Digital Kazakhstan

Digital Code of Kazakhstan

Main article: Digital Code of Kazakhstan

IT market of Kazakhstan

Main article: Kazakhstan IT market

2024

Disclosed the costs of the state program "Digital Kazakhstan" for 4 years

The Ministry of Digital Development, Innovation and Aerospace Industry of Kazakhstan in October 2024 published a report on the implementation of the state program "Digital Kazakhstan" for the period from 2018 to 2021. The total amount of funds spent amounted to ₸207,5 billion.

Funding for the program came from several sources. ₸82,4 billion were allocated from the republican budget, local budgets provided ₸29,8 billion. Private investment amounted to ₸90,6 billion, and local financial sources added ₸4,5 billion.

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Freepik

During the implementation of the program, out of 125 planned activities, 88 were completed. Some projects are considered impractical due to lack of funding or outdated conceptual solutions. 30 events are included in the concept of the development of information and communication technologies and the national project "Technological breakthrough through digitalization, science and innovation."

The Digital Kazakhstan program has achieved and surpassed a number of key indicators. The share of electronic public services was 90.07% with a plan of 60%. The number of Internet users reached 92.9% of the population, exceeding the planned 82%. The share of e-commerce in the total volume of retail trade was 9.6%, which is significantly higher than the planned 2.3%.

The digital literacy rate of the population reached 87.3%, exceeding the target of 81.5%. The volume of investments in startups amounted to ₸67,6 billion, which is almost twice the planned amount of ₸35,9 billion.

The total economic effect of the program is estimated at ₸1,6 trillion. The dynamics over the years is as follows: in 2018 - ₸218,2 billion, in 2019 - ₸584,3 billion, in 2020 - ₸448,1 billion, in 2021 - ₸378,5 billion. ��114,8 billion investments were attracted to the country's innovative ecosystem in four years. Distribution by year: 2018 - ₸14 billion, 2019 - ₸18,8 billion, 2020 - ₸12,5 billion, 2021 - ₸69,5 billion.^[1]

"The money was spent on digitalization, but there are no tangible results." Kazakhstan faces digital transformation challenges

In the fall of 2024, a discussion broke out in Kazakhstan about the effectiveness of state digitalization programs. Despite significant financial investments, the expected multiplier effect on the country's economy was not achieved, which caused concern among parliamentarians.

According to Total, deputy Suindik Aldashev at a plenary session of parliament made a request to Prime Minister Olzhas Bektenov and Minister of Digital Development, Innovation and Aerospace Industry Zhaslan Madiev. The parliamentarian noted that the previously adopted program documents, such as "Information Kazakhstan 2020" and "Digital Kazakhstan," did not bring the expected results.

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They spent money on digitalization, but there are no tangible results, "the deputy said.

Aldashev pointed to a number of problems in the implementation of the country's digital transformation. In particular, he noted the insufficient integration of information systems of various state bodies. According to the Supreme Audit Chamber, out of 235 information systems of central state bodies, 24 were not put into commercial operation at the end of 2023.

In addition, the deputy drew attention to the problem of Internet accessibility in rural areas. Only about 41% of villages are provided with fiber-optic communication lines, which significantly limits the possibilities of digitalization in agricultural regions.

Separately, the question was raised about the insufficiently active introduction of digital services and technologies in the domestic business environment. This may negatively affect the competitiveness of Kazakhstani enterprises in the international market.

The national project "Accessible Internet" for 2023-2027 is being implemented in Kazakhstan. Deputy Aldashev called for taking into account all the omissions and gaps of previous programs when implementing this project, stressing the need for joint effective efforts.^[2]

National AI model KAZ-LLM is being created in Kazakhstan

In Kazakhstan, work has begun on the creation of a national model of artificial intelligence called KAZ-LLM. This became known in August 2024. This project is being implemented by a scientific working group led by the Institute of Smart Systems and Artificial Intelligence (ISSAI) at Nazarbayev University, with the aim of bridging the language gap in the field of AI and creating technologies adapted to the needs of Kazakhstanis. Read more here.

Robot bailiff, digital power of attorney, online registration of legal entities. How is the digitalization of the Ministry of Justice of Kazakhstan

The Ministry of Justice of the Republic of Kazakhstan in July 2024 summed up the results of work for the first half of 2024. Key innovations included a robotic bailiff, digital power of attorney and online registration of legal entities. Read more here.

Kazakhstan approved the concept for the development of artificial intelligence for 2024-2029. Main provisions

On July 16, 2024, in Kazakhstan, at a government meeting chaired by Prime Minister Olzhas Bektenov, the concept for the development of artificial intelligence for 2024-2029 was approved. The document provides for the introduction of AI technologies in various sectors of the economy.

According to Bektenov, the use of AI technologies can automate routine tasks. Among them are named certain production processes, risk calculations in the field of health care, forecasting emergency situations, early detection of threats and cyber attacks. Within the framework of the approved program, priority sectors of the economy for the introduction of AI are identified: these are public administration, natural monopolies in the oil and gas, mining, energy, transport, logistics, water supply and agricultural industries.

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By 2029, the number of products using artificial intelligence should grow 5 times. Accordingly, the share of educational programs or disciplines in artificial intelligence should increase. We need qualified specialists in this area. At the same time, it is important to take into account the capabilities and needs of domestic companies as much as possible, which will create a multiplier effect on the economy as a whole, "Bektenov said.

