President’s state-of-the-nation address indicates new course of Kazakhstan’s economic development, experts say

President’s state-of-the-nation address indicates new course of Kazakhstan’s economic development, experts say

President’s state-of-the-nation address is aimed at solving of Kazakh formula for economic success, opined Bekzhan Sadykov, Senior Research Fellow of the Department of Social and Economic Research at the Kazakhstan Institute for Strategic Studies.

“One of the issues was the further development of the private sector and the improvement of the business climate in general. In the new economic conditions, many countries switch to the increased support of the private business, which has suffered the most from the effects of restrictive measures. In this sense, Kazakhstan is no exception. Today, reactivation of small and medium-sized businesses is required to maintain the stability of the economy and overcome the negative consequences caused by the pandemic and having a negative impact on the well-being of citizens. Subsidizing interest rates on loans, simplifying tax administration and other announced measures to support business will maintain stability in the labor market and save household income. This is especially important in the post-coronavirus period. Aiming to increase the share of SMEs from 29.5 percent in 2019 to 35 percent in 2020 signals the strengthening of the institutional importance of the private sector in the near future and the need for further formation of market economic relations,” Bekzhan Sadykov said.

Senior Research Fellow of the Social and Political Studies Department at the Kazakhstan Institute for Strategic Studies, Slyamzhar Akhmetzharov, said that the growth of human capital should become one of the fundamental elements of the economic course in the new realities.

“Indeed, more and more countries are realizing the relationship between investment in human capital and the economic prosperity of the state. In this sense, Kazakhstan has always paid special attention to the issue of training highly qualified specialists,” noted the expert.

Member of Mazhilis of the Kazakh Parliament Azat Peruashev believes that the level of SMEs development in the raw material regions of the country is 2.5 times lower than the national average. This suggests that local resources are not being used. He is confident that subsidizing measures for the subjects affected by coronavirus will help solve several problems. In particular, banks often refuse entrepreneurs to refinance loans at new rates due to the lack of any guarantees. Now the state is ready to solve this issue.

“A number of outlined prospects, such as increasing the share of SMEs in the GDP to 35 percent, including by supporting medium-sized businesses, is a very significant statement. Until now, when talking about supporting SMEs, as a rule, all measures, including moratoriums, concerned micro and small businesses. Meanwhile, medium-sized businesses, albeit being the main part of SMEs, have always been overlooked. An instruction was given to systematically support medium-sized businesses, including growing them to a state of exportability,” stressed the MP.

On September 1, President of Kazakhstan Kassym-Jomart Tokayev delivered his annual state-of-the-nation address to the people of Kazakhstan during a joint session of chambers of the Kazakh Parliament.