What to expect from the government meeting with Tokayev

Tengrinews.kz - On January 28, Astana will host a traditional extended government meeting chaired by the President of Kazakhstan Kassym-Jomart Tokayev. What important decisions may be made at this meeting? Should we expect changes in the government? Our correspondent discussed these and other issues with an expert.

"The pace will be high, and demand will be tough." Tasks for the government in 2024

Extended government meetings with the participation of the President of Kazakhstan are a traditional format for working with the Cabinet of Ministers, during which Kassym-Jomart Tokayev gives key instructions, criticizes, notes successes, and sets priorities.

Last year, the President instructed the new Cabinet under Olzhas Bektenov to increase the economy to $450 billion by 2029 with annual GDP (gross domestic product) growth of at least 6%. The President called on the government and akims to be effective, reduce bureaucracy, and take decisive action for quality development.

The Head of State gave a number of instructions covering the following areas:

• Updating construction rules: The President instructed to review the Urban Development Code and eliminate excessive government interference.
• Taxes: Tokayev criticized the draft Tax Code, pointing out the need for VAT (value-added tax) reform.
• Privatization: avoid past mistakes and reduce government participation in the economy.
• Government procurement: increase the responsibility of suppliers for missed deadlines and poor quality of work.
• Investments in modernization: a priority for large-scale innovative projects.
• Support for agriculture: increase funding and preferential loans.
• Transport and roads: Kazakhstan should become a logistics hub.
• Artificial intelligence: it can become the driving force of Kazakhstan's progress.
• Targeted social assistance: focus on supporting those in need, eliminating dependency.

What to expect from the government meeting in 2025 - expert opinion

Political scientist Zamir Karazhanov explained that extended government sessions can be either planned or caused by emergency events. The upcoming meeting will be planned. President Kassym-Jomart Tokayev mentioned it in a recent interview.

Is the economy the main thing?

"As the President said, the results of the Cabinet's work for 2024 will be summed up at the extended government meeting. It is expected that the key indicators of Kazakhstan's development will be announced there. We are primarily interested in GDP growth indicators. According to preliminary forecasts of international financial organizations, this year the growth rate of the Kazakh economy will be less than 5 percent, which differs from last year's indicator, when for the first time in ten years, GDP growth exceeded the five percent mark.

However, the question remains: how much lower will this figure be in 2024 than 5%? Earlier, the President stated that GDP growth above 5% is a necessary condition for doubling the economy of Kazakhstan. Given the stated agenda, it is expected that each ministry will present a report on its work. In addition, the President will probably outline the key tasks for the government in 2025," Karazhanov noted.

Slow diversification and privatization

The political scientist recalled that one of the key tasks for Kazakhstan, which has been repeatedly discussed from high platforms, is the diversification of the economy.

"In recent years, certain positive changes have indeed been achieved, but their pace leaves much to be desired. Among the current problems, the high share of state participation in the economy also stands out. In order to reduce it, privatization processes and IPOs of quasi-state sector companies have begun. However, this process is moving rather slowly. In addition, the level of competition in the domestic market remains low."

Old problems

Among the old, but still unresolved problems, the political scientist named the low share of small and medium-sized businesses in the structure of the economy of Kazakhstan.

"Although there are many state programs in the country aimed at stimulating the economy, despite their attractive appearance, they often turn out to be insufficiently effective in implementation," Karazhanov commented.

In this regard, the government will have to not only speed up strategic processes but also strengthen control over the implementation of economic programs.

Personnel changes?

Personnel changes should not be expected at the upcoming government meeting since the latest appointments, such as the change of the ministers of national economy and justice, were made recently and not tied to major events, the political scientist believes.

The expert suggests that the main focus will be on solving current issues, including preventing possible floods, given last year's experience.

Civil service reform

According to Zamir Karazhanov, the state apparatus of Kazakhstan lacks initiative and transparency. The President has repeatedly criticized the akimats for inertia and lack of courage in decision-making.

"This is the main problem. Since lack of initiative and inertia are a consequence of the existing civil service system. In order to radically change the situation in this area, it is necessary to carry out administrative reforms. They should be aimed at ensuring transparency of the work of the state apparatus, its controllability by the public, increasing the responsibility of civil servants and creating conditions for their motivation to achieve specific results," the expert noted.

Karazhanov believes that the successful experience of other countries shows the need for such changes in Kazakhstan. Local self-government is the key to a more flexible and prompt solution to problems, he noted.

"In the context of the issue, it is relevant to talk about the development of the local self-government system. Its widespread implementation could solve many problems of the Kazakh state apparatus, making it more responsive to the needs of the population. Since local self-government provides greater independence in decision-making at the local level and allows for a prompt response to citizens' requests," Zamir Karazhanov shared his opinion.

The expert added that effective governance is only possible with a profound transformation of the state system and its orientation towards the needs of Kazakhstanis.

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