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KAZAKHSTAN SET TO BRING SME SHARE TO 50% BY 2050

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by February 25, 2020 General

According to Ruslan Dalenov, minister of national economy of Kazakhstan, in developed countries, or OECD countries, SMEs’ contribution to economy is between 30 to 69%. He has also shared the measures taken in Kazakhstan so as to near developed countries’ figure, Strategy2050.kz correspondent reports.

Improving a business climate is key to developing SME that can be done through state support, legislative improvements and simplified regulation environment. Developed countries have SMEs contribute 50% of GDP, in different countries it varies from 30 to 69%, he said.

2019 saw the SME share account for 29.5% of the Kazakh economy. According to the minister of national economy, it is important to raise this figure to up to 50% by 2050 in a bid to comply with the OECD countries.

We are facing a task to raise the share of SMEs in GDP up to 20% in 2020, up to 30% by 2025, and 50% by 2050, the minister said.

Due to a big number of SMEs in developed countries, their contribution to economy is great. The minister also underscored that SMEs also promote employment, saying that most jobs are created through them.

The Kazakh national minister pointed out the importance of improving the legislation and regulation environment using the OECD standards as guidance.

Entrepreneurship support is provided via the following programmes Business Roadmap, Economics of Simple Things and Enbek. Last year, under the said programmes 22 thousand projects received support, as well as preferential loaning and necessary infrastructure. 160 thousand entrepreneurs studied the basics and functional directions of business, 41 thousand received service support in accounting, legal services, marketing issues, the minister said.

Speaking of legislative improvements and improvements in the regulation environment, the minister accentuated on the following steps: the 8th package of legislative initiates that include over 100 amendments to the business environment’s development.

Kazakhstan ranks among 20 countries from 190 in terms of the best business climate, he said.

Secondly, on the instruction of the Head of State, there is a moratorium on checks and tax payment for micro and small businesses. So over 1 million of micro and small enterprises are expected to save 382 billion tenge within 3 years, thus reducing administrative burdens and facilitating business.

Thirdly, the norms to implement the presumption of good faith are in place. All unsolved issues finally will be in favour of businesses. Also, a transitional period is put in place so if the requirements for business change, then they shall be implemented over a certain period for businesses to get prepared. Oversight organs will have to make reports, which is planned to be held on the same day each year.

In an effort to meet the tasks put forward at the expanded governmental session, the 8th package of reforms for improving the business climate needs to be adopted, as well as aservice named Government for business, and the Smart regulation tool should be in place, he said.

According to the national economy minister, the mentioned measures will contribute to running business.

The 8th package of reforms aimed at improving the business climate lays out the legislative amendments to create favourable conditions for business development, registration of VAT payers will be sped up, as well as opening up bank account online, while unnecessary overlapping notifications on a certain services will be eliminated. As for legal entities information on movable property will be disclosed to ensure safety of transactions, he said.

The Service Government for business foresees a new format of interaction among the Government and businesses due to be introduced using the principle of a single service office. Such an office will provide entrepreneurs with wider services regarding business development, competence building and financing issues.

The smart regulation tool is modelled after developed countries. It will enable to reduce excessive liabilities, restrictions, as well as cut unnecessary expenses for business. Smart regulation is about a service model when interacting with businesses, system automatiasation, risk management and smart de regulation, the minister said.

Before introducing a new requirement an analysis on its effects on businesses shall be conducted, which must be carried out in a new form so as to include less regulation, a principle of one new function instead of two old ones. Thus, we will end up with a quality regulation environment, and finally with an improved business climate.

The Government is held responsible for making the SME share contribute up to 35% to the GDP by 2025, and up to 50% by 2050, said Askar Mamin, Kazakh PM.

The Prime minister has spoke of the measures and programmes designed to promote business development and entrepreneurial activity as effective.

There must be work done to satisfy the tasks set by the Head of State. The 8th package of measures for improving the business climate needs to be adopted before this June and the Parliament’s work need to be sped, he said.

