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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."

National plan “100 precise steps towards realization of the five institutional reforms”

 

100 Precise Steps National Plan is a response to the systemic domestic challenges and, at the same time, a revised strategy for Kazakhstan to enter the club of the 30 world most developed nations that has been adjusted to the recent global developments. These 100 precise steps shall enable Kazakhstan to go through the difficult period and to implement its 2050 Strategy as a strengthened and consolidated nation. The 100 Precise Steps National Plan is not about superficial changes but systemic reforms of the entire society, state and government.

 

The Five Reforms Proposed by President:

  • New Modern State Apparatus
  • Rule of Law
  • Industrialization and Economic Growth
  • Nation of Shared Future
  • Transparent and Accountable Government

 

The 100 Precise Steps: Modern State for All

 

I. Professionalism of Public Administration and State Apparatus Officials 

1. Procedures of admission of civil servants and state apparatus officers shall be altered. The career shall start from lower positions.

2. Selection of applicants for the starting positions in the state apparatus and their career perspectives shall depend on their professional merits.

3. Selection procedures for the applicants for the starting positions in the state apparatus shall be centralized. The Agency of Public Service and Anti-Corruption shall be reinforced. The three-stage admission procedure shall be introduced.

4. All civil servants starting their career shall proceed through the probation period with mandatory examinations after the first three and six months of service.

5. All civil servants shall be paid for their work in accordance with their professionalism and performance.

6. The following pay scheme shall be introduced: for public administration officers: in accordance with the completion of the annual personal performance plan; for public administration offices: in accordance with the completion of the strategic annual plans; for mayors and governors: in accordance with such indicators as the overall quality of state services, living standards, amount of the investment attracted; for cabinet ministers: in accordance with macroeconomic indicators.

7. Coefficient pay for civil servants in the regions shall be introduced.

8. Mandatory service housing for rotating civil servants without the right of privatization shall be provided.

9. Law stipulating that professional development for all civil servants is mandatory at least once in three years shall be adopted.

10. Transparent competitive procedures for career promotion of civil servants shall be introduced. Meritocratic principles shall be followed in each case of promotion of civil servants: higher position shall be occupied by those who have been on lower positions previously.

11. Careers in the state apparatus and public administration shall be accessible for managing professionals who are foreign nationals as well as those who have had prior employment in private sector or intergovernmental organizations. The specific requirements for admission of such individuals shall be introduced and specified nomenclature of positions shall be specified. This step shall make the civil service more open and competitive.

12. New code of ethical conduct for civil servants shall be adopted as well as the position of a special officer to monitor the compliance.

13. Anti-corruption measures shall be intensified including new legislature. The Agency for Civil Service and Anti-Corruption shall have Special Forces for prevention of corruption offenses.

14. New law on public service in all government agencies, including law enforcement, shall be adopted.

15. Comprehensive certification of civil servants shall be carried out after adoption of the new law on civil service, the qualification requirements shall be strengthened and new pay system shall be introduced.


I I. Rule of Law

16. Court system shall be optimized to facilitate access to justice for all. The five-tier justice (first, appeal, cassation, supervisory and re-supervisory) shall be replaced by a three-tier system (first, appeal, and cassation).

17. Qualification requirements and selecting mechanisms for judicial professionals shall be reinforced to include mandatory five-year barrister experience, situational testing, rendering of scholarships, one -year internship in courts, and one-year probation for all newly appointed judges. 

18. Institute of Justice shall be established within the Academy of Public Administration under the Supreme Court in order to strengthen the link between the educational process and the realities of the court practice. The institute shall become the base where the current judges shall undertake their professional development on the regular basis.

19. Accountability of judges shall be reinforced and a new ethical code shall be adopted enabling citizens to submit official complains about judges’ misconduct to the college of judges established under the Supreme Court to consider the matters of the ethical character.

20. CC TV shall be installed in all courtrooms and recording shall be performed during all public trials. Judges shall not be given the right to halt the recording or edit the footage.

