WEEKLY REVIEW: Investment policy in Kazakhstan to be harmonized with OECD standards

On Monday, January 23, the akimat (administration) of Mangystau region informed that there was elaborated a detailed project of implementation of the Complex plan of socio-economic development of the town of Zhanaozen till 2020. The Government made some amendments to this plan. They (amendments) aimed at solution of the matters of employment of the residents of Zhanaozen and other settlements of Mangystau region to the long-term period, as well as priority socio-economic problems of the town's development.

On Tuesday, January 24, Prime Minister gave first instructions of this year to his deputies at the Government's session.

"Today we are on the verge of another wave of global economic and financial crisis, instability of the financial sector of the eurozone tells about its probability. Despite this, the instructions should be executed, hence in spite of these circumstances, we should coordinate our activity," K.Massimov said.

Vice Premier Kairat Kelimbetov was urged to coordinate the work of all state bodies, national companies, akimats. K.Massimov charged Vice Premier Yerbol Orynbayev and head of the Prime Minister's Chancellery Gabidolla Abdrakhimov to prepare memorandums for signing with the ministries after approving a plan on further work in a week.

The Premier gave an instruction to work out an issue on holding board meetings of the ministries and departments. The part of them will be carried out in the regions. After all board meetings there will be held the Government's session on 2011 results and definition of tasks for 2012.

On Wednesday, January 25, Kazakh Minister of Foreign Affairs Yerzhan Kazykhanov received Pierre Morel, EU Special Representative for Central Asia. At the meeting the sides discussed the current state and prospects of the relations in the format of Kazakhstan-Central Asia-the European Union, as well as the issues related to combating terrorism and drug trafficking, border management, regional and transboundary cooperation.

Industry and New Technologies Minister Asset Issekeshev was received by Head of State Nursultan Nazarbayev. He informed the President of the results of implementation of the State Forced Industrial and Innovation Development Programme for 2010-2011 and programme tasks for 2012.

On Friday, January 27, President N.Nazarbayev delivered an annual State-of-the-Nation Address, in which he set a number of tasks on socio-economic development of the country, including preparation of economy for functioning in the global crisis.

Then there was held a session of the Government, at which the President gave a number of specific instructions. In particular, he urged the Government to develop a National plan of action on attraction in investment and harmonization of investment policy of Kazakhstan with the standards of the Organisation for Economic Co-operation and Development (OECD).

"It is necessary to use the current and find new reserves of economic growth, first of all, compete for investments. I have told about this in the Address today. It is very important in the period of the global crisis," N.Nazarbayev said.

President Nazarbayev urged the National Bank and the Government to prepare the financial sector of the country for the upcoming crisis. According to him, external conditions can provoke devaluation of currencies of our trading partners. Hence the National Bank together with the Government must ensure the optimal rate of tenge for competitiveness of our exporters' products.

The Head of State noted problem moments in implementation of the country's industrialization plans. About 60 percent out of all implemented projects of the Industrialization Map are accounted for the agrarian complex and construction industry. Only 5 out of 31 large projects (90 percent of all investment within the Industrialization Map) are connected with the finished-product output. 80 percent of investments within 220 projects which are under implementation are directed to oil and gas and ore mining sectors.

The President charged K.Massimov and his First Deputy S.Akhmetov to analyze the situation and find out how each of the projects implemented within the Industrialization Map supports diversification of the Kazakh economy.

Besides, N.Nazarbayev criticized some issues, including implementation of some programs, in particular, the Nurly Kosh program.

As the Prime Minister said, in accordance with the President's instructions the government will develop draft amendments to the national budget for 2012-2014.

"On Tuesday we will prepare an action plan on execution of all your instructions, which were set in the Address," K.Massimov said, emphasizing that the draft amendments will be ready in two weeks.

According to the Premier, execution of the President's instructions will be started at the beginning of March.