Strategic planning as an instrument of the State planning system in the Republic of Kazakhstan

The successful development of the socio-economic system depends on many factors, including the quality of the public administration. In the article the main aspects of the use of strategic planning in the system of public administration are described, taking into account the totality of different interests and providing the identification of problematic aspects of territorial development. The purpose of the research is the assessment of the strategic planning in domestic practice. The analysis of the introduction in Kazakhstan of a new management model based on strategic planning, which is one of the important tools for ensuring sustainable development, shows, on the whole, its effectiveness. At the same time, the effective implementation of strategic documents of the state planning system of the Republic of Kazakhstan depends not only on the quality of their development, but is also largely determined by the organizational and economic mechanism, including the monitoring and control system. The results of the study are the identification of certain problematic aspects that impede the integrated use of this tool in the public management system, as well as the developed and proposed practical recommendations aimed at their solution and the economic efficiency of the use and increment of resources for sustainable territorial development.

The holistic structure of the state strategic planning system as an instrument of influence on socioeconomic development consolidates the efforts of executive, representative bodies and society, and also ensures the achievement of the proper effect as a result of the adoption and implementation of strategic decisions. The need to improve the state system of strategic planning determines the relevance of this study.

In world practice, for successful development of a company, a region widely uses strategic planning, which is one of the functions of strategic management. Strategic planning relies on the development of longterm goals aimed at the adaptation, growth and prosperity of the object in a constantly changing external environment, provides for effective tools and mechanisms to achieve them, as well as improving competitiveness, in the context of which organizational and / or structural changes are possible. The core of strategic planning is the stated strategic goal, which should be real, measurable and divisible.

Strategic planning is one of the important instruments for ensuring sustainable development, taking into account a set of different interests and providing for the identification of problematic aspects of territorial development, the formation of strategic directions, objectives and development goals, the development of various methods, programs and development projects based on current interests and a long-term strategy.

Foreign experience shows that a characteristic feature of the implementation of strategic planning for the development of territories is the wide participation of representatives of various target groups in the formation of areas of long-term territorial development, the assessment of resource potential and the implementation of economic and mathematical analysis to identify the conditions and additional factors that ensure the economic efficiency of use and resource increments.

The organizational and economic mechanism for the development of territories should take into account the following important aspect: the implementation of measures and the use of resources directed at achieving the strategy and goals should be provided sufficiently with a high level of efficiency. The solution of this task depends on many conditions and factors, among which great importance is given to the qualitative parameters of the functioning of the public administration system. Effective public administration should be based on a system approach that takes into account the specific features of project management and management of results.

The process of managing the development of territories involves a series of successive stages. At the initial stage, it is required to identify the problematic issues of development, to determine a set of factors and conditions conducive to sustainability, to conduct an analysis of opportunities and threats. Further, based on the analysis of the current situation, the identified features and development trends of the region, the goal, principles, strategic directions are formed. The stability of the regional system requires the creation of a certain compensatory mechanism that will prevent, in the event that changes of a random nature originate, any deviation from the given parameters of sustainability based on the activation of socioeconomic and other levers, incentives that ensure the restoration of balance at the regional level.

The concept of strategic planning has a number of fundamental differences from long-term (extrapolative) planning, including:

  1. The main idea of planning is the segmentation of all activities and the allocation of the so-called strategic management areas. The segmentation method makes it possible to introduce a new approach to forecasting the external environment and analyzing the internal capabilities of the planning object.
  2. The difference between strategic planning systems and long-term (extrapolatory) planning consists in the interactive organization of the planning process: the formation of a strategy and specific programs for their implementation is determined in the course of multi-step interlevel coordination procedures.
  3. A distinctive feature of strategic planning is the alternative development of strategy.
  4. The methodology of strategic planning focuses on the improvement of the adaptability of the planning object to change of external conditions, the achievement of dynamic equilibrium [1].

The practice of developed countries shows that the strategic planning of the development of socioeconomic systems, industries and regions is an important tool for implementing state economic policy.

