakhstan

Address of the President to the people of Kazakhstan

Third Modernization of Kazakhstan

"Only those nations who manage to set the future goals and proceed resolutely facing the challenges,

instead of sitting on the hedge and waiting, are the winners."

Mobilizing Potential of the of Presidential Address to the Nation of Kazakhstan

 

 

The Annual Address of the President on “Kazakhstan in the new global reality: growth, reform, development" is one of the most significant political documents of the year. Its significance lies in the fact that it determines the main directions of the development of the country in the short term and provides a guidance of the authorities, political parties and public organizations. It also mobilizes the human, financial, material and media resources for the success of the reforms.

The main message is the following: "due to the challenges of the new global reality, a comprehensive strategy of action based on our actual capacities is needed." President Nazarbayev proposes a pre-emptive anti-crisis strategy and austerity regime aimed at rationalization of the available resources.

In his Address, the President noted that "our main anti-crisis strategy is based on three simple but important concepts: growth, reform, development".

The first is economic growth. With regard to the current problems, we need to restore the economic growth to such an extent that will secure Kazakhstan’s entry of into the club of the thirty most developed countries in the world. We need to find new sources of growth via revival of the private initiative.

The second priority is the reforms to provide the stability of the economy, society and state. Currently, the 100 Precise Steps National Plan is being implemented. "The current reforms are comparable in the scale and significance with those carried out in the 1990s. The overall reform of the state and corporate management, financial and fiscal sectors is vitally important”.

The third priority is development. In the 21st century, the main driver of development is a continuous modernization of all spheres. “We are working on a large-scale transformation of the state, public and private institutions on the principles of universal labor, greater social responsibility, and targeted assistance to the most vulnerable people".

These three strategic priorities outlined in the Annual Address are a positive response of crucial significance to the current risks, challenges and threats. The measures aimed at ensuring growth, reforms and development are the primarily conditions for the future progressive development of the country.

President Nazarbayev formulated the new approaches to government policies in terms of economy and financial system. The complex anti-crisis and structural change shall be aimed primarily at stabilizing the national financial system and, above all, the banking sector. The National Fund shall be used only as a fixed annual transfer to the republican budget.

The approach towards fiscal policy and government revenue and expenditure shall also change: inefficient tax breaks shall be abandoned. The programs that used to be funded via public spending shall be revised: all those spheres where the provision through private sector is possible shall be transferred into the private sector. The public spending shall decrease and the mechanisms of public-private partnerships shall be encouraged. The future fiscal policy shall be that of austerity.

In order to ensure sustainable economic growth the maximum release of internal resources is required. For these purposes two effective tool will be used: large-scale privatization and expansion of competition. New program to stimulate economic competition and privatization is to reduce state involvement in economy and to remove price regulations.

As for the public sector, the government shall fully fulfill its social obligations. Since 1 January 2015 average increase of public sector wages shall be 30%, similar increase shall be in social benefits and bursaries. As for the pension, it shall 2% ahead of the inflation rate. Importantly, in 2017, all vocational education is to be free throughout the country.

The new policy is that of smaller state; welfare shall be limited to only supporting of the socially vulnerable people based on an assessment of their real incomes and living conditions, the rest have to earn themselves their living.

The goals set for the next decade are ambitious: to provide an annual GDP growth of at least 5%; to increase the annual volume of investments in more than $10 billion; to create more than 660, 000 new jobs; to double the productivity; every product  that is "made in Kazakhstan" should be of high quality, comfortable, beautiful and inexpensive.

President Nazarbayev called on all political parties, public associations and all citizens to take an active part in the implementation of the goals set in the Address. The special role is assigned to the Nur Otan party. Overall, Nursultan Nazarbayev gives an optimistic target setting: "Kazakhstan has become a leading country in the region with strong institutions, competent, efficient and predictable government. We must have the best technical staff, world-class infrastructure and ensure public order and personal safety of people".

The main task in the near future is to implement the plan of growth, reform and development, and this means greater responsibility of the government and all people of Kazakhstan.

Yuri Buluktaev