GOVERNMENT: Weekly review. We do not intend to replace private business that is driving force of economic growth - Karim Massimov

within the regional industrialization map. KZT 832 bln will be invested in these projects in total. 20 thousand people are expected to be provided with temporary jobs, while the number of constant jobs is planned to exceed 20 thousand.

Summing up the results of the videoconference, the President noted that Kazakhstanis had set to realization of a grandiose program of the country's renovation. Due to this program, the economy of Kazakhstan is to experience 150% growth by 2020. Labor productivity in industry will rise by 1.8 times and in twofold in agriculture.

"Kazakhstan has never faced such challenges in its history and has never implemented such projects. Therefore, on behalf of the country's leadership I congratulate all akims of the regions, cities and districts, all workers, engineering-technical staff, builders on this event", N. Nazarbayev said.

Upon the end of the videoconference the Head of the State called on the Kazakhstanis to join the implementation of this program and contribute to industrial-innovative development of the country.

At the Governmental Hour held on June 29 in the Majilis Minister of Environmental Protection Nurgali Ashimov informed of the results of tightening the environmental legislation. The emissions in atmosphere reduced by 6% and polluted water discharge lowered by 1.7%.

On the same day First Vice Prime Minister Umirzak Shukeyev participated in a scientific conference entitled RK Law "On competition": first results and prospects of development in Astana. In the course of the conference U. Shukeyev said that the system of e-governmental procurements implemented in Kazakhstan gave positive results. The complexity of introduction of such novelty in Kazakhstan does not exclude its advantages - transparency, expansion of access, absence of direct contacts with the authorities, the First Vice PM said.

On Wednesday, June 30, Prime Minister Karim Massimov had a meeting with former Prime Minister of Canada Jean Chretien for discussing the current situation in global economy and the prospects of the Kazakh-Canadian economic relations.

On the same day the Prime Minister met with President of the Islamic Development Bank Ahmed Mohamed Ali. The parties focused on the issues of development of Islamic financing in Kazakhstan.

On Thursday the Head of the Government took part in a ceremony of launch of Densaulyk (Health) train in Astana. Delivering a speech, K. Massimov said: "Health of the nation is a priority of the country's development strategy. This train will travel across the country in order to provide medical care not only to workers of the railroad but also to all our citizens".

The specialized medical train is aimed at provision of highly-qualified medical care to the residents of the republic, first of all to the workers of railroad and their families living at small stations.

On July 1 Minister of Economic Development and Trade Zhanar Aitzhanova met with a delegation of the Asian Development Bank headed by its Vice President Zhao Xiaoyu. Issues concerning country partnership between Kazakhstan and the ADB for the nearest outlook, provision of assistance in development of private sector and public-private partnership, financing potential projects in energy and water supply under state guarantees were discussed. The representatives of the ADB said the Bank resumed development of the Country Partnership Strategy and the Program for Kazakhstan which would reflect the priority directions of the ADB-Kazakhstan cooperation. Currently, the headquarters of the ADB considers an issue of allocation of USD 500 mln loan to Kazakhstan for maintaining business through Damu Fund. The parties also entered into an agreement on organization of a sub-regional seminar in Almaty on CAREC - 10 years of cooperation and progress in mid July as well as a special session of the senior officials of the CAREC countries in September.

On July 1-2 III Astana Economic Forum was held. Taking the floor at a plenary session K. Massimov drew the participants' attention to efficiency of the measures launched in the period of the global financial-economic crisis. According to him, these measures - stimulation of banking sector, enhancement of social protection sphere, maintaining small and medium businesses as well as investing in agriculture, infrastructure and construction - allowed injecting USD 19 bln in the country's economy. Alongside, according to K. Massimov, the Government can not and must not replace private business which is a driving force of economic growth and creation of jobs.

"The Government hopes to withdraw the stimulus measures as soon as possible in order to launch measures on restoration", K. Massimov noted.

Delivering a speech at the Forum, First Vice Prime Minister Umirzak Shukeyev said that the talks on Kazakhstan's WTO accession would finish by the end of the year. He expressed hope that the foreign partners would support Kazakhstan in this issue.

The foreign partners highly appraised Kazakh Government's work in crisis period. Thus, Konstantin Huber, Executive Director of the World Bank for Kazakhstan, noted that the Government and the National Bank had ensured high level of liquidity, motivation and social support for prevention of the financial system's collapse, prolonged recession and unemployment rise. Alongside the Government succeeded in avoidance of full redemption of such banks as the Alliance Bank and BTA as well as other organizations which faced complexities.

"Kazakhstan's experience in restructuring the banks can serve as a positive example for many countries", K. Huber said.

The crisis did not impede Kazakhstan to continue structural changes in budgetary system, education and remove administrative barriers for business which became a serious contribution to the country's future. In short-term and long-term outlook Kazakhstan will face difficulties connected with recovery of the financial sector and moving away from dependence on primary sector through diversified growth. Nevertheless, the World Bank is optimistic about the prospects of Kazakhstan in restoration of the status of the fastest growing economy and achievement of the ambitious goals outlined in its 2020 Strategy.