Kazakhstan - WEForum - World Economic Forum
2.1: Country/Economy Profiles
Kazakhstan Key indicators, 2010
GDP (PPP) per capita (int’l $), 1985–2010
Population (millions).................................................15.8 GDP (US$ billions)...................................................138.4 GDP per capita (US$) .............................................8,883 GDP (PPP) as share (%) of world total..................0.26
Kazakhstan
15,000
Commonwealth of Independent States
12,000 9,000 6,000 3,000
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
Global Competitiveness Index Rank (out of 142)
Stage of development
Score (1–7)
GCI 2011–2012 ........................................................ 72......4.2
Factor driven
Basic requirements (42.9%)...............................................62........ 4.6 Institutions.............................................................................94........ 3.5 Infrastructure........................................................................82........ 3.7 Macroeconomic environment ...........................................18........ 5.9 Health and primary education...........................................85........ 5.5
222
Transition 1–2
1
GCI 2010–2011 (out of 139)..................................................72........ 4.1 GCI 2009–2010 (out of 133)..................................................67........ 4.1
Transition 2–3
2
3
Efficiency driven
Innovation driven
Institutions 7
Innovation
5
Business sophistication
Efficiency enhancers (47.8%)............................................76........ 4.0 Higher education and training...........................................65........ 4.2 Goods market efficiency.....................................................87........ 4.1 Labor market efficiency......................................................21........ 4.9 Financial market development ........................................121........ 3.3 Technological readiness.....................................................87........ 3.4 Market size ...........................................................................55........ 4.1
Infrastructure
6
Macroeconomic environment
4 3 2
Market size
Health and primary education
1
Higher education and training
Technological readiness
Innovation and sophistication factors (9.3%) ..............114........ 3.0 Business sophistication ...................................................109........ 3.4 Innovation............................................................................116........ 2.7
Financial market development
Goods market efficiency Labor market efficiency
Kazakhstan
Economies in transition from 1 to 2
The most problematic factors for doing business Corruption..............................................................................17.3 Inadequately educated workforce ...................................12.3 Access to financing.............................................................12.1 Inefficient government bureaucracy................................10.8 Tax regulations .......................................................................8.9 Inflation....................................................................................7.6 Tax rates ..................................................................................7.3 Poor work ethic in national labor force.............................6.0 Inadequate supply of infrastructure...................................5.3 Crime and theft.......................................................................3.3 Foreign currency regulations ..............................................3.0 Restrictive labor regulations................................................2.1 Poor public health..................................................................2.0 Government instability/coups..............................................1.3 Policy instability .....................................................................0.8 0
5
10 15 Percent of responses
20
25
Note: From a list of 15 factors, 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.
The Global Competitiveness Report 2011-2012 © 2011 World Economic Forum
30
The Global Competitiveness Index in detail INDICATOR
VALUE RANK/142
INDICATOR
1st pillar: Institutions
VALUE RANK/142
6th pillar: Goods market efficiency
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
Property rights....................................................... 3.6 .......... 107 Intellectual property protection ............................. 2.6 .......... 116 Diversion of public funds ...................................... 2.8 ............98 Public trust of politicians ....................................... 3.3 ............46 Irregular payments and bribes .............................. 3.4 ............99 Judicial independence........................................... 2.7 ...........111 Favoritism in decisions of government officials .... 2.6 .......... 100 Wastefulness of government spending ................ 3.5 ............50 Burden of government regulation ......................... 3.3 ............65 Efficiency of legal framework in settling disputes 3.4 ............87 Efficiency of legal framework in challenging regs. 3.1 ............91 Transparency of government policymaking........... 4.5 ............53 Business costs of terrorism .................................. 5.4 ............83 Business costs of crime and violence .................. 4.5 ............87 Organized crime .................................................... 4.4 .......... 104 Reliability of police services.................................. 3.3 ...........111 Ethical behavior of firms ....................................... 3.6 ............93 Strength of auditing and reporting standards ....... 4.3 ............93 Efficacy of corporate boards ................................. 4.6 ............67 Protection of minority shareholders’ interests...... 3.6 .......... 113 Strength of investor protection, 0–10 (best)* ....... 6.0 ............36
2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09
Quality of overall infrastructure ............................. 3.8 ............85 Quality of roads..................................................... 2.5 .......... 125 Quality of railroad infrastructure............................ 3.9 ............33 Quality of port infrastructure................................. 3.6 .......... 104 Quality of air transport infrastructure .................... 3.9 .......... 103 Available airline seat kms/week, millions* ........ 196.2 ............62 Quality of electricity supply................................... 3.9 ............91 Fixed telephone lines/100 pop.* ......................... 25.0 ............46 Mobile telephone subscriptions/100 pop.* ....... 123.3 ............38
3.01 3.02 3.03 3.04 3.05 3.06
Government budget balance, % GDP*..................1.5 ............16 Gross national savings, % GDP* ........................ 35.3 ............12 Inflation, annual % change*...................................7.4 ...........117 Interest rate spread, %* ....................................... n/a ........... n/a General government debt, % GDP* .................... 11.4 ............12 Country credit rating, 0–100 (best)* ................... 52.5 ............69
