GALYM ORAZBAKOV Minister of Industry and Trade

"We will soon become a member of the WTO"

Kazakhstan has experienced unprecedented growth – averaging a ten per cent annual rise in gross domestic product over the past seven years – and has its sights set on even bigger expansion.

Though its Strategy for Innovation and Industrial Development (SIID), which was established by decree of President Nursultan Nazarbayev, the country hopes to become one of Central Asia’s leading counties by 2015.

At the same time, Kazakh officials have place a priority on joining the World Trade Organisation and hope to reach agreement with the international trade body on mutually favourable terms in the near future.

President Nazarbayev told the country’s parliament earlier this year: “"WTO entry on terms that are beneficial for Kazakhstan is the goal that we've got to achieve. We need the quickest, broad introduction of international technical standards. This is my main task for the government, that is its direct responsibility to society."

Kazakh Industry and Trade Minister Galym Orazbakov is helping spearhead this campaign. The project is divided into three periods: the first was preparatory and lasted from 2002-2005 and the second will end in 2010. Areas such as machine building, food processing, textiles, transport, metallurgy and construction materials have been singled out for major development.

What were the origins of the SIID programme, and what will take place when the third stage is introduced in three years?

From 2000 the country started to enjoy stable economic growth, underpinned by increased oil and gas condensate production. Seeing this, the president instructed the government to design the SIID. In the third stage, all production facilities that were set up during the first two stages will come into operation.

What new institutions have been introduced because of the SIID?

We have put in place such development institutions as the Kazakhstan Development Bank, Innovation Fund, Investment Fund, Centre for Analytical and Marketing Research and the Centre for Engineering and Technology Transfer. The capitalisation of these institutions is now $1.5bn. All these development institutions were established with one purpose in mind: the development of value-added production facilities and the development of export-oriented manufacturing facilities.

What has been accomplished so far?

The first outcome is that for the first time in the country’s history, the growth rate for industry has been higher than that of the extractive industries. There are many new production facilities that have been set up in the country.

What has been the effect on housing and construction?

Within two years we have managed to construct over 12m square metres of housing. This year we are planning to construct another 7m. This has brought about the development of the construction industry as well as construction materials manufacturing.

What is the status of your WTO application?

We submitted our application in 1996 and in the ensuing ten years, we have carried out extensive work. First and foremost we are about to finalize the process of making our regulatory framework consistent and compliant with WTO standards. We are at the final stage of bilateral talks with WTO members. We believe that the time that Kazakhstan will become a full-fledged member of the WTO is near at hand.

What are the main reasons for this?

We are striving for this because Kazakhstan is a full-standing member of the world economic community. WTO membership will tell all our trade partners that they can find an anticipated and projected economic and trade regime in Kazakhstan and that the legal and regulatory framework are in compliance with international standards, that one can invest in Kazakhstan on a stable basis and that Kazakhstan is a reliable trade partner.