National Development Plan of Kazakhstan: Social Wellbeing, Strong Economy and Affordable Health Care

Today, the Central Communications Service hosted a press conference "On the new system of state planning, national development plan, national priorities and the concept of public administration’’. Chair of the Agency for Strategic Planning and Reforms Kairat Kelimbetov, Minister of National Economy Aset Irgaliyev presented their reports.

Chair of the Agency for Strategic Planning and Reforms Kairat Kelimbetov Kairat Kelimbetov presented a draft of changes in the State Planning System.

The Agency for Strategic Planning and Reforms of the Republic of Kazakhstan, together with the Government and the expert community, updated it taking into account the experience of similar systems of leading international countries.

As Kelimbetov said, the principle of “human-centeredness” has been preserved as the basic principle of state planning, which means that all documents, including national projects, should be built around the needs and requirements of citizens.

The system of state planning, taking into account the introduction of new and reloading of existing documents, has retained a three-level hierarchical system that ensures the implementation of the Strategy "Kazakhstan-2050" in modern conditions and with existing trends in world development.

The strategy "Kazakhstan-2050", as it has been repeatedly stated earlier, remains the key document of the country (or a document of the highest level) that determines the long-term vision of the development of the state.

The national priorities of the Republic of Kazakhstan for the period up to 2025 are divided into three areas:

  • well-being of citizens;
  • quality of institutions;
  • strong economy.

The Well-being of Citizens direction includes three priorities:

  1. fair social policy;
  2. affordable and effective health care system;
  3. quality education.

“We all felt how important this or that social subsystem of our state is, especially during a pandemic. Almost all countries have seriously revised the models of health care development, the quality of financing of various health programs. Therefore, the priority of an accessible and effective health care development system is the main direction that the state will deal with. We have serious plans to re-equip medical institutions, to build new modern medical centers in all major cities and regions. There are also very serious plans for the development of the health care system in rural areas. The availability and efficiency of healthcare is a key priority for our country,” Kairat Kelimbetov explained during a press conference in the Central Communications Service.

The "Quality of Institutions" direction includes four priorities:

  1. a fair and efficient state protecting the interests of citizens;
  2. a new model of public administration;
  3. cultivating the values ​​of patriotism;
  4. strengthening of national security.

The Strong Economy direction includes three priorities:

  • building a diversified and innovative economy;
  • active development of economic and trade diplomacy;
  • balanced territorial development.

Each priority has 1-3 measurable indicators, the achievement of which will have a tangible positive impact on the quality of life of citizens of Kazakhstan.

“All these priorities are based primarily on economic and budgetary opportunities, so building a diversified economy is a project to continue the reforms that were outlined in previous decades - this is a move away from oil dependence, building a non-oil economy. It is very important to focus on attracting investment. It is no coincidence that the priority of the development of active economic trade diplomacy, in particular, at a meeting of the Supreme Economic Council for Reforms, approaches to attracting investments were recently heard, Kazakhstan is oriented towards regional leadership,” added the chair of the Agency.

All lower-level documents of the State Planning System, including the National Development Plan of the Republic of Kazakhstan, the Territorial Development Plan and the National Security Strategy, should be aimed at fulfilling the National Priorities.

Based on the National Priorities, the documents of the first level are being developed:

  • National Development Plan until 2025, transformed from the Strategic Development Plan.
  • Territorial development plan until 2025, converted from the Forecast Scheme of Territorial Development.
  • National Security Strategy.

Second-level documents are concepts for the development of a sphere / industry and national projects.

The concept of development of the sphere / industry will determine the vision of the development of the sphere / industry or disclose the policy in the relevant areas in the medium and long term.

National projects will become documents for the implementation of certain critical for achieving national priorities, goals, objectives and indicators of the National Development Plan of the Republic of Kazakhstan until 2025 and will have priority budget funding.

“National projects are a laconic form of presentation of state policy on a particular issue. We will adopt about 15-20 national projects, which will clearly indicate what the task of the national project is, for example, a program for the development of geological exploration or the development of the electric power industry or the development of the agro-industrial complex, health care reform, what exactly will be done, what funds should be allocated and who is behind it answers,” he explained.

Kairat Kelimbetov noted that the National Project will have a triple structure. According to him, the National Project is a specific program that bears a national character and is aimed at the scale of the entire country and "should be useful throughout the country.’’

Its second quality is a person-centered approach. Programs are not impersonal, they should clearly show what the citizens of the country will receive from them, how they will affect their social well-being, the possible creation of jobs, the diversification of the economy, and the incomes of citizens.

