Factsheet on one-year anniversary of President Kassym-Jomart Tokayev’s re-election

Overview

Kazakhstan’s President, Kassym-Jomart Tokayev, was re-elected in an early presidential election held on November 20, 2022. He won with a significant majority, securing 81.31% of the vote. The election saw a high voter turnout, with approximately 70% of eligible voters taking part. Tokayev was re-elected for a seven-year term, with no further possibility for re-election, following constitutional changes implemented in 2022.

Reforms and Transformation

Following his re-election last year, President Tokayev has unwaveringly pursued a path of profound and sustainable reforms, which he had initiated in 2019.

In the year between 2022 and November 2023, under the presidency of Kassym-Jomart Tokayev, Kazakhstan witnessed several reforms in political, economic, and societal spheres:

1. Political and Judicial Reforms:
   • Constitutional Reforms: Tokayev proposed constitutional reforms to limit presidential powers, transitioning from “super-presidential” rule to a presidential republic with a strong parliament​​.
   • Elections: The presidential elections marked the beginning of an electoral cycle, subsequently leading to the election and significant renewal of both houses of Parliament and maslikhats, the local representative bodies. This year, Kazakhstan held its first-ever elections for akims, the local mayors of districts and cities of regional significance. For over two years, voters have directly elected akims in rural districts, with nearly 1,700 akims appointed to date.
   • Representative Parliament: The current Parliament is the most representative in the country’s recent history, comprising six parties and single-mandate deputies (MPs), and ensuring quota for women, youth and the disabled. An inclusive group of deputies is active, addressing the needs of individuals with special requirements.
   • Legislation for Democratic Foundations: Following the results of the nationwide referendum in June 2022, one-third of the country’s Constitution has undergone significant changes. Consequently, amendments have been introduced to 7 constitutional laws, 15 codes, and 29 laws, enhancing the role of civil society and establishing a multi-party system​​.
   • Resignation from Amanat Party: Emphasizing political neutrality, Tokayev resigned from the Amanat party, and a constitutional norm was introduced stating that the President must not belong to any political party during their term​​.
   • Establishment of the Constitutional Court: The Constitutional Court was reestablished in January 2023. This development provides every citizen with a direct channel to defend their constitutional rights. Additionally, the Human Rights Commissioner and the Prosecutor General now have the authority to approach the court directly, heralding a more accessible justice system.
   • Establishment of the National Kuryltai: This new civic institution replaced the National Council of Public Trust, aiming for more relevant and broader representation of all strata of society​​.
2. Economic Reforms:

President Tokayev’s strategic direction is focused on reforming all facets of Kazakh society. In his state-of-the-nation address on September 1, 2023, Tokayev unveiled plans for transitioning to a new economic model, which includes further demonopolization and diversification of the economy.

