The most important crises in the economic development of the Republic of Kazakhstan

Table of contents: The Kazakh-American Free University Academic Journal №12 - 2020

Authors:
Seitbekova Akerke, Kazakh American Free University, Kazakhstan
Bogorodskaya Oxana, Kazakh American Free University, Kazakhstan

For almost 30 years, the Republic of Kazakhstan has been an independent state. During this period, the country has overcome a whole series of ups and downs. The most serious crises in the history of Kazakhstan are:

- the global crisis of the USSR;

- Asian crisis of 1998;

- financial and economic crisis of 2007-2008;

- geopolitical sanctions crisis, which began in 2014.

We give a brief description of each crisis period.

Firstly, the global crisis of 1991-1996, associated with the collapse of the Union of Soviet Socialist Republics. The reason for this crisis was the weak management efficiency and the absence of elements of market relations in the economy. This period was characterized by a powerful disintegration of economic relations.

In the system of production relations, a complete reform was needed, consisting primarily in changing the form of ownership of the means of production. The introduction of partial measures to reform the economy did not give the desired result, which led to a severe decline in the manufacturing sector, an increase in inflation and unemployment in the entire post-Soviet space.

The Republic of Kazakhstan, even having gained independence, for a rather long period of time was deeply dependent on the economies of the countries of the former USSR. During this period, our state was overwhelmed with complete stagnation of production, aggravated by a rupture of inter-republican industrial and economic ties, accompanied by a non-payment crisis and a fall in the general standard of living of the population.

In order to overcome such a difficult situation in April 1992, the President of the Republic of Kazakhstan N.A. Nazarbayev adopted a Strategy for the political and economic development of the country until 2005 and proclaimed a policy of denationalization and privatization of the economy.

According to this anti-crisis program, it was planned to transform the command and administrative Soviet economy into a market economy with various forms of ownership.

As a result of privatization from 1991 to 2000:

- 34500 objects of state property worth more than 215 billion tenge were sold to private hands;

- a whole class of private owners and free entrepreneurs has appeared in the country.

It is important to note that this process was quite painful, because it took place in a tight monetary policy.

Since November 15, 1993 in the Republic of Kazakhstan very quickly and in a mode of full secrecy the national currency - tenge is entered. This step gave a start to the development of independent economic development of the country.

An equally important step was the active activity, including the state, to attract foreign investment in the economy. At the end of the twentieth century, this led to the unconditional leadership of the Republic of Kazakhstan to attract foreign direct investment throughout the post-Soviet space.

The anti-crisis measures have allowed:

- to suspend the critical decline in production;

- to reduce inflation;

- reduce the average monthly inflation rate by almost six times;

- stop the reduction of real wages and even get its increase.

Thus, from 1994 to 1997, the Kazakhstan market mechanism was fully formed with direct state support for the most important social indicators and industries.

Second, the global crisis of 1997-1998. The reason for this crisis was the economic crisis in Southeast Asia, when as a result of the rapid growth of the economies of the "Asian tigers" there was a large-scale inflow of capital into these States, increased public and corporate debt, there was an overheating of the economy and as a result - a boom in the real estate market.

The consequences of these negative phenomena for the countries of South-East Asia were manifested in:

- a sharp fall in the national currency;

- increase in inflation;

- growth of corporate debt;

- mass bankruptcy.

The crisis wave swept almost all countries of the world. Large companies of the USA, Europe, Japan went bankrupt. In Russia, there was also a sharp drop in the exchange rate of the national currency, as a result of the goods produced in Russia have become much cheaper than Kazakhstan. The restriction of imports in this situation did not help, and there was a devaluation of the tenge. As a result, Kazakhstan's GDP decreased by 2.5%, and the inflation rate was 117%.

The government is headed by President N. Ah. Nazarbayev has developed and adopted a Strategy for the development of Kazakhstan until 2030, containing the following anti-crisis measures:

- guarantee full and timely payment of pensions, benefits and wages in budgetary organizations;

- provide special micro-loans to create jobs, especially in rural areas;

- provide preferential loans for the development of small and medium-sized businesses, farms;

- to start the implementation of the housing construction program;

- to attract investors by offering them various preferences.

The adopted anti-crisis measures have allowed:

- to secure the functioning of the banking system;

- to stabilize the exchange rate of the national currency;

- reduce inflation to 7 per cent;

- resume production;

- to restore the competitive position of Kazakhstan's exports in the world market;

- to increase the income of the population.

Thus, the Republic of Kazakhstan successfully overcame the global crisis of 1997-1998 and confidently embarked on the path of stabilization of the economy.

