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Economics: the strategy and practice

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Vol 16, No 2 (2021)
5-20 1561
Abstract

In Kazakhstan, in recent years, there has been an intensification of urbanization processes due to the uncontrolled migration of rural population to cities. In this regard, there arise the number of problems related to ensuring the quality of life in cities.
The purpose of this article is to assess the quality of urban space and its role in sustainable economic development on Almaty example. When assessing the quality of space in Almaty’s districts, there were calculated the groups of indicators that reflect the basic characteristics of a modern city: safety, comfort, ecology, diversity, modernity, business environment, quality of life, social development and human capital. Data from open sources were used: Department of statistics of Almaty, Committee on legal statistics and special accounts of the General prosecutor’s office of the Republic of Kazakhstan, Department of emergency situations of Almaty.
The study concluded that the spatial development of Almaty is uneven. Four types of territories were identified in the city structure: the historic center, integrated with the adjoining business center; microdistricts of mass housing development (sleeping areas); old areas of low-rise buildings and private households; new annexed areas that are characterized by unregulated individual housing construction. As a result of the analysis, it was concluded that the quality of urban space is an important factor in the sustainable economic development of the city, in particular business.
It was also concluded that it is necessary to develop a universal system of urban development indicators for use on an ongoing basis by representatives of business and the Akimat of Almaty in order to more fully identify the problems of urban space development, develop and implement strategic plans for the city’s development, as well as urban researchers.

21-31 1402
Abstract

The purpose of the work is to substantiate the basic methodological provisions that ensure the development of an effective model of state strategic planning and management. The article analyzes the meaning and significance of the currently used concept of “strategic planning”. As a result, it was concluded that in countries with a centralized unitary form of government, it is more correct to use the term “state strategic planning and management” rather than state strategic planning. “ This is due to the fact that regulation of the activities of enterprises in the corporate sector is carried out by indirect methods. In relation to organizations that are funded from the budget, management is carried out by economic and organizational and legal methods of direct action.
The article proposes and substantiates a fundamental model of state strategic planning and management. In addition to traditional elements, which include a mission, a system of goals, a set of means to achieve it, an organizational structure and management mechanisms, it includes an organizational culture. The latter is one of the main and effective strategic tools that ensure consistency in the work of management and the team to achieve established goals. However, in the real practical activities of state bodies, this important element is not included in the regulatory legal documents governing the procedure for the development and implementation of planning, program and project documents. The article provides a system of principles, the requirements of which must be observed when developing strategic documents and the methods corresponding to them. Also, based on the analysis of foreign experience, in particular of the OECD countries, limitations and typical mistakes in the use of strategic planning and management are given.

32-45 733
Abstract

The rapid spread of the COVID-19 pandemic in the world in the second half of 2020 caused a decline in the country’s external economy. The demand crisis in most sectors of the world economy triggered a global collapse of stock market indices and a sharp drop in energy prices.
The period of the pandemic also affected the financial behavior of investors. Recent research on the impact of the COVID-19 pandemic confirms the relationship between financial attitudes and behavior, which contains more questions than statements. In this article, the authors studied the behavior of investors during the crisis (COVID-19). The article analyzes the method of an artificial neural network (ANN). The study will help academics and policymakers understand investor behavior and their impact on financial reporting performance.

46-53 937
Abstract

In the modern world, in the conditions of economic instability and fierce competition, companies need to have effective tools that can provide an opportunity to study the current financial condition, compare cash inflows and outflows, approve the right decisions that contribute to the subsequent formation and development of the enterprise, as well as optimize management costs. In a company, such an important tool for financial planning, as well as control, is budgeting.
This article discusses the tasks, goals, methods, disadvantages and advantages of budgeting, illustrates the full continuous cycle of budget management and the stages of development of the concept of budgeting. In addition to the theoretical aspects, the article considers the empirical and methodological aspects. The purpose of this article is to generalize the theoretical provisions and develop the organizational and methodological aspects of the application of budgeting and the impact of effective budgeting on the development of the overall company. The article uses complex and systematic approaches to the processes and phenomena under study, which is achieved through the methods of analysis and synthesis, review and collection of information, statistical analysis, scientific abstraction and visualization.
In the conclusion of the article, the conclusions are made, that a properly formed concept of budgeting, improvement of methods and elements of the budget process will make it possible to manage the capital, as well as a single commercial, and the company as a whole, establishing the sequence of business types, terms and trends of restructuring. This will allow the owners of companies to adapt their business in time to all possible changes in market conditions.

