The principal directions of the system-related modernization of Kazakhstan

O. Sabden,

D.Sc. Economics, professor, the member of academy of NAE RK,

Institute of Economics CS of the MES RK

In the period of crisis the world resides in the dense traffic, in search of a new escape line.

For theimplementation of strategic ideas before 2050 there is a range of external and inside challenges:

External challenges: the competitive ability became stronger, the priority of wealth receipt, consumptionism, overcoming a world crisis, transition to the new VI technological mode, the climate warming, hunger and other various adversities lead to the complicated politico social changes.

Internal challenges: the negative events, which have taken place in our country in recent years, the accumulated social problems, spiritual and religious degeneracy, the nonchalance to events occurring, all-round corruption, etc.

Frankly speaking we will not easily be against these hindrances and compete with the developed countries. The competitive countries in XXI century will not sit twiddling their thumbs so that we reach the 30 place. Therefore in the process of globalization the management system of our country needs the fresh approach, thorough change. In the current epoch of scientific and technologic progress speed-up the changes can be double quick. Whether we are ready thereto?  ^

If we predict the Kazakhstan’s opportunities then it consist of 3 factors. The first one is an ancient history, human capital; second is a subsoil riches wealth, mineral deposits, capitals; third is a geographic location. If we look at the last one, in 2015 the construction of a “Western Europe-Western China” road will be completed, the Great Silk Way will relive via our country. On the territory size and presence of fossil wealth Kazakhstan takes 9-10 place in the world. If we say about the history then in our land in ancient times there were the Stone and Bronze Ages, the iron epoch, states of Saki, Hun, Kangly, Celtuce and Kimak kaganates and other medieval states and khanates. The human capital is sufficient. What opportunity else we need? The history has given and our ancestries have left the historical values to us. Our wealth is advisably to use, herein our duty and our obligation are.

I have been much engaged in the scientific inquiries and am confirmed that in the process of globalization and crisis period for Kazakhstan got the range of developed countries in XXI century the great leap and a sound change in technology, innovation and spirituality are needed. Though with such todays pace it will be difficult for us to reach the goals stated by the President. We need at breakneck speed draw out the new economic pith of the XXI century. Its core is to “Achieve the system modernization of Kazakhstan”.

This project consists of  5 directions:

I.  Political modernization

II.  Modernization of  a state management.

III.  Modernization ofhuman capital.

IV.  The science and technology modernization.

V.  The spiritual resurgence.

Upon each direction the author has developed the scientifically proven projects, which will be published  in due course. Now I will fix on the central conceptual ideas and principles.

I. The fundamental concept of political modernization  is to combine all the public moderate forces. It is necessary to bring into the one operating system all the regulatory bodies, parties and social communities for the country’s future. People and government became asunder. The cry from the depth remains on the spot and can be heard by the government by no means. For example, we have received “zhanaozen” because there was a weak work of government with a public.

Now it needs to form a stable structure of society. To introduce the democratic processes, which await its turn. At the President of Republic of Kazakhstan it is necessary to establish the National Council (the project is available). The fundamental mission of a National Council is to deal with the todays and tomorrow affairs of a civil society, to keep the nation’s unity. The elaboration of political and social national priorities of our state, allegiance, solidarity, to strengthen the unity, prepare the national reports on annual base, etc. The thoughts, offered by the people, should come to the government and be realized. Three branches of government: The Government, Parliament and Judicial services having kept the balance should implement the crucial decisions. Only in such a civilized action the government in very deed will turn to the sane society!

II. In the modernization of state management it is necessary to take into account the internal and external obstacles. The transition to the modernization of state management will appear only when the new personnel policy, new political and social reform will directly influence the peoples’ lives and only when the people will recognize the government and support it. The bare essential is to pay a special attention to the change of production pattern, investment policy. The investment growth should be 25-35%. Only then there will be possibility to manage the innovation, VI-technologic mode (TM), assimilation of novel technologies. At present the President’ tasks are carried out poorly in the center and in situ, the financial expenses are big, the status reports are not clean. There are enough examples. Hence the conclusion is: lax control and irresponsibility, unbridled corruption. All this decreases the professional grade. In such position on account of negative factors in the state management system any program embraced will be exercised formidably. Now we can see it.

For the purpose of effective implementation of state programs, President’s tasks, it is necessary to establish a Agency under President on the control and science and technology inspection. The necessary centers are to be established under the agency. For instance, the center of expertise on the knowledge quality. But if only the Ministry of education and science deals with the educatory process, its evaluation and control at the same time, what can we say about the quality of knowledge at the system-related corruption?

By my calculations, if during 5 years we will not make a transition to the VI technologic mode, novel technologies, then we will surely fall behind forever. Considering that the depreciation of fixed assets composes 45%-80% (particularly in the power engineering up to 72-75%), the technological bounce will not be easy. According to estimations of the World Economic Forum in Davos Kazakhstan takes lies in 103 place on innovation, 99 place- on the business development, 115- on the financial markets development. We have only 5,8% of enterprises which are engaged in the innovations, and in the foreign countries about 60-65%. To boost these figures will be the most difficult task. No one project should be approved without the innovative constituent. We need a technologic modernization.

The “Samruk-Kazyna” JSC which provides the lion’s share of profit to our country has undertaken its mission. Now we need to wend the way of effective management system achievement. It is necessary to establish 7 competitive holdings (the project is available) on the basis of “Samruk-Kazyna”. When the developed countries raise the business competition it is not gainfully for us to monopolize the economy.

