Economics
/ 15. State regulation of the economy
Senior Lecturer Gabdullina R.J.
Zhetysu
State University n.a. I.Zhansugurov,
The
Republic of Kazakhstan
DIVERSIFICATION OF THE ECONOMY OF KAZAKHSTAN IN TERMS
STRUCTURAL REFORMS
Diversification
of economic activities - expansion activity of large firms, associations,
enterprises and industries beyond the core business, which is defined as the
production of goods and services, with the maximum share in net sales compared
with other types of products.
The
following types of diversification: concentric diversification involves the
establishment of new products using the capabilities of an existing business;
horizontal diversification involves finding growth in existing markets through
new products, requiring new technology; conglomerate diversification involves
expansion of the production, technologically unrelated to have produced new
products that are sold in new markets. [1]
American
economist I. Ansoff identifies a number of reasons for diversification: the
company diversified, when they can not achieve their goals within the existing
business - portfolio. When a company has attractive opportunities for expansion,
successfully moving towards the goals, it may decide to diversify. If the
amount remaining from her profit is insufficient to carry out plans to expand
current operations; the company may decide to diversify if it allows it to get
more money than a simple extension of production.
The level of diversification is measured
by two indicators: the identification number of industries or product lines and
services covered by the activities of the enterprise, as well as the ratio of
primary and diversified production.
Reasons
why companies release new products and go with them to new markets can be:
sustainable financial position through the issuance of more profitable
products, the penetration in the industry with high profit margins, reducing
the risk of non-profits. [2, 215c.].
Strategy
of diversification of Kazakhstan's
economy today is a top priority of restructuring the economy and increase its
competitiveness. Unfortunately, the structure of the economy does not match the
structure and observed the prevalence of weight in the GDP of the extractive
sector.
To
date, Kazakhstan has shown strong growth in export volumes. But the share of
processed products remains at a low level. By the end of 2014 the first place
in the export of mineral products occupy 76.4%, the second-metals and articles
of 10.6%, in third place - the products of the chemical and related industries
(including rubber and plastics) 6.5 %, in fourth place - products of animal and
vegetable origin, ready food products 4.5%, the fifth place is occupied -
machinery, equipment, vehicles, tools and equipment 2%. GDP growth remains
dependent on increasing the monetary and resource rents provided by the
production and export of oil, gas and other raw materials, as well as the
production of services. Predominance in GDP of raw materials confirmed a
significant share of natural resource revenues in the consolidated budget
revenues, which in 2014 was 57.5%. Foreign trade turnover in comparison with
2013 increased by 5.4%. This was achieved largely due to the rapid growth of
imports, which in comparison with 2013, grew by 4.8 bn. (12.7%), while exports
- only 2.2 bln. (3.4%) . In the country the share of small and medium-sized
businesses in the formation of GDP in 2014 was 18.6% [3].
From the data
presented, it is obvious that the advantage remains for the export of mineral
resources. On the one hand, high prices for mineral resources provided by the
rapid growth of GDP, on the other hand - raw orientation prevents the
production of goods with high added value and promote them to foreign markets.
That is why the government of Kazakhstan determines the need for economic
diversification and competitiveness as one of the most important strategic
objectives.
Tool for
increasing and retaining export competitiveness is, but you can not be a
competitor in the international markets without exporting the finished product.
Kazakhstan raw specialization generates greater dependence on conjecture world
commodity markets and reflected on the balance of payments and the state
budget. Search Western countries of alternative sources of energy resources
creates the danger of falling world prices for export commodities. To reduce
risks in 2004 in Kazakhstan started the project "Diversification of
Kazakhstan's economy through the development of clusters in the extractive
industries do not." The cluster strategy aims to identify and create
separate groups of geographically close and interconnected businesses that will
complement each other to achieve certain economic effect and enhance the
competitive advantages of individual companies and the country as a whole.
There were also identified seven high-priority pilot clusters. Among them -
tourism, transport and logistics services, oil and gas engineering,
construction materials, food processing and textiles, metallurgy. Just in
parallel with the Government of the RK is working on the creation and promotion
of cotton, wine and fish clusters [4].
In addition to
cluster development, implementing a program of forced industrial-innovative
development of Kazakhstan for 2010-2014, aimed at ensuring sustainable and
balanced economic growth through diversification and increase its
competitiveness. The objectives of this program include: the development of
priority sectors of the economy; strengthening of the social efficiency of
development of priority sectors of the economy and the implementation of
investment projects; creating an enabling environment for industrialization;
the formation of centers of economic growth on the basis of rational
territorial organization of economic potential; ensuring effective interaction
between government and business in development of priority sectors of the
economy [5].
However, analysis
of this problem allows to identify the main difficulties faced by the State in
the diversification of Kazakhstan: low investment attractiveness of
manufacturing industries not raw orientation; insufficient development of
innovation infrastructure; skills shortages in a number of industries;
significant depreciation of fixed assets.
The main priority
of the development is to create new high-tech industries, increasing the
competitiveness of its products in domestic and foreign markets. Solving these
problems is seen in the improvement of management principles and processes of diversification
move away from raw orientation. Kazakhstan continues to have a strong
dependence on natural resources, and at the initial stage of the process of
diversification of the economy must be the appropriate government support to
industry, because the diversification of the economy begins, first of all, to
the diversification of the individual enterprise. [6]
Recommended the
introduction of new management principles, including: regulatory and
organizational support for the diversification of production; the development
of the general strategy of diversification of the industrial complex;
program-oriented planning diversification of individual regions; enhanced
stimulation of scientific and technical activities, the program of industrial
and innovative development; organizational and structural transformation of the
economy of the regions; training and retraining of personnel required.
In many respects,
the slow pace of implementation of the program of forced industrial-innovative
development of Kazakhstan explained behind the technical level of many sectors
of the economy, a large depreciation of equipment, which inhibits the
production process and significantly affects the quality of the product. The
solution to this problem is the need to update much of the production base of
industrial enterprises. Requires the use of new techniques, technologies,
management practices, as well as the entire organization of production as a
whole, to ensure high competitiveness in both domestic and foreign markets.
References:
1. Alexandrov D. Diversification: instrument of development or strategy of
a survival. Internet
resource: http://www.top-manager.ru
2.
I. Ansoff. Strategic Management. Moscow, 2010. -344 p
3.
The official website of the Agency for Statistics. -http: //www.stat.gov.kz
4.
The concept of formation of prospective national clusters of the Republic of
Kazakhstan till 2020 - Decree of the Government of the Republic of Kazakhstan
dated 11.10. 2013 - http: // www. adilet.zan.kz
5.
State program for accelerated industrial and innovative development of
Kazakhstan for 2010-2014 // Kazakhstan truth / 31.03.2010
6.
Bishimbayev K.V. Perspective directions and mechanisms of industrial
modernization of economy of Kazakhstan / Scientific and pedagogical magazine.
The collection of materials of the international scientific and practical
conference devoted to the 10 anniversary of the capital of Kazakhstan – Astana of
"A problem of increase of competitiveness of national economies of the
Turkic-speaking countries". – Almaty, 2012, June-2 - 3, – Page 26-29.