Performance of President РК of N

The Speech

of the President of the Republic of Kazakhstan N.Nazarbayev

at opening the second session of the Parliament of the Republic of Kazakhstan




This year as you know, is noted by several, I would tell, notable events in a life of our state and development of the Kazakhstan parliamentarism.


I would particularly note among them the tenth anniversary of the Constitution and the tenth anniversary of the Assembly of the people of Kazakhstan.


The Parliament as well will celebrate its tenth anniversary entirely soon. Actually we did not exercise an experience of parliamentary activity in its modern comprehension. We looked for and found the balance of public interests, adjusted a system of checks and balances in our state. This particular time the legislative basis which provided success of liberal reforms was incorporated also.


It’s my great pleasure to welcome deputies and those who worked in Parliament all these years. I want to wish to acting deputies as well as members of Parliament of former convocations a success in their work for the welfare of Kazakhstan.


These 10 years became a history already.


I. We are on a correct way: some estimation of the results of the national discussion of the Address of the President of the Republic of Kazakhstan to the People of Kazakhstan and the international community’s reaction


Hardly more then half a year has passed since time of my Address “Kazakhstan on the Road to Accelerated Economic, Social and Political Modernization.” You know, that recently I have visited the majority of regions of the country, meeting people in city, and on village, at the enterprises, and in the universities. The Address has practically left nobody indifferent.


What is basically worry people today in their everyday life?  


First of all, people certainly were interested in the further improvement of the life quality, their personal perspectives, stability of a society. Each person in fact estimates efficiency of the reforms primarily from his own positions - how does he live, earn, study, what are the prices, the prospects of his family, his friends, and a society as a whole.


All remarks expressed during discussion of the Address, are taken under the control of the executive bodies. Concrete measures are already developed and taken, and the results are visible.


Nevertheless, many practical problems still demand their decision, and they should and, I am assured, will constantly be in the center of attention of the Governments and Parliament, and local authorities as well.


Secondly, perhaps, particularly important result for me of the national discussion of the Address became that wide range of problems which have caused an interest of our population stretches far from the frameworks of their everyday life.


It is essential to emphasize issues and constructive offers on the support of a small and middle business; fair social policy including living conditions, three-level system of pension accumulation; about education of our children and retraining of personnel; struggle with corruption; modernization of agriculture; modern character of the judicial system, etc.


Practically everybody is excited with providing stability and avoiding disorders problem which, unfortunately, have occurred in the neighboring sister nations.


All range of proposals and wishes will be considered during the establishment and realization of our concrete plans.


Open public discussion which, undoubtedly, is need to be continued and deepen, has proved that Kazakhstani people relate their private prosperity with the development of all-nation prosperity and increase of its international prestige. And, as always, we can well rely on their support and active participation in the planned reforms.


Thirdly, perhaps, for the first time our plans of further public transformation were so narrowly studied and estimated by the international political and business community. Ideas of system modernization of Kazakhstan were actively discussed at various international conferences, including seminar of the J. F. Kennedy Faculty of the Government, Harvard University, Boston, and conference of the Asian Society of the USA in summer in Almaty, as well as the other competent forums.


Dear deputies!

Dear ladies and gentlemen!


As you already know, after promulgation of the Address we have received support and specific proposals from many world leaders, heads of international organizations and business world.


I am grateful for such sincere and interested participation in the future of Kazakhstan, and would like to thank once again the President of Russia Vladimir Putin, the President of the USA George Bush, President George Bush-senior, President Bill Clinton, and also congressmen and senators of the USA, the President of France Jacques Chirac, the Federal President of Austria Hants Fisher, King of Spain Juan Carlos, the Prime Minister of the Great Britain Toni Blair, the president of Korea Ro Moon Hen, the Prime Minister of Japan Koidzumi, whose advices and recommendations are very important for us. I am grateful to everyone who has friendly supported my ideas of the further modernization, and I can not list now all names, since a vast number of letters were received. We, Kazakhstani people, appreciate such commitment and support of our reforms and understand that such benevolence became possible only as a result of our indisputable successes.


Kazakhstan becomes more and more interesting to the world community as a perspective and reliable partner. The international community observes our achievements, expecting effective decisions for regional and international stability and security.


Necessary to say, that our nowadays successes as a basis of a new stage of historical transformation of Kazakhstan were incorporated in 1997 yet. We have accepted then the Strategy of the Development of Kazakhstan till 2030, indicated a model of our development and declared Kazakhstan’s mission in the world of globalization epoch. Seven long-term priorities of state development were chosen at that time. Their consecutive realization has provided success of the started liberal transformation. And has created necessary and sufficient starting conditions for further economic, social and political modernization as well, which beginning I have declared in the Address to the people of Kazakhstan in February of this year.


