Korabayeva A.B.
MODEL OF STATE
REGULATION OF ECONOMY IN THE REPUBLIC OF KAZAKHSTAN
The topic of this article is very relevant and often discussed at
present. Looking back, you realize that in such a short period of time from the
date of independence of our country, we have achieved considerable success in
the establishment of our country as a state, at the same time trying to get rid
of the burden of the Soviet model and the ideology of government and in every
way trying to integrate into the world economy, and to recognize us as one of
the youngest, fastest growing and emerging countries.
Government regulation of the
economy is a necessary attribute of the modern organization and functioning of
the economy, does not deny or violates the foundations of private property, but
it does affect the market mechanism of management. In this respect, the modern
economic models are variants of the mixed economy, can not be reduced either to
a pure market, free from government influence or a planned economy to a clean,
devoid of any elements were competitive behavior. Necessary political attribute
of the system - civil society.
The term "mixed
economy" is refers to the national systems of developed countries.
In the literature, there is a
fairly stable view that this definition applies only to the national models of
Western European countries, as they demonstrate the dynamism of the market
economy and social orientation, the support of which the State and other public
institutions.
Thus, the boundaries and the
extent of government involvement in the economy (the scale of state ownership,
the proportion of the state budget and / or expenditure to GDP,
government-financed social services, the conduct of macroeconomic policy and
microeconomic environment control) - this is the most important criteria of the
typology of national models.
In the world, there are two
most common interpretations of economic regulation:
- Neoclassical, implying automatism regulation of the market system,
dominated by judgments about the economic crisis or impossible under capitalism
(JS Mill, David Ricardo), or they are merely coincidental, and that the system
of free competition alone is capable of overcome (ZH.-SH. Sismondi, R.
Rodbertus Kautsky);
- Keynesian coming from the necessity of state intervention in markets,
especially in times of crisis. As the author of the work, after the Second
World War, developed countries are mainly economic policies to reflect the
ideas of British economist John Maynard Keynsa. Svoy to Theoretical System
Keynes made Hansen, A., P. Samuelson, Musgrave, R., Lerner A ., Eccles, G., Hiller,
W., J. Pekman and others.
However, in the 1970 is the
West began to talk about the negative effects of such a course of production
and supply. So soon found and a compromise: to the state is not the correction
of the market mechanism, and the creation of conditions of its free
functioning. Competition should be, wherever possible and appropriate
regulatory intervention of the state.
At present, the impact on the
economy in foreign countries have different legal standards: scientific,
technical, and social programs, the financial and economic instruments
(government order, limits, quotas, investment, taxes).
Depending on the degree level,
the role and nature of government regulation of the economy and the scale of
solved with social objectives, there are several models: American, Japanese,
German, French and Swedish, the characteristics of which are shown in Fig .1.
To assess the impact of public
policies on the common interests, it is necessary to create a model that
reflects the functioning of the system as a whole. There are significant
differences between the representations of the model of state regulation of the
market economy. Thus, the majority of U.S. citizens, though not all, believe
that the American model works well, and for the Swedish American model is not
acceptable, and they believe that their model works perfectly. For Asian
countries, even with the financial crisis, the models also seem to be the most
attractive. The problem is that the IMF (and other IFIs) are in accordance with
the existing approaches, proposals and policy recommendations for which there
is no general agreement, for example, in the case of the liberalization of
capital markets, there are rather meager arguments "for" and many
arguments "against."
Consider the advantages and
disadvantages of models of state regulation in developed countries. In many
countries, economists argue about whether the full adoption of the American
model of economic development, which is based on the development of
competition, anti-monopoly, flexible labor and product markets, relatively low
taxes, equity capitalism stimulating extract maximum profit.
Gross domestic product (GDP)
grew in the United States 1992-2000. an annual average of 3.2%, almost twice
the rate in Germany (1.7%) and four times - Japan (0.8%). When Japan and
Germany were covered by the economic crisis in 1998, the American company is
continuously picking up the pace of growth, and the U.S. Federal Bank made
desperate efforts to slow down the acceleration of up to 2% of GDP per year. An
important indicator for any economic model - productivity growth - the United
States took the lead in the world.
American economic model had a
significant impact on the growth of living standards. The modern middle class
now has more wealth than ever before.
