jsc economic research institute
DESCRIPTION
The Economic Research Institute was funded by Government of Kazakh SSR decree in May 1961 according to the state plan of Kazakh SSR. Ministry of Economic Development and Trade of the Republic of Kazakhstan is a sole shareholder. The Institute has 7 research centers which major areas of research are: macroeconomic analysis and forecast, applied economical and mathematical research, economic research expertise, strategic elaboration and economic research, performance evaluation of public bodies’ activities, entrepreneurship development and regional policy.TRANSCRIPT
The role of the Economic Research Institutein socio-economic development of Kazakhstan
KEY HIGHLIGHTS
Kazakhstan: Country Overview
GDP per capita: US$ 12 000
GDP growth: 5% in 2012 and projected 6% in 2013
Currency: Tenge, KZT (US$1 ≈ KZT147)
Sovereign Credit Ratings: Standard & Poor’s ― BBB+/Stable (achieved rating
upgrade in November 2013) Moody’s ― Baa2/Stable Fitch ― BBB+/Stable
2
Area: 2.7 million square km (1.1 million square miles) 9th biggest country in the world
Capital: Astana
Population: 16.9 million people at 01 March 2013
Language: Kazakh is the official language, Russian is of
inter-ethnic communication
Key ethnic groups: Kazakh (63.1%), Russian (23.7%)
Stable political and macroeconomic environment:
GDP grew from 11 billion U.S. dollars in 1993 to 203 billion U.S. dollars by the end of 2012.
Competitive geographic location:
Located at a unique cross-roads between Europe, three BRIC countries (Russia, India, China) and the Middle East
KEY MACRO STATISTICS
2009
2010
2011
2013
2014
2017
Congress of World Religions(since 2003 every 3 year)
OSCE Summit in Astana
Organization of Islamic Cooperation
Astana Economic Forum (since 2007, every year)
47th Annual Meeting Board of Governors ADB
EXPO 2017
2008
Eurasian Media Forum (since 2002 every year)
7th Winter Asian Games
The 7th World Islamic Economic Forum
World Anti-Crisis Conference
Major Hosting Events
Annual Meeting Board of Governors EBRD
WORLD WINTER UNIVERSIADE ALMATY 2017
Russia
Italy
Slovak Republic
Kazakhstan
France
Australia
Hong Kong
Singapore
0 20 40 60 80 100 120 140
120
87
48
49
29
15
2
1
KAZAKHSTAN GLOBALLY
Ease of Doing Business: 47/183
Global Competitiveness: 51/144
Source: Global Competitiveness Report 2012-13, WEF
Source: Doing Business 2012, WB
Tajikistan
Ukraine
Russia
Kazakhstan
Turkey
China
United States
Switzerland
0 20 40 60 80 100 120
100
73
67
51
43
29
7
1
Legatum Prosperity Index: 46/142
Source: Legatum Prosperity Index Report 2012
Turkey
Tajikistan
Russia
Kazakhstan
France
Germany
United States
Norway
0 10 20 30 40 50 60 70 80 90 100
89
86
66
46
21
14
12
1
Investments
6
FDI IN KAZAKHSTAN, million US$ TOP 10 INVESTORS IN KAZAKHSTAN, 2006 – 2012
Sources: the National Bank of Kazakhstan, the Agency on Statistics
Total FDI inflows US$ billion
Total, US$ bn
Netherlands 43,1
USA 25,3
UK 11,7
France 10
China 7,8
Russia 6,4
Switzerland 6,3
Italy 5,8
Canada 5,5
Japan 4,4
According to the World Bank, Kazakhstan is among the top twenty the most attractive countries in the world for investment .
Since its independence, Kazakhstan has attracted over US$ 160 billion in FDI, half of which has been invested during the last three years.
Destination to 80% of total FDI per capita to the countries of Central Asia.
The largest investors to Kazakhstan’s economy are the Netherlands, USA, UK, France and China.
The volume of investment in fixed assets consisted of about 36 billion dollars in 2012. Annual investment per capita is amounted to 2.2 thousand U.S. dollars.
KEY HIGHLIGHTS
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
2,7814,557 4,106 4,624
8,3176,619
10,624
18,45319,760
19,017 19,059
21,05622,469
INVESTMENT IN FIXED ASSETS
2007 2008 2009 2010 2011 2012
0
10000
20000
30000
40000
50000
60000
0
500
1000
1500
2000
2500
27,682.0
35,005.731,109.6 31,583.2
34,171.1 36,585.4
1,788.0
2,233.7
1,932.9 1,935.02,063.8
2,194.0
Инвестиции в основной капитал, млн. долл
Инвестиции в основной капитал на душу населения, долл.
Investment in fixed assets, mln. US$
Investment in fixed assets per capita US$
STAGES OF DEVELOPMENT
Stages of development
Reforms
Dynamic growth
Economic reforms
Industry development
Investment
1991 - 2000
State investment
Industrial PolicyIndustrial
policy, Industry zones
Competitiveness
2001 - 2010 2011 - 2020
Quality of production
and efficiency
Economy Market transformations
Priority sectors
Innovation policy
Scientific Technological Infrastructure, techno parks
Economy modernization, human capital
Public-private partnership
Foreign and state investments
Creation of favorable investment climate,
Clusters
Protection of internalseсtors
Reference point on basic researches, Reform in Science
Technology transfer, R&D
2021 - 2050
Innovation stage
Smart economy
Knowledge economy
Private sector, world finance
Innovation clusters, International cooperation
National innovation system
9 special economic zones are created - points of growth with special conditions for investment, technology parks, and industrial zones.
