GOVERNMENT. Weekly review.


Muratbek Makulbekov

GOVERNMENT. Weekly review.Enterprises should have transparent structure of ownership for obtaining state assistance – K.Massimov.

The issues of the economic development of the country, which are connected with a new course to the forced industrialization and with the Customs Union establishment, were in the highlight of the Government last week.

On Monday, February 22, Kazakh Prime Minister Karim Massimov chaired a sitting on the issues of strengthening of state border of Kazakhstan. There were considered approaches on additional development of borders of the republic within the framework of the Customs Union: on additional technical equipment of customs posts for prevention of goods smuggling to a single customs territory, strengthening of fighting terrorism, drug traffic and transnational crime.

At the second half of the day there was held a regular session of the Council on Economic Policy under the Government, in the course of which there was discussed the second package of measures on support of the domestic entrepreneuship within the framework of the Business Road Map-2020. The Premier urged to improve the project taking into account all proposals. At the same day K.Massimov held a session the Interdepartmental Commission on employment and staff retraining. There were considered several proposals of the Ministry of Labor and Social Protection on organization of financing the 2010 Road Map program

At the Government’s session on Tuesday, February 23, the draft State Program on Forced Industrial-Innovative Development for 29010-2014 was considered. The draft was represented by Minister of Industry and Trade Asset Issekeshev, who voiced main parametres of economy, which should be achived by 2014. the country’s GDP should increse by 50 percent against the 2008 level. The labor productiveness will increase by 50 percent in the processing industry and by 100 percent – in the other sectors of economy.

As A.Issekeshev noted, this State Program will be a main strategic document in the sphere of economy for the nearest five years. The new system of the state planning elaborated within the framework of the State Program covers opti,ization of all programs of strategic documents of the country. for the State Program’s implementation industrial development programs will be established.

The Minister voiced a proposal – establishing National Agency on Export Promotion “Kaznex Invest” under “Kaznex” JSC. The Agency will organize business forums, hold other presentation events on Kazakhstan’s promotion as the best place for investments. An internet portal where foreign investors and domestic business entities will be able to find partners is suggested to be established. The new Agency could also perform target search of big investors with outstanding brands and advanced technologies for realization of top projects.

The Prime Minister noted that the main task is not only to start industrialization, but to create conditions for participation of the private domestic enterprises in the State program’s implementation.

The Premier and members of the Government approved the draft State program and took a decision to introduce it to the Head of the State.

Then Minister of Education and Science Zhanseit Tuimebayev made a report on the draft Law “On Science”.

According to the Minister, the bill aims at improvement of the system of management and financing science, enhancement of the role of scientists and science, promotion of commercialization of the results of scientific researches, improvement of the quality and efficiency of scientific studies, social provision of scientific workers.

Upon completion of the report K. Massimov said the Ministry must perform clarification work among the deputies regarding this draft law.

Minister of Energy and Mineral Resources Sauat Mynbayev presented the bill On state regulation of production and circulation of certain types of oil products. In whole the draft law was developed under the President’s instruction on stabilization of prices on the fuel and lubricants market on Kazakhstan. In conformity with the bill, the state will not regulate wholesale prices for fuel which allows maintaining reasonable margin for distributors and keeping the number of intermediaries on the market. Alongside, the draft law provides for state regulation of retail prices for lower octane petrol, AI-92 and AI-93 petrol and diesel fuel.

After discussion the members of the Government decided to submit the bill for the Parliament’s consideration.

The Ministries of Agriculture, Energy and Mineral Resources were charged to consider the issue of provision of agricultural producers with fuel and lubricants during sowing campaign.

On Wednesday, February 24, the Prime Minister chaired a regular sitting of the interdepartmental commission on oil and gas issues. The sitting focused on urgent problems of the companies specializing in development of oil and gas deposits in our country including observation of ecological legislation.

After then K. Massimov held a conference on state defense order. As is known the Head of the State gave a number of instructions regarding this issue directed on development of the Armed Forces of the country and further strengthening Kazakhstan’s defense potential.

On Thursday, February 25, the Prime Minister took part in a ceremony of inauguration of Urkaine’s newly elected President Victor Yanukovich. In the course of his trip, the Kazakh Premier met with U.S. President’s Security Advisor James Jones for discussing the issues of further development of the Kazakhstan-U.S. cooperation. In particular, the parties discussed the problem of regulation of the Afghan situation as well as organization of the OSCE top-level summit in 2010.

At the first plenary session of the Council of Entrepreneurs under the Kazakh President held on Friday, February 26, the Prime Minister informed of growth of industrial output and the country’s GDP. Addressing the representatives of the country’s business community he said that involvement of the state in recovery of enterprises will be limited to subsidizing only the interest rates on the problem loans provided to the enterprises earlier. The ventures will be provided with state support within Road Map 2020 program. For this, businessmen must, first of all, match the criteria of the forced industrial innovative development program and, secondly, disclose voluntarily the information on all their credits.

As the Head of the Government highlighted, such information was required from the banks last year. The same thing must be done regarding the ownership structure of the enterprises in order to let the banks see who the businessmen are and what they do.

The enterprises must also develop a special recovery program together with the creditors for 2-3 years. This program is voluntary one and the risks are taken by the banks, the PM added.

The businessmen can apply for recovery within 2010 only.

“As soon as the projects are selected the banks will cut their rates up to 12%. The effective rates for the entrepreneurs will be at 7% while 5% will subsidies”, K. Massimov concluded.

Following the session President N. Nazarbayev charged the Government to take a package of measures including legislative ones in order to lower administrative pressure on business as well as ensuring legality in relations between state bodies and business.