54-61 1012
Abstract

The COVID-19 pandemic has accelerated the development of FinTech and the transition to cashless payments of the population of various countries, including Kazakhstan. For provision of cashless payments there are created platforms which work in NFC & MFS systems, they protected by security protocols (Secure Element (SE)) and allow to store confidential user data. Changes in the business model of banks have led to the emergence of a new format of banking products and services that can be used through smartphones (the main operating systems Android and iOS). The goal of the study is to analyze the dynamics of the impact of the COVID-19 pandemic on the use of cashless payments through national payment systems in Kazakhstan. Based on the goal, a null and an alternative hypothesis were set, of which the second was confirmed in the result. Research methods used to write this article are economic and statistical analysis and synthesis, graphical method, analysis of the series of dynamics. The data for the study was taken from the NBK Statistical Bulletin: data on cashless payments through the Interbank System of Money Transfer (ISMT) and the Interbank Clearing System (ICS) for the period from 2002 to 2020. The impact of the COVID-19 pandemic on the dynamics of the transformation of cashless payments made by using financial technologies has been proved. Recommendations for further improvement of the financial system are given. The development of national payment systems makes it possible to reduce the level of fraud in the financial sector, to increase the speed of cashless transfers and level out transaction errors. Study limitation: only national payment systems ISMT and ICS were used.

62-70 594
Abstract

This article examines the impact of non-tariff barriers (NTBs) reduction on Kazakhstan’s trade due to the creation of the Eurasian Customs Union (ECU) in 2010. The assessment of the effect of NTBs reduction was carried out using a dynamic gravity model and econometric PMG method. The synchronization of the system of phytosanitary norms and the approval of a unified system of customs regulation have reduced the cost of trade. These innovations have reduced NTBs between ECU countries, which should increase trade flows between countries.
According to the model’s estimates, the reduction in NTBs increased Kazakhstan’s imports from the ECU countries by 33% but did not have a significant impact on exports to these countries. That is, on average, Kazakhstani producers benefited less from joining the ECU than producers in other CU countries. These results confirm the findings of reports of international organizations that because of the creation of the ECU, non-tariff barriers between countries have significantly decreased. Unfortunately, Kazakh producers have not been able to take full advantage of the benefits of joining the ECU, and although NTBs between countries have decreased, total exports to ECU countries have not increased. At the same time, the reduction of barriers between countries allowed entrepreneurs from other countries to increase their exports to Kazakhstan (Kazakhstan’s imports) by 33 percent.

71-85 1476
Abstract

The article analyzes the global oil market, determines what factors and conditions affect its transformation. The situation in the oil market is developing in such a way that the price is the main indicator in the transformation of the world oil market. The article focuses on global oil production and global oil consumption, which are dependent on the price environment. That is, the conjectural factor that is most well-known in the development of the oil market and is associated with changes in world production (supply), consumption (demand), which dictates price offers. At the same time, there are significant price fluctuations and caused by other factors that affect the transformation of the world oil market, such as: economic factors, geopolitical factors, as well as technological factors.
The purpose of the article is to determine the transformational factors of the world oil market in the conditions of shock conditions that occurred in the conditions of price “collapses” in the market, leading to sharp and significant changes in the entire world economic system.
Methodological tools of scientific articles are based on an integrated approach of analysis of the world oil market based on scientific research methods, which include methods of system approach, comparative analysis, synthesis, empirical research - systematization, economic and statistical groups, as well as historical-logical method.

