The project of the State programme of industrial-innovative development (SPIID) of the Republic of Kazakhstan for 2020-2025 has been discussed on the platform of the Atameken NCE RK.

The meeting was attended by the executive secretary of the Atameken NCE RK Kuanysh Baltabaev, chairman of the Board of Kazakhstan Industry and Export Center JSC (QazIndustry) Alisher Abdykadyrov, representatives of the Ministry of Foreign Economic Relations of the Republic of Kazakhstan, the Ministry of Agriculture of the Republic of Kazakhstan, the Ministry of Energy of the Republic of Kazakhstan, the Ministry of Foreign Affairs, development institutes, national companies, associations and business entities, including those in the regions via videoconferencing.

Turar Zholmagambetov, deputy chairman of the Management Board of QazIndustry presented the key points of the draft Programme for the participants of the meeting (the presentation and the project are available in the attached materials).

In accordance with the adopted Concept of SPIID-3, the model of economic development with an emphasis on the export of manufacturing products (non-raw materials sector) is preferred. For the purpose of effective monitoring of support measures, it is planned to conclude an agreement between the authorized body and the applicant, providing for countervailing obligations of business to improve competitiveness.

The support measures proposed by the project are divided into four conditional groups of enterprises: new industrial players, strong rear, growth drivers, and gravity centers. According to the developer's estimates, the most popular instruments are envisaged: subsidizing interest rates up to 3%, reimbursement of international certification costs, transportation costs to the destination, tax credits, export credits, etc.

In addition, the project envisages a number of systemic measures to stimulate the development of the manufacturing industry in eight areas (technical regulation, investment climate, export promotion, technological and digital infrastructure, integration, domestic market, and human resources).

By estimations of QazIndustry, these measures will allow raising the international competitiveness of the domestic processing industry with growth of labour productivity in 1,7 times, non-raw material export - in 2,3 times, investments - in 2,3 times, quantity of the enterprises - in 1,6 times, increase of an index of economic complexity, that promote Kazakhstan to 55th place in the world rating.

The concept of SPIID-3 also provides for the creation of the state Industry information system. The concept of the project was presented by the Project Office for the development of industries of the economy of simple things and IT-developer of the System Vitaly Trankenshu (Datanomix LLP).

To date, businesses, government agencies, and development institutions do not have a unified information system on the state of manufacturing industries and enterprises and the support measures provided. Instead, there are scattered databases and information. The creation of a single E-industry system will allow the Government to pursue a rational industrial policy based on objective data, while business entities will have easy access to existing support tools and up-to-date information on existing producers for possible cooperation. In addition, it will allow for real monitoring of the effectiveness of support measures.

With the support of the National Chamber of Entrepreneurs and the Ministry of Foreign Affairs of the Republic of Kazakhstan, a design specification has been developed and approved. The launch of the first stage of the E-industry system is planned for the end of 2019 as part of Industrialization Day.

The representatives of business, NC Kazakh Invest JSC and Center for Research of Applied Economics private institution supported the presented projects.

A number of proposals from business representatives were also presented during the discussion.

The executive director of the Union of Machine-Builders of Kazakhstan Rishat Asanseitov noted the need to take into account the analysis of the effectiveness of existing support measures and apply only effective tools, reducing inefficient development institutions. In addition, the draft Programme requires synchronization with the approved on June 26, 2019 by the Prime Minister of the Roadmap for the development of mechanical engineering until 2024, in particular, the development of the Law of the Republic of Kazakhstan "On Industrial Policy", which is designed to unify the approaches of various ministries and departments when considering the issues of manufacturing industry. The representative of machine-builders also drew attention to the fact that the Programme should provide for certain restrictions on support to new projects in the developed areas of "processing".

Asker Basheev, director-general of BenchMark Consulting LLP, also supported the need for a unified information system with a wider involvement of industry associations. This will contribute to the construction of commodity distribution chains in the swap of the queue. Also, the new system should differ in speed in establishing possible cooperation contacts.

Maksim Kononov, deputy executive director of Association of mining and metallurgical enterprises, drew attention to the fact that the Program practically does not present potential projects in Mining and metallurgical complex (e.g., tin and coal processing) and stressed the controversy of the thesis on the efficiency of projects in the industry with the participation of the state, as well as fragmented presentation of the Programme in the part of the SEZ. According to the Association of mining and metallurgical enterprises, it is advisable to form SEZs around large backbone enterprises.

Summing up, Kuanysh Baltabaev confirmed that all comments and proposals to the draft SPIID-3 will be taken into account in the conclusion drawn by the Atameken NCE RK. The next meeting of the working group of the MIIR RK is scheduled for July 5, 2019.

Presentation in Russian

Draft SPIID– 3 in Russian