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Economics: the strategy and practice

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Vol 16, No 3 (2021)
6-21 1835
Abstract

The problem of territorial development is quite relevant for countries that cause a wide range of development issues: a low level of quality of life, underdeveloped infrastructure, migration of the working-age population to urban areas, etc. countryside. Certain difficulties in the development of rural areas are currently characteristic of Kazakhstan, 41 percent of whose population lives in rural areas. In recent years, there has been a stable trend of the outflow of the rural population, mainly young people, to the cities. The main reason for this phenomenon is dissatisfaction with the living conditions in the countryside. Rural areas of the country are characterized by low incomes of the population, underdeveloped transport infrastructure, lack of many utilities, insufficient provision of social services (health, education, culture).This situation cannot but worry the country’s leadership, since it has a multi-vector impact on the socio-economic development of Kazakhstan: food self-sufficiency of the country’s regions, the export potential of the agricultural sector, and the balanced structure of the economy. In this connection, there is a need for a detailed solution of problems and the search for their ways, methods and mechanisms for achieving goals. According to the authors of the article, the proposed author’s model can become a basis for optimal development of the country.

The authors analyzed the existing definitions of “development”, “rural areas”, “development of rural areas”, gave their own formulation of the definition of the development of rural areas. Based on the study of foreign experience, important aspects of rural development policy have been identified, the authors have proposed mechanisms by which rural development can be implemented.

The article focuses on the importance of interaction between all stakeholders interested in the development of rural areas.

The purpose of this article is to develop the author’s conceptual model for the development of rural areas based on a theoretical review of existing definitions.

The results of the research - the author’s definition and the proposed conceptual model are of interest both for scientific research in this area and for practical programs for rural development.

22-34 733
Abstract

In Kazakhstan, the approach to this area is not sufficiently developed, there is no systematic and scientific justification in the management of intellectual resources of the country and regions. Therefore, Kazakhstan is faced with the urgent issue of creating opportunities for the effective use of intellectual capital in the regions, working out management mechanisms and technologies. The development of the region can be traced to the development of intellectual potential in the region. Given the high intellectual potential of the population living in the region, it can be concluded that this region is not lagging in economic development. To determine the potential of the local population, it is necessary to consider the factors influencing it. In this connection, the purpose of this article is to determine the level of factors affecting intellectual potential in the regions of Kazakhstan. During the study, the methods of observation and comparison, system analysis, synthesis and logic were used. In the course of the analysis, it was revealed that in Almaty, Nur-Sultan, Karaganda region, East Kazakhstan region, the components constituting the intellectual potential show a high dynamics of development. There are also regions with low rates of development of components of intellectual potential, these are Almaty region, Akmola region, Turkestan region. For the complex and varied development of regions, appropriate strategic and tactical management decisions should be made, considering the specifics of each region. The factors identified because of the study can become the basis for developing a methodology for assessing the intellectual potential of regions. The research results can be used in programs and strategic plans aimed at developing the intellectual potential of the regions.

35-50 1316
Abstract

In this article we study what the concept of «modernization» in the agricultural economy entails. Thanks to modernization, the agricultural economy is becoming more efficient based on a new development model. The analysis of the modernization of the agricultural economy is important for understanding the development of the country. And if, in general, the process of modernization in modern Kazakhstan is quite actively studied by specialists, then the chosen aspect-the modernization of the agricultural economy-is poorly studied in domestic science. The study of the agricultural sector in the context of modernization allows us to substantiate conclusions and practical proposals for improving the dynamic development of agriculture and achieving a new quality of life for the rural population. The concept of «modernization of the agricultural economy» is clarified as a multi-faceted process of complex innovations carried out by subjects of both the agricultural economy and industrial subjects, which ensures the transition to a new level of crop productivity and productivity of farm animals. Modernization of the agricultural economy is identical to economic investment. The financial resources in the process of modernization providing and generating are investments. The research logic reflects the author’s view of the modern concept of modernization in the agrarian economy, considering the integration between development and modernization into a new format. The starting point of this scientific article is the determination of the role and place of modernization in agriculture to ensure food security and independence of the Republic of Kazakhstan.