The Kazakh PM also directed the Government for Business service to be finished by 1 July, which makes the obtaining of state support mesures for entrepreneurs easy through the single window principle.

MINISTRY OF INTERNAL AFFAIRS REPORTS ITS READINESS TO RESPOND TO POSSIBLE FLOOD SITUATIONS

At the government session chaired by Prime Minister Askar Mamin, Minister of Internal Affairs Yerlan Turgumbayev reported on preparedness for the upcoming flood period, the flood situation and measures taken to prevent and eliminate flood threats, Strategy2050.kz with reference to primeminister.kz reports.

As he noted, the Ministry of Internal Affairs together with central and local executive bodies, is carrying out a series of measures to reduce the risk of emergencies during the spring flood.

According to preliminary forecast data of Kazhydromet, in general, the volume of snow reserves in the country and moisture reserves in river basins are significantly higher than normal. The process of snow accumulation continues. The most likely complication is the situation in the city of Nur Sultan, East Kazakhstan and North Kazakhstan regions.

Now 609 settlements, 675 sections of roads and 259 railways located in the real risk zone have been identified throughout the country, the minister informed.

In order to prevent flooding by local executive bodies, more than 8.8 million cubic meters of snow were removed from settlements; reserves of fuels and lubricants (now 13.5 thousand tons), inert materials (152.6 thousand tons), bag containers (840 thousand units) and explosives (47 tons) were formed.

In emergency reserves 34 billion tenge are provided.

In case of possible flooding, 1,700 reception centers for the evacuated population were prepared, routes were updated, vehicles were allocated. For life support akimats prepared the necessary tools (tents, beds), food supplies and drinking water.

In order to promptly respond to possible complications of the flood situation, special forces and means of the internal affairs bodies were created with a total of 9 thousand people and 1,730 pieces of equipment.

Starting today (Feb. 25 26, 2020), the Republican command and staff exercise “Koktem 2020” with the headquarters in Nur Sultan is taking place, which checks the readiness of the forces involved.

The Roadmap for the Prevention and Elimination of Flood Threats for 2017 2020 is being implemented, which over the past 3 years has eliminated the threat of flooding in 437 and minimized risks in 287 settlements.

As part of the Roadmap for material and technical equipment, about 900 pieces of equipment were purchased, including motor pumps, watercraft, and all terrain vehicles.

In general, there is no need to talk about complete readiness for the flood situation this year. Planned activities for relocation to safe areas of residents of houses located within water protection zones are not being implemented. Of course, this is a very costly event, but the consequences of inaction can be much larger, he said.

Also in 2019, 36 events out of 91 planned remained unfulfilled. This year, 132 events are under threat of disruption, of which 53 are provided for financing from the republican budget.

In this regard, it is proposed that the Ministry of Internal Affairs suggests that central and local executive bodies find funds for implementing the planned measures, take comprehensive measures to complete the Roadmap in 2020, and continue work on the prevention and elimination of flood threats within the framework of the Territory Development Plans.

It was also noted about the need for urgent measures to clear settlements from snow in order to avoid flooding by meltwater. The minster drew attention to the issues of transferring state ownership of ownerless reservoirs and dams, most of which are in unsatisfactory condition.

In the flood period, we must have free volumes in reservoirs. Without this, it is impossible to regulate the safe level of rivers, said the minister.

In addition, he said, there was a need to repair 463 hydraulic structures and take additional measures to prevent the destruction of infrastructure facilities, especially to prevent flooding of sections of roads and railways.

In conclusion, the minister noted that on Feb. 11, 2020, under the chairmanship of Deputy Prime Minister Roman Sklyar, a meeting of the Interdepartmental State Commission for the Prevention and Response of Emergencies was held, where issues of the state of readiness of management bodies, forces and means of the civil protection system during the flood period were discussed.

Source: Kazakhtan 2050

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