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Strategy «Kazakhstan 2030»
PROSPERITY, SECURITY AND EVER GROWING WELFARE OF ALL THE
KAZAKHSTANIS
WE ARE IN FOR A NEW CENTURY, NEW TIMES ARE COMING...
Virgil
EACH EPOCH SETS ITS OWN GOALS Heine
INTRODUCTION
NOTHING IS MORE REMOTE AS YESTERDAY, NOTHING IS MORE CLOSE THAN
TOMORROW Kazakh folk proverb
Dear fellow-citizens,
I appeal to you, the people
of Kazakhstan, to share my vision of the future of our society and the mission
of our state. I want to present to you a strategy which I am sure will help us
in gaining this future and accomplishing our mission. I wish to share my
considerations as to the future which looms far ahead in the next century, in
the new millenium, in the pretty remote perspective.
Time has come to
say once and for all what future we want to build for us and for our children.
What do we need it for? I believe, with each of us there has ripened a profound
awareness of the fact that one can no longer live for the day only, merely in an
incessant turmoil of settling present day tasks.
We must have a
clear-cut knowledge and understanding of what we mean to construct, what should
be the trajectory, the highway of our development which is to ensure our gaming
the objetives we've set. Through correct identification of our priorities, in
choosing relevant strategies, by manifesting our firm will and persistence in
following this path, we shall dispense with unnecessary off-tracking, with waste
of energy, time and resources. When provided with well-considered strategy and
firmness of purpose in accomplishing our goals, we shall be able to overcome any
serious obstacles blocking our way.
Hard conditions we have to tackle
with today must not deprive us of hope and enthusiasm. Clear awareness of our
prospects, honest presentation of eventual difficulties and privations empeding
our way will help in mobilizing the efforts of all the citizens of our society
for settling this task common to all. We must well remeber that apart from the
goals set for the period of today, our generation bears tremendous
responsibility to future generations, it is in fact responsibility of parents
and grandparents to their children and grandchildren.
What will our
children and grandchildren be - the way we want to see them in that remote
future - when they are our age? Will they be well-off, well-fed, healthy and
well-educated? Will they live in a prosperous and democratic society? Will they
live in peace? Will they feel safe, safe as to themselves and to their children?
Will they be able to feel safe walking along the streets, feel safe for their
property? Indeed, will they succeed to a strong state and to friendly relations
with their neighbours, whether remote or close? It is today that we must answer
these seemingly simple but pretty important questions. Once some man of wisdom
remarked that if one doesn't know his way, he may reach the goal following any
path. Having this in mind we must always have a clear-cut vision of the model of
the future presented both generally and as specific short-term objectives.
What's the wherefore of it? Taking some actions we shall permanently stick to a
certain standard to verify the way we follow, whether we make progress or move
off track, whether we outstrip the developments or lag behind them.
When mentally contrasting every passing day with the day to come, with
the process being repeated time and again, one comes to somewhat different
perception of the scope and import of problems set ahead. When we feel ourselves
a part of the world and of the planet at large, we can't help feeling the
nagging breath of the new epoch and new times drawing ever near. Kazakhstan, as
a new state, emerged in the world in the epoch which saw the end of many a
powerful empire: Ottoman one. Austrian-and-Hungarian one and, only recently, the
Soviet Union. Today we are building a new state, a new market economy and a new
democracy, and this - at the very time when many other independent states have
already trodden that path similar enough. Today we live in an epoch of ever
growing globalization and ever close interrelationships when powerful outer
forces would inevitably play a pretty substantial role in determining our
future. If we are serious and clever enough in our intentions, if we are capable
of honest analysis of both external and internal factors of our development,
then we do have a chance of choosing the right way: to identify priorities and
elaborate the relevant strategy on the basis of our general consolidation, on
the basis of our history and unique circumstances.
Sure enough, we may
and ought to study the experience of other countries and take advantage of
auspicious tendencies in the world community. Yet only we, none other than we,
are capable of coping with this enormous work which is indispensable for the
implementation of our dream of and hope for building the Kazakhstan, which our
children and grandchildren will be proud of when they are our age. Why is it
particularly today that we set this task? It is because we were not ready for
this yesterday, we were short of both experience and knowledge, we could hardly
afford it because of unfavourable circumstances and all sorts of instabilities.
And the task itself was quite different. The essence of the preceding period
consisted in eventual survival of an independent state in stormy conditions of
the budding transition period. Many prognosticated that we shall be a sheer
failure, that we shall not cope with unprecedentedly tremendous tasks of
building a state, that our social and economic transformations will collapse
altogether. Yet, even today, it is quite clear that we have withstood the first
trial with flying colours. Here we are - alive and kicking. Notwithstanding all
the obstacles we safely emerged from the abyss of chaos and disorder. At present
we pass over to the stage of stabilization. The fact that we have successfully
settled our most urgent and paramount problems gives us a chance of
retrospective analysis, of trustworthy evaluation of the way we've passed. From
now on we can afford facing the future, contemplating perspective development,
making elaborate plans. An experience in achieving our statehood, in
implementing political and economic reforms, knowledge about the world and the
laws that govern it, tolerance and understanding of the Kazakhstanis - all these
gains won in the most arduous conditions make us ever stronger and more
confident. Frankly speaking, we cannot afford putting off solution of this task
for tomorrow, we can't afford waiting for the completion of our reforms. In
other words it was too early yesterday but it might be too late tomorrow. A
well-considered strategic plan summons one's efforts, it makes one more
disciplined, enhances one's activity.
Such plan concentrates the
attention of the state on a pretty narrow range of priorities, thus urging the
Government to daily settle these tasks and strategies. Finally, it enhances
daily and annual activities which -in the long run--would bring us to scoring
our goals. Yet it is far from enough. Just as essential is to put these
guidelines into practice, to realize the plans we contemplate. That's why it is
utterly indispensable to set up a system in which each and every ministry and
department would organize its work in such a way that each day, month and year
could bring us ever nearer to the objectives we've set. Every day public
servants must have the awareness of the strategic goals and priorities, and
settle them without wasting their time in meddling with minor, daily chores. The
laws and decisions we adopt must be correlated with our strategy whereas the
work proper-be concentrated and purposeful. From the next year onwards our
annual plans must meet our long-term priorities. More than that: a system of
monitoring must answer the question - how far we have advanced in gaining the
objectives we've set. Which is why we need a system of strategic planning,
strategic control, accountability and responsibility. The main prerequisite for
our sustainable, steady progress is consolidation of our society in achieving
the goals we've set, unity of all the walks and groups of population as to the
strategy aimed at settling common problems. It will become well feasible if we
duly take into consideration needs of the society in general and various groups
of the population in particular, if we identify relevant priorities and ensure
realization thereof.
This should be done in an atmosphere of
cooperation between the state, particular groups of the population and the
private sector. This Message has been elaborated within the framework of my
Constitutional duty to address annually to the people of Kazakhstan concerning
basic trends in domestic and foreign policy. Yet, as I've mentioned above, our
state and the society at large need a more global vision and a strategy to be
guided by as a coordinate system which would enable us to draw up our annual
plans of actions. That is why these issues are given particular consideration in
the Message. Subsequent annual Messages of the President to the people of
Kazakhstan devoted to major trends in the domestic and foreign policy will
contain evaluation of implementation of the long-term strategy. Along with this
they will identify specific objectives for the year to come.
1. WHAT ARE OUR WHEREABOUTS FOR TODAY?
THERE OCCURS A MOMENT OF HIGH TIDE IN A MAN'S LIFE WHICH
BRINGS LUCK IF ONE AVAILS OF IT. BUT IF ONE MISSES IT, HE WILL HAPPEN TO
FOLLOW A WAY OF SHALLOW WATERS AND DISASTER. Shakespeare
BRIGHT
OPPORTUNITIES COME TO ALL BUT ALL TOO MANY DON'T EVEN SUSPECT THAT HAVE
ENCOUNTERED THEM. Dunning
All along the latest six years we were involved in pursuing two major
strategic goals.
First, Kazakhstan became a sovereign independent state. Today many take the fact
for granted but the Kazakhstanis must have remembered that it was a fairly rare
occurrence in our history.
Second, we have embarked on the way of
implementing broad-scale social, political and economic transformations. The
said goals are not yet scored though some areas clearly manifest tangible
results.
Now, it is important to give this situation a profound
consideration, to analyse our development from the point of view of world
expertise and - consequently - to compare the progress of our transformations
and that of forming our new institutions with the best world experience. Just as
essential for us is to analyse our advantages and flaws.
Such work
would serve an indispensable prelude to elaborating our own strategy. I'd like
to start from analysing our domestic advantages and external opportunities which
Kazakhstan enjoys as well as our weakest points and troubles we anticipate from
without. As a matter of fact, our country may be proud of eight advantages.
First, we've laid the foundation of our independent sovereign state. We
have already set up all the requisite state institutions and each passing month
brings ever greater experience and knowledge. Yet development of our state is
far from completion.
Second, we have parted with our former political
and economic system for good and all. I mean the system that for seventy years
dominated our lives. Today we have an altogether new state, and an utterly
different political and economic system is at work now.
Third, under
the influence of transformations unfolding in our society we all, though wholly
unawares, have changed dramatically, while getting used to a qualitatively
different system of values and to an altogether new standard of human relations.
In short, we have become free. State-and-collective world outlook was replaced
by a private-and-individual one and the event reversed each and every aspect of
our life.
Sure enough, the discarded system offered more secure minimum
social benefits and was a success in a number of fields. However, we must
remember that this system fell apart because it proved to be noncompetitive from
the economic point of view. It obviously failed on the social level too because
living standards of the most people lagged behind those abroad. Likewise it
meant frustration with reference to a man as a personality who was denied basic
freedoms. With time our own experience is sure to prove that free market economy
and democratically elected government are capable of bringing prosperity and
freedom to Kazakhstan. During the transition period our citizens have suffered
much and sacrificed just as much. Yet, we do all this not only for our own
benefit but for the benefit of our children and grandchildren, first and
foremost.
Fourth, one of our basic assets is undoubtedly quality of our
population, that is of our human resources. By right, we may be proud of a
highly educated population with a pretty high standard of scientific and
creative potential. Few countries can boast of it and many strive to achieve
such standard as one of their strategic goals. This indeed is a tremendous
achievement of our people... and of the former system for that matter. We must
do our utmost to further develop this invaluable asset of ours and grant it ever
new, ever civilized opportunities of development.
Fifth, our natural
resources are an enormous wealth. Yet, paradoxical as it is, the world
experience testifies to the fact that many a country possessing substantial
natural resources failed to dispose of them in the best possible way and -
consequently - to this day they rate as poor. East-Asian countries marked with
most effective and dynamic development happened to be the countries which could
hardly boast of natural resources. All this is but to emphasize the fact that
actually paramount factors are people themselves, their willpower, energy,
persistence and knowledge. In fact, it is the very "key of gold" that would
enable us open the door to welfare and independence.
However, a
negative world experience is also a good teacher. It shows quite unequivocally
that absence of strategies or that of the ability of realization thereof
outweighs the notorious potential of natural resources. Hence-the major
conclusion we have to make-we have to work out a well-considered strategy and to
persistently put it into practice in defiance of all the difficulties. The
wealth of the entrails of the earth is the property of all subsequent
generations. However the circumstance must not lull us to relaxation. On the
contrary, all of us, the Government included, must live and work as though we
never possessed it.
