The Global Competitiveness Report 2012–2013

2.1: Country/Economy Profiles

Kazakhstan Key indicators, 2011

GDP (PPP) per capita (int’l $), 1990–2011

Population (millions) ........................................ 16.4 GDP (US$ billions) ........................................ 178.3 GDP per capita (US$) ................................. 10,694 GDP (PPP) as share (%) of world total ............ 0.28

Kazakhstan

15,000

Commonwealth of Independent States

12,000 9,000 6,000 3,000

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

The Global Competitiveness Index Rank (out of 144)

Stage of development

Score (1–7)

GCI 2012–2013 ...................................................... 51 ..... 4.4

Transition 1–2

1

GCI 2011–2012 (out of 142) ..................................... 72 ......4.2 GCI 2010–2011 (out of 139) ..................................... 72 ......4.1

Factor driven

Transition 2–3

2

3

Efficiency driven

Basic requirements (39.3%) .......................................47 ......4.9

Innovation driven

Institutions

Institutions ................................................................ 66 ......4.0 Infrastructure ............................................................ 67 ......4.0 Macroeconomic environment ................................... 16 ......6.1 Health and primary education ................................... 92 ......5.4

7

Innovation

Infrastructure

6 5

Business sophistication

Macroeconomic environment

4 3

Efficiency enhancers (50.0%) .....................................56 ......4.2

2

Higher education and training ................................... 58 ......4.4 Goods market efficiency .......................................... 71 ......4.2 Labor market efficiency ............................................ 19 ......5.0 Financial market development ................................ 115 ......3.5 Technological readiness ............................................ 55 ......4.2 Market size ............................................................... 55 ......4.1

Market size

Health and primary education

1

Higher education and training

Technological readiness Financial market development

Innovation and sophistication factors (10.7%) .........104 ......3.2

Goods market efficiency Labor market efficiency

Business sophistication ........................................... 99 ......3.6 Innovation ............................................................... 103 ......2.9

Kazakhstan

Economies in transition from 2 to 3

The most problematic factors for doing business Inadequately educated workforce ......................................17.2 Corruption .........................................................................15.7 Tax regulations ....................................................................9.6 Access to financing .............................................................9.5 Inefficient government bureaucracy .....................................9.0 Insufficient capacity to innovate ...........................................7.5 Tax rates..............................................................................6.1 Poor work ethic in national labor force ................................6.0 Inadequate supply of infrastructure ......................................4.7 Inflation ................................................................................4.6 Poor public health ...............................................................4.4 Restrictive labor regulations .................................................2.1 Crime and theft ...................................................................1.6 Foreign currency regulations ................................................1.2 Policy instability ...................................................................0.9 Government instability/coups ..............................................0.0 0

5

10

15

20

Percent of responses Note:

From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings.

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2.1: Country/Economy Profiles

Kazakhstan The Global Competitiveness Index in detail INDICATOR

VALUE RANK/144

INDICATOR

1st pillar: Institutions 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22

Property rights ....................................................... 4.1 ............77 Intellectual property protection ............................... 3.2 ............92 Diversion of public funds ........................................ 3.1 ............74 Public trust in politicians ......................................... 3.7 ............37 Irregular payments and bribes ................................ 4.0 ............64 Judicial independence............................................ 3.2 ............94 Favoritism in decisions of government officials ....... 2.8 ............91 Wastefulness of government spending ................... 3.8 ............31 Burden of government regulation ........................... 3.6 ............52 Efficiency of legal framework in settling disputes .... 3.8 ............67 Efficiency of legal framework in challenging regs. ... 3.5 ............76 Transparency of government policymaking............. 4.9 ............32 Gov’t services for improved business performance 4.6 ............13 Business costs of terrorism .................................... 5.6 ............70 Business costs of crime and violence..................... 5.0 ............63 Organized crime ..................................................... 4.9 ............85 Reliability of police services .................................... 3.7 ............96 Ethical behavior of firms ......................................... 3.9 ............70 Strength of auditing and reporting standards ......... 4.5 ............74 Efficacy of corporate boards .................................. 4.9 ............36 Protection of minority shareholders’ interests ......... 3.9 ............89 Strength of investor protection, 0–10 (best)* .......... 8.0 ............10

2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09

Quality of overall infrastructure ............................... 4.1 ............78 Quality of roads ...................................................... 2.7 ..........117 Quality of railroad infrastructure .............................. 4.3 ............29 Quality of port infrastructure ................................... 3.4 ..........115 Quality of air transport infrastructure....................... 4.1 ............95 Available airline seat kms/week, millions* ........... 212.9 ............61 Quality of electricity supply ..................................... 4.4 ............81 Mobile telephone subscriptions/100 pop.* ......... 142.5 ............20 Fixed telephone lines/100 pop.* ........................... 26.1 ............47

3.01 3.02 3.03 3.04 3.05

Government budget balance, % GDP*................... 5.8 ............12 Gross national savings, % GDP* .......................... 39.6 ............13 Inflation, annual % change* .................................... 8.3 ..........110 General government debt, % GDP* ..................... 10.9 ............14 Country credit rating, 0–100 (best)* ...................... 55.0 ............57

