Head of State Kassym-Jomart Tokayev delivers his annual Address to the People of the Republic of Kazakhstan “Kazakhstan in the Era of Artificial Intelligence: Current Challenges and Their Solutions through Digital Transformation” at a joint session of the chambers of Parliament.
The event is attended by deputies of the Senate and Majilis, heads of central government bodies, members of the National Kurultai, representatives of the public and work collectives.
- Last week a new session of Parliament was opened. I wish you success in your work! It is safe to say that the past session was fruitful. Many laws necessary for the country were adopted, issues of concern to citizens were discussed in detail.
During the summer holidays, the deputies traveled to the regions and met with local residents. Now it is necessary to analyze the problems raised by citizens, work them out with the Government and take them into account within the framework of the current session. In general, the deputies of the Parliament play an important role in the implementation of cardinal reforms in our country. I express my deep gratitude to you, - said Tokayev.
Speaking today at a joint session of the chambers of Parliament, Kassym-Jomart Tokayev ordered the creation of a new ministry in the republic.
"Based on large-scale digitalization and active implementation of artificial intelligence technology, we must modernize the economy. As a first step, we should accelerate the adoption of the Digital Code," the Head of State said.
This document should define key areas of digitalization, including artificial intelligence, platform economy, the use of big data and other aspects.
To become part of the new technological order, it will be necessary to restructure the entire system of public administration with a multiple increase in its transparency, efficiency, and human-centricity.
“Therefore, I believe that on the basis of the current specialized ministry, it is necessary to create a Ministry of Artificial Intelligence and Digital Development, which should be headed by a specialist with the rank of Deputy Prime Minister,” Kassym-Jomart Tokayev instructed.
The Government is tasked with ensuring the total implementation of artificial intelligence to modernize all areas of the economy.
In order to increase Kazakhstan’s competitiveness, it is necessary to reconsider our approaches to our work, the President said.
The President proposed renaming the Committee for the Return of Illegal Assets of the Prosecutor General's Office .
"In my opinion, it is time to rename the Committee for the Return of Illegal Assets of the Prosecutor General's Office to the Committee for the Protection of Investor Rights. It must be said that the Prosecutor General's Office has worked well with the owners of illegal assets. About 850 billion tenge have been returned to the treasury. This money was used to build 10 schools and 4 sports facilities, construct and modernize 235 healthcare facilities and 177 water infrastructure facilities , " the Head of State concluded.
The Head of State gave this instruction at a joint session of the chambers of Parliament.
"Despite the intensification of global competition for capital, our country needs to attract large investments. We need to launch a new investment cycle. The current policy in this area cannot be called effective. A significant portion of funds goes to the raw materials industries. In general, this is not bad, we need such investments. But now we are faced with another task - to direct investments to the manufacturing industry," the President emphasized.
Therefore, the Government has been instructed to review investment policy and, if necessary, provide preferences for investors working in the field of high technology.
"Along with this, it is necessary to equally support both public investments and large-scale private initiatives. We will have to work on a broad front with both large and medium-sized and small investors," the Head of State continued.
According to the President, it is necessary to clearly define where, why and in what volume funds are needed. The "investment order" must be formed in accordance with the needs of the production sector. The country has developed a cumbersome and disjointed system of interaction with investors. It inevitably leads to bureaucracy and duplication of functions. In the current difficult situation, attracting investments is a priority task that requires new approaches.
He also noted that in any case, all organizational work to attract investment is entirely entrusted to the Prime Minister. There is no need to establish a new ministry. However, it is striking that the name of none of the state structures contains the word "investments". This issue is under the jurisdiction of three or four institutions and has not been resolved. Therefore, the Prime Minister was given 10 days to develop specific proposals.
“In addition, I instruct the Government to develop an action plan as soon as possible to radically update the investment attraction system,” emphasized Kassym-Jomart Tokayev.
Kassym-Jomart Tokayev called the work of special economic zones in the republic unsatisfactory.