Sixth, a truly omnipotent factor represented by our
vast land areas, our arable lands. We have many parameters in common with Canada
and Australia save for one though capital index-the level of their
effectiveness, productivity and exporting potential. Here again, the main, the
essential is a realistic and effective strategy, people and financial assets.
The seventh advantage consists in our political stability and in unity
of our society. We are by right proud of the fact that we managed to escape
direct confrontation within the society and stabilize the situation.
Unfortunately many a developed and post-Communist country failed to gain the
same.
However, so far there is a long way to go to gain the overall
stability, the more so-consolidation and unity, and we have to do much for us to
feel a single family, to know our objectives and to gain coordination in
advancing thereto. Yet, the aim is not equality in poverty and misery, in
constructing a new system of egalitarianism.
Naturally, it is out of
the question that some ethnic or religious groups be granted any priorities
against the other ones. Our strategic objective is a unity of multiform groups
of the population, reasonable combination of personal and social fundamentals
which add substantially to consensus and hierarchic traditions of our society. A
society in which a dramatically huge gap separates a small group of the rich
from masses of poor people will never survive and is doomed to misery. Just as
equally there is no future for the country in which various ethnic and religious
groups exercise different rights, in which some groups are granted all sorts of
benefits and opportunities whereas the others are denied same, where political
parties and movements tear the society apart, where there exists enormous
unbalance between freedom and responsibilities of mass media, between liberalism
and democracy and the might of the state. We have already suffered from one
extreme, God beware us of running to another. I think that awareness of these
sensible things has already fixed up in social consciousness.
Eight,
I'd like to put particular emphasis on tolerance and patience of the
Kazakhstanis, on their cordiality and affability. It is witnessed by all
foreigners. I am only too grateful to my country-men for their enduring all the
hardships and privations of the transition period with such understanding and
patience and I deem these qualities to be a serious pledge of our success, of
the consolidation of the society, of attracting foreign investments and
involvement of the world community in settling our problems.
Along with
all these advantages, we can enjoy quite a number of opportunities of purely
external nature. The opportunities of that sort are determined, first and
foremost, by the geographical, geopolitical and economic position of the
country. It is worth while to distinguish three basic opportunities for
Kazakhstan. The first opportunity stems from our geographical position on the
very crossroads in the Eurasian region.
The process of globalization of
international economic and political processes makes this factor a paramount
one. Being a member of the single family of Turkic peoples, our forefathers used
this important strategic factor to advantage: all along the legendary Silk Route
they set up a broad channel of trade between European and Asian countries.
Today we initiate its restoration in cooperation with other countries
pertaining to our region and substantiated by support extended by the world
community. It goes without saying, that in future the system of trade, financial
flows and migration of people between Europe and Asia would be on the rise.
Actually it is the very reason, apart from politically stabilizing factors,
which prompted me to advance and to further develop the idea of Eurasianism,
which has, I am sure, a bright strategic future. Single-handed, Kazakhstan, as
any other contiguous country, is unable to realize its profitable transit
potential. It must be done jointly, in close and mutually advantageous
cooperation.
Situated on such cross-roads we do afford a tremendous
potential of major marketing areas for our produce all along the perimeter of
our borders. Neighbouring markets embracing about 2,000,000,000 people are
capable of absorbing- with a rare exception-any Kazakhstani product, provided,
naturally, that it is competible and there is a network of related transport
routes. These neighbours, more particularly Russia, China, a group of Islamic
and Central Asian states, countries of the Near and Middle East, historically
represent important world centres.
Establishing peace and
good-neighbourly relations of confidence on the whole of the Eurasian continent
is an indispensable prerequisite for successful development. Countries involved
in wars, rivalry, competition and confrontation would impermissibly waste their
resources, time and energy thus being doomed to stagnation and lagging behind.
Second, support lent on the part of foreign states and donor agencies
to substantiate laborious processes of state construction and implementation of
reforms offers us additional opportunities. When compared, quite a number of
countries are less fortunate than ours. This factor, more particularly, at the
initial stage of the transition period is very important for us because we do
need financial assets and knowledge from without.
Third, the process of
globalization and scientific and technical progress, especially in the
development of new informational and telecommunication technologies, offers
unique opportunities for such vast and thinly populated country as ours. Yet
nothing guarantees that we shall keep abreast with these processes rather than
lag behind them.
Consequently, it is utterly indispensable to
understand these technologies, to succeed in complete integration thereof in our
society and to support scientific and technological personnel. When speaking
about negative features of our present-day reality, one should make note of the
fact that many of our weak points are of temporary and transitory nature, rather
they result from Soviet legacy and hardships of the arduous transition period.
First, our mentality is shaped up by several generations of people who
were brought up in the spirit of Communist principles. Some people
enthusiastically took advantage of recent changes, but quite many didn't. People
are influenced by subjective and objective factors, they are slow to adapting
themselves to eventual changes. As of old, they are waiting for assistance to be
rendered on the part of the state in solving their problems.
Such
philosophy and outlook prevent them from coping with the new difficulties, they
deprive them of energy and wish to undertake actions on their own. It is but an
open secret that many officials do not understand as yet that today the role of
the state doesn't consist in taking decisions which should be taken by people
themselves. On the contrary, it must consist primarily in shaping up conditions
in which free citizens and the private sector will be able to take effective
measures in support of their families and themselves.
We must be
patient in our transforming mass consciousness. In this we must seek support in
the younger generation which is more flexible in adapting to the new system of
values and has a fresh vision of the future. In fact the state is unable to
reverse established human mentality overnight. However, the state is capable of
accelerating the process of changes through elucidation of objective trends,
through bringing home essential information and-most importantly-by way of
implementing social and economic policie aimed at self-sufficiency. It would
take decades until a new world outlook comes into existence with us.
Second. Objectively, realization of economic reforms, disintegration of
the USSR and integration of Kazakhstani economy in the system of world economic
relations couldn't help resulting in substantial downfall in volumes of
production and- consequently-in deterioration of overall social situation. A
good portion of technologically outdated and power-consuming industries, poorly
trained, hardly coping with new conditions economic management-such are basic
factors that brought about non-competitiveness, shut-down of numerous
enterprises, losses in traditional marketing areas, nonpayments and production
downfalls. As consequence within the last eight years our country suffered from
a more than two-fold decline in the level of production while budget receipts
suffered ever greater reduction. If we remember that the said downfall coincided
in time with high rates of economic growth in many developing countries, then
the implication is that in relative terms our economy suffers from a more than
three-fold lagging behind. It is only natural that such figures make us act as
effectively and energetically as ever.
Third. As a result of the economic downfall we witness obvious deterioration in
incomes and in living standards of most our citizens. Elimination of
egalitarianism and creation of an actively functioning labour market resulted in
an ever growing gap between the rich and the poor. Unfortunately, the section of
the middle class-major support of the state and basic stabilization factor of
the society-is quite insignificant.
Fourth. National savings and
accumulation of capital which must act as a motive force in the economy proceed
rather slowly. Consequently, short of internal capital and savings, Kazakhstan
became ever more dependent on the foreign capital, both on the private one and
on the international financial agencies. Further rehabilitation of the economy
depends on a massive influx of investments which is possible only on condition
of eventual improvement in the investment climate.
Fifth, painful
transition from the command-and-administrative economy to the market one has
given birth to most acute problems of poverty and unemployment hitherto unknown
to us on such a wide range. They pave the way for crime and narcomania, they
give rise to social depression and build up a potential for social instability.
Quite tangible unemployment combined with delayed payments of pensions and wages
is generated mostly by economic problems, shortage of financial capital and
strategies inefficient in their solutions. Lack of effective programmes for
reforming agrarian and social sectors (health care, education, science, etc.)
and reduction of budget allocations in crucial conditions of the transition
period has brought about deterioration and stagnation in these vital areas of
our society. All these processes naturally generate the sixth weak point of
ours-demographic depopulation which is fairly dangerous in any of its
manifestations.
For the first ever time, over the last 50 post-war
years, starting from 1992, we witness a decrease in our population. Just as
negative is the seventh aspect-a poorly prepared and inefficiently organized
state. Yet, we can't regard it as a purely Kazakhstani feature. In fact, all
post-colonial, developing and post-Communist countries had to counter that
phenomenon. Today solution of many a problem depends on this factor and it would
take quite a time to cope with it. So far, we are miserably short of people
capable of settling strategic problems, of doing it honestly, with a sense of
patriotism and on a high professional level.
Long-standing habits of
petty interference with all the affairs, altogether unnecessary and harmful halo
of secrecy prompting concealment of information from the society and even from
each other, bureaucracy and localistic tendencies, nepotism and clannishness,
collective irresponsibility, dullness and inertia, inadequate multi-stage
hierarchies, corruption - this is but a far from complete "bunch of virtues" of
our bureaucracy brought up by the former regime and coming to the fore in the
last years to acquire overt, undisguised forms. Another aspect of the problem is
surely a painfully low quality of our corps of enterprise managers. Much has
been done though to address the situation, and every now and then we had to
resort to a sort of an administrative surgery.
But one thing is obvious
- this problem is one of the first priorities. As the Head of State I must say
the following: we thought it reasonable to spare a certain time for our
officials to adapt to the situation and we did it. By now this term has already
expired and we cannot afford being kind-hearted at the expense of other people,
endangering the destiny of the country. Besides it does affect development of
the country. We have to most seriously undermine this potential for reproduction
of pernicious habits and step up capital reforms among the government staff and
that of civil servants.
Finally, we must pay most serious attention to
the incompleteness and instability of our legislation. It is not enough to build
a foundation-it must be substantiated with floors, walls, roof and all. This is
a fairly important issue whose solution determines improvement of the investment
climate, reduction of poverty, elimination of crime and development of our
social sphere. I enumerated these negative factors along with the positive ones
in order to outline the tasks we'll have to tackle when implementing our
national strategy. In identifying advantages and opportunities as well as weak
points and potential troubles threatening our country, one has to bear in mind
that they are dynamic in time and dialectically interrelated. An opportunity may
turn into a trouble and vice versa. What is an advantage today might transform
itself into a flaw and vice versa. Just how effectively we succeed in availing
of the opportunities and in neutralizing troubles, in raising our assets and
lowering our liabilities-all these depend on ourselves, on this specific way in
which we set our goals and priorities, on timeliness and flexibility in
implementation thereof.
2. KAZAKHSTAN'S MISSION
GIVE SOME THOUGHT TO WHAT LIES AHEAD AND CHOOSING A GOOD
AIM PURSUE IT TO THE END Firdusi
WHEN A SHIP HAS NO KNOWLEDGE
WHAT PORT IT IS BOUND FOR, NO WIND WILL BE FAIR Seneca
Today we are on the threshold of great opportunities. Many of you know that
some of the poorest countries in Asia extricated themselves of poverty within
some thirty years to turn into prosperous industrial states. Korea, Taiwan and
Singapore were pioneers, so say, followed by Malaysia, Indonesia and Thailand.
Our great neighbour, China, demonstrates amazing rates of growth. Likewise
manifesting their power and abilities are India and Brazil. We are full of hope
and confidence that friendly Russia too would soon acquire a new image of a
great country.
Forty years ago when Singapore gained its independence,
it was one of the poorest countries in the world with an annual per capita
income less than 0. Today the per capita income of Singaporeans exceeds ,000.