II. Our strategy and the main issue of accelerating development of Kazakhstan at present period - a harmonious combination of economic, social and democratic transformation


Carrying out articles of the Strategy till 2030, we already made a lot, and did it by anticipatory rates. It is seen and felt by all Kazakhstani people, and is also admitted by the international community.


As it is noted in the Address of the President George Bush, "stability and prosperity experienced by your country, became model for other countries of the region".


Consideration must be given to the world that was unrecognizably changed during last fifteen years and continues to vary in our presence.


Modern challenges compel the political and spiritual leaders of the countries and nations to search and choose the optimal, from their point of view, model and strategy of social development.


Kazakhstan was already defined in its choice. And the problems worded in my Address, and philosophy of social development of Kazakhstan has confirmed its vitality and availability. I think, they are simple and comprehensible for everybody.


Kazakhstan is firmly based on a modern and competitive economy, constructing an open, democratic and prospering society of free people, a lawful state which is a respected and a responsible member of the international community. Constructing the state where the important features and traditions of our multinational and multi-confessional society are harmoniously considered.


The main issue of our accelerated development at the present stage is a harmonious combination of economic, social and democratic transformation with the regard for interests of our people and security of the country. This combination should preserve political stability for the sake of the further strengthening of independence and development.


James Wolfensohn, headed the World Bank for a long time, has written to me: "The main issue in the nearest future will consist in the practical realization of the Address, and it makes the Government of Kazakhstan fantastically responsible for it".


Today, 6 months later, it is time for us to estimate together the first practical results of the implementation of the Address.


III. Practical results of the realization of the Address in the economy and our nearest future plans: diversification of the economy, development of no-raw branches, protection of a small and middle business, the introduction into the WTO


Let's begin with the economic issues, because I am firmly convinced: it is impossible to establish an open, free and prospering society and to create high life standards for the citizens on the basis of weak, dependent and outdated economy, without a predominance of the middle class.


And we can achieve it only in that case if the nation and economy will become competitive.


As you know, an overall diversification of the economy, anticipatory development of no-raw branches, development of the small and middle business, the introduction into the WTO are the basic priorities we selected at this stage.


The government already accepted proper decisions on establishment and development of seven approved pilot clusters. I have signed the Decree on the establishment of the "Ontustyk" special economic zone, which will provide favorable conditions for development of the textile enterprises in our country.


64 projects were realized within the frameworks of the present industrial policy from the beginning of 2005. Till the end of the year it is planned to realize 169 various projects.


Within the frameworks of the industrial-innovative strategy 103 investment projects are approved to financing by the institutes of development for a total sum over 2 billions US dollars. 62 projects are financing currently for the sum practically in 1 billions US dollars.


We have seriously stake on the development and strengthening of the initiative and freedom of the small and middle business now. And here are our practical actions.


Firstly, changes and additions were submitted to the Tax Code improving a special tax procedure for the agents of small business. Now the draft of law is on consideration of the Senate.


Secondly, the Government accomplishes the working out of two drafts of law On Entrepreneurship and On Submission Changes and Additions in Some Legislative Acts on the Entrepreneurship. I suppose, these laws at the earliest possible date will be submitted into the Parliament, and you, Dear deputies, with the possible responsibility will consider them in order to these drafts became already laws this year.


Thirdly, Fund of the Development of Small Business, as well as it was planned, was allotted 10 million tenge from the budget. I have a great confidence it will also assist to develop a small innovative business.


Fourthly, there is an accomplishment of transfer of the no-profile functions of the state enterprises to the competitive surroundings. The decision on reorganization of 19 republican state enterprises is already accepted. Oblast akims are recommended to transfer over 800 no-profile functions of the municipal state enterprises to the competitive surroundings.


As for strategically important national companies the Council on Economic Policy has already approved the Concept of Establishment of the State Holding Company under which government the infrastructural companies will be transferred at the first stage.


The Law on the State Regulation of the Development of Agriculture and Rural Territories, which will allow developing the agro-business in the country according to the logic and requirements of the XXI century market, was adopted by Parliament and signed me.


I would like to pay attention once again to the necessity of the system, and at the same time accelerated actions on the joining of Kazakhstan to the WTO.


It makes, in particular, special demands of increasing specialization and competitiveness of domestic agricultural production. And we will be in agreement only in case of industrialization of the agrarian production, realization of cluster initiatives in production and processing of agricultural raw material. It is necessary to draw attention of a private sector, to involve credits and investments exactly in this sphere.


