President Tokayev's reforms changing lives of all Kazakhstanis
It has been one year since President Kassym-Jomart Tokayev became the President of Kazakhstan following elections on November 20, 2022. More about the key aspects of Tokayev's year in office, examining the domestic, economic, and foreign policy dimensions is in the latest article of Kazinform News Agency.
November 2022 elections were the second where Tokayev was running as a candidate. In his address to the nation on September 1, 2022, he announced early presidential elections, which Tokayev won with a landslide victory garnering more than 80% of votes.
Domestic policies
One of the notable features of Tokayev's presidency has been his emphasis on political and social reforms. He has pledged to promote a more inclusive political environment, inviting opposition voices to participate in the political process. However, skeptics argue that tangible changes in the political landscape have been limited, with the dominance of the ruling party persisting.
Over the years, Kazakhstan went through several stages of reforms, what State Counselor Erlan Karin describes as a “phased and consistent modernization of the political system.”
The constitutional referendum in June 2022 initiated major changes. On November 5, 2022 President Tokayev signed these changes into six laws. The adoption of six laws resulted in the redistribution of the powers of the President to other institutions of government, including the limit of presidential term, the reformatting of the representative branch of government, the improvement of the electoral system, the strengthening of human rights institutions, as well as the modernization of the electoral process.
Starting January 1, 2023, the Constitutional Court began to work in Kazakhstan. Now every citizen is able to directly defend their constitutional rights and freedoms in this body. Human Rights Commissioner and Prosecutor General can also apply directly to the court.
Following the presidential elections, elections were also held in the Senate, an upper chamber of the Kazakh Parliament, in January 2023, and in the Mazhilis, a lower chamber, in March 2023. For the first time since 2004, the Mazhilis elections featured single-mandate candidates. Out of 98 seats in the chamber, 29 were elected from single-mandate constituencies, and 69 from party lists.
“Last year's presidential elections were the first step towards a complete reboot of the entire system of public administration. The reset itself was necessary to ensure that the amendments to the Constitution adopted at the referendum came into force as early as possible. This is due to the social demand for change and reform. (…) The elections made it possible to increase the priority of the socio-economic agenda and the social block of issues was probably the main one in the election program of candidates for the President of Kazakhstan,” Yermek Toktarov, Head of Strategic Analysis Department at Kazakhstan Institute for Strategic Studies (KazISS), told Kazinform.
On November 5, 2023, at Tokayev’s initiative, elections of akims of pilot districts and cities of regional significance were held for the first time. The regional maslikhats approved a list of 42 districts and 3 cities of regional significance for holding these elections.
125 candidates were included in the ballot papers. Voter turnout was 62.79%. The average age of elected akims is 46.7 years.
Social sector
Starting from July 1, 2023, the new Social Code came into effect. The document covers issues of social support from birth to adulthood, employment, labor safety, social insurance, assistance in difficult life situations, support for the elderly, among other issues.
To strengthen the social protection of motherhood and childhood, a number of additional measures were provided. From the beginning of the year, the period of payment for child care has been increased to 1.5 years. To date, more than 450,000 families have received such assistance.
The benefits paid to people with disabilities, their guardians and families who have lost their breadwinner increased by 14.5%.
“For example, since the beginning of the year the minimum wage has increased to 70,000 tenge. This measure increased incomes for 1.8 million working people in Kazakhstan. How does it work? On the one hand, those who received income at the minimum wage increased it by at least 10,000 tenge. Also, according to the law, the minimum wage is not taxed, that is, it is deducted from the total amount of taxable income,” said Toktarov.
Another notable initiative in the social sector is the National Fund for Children. 50% of the National Fund’s annual investment income will be deposited in special savings accounts for children until they reach the age of 18, with no early withdrawal rights. When they reach that age, the accumulated funds will be used to purchase housing and get an education.
The program is expected to launch on February 1, 2024. President Tokayev signed law on payments to children from National Fund on November 16.
“From September 1, 2023, scholarships for all students who received a grant also increased by 20%, as well as scholarships for master’s and doctoral students increased by 15%. This is a significant addition to the income of young people who are studying,” said Toktarov.
Economic challenges and reforms
Kazakhstan's economy has long been dependent on its vast energy resources, particularly oil and gas. Tokayev faces the challenge of diversifying the economy to reduce its reliance on these commodities. His administration has initiated economic reforms, focusing on industrialization, innovation, and small and medium-sized enterprises (SMEs).