Malaysia, a country similar to ours with respect to the population, ethnic
composition and many other parameters, gained a 10-fold rise in living standards
of its citizens within less than twenty years. Such staggering achievements made
these countries world famous assigning them the name of Asian Tigers. Are there
any obstacles which might prevent Kazakhstan availing of fine opportunities from
scoring the same success? None whatsoever.
'I, for my part, am sure
that by the year of 2030 Kazakhstan would have become a Central-Asian Snow
Leopard and would serve a fine example to be followed by other developing
countries. Tigers are not found in Kazakhstan while the Show Leopard inhabiting
our mountains is but a stranger in the wold community. Though a relation to the
Tiger in the animal kingdom, Snow Leopard bears some substantial distinctions
therefrom. It will be virtually a Kazakhstani Snow Leopard with inherent
elitarianism, sense of independence, intelligence, courage and nobleness,
bravery and cunning. It will never be the first to attack anyone, ever prone to
avoiding direct clashes.
However, any time when his freedom, habitation
or descendants come to be threatened, the animal would defend them with all its
might. The animal must be wiry and springy, it must not suffer from obesity and
laziness for otherwise it would hardly survive in severe environment. He will be
persistent and stubborn in mastering ever new peaks, in its indefatigable search
for secret but sure paths that lead to the goal. He will neither be frightened
by severe cold of threats nor made soft in intolerable heat of opportunities. He
will exercise fine wisdom in bringing up its descendants: he would protect them
against unwelcome visitor, he would share most tasty morcels with them attending
to their health, education and world outlook thus preparing them for an early
life of their own in conditions of ruthless competition in any environment. He
would keep vigilant watch so that the water he drinks be pure and the
environment he inhabits and the air he breathes be clear and healthy.
Kazakhstani Snow Leopard would also possess western elegance multiplied
by the advanced level of development, oriental wisdom and endurance. He will be
all at one in his strivings, victories and failures with his brothers brought up
by a single mother, i. e. by Uzbek, Kyrghyz and other Central Asian Snow
Leopards. He will be ever proud of their progress and achievements. But such
Kazakhstan of 2030 will not shape up all by itself. We shall build it proceeding
from our intentions and our will to succeed. If we don't avail of this
opportunity, if we waste days and weeks without making plans for the future,
without thinking of the future nor taking specific actions today, then we shall
blame none but ourselves if we are a failure.
Nothing comes easily and
at once. Objectively inherent to a successful and stable development are certain
stages which defy overskipping at one stroke. We shall be unable to build a
powerful state and its armed forces, to solve demographic, ecological and social
problems, to raise the living standards of each and every person if Kazakhstan
fails in shaping up a healthy, prosperous economy. In its turn, achieving high
rates of economic growth demands political stability, energetic and purposeful
reforms. This would require a highly professional, intelligent, courageous and
patriotically minded Government capable of pursuing the right policy, of
overcoming resistence offered by the old and the discarded, of inspiring the
doubtful.
Success of these enormous efforts depends on the support
extended by the Kazakhstani citizens. Yet it would be extended when people
witness real improvement and justice. That's why ever growing well-being of
people must be the basis of our everyday activities whereas our combatting
corruption must be resolute and uncompromising. To build such future and not to
go astray, we must have a clear vision of what we actually want. That's why when
speaking about a long-term period, I, as the Head of State suggest the following
as the mission of our country: to build an independent, prosperous and
politically stable Kazakhstan with its inherent national unity, social justice
and economic well-being of the entire population.
Prosperity, security
and raising the living standards of all the Kazakhstanis-such are key words to
characterize Kazakhstan we all want to build. In process of our advancement into
the XXIst century they must remain our guides. What is Kazakhstan of 2030 the
way I visualize it? Our young state would grow up and reach its manhood and with
it our children and grandchildren would also become grown up people.
They would be responsible and enthusiastic representatives of their
generation, would be in the prime of their life. They would be well-educated and
healthy. They would be prepared to work in conditions of modern market economy
sticking though to the traditions of their forefathers. They would have an
equally good command of the Kazakh, Russian and English languages. They would be
patriots of their peaceful, prosperous, rapidly growing country well-known and
respected all over world. Our children would become highly skilled workers and
farmers, engineers, bankers, men-of-arts, owners of shops, teachers and doctors,
owners of plants and factories, stock brokers and sportsmen. They would produce
oil, gas, electric power, manufacture various food items and supply all these to
the world economy. Some of the Kazakhstanis would become producers of hightech
commodities and such other items of produce, all - in demand on the world market
owing to low price and excellent quality.
Certain representatives of our younger generation would become civil servants.
Working in conditions of a new epoch they would be well-paid, professionally
trained experts who would rate interests of Kazakhstan and the Kazakhstanis
superior to their own ones. Citizens living in the year of 2030 would be sure
that the state would protect their rights and uphold their interests. More than
that: they would know that the state would take care of the few who - by virtue
of some unfavourable circumstances-failed to win a proper place in the sun and
had to appeal to the state for social aid. Kazakhstan of 2030 must be a clean
and green country with clear air and pure waters. Industrial waste and radiation
would no longer enter its homes and gardens. Our children and children of our
children would live a full value life in healthy conditions. In the year of 2030
our descendants would live in a country which would no longer stay in the
background of world developments. The Kazakhstan of theirs, being the centre of
Eurasia, would play the part of a connecting link between the three rapidly
growing regions - China, Russia and the Moslem world.
It would be
inhabited by representatives of numerous nationalities sure of equal
opportunities enjoyed by all the nations but deeming themselves to be citizens
of Kazakhstan, first and foremost. I am afraid though that Kazakhstan of 2030
would not as yet be an epitome of perfection. It would not be the richest, the
most educated, the most advanced country in the world but, nevertheless, it
would be a country that has covered a long way with flying colours and is now
entering the future with firm confident steps.
Sure enough all this is
but a vision of the future, a model thereof, an ideal objective and a dream.
Obviously many of you would just give a bitter chuckle, they would think it a
sheer Utopia comparing this ideal picture with the present day reality when
people are short of basic things. No, it is not so. My vision is quite
attainable and the world experience supports feasibility of such plans. Yes,
today many of us have it very hard. But when was it easy? Was it easy with our
fathers and grandfathers all along this century, say, in the years of the Civil
war, at times of famine and starvation, at those of mass repressions, in the
years of the Great Patriotic war and in conditions of the post-war devastation?
I don't think people had it easy in either the last or prelast century.
Naturally now it is but a mere history. Yet even today each year our
planet as a witness to 800,000,000 of those who starve or can't get enough to
eat, many hundreds of millions of people have no roof over their heads. Millions
perish in murderous wars. Why then some of us sigh and moan wasting their
precious energy to empty battles and grumbling? I don't believe that we have
such a short memory not to remember that whatever the trials we always came out
victorious owing to our consolidation, enthusiasm and faith in the future. We
worked several days on end, starved ourselves giving all to children and were
dead sure that they will have a better lot. What prevents us from doing it today
and tomorrow? Why are we so despondent and losing heart?! And this - at the time
when such bright vistas open to the country and to each of us.
Bright
vistas and vast opportunities whose main medium is freedom- the very thing we
couldn't afford before. All depends on ourselves only, on our faith. And
enthusiasm. Cohesion and labour. "Don't ask what country can do for you, you'd
better ask what you can do for the country". These words uttered by John Kennedy
in his appeal to the American people sound today as topical as ever.
3. LONG-TERM PRIORITIES AND STRATEGIES OF REALIZATION
THEREOF
THE MAIN THING IN THE WORLD OF OURS IS NOT WHERE WE STAND
BUT RATHER IN WHAT DIRECTION WE ADVANCE Holmes
For our country to achieve the prospects I mentioned above we have to
implement the following long-term priorities:
1. NATIONAL SECURITY:
Ensure development of Kazakhstan as an independent sovereign state preserving
its complete territorial integrity.
2. DOMESTIC POLITICAL STABILITY AND
CONSOLIDATION OF THE SOCIETY: Safeguard and strengthen domestic political
stability and national unity. It would enable Kazakhstan put the national
strategy into practice in the course of the current and the upcoming decade.
3. ECONOMIC GROWTH BASED ON AN OPEN MARKET ECONOMY WITH HIGH LEVEL OF
FOREIGN INVESTMENTS AND INTERNAL SAVINGS. Gain realistic, stable and steadily
growing rates of economic growth.
4. HEALTH, EDUCATION AND WELL-BEING
OF KA2AKHSTANI CITIZENS: Consistently improve standards of life, health,
education and opportunities of the Kazakhstanis. Improve natural enviroment in
the country.
5. POWER RESOURCES: Effectively utilize power resources of
Kazakhstan through rapid increase in extracting and exporting oil and gas with
the aim of gaining revenues which would enhance stable economic growth and
improvement of living standards of the people.
6. INFRACTRUCTURE, MORE
PARTICULARLY TRANSPORT AND COMMUNICATION: Develop these key sectors in such a
way that they add to strengthening of national security, political stability and
economic growth.
7. PROFESSIONAL STATE: Establish an effective and
up-to-date corps of civil servants and state-owned formations of Kazakhstan
loyal to the cause they serve to and capable of acting as representatives of the
people in achieving our priorities. For each of' these long-term priorities we
must elaborate and consistently implement a special strategy concentrating our
efforts on specific actions outlined in one-year, three-year and, finally,
five-year plans. These long-term priorities must serve the purpose of focusing
the efforts exerted by both the state and our citizens, they must make the basis
of criteria in forming the budget of the country and personnel policy.
LONG-TERM PRIORITY 1: NATIONAL SECURITY
EXTRA CAUTION PREVENTS EXTRA DISASTER Popular wisdom
The entire historic experience in developing human civilization testifies to
the fact that the first and foremost of all the prerequisite conditions which
determines consistent and sustainable growth of the state is security of its
nation and preservation of statehood.
It is not enough to gain freedom
and independence, one should uphold and strengthen them and pass over to our
descendants. Future generations would forgive us all those hardships, privations
and problems that fell to our lot and the fact that we failed in overcoming
them.
But we shall vainly await forgiveness if we lose our statehood,
if we waive strategic fundamentals of sovereignty, our lands and resources. It
is only natural that this logic in the vision of the perspective must be
permanent in time whatever the internal and external circumstances as for the
strategic course of Kazakhstan policy for a long-term period. In fact it is the
topmost strategic priority in Kazakhstan's development up to 2030.
Priority status of security is obvious: if the country fails to
survive, to preserve its security, we shall hardly be able to speak of the plans
of sustained development. A retrospective look at the conception and subsequent
development of the state of our forefathers graphically substantiates the fact
that they waged a historically difficult and tough struggle for the benefit of
their descendants and for the preservation of their statehood. And the necessity
of incessant search for the solution of this strategic goal urges us to
undertake a well-considered and adequate evaluation of the present day situation
in the parity of geostrategic forces and trends in the changes thereof.
We understand only too well that all possible potential troubles
threatening national security of Kazakhstan at present and in the nearest future
do not imply and will never imply a direct military invasion or a threat to the
territorial integrity of the state. It is perfectly clear that neither Russia,
nor China, nor the West, nor any Moslem country has any impelling motive to
attack us. And this relatively predictable state of calm and stability must be
made use of to effectively strengthen economic potential of Kazakhstan which
would serve the basis for our building a reliable system of national security.