It is noted that the concept is being implemented by the Ministry of Digital Development together with the akimats. At the same time, the Ministry of Justice was instructed to intensify work to improve the legislative framework for regulating the scope of artificial intelligence.

The Ministry of Science and Higher Education of Kazakhstan is developing a modern large language model (LLM) for the development of cultural and linguistic heritage. Within the framework of the project, a consortium was formed of several educational organizations - the Institute of Information and Computing Technologies, Satpayev University, Nazarbayev University, the Tіl- Қazyna National Research Center named after Shayakhmetov, the Institute of Linguistics named after A. Baytursynov and KazNU. Specialists collected about 6 billion word consumption, on the basis of which LLM training is carried out. The Ministry of Science has been instructed to complete data collection for KazLLM: training of the large language model should be carried out in the third quarter of 2024.

As of mid-July 2024, 17 areas of AI were introduced by 15 universities of the country. A number of educational and acceleration programs are planned in the relevant area. On the basis of the National Center for AI (National Center for AI), an ecosystem will be created to "engage young people, develop human capital and promote the culture of artificial intelligence." The Ministry of Digital Development, together with the Ministries of Science, Education, Labor, is assigned the task of forming a program for the annual increase in the number of trained specialists, regional centers of competence and programming schools.

Kazakhstan is implementing a set of measures to collect data from government agencies in the Smart Data Ukimet system, to which 93 information bases are connected. In addition, it is planned to create a national AI platform. New data centers will be built in the country and a supercomputer will be launched. Its computing resources are planned to be provided to business and scientific organizations. The Ministry of Finance has been tasked with simplifying the procedure for renting information and communication infrastructure facilities. In order to maintain workloads, including those related to AI, it is planned to develop a fiber-optic network.^[3]

Kazakhstan has adopted a law on data management. A single state platform QazTech will be launched

On June 27, 2024, the Senate of the Parliament of the Republic of Kazakhstan approved a law on state control and statistics, improving the system of population protection and data management. The document, among other things, provides for the creation of a single digital state platform QazTech. Read more here.

The deputy head of the Ministry of Culture of Kazakhstan received 6.5 years in prison for the theft of 100 million tenge allocated for the digitalization of archives

Deputy Chairman of the Committee on Archival Businesses and Documentation of the Ministry of Culture and Sports of the Republic of Kazakhstan was sentenced to 6.5 years in prison for embezzlement of more than 100 million tenge of budget funds intended for the digitalization of the country's archives. This information was published in early June 2024 by the press service of the Financial Monitoring Agency of Kazakhstan. Read more here.

The President of Kazakhstan signed a law on the digitalization of the country. Main provisions

On May 21, 2024, President of the Republic of Kazakhstan Kassym-Jomart Tokayev signed a law on the digitalization of the country. We are talking, in particular, about the development of fiber-optic communication lines, cellular infrastructure, electronic document, navigation satellite technologies, etc.

The document provides for amendments and additions to some legislative acts of the Republic of Kazakhstan on "issues of communication, digitalization, improvement of the investment climate and the exclusion of excessive legislative regulation." Mechanisms for laying communication lines, emergency warning of citizens about the threat of an emergency and the introduction of a state of emergency are being improved. In addition, a ban was introduced on the import of equipment into Kazakhstan to ensure the functioning of communication networks, the control center of which is located outside the country.

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Site of the residence of the President of Kazakhstan "Akorda"

The law provides for a number of measures aimed at expanding and improving communication infrastructure. Thus, when planning the development, reconstruction and repair of public roads, in agreement with the authorized state body, it is possible to build fiber-optic communication lines (FOCL). In addition, FOCL can be conducted through the supports of overhead power lines in accordance with the rules for the design of electrical installations. On the basis of the contract, telecom operators can share engineering infrastructure, supports, as well as other means of telecommunications. The maximum tariffs for property hiring (rental) of places for placing communication equipment, as well as supports of overhead power lines for conducting fiber-optic transmission are regulated by the state. At the same time, certain responsibilities are imposed on market participants. In the event of a threat and (or) an emergency of a social nature, natural and man-made nature, as well as in the introduction of a state of emergency, telecom operators are obliged to provide mobile communication stations at their disposal at the request of operational headquarters.

Another provision of the new law concerns the implementation of an anti-fraud mechanism, within the framework of which measures will be applied against Internet fraud and the use of financial organizations for illegal purposes. The special anti-fraud center is responsible for collecting, consolidating and storing information about transactions with signs of fraud received from financial organizations, payment systems, mobile operators, etc. If a suspicious transaction is identified, the financial or payment organization may suspend the transaction and/or block the money (for a period of not more than three business days). Mobile operators, criminal prosecution bodies, the National Bank of the Republic of Kazakhstan and the authorized body for the regulation, control and supervision of the financial market and financial organizations participate in the activities of the anti-fraud center. At the same time, the anti-fraud center has the right to provide the criminal prosecution authorities with data on payment transactions with signs of fraud.

The law also affects the sphere. health care The issues of the integration platform designed to automate the activities of the Ministry of Health, including for interaction with institutions of the relevant industry, have been resolved. At the same time, an authorized organization carrying out activities on the creation, implementation, development, maintenance of the information and communication platform of electronic health care, as well as ensuring its functioning and information interaction with the subjects of digital health care should be determined.

