The year 2010 became an important stage in the economic development of Kazakhstan. A new industrial program has started, which has at its main objective to develop a gradual transition to more high-technology products. There has been a Customs Union formed under which there are additional possibilities for investors, who implement their projects in Kazakhstan, to reach the developed Russian and Belorussian markets.
Economic geography of Kazakhstan consists of five large economic regions:
- North Kazakhstan — efficient grain economy, extraction of iron ore and coal, mechanical engineering, production of oil products and ferroalloys, and energy.
- East Kazakhstan — efficient nonferrous industry, energy, mechanical engineering and forestry products.
- West Kazakhstan is one of the largest oil and gas extraction regions.
- Central Kazakhstan — efficient ferrous and nonferrous industries, mechanical engineering, and cattle breeding.
- South Kazakhstan — cotton, rice, wool, grain, fruits, vegetables, grapes; efficient nonferrous industry, instrument manufacturing, light manufacturing, food production, fish farming, and forestry products.
The main business partners are the CIS and Baltic countries. Russia is the largest business partner. Kazakhstan has effective trade relations with Germany, Turkey, Switzerland, the Czech Republic, Italy, China, the U.S.A, Great Britain, South Korea, etc. As it is seen, Argentina never played a main role in foreign trade of the Republic of Kazakhstan.
To date, in the Republic of Kazakhstan investment projects occupy an important role in the economic development of the country. At present many programs are submitted, considered, implemented in different areas of various investment projects. But, of course, not all of them produce the same effect that was expected.
Currently, the following major programs include a variety of projects: «The State Program on Forced Industrial — Innovative Development of Kazakhstan for 2010–2014», «Productivity — 2020», «Road Map for Business — 2020», etc.
Central to the projects is the financing of the investment projects, in which the justification strategy involves selecting methods of financing, identifying sources of investment financing and structure.
The main donors in Kazakhstan are «Entrepreneurship Development Fund» Damu» JSC, " Investment Fund of Kazakhstan» JSC, " Development Bank of Kazakhstan» JSC, " Samruk — Kazyna» JSC, " National Agency for Export and Investment «KAZNEX INVEST» JSC and etc.
The main methods of financing investment projects are self-financing, corporatization, and other forms of equity financing; loan financing (investment bank loans, bond issuance); leasing; government funding; mixed funding (through various combinations of these methods); project financing.
Kazakhstan gains a considerable share of profit from the export of oil and other mineral resources, moreover, economic policy of Kazakhstan is focused on shifting away from increasing mined deposits, extraction volumes, and the export of raw materials and to more output of finished products with high value added.
Dr. Paulo Botta
National University of La Plata, Argentina
Dr. Akbota Zholdasbekova
Academy of Public Service, Institute of Diplomacy, Kazakhstan