Industrialization and Economical Growth: Step-By-Step Reformation of the Kazakhstan Economy

The need to update the modernization plan for Kazakhstan is due to the characteristics of the internal and external (global) economic environment.

The domestic economic environment in Kazakhstan at present is being formed in the framework of implementation of Rapid Industrial and Innovative Development (FIID) and the Strategy – 2050 on the country's entry into the top thirty of the developed countries of the world.

The defining characteristic of the external

global economic situation at present is uncertainty:

– the uncertain prospects of global economic growth;

– the uncertainty over future pricing in the oil market and the basic factors of lower oil prices.

The pressure of external factors is compounded by the unique characteristics of Kazakhstan's participation in globalization associated with the export of mineral resources to world markets.

The impact of internal and external factors on the economy of Kazakhstan necessitates, on the one hand, changes in the structure of the national economy and exports, and on the other hand continuing trend of economic develop-

ment. Therefore, the key directions for reforming the economy of Kazakhstan in the Plan of five institutional reforms "100 Concrete Steps" are defined by the President in "Industrializa

tion and Economic Growth".

The priority objectives of the Plan of economic reforms are – structural transformation of the economy and the preservation of its dynamic development in conditions of global crisis and transition of the RK into the category of developed countries.

Industrialization becomes the main condition of structural economic reforms in Kazakhstan including the field of export and economic

growth – a major factor in the preservation of the dynamics of development and realization of the FIID as well as the integration of Kazakhstan into the global economy.

Institutional reform in the economic field plays a decisive role. Fifty out of the hundred concrete steps of institutional reform are related to economic activity reflecting not only the priority of economic goals but also the presence of systemic problems in the economy requiring a comprehensive approach to their solution.

In our opinion, a step-by-step transition into the category of industrial-innovative economies in accordance with the Plan "100 Concrete Steps" means a continuation and deepening of economic reforms associated with the openness of the economy of Kazakhstan, its further liberalization and progressive integration into the global economic system.

A Step-by-Step plan of institutional reforms will allocate resources (sectoral, fiscal, personnel, infrastructure, and investment policy) among the main areas of economic activity in the Republic of Kazakhstan,

The Resource Policy focuses on the effective use of agricultural land and mineral resources, in particular:

  • – introduction into the circulation of agricultural lands with a view to their effective use;
  • – regular monitoring of the use of agricultural land and the transfer of all unused land to the state fund for further privatization;
  • – increase of transparency and predictability in the area of subsoil use (through the introduction of international reporting standards on mineral reserves CRIRSCO);
  • – introduction of a simplified method of

contracting with the use of world experience for all minerals.

In the field of fiscal policy the reform is

aimed at the optimization of tax and customs policies and procedures, namely:

– reduction of the amount of customs duties of the common customs tariff in the framework of homogeneous product groups;

– introduction of the principle of "one stop service" for customs procedures for exporters and importers;

– simplified procedure of legalization of

property and money;

– introduction of universal tax declaration of income and expenses;

– establishment of a network of centers for receiving and processing tax returns with access to the unified archive of electronic docu

ments of taxpayers;

– implementation of the risk management system, etc.

The sectoral structure of the economy is formed with the creation of competitive branches and industries by:

– system implementation of the Eurocodes instead of outdated construction norms and rules (SNIP);

– introduction of the "single buyer" model in the electricity industry;

– consolidation of regional electric grid companies (REC);

– goal to attract at least ten MNCs in manufacturing sector to generate export of goods and exit of Kazakhstan to the world markets;

– establishment of joint ventures with

"anchor investors" – international strategic partners in the priority sectors of the economy;

– implementation of the initiative "national champions" with a focus on the support of specific leading companies – medium-sized

businesses in non-resource sectors of the economy;

– changing the concept of the antimonopoly service and its alignment with OECD standards and its focus on the promotion of free competition.

Specific steps towards the implementation of

the new infrastructure policy are related to the integration of Kazakhstan into the international infrastructure networks and transport and communication flows. So, the Plan for 100 steps

provides the following infrastructure projects:

– creation of a multimodal transport corridor "Eurasian Transcontinental Corridor" allowing the unhindered transit of goods from Asia to Europe;

– creation of an international aviation hub at the international airport of Almaty conforming to international standards;

– creation of an international financial

hub for CIS countries, as well as for the entire region of West and Central Asia on the basis of the infrastructure of ASTANA EXPO 2017 giving it a special status enshrined in the Constitution. Kazakhstan's financial hub needs to

become one of the twenty leading financial cen

ters of the world.

Personnel and education policy reforms are aimed at improving the quality of human capital based on the standards of OECD countries, the competitiveness of manpower and the growth of potential exports in the education sector. The following basic steps in this direction are as follows:

– liberalization of labor relations and the development of a new labor code;

– phased implementation of 12-year education, upgrading of scholastic standards, creation of incentives for successful schools;

– training of qualified personnel in top ten

colleges and ten universities in six key sectors of the economy with subsequent dissemination of experience.

– gradual expansion of academic and managerial autonomy of universities based on the experience of Nazarbayev University;

– gradual transition to English language teaching in the education system – in high schools and universities;

– development of two innovative clusters as the basis for the formation of a knowledgebased economy by attracting local and foreign high-tech companies.

Economic growth is designed to stimulate and support reforms in the sphere of customs and investment policy, in particular:

– integration of customs and tax systems to track and trace goods from the moment of importation to the territory of Kazakhstan to their disposal;

– introduction of customs clearance "post factum" with the provision of the possibility of release of goods before the filing of goods

declaration to certain categories of traders i.e. foreign trade operators;

– attraction of strategic (anchor) investors in the tourism industry, road and transport infrastructure and food production;

– implementation of an internationally recognized mechanism of energy service contracts to stimulate the development of private energy service companies and the provision of comprehensive services in the field of energy saving for the reimbursement of

their own costs and obtaining financial profit

from the actually achieved savings in energy consumption.

Overall the Plan for 100 steps is a concreti- zation of measures to reform the political and economic systems of Kazakhstan and is a continuation of the policy of gradually improving the competitiveness of the economy in the framework of the Strategic plans of the Republic of Kazakhstan up to 2050.

  1. ited States Census Bureau. http://www.census. gov/compendia/statab/2012/tables/12s0629.xls
Year: 2015
City: Almaty