2023-09-14 15:23

State and Business: New Priorities for Kazakhstan's Stable Development

The meeting between the Head of State, Kassym-Jomart Tokayev, and representatives of the business community has become a pivotal event in Kazakhstan's economic development strategy...

The President emphasized the importance of establishing new relations between the government and entrepreneurs, aimed at fostering economic growth and safeguarding the interests of both parties.

New "Social Contract"

One of the main highlights in the President's speech was the emphasis on the need for a new "social contract" between the state and entrepreneurs. This contract envisions creating favorable conditions for business development from the state's side and ensuring guaranteed protection of private property. In turn, entrepreneurs commit to conscientiously fulfill their obligations, including paying taxes, investing in the economy, and creating jobs.

2. Balancing State and Business Interests in Asset Recovery

The President also discussed the law on asset recovery, aimed at consolidating efforts to recover funds dishonestly transferred abroad. He underscored that this law contributes to the economic revitalization and prevents social stratification. The President called on businessmen to participate in the implementation of major projects in various sectors, utilizing their expertise, financial resources, and global connections. "If the capital acquired earlier works not only for the benefit of the owner but also for the good of the national economy, for the prosperity of Kazakhstan – this is a strong argument to eliminate questions about the origin of money," emphasized the President.

3. Fair Taxation

The head of state also emphasized the importance of ensuring fairness in taxation, which should stimulate the economy. He expressed concern that fiscal authorities involve entrepreneurs in legal disputes and called for enhanced measures to rectify this situation. The President noted disparities in tax revenues and urged an increase in the number of active taxpayers by making taxation more advantageous and simpler.

4. Industrialization and Production Support

The President outlined industrialization as the foundation of a sustainable economy. He highlighted that the manufacturing industry should actively explore the segments of middle and upper levels. However, the low survival rate of businesses (only a quarter of companies remain in the market in the second year after opening) indicates imperfections in the business climate in the country. The President expressed confidence that stimulating industrialization would contribute to the diversification of the economy.

5. Development of the Oil Service Industry

The President emphasized the importance of developing the oil service industry to stimulate economic growth. He noted that the design of major oil and gas projects is currently done abroad, limiting the access of Kazakhstani companies to participate in them. The President called for relocating project design offices to Kazakhstan and involving local engineers and companies in project implementation.

6. Accelerating the Development of Small and Medium-sized Enterprises (SMEs)

The President expressed concern about the insufficient development of SMEs in the country. He highlighted that medium-sized enterprises are more mobile and adapt faster to market conditions. However, in Kazakhstan, there are no incentives for small businesses to transition to the medium segment. The President called for creating conditions to support medium-sized businesses, including providing financial assistance and granting preferential access to government tenders.

The new stage in the relationship between the state and business in Kazakhstan promises to create a favorable environment for entrepreneurial activity and contribute to the sustainable economic development of the country. The state and businesses, working in collaboration and observing common interests, can achieve great heights and create favorable conditions for the prosperity of the country and its citizens.