Third, the crisis associated with the collapse of the American mortgage system in 2008 -2009. Historians and economists consider this crisis comparable in scale and consequences only with the great depression of the thirties. The impact of this crisis was felt by the economic system of the Republic of Kazakhstan, which in this period was in the stage of recovery:

- the economic growth rate was 8.5 per cent;

- gold and foreign exchange reserves have increased significantly;

- the price of oil has reached a historic high;

- the exchange rate remained stable [1].

It is important to note that this crisis did not take the state by surprise and did not lead to serious consequences, but it left a rather unpleasant precipitate, not allowing Kazakhstan to reach the peak of its economic prosperity.

During the course of this financial crisis, a number of large-scale programs were adopted in the Republic of Kazakhstan, the most important of which are the "Five big cases" and "Road map" aimed at solving social problems of society.

In addition, the state carried out the following anti-crisis measures:

- funds were allocated for the purchase of shares from the system-forming banks;

- decisions were made to support the agricultural sector, small and medium-sized businesses, construction;

- modernization of infrastructure;

- implemented measures to stabilize the real estate market; -the national welfare Fund "Samruk-Kazyna" has been formed, which contributes to the modernization, diversification and stabilization of the economy, acting along with the government as an operator of anti-crisis programs;

- for the first time to solve social problems began to use the assets of the National Fund, formed from the income of commodity companies.

All of the above gave the population the opportunity to safely experience the consequences of the crisis.

As a result of the anti-crisis measures and the launch of the program of forced industrial-innovative development of the Republic of Kazakhstan, the results of 2009 had positive results:

- real GDP increased;

- the total amount of budget revenues has increased;

- foreign direct investment is actively attracted;

- the social principle of building the state is clearly manifested [2].

Fourth, the global slowdown crisis in emerging markets in 2014. Most experts believe that this crisis is just another wave of the previous crisis of 2008-2009.

Among the causes of the crisis is the process of breaking the developing economies of Russia, China, Brazil, South Africa and other countries, which brought to these countries:

- falling prices for basic energy resources;

- the growth of General panic on exchanges [3].

Today, most of the world markets are waiting for changes, the largest investors refuse to invest in new projects and programs, withdrawing their assets from developing countries and investing them in less profitable but more stable projects in the West. In addition, military operations in Syria and sanctions imposed against Russia by the United States and Western Europe have become serious destabilizing factors.

It was during this period in the Republic of Kazakhstan President Nursultan Nazarbayev proposed to implement two large-scale anti-crisis programs:

- new economic policy "Nurly Zhol", which is based on infrastructure initiatives;

- the national plan "Five institutional reforms" and "100 concrete steps" for their implementation.

The main anti-crisis measures were:

- allocation of funds from the National Fund to support economic growth and employment;

- expansion of the sphere of concessional lending to small and medium-sized businesses, as well as large businesses;

- improvement of the banking sector, redemption of bad loans;

- construction and reconstruction of new roads, special economic zones and industrial technoparks, EXPO-2017 complex;

- modernization of energy infrastructure;

- construction of social housing [4].

Analyzing these anti-crisis measures, it is important to note that the state is trying to control the situation, stabilizing markets and modernizing the social sphere. Our country has a clearly defined goal-to join the thirty most developed countries in the world.

In addition, overcoming the consequences of the crisis depends on every citizen of Kazakhstan. They should clearly understand the essence of the reforms and their importance in the prosperity of the Republic of Kazakhstan. Today, the consolidation of the whole society around the common goals of the country is important for the successful implementation of anti-crisis programs.

REFERENCE

1 Nazarbayev N.A. Keys to the crisis // Russian newspaper. - 02 February. - 2009 // https://rg.ru/2009/02/02/autoritetno.html

2 Alshanov R.A. The Global Crisis: Implications for Kazakhstan. - Moscow: Turan University, 2010. - 180 p.

3 Alshanov R. Secrets of thirteen millennia: searches and discoveries. - Almaty: Association of universities of the Republic of Kazakhstan, 2016. - 54 p.

4. Growth of well-being of Kazakhstan citizens: increase of incomes and quality of life. Message from the President of the Republic of Kazakhstan N. Nazarbayev to the People of Kazakhstan dated October 5, 2018 http:// www.akorda.kz/ru/ addresses/ addresses_ of_president/poslanie-prezidenta-respubliki-kazahstan-nnazarbaeva-naro-du - kazahstana-5-oktyabrya-2018 -g



Table of contents: The Kazakh-American Free University Academic Journal №12 - 2020

  
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