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. The Global Competitiveness Report 2012–2013 | 217