51-67 967
Abstract

The purpose of this scientific article is to identify modern trends in the formation of the economic and organizational foundations for the development of the digital economy of the Republic of Kazakhstan, to identify the main problems in these areas and ways to solve them. The main initial data for writing a scientific article were official statistical information in the field of development of communications and information and telecommunication technologies, scientific periodicals, including the near and far abroad, practical data of entrepreneurial structures directly leading production and economic activities in the digital and computer technology. The hypothesis of scientific research is the need to form the institutional foundations for building a digital economy, focused on the implementation of infrastructural development of digitalization processes at the macro and micro levels. The institutional framework affects both the public sector and the business entrepreneurship sector. In the strategic period for the development of the digital economy, indicative programs for business structures, as well as organizational scenarios for the state, should be developed. The main methods of scientific research were analytical and synthetic, statistical, computational, and analytical research methods, the method of hypotheses. As the results of the study, attention was focused on the dynamics of the contribution of digitalization processes to the economic growth of the Republic of Kazakhstan, and the main economic problems that hinder the intensification of the development of the digital economy were identified. The main scientific contribution of the study is focused on the priorities for solving the problems of digitalization of the economy within the strategic and long-term periods, including micro- and macroeconomic levels.

68-80 598
Abstract

The aim of the article is to investigate the relationship between the number of active small and medium-sized businesses in Kazakhstan and the number of internal costs for research and development projects based on the use of economic and mathematical forecasting methods. As a result of the application of statistical and mathematical methods, the analysis of changes in the number of active SMEs and the volume of R&D expenditures in the Republic of Kazakhstan for the period 1999-2019 was carried out on the basis of constructing a paired linear regression model. The quality of the model was assessed, the interval for the lower and upper boundaries of the forecast of changes in the indicators of the number of active SMEs from the volume of R&D expenditures was calculated. An economic interpretation of the calculated data obtained because of constructing a linear paired regression model is given. It was revealed that the number of active SMEs by 94.5% is explained by the volume of internal R&D expenditures. A point forecast for the number of active SMEs has been calculated when the volume of internal R&D expenditures changes for 2022. The calculation of indicators of the lower and upper boundaries of the predicted value of the number of active SMEs has been carried out. With an increase in the volume of internal expenditures on R&D in the GDP of the Republic of Kazakhstan to 92,178 million tenge, the number of active small and medium-sized enterprises will be in the range from 1,244,436 to 1,669,622 units.

81-93 500
Abstract

This article analyzes the scientific potential, its structure, and dynamics of development in Kazakhstan to develop strategic recommendations for the further development of science. The main purpose of the scientific work is to obtain accurate data on the state of the dynamics of the development of Kazakh science. The main research methods were generalization, systematization, and the economic and statistical method. The statistical base of the study was the data of the Statistics Committee of the Ministry of National Economy of the Republic of Kazakhstan for the period from 2010 to 2020. According to the analysis, it was revealed that the state budget plays the main role in the financing of R&D in the republic, and the priority direction of R&D is research in the field of engineering developments and technologies. While there are several problems in the field of social sciences and humanities in Kazakhstan: the tendency to reduce the sphere of social sciences, a low proportion of highly qualified personnel in the humanities, a low material and technical base of social and humanitarian research, which is manifested in a high share of labor costs. Positive trends in the growth of costs for R&D, the development of the entrepreneurial sector of science, as well as negative trends in reducing costs for medical sciences were revealed. It is shown that there is a critical situation with the reproduction of scientific personnel, especially highly qualified personnel. The results of the study may be of interest to government authorities in the field of science.

94-105 701
Abstract

The purpose of the article is to study the influence of digitalization factors on the investment activity of the largest cities of the Republic of Kazakhstan. During the research, the methods of correlation analysis, indexing, comparison, generalization, and synthesis were applied. The scientific novelty of the study lies in assessing the impact of digitalization on the investment potential of cities. The authors selected and analyzed indicators for assessing the level of digitalization of the megalopolises of the Republic of Kazakhstan; the methodology was modified and the level of digitalization of cities of republican significance of the Republic of Kazakhstan was assessed, conclusions were drawn about the current and future potential of digitalization as a factor in increasing the investment attractiveness of these cities. General conclusions were made that for Almaty and Nur-Sultan, digitalization is already a good factor in attracting investment, while Shymkent needs enhanced development of digital infrastructure for it to become a factor in increasing investment activity in the city. The research results can be used both in the formation of long-term plans for the development of these cities, and as a basis for further research in this direction. Prospects for further research on this topic - in increasing the available reliable and relevant data through the collection of official statistics, expanding the range of digitalization factors affecting investment activity and the use of more comprehensive assessment methods that will determine not only the closeness of the relationship, but also the exact value of the effects of factors each other.