86-97 2075
Abstract

Вusinesses are the backbone of the national economy and play an important role for the effective functioning of the economy of any country in the world. The authors studied the experience of the United States and China, in which small and medium-sized businesses have been successfully developing for a long time, both during periods of economic growth and during periods of economic recession.
The purpose of the article is to study the features and conduct a comparative analysis of the organization of entrepreneurial activity in the United States and China, and, based on the experience of these countries, develop proposals for the effective development of entrepreneurship in Kazakhstan. The authors analyzed the dynamics and factors of the development of small and medium-sized businesses, the advantages and disadvantages of entrepreneurial activity in the United States and China, and identified the impact of the COVID-19 pandemic on entrepreneurial activity in these countries and in Kazakhstan. In the course of the study, various methods of scientific knowledge were used: data collection and processing, economic, comparative and statistical analysis, generalization, synthesis, induction, deduction. We collected and processed fresh quantitative data on the state and dynamics of the development of small and medium-sized enterprises in the United States and China in the period from 2011 to 2021.
Small and medium business is an integral and important part of the economic development of all countries of the world, the experience of countries such as the United States and China can be useful and interesting for the Kazakh economy. Entrepreneurship performs a number of important socio-economic functions for the country: providing employment, creating a competitive environment, supporting and introducing innovations, reducing social inequality, attracting natural, human, material and technical resources into the production and commercial process, stimulating economic growth and improving the well-being of people.
The authors, based on a study of the experience of entrepreneurial activities of two large leading countries of the world economy, have developed proposals that will contribute to the development of small and medium-sized businesses in the Republic of Kazakhstan.

98-106 7455
Abstract

The peculiarities of the regional development of Kazakhstan, the variety of production, the initial level of resources in different regions, various reforms of the market economy have led to the uneven development of the regions of Kazakhstan. A region or regional economy is a subsystem of the “national economy” macrosystem. And the national economy is the internal system of the global world economy. Regional development is development based on three characteristics and qualities: interrelated stability, proportionality and social orientation. Basically, the effective development of an individual region means the use of certain factors and potentials through the creation of value in a market economy. However, it is not possible to have a common development strategy for the whole regions. Because each region has its own conditions of development, economic and social potential. Therefore, these factors should be taken into account in the development of the regional economy. The main task of the regional policy of Kazakhstan is to increase the competitiveness of the region in a market economy, employment and living standards of the population of the region through the full use of its production and resource potential. The purpose of this article is to identify trends in the socio-economic development of the regions of Kazakhstan. The article defines the concepts of “region”, “regional development” as a system and gives their main characteristics. Trends in the socio-economic development of the regions of Kazakhstan were determined by grouping the regions of Kazakhstan on the basis of socio-economic indicators and analysis of statistical data and facts. In conclusion, it was noted that the socio-economic development of the regions of Kazakhstan is at a high level. Today, the socio-economic development of the regions of Kazakhstan is much higher than in previous years. This means that the development of certain regions means an increase in the quality of life, employment, economic growth of the country.

107-115 951
Abstract

The purpose of assessing the dependence of the Republic of Kazakhstan on food imports, as well as developing priority areas for the development of the livestock industry in the context of import substitution.
Research methods-the paper used methods of systematization of information from the analyzed literature sources, including: analysis, synthesis, structuring. The methods of expert assessments, questionnaires, Express surveys, and interviews were also used.
The main method for forming the information base of the study was used by the official data of state institutions of the Republic of Kazakhstan.
Results of the study-the current state of food supply in the Republic of Kazakhstan is analyzed. It is revealed that the export of food products in the country is significantly inferior to imports. In the nomenclature of the country’s imports, a significant share is occupied by livestock products, which reduces the competitiveness of domestic products. In order to ensure the country’s food security, aspects of animal husbandry development are proposed to form the potential for import substitution of the economy of Kazakhstan.
Conclusions: the productivity of domestic agriculture in general, and the development of the food and processing industry in particular – are important tasks of the state. The recommendations developed by the authors allow us to modify the economic mechanisms of state regulation of the agri-food market.

116-133 1075
Abstract

The purpose of the work is to study the factors and key areas of modernization of the agro-industrial complex of Kazakhstan. In the investigated problematic, the key issues are determining the factors and mechanisms that can affect both the current functioning of the agro-industrial complex and its modernization. The research methodology is based on the application of an institutional approach to substantiating the mechanisms of modernization of the agro-industrial complex. The information base of the study was the legislative and regulatory legal acts of the Republic of Kazakhstan.
The research is aimed at analytical generalization and systematization of multifaceted theoretical, methodological, applied research and scientific understanding of the factors and key areas of modernization of the agro-industrial complex. The strengths and weaknesses of the management systems of the agro-industrial complex of Kazakhstan are determined, taking into account the influence of external factors. The conceptual aspects of modeling the organizational and economic mechanism of functioning of the agro-industrial complex in Kazakhstan at the macro- and micro-levels are substantiated with an emphasis on the administrative (managerial), financial and economic and material and technical groups of factors. The study made it possible to identify the most significant factors in the modernization of the agro-industrial complex of Kazakhstan at the republican and regional levels. On the basis of the identified factors, the key directions of modernization of the agro-industrial complex are proposed and substantiated.
The conclusions of the study may be of interest to government authorities in the field of the agro-industrial complex in the process of developing the agro-industrial policy of Kazakhstan, preparing program documents for the development of the agro-industrial complex of the republic; as well as for scientists, doctoral students and undergraduates engaged in research on the topic.

