Yesterday in Astana at the joint session of Parliament Chambers the state leader Nursultan Nazarbayev made an annual address to Kazakhstan nation on main directions of home and foreign policy

Dear compatriots!

1. What we started with

Photo: Sergei Bondarenko, Bolatbek Otarbayev

It was not long ago since the nineties of last century passed into history, when our life changed radically, when Kazakhstan gained independence. The years were marked by intensity of emotions. They were the years, when most important decisions were taken, on which the fate of our state depended, when one wrong step could drastically change the country’s pathway. All this time the nation has entrusted me with the country’s leadership and I do my best to justify your faith in me, annually verifying with you main directions of our strategic course.

Today, practically one and a half decade later I am inviting you to sum up our joint work. We have much to be proud of.

What did we come to the start with, what were our chances?

Socio-economic and political situation was critical. Outside assessment of economic and political chances for Kazakhstan was: the country with lame economy; empty coffers; undeveloped political system; the country, living on the Soviet Union Constitution, inheriting from it a certain military potential.

World community was not interested in us, they were only concerned about our nuclear potential.

“Could we have lived through all that?” – the succeeding generation of state management may wonder 20-25 years later, summing up the results of “Kazakhstan development Strategy up to 2030” and assessing our initial potential and the changes’ outcome.

I am sure they will envy us. They will envy our resolve, vitality, creation and freedom. Only those strong in spirit could have accomplished what we have today.

We also had a plain and clear goal – we wanted a better life, freedom, worthy future for our children and grandchildren. It took us years, years of our life to achieve what we have. Our efforts were rewarded.

We take a 10-year term, when our own national currency started working, hence economic independence became a reality. 10 years is also a jubilee of our Constitution, owing to which our country has gained stability and economic prosperity.

2.Redoubling GDP we will build another Kazakhstan together

2.1. We have built up a viable market economy

Staking on radical economic reform we managed to implement market reforms, created appropriate legislature. Today Kazakhstan has a really working market economy.

A decade ago GDP per capita was a little over $700 , but in late 2004 it reached $ 2 700 , this year index is forecast at about $3000 .

I think by the year 2010 it will be possible to reach $ 5 800 GDP per capita, present index of Czech Republic, Hungary, Poland, Malaysia, and by 2015 – about $ 9 000 . Though in parity of purchasing power we are close to these figures.

By 2010 we plan to increase GDP two-fold against the year 2000, but already now we assume Kazakhstan economy redoubling could be attained by the year 2008.

At present the main source of economic growth is utilization of our raw materials potential. In comparison to 1985 we increased the volumes of hydrocarbon extraction by 225%, while in the whole world the extraction grew less than by 1,3 times.

About $ 30 bln of direct investments was attracted into economy. These are very high indexes. Investors are aware that Kazakhstan is a reliable partner, that guarantees stability and mutually beneficial cooperation.

Financial system of Kazakhstan is recognized as progressive, international experts confirm it.

Kazakhstan was the first in CIS to establish National fund to secure stable socio-economic development, decrease dependence on unfavorable external factors.

By-date $ 5 bln 300 mln has been accumulated in the national fund. Gold-value reserves adjusted to National fund exceed $14 bln. We couldn’t even dream of it a decade ago.

We have been consistently pursuing open foreign trade policy. In 2004 volume of external trade turnover approximated $ 33 bln with positive balance exceeding $ 7 bln and grew more than three times as much against 1994.

External trade geography has diversified. In the first years of independence it mainly involved CIS.

In 2004 EU countries, Russia, Switzerland and China were leading in Kazakhstan commodity turnover structure.

We are becoming part of world economy, involved in the stream of global competition.

2.2. We started living better

Kazakhstan is currently positioned by the World bank among the average-income states.

If we compare main characteristics of living standards we can see that on average in the last 10 years people’s cash incomes have grown five times as much; average monthly wages have grown almost 6-fold; minimal salary increased by 25 times; average pension size – by 4,6 times; individual bank deposits and deposit volumes per capita – by 35 and 37 times accordingly. State expenditures for guaranteed medical assistance in the expired year alone have grown over 1,7 times against the year 2003.

