scientific adviser: Berdibaeva Alia Kartbaevna

al-Farabi Kazakh National University

Аssociated professor, Law faculty

Kazakhstan, Almaty

Autor: Masters student

Baiakhmetova G.B.

Al-Farabi Kazakh National University, Kazakhstan, Almaty

Berdibaeva_aliya@mail.ru, bgb_1994@mail.ru

 

 

 

Annotation

 At present, by investments we mean long-term investments of money, capital in our own country or abroad in objects of various activities, entrepreneurial projects, socio-economic programs, innovative projects in order to generate income or achieve a different useful effect. And although before this word did not exist in the lexicon of our ancestors, they were well acquainted with the very concept of profit or profit extraction. The history of profitable investment begins with their history of the emergence of ancient civilizations. There are many different interpretations of the concept of "investment", but in order to obtain an accurate definition, let us turn to the law of the Republic of Kazakhstan "on investments".
Key words: investments, innovative projects, social and economic programs.

Аннотация

В настоящее время под инвестициями мы понимаем долгосрочные вложения денег, капитала в собственной стране или за рубежом в объекты различной деятельности, предпринимательские проекты, социально-экономические программы, инновационные проекты в целях получения дохода или достижения иного полезного эффекта. И хотя раньше этого слова не существовало в лексиконе наших предков, с самим понятием извлечения выгоды или прибыли они были хорошо знакомы. История выгодного вложения денег начинается вместе с их историей появления  древних цивилизаций. Существует много различных трактовок понятия «инвестиции», но, чтобы получить точное определение, обратимся к закону Республики Казахстан «об инвестициях».

Ключевые слова: инвестиции, инновационные проекты, социально-экономические программы.

 

Аңдатпа

Қазіргі уақытта, инвестициялар бойынша біз табыс генерациялау немесе өзге де пайдалы нәтижеге жету мақсатында өз елімізде немесе шетелде түрлі іс-шаралар, кәсіпкерлік жобалар, әлеуметтік-экономикалық бағдарламалар, инновациялық жобалар объектілерінде ақша мен капитал ұзақ мерзімді инвестицияларды түсінеміз. Біздің ата-бабаларымыз кезінде, пайдалы немесе пайда лексика болған жоқ, дегенмен, олар өндіру өзі тұжырымдамасымен таныс болды. Тиімді инвестиция тарихы ежелгі өркениеттер, олардың тарихы пайда болуынан басталады. «Инвестициялар» термині көптеген түрлі мағынасы бар, бірақ дәл анықтамасын алу үшін «Инвестициялар туралы» Қазақстан Республикасының Заңына сүйенуге болады.

Түйінді сөздер: инвестиция, инновациялық жобалар, әлеуметтік-экономикалық бағдарламалар.

Investment and legal framework for investment

The word "investment" entered our lexicon relatively recently. Currently, under the investment we understand the long-term investments I have money capital in their own country or abroad subject to various activities, entrepreneurial projects, socio-economic programs, innovation projects in order to generate revenue or achieve other beneficial effects. Although earlier this word did not exist in the vocabulary of our forefathers, the benefits or profits, they were familiar with the concept of extraction itself. The history of profitable investment of money begins with the appearance of their history of ancient civilizations.

In ancient times, the circulation of money was very intense due to the large number of cities and the development of trade relations. Then the money was invested, primarily in the trade of precious metals and precious things, the acquisition of land holdings. However, there were no special institutions for profitable saving money - banks.

Currently, investments are regarded as long-term investments of capital in different spheres of economy, infrastructure, social programs, protection of the environment, both domestically and abroad, in order to develop production, social, business, making a profit. [1] There are many different interpretations of the concept of "investment", but to get a precise definition, let us turn to the law of the Republic of Kazakhstan "On Investments". Thus, the law gives the following definition of the term.

Investments - all types of property (other than goods intended for personal use), including items of financial leasing from the date of conclusion of the contract of leasing, as well as the rights to them, invested by the investor to the charter capital of the legal entity or increase of fixed assets used for business activities, as well as produced and fixed assets received under the concession agreement by the concessionaire (legal successor). [2]

Classification and investment objective

1.         Depending on an investment is made to distinguish between the real (kapitaloobrazuyuschie) and financial (portfolio) investments.

