Official Statements:

"The 17th Anniversary of the Declaration on State Sovereignty
of the Republic of Kazakhstan"

The Japan Times on Ocotober 25, 2007

First of all, allow me to convey my cordial greetings to Their Imperial Majesties Emperor Akihito and Empress Michiko, members of Imperial family, the Government and the friendly people of Japan.

On October 25, 2007 we celebrate a significant date in our history - the 17th Anniversary of the Declaration on State Sovereignty of the Republic of Kazakhstan.

Today, Kazakhstan has a respected place within the world community, and has become a leader in reforms within the region, an example of successful realization of open market economy and democratic development, the direction that the whole world is headed towards.

The early 1990’s brought to Kazakhstan the chance to determine the future course of our nation, the path of its strategic development for decades ahead. We had to adapt political, economic system, laws and administrative institutions to the new tasks. In Kazakhstan we have sought to lay the foundations of a market economy, civil society and democracy simultaneously. We believed this was the only way to pursue economic growth and raise living standards while maintaining stability. Without all three, there was little realistic expectation that an oil-rich state the size of Western Europe, but with a population twice smaller than that of Greater Tokyo Area, could remain free.    

Seventeen years of existence as a sovereign state give ground to be proud of what Kazakhstan has achieved.  

Ten years ago President Nursultan Nazarbayev appealed to the people of Kazakhstan with a message “Kazakhstan-2030. Prosperity, Security and Ever Growing Welfare of All Citizens”. The document clearly formulated long-term priorities in Kazakhstan’s development and outlined ways to achieve them.

Today, summarizing the outcomes of ten years of Strategy implementation which constitutes one third of the way we needed to go, we can state that the chosen strategic priorities are right and justified.

As of today, we have created all possible conditions to ensure national security, domestic political stability and consolidation of the society

There are tangible results in carrying out economic reforms.

Kazakhstan has become one of the most dynamically developing economies in the world, growing at close to 10% in recent years.

In 2006 the total internal product was made per capita with 5 thousand US dollar, in 2007 - 7000 thousand US dollar, and to 2012 it is planned up to 9 thousand US dollar.

Today Kazakhstan provides two thirds of cumulative income of all Central Asia, having only one fourth its general population.

The total amount of foreign investments into economy of Kazakhstan has exceeded 70 billion dollars. Today by expert estimations the Kazakhstan economy is received more than 80 % of all investments which have acted to the Central Asia.

We have consistently pursued the policy of open trade. In 2007 foreign trade volume will approach $80 billion which is six times the level of 1997.

Kazakhstan pays great attention to fully utilize its transit potential in three main directions: to Russia and Europe, to China, Japan and South East Asia, to Central Asia, Caucasus, Iran and Turkey. Relevant infrastructure for those goals is being set up.

We are eager to continue moving forward creating favorable environment for business, through serious administrative reform as well.

All the major credit rating agencies have upgraded Kazakhstan repeatedly for sovereign debt and corporate borrowings. We have also become a very attractive destination for foreign investment. Foreign investors know Kazakhstan as a reliable partner. Political stability, positive economic dynamism and legislative support of investment are among indisputable assets of our country.

Kazakhstan established the National Fund for stable social and economic development, with the goal to reduce vulnerability to external shocks and to make sure that future generations will benefit from the profit generated today through oil exploration. Oil production in 2006 reached 64,5 million tons. To deliver oil to world markets Kazakhstan is developing a network of multiple pipelines going in different Western, Eastern and Southern directions. Other projects on oil and gas transportation are being also developed. Successive implementation of the program on fuel energy system, as we plan would let us produce 130 million tons of oil annually by 2015 and enter the top 10 oil world producers. Our objective is to develop this sector taking into account our own interest and the interest of international energy stability and security. The President Nursultan Nazarbayev in his speech within the framework of the 62nd session of the UN General Assembly in September 2007 has emphasized that Kazakhstan shares concerns with G8 and APEC over deepening global energy crisis and proposed to adopt a Eurasian Energy Deliveries Stability Pact for further diversification of delivering energy sources to consumers and pledging security to generators of powers as well as to develop a Global Energy-Ecological Strategy within the frame United Nations Organization.

Today Kazakhstan is entering a new stage of social, economic and political modernization. Our path is set: from stability through modernization to prosperity. We are ready for a critical break-through.

The Strategy of Industrial Innovation is adopted as the model of a competitive economy featuring some vital priority sectors beyond the extraction of raw materials. Production of competitive and export oriented goods and services in processing industries and services is the major focus of state innovation industrial development policy.

President Nursultan Nazarbayev set an ambitious goal to join the world’s 50 most competitive nations in the very near future through enhanced diversification of our economy. At the heart of this strategy we see the use of regional and global economies’ advantages for Kazakhstan’s access to international markets through rising competitiveness of national goods and services.

This is where “breakthrough macro-projects”, which are designed to change the structure of the industry, will play their major role. These projects have a high added value, multiplying effect, as well as export and resource conservation potential.

