Speech by President Nursultan Nazarbaev of the Republic of Kazakhstan at the opening meeting of the third Parliamentary Session

Speech by President Nursultan Nazarbaev of the Republic of Kazakhstan at the opening meeting of the third Parliamentary Session


Dear Chamber Chairmen, Members of the Parliament  and of the Government! Ladies and Gentlemen!

I would like to announce the opening of the third session of the Parliament of the Republic of Kazakhstan!

Let me congratulate you on the commencement of the third Parliamentary session of our country. First of all, I would like to thank you for the very productive work completed by all of you  during the last session. 


You have accomplished the significant amount of work on adoption of important laws that are targeted at solving new tasks faced by our country and fulfilling the course of Kazakhstan’s progress to the group of 50 most competitive countries of the world. 


Overall, the results of the second Parliamentary  session were very positive. But we should not stop on the achieved results. Serious law making work is still ahead of us.


During the years of independence we have achieved widely acknowledged positive results such as successful state building, high socio-economic growth, interethnic and inter-religious  unity, become a rightful member of the international community. 

This was made possible due to concise and specific actions within the “Kazakhstan 2030” strategy, well-knit team of associates, and of course, dedicated work and broad public support of our citizens. 


Based on the above, we initiated the implementation of our new goal - joining the world’s 50 most competitive countries. In my March Address to the Nation, I summarized the priority directions of economic development. Today the Government should have concise action plan for achieving this strategic goal. 


To reach the targets, set out in the Address, we need an effective Government. In “Kazakhstan 2030” strategy I have defined establishment of professional and compact Government as one of our main tasks. Today, as we have passed through transition period  and entered a new stage of our development this task is becoming ever more important. 


That is the reason why I initiated the administrative reform.


As it was said by German chancellor Otto von Bismarck in 19th century “With bad laws and good civil servants it's still possible to govern. But with bad civil servants even the best laws could not help.”


From this point of view, we need to develop precise approaches and deeper measures on modernization of the public management.



We will build qualitatively new model of public governance, where the interest of users of public services will be put first place. Government body should function on principles of corporate governance, transparency and accountability to the public as showcased by best international experience.


After my Address to the Nation in March of 2006 significant structural reforms have been undertaken in that direction.


Starting from the 1st of July of the current year the National Fund and state budget are formed under new rules.

JSC “State Holding Company “Samruk” and JSC “Fund For Sustainable Development “Kazyna” have been established. Their main task is to improve quality of corporate governance of state assets to best international practice.

Based on the same principle we should establish State Holding Company “KazAgro” in the agrarian sector.


We are in the process of forming Social Entrepreneurial Corporations. Days have passed since we launched the first pilot project of Social – Entrepreneurial Corporation - “Sary-Arka” in Karaganda region. By the end of this year 7 Social Entrepreneurial Corporations should be established fully covering territory of the country.


However, today we should stress the content and quality of structural changes.
For further modernization of the public governance, I charge the Government to accomplish the following measures.

1. Improvement of the structure of state bodies.

First. Improvements in the structure of state bodies. Government should decrease the hierarchy of the positions at all levels of governance by excluding some intermediate elements. Decision making process of state bodies should ensure comprehensiveness.


Quantity of political civil servants should also be decreased. 

Functional analysis aimed at excluding duplicating functions between the central level state bodies, their subsidiary territorial branches and local government bodies should not be sporadic but instead should be undertaken regularly. The results of such analysis should form the basis for appropriate decisions to improve the structure of state bodies and decrease the staff number of state apparatus.


Ministerial functions should include development of policies, control over policy realization, political decision making, standard-setting and coordination of activity of their committees.  In their turn, committees of the Ministries should be responsible for policy realization and controlling and supervisory functions. 

To increase the regulatory functions of ministries,  agencies and akimats, their powers and independence in decisions making process should be increased.

The role of the agencies, outside of the Government, should be clearly defined in the public governance system.

2. Increasing the salaries of civil servants
with linkage to definitive work results.

Second. Increasing the salaries of civil servants up to the level, comparable with that one at large local private companies and linking the salary to definitive work results.


In order to create professional state apparatus and to eliminate the corruption, united pay system of state bodies will experience serious amendments.

We need to implement the system of quality assessment of the state body’s activities including assessment of its employees, whilst making the salary dependent on professionalism and effectiveness of the work of the civil servant.


A system of annual bonuses based on the results of rating assessment of state body activities should be introduced for political civil servants.

After forming single system for strengthening  responsibility of civil servants and for assessment of  state bodies activities, Government should prepare proposals on staged increase of the salaries to the levels comparable with the private sector. All money received from the cutting-down of the state machine will be spent on the salary increase. According to my calculations, 30% of the state employees will be discharged on grounds of the stuff reduction.

Within the payroll, special fund could be created to reward administrative civil servants. It should be used to reward for outstanding work results and hiring contract based employees.

3. Achieving high quality  public services.

Third. Achieving high quality public services.
All public bodies should develop and implement standards for public services.