Real investment - is investing in tangible and intangible assets. They consist of long-term capital investments. Real investments include the following elements: investments in fixed assets, the cost of land acquisition, investments in intangible assets (patents, licenses, research and development activities), to replenish inventories. The main purpose of real investments - public satisfaction with social and economic needs.

Financial investments are investments in financial assets. It is virtually the capital invested in stocks, bonds, promissory notes and other types of securities. The emergence and circulation of financial capital is closely linked to the functioning of the real, ie, productive capital. And with the advent of the securities it is as if split capital. On the one hand, there is a real capital represented by production facilities, on the other hand - a reflection of its securities. The actual capital invested in the production and function in this area. Valuable as the paper is a paper copy of capital - almost fictitious, imaginary capital. The emergence of the securities linked to the development needs in attracting an increasing amount of credit due to the expansion of commercial and industrial activity. Thus, the fictitious capital is starting to develop on the basis of the loan as well as the purchase of securities means the transfer of the money capital loaned, and the paper itself receives a form of credit document according to which the owner acquires the right to some income from interest or dividends surrendered loan capital. The main function of fictitious capital is to raise money for the organization and expansion of production. [3]

In modern market economies, a significant part of the investments are in financial investments, as well as the bulk of investment in Kazakhstan is a real investment.

2.         Also, investments are classified by type of ownership. Under the structure of investment by ownership understand their distribution on that basis, these investments belong to someone. Thus, they are divided into:

- State (municipal) - an investment of money, carried out on behalf and at the expense of the state. These investments can be funded from the state budget, state budget funds raised by the state of temporarily free funds of individuals and legal entities through the issuance of government securities, and property constituting state treasury. These investments are mainly in the defense industry, infrastructure, housing, etc .;

- Private - investments made by private individuals and legal entities, ie This investment by the private sector. They are to a considerable extent directed to those sectors where it is possible to bring big profits - industry, trade, construction, etc .;

- Mixed - is equity investments made with the assistance of the state and private investors;

- Joint - investment, carried out jointly by residents and non-residents;

- Foreign - investments made by foreign companies, foreign individuals and foreign states in the person authorized by them to the governments and international non-governmental organizations;

3. From the standpoint of the goals and focus of investments is divided into:

- Initial investments (net investment) - investments made to create or purchase firms or service facility;

- Extensive investments - investments made in the expansion of existing businesses, increasing its production capacity, including involving the expansion of the sphere of activity;

- Reinvestment - investments to replace worn-out or obsolete equipment, outdated by new technological processes in order to maintain a rational structure of fixed assets and enterprises to survive in the long term

4. The nature of the participation of the owners of the funds granted to the implementation of investment projects, investment can be:

- To direct investments are direct investments funds and other capital investors participating investment projects;

- Indirect investments are attracted by the available funds of citizens, enterprises, organizations, through the issuance and sale of shares, guarantee certificates and other securities.

5. Depending on the length of the investment period are distinguished:

- For short-term investments realize investments for a period of up to one year;

- Long-term investments related to the implementation of large-scale and long-term investment projects involving the construction of new buildings or renovation.

6. Compatibility of the share on:

- Independent - investing in such investment objects, which can be implemented as stand-alone, independent of other objects of investment and does not exclude them a total investment program of the enterprise;

- Interdependent - investing in such investment objects, order the implementation of which depends on other investment objects and can only be carried out in conjunction with them;

- Mutually exclusive investments are analog in nature for the purposes of their implementation, the nature of technology, product range and other basic parameters and require an alternative choice.

7. In terms of profitability release:

- Higher-yielding investments. They characterize investing in investment projects or financial instruments, the expected level of net investment income which significantly exceeds the average rate of return on the investment market;

- Middle income investments. The expected level of net investment ribyli this group roughly corresponds to the average rate of investment income, current investment market;

- Low-yielding investments. For this group of investment objects expected level of net investment income significantly below the average rate of profit.

- Unprofitable investment. They are a group of objects of investment, selection and implementation of an investor who does not associate with access to investment income. Such investments pursuing the purpose of obtaining social, environmental and other non-economic effect. [4]

8. Distinguish the following risks:

- Aggressive investments are characterized by a high degree of risk. They are characterized by high profitability and low liquidity;

- Moderate investment is medium (moderate) risk with adequate profitability and liquidity of investments;

- Conservative investments are low-risk investments, characterized by reliability and liquidity [5].              