• New Economic Model: Tokayev emphasized transitioning to a new economic model focused on fairness, inclusiveness, and pragmatism. Kazakhstan’s GDP reached $226.2 billion in the previous year, with significant foreign direct investment and strong foreign trade turnover.
• Industrial and Economic Self-Sufficiency: A key focus was on developing the manufacturing sector and diversifying the economy to reduce reliance on imports and establish high-value-added clusters in various industries.
• Support for small and medium-sized businesses (SMEs): Tokayev has been involved in implementing policy reforms aimed at creating a more favorable business environment for SMEs. These reforms focus on reducing bureaucratic barriers, simplifying tax codes, and improving the overall ease of doing business. Since March 1 of this year, young entrepreneurs have been offered microloans at 2.5% per annum through the Agrarian Credit Corporation.
• Employment: As part of the goal to employ over 3.3 million citizens by 2029, systematic efforts are underway to create 450,000 new jobs, including 200,000 (44%) for young people. To liberalize labor legislation and develop new employment forms (remote work, flexible hours, part-time employment), appropriate amendments were introduced from July 1.
• Labor market protection: To strengthen domestic labor market protection measures and safeguard citizens’ interests, the quota for attracting foreign labor in 2023 has been reduced by 21.5% compared to the previous year.
• Foreign investment: Over the years 2022-2023, $41.3 billion in direct foreign investments were attracted. The overall goal of President Tokayev is to attract $150 billion in the seven years of 2022-2029.
• Digitalization and Innovation Encouragement: Emphasis on digitalization and innovation has been a key aspect of Tokayev’s approach. Initiatives include support for digital transformation, access to new technologies, and fostering a culture of innovation within the SME sector.
• Financial Measures: Government bailouts for banks were stopped, and a system of loan forgiveness was implemented to aid socially vulnerable segments​​.
• Salary Increases and Minimum Wage Hike: Salaries for teachers, doctors, and social workers were increased, and the national minimum wage was raised. From January 1, 2023, the minimum wage was raised from 60,000 to 70,000 tenge. As a result, the cash incomes of approximately 1.8 million employees across various industries and ownership forms have increased.
• Low-Carbon Development Concept: Tokayev announced this national project to reduce Kazakhstan’s dependency on coal by developing the electric power industry​​. Kazakhstan, supporting the Paris Agreement and the COP process, seeks to become carbon-neutral by 2060. Kazakhstan also joined the Global Methane Pledge.
• Reducing Shadow Economy: By 2025, the goal is to reduce the shadow economy to 15% of the GDP, aligning with OECD country levels. In 2022, the country’s hidden economic activity was approximately 18.7% of the GDP (against a target of 19.9%). To meet the President’s election program goals, a Comprehensive Plan of Action to Counter the Shadow Economy for 2023-2025 has been updated.
• Return of illegally obtained and withdrawn assets: President Tokayev signed a law concerning the reclamation by the state of illicitly withdrawn assets. This legislation is pivotal as it facilitates the channeling of recovered assets to the Special State Fund, earmarked for the financing of socio-economic projects. A Commission on the Return of Illegally Acquired Assets to the State has been established under the chairmanship of the Prime Minister of Kazakhstan. To date, assets worth around 1 trillion tenge have been returned to the state, including about $600 million in assets returned from foreign jurisdictions. For instance, around $15 million from the UAE, $82 million from Austria, $260 million from Liechtenstein, and $2 million from Hong Kong have been repatriated. To date, 150 billion tenge ($325 million) from these recovered amounts has been allocated to fund the construction of 70 schools across the nation.
• Fiscal policy: A new Tax Code project is under development, with approximately 1,000 proposals received from experts, economists, and business community representatives. Moreover, the potential introduction of additional excise taxes on luxury items is under consideration, as suggested by the Head of State in his address to the people of Kazakhstan.

3. Development of Regions and Infrastructure

Large-scale work is underway in Kazakhstan to modernize infrastructure and develop regions. This applies to housing construction, renovation of housing and utilities networks, work to increase the transport and logistics potential of the country and the launch of new production enterprises.