According to R. Johnston, strategic management significantly expands the horizons of foresight and ensures the creation of opportunities for timely response to changes in the economy and in the external environment [2].

In the context of globalization and dynamic transformation of economic processes for Kazakhstan, it is important to introduce a new model of government based on strategic planning, contributing to the achievement of the strategic directions of the country's development. At the same time, this approach makes it possible to increase the efficiency of the functioning of executive bodies, since it provides the possibility of «measuring the results» of a state body based on monitoring and control of direct and final results.

The Strategy «Kazakhstan-2050» outlines the need to further improvement of the system of state planning and forecasting [3]. The formation of a new paradigm of state strategic management and planning is conditioned by the strategic goals of Kazakhstan joining the number of 30 developed countries of the world by 2050 and the development of an innovative economy.

Achieving the strategic goal directly depends on the degree of effectiveness of the functioning of the public administration system, the implementation of strategic planning, and the formation and implementation of fiscal policy.

The organization of the system of strategic management at the intrarepublican interregional (transregional) and macroregional levels should be accompanied by the increasing role of the institutions of strategic planning of the state, regions, public associations, business and the expert community [4].

The fundamental point of the strategic planning process is that the presence of clear targets with quantitative and qualitative indicators are an important factor for effective performance. This increases the level of responsibility of senior and executive employees for achieving the planned indicators, taking timely action in cases of deviations from the specified parameters, conducting an intermediate, final monitoring and control.

The system of public administration in Kazakhstan, which includes the tools of strategic planning, is characterized by a constant process of its development and modernization. This is due to the new strategic goals and objectives, as well as the improvement of the methodological, institutional and legal framework governing the processes of long-term planning and achievement of targets.

With the approval in 2009 of the state planning system in the Republic of Kazakhstan (hereinafter referred to as CST), the processes of forecasting, programming and strategic planning were streamlined. An integrated CST allows building a hierarchical structure of documents, increasing the level of responsibility of government bodies for the development of relevant sectors of the economy and introducing effective approaches to the development of programs and plans. The documents of the CST are divided into three levels (Fig.).

In this regard, an important element of the mechanism for implementing the strategy is documents of the second and third levels of the CST, which are linked by resources.

On the scale of socio-economic development of the country, documents of the second level of the CST determine the strategic direction for the formation of the sectoral structure of the national economy, and also serve as a mechanism and tool for its development. In general, the processes of reforming and developing the economy of Kazakhstan directly depend on how effectively they will be implemented in the context of the administrative and territorial structure of the country, i.e. in the regions.

The main program document at the regional level, which determines the strategic directions of development of the relevant territory for the medium term, is the Territorial Development Program, which refers to the documents of the third level of the CST. The development of this document is carried out to determine the strategic vision of the development of territories, taking into account the solution not only of local problems, but also the implementation of targets of higher-level documents of CST based on their cascading or decomposition.

An important procedure for strategic planning is strategic forecasting, which is based on the analysis of the integration of economic, social and other processes, and is also subject to assessment and measurement of results. The development of the forecast of socio-economic development at the country level and by region is carried out for a five-year period on a sliding basis.

The main element of the new model of state planning being implemented in Kazakhstan is the full- fledged implementation of performance-based budgeting (hereinafter referred to as PB). This tool provides a clear relationship between the planned result and the amount of budget funds allocated to achieve direct and final results. A distinctive feature of BOR from traditional budgeting is that, with BOR, it primarily assesses the level of achievement of the planned goals and objectives, along with the execution of budget programs. In other words, the essence of PBB is the transition from the «budget management» approach to the «results management» approach based on increasing the responsibility of all participants in the budget process and expanding the independence of budget program administrators.

In order to strengthen the principle of PB, as well as the relationship between the budget expenditures, strategic goals and target indicators of the strategic plan, in 2016, a transition to the new and improved formats of the strategic plan and budget program was made. These measures contribute to the reorientation of the activities of state bodies by moving away from the formal execution of the assigned tasks to focus actions aimed at achieving the direct and final results of strategic plans.