IV. Further optimization of the Kazakhstan’s power policy and consolidating the role of our country in ensuring the international power stability and security


We emphasize the development and realization of the Kazakhstan’s power policy and further development of this basic and system-defined branch of the economy.


The first. The long-term State Program of the Development of the Kazakhstan sector of Caspian Sea is developed and consequently realized. The further basic growth of the oil and gas production is expected, first of all, in the water area of Caspian Sea, which share in the total world extraction can grow twice the nearest 10 years.


The first contract on the Kazakhstan sector of Caspian Sea was concluded on the largest Kazhagan deposit, which commercial extraction is expected to begin in 2008. Should note, that Kazakhstan, having redeemed over 8% shares at British Gas, acts from this year as cooperator of the project along with such largest transnational companies as Exxon Mobile, Agip, Konoko Phillips and others.


This July the Agreement on devising the production on the Kurmangazy project is signed between the Ministry of Power and Mineral Resources, KazMunayGas and the RosNeft companies. Extracted resources of the Kurmangazy structure are estimated in 980 million tons by experts. Negotiations concerning other blocks within the frameworks of the program of developing the Caspian Sea shelf are continued, and Kazakhstan intends to reach a level of 100-150 million tons of oil extraction annually during the nearest 10 years.


Experience of the rich-oil countries suggest to that we should establish the viable economy without dependence on raw materials. Particularly, that a record-high oil prices can cause a crisis of the world economy. And we should carry out a competent macroeconomic policy with the regard for this factor.


Realization of the State program will allow exporting already 2 million barrels daily in 2010, and in 2015 - 3 million. Thus the capacity of the extracted passing gas will be about 100 billion cubic meters a year.


The second. I wish to emphasize, that Kazakhstan always spent and is purposed to carry out the further open policy of using its own natural resources and a transparent policy of cooperation with the transnational companies, working in Kazakhstan from the moment of its independence. The Republic of Kazakhstan has proved its adherence to the stability and observance of the signed agreements’ conditions. This circumstance allowed creating good conditions for attraction and constant growth of the foreign investments.


The third. Kazakhstan treats with full responsibility its new role in ensuring the international power stability and security.


We consider important consistently realize our country’s geographical and transit advantages. Without the decision of a problem of the energy carriers’ transportation on the world markets our resources will cost nothing.


The large infrastructural projects which will allow diversifying and providing stable channels of delivering power resources of Kazakhstan on the world markets are actively studied presently.


V. Prescheduled implementation of the Address issues in the social sphere and directions of the further work


In the February Address it was declared, that on the basis of the modern market economy we build socially-orientated state and a society.


What practical steps are undertaken in this connection in the last half a year?


The first. First of all, since July the first package of social reforms estimated till 2007 started to be fully realized.


This year budget guarantees and carries out a growth of the basic salary scale. The minimal pension payments made up 9 200 tenges, and the average pension, taking into account a base pension, exceeded 12 000 tenges. Salary of the personnel of a budgetary sphere and civil servants has increased for 32%.


The second. Grants to disabled persons of the first, second and third groups, to disabled persons in age till 16 years were raised.


The third. To disabled persons and participants of the War the special welfare payments were raised, and by the 60th anniversary of the Victory Day one-time welfare of 30000 tenge was rendered.


The fourth. The housing issue is solving rapidly. For construction of municipal habitation for the least-provided groups of population the oblasts are allocated 6,3 billions tenge from the republican budget. Over one and a half thousand apartments for this category of citizens are already under construction. Besides, 42 billions tenge of crediting akimats for construction of available habitation is allocated from the republican budget under the program of the mortgage crediting.


Realization of the Housing program will provide with apartments about 1 million citizens of the country. The country today experiences a building boom; the rates of the commissioning of habitation have grown twice.


The fifth. Transition to a three-level system of pension accumulation and the obligatory individual medical insurance will allow radically changing the life-quality of the aged citizens in long-term view.


The sixth. Since 2005 the State program of reforming and developing the health services of the Republic of Kazakhstan for 2005-2010 is realized.


The improvement of the quality of the health service system will be reached by the emphasis on the equipping hospitals, the children's and obstetrical organizations with the world-best medical techniques and products of medical purpose.


Now there is a construction of 13 large medical objects. Charges on public health services this year have grown more than on third in comparison with 2004, and their share in GDP will be 2, 7%.


The seventh. It is supposed in the macroeconomic policy to define criteria of the further payment growth in coordination with a labour productivity growth and the inflation influence on its growth in the country. It is important, as only in this case the incomes growth will really raise the population prosperity of the country.