The global economic downturn, exacerbated by the COVID-19 pandemic, has added urgency to Kazakhstan's economic challenges. Despite facing headwinds, Tokayev's government has implemented stimulus measures and sought foreign investment to spur economic growth. The success of these initiatives will be crucial in determining the long-term stability of Kazakhstan's economy.
In his September address, Kassym-Jomart Tokayev outlined a comprehensive plan for transitioning the country to a new economic model, one that is focused on fairness, inclusiveness, and pragmatism.
The emphasis is on developing manufacturing sectors such as heavy engineering, uranium enrichment, and automotive components. Kazakhstan also aims to reduce its reliance on imports and become more self-sufficient in meeting its domestic needs. This includes strengthening the defense industry and modernizing the national army with high-tech weapons and equipment.
Another notable area in economic dimension is the country’s efforts to attract foreign direct investments (FDI). Overall, it aims to bring the total FDI inflow to $150 billion in the next 7 years. In 2022, Kazakhstan attracted a record of $28 billion since 2012. In the first half of the year, the volume of FDI reached $13.3 billion, according to the Kazakh Ministry of National Economy.
Return of illegally acquired assets
Tokayev pushes hard to crack on corruption, and while the results may not be seen outright, some efforts are notable. One of them is the efforts to return illegally acquired capital to Kazakhstan.
In July 2023, President Kassym-Jomart Tokayev signed the law on the return of illegally acquired assets to the state. This law establishes a comprehensive framework for the government to identify, seize, and return assets that have been acquired through corruption or other illegal activities. The law also protects the rights of bona fide purchasers, ensuring that they are not unfairly penalized.
The government has established a special commission to oversee the return of illegally acquired assets. The commission is headed by the Prime Minister and includes representatives from various government agencies. The working body of the сommission is the Asset Recovery Committee of the General Prosecutor's Office of Kazakhstan, which has begun work in accordance with the law.
Kazakhstan is also working with international partners to track down and recover illegally acquired assets.
During the meeting with President Tokayev on November 2022, Anti-Corruption Agency Chairman Askhat Zhumagali reported that since 2022, the return to the budget and entities of the quasi-public sector of property assets and funds in the amount of about 857 billion tenge has been ensured.
“Of these, 159.8 billion tenge are in the form of funds from foreign jurisdictions. This amount went to the state budget. Thus, 36.8 billion tenge was returned from Austria, 116.7 billion tenge from Liechtenstein, 6.3 billion tenge from the United Arab Emirates, and 253 million tenge from Türkiye,” said the Akorda statement.
Packed diplomatic schedule
Kazakhstan has historically pursued a multi-vector foreign policy, balancing relations with major powers like Russia, China, and the West. Tokayev's first year has seen a continuation of this approach, maintaining strategic partnerships while actively seeking to broaden diplomatic ties.
The year was full of visits of foreign leaders to Kazakhstan, but it was packed with Tokayev’s official visits to foreign countries. Tokayev's emphasis on diplomacy aligns with the nation's longstanding commitment to being a stabilizing force in Central Asia.
Under Tokayev’s leadership, Kazakhstan sent assistance to Türkiye, when it was hit by a devastating earthquake in February 2023.
The nation also continuously assisted Afghanistan, with Tokayev reiterating the need to bring peace and stability to Afghanistan.
Among the latest is Kazakhstan’s $1 million aid to Palestine.
With the latest changes that limit presidential term to a single seven-year term, Tokayev has now six years left in as the President of Kazakhstan.
Declining incomes remain the biggest concern among people in Kazakhstan. However, Yermek Toktarov shows optimism.
“For example, according to KazISS data, in February 2022, 66.5% of Kazakhstan’s citizens surveyed were dissatisfied with prices for goods and services. A measurement carried out in August 2022 showed that the level of dissatisfaction with prices for goods and services increased to 78.3%. Therefore, we see that in 2023 the state is already taking active measures to increase the income of the population,” he said.
While Tokayev's presidency has shown a commitment to addressing various challenges, including political reforms and economic diversification, the road ahead is fraught with obstacles. Striking the right balance between political stability and liberalization, navigating economic uncertainties, and managing external relationships in a rapidly changing global landscape pose significant challenges.
