World Monitor Magazine June #3 - Page 14

DESTINATION kazakhstan Diversification of Kazakhstan’s economy and its competitive ability In order to diversify the country’s economy, in 2010 the State Industrial and Innovative Development Program, consisting of two stages was adopted. Timur Suleimenov, Minister of National Economy of the Republic of Kazakhstan Тимур Сулейменов, Министр национальной экономики Республики Казахстан Since actively implementing this new industrial policy, we have been able to solve issues to stop the de-industrialization of the country within these first five years; including these basic conditions for forming industrial development – lifting infrastructure restrictions to implement industrial potential, an integrated system of development institutions; and large backbone enterprises. To accelerate the development of the manufacturing industry and avoid the dependence on raw materials, an increase in the non-oil export and attraction to the FDI in the medium term is necessary, which resulted in the State Industrial and Innovative Development Program for 2015-2019 (hereinafter – the Program) development, focusing on priority sectors of manufacturing industry and creation of new jobs. At the same time, under the new economic reality, the Program was updated according to global industry and technology trends (factors related to capital outflow from developing markets, falling commodity prices, and country competition in location and production development). Program have been changed. To achieve the goals and indicators, the forecasted investment needs to the fixed capital of manufacturing industry would be about 5 trillion KZT (estimated). In addition, effective measures to diversify the sales markets of Kazakhstan’s products, export structures, increase the price competitiveness and loc alize domestic production are introduced. For example, the main area for diversifying the sales markets of Kazakhstan products, in view of market volumes and distance between the trade factors, will be the EAEU and Central Asia countries, Afghanistan, Iran, the Caucasus and the western regions of China. An important measure for saturating the domestic market with necessary funds will also be the new policy for attracting foreign investments, focused both on increasing the targeting and efficiency of work with foreign companies, primarily with TNC, while creating an attractive investment climate that meets the OECD standards. Thus, within the frames of the Program it is planned to involve 10 TNC and anchor investors. In this regard, the indicators of competitiveness for manufacturing industry include the following: the value of exports, labor productivity and In general, this Program is an integral part private investment volume, with the exception of the overall system of state planning of support for low-yield projects. and economic development, along with the sectors of agriculture, subsoil use, To achieve these indicators, the criteria for info-communication, space, transport and support measures provided to enterprises/ other infrastructures, services including project of manufacturing industry under the education. 12 world monitor