Thus, all promises in this part I have executed. But there are still plans which also will be certainly executed.


I have enough political will, you know it.


VI. Course on creating conditions for modern education and retraining of personnel is a determinative factor for success of the accelerated modernization strategy of Kazakhstan


The determinative factor, which will define a final success of the modernization strategy of Kazakhstan, is a modern education, training and retraining of personnel. It is not necessary to convince anybody of the truth of this statement.


The first. Training of our students is needed in a new approach.


As you know, since this year three thousand the best students of our universities have an opportunity to perfect their knowledge by training in the leading world universities. Necessary financing for realization the Bolashak program is allocated from the republican budget.


Some our universities, such as Kazakhstan Institute of Government, Economic and Strategic Research (KIMEP) and the Kazakhstan-British Technical University (KBTU), meets the world standards.


Those, who continue to study in Kazakhstan, will be provided the opportunity to listen to the lectures of the best foreign professors which we intend to invite to Kazakhstan constantly, as I already mentioned in the Address. Only for two universities, the Eurasian National University and the Kazakh National State University, 2 million dollars are allocated on these purposes.


More than twice were raised grants to the students of the universities and students of the secondary special training.


600 million tenge, as well as it was planned, are already allocated for realization of the state guaranteeing system of the commercial banks credit to students.


This year we started to realize a rather impressive social protection package of the students.


New favorable conditions for the professional training and retraining of the teaching staff are created. We shall solve their social and economic issues as well.


I think, that already today it is necessary to solve fundamentally the problem of utilizing knowledge, received by our talented young experts, as much efficiently as possible.


The second. We can not manage without our own the National administrative school, and it is necessary to establish it using the best experience of the other countries. We should have a well thought-out system of training the future leaders of the country as, for example, in Harvard or the West-Point.


For that reason the state assumes more and more significant charges for providing country with modern and globally thinking managers, and the economy – with a new knowledge.


In 2005 the charges on education were grown on a quarter in comparison with 2004, and their share in GDP will make 3, 9%.


The third. Started work on expansion the conditions for training and retraining of modern experts and employees of the professional and specialized training system demands constant attention and support from the state.


The first training and raising the level of professional skills Centre for experts in the oil-and-gas sector is created in Atyrau oblast. I have visited this object: it is a system of a professional training of tomorrow. And this experience is very important for dissemination to other sectors of economy. Here once again I wish to raise an issue on conditions for studying English as an important precondition of the full inclusion of our entrepreneurs into the international division of labour.


The fourth and last, that I would like to mention in this connection. At this stage not only the state, but also our business community should show a concrete concern about establishment of a modern education system and professional staff training.


Therefore I consider, that the Government, and the Parliament at participation of the recently formed the Entrepreneurship Council must generate an additional incentives - both economic and public - for our big business. It is necessary to encourage its investments into the human capital, in other words, actually, in their future.


And all this is only the beginning of the entire program of the radical reconstruction of our educational and professional staff training system according to requirements of the XXI century.


The Government should work in this direction actively and according to modern demands.


VII. A started political reforms as a strong basis for accelerating a democratic progress of Kazakhstan


In the February Address I have offered an entire package of the initiatives directed to the further development of democracy of our society and respective modernization of the state political system. A concrete realization and a large scale public discussion as well were started.


Today we can already speak about the first, but the important practical results.


In the current year May I signed the Decree on the Measures of Further Using the Potential of the Constitution of the Republic of Kazakhstan. Under it an appointment of the ministers of the social and economic block, heads of diplomatic missions, the chairman and two members of the Accounts committee will be made only after preliminary discussion of their candidacy in the profile committees of Parliament.


1. The Central Election Commission presents offers on the elimination of defects of the election legislation. Alongside with the recently accepted changes and additions to the Constitutional law On Elections, the new offers of the regions, the ministries and departments, political parties and the nongovernmental organizations are considered there.


2. As to reform of the executive power, a draft of law providing more effective differentiation of powers between the levels of the state government is now considered by Parliament. A parallel analysis of the already accepted decisions on a given issue is spent, with the purpose of creating optimal conditions for the local self-government considering the world experience.


3. Measures on ensuring the transparent activity and the accountability of the executive power are undertaken. In April I have signed the Decree regulating reports of akims before the population. This work yields indisputable results and will be continued. It is significant, that 80% of the issues stated on the reports of the akims of all levels, were already resolved.  


4. We conducted in August experimental elections of the akims of the rural areas. It is certainly prematurely to estimate now their results, but subsequently they will define algorithm of this part of the administrative reform.