Several holding companies have been established to promote greater economic diversity and provide necessary assistance in carrying out priority projects in energy, transport, communications, agriculture and IT.

Our former capital Almaty is being groomed to become the new regional financial center.

A blue-print is prepared for development of 7 innovation clusters in such industries as tourism, oil and gas machine building, food processing, textiles, transport logistics, metallurgy and construction materials. A fundamentally new approach to support small and medium-size business is being set up. Non-core functions of state enterprises and mega-holdings will be transferred to small and medium enterprises, giving a new impetus to private sector and to expanding of the middle class.

In recent years, Kazakhstan has acquired a significant investment potential. Domestic investments have already reached more then 80 billion dollars. We now focus on “Kazakhstan’s 30 Corporate Leaders”, a program designed to assist Kazakh companies in implementing large breakthrough projects.

Production growth is taking place in practically all sectors of the economy, which gradually rids us of raw-material orientation of the economy. In the framework of implementation of the Strategy for Industrial-Innovation Development and Cluster Initiatives, the production volumes are growing in non-oil sectors. All this is the evidence of qualitative changes in the economy.

I would like to note  that economic growth is not a goal in and of itself, but a way to ensure the well-being of our citizens and stable social development. That is why, health and education have become one of the major priorities of the long-term strategy, and a criteria for evaluation of the entire scope of our activities.

The progressive economic growth has permitted us to significantly increase expenditures on the social sector, and to begin the implementation of large-scale state programs on development of education and healthcare systems. For instance, every year, within the framework of the “Bolashak” (“The Future”) program, initiated by the President Nursultan Nazarbayev, 3,000 of our best students receive scholarships from the national budget to study at the leading universities of the world. Emphasis is placed on IT, space and biotechnology, engineering and technical professions. To create modern education system, producing ambitious managers who are open to new ideas and are ready to function in innovation-based economy is a priority of the national development strategy.

Comparing the quality-of-life indicators since the beginning of the last decade, we see that average income has grown almost fivefold. Rapid economic growth has made it possible to expand substantially the social targeting of Government expenditures. Reflecting the robustness of our economy, budget allocations for healthcare, education, pension system and environmental protection are being increased substantially.

In short period we have built the new capital in the heart of the country. Apart from the geopolitical advantages, the relocation of the capital has caused an enormous multiplier effect on the whole economy of the country.

We are committed to accelerating our efforts to strengthen democracy and the rule of law. Economic progress naturally contributes to further political development. Today Kazakhstan is on the new phase of political modernization. Recently, we introduced amendments to our Constitution that established a more effective and balanced system of checks, balances and responsibility between the branches of power, alongside the strengthening of the role of Parliament.

On Aug. 18, elections for the Majilis, Lower House of Parliament, combined with the elections to the local representative bodies – the “maslikhats” were conducted in an open and fair way, within the framework of the Constitution, national election law and international standards. There is no doubt that the people of Kazakhstan voted for the party, which has a clear and proven strategy.

Kazakhstan has become a full-fledged and responsible member of the international community, contributing to maintaining geopolitical stability and international security in the region.

Our foreign policy priorities remain consistent. They are to maintain an active, multifaceted and balanced foreign policy able to confront the challenges of the XXI century.

Priority is given to the development of co-operation with Russia, China, the United States, Central Asia countries and the European Union. We attach great importance to the relations with the leading countries of Asia and the Pacific, including Japan.

Kazakhstan is an active member of the United Nations and has been strengthening its cooperation with all major international organizations.  We are strongly committed to promoting intra- and interregional integration and actively cooperate within the Eurasian Economic Community, the Shanghai Cooperation Organization and the Economic Cooperation Organization.

Our Republic is firmly associated with the initiative to convene the Conference on Cooperation and Confidence Building Measures in Asia. The progress so far has demonstrated the successful implementation of the idea that President Nursultan Nazarbayev put forward in 1992.

Being located at the crossroads of different civilizations, we also initiated the Congress of Leaders of World and Traditional Religions that confirms our commitment to promote global dialogue of civilizations, cultures and religions.

Kazakhstan is interested in further development of relations with Japan. We are confident that the dialogue “Central Asia plus Japan” should become a constant feature of the regional politics. Kazakhstan is ready to contribute to this dialogue which, as we hope, will underline the growing involvement of Japan in economic process of Central Asia, with a shared aim to ensure its security, social and economic progress. We expect that the promotion of “Central Asia plus Japan” dialogue will result in specific projects, including such spheres as energy, water sharing, saving the Aral Sea, transportation, environmental protection, fighting drug trafficking, promoting flow of information, fostering cultural events, support of small business initiatives among others.

On the auspicious occasion of the anniversary of the Republic Day Kazakhstan reaffirms determination to accelerate its advancement and to join the ranks of developed and prosperous nations of the world.

Of course, not everything happens right away. Consistency, continuity and gradual development in achieving strategic goals ensure success and sustainable development of our country.

by Akylbek A. KAMALDINOV