Экономические науки/
15. Государственное регулирование экономики
Economic sciences/
15. State regulation of the economy
Saudambekova
I.D. 1, Aitakyn M.D. 2
1,2 «NARXOZ» University, Almaty, Kazakhstan
Capitalism in Kazakhstan
After the collapse of the Soviet
Union, Kazakhstan gained independence. Since 1991, he has an open door policy.
The last form of communism had disbanded. It had be replaced by private
ownership and privatization. The advanced form of capitalism in countries like
the United States touched up Kazakhstan on free-market economy. Although it
never lived up to those high expectations, its form of capitalism is still
fascinating. William J. Baumol gives an absorbing illustration of how the
economy works through 4 prototype by comparing these directly to the free
market capitalism of the United States, China and India.
Kazakhstan is colossal in size, complicated in its
history, colorful in its culture and is a nation state that most outsiders know
a little. The country's first president is Nursultan Nazarbayev.
For centuries, the tribes of Kazakhstan had plundered
and conquered by foreign invaders. The most ruthless of these were the 20th
century leaders of the Soviet Union, but after its collapse, it was Nazarbayev
who emerged as the new President of the nation state. How Kazakhstan has capitalized
on its natural resources (including oil) to become one of the great economic
success stories of the modern era?
Nazarbayev himself is widely admired as a political
leader and strategist, having overcome extraordinary crises including
hyperinflation, food shortages and the emigration of million people. However,
his record on human rights is less than perfect and the independence of the
judiciary and the press are questionable. Corruption is also widespread in
Kazakh society.
According to Bauman, capitalism is present in all
countries. This is private property and market relations. He explained
historically how he came in the post-Soviet region. He stresses that USA as the
primitive capitalist country has some objects that regulated by the state. In
the Republic of Kazakhstan is present all 4 types for which he has identified.
It is necessary to highlight, how does capitalism developed in Kazakhstan? For
26-years of development, what has it gained and lost from capitalism? State
capitalism in Kazakhstan.
After
the collapse of the Soviet Union Soviet, citizens have faced the anti-communist
propaganda. Their values and faith had destroyed. Now, 26 years later,
Kazakhstan is trying to revive and adapt the communist developments to the
realities of capitalism - has returned to a five-year plan (strategy, message
of the President), party system (Nur Otan), a transition to "people’s capitalism"
(Kazakhstan people will be able to become owners of the shares of large
enterprises ).
Capitalism
cannot be national. Because it is inherently anti-national, and it is
exploiting. Capitalism has brought the class division in the Kazakh society,
and that in 26 years of independence, the vast majority of citizens have not
adapted to the conditions of market relations. The state takes measures to
create new jobs and improve the living standards of citizens. The level of
gross domestic product over the 26 years has increased from 700 to 25877 (only
by a few percentage from oil, coal and other minerals) dollars per capita. The
country is developing even in the face of severe financial crisis, and we have
opened a new giant factories, urban infrastructure is in the process of
restoring.
The lion's share of this
business had not owned by the state, but by foreign companies. The 20 years of
commodity-driven economy brought our country to the depletion of natural
resources, the collapse of the processing and manufacturing enterprises, to
degradation of light industry and agriculture. There is no question on food
security - we're 60, if not 90% dependent on food supplies from neighboring
countries. While in Soviet times, Pavlodar region was the breadbasket (space
for storing grain) of all Soviet Union.
If we talk about agriculture, it is necessary to
take into account our nature and climate, particular features of local farming
and ranching. We support the creation of voluntary collective farms that would
use the direct support of the state, receive preferential and interest-free loans for fuel and farm
machinery, state orders for products at market prices, and the first three
years would not be taxed. There is no forced collectivization. We adopted a law
last year. We also oppose private ownership of land. This is the primary task.
The land and its mineral wealth should belong to the people represented by the
state. In a market economy, private farms are not competitive in comparison
with the state. The EU knows that the local farmers are sitting on government
subsidies. In the EU, the share of state support of farmers is 34%, in Japan -
58%, and we have in Kazakhstan only 19.9%.
The most important task
we put is support for domestic producers. It is necessary for them to create
advantages in the domestic market in the form of preferential tax and
increasing duties on goods imported not from the Customs Union. Therefore, most
of scientists are considering premature accession to the World Trade
Organization. Joining the WTO without a competitive agricultural sector is
criminal.
To reduce the prices of agricultural products in
the country it has needed to get rid of intermediaries and resellers. Because
of these speculators, villagers have forced to sell their products for a song,
and we buy at exorbitant prices. For the convenience of producers and consumers,
it is necessary to create a national distribution network.
And most importantly - it
is necessary to toughen the penalties for corruption offenses. In neighboring
Russia per year about a trillion rubles diverted by corruptioners. We have not
conducted such statistics.
In domestic business no
one produces anything, some people are trying as following: a small business -
reselling import, a medium business - distribution of state tenders, a large
business - sale of natural resources, banks - moneylending, speculation.
Kazakhstan more than any
other CIS countries has integrated into the global economy. More than anyone
climbed into the multi-billion dollar debt to foreign banks, more than anyone
else fell into economic dependence on the world market and foreign investors.
But investors see in Kazakhstan only a raw material appendage, and in people of
Kazakhstan solely black labor.
Natural resources should
belong to the state and to serve the welfare of all Kazakhstanis, and not to a
handful of oligarchs. Therefore, It is necessary to revise the predatory
contracts with foreign investors
At the end we became to
emphasized that Blouman divided capitalism on 4 prototype. First, where a
government tries to guide the market, support industries; where it anticipate
becoming as a winner; Second, where small group of individual and families are
guided. They have good power and wealth; Third, where giant enterprises
performs a bunch of economic activities; Forth, where small, innovative firms
held more roles. From our point of view,
we also emphasized as Blouman, advantage and disadvantage of capitalism.
And role of state in
economic growth: State capitalism in Kazakhstan
|
The role of the state in the
economy: |
·
Regulation
of economic activity. ·
Ensuring by common factors (law and
order, the environment, general education, and others.). ·
Supplier of certain goods and
services (where is market failure). |
|
What is
state capitalism? |
·
Key or a significant role of public
enterprises (PEs). ·
Government regulation, acting in
such a way that the PEs are in a privileged position. |
|
Pros of
state capitalism |
·
PEs can focus on long-term rather
than short-term goals. ·
The concentration of scientific and
technological potential. ·
and as a result - the achievement
of competitiveness of national companies on foreign markets (especially
important for small countries). |
|
Modern
State Capitalism |
·
Faster and better reaction of
countries with state capitalism in the crisis. ·
Modern PEs are profit-oriented,
rather than social-oriented. ·
In PE work professional managers,
and not politically appointed. |
|
Cons of
state capitalism |
·
Violation of the principle of
competitive neutrality - privileged access of PE to limited resources,
discrimination of the private sector. ·
The ineffective and often corrupt
management of state assets. ·
Often the lack of clear boundaries
in business between PEs and private companies. ·
The absence of practices of
dialogue between the Government and private business. |
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2.
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