ANNOUNCEMENT 19 Mar 2010

In March 2010, the government of Kazakhstan announced a change in financial export support and a change in production support.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 1 neutral
  • 0 liberalising

SOURCE



1. State Programme for the Accelerated Industrial Development for 2010-2014
http://adilet.zan.kz/rus/docs/P1000001115

2. State Programme for the Accelerated Industrial Development for 2015-2019
http://printservice.kz/upload/programm/Ukaz_Prezidenta_RK-GPIIR.pdf


Inception date: No inception date

Production subsidy

By the President Decree # 958 of 19 March 2010 was introduced the State programme for theAccelerated Industrial Development for 2010-2014. The main goal of the programme is the sustainable and balanced growth of the economy through diversification and increased level of competition in the economy. Among the goals are the following:

  • development of priority industries
  • creation of environment in the Republic which favors industrialization
  • formation of the centers of economy growth around the country.

The state support for the diversification of the economy will be conducted through selective support of the industries. Thus, taking into account the specifics of the Kazakh economy, the optimum industrialization strategy is considered to be the following: "traditional specialization" with emphasis on raw materials and with gradual movement towards more value added products.
The government defined 4 types of sectors for industrialization:
1.traditional: oil and oil-chemical industry, metallurgical and chemical industries as well asthe nuclearindustry
2.based on the demand of the state: machine building, construction industry, pharma industry
3.export oriented industries: agricultural industry, light industry, tourism
4."industries of the future": information and communication technologies, biotechnologies, green energy as well as space industry.
Theindustries will get subsidies and will be target of export support measures. The extensive list of the export support measures is listed on page 116 of the programme. Export restrictions can be introduced on raw materials in order to satisfy the growing demand of the processing industry during modernization. The import tariff measures as well as non-tariff measures will be also used when necessary.
The industries will be also supported through the creation of energy and transport infrastructure, info-communication, professional development of staff in the industries, reduction of administrative barriers, creation of competition, the development of the infrastructure and ofquality and technical regulation, energy saving, the development of innovations and technological modernization.
The Kazakh machine building industry will target the following markets: Uzbekistan, Kyrgyzstan, Tajikistan, Turkmenistan and Afghanistan. The wave of the CU's PTAs might follow with a number of countries: Turkmenistan, EFTA, Serbia, Egypt, Jordan, Israel, Afghanistan as well as with some Middle Eastern countries.
The government will support the initiatives of the small and medium enterprises targeting technological transfers and attraction of foreign investors.
The local content of this programme is monitored on an anual basis (see the 2nd provided source, p. 9)

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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