Kazakhstan Government Moves Forward With Ambitious Innovation Plan

Plans to create a modern high-tech, knowledge-based, service-oriented economy and triple the GDP by the year 2015.

WASHINGTON, March 12 - Kazakhstan's economy is to be diversified and new high value-added industries to be developed under the new industrial plan that was discussed at the March 11 Government meeting in Astana. The State Industrial and Innovation Development Program, as the plan is called, provides a blueprint for creating a modern high-tech, knowledge-based, service-oriented economy and tripling the GDP by the year 2015.

The program, developed by several ministries during a year, sets several stages for the development and outlines necessary legislative and other conditions to be met. Besides the existing financing mechanisms, such as the National Fund, where more than $2 billion have accumulated over a two-year period, and the National Development Bank, the ministers would also seek to promote business development through the establishment of an export guarantee corporation and an investment fund.

"The program's main difference from the previous ones is that it is directed at a productive cooperation with the private businesses," Prime Minister Imangali Tasmagambetov said.

"If we are copying someone else's model, focusing on the low-tech industries, we will always be behind," Deputy Prime Minister Karim Massimov told The Washington Times last November. "We think it is in the nature of the post-industrial economy that even a country like Kazakhstan can be an excellent partner for the United States on very high-end projects," he said.

Kazakhstan hopes to use its vast oil and gas reserves as a base to diversify into promising high-tech sectors, including software production, biotechnology and aerospace. Experts expect private investment as part of the program to be $80 billion.

The Government will fine tune the plan and send it to the President for approval.

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