Onward economic growth enabled considerable enhancement of social direction of state expenditures, indicative of the achieved economic safety margin.

In a record short term we have constructed a new capital in the very heart of our country. Astana transformation is impressive to the eye, it is the pride of Kazakhstan residents.

2.3. For the first time in our history we have built up an independent state, based on western democracy principles, taking count of advanced East Asia states’ experience and specific conditions of our multi-national and multi-confessional society.

We have always remembered that democracy is our end, not the beginning of our way. We were fully aware that democracy cannot be decreed, it has to be worked for.

Kazakhstan statehood is a fact. We pattern our political development after western democracies and the so-called “new” Asian democracies, known in the world for their social progress and political pluralism.

We achieved tangible results in political life liberalization. Suffice it to say that:

- In Kazakhstan democratic institutes develop continuously; free democratic elections are held; principle of power branches division is being carried out in terms of checks and balances;

- Political pluralism and multi-party system in Kazakhstan is a fact; any Kazakstan national is free to join any public or political association;

- Civil society Institutes and structures, including over 5 thousand NGO are functioning;

- We have laid foundation of independent judicial system, supremacy of law is being consistently implemented. Public credibility in judicial system is growing ;

- Freedom of speech is guaranteed in Kazakhstan, we have no censorship; non-state media are working. Suffice it to remember a veto on the media draft, limiting the freedom of press. It reaffirms our state’s adherence to the course of freedom of press;

- In Kazakhstan strides are taken and results are achieved in ensuring human rights and freedoms; ombudsman Institute has been established, National commission for democracy and civil development is working;

- any national has the freedom of movement, and is free to choose his occupation, to elect and to be elected.

- Kazakhstan has provided freedom of religion, consistently pursuing the policy of multi-confessional accord and religious equality.

- moratorium on capital punishment was imposed;

- we suppressed organized crime;

- Kazakhstan was the first to adopt anti-corruption law.

At present we have reached a certain level of political system modernization. Solomon Passy, OCSE chairman made a note of Kazakhstan progress in democratic reforms.

Photo: Sergei Bondarenko, Bolatbek Otarbayev

2.4. Kazakhstan has become a leader in the region, respected by international community, active fighter against international terrorism, drug trafficking, and proliferation of nuclear weapons.

We have struck the path of demilitarization and nuclear disarmament, closed down Semipalatinsk polygon.

Kazakhstan initiated integration processes on Eurasia space. We initiated CICA. Famous Russian scientist academician A. Agabegian recently noted that “Kazakhstan and China have the highest rates of economic development”.

2.5. Where are we heading for ?

Together we have built up a sound foundation for onward movement towards free economy and free nation. What is my vision of the future?

Radically new stage in economic and political development, further modernization and democratization of Kazakhstan – this is our agenda.

My further efforts therefore will be directed towards:

- statehood consolidation, development of modern, democratic legal state;

- providing of stability in the country and in the region: development of regional and international cooperation;

- dynamic economic development in the light of globalization and NT with the focus on non-primary sectors;

- education, professional training and social sphere in keeping with XXI century standards;

- civil development, civil rights and freedoms;

- further development of cultural and spiritual values of Kazakh people;

- inter- confessional accord;

- fighting corruption;

- global fight with terrorism, drug dealing, extremism in any manifestation.

At present Kazakhstan is in the focus of communication flow between Europe and Asia, we should make use of this geo-political position in the interests of our nation and world community.

Today I want to offer a program on acceleration of out further reforms. In keeping with it, we will synchronize our actions for the term up to 2010.

3. Accelerated economic and social progress of Kazakhstan

Kazakhstan must enter the number of effectively developing countries of the world, creating high living standards for its nationals.

3.1. Creation of innovative economy and development of non-primary sector

We have embarked on industrial -innovative strategy, aimed at economy diversification. It is the program of the future.

