Due to efficient anti-crisis plan Kazakhstan embarks on a new stage of development


Muratbek Makulbekov

Due to efficient anti-crisis plan Kazakhstan embarks on a new stage of developmentIn his Address to the Nation as of March 6, 2009 “Through Crisis to Renovation and Development” President Nursultan Nazarbayev pledged Kazakhstan people the state has all opportunities to overcome the crisis. “Unfortunately, a string of economic hardships and the power of crisis pressing do not abate. And you should know that. But you have to be confident we are not simply ready to face these challenges. We will overcome tough calls and come out of a recession as a strong and prosperous state,” the President said.

The results of the country’s socio-economic development in 2010 being summed up now bespeak high efficiency of the government anti-crisis measures taken since 2007. At the governmental meeting on Tue considered were the results of the action plan of the Government, National Bank and Agency for Regulation and Supervision of Financial Market and Financial Organizations on stabilization of the economy and fiscal system for 2009-2010.

According to PM Karim Massimov the anti-crisis efforts cost the country above KZT 3 trillion. The Government of Kazakhstan, the National Bank and Agency for Regulation and Supervision of Financial Market and Financial Institutions concentrated their activities on five directions. These are the stabilization of financial sector, settlement of problems at real estate market, support of small and medium business, development of agriculture, realization of innovation and industrial and infrastructure projects.

To date we observe due to timeliness and effectiveness of the anti-crisis measures the Government managed to prevent economic recession in 2009 and provide stable growth in 2010, though expert community criticized anti-crisis efforts at the start.

The GDP growth in 2009 made 1.2%, while in 2010 it was up to 7%. Industrial production increased by 10% in 2010.

Foods market stability was maintained and the inflation was kept in the planned corridor of 6-8%. The unemployment rate fell to 5.5% in 2010 compared to 6.3% in 2009.

Anyway it was clear in 2010 the forecast of a number of pessimistic experts deceived. First of all, the financial sector has stabilized for the banks’ foreign debt totaling USD 46 bln mid 2007 decreased by USD 29 bln. The same time the total gold and foreign exchange reserves of the National bank and National Fund (early 2009 it made USD 43 bln) rose by USD 17 bln to hit to date USD 60 bln.

Situation in the banking sector has improved due to inflow of public funds and government actions. Thus, fulfillment of this part of the joint plan ensured preserving of finance industry stability and for lending of economy to its further growth.

As for the solution to the problems at the real estate market 53 000 equity construction holders got their apartments.  Construction of 58 shared constriction units with 13 000 holders will be complete this year. And only then the set task will be completely solved.

Anti-crisis efforts to support small and medium business were effective. Above 10 000 small and medium enterprises got financial support of the state. As a result 19 000 workplaces were created. In 2008 product yield and services performed by the SMB reduced by 10%, in 2009 output grew by 0.9%, in 2010 by 1.9%. the number of the ongoing small  and medium enterprises increased by 5,3 and 1.3% percent in 2009 and 2010 correspondingly.

With a view to import substitution and development of export-oriented productions about 60 investment projects to the amount of KZT 56.3 bln were approved to have been financed. 27 investment projects worth KZT 30.1 bln were put into service.

The fifth direction was aimed at implementation of innovation, industrial and infrastructure projects. Samruk-Kazyna, Kazakhstan Development Bank back lots of projects. For the past two years within the Road Map there was allocated KZT 342.7 bln for repair works and modernization of social and transport infrastructure facilities, housing utilities. 392 000 of workplaces were created to avoid mounting unemployment.

In 2010 the country’s GDP growth made 7%. Government anti-crisis efforts ensured preserving of economic growth potential of the country and social stability at large and laid the foundation for successful post-crisis development. As the foreign experts say, Kazakhstan governmental anti-crisis measures produced significant effect on the country’s economy in comparison with the measures taken in a number of states, including the CIS countries.