Only 28% of people in the
middle class, live on one salary. This means that the U.S. economic model,
compared to the European model, requires greater effort.
Despite the advantages of the U.S.
economic model, is increasingly being felt its shortcomings, which consist mainly:
- In a growing gap in incomes of the rich and wealthy. The richest in
the United States have an income, on average, 37 times more than the
poorest (in Japan - 4 times
in Germany - to 6
times);
- The low level of primary and secondary education;
- In the absence of a criterion of social return on invested capital, as
opposed to Europe, considering the only criterion for evaluating the
performance of enterprise income in invested capital;
- In the annualized trade balance deficit (country imports more than it
exports, and, in a few hundred billion dollars).
Ten years ago, when the U.S.
economy was in recession, many economists have advised the U.S. to increase its
competitiveness be based on the Japanese model. But times are convinced that in
this model, more disadvantages than advantages.
|
American |
|
Japanese |
|
German |
|
model of state regulation
of the economy |
|
Swedish |
|
French |
|
|
|
Global system to encourage
entrepreneurship |
|
enrichment
of the most active part of the population |
|
Ensuring
acceptable standard of living of low-income groups in the redistribution of
national income and tax functions |
|
The administrative body of the state to
the mainstream economy |
|
decision
to promote of social problems enterprises |
|
Effective encourage participation
of workers in the management of production |
|
the significant role of the state in solving
social problems and keeping the
overall benefits |
|
the significant role of the state in solving
the problems of economic development
of the country |
|
Pronounced social orientation |
|
Reduction of inequality through
redistribution in favor of the poor |
251684864
Fig.1. Model of state regulation of the economy
In Japan, whose economy has traditionally been based on the principles
of paternalism and loyalty, the economic model implies a system of "job
for life", the company employee loyalty, promotion and improvement of
their professional skills and high level of education, as well as the excellent
work the service sector, the close relationships between banks and firms, a
high proportion of long-term investment.
However, this model began to
fail, because the benefits are causes of the current problems, firms that are
protected from the vagaries of the free market, did not have sufficient
incentives for more efficient capital investment.
Today, after years of deep crisis in Japan and other countries in
South-East Asia, economists tend to promote the American model.
Also, do not stand the test of
time and the German economy, which is gaining pace prosperity gradually came to
a standstill of production, increased unemployment.
In the German model on the
list of priorities in the first place was the education of workers; hereinafter
called the development of a social system, a difference in the incomes of the
rich and the poor, encouraging investment. At the same time, the presence of
strong unions determined the lack of flexibility in the labor market.
High unemployment - high taxation of companies and businessmen.
The analysis shows the use of a single model of the economy in all
countries of the world is fundamentally unacceptable, because countries have a
different set of initial historical, religious, geographic, economic and social
parameters.
Especially as each country has its own way of development and their
models, but, in national models of the same region, of course, will attend a
number of common features.
The functioning of a mixed economic system in the Republic of Kazakhstan
by the state and market regulation.
Internal, immanent its content is to supplement the principles of
«Laisses-faire» («let it be») state intervention (the principles of the
"visible hand") and is directed to maintenance of a sustainable
social development, elimination of market forces.
It is carried out by:
- The production of public goods (education, culture, art, science,
medical, automotive, railways, etc.);
- Providing egalitarian benefits (social security and welfare, housing,
etc.);
- Provision of goods on national security;
- Elimination of disparities;
- The elimination of external (externalities) effects;
- Limitations of "market power" entities with dominant
position in the market (state supervision, promote competition, price
controls);
- Ensuring the socio-economic rights (the right to work, decent life,
etc.);
- The development of international relations.
As part of global processes
vector of social progress of each country is not set at the same time.
You can not select a particular model (Japanese, German, American) and
apply it to Kazakhstan.
Different types of
civilization, culture, mentality, and levels of economic development and
resource capabilities limit the choice of the ways of social progress and
determine the need for tailored, taking into account the characteristics of
each country's modernization.
Require searching and finding
the forms, methods and solutions that correspond precisely originality
transient relationships include both elements of the future and the past, that
is the most adaptable to transient relationships, and not to the final state
[2, C. 45].