REGIONAL BUSINESS HUB
• 0% Corporate Income Tax until 2020-2025 with possibility for extension
• 0% for land and property tax until 2020-2025 with possibility for extension
• VAT– 0% (for products consumed in SEZ) until 2020-2025 with possibility for extension
• Increase of marginal rate of depreciation for tax on the production of software to 40%
• For SEZ “Innovation technopark” – social tax is 0% for 5 years, under certain conditions
• For SEZ “Innovation technopark”– depreciation rate for software increased to 40 %
• Provision of free land in SEZ for a period of up to 10 years from registration time as SEZ resident
• Simplified procedure for the recruitment of foreign labor
SEZ «Burabay»
Development of Tourism
SEZ «Qaraghandy»
Development of chemistry and petrochemistry
SEZ «Pavlodar»
Development of Metallurgy
SEZ «Astana - New city»
Development of capital’s administrative center
SEZ «Ontystik»
Development of Textile
SEZ «Khorgos»
Development of logistics
SEZ «Sea Port Aqtau»
Development of new sector
SEZ «PIT»
Development of IT
SEZ «Petrochemical park»
Development of petrochemical production
FISCAL INCENTIVES in SEZs
NON-FISCAL INCENTIVES
Gate to China, India and South-East Asia
Gate to Russian and European market • Strategic location between
European and Asian business centers
• Main transit area in the region
• Surrounded by attractive markets – China and Russia
• 3 out of 4 Eurasian rail corridors go through Kazakhstan
Location features
NEW SILK WAY: Gateway between Europe and Asia
• The creation of modern transportation and logistic centers provide access to international markets and international infrastructure integration.
• The construction of the international highway through the territory of Kazakhstan “Western Europe – Western China” is due in completion in 2015.
• In the East “Khorgos-Eastern Gate” project is aimed at improving trade relations with the rapidly growing region of South-East Asia and China.
Strategy “Kazakhstan-2050”
PROSPECTS OF KAZAKHSTAN
• To enter the club of TOP 30 developed countries of the world in 2050
• Social modernization on the principles of inclusive development, quality of life and development of human capacity
• An innovation-oriented model of development based on the principles of "green economy“
• Balanced internal regional development
• Active international collaboration and cooperation
MISSION
ECONOMIC RESEARCH INSTITUTE
PROMOTING ECONOMIC PROSPERITY AND IMPROVING KAZAKHSTAN'S COMPETITIVENESS
Economic Research Institute was funded by Government of Kazakh SSR decree in May 1961 according to the state plan of Kazakh SSR Ministry of Economic Development and Trade of the Republic of Kazakhstan is a sole shareholder
STRUCTURE
ECONOMIC RESEARCH INSTITUTE
The Institute has 7 research centers focused on major areas of research
Scientific and methodological support to the system of public planning;
Assessing the competitiveness level of Kazakhstan economy by the methodology of International Institute for Management Development.
Analysis of impact and estimation of macroeconomic effects of involving Kazakhstan into integration processes.
Influence of provisions of the bill on macroeconomic performance;
Influence of provisions of the bill on social development;
Influence of provisions of bill on the development of entrepreneurship;
Influence of provisions of bill on competitiveness parameters of sectors and economic security of the country.
State support of private entrepreneurship in the Republic of Kazakhstan;
Analysis and estimation of industrial and innovational policies and their impact on investment climate.
Elaboration of conceptual propositions on regional policy.
CENTER FOR STRATEGIC ELABORATION AND ECONOMIC RESEARCH
CENTER FOR ECONOMIC RESEARCH EXPERTISE
CENTER OF MACROECONOMIC AND APPLIED ECONOMICS - MATHEMATICAL RESEARCHDevelopment and maintenance of economical
and mathematical models; Conducting applied calculations in the sector of
economics.
CENTER OF THE WORLD ECONOMY AND INTEGRATION RESEARCH
CENTER FOR PERFORMANCE EVALUATION OF PUBLIC BODIES’ ACTIVITIES
Expert - analytical, methodological and organizational support to the System for annual performance evaluation of public bodies.
CENTER FOR ENTREPRENEURSHIP DEVELOPMENT
CENTER FOR SOCIAL AND REGIONAL RESEARCH
Founder of the "Eurasian Economic Club of Scientists“ Association
Organizer of the Astana Economic Forum
Member of the International Association of Regional Studies
Member of 3 Committees UN European Economic Commission
Member of the International School of Assessment
The main partner for research in the framework of UNIDO United Nations (UN)
Exclusive partner of the International Institute for Management Development
(IMD)
Partner of the Central Asian Regional Economic Cooperation (CAREC)
Partner of the Economic Cooperation Organization (ECO)
Official representative of the International Union of Economists of the Republic
of Kazakhstan
INTERNATIONAL COLLABORATION
INSTITUTE IS A PARTNER OF MORE THAN 80 ORGANIZATIONS OF THE WORLD
ECONOMIC RESEARCH INSTITUTE