We are to draw a plan on creation and development of at least five-seven clusters in such market segments as tourism, oil and gas engineering, food and textile industry, transport-logistical services, metallurgy and construction materials by mid 2005.

We have started a principally new system of economic development management – national innovation system – the engine of NT and new economy.

By date infrastructure of industrial- innovative development has been formed, capitalization of state development institutes by early 2005 has made up $ 730 mln., investment project portfolio exceeds $ 1 bln 200 mln

In 2004 204 investment projects were implemented.

Our strategic goal is to rank among competitive states.

3.2. Small and middle scale business

In such countries as Japan, Germany, Belgium, Italy small and middle scale business accounts for 90% of the whole business, in many developed states - 50% of GDP.

Therefore we have to build up a principally new ideology of small and middle scale business development, create favorable conditions for business initiatives’ realization.

Businessmen have all conditions for their initiatives realization!

I appeal to the regions to be more economically ambitious.

We have to improve legislature in conformity with new ideology.

It is time to delegate non-specific functions of state businesses and mega-holdings to small and middle scale business.

Management of block of stocks in a number of strategically important state companies should be transferred to specially created state holding company.

One more thing. Development bank and investment Fund are not accessible to all businessmen. Therefore, Fund for small business development is to become a kind of “financial supermarket”. KZT 10 bln will be allocated from republic budget to the Fund, that will enable increase of credits to small business entities up to KZT 25 bln. This year we should start guaranteeing of bank credits and insurance, a tangible state support.

3.3 Agro Frame

Photo: Igor Burgandinov

Three – year agro-food program implementation is to be finished this year. State agro business regulation and support system has been almost formed. This year budget allocates record-breaking sum exceeding KZT 57,9 bln to agriculture production development.

We are to adopt Law “On state regulation of agro-industrial complex and rural territories development”.

As has been repeatedly mentioned, forthcoming WTO-entry makes special demands to domestic agro produce competitiveness. I consider it necessary to pay special attention to agro production industrialization via implementation of agro raw produce cluster initiatives. This sector including agro-industrial policy is missing private sector attention and credits.

3.4 Financial sector issues

For further financial sector development we’ve adopted programs of equity market and saving pension system development for 2005-2007.

Banking activities should serve as transparency model. First of all it refers to property structure and data on affiliated objects. All individuals of influence exerted upon banking decisions are to formalize their status, be authorized by corresponding bodies. Requirements to banking investment activities are to be organized on consolidated basis. All transactions with affiliated entities should in no way hazard banks. Agency for financial supervision is assigned for this task.

3.5. Education and professional training of XXI century.

The state failing to advance knowledge will come to grief. We are to provide manpower reserves for future high tech and science intensive productions. We’ll never cope with innovation economy establishment unless up-to-date education system, highly intellectual managers are ensured.

It’s required to undertake adequate measures on overall technical and professional education development.

Kazakhstan institutions of high education are to pursue one aim – education complying with world standards, RK top universities’ diplomas are to be acknowledged abroad. Such is their obligation.

Every Kazakhstan national is to be provided real opportunity for high education.

In an effort to create single student education financial system I commission government to increase educational grants by 50% at the expense of educational credits, and concurrently establish modern student crediting system via second-level banks securing state guarantees upon credit repayment.

Government is to furnish students with summer jobs in housing construction crews, expand and engage our students in implementation of “Zhasyl el” program on planting the greenery.

As for teaching faculty, we are well aware of all their problems that can’t be eliminated in a flash. Ministry of education and science jointly with universities association are to work out teaching staff support system. For instance, they can introduce state stipend “Best teacher” that will have grant status and enable its recipient to hold one-year scientific researches including probation in any world country.

According to my instructions $2 mln has been allocated this year for recruiting 20 overseers consultants – teachers to Kazakh and Eurasian national universities. Why don’t we encourage our own specialists already acknowledged abroad?

We should promote technical professions we are lacking.