The introduction of a new model of public administration based on strategic planning allows increasing the efficiency and effectiveness of management, the use of budget funds and state assets. The effectiveness and feasibility of applying strategic planning in the system of domestic government clearly confirms the positive macroeconomic indicators of the country development, which were achieved in the context of declining world prices for energy and metals — the main export positions of Kazakhstan.

At the same time, according to the reported data of the Accounts Committee of the Republic of Kazakhstan, there are some problematic issues on the development at an appropriate level and ensuring the effectiveness of the implementation of certain program and strategic documents caused by poor-quality planning of budget funds. The planned activities of the programs are not compatible with the amount of budget funds required, the goals and objectives of the program documents, individual indicators do not have quantitative values for their achievement [6].

In addition, the practice points to the problematic issues of the level of development and the low quality of individual investment projects. One example of this is the launch of a glass plant, a plant for the production of bioethanol [7]. In our opinion, when planning or approving investment projects implemented within the framework of program documents aimed at supporting and developing the business sector, insufficient attention is paid to integrated market analysis, including existing production of planned products in the interregional segment, the actual scale of demand and feasibility of the proposed design capacity for the production of the desired product. In this regard, it is important to improve the quality of the selection of projects when implementing them within the framework of program documents based on a detailed analysis of future prospects and taking into account the criteria of marketing support, adaptability and innovation.

The presence of such deficiencies can contribute to both objective and subjective reasons. In our opinion, the successful functioning of the CST primarily depends on the human resources. To improve the qualifications of civil servants in the field of strategic planning, it is important to conduct educational programs that contribute to the development of basic competencies and skills in developing indicators and other resulting indicators. The high level of turnover of personnel, including those employed in this direction leads to a lack of continuity, which has a negative impact on the process aspects of strategic planning. It is obvious that the achievement of significant economic results requires, first of all, a proper assessment of the personnel component in the development and implementation of the strategy. In addition, an important advantage of strategic planning is the possibility of open discussion of events involving a wide range of participants. Local executive bodies play an important role both during the pre-planned work and in the process of implementing the strategic planning process. In the course of the formation of regional policy, the role of a mechanism that ensures the optimal delineation of the sphere of functional authority between central and regional levels of government is increasing. The excessive centralization of powers and the concentration of power functions at the managerial level of the highest level make it impossible to rely on the real situation in the region, take into account regional peculiarities and carry out qualitative analytical calculations.

Within the framework of decentralization and delimitation of powers between the structures of central and local government, as well as local self-government, the effectiveness of the power vertical is ensured and the independence of regional activities in management decision-making aimed at implementing priority aspects of territorial development is expanding. The principle of active involvement of the local community should be implemented through public consultations, study of opinions, assessments and proposals of citizens on various initiatives and projects of legal, organizational and managerial nature.

According to scientists, the likelihood of support for key aspects of planning by stakeholders increases, provided that they are involved in the strategic planning cycle in its early stages. Participation of stakeholders in the assessment of the state of the environment is also necessary [8]. In this regard, taking into account the views of a wide and different group of stakeholders, i.e. internal and external participants, as well as other stakeholders, is an important condition for ensuring effective strategic planning.

One of the main problems of poor planning and inefficient use of budgetary funds is the lack of an appropriate and effective mechanism of personal responsibility for the ineffective and unreasonable decisions made in the current system of state administration.

In addition, the low level of correlation between strategic, economic, and budget planning, which takes place in the practical activities of individual state bodies, is also a limiting factor in the process of effective state-oriented management.

As already noted above at the regional level, one of the key instruments ensuring the implementation of documents, strategic goals and objectives of CST documents is the territorial development program.

In the context of globalization of world processes, the role of the regional policy of the state is increasing in ensuring the strategic orientation of the regions, aimed at making the transition to a new qualitative level of development due to the modernization of the economic structure and the rational use of territorial resources. This requires a search for new approaches to the development of an optimal and effective mechanism to facilitate the achievement of positive results in this direction.

