This is our twentieth year of Independence. In December 1991 we opted for sustainability and success. To move forward we drew up development programs for every new stage.
We set ambitious goals and attained them. I will cite just one integrated indicator of the country’s advancement. The 1994 per capita GDP was a bit over $700. By January 1st, 2011 it was by 12 times more to make $9 000 – an index initially slated for 2015.
International experience shows that neither country achieved such a result in the first 20 years of its independence. For instance, over the first 20 years of independence per capita GDP in South Korea trebled, in Malaysia doubled, in Singapore and Poland quadrupled, in Hungary quintupled.
In my 2010 state-of-the-nation Address I spelt out a Program for industrial-innovative development. One year on, we see concrete results of its fulfillment. We launched 152 enterprises and provided around 24 000 people with permanent jobs. In all about 800 various productions were set up countrywide.
We are recuperating the chemical and light industries and made a breakthrough in processing agro-produce. 294 investment projects worth 8.1trn tenge are slated for implementation by 2014. 161 000 permanent jobs will be created and 207 000 people will be employed temporarily during the time of construction.
Main upshot of the first year of a first five-year industrial term is grave structural shifts in economic rise in the real sector of economy.
Let me remind of near-decade goals of the Strategic plan. By 2020 GDP must grow by no less than 30%; manufacturing branches must catch up with or surpass extractive industries; assets of the National fund will be no less than 30% of GDP; home and foreign investment in non-oil-and-gas sectors of economy will rise by at least 30%; SMB’s share in GDP will be 40%; the population will be 18mn; the share of qualified specialists will be 40%; the unemployment rate will drop by 5%; labor productivity in agriculture will double by 2014 and quadruple by 2020; an unprecedented meat-producing project will be carried out - in 2016 60tons of meat will be exported that is equal to 4mn tons of grain, the state will earmark 130bn tenge to this end.
Through this over 20 000 jobs will be created in the countryside and more than 100 000 rural dwellers will benefit by it. It will boost the population of pedigree cattle and production in allied sectors – agricultural machine-engineering, chemical and food industries, feed production, equipment maintenance.
This most important part of agro-industrialization must be tackled by the government and oblast governors.
Our economy’s competitiveness must be enhanced via effective energy-saving technologies. I task the government with drafting and passing a comprehensive energy-efficiency plan and a program for regional development.
All these plans are well-conceived and must be performed if we want a better life.
A principle I believe in is “strong business – strong state”. We passed a law “On state control and supervision” to fix uniform principles and control procedures to eventually curtail administrative pressure on business.
16 laws were passed to reform the law-enforcement system. Legal mechanisms of property protection were introduced, criminal legislation on minor offences was humanized, non-custodial measures are becoming commoner as well as alternative preventive measures. In the wake of it around 2 000 convicts will be released this year alone. Law-enforcement bodies were downsized by 15%.
The judicial system is undergoing tangible changes. We are fighting against corruption. According to international experts, Kazakhstan’s anti-corruption legislation is a most effective in the world. Over the past three years our country’s international anti-corruption rating improved by 45 points making us first by this index in the CIS.
Among 183 world states with favorable business climate Kazakhstan is the 59th.
Last year saw the launch of the Customs Union of Kazakhstan, Russia and Belarus. In the first ten months of its life our trade turnover with Russia and Belarus grew by 38%, Kazakhstan’s export to its CU partners – by 52.4% and customs fees to the budget – by 25%.
The figures show the Customs Union as pragmatic and concrete project helping our countries perform their economic tasks.
We made a good headway in building up Single economic space. It will be a tremendous market for Kazakhstan’s producers encouraging our business to make competitive goods and services.
2. Social upgrade – new social policy
Our plans for industrialization and technological development of the economy are clear. Our programs aim to boost living standards of our people. A focal point of this Address is social upgrade.
I endorsed three state programs critical for the development of education, healthcare and languages. I commission the government together with mayors and oblast governors by May 1st the current year to work out and pass new programs for new employment strategy, modernization of the housing and municipal facilities maintenance, providing the population with good-quality drinking water.
The programs aim to settle daily problems of the millions of common people in our country and improve the life quality of Kazakhstanis.
Education upgrade must continue. By date all the schools are computerized; multi-media rooms are built up and interactive equipment is installed.
