Success of industrialization depends on staff competence – Advisor to Director General of Kaztransgaz JSC Y. Temirkhanov


Industrialization is capitalization of our assets or in other words enhancement of the country’s economic security. This has become a leitmotiv of the present President’s Address to the Nation New Decade – New Economic Growth – New Opportunities of Kazakhstan, Advisor to Director General of Kaztransgaz JSC, Doctor of Economic Sciences Yerkanat Temirkhanov thinks so. The industrialization is an important line for the economic development of any developed country. It is impossible to say that the issue has been brought up just now.

The issue on creation of own production, clusters and breakthrough projects has been considered for many years.

But speaking about the industrialization we forget about those branches we are strong in. Why don’t we develop cattle breeding and do not turn it into a high-technological industry? Why don’t we develop currying, wool processing and production of sheepskin-coats? This industry has a great consumer market. Today Turkmenistan having upstaged India and Pakistan supplies 75% of jeans to the world market. In other words, the country remained a traditionally strong country in cotton industry.

We have a great potential in mining, oil-and-gas, metallurgical industry. It means that we can manufacture final products here. It is necessary to make a thorough analysis of what is extracted in the country and what can be produced from this raw material. We extract coal, produce electricity and then sell it. This is not a single industry where final product is produced and sold.

The President is absolutely right stating that the industrialization is a labor-intensive work which cannot be solved in one day. It is impossible without proper personnel.

Unfortunately, such words as engineer, constructor, technologist, innovator and turner have disappeared from daily lexicon though these specialties are the stem of any production. Let us remember that the word “engineer” from Latin language means “thinking”. We should not forget that a great number of specialists of engineer profile worked in Soviet cooperative and communal farms. The President noted that development of agricultural sector was an important segment of diversification. Its growth is impossible without proper equipment and its further use. It should be noted that revival of agriculture and industrial capacity of China was started from petty industry.

During a regular Governmental session the Head of the State noted that a ‘state planning approach’ is needed for implementation of the industrialization program. Can you please explain this expression to our young readers?

The Head of the State is absolutely right saying that a lot of young people work in ministries, development institutions who did not pass special professional school. This announcement was just in time. I will repeat one more time that success of industrialization depends on staff competence. It is high time to attract specialists into the industrialization process who received education till 1991, people aged 45-50. Today they are in demand, those who passed through the school of production. I have no doubt in competence of our youth as far as young people know English language, IT-technology, and so on. But the representatives of older generation underwent the process of staff selection. I have recently watched the interview with Chairman of the Industry Committee of the Kazakh Ministry of Industry and Trade Nurmukhambet Abdibekov. I should confess that for the first time ever I have heard the speech of the professional who knew the terminology quite well and who is acquainted with production process. Unfortunately, there are few such examples.

The approach of state planning means a planned approach. The planned nature of economy means gradual allocation of resource potential of the country. Planning is a monitoring. A geographical map is taken as the basis in this approach. The country is divided into several segments in order to designate demands and resources of each region. For today there is an industrialization map of the country. And maybe it is the time to create a special body similar to the State Planning Committee but with another name.

We have the Ministry of Economy and Budget Planning which plans and spent budget itself whereas the Ministry of Finance monitors this process. But it is nonsense. I think it is necessary to revive an independent energy ministry as far as energy is the basis for everything. Another nonsense should be noted here. As is known there is a national energy operator in the country as KEGOC JSC. But there is no national gas operator. Why? Is that a reason that there are constant problems with prices? Why are there different prices in different regions of the country?

It is necessary to attract budgetary funds as well as investments for implementation of the country’s industrialization program. There was a suggestion to use means of pension funds. When will this money start to work for the economy of the country?

I am glad to know that the state pension administration is gaining momentum, that there are several state insurance companies and tens of state notary officers. But, unfortunately, pension funds do not participate in financing of real economy. The President is right saying that we must know each bank promoter. In such a manner each pension fund must become a transparent pension fund which is ready to invest their funds to real sector.  But there are no such legal mechanisms for this and this is the major problem.