Baigabulova K.K., Candidate of Economic Sciences

        Kozhayeva D.

Eurasian National University named after L.N.Gumilyov, Astana, Kazakhstan

FEATURES OF ANTI-CRISIS POLICY

 

         The anti-crisis policy of the state aimed at overcoming the decline in investment during the crisis and depression,

 restructuring production and financial restructuring of enterprises. For these purposes tactically and strategically solutions are developed and accepting. Tactical decisions are usually operate on relatively small amounts of financial resources and do not mean a decisive refusal from the earlier conducted investment policy. Strategic decisions operate with largest amounts of financial resources and may lead to a decisive rejection of any previous conducted crisis management and financial policy, extend to substantial changes on the expected revenues and rising financial risks.  

            Strategic decisions of anti-crisis policy should also focus on the development and support of small and medium businesses. For this reason, following are needed:

         a) The establishment of the regulatory and legal framework for SME support;

         b) Grading up the system of financial support;

         v) The foundation of an information management system;

         g) Assistance of foreign trade activities of small businesses;

         d) Training, retraining and skill development of personnel;

         e) Production and technical assistance.

 The anti-crisis policy can be prosperous under the following conditions:

         a) Political and socio-economic stability;

         b) Steadiness and firmness in the law, especially in the tax law;

         v) Diminution of inflation,

 since long term investments is not possible at high interest rates on bank deposits, which is unavoidable in periods of high inflation;

         g) Creation of market infrastructure.

            In its turn, the foundation of such conditions is futureless without the initial investment in the real sector of the economy. Inasmuch as, initial investments lead to further investment and multiple repeated increase in investment as a whole on the national economy

 [the principle of a multiplier (multiplier) (Ê = 1 / S, à S - marginal propensity to savings)]. Here a chain reaction operates:

 any investment will spend part of their income on consumer goods, to increase demands, which enables other production processes, thus stimulated the demand for capital investments, which causes secondary employment and growth in demand. 

         However, to implement this, it should result in terms of increasing public demand for consumer goods. This means, that the funding should be made at the expense of public debt, not from taxation, because the tax increase reduces the purchasing power of the population. In addition, the second condition is needed - it is more or less stable prices, since price increase also causes a reduction in the purchasing power of the population and promotes investment decline.

         Investments are in particular depending on the level of growth in sales and income.

 This dependence is expressed by the principle of acceleration, according to which the fixed capital utilized in enterprises, depends on the level of income and sales, i.e, period of prosperity could end in three cases:

         a) There is a reduction in sales of consumer goods;

         b) Sales are settled down on the same high level;

         v) Sales are growing, but more slowly than before.

         The occurrence of any of these situations may reduce production in industries producing machinery, equipment, which will cause a decrease in income and demand for the products of other industries, i.e will lead to further multiply changes in incomes and expenses.

         The current economic situation requires a search for new ways of increasing the effectiveness of anti-crisis management of the national economy, analyze the causes and factors impeding its development. Kazakhstan's anti-crisis management science and practice has not yet developed a generally accepted approach to crisis management of the national economy. There are different points of view with regard to the content of crisis management, theoretical and practical aspects of its debatable and insufficiently developed, there are differences in conceptual and methodological approach to the study. There is no consensus in determining the nature, role and place of crisis management in the reform of Kazakhstan's economy, guidelines and applications, mechanisms for its implementation. The role of crisis management in the effective growth of the national economy insufficiently investigated and, basically, is posed in nature and needs further comprehensive study. All of this suggests the need to address the problems associated with the development of theory and methodology of the crisis management of the national economy and their use in the practice of state bodies. For example, in Kazakhstan, the government allocated 130 billion tenge, to help to vulnerable groups do not lose their own homes, pledged to banks. Money should be mastered within 9 months, and this term expires in March-April next year. Funds allow for the translation of foreign currency loans in tenge, to refinance the principal debt at lower interest rates, and even the entire amount of the debt to the bank will be exempt from fines, penalties and fees.

         Certainly, GNP has some drawbacks. For example, GDP does not fully reflect the real economic well-being of society. This is due to the fact that in almost all countries there is no reliable statistics of such activities, as home care for the sick and children, home improvement, tuition, which will certainly increase the welfare of society. In GNP not counted negative sectors of the shadow economy, adversely affects the welfare of the society, such as selling drugs, smuggling, and racketeering. Further, the GNP does not include homework, which increases the well-being, but it has a non-market character. GNP also does not include assessing the adverse results expansion such as depletion of resources, violation of environmental ecology. And also GNP does not take into account the particularity of given country which affects the cost of living, production depending on climatic conditions, for example. And, at last, in GNP is not estimated the free time of population, which also indicates the economic well-being of society.

Therefore, the anti-crisis policy dictates to each country their way out of the crisis situation.

 

   

Literature:

 

1. Vechkanov G.C., Vechkanova G.R., “Modern economic Encyclopedia”, 2006y.

2. Makkonell Ê., Bruy S., «Economics» 2008y.

3. An analysis of the dynamics of the GNP of the Republic of Kazakhstan for the years of independence, www/allbest.ru

4. “Strategy of Industrial and Innovation Development of Kazakhstan for 2003-2015”.

5. Resolution of the Government of the Republic of Kazakhstan dated July 17, 2003 ¹ 712-1 "On Approval of the Action Plan for 2003-2015 on implementation of the Strategy of Industrial and Innovation Development of Kazakhstan for 2003-2015" (as amended by the Government Resolution of 29.12.03, ¹ 1341; on 22.01.04, ¹ 68; on 18.11.04, ¹ 1218; ¹1257 from 03.12.04).

6. The program of the Government of the Republic of Kazakhstan for 2006-2008 dated 16.02.2006.