9. Liquidity level:

- Highly liquid investments. These include objects (tools) Ying ­ vesting companies that can quickly be the converted into cash odds ­ mu (within one month) without appreciable loss of their current market value; 

- srednelikvidnye characterize a group of objects investment of the enterprise, which may be the converted into cash without significant loss of their current market value, and in a period of one to six kneading ­ ant; 

- To illiquid investments include invests objects ­ tion of the enterprise, which may be the converted into cash without loss of their current market value at the end of a significant period of time (from on ­ half of the year and above). 

- Illiquid investments vitsy characterize such investments, which alone can not be implemented (they can be sold on the investment market is only a part of the integral property complex). [4]

Objects and subjects of investment activity

In our country the capital investments are made not only to generate income but also social needs of society. The words "investment" and "capital investments" are close in meaning, and some consider them synonymous. Investment activity - it is investing (investment) and the implementation of practical actions in order to generate income and achieve the desired effect. By investing activities include investment and construction processes. Without them, unthinkable reproduction of fixed assets (new construction, modernization, expansion of enterprises, increase capacity). [3] The law also gives this interpretation. Investment activities - physical and legal persons for participation in the authorized capital of commercial organizations or the creation or increase of fixed assets used for business activities, as well as produced and received fixed assets under the concession agreement by the concessionaire (legal successor). [2]

Investment objects are constructed, reconstructed, technically rearm and extensible enterprise, buildings, structures (fixed assets), intended for the production of new products or services, securities, credit, scientific and technical production.

Subjects of investment activity are investors (individuals or entities engaged in investment activities), customers, executors of works, users of investment activity objects, as well as providers, legal entities (banks, insurance companies and intermediary organizations, investment funds), and other participants of the investment process. [4]

investment policy

Investment policy is one of the most important permanent means of purposeful activity of the state in social and economic development of the state. This policy is a core foundation of the whole political sphere of the state - is the foundation of all public-political activities (all kinds of government policy), including social, economic, environmental, and up to criminal and any other that exists in today's society.It refers to the purposeful activity of the state under the investment policies to ensure favorable conditions for investment, efficient use of the country's investment potential with a view to economic recovery and meet the challenges of social and economic development. The investment policy of the state is to ensure the development of the reproduction of the material and spiritual good of society, production of fixed assets and neproiz ­ duction industries, their expansion and modernization. [5]

Investment activity in Kazakhstan

Attraction and effective use of foreign investment into the economy of Kazakhstan is the foundation of one of the directions of mutually beneficial economic cooperation between the two countries. With the help of foreign investment can really improve the deformed industrial structure of Kazakhstan's economy, create new high-tech production, upgrade fixed assets and technically re-equip many enterprises to prepare professionals and workers, to introduce cutting-edge management, marketing and know-how, to fill the domestic market with quality domestic products with a simultaneous increase in exports to foreign countries.

According to the National Bank of the Republic of Kazakhstan for 17 years of independence from 1993 to 2009 in Kazakhstan's economy attracted 108.05 billion. US dollars. It should be noted that only 34.2 billion US dollars was raised for the first 12 years, and over the last 5 years -. 73.9 billion US dollars (growth by 2.2 times). Increased interest of foreign investors in the economy of Kazakhstan confirmed by the data for the last three years (the years of the global financial crisis), 2007 - 2009, FDI inflows into the country amounted to 56.6 billion US dollars, whereas in 1993 -. 2006 - 51.4 billion . USD (10.2% growth). However, for the period 2004 - 2009 years, the gross outflow of direct investment from Kazakhstan abroad amounted to 14.2 billion US dollars.. During the period 2004 - 2009 years, the largest outflow of domestic capital is observed in the direction of the Netherlands (7.2 bn.). During the first half of 2010 it raised $ 9.3 billion. Dollars. During the period from 1993 to June 31, 2010 the gross outflow of direct investment from Kazakhstan abroad amounted to 16.29 billion dollars, in the first half of 2010 -. 2086 million dollars [8]   From these data, one can observe the process of reducing the outflow of domestic capital abroad and the increasing inflow of foreign capital.

