The president of Kazakhstan N

The  Speech

of the President of the Republic of Kazakhstan N. Nazarbayev

at the First Session of the Parliament of the Republic of Kazakhstan

of the third convocation



Dear deputies and invitees!

Dear compatriots!


First of all, on behalf of all the Kazakhstani people I would like to congratulate newly elected deputies of Majilis. Today you are the winners. And exactly from now on, you may realize your ideas for the sake of our people in full measures. The pre-election rhetoric has gone to the past, now it is time for specific and constructive actions.


The efficiency, quality and paces of further development of our country will depend on the work of the new Parliament in the forthcoming five years. Your legislative activity, as always, must be synchronized with logic and the stages of transformation of our country within the framework of the strategic development policy of the country up to the year 2030.


With the beginning of the work of the new Parliament we entering the next stage of development of the Kazakhstani society, of already mature society, which feels its strengths and potential, orientated on the future.


Almost thirteen years of development of our state are left behind.


During this time Kazakhstan has managed to achieve impressing results.


We have built our state, which has taken its place in the world community and has become an equal partner in either regional, or more global economic and political problem-solving.


We have guaranteed security and territorial integrity of the country.


We are keeping peace and consent in our common house.


We have created market economy and have achieved high economic growth.


If ten years ago GDP per capita was hardly more than seven hundred dollars, so this year it will run up to two and a half thousand dollars. In other words, it is more than three times growth more than!


Next year we are forecasting that GDP per capita will be already about three thousand dollars. It is, certainly, quite a good result. But in developed countries it is twenty thousand and more. We shall try to approach this level steadily.


Three leading international rating agencies have given an investment rating to our country. It is remarkable, that the rating of Kazakhstan is now at the same level as of  the countries, which have recently joined the European Union. In the future we need to achieve the level of these countries and exceed it.


The country’s GDP doubling by the year 2010 in comparison to 2000 is the task we are carrying out ahead of schedule. Under forecasts we can reach it already in 2008.


The GDP growth is not an abstract notion, the growth of level of incomes of the country’s citizens, the state’s potential in the expansion of social programs in public health services, education, and social security are directly bound up with it. And today every citizen of Kazakhstan has felt it already.


And, at last. We have built a new capital in the hart of our country in a record short space of time. Astana admires everyone who sees its transformation. This city became a subject of pride of all Kazakhstani.


But on the whole, it is too early to rest on our laurels yet. The achieved results must become a starting point of the new age of development of our country, of the new stage we enter.


And we must set us higher targets.


Honorable deputies!


Your convocation is assigned to a five years term. Today I have decided to present my own view of what we need to do in the next five years on the further realization of the strategic development of Kazakhstan by 2030.


Kazakhstan must further keep its leadership in the region in economic and social development.


I am totally convinced that Kazakhstan must join effectively the developing countries of the world by creating high standards of life for its citizens, and it must equally integrate with the world community.


What the key tasks do I see in this direction? There are several of them.


The first one is the guarantee of the qualitative growth of educational and professional level of Kazakhstani people.


We have chosen a competitive economy model and have pursued a course of industrial-innovation development of the country. It is strategy of the future.


The great Abay said:  “I you want to be rich – learn the craft ". His words, in my opinion, exactly formulate the ideology of modern informative strategy.


First of all, it is necessary to give the young generation a  qualitative, up to international standards, education, remembering to raise the level of present experts’ skills.


From 2008 we are transforming to a twelve-year education of children, as in developed countries of the world.


But in order to make secondary education qualitatively new, it is necessary to change the status of a teacher. It must be well-paid, and above all, prestigious and essential profession.


In these purposes, from 2006 it is necessary within two years stage by stage to increase the wages of teachers, simultaneously providing a growth of their professional level. And teachers first of all must become a priority of a housing program.


Our schoolchildren must be confident that education at leading western universities is possible for them.


And the Government will help with education payment to the most deserving ones.


Of course, not everyone will get an opportunity to study abroad. But our universities must give essential knowledge up to international standards, so that their diplomas will be acknowledged in the world. Today not everyone, by any means,   has such objective opportunity. That is why we need to start creating a group of elite Universities of the world standard – Kazakhstani Harvards and Oxfords.


By the way, in Japan and Korea, as well as in other highly developed countries the graduates of own Universities are rated higher than those who has got education abroad. It may be a demonstrative example for us.


I think, it is necessary to recruit the leading scientists of the world to teach in our Universities: from Russia, Western Europe, America - more.