Stage by stage, we need to implement international ISO quality standards, principles of openness accountability to the public in activities of state bodies.


Each state body should form strategic plan of its development, reflecting concrete goals, tasks, actions and perspectives.

To control adherence to standards of public service delivery, internal and external audit system will be established, utilizing systematic conduct of sociological surveys of people and entrepreneurs.


Country-wide implementation of electronic government  will allow to ensure fast access to quality public services by citizens and organizations. 

4. Introduction of the rating and new approaches in budgetary process.

Fourth. Implementing rating assessment of state body activities and new approaches in the budgetary process.

In 2007 we will implement a new system of regular rating assessments of activities of the central state bodies and oblast akimats. This will be done to improve internal management of work processes, raise the effectiveness of state expenditures and to ensure high quality of public services. Introducing this measure will allow to stimulate state bodies to raise effectiveness of their activities.

In budget planning, the accent will be moved from tough budget constraints to result oriented financing. State, industry, regional and budgetary programs should include concrete qualitative goals and indicators of success. The responsibility of the management should be increased and efficient system of control over budgetary spending and execution of appropriate programs should be established. Also, each state body should decrease its administrative costs by increasing the productivity of its activities.

5. Increase in stability, steadiness and  manageability of state apparatus.

Five. Increase in stability, steadiness and manageability of the state apparatus.

The highest administrative civil service position of the State Secretary should be implemented in central state bodies. His appointment by the Head of the State, should ensure the stability of the work of the apparatus.

State Secretary should oversee all internal affairs of the state body, which will allow the top-management to concentrate on the development of policies and strategic issues.

Assessment mechanisms of the work of administrative civil servants should be implemented, as well as mechanism of their rotation between the center and regions.

6. Corruption scale-down

Six. Corruption scale-down. All measures mentioned above and the logic of administrative reform itself is aimed to fight corruption.

 We will continue the work on fight with the administrative barriers, bureaucratic hurdles and excessive number of audits.


Protection of the interests of the small and medium business will be strengthened at the implementation of the norms of state regulation, as well as during their realization.


Work on the transfer of the non-core assets and non-relevant to the state functions to the competitive environment should be finalized before the end of 2006.  

To reduce the shadow economy, we adopted the law “On amnesty in connection with the property legalization”. People should be sure in the confidentiality observance. I, as the Head of the State, guarantee that. The confirmation to that is the experience of the past legalization of the capital. I would request parliament to introduce amendments to the law “On amnesty in connection with the property legalization” to strengthen the issues on confidentiality and extend duration of the legalization period till the 1st of April 2007.

7. Formation and strengthening of
a positive image of civil service.

 Not rarely there is an impression, that painting a demonic image and jesting at the officialdom almost becomes the sign of good manners. However, thank to the work of the civil servants we achieved the results, Kazakhstan is now proud of. Tens thousand civil servants at all levels honestly perform their duties, but, in the range of vision of mass-media, society in general focuses on the examples of different nature.


If we treat the state as a big corporation, then it is obvious, that a reputation of its managers – is the most important capital. We should raise the civil servants using best examples of the highly professional, patriotic and honest service at the middle and lower levels, popularize and show them to the society. I think that the Government should ensure appropriate measures in this direction.


These are the main directions of the administrative reform. Within the next few days I will sign order on the approval of the action plan on realization of the administrative reform, which will require some significant amendments to the legislation.

Moreover, I order the working group on the administrative reform to develop and propose the measures on reformation of the law-enforcement system and budgetary sphere, and firstly reformation of education and public health systems based on the same principles, as the modernization of the administrative system.

Success in the implementation of the administrative reform is dependent on the cohesiveness of all state power branches.
I call you to demonstrate the activeness on the improvement of the legal basis for the administrative reform.



The logic of the entering Kazakhstan to the new stage of its development requires careful consideration and implementation of appropriate reforms of the state governance, political system, and possibly the Constitution.

At the end, we need to incorporate the optimal model of political and public structure of our country.

This is the main goal of the State Commission on the development and concretization of the program for democratic reforms.

Obviously, modernization of the state governance and political reforms will contribute to the consolidation of our society, increase the standing and prestige of Kazakhstan at the international arena.   

This will allow Kazakhstan to become one of the centers of international politics, dialogue of the civilizations, stability and integration in the Central Asian region.

I am confident that election of Kazakhstan as the Chaircountry of the OSCE will allow this respected organization to dynamically and adequately respond to the main threats and challenges of today. Basis for that will be deepened development of the tolerance problematic, inter-confessional and international unity as instruments of resistance to international terrorism and regional extremism.

Dear Members of Parliament!

Today in your legislative portfolio you have draft laws, necessary for the development of the country. In order to occupy the dignified place in the international community, we should act on the front-running. And significant part of responsibility for that, lies on you, dear Members of Parliament.
I call for the fruitful and responsible work for the achievement of our high goal and prosperity of Kazakhstan.

Thank you for your attention.