Ahead of Canada, Belgium, Italy: Successes and Failures of Digitalization in Kazakhstan

Despite the fact that most of the state programs in Kazakhstan have failed, the introduction of electronic service platforms turned out to be quite successful. Yet there are also quite a few weak points such as slow or disappearing Internet, Kazakkhstanis’ personal data being leaked, and violation of people’s digital rights.

President Qasym-Jomart Toqayev recently held the 35th plenary meeting of the Council of Foreign Investors. Its key task is to improve the investment climate in the republic.

The topic of this meeting was the digital transformation of the economy.

"We believe that digitalization, which is a colossal technological breakthrough, just provides one of these opportunities. The growth of digitalization is already determining today's agenda, having a cardinal impact on the development of the economy. The widespread introduction of new concepts and technologies, such as artificial intelligence, blockchain, the Internet of Things (IoT) and Big Data, leads to a change in the rules of the game in almost all industries – from agriculture to finance. Digitalization has already become a determining factor in the competitiveness of entire countries and regions… Recently, 62 countries unanimously supported the creation of the UN Digital Solutions Center for Central Asia’s Sustainable Development in Kazakhstan. We see this as a symbol of trust and an important milestone for Kazakhstan's entry into the world arena,"

Qasym–Jomart Toqayev said.

At the same time, back in July last year, Toqayev criticized the Minister of Digital Development, Innovation and Aerospace Industry Bagdat Musin.

"In general, digitalization is slow, in my opinion, unsatisfactory. I instructed to improve the work of the national holding "Zerde", which was criticized by the Accounts Committee. The Prime Minister, as the curator of digitalization, should pay special attention to this issue. I'm making a remark to the Minister. I believe that you are working unsatisfactorily, you are letting the Prime Minister down,"

the president said at an expanded government meeting on July 14, 2022.

In this regard, it is interesting to find out what experts who are deeply versed in this issue think about the state and prospects of the domestic IT industry along with its successes and failures.

According to an employee from the company Digital Rights Center Qazaqstan (DRCQ), Vladimir Kolerev, the following can be attributed to the success of digitalization in the Republic of Kazakhstan:

• 1. Electronic government. Kazakhstan is actively implementing electronic government services, such as online filing of tax reports, obtaining permits and licenses, payment of state fees and other procedures. In 2022, Kazakhstan ranked 28th in the UN ranking on the level of e-government development among 193 countries.
• 2. Fintech. The financial and technical sector is developing rapidly in Kazakhstan, especially in the field of digital payments and online banking. 86% of Kazakhstan’s population actively uses online banking. Over 14 million people receive services through remote banking systems. The daily growth of digital users of banks is more than 19 thousand.
• 3. Electronic commerce. In recent years, e-commerce in Kazakhstan has been rapidly gaining momentum. Online stores offer a wide range of goods and services, and delivery by courier services greatly simplifies online purchases. According to the Bureau of National Statistics, in 2021, the volume of e-commerce in the country reached a record 1.04 trillion tenge. This is 8.4% more compared to the previous year. At the same time, online sales of services increased by 67.3% over the year.

However, there are also moments that can be defined as failures. Among them, Vladimir Necklaces attributed the following:

• 1. Infrastructure. The country still has problems with the availability of high-speed Internet and insufficient coverage in remote regions. Of the 363 settlements in the east of Kazakhstan, 105 do not have access to mobile Internet.
• 2. Cybersecurity. The growth of digital technologies is also accompanied by an increase in cyber threats and data leaks. Many companies do not realize the importance of protecting personal data. In 2018-2020, more than 11 million records of personal data and payment information were leaked in the Republic of Kazakhstan.
• 3. Gaps in legal regulation. The law "On Personal Data and their Protection" is far from perfect. It lacks provisions for minors’ personal data protection and a special regime for processing biometrics and other sensitive categories of data. Kazakhstan is also not a member of the Convention on the Protection of Individuals with Automated Processing of Personal Data, which complicates the cross-border transfer of personal data to Kazakhstan.

The manager of the human rights projects "Landscape of Digital Rights and Freedoms" and Internet Freedom, DRCQ lawyer Yelzhan Kabyshev also shared his thoughts.

"I would like to note that Kazakhstan, in my opinion, is a driver in the Central Asian region in the field of digital technology implementation, and this cannot but please, and it is also clear that in recent years the country has been updating legislation on the regulation of digital technologies and, accordingly, the legislation is trying to ensure the rights of citizens in the digital environment. Kazakhstan ranked 28th in the world for the development of e-government. According to the UN Global E-Government Development Index, our country has overtaken Ireland, Canada, Italy and Belgium.

However, there are other negative aspects. Among them is the "legalization of restrictions" and, apparently, the violation of digital human rights. So it is worth remembering that the state officially implemented a white list of sites only six months after the introduction of the first total Internet shutdown in the country,"

Yelzhan Kabyshev said.

This means that on January 26, 2023, a meeting of the board of the Ministry of Digital Development, Innovation and Aerospace Industry (ICRIAP) was held, at which the Minister of Digital Development Bagdat Musin presented the so-called "white list": a list of Internet resources that will not be blocked by the government during a state of emergency. The official name is the Register of Static Addresses of Data Transmission Networks (RSASPS).

Original Author: Danil Utyupin

DISCLAIMER: This is a translated piece, the text has been modified the content is the same. Pease refer to the original piece in Russian for accuracy.