106-116 812
Abstract

The aim of the study is to analyze and forecast the use of payment cards for making non-cash payments through national payment systems in Kazakhstan. Based on this goal, a hypothesis was put forward that in Kazakhstan, there is a relationship between the number of payment cards and the volume of non-cash payments. This hypothesis was confirmed because of the study. The information base of the study was the data on payment cards, which were taken from the Statistical Bulletin of the National Bank of the Republic of Kazakhstan. Hypothesis testing was carried out using correlation analysis for three periods: 2009, 2016, 2020. The method of finding Pearson’s correlation in the SPSS program was used. The results showed a downward change in the relationship between the selected indicators and the amount of funds transferred over time. Also, in this study, a forecast was made for 2021-2023 for the indicators under consideration. To make a forecast for the indicators under consideration, a graphical method (polynomial trend line) was used. The resulting forecast shows the growth of cardholders and, consequently, the spread of the number of payment cards among the population in 2021-2023. The practical significance of this study is that the proposed methodology can help predict the dynamics of payment cards in any country in the world. Recommendations are also given for further improving the financial system, since increasing the transparency of monetary circulation in small-and-medium sized businesses will lead to a positive result in the implementation of the program for universal declaration of income in 2025.

117-127 798
Abstract

The purpose of the study is to substantiate the potential of using the results of modeling potential GDP and estimating the output gap to comply with fiscal rules that are adequate for the corresponding economic cycle of the economy of Kazakhstan. The methods of economic, statistical, graphical, system, functional analysis, economic and mathematical modeling are applied. To achieve this goal, the analysis of Kazakhstan’s fiscal stability was carried out based on the assessment of Kazakhstan’s potential GDP and the calculation of output gaps, which were carried out based on the dynamic series method of the reported real GDP in 2005 prices for 1991-2019 using the Hodrick-Prescott filter (CP) using the EViews 10 econometric package. The current mechanism for using the output gap indicator in Kazakhstan’s fiscal policy does not have sufficient flexibility. For a timely response of the budget system to changes in the economic situation in the country or abroad, considering the output gap, it is important to introduce an automatic adjustment system that can eliminate contradictions and inconsistencies when making macroeconomic policy decisions by the main regulator and the government of the country. To do this, there is a need to revise the existing fiscal policy based on building a system of new budget rules on countercyclical principles. The proposed alternative fiscal model with the introduction of the rule on the structural balance of the budget is aimed at ensuring long-term fiscal stability, which does not allow for a pro-cyclical policy.

128-141 1288
Abstract

The purpose of this study is to study the approaches to measuring the indicators of the circular economy used in the countries of the European Union and in the OECD countries to form an understanding of the applicability of the presented methods. The study used the methods of econometric modeling, statistical and comparative analyzes. A model was built using data for the European Union countries, the following variables (factors) were used to build this model: the share of material extracted and returned to the economy, the intensity of CO2 emissions, the level of energy intensity of primary energy, GDP per capita, research and development costs, the share urban population in total. Based on the simulation results, it was concluded that GDP growth and growth in energy intensity, together with an increase in the level of technology in the economy, leads to an increase in the processing of materials and their reuse in economic circulation. The results of modelling confirm the conclusions of the previous authors, the analysis of the strategies of the EU and OECD countries. It is necessary to invest more financial resources in R&D, development of new technologies and innovations for achieve better results. Greater involvement of consumers and businesses in activities conducive to the circular economy is also critical. Achieving these two goals will contribute to sustainable economic development. Based on the analysis of the model and strategies of the OECD and EU countries on the circular economy, we concluded that international innovations in the circular economy are applicable to Kazakhstan’s economy.

142-151 722
Abstract

In the current era of overconsumption, transition to circular economy is a relevant problem for every country in the world. The main idea behind this economic approach is to break the link between rising wealth and overexploitation of primary natural resources. The article assessed the current and future state of the circular economy’s development in 27 countries of the European Union. The assessment was carried out using Data Envelopment Analysis based on data for 2019 of selected input and output parameters described by the circular economy. Generation of municipal waste per capita, Water exploitation index, Final energy consumption and Social Progress Index were used as input parameters. Circular material use rate and municipal waste recycling rate were output parameters. All data was collected from official reliable sources such as Eurostat, and the Social Progress Imperative website. The study results showed that as of 2019, 40,74% of European countries have high efficiency in the advancement of circular economy, 40,74% - sufficient, 11,11% - medium and 7.41% - low efficiency. However, the analysis showed very good prospects for the future progress of the circular economy in these countries, since the overall efficiency results in the CCR model range from 0.899 to 1 for all countries in the European Union. With the implementation of the New Circular Economy Action Plan, which was adopted in 2020 by the European Commission, the EU countries have the opportunity to fully turn to the circular economy and ensure the healthy, sustainable development of countries.

