New industrialization must correspond to the present system of global economy

 This will be innovative industrialization, not the industrialization which all the countries had gone through in the beginning of the previous century. Our industrialization must correspond to the present system of the global economy."

The main objectives of the innovative industrialization are consolidation of the efforts of the business community and the state and concentration of the resources of the country on development of the priority sectors of economy; formation of favorable business environment and investment climate; enhancement of the national economy performance.

The main priorities are development of the traditional export resources, good diversification; development of innovative productions, high value-added goods and high level of labor productivity.

The President outlined the major directions of the forced industrial innovative development: agro-industrial complex and procession of agricultural products; development of the construction, oil-and-gas and metallurgic, chemical, pharmaceutical and defense industries; development of transport and telecommunication infrastructure.

The result of all these plans must be economic growth that will allow creating additional annual added value over KZT 7 trillion.

At the recent sitting of the Parliament Houses the President assigned a task to the Government to complete elaboration of the industrialization stimulus plan for the nest 10 years with a breakdown into two five year long parts. The elaboration of the Industrialization Map for 2010-2015 and the Production Capacities Distribution Scheme till 2020 will be completed soon.

As per the instruction of the President the Government is finishing the elaboration of the Strategic Development Plan till 2020. In order to carry through the Strategic Plan, there will be developed several strategic programs with specific targets for the first five-year period.

The draft of the State Program on enforcement of the industrial-innovation development for the first five years is already being developed at present. The State Program and 10 new branch programs integrate principal regulations of the Industrial-Innovation Development Strategy, 30 Corporate Leaders of Kazakhstan Program, Transport Strategy and other program documents in industrialization sphere. In addition 23 master-plans representing documents which demonstrate the line of existing and perspective output with high added value were developed as well. The master-plans are to reveal optimal technology of production output, potential market outlets and the rate of competitiveness as well as possibility of participation of the small and medium business in implementation of the innovative projects and required amendments in acting legislation.

 As was mentioned above the primary objective of the innovative industrialization is a consolidation of the efforts of business and the state. Here the question on what the State Program on enforced industrialization must give to the business of the country is arising.

 As far as the principal issue of entrepreneurship in our country especially in real sector was always the lack of funds the State Program presupposes privileged financing of projects.  The State undertakes provision of new production with necessary infrastructure. Special measures of tax and customs enhancement will be developed. The State will take off many administrative barriers and firstly, in licensing, will optimize permissible activity of the state bodies. As the President noted at the joint sitting of the Kazakh Parliament it is necessary to regulate the activity of the state bodies on supervision of business entities. Till the present moment exactly this function of the state bodies was one of the most important factors preventing development of entrepreneurship in Kazakhstan.

 The important measure for successful development and generation of new production will become guaranteeing of demand by the state procurement. This year the Government approved a number of documents which let the national manufactures receive state orders in the first instance. In particular, the Kazakhstani manufacturer is given some privilege even in the case when his price quotation is higher than the foreign one. The limit of excess is fixed in 30 per cent and can be varied depending on the level of the Kazakhstan's share in goods and service proposed by this or that enterprise.

 The State Program is aimed at business-initiative with competitive and high-technology production in priority branches of economy for which special conditions will be created and which will be rendered resource and financial aid from the State.