The main difference of the
existing models of economic development is at the recommended level of public
participation in the management of the market economy.
In practice, this can manifest itself in a variety of options - from
over-regulation to the extreme liberalization.
Conceptually, this model
focuses on achieving sustainable economic growth, improve the quality of life
of the population and it suggests that there are adequate mechanisms. The
creation of such mechanisms and their effective functioning provides for
strengthening the role of government regulation in the system.
According to [2, C. 23], it is theoretically achieved in two ways:
- First, the increase in the degree of state intervention, the focus on
administrative, restrictive measures in economic policy;
- Secondly, the creation of a truly free market economy with a high
level of competition and the strong role of the state in ensuring sustainable
development.
In this model, it is not about
increasing government interference in business processes, and their
constructive regulation, based on the public and the public interest, to
stabilize the economic development, the reduction of economic and social risks,
prevention of undesirable social consequences of the markets.
The most important purpose of
government regulation and recommended the concept of development of market
relations - definition of socio-economic policy, development and practice of
organizational, legal and economic mechanisms for its implementation,
regulation of economic life in general and in particular the subjects of the market,
ensuring security for sustainable social and economic development of society.
We are talking about such a
strengthening of government influence, which, without prejudice to the autonomy
of market, is designed to contribute to the consolidation of their activities
in the public interest.
State when it should provide
protection achieved positive values in
the economy - multiculturalism, economic equality between the different forms
of property market, competition, free enterprise, external openness - and
contribute to their development [2, C. 24].
In this model, the
development of market relations in the Republic of Kazakhstan proposed the use
of a factor-targeted regulatory transition economy.
For this system, characterized
by such necessary in modern conditions of quality, mobility, agility and a
clear focus on specific tasks according to the permanently-changing economic
environment.
The concept of factor-target
regulation [2] designed for the conditions of transit economy, operating in a
highly dynamic environment and the uncertain economic environment. Scientists
suggest RK organization regulation of the national economy by taking into
account all the key factors of economic activities and the planning of specific
goals, systematic, depending on the specifics of the current economic
situation.
According to [2, C. 42], the
implementation mechanisms of the considered model in time at relatively
favorable conditions (absence of global economic, financial, political,
environmental shocks) is available in three conditional phase (see Table 1.):
- The first (2001-2005 gg.)
- The second (2006-2010 gg.)
- The third (2011-2015 gg.).
Results of the initial phase
of the reform in Kazakhstan convinced that the transition to the market - not a
short act, but a phased, long-term, complex process of restructuring the entire
socio-economic system.
Reforms in Kazakhstan - not
just improvement in the economy, livelihoods, and changing patterns of society,
and its social values, which requires:
- A critical attitude to the international recommendations;
- Developing social and economic policies consistent with the objectives
adapted modernization.
Formation of a renewed system of economic regulation based on a
factor-oriented approach means phasing following [2, C. 25-26]:
- Identification of key factors influencing the economy in each current
stage of its development;
- Statement of the specific priorities of regulation based on selected
factors;
- Development and implementation of a complex factor-targeted regulatory
mechanisms to achieve this goal.
According to the authors of
[2], the functioning of factor-purpose vehicles does not preclude, and
certainly not a substitute for traditional methods of economic regulation.
Necessary and important
combination for effective influence on the processes of economic activities in
the country occurred in large-scale privatization of the property, after which
the main levers of control are economic measures.
The general model of a market
economy proposes a strategy for the formation of a mixed economy of the
Republic, suggesting in line with global trends democratization of
power-economic relations: the micro (enterprise);
- At the meso level (corporate) by section of economic power between
capital and labor.
In other words, the proposed
strategy provides for the formation of socially oriented property relations
based on participation in the ownership, management and employees profit
enterprises, reduction of inequality in income distribution, social partnership
between government, employers and trade unions.
The conceptual basis for the
formation of a mixed economy defined " Consensus" model of social
partnership and cooperation, coming out of her special role in the state and
executive power [2, C. 29].