152-166 802
Abstract

Today, many countries in the world are concerned about the well-being of pensioners, as their number is growing every year and pension systems cannot cope with ensuring a decent old age. The well-being of pensioners is part of the well-being of society, and the pension system is an institution for ensuring the well-being of pensioners. Therefore, it is important to understand the relationship between the financial well-being of older people and the country’s pension system. It is also important to understand that the family is an integral part of a person and therefore the well-being of each family member affects family relationships. This article is devoted to the assessment of the financial well-being of pensioners in Kazakhstan as a key factor affecting the family relations of a pensioner with partner, children, and grandchildren. Primary and secondary data were used for this study. The primary data were collected through interviews, which allowed us to obtain a subjective definition of financial well-being on the part of pensioners and its impact on family relations. This data was processed and encoded using the Atlas.ti program. Data from the Bureau of National Statistics made it possible to objectively assess the financial situation of Kazakhstani pensioners. The study found that the concept of financial well-being among Kazakhstani pensioners is more important for men than for women. Pensioners are not happy with their financial well-being, but this does not significantly affect their relationship with their families. The results of the study will allow us to assess the financial well-being of pensioners and can be used in the reform of social policy, pension provision of the country. Through the use of interviews financial literacy has been identified as one of the key factors, which depends on circumstances and the context.

167-176 763
Abstract

The authors attempt to conduct interdisciplinary research in epidemiology demography and pension economics. A literature was selected upon its relevance to the following key words: COVID-19, ageing and retirement system. The following methods are used: Historical content analysis, information, and analytical, comparative analysis. The analysis part is mainly based on secondary data of Committee on Statistics of the Republic of Kazakhstan and world recognized institutions’ reports such as World Health Organization, United Nations and World Bank. In the demographic analysis the traditional and alternative indices of population ageing such as Old Age Dependency Ratio (OADR) and Prospective Old Age Dependency Ratio (POADR) were widely used. By August 5, 2020, Kazakhstan has 94,882 registered cases of CVI, 67031 people recovered and 1058 deaths. Confusion in the demographic statistics of COVID-19 cases showed all the shortcomings. Even though the OADR and POADR ratios are rising in accordance with UN forecast, the global pandemic will adjust the population ageing, since the mortality of the elderly population from this disease is higher than in other age groups. The Kazakhstani retirement system has been suffered by the COVID-19 as well. Human losses, income poverty and increase in pension costs put a burden on state budget. The research presents recommendations on supporting measures in several directions that need to be taken by policy makers during post COVID-19 period in retirement system.

177-191 962
Abstract

Purpose of the article is to identify the relationship between willingness to support, family living standards and individual’s health self-assessment within the framework of the Kazakhstani population participation of in health insurance. The empirical basis of the study was the archive of sociological survey data, which is based on the population responses, taking into account the opinions in the pharmaceutical industry experts, medical workers and specialists in the insurance market. The results of the statistical analysis showed the presence of significant links between “Willingness to support” and “Self-assessment of individual health”, between “Willingness to support” and “Average monthly income per capita in the family”, as well as between “Willingness to support” and “Family living standards”. It was also found that the willingness to support is different for different strata of the population: among the population with a high self-assessment of health, a high standard of living and a high level of per capita income in the family, it is higher. In addition, the article analyzes the current state of health insurance market in the Republic of Kazakhstan, where, as a result, it was revealed that due to quarantine measures, the number of concluded insurance contracts has almost halved. The results obtained can be used by authorized state bodies in the development of health insurance programs, as well as measures to ensure the safety of the health care system of the Republic of Kazakhstan and policies in the field of effective health care.

