Independent Kazakhstan – Economic developments

Kazakhstan has a historic chance to become an equal partner among the independent states of the world. As the 10-year period of independent development has shown, this chance has been seized, and the signs of this achievement are everywhere.

The most significant results of the ten-year independence are in the economic sphere. During those periods the liberal market economy was created along with a sustainable national currency. Moreover, a favorable investment climate has been established for domestic and foreign investors; the domestic production capacity is being raised and modern information technologies are developing.

Up to this day Kazakhstan has attracted 21 billion dollars of foreign investment, of which 66 percent is direct foreign investments.

According to the data of the European Bank for Reconstruction and Development, Kazakhstan is first in total amount of foreign investment among the states of the CIS and third place among the states of Eastern Europe and the Baltics (after Poland and Hungary).

The economic achievements were possible because Kazakhstan adheres to the principles of an economic growth strategy: restricted direct involvement of the state, macroeconomics stability, further liberalization of prices, open economy and free trade, strengthening of institutes of private property, privatization and provision of effective security of foreign investment, development and rational use of energy and other natural recourses, formation of industrial technological strategy, and diversification of production.

The main reforms on the transition to market economy have been achieved, and that is what has been officially confirmed by the U.S. and the European Union, who have granted our republic the status of a market economy. The government is working hard on supporting the favorable investment climate. This is conditional upon the fact that Kazakhstan is 12th in the world in extractable oil reserves, 15th in natural gas reserves and 23rd in hydrocarbon mining. The richness of their oil fields are being explored by 120 companies and more than 70 of them are foreign companies. Until 2015 approximately 150 million tons of oil will be extracted in the country and 130 million of them will be exported.

Among the potential sectors attracting investment is the agricultural sector, for the further development of which the agricultural program was adopted. It’s budget is 40 billion Tenge. Soon a new Land Code will be adopted, which will regulate private property. Transport and service infrastructure, processing industry and innovation also represent sectors up for investment.

The industrial and innovation program of the development of the Republic up to 2015 was developed and adopted, the main objective of which is the active policy of the state in the creation of the modern high-tech structure of the economy and quickly overcoming it’s raw material orientation.

On Apr. 4, 2003, at the joint session of the chambers of the Parliament of the Republic of Kazakhstan, President Nazarbayev addressed the nation of Kazakhstan with a message about the "Main direction of the domestic and foreign policy in 2004." The head of state put forward important goals, the realization of which will allow dynamic development and further successes in the economy.

The priority is the creation of conditions for the development of new revisions and industries, and infrastructure. There will be special institutions, like the Investment foundation and Corporation on Insurance of Export, which sells insurance from political risks. Already active is the Innovation fund and the Bank of Development of Kazakhstan, which plays an important role in the crediting of the real sector of the economy, and for that an annual increase in the authorized capital stock.

A substantial decrease in the tax burden for people is expected to raise the standard of living and improve the economy.

The main macroeconomics strategy of the country in recent years presupposes, along with the development of a national real estate sector and production, Kazakhstan’s confident entrance into world markets. The ideas of harmonization and diversification and the interaction with external economic surrounding will allow us to keep in mind those drastic changes, which have taken place in the world economy in the last few years.