To ensure our independence and territorial integrity, we .must be a
strong state and maintain friendly relations with our neighbours, which is why
we shall develop and consolidate relations of confidence and equality with our
closest and historically equal neighbour - Russia. Likewise we shall develop
just as confident and good-neighbourly relations with the PRC on a mutually
advantageous basis. Kazakhstan welcomes the policy pursued by China for it is
aimed against hegemonism and favours frienship with neighbouring countres.
Just as actively we shall consolidate our links and integration
processes with Central-Asian states. No less active should be the level of
strengthening reations with the countries of the Near and Middle East.
The second component of our strategy consists in strengthening
relations with major industrial democratic states including the United States of
America. By and by these countries come to the awareness of the fact that
emergence of an independent prosperous Kazakhstan meets their national
interests.
Third, in every possible way we shall use the assistance and
promotion granted by such international institutions and forums as the UNO, the
IMF, the World Bank, the Asian, European and Islamic banks of development as it
will secure support extended to Kazakhstan on the part of the world community.
The fourth element of our strategy consists in developing rich natural
resources which may serve a reliable basis for the protection of national
sovereignity and territorial integrity.
Fifth-with all Kazakhstani
citizens we must develop a strong sense of patriotism and love to their country.
Long-standing firm links between the people and the state have become rather lax
while the new ones i.e. those between personal and national interests have not
yet established.
Fortunately, there appeared an understanding of
commonness of interests of the people and the state. I have no doubt that such
awareness would strengthen as living standards of people would experience
improvement. In its turn it would enhance perception of such seemingly simple
wisdom as, say, this: welfare of every citizen depends on sovereignty and
security of the state he lives in.
Once our collective security is
ensured, each and every would gain far more than when only one's personal
interests are met, with the security of the society balancing on the brink of
its being lost altogether. However lucky is a man, all the same he is
defenceless if his country is in danger. It is the representatives of the
domestic capital that must be particularly conscious of it thus demonstrating
superiority of public interests as against private ones.
Yes, we must
display to the world at large our unity, will to independence, civic motivation
and patriotism so that any powerful country harbouring evil intents against us
be already in the know that any attempts of using force or threats to use force
would face tough resistance. Without clear-cut citizenship stand it would be too
hard to implement other elements of the strategy whose aim is securing
independence. As regards our defence policy, it must be clear to all that we are
a peace-loving nation and lay no claims to anyone's lands, resources or wealth.
As to lands and resources, we have all these in abundance, and as to the wealth
we shall make it with our own hands.
We, for our part, shall expect
adequate attitude to Kazakhstan, the one we exercise to other countries and
shall be ready to react adequately. In our epoch, as the world abandons military
confrontations, rivalry is being transferred from the military area to those of
politics and economy.
We do hope that this trend would become
predominant and shall do our utmost to enhance establishment of peace and
good-neighbouriiness. Yet we must be well aware that Kazakhstan's consistent
integration - in the course of its economic growth - in the world economy may
willy-nilly involve the country in an unpredictable vortex of various regional
conflicts of military, political, economic and confessional nature. That's why
absolute priority in security belongs to our foreign political activity and to
the formation of a close network of Kazakhstan's mutually-advantageous relations
with its neighbours and leading countries of the world.
Even today, in the end of the XXth century, after our learning the lessons of
the World War II and the cold war, we have not yet parted with the threat of the
world being split up into blocks and alliences. However such way is unacceptable
to Kazakhstan which ensues from our five-element strategy.
Ethnic
composition of our country is too motley, our interests are too important and
the prospects-too bright for us to afford dependence on the relations with some
certain country or reliance thereon. Kazakhstani people and Kazakhstani
government must exert every effort to shaping up an economic field tolerable and
liberal for major transnational capital, they must encourage creation of "warm
climate" for long-term investments in the country.
We must become
extremely tough opponents of any military settlement in conflicts, we must
advocate the principle of ..better a bad peace than a good quarrel". The best
weapon of ours to ensure protection of national interests and parity of forces -
for the nearest and remote perspective - must be conducting a policy of
integration, primarily-consolidation of the Central-Asian Union among
Kazakhstan, Kyrghyzstan and Uzbekistan, non-interference in affairs of other
states, predominance of acts of consensus rather than confrontation.
Though we sincerely hope that the world has become conscious of utter
uselessness of armed conflicts, let's not forget that any reasonable state
relies not only on promises of other governments but also on the might of its
own country. That's why there must be no doubt that we shall attach high
priority to the construction and modernization of our Armed Forces, to improving
the level of their occupational training, their combat readiness and equipping
thereof with modern armaments. In order to build an up-to-date effective army,
air force and naval forces of the Republic of Kazakhstan we have to strengthen
their equipment and personnel and intensify the latter's training. It would
continuously claim economical and effective spending of budgetary funds which we
allocate and shall go on allocating for our Armed Forces.
Besides, our
country would make use of the military assistance and would co-operate with its
neighbours in sharing the burden of regional defence. As regards issues of
security and integrity we must always be on the alert. Our affability and
hospitality which we display and shall display should not be taken for
open-heartedness and obedience. Rated among leading priorities of national
security must be a forceful demographic and migration policy. If our government
bodies treat this issue indifferently, then on the threshold of the XXIst
century we shall follow Russia into the situation of a "demographic cross" when
the size of the population would go down but this time - not only because of
external migration processes but also in a natural way. This trend has to be
stopped immediately.
LONG-TERM PRIORITY 2: DOMESTIC POLITICAL STABILITY
AND CONSOLIDATION OF SOCIETY
NOTHING WOULD COME OF THE AFFAIR WITHOUT UNITY
Tole-bi
Peace maintained with neghbours represents an issue of paramount importance
but it would not be settled if the country is torn apart by internal discord. If
various groups, irrespective of the thing which unites them, be it political
ideology or religious, ethnic or class interests, are in a state of
confrontation, it would result in a dangerous situation when people would be
distracted from the goal of achieving general welfare, from realization of the
national interests. Here it doesn't go about a state of direct confrontation or
war.
Northern Ireland, former Yugoslavia, Peru, Afghanistan, Cambodia
and Rwanda - these and other countries came to be a proof of the fact that not a
single civilization, not a single culture is insured against fatal consequences
of dissociation.
Our mission consists in destroying the old and
preventing the appearance of the new barriers which create obstacles on the way
to unity regardless of what these barriers are based on-be it habits, affections
or particular interests, prejudiced attitude, religion, age community or such
other factors.
Through inhancing all possible forms of a dialogue as
well as by consolidating mutual links and relations among people, gradually,
step by step, we shall deepen our national solidarity and build our national
potential. Our strategy for gaining this priority constituting the society
includes the following components:
- guarantee developing our own
uniform civic motivation based on equality of opportunities for all the citizens
of our country;
- ensure eventual elimination of causes for ethnic
differences and mind that all ethnic groups have equal rights;
- narrow
the gap between the wealthy and the poor in our society and pay particular
attention to the problems of the country-side;
- steadfastly settle
social problems which arise in the course of the transition and subsequent,
periods;
- be more vigorous in building a reach Kazakhstan which would
ensure both political stability and consolidation of the society in a long-term
perspective;
- develop all forms of communication among people; -
strengthen mutual respect, tolerance and relations of confidence between various
confessions.
Today it is not everybody that can answer a seemingly
simple question: "Who are we - the Kazakhstanis?". Settlement of the problem of
self-identification would take certain time and require a certain level of
historic development.
For over 70 years Communist regime failed to form
a united Soviet people. Many a post-colonial multinational country, even after
the expiration of several decades, failed in completing this process.
Several decades would elapse before this feeling takes shape and gets
firmly established with us. Yet even today we can name a number of factors which
unite us. It is our land in its borders, our parents who cultivated it, it is
our common history in which we jointly suffered from bitter failures and shared
the delight of achivements. It is our children who are destinied to jointly live
and work on this land. And each of us is at one in the awareness of his duty to
his parents, in his striving to make life of our children ever better tomorrow.
Today it is a real platform for unity and consolidation in the name of
these specific objectives. During the first years of independence and reforms we
did our best to rapidly depart from Communist-collective elements toward private
and individual ones.
Rapid development of individualism based on
private ownership not only promoted replacement of value reference points but
also undermined indepth roots of inter-ethnic contradictions, it rapidly brought
their potential down. Chauvinism and nationalism however are not yet forgotten
for good and all.
Efforts to stir up these sentiments do not arouse the
least interest with the population, rather the reverse: they only irritate
people. Suffering rapid decline is russophobia, and regeneration of the Kazakh
traditions and the language is perceived as quite natural. Unlike that of
previous years, the society became more calm and constructive, it came to
discuss ethnic problems with greater mutual understanding and openness.
Our movement to the market which is both cosmopolitan and international
brings jts beneficial fruit - it relaxes inter-ethnic contradictions. However,
even a free market without an adequate role played by the state is not free from
flaws.
Like a pendulum, after gathering speed in transition from one
system of values to another, it seems to have missed the point of equilibrium
which we need so badly. Today we witness new poles of confrontation: between the
poor and the wealthy, the rulers and the ruled, the country-side and the city.
The society is fully aware that the above gap exceeds the admissible limits. If
Kazakhstan is a state of a thin layer of the well-off, then, by virtue of too
low vitality, instability both within and without, it will be doomed to
vegetative existence at best. We have already been a state of the poor though
not in its pure form.
First and foremost, the state must represent the
interests of the middle class-farmers, "white" and "blue" collars,
intelligentsia, petty bourgeoisie. Incidentally, these were the very groups that
were so fiercely attacked by the Bolsheviks. They knew only too well where to
deal the main blow to make a transition from capitalism to Communism.
They delivered mortal blows against the bulwark of the capitalist
state. Just remember how persistently we were instilled hostile attitude to
kulaks, to "rotten intelligentsia", labour aristocracy and petty shopkeepers.
Doesn't this enmity persist to this day? Domestic political stability and
development would rest on all the three classes: the rich, the middle and the
poor. The society needs all of them, though naturally -'in a normal civilized
proportion.
Polarization acquired a graphic manifestation in the
relations established between the city and the countryside. In both cases we
witness a global process of social differentiation with the gap therebetween
growing steadily. Within the nearest decade the country-side must become a
priority area from the point of view of giving an additional impetus to market
transformations, to emphatic settlement of social problems and defelopment of
infrastructure. We are to expect considerable rejection of a free labour force
in the country-side, significant migration to the city from the country-side and
ever developing processes of urbanization.
The country-side of today has become an epitome of major social problems:
nonpayment of wages and pensions, backwardness, poverty and unemployment, poor
ecology, poor infrastructure, education and health care. Meanwhile the
country-side manifests the highest demographic potential. Badly needed resources
laboriously "collected" at the central level don't reach the country-side
accumulating in the city. We must do away with such practices. In the shortest
possible time we must complete all transformations in the country-side
substantiating them with a vigorous emphatic social policy. Our objectives are
quite clear here. We' must grant peasants and countrymen an opportunity of more
effective control over their lives and besides supply them with means to realize
this opportunity.
Strategically these problems may mostly be settled
with the help of economic growth. A well-off Kazakhstan would offer more
opportunities for each and every. As the great world leader put it "high tide
sets all ships afloat". Our strategy must be elaborated in such a way so that
everybody has a chance of obtaining a portion of the ever growing national
wealth.