The main investor countries are Kazakhstan Netherlands ($ 25.6 billion., Or 21.6% of the total), the United States ($ 20.2 bln. Or 17.05%), the UK ($ 9.6 bln. Or 8,1%) , France ($ 6.6 bn., or 5.57%) and Italy ($ 4.99 billion., or 4.2%). [6] In addition, K azakhstan introduced a visa-free regime for citizens of the ten countries which have shown the highest investment activity In Kazakhstan. This pilot mode will run from 15 July 2014 to 15 July 2015. This message has been declared within 27 plenary session of the Foreign Investors Council. With this mode is carried out in order to enhance business contacts between the two countries and its members are the United States, the Netherlands, Britain, France, Germany, Italy, Malaysia, United Arab Emirates, the Republic of Korea and Japan. [7]

Thus, Kazakhstan is of great interest to foreign investors. Investment attractiveness of Kazakhstan market providing a plurality of access to natural resources, size of the market, the strategic location of Kazakhstan, as well as a stable political situation and the presence of an appropriate legislative framework. Currently, the priority areas for investment are: fuel and enegetichesky complex, agriculture, infrastructure, including transport, telecommunications, social infrastructure. And as investment demand is still far from exhausted, Kazakhstan will continue to be interested in their involvement.

One of the very common versions of the sources of industrialization is that important (or even main) source was foreign investment, credits and loans. The subject of foreign investment and loans is difficult, information is very incomplete, fragmentary and not always reliable. [9]

Industrialization — the process of accelerated socio-economic transition from the traditional stage of development to an industrial, with a predominance of industrial production in the economy. This process is associated with the development of new technologies, especially in industries such as energy and metallurgy. Industrialization of society is also undergoing some changes, changing his perception of the world. Positive attitude to work combined with the desire as quickly as possible to use new technologies and scientific discoveries also give a contribution to the accelerated growth of production and incomes. The result is a broader, ultimately, the global market of products and services of all kinds, which in turn stimulates investment and dalmacijacement growth.

Industrialization - the creation of large, technically advanced industry, a significant increase in the share of industry in the economy. [10]

Some of our historians sometimes so bad with the economy, start to be confused in three pines. They cite interesting facts and examples of the involvement of various Western companies in the construction of various industrial facilities. This participation was in the design of the objects themselves, and in the supply of equipment and provision of engineering supervision at the construction site, and commissioning. The authors call this part differently: "help", "investment", "promotion" etc. But it was not "assistance", not "investment", not "assistance". It was an ordinary business in which Western companies participated as designers and consultants, suppliers of machinery and equipment, contractors, subcontractors, etc. Sometimes it was all in "one package". Then the company was called "General contractor". In any case, Western companies themselves money, we were not given, and earning money, receiving them from the customer, which made the Soviet state.

I will say more. The concept of industrialization could not, even theoretically, to assume the participation of foreign investors. Global experience shows that if the country allowed foreign investors, the export of a country begins to grow. After all, foreign investors need to "recapture" their investments, and this requires a currency, and currency gives exports. Industrialization was a project import, it did not pursue the goal of export expansion.

 

 

 

 

Bibliography

1.           Investments. Orlova ER, Omega-L, 2012.

2.           Law of the Republic of Kazakhstan «O b Investments", dated January 8, 2003.

3.           Investments. Neshitov AS, Dashkov i K, 2012.

4.           Investments. V.V.Bocharov, V.E.Leontev, N.P.Radkovskaya, Infra-M, 2010.

5.           http://studopedia.ru/1_113103_tseli-i-zadachi-investitsionnoy-politiki.html

6.           http://tengrinews.kz/tv/novosti/politika/1826/

7.           http://www.zakon.kz/4631946-bezvizovyjj-rezhim-dlja-grazhdan-10.html

8.           Resolution of the Government of the Republic of Kazakhstan dated October 30, 2010 № 1145 on the approval of the investment programs, the development of special economic zones and export promotion in the Republic of Kazakhstan for 2010 - 2014.

  9. Mysteries and myths of Soviet industrialization. Part 7, Valentin Katasonov, 2017

10. Economics: Principles in Action. - Upper Upper Rivers, New Jersey 07458: Pearson Prentice Hall. - P. 472. - ISBN 0-13-063085-3.