The project approach is also important, Kelimbetov believes. In a situation where many things are changing at a high speed (geopolitical situation, technological trends, approaches to the "green" economy, commodity prices), the state must be able to react to them just as quickly.

The third level documents are implementation documents. Development plans of state bodies, quasi-state organizations, local executive bodies will describe the mechanisms for the implementation of the tasks of the higher documents.

Thus, a specific relationship will be ensured between all documents of the three levels, which will focus on the implementation of the National Priorities and, consequently, the Strategy Kazakhstan-2050.

The implementation of national projects will be closely monitored by the country's leadership. For this, the state planning system assumes:

  • active use of project management. The government has created a special institute - the Office for Monitoring the Implementation of National Projects;
  • Launch of the Data Driven Government platform. A National Analytical Center for Monitoring Reforms has been established, which will allow data management, ongoing monitoring and, most importantly, a preventive policy. Using the Smart Data Ukimet information system, a complete and interactive visualization of data will be provided for an operational assessment of the situation in the moment.

In addition to the State Planning System, the Concept for the Development of Public Administration in the Republic of Kazakhstan until 2030 was approved by the Decree of the Head of State.

This document reflects the vision and principles for the development of the public administration system, and also defines approaches to improve its main directions until 2030.

The goal of the Concept is the transition to a service and person-centered model of public administration, where citizens and their well-being will become the main values.

“The concept is set up to ensure that the state apparatus switches to a service and person-centered model of public administration. That is, from a bureaucratic model to a proactive service model,” said the chair of the Agency for Strategic Planning and Reforms.

In the formation and implementation of state policies, the state apparatus and civil servants will be guided by five fundamental principles of public administration. The state must be "listening", effective, accountable to society, professional and pragmatic.

To comply with these principles, the state apparatus must fulfill nine main tasks:

  • the formation of a client-oriented and open state apparatus;
  • improving approaches to strategic and budget planning, as well as reforms;
  • the formation of an optimal and effective state apparatus;
  • transition to proactive public services based on the needs of citizens;
  • improving the quality of human resources and professionalizing the state apparatus;
  • formation of an efficient, optimal and transparent quasi-public sector;
  • further improvement of local self-government;
  • creating favorable conditions for business development;
  • transformation of the judicial system and administration, as well as the law enforcement system to build a service model of the state.

To achieve the goals and objectives of the Concept, a number of specific initiatives are envisaged in each direction.

The high-quality implementation of the document should help to increase the efficiency of public administration, openness and accountability of the state apparatus, improve communication between the state and citizens, and strengthen public confidence in its institutions.

Answering journalists' questions about the territorial development plan, which is planned to be developed before July 1 of this year, Kairat Kelimbetov noted that the National Development Plan is an important medium-term document in the new State Planning System. This plan is focused on understanding which sectors in the economy will be diversified, what social policy will be. In the context of regions, this is intended to be done by the Territorial Development Plan.

“We must clearly understand what the situation is in each region, how the indicators set by the state are being achieved there, including indicators of sustainable development (social status of citizens, the ecological situation in the regions, etc.). On the other hand, each region has its own specific advantage, that is, some regions are ready for greater technological modernization of large industries, some regions are focused on agricultural processing, the development of agriculture, and oil refining. Also, agglomerations for the policy of territorial development are being formed in our country,” he said.

The developers of this document are 2 departments — the Ministry of National Economy and the Agency for Strategic Planning. The role of the Agency is to coordinate the proposals of government agencies that are involved in attracting investment, industrial and social policy, healthcare, and education. The novelty of the project lies in the fact that local executive bodies, large companies and the state will take an active part in it. Since January this year the Agency also actively works with the expert community. Such well-coordinated joint work will help prepare a balanced territorial development plan.

The next question related to plans for IPO of Kazakhstani national companies.

The development of the International Financial Center is associated with privatization processes. The government has adopted a special privatization plan to maximize privatization in the next 3 years. The Government is currently discussing the possibility of accelerating the privatization and entering the IPO of Kazakhstani national companies, which are part of the Samruk-Kazyna Sovereign Wealth Fund. The privatization of stakes in such companies as Kazakhstan Temir Zholy, KazMunayGas and Kazatomprom is scheduled for 2022-2023. The objective reasons for the postponement are the price environment that was in the past years and the impact of the pandemic on the global recession.

Kelimbetov expressed the opinion that if the situation with oil prices, which are predicted on average this year in optimistic scenarios (the average price is about $65 per barrel), evens out, then the processes may accelerate. At the same time, according to him, it is expected that in 2021 "some private companies of Kazakhstan" will continue to be listed on the AIFC stock exchange.

