Economics / 4 Investment activity and capital markets.

Daulieva G.R – Candidate of Economic Sciences, Associate Professor, chief lecture at the «finance» department (Al-Farabi Kazakh National University)

Abdikadyrov Nurlan – 2nd year student of «finance» Master degree.

Al-Farabi Kazakh National University, Almaty, Kazakhstan

Investment policy and its role in the modernization of the economy of Kazakhstan

Investments play a crucial role in maintaining and enhancing the economic potential of the country. This, in turn, is beneficial to the activities of enterprises, leading to an increase in the gross national product, increases the activity of the country on the international market.

It should be noted that today's business environment is not conducive to attracting investment in the real economy.

That investment has a key place in the process of large-scale political, economic and social reforms, that aimed at creating favorable conditions for sustainable economic growth. From the standpoint of the essence of the problem of reforming the economy to increase investment activity and improve the investment climate comes as one of the key.

Kazakhstan Investment Policy is intended to provide a favorable investment climate and will be based on the principles of economic pragmatism: profitability, return on investment and competitiveness, as well as ensuring the economic potential through the development of new points of economic growth and to identify new market niches [1].

Attracting investment is one of the most important factors determining the growth and competitiveness of the national economy. Inflow of foreign investments into the economy of the host country accelerates the development of enterprises, improve the quality of human capital, create new jobs, attracting advanced technologies.

The priority sectors of Kazakhstan's economy for attracting investment are raw export-oriented and high-tech industries, infrastructure development, and the development of alternative and "green" energy technologies.

Attracting investments into the economy of Kazakhstan is carried out under the terms of technology transfer and the creation of high-tech industries, which requires a more competitive conditions for investment activities and business.

In order to ensure the competitiveness of Kazakhstan's investment business climate on the world stage will continue to work to improve it in line with international best practice. Kazakhstan's legislation in the field of investment activities is harmonized with the standards of the Organization for Economic Cooperation and Development. In this case, one of the objectives of the investment policy is to maximize the benefits that enable the integration processes in the context of globalization. The investment policy of Kazakhstan is conducted with the participation of Kazakhstan in the Customs Union and the forthcoming accession to the World Trade Organisation [2].

There is held working, which is to conclude agreements with foreign states on encouragement and reciprocal protection of investments, as well as the avoidance of double taxation. Measures were taken to improve the systematic position of Kazakhstan in the ranking «Doing business» and improved performance of the Global Competitiveness Index of the World Economic Forum.

Addressing the people of Kazakhstan in his message "Kazakhstan's way - 2050: The overarching goal, common interests, common future" President of the Republic of Kazakhstan N.A. Nazarbayev - the leader of the nation, said that domestic business is the driving force behind a new economic course. The share of small and medium-sized businesses in the economy should grow by 2030 by at least half.

Firstly, we need to create conditions so that people could try their hand at business, to become a full participant in the country's economic transformation.

Secondly, it is important to raise the overall level of business culture and stimulate entrepreneurial initiative.

The challenge today - to create the necessary conditions and prerequisites for the transition of small businesses and individual entrepreneurs in the category of medium. [4]

In order to develop public-private partnership, the Law of the Republic of Kazakhstan "On Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on the introduction of new forms of public-private partnerships and expand their scope of application", which involves the introduction of new forms of public-private partnerships (institutional and contract), expanding its scope through the branches that do not generate sufficient cash flow (science, education, health, sport, utilities), high-tech industries (information technology).

Also introduced new models of contractual public-private partnership that will allow the construction of all types of contracts used in international practice. Principles of public-private partnerships are also used in the delivery of public ownership in the management and maintenance, property lease. Attractive conditions for private sector investment projects of social orientation, created by compensation not only investment, but also the operating costs of the concessionaire and the payment of management fees. [3]

In the medium term, policy on innovation should be aimed at building a national innovation system that ensures increasing the competitiveness of the economy through the creation of a system of innovation and technological development, innovation development of industries and regions, creating conditions for the development of high-tech small and medium-sized businesses and increase the scientific and engineering potential of the country, as well as infrastructure development of innovative clusters. Achievement of objectives will be implemented through the implementation of the Program for the development of innovations and promote technological modernization in the Republic of Kazakhstan for 2010 - 2015 years.

In connection with the allocation of funds for the implementation of industrial and innovative projects and the planned increase in funding innovative grants is supposed to create the Commission to monitor the use of budgetary funds allocated for the implementation of industrial and innovative projects. Also developed proposals for the introduction of new mechanisms to support beginners and young entrepreneurs introducing innovations.

Among the many different types of innovation (scientific, technological, organizational, managerial, social) leading place of scientific and technical innovations that make the latest scientific ideas into industrial practice.

Innovation in the enterprise - a manifestation of scientific and technological progress at the micro level. They contribute to the renewal of the range of products, improve its quality to meet the needs of customers and maximize profit organization [5].

The mechanism of innovative enterprise is a way of organizing innovation, combined motives, forms and methods of economic management system innovations, which develops under the influence of market conditions and government regulation. The main motive of innovation becomes the potential profit, as a result of competitive advantage and minimize costs, and the ability to create a new market or a new niche in the market, that is to create new demand due to the appearance on the market of innovative products or differentiation of existing products. Economic forms and methods of managing the innovation process are determined to a large extent influenced by the state.

The government plays an active role in attracting both domestic and foreign investment. Create favorable conditions for investment, expand channels of attracting investment by improving the investment attractiveness of special economic zones, industrial zones and the development of public-private partnerships [7].

To do this, created a system to attract investment, which will include both financial and non-financial incentives and institutional arrangements with investors, including investment preferences and implementation of a flexible tax policies conducive to reducing the tax burden on businesses and the direction of the released funds to own development.

Investment resources are distributed very unevenly among regions, mainly concentrating in large metropolitan areas and the resource-rich regions. Other regions and most do not have the ability to use the investment potential.

Thus, in the present conditions of economic development, to address the problem of lifting the regional economy and the long-term economic growth requires an integrated approach to the problem of attracting investments and investment activity of economic entities. Therefore of paramount importance analysis of the sources of potential investment, a reliable estimate of the real possibilities of mobilization, as well as solutions to problems involving them and developing strategies to effectively attract investment.

References

1. Davilbekov H. The role of foreign investment in the economy of Kazakhstan .// Al-Paris 2010g.№2 / 3

2. Atankulov B., M. Isenov Lights and shadows of the investment policy. // Al-Pari, 2010g.№1 / 2

3. Toyganbaev P. Improved utilization of foreign investment. - Almaty, 2000.

4. Message from the President of Kazakhstan, NA Nazarbayev - Leader of the Nation, "Kazakhstan's way - 2050: The overarching goal, common interests, common future." Acorda. December, 2013.

5. Vakhrin PI Organization and financing of investments. Banks and stock exchanges. 1999.

6. Balabanov MT Fundamentals of Financial Management. Textbook. Finance and Statistics, 2010.

7. Nurseitov AA Foreign direct investment as a factor of economic development in the Republic of Kazakhstan. In the book: the national economy of Kazakhstan at the turn of the new century, Almaty. Economy 2004.