• Housing: Active efforts are underway to provide more than 1 million families with new housing by 2029. In the first 10 months of 2023, over 13 million square meters of housing were constructed, marking a 14% increase compared to the same period in 2022​​.
• Engineering and communication infrastructure: In 2023, 5.4 billion tenge has been allocated for the construction of engineering and communication infrastructure facilities in various regions.
• Affordable Internet: The National Project ‘Affordable Internet’ has been approved. Its primary objective is to ensure the entire population has broadband access to the Internet, with a minimum speed of 100 Mbps. A major focus will be on constructing an extensive network of fiber-optic communication lines in rural areas. Through public-private partnerships, it is planned to install these communication lines in more than 3,000 villages. Overall, the project aims to extend high-speed Internet to 400,000 households in the country by supporting small and medium-sized telecom operators.
• Mobile internet coverage: There are also plans to build digital infrastructure to provide mobile Internet coverage along main and regional roads. Specifically, 487 antenna mast structures are planned for installation, which will enable mobile Internet coverage over 17,000 km of roads. To date, 8,300 km of roads in the country have already been serviced with mobile Internet.
• Transport and logistics: Several major railway projects have been initiated, significantly enhancing Kazakhstan’s transit potential. These include the Dostyk-Moyinty and Bakhty-Ayagoz lines with access to the third international junction with China, Darbaza-Maktaaral, and the Almaty bypass.
• Railways: In total, more than 1,300 km of new railways will be built within three years, compared to 2,500 km built over the previous 30 years. Additionally, by 2030, there are plans to repair 11,000 km of railways, significantly boosting capacity and ensuring the safety of train traffic.
• Gasification: The QazaqGaz national company is actively building new gas processing facilities to boost domestic resources and further gasify the regions. A gas processing plant with an annual capacity of 1 billion cubic meters is under construction at the Kashagan field. Moreover, plans are in place to build new gas processing plants at Kashagan and Karachaganak oil and gas gas condensate fields respectively, with a total processing volume of 6.5 billion cubic meters of gas per year. These major projects are set to stimulate the national economy and create new job opportunities.

4. Societal Reforms:

President Tokayev is leading substantial changes in the social and humanitarian sectors, in conjunction with political and economic reforms. These efforts aim to create a new quality and a new mindset within the nation through the advancement of education, science, and culture.