The Ministry of Digital Development, Innovation and Aerospace Industry is endowed with the competence to establish additional obligations of telecom operators to provide preferential tariffs to persons with disabilities. It is also said that communication services at agricultural and industrial facilities are subject to subsidies in order to introduce digital technologies.

The document defines the main tasks of industry centers of technological competencies. They include the implementation of technological forecasting of the relevant industry, assistance in the development and implementation of a target program, monitoring of global trends, determining current conditions and competitive advantages for accelerated technological development, as well as the needs and interest of private entrepreneurs, assistance in disseminating best practices and experience of innovative activities among business entities of the relevant industry. In addition, the centers are responsible for the implementation of international cooperation in order to attract foreign investment to Kazakhstan.

The law defines a mechanism for establishing navigation seals for tracking the transportation of goods within the framework of the Eurasian Economic Union for all types of transport, and not just for cars. Such a seal refers to a special device that includes an electronic unit with support for satellite navigation systems. The product is responsible for transferring data about the tracking object to a special information system. Control of transportation using navigation seals is carried out in accordance with international treaties ratified by the Republic of Kazakhstan and current legislation.^[4]

President of Kazakhstan instructed to carry out digital reforms in the country

On February 7, 2024, an expanded meeting of the new government was held in Astana with the participation of the President of Kazakhstan Kassym-Zhomart Tokayev. The head of state, among other things, instructed to carry out digital reforms aimed at accelerating the country's development.

According to the President, Kazakhstan needs to increase the efficiency of tax and budget policy. The state faces "an absolutely urgent task of high-quality, dynamic development of the national economy," which "is impossible without the introduction of a new system for taxing profits and property, stimulating the reinvestment of income received in business development, and changing tax special regimes."

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Tokayev believes that digitalization of various industries and the introduction of artificial intelligence technologies will help to qualitatively change the situation in the economy of Kazakhstan. Moreover, it is AI, according to the president, that can become the driving force for economic progress and innovation in the country.

A kind of fuel for artificial intelligence is data. It is important, on the one hand, to ensure access to them, and on the other, to guarantee the security, confidentiality and quality of data, says Tokayev.

The head of state pointed out the need to form an extensive database of impersonal data of both the state and commercial sectors. To work with it, you need to create a single architecture of data management systems. In addition, according to Kassym-Zhomart Tokayev, the country is starting to create a high-performance supercomputer, which will be available not only to scientists, but also to various companies, which "will give a powerful impetus to the widespread use of big data." The government is ordered to intensify work on attracting investments, as well as to carry out reforms of public procurement, public-private partnership, construction regulation, etc.^[5]

2023

Kazakhstan has developed a digital code to solve the problems of regulating the IT industry

The Ministry of Digital Development, Innovation and Aerospace Industry of Kazakhstan (ICRIAP) has developed a digital code to solve the problems of regulating the IT industry. 120 million tenge was spent on the implementation of this project (about 263 thousand at the rate at the time of the news - November 24, 2023).

Today, digital space has become the main channel of interaction between citizens, business and the state. Codification will also make the application of laws in the digital environment accessible and understandable to citizens and businesses, and will eliminate burdensome requirements and regulatory barriers. The pace of development and the scale of the spread of digital technologies impose new requirements not only for the speed of adoption of regulatory acts, but also for the structure of legislation. The adoption of the Digital Code will make it possible to form a single legal space for the development of the digital economy and the digital transformation of public administration, "said Askar Zhambakin, Deputy Minister of the ICRIAP.

ICRIAP has developed a digital code to solve the problems of regulating the IT industry

According to the document, one of the main barriers to the development of digitalization in Kazakhstan by November 2023 are:

• cumbersome, controversial and unstable legislation;
• excessive regulation of the functions of state bodies and administrative procedures at the legislative level, which deprives the authorized bodies of independence, as well as the ability to make operational decisions to optimize external and internal business processes, implement best practices and digital solutions;
• legislative gaps in the regulation of digital human and citizen rights;
• uncontrolled use of big data, data processing algorithms using AI, the Internet of Things for "digital surveillance";
• lack of a single legislative framework governing digital service providers.^[6]

President of Kazakhstan set tasks for ICT development of the country

President of Kazakhstan Kassym-Jomart Tokayev, speaking at one of the IT forums in October 2023, spoke about the tasks of developing information and communication technologies in the country.

According to the Kazakh leader, the country will have to adopt a strategic document defining the scope, tasks and tools for the development of artificial intelligence.

President of Kazakhstan Kassym-Jomart Tokayev

This is best international practice, such a step will allow us to set a stable vector of the country's technological progress. I believe that first of all we should focus on the introduction of artificial intelligence technologies in such significant industries for our economy as the oil and gas sector, power, agriculture, transport and logistics. Artificial intelligence can largely optimize the process of transforming our cities into full-fledged smart cities that are favorable for living and working, "Tokayev explained.

According to him, the country also needs to strengthen its digital infrastructure and increase computing power.