Everything originates at school however. Thereby since 2008 we are to transfer to 12-year secondary education system, improve teachers’ professional level as well as textbooks and educational programs.

We are to restore prestige and dignity of teacher profession.

3.6. Maternity, childhood, older generation

RK strategy critical issue is adequate life necessities provision for most vulnerable society strata: children, their mothers and older generation. State will not grudge means on them. We’ve adopted and implemented specific measures providing children and pregnant women with medicine.

Since 2003 every new birth is upheld with one-time allowance.

Since current year we’ll proceed to three-year program for social reform intensification aimed at three-level social security system establishment. First of all it will cover state-guaranteed base social payments. Second, compulsory social insurance. And third - citizens’ voluntarily saved funds, by request to be further converted to social payments. The three mentioned sources will ensure adequate old age conditions.

3.7. Housing frame

Another key objective is prompt housing problem-solving.

This year we’ll start implementation of housing construction program. We’ve taken up the undertaking failed by previous system.

Government and all akims are responsible thereupon and have to prove their competence. Housing construction is a fresh engine for home economy.

3.8. Spiritual development and inter-confessional accord

We are to proceed with “Cultural heritage” program implementation. Having conceived the past we are to provide the utmost advance of the present culture.

We are to mould integral program for cultural state support; bend every effort towards further promotion of Kazakh language – a major factor unifying all Kazakhstan dwellers, native for all Kazakh people.

All world religions have traversed Kazakh territory, thereby intolerance or religious fanaticism are alien to us. This is our spiritual tradition – openness to The Most High words uttered in any frame, which is a major basis for Kazakhstan inter-confessional accord. We are far-famed for our tolerance, inter-ethic, inter-confessional accord and dialogue. Our ever-growing peacemaking potential is to be further guarded and promoted.

3.9. What is the meaning of all above for every family, every Kazakhstan national?

1. This year we have started implementing social reform intensifying programs for 2005-2007 that will favorably tell on every family.

2. Since current year we will gratis furnish children under 5 diagnosed with certain diseases with medicines on outpatient basis; and pregnant women – with ferriferous and iodine-containing medications.

3. Since 2006 we are to transfer to free medicine supplied to dispensary – registered or outpatient children and teenagers on preferential terms.

4. Since 2006 families of scanty means will receive monthly allowances for their under-age children, special allowances for families with four and more children, mothers awarded “Altyn alka”, “Kumis Alka” or I,II degrees of “Mother’s fame” decorations, are to be raised up to KZT 4 thousand.

5. Today every new birth is backed up by one-time allowance. I consider it appropriate to start paying out state aids on one-year old infants attendance from 1 July 2006 instead of earlier scheduled 2007.

6. Since 1 July 2005 all pensioners regardless of their experience, wage and charged pension amount will receive additional base pension of KZT 3 thousand. Thus, minimal pension amount together with base pension payment will total KZT 9 200 and average pension rate will exceed KZT 12 thousand.

7. Since 1 July 2005 we are to redouble stipends of higher and vocational institutions students.

8. The most praiseworthy students will be able to study abroad. Within “Bolashak” educational program three thousand best students will be annually granted with funds out of national budget to study in top world universities.

9. Kazakhstan is rich in talented youth able and willing to become engineers and technologists. Educational grants and credits will serve as state actual support. I’m urging private sector to cooperate.

10. To fulfill state guarantee system for commercial banking credits national budget for nearest five years is to provide KZT 2 bln for students, including KZT 600 mln for this year.

11. Since 2006 it is required to improve all state disability, age and special grants by KZT 1 thousand. Above benefits have already substantially advanced this year.

12. Since 2006 all 247 thousand breadwinner – lacking families should receive extra support of KZT 300-1000.

13. Since 1 July 2005 it is required to raise budget employees’ salary – that of teachers, doctors, cultural, social workers by 30% on average.

14. Wage improvement should refer to both public and private sectors. Therefore, since 1 July minimal wage is to be raised up to KZT 9 thousand.