Meanwhile many people will have it hard in the transition
period and the Government has not enough means to help all of them. In this
field our strategy would consist in directing state-rendered assistance to the
most vulnerable groups of the population and to them only. However today we are
more interested in raising the number of those who are able to cope with the
difficulties on their own.
Speaking of the future for our children and
relations among the people the way we see them, we must have a vision of the
model of our future society, of the civilization which we intend to construct.
Today when history discarded the dispute between a totalitarian and a liberal
society, it became obvious that the models of the liberal society themselves
vary greatly and differ from one country to another.
Basic difference
is witnessed between the two types of models, Anglo-Saxon and Asian ones, which
was demonstrated so graphically by Asian Tigers. Having common features, in
certain aspects they manifested a striking dissimilarity. While individualism
was specific of the first model, the second one was characterized by
communitarism. In the first case they actively advocate a limited role of the
state while in the second case this role is overemphasized: the state must be
actively involved in planning and lead the private sector in the society an
large. In the first model emphasis is made on the macroeconomy, in the second
one - on the microeconomy, etc.
As I have already noted, in previous
years we actively followed the Anglo-Saxon variant and the goal we set was rapid
changes. Yet, today we face a strategic alternative - which way to choose.
There is no consensus on this score in the society. We are a small, but
nevertheless, part of Europe and historically we gravitate to the Western
civilization - that's what some say. Others argue that we are predominantly an
Asian country and consequently have to stick to the experience gained by the
"Tigers", Japan and Korea.
The third would say, however, that we are
deeply imbued with Russian mentality and principles of collectivism and our
choice must largely coincide with the perspective model of Russia.
The
fourth would object to it maintaining that Moslem population is predominant with
us and we must make our choice in favour of the New-Turkic
model.
However paradoxical but all of them are right and wrong at the
same time. We are a Eurasian country having its own specific history and
specific future. That's why our model would bear likeness to neither model. It
world imbibe the achievements of various civilizations. We shell face no
alternative on this score.
We shall act dialectically using both,
taking advantage of the best achievements of all civilizations which proved
themselves effective. Our model would govern our own path of development
combining elements of other models, but resting mostly on our specific
conditions, history, new civic motivation and strivings, taking into
consideration specifics of each stage of development.
LONG-TERM PRIORITY 3: ECONOMIC GROWTH BASED ON THE
DEVELOPED MARKET ECONOMY WITH A HIGH LEVEL OF FOREIGN INVESTMENTS
THE GREATER FREEDOM ENJOYS THE ECONOMY, THE MORE SOCIAL
IT IS Erhard
Our strategy of healthy economic growth rests on a strong market economy, an
active part played by the state and attraction of significant foreign
investments thereto. It includes ten basic principles: Limited interference of
the state with the economy combined with an active role thereof.
Success of economic reforms and braking thereof on certain legs of the
route requires reappraisal of the role of the state. Authorities, both in the
centre and in the periphery, must stop any interference with the economy, cease
launching sowing campaigns, harvesting, etc.
In the economy the state
must play a substantial though limited part in creating legitimate limits of the
market in which the private sector is offered a leading part. We mean finalizing
formation of the legal basis that would provide for registering ownership
rights, on shaping up competitive markets and reliable means of antimonopoly
regulation, on maintaining fiscal and monetary policy, on developing a network
of social protection, on providing for the development of requisite
infrastructure, education, health care, and on pursuing effective environmental
policy. If, for the time being, the markets are weak and underdeveloped, if the
market space is encumbered with fragments of the administrative system, the
state ust interfere having in view development of the market and clearing of the
space.
So far as the economy itself is lingering in a transitory stage
of unstable development, regulating role of the state and its interference must
be duly adequate. We must raise effectiveness and quality of state
administration to at least an order, must help to enhance and supplement
activities of the private sector and the national capital to correlate with the
new world economic paradigm.
At the same time the state itself must be
a guarantor of free economy. Its mission is to establish market rules and then
safeguard their observance acting both just and impartial. We are a sensible and
vigorous nation. If rules of the game are clear-cut and their observance is
easily provided for on a just and impartial basis, then I have no doubt that
citizens of Kazakhstan will be quick enough to adapt to the market economy.
However the fact that the state will play a limited role on developed
markets in no way implies that it will be deprived of will and power, thus
turning into a passive observer. Quite the contrary: it must be very strong for
the laws to be honoured, it must be competent and knowledgeable as to the world
and domestic markets for it to be on the alert for permanently changing
conditions. It must minutely plan its activities so as not to be lax and
disorganized, it must identify interests of various groups of the population and
development priorities, it must closely co-operate with the private sector thus
consolidating and cementing the society.
Today however the state
exercises too great administrative zeal where it shouldn't and, on the contrary,
it is fairly passive and inert where its role must be great indeed. However it
becomes ever more obvious that such state of affairs turns into an obstacle in
our development. On the other hand, can we deem ourselves a strong state if we
fail to decently (and completely!) collect taxes and duties, if we fail in
paying wages and pensions on time, if laws and decrees are ignored time and
again? That is why law-abiding taxpayers and honest owners of enterprises as
well as the most vulnerable strata of the population suffer permanent losses.
Meanwhile unscrupulous heads of enterprises and persons who defy paying taxes
prosper and enrich themselves. Everybody knows the strategy of solving these
problems. Accordingly, our duties are as follows:
- eliminate
persisting administrative interference of the government with trade and
production;
- complete the process of privatization including real
estate, the remaining small- and middle-range enterprises and the
agro-industrial complex;
- sensibly organize and simplify the central
Government and local authorities; - seriously reappraise the role, powers and
responsibilities;
- establish absolute supremacy of law and protect
law-abiding citizens from crime. At the same time apply all power of laws and
authorities to those who live a fairly-well-to-do life by using illegal means.
During the last three years our economic strategy consisted in
achieving macroeconomic stabilization that implies reduction of the deficit of
state budget and consistent pursuing of a tough monetary and credit policy.
Today we are as close to the solution of this problem as never before. However,
successes of today give us no grounds for being calm. We are sure to fail
implementation of goals we set if inflation in the country exceeds the critical
level, if the rate of national currency is far from adequate to the general
condition of the economy and to our strategic objectives while interest rates
remain high and inaccessible for the real sector or - on the contrary - are
negative in real terms.
Lessons drawn from international experience are
unequivocal. Any of the countries which scored outstanding economic successes
had to obligatorily take all possible measures of tough suppression of high
inflation rates in the period preceding rapid economic growth and subseguently
it had to exercise close control over the macroeconomic indices to be kept in
prescribed limits. Those who went astray were doomed to failure.
To
become the first ever Asian Snow Leopard, we must deem, as a priority,
utilization of the best international experience in the field of macroeconomic
indices-low inflation, low budget deficit, steady national currency, high rate
of savings. Such formula proved effective for Japan, Korea, Indonesia, Taiwan
and Chile. Hopefully, it would prove as effective for Kazakhstan. So far we have
never faced the alternative: inflation or economic growth. We must never forget
that our finite goal is economic growth, and macrostabilization is but a means
of gaining this objective. Of course, financial stabilization, as no other
process, has seriously comlicated the situation with many a social group. It
couldn't be otherwise in conditions of systemic structural transformations. In
fact, a market is a democracy, which rests upon a most severe financial
liability. The majority of the population has already understood this wisdom.
Naturally, macrostabilization was accompanied by tough depression and
painful shortage of cash. But structural transformation of the real sector is
underway, and presently both monetary and commodity masses would get reconciled.
Time will come and people tempered by the hard period in their life and work
would overcome this crisis.
As a Kazakh folk saying goes: "he who knows
not what tightness is will never rejoice space". Through reducing inflation to
an acceptable level, we transfer strategic emphasis onto the economic growth.
But the economic, the more so government strategy in no way coincides
with the monetary policy, and today we are capable of taking a far greater and
more adequate range of measures. In this respect our attention in the nearest
years would concentrate on the real sector of the economy meaning rehabilitation
and growth thereof, an effective social policy, though in conditions of tough
fiscal and monetary limitations.
When speaking about macrostabilization
in a long-term perspective, we must be ready to countering troubles arising in
this field. Significant influx of currency cash which might invade the country
as a result of the development of our natural resources and of, hopefully, ever
growing exports in certain sectors of the economy, might push the rate of our
currency ever up thus seriously endangering it. This would imply "loss" of other
industries, exporting and processing ones, first and foremost. That is why we
must be capable of absorbing a portion of the influx of currency cash without
extensive use of import.
By virtue of sparsity of the population and
low purchasing capacity thereof, Kazakhstan's domestic market is negligible
indeed. That's why we must prepare strategies of financial investments abroad
well in advance having carefully studied the world experience and mechanisms
currently effective on investment markets. From now on liberalization of prices
which we have accomplished will never be subject to whatever doubts and changes.
Institutions of private ownership too would undergo consolidation at the expense
of land property as well as by establishing of such a judicial system which
would protect ownership rights and performance of contracts. Privatization of
enterprises.
This process is mostly completed. It needs but finishing
touches, primarily in the agrarian complex and social sphere. Besides we need
efficient regulation of the process of share circulation. As to state-owned
blocks of shares at the enterprises of strategic import, they would be used with
sense and measure.
We scored fine successes on our way to
liberalization, yet in agriculture, in a number of industries and in the social
sector the standard of market relations persists to be too low. Actually, the
whole of the production sector suffers from the crisis of payment system which
is the result of the actions of incompetent or corrupt chiefs of enterprises,
who are not accountable or poorly accountable to related owners.
Building of an open economy and free trade is prompted by our situation as a
connecting link between numerous major markets. Such policy would be far more
effective in linking countries and continents rather than any efforts to isolate
one's own markets. From the start our national capital must get hardened and be
ready to combats on its own markets. It is a very tough mission but otherwise it
would never win the day on external markets in future.
However, while
it is too young and too weak, is actually making its first steps and, wittingly,
is in an unequal position, the state would protect it and help it to stand on
its own feet as soon as possible. When we compare countries which gained topmost
economic results, even with insignificant domestic markets, with those which
preferred the way of self-isolation, we come to see for ourselves that closed
markets, excessive government regulation as well as attempts to achieve
self-sufficiency, though capable of producing transitory improvements, are in
the long run doomed to failure. Besides we shall proceed with the develoment of
power and such other natural resources with the aim of gaining revenues from
exports which would promote not only economic growth but political stability and
provision of national security. As before proper protection of foreign
investments and opportunities of profit repatriation would remain in the focus
.of our most particular attention.
There exist several sectors of
economy (development of natural resources, infrastructure, communications and
information) which are of paramount importance for our country. Development of
these industries would enhance not only the economic growth but also the social
sphere and Kazakhstan's integration into the world community. These are
capital-consuming industries whose development requires both foreign capital and
tough strategic control on the part of the state. However, as was recognized by
Adam Smith, there exist certain public needs which are far less attractive for
the private sector. In these cases and as a last ditch measure the state would
assume implementation of these tasks.
Our situation as a major
inter-regional transport centre demands establishment of a more liberal regime
for foreign investments than in some states bordering our country. Only in such
situation we shall be able to attract the badly needed influx of finance and
knowledge, only then we shall be able to substantiate our opportunities and
regular trade exchanges. An open and liberal investment policy with clear-cut
effective and strictly observed laws executed by an impartial administration
would give a most powerful impetus to attracting foreign investments.