I instruct the government to ensure the construction of data centers specializing in artificial intelligence for two years. Global players such as Amazon, Google, Mastercard and City Group can be involved. During a recent trip to New York, I met with the management of these companies, and appropriate agreements were reached. It is also important to develop a data ecosystem for artificial intelligence. Big data is essentially "fuel" for artificial intelligence, Tokayev continued.

Another order of the President of Kazakhstan is to deploy 5G networks in all regional centers by the end of 2025. At the same time, later dates were originally called - until 2027.

The government should comprehensively work out this issue. If necessary, amend the legislation, the Kazakhstani president concluded, stressing that residents of the most remote areas must be provided with access to the Internet using low-orbit satellite systems.[7]

Turn Kazakhstan into an IT country. President Tokayev - on plans for digitalization

President of Kazakhstan Kassym-Jomart Tokayev in his annual message to the people stressed that the republic should become an IT country. His words are quoted by the official Telegram channel of the press service of the President of Kazakhstan.

You know, I pay increased attention to digitalization and innovation. We are faced with a strategically important task - to turn Kazakhstan into an IT country. We already have achievements in the field of digitalization - we are among the world leaders in the development index of e-government and fintech, - said the Kazakhstani leader.

President of Kazakhstan Kassym-Jomart Tokayev

According to him, the volume of exports of the Kazakh IT industry only in 2022 increased fivefold and by the end of 2023 may exceed $0.5 billion.

But this is not the limit either. The government's new challenge is to bring IT services exports to one billion dollars by 2026. This will be facilitated by the opening of joint ventures with large foreign IT companies. The government should make detailed proposals on this issue, the president said.

Former Deputy Chairman of the Board of the National Infocommunication Holding "Zerde" Pavel Koktyshev believes that Kazakhstan has every chance to become an active digital IT economy. He connects this with the fact that in the country there are constantly growing trends not only in exports, but also in revenue growth and new companies.

The market is now at the growth stage and it will be at this stage for quite some time. The only thing is the speed that the president is talking about will require, to be honest, great mobilization when attracting large international companies to Kazakhstan. Also, structuring, for example, he devoted a whole block to the development of medium-sized businesses. I believe that in a number of areas, what the president said today about the development of innovations and export development, one of the important key decisions is the development of the venture capital industry, and he also said about it, "commented Pavel Koktyshev.[8]

President of Kazakhstan named 5 priorities of digital transformation of Kazakhstan

In July 2023, President of Kazakhstan Kassym-Jomart Tokayev named five key priorities in the country's digital transformation.

It is noted that Kazakhstan acts as an attractive space for the development of innovation, digital production and creativity. This is especially important in light of the current geopolitical situation and in the context of macroeconomic challenges. At the same time, digital transformation is one of the determining factors in the competitiveness of both individual companies and large regions.

Kassym-Jomart Tokayev

Priority# 1 - Humanocentric

We are talking about providing citizens with modern services. In particular, it is planned to make a transition to a qualitatively new format of digitalization of public administration - Invisible Government. The bottom line is that the main focus of public policy is on the person, their needs and interests. All government services will be translated into electronic format as much as possible.

Priority# 2 - Create an enabling environment for the IT industry

Kazakhstan intends to become a leading player in the field of new digital technologies, the crypto industry, as well as regulated and transparent digital mining. The development of the IT sector is an important area of ​ ​ government activity. Conditions will be created to attract international capital to the Kazakh digital ecosystem.

Priority No. 3 - large-scale modernization of IT infrastructure

Kazakhstan forms a digital infrastructure associated with international corridors and cross-border data flows. In particular, together with Azerbaijani partners, work has begun on the trans-Caspian section to connect traffic concentration to world centers. The largest players in the field of cloud computing are attracted to the local market.

Priority No. 4 - development of the digital economy and industry 4.0

This area involves innovative grants and tax preferences for technological updating and digital decision-making. For the further development of the digital economy, the government will have to timely introduce new support measures.

Priority# 5 - Strengthening Human Capital

As digital transformation progresses, there is a growing need for skilled IT professionals. The task was set by 2025 to train at least 100 thousand such employees. To achieve this goal, the patronage of specialized universities over regional universities was introduced, grant training was expanded, and 12 private innovative IT schools were opened.^[9]

How is the digital transformation of Kazakhstan going

In July 2023, the Global CIO portal published a study on the Kazakhstan IT market and prepared in the context of the peculiarities of the digital transformation of various industries.

According to the authors of the report, in 2022 Kazakhstan entered the top 30 most digitally developed countries in the world. In the world ranking, Kazakhstan ranks 51st in the ICT Development Index and 58th in the Network Readiness Index. By 2025, the Kazakh government plans to be among the top 20 in the UN e-government development index, among the top 50 in the B2C (Business to Consumers) e-commerce index and among the top 40 countries in the Information and Communication Technology Development Index.

The volume of services provided Kazakhstan in the field of programming, consulting and other related services at the end of 2022 amounted to 772 billion tenge (approximately $1.67 billion at the average exchange rate dollar to tenge for 2022), which is 19.5% more than a year earlier.

The largest economic and IT centers are the cities of Astana and Almaty: companies from these cities produce 41.5% and 49% of IT services, respectively. The number of IT software development and consulting services companies has increased 2.7-fold over the past 4 years, according to a study in 2022.