15. From 1 July public employees’ salary should be advanced by 32% on average, subsequent 30% wage advance is to be scheduled for 2007. With the lapse of time public wage should become competitive to that of private sector.

16. This year within housing construction program 1 600 apartments for socially protected strata are to be built at the expense of budget allocations; other 11 700 reasonably-priced flats are to provided under mortgage program.

17. Overall three-year construction program will yield 12 mln sq m equal to 195 thousand apartments. Thus housing constriction scale will redouble.

Current economic development favors all mentioned prospects.

I have always asserted that we will reach time when upon home economy adjustment we will improve our life. As you can see this time is approaching. And I am fulfilling promises once made.

Orientation to accelerated economic and social modernization will retain Kazakhstan economic and social leadership, turn it into gravity center for capitals, investments, technologies, knowledge and highly qualifies manpower.

Domestic businessmen should know we are working on sound business environment and preferences establishment; our business is safe and promising. Scientists and highly-skilled professionals are to be fully confident that their job will be duly remunerated. We are working on it.

4. New stage of Kazakhstan democratization

Dear Kazakhstan people!

Taking into account home reality we have pressed towards democratization and followed principle “economy-first, politics-second”. This strategy has justified itself. Our consistency has not let us down. It is suitable to quote M.Thatcher : “… I don’t believe the state missing adequate conditions and experience whether Asian or not can introduce democracy at one stroke omitting problems”.

Other states’ experience proves democracy construction to be long process. Most states of centuries-old liberal traditions have not attained perfection. We have started from nothing, and are to bear in mind that democracy is culture of idea and human behavior.

I find these ideas worth of respect. We are to abide by approved traditions of eastern wisdom – gradual and careful rise.

4.1. Common national program of political reforms

Photo: Sergei Bondarenko

Our common achievements favor transition to systemic and multi-vector policy on further political system modernization and democracy promotion.

Today I offer package of initiatives – National political reforming program.

The program is a single, integral approach to public, political and social institutes’ reforms. Its essence is further Kazakhstan democratization subject to western democracy traditions and principles, experience gained by leading South-Eastern Asia powers, and traditions of our multi-national and multi-confessional nation.

Obviously this national political reforming program will base on dialogue with entire society.

2005 year is to go down in history as year actively promoting and publicly discussing political reforms.

All Kazakhstan nationals - prominent figures, social leaders and home elite should join the process, which will ensure program transparency and publicity.

We may resort to assistance of political figures from economically advanced western states and dynamically developing Asian powers (Malaysia, Singapore, South Korea, Turkey, etc).

National commission for democracy and civil society is assigned principal coordinator of national political reforming program.

Basing on above-stated political initiatives the commission is to:

- analyze and resume national discussions’ results;

- outline programs’ initial legislature frame;

- make up recommendations for President and Parliament on national political reforming program implementation;

- coordinate activities on final adoption and effectiveness of political reforms package.

4.2. Further employment of acing Constitution potential.

First of all we are to use acting Constitution potential to the maximum.

Our Constitution is world - recognized as complying with democratic society objectives. The strictures are to be passed on its observance only. Democracy and law compliance indivisibility are recognized worldwide.

What has our nation-adopted Constitution yielded?

Efficient two-chamber Parliament - legislative body assigned with budget approve and control over its administration.

By a majority vote Parliament consent for appointments of PM, National bank chairman, may express discontent to government, insist and press for cabinet resignation or demand any minister’s retirement.

Parliament represents political parties’ factions.

Parliament is entitled to amend Constitution.

Cabinet members regularly report before Parliament chambers.

Senate appoints Supreme court judges, approves appointments of General prosecutor and chairman of Committee for national security.

Through alternative-based free and secret vote we elect President, Parliament and maslikhat deputies.

Such principal structures as Constitutional council, Accounting committee are assigned on parity basis by President and Parliament. Central election commission in its turn is appointed by Majilis by President introduction. Thus we have ensured required system of deterrents and counterweights.