Elaboration of such policy must become one of our basic objectives
because it is hard to imagine in what other way Kazakhstan can achieve rapid
economic growth and modernization without foreign capital, technologies and
expertise. We need a strong political will and effective actions for our
investment climate to become more favourable and Kazakhstan itself - to rate as
one of the first with regard to volume and quality of attracted foreign
investments throughout the world. Besides we have to display supreme skill in
utilizing relevant instruments needed in attracting as many world-famous
investors as possible.
This was actually the very reason for my setting
up - by virtue of a special Decree - of the State Committee for Investments and
granted it a status of the only government body in Kazakhstan enjoying the right
of conducting our policy in support of direct investments. One must remember
that chasing foreign investments would be a long process which, incidentally,
would never end. In this race we can't afford lagging behind. The need to
formulate industrial technological strategy for Kazakhstan ensues from world
experience. With a rare exception all developing countries passed the way from
labour-consuming to capital- technology- and science-consuming industries. One
cannot improve inert and cumbersome structure of production overnight. World
experience testifies to the expediency of a certain continuity consisting in a
steadfast reduction in the gross national product of the share pertaining to
agriculture and extractive industry while the share of processing industries,
primarily science-consuming ones with high extra cost and that of the services
industry, must go up.
We have every ground to believe that, given
favourable conditions in the future of oil-and-gas extractive industry which is
the vital basis of the country as well as of the entire extractive sector, they
would experience a considerable rise. It offers us a starting point from which
to proceed in building our structural policy. Besides, our industrial strategy,
as a rule, would not affect separate enterprises. We shall use instruments of
state policy in such a way so as to enhance development of industries most
appropriate for Kazakhstan. Not to become a country whose economy is oriented to
raw materials only, we must develop light and food industries, infrastructure,
oil-and-gas procession, chemistry and petrochemistry, certain subindustries of
machine-building, finite science-consuming industries, services industry,
tourism, all these - by priority rates.
Diversification of production
would help us in ensuring sustainable growth. While the process of adaptation of
entire branches and productions to the market in conditions of tough competition
with liberal imports is underway, while our produce, save for raw materials, is
hardly competitive on the world market, we are increasingly sliding to
cumbersome raws-oriented structure of production whereas the whole of the
civilized world advances in quite opposite direction. Downfall of production and
its regressive structure is indeed a particularly dangerous factor which may no
longer be ignored. If a free market is really free, it will invariably create
new industries in our country.
Our mission is to present Kazakhstan in
the eyes of world community as an attractive site for investments, and to
actively attract investors to most critical industries. However, so far, one
cannot rely on the market only. The government must set about launching an
active industrial policy of diversification thus transferring the emphasis from
macro- to the microeconomic level. At first, up to 2010, we shall have to focus
on labour-consuming industries fairly perspective from the point of view of
opportunities and competibility. They are - in order of priority - agriculture,
timber-and timber-processing industries, light and food industries, tourism,
housing construction and creation of infrastructure. By developing these
industries we setlle not only structural issues of the economy, but also
problems of employment and poverty which is particularly important at the
moment. We all understand only too well why economic growth is so vital for the
future of our country. Without developing our economy we shall be unable to fund
schools and hospitals, to protect our society against corruption and crime.
LONG-TERM PRIORITY 4: HEALTH, EDUCATION AND WELFARE
OF THE CITIZENS OF KAZAKHSTAN
CLEANLINESS IS A PLEDGE OF HEALTH WHILE HEALTH IS A
PLEDGE OF WEALTH Kazakh folk proverb
In and of itself, economic growth cannot safeguard welfare of our citizens.
One can easily imagine a prosperous economy, in which people year in year out
become ever more sick as a result of wrong approach to their health and because
of polluted environment. In the course of our building the society we have to
exert ever vigorous efforts for our citizens to be healthy all throughout their
lives, for them to contact a healthy environment. Accordingly, our strategy
in accomplishing this goal includes the following components:
Prophylactics of diseases and enhancing a healthy mode of life. As the
world experience shows the most important factor determining the health of the
population of the country is actual measures taken by the state in prophylactics
of diseases on the one hand and in enhancing a healthy mode of life on the other
hand.
Prophylactics of diseases implies utilization of pure water and
healthy foods, availability of purification systems, reducing the number of
facilities polluting the environment and inflicting ecological damage, along
with additional similar measures reducing other risk factors. As to
enhancing a healthy mode of life it implies our doing physical exercises,
feeding properly, observing standards of hygiene and sanitation, avoiding use of
drugs, cigarettes, spirits, etc. Our strategy for combatting diseases and
improving our health when we suffer from shortage of sufficient means, should
start with preparing our citizens to leading a healthy mode of life. We must
launch an aggressive informational campaign in favour of a healthy mode of life
and correct feeding, rules of hygiene and sanitation.
It must include
the following:
Combatting narcomania and narcobusiness. We have to
toughen penalties for import and spread of drugs, we should launch a discussion
in the society - whether it is expedient to introduce capital punishment for
that offence as is common in a number of countries including Malaysia and
Singapore. Drugs are an altogether particular and distructive threat and it is
quite a problem to what extent principles of humanism may be applicable here. In
fact, on one scale we have the life of the man who imports and spreads drugs
while on the other we see several lives ruined through the fault of that man.
Reduced consumption of spirits and tobacco. Negative impact of spirits
and smoking on man's health is scientifically substantiated. World experience
offers several formulas of conducting government policy in this field: from
imposing taxes on spirits and tobacco items to taxation of dipsomania treatment.
However we'd rather take time in pursuing this policy. We must give careful
consideration to this problem and repeatedly check our calculations if we do not
expect reverse results in the form of the flow of contraband and rising crime.
At first we must impose a final and universal ban on advertising the items in
question.
By and by smoking must be ousted from public places but it
all must be well-considered to avoid exaggerations. We must start with
government buildings and establishments thus setting an example for others.
Well, indeed, why should people endanger their health and put up with those who
poison their environment?! I appeal to all to display intolerance to those who
smoke. As to public consciousness and morals, they too must be less tolerable to
spirits. Over the years of Soviet power vodka has deeply imbued our everyday
life, our customs and traditions. It became part and parcel of life in the
country-side.
Today, when many of us have it hard, when we are obsessed
with stresses, craving for spirits has grown considerably. Many countries tried
to impose bans on this evil but so far it was to no avail. This notwithstanding,
certain countries succeded in achieving substantial positive results thanks to
conducting rational information and elucidation policies, through culture and
education. In industrially advanced countries they witness ever reducing
consumption of spirits and a cut-down in the number of smokers.
One of
the effective ways is also a diversification of mode of life - from pernicious
habits to sports. Improvement of health of women and children. Protection of
health of a mother and her child must always be in the focus of our state, our
health protection authorities and the public. In due course, when we accumulate
substantial revenues in our treasury, we shall obtain funds to officially
support mothers and children in the form acceptable both for the state and for
the effective demographic policy meant to aid families. For quite a time we have
been rendering such assistance, in fact, to this day, despite pretty hard times.
As a matter of fact, I submit to public judgement a proposal of
imposing a tax on those inwilling to have children, having in view subsequent
allocation of these assets in support of families having many children. On a
local level too it is necessary to look for new ways and means of supporting
families, pregnant women and children. Indeed, we have to thoroughly consider
the issue of eventual improvement of the institution of marriage and family,
that of unmarried mothers. If we claim to be a society of high morals, we have
to toughen mutual matrimonial responsibilities, primarily those to children.
When parents care for their children and children, when grown up,- for their
aged parents, when women command respect in the family and the society, then we
may be sure of our country. After all, these principles were-from time
immemorial-inherent with the Kazakhstanis, they must be restored and cherished.
Public should have its say as to adequate solution of the issue to be
subsequently reflected in the law on family. Along with this we must specially
distinguish parents who lead a healthy mode of life thus setting a glaring
example for their children. I'd like to recommend companies and employers find
relevant forms of commendation.
Annually they perform some 200,000 abortions. We think it expedient to hold a
discussion whether it is sensible to impose bans on abortions. It is a pretty
delicate issue and I'll have to follow the opinion of the majority. In any case
we must choose a civilized way of family planning without endangering health and
lives of women. In our age-related policies we'd rather focus our attention on
our youth and the rising generation as well as on young families. Improvement of
nutrition, raising purity standards of natural environment. Today poor
ecological situation turns into a cause of nearly 20% mortality while in certain
regions it is even more aggravated. One third of our compatriots drink
substandard water. Inferior and irregular meals too bring about ruinous
demographic consequences. Accordingly, each of us must be quite particular as to
what one eats or drinks.
Our experts should- through mass media -
tirelessly explain and show the way one should feed and arrange his meals in
keeping with one's income, the way one should follow prescriptions of up-to-date
personal hygiene, of avoiding drinking low-grade water. Ecological,
sanitation-and-epidemiology departments and standardization agencies must work
in keeping with the priority of related objectives. As a matter of fact we must
bar the way to whatever suppliers and producers of low-grade food items, to all
who pollute the environment. Heads of government departments must set personal
example thereof. Besides I appeal to our leaders of religious confessions, to
other respectable members of our society to actively participate in the process.
For these are issues of paramount importance. Relevant measures would mean too
much for people's health, for many thousands of human lives.
LONG-TERM PRIORITY 5: POWER ENGINEERING
RESOURCES
WEALTH LIES NOT ONLY IN POSSESSION OF RICHES, BUT IN
ABILITY TO THOUGHTFULLY UTILIZE THEM Cervantes
Kazakhstan possesses vast deposits of natural and energy resources. Its
territory bears oil and gas fields, which rank us to the top ten of oil
extracting nations. Kazakhstan has large deposits of coal, uranium, gold and
other valuable minerals. We have a significant potential in utilizing solar and
wind energy.
Despite it, we cannot satisfy our internal demands for a
number of years. It is the result of the system of distribution, which goes back
to Soviet epoch and also the lack of the required infrastructure. Similarly, the
shortage of the required communications for exporting oil and gas to the world
markets sharply reduces our opportunity to recover sufficient sources for the
realization of our development programs.
Strategy of energy resources
utilization will include the following components: Firstly, we shall sign the
long-term partnership with main overseas oil companies to attract the best
state-of-the-art technology, know-how, large capital for quick and effective
utilization of our resources. We have already signed some large-scale contracts,
the rest are under preparation. We are in search of partners for long-term
outlook, whose challenges coincide with our challenges. In contracts we shall
strictly and reasonably stand up for interests of Kazakhstan, ecology,
employment and labour training, the necessity of settling a number of social
tasks.
Within utilization of our natural resources we are interested in
concluding transparent agreements which will correspond to the best world
practice and meet Kazakhstani interests. Here lies the guarantee of our incomes
stability and contracts' fairness alongside with the world community back up.
Strategy
Second part is the creation of the system of pipelines for oil
and gas exporting. Only a large quantity of sovereign export routes can prevent
our dependence on a single neighbour as well as monopoly pricing dependence on a
single consumer.
Thirdly. Our strategy on utilization of fuel resources
is directed to the attraction of interests of large countries to Kazakhstan and
its role as a world fuel supplier. In this case companies and countries which
will be involved in investing the development of our oil and gas business
include the USA, Russia, China, Japan, and West European countries. Economic
interests of these companies and countries to our resources exporting on the
regular and stable basis will stimulate the development of independent and
prosperous Kazakhstan.
