The three key aims of the policy are: to define new markets where Kazakhstan can form productive partnerships and create new sources of economic growth; to create a favourable investment climate; and to develop an effective private sector and public private partnerships.
The President explained how these overall aims will be achieved through the application of the new policy to three key areas of macroeconomic policy and varioussectors of the economy:
• The focus will be on long-term, national projects related to diversification of the economy and development of infrastructure; these will be selected based on feasibility and rate of return and must be as carefully managed as private sector investments.
• There will also be a renewed focus on building up reserves to provide a buffer against future global economic deterioration.
• The focus will be on stimulating internal growth, driving exports and encouraging saving and investment by individuals. The drive to simplify tax and customs administration and reporting will continue and tax benefits will be made available to those involved in production and new technology sectors.
Monetary& Debt policy:
• Key tasks of the National Bank and the Government in this area will be to manage inflation while encouraging economic growth;to maintain public and quasi-public sector debt at moderate levels;and to reduce the budget deficit to 1.5% of GDP by 2015 (from the 2.1% expected in 2013).
• Kazakhstan’s banks need to meet private sector demand for finance.
• The success of the 2050 vision for Kazakhstan will depend on the knowledge and skills of the people implementing the new strategy. There will be a renewed focus on enhancing existing managerial resources and potential by introducing modern management tools and principles of corporate governance across the public sector.
• Kazakhstan will also seek to attract foreign specialists in the open market to come to work in Kazakhstan, where they will modernize production and transfer their skills to the domestic workforce.
• The development of the infrastructure needed to integrate Kazakhstan into the global economy will continue, while there will also be a new focus on regional infrastructure. Projects currently underway should double the capacity of transit across Kazakhstan by 2020 and the President set a new target to increase this capacity ten-fold by 2050.
• Kazakhstan will also embark on a program of global infrastructural integration, seeking joint venture partners to develop transport and logistic hubs at key transit points in the region and throughout the world.
Managing State Assets
• To maximize the effective management of state assets, the country must work as a single corporation, with the State at its core.
• The policy will be driven by the National Fund and the key areas of focus will be new industries and technologies and stimulating private companies to invest in research and innovation. Innovation for its own sake is not an end in itself. Kazakhstan will reap great benefit from the selective development of new technologies and products.
Managing Natural Resources
• Kazakhstan’s abundant natural resources need to be managed strategically. A two-pronged approach will maximize the value of traditional hydrocarbon commodities while observing new ecological standards, and develop alternative and renewable sources of energy which will provide half of Kazakhstan’s energy consumption by 2050.
• Kazakhstan is more than half-way through the first five-year action plan under the State program for industrial innovation. A plan for the next phase must now be developed. The goal is to progressively increase the portion of total exports which is provided by non-energy sectors, to three times the current level by 2040.
• Key strategic measures which will contribute to that goal include:
- Developing new industries in the export-oriented non-energy sectors and supporting domestic producers in developing strategies to exploit new market niches and adapt to the impact of Kazakhstan’s accession to the WTO
- Maximizing the benefits of the Single Economic Area across Kazakhstan, Russia and Belarus and ensuring that Kazakh producers can compete effectively in this market of 170 million consumers
- Accelerating the transition to a low carbon, green economy by creating an international “Green Bridge” organization in 2013 and launching the “Green4” project based on four satellite cities around Almaty
- Developing a program to develop joint international companies and partnerships, to facilitate technology exchange.
• The President tasked the Government with adopting a comprehensive development plan for the agricultural sector during 2013 and promised that state financial support for the sector would increase 4.5 times by 2020, in order to modernize the sector and enable Kazakhstan to become a global player in the eco-friendly production of agricultural products.
Managing Water Resources
• The time has come for a complete rethink of the management of water resources in Kazakhstan, given the increasing global scarcity of this natural resource.
• Drawing on the best international practice in countries such as Australia, which have long experience of dealing with water resource issues, Kazakhstan will introduce advanced extraction technology to maximize the prudent use of its abundant underground water reserves.
• The President instructed the Government to develop a state program on water management, with the aim of securing the long-term supply of drinking water by 2020 and irrigation water by 2040.