Speaking about the conduct of the population census, Kairat Kelimbetov noted that the census will be conducted from September 1 to the end of October. It will take about 2 months in general. A special state commission has been created to conduct the census, headed by Alikhan Smailov, First Deputy Prime Minister. Several meetings of this commission have been held.

“In general, it is assumed that, unlike other similar activities that were carried out in the framework of previous censuses, this census will be digitized as much as possible. From Sep. 1 to Oct. 15, a special website of the Bureau of National Statistics will be opened, which will allow to answer online all the questions that will be asked within the framework of the census,” he said.

In the last two weeks of October, interviewers will go around the houses of citizens; they will fill in the data of Kazakhstanis through electronic tablets.

Now we are ready to conduct the census. The first statistical results will be received by the end of the year. In turn, the Minister of National Economy of the Republic of Kazakhstan Aset Irgaliev noted that on Feb. 26, 2021.

The National Development Plan of the country until 2025 was approved by the decree of the Head of State.

The National Plan is a document of the first level of the State Planning System and is developed to implement the long-term Development Strategy of Kazakhstan until 2050 and National Priorities.

The plan forms the main parameters of the country's new economic course in the medium term, aimed at leveling the consequences of the coronavirus crisis, as well as developing a sustainable and inclusive economy in the new conditions.

“The Strategic Development Plan until 2025 adopted in 2018 launched the third modernization of the country. However, the sharp change in the conditions for the development of the global economy caused by the pandemic has formed a new reality, radically changing the basic development scenario,” the minister said.

It is worth noting that the National Plan was developed taking into account the new economic reality caused by irreversible structural changes in all spheres of life.

As a result of the pandemic, global GDP fell to a peacetime record of 3.5%. At the same time, global debt has reached a new all-time high.

The situation on the world oil market and other commodity markets has changed significantly. The pandemic is shaping a new global trade order, reinforcing trends towards self-sufficiency and protectionism. Manufacturing processes are taking on a regional character, as a result of a reduced focus on minimizing production costs in favor of supply reliability.

According to Irgaliyev, the format of virtual interaction is becoming everyday, and digital technologies are becoming a key factor in the competitiveness of business.

The corona crisis is accelerating the global inequality trend. First of all, this is due to a significant increase in unemployment. The burden on the social protection system is increasing. Structural changes in the labor market caused by the formation of the "knowledge economy" are accelerating. Educational models are changing, food security issues are aggravating, approaches to the development of health systems are being radically revised.

In the context of the new reality, the National Plan will ensure the formation of a new development model, which will be based on seven basic principles:

  • fair distribution of benefits and responsibilities;
  • the leading role of private enterprise; fair competition;
  • increased productivity, increased complexity and technological effectiveness of the economy;
  • development of human capital;
  • environmental protection;
  • adoption by the state of well-grounded decisions and responsibility for them before society.

Entering a new trajectory of development will ensure a real growth in the quality of life and incomes of the population.

The National Plan consists of 10 nationwide priorities in three areas: the well-being of citizens, the quality of institutions, and a strong economy.

“The nationwide priority, Fair Social Policy, provides for the implementation of systemic measures aimed at promoting productive employment and ensuring social well-being. To restore the labor market and reduce unemployment, measures will be taken to modernize existing jobs and create new jobs. The introduction of new progressive forms of labor relations will ensure the development of flexible forms of employment,” Irgaliyev emphasized.

The area of ​​social security will be regulated by the country's Social Code. The result of the measures taken by 2025 will be a decrease in the unemployment rate to no more than 4.7%.

“All social obligations of the state in terms of social payments and benefits will be fulfilled in full. The indexation of social payments will be ensured taking into account the level of inflation, as well as the transition from the declarative to the revealing form of the provision of social services will be carried out,” the minister of national economy noted.

The nationwide priority “Affordable and Effective Health Care System” envisions the development of the concept of a sustainable health care system that contributes to the improvement, maintenance and restoration of people's health, as well as the well-being of present and future generations.

Decisive measures will be implemented to improve the availability and quality of medical services, develop human resources and scientific medicine, create a single digital health care space, and promote a healthy lifestyle.

“As a result, doctors' salaries will grow 2.5 times by 2023. By 2025, a transition to patient-centered medicine will be carried out with a focus on improving the health indicators of citizens, as well as guaranteed high-quality medical care in rural areas and cities. In general, 20 modern medical centers and 2 scientific and innovative multidisciplinary clinics in the cities of Nur-Sultan and Almaty will be built in all regions,” Irgaliyev said.