Fourthly, with the attraction of overseas
investments, we shall accelerate the creation and development of the domestic
energy infrastructure, and settle the problem of self-sufficiency and
competitive independence.
Finally the strategy stipulates efficient and
expedient utilization of future profits drawn out of these resources. We should
strictly control our strategic resources, cut down expenses and economically
utilize means, saving part of them to our future generations.
LONG-TERM PRIORITY 6: INFRASTRUCTURE, MORE
PARTICULARLY TRANSPORT AND COMMUNICATIONS
THREE DEEDS CREDIT A MAN: A WELL, DUG OUT IN THE DESERT:
A BRIDGE, LAID OUT THROUGH RIVER, AND A TREE, PLANTED AT A ROAD.
Oriental Saying
Historically transportational flows east to west and vice versa have been
laid through our territory and their intensity hasn't been decreased for now
Kazakhstan is to provide for competitiveness of the domestic
transportation-communication complex on the world level and to increase trade
flows via its territory.
To a certain degree the sector is sufficiently
developed and in a long-term period it should follow the concentrated growth
strategy, which means diversification of the national market and search of new
markets, that would use our transportation and communication services.
This strategy will promote further development of automobile
construction, tourism, system of rendering services; road and overhaul
construction, reduction of a transport component within domestic production net
cost.
RAILROAD TRANSPORT
Given the vastness of the
territory and economy oriented on raw materials the bulk of freight traffic in
Kazakhstan is made by railroad. To realize strategic tasks, we have the
following to define as priorities:
- to modernize the main railroad
routes, providing international transportational and trade ties, and also
transit flows of goods via Trans-Asian main road;
- to finalize the
development of Druzhba station and to intensify Druzhba-Aktogai leg of the route
with the traffic capacity of up to 10 min. tons of goods per year;
- to
launch the construction of multimodular terminals in heavy loading areas; thus
starting the utilization of container and package deliveries, providing
technological unity of different transportation types.
- to decisively
restructure all transportation-communication monopolies separating them from
nonspecialized enterprises.
AUTOMOBILE ROADS AND MOTOR TRANSPORT
- to develop automobile roads in the directions providing international
transportation alongside with the creation of high-speed legs of routes. To
launch the construction of private main highways, privatisation and concession
of the present. To provide their servicing on the level of modern international
requirements;
- as a priority, to develop the network of roads in rural
part of the country and in a long-term period to transfer them to solid
pavement. To improve the traffic capacity of main highways and bridge
constructions.
AIR TRANSPORT
to set aviation in order
and to enlarge the air fleet through leasing and acquisition of a definite
amount of high-class aeroplanes;
- to start the reconstruction of
airports; level of servicing is to reach international standards;
- to
reorganize the system of air traffic management in order to develop transit air
lines via Kazakhstan.
WATER TRANSPORT
- to reconstruct Aktau sea port, and to attract
foreign investments for enlarging flotilla with "river-sea" vehicles.
-
to enliven and involve into the activities river steamships, namely the vehicles
with low net cost of loading and passenger transportation.
COMMUNICATIONS AND TELECOMMUNICATION NETWORKS
Telecommunications maintain functioning of market mechanisms through
the access enlargement and information transmission. Telephones, faxes, e-mail
are considered to be vitally important and necessary prerequisites for modern
business development.
Being more international and flexible by their
nature, informational technologies in comparison with other types, in a greater
extent contribute to the business development of exporting and economy
decentralization.
They integrate national economies and enlarge the
informational range of the region, incorporate the countries into the world
economic ties. Telecommunications may potentially smooth some distortions and
negative phenomena taking place in social sphere, granting new jobs, decreasing
economic migration between rural and urban regions.
Of great
significance are informational technologies for health care and education, and
also for environmental protection and improvement. One of the positive assets of
easily accessible and comprehensively utilized telecommunication system is the
guarantee that the people, despite the poor condition of roads, vastness of some
regions and high tariffs, for passenger traffic will get an access to
information.
The Government will render the minimum level of
communication services to remote and underdeveloped districts. For example to
retransmit regional training programmes for children and youth. It will be of
minimum net cost; and in future it will be profitable.
Currently the
Republic of Kazakhstan faces the necessity of establishing priority of an
independent and effective system of telecommunications services of its own,
competitive in future with similar infrastructures of the world developed
economies.
Present-day status of Kazakhstani telecommunications,
despite the sufficient density of lines in comparison with other countries turn
to be a serious economic problem.
LONG-TERM PRIORITY 7: PROFESSIONAL STATE
A COUNTRY DEVIATES FROM THE LAW GOVERNANCE WHEN IT HAS A
LOT OF CHIEFS Solomon
Reorganization and improvement of state bodies has just started, but this
process has to be given more active impulse. That is why early this year I have
launched the realization of the strategy in reforming of our government and its
staff.
On federal and local levels the Government will be cut down and
it will be an on-going process. Our task is to create in Kazakhstan an efficient
modern state service and management structure best suited for market economy;
form the Government capable of realizing priorities; build a state protecting
national interests.
Within the Soviet command economy the state managed
to control everything and everybody. As a result it has become an awkward
structure with numerous intersecting chains. In developed countries more than
80% of similar activities which were under the Soviet control, are not included
into the list of state functions.
After collapse of the Soviet Union we
had to solve anew issues of state construction and management. Firstly it
applied to provision of legislative basis for functioning of a new independent
state, consequent maintenance of social-political stability. For now of topical
significance is the issue that state management through complex systematic
transformations of a society and economy is to become systematic.
Naturally, it can be reached on a step-by- step basis, but only in case
of preliminary working-out of the coordinated logical programme of long-term
reforming of state functions.
Strategy seven main principles, on the
basis of which the Government and local bodies will be finally created have
resulted in the following:
1) Comprehensive and professionally trained
government concentrated on fulfilment of some most important functions;
2) Work on Action Programmes on the basis of the proposed strategies;
3) Efficient inter-institutional coordination;
4) Increase of
authorities and responsibilities of ministers, their accountability and
strategic control over their activity;
5) Decentralization within
ministries: from the federal centre - to region and from the state to the
private sector;
6) Decisive and merciless combatting
corruption;
7) Improvement of the system of personnel hiring, their
training and advancement. Governments, which have achieved success are
comprehensive and concentrated on execution of some main functions, which can be
fulfilled only by a state.
Moreover efficient governments focus on a
limited number of priorities and on strategy realization to achieve these goals.
Government effectiveness is based on three interrelated factors: structural
composition, strategic coordination and the level of personnel training.
Our nearest task is to create a small and flexible staff, comprised of
capable and dedicated personnel perfectly commanding methods of strategic
planning. There is no need to dwell on the fact that the lack of coordination
between ministries and institutions, and between regions is one of the main
hotbeds of crisis in social activities.
Terms of reference for the
solution of specific tasks which don't correlate with each other, duplication of
functions and collective guarantee, formal replies lead to delays and red-tape
intestine, lack of responsibility. It is the gist of the present state
management. This problem is rooted in the lack of strategic programmes. Work of
each ministry, institution, akimat as well as regional development itself,
should be in conformity with the state strategy stipulating clearly defined
goals and tasks. Undoubtedly, it will require new approaches.
Strategic
planning, financial programming and project management should become the essence
of improvement within state management in the nearest future. Interinstitutional
and interregional coordination is wanted as air, as the manifestation of
political will towards effective achievement of priorities. We have to establish
a single coordinating body to control the activities and efforts of institutions
involved in realization of strategic tasks. State system of coordination is to
be efficient and transparent.
Results of its activities should be
available to all subordinating bodies. Current situation in ministries and
institutions is such that the level of responsibility exceeds the terms of
reference. Distortion of balance of responsibilities and authorities into one or
another extreme tangibly decreases the management efficiency.
As the
world practice shows, granting of broad-scale authorities on internal management
gives more advantages for a head of an institution than losses stipulated by the
possibility of this power abuse. Ministers and akims must and shall possess
broad powers, but their activities are to be accountable to high ranking bodies
and be subjected to regular strategic control. Wider power concentrated in our
hands implies larger personal responsibility for non-execution of obligations.
As I have said, each ministry and institution should be released from
functions not characteristic of them, trying to maximally transfer them from the
federal centre to regions and from the state to private sector. The less
numerous hierarchy and intermediaries are, the stricter is separation of powers.
Power decentralization and alignment of authorities to lower layers, directly
involved in execution of the activities is so obvious that central and any other
state bodies will be demonstrating their necessity and usefulness.
Within the market conditions we are to establish and strengthen
competitiveness between regions on the principle: the best region is the region
with better living standards. accordingly, productive forces should be
concentrated in places with better conditions. Regional competitiveness is to be
based on a larger independence of regions, especially in the bud-get sphere
where excessive centralization is evident. We should relentlessly combat
corruption notwithstanding persons and their positions.
The executive
staff is to be decisively cleared and refreshed. New generation of public
servants should serve their nation; be patriotic and just, dedicated to the work
and highly competent. Creation and support of comprised of capable and dedicated
personnel perfectly commanding methods of strategic planning. There is no need
to dwell on the fact that the lack of coordination between ministries and
institutions, and between regions is one of the main hotbeds of crisis in social
activities.
Terms of reference for the solution of specific tasks which
don't correlate with each other, duplication of functions and collective
guarantee, formal replies lead to delays and red-tape intestine, lack of
responsibility. It is the gist of the present state management. This problem is
rooted in the lack of strategic programmes.
Work of each ministry,
institution, akimat as well as regional development itself, should be in
conformity with the state strategy stipulating clearly defined goals and tasks.
Undoubtedly, it will require new approaches. Strategic planning, financial
programming and project management should become the essence of improvement
within state management in the nearest future. Interinstitutional and
interregional coordination is wanted as air, as the manifestation of political
will towards effective achievement of priorities.
We have to establish
a single coordinating body to control the activities and efforts of institutions
involved in realization of strategic tasks. State system of coordination is to
be efficient and transparent. Results of its activities should be available to
all subordinating bodies. Current situation in ministries and institutions is
such that the level of responsibility exceeds the terms of reference. Distortion
of balance of responsibilities and authorities into one or another extreme
tangibly decreases the management efficiency.
As the world practice
shows, granting of broad-scale authorities on internal management gives more
advantages for a head of an institution than losses stipulated by the
possibility of this power abuse. Ministers and akims must and shall possess
broad powers, but their activities are to be accountable to high ranking bodies
and be subjected to regular strategic control. Wider power concentrated in our
hands implies larger personal responsibility for non-execution of obligations.
As I have said, each ministry and institution should be released from
functions not characteristic of them, trying to maximally transfer them from the
federal centre to regions and from the state to private sector.
The
less numerous hierarchy and intermediaries are, the stricter is separation of
powers. Power decentralization and alignment of authorities to lower layers,
directly involved in execution of the activities is so obvious that central and
any other state bodies will be demonstrating their necessity and usefulness.
Within the market conditions we are to establish and strengthen competitiveness
between regions on the principle: the best region is the region with better
living standards. accordingly, productive forces should be concentrated in
places with better conditions. Regional competitiveness is to be based on a
larger independence of regions, especially in the bud-get sphere where excessive
centralization is evident. We should relentlessly combat corruption
notwithstanding persons and their positions.
