Opening remarks by Mr. Shigeo Katsu

It is a great pleasure for me to address the distinguished group of policymakers gathered here today.  We have before us the ambitious task of tackling the implementation challenges of Kazakhstan’s impressive reform agenda.

Over the past 15 years, Kazakhstan has made great strides in building a firm economic foundation and expanding opportunities for its people.  Kazakhstan is no longer a low-income nation burdened with the legacy of a command economy, suffering from economic mismanagement, environmental degradation and stagnating social standards.  

There is a renewed sense of vitality and hope in Kazakhstan’s society, brought about by one of the fastest growth rates among transition economies.  Global investors and financial markets are increasingly focusing their attention on Kazakhstan as “the next big event” on the international financial scene.

Given this progress, Kazakhstan is now moving towards second-generation reforms that aim to improve governance, the investment climate and the quality of life for everyone.  And the expectations of its citizens are mounting. 

To sustain the success to date, it is not enough to continue with strong macroeconomic and fiscal policies, and to build further its extractive sector.  It will be essential to adopt and implement reforms to increase productivity of labor, diversify into manufacturing, improve the business climate, and—most importantly—the quality of public services.  We are here today to find the best ways to implement this ambitious reform program.

Our brainstorming event is inspired by the Government’s program for 2007-2009, which focuses on three strategic goals: (i) increased effectiveness of public administration with the aim of significantly improving the quality of government services; (ii) economic diversification and improving and sustaining the country’s competitiveness; and (iii) managing the risks of overheating through prudent macroeconomic and fiscal policy.  

Almost exactly one year ago, some of the decision makers who sit around this table gathered in Frankfurt to discuss key strategic challenges for Kazakhstan; including the main areas of reforms needed and the risks present.  Today’s brainstorming takes us to the next level of concrete policy action:  the implementation of reforms to guarantee a continued and sustainable rise in the well-being of the nation of Kazakhstan.

The choice of topics promises an exceptionally rich day.  We will actively discuss implementation agendas for administrative reform; economic diversification (with a focus on the Government’s “Thirty Corporate Leaders” program); housing and utilities reform; and address the risks of overheating (with a focus on the financial system risks and inflation).

The policymakers of Kazakhstan will present their strategic thinking on the above areas and top-level international practitioners will share their experience and offer policy advice tailored to Kazakhstan’s situation.  These public policy experts are here at the invitation of the Government, and have strong backgrounds in formulating and implementing national strategies in a variety of countries, from the Americas to the transition countries of Europe and Central Asia, to rapidly growing economies of East Asia and OECD member countries.  

Each session will open with two or three very short statements–from representatives of Kazakhstan and the relevant guest speaker(s)–and then the floor will be open for discussion.  Participants are invited to contribute short statements, examples, comments, clarifications, pointed questions and the like.  

In addition, our guests have prepared PowerPoint presentations outlining their thinking on the four topics.  These presentations will hopefully serve as inputs for discussion and useful tools for reflection following this meeting.

The Government has demonstrated a strong interest in the lessons of other countries, both their success—what can be replicated and help Kazakhstan set its own best-practice examples for the world; and their failures—in terms of what can be prevented.  The guest speakers will draw on such global lessons from their experience, and provide a candid assessment of the objectives and policies that are being formulated by the Government of Kazakhstan in this respect.

Our mutual goal at the end of the day is to have formulated a roadmap for implementation—a set of clear recommendations on how to address complex and interrelated implementation challenges, and to ensure that the current success of Kazakhstan is indeed sustained over decades to come. 

Thank you.