OREANDA-NEWS. On April 16, 2008 in the Akorda Residency, President Nursultan Nazarbayev Held a Meeting with Top Officials and Members of the Cabinet and Considers Reports Submitted by State Bodies and Top Managers of Development Institutes on the Implementation Course of the Strategy for Industrial Innovative Development in the Republic of Kazakhstan until 2015, reported the Official website www.akorda.kz.

The President noted that the strategy’s main goal is to create an alternative economy that will not depend on natural resources.

“This is the most important goal of economic development. This will determine the the future of our country,” Nursultan Nazarbayev underscored.

The President stressed that the Government and development institutes had done a large piece of work and obtained significant results. Over the 5 years of the strategy’s implementation, more than 50 projects were implemented in processing industry and more than 14 thousands jobs were created at the new enterprises.

The President also noted that more than 27 billions of dollars were allocated on developing 2700 projects of small business and this created more than 25 thousands jobs.

Minister of Industry and Trade Vladimir Shkolnik reported that more than 30 programs and laws, which formed the necessary legislative and normative legal basis, were adopted at the first stage of implementing the strategy in 2003-2005. Development institutes, SECs, SEZs, venture funds and elements of innovative system were formed and started their work in that period also.

Vladimir Shkolnik noted that this ensured high rates of growth in processing industry and of GDP. The work efficiency was increased by 63,3 percents in the republic.

Over the period of the strategy’s implementation, the government started active work on constructing new manufacturing enterprises in processing industry.

The Minister said that 477 billions tenges were spent on completing 165 projects over the 5 years of the strategy’s implementation. At the moment, the portfolio of investment projects consists of 182 projects approved for financing and costing 826.5 billions dollars. Eighty two projects will be initiated this year.

Seven social entrepreneurial corporations (SEC) were established in regions. More than 355 projects costing 12,3 billions dollars were submitted to the corporations for their consideration. Twenty eight projects have been approved already and will receive 479,8 million dollars.

Vladimir Shkolnik underscored that at the second stage of the strategy special attention would be paid to the construction of corresponding infrastructure, introduction of new industrial capacities by stimulating business community and by state participation in financing projects via holdings and SECs.

“The main objective of the strategy to triple the GDP by 2015 in comparison with 2000 will be implemented,” Vladimir Shkolnik stressed.

Minister of Economy and Budget Planning Bakhyt Sultanov reported that because of the adoption and implementation of the Strategy for industrial innovative development Kazakhstan’s economy avoided overheating. In addition, the volume of product was tripled in processing and machinery industries.

Board Chairman of Kazyna Arman Dunaev reported on plans on establishing interstate investment funds and also on projects financed by development institutes. He noted that development institutes had been playing a crucial role in ensuring social economic development in the country under conditions of instable global economic situation. Currently, Kazyna Fund participates in programs financing the construction of objects in Astana and Almaty and supports small and medium-size businesses.

Prime Minister Karim Masimov said that because of their credit obligations Kazakhstan’s banks would not be able to finance innovative projects in their full cpacaity.

“In this regard, the role of state investments has crucial importance. This is very good that by your decree this state infrastructure of development, which is able to accumulate investments, has bee established,” Karim Masimov said.

Summarizing the meeting’s outcomes, the President said that the strategy of industrial innovative development laid an effective course to the construction of a diversified, export oriented and innovative economy. Development institutes’ activities play a significant role in the economy’s diversification and demonstrate their efficiency in the situation of global crisis in the world financial system.

The President also pointed out some omissions in the strategy’s implementation and gave concrete instructions on their elimination.

The Government has to effectively coordinate the work of state bodies on the strategy’s implementation and to systemize activities on the implementation of the 30 Corporative Leaders Program.

“On the whole, the 30 Corporative Leaders Program must be a system tool of state policy in the development of competitive industries of the economy,” Nursultan Nazarbayev underscored.

The President also set a task to strengthen the role of Kazyna Fund and SECs in assisting to business community in the implementation of investment projects.

Nursultan Nazarbayev said that Kazakhstan had vast internal reserves that had not been exploited yet.

“It is necessary to do effective work in order to maintain Kazakhstan’s share in natural resources extraction. Kazakhstan’s market of natural resources exploitation is estimated to be at approximately 8 billion dollars. At the same time, the share of Kazakhstani manufacturers makes only 8 percents in oil industry and 22 percents in mining industry,” the President said.

It is necessary to simplify tax administration in the new Tax Code and to reduce tax rates for non-extracting sector.

“This will give a new impulse to the development of business and economy,” Nursultan Nazarbayev underscored. “Starting from the next year, the country will work using the new Tax Code”.