134-144 1753
Abstract

The article is devoted to the study and analysis of the current state of the animal husbandry industry in the Republic of Kazakhstan in the context of regions. The indicators of the dynamics of the number of livestock of farm animals for the period 2015-2019 by regions, indicators of productivity in the industry, indicators of the volume of production of meat products are analyzed. The dynamics and structure of costs in the country’s livestock industry are also considered.
Today, one of the most pressing problems in the development of the agro-industrial complex is the low level of labor productivity due to low automation and digitalization of technological processes. The need to meet the demand for livestock products in the domestic market of the Republic of Kazakhstan, as well as to increase its export resources, poses a challenge for Kazakhstani science and practice to develop, scientifically substantiate and master modern technologies for the production of low-cost, environmentally friendly, competitive products of the industry. They should be resource-saving, aimed at maximizing the use and improvement of the genetic potential of farmed farm animals, adapted to the specific natural and economic conditions of the regions of the republic. The development and mastering of such technologies will make it possible to weaken the negative impact of the industry on the environment, reduce the cost of material resources, and effectively use the available land and water resources [5].
The main problems hindering the effective development of the country’s livestock industry are identified. The promising strategic directions for the development of this industry have been determined. From the point of view of experts of the financial organization, the country has good potential and opportunities to export its beef and pork to China, and the lamb of the Edilbay sheep breed to the countries of the Middle East.

145-153 1380
Abstract

In the article, the authors analyzed the changes in the main components of food security in Kazakhstan for 2020 to clarify the question of how the crisis associated with the Covid 19 coronavirus pandemic affected its level. The authors analyzed the main components of food security: they assessed the dynamics of changes in the physical and economic accessibility of food in the country, the quality and safety of products, sustainability and availability of resources, and also compared them with the average value of these criteria for 113 countries. A comparative analysis showed that the level of food security in our country exceeds the average level for the compared countries, and during the quarantine period Kazakhstan managed to increase these indicators, which indicates the effectiveness of the government measures taken to support the development of agricultural producers to ensure uninterrupted food delivery.

154-163 641
Abstract

The article deals with the issues of assessing the dynamics of sustainable development of the tourism economy in the Republic of Kazakhstan. Various points of view of domestic and foreign scientists and researchers to the study of the sustainable development of the tourism economy are analyzed. Based on the analysis of modern literature, the definitions are clarified and methods for assessing the dynamics of sustainable development of the tourism economy in modern conditions are supplemented. When writing the article, the authors take as a basis the state programs, including the Concept of development of the tourism industry of the Republic of Kazakhstan until 2023, the State Program of Development of the tourism industry of the Republic of Kazakhstan for 2019-2025, etc.
Some statistical methods for assessing the indicators of the tourism sector are described. Using statistical data for 2015-2019, which characterize the dynamics of the number of visitors for inbound and outbound tourism, the calculations of the variation indicators, which characterize the intensity of variation of the corresponding attribute, as well as the uniformity of the composition of the studied population, are performed.

164-177 2637
Abstract

The purpose of this research is to study the provision of logistics services in the context of Industry 4.0 and analyze the level of application of modern technologies in the field of transport and logistics based on an assessment of the relationship between technological readiness, the development of innovation and the efficiency of logistics in Kazakhstan. Based on data from the World Bank and the World Economic Forum on the Logistics Performance Index (LPI) and Global Competitiveness (GCI), a correlation analysis was made between the indicators of technological readiness, innovation and the Logistics Performance sub-indices. Also, based on the data of a sample study by the Bureau of National Statistics of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan on the use of ICT, the main trends in the development of digital technologies in the field of transport and warehousing in the country have been identified. Correlation analysis showed that in Kazakhstan the level of technological readiness has a strong relationship with the development of logistics efficiency parameters: customs, tracking of cargo transportation, quality of service and competence, quality of infrastructure, adherence to delivery times. It should be noted that the development of logistics is not associated with the innovative development of the country, this is due to the low level of innovation in the country. The study of statistical data in Kazakhstan revealed a low level of digital transformation of the transport and logistics sector: there is a passive use of digital technologies at transport and warehousing enterprises, a low level of investment in digitalization, the need for personnel in the field of ICT in logistics.