Who will tell me, how many of Kazakhstani scientists left the country at different times to teach in the West and Russia? I think, they are ready to help their motherland and we shall create all the conditions for them. I am not saying that there are no prepared, highly educated  professionals and professors here. We need to evaluate their knowledge by contest and see their high knowledge.


In the forthcoming years it is necessary to increase the number of grants and credits on education every year, on the assumption of real needs of the industrial-innovation development.


While carrying out a balanced international and language policy during the years of independence, we have obtained true freedom and equal language rights, ethno-cultural interests and need satisfaction, true mutual respect in the nation’s dialogue and high culture of the interethnic reality. And we need to value it.


We have managed to transform into the true standard of life and oracle of our reality. Not without purpose, the partners in CIS actively take our experience.


I have continuingly speak and ready to repeat that I wish to see the new generation of Kazakhstani people trilingual – easily using Kazakh, Russian and English.


As we see, the language status is not the reason: the strong world positions of English, the status of which is not set in at the legislative sphere of our country, is promoting itself more earnestly than we.


We do not need to go far for the examples: in Europe among the seniors in high schools and University students it has become a norm to speak different languages unconstrained. We sure need to come to it as well.


Thai is one of the reasons of the competitiveness of the state economy and nation.


The second. We need a healthy.


I have recently approved the state program of reform and of public health service development by 2010.


From 2005 we need to provide free medicinal assistance to toddlers from one to five years old and children and teenagers who are on dispensary register, and pregnant women.


We have to proceed to annual free preventive medical examination of grown-ups. It is necessary to provide with necessary conditions if the medical institutes for this.


We have begun to overcome the negative tendency of the population decline.


This year we have again reached fifteen million line, due to natural increment of population as well. On the whole, there have become hundred and eighty thousand of Kazakhstani people more. This is a good starting tendency. But the problem remains, and the questions of birth-rate and death-rate, firstly, of infant and maternal mortality must be under constant attention.


In the forthcoming five years it is necessary to provide entirely for the needs in T.B. prophylactic centers and maternity homes to repair fast the multiple-discipline hospitals.


It is necessary to intensify doctor’s responsibility, to raise their social status and prestige in the society. It is necessary to raise the salaries starting next year stepwise during the two following years, as to the teachers.


Apart from health service development, we must intensify healthy mode of life popularization, develop physical training and sport and the system of prophylactic service.


We shall strive for the nation’s health security in this exact direction.


The third. The nation’s strength is in its ability to care of those, who cannot work and get their incomes due to the age or a state of health.


On the whole world with economic growth the Government starts to pay more attention to social security problem. With this view a program of further intensification of social reforms by 2007 has been worked out.


We must create a financially stable, economically effective, socially fair three-level system of social security and distribution of the responsibilities between the Government, the employer and employee. This is a world practice of the countries with the best systems of social security.


Nowadays all the rates of social payments are counted depended on the monthly rated index, which does not reflect the real minimum of the socially necessary level of the vital goods and services. That is why, I consider necessary, starting from 2006 to calculate all the social payments on basis of the basic social index-living wage, by improving the methodology requirements satisfaction and ensure the growth of pension payments in further rise.


In the long-term perspective of the most topical problem of the pension system is ensuring of pension adequacy at the expense of pension accumulation.


There is a problem of low pensions for women and the self-employed people, whose deductions to saving pension funds are insignificant.


That is why, now it is necessary to put some certain social guarantees into the pension system, allowing to increase a level of pensions.


With this purpose I propose over-existing, universal monthly payment to pensioners, irrespective of their work  experience, earnings and the rate of the pensions, or so-called basic pension. Its rate in 2006 must constitute 20 percent out of subsistence wage, or about 1500 tenge.


In subsequent years we have to make it 70 percent out of subsistence wage.


In order to protect motherhood and childhood, additional support of families with children, stimulations of birth-rate, as well as of the improvement in demographic situation I suggest the following:


As you know, from the last year, lump sum grant due to a child’s birth is being paid up.


Besides, from the year 2006 is necessary:


- to introduce monthly allowance for children under 18 years of age, to needy families, removing them from a contingent of state address social aid recipients.


- to increase specialized state allowance to mothers having four and more common living minor children, and to mothers, having awarded  been orders as "Altyn Alka", "Kumys Alka" or "Materinskaya Slava" (Mother Glory) of the first and second degrees twice as much.


From the year 2006 we must the state allowance for children’s care until one year.


Do you know that according to my Message, from the future disability pensions of all categories will significantly be increased. For example, the disabled person of the first group will get  10.000 tenge.