The efficiency and effectiveness of regional policy is largely determined by the level of development of its theoretical and methodological foundations. The key and strategic goal of regional management is to ensure the dynamic development of regions and increase their competitiveness. For any country, the crucial issue is the competitiveness, which characterizes the ability to improve the welfare of citizens.

The regional policy, being an integral part of the Development Strategy of Kazakhstan until 2050, is of great importance for the country, since the results of the country's social and economic growth as a whole depend on how efficiently the processes of reforming and developing the economy are carried out at the regional level. Priority directions of regional policy and the mechanism of their implementation are envisaged in the program of development of territories. In this regard, the qualitative development of programs for the development of territories and their effective implementation has a direct impact on the achievement of targets set out in documents of the second level of the CST, as well as state and government programs.

Essential factors for the formation and implementation of a regional policy are, first of all, the assessment of the real socio-economic situation, specific and general aspects of the regional economic complex, analysis of the cyclical development of the socio-economic system and the problematic areas of the region development, which determine its ideological structure. In general, the ideological content of all levels of regional policy is based on the conceptual foundations of public policy, taking into account the presence of local peculiarities and specific interests in deciding the priorities of a particular region.

The term policy means purposeful activity, as a result of which the fundamental interests of social groups are expressed, including the methods and means by which these interests are determined, argued and achieved. Any policy, along with the manifestation of the common interests of social, political and other groups, integrates various interests. In this regard, each policy is reliable and progressive to the extent that a balance of different goals is ensured [9]. Due to the fact that the strategic goal of a regional policy includes economic, social and environmental targets, it is clear that the success of real achievement of a strategic goal requires adequate implementation of these aspects of regional policy, which should be taken into account in strategic planning.

The strategic goal of a regional policy can be achieved with the successful implementation of the strategic objectives of building up and strengthening the resource potential of the territories in order to improve the economic well-being, level and quality of life of the population of a specific territorial unit. In order to ensure the achievement of the strategic goal of a regional policy, objectives are defined for each of its target components.

The economic aspect of the strategic goal of the regional policy involves solving the problems of efficient use of territorial resources, creating conditions for increasing the production of the production system on the principles of introducing innovative technologies, profitability, maximum return on investments, diversifying income sources of the rural population by expanding the structure of business processes.

The task of a regional economic policy should be aimed at the effective and balanced development of territories and take into account the rational use of the resource potential of each region and ensure an adequate level of income for residents.

The social aspect of the strategic goal of the regional policy takes into account issues of providing citizens with a social standard, based on stimulating economic growth, ensuring productive employment and decent wages in order to attract qualified personnel and improve the demographic situation, including, by improving on a legislative basis, economic incentives aimed at raising fertility, quality of medical, educational and cultural services.

To ensure the effective implementation of a social goal, it is necessary to conduct an analysis of the development of territories in transforming socio-economic conditions, which requires the identification of important social factors contributing to sustainable development. The achievement of a social goal is possible when implementing tasks that are aimed at the formation and strengthening of high-quality social potential of the territories.

At the present stage for the implementation of effective strategic planning, aimed at ensuring a balanced, sustainable development of the territories, the issues of finding internal reserves that contribute to the further development of the economy are relevant. In the economic literature and scientific works,the solution of tasks for the effective use of existing and the search for new reserves of economic growth is due to the development and implementation of new approaches to the content, forms and methods of assessing the resource potential of territories. An effective regional policy implies an analysis of the resource potential of the socio-economic development of territories, which must be carried out according to the basic components: natural resource potential, human, material and technical, and financial potential. Moreover, each component should include several priority indicators.

In our opinion, in the process of strategic planning, it is important to assess the effectiveness of using the resource potential, further changing its qualitative and quantitative state, to give a proper assessment of the quality of work of local executive bodies, to substantiate the positive prospects of the region, taking into account potential development directions. This is facilitated by an approach in which the assessment of the level of socio-economic development of the territories is advisable to take as a final indicator, and the assessment of the resource potential of the territories is advisable to take as an initial indicator and, when assessing the effectiveness of using the resource potential of territorial units, these two indicators are compared with achieved ones as a result of socio-economic development and existing potential, separating the current indicators from the base period. And the greater the amount of value added, that is formed in the regional economy, the higher this estimate will be.