178-187 842
Abstract

The difficulty of conducting an empirical assessment of the true extent of corruption, caused by the lack of the necessary data, has contributed to the emergence of a new round of research focusing on the study of the influence of various factors on corruption. At the same time, such studies are distinguished by a variety of approaches to the choice of indicators and objects of study, as well as by the difference, and sometimes contradictory conclusions. These circumstances actualize the research topic. The purpose of the article to determine the relationship between corruption, economic growth and the quality of life of the population in five countries of the world, representing different parts of the world and geo-economics regions. The hypothesis of the study is the assertion that for developed countries the correlation between perceptions of corruption and indicators will be lower than for developing countries. The objects of research are Kazakhstan, Russia, Germany, USA and Finland. The subject of the research the relationship between the level of corruption, economic growth and the quality of life of the population. The study uses statistical research methods. The initial data of the study were the reports of Transparency International on the Corruption Perceptions Index, UNDP on the Human Development Index, as well as official data from the state statistical services of the countries in question.
In the course of the work, the boundaries of the interpretation of the term “corruption” were determined, the relevance of the study of the relationship between corruption, GDP per capita and the quality of life was briefly described, and a correlation analysis was carried out between the indicators. The results of the study represent conclusions about the quality and strength of the relationship between corruption, economic growth and the quality of life of the population. The scientific contribution of the research is to substantiate possible directions for improving research to establish the relationship between corruption and other socio-economic indicators. The practical significance of the study lies in the presentation of the evidence base for the fact that the relationship of the studied indicators may be different in different countries. The direction for future research is the possibility of using the assessment methodology for other groups of countries.

188-196 1278
Abstract

The purpose of this research work is to analyze the concept of the “smart city” and its characteristics in literature, to assess the application of the concept in Kazakhstan using the example of the “Smart Aqkol” project in order to identify a number of advantages and disadvantages, problems and trends of innovative technologies in the cities of Kazakhstan. In the course of the research, the author carried out a literary review of the concept of “smart city” by domestic and foreign authors, and also considered the experience of implementing “Smart Aqkol” in Akkol. The methodology of the work is to systematize indicators and approaches to the analysis of smart cities projects using the example of “Smart Aqkol”. The author carried out a SWOT analysis to evaluate this project and form recommendations for future projects of smart cities in Kazakhstan. In conclusion of the study, conclusions were formulated about the feasibility of using the experience of “Smart Aqkol”, which can be used as an example for other cities of Kazakhstan in the implementation of similar projects. The study identified the advantages of the implemented experience based on “Smart Aqkol” and provided statistical evidence of the success of this project, which showed a clear example of the fact that in Kazakhstan there are prerequisites for the effective development of smart cities, similar to “Smart Aqkol”.

197-205 7469
Abstract

Gender equality today is gaining all the relevance in the planning of the State program around the world. When planning government programs, they follow certain steps to achieve this goal. However, the goal of this system remains acute in many countries around the world. This article is devoted to the issue of gender policy in Kazakhstan. The article examined indicators such as women’s participation in leadership positions, employment in the labor market, education, the wage gap and how they participate in women’s participation in parliament. The participation of women in parliament was identified as one of the key factors in the development of gender equality. The article considered the theory of context. The results of the study confirmed the theory of context. To promote gender equality policies, the application of policies must be considered. The results showed that the wage gap and women’s participation in the labor market have a significant impact on women’s participation in parliament. The activity of women in education, that is, the increase in the number of women among students, however, did not have a significant impact on the participation of women in parliament. The SPSS program was used for the regression analysis. Also, a statistical analysis was carried out for a deeper study of the influence of factors on the activity of women in the state. The SPSS program was used for the regression analysis.



ISSN 1997-9967 (Print)
ISSN 2663-550X (Online)