4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10

Business impact of malaria .............................. n/appl. ..............1 Malaria cases/100,000 pop.* ................................(NE) ..............1 Business impact of tuberculosis ............................. 4.4 ..........112 Tuberculosis cases/100,000 pop.* ..................... 151.0 ..........107 Business impact of HIV/AIDS ................................. 5.2 ............73 HIV prevalence, % adult pop.* ............................... 0.1 ............12 Infant mortality, deaths/1,000 live births* .............. 29.1 ............98 Life expectancy, years*......................................... 68.3 ..........104 Quality of primary education ................................... 3.7 ............72 Primary education enrollment, net %* .................. 88.2 ..........102

5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08

Secondary education enrollment, gross %* .......... 99.6 ............35 Tertiary education enrollment, gross %*................ 40.8 ............60 Quality of the educational system ........................... 3.2 ..........101 Quality of math and science education .................. 3.8 ............81 Quality of management schools ............................. 3.7 ..........103 Internet access in schools ...................................... 4.3 ............67 Availability of research and training services ........... 4.1 ............72 Extent of staff training ............................................ 3.9 ............72

2nd pillar: Infrastructure

3rd pillar: Macroeconomic environment

4th pillar: Health and primary education

5th pillar: Higher education and training

VALUE RANK/144

6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16

Intensity of local competition .................................. 4.1 ..........113 Extent of market dominance .................................. 3.5 ............83 Effectiveness of anti-monopoly policy ..................... 3.7 ............95 Extent and effect of taxation................................... 3.9 ............39 Total tax rate, % profits* ....................................... 28.6 ............31 No. procedures to start a business* .......................... 6 ............47 No. days to start a business* .................................. 19 ............80 Agricultural policy costs.......................................... 4.2 ............48 Prevalence of trade barriers ................................... 4.4 ............64 Trade tariffs, % duty* .............................................. 9.6 ..........102 Prevalence of foreign ownership............................. 4.1 ..........102 Business impact of rules on FDI ............................. 4.3 ..........100 Burden of customs procedures .............................. 3.9 ............77 Imports as a percentage of GDP* ........................ 27.3 ..........125 Degree of customer orientation .............................. 4.3 ..........104 Buyer sophistication ............................................... 4.0 ............36

7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08

Cooperation in labor-employer relations ................. 4.5 ............49 Flexibility of wage determination ............................. 5.4 ............30 Hiring and firing practices ....................................... 4.7 ............24 Redundancy costs, weeks of salary* ......................... 9 ............25 Pay and productivity............................................... 4.8 ............10 Reliance on professional management ................... 4.0 ............87 Brain drain ............................................................. 3.4 ............72 Women in labor force, ratio to men* ..................... 0.91 ............24

8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08

Availability of financial services ............................... 4.5 ............79 Affordability of financial services ............................. 4.0 ............78 Financing through local equity market .................... 2.8 ..........109 Ease of access to loans ......................................... 2.3 ..........110 Venture capital availability ....................................... 2.2 ..........105 Soundness of banks .............................................. 4.3 ..........120 Regulation of securities exchanges ........................ 3.7 ..........100 Legal rights index, 0–10 (best)* ................................. 4 ............99

9.01 9.02 9.03 9.04 9.05 9.06 9.07

Availability of latest technologies ............................ 4.6 ............90 Firm-level technology absorption ............................ 4.5 ............91 FDI and technology transfer ................................... 4.4 ............85 Individuals using Internet, %* ............................... 45.0 ............62 Broadband Internet subscriptions/100 pop.* .......... 7.5 ............67 Int’l Internet bandwidth, kb/s per user* ................ 23.6 ............53 Mobile broadband subscriptions/100 pop.*.......... 38.4 ............27

7th pillar: Labor market efficiency

8th pillar: Financial market development

9th pillar: Technological readiness

10th pillar: Market size 10.01 Domestic market size index, 1–7 (best)*................. 3.9 ............56 10.02 Foreign market size index, 1–7 (best)* .................... 4.9 ............43

11th pillar: Business sophistication 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09

Local supplier quantity ........................................... 4.2 ..........120 Local supplier quality.............................................. 4.2 ............90 State of cluster development.................................. 3.1 ..........110 Nature of competitive advantage ............................ 2.7 ..........124 Value chain breadth................................................ 3.1 ..........111 Control of international distribution ......................... 3.8 ............90 Production process sophistication.......................... 3.6 ............76 Extent of marketing ................................................ 3.8 ............84 Willingness to delegate authority ............................ 3.6 ............85

12.01 12.02 12.03 12.04 12.05 12.06 12.07

Capacity for innovation........................................... 2.9 ............92 Quality of scientific research institutions ................. 3.0 ..........108 Company spending on R&D................................... 2.9 ............94 University-industry collaboration in R&D ................. 3.3 ............90 Gov’t procurement of advanced tech products ...... 3.6 ............71 Availability of scientists and engineers .................... 3.6 ..........104 PCT patents, applications/million pop.* .................. 1.1 ............65

12th pillar: Innovation

Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 83.

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