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How to solve seven economic problems of Kazakhstan

Seven main economic problems needed to be solved urgently were listed by LS Director of the Institute for Economic Policy and member of the National Council of Public Trust (NCPT), Kairbek Arystanbekov.
How to solve seven economic problems of Kazakhstan

The expert believes that it is necessary to adjust the model of the country's economic development and put in order the instruments of economic policy. “There is a concept in quantum physics: in order to transform chaos into a system, it is necessary to make all the particles of this chaos move in one direction. By particles, I mean the areas and components of economic policy: budgetary, monetary, tax, and so on. There is no orderliness in these areas, they move in different directions, no end result. This is a serious problem,” the scientist noted.

Thirdly, according to Arystanbekov, it is necessary to improve the quality of economic policy, which has fallen even before the pandemic and quarantine. Fourth, we need to adjust the foreign economic policy considering the interests of the balance of payments. The director of the institute explained that before the crisis, a number of indicators of balancing and aggregate items showed a deficit, so the adjustment was needed in this area.

Fifth, we need to radically fight against the shadow and non-observed economy. The share of shadow economy before the pandemic, according to Arystanbekov, was 30% of GDP. “Instead of brining the discipline, we continue to massively use the National Fund money. This raises serious questions,” Arystanbekov said.

Sixth, the chief of the institute proposes to solve the problems of the conceptual and structural crisis in the country. Seventh, it is necessary to neutralize the elements of the "Venezuelan" and "Kazakh economic disease". “We are continuing the process of nationalization through the quasi-public sector. This must be stopped, as business becomes state-owned. For as long as the level of the government in this sector is high, it is premature to expect high rates of economic growth,” he said.

In his conclusion, Arystanbekov noted that there was still a lot of work to modernize this area within the framework of the NCPT.

Source: https://lsm.kz/ekonomiki-kazahstana-nazval-ekspert

Photos are from open sources.

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