Here the matter concerns accurate exercise of Constitution-specified rights and law observance.

4.3. Executive power reform

Subject to our attainments and development outlook we are to keep on executive power reforming, designed for:

- further power decentralization;

- public administration regulation and its efficiency improvement.

We have advanced towards executive power system decentralization, ensured conditions to appoint akims by means of elections. In August current year we are to hold pilot elections of regional, Astana and Almaty akims; proceed to auyl (rural) akims elections to be finished in 2007.

Concurrently government will elaborate and submit for Parliament consideration draft laws on power distribution among state power levels and RK local self-government. Besides, government will draft State program on local self-government development support.

Executive power transparency is a must.

Today local executives deliver their progress reports, which will promote people competence in current socio-economic and political reforms, facilitate exchange of opinions and proposals.

Administrative reforms are to be further extended. Previous archaic and inflexible state mechanism is to be transformed into contemporary, able to operate with dynamic, socio-political processes for the good of Kazakhstan people.

Government efficiency as well as every single minister’s responsibility should be augmented.

Government is in its turn held responsible for entire executive authority and is to exercise every Constitution – conferred right and power.

Superfluous central power public functions are to be removed and partially delegated to local authorities.

We require efficient and optimal by its content public apparatus comprised of modern managers – “better less, but better!”

E-government formation should be sped up to improve state services rendered to citizens and organizations.

The clue of executive authority reform is implementation of public service improvement measures.

We are to:

- perfect state administrative services;

- reduce administration bureaucratisation;

- optimize state apparatus professionalism.

We’ve already adopted Law “On public service”. Public employees are recruited on competitive PC testing basis.

Over 1,5 thousand public employees study annually at public service academy.

Government is to focus on their general-regulating functions and law-making activities.

Government strategy is to follow state political priorities; ministries are to obey clear distribution of functions.

I commission government to elaborate single system evaluating efficiency and quality of public activities. Performance efficiency will serve main evaluation criteria.

It is necessary to found service centers by “one window” principle, introduce quality management system (ISO) for public employees; bonuses are to be granted to the best only, public service ethic regulations should be observed.

4.4 . Strengthening political authority of legislative branch of power

Process of political modernization requires strengthening of legislative power influence. It should be done in the framework of acting Constitution. It’s potential is far from being exhausted. Parliament part in formation of CEC, Constitutional council and Counting committee should be considered too.

Maslikhats’ controlling functions could be expanded. All that will give an impetus to decentralization of state power.

4.5. Reforming of court system and legal protection.

We are on the threshold of court system’s full- scale reform. Commission on preparation proposals for court system improvement has been established.

We are :

- to simplify proceedings, provide its objectiveness and stability;

- to provide independence of court corps;

- to raise judges’ qualification, that will make Kazakhstan court system adequate to economic, investment and trade requirements of XXI century;

- to raise barristers’ involvement in criminal proceedings and court judgements;

- to introduce jury trail. To realize the latter, Law “On jury trial ” should be adopted and Constitutional Law “On court system and judges’ status” - amended .

- to provide transparency and openness of court procedures.

4.6. On elections

It is expedient to improve election legislature. I recommend CEC to revise legal basis of election process. Within 2005 CEC is to work out related proposals. Only such approach guarantees citizens’ free declaration of intention.

4.7 On development of civil society institutes

We are targeting at further development of rights and guarantees of Kazakhstan citizens – right for freedom of speech, associations and declaration of political will. We have created related normative basis. In compliance with Decree “On further improvement of constitutional rights and freedoms of citizens” Ombudsman’s powers were considerably expanded.

Speech freedom is a keystone of Kazakhstan progress.

4.8.On fighting corruption and criminality

Kazakhstan was the first on CIS space to adopt anti-corruption law and join international conventions. Much work has been done. But syndrome of transition economy has its disadvantages. Legislative acts require revision.