The executive staff is to
be decisively cleared and refreshed. New generation of public servants should
serve their nation; be patriotic and just, dedicated to the work and highly
competent. Creation and support ofcivil service high reputation is our strategic
objective, which is to be solved within the years to come.
Old
mentality, ideological blinkers, legacy of the past; inability and lack of
competence to work within new market conditions - are obstructions on the way of
social economic debelopment. There are some gleams of hope though. But
generally, training of a new managerial staff generation is an imperative task
for the nearest future. Technocrats capable and ready to roll up for achievement
of priorities and challenges should enter management. Professionalism,
patriotism, ability to set long-term tasks, skills and will to solve them within
new conditions are the main criteria for selection and advancement of personnel.
The Republic has laid the basics of professional civil service. However
we are in for a lot of work. We have to create a state system of cadres'
management with efficient and effective training in the country and abroad, with
just and fair procedures of career advancement, single informational system,
guaranteed social protection system, rational attitude towards the basic
management resource-human capital. Alongside with it, this state system should
be selective for incompetent and unqualified workers. Regularly each employee
has to prove his actual capabilities and usefulness.
THE AGENDA: 1998-2000
ONE TODAY IS WORTH TWO TOMORROWS Franklin
There is a danger that the above will be castles in the air if we do not
specify short-term objectives for the next three years until the early XXI
century and do not fulfil them.
For the bulk of our people long-term
prospects are of no importance today: it is too difficult to overcome present
day privations. While the majority of people won't enjoy concrete results, even
small improvements within the nearest future, they will be cynical towards
long-term goals and high-flown promises.
First steps and results on our
strategic path are more tangible and verifiable. On their basis realization of
the correctness of the chosen trend will take place, people's trust to the state
will be built; sense of patriotism and community will be developed. However, our
compatriots are wise.
They understand that we shan't be able to cope
with all the bulk of acute social problems until our economy is revived within a
few years. They do understand that the state during the coming years will be
restricted in resources for realization of our long-term priorities and for
execution of short-term specific action programmes within a long-term strategy.
Nevertheless, our people await and deserve even insignificant
improvements until the end of the century. That's why I submit for 1998-2030 the
most important tasks within the context of the Republic of Kazakhstan strategic
programme development until 2030.
Priority goals are as follows:
- national security strengthening through more active relationships
with leading countries, capital attraction into Kazakhstan power engineering
sector and working-out of the military doctrine of our country;
-
settlement of the most pressing rural problems; - combatting poverty and
unemployment;
- economic growth through strengthening internal
political stability and unity of the society;
- finalization of all
social and economic reforms primarily in the budgetary sphere thus resulting in
timely and complete payment of pensions, wages, salaries and social
benefits;
- creation of a favourable investment environment; -
acceleration of government and civil service reform and strengthening of
activities in combatting corruption and abuse.
NATIONAL SECURITY By
2000:
Initiation via foreign political state institutions of stability
of the forming strategic parity around Kazakhstan, which geopolitically will
meet long-term interests of our country.
We shall advance to
strengthening of our relationships with Russia, China, Central Asian neighbours,
Islamic states and Western countries. Big business and companies from the USA,
Russia, China, Great Britain will be involved in the development of Caspian
Shelf and Karachaganak field, that will strengthen world powers interest the
country independence and continuous fuel supplies to the world markets.
Efforts made by foreign political and intelligenc authorities will be
concentrated on securing state independence and territorial integrity. There
will be worked out a military doctrine of Kazakhstan which be subject to regular
rearrangment depending on circumstances. Due to the lack of resources,
demography strategy realization will be started mainly with utilization of its
items which don't involve expenditures mentioned above. However, the Government
will pursue payment of allowances to children and support mothers having many
children.
RURAL PROBLEMS
As the settlement of most serious
rural problems is concerned, by 2030 we shall:
- dismiss local
administrations from their interference into market relations;
-
privatise pseudoprivate entities with clear inkind personification of private
property and plots;
- improve the rural economy through bancruptcy
mechanisms;
- reduce the price of credits for farmers and real private
entities, first and foremost;
- develop small-scale and middle-scale
businesses in the country-side througn loans granted by Asian of Adian and
European Banks for Reconstruction and Development, and through the assistance
rendered by other agencies and donor countries;
- lend microcredits
worth 25-30 thou. tg.
Within three years the Government is responsible
to provide such assets not less than to 150 thou. peasants, who found themselves
in the most desperate plight, and who cannot afford buying livestock and tools
to start legally permitted businesses, which will keep them afloat and develop
their business skills;
- go on attracting direct domestic and foreign
investments;
- render assistance to farmers in produce marketing; -
solve water-supply and irrigation problems;
- provide priority rural
financing through all ministries and foundations.
COMBAITING POVERTY
AND UNEMPLOYMENT
Strategy of combatting poverty and unemployment during
these years will be based on the following: - introduction of a system of
microcredits;
- small-scale and middle-scale business development;
- priority development of labour-intensive sectors and active
attraction of foreign investments and domestic capital into them;
-
tough approach to problems of unemployment under contracts, agreements, budget
purchases;
- development of public works, primarily road construction
and tree planting;
- removal of all unnecessary administrative barriers
on the way of developing private entrepre-neurship;
- efficient
development of the sphere of services, tourism in particular.
ECONOMIC GROWTH
With the aim to realize our long-term priorities on
this trend during the next three years we contemplate the following:
-
tough monetary policy will be carried out;
- privatization will be
finalized;
- legislation to improve country investment environment will
be perfected and and made more comprehensive;
- foreign investments
will be more actively attracted; the volume and the results of which being
notified in detail to the people;
As power resources are concerned:
Kazakhstan will make every effort to complete the construction of the CPC
Pipeline and to put it into operation by 2000, the other pipeline to the
People's Republic of China -in 2004. Just as throughly will be considered the
issue of financing and construction of alternative pipelines laid to the
Mediterranean Sea, Persian Gulf, Arabian Sea. We shall erect gas pipelines to
supply fuel to Kazakhstani industrial enterprises and houses, as well as to
international markets;
We shall sign agreements on exploration and
extraction on the Caspian Shelf, gas condensate mining, transportation and
processing at Karachaganak gas condensate field. Infrastructure development
programme stipulates the following: - by the end of 2000 to improve the railroad
infrastructure between Druzhba station and Aktogai, to increase rail-road
transport capacities between the Repubhc of Kazakhstan and People's Republic of
China. - by the end of 1999 to implement the first stage of the reconstruction
of the Aktau seaport. - by the end of 2000 to rehabilitate
Almaty-Akmola-Borovoiye road; - by the end of 2002 to complete construction of
the bridge via Irtysh and access roads running to the Semipalatinsk bridge; -in
2000 to reconstruct Akmola airport.
ECONOMIC AND SOCIAL REFORMS By
2000:
the problem of nonpayment of salaries and pensions will sink into
oblivion
- it will become a mere record in our history.
- the
most needy layers of our society will receive state aid thus providing 150 thou
people through microcredits and more than 3.5 min people (including pensioners)
through social insurance systems;
- loss-making and non-productive
enterprises will undergo bankruptcy procedures;
- we shall carry-out
budget reforms, aimed at supporting our long-term priorities, sticking to the
basic principle of living on the available means only;
- tax payment
for the bulk of Kazakhstanis will become an ordinary event and will turn up as a
mere patriotic obligation;
- we shall consistently pursue pension
reforming;
- we shall finish finance sector reforming and launch
securities market.
PROFESSIONAL GOVERNMENT By 2000:
-
Government and state service reforming will be finalized;
- priority
attention will be attached to the removal of incompetent functionaries and to
combatting corruption and power abuse committed by civil servants.
EIGHT SPECIFIC TASKS SET TO THE GOVERNMENT FOR
1998
EVEN BEING ON A RIGHT TRACK YOU WILL BE KNOCKED DOWN
WHILE SITTING WITH ARMS FOLDED Godfrey
I have defined our challenges for the next three years in context of our
long-term priorities but apart from them, there are some tasks which should be
solved the next year.
Thus I submit the Government for 1998 eight
specific tasks:
1. to provide total and timely payment of pensions,
allowances and wages in budgetary institutions;
2. to issue, within a
year, microcredits worth USD 400 for the period of three years not less than to
30 thou most needy citizens mainly for purposes of providing extra jobs in the
country-side;
3. starting from this year to provide lending of credits
for the development of small- and middle-scale businesses, farms, creation of
jobs in the sum not less than USD 100 min;
4. to set about
implementation of a broad-scale programme of computerization of schools, located
in the country-side allocating not less than USD 22 min for the purpose as early
as 1998.
5. to provide reduction of credit prices for farms not less
than tenge 2.5 bin;
6. to launch a public campaign for a healthy mode
of life;
7. to start the realization of Housing Construction Programme
having allocated for these purposes not less than USD 40 mln. In April 1998 to
inform the public on the principles and anticipated results of this programme
realization;
8. to ensure overall school attendance by children.
SUMMARY
SELF-CONFIDENCE IS A POWER Bowie.
The task of long-term priorities selection, specifying objectives for
1998-2000 and elaboration of Action Programme for the next year is an extremely
complicated affair. It's impossible to envisage everything as well as to foresee
all difficulties which will be encountered on this path. But elaboration of
these long-term priorities immediately disciplines everybody, and adds
concentration to the work, which we lack now.
Many representatives of
our generation won't live to the time when this strategy will be realized. Our
chidren will estimate its reality and correctness of the work, implemented by
us. It will also be analysed by the world community estimating our ambitions and
decisiveness through watching our everyday activities.
Enormous
domestic and external difficulties are in store for us on this long way. There
have been many countries unable to elaborate strategies of their development and
there are even more examples when certain states haven't been able to realize
their plans. Inability of leaders, circumstances or weakness of their political
willpower have led to failure of the dream. We are not insured against it
either, if we won't overcome entropy, and concentrate all our power on main
directions, demonstrate firmness and flexibility, discipline and creativity.
Our chronic disease is that we gradually forget about the main goals
under the pressure of concerns and routine, do easy and sometimes unnecessary
jobs and put off difficult but strategically important tasks "for later on".
That's why we should clearly define priorities and every coming morning
think what can be done to advance to the goals and then in the evening summarize
estimate effectiveness of our day's work. We shall work out specific three-year
and annual programmes of realization on all seven priorities by the end of the
year, which subseguently will constitute the basis for development programmes
and budget.
The structure of the Government will be complied with our
strategic priorities and plans in view. From this year onwards activities of the
President, the Government, the Parliament and the local authorities will be
subjected to our common strategy realization.
Each Minister of the
Kazakhstani Government will have a strategic working plan and quarterly
report on his Department's activities for will implementation of its specific
items.
My fellow-citizens, Every year I shall report back to you over
the implemented and outstanding activities explaining the reasons. In each
annual report I shall put new objectives for the next year in order to move
further to our strategic goals.
A great number of sceptics will
consider these plans unreal due to a number of difficulties facing us. Some
people will consider our mission and strategy as an idle talk. Others will say
that Central-Asians, in particular Kazakhstanis, are not able to become "real"
Snow Leopards.
As a Kazakh saying has it: "Dust doesn't stick to a
quickly walking person". Thus, time will put everything on its proper place, and
he who walks will cover any distance.