Transitioning to a new economic model, Kazakhstan’s strategic goal is to double its GDP by 2029 and the continuation of a constructive and balanced foreign policy, the country’s President, Kassym-Jomart Tokayev, said discussing the key tasks facing the Central Asian nation in 2024.
He reminded that in 2024, due to rotations, Kazakhstan will chair multiple key international organizations at once, including the Shanghai Cooperation Organization, the Collective Security Treaty Organization, the Conference on Interaction and Confidence-Building Measures in Asia, the Organization of Turkic States, the International Fund for Saving the Aral Sea, and the Islamic Food Security Organization.
“A significant event will be the hosting of the World Nomadic Games in Kazakhstan. They are important both for promoting national sports and a healthy lifestyle and for expanding cultural and humanitarian ties between fraternal peoples, heirs of the nomadic civilization of the Great Steppe,” Tokayev said in an interview with the Egemen Qazaqstan newspaper.
He noted that that an extended meeting of the government will soon summarize the results of socio-economic development and determine the tactics for further actions to meet the country’s strategic goals.
The meetings of the National Kurultai (Congress in Kazakh) have become a useful platform for discussing issues in the ideological sphere, the formation of a new quality of the nation, and the renewal of the society’s value system. Traditionally, they have been held in the summer, but this year, Kazakhstan is likely to hold the meeting in the spring. Consequently, the main agenda for the country’s economic, socio-political, and humanitarian spheres will be established in the first quarter of 2024,” he explained.
In June, the Astana International Forum will bring together numerous heads of state and global companies. This platform will facilitate discussions on global issues such as climate change, food shortages, and energy security.
Moreover, Kazakhstan and France have agreed to hold a One Water Summit on the sidelines of the UN General Assembly’s high-level session (in September), aimed at contributing to the global climate agenda.
Given the current complex geopolitical landscape, it is crucial for Kazakhstan to foster mutually beneficial and pragmatic cooperation with all foreign partners, especially neighboring countries, Tokayev said.
He acknowledged the timeliness of the C5+ format, as Central Asia is a dynamically developing region with its own perspective on geopolitical realities and abundant opportunities in trade, investment, business, and innovation. “Consequently, interest in Central Asia is growing significantly worldwide, leading to an increased demand for the C5+ dialogue platform,” he said. “Without regular and trust-based dialogue at the highest level, the active development of relations between regional countries and influential external players would be impossible. In this regard, significant progress has been made in recent years. The annual Consultative Meetings of the Heads of State of Central Asia have proven to be fruitful. It is noteworthy that Kazakhstan will host the next Consultative Meeting of the Heads of State of Central Asia this year,” he added.
New economic course
Turning to the Kazakhstan’s economy, Tokayev said that a new economic course for a Kazakhstan that is fair to its citizens and the goal of doubling the national economy’s size to $450 billion by 2029 is an achievable goal.
However, Kazakhstan’s economic growth is projected to be no more than 3-4 percent for 2023-2024. But Tokayev noted that, according to IMF analysts, by the end of 2023, Kazakhstan’s GDP in current prices is expected to exceed $259 billion, marking a 15 percent increase from 2022. “This is the highest nominal growth in Central Asia. Positive dynamics are also evident in GDP per capita, forecasted to reach almost $13,000 in 2023, with an estimated annual growth of $1,600. According to the IMF forecast, by 2028, this figure is expected to grow by a third, reaching $16,800. However, I would like to point out that for me, macroeconomic indicators are not the most important thing, but the real well-being of the citizens,” the Kazakh President said.
“These favourable forecasts will become a reality if the government adopts new approaches to economic management. I see two main directions. The first is to solve a number of issues that can stimulate the country’s development. This includes the implementation of large industrial projects. In the September address, the government was instructed to identify a list of possible large-scale projects and to prepare an infrastructure development plan. These projects are being prepared, and consultations are being held with large companies, institutional investors, and the expert community,” Tokayev said.
He stressed that the crucial task of attracting investment, including through privatisation and asset recovery, also needs to be addressed. Large-scale investment has the potential to “fuel” the economy and create new growth points. “That is why my decree recently established an Investment Headquarters with broad powers to improve the investment climate and the qualitative implementation of investment projects,” he said.
The second direction includes measures to implement systemic reforms that will establish new “rules of the game” for the entire economy. “On my instructions, the government is drafting a new tax code to reset the relationship between the State and business. In improving the tax system, it is very important to move away from a solely fiscal approach. We need to strike a balance between creating favourable conditions for investors and maintaining the necessary level of budget revenues,” he said.
He added that the new Budget Code is very important. “We need to fundamentally change the attitude towards budget funds, focusing on the rationality, economy, and relevance of their use,” he said.
The new laws on public procurement and public-private partnerships will play a serious role in this, Tokayev said, adding that these documents will ensure transparency in public procurement and create a financial basis for economic development. Special attention should also be given to improving the efficiency of the quasi-public sector, he said, noting that measures for its modernization have already been identified and are now being implemented.
Energy security
Turning to energy security, Tokayev said clean nuclear power is very important for Kazakhstan. The critical situation with heat supply has raised concerns about the state of the country’s energy security. “We are the world’s leading producer of natural uranium and have our own production of nuclear fuel components. That is why I pay special attention to the issue of building nuclear power plants in our country. After all, the issue of energy security should be resolved based on real needs, possibilities, and scientific research, not on geopolitical considerations,” he said.
“Some citizens are critical of the construction of the nuclear power plant. This is understandable, as many still remember the tragic consequences of the tests at the Semipalatinsk nuclear test site (during Kazakhstan’s existence as part of the Soviet Union). There are also other complicated issues that should be considered, such as project costs and environmental aspects,” Tokayev explained.
“Consequently, recognizing the importance of the issue, I have proposed putting the question of constructing the NPP to a national referendum. My 2019 election platform stated that decisions on the most crucial issues would be made through referendums. This is the practical implementation of the concept of a ‘Listening State’ and the principles of Fair Kazakhstan,” he said.
The country is about to have wide public hearings, Tokayev said, adding, “citizens should consider and discuss all expert arguments ‘for’ and ‘against’ to make a balanced, well-considered decision of their own free will. This will be the people’s decision.”