5. The Ministry of Justice developed and submitted to the Government the draft of laws adjusting the introduction of the Jury institution, takes measures on increasing role of the Bar within the frameworks of the legal proceedings and at a stage of the execution of court decisions.


6. Should tell, that issues of reforming the judicial system within the frameworks of the modernization and political democratization were discussed at IV Congress of the republican judges. The problems of simplification of the legal proceeding and ensuring of its objectivity were actively discussed. You know, that the draft of law On Changes and Additions in Some Legislative Acts Concerning the Differentiation of Jurisdiction was already submitted to Parliament in March. On results of the Congress of judges the Supreme Court together with you should now finish this draft along the way. It is assured, that the Parliament will accept it already at this session.


7. As you know, now under the initiative of the National Commission on Democratization there is a discussion of the project of the Concept of developing a civil society in Kazakhstan. This work approaches the end, and its results will be discussed at the second Civil Forum.


8. The nongovernmental organizations should play an important role in defining and practically realizing the reforms planned in my Address. They already bring today a solid contribution to the development of a civil society, ensuring the rights and freedoms of citizens, evolution of the democratic process, charity, education, etc.


Thus, the first practical results, reached for only half a year in the sphere of democratic reforms, are quite obvious, as well as the trajectory of our further movement to the enlargement of democracy in the Kazakhstan society.


VIII. Enlargement of public discussion and realization of the National program of democratic transformation


All this allows me to offer today for discussion and the following realization the further measures on realization of my Address concerning the National program of democratic reforms. This program will cover a six-year period, from 2006 to 2011, and its practical implementation will be consistently carried out during two basic stages: from 2006 to 2008 and from 2009 to 2011.


Concrete parameters of this Program should be extended, specified and spent on the basis of a large-scale public discussion.


Developing positions of the Address concretely, I offer the following directions of enlarging democracy in our society, which we should discuss, concretize and realize with the participation of all members of our society:


The first. We must develop steadily the local self-government, to differentiate powers between central and local executive bodies, and also institutions of local self-government.


We shall actively develop the normative base and "social mechanisms" of local self-government and to strengthen powers of basic levels’ akims.


- Lies ahead to generate a new, more effective system of inter-budgetary relations.


- Besides we can expand considerably at the initial stage the powers of maslikhats, particularly regarding control of the akims activity. Akims of the all levels should report annually to the population about the results of their work.


It is necessary for achievement of these issues to pass the Law on Local Self-Government in 2006 and to develop the state program of its development.


For the effective introduction of the local self-government it is necessary to think about the establishment of a special body - Committee on the Local Self-Government Affairs where the experts of the international organizations will be involved.


The second. Within the frameworks of the enlarging powers of the representative bodies we shall strengthen the rights and control functions of Parliament, its participation in forming of the Government and other constitutional bodies, we shall consider a possible extension of deputies of the Majilis and the Senate.


The third. Introduction of the election of akims should become a logic conclusion of the decentralization process, which will strengthen democratic mechanisms of forming the state power. It will create conditions for essentially new public control and the accountability of everyday life problems of the Kazakhstani people.


The fourth. It is necessary to arrange further strengthening a role and functions of political parties, enlargement of a role and powers of party fractions.


The fifth. It is necessary to create conditions for further strengthening and development of the non-governmental organizations and trade unions and their activity according to the international standards of democracy.


The sixth. Perfecting a system of protecting rights and freedoms of citizens of Kazakhstan.


The nearest three years it is necessary:


- To take complex measures on strengthening guarantees of the rights of citizens within the frameworks of legal proceedings and at a stage of execution of judgments;  


- To arrange measures strengthening the independence of a judicial branch of power, increasing transparency and efficiency of justice;


- to introduce stage by stage procedures of the court participation in the confirmation of the arrest;


- To introduce into practice of the criminal legal proceedings the Jury institution and to pass respective laws, etc.


The seventh. Strengthening and development of mass media is one of the key guarantees of a freedom of speech in our country.


It is necessary to develop professionalism, independence and a professional ethics of the journalist community in every possible way. Guarantees of freedom of mass-media should define also their responsibility for observance of requirements of the Constitution and laws.


The eighth. About establishment of the State Program of the Struggle with Corruption and consecutive realization of a system package of practical measures for strengthening the accountability and public control above the state bodies at all levels of our society.


What did we make for last months?


Since April of this year the Decree directed on the further development of the complex system of counteracting the corruption in Kazakhstan is realized. Within the frameworks of the realization of the given Decree the project of the State program of struggle with the corruption designed for 2006-2010 will be developed current year. Its basic idea will be a construction of the multilevel national anticorruption system. We have begun with the following:


1. In May the Decree on the Code of Honour of Civil Servants was signed, which fixed the basic ethical standards of their behavior, and was directed to increasing the authority of the state bodies.


