Nazarbayev Reflects on First Five Years of Industrial-Innovative Development Programme

ASTANA – Kazakh President Nursultan Nazarbayev took part in a roundtable on industrialisation issues held Nov. 20 in the Akorda presidential residence, covering the results Kazakhstan achieved during the first five years of the State Programme on Accelerated Industrial and Innovative Development (SPAIID) and the preventive economic measures set forth by the newly unveiled Nurly Zhol policy.

круглого стола, 20.11.14

President Nursultan Nazarbayev (c) with a group of prominent international economists and financiers during their meeting in Astana Nov. 20

“We have completed the first industrialisation stage, built enterprises, created new workplaces and accumulated experience. I think we have reached success in this respect. Currently, the programme has been revised and the second five-year plan will focus more on innovations,” the President noted, stressing the complexity of the world market system, which required coordinating approaches to domestic economic development.

An unfavourable external economic situation, aggravated by the confrontation between Russia and Western countries, required Kazakhstan to take preventive measures, enhance cooperation with foreign states and back Kazakh businesses abroad, he explained.

“My new state-of-the-nation address envisages allocation of big amounts of public funds to ensure economic growth and job creation. It will also strengthen the country’s financial system and contribute to further development of small- and medium-sized enterprises. In all these areas we have outlined action plans and allocated financial resources. Our steps are also receiving support from international financial institutions, with which Kazakhstan had reached agreements on cooperation. A one-time infusion of more than $20 billion into the economy of Kazakhstan, which has a relatively small population, will have a significant effect,” Nazarbayev said.

The President added that Kazakhstan concluded negotiations with the European Union on the draft agreement on enhanced partnership and cooperation and reached the final stage of accession to the World Trade Organisation (WTO).

“Starting next year, the [Eurasian] Economic Union (EEU) of Kazakhstan, Russia and Belarus will kick off. Our objective is exclusively pragmatic: Russia is our main partner and we have about 7,500 kilometres of common border, while Kazakhstan is located in the continent and has no outlet to the sea. Therefore, the Customs Union, which eliminated trade barriers among the member states, and the fact that our goods have unhindered access to foreign markets are of great importance to us,” he emphasised referring to the Customs Union, in existence since 2010, as a precursor to the EEU.

As 2014 is the final year of the first five years of (SPAIID), Chairman of the Kazakhstan Industry Development Institute Aidyn Kulseitov presented the achievements of industrial development.

He said that 70 percent of all foreign direct investment was attracted in the manufacturing sector, while the productivity of the manufacturing industry increased in real terms by 60 percent. He added that Kazakhstan also completed a mission to reduce energy consumption ahead of time.

“In respect of energy efficiency, we had an objective to achieve a reduction of 10 percent, and in 2013 compared with 2008, we observed a decrease of 18.6 percent. It means that we save annually about 16 million tonnes of oil,” Kulseitov stressed.

During the roundtable, international experts shared their opinions on the latest global economic developments and new trends in the policies of developed and developing countries, evaluated the results of the first stage of Kazakhstan’s industrialisation and its future prospects. They agreed with the head of state’s message on the complexities of the global market system and stressed the timeliness of the preventive measures announced in the address.

Klaus Mangold, independent member of the board of directors of Baiterek National Management Holding, stated his confidence in the ability of the state to find the right ways to respond to world economic challenges because Kazakhstan has the necessary experience and human resources, while the country’s location between such capacious markets as China and Russia presents great opportunities for future development.

Prime Minister Karim Massimov, Assistant to the President Yerbol Orynbaev, Minister for Investment and Development Asset Issekeshev, Chairman of the Board of Directors of Baiterek Kuandyk Bishimbayev and Aidyn Kulseitov also attended the meeting.