WEEKLY REVIEW. Private sector must be actively involved in economic development of Kazakhstan - Prime Minister K. Massimov

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ASTANA. November 19. KAZINFORM /Muratbek Makulbekov/ The forthcoming Summit of the OSCE Leaders in Astana scheduled for December 1-2, 2010 is an unprecedented event for our country. As Minister of Emergencies Vladimir Bozhko said at the Governmental Hour in the Majilis on Monday, November 15, 1, 439 employees of the

emergence departments, 213 units of special transport vehicles and 2 helicopters of the Ministry will be engaged in ensuring industrial and fire safety during the Summit.

On the same day Minister of Transport and Communications Abelgazy Kussainov participated in an online conference at the BNews portal during which he told about ensuring transportation of the Summit's delegations. Thus, Astana Airport must receive and send 70 aircrafts in a day. Additional 22 parking sites have been built and 113 units of transport vehicles are being purchased currently. 187 employees of other airports are involved in this work. The Airport of Karaganda city is getting ready to meet the foreign guests too. As for auto- and railway transport, more than 2 thousand comfortable railroad cars are prepared for transportation of the passengers from Karaganda to Astana. 30 buses will serve this route too.

The Ministry of Economic Development and Trade, in turn, intends to control the prices which may get higher prior to the Summit. On Wednesday, November 17, there was held a conference on keeping the prices for socially important goods down during the Summit and winter holidays. Chairman of a Committee of the Ministry A. Kazybayev said that every December the population of the country worries about the high prices caused by holidays. This year we can face such a risk connected with the OSCE Summit and the VII Asian Winter Games. Therefore, it is important to prevent increase in prices for most important products: sugar, salt, rice, buckwheat and vegetable oil. A. Kazybayev proposed the producers to monitor the prices of their products and prevent their fluctuations.

On Thursday, November 18, Astana held the II Economic Forum "Expert-100-Kazakhstan" which was attended by Prime Minister of the country Karim Massimov. Delivering a speech he noted that the Government laid special emphasis on participation of the private sector in implementation of the economic diversification plans.

"The issue of attracting business to participation in the economic development is of special importance for Kazakhstan", K.Massimov said. The Prime Minister noted that in 2009 and in first half of 2010 the role of the Government was much bigger as long as state resources were involved in the crisis overcoming. To date businessmen should be more active", he stressed.

Besides, the Head of the Government said that the results of Kazakhstan's economic development in first 10 months of the year were encouraging. The GDP growth was up to 7%, the industrial output was 10%.

He also informed that the Government would support those businessmen who modernize their enterprises. According to the PM, Kazakhstan needs to move forward to increase its energy efficiency. "The issue of the support from the state in the sphere of modernization of enterprises is a delicate one. Though, the state is ready to provide assistance in the field of increase of production and energy efficiency", the Premier emphasized. "I believe that there is no reason to support old enterprises and try to freeze the current state", K. Massimov added.

One of the important steps in Kazakhstan's post-crisis development must be placement of the shares of SamrukKazyna National Welfare Fund at the securities market which is scheduled for the beginning of the next year. The citizens can benefit from it through purchasing them and sharing profit of the Fund's companies while SamrukKazyna itself will get an opportunity for attracting funds for further development of the securities market and economy, in whole.

"At a sitting of the Board of SamrukKazyna Fund we took a decision on privatization and possible placement of the shares for the Kazakhstanis including the shares of the pension funds and large companies entering the group of the Fund", the Prime Minister said. "Our citizens should increase their qualification in order to participate in these programs", he noted and added that the Cabinet had been drafting a special program for professional education of the Kazakhstanis.

After then, K. Masismov informed of adoption of the Common Rules of Subsidizing based on the fundamental principles of the World Trade Organization which aimed at creating equal conditions for the Kazakh and Russian enterprises after establishment of the Common Economic Space. Establishment of the Common Economic Space by Kazakhstan, Russia and Belarus is scheduled for early 2012.

On Wednesday the Prime Minister held a working conference on development of car production in Kazakhstan. The meeting was attended by attended by the representatives of all interested central and local executive bodies and Russia's Sollers Company. As the PM's press service informs, the conference focused on a proposition initiated by the working group concerning establishment of a car assembly plant in Kostanay. According to Vice Minister of Industry and New Technologies Berik Kamaliyev the idea of establishment of the production in this town was thoroughly discussed. The main factors of choosing this town are its location (not far from Rusisan markets) and presence of car assembly production and necessary infrastructure (gas, warehouse and production facilities, railway sidings etc.) on the ground of Agromashholding Company which will allow reducing logistics expenditures. Following the discussion the PM gave certain instructions on identifying the site for establishment of the production line in Kostanay, models of the cars as well as to consider the issues regarding taxation and state support measures.

The working meeting held November 18 on development of suburban areas of Astana under the chairmanship of K. Massimov focused the draft Integrated plan for socio-economic development of populated areas of suburban areas of Astana for 2001-2013 was considered and approved at the meeting. The project was developed by the instruction of the President. It is aimed at solving urgent social and infrastructure problems, increasing standards and quality of life of rural localities. Governor of Akmola region Sergey Dyachenko, Senate deputy Svetlana Zhalmagambetova also took part in the meeting.

On Friday, November 19, K. Massimov participated in the sessions of the Interstate Council of the Eurasian Economic Community and the Council of the CIS Prime Ministers Council. At an enlarged session of the CIS Prime Ministers Chairman of the Russian Federation Vladimir Putin noted that interaction within the Commonwealth of Independent States was continued. According to him, at the stage of emerging from the global economic crisis there is significant increase in trade turnover. Over eight months of 2010 the mutual trade turnover of the CIS states increased by 30 percent. "It means that we work in right direction. Our task is to maintain this momentum", the Russian Premier stated. "There are many problems, but we have gathered today for their discussion", V.Putin resumed.

At the 28th session of the EurAsEC Interstate Council the Kazakh Prime Minister said that the EurAsEC member countries had come to a principal agreement on the most important issues. The agenda of the sitting included 18 issues concerning primarily formation of the Customs Union, the course of implementation of the Action Plan on establishment of the Common Economic Space and the Plan on realization of the EurAsEC Food Security Concept. The heads of the governments discussed also the work of the High Technologies Center and activities for 2011-2013 and further years on implementation of the priority directions of development within the EurAsEC.

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