2. In July I signed the Law On changes and additions in the Law on Public Service toughening the demand for the corruption crimes and offences.


3. A work on establishing the centers of the population service in Astana and Almaty by the “one window” principle was began, and 500 million tenge was allocated from the republican budget for these purposes. One of the centers in the capital has already begun its work in May.


In addition to that we already made, it is necessary:


1. Ensuring a transparency of the process of privatization, decision-making in the sphere of tax policy, use of the Earth's interior and land relations.


2. Changes and additions in the legislation providing a transparency of the activity of the national companies and the state enterprises, as well as the private companies.


3. Opening the centers of the population service by the “one window” principle in all regions of Kazakhstan.


I invite public organizations to connect to this work and provide the full accountability and wide public control above the state bodies.


These are only some of key provisions of the National Program of Democratic Reforms offered for discussion and the subsequent realization. This Program should be extended, concretized, and in case of need - to be corrected. It must undergo, I would tell, “the all-national examination" to enlist the support of a predominant part of our society. It is necessary to consider experience and to follow advices of our friends from the developed democracies.


As you can see, a great and intensive work is in the offing. The National commission on democratization and a civil society must generalize in the near future results of the discussions and to prepare a package of proposals about legislative base of the National program of democratic reforms; certainly, at active participation of Parliament.


The acceptance of such a Program is an issue demanding an extremely suspended approach. Its consequences will influence on a destiny of our statehood and stable development of the society.


Therefore I plan to create the State commission on development and concretization of the Program of democratic reforms under my presidency. Its structure will include deputies of Parliament, representatives of the Administration of the President, the Government, political parties, public associations and NGO. The commission must present specific proposals in June, 2006.


Only such deep democratic changes can correspond to our economic successes.


It is known, that there are other opinions as well, even among presented in this hall. Someone advises, that it is necessary to wait, while conditions in the region will be stabilized, that we are not prepared yet, and "the people has not ripened". Someone considers that democratic transformation is of little importance for us, as far as it can lead to the destabilization of a society and will slow down our development, and even that democracy in the Western interpretation is inconsistent with "traditions" of our society. These opinions must be considered as seriously, as the others.


Yes, we do not have established democratic traditions, and we should move forward by a trial-and-error method. It will be an uneasy way. And we know this. We should carry out these uneasy historical transformations in the hope of greater unification of Kazakhstani people for the sake of the future of our country.


IX. Adoption of the special measures for consolidating a private property institution in Kazakhstan and warranting of contract relations in the society is a key point of the accelerated modernization of a public life


Dear deputies, members of the Government!

Ladies and gentlemen!


The success of our economic and particularly political programs depends on consolidation of the proprietors strata in the country which represents an emerging middle class. It is represented in the countries of the developed democracy, for this reason those countries are stable, despite of change of the elites. That is why I am constantly engaged in the development of the middle and small-scale business in the country. We accomplished quite a lot, but it only the beginning. When we speak about democratization, we should coordinate these issues.


In this connection I want to make our final and irrevocable decision on such a fundamental issues as consolidation of a private property institution and guarantees of contract relations in Kazakhstan which, undoubtedly, are a key to the acceleration of the all-round modernization of Kazakhstan.


First years of independence the state ownership prevailed in the economy. The legislative base for the development of market relations was completely absent. Laws in force were repressive to a private property and enterprise activity.


The most severe commodity deficiency, hyperinflation, sharp decline in living standards - all this maintained a negative image of a private property in public opinion and among the overwhelming majority of the population of the country.


During the meetings with many businessmen in the regions, I arrived to an idea, that persevering and the consistent policy which I spent all these years has created conditions for the origin of the whole galaxy of basically young proprietors. I worked not in vain. And I am proud of it. We shall tell directly, the property gives the person a true degree of freedom, but simultaneously a high degree of the responsibility before a society.


Today 85% of an industrial output is made by a private sector where works more then 60% of the employed population. Small and middle business develops. The middle class without which a process of modernization is simply impossible is formed.


Therefore the main issue now is to provide irreversible and stable development of the middle class, possessing the property and realizing its constructive social interests.


The private property institution is protected by our Constitution. However it is not necessary to forget, that this article is not confirmed by century-old traditions of respecting this institution and realizing the contract right as a characteristic of Western countries. There is a need to exclude, for example, situations when a fortune of the enterprise or a separate citizen is defined not the law, but a functionary. Both the state and a civil society should protect the proprietor and its property.