This will provide a significant head start in providing quality healthcare infrastructure for the long term. As a result of the measures taken, life expectancy will reach 75 years.

The nationwide priority of Quality Education provides for the development of competitive human capital for the implementation of the new economic course.

The modernization of the education system will be aimed at improving its quality and accessibility.

“By 2023, teachers' salaries will double. By 2025, physical accessibility of places in preschool institutions will be ensured based on a potential 100% coverage of children. All educational institutions will create conditions for inclusive education. In order to create favorable conditions and environment for learning, 800 new schools will be built by 2025. This will allow solving the problems of emergency and three-shift schools, shortage of student places,” the head of the department informed.

The project of Unified Integrated Educational Online Platform will be launched. Based on the experience of Nazarbayev University, 2 advanced universities will be created in the regions of the country. Centers of Academic Excellence will be created on the basis of the 20 most competitive universities in the country.

The nationwide priority "A fair and effective state protecting the interests of citizens" provides for the improvement of the legal framework aimed at ensuring the real rule of law with the full implementation of the concept of the Hearing State.

As a result, conditions will be created to stimulate economic activity, improve the quality of life and increase the level of protection of citizens' rights.

In order to increase public immunity to manifestations of corruption, work will continue to involve society and business in the formation and implementation of anti-corruption policies.

The nationwide priority "New model of public administration" provides for the introduction of a service and "person-centered" model of public administration, focused on meeting the interests of the population and business.

The nationwide priority "Cultivating the values ​​of patriotism" provides for the implementation of measures aimed at establishing a single nation of strong and responsible people, preserving national identity and modernizing the consciousness of every citizen.

As Irgaliyev noted, conditions will be created for self-realization of youth, as well as for raising the level of the culture of charity.

The national priority "Strengthening national security" provides for the effective protection of national interests within the framework of the National Security Strategy of the Republic of Kazakhstan until 2025.

Its implementation will result in ensuring public safety up to 80%, reducing the share of the shadow economy to 15%.

In the context of the formation of a new system of economic relations, structural reforms will be implemented aimed at developing a diversified and innovative economy.

One of the priorities will be the implementation of a “new agenda” for the development of entrepreneurship, which provides for the formation of a fundamentally new regulatory policy with the introduction of regulatory mechanisms “from scratch” and “regulatory guillotine”, reducing the burden on business, as well as expanding access to financing.

“As a result, the share of medium-sized businesses in the economy will grow to 15%, the number of those employed in SMEs will rise to 4 million people. The main result of the work on the industrialization of the economy will be an increase in the volume of production of the manufacturing industry by 1.5 times,” Irgaliyev said.

In the agro-industrial complex, the main priority will be the formation of large-scale and complex ecosystems. For this purpose, 7 large ecosystems for the production and processing of agricultural products will be created with the involvement of 350 thousand farmers and households.

The volume of gross agricultural production will increase by 1.3 times, the share of processed agricultural products will rise to 70%. The implementation of measures for the digitalization of economic sectors, the introduction of elements of artificial intelligence and Big Data will continue.

Also, the Minister of National Economy stressed that 99% of the country's population will have access to high-quality Internet.

Note that proactive measures to develop tourism will increase the share of the industry to 8% of GDP.

A coordinated macroeconomic policy will be ensured by maintaining fiscal stability and implementing effective monetary policy, as well as developing a competitive and efficient financial market.

The nationwide priority "Active development of economic and trade diplomacy" provides for increasing the real competitiveness of Kazakhstan and strengthening its status as a responsible participant in the world economic community.

In foreign economic policy, the most important priority will be the proactive and targeted attraction of investments, as well as the promotion of Kazakhstani exports.

"As a result, by 2025 it is planned to bring the volume of foreign direct investment to $30 billion. This will ensure the level of investment in fixed assets at the level of 30%, which is comparable to the most dynamically growing economies in the world," the head of the department said.

Non-commodity exports will double to $41 billion. An indicator of progress in the implementation of the tasks of the National Plan will be the Map of Strategic Indicators until 2025. The map includes a list of 41 indicators in three areas, structured by industry, region, with the assignment of responsible state bodies. The result of the practical implementation of the National Plan will be to ensure economic growth at the level of more than 5% by 2025.

Answering journalists' questions about the state debt of the country, Irgaliyev said that today the level of state debt is about 30% of GDP.

“It should be noted that the big three rating agencies assessed the stability of the country's fiscal policy, noted the low level of public debt. If we compare with other countries, with the European Union - there they have a debt level of about 80%, on average in OECD countries — about 100%,” the minister informed.

According to him, the costs of maintenance are about 900 billion tenge.

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