The introduction of 12-year schooling is under way. Each Kazakhstani must live by “life-long education” principle. We are set to update curricula at vocational schools. At present developed countries have 1-6 universities per 1mn of population. In Kazakhstan there are 149 universities.
200 scientific councils churn out candidates and doctors of science. But only one in 60 candidates and one in 37 doctors of science pursue science. Starting this year these councils will be mopped up and trained will be masters and PhDs.
We set up Nazarbayev University – an innovative higher educational institution adaptable to market demands – to lead by example in attaining a new level of university education and science. 20 intellectual schools countrywide will train gifted children for further study at best universities.
I task the government with introducing financial-economic tools of backing education to improve quality of and access to education and with working out a saving system for vocational and higher education. Kazakhstanis should have an opportunity to save money for their children’s training and get interests from the state.
By 2015 74% of pre-school children should get a kindergarten place, by 2020 – 100%. In 2010 within Balapan program 35 kindergartens were constructed, 1 534 mini-centers were set up, 137 private kindergartens opened up. 172 kindergartens were opened at former kindergarten buildings returned into state ownership. The number of children going to kindergartens grew from 30% to 55%.
To implement the 12-year schooling by 2020 no fewer than 200 schools will be built at the state’s expense and the same amount by local budgets by 2015. By 2015 50% of the country’s education facilities will provide e-learning, by 2020 they will be 90%.
By 2020 the number of universities with independent international accreditation will be 30%. 5% of universities will be conducting innovative scientific research to be later used in production. At least two universities will be among the world’s best ones.
Over this time we did our best to improve Kazakhstanis’ health. State spending on healthcare grew from 1.9% of GDP in 2002 to 3.2% in 2010. 150 medical centers were set up to perform most complicated surgeries.
As a result the birth rate surged by 25%, the death rate dropped by 11% and natural population increase was by 1.7 times more.
By 2013 the Single national healthcare system will be completely introduced. Our focal points in healthcare are the quality of preventive medicine and first aid. Diseases are to be prevented and treated at early stages. It is necessary to introduce a series of national programs for monitoring the health of target groups such as children, teenagers, women of reproductive age. Another focus is better access to medical services in the countryside.
A new social project started last year – 2 trains “Densaulyk” with medical equipment and physicians traveled to the country’s remotest parts to check and treat rural dwellers. This year one more train will be launched.
There should be 50 wheeled medical facilities in Kazakhstan. By 2015 there must be at least 16 helicopters in sanitary aviation. There must be first-aid posts along motorways. Emergency medicine services must be equipped with multi-purpose mobile and air-mobile hospitals. These measures will save the lives of thousands.
It is necessary to reduce the TB and HIV infection and mortality rates at penitentiaries.
In the wake of these measures by 2015 life expectancy in Kazakhstan will rise to 70 years and by 2020 – to 72. It is necessary to popularize the healthy way of life and do sport at sports facilities, which are now ubiquitous.
350 medical facilities will be built up by 2015.
2.3. Development of languages
It is reassuring that Kazakhstanis have started learning the state language properly and with respect in it. The majority of the adult population is fluent in it. It’s a big achievement of Independence.
By 2017, it’s our task, at least 80% of Kazakhstanis should speak it, and by 2020 – at least 95%.
In 10 years 100% of the school-leavers will speak the state language. We are doing everything for it.
We will also be developing Russian and other ethnic languages. I’ve always said that a modern Kazakhstan citizen ought to speak three languages for his own good. And I think by 2020 at least 20% of the population will speak English.
2.4. New employment strategy
In the two years of the anti-crisis roadmap we have given more jobs, decreased unemployment and improved infrastructure in our towns and rural districts.
Today we need to improve the labor market, as the new economy wants a new generation of qualified human resources.
Self-employed population is a big personnel reserve to our economy. We are building new businesses for Kazakhstanis to work at, they must be ready for it and learn new professions.
I ask the Government, oblast governors and Astana and Almaty mayors to work out a principally new program by 1 May 2011 for the population’s employment. The Government together with the business community will provide a free professional training to those willing to work in industry. We want every Kazakhstani’s involvement in the country’s scaled industrialization.