21. Nomenclature of cases with mandatory trial by jury shall be increased and include all criminal offences.

22. Powers of prosecution and defense in courts shall be more balanced, investigating judges shall be given the powers to authorize procedures of any king necessary to investigate the actions that allegedly have resulted in violations of constitutional rights of citizens.

23. Separate courts to resolve investment disputes as well as Investment College under the Supreme Court shall be established.

24. International Financial Centre shall be established in Astana (AIFC).

25. International Council, which would include reputable foreign judges and lawyers, shall be established under the Supreme Court of Kazakhstan to consider the implementation of the best international standards and advise to the Supreme Court on the matter.

26. Prosecutor involvement in civil courts shall be reduced; judicial procedures of the trial shall be simplified. The Civil Code shall be amended.

27. Institution of private court officers shall be established, State Court Officers service shall be gradually reduced.

28. Police officers selection and admission procedures shall be based on the competency-based approach. The initial testing of the candidates and regular attestation of the police officers shall be conducted to assess personal qualities and professional skills.

29. Law enforcement officers shall be included into in the civil service. The uniform rules shall be introduced that would however take into account the characteristic features of each departmental law enforcement service.

30. Police shall be accountable to the local executive authorities and communities and tackle the issues of public order, domestic crime prevention, traffic, minor offenses. Road patrol police shall be provided with DVRs.

31. Public review board shall be established by law to consider complaints against the police officers who violate ethical standards.

32. "Criminal Offense MAP" internet portal shall be created to record all criminal offences in Kazakhstan no later than one week after the commission. This will enable the public to monitor the effectiveness of the law-enforcement organs.

33. Effective system of social rehabilitation of offenders shall be introduced as well as integrated strategy for social rehabilitation and standards of social services.

34. Penitentiary institutions infrastructure shall be modernized through public-private partnership. International experience and proposals of private sector about construction, maintenance and management of prisons shall be considered.

 

I I I . Industrialization and economic Growth

 

35. Market trading of agricultural land shall be legal; the Land Code and other legislature shall be amended, these measures shall facilitate more effective use agricultural land.

36. Procedures to alter the initial purpose of land use shall be simplified. Effectiveness of use of agricultural land shall be monitored; unused state-owned land shall be privatized.

37. Tax and customs policies and procedures shall be optimized: the amount of customs duties shall be reduced and the "0-5-12" single customs tariff shall be introduced.

38. Customs procedures shall follow the "single window" principle for both export and import. The electronic declaration system shall be introduced as well as automated goods clearance system. Amount of paper work for both export and import activities shall be reduced.

39. Customs and tax systems shall be integrated. For tax purposes, importers shall be monitored from the date the imported goods cross the border of Kazakhstan to the moment they are sold.

40.  Post factum customs clearance procedures shall be introduced for certain categories of foreign trade participants.

41. Property and cash legalization procedure shall be simplified; the current legislation shall be amended.

42. Universal tax declaration shall be mandatory for public servants and from January 1, 2017 for all citizens.

43. Special centers shall be opened to receive and process tax declarations that would have access to a single repository of electronic data base. A system shall be introduced to rank the declarants by risk category and respected tax control measures taken in each individual case. After the first submission of the declaration, physical persons shall not be subject to re-examination within three years.

44. Indirect taxes levying mechanism shall be improved. Introduction of sales tax instead of VAT shall be considered.

45. Current tax regime shall be optimized with mandatory tax accounting of income and expenses.

46. Three-tier procedure of obtaining of building permits shall be introduced: 1) issuing architectural planning specifications (30 days); 2) approval of design project (20 days); 3) issuing building permit (10 days).

47. State monopoly on design specifications and estimates shall be ceased and competitive environment provided.

48. Estimated cost of construction shall be determined in accordance with the current market prices of materials, equipment and labor that will allow updating the database of estimating organs with the information about new materials, equipment and technologies.

49. European standards shall replace the current construction standards and regulations to facilitate the use of innovative technologies and materials, increase the competitiveness of the specialists from Kazakhstan in the domestic and foreign construction markets.

50. Power and electricity industry shall be modernized via implementation of the "single buyer" model to eliminate the differences in the electricity tariffs between regions.

