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Kazakh strengthens its hold over energy sector

 

 

By Deepak Arora

 

ALMATY, 20 Feb 2008 : Taking a cue from India’s first Prime Minister Pandit Jawaharlal Nehru, Kazakhstan President Nursultan Nazarbayev has called for steps to stimulate domestic investment resources with growing role of state holdings, development institutions and social-business corporations.

Presenting his annual state of the nation address at the joint sitting of both houses of parliament, Nazarbayev called for consistent strengthening of State authority in strategically important branches of economy to consolidate Kazakhstan’s position as an influential and responsible player in global energy markets, as well as to enter international market with value added goods.

"The main dimension in the oil-and-gas sector is boosting the position of the state as an influential and responsible participant on international oil and energy markets," he stated. "Work must be continued in this direction."

Speaking on “Consistent modernization and maintenance of stable economic growth” President Nazarbayev also laid stress on speedy infrastructural development of economy’s main sectors such as electricity generation and transportation system.

With this in mind, he instructed to start implementation of the largest transportation project in Kazakhstan “Transcontinental corridor Western Europe – Western China”.

The Kazakhstan President said that his country will continue to strengthen political and economic cooperation with China, Russia and other Central Asian countries.

He said Kazakhstan will also expand constructive cooperation with the United States, the European Union and NATO in a bid to solidify the security in the Central Asian regions.

Kazakhstan will assume the rotating presidency of the Organization for Security and Cooperation in Europe (OSCE) in 2010, symbolizing the country's international status is climbing to a new high, Nazarbayev said.

Nazarbayev called for the development of a new state program, tentatively titled Path to Europe, which would set out Kazakhstan’s agenda for chairing the OSCE and also boost economic cooperation, attract cutting edge technologies and modern management practices and further reform legislation.

He said the priorities of macroeconomic policy are focused on establishing an efficient response mechanism to financial instability threats and enhancing the international markets’ confidence in Kazakhstan’s economy.

“Structural reforms in financial system are to be continued to raise its competitiveness and stability, further improve management of systemic risks both in private and state sectors, as well as elaborate a quick response measures in case of force-major situations.”

Kazakhstan President noted that inflow of foreign capital into the banking sector is regarded as a vote of confidence in Kazakhstan, a source of financial support and best international practices of banking services.

On the agenda is to bring the tax system in line with the goals of the new stage of Kazakhstan development, thereby promoting modernization and diversification of Kazakhstan’s economy, elimination of “shadow business”.

“New Tax Code must become the law of direct action and prescribe the reduction of tax burden for non-extractive industries, especially for small and medium sized enterprises, at the expense of greater economic return from extractive sector.”

The address necessitated further improvement of Kazakhstan’s model of political and state functioning through combination of universally accepted mechanisms of democracy development and traditions of Kazakhstan society, with a view of maintaining long term stability, peace and harmony.

Increased effectiveness of public administration, further administrative reform, systemic measures against criminality and corruption are set to be accomplished within the framework of political modernization.

The President noted the importance of comprehensive assistance to entrepreneurship, freeing it from a burden of administrative pressure and illegal interference.

According to “Increasing Kazakhstan population’s prosperity” task, the President said a provision of social welfare will remain amongst the most important targets.

“Healthcare and education are named nationwide priorities and they will be developed by attracting private capital as a part of corporate social responsibility.”

The fourth theme of the address was devoted to the consolidation of international authority, regional stability and international security. It is underlined that the basic priorities of Kazakhstan foreign policy remain invariable.

 

Source: http://thetribuneonline.com/commonwealth_independent_states.htm


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