Fintech and the banking sector

The fintech market in Kazakhstan is one of the fastest growing in the country and the largest in Central Asia. Banks actively cooperate with digital companies and form ecosystems, and services become personalized and capable of solving a wide range of problems, including both financial and non-financial ones, the researchers point out. According to data for 2022, 86% of Kazakhstan's residents are active users of mobile banks.

Digitalization in the mining and metallurgical complex

In 2022, the mining industry in Kazakhstan was at the beginning of the digitalization path, but the use of digital technologies at some enterprises has already made it possible to obtain significant effects at all stages of value creation. For digital transformation of the mining and metallurgical complex (MMC), the main stop factor remains the lack of digital competencies within the company, namely, organizational, technological and cultural transformation, so that the entire organization, including production workers and technologists, owns the data-driven approach and self-service analytics tools, analysts say. They listed several trends in the digitalization of MMC in Kazakhstan:

• using artificial intelligence and the industrial Internet of Things as tools for economic sustainability of enterprises;
• import substitution in terms of technologies and IT suppliers;
• shortage of qualified personnel: digital transformation requires a large number of specialists with a deep understanding of mining and information technology at the same time. There are no such specialists now, they need to be trained.
• state support for digital transformation: the Mining Industry 4.0 national project has been launched to unite IT, production and training of specialists in universities.

Construction sector

By the end of 2022, Kazakhstan has implemented several state projects aimed at the construction sector:

• a single geoportal of infrastructure data (EGID). In 2022, 63.7% of information about the engineering networks of the built-up area was digitized, 142,618 entries were made in the "act of commissioning" layer, 1908 users work in the system;
• E-PSD - a single digital platform for interaction between customers and expert organizations on the principle of "one window";
• IS "Kazreestr" - a system for automated collection, processing, storage and analysis of information in the field of state registration of shares in housing construction. It contains unique project numbers, GASK notification (obtaining a building permit), information about premises, electronic equity agreements (auto-check and auto-registration of contracts);
• e-QURYLYS is a system for ensuring monitoring and transparency of work at all stages of the construction process. More than 25,000 construction projects have already been registered in e-QURYLYS, 6,230 reports were submitted in March 2022 alone;
• e-SHANYRAQ is a system for improving the transparency and efficiency of the activities of housing and housing and communal services entities. It analyzes the efficiency of utilities, instrumentation of water and heat metering, accounting and control of elevator operation, monitors the state of the communal infrastructure, draws up a technical passport for the state of apartment buildings.

Digitalization of public services

By 2022, 58.2 billion tenge was allocated for the management of information and communication infrastructure within the framework of the formation and development of state electronic information resources and systems. The development of public services is facilitated not only by synergy with the banking sector, but also by high coverage Internet and cellular communications of the country. Now in Kazakhstan there are 6,406 settlements, of which 4,974 (77%) are connected to broadband mobile. 2,928 to the Internet settlements are connected to the network, 2,046 are 4G provided with 3G technology. By 2027, 75% coverage of the network 5G of each city of republican importance and the capital and 60% 5G coverage in regional centers is planned.^[10]

Kazakhstan creates National Spatial Data Infrastructure for 15 billion tenge

At the end of March 2023, it became known that the National Spatial Data Infrastructure (NIPD) would appear in Kazakhstan. It is planned to allocate 15.5 billion tenge for the implementation of the project (approximately 2.79 billion rubles at the exchange rate as of April 13, 2023). Read more here.

2022: Free information system for farmers is being developed in Kazakhstan

Prime Minister of the Republic of Kazakhstan Alikhan Smailov spoke about the development of an information system for farmers. This became known on April 7, 2022. Read more here.

2021: IT Minister of Kazakhstan reported on the results of digitalization of the country

In April 2022, the Minister of Digital Development, Innovation and Aerospace Industry of Kazakhstan Bagdat Mussin reported to President Kassym-Jomart Tokayev on some results of the digitalization of the republic for 2021.

One of the items of the report is devoted to the elimination of digital inequality. According to Mussin, in 2021 the quality of the Internet has been improved in 628 settlements of Kazakhstan, and in 2022 another 140 villages will be covered.

In April 2022, the Minister of Digital Development, Innovation and Aerospace Industry of Kazakhstan Bagdat Mussin reported to President Kassym-Jomart Tokayev on the results of the country's digitalization

The IT Minister of Kazakhstan also said that 18 of the most demanded documents have been translated into digital format, including through the withdrawal to popular external platforms with the obligatory observance of measures to protect personal data.

The President was informed about the successful testing of 5G technology by mobile operators in Nur-Sultan, Almaty and Shymkent. In 2022, it is planned to launch commercially in cities of republican importance.

Mussin reported on a number of strategic projects within the framework of the digitalization of Kazakhstan in the fields of power, subsoil use, health, social protection and monitoring of water and land resources using remote sensing satellites. The President instructed to develop specific measures to support the domestic IT sector, as well as to assist foreign IT companies that have achieved success in the international market.

During the meeting, the minister also proposed creating a platform for digitalization based on the resources of NIT JSC, domestic IT companies with the involvement of experts with experience in the implementation of such projects.

In accordance with the Digital Kazakhstan program, 81% of the country's population should have been connected to the Internet by the end of 2021, and the level of digital literacy of the population should have reached 81.5%. Whether these goals were achieved is not reported by April 2022.^[11]

2020

Creation of a center for digital transformation of state institutions in Kazakhstan

In November 2020, the creation of the Center for Engineering and Digital Transformation began in Kazakhstan, with the help of which the government intends to improve the work of state IT systems. Read more here.

