13/06/08 Greeting Speech of Prime Minister Karim Massimov for the Second International Business conference of Asian Society
Good morning ladies and gentleman, I am grateful for the opportunity to speak with you this morning about developments in my country and to discuss our goals for a continued partnership with Asian Society.
My special thanks to Ambassador Holbrook for organizing this event. It is the second time Asian Society meets in Kazakhstan. This time it is being held in Astana at the eve on Astana's 10th anniversary which makes it very remarkable. We take pride in Astana, the city which symbolizes our achievements and great prospects for Kazakhstan's bright future.
Foreign direct investment in Kazakhstan's economy is at the center of our plans for building a more prosperous country and a better future for our own people, as well as people's throughout the region. In this strategy, foreign investment leads the way.
Today, 80% of all the foreign direct investment in the nations of Central Asia is directed to Kazakhstan. By now foreign direct investments have accounted for about 70 billion U.S. dollars in total.
Foreign investors have been provided with a stable investment Climate and a reliable partner in the Kazakhstan government. Our citizens have in turn benefitted from a period of dynamic economic growth that is now poised to spread well beyond extractive industries. Indeed, last year, domestic investments in the economy exceeded foreign direct investment in the energy sector.
Our economy has grown by over 10% per year over the last 5 years. We expect to be in the top ten of the world's energy suppliers by 2015. Kazakhstani grain and livestock help feed the world. The services and manufacturing sectors are growing. I can say with confidence that Kazakhstan is ready to take its place in the WTO and intends to provide the economic hub for Central Asian development.
All of this means we can deliver a better life for our people: better health care, better education; improved infrastructure, and many benefits that may be taken for granted in the developed world, but which are more recent improvements for Kazakhstanis.
My message this morning is simple: Kazakhstan has set an irreversible course for the future. We are growing a market economy and we are establishing democratic institutions defined by the rule of law and respect for human rights. Our goal is to be among the 50 most competitive countries in the world within 10 years.
To understand the depth of our commitment to these goals, it may help to consider how far we have come since declaring independence from the Soviet Union. In 1991, the new nation of Kazakhstan comprised 15 million people from over 100 ethnic and national groups. Within this territory was the 4th largest nuclear arsenal in the world. President Nazarbayev led a predominantly Muslim country with over 40 religions that confronted many security challenges. The legacy of the Soviet rule left the country with few institutions to mediate conflicts. Just as importantly, the new nation faced an uncertain future and lacked the political traditions and structures necessary to set a clear path forward. We faced a long struggle to build a new, peaceful nation in an unstable part of the world.
Over the last 16 years, we have eliminated all 1,300 nuclear weapons from our country. We have become the Asian model for creating respect and accommodation among religious and ethnic groups. We have created the permanent Congress of World and Traditional Religions to encourage continuing dialogue. By the 2002 the US had granted Kazakhstan market economy status. In 2003, we passed an investment law to provide a stable and attractive investment climate. Our Constitution has moved from a presidential system to a presidential-parliamentary system of shared responsibility Now, in 2007, we have been elected to the 2010 chairmanship of the Organization for Security and Cooperation in Europe; the first non-European nation to lead this 56-nation organization.
The OSCE decision is a vote of confidence in the direction we have set for the country. Yet, we recognize that we still have more work to do. Our partners in the international community and the OSCE are providing valuable advice as we implement further political reforms and develop the institutions of civil society.
To create a more diverse economy, we are making important changes to the tax code to provide incentives for investment in new enterprises. Taxes will be dramatically reduced and simplified. We intend to create an environment for sustainable economic growth by encouraging the development of small and medium sized enterprises.
Modernizing our approach to natural resources concessions will help us accomplish our economic goals. As we establish new concession laws in the energy and mining sectors however, we recognize that economic success requires that existing contracts are honored by all parties and that the rights of investors are protected. A modern economy is not possible where contracts are not binding. Resource nationalism is not a policy for Kazakhstan.
We seek achieving six ambitious goals:
• First, we seek to complete the process for accession to the WTO
• Second, we intend to modernize legal and regulatory structures to provide transparent and predictable rules for everyone;
• Third, we will make the policy changes necessary for economic diversification and development of the business sector
• Fourth, we will invest in sustainable growth by improving training and professional development;
• Fifth, we will continue to press forward with effective anti-corruption measures;
• And sixth, we will develop a consistent vision for regional economic cooperation with our neighbors.
Working in partnership, we can accomplish these things. The government side must maintain the political will and sustained attention necessary achieve to these objectives.
But the private sector must also play its role in this partnership. To succeed, you must serve as advocates for these shared objectives. By lending your active support, it becomes more likely that they will happen. The private sector also has technical expertise that can be applied. For example, when we speak of training and workforce development, the private sector can play a decisive role. And, of course, private companies are in day-to-day contact with enterprises throughout the region; by facilitating business-to-business cooperation in pursuit of these goals, the private sector will be a true partner.
Our partnership between government and business is ambitious and certainly there will be challenges ahead. But our recent history in Kazakhstan suggests that these things can be done. Our future is bright. In solving any issues that arise, you will find willing partners in the people of Kazakhstan and their government. We invite you to explore the opportunities.
Thank you for inviting me.
I look forward to our discussions today.