To all additional measures of social support which I offered war-veterans, in connection with a jubilee of Victory, I consider next year it will be reasonable to envisage a right for getting special state aid in the rate of one month payment index.


State social policy is directed for ensuring minimum standard of support for those who unable to work. I emphasize, the state must render minimal support to those, who cannot work, it must not be lower of living wage, it must be higher. We must take our citizens out of the level of living wage and make it a little bit higher. And those who are able to work will get an additional income to this minimum, at the expense of their deduction to insurance funds.


Our three-level system of social protection exists in the whole world and we will be proud of it, if we really build it.


I am convinced that we must not stimulate dependence. Our policy directed on stimulation of a man to labor and so he will be able to provide his or her old age himself.


The fourth. We started realization of unprecedented on a scale, aiming for a long-term perspective of housing program.


It is based on generally recognized effective market mechanisms (mortgaging, system of building savings), as well as the measures of state stimulation for growth of demand for inexpensive reasonable to population housing.


The program is planned for three years. For this period we have to build about twelve millions square meters of housing, and it means that 195.000 families will acquire new apartments.


In these years it is necessary to built 5.000 new apartments for socially protected groups of population.


The main priority for coming years is becoming diversification of economy.


Another not less important task - dynamical development of sector for the small and middle enterprises.


Today our middle class is formed especially among them, which is mainstay of stable development of any state.


I suggest two directions of our actions until 2010 and for a period to 2015.


First. Industrialization.


It is a development of economic sectors, today defining economic potential of the country (oil-gas, metallurgic sectors), laying stress on introduction of higher repartitioning, and formation of new industrial clusters.


We have a significant potential of development in machine building engineering, chemistry and oil-chemistry, building industry and light industry.


Perspective direction - processing agricultural production and formation of agro-industrial clusters, in particular cotton and vine-making in South Kazakhstan.


Second. Formation and development of breakthrough "points" for creating qualitatively new economy, economy based on knowledge.


In the nearest future Kazakhstan has to become a service-technological center of the region, orientated towards production of the hi-tech goods and services for attending to neighboring, quick-growing economies.


An example of such countries as Canada, Austria which border on the greatest industrial countries of the world as we do, must be a model for us.


And our potential today – financial, telecommunication, transport, commercial and information services orientated towards export.


Almaty has all possibilities for creating international financial center specialized in granting wide spectrum of financial services of international class, both for Kazakhstan, and so for all the region.


A separate direction is to ensure breakthrough in the field of space activity and it is necessary to accept an appropriate program by the end of this year.


Annually the World Economic Forum prepares a report on global competitiveness of states according to many parameters, such as state of macro-economical environment, development of public institutions.


Surprising though it may seem, but Finland is the first one on the list, outstripping even the USA by its potential of national competitiveness, and within recent years due at the expense of to active introduction of new technologies and innovations, it is in the number of more dynamically developing countries of the world.


Next year Kazakhstan will be examined in this report as well. I think, we have to set an ambitious task - to be included in the number of 50 countries heading this list.


By my instruction, at present, work on defining more competitive sectors of our economy on the regional and international scale, markets evaluation is being carried out.


Our task is to develop maximally such branches and spheres of services which will be able to master not only home market, but appear and consolidate on the regional market. And this is all Central Asia, Western China, Siberia, Urals and Povolzhye of Russian Federation.


In the forthcoming period taxation policy of state must be directed for realization of forenamed tasks.


It has to be orientated towards stimulating of elaboration and introduction of new technologies, replacement of worn-out basic funds, through changing of amortizational policy, introduction of system of international quality standards and ecological management ISO 9000 and 14000.


Transition to an active realization phase of industrial-innovative strategy demands from us intensification of institutional possibilities and effective interaction of the institutes of development.


Today we have achieved success in comparison with the states of Commonwealth on the rate of economic reforms, including a financial sector.


First of all, it is stipulated successful conduct of economic reforms, the state of public finance and presence of the National fund.


Development of financial system must be continued.


Stock market does not work properly. Its role as of important link of economy, ensuring organized moving of financial resources from potential investors to loaners.


The ways of the development stock market are already known. The Government and National Bank must drastically overcome emerging problems and in conformity with the lag in development.


Development of investment banking, creation of venture funds being seen to be perspective.


For developing small business, first of all, it is necessary to expand the network of micro-credit organizations in a village.


Today the main part of credits which are basically allocated by the banks for financing projects of privileged large companies and affiliated with the banks of industrially-trade groups.


Why do our banks so miserly credit small and middle manufacturing business?!


In the previous years with the purpose of financial sector’ formations, as a flag-ship of our economy, privileged conditions were created.