IT specialists are sorely lacking to implement Digital Kazakhstan project

By the end of April 2020, Kazakhstan continues to have an acute shortage of IT specialists needed to transfer public services to the online format. The main reason for the shortage of personnel is associated with low wages.

As the deputy head of the department of industrial and innovative development of Pavlodar region Kenzhebek Azatbekov told the publication "Italic," the salary in government agencies for narrow-profile employees ranges from 100 to 150 thousand tenge ($233-349 at the rate as of April 29, 2020).

VKazakhstan continues to have an acute shortage of IT specialists needed to transfer public services to online format.

Graduates of universities come to our work, we teach them practical skills. But as soon as they grow professionally, they go to the private sector, where the average salary of a programmer in Kazakhstan is from 600 thousand tenge, - said Azatbekov.

According to him, 13 district akimats and 23 departments of the region require at least one IT specialist who could qualitatively implement the programs required by digitalization at all levels.

The Finprom.kz agency reports that in Kazakhstan the salary of specialists in computer programming, consulting and other related services significantly exceeds the national average: according to the results of the first quarter of 2020, it amounted to 342.8 thousand against 168.5 thousand tenge, respectively.

Sergey Golyshev, director of the IT company BFGroup, said in comments to Italia that in ten years there may not be good IT specialists in the country. In order for the digital economy not to remain a beautiful phrase, according to the expert, it is necessary to develop the IT sector. For this, it is important that young talented guys not only do not leave the country, but, on the contrary, return home. He also stressed that there will be no good IT specialists in the civil service if the issue of remuneration is not revised.^[12]

Kazakhstan began to completely switch to electronic tests in universities

In early March 2020, the Ministry of Education and Science of Kazakhstan announced the start of the implementation of the project to completely transfer the accounting of student grades to electronic format. As a result, classic paper credit books in colleges and universities will be completely canceled.

The ministry issued an order regarding the exclusion of credit books of students, undergraduates and doctoral students. This innovation will affect 604,345 students, 35,690 undergraduates and 6363 doctoral students. It is worth noting that on average one test book costs 380 tenge (about 66 rubles).

The Ministry of Education and Science of Kazakhstan announced the start of the project to completely transfer the accounting of student grades to electronic format

In universities of the country, the information system keeps a history of educational achievements of students, undergraduates and doctoral students throughout the entire period of study, which is reflected in the transcript. The transcript is issued at the request of the student for any period of his studies, the Ministry of Education said in a statement.

The transcript maintains a history of the student's educational achievements throughout the entire period of study and replaces the paper test book. The transcript is issued at the online request of the student from his personal account for any period of his training.^[13]

There are important advantages in the transition to digital format. First, it allows the university to save a lot of money and reduce bureaucratic processes within universities. In addition, teachers will be able to evaluate a student's knowledge without focusing on his academic performance earlier, and it is easier to put marks in an electronic journal.

According to the Ministry of Education of Kazakhstan, the educational process is fully automated in five medical universities of the country: from admission to an educational institution to graduation with the issuance of a diploma and applications. Each student has an account in the system and his own unique ID. In the personal account, the student has access to all information resources, electronic services and services.

2019: Economic effect - KZT714.3 bn

As a result, the implementation of the Digital Kazakhstan state program at the end of 2019 attracted 32.8 billion tenge to the innovative ecosystem and created 50 thousand jobs, and the economic effect amounted to 714.3 billion tenge. This was reported on February 3, 2020 in the Group of Companies "Figure."

In the mining and metallurgical complex and the manufacturing industry, about 200 digital projects are being implemented, including 12 model digital factories.

As noted in "Zyfra," Russia actively takes part in the development of digitalization of the Republic of Kazakhstan, and joint work within the framework of the digital agenda of the EAEU leads to the rapid development of IT companies and the promotion of products of the state program "Digital Kazakhstan." One of the key programs where cooperation between Kazakh and Russian business is most active is Digital Mine.

Among the expected results of the Digital Mine project are reducing production costs, managing working capital, increasing motivation and productivity of personnel, increasing the efficiency of equipment use, as well as ensuring the safety of production personnel.

2018: National Institute for Information Security initiated

The authorities of Kazakhstan are considering the creation of a specialized Institute in the country, which would deal with the current problems of ensuring the country's information security. The initiator of the creation of such an institution is Yerzhan Seitkulov, Director of the Research Institute of Information Security and Cryptology of the ENU named after L.N. Gumilyova, member of the Public Council of the Ministry of Defense and Aerospace Industry of the Republic of Kazakhstan^[14].

The key idea of ​ ​ creating a new structure is that this should make it possible to more effectively implement research and development work aimed at ensuring the information security of the state.

The main tasks of the new Institute are such as the implementation of the strategic task of phased import substitution, participation in the implementation of state policy in the field of information security, the development of public-private partnership, support for domestic researchers and startups, updating and developing national standards in the field of information security, training personnel, expertise of scientific and technical projects, etc.

It is assumed that the new Institute will be a direct participant in the state system "Cyber ​ ​ Shield of Kazakhstan," which will provide scientific and analytical support for its activities on an ongoing basis.

