Kazakhstan Entertains Grand Economic Development Plan

Kazakhstan has grand plans to become not just a regional, but a global economic force. Initial moves show that Astana believes that fostering strong regional cooperation is the key to the realization of the country's ambitious goals.

The strategy outlined by President Nursultan Nazarbayev and other officials in effect suggests that Russia, and to a lesser degree China, are now viewed in Astana as the main facilitators of growth – not the United States. Thus, it would appear at present that the more Kazakhstan implements its development agenda, the less geopolitical and economic influence Washington stands to enjoy in Central Asia.

Since the start of 2006, Nazarbayev has spoken repeatedly about his aim to transform Kazakhstan into one of the "50 most competitive, dynamically developing countries in the world" within the next decade. The most recent occasion came on April 5 during a speech to the Russian State Duma. [For background see the Eurasia Insight archive]. Nazarbayev told Russian MPs that average GDP growth over the past five years was roughly 10 percent, adding that the country aims to significantly accelerate growth. If all goes according to plan, Kazakhstan would achieve 350 percent growth by 2015 over the 2000 GDP level.

A government economic development program for 2006-2008 published April 1 stated the government's principle aim to be "creating favorable institutional and economic conditions to raise Kazakhstan's competitiveness in the international arena, as well as living standards," according to the Interfax-Kazakhstan news agency. Per capital GDP is projected to reach over $5,550 in 2008, roughly 50 percent higher than the current level.

Kazakhstan is taking action on many fronts to ready its economy for the global market. For example, in recent weeks, Kazakhstani officials have outlined initiatives to strengthen copyright protection and expand scientific research, local media outlets have reported.

In his speech to the Duma, Nazarbayev called attention to civil service reform that seeks to streamline the bureaucracy while concurrently placing younger technocrats -- "30-35 aged stuff," as the president characterized them – into positions of authority. Nazarbayev also emphasized that the country's legal infrastructure – including the tax code -- has been strengthened in order to foster economic predictability. In addition, the president said the government would pay close attention to agricultural reform, adding that measures already adopted had managed to ease a demographic crisis, in which a lack of economic opportunities in rural areas was accelerating the depopulation of the countryside. "Now we have achieved the reverse situation, in which people strive to move from cities to the regions," Nazarbayev said.

A major element in the Kazakhstani strategy is accession to the World Trade Organization. Foreign Minister Kasymzhomart Tokayev stated in mid March that Kazakhstan aimed to join the group in 2007. In his state-of-the-nation address March 1, Nazarbayev pledged that Kazakhstan's legislative framework would soon conform to WTO standards. WTO accession would open "vast opportunities for strengthening Kazakhstan's competitiveness," Nazarbayev said.

To further enhance the country's global standing, Astana continues to seek the OSCE chair in 2009. During a late March visit to Kazakhstan, Belgian Foreign Minister Karel de Gucht, the current OSCE chairman-in-office, characterized Kazakhstan's bid as "both a challenge and an opportunity." He added that Kazakhstan was the "worthiest candidate" in Central Asia, which he described as a "very important" region. "For the OSCE, it is very important that in the future, one of the countries that, as we say, is