This simultaneously is the establishment of basic guarantees of human rights and freedoms, and the development of a civil society.


Therefore, firstly, I suggest developing a package of the further measures of legal ensuring an institution of private property and contract relations. The important will be the role of the unified Law in the field of the entrepreneurship, fixing system principles and the approaches to the activity of entrepreneurs. The legal ensuring of a private property and observance of the contract right should include an independent consideration of disputes, and a system of arbitration procedures.


Secondly, it is time to think how to bring up all levels of society to respect a private property institution and contract relations. Further modernization of Kazakhstan demands a standard of the contract relations at all levels of society, including a fair relations between the private legal persons and citizens.


Exactly these issues helped many nations to become successful.


I am assured that acceptance of the special measures for consolidating a private property institution in Kazakhstan and warranting of contract relations in a society will create the strong base to our irreversible advance.


X. Kazakhstan is on a leading edge of a struggle with the international terrorism, extremism, drag-trafficking, AIDS diffusion, in consolidating stability and security in the region and the world


The whole world can witnesses our responsible, suspended and balanced policy which Kazakhstan demonstrates in a wide context, ensuring the international and regional stability and security.


Recently I had already repeatedly spoken about our foreign policy priorities. They remain invariable.


We are guided by such approach considering an issue of continuation of our field-engineer detachment to render assistance to the Iraq people. It is positioned there in the name of the people life-saving, though the quantity of participants of the international coalition decreases recently. Just as we consider fundamentally important for us to be an active participant of the Organization of the Agreement for Collective Security, Shanghai Organization for Cooperation, to develop cooperation and integration with the nearest neighboring countries.


Development of cooperation with Russia, China, the USA, and the European Union is a priority orientation of our policy. The interaction with the main countries of Asia and the Near East are of great importance for us.


Kazakhstan was and remains an active supporter of the wide international cooperation directed on nuclear containment, struggle with the international terrorism, religious extremism, drug-trafficking and other modern threats. It meets also our national interests.


However, I would like to emphasize today the other vital issue of ensuring stability, security and sustainable development of our region. As you know, the international community watched the events occurred in Kyrgyzstan and Uzbekistan with the increasing concern. Central Asia as a region of stability, rapid-growing economy, accompanied by social and democratic progress - is one thing. But Central Asia as a region of poverty, tearing to pieces by internal contradictions, ethnic and religious conflicts, when outbreak of violence in one country becomes an example for imitation of others – is completely another thing.


It is necessary to recognize, that a basic reason of these highly explosive conflicts became internal social and economic problems accumulated for years. Kazakhstan "has avoided" such shocks owing to the system policy of the development of economy and common weal, ensuring inter-confessional, interethnic and intercultural concord.


At the same time, and I think you will agree with me, preservation of stability and prosperity throughout the Central Asian region meets the interests both our country, and the international community. That is why an initiative of the Central Asian integration which I declared in February of this year has emerged. There are no any Kazakhstan ambitions "to stand out" or pretend to leadership. I am sure, that this is equitable to the long-term interests of the fraternal peoples of our region.


The idea of establishing the Union of Central Asian states caused a positive international resonance. In this connection the French leader Jacques Chirac in his letter in occasion of my Address marks: "My country which, as you know, was one of the members-founders of the Union of the European states can only support your project of the Union of Central Asian states".


In the nearest future, I think up to the end of the month, the concept of the Union of Central Asian states will be completed and send to the heads of the region states on consideration and coordination. And if the basic ideas of this Union will be accepted and supported, that, I believe, becomes an important factor of the stable and sustainable development of the entire region.


XI. The application of Kazakhstan for the presidency in the OSCE is an expression of our consecutive policy of the accelerated economic, social and political modernization of the country, the responsible and suspended approach to ensuring the international and regional stability, security, development


The application of Kazakhstan for presidency in the Organization on Security and Cooperation in the Europe in 2009 I consider as an expression of the selected strategy of social development and a practical course on the overall modernization of the country. This aspiration does not present either a political conjuncture, or desire, as they say, "to prove ourselves".


The thirty-year history of the OSCE repeatedly confirmed its unique potential on ensuring the international cooperation on the wide range of problems.


The Republic of Kazakhstan is the OSCE member since 1992, voluntarily assumed obligations of the Helsinki Final Act.


We are grateful to the OSCE for an effective assistance and support during the complex period of the emergence of the Kazakhstan statehood, assistance in developing the democratic institutes, formation of basics of civil society. We intend to intensify further cooperation with the OSCE, considering this cooperation as suitable to our supreme national interests.