2017

Digital Kazakhstan program includes 23 projects

The authorities of Kazakhstan approved the state program "Digital Kazakhstan." According to the government's plans, the country will face a complete digital transformation, which will occur with the help of 23 "icebreaker" projects designed to "hack entire sectors of the economy for the emergence of digital business in them." This was stated in September 2017 by the head of the Prime Minister of the Republic Bakytzhan Sagintayev.

The head of the government of Kazakhstan Bakytzhan Sagintayev said that the government intends to carry out a "coup" of the domestic economy by approving the state program "Digital Kazakhstan" and setting a course for the digital transformation of the country. Building long-term institutions of innovative development for the sustainability of the digitalization process and ensuring a pragmatic start of the program are identified as its main directions. The Prime Minister stated this at the Republican meeting on the digitalization of Kazakhstan^[15].

The meeting was attended by the Minister of Communications and Mass Media of Russia Nikolai Nikiforov. He spoke about a similar Russian program "Digital Economy of Russia" and invited Kazakhstan to jointly develop key technologies for digital transformation. In turn, Nursultan Nazarbayev proposed to Russia, Belarus and Kazakhstan to create a joint commission on digitalization. "We need to develop key technologies together, through which the digitalization of our economies takes place. These can be big data technologies, advanced registry technologies, often called 'blockchain', artificial intelligence, augmented reality, robotics, sensors. It is important to unite efforts so that we do these technologies together so that the digitalization of the economies of Kazakhstan and Russia does not turn into the use of certain foreign solutions, so that we ourselves learn to develop these technologies, "said the head of the Ministry of Telecom and Mass Communications of Russia. Nikolai Nikiforov also met with the Minister of Information and Communications of Kazakhstan Dauren Abaev. They discussed the development of the digital economy in Russia and Kazakhstan and the broadcasting of Russian media in Kazakhstan.

Expectations from the state project and its focus

According to the government's plans, which were announced by the prime minister, the digital economy should grow at a pace significantly ahead of economic growth in general, and Kazakhstan should take 30th place in the international ranking of digital competitiveness by 2025. "In fact, Kazakhstan, through the joint efforts of the state and business, will have to build the digital sector in 10 years as a new sector of the economy that permeates the entire life of the country," Sagintayev explained.

The basis of the ecosystem, which will be created thanks to digital transformation, will be the digitalization of the basic sectors of the economy, the development of the mobile state, the formation of a creative society and the creation of a new infrastructure. In all four segments of the system, "icebreaker projects" have been approved, which will "hack entire sectors of the economy for the appearance of digital business in them."

The head of government said: "There are 23 icebreakers today, and special attention will be paid to these projects. The list will always be open to include new icebreakers. At the same time, the government will continue to build institutions of long-term innovative development, creating a favorable climate for the self-realization of people and businesses of the digital economy. Such a matrix is both sufficiently rigid at the base and sufficiently flexible in detail. "

Basic principles of the state program

Three basic principles have been defined for the Digital Kazakhstan program: the digitalization of flagship industries, the introduction of the most modern technolo and the use of a digital approach (the principle of flexibility, which will become the "philosophy of the document").

Sagintayev stressed: "The government will constantly adjust its digital development policy, supplement the program with new projects in accordance with current global trends. Under this serious management challenge, a software management model has been built based on the best public administration practices. Throughout the vertical, a corporate project office for the implementation of the program has already been created, in the most modern sense, the activities of which will be closed at the interdepartmental commission for digitalization under the government. This task of the management sector is to develop the PPP system in order to constantly involve business investments in digital transformation. "

Strong Business=Strong Digital Country

The prime minister noted that a strong digital country begins with a strong business that is fully integrated into the world of digital solutions. Therefore, the state digitalization program is aimed at the widespread introduction and use of digital technologies by the country's business in all priority sectors.

He said: "Kazakhstan occupies good positions in the main world ratings of digital competitiveness. But our country in a number of indices is still drawn down by the lag of the corporate sector in the field of digital implementations. It is necessary to correct this situation through the creation of a system of incentives for the introduction of digital technologies for entrepreneurs. Priorities here are improving the regulatory framework and regulation, creating special conditions for attracting investments in digital projects. That is, the maximum cost reduction for the digital transformation of enterprises. Digital mines, intelligent deposits with government support will become commonplace for the commodity economy. Autonomous sensing technologies will have a large coating in the agro-industrial complex. Robotization and the Internet will form the basis for the modernization of industrial enterprises. All this will increase the demand for services, the service of IT companies. " When launching a digital transformation program, according to Sangitaev, it is the emphasis on the sectors of the economy that will quickly form not only the sector, but also the spatial framework of the digital economy.

Access to the Internet to - the infrastructure foundation of the digital economy

According to the digital transformation program, universal access to the Internet is the infrastructure foundation of the digital economy. According to the data announced by the head of the Cabinet, 77% of the adult population of Kazakhstan Segdnya own basic digital literacy and have access to the Internet.

Sagintayev believes that providing the entire country with wide access to the network will create conditions for the advanced development of many sectors of the digital economy. In his opinion, the most significant among them are distance education, telemedicine and artificial intelligence in medicine, as well as electronic commerce. "It is the complete internetization of the country that will allow the government to unleash the potential of these fast-growing sectors, creating the conditions for the successful operation of service businesses in the last mile of interaction with consumers," he stressed.

