digital kazakhstan essay

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Digital Kazakhstan: Addressing the Global Cyberchallenge

Digital kazakhstan offers a fascinating case study on how leading countries around the world are adapting to digital transformation, as well as the cyberchallenges that come with 21st-century innovation..

• “Digitization of the economy branches” — reorganization of the RK economy traditional branches using groundbreaking technologies and possibilities, which increase labor productivity and lead to the capitalization growth.
• “Transition to the digital state” — state infrastructure transformation to provide services for population and business, anticipating their demands.
• “Implementation of the digital Silk Way” — development of a high speed and security infrastructure of the transfer, storage and processing of data.
• “Evolution of the human capital assets” — transformational changes, comprising creative society formation and transition to the new realities — knowledge-based economy.
• “Innovative ecosystem formation” — creation of the conditions for technological entrepreneurship development with stable relations between business, academic domain and state, as well as introduction of innovations into industry.

• IDC data shows that governments globally are giving cybersecurity different levels of priority. The difference between countries is not linked to their relative wealth and "development status."
• National cybersecurity needs to be viewed in two aspects: the protection of state assets systems so that the apparatus can function and the overall protection of the economy and the population. The first can be planned, centralized and controlled, the second the state should educate, guide and less directly influence.
• Kazakhstan has invested in the former and government online resources are pretty well protected. Where Kazakhstan lags behind is the latter.
• Kazakhstan (according to Kaspersky) is one of the countries where users face the greatest risk of online infection — (No. 4 in the WORLD) (The post-Soviet area is one of the world’s more aggressive online environments).
• Malware infection is one of the most dangerous forms of cyber-risk — Wannacry for example. IDC has found that malware encounters closely correlate to the national rate of unlicensed software.
• The list of the countries where users face the greatest risk of online infection maps neatly to the list of countries with the highest rate of piracy.
• Highlight that cybersecurity is very important for the whole country and its importance should not be underestimated in their technology plans.
• Emphasize that the first step to address the cybersecurity issue is to raise awareness among all government employees. They all need to be trained.
• Make clear that everyone in the government needs to avoid the “ostrich syndrome” — problems, attacks, vulnerabilities should be discussed openly and not hidden away hoping no one would notice.
• The need for cyberincident response plans and testing of plans with tabletop and full-scale exercises. (Note: I was pleased to see the “ National Anti-Crisis Response Plan for Computer Incidents” was approved.)
• Study strategic examples like the Michigan Cyber Initiative , which includes:
• Michigan Cyber Civilian Corps — like a volunteer fire department in case of cyberemergencies
• Michigan Cyber Range — team-based training in attacking and defending networks and cities . For more, visit the site .
• Michigan Cyber Challenge — individual and team competitions for students and experienced staff — never stop learning — always changing. For more, see this site .

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10 March 2018, 05:42

Digital Kazakhstan: current state of affairs and prospects for future

The idea of comprehensive digital transformation is a global world trend, and digital technologies play an increasingly important role in the economic development in the majority of countries. Chairman of the Board of National Information and Communication Holding Zerde, Ruslan Yensebayev, explained us how to develop digitalization, what is the world experience and what opportunities for a breakthrough there are in Kazakhstan. Read all of this in the review material of PrimeMinister.kz.

World’s “digital steps"

Today digitalization is a strategic development priority in many countries. According to the forecasts of the world's leading experts, by 2020, a quarter of the world economy will be digital, and the introduction of technologies for the digitalization of the economy, allowing the state, business and society to effectively interact, is becoming an increasingly large-scale and dynamic process.

More than 15 countries of the world are implementing national digitalization programs: Denmark, Norway, Great Britain, Canada, Germany, Saudi Arabia, India, Russia, China, South Korea, Malaysia, Singapore, Australia, New Zealand and Kazakhstan.

China in its Internet Plus program integrates digital industries with traditional ones. Singapore is forming the Smart Economy, Canada is creating an ICT hub in Toronto, South Korea, in the Creative Economy program, focuses on the development of human capital, entrepreneurship and the dissemination of ICT achievements, and Denmark focuses on the digitalization of the public sector.

"As we see different countries set themselves different priorities in the field of digital transformation. In our case, in the Digital Kazakhstan program, we expect the progressive development of the digital ecosystem to achieve sustainable economic growth," said Ruslan Yensebayev.

Kazakhstan in the evolution of digital development

Kazakhstan is not starting from scratch, in the 1990s a state program on forced industrial and innovative development was launched, Bolashak international education program was initiated, and in 2005 an e-government was formed. Also, a number of elements of the innovative ecosystem have been created in Kazakhstan, the special economic zone of Alatau PIT, the Nazarbayev University is functioning, and the international technopark Astana Hub is being launched.

In the present Address to the people of Kazakhstan, the Head of State stressed that the development of the digital industry will provide an impetus to all other sectors. In this regard, the Head of State set the task of developing new industries, which are created using digital technologies.

The state program is implemented in five key areas:

• Digitalization of economic sectors — transformation of traditional sectors of Kazakhstan's economy through the introduction of digital technologies;
• Transition to the digital state — transformation of approaches of rendering services and interaction of the state with citizens and business, anticipating requirements;
• Implementation of the digital Silk Road is the development of a high-speed and secure infrastructure for the transmission, storage and processing of data, both within the country and for the realization of transit potential;
• Development of human capital is a transformation that encompasses the creation of a so-called creative society;
• Creation of an innovative ecosystem is the creation of conditions for the development of technological entrepreneurship and innovations with sustainable links between business, the scientific sphere and the state.