The empirical analysis of the development of regional development programs shows that the target indicators do not always provide a breakdown by district and city, which should be carried out differentially, taking into account the analysis of socio-economic potential, the current situation and existing problems of cities and districts, as well as the need for realism and feasibility (relative to target indicators that provide for the modernization of technical, infrastructure facilities), upgradable targets.

In this regard, in order to fully and qualitatively execute the programs for the development of territories, in our opinion, it is important to strengthen the coordination of this process on the part of the state body that is authorized for strategic planning.

In order to do this, firstly, it is necessary to ensure the planning of real indicators, which should not be initially, both unreasonably overstated and unreasonably underestimated. In addition, the methodological basis of strategic planning should include a system of measures that orient government agencies initially to high-quality planning and a minimum change in the approved planned indicators of territorial development programs. Adjustment towards lowering target indicators should be made only in those exceptional cases when the main reason for not ensuring the achievement of the target indicator is the impact of external factors, the current general economic situation, i.e. in conditions independent of the actions of local executive bodies.

Secondly, it should be in accordance with the rules for the development, implementation, monitoring, evaluation and control of the Strategic Plan of the Republic of Kazakhstan, state and government programs, strategic plans of state bodies, programs for the development of territories, as well as the development and implementation and monitoring of the Forecast scheme of spatial development countries. The action plan for the implementation of regional development programs is a set of specific actions aimed at achieving the objectives of the program. m of development of territories with the definition of terms, performers, forms of completion, the necessary costs for its implementation [10].

Based on the Methodology for the development of the Strategic Plan of the Republic of Kazakhstan, the Forecasting Scheme of the Spatial Development of the Country of State and Government Programs, Strategic Plans of State Authorities and Territorial Development Programs goals and obtains planned results [11].

The practice of implementing the Territorial Development Programs indicates the presence of certain target indicators. Strengthening of the requirements for developing Action Plans plays an important role in ensuring that goals are achieved. One of the limiting factors in this direction is the quality of the development of the Action Plan, which must necessarily contain detailed and concrete actions aimed at achieving the goals, an in-depth analysis of the large-scale coverage of activities that provide a full disclosure of the mechanism for achieving the target indicators reflected in the Action Plan.

In our opinion, to ensure the motivation of state bodies to achieve the final result of the territorial development program, methodological approaches and the basic principles of such a tool as project management should be used in the state administration system. This means the need to:

  • - carry out the decomposition of all target indicators in a regional context, which can be very diverse, regarding the complexity, scope, scope and resource requirements, as well as reflecting in the strategic plans of the central executive bodies of integrated indicators for the whole country, which are included in the Territorial Development Program areas;
  • improvement of the methodological base in terms of assessing the monitoring and implementation of territorial development programs, achieving a rational balance between the costs incurred and the target effects obtained;
  • the creation of a project team or team, the composition of which is formed from highly specialized, professionally trained specialists;
  • the imposition of personal, personal responsibility for officials for failing to achieve a specific direction of state and government programs, a strategic plan, and a program for the development of territories.

Thus, the above indicates the need to strengthen the elements that affect the effective development and functioning of the system of strategic planning — personnel and information and analytical support.

In order to focus budget planning on the achievement of target indicators and indicators established in documents of the second and third levels of CST, aimed at creating a knowledge-intensive economic basis, in our opinion, it is necessary to improve and strengthen the monitoring and evaluation system, which contributes to a closer linking of planned budget funds with achievement of strategic goals.

At the same time, it is important to correctly define indicators on the basis of which an adequate assessment of results is possible. These indicators should be used in planning, performing and analytical activities, i.e. their accounting should be carried out at all stages of the budget process.

Thus, an important role in ensuring the effectiveness of strategic, budgetary and economic planning is played by a factor aimed at increasing the focus on results and the responsibility of government agencies at all levels of government, including the approaches suggested above.



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Year: 2019
City: Karaganda
Category: Economy