In order to increase the effectiveness of SEZs, the government should prepare to take decisive measures based on a thorough examination. Private companies, including foreign ones, could be involved in managing special economic zones, the Head of State suggested.
Social entrepreneurship corporations should also be key drivers of regional economic growth. However, in practice, many SPCs limit themselves to managing municipal property and implementing minor projects that do not have a significant impact on regional economies. The government needs to transform such corporations into full-fledged development institutions.
Successful attraction of investments is the result of coordinated work not only of central but also of local executive bodies.
" To secure the direct responsibility of all akims, an index of investment attractiveness of regions should be introduced on the basis of the Agency for Strategic Planning and Reforms. Independent experts should probably be involved in this work.
The most important key factor in creating a favorable investment climate is macroeconomic stability.
But today the main problem is high inflation, which "eats away" the growth of economic indicators and incomes of the population. There is no ready-made recipe for solving this problem, most countries face it, it is essentially universal, but in our conditions it has acquired a particularly acute character.
We need to break out of this macroeconomic vicious circle. We should overcome the difficulties that arose not yesterday taking into account the best world experience, being ready to accept responsibility for unpopular measures.
The Government and the National Bank must act as one team facing a task of national importance. Now is not the time to engage in a tug-of-war," the President noted.
Speaking with the annual Address to the People of Kazakhstan, Kassym-Jomart Tokayev stated that the state will protect the interests of conscientious taxpayers, directing their taxes towards the development of the country.
“We have made significant progress in digitalizing public services for citizens, but for businesses, bureaucratic procedures still represent a serious barrier; digitalization does not fulfill its purpose.
The situation needs to be urgently changed, primarily in the area of tax administration. The State Revenue Committee must become the flagship of digitalization among government agencies, effectively using the potential of artificial intelligence in the interests of taxpayers. These systemic steps are aimed at creating a fundamentally new, service model of relations between the state and business.
The new Tax Code should not just change the rules and procedures, but form a new mentality of taxpayers based on honesty and transparency. The state will protect the interests of conscientious taxpayers, directing their taxes to the development of the country. Every tenge paid in taxes should be returned to society in the form of high-quality public services, infrastructure, and government support measures.
Development institutions should play an important role in increasing entrepreneurial activity. But there are a number of shortcomings in their work. There is a pressing need to reboot the activities of development institutions. These structures should act as full-fledged development institutions with clear industry specialization, deep analytics and a mandate for investment."
Head of State Kassym-Jomart Tokayev stated that the Register of Mandatory Requirements should become an important tool for protecting businesses from excessive inspections.
- The share of small and medium businesses in GDP has already approached 40%, and in the employment structure – almost 50%. These are good indicators. But without further systemic development of this sector, we will not make a breakthrough in either economic development or in improving the quality of life. It is no secret that out of more than two million active small businesses, less than six percent are engaged in production. In the medium business segment, this indicator is higher, but does not inspire optimism.
Last year, I signed the Decree "On measures for further liberalization of the economy", which laid the foundation for the transition to a more open, business-oriented regulatory model. But the Decree is not being fully implemented. The issue of reviving entrepreneurial initiative is still on the agenda, so the legal framework should be modernized. There are 21 codes and more than 300 laws in the country. They are overloaded with amendments that often contradict each other and, ultimately, hinder business development. A deep revision of the legislation is required. Artificial intelligence technologies make it possible to do this quickly and effectively, the President said.
He reported that a Center for Regulatory Intelligence will be created on the basis of the Agency for Strategic Planning and Reforms (ASPIR), whose task will be to bring order to legislation and prepare clear and effective solutions.
- We should not complicate the legislation, but adapt it to the needs of entrepreneurs and increase the personal responsibility of ministers and akims for the results. I am receiving signals that government agencies continue to make the most severe administrative decisions regarding businesses instead of preventive measures. This is unacceptable. The Register of Mandatory Requirements should become an important tool for protecting businesses from excessive inspections. It is necessary to accelerate its full implementation with an additional revision of the standards for compliance with the Entrepreneurial Code, - added the Head of State.
By the Kazakhstanskaya Pravda