For rural dwellers measures will be taken for rural business development. Last year the program was finalized for rural territories’ development, and this work will be continued in the frames of the predictive scheme of the territorial development throughout the year 2020. In the populated points with a high development potential rural infrastructure will be developed, with micro-crediting, land grants, training in doing business provided.
By-date we have nearly 1 200 micro-crediting organizations that have given over 110 thousand credit loans the sum of over 16bn tenge. But these are chiefly for consumer ends and at a high enough interest. The situation and accents have to be shifted in the side of employment, not consumption.
I ask the Government and financial regulators to urgently draft a relevant bill and measures for it. In this year 3bn tenge more needs be sought out, and in 2012-2015- to raise this funding to 10-15bn a year. All the micro-credits issued on the state line should go to setting up own business alone.
The program for cattle breeding development will give jobs to thousands of rural dwellers, a considerable outreach work is needed for it by all the executive power levels and Nur Otan party.
From the next year the government will transfer to motivation payments. The main thing is to be rid of consumerism. The unemployed will get grants for learning a profession, not for being unemployed. The problem of poverty has to be tackled, not alleviated at the expense of state benefits. The state will be helping only to objectively unemployed and low-income.
2.5. Modernization of HPU
In the last 10 years the housing stock has increased by 30mn sqm. It means over 1mn people are now living in new flats - an important result of our housing policy.
For many years the utilities sector had been underfunded. As a result by 2008 72% of communications wanted repairs or replacement. In 2009 and 2010, on the roadmap, many HPU facilities were overhauled.
This work must go on, with water, heating, electric power and gas mains modernized to form an optimal model for housing relations and to decrease the share of objects in need of overhaul from 32 to 22% by 2015.
The state, involving international financial institutes and our banks will offer special tools to private investors, businesses and individuals for joint repairs and reconstruction of HPU facilities. This program under fulfillment will open at least 10 thousand jobs.
2.6. Good-quality drink water
The work for giving the population good-quality drink water, started 8 years ago is bringing fruits – 41% more of the rural and about 72% more of the urban population accessed to it, and 4 times fewer people water is brought to.
And still quite a few rural communities are in need of better water provision. In towns 60% of water systems are in deteriorated condition. By 2020 we must achieve a 98% population’s access to drink water.
The Government will work out measures to stimulate maximal involvement of the private capital in water economy. Ground waters potential needs be tapped.
By 2020 access to central water provision should be 100% in towns, in rural districts – up to 80%.
2.7. Rise of incomes – new life quality
In this year we are raising pensions, student scholarships, budget wages to 30%. For two years on end it had been a 25% rise. As planned on the Nur Otan party’s platform, by 2012 their average size will double in comparison to the year 2008.
We promised and we have done it.
This year is 20th birthday of Independence. A state commission was formed and the national action plan is ready for marking it. “20 years of peace and creation” is the motto of our jubilee.
In the years of Independence we have developed basic values – freedom, unity, stability, prosperity.
There is a no simple political collision to you and me in connection with the initiative of the referendum on extending my term in office up to the year 2020.
I am thankful to all the Kazakhstanis who had signed in support of the referendum and to the action’s initiators.
You know all the circumstances, my response to it. I turned down the idea, as I was going to run in 2012 election. I also applied to the Constitutional council to evaluate legitimacy of the Parliament-initiated constitutional amendments.
Under any circumstances people’s will is above all to me. I pledge stability of our commitments to all our investors, to the business community.
Kazakhstan will remain committed to development of CU with Russia and Belarus, cooperation with CIS nations.
To our European partners we offer to jointly develop an Energy charter “Kazakhstan-EU:2020” for sustainable supply of energy resources to European markets, for development of piping systems.
This year we are hosting a special donor conference for Afghanistan in Almaty. I earlier proponed adoption of a Pact on the Caspian stability.
Kazakhstan will continue work for settling conflicts, started in the time of chairing in the OSCE.
We remain leaders in global nuclear security and to UN we offer to adopt a Universal declaration of a nuclear-free world. It’s important too to adopt an inter-state program for assistance to Kyrgyzstan.
This year Kazakhstan will chair in OIC, and will be working to enhancing dialogue between the West and the Islamic world.
This July Astana is hosting an SCO jubilee summit.
All this is our country’s input in the regional and global stability.