Doctor of Economics, professor Dulambaeva R.T., Batyr Aiman

Kazakh national University named after al – Farabi, Kazakhstan

The possible impact of the world trade organization on the economy of Kazakhstan

         Since the independence of Kazakhstan in many economic, commercial, cultural and many other sides, it became a member of the international organizations. It is important for our economy, including the world trade organization. The WTO is an international organization that was established on 1 January 1995 to liberalize international trade and regulation of trade – political relations of member States. The main idea of this organization is the freedom of trade. The headquarters of WTO is located in Geneva, Switzerland. The head of the WTO (Director-General) — Roberto Carvalho de Azevedo, in the state of the organization about 640 people. 19 long years of negotiations of Kazakhstan's accession to the world trade organization (WTO), and on 26 April 2015 in the WTO consisted of 162 countries. This can be attributed to one of the momentous events in the history of Independent Kazakhstan. Especially clearly effective side may be observed in the financial sector. Because in our market financial banks and other financial institutions, almost none. A very high percentage of our loans provided by banks, from 8% to 24%. Opening the gate, through the banks of other countries to us, cheap credit. In General, the WTO is economically advantageous [1].

WTO aims and objectives of the accession of Kazakhstan as follows: Fig. 1

 

Note: this picture using the reference [1], prepared by the author.

         Kazakhstan and the aforementioned countries is not comparable with the production-economic and foreign trade point of view therefore we cannot, based on their experience to make forecasts about what will happen to our economy after WTO accession. To identify economies more comparable with Kazakhstan, we have analyzed dozens of countries-members of the WTO from the point of view of different economic categories, among which were such factors as economic structure, economic position, degree of economic development, the composition of exports and imports. And as a result, it was found that the most comparable with Kazakhstan, a member country of the WTO is the Sultanate of Oman. On the date of accession of Oman to the WTO in 2000, the annual growth rate of real GDP was 5.4%, the nominal GDP per capita was equal to $ 8900 USD, while in Kazakhstan by the end of 2014, these figures were equal to 4.3% and 13600 USD respectively [2].

         The structure of the two economies at the time of entry into the WTO also significantly converge. In 2000, in Oman in 2014 in Kazakhstan the main share in gross value added was accounted for by industry and services, whereas agriculture accounted for only 2% (see table 1). It is also noteworthy that in both countries a significant share of GVA in industry accounts for mining industry [3].
         Table 1. The proportion of economic activity in GVA of Kazakhstan and Oman at the time of accession to the WTO

Agriculture

Kazakhstan

Oman

2%

2%

Industry

32%

55%

Mining and quarrying

17%

49%

Manufacturing

12%

5%

Electricity, gas, water and other
Construction

3%

1%

Services

4%

2%

 

63%

41%

 

Note: compiled by the author based on the data of Committee of statistics of the nem RK and Arab monetary Fund.

         If we consider the decomposition of the GDP of both countries as well as consumption at the time of WTO accession, we can see that, as in Oman, and Kazakhstan a significant share in GDP accounted for private consumption and for export.        

         Thus, we are convinced that from the economic point of view, Oman and Kazakhstan on the moments of the accession to the WTO are very similar and represent classic export-oriented oil state. This gives the justification for retrospective analysis of Oman economy before and after accession to the WTO, with a view to applying its results as a tool for projections of the future state of the economy of Kazakhstan in the WTO.

         The WTO has positive and negative sides of membership. To enhance the competitiveness of domestic agricultural products, improvement of complex technical manufacturing industry it is necessary to conduct a significant amount of capital contributions it of course. The negative side of the second one – the disappearance of certain sectors, affecting the economy, so a significant impact on ekomika state protection of industries.

         Today, in front of Kazakhstan to change the material orientation of the economy, its diversification and encouragement of exports of finished products, i.e. how important the task is. The WTO, membership of international trade and subsidy regulation, in turn, involves the creation of favorable conditions for Kazakh producers of goods and services in the global market.

         The government of Kazakhstan to the WTO — you know that one of the priority directions in the foreign policy of the country. Of Kazakhstan to the WTO, the expansion and strengthening of the integration process of countries into the world economy is the main objective at the entrance. A lot of business issues of Kazakhstan's accession to the world trade organization currently provide. The consumer has shown interest in this issue, like any other citizen of the country.

         The WTO on mutually beneficial contracts, a distinctive feature is its transparency, and all member States of this organisation is based on equality of countries, free trade and the disciplinary measures to ensure to set the rules of international trade. The policy of open trade and domestic trade needs to open the way for objectively needing Kazakhstan to world markets, is expanding. It is international law and based on the prediction in the WTO Kazakhstan in the fight against the partners with the use of your internal conditions of competitiveness allows to have an effective trading [6].

         Ultimately, strive to become members of the world trade organization In the Republic of Kazakhstan is one of the important steps towards the harmonization with the global economy. This may be one of the factors contributing to the high rate and direction of driving force for sustainable economic development. Kazakhstan's accession to the WTO, are systematically trying to implement a policy of liberalization of foreign economic activity for the upcoming moment . Because, as you know, politics as the basis for an effective liberalization of world trade, developing and developed countries.

 

References

1.                                                                                                                             The website of the WTOhttp://wto.gov.kz/kz/wto/

2.                                                                                                                             Member countries of the WTO / http://economics.kazgazeta.kz/?p=14716

3.                                                                                                                             WTO international experience / http://cipe.kz/articles/macroeconomics.html?id=104

4.                                                                                                                             Kazakhstan is a member of the WTO / http://kaz.tengrinews.kz/kazakhstan_news/kazakstan-dsu-ga-resmi-turde-mushe-boldyi-263752/