• Healthcare Reforms:
  • Health Insurance: Tokayev supported a health insurance mandate and signed a new public health code, aiming to improve healthcare quality and accessibility​​.
  • Rural Areas: Tokayev proposed a national project to build medical facilities in rural areas and modernize district hospitals. To enhance the level of medical care provided to the rural population, a pilot National Project “Modernization of Rural Healthcare” has been approved. As part of this project, the construction of 13 primary health care facilities has been completed, with construction of another 86 facilities underway.
  • Remote Medical Services: Systematic measures are being taken to develop remote medical services. Several domestic digital solutions are being introduced in Kazakhstan. Overall, over 9 months of 2023, more than 687,000 remote medical services have been provided, including telemedicine consultations.
  • Oncology Centers: Projects for creating 13 modern perinatal centers and constructing and modernizing oncology centers are underway.
  • Youth Health Centers: The network of youth health centers is expanding, with 138 centers currently operating in cities and rural areas. Over the first 9 months of 2023, more than 620,000 people have received relevant services.
  • Healthy Lifestyle: In the realm of promoting a healthy lifestyle, over 500,000 events and thematic classes have been held in the regions, reaching 2.4 million people. The main focuses include promoting healthy and rational nutrition, physical activity and sports, reducing tobacco and alcohol consumption, protecting mental and reproductive health, and reducing injuries.
  • By 2025, in line with the President’s electoral program, Kazakhstan aims to provide all its citizens with access to clean drinking water. The plan includes building 700 medical facilities in rural areas.
• Youth Support:
  • The comprehensive modernization of the country has yielded significant outcomes, ushering in a new wave of individuals in politics, public administration, business, science, and culture. In 2019, the Presidential Youth Personnel Reserve was established under the leadership of Kassym-Jomart Tokayev. Through a competitive selection process, 350 reservists were chosen from a pool of over 10,000 applicants. Significantly, over 75% of these reservists have been appointed to various positions, with three joining the Government. This process continues.
  • The provision of state support for youth initiatives in the economy, including grants and concessional lending, has played a crucial role in fostering the rise of a new generation of entrepreneurs and the growth of the creative industry. Notably, in recent years, the country has witnessed a surge in accomplishments within the scientific and cultural domains, largely attributed to the younger generation of citizens.
  • During his speech on the eve of Republic Day on October 25, 2023, Tokayev emphasized the pivotal role played by the creative prowess of the younger generation in driving the country’s development forward.
• Education Initiatives:
  • Student Places: Initiatives included creating 800,000 student places meeting modern requirements, reducing educational disparities between urban and rural areas, and introducing personal education vouchers.
  • Scholarships: Kazakhstan has increased the monthly state scholarship amounts: undergraduate students have seen a 20% increase, while those in master’s and doctoral programs have received a 15% increase, and technical and vocational education students, a 50% increase. By 2025, the scholarship amounts for students will gradually double from the 2020 level.
  • Free Hot Meals: As of September 1, all 1st-4th grade students in the country have been provided with free hot meals, benefiting 1.4 million children.
  • Support for Low-income Families: Low-income families received at least 40,000 tenge per child for the independent purchase of school clothes and stationery. A total of 463,000 children were covered, with 19 billion tenge of budget funds directed towards this initiative.
  • Construction of New Schools: The national project Comfortable School has been launched. By 2026, 369 new-format schools will be constructed, providing 740,000 student places. Renovation of existing schools is ongoing. Annually, 1,000 modern classrooms for robotics, chemistry, biology, physics, and STEM are opened in them. By 2029, 7,000 such classrooms will be opened.
  • Preschool: Since the beginning of the year, 525 preschool organizations for 53,900 places have been opened.
• State benefits: The duration for state benefits and social payments for childcare has been extended from 1 year to 1.5 years. As of November 1 this year, about 632,000 parents have received payments totaling over 258 billion tenge. The Digital Family Card (DFM) has been introduced, offering state support proactively without the need to approach various authorities. The support system for temporarily unemployed citizens has been strengthened, including an increase in social benefits for job loss to 45% of income.
• Environmental Policies: A new Ministry of Ecology and Natural Resources was established, focusing on environmental protection and the rational use of natural resources​​.
• National Fund for Children: Starting from January 1, 2024, 50% of the National Fund’s annual investment income will be allocated to children’s special savings accounts. Upon reaching adulthood at 18 years of age, these funds can be used to purchase housing and obtain education. The National Fund will enable children to purchase property or improve housing conditions within Kazakhstan and get higher education both at domestic and foreign institutions.
• Workers in hazardous professions: Following the President’s directive, a law was passed providing special social payments to miners and workers in hazardous professions. This act signifies a step towards justice for hundreds of thousands of workers and their families.
• Development of Rural Areas and Agriculture, including:
  • Leasing Program: Under the preferential leasing program, farmers have acquired 1,053 combines and tractors, totaling 40 billion tenge in value. A budget of 20 billion tenge was allocated for the purchase of 2,800 units of forage harvesting equipment.
  • The Aul Amanaty Program: This program aims to support residents of villages implement their business projects. This initiative aims to engage half of all personal subsidiary plots in the country in cooperative entrepreneurship and create over 350,000 jobs through micro-crediting and market access. A total of one trillion tenge has been allocated for this project, benefiting more than one million villagers. In 2023, 100 billion tenge from the state budget was designated to issue 17,000 microloans, expected to create over 18,000 new jobs in rural areas. To date, these funds have been fully disbursed in the East Kazakhstan, Kostanai, and Pavlodar regions, with ongoing work in other areas.
  • National Water Management System: By 2025, the plan includes constructing nine new reservoirs in the Zhambyl, Kyzylorda, Almaty, Akmola, and West Kazakhstan regions, with a total capacity of 1,700 million cubic meters of water for use in agriculture and industry. The second phase involves building 11 reservoirs in the Aktobe, Kyzylorda, East Kazakhstan, and Karaganda regions, adding over 705 million cubic meters of water capacity. Concurrently, there are plans to expand the total area of irrigated agricultural land from 1.8 to 2.5 million hectares, reconstruct 15 existing reservoirs, refurbish 3,500 kilometers of irrigation networks, and implement digital water metering across 212 canals.

These reforms reflect Tokayev’s efforts to modernize Kazakhstan’s political landscape, stimulate economic growth, and address societal issues, highlighting his commitment to transitioning towards a more democratic and economically stable nation.