We need a new model of personnel policy. It is necessary to establish the institute of personnel commissions. Like in the European countries it needs to train the crisis managers internationally. It is necessary to create a new thoughtful management system. For example, we do not know how much high technology engineers do we need? Russia needs 600 thousand high technology engineers. There are many higher educational establishments in our country, but the quality of knowledge is low. There will be nothing until we upgrade the knowledge quality.

It needs to make a new management structure in the regions (the project is available). It should be innovative, competitive with Russia, China and other near-border countries. Only then it will be possible to give an unbiased assessment of akims’ work. Everybody can use the runaway budgetary funds. From one year to the next the great financial resources remain undrawn (the reasons of this assimilation are not resound in public).

We have nothing but the meagre praise, manifest, yeasty information, virtues, selfish persons, valueless promises. We need to get rid of the adverse qualities, which are extrinsic to Muslims. 70 years under the reign and up to now we cannot recover from these after effects.  Today it is a new epoch of the XXI century and if we are not be oriented to the time, we will lose.

III. The scientific and technological modernization should be the pith of economy. The problem is that how we will combine the science, innovation and production, as a result we will get the novel technologies, innovative products and synergistic effect.

It is necessary to greatly develop the small innovation firms, technology parks, technopolises, the venture capital funds, etc. We do not even have a sole law, which supports the small innovation firms.

IV. It needs to establish the National scientific innovative clusters (Almaty, Astana, Karaganda, etc.) like the Silicone Valley in USA, Skolkovo in Russia, IT-technologies in India. It is necessary to mobilize all the intellectual potential. For the scientific and ideological improvement of our country we need to create the State Humanitarian Academy of Science like in China (Beijing, Shanghai). (The projects are available).

For the development of creative economy, modernization of a human capital it is necessary to solve the massive problems. For example, in the developed countries 77% of profit is received using the human capital, new knowledge, science, technologies, from the development of creative economy, and the rest 23% of profit is received from the use of fixed assets, extraction of commercial minerals, oil and gas, etc. We have the inverse proportion. So this pyramid is need to be turned around and worked on. As we can see, the private departmental, branch-wise, social reforms are ineffective. We need the fundamental changes.

For the improvement of the life quality the most important thing are the calculations of new socio standard indicators. We need to turn back on the minimum calculation index, and to accept instead of it a living minimum wage, be based on the minimum wages. For instance, in Azerbaijan the minimum wage is increased up to 40% of the average wages. It is twice lower in our country. We should pass on to the new normative standards of socioeconomic indexes. Then we can tell the truth to people, that as of today the economy level is like that, the profit is like that and the supportability of social sphere are that kind of. If the economy tomorrow will grow up we can tell that we increase the living standards the same way. Then the credence will grow and even in a rough time the people will support he government. Only then even in good and bad situation the people will stay together with the government and will struggle against difficulties hand in hand. Honestly speaking, sometimes we ask money, looking to the economic situation. It is time for Kazakhs to get rid of the laziness. Nobody knows what is next.  ^

The fundamental changes in the legal system are necessary in the social sphere reforming. These changes may appear after the introduction of new standard indicators and quality classification in the area of public health service, education and culture. The future is in these areas, in the quality of a human capital. The investment and redevelopment of these spheres will bring our country to the unprecedented summits.

V. We should spiritualize our moral values, our education, patriotism, improve our national immune status, we need a spiritual impulse.

We should recognize that along with the transition into the market economy we have neglected the spirituality. We started to forget the historical values of our ancestors, our culture and mentality. Furthermore the foreign ideology, having entered to our consciousness misinforms us, the national immune status id abating. In such a negative situation we cannot blame anybody, it was our fault, we have detracted the ideology and education. Who can we ask now? We do not have a system in religion. Instead of being in the single Islamic religion, his prophet Muhammad, we have a numerous sects, everything has obscurely intermixed. Its number for today has reached 4500. Let us count that if one sect has 200 persons, then 1 million people, especially the youth, are poisoned notionally. The hundreds and thousands enter such sects as wahhabism. What will be the next? It will be difficult to take out people responsible came into this sect. The most difficult is that we still cannot create an alternative mechanism, the antidote.

The mega project, directed to the transformation of Turkestan in to the spiritual capital  (center) is elaborated. The primary objective of a mega project is to transform Turkestan to the spiritual center (metropolis") internationally, take a step towards the international security. For the first time ever in our history by the example of one region, having combined two big challenges, on one side, the spiritual resurgence of humankind and, on the other side, the application of a new technological mode, we will show the new Kazakhstani renaissant model of innovation development to the world.

We are the nation which has a deep and rich history, should be able to demonstrate the revival of our ancient history in immemorial Eurasia, on the land of Kazakhstan. If we transform Turkestan in to the spiritual center alongside the  EXPO-17, then we would proudly show to the thousand of foreign tourists  our great history (the mega project is available).

In conclusion, only when we thoroughly in a consistent manner modernize all the directions in the following 5 years we will take a great step forwards the establishment of competition with the developed countries. We should have time to jump in the last wagon of speeding train of new civilization, where the words about the novel technologies, innovations, new knowledge, humanization of society in the XXI century are audible. If we do not use this lost chance, put it badly, then our country will forever stay the primary producing country or will be swallowed by the powerful countries.

But our country is well-born, with a deep history, our ancestors until today have kept this nation, language, land, mineral products. And now we must serve for the future of our generation, and I believe it will come true and invite you to join!

All this is said not for the cynicism, critics, but for the future, and the offer is made. Why we leave for the latest time all that we can make today? 

For the future of our country, though there will be temporary difficult, we should go toward the fundamental changes. The development of a civil society in Kazakhstan should meet the world requirements.