192-203 2150
Abstract

The article analyzes the level of health indicators to predict the state of this social system and create a certain vision. The list includes coefficients reflecting the general socio-economic situation of the population: the total number of births, deaths, maternal mortality, and mortality of children under five years of age. For a more detailed study of the situation in the health sector, the amount of funds allocated for this direction was also determined. Such ratios reflect the social and economic well- being of the population. Another key indicator of health is the dynamics of mortality from diseases. According to this indicator, the highest mortality in Kazakhstan is observed from diseases of the circulatory system, but nevertheless, the incidence has decreased, reflecting the effectiveness of the health care system. One of the main goals of the article is a correlation analysis of factors influencing the life expectancy of the population of the Republic of Kazakhstan. Correlation analysis revealed positive and negative factors. While digital literacy and health spending are positively correlated with population life expectancy, the number of hospital organizations and the number of hospital beds showed a negative relationship. This study showed that the level of digital literacy of the population has a significant impact on life expectancy and lifestyle. This is evidenced by the fact that in the case of the COVID-19 pandemic, many countries have used digital tools to isolate people from each other for safety reasons, thus influencing the overall lifestyle. Today, developed countries are rapidly digitizing the healthcare sector.

204-216 757
Abstract

Education has become an important mechanism in the goal of gender equality achievement. For many decades, access to education was one of the key issues for women. These days it is an issue of not only developing countries but of developed ones as well. Women have become more active in higher education, especially in achieving master degree or PhD. This is due to that public policies are directed at the improvement of the structure of higher education. It includes promotion of human resources diversification among academic staff. This article studies the vision of women regarding higher education. What is the importance of it? This is especially carrier opportunities in higher education. It also discusses carrier opportunities for women in other fields, which has influence on women desire to continue their education. What influence does it have on private life? Higher education also covers state of selfdevelopment, personal improvement and family relationships. The study was provided under the framework of social behavior communication change, which includes four key factors of social behavior. There was conducted a semistructured interview among women. For the interview analysis, Dedoose software was used. According to the results of the study, there have been identified two main factors, which have a great Impact on women participation in higher education. These factors are cultural standard family issues. Major outcomes of higher education for women: potential realization, promotion of women rights. This determines the importance of social behavior in the development of a policy, development of laws and regulations.

217-226 2162
Abstract

The purpose of this article is to analyze the main causes of corruption in the healthcare sector during the COVID-19 pandemic. The study identified the main problems of national health during the pandemic, such as theft and resale of state-funded medicines, vaccines, and medical supplies (medical equipment), reduced availability and quality of medical services, low wages of medical workers, limited supervision and control (monitoring) in the healthcare sector and etc. As a result of the analysis, it was concluded that there is a need for additional work to identify cases of those types of corruption that are indicated in the article. Also, citizens should be involved in suppressing corruption in the health sector - documenting all cases of corruption that can be detected at the place of service delivery. They will serve as strong evidence to advocate for transparency and accountability mechanisms that guarantee more equitable access to health services. The authors argue that one of the important recommendations for preventing corruption in the health sector is investing in prevention as well as enforcing it: developing health system reforms and new health programs to reduce incentives and opportunities for corruption. The results showed that the method of statistical analysis is quite effective in the field of studying corruption. The study of the statistics of corruption crimes allows us to adequately characterize the level of corruption. The sources are statistical data of the Agency of the Republic of Kazakhstan for Combating Corruption, the Bureau of National Statistics, data from international organizations.

227-242 664
Abstract

This article analyzes the state management of the sphere of circulation of medicines in the Republic of Kazakhstan in the context of the COVID-19 pandemic, and analyzes the reasons for the shortage of medicines in the specified period. The authors conducted a sociological survey, which made it possible to identify the main problems faced by the population during the COVID-19 pandemic. All major players in the pharmaceutical market of the Republic of Kazakhstan are analyzed. The activity of «SK-Pharmacy» during the COVID-19 pandemic was considered, and measures aimed at eliminating ineffective management identified in the work of a single distributor of medicines were analyzed. The measures of the state to reduce prices for essential medicines during a pandemic are considered. Based on domestic and foreign experience, an analysis of external reference pricing for medicines was carried out. The expenditures of the population on health care, including on medicines, were considered. The study resulted in the proposed measures to improve public administration in the sphere of drug circulation in the Republic of Kazakhstan. It is concluded that the state needs to take several measures in the field of drug circulation to prevent a possible shortage of pharmaceuticals and contain drug prices during future pandemics. It is necessary to increase funding for the health care system, including for medicines, without shifting the financial burden on the population and employers. It is necessary to build an effective system of pricing for medicines, which would consider the peculiarities of the global and Kazakhstani pharmaceutical market.



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