Executive Summary
- Kazakhstan plans to accelerate its digital transformation by establishing a Ministry for Artificial Intelligence and Digital Development with the goal of becoming a fully digital country within three years.
- President Tokayev proposed a major institutional reform to transition from a bicameral to a unicameral parliament by abolishing the Senate, with a national referendum on this change slated for 2027.
- The nation aims for economic diversification by expanding nuclear power infrastructure and leveraging rare earth elements, while also enhancing its role as a key transit link between Europe and Asia through projects like the Middle Corridor, supported by a balanced foreign policy.
The Story So Far
- Kazakhstan’s President Kassym-Jomart Tokayev is initiating a comprehensive modernization agenda aimed at transforming the nation into a digital and innovation leader, strengthening its institutional governance, and ensuring stability amidst a complex global environment. This vision includes establishing a Ministry for Artificial Intelligence and Digital Development and proposing a significant shift to a unicameral parliament via a 2027 national referendum, all while pursuing a balanced, multi-vector foreign policy to leverage the country’s strategic location as a key transit link.
Why This Matters
- Kazakhstan’s strategic vision, driven by the creation of an AI ministry and an innovation hub, signals a significant push towards digital leadership and economic diversification, potentially attracting substantial international investment and reshaping its economic landscape. Concurrently, the proposed shift to a unicameral parliament via a national referendum represents a major institutional reform, while its focus on becoming a key transit hub and expanding its energy and rare earth element sectors aims to elevate its geopolitical and economic influence, offering new opportunities for global partnerships.
Who Thinks What?
- President Kassym-Jomart Tokayev believes Kazakhstan’s future requires comprehensive reforms including technological advancement, institutional overhaul such as a unicameral parliament, and social stability, all supported by a balanced foreign policy and economic diversification.
- Experts interpret President Tokayev’s address as a dual reform agenda focusing on technological advancement through AI and smart cities, alongside institutional deepening via parliamentary reform and balanced diplomacy, with the potential for Kazakhstan to exert greater rule-making influence internationally.
- International partners, particularly in Europe and Asia, view Tokayev’s vision as a clear roadmap for shared growth and stability, suggesting that aligning their expertise, capital, and policy support could transform Kazakhstan’s domestic initiatives into a regional platform for innovation, trade, and cooperative security.
Kazakhstan’s President Kassym-Jomart Tokayev recently outlined a comprehensive vision for the nation’s future, emphasizing technological advancement, institutional reform, and social stability in his annual state-of-the-nation address. Delivered in September, the address detailed strategic priorities for the upcoming year, including the establishment of a Ministry for Artificial Intelligence and Digital Development and a proposed shift to a unicameral parliament.
Strategic Pillars for National Development
Addressing a joint session of parliament, President Tokayev identified digital transformation, thoughtful governance reform, balanced diplomacy, and a realistic response to global instability as the fundamental pillars guiding Kazakhstan’s trajectory. These areas are central to the country’s ongoing systemic modernization.
A key announcement was the creation of a Ministry for Artificial Intelligence and Digital Development. This initiative aims to accelerate Kazakhstan’s digital transformation, with the ambitious goal of becoming a fully digital country within three years.
To support this, a national strategy will be developed, integrating various digital initiatives and projects. This effort seeks to position Kazakhstan as a regional leader in digital innovation.
Further bolstering the technological push, Alatau City, located north of Almaty, is designated to become a new innovation and business hub. Land has already been allocated for the project, and initial planning stages are complete, attracting interest from international companies.
Institutional Reforms and Governance
To strengthen institutional governance, President Tokayev proposed a significant overhaul of Kazakhstan’s legislative structure, transitioning from a two-chamber parliament to a unicameral legislature. This proposal involves abolishing the Senate, with the final decision to be made via a national referendum.
The proposed timeline for this reform is indicative of 2027, allowing for phased and inclusive public discussion rather than immediate constitutional changes or snap elections. The lower chamber, the Mazhilis, would continue its legislative work until the end of its current mandate, while the Senate would remain active until the referendum results are finalized.
Foreign Policy and Global Engagement
Foreign policy remains a critical component of Kazakhstan’s progress, especially amid a new global era characterized by “growing contradictions, intensifying wars, nationalism, and the erosion of international law.” President Tokayev emphasized maintaining a balanced and constructive foreign policy to protect national interests and foster long-term stability.
Kazakhstan’s engagement with the European Union is increasing, and Astana maintains friendly relations and cooperation with China and the United States. President Tokayev also announced an upcoming visit to Russia, underscoring the country’s multi-vector diplomatic approach.
Leveraging its strategic location between Europe and Asia, Kazakhstan aims to expand its role as a key transit link. This includes prioritizing internationally attractive projects like the Trans-Caspian International Transport Route, also known as the Middle Corridor, to attract investment and create jobs.
Beyond road transport, Kazakhstan aspires to leadership in aviation, with new terminals in multiple cities and ongoing airport construction projects set to boost the air-cargo sector.
Economic Diversification and Energy Security
To secure its energy future and sustain economic growth, Kazakhstan plans to expand its nuclear power infrastructure. With the first nuclear power plant officially under construction, President Tokayev announced plans for two additional stations.
The country’s rich reserves of rare earth elements and other critical materials provide a strategic advantage for integration into global production and market chains, accelerating economic diversification. President Tokayev also called for a new industrial push to enhance the competitiveness of Kazakh products domestically and internationally, supported by comprehensive policies for industry and entrepreneurs.
Social Stability and Resource Management
President Tokayev stressed a policy of zero tolerance for lawlessness, public disturbance, and violence, deeming it essential for societal stability and Kazakhstan’s global reputation. He also highlighted the critical need for skilled technical workers, such as engineers, builders, and farmers, advocating for increased prestige and decent wages for these professions.
In response to environmental and demographic pressures, the government has been instructed to create a unified digital platform for managing the country’s water resources. Another platform is planned to monitor the strain that rapid population growth is placing on existing infrastructure.
Looking Ahead: A Roadmap for Growth
Experts interpret President Tokayev’s address as a dual reform agenda, focusing on technological advancement through AI and smart cities, alongside institutional deepening via parliamentary reform and balanced diplomacy. They note the potential for Kazakhstan to exert greater rule-making influence internationally.
For international partners, particularly in Europe and Asia, Tokayev’s vision offers a clear roadmap for shared growth and stability. Aligning expertise, capital, and policy support with Astana’s long-term strategy could transform Kazakhstan’s domestic initiatives into a regional platform for innovation, trade, and cooperative security, ensuring partners a significant stake in Central Asia’s future.