51. Regional Electrical Grid Companies (RECs) shall be merged to ensure uninterrupted power supply, reduce the cost of the electricity transmission in the regions as well as reduce the price the electricity is sold to the consumers.

52. New tariff policy in energy industry shall encourage investment into the sector. The new tariffs shall include a fixed part to cover capital expenditures and a fluctuating part to cover the variable costs of electricity production. New tariff system shall replace the current one when the tariffs are calculated under the "cost-plus" principle.

53. Antimonopoly Service shall work in accordance with OECD standards to promote free competition.

54. Institution of Business Ombudsman shall be reinforced to protect the interests of entrepreneurs. The college under the Ombudsman shall include the representatives of business community and the National Chamber of Entrepreneurs.

55. At least ten TNCs shall be attracted into the processing sector of Kazakhstan to boost the export of the goods made in Kazakhstan to the world markets. New business opportunities in Kazakhstan shall be publicized in the course of international economic forums.

56. Joint ventures shall be opened in priority sectors with anchor investors being international strategic partners (the experience of Air Astana, Tengizchevroil and others shall be considered). In the future, the state's share in the joint ventures will be replaced by the IPO. The favorable migration regime similar to those in the USA, Canada, Australia shall be established to attract highly qualified professionals from abroad.

57. Strategic (anchor) investors having international experience in tourist industry shall be attracted to build a number of tourist clusters in Kazakhstan.

58. Strategic (anchor) investors shall be attracted to facilitate the functioning of a single operator to maintain and develop the road transport infrastructure in Kazakhstan.

59. Strategic (anchor) investors shall be involved into the energy saving complex through the internationally recognized mechanism of contracts with the main aim being to stimulate private energy companies to provide comprehensive services in the field of energy saving. The contracts shall stipulate return of the investment costs and profit from the actual energy savings achieved.

60. Strategic investors shall be attracted into dairy industry with the main objective being to achieve 50% increase of the export to the CIS countries within three years. The experience of New Zealand and Danish Fronterra Arla in the development of cooperative farmer production shall be considered.

61. Strategic investors shall be attracted into the meat production and processing with the main aim being to develop the resource base and boost the export of processed meat.

62. The "National Champions" initiative shall be realized to support individual medium-sized enterprises in the non-oil sectors of the economy that have demonstrated the best performance in their respected filed. That will facilitate dissimilation of the business expertise.

63. Two innovative clusters shall be reinforced as the bases for building of the knowledge-based economy. Astana Business Campus of Nazarbayev University will host centers and laboratories to conduct a series of joint research projects and facilitate further commercialization of their results. The national industrial parks shall involve both local and foreign high-tech companies to implement individual innovative technological projects.

64. Law "On commercialization of the results of scientific and (or) technical activities" shall be adopted to regulate the investment into the filed. The government research grants and programs shall be reoriented to the needs of the National Program of Rapid Industrial and Innovative Development.

65. Kazakhstan shall be integrated into the international transport-communication system; multimodal Eurasian transcontinental corridor shall be built to maintain uninterrupted cargo transit from Asia to Europe. The first branch of the transport corridor shall connect Kazakhstan through Russia with Europe. The second branch from Khorgos to Aktau shall cross the Caspian Sea connecting Kazakhstan to Azerbaijan and Georgia. The project shall be implemented with the involvement of the newly established Asian Bank for Infrastructure Investment.

66. International aviation hub shall be built near the city of Almaty. Strategic investors shall be attracted to build a new international airport that would meet the international standards.

67.   The National Company Kazakhstan Temir Zholy and Air Astana carrier shall become major international operators. The Air Astana shall open new flights to the world largest economic and financial centers such as New York, Tokyo, Singapore. The development of the Air Astana will be conducted simultaneously with the reforms in the Kazakhstan Temir Zholy aimed at building of a number of alternative routes that will reduce the cost of cargo delivery more than twice.

68. Efficiency of the state regulation of air services in Kazakhstan shall be enhanced to boost its attractiveness. The Civil Aviation Committee of Kazakhstan shall use the experience of the Civil Aviation Authority of the UK and the European Aviation Safety Agency.