It is high time to separate business from state service. We should put an end to non- transparency of joint stock companies and their owners, affiliated individuals, banks, with a range of licensing bodies and bribery. The following measures are to be taken:

1. To establish centers on “one window” type for population’s services, where any citizen could get identity card, passport, driver license, etc. At first this initiative may be introduced in Astana and Almaty on experimental basis.

2. To reduce considerably the number of licenses and official permissions.

3. To make related amendments to law “On joint stock companies in Kazakhstan”.

4. Any state officer has to declare and publish that he has sold or transferred his business into another administration.

5. To elaborate state servant’s code of honor, forbidding to have his own business.

6. To transfer discipline councils to central budget and jurisdiction of Agency for state service affairs. The council is to control observation of honor code by state officers.

7. To penalize both bribe-takers and bribe-givers.

8. To raise state servants’ salary to the level of business wages.

To provide Anti-corruption agency independence, it should be transferred to direct President’s administration.

The Government is to control execution of related points.

***

All the above may be carried out in the framework of acting Constitution. As we know, the opposition is also considering their variants of political reforms. We should respect their view, if it is in the country’s and its people’s interests.

I’m sure, that stability of Constitution provides stability of our society. Unreasonable changes might cause chaos. And before making amendments to the Constitution we should consider all pros and cons.

The main question of the above changes is – whether our people support system of presidential government or choose domination of our political parties. The people’s will is to become a democratic decision, I believe.

5. Kazakhstan in modern world

5.1. Our foreign policy priorities

Our priorities remain unchanged – active and balanced external policy, strong enough to face challenges of XXI century and targeting at provision of long - term national interests.

Cooperation with Russia, US, China, EU is a priority. Interaction with Asian and Middle East states is of special concern.

The Government is to realize top agreements with the above states to provide national security and create favorable environment for internal reforms.

Treaty on delimitation of state border between Russia and Kazakhstan, signed a month ago in Moscow is an event of historical significance. Within recent years we have delimitated our state border along its whole length – over 14 000 km. It is the guarantee of national security.

Our strategic interest is WTO accession too.

Kazakhstan gives special attention to ShOC, CIS reforming, EuAsEU relations and creation of CES.

Interaction with OSCE in all direction is also among priorities.

5.2. Our present-day concerns.

Objective challenges and threats of XXI century may retard political and economic modernization. What are they?

Fist of all spreading of instability and religious extremism in the region.

Second – drug trafficking, Kazakhstan, due to its geographical position is the center of drug trafficking route. That’s why we are cooperating with international structures in combating that evil.

International terrorism is an outstanding evil. Session of UN SC Anti-terrorist committee, attended by heads of 40 international organizations was held in January in Almaty. Active internal measures are taken on fighting terrorism: Supreme court outlawed four terrorist organizations, Law “On countering extremism activity” was adopted.

5.3. Situation in the region

With obtaining of independence our region became economically significant to world economy for the first time within recent 500 years. We are expanding our transport links, deliver oil, gas, agricultural products and ore to world market. In global economy big markets are of special importance and we witness competitiveness of big state powers. So we should position ourselves in this global geo-economic problem.

At present we are facing a dilemma: to remain a raw materials’ resource to world economy and wait for coming of next empire, or to join Central Asia integration. I offer the second variant.

I propose to establish Union of Central Asia states. Treaty on eternal friendship between Kazakhstan, Uzbekistan and Kyrgyzstan could become a basis for such union. Other regional states are welcome too. We have common economic interests, cultural and historical roots, religion, ecological problems, language and external challenges. We should come to close economic integration, common currency and market.

6. Our responsibility for Kazakhstan

Dear compatriots!

These are my strategies and approaches to economic and political modernization for near future. Much work is ahead, and as always, I don’t promise you “a bed of roses”. Our views and opinions on reforms may differ. But I appeal to all Kazakhstan people to consolidate their efforts for the sake of common progress and prosperity.

We are to build society with high ethic standards as human dignity and honor being topmost values.

We have chosen the right way. Our progress comments itself. We have a unique opportunity to accelerate our headway.