Industrial innovative program to tackle domestic production problems
August 11. KAZINFORM. ASTANA
Today Kazakhstan invests big efforts and funds into overcoming the economic recession. However, to spend much does not mean to spend it effectively. Developing the antirecessionary strategy along with tactical measures it is necessary to change priorities and think about renewal of the economic model. Thus the program of the country’s industrial and innovative development is expected to solve the problems of domestic production, upgrade economic approaches and ultimately enter the number of competitive countries of the world. Kazakhstan Vice Minister of Industry and Trade Yedil Mamytbekov told about the practical measures taken in this directions in an interview to Kazinform.
Kazakhstan’s industrial and innovative development is today’s priority goal for today. Could you tell about the progress made in implementation of this initiative?
The progress of further modernization, diversification and increase of competitiveness of the national economy directly depends on consistent realization of the industrial and innovative policy. The priority will be given to innovative industrialization, which corresponds to the world economy order.
To implement the tasks on innovative industrialization the state should focus on seven directions: agro-industrial complex and agricultural processing, energy (including development of pure energy, development of construction industry and production of construction materials), oil processing and infrastructure of oil and gas sector, metallurgy and production of ready-made metal products, chemical, pharmaceutical and defense industry, transport and telecommunication infrastructure.
As per the outlined goals, the Government is elaborating Kazakhstan’s Industrialization Map for 2010-2020, which will include a scheme of production capacity location with regard to the regions’ resources and infrastructure development.
The first stage (2005-2007) of formation of basic elements of the national innovation system is finished. The financial and innovation infrastructure including the National Innovation Fund, Fund of Science, Center of Engineering and Technology Transfer, 8 regional technology parks, 11 domestics and foreign venture capital funds was created.
As of March 1, 2009 financial development institutes such as “Kazakhstan Development Bank” JSC, “Kazakhstan Investment Fund” JSC, “National Innovative Fund of Kazakhstan” JSC had approved 198 investment projects to the amount of USD 9.5 bln with participatory interest of the development institutes to the amount of USD 3.5 bln during the period of their activity.
127 investment projects are still being financed to the amount of KZT 580 bln, where KZT 260 billion is provided by development institutes.
In this regard, within the modernization of the legislation amendments were introduced to the Law “On state support of the innovative activity”. The amendments provide with norms, protecting interests of legal bodies, in particular of development institutes, the activity of which is aimed at the development of innovative sphere in different directions.
The work on promotion of Kazakhstani content during the first half of the year proved effective. What measures helped to achieve such results?
The Kazakh Government took the following measures in order to assist in development the Kazakh production and maximal use of the local resources.
One of the elements of the regime of manual management of the economy, introduced by the Government, is procurement of goods, works and services of the domestic producers, works and services providers by the state bodies, national companies and mineral developers. In order to implement the task the Government held visiting meetings, covering all regions and cities of the republican importance. Upon the results of the meetings memos and agreements were signed.
Now one of the main tasks for a short-term period is to move from the phase of intentions on procurements set forth in memorandums to making real contracts. An ad hoc group was formed for this purpose, and the responsibilities were divided among state bodies.
Besides, the analysis of the rate of the Kazakh content in the procurements disclosed the factors restraining the increase of the Kazakh content.
In his recent speech Head of the State Nursultan Nazarbayev urged to improve the quality of the products manufactured by the country’s industrial enterprises. What measures have been taken to support domestic producers within the program on domestic content development?
The Concept of development of Kazakhstan’s content for a mid-term period targets on providing favorable conditions for the development of domestic industry (non-primary sector). This will be reached through increasing the share of Kazakhstan’s content in purchase of goods, services and works by state and private organizations; raising effectiveness of manufacturing competitive products satisfying the needs of the population, state and private sector; stimulating domestic producers of goods, works and services and enhancing release of competitive products.
All of these objectives are supposed to be fulfilled in four following directions. First, this is an obligatory purchase of home-produced goods, services and works by the state bodies, national companies, subsoil users and other ventures. Secondly, this is improvement of the quality of the released products through modernization of the production. Today Kazakhstan faces complications in modernization and renewal of the basic funds which will significantly influence on the competitiveness of the domestic products. Renewal of the basic funds and technical rearmament should become a priority of the state industrial policy since increase of productivity of labor directly depends on the state of basic funds. Thirdly, this is creation and development of new competitive productions. To date one of the major problems in development of domestic content is lack of manufacturing products and supplying works and services which are not in demand in the country’s territory. And the fourth direction is development of educational and scientific potential of the population (recruitment policy). Personnel potential of the country proved to be one of the fundamentals of economic recovery in international and our own experience. Therefore development and enhancement of educational and scientific potential of the country is a priority task of the state.
In whole, the Government carries out work on re-orientation of the state policy for the support of priority directions of manufacturing import-substituting products.