Digitalization will increase the country's competitiveness in the world

The prime minister noted that the country has already created an infrastructure of innovative progress, which will be used by the government to implement joint programs in the field of digitalization. "New technological regulation is a huge field of cross-country competition for sectors of the digital economy. And Kazakhstan has a real opportunity to create new sectors of the economy of the future with accurate regulatory decisions, "he assured the country's president. Already, such institutions of digital progress have been created in the republic as the Astana Hub and the Kazakhstan Representative Office, recently launched in Silicon Valley "with the wide introduction of a system of scholarship programs for the professions of the future."

Sagintayev explained: "The pragmatic goal of the program is to create about 200 thousand new jobs in the digital sector by 2021. To develop a creative society, the education system will play a large role throughout the vertical, including the school level. In this regard, within the framework of the Modernization of Public Consciousness program, the government will not only study the most progressive world experience in transforming the education system, as, for example, in Finland, but also prepare an appropriate decision taking into account the specifics of our country. "

E-system of public procurement "Samruk-Kazyna"

By 2018, Kazakhstan plans to launch the Samruk-Kazyna e-procurement system. This was announced in September 2017 by the managing director of Samruk-Kazyna Contract, Zhumgaliev Bolat.

All procedures of the existing functionality - procurement planning, selection of the supplier, conclusion of contracts and payment for them, will be carried out in electronic form. According to the developers, a single system will contribute to accurate monitoring of the progress of procedures and will prevent errors in procurement.

The company's future plans also include the integration of web services with existing customer accounting systems. As Zhumgaliev noted, "after establishing such a mechanism, all information from customer systems will be automatically uploaded to our portal."

Situational center will start working in the capital of Kazakhstan until May 1

By May 1, a city situation center will be opened in the capital of Kazakhstan, the work of which will be synchronized with the activities of the main operating center of the Department of Internal Affairs (DED) of the city.

The city situation center, created within the framework of the program of the city authorities "Safety and comfort of the capital," will begin work in Astana until May 1. It is planned that the new structure will closely interact with the main city operations center of the Department of Internal Affairs (DED). The press service of the capital's akimat, talking about the program, emphasizes: "The document includes 172 events and two sections -" Safety "and" Comfort. " The first section includes: ensuring public safety, preventing emergencies and preparedness for consequences, economic security. To the second - satisfaction with service, quality of life and tourist comfort. To date, 19 items have been fully implemented, the remaining 99 events are at the stage of implementation. " So, by the end of the year it is planned to install 10 thousand CCTV cameras in Astana, which will be used by both police officers and city^[16].

"Digital Kazakhstan": Nazarbayev urged to develop 3D printing and mobile banking in the country

On January 31, 2017, President of Kazakhstan Nursultan Nazarbayev, in his message to the people, set the task of implementing the Third Modernization in the country. According to him, two successful upgrades have given invaluable experience and now it is necessary to move on.^[17]

Nursultan Nazarbayev urged to develop 3D printing and mobile banking in Kazakhstan

The head of state is confident that the widespread digitalization of the economy will lead to the disappearance of entire industries and the creation of fundamentally new ones.

Today I set the task to ensure the implementation of the Third Modernization of Kazakhstan. It is necessary to create a new model of economic growth that will ensure the country's global competitiveness. Currently, many countries are trying to solve the same problem. I am sure that the recipes for moving to a new growth model will be different everywhere. We must proceed from our strengths and not lose the potential that we have created together over the 25 years of our Independence, Nazarbayev notes.

He calls the accelerated technological modernization of the economy one of the main priorities, while talking about the need to cultivate new industries that are created using digital technologies. This is an important complex task, Nazarbayev believes.

In his opinion, it is necessary to develop in the country such promising industries as 3D printing, online trading, mobile banking, digital services, including in health care and education, and others. These industries have already changed the structure of the economies of developed countries and have given a new quality to traditional industries, the president says.

In this regard, he instructed the Government to develop and adopt a separate program "Digital Kazakhstan."

It is also important to ensure the development of communications, universal access to fiber-optic infrastructure. The development of the digital industry will provide momentum to all other industries. Therefore, the Government should keep the issue of IT development under special control, Nazarbayev notes.

An important condition for the formation of new industries is the support of innovations and their rapid introduction into production. For this, the Government of the Republic was instructed to create an international technopark of IT startups on the basis of one of the EKSPO-2017 facilities. It should become a platform for attracting entrepreneurs and investors from around the world. This requires appropriate infrastructure and favorable conditions, including tax incentives, simplified visa and labor regimes.

We must also develop our scientific and innovative potential on the basis of universities, Nazarbayev University and Alatau PIT, the head of state believes.

The second comprehensive task, according to Nazarbayev, is the need to give impetus to the development of traditional basic industries. These are industry, agro-industrial complex, transport and logistics, construction sector and others. It is important to significantly increase labor productivity and the main factor here should be the widespread implementation of elements of the Fourth Industrial Revolution. These are automation, robotization, artificial intelligence, sharing "big data" and others.

I instruct the Government, together with business, to develop a set of measures for the technological re-equipment of basic industries until 2025, Nazarbayev said.

See also

• Digital economy of Russia

Notes