Table 1. Implementation
phases of the market economic model in Kazakhstan
Phase Period Feature stage
First 2001-2005 Creating a competitive environment,
Creation of a developed market infrastructure,
Resolution of problems of internal and external public debt, budget deficit,
Expanding the scope of cash flow;
The significant increase in
investment and consumer demand,
Improving the investment climate
Ensure
the growth of investment in the real sector from domestic sources of financing,
Solution to the problems of
non-payment
Second 2006-2010 Implementation of the second restructuring
of the national economy,
The
growth of processing industries with high added value,
Growth funds of enterprises and
organizations, allocated for the development of production,
Provision of social protection of the population,
Growth
in nominal incomes and
Positive changes in the structure
of the payment demand (increase in the share of manufacturing exports, the
surplus capital flows)
Third 2011-2015 Creating a progressive structure of the
national economy,
Implementation
of technological modernization,
Ensuring sustainable economic growth with more efficient
use of
all factors of production.
The inclusion of the Republic
of Kazakhstan in the international division of labor,
Substantial improvements in the quality of life of the population
The effective functioning of
the public sector involves the development of mechanisms for the implementation
of the post-privatization policy, including the methods of sale of state-owned
or state-owned shares, reorganization of state enterprises, restructuring of
debt, etc.
As you know, the economy is
functioning to meet the physical needs of its main core - man. However, due to
imperfections in the laws of production, distribution, exchange and consumption
of man is forced to experience some discomfort, and sometimes suffer from a
lack of priority and the inability to purchase commodities at the inexhaustible
possibilities of their production, and sometimes even with their
overproduction, any failure to receive medical care at a high level of
development this industry; unemployment, when production fails to meet its
"obligations"; shortage of housing in the presence of empty
apartments, deprivation and suffering in old age, having behind huge seniority
etc.
The question is: is it
possible to mitigate the effects of imperfections in the organization of social
production? International practice provides a positive answer to this question.
The solution to this problem
in the developed capitalist countries is through the organization of social
protection of citizens. In other words, by making the reproduction of more
social orientation. It should be borne in mind that between the efficiency of
production and social protection, between economic and social values, there is
not only the relationship, but also a certain contradiction. Priority given to
efficiency, based on unrestricted competition, leads to massive layoffs,
increased polarization of incomes, an increase in social relations.
On the other hand, the
far-reaching government intervention in order to improve standards of social
protection of people can lead not only to the suppression of entrepreneurial
initiative and reduce the efficiency and competitiveness of production, but
also to the bureaucracy of the system of social security.
In this connection it is
necessary, in our opinion, at present in Kazakhstan to implement the social
protection of the working population of international standards "Social
Accountability 8000 (SA 8000)," the International Organization of social
responsibility (SAI), which is based on the following international
instruments: Conventions 29 and 105 of the ILO (Forced and bonded labor), ILO
Convention No. 87 (Freedom of Association) ILO Convention 98 (Right to
negotiations between employers and trade unions on working conditions), the ILO
Convention 135 (Convention workers representatives), the ILO Convention 155
(Professional safety and health) ILO Convention 159 (restoration, workers and
people with disabilities), the Universal Declaration of Human Rights, the UN
Convention on the Rights of the Child, the UN Convention on the Elimination of
All Forms of Discrimination Against Women and other
The requirements of social responsibility
applies to the following aspects [1]: child labor; forced labor, health and
safety, freedom of association and the rights to the negotiations between
employers and trade unions on working conditions, discrimination, disciplinary
practices, working hours, compensation, control system.
Based on the selection model of the national economy and state
regulation of the economy of the world at the present time form a social
policy, part of which is social protection.
Thus, the material described
suggests that the strategy of the development of any national economy can claim
a performance only if it complied with certain stages and laid the possibility
of strategic maneuvering.
Strategic maneuvering
recommended conceptual model of a market economy in Kazakhstan is provided by
using a factor-targeted approach to regulation, which allows to quickly change
the methods and controls depending on a goal in each stage.
Literature
1. Lebedev OT, Kankovskaya AR Principles of
Management. / Textbook. Ed. OT Lebedev. Ed. 2nd add. - St. Petersburg:
Publishing House "NUM", 2008. 192 p.
2. The market economy of Kazakhstan: problems of
formation and development. In two volumes / ed. MB Kenzheguzina. Tom. 1 -
Almaty: RK Institute of Economics, 2010. - 384 p.
3. Nazarbayev N.A. Kazakhstan – 2050. Astana, 2012.