69. The city of Astana shall be transformed into the business, cultural and scientific center of Eurasia attracting researchers, students, businesspersons, tourists from all over the region. At the same time, the city will become a modern center for international transport and logistics with a new airport terminal.

70. Astana International Financial Center (AIFC) shall be opened using the EXPO 2017 infrastructure. The AIFC special legal status shall establish it as a new financial hub for the CIS countries as well as West and Central Asia. The Center will function with an independent judicial system of its own jurisdiction operating on the principles of the common law. Its judiciary shall be the most reputable foreign specialists. In future, the AIFC of Kazakhstan shall be ranked among the 20 leading financial centers of the world.

71. Strategy for the Financial Center Development shall be elaborated to boost the capital markets and Islamic finance. New types of exclusive financial services such as private banking and asset management shall be provided. More liberal tax regime shall be maintained within the Center. The option of establishment of the offshore financial market shall be considered as well as adaptation of investment residency practice similar to that of Dubai.

72. The English shall become the official language on the territory of the AIFC. The legislation within the Center jurisdiction should be in English.

73. Accessibility of the AIFC and its integration into the international transport infrastructure shall be increased and high-quality air connection to the other global financial centers shall be maintained.

74. Transparency and predictability of subsoil use shall be maintained via introduction of the CRIRSCO reporting standards.

75. Simplified contracting procedures using the best international experience shall be introduced in the mining industry.

76. Measures shall be taken to improve the quality of human capital (the OECD standards); comprehensive schooling shall be increased up to 12 years; the basics of economics shall be included into the school curriculum. Per capita principle shall be introduced for financing of high school as well as the incentives for successful schools.

77. Professional education to meet the demand of the key industries shall be provided in the ten leading universities and colleges; later the experience shall be dissimilated to the other educational establishments of Kazakhstan.

78. Academic freedom of universities shall be gradually reinforced; the experience gained at Nazarbayev University shall be considered. Private universities shall be transformed into non-profit entities; international experience shall be used.

79. English shall gradually become the language of education in high school and universities with the ultimate goal being to boost the competiveness of the human capital of Kazakhstan and to increase the export potential of its educational system.

80. Social health insurance shall be introduced; financial stability of the healthcare system shall be reinforced via joint involvement of state, employers and employees. The primary health care (PHC) shall receive the bulk of government spending so that this sector would become the central to the national healthcare aimed at prevention and early disease control.

81. Institute of private medical care and corporate management of medical facilitates shall be introduced in order to boost the competition to improve the availability and quality of services via financing of primary health through social insurance.  Privatization of public health shall be encouraged; the list of the guaranteed free medical services they provide shall be expanded.

82. Ministry of Health and Social Development shall establish a joint commission with the main objective being to facilitate the introduction of the most advanced standards of medical care in such spheres as treatment protocols, training, pharmaceutical market, quality control, availability and affordability.

83. Labour relations shall be liberalized; a new Labour Code shall be adopted.

84. Social assistance shall be strengthened and become a more target-oriented; the benefits shall be provided only to those who need them. Active engagement into the system of promoting employment and social integration implemented under a number of National Programs shall become mandatory for the able-bodied people with low incomes to be untitled to the social aid provided by state.

 

I V. Common Identity and Unity

85. Mangilik El Patriotic Act shall be adopted.

86. People’s Assembly of Kazakhstan shall work out and implement a comprehensive project of national scale “Big Country – Big Family” to consolidate the common identity and civic unity of the people living in Kazakhstan. The work shall be done simultaneously with the activities to boost the tourist industry that would include domestic tourism and building a number of tourist clusters, namely “Astana: the Heart of Eurasia”, “Almaty; Free Cultural Zone of Kazakhstan” , “Nomadic Culture; in Harmony with Nature”, “Altay: the Jewel of Kazakhstan”. “Great Silk Road Revival”, “Caspian Gate”.

87. National Program Menin Elim to consolidate the civil nation of Kazakhstan shall be implemented via a series of technological projects that would include establishment of the Virtual Encyclopaedia of Kazakhstan containing the information in 3D format about history, culture, significant events in the public life, human-interest stories. The Virtual Encyclopaedia shall become the "poster" of the country, its National Hall of Fame and a platform for communication.