One in digitalization is not a team

On February 2 in Almaty, at the initiative of N. Nazarbayev, the international forum Digital Agenda in the Era of Globalization was held with the participation of the heads of the EAEU member states and international experts in the field of digital technologies. The forum clearly confirmed the need to implement digital transformations in national economies within the common market and accelerated development of competitiveness on a global scale.

According to Ruslan Yensebayev, the EAEU countries in spite of some differences in basic initiatives and approaches are actually at the starting position and understand the practical expediency in synchronizing digital processes.

"I am confident that the EAEU has the potential, resources and competencies to compete with other states and integration associations for its place in the digital world," Ruslan Yensebayev said.

Personnel "by default" — digital skills

Digitalization is significantly ahead of the existing system of production requirements to the composition of occupations engaged in the labor market. The digital economy requires the population to have digital skills that allow the use of its fruits.

Currently, the level of computer (digital) literacy of the population is 76.2% — this is a good indicator. But in order to achieve the goals, it is necessary to improve it not only in quantitative, but also in qualitative terms.

To this end, according to Ruslan Yensebayev, in preparing specialists for the digital economy, it is necessary to focus primarily on skills in analyzing information and developing creativity of thinking, rather than on memorizing facts and formulas.

To develop technical and professional, higher and postgraduate education in order to bring industry and education closer together, measures are envisaged to create ICT departments of universities at enterprises, as well as competence centers on the basis of higher educational institutions of the country.

1. Secondary education

To date, the Ministry of Education and Science has already introduced a number of initiatives. For example, in 3-4 grades, the subject Information and Communication Technologies was introduced, which forms a common basic knowledge of working with modern information technologies for their effective use in learning and everyday life.

2. Technical and professional, higher, postgraduate education

According to the MES RK, on the basis of three specialties, the subject Information and Communication Technologies was introduced, which forms the basic knowledge of the use of ICT in practice within the framework of the chosen profession.

Also, activities are planned to update educational programs based on professional standards and labor market requirements on new areas in demand, such as data analytics, robotics, nanotechnology, as well as training highly skilled developers in such technologies as artificial intelligence, the Internet of things, blockchain, BIM-technologies, etc.

To date, training of ICT specialists for economic sectors in Kazakhstan is conducted in 89 higher educational institutions in 11 specialties and in 318 organizations of technical and vocational education in 5 specialties.

3. Startup ecosystem

An important and necessary condition, according to Ruslan Yensebayev, is the availability of technology entrepreneurs as a class, the development of a system of "orders" for technological projects where large local and international companies act as customers, and students are executors.

"Today, throughout the world, technological clusters for the development of start-ups and innovations are being formed in places of active interaction of business owners, engineer-inventors and investors. Technological diversification, accompanying the successful implementation of such projects at the state level, ensures high rates of economic development of countries and the development of human capital," said Ruslan Ensebayev.

For this, the creation of Astana Hub, which has already begun its work, was initiated. Since the beginning of the year, startups are being selected, which will be accelerated on its basis. This year it is planned to bring 33 start-ups to the level of ready-made companies. Until 2022 there were about 300 companies. Also, three R & D-laboratories (Research and Development) will be opened with partners of Zerde Holding, large international IT companies. They will allow a full cycle of both research and preparatory work to launch new products or technologies into industrial production.

Digital fruits

According to preliminary estimates, the direct effect of the digitization of the economy of Kazakhstan by 2025 will create an additional value of 1.7 — 2.2 trillion tenge, thus ensuring a return on investment of 4.8 — 6.4 times by 2025 to total investment, taking into account private investment.

The most significant effects in terms of GDP will fall on 12 key projects:

• Creation of an international technopark of IT start-ups (Astana Hub);
• Implementation of Industry 4.0 technologies, including the implementation of Intellectual Field project, the creation of model factories;
• Introduction of the Paper Free principle;
• Creation of an intelligent transport system;
• Development of electronic commerce;
• Creation of a digital platform for SMEs (single window);
• Development of an information system for marking goods to reduce the shadow turnover;
• Implementation of a set of measures to develop non-cash payments;
• Development of open platforms (Open API), Big Data and artificial intelligence;
• Development of telecommunications infrastructure, including broadband Internet access;
• Improvement of customs and tax administration and transition to electronic declaration;
• Implementation of Smart City components.

In addition to achieving economic benefits and increasing competitiveness, digitalization will have a positive impact on social spheres. The effect of the qualitative development of education, health and the investment environment will be noticeable in the long term and will help to narrow the socio-economic gap with the developed countries.

"Undoubtedly, Digital Kazakhstan, as the Head of State noted, is a very important program for the country. The success of its implementation depends primarily on the degree of involvement in the processes of digitalization and government bodies, and the market, and the population. I am confident that through the systematic development of the ICT sector, the creation of an enabling environment for attracting digital innovative technologies, supporting the talented youth, we will achieve the results indicated in the state program," said Ruslan Yensebayev.

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