In turn, I am entirely convinced that the unique experience already cumulative by Kazakhstan on consolidating tolerance, peace and stability, inter-confessional and inter-ethnic concord of a society with both the European features, and the Asian traditions, will help the OSCE to essentially enrich its idea about variety of the modern world and different ways of constructing the open democratic society.


It would allow the OSCE to meet the main modern threats and challenges more dynamically and adequately.


I consider our application for the presidency in the OSCE as a system aim answering both internal, and the foreign policy purposes of Kazakhstan, and, the main thing, to consolidation and development of the OSCE role in a XXI century.


Should tell, that at the recent CIS summit in Kazan, the intention of Kazakhstan to preside in the OSCE in 2009 was officially supported by the Commonwealth leaders. We are grateful for this support.


In this connection I charge the Administration of the President to develop the complex program of preparation the Kazakhstan’s presidency in the OSCE, which will make the Government, the interested ministries and departments responsible for its realization. I count also, that this subject will take a priority place in the further activity of the Commission on Democracy and a Civil Society as well, which must become the main place of debates and meetings with the representatives of the OSCE.


And, certainly, we should confirm our obligations as an active participant of the integration process within the frameworks of the OSCE.


I recommend the Majilis of Parliament to start in the near future the ratification process of the fundamental international legal documents for human rights and freedoms protection, namely, Pact on Civil and Political Rights and Pact on Economic, Social and Cultural Rights. Consider it as your priority problem. I remind of publication of my Decree about Kazakhstan’s connection to these Pacts in 2003 yet.


And in conclusion of this theme would like to tell, that Kazakhstan would be ready and glad to carry out on its territory the international forum under the aegis of the OSCE concerning inter-religious tolerance, social and interethnic consent. We already have a similar positive experience, including successful carrying out the Summit of heads of the SICA states, the first Congress of the leaders of the universal and traditional religions, the adequate work of the Organizational Committee for the second Congress, and also a 10-years experience of the Assembly of the People of Kazakhstan. Owing to this activity, Kofi Annan, Secretary General of the United Nations, marked that Kazakhstan became "an example of the interethnic consent, stable, sustainable development for other states".


Dear deputies, members of the Government!

Ladies and gentlemen!


So, we estimated the first practical results of the realization of our strategy for the overall modernization and democratization of the country, defined the most actual problems on the near future. We have chosen a correct trajectory of movement and have already achieved a good pace of concrete actions.


It is indicative that many, who left country in 1990s, now return home and remain here for ever. It once again demonstrates our obvious successes, accuracy and efficiency of our strategy on the accelerated economic, social and political modernization of Kazakhstan.


The main thing now is to preserve a rhythm of this progress both in economy, and social sphere, in the policy and enlargement of democracy. We face the future of Kazakhstan with optimism. So let's make all for this time coming as soon as possible. I call the Kazakhstan people, all political forces to combine efforts for this purpose.


Concluding speech, I should tell some more. In some days you, dear deputies, will make a decision on a date of the next elections of the Head of the state. Actually "the presidential race" will begin in the country with this moment. It is assured, that it should not draw us away from the main aims which we posed and which we shall necessarily achieve.


You know, that I always was the supporter of the open and fair competition of ideas, political projects, dynamic public debate within the frameworks of the Constitution and laws. I have no doubt, that Kazakhstani people will give the preference to a leader with clear and adjusted strategy of actions and solid command of like-minded persons, capable to realize it.


As an acting the Head of state, I see my aim and will make all necessary for the forthcoming elections being absolutely free, fair and transparent, and their result could not cause any doubt neither at Kazakhstani people, nor in the international community.


Dear deputies!


About 10 years of the work of our professional Parliament, elected according to the Constitution celebrated some days ago its 10th anniversary has passed.


And if for History these years are only a moment, for our Kazakhstan they are historical milestones defining stages equal to century.


Undertaking any steps to development, we always remembered, first of all, about stability and unity of the people. Owing to it we reached a great success and authority in the international community. I would like to note a special role of the Parliament of the country.


Our reduced tops are as high, as a lot of them are still ahead. And if to recollect, that you adopted 78 laws only for the last session, it is obvious, that you have not less a work ahead. Just now in a portfolio of Parliament is more then 50 draft of laws. I would like that among them you have paid special attention to the laws directed on a large-scale economic, political and social modernization of the country from the standpoint of the Address.


It is necessary always to remember, that the results of reforms, aimed at increase of the prosperity of the Kazakhstani people, sociopolitical stability and timely budget implementation, depend on the quality of these laws.


I am sure, that you will realize this task suitably. I wish success in your activity in the name of the prosperity of Kazakhstan.


Astana, September 1, 2005.