88. Concept of ​​ Society of Universal Labor shall be realized with the aim being to develop domestic labor market, increase employment opportunities and transform the public attitudes and work ethics. The Program of infrastructure development "Nurly Zhol" and the second five-year stage of realization of the National Program of Rapid Industrial and Innovative Development shall become the key facilitators to achieve these goals. The personal stories of those who achieved a lot in work place, business, science, education, and other professional fields due to the numerous vehicles provided by state shall be popularized and promoted throughout the national media. The measures shall be taken to boost the prestige social workers and those having the trades that are of crucial importance for realization the "Kazakhstan-2050" Strategy.

89. Project of "Nurly Bolashak" aimed at introduction of the Mangilik El content into the school curriculum shall be implemented. 

90. Five Institutional Reforms as well as civil national identity of Kazakhstan shall be promoted through the national media of all kind including social networks.

 

V. Transparent and Accountable State

91. Standardized procedures for monitoring, evaluation and control shall be introduced to assess the performance of the public administration. Disciplinary control shall be based solely on the target indicators. Intermediate control should be abolished. Public authorities shall be given the autonomy in their activities to achieve the set targets.

92. State planning shall be more focused; the number of government programs shall be reduced; industry-specific programs shall be integrated into the national programs, and the strategic plans. The strategic plans and programs of regional development shall be revised and strengthened in terms of the key target indicators.

93. New procedures of audit and evaluation of the government apparatus shall be introduced. The evaluation of national programs shall be carried out once every three years. The evaluating of the performance of the government agencies in terms of their realization of the strategic plans shall be carried out annually. The Law "On State Audit and Financial Control" shall be adopted. The State Audit Committee shall implement the expertise of the most reputable international auditing companies.

94. "Open Government" shall be introduced. The law shall be adopted stipulating better access to the information from the state organs except the classified files.

95. Practice of annual public speaking delivered by the heads of state bodies shall be introduced to inform about the achievements of the key goals set in the strategic plans and regional development programs. The information shall be also available on the official websites.

96. Online availability of statistical databases of the central government bodies shall be provided as well as the budget and consolidated financial statements of the local and national bodies, the external financial audit documents, and the evaluation and control documents shall be published.

97. Public participation and inclusion shall be reinforced though consolidation of self-government on local level. The functions uncharacteristic to state shall be become the subject of competitive market or be transformed to the civil society.

98. Local governments of villages, auls, and town shall be responsible for their own budgets. In the regional centers and the cities of national importance, the mechanisms of better public participation in the discussion over the budget matters shall be introduced.

99. Role of the public councils under government bodies and city administrations shall be increased to promote the discussions on such issues as the strategic plans and regional development programs; the budgets and reports, on achievement of the target indicators, the draft laws and regulations affecting the rights and freedoms of citizens; the draft programs. The status and powers of such public councils shall be provided by law. That will improve the transparency of government decision-making.

100. State Corporation GOVERNMENT FOR CITIZENS modeled on the Canada’s Service Canada or the Australia‘s Centrelink shall be established to integrate all the public service centers into a single system. International quality management certification of the public services shall be conducted in accordance to the ISO 9000 standard.

  

Implementation Mechanisms

  • National Commission on Modernization under the President of Kazakhstan with five specialist working groups of the experts from Kazakhstan and abroad has been established;
  • National Commission shall supervise the implementation of the Five Institutional Reforms and facilitate communication and harmonization of the work of the state bodies, business community, and civil society.
  • National Commission shall be responsible for the decision of strategic character and for the adaptation of action plans. The propositions of the National Commission shall be approved by the President of Kazakhstan. The implementation of the Commission resolutions shall be based on the laws adopted by the National Parliament as well as the government directives.
  • National Commission shall monitor the performance of ministers and governors.
  • International Advisory Board shall be established under the National Commission, which would include the most reputable foreign experts, to make recommendations and independent expert evaluation of the measures taken within the Five Institutional Reforms.
  • Office of the Prime Minister of Kazakhstan shall be the working organ of the National Commission.