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 ........................... 4.1 .......... 121 Tuberculosis incidence/100,000 pop.* .............. 163.0 .......... 102 Business impact of HIV/AIDS ............................... 4.6 ............96 HIV prevalence, % adult pop.* ............................. 0.1 ............21 Infant mortality, deaths/1,000 live births*........... 25.6 ............91 Life expectancy, years*....................................... 68.4 .......... 101 Quality of primary education................................. 3.6 ............77 Primary education enrollment, net %* ............... 90.6 ............90
5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08
Secondary education enrollment, gross %*..... 103.0 ............18 Tertiary education enrollment, gross %* ............ 40.1 ............59 Quality of the educational system ........................ 3.0 .......... 112 Quality of math and science education ................ 3.7 ............85 Quality of management schools ........................... 3.6 .......... 109 Internet access in schools..................................... 4.0 ............72 Availability of research and training services ........ 3.9 ............80 Extent of staff training .......................................... 3.6 ............96
2nd pillar: Infrastructure
3rd pillar: Macroeconomic environment
4th pillar: Health and primary education
5th pillar: Higher education and training
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 ...........117 Extent of market dominance................................. 3.4 ............93 Effectiveness of anti-monopoly policy................... 3.2 .......... 121 Extent and effect of taxation................................. 3.8 ............41 Total tax rate, % profits*..................................... 29.6 ............31 No. procedures to start a business*........................ 6 ............34 No. days to start a business* ................................ 19 ............ 74 Agricultural policy costs ........................................ 4.1 ............49 Prevalence of trade barriers .................................. 4.0 .......... 112 Trade tariffs, % duty*............................................ 9.8 .......... 102 Prevalence of foreign ownership........................... 4.1 ...........111 Business impact of rules on FDI........................... 4.3 ............93 Burden of customs procedures ............................ 3.5 .......... 102 Imports as a percentage of GDP* ...................... 28.9 .......... 116 Degree of customer orientation............................ 3.9 ...........117 Buyer sophistication.............................................. 3.9 ............40
7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09
Cooperation in labor-employer relations................ 4.2 ............78 Flexibility of wage determination .......................... 5.5 ............31 Rigidity of employment index, 0–100 (worst)* .... 17.0 ............39 Hiring and firing practices ..................................... 4.4 ............34 Redundancy costs, weeks of salary* ...................... 9 ............16 Pay and productivity .............................................. 4.7 ............18 Reliance on professional management ................. 3.6 .......... 116 Brain drain ............................................................. 3.1 ............88 Women in labor force, ratio to men*.................. 0.91 ............19
8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08
Availability of financial services............................. 4.1 ............91 Affordability of financial services .......................... 3.6 .......... 103 Financing through local equity market .................. 2.8 .......... 107 Ease of access to loans ........................................ 2.1 .......... 120 Venture capital availability ..................................... 2.3 ............92 Soundness of banks.............................................. 3.9 .......... 131 Regulation of securities exchanges....................... 3.6 .......... 112 Legal rights index, 0–10 (best)* ............................ 4.0 ............89
9.01 9.02 9.03 9.04 9.05 9.06
Availability of latest technologies .......................... 4.4 .......... 103 Firm-level technology absorption .......................... 4.1 .......... 113 FDI and technology transfer.................................. 4.1 .......... 100 Internet users/100 pop.*..................................... 34.0 ............77 Broadband Internet subscriptions/100 pop.* ........ 5.3 ............71 Internet bandwidth, kb/s/capita*........................... 2.9 ............ 74
2.1: Country/Economy Profiles
Kazakhstan
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)* ................. 4.8 ............47
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 .......................................... 4.0 .......... 124 Local supplier quality............................................. 3.9 .......... 105 State of cluster development................................ 3.3 ............85 Nature of competitive advantage .......................... 2.5 .......... 129 Value chain breadth ............................................... 3.0 .......... 115 Control of international distribution....................... 3.6 .......... 108 Production process sophistication ........................ 3.3 ............84 Extent of marketing............................................... 3.8 ............85 Willingness to delegate authority ......................... 3.2 .......... 101
12.01 12.02 12.03 12.04 12.05 12.06 12.07
Capacity for innovation.......................................... 2.6 .......... 101 Quality of scientific research institutions .............. 2.7 .......... 121 Company spending on R&D.................................. 2.6 .......... 107 University-industry collaboration in R&D............... 2.9 .......... 119 Gov’t procurement of advanced tech products..... 3.4 ............93 Availability of scientists and engineers ................. 3.4 .......... 106 Utility patents granted/million pop.* ..................... 0.1 ............81
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 89.
The Global Competitiveness Report 2011-2012 © 2011 World Economic Forum
223
Kazakhstan Key indicators, 2010
GDP (PPP) per capita (int’l $), 1985–2010
Population (millions).................................................15.8 GDP (US$ billions)...................................................138.4 GDP per capita (US$) .............................................8,883 GDP (PPP) as share (%) of world total..................0.26
Kazakhstan
15,000
Commonwealth of Independent States
12,000 9,000 6,000 3,000
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
Global Competitiveness Index Rank (out of 142)
Stage of development
Score (1–7)
GCI 2011–2012 ........................................................ 72......4.2
Factor driven
Basic requirements (42.9%)...............................................62........ 4.6 Institutions.............................................................................94........ 3.5 Infrastructure........................................................................82........ 3.7 Macroeconomic environment ...........................................18........ 5.9 Health and primary education...........................................85........ 5.5
222
Transition 1–2
1
GCI 2010–2011 (out of 139)..................................................72........ 4.1 GCI 2009–2010 (out of 133)..................................................67........ 4.1
Transition 2–3
2
3
Efficiency driven
Innovation driven
Institutions 7
Innovation
5
Business sophistication
Efficiency enhancers (47.8%)............................................76........ 4.0 Higher education and training...........................................65........