Kazakhstan will push industrialisation programme
This follows an earlier vote in favour (104-0) by the lower house, the Mazhilis, on February 18. An early election this year is now increasingly likely. The official reason given for holding an early election is so that President Nursultan Nazarbayev can continue reforming and developing the country, with the Kazakhstan 2050 strategy remaining a key goal. Part of this goal includes a major industrialisation programme. The first stage of the Kazakhstan's State Programme of Accelerated Industrial and Innovative Development (PAIID) concluded in December 2014. While successes were achieved in phase one, such as increased production in the automotive sector and improved levels of productivity in manufacturing, other goals, such as increasing the export volumes of manufactured goods, proved to be more elusive. Inadequate human resources are a constricting factor and will need addressing if Kazakhstan is to diversify fully.
- Active state involvement in managing the economy may become a deterring factor for future foreign investment.
- Mistakes in setting up regional clusters threaten to disrupt competition in local markets and create long-term economic imbalances.
- Greater trade integration with neighbouring countries is expected as road and railway infrastructure is updated.
- Kazakhstan will draw on its National Fund (oil revenue) to support budget and infrastructure projects if needed.