And we must and will demand from it a real performance.


There are investment resources in economy today. Asserts of the banks, pension funds, insurance companies are working rapidly, but they are not working in a sufficient way for long-term purposes.


In the light of tasks of industrial-innovation development, it is necessary for financial institutes to enlarge crediting of investment projects in real sector of economy, to introduce new financial instruments, available to all subjects of the market.


It is necessary to enlist asserts of pension funds for development of our economy


As you see, there are a lot of tasks and no grounds for euphoria.


Further demonopolization, ensuring of equal conditions of economic management for enterprises of all the forms of property, development of healthy competition - is a condition for developing our economy, first of all, small and middle businesses.


Kazakhstani economy today is characterized by high degree of concentration. About ten mega holdings are controlling practically 80% of all the GDP of Kazakhstan.


These holdings apart from their main activity are implementing a whole number of non- profile functions through their enterprises, which lead to the inefficiency and absence of transparence of their activity.


As a rule, they are against appearing of competitors, and that is why they have become brakes on the development of small and middle businesses. As a result, evading taxation and transfer pricing, problems in realization manager-shareholder, presence of barriers to the development of stock-market, small and middle businesses. That is why we must conduct a big and decisive work on transferring non-profile functions of mega holdings to small and middle businesses through taxation, including other public levers of impact.


I commission the Government to submit specific proposals on this issue.


With conduct of this work it is necessary to single out strategic, important and large state companies into a separate block and to transfer control over their share packages to the specially created state holding company.


This must ensure their professional and efficient management, working-out of an efficient strategy of development, consolidate uncoordinated actions of state companies and to optimize their expenses.


All our plans can stay unrealized until an entrepreneurial initiative will not create favorable business climate which will contribute to the rapid growth of a number of competitors and the intensity of rivalry. Branches producing final-product, generate competitive supporting branches – it is an axiom!


At present on my instructions, a complex program by the year 2010 has been worked out, which is aimed for dimensions reduction of shadow economy, motivation enhancement of law and natural persons to legalization of business.


In the number of measures stipulated by the program - one of the main directions must become an improvement of state solving system within the framework of implementing works on debureaucratization of  the managements.


The state must help, rather than hinder.


For reducing different bureaucratic procedures in interrelations between the state bodies and entrepreneurs, it is necessary to accelerate creation of Electronic Government.


The sate should continue transfer of its functions to a market environment, connected with rendering of various competitive services, including payment.


Apart from realization of forenamed measures, it is necessary to develop the complex of special measures aimed at eradication of corruption in the state administrative authorities.


As it is known, Kazakhstan became the first one among the CIS countries when passed a law On Struggle with Corruption in 1998 and built up a slender system of struggle against this social evil.


As a result of taken measures, law-enforcement bodies began to investigate such criminal matters and courts started to take legal actions against those who were guilty. And we know that situation in this issue is much better, than at neighboring countries.


However, it is early to calm down, we need a system work, especially of prophylactic character.


In this connection it is necessary to put the whole institute of state service into the rigid anticorruption frameworks of functioning.


This process must be accompanied by system improvement of our state service, reduction of not characteristic to state authorities functions, especially solvable and distributive, stage-by-stage scale up wages of state service employees, as well as the further improvement of all the state service.


In this connection the issues of legislative ensuring of this direction of state policy must be insight the deputy corps as well.


Advancing on the way of market reforms in economy, step-by-step we moved on the way of political liberalization:


- we have provided real political pluralism;


- competent political parties, possessing real social base increasing their role and influence in the elective process. A number of new parties of different ideological and political orientations were registered;


- the state institutions work on the basis of the principle of division of powers. Effectively acts two-Chamber Parliament, where the most various political parties were represented, including oppositional as well;


- an active, goal-directed work on a reform of interbudgetary relations, on decentralization of system of state administration is being already conduced;


- laid the strong legal and organizational foundations of creation  independent judicial system, humanization of criminal punishment. We acceded to international conventions on human rights;


- equal relations between all ethnic and confessional groups of the population were really provided;


- a real freedom of speech is provided – over 2000 different means of mass-media acts, absence of censorship, the sphere of mass-media is being developed by stable rates.


It is absolutely naturally, that especially at present stage of developing reforms, when positive economic transformations have become irreversible, we have put forward a new program of political modernization.


It was set forward in my address at party congress "Otan" and obtained support of majority political forces of the society. But in the pre-election period the work in this direction was suspended. Now it is necessary to start carrying out of practical tasks on further liberalization of society.


