State-of-the-Nation Address of the Head of State to the People of Kazakhstan, 2007

Head of State Nursultan Nazarbaev delivered the annual Address to the people of Kazakhstan named “New Kazakhstan in the new world” and concerning the situation in the country and major priorities of the internal and foreign policies at the joint sitting of the Parliament’s chambers.

In the Address the President presented Kazakhstan’s new development strategy for the forthcoming decade.

– The stable development of the economy allows reinforcing the social orientation of the reforms. This is the most important outcome of our economic policy, – the President underscored and commissioned the Government with the task to take a number of concrete measures on improving social care in the area of motherhood and childhood, increasing amounts and indexation of pensions, on further improvement in the wage payment system of budget workers. Particularly, the Head of State instructed:

– from 1 January, 2008 the amount of the state one-time grant for a child’s birth must be increased up to 34740 tenges, in other words it will be doubled; child support during maternity leave must be also increased and prolonged to child’s attainment of the age of one year;

– to introduce compulsory insurance of pregnancy, delivery and motherhood for working women and continue to accumulate their pension incomes during the period of their maternity leave;

– to increase the amount of the basic pension and keep it at 40% of living costs in the nearest years;

– to change the income restriction, which is considered for pension calculations, and increase it from 15 up to 25 monthly calculating indicators;

– to preserve indexation of pension payments and fulfill it ahead the forecasted growth of the consumer prices index by 2%;

– to continue the work on further improvement of the wage payments system of budget workers;

-to introduce from 1 January 2008 invigoration allowance of monthly salary sum during annual leave for workers of education, social care, public health care, culture and sport;

– to introduce special allowances of 8 monthly calculating indicators for all Kazakhstanies, which had completed their seniority by the 1st of January, 1998 in harmful and hard conditions of work (list 2).

The total sum, which must be allocated to increase all these social payments, will be at about 108 billions of tenges in 2008.

Also the President ordered to build 100 schools and 100 hospitals in those regions of the country, which especially need these objects, in three years.

– We must consider the development of social infrastructure as a strategic objective, – Nursultan Nazarbaev emphasized.

The President noted that the consistent implementation of the “Kazakhstan 2030” Strategy has ensured the reliable basis to our country’s further progress and its accelerated multifaceted modernization.

– Systematic means will be the main formulae of our accelerated movement forward in the modern world in the nearest ten years. In order to make Kazakhstan an inseparable and dynamic part of the world markets of goods, services, work forces, capitals, modern ideas and technologies, we have to solve ten main problems, – Nursultan Nazarbaev said.

The first problem is not only to ensure and support the economy’s sustainable development, but also drive its growth. As the Head of State noted, the Government must develop a principally new approach to Kazakhstan’s industrialization, retract areas of natural monopolies, strengthen financial system, create an effectively working stock market, assure Kazakhstan’s accession to the WTO under profitable for the country conditions, introduce international technical standards.

– This is my major order to the Government, – Nursultan Nazarbaev emphasized.

The second task is to turn Kazakhstan into ‘the regional locomotive” of economic development and make it a successful player of the world economy. The third task is to increase the effectiveness of the extracting sector. The fourth is to ensure the development of non-extracting industries, to diversify the economy. The fifth is to develop a modern infrastructure according to our new role in the regional and global economies. The sixth is modern education and vocational training, formation of foundations of “smart economy”, use of new technologies, ideas and means, development of an innovative economy. The seventh is addressed social care and development of the social sphere on market principles. The eighth is modernization of the political system and implementation of further systematic democratic reforms. The ninth is the accelerated implementation of the administrative reform taking into account international practice. The tenth task is to promote achievements and possibilities of renewed Kazakhstan in the Central Asian region and internationally.

– In order to represent a new Kazakhstan in the new world after ten years, we have to timely and adequately meet the challenges of the new time. Therefore, I order the Government to solve consequently all the tasks mentioned, which develop the main theses of the Startegy-2030 at the new stage.

History knows many shining examples of how nations developed up to a new level, when they united their will in order to implement projects of a historic scale, – Nursultan Nazarbaev noted.

The Address of the Head of State to the people of Kazakhstan was widely discussed by deputies and members of the Government.