KAZAKHSTAN: 'Productivity-2020' Program

The key framework industrial policy is anchored in the Program ‘Productivity 2020’ adopted pursuant to the Government Decree №254 dated 14 March 2011. The legal grounds for the design and implementation of the program were laid down by the Law of the Republic of Kazakhstan on Government Support to Industrial and Innovative Development dated 9 November 2012, and the Presidential Executive Order on the State Program for Accelerated Industrial and Innovative Development of the Republic of Kazakhstan dated 19 March 2010 № 958. The program sets out the frameworks for inclusive, sustainable and dynamic industrial development in the Republic of Kazakhstan. To achieve tangible results, target indicators are established for labor productivity, capacity building, and energy efficiency. Various regulatory measures shall be used for enhancing the levels of industrial productivity through modernization and refurbishment of industrial enterprises, deployment of innovative technologies and introduction of best management practices. --- As observed from the data contained in Art. 3, the industrial sector contributes to the achievement of Kazakhstan’s development agenda through strengthening competitiveness and accelerating growth of the national economy. In 2010, the industrial sector accounted for 32 per cent of GDP. Considerable growth was observed in mining industry – 5.8 per cent, manufacturing – 19.1 per cent, power and gas supply. Significant efforts were undertaken to diversify the national economy away from natural resource-heavy industries, furthermore, the policy proposes steps to remove existing impediments to economic growth such as lack of physical infrastructure capacities, high borrowing costs (investments), amortization of fixed assets, and high energy intensity observed in key industrial sectors. --- The policy addresses the period up to 2020, two implementation stages are envisaged: 2011 – 2014: the 1st stage (pilot stage) and 2015-2020: the 2nd stage.