As you know, according to my Decree, a National commission on issues of democracy and civil society was created. I want any positions and points of view including alternative and oppositional, not to remain without attention.


This commission is a kind of site where various variants of political modernization of the country within the frameworks of Constitution and laws in force, must be set forward and discussed.


All the constructive proposals which were set forward will be considered as by the head of the state and so by the Parliament to the most attentive way. While working in composition of this commission doors remain opened for all the party-political forces of our society.


We should further take measures on legislative improvement of our judicial-legal system as guarantor of irreversibility of reformatory process in our country.


Taking into account, that courts are the main link in the mechanism of protection of human rights and freedoms, should provide transparency of judicial procedures, justice and impartiality of judges, to democratize selection procedures of judicial personnel.


The question of introduction jury is particularly emphasized in this direction.


We should take appropriate decisions on introducing this important institution, which allow providing large impartiality and the justice in judicial decision making, especially on particularly dangerous types of crimes.


It is necessary to raise authority and rights-protection possibilities of the Authorized on human rights.


For a short period of the activity in Kazakhstan the institute ombudsman’s institute demonstrated itself as a fairly efficient and perspective instrument of protection of human rights and freedoms. We must give it legislative possibilities for the further disclosure of its rights protection potential.


An important institution of rights protection is the Bar as well. Practice shows a necessity of increasing its role at all the stages of criminal and civil process. And namely lawyer must become the main legal adviser of every citizen in his everyday life, moreover not necessary in any extreme legal situation.


If to speak on foreign policy of Kazakhstan, then its fundamental principles remain unchanged.


Versatile policy, pragmatism, constructive approach, dialogue and cooperation - that strengthened a reputation of our state as a responsible partner in the world community, and was subdued to the interests of internal development.


Validity in the adopted course in the conditions of mounting problems and challenges of globalization epoch very distinctly seen. Together with you we have sharply perceived how the world changed in XXI century.


The issues of security were put on the agenda which can be ensured with only common efforts of the world powers in partnership with other states. Such a dialogue is especially important namely today, when we faced a necessity of solving two serious problems as struggle with international terrorism and settlement of regional or local conflicts.


In conditions of unstable foreign-policy situation we should not relax our attention and the legal issues of ensuring national security, struggle with extremism and terrorism, ensuring law and order.


It is necessary to raise quality of our laws. Only in this condition stability of legislation will be provided. More than once we were the witnesses of that, when a mass of amendments were submitted into already passed laws. We have not got rid of this legislative "disease" yet.


There are some problems, connected with the lack of laws of direct action and countless sublegal acts, misinterpreting or completely substituting the will of law-makers are submitted instead of them. That is why the Parliament has to tackle this task as well together with the Government.


An important factor of ensuring effectiveness of legislative activity, as it was before, is the achievement of mutual understanding between the Parliament and the Government. And this factor the basis of creating balanced regulators of legislative process.


Basically, such mutual understanding was achieved by the previous members of the Parliament. I hope for your further constructive work with the Government. I am convinced, that confrontation between the branches of power hinders the reforms, and then does not serve as a matter of prosperity of the country.


Ministers must be personally responsible for the quality of introduced draft laws and in case of necessity to uphold them in the Parliament. Because one of the postulates of present administrative reform is exemption of the Ministries from control-supervision functions and the functions of rendering state services.


Henceforward they are in charge of one ministry and one task – carrying out of strategic functions providing the formation of the state policy, and in the first place it means paramount attention to law-making work, in which this state embodied.


Honourable deputies!


In my speech today I tried to show you the scales of great work which you have to perform in the walls of Parliament.


All that I have said is directed for fulfillment of global tasks, and consequently, adopted appropriate laws and resolutions of the Government. I hope that in five years time we will be able to say each other: We have done everything, what we planned, and life of Kazakhstani people has become more prosperous and safe.


Lay the foundations to the next stage of the development. I can assure with optimism that within a period of decade, Kazakhstan will become the country our citizens will be proud of.


To realize it we have to do a lot in prospect.


We shall have different points of view on tactics of pursuing reforms, terms and mechanisms of their implementation. But we have to unite for common progress and future of the country.


Our generation has a unique chance to choose the correct trajectory of development and to lead Kazakhstan to the number of developed and prosperous countries of the world. And to achieve it we need consolidation and unity, stability and peace.


I think, that people of Kazakhstan will support us in these initiatives, display wisdom, and then will see these plans to be implemented.


I wish you successes!


I declare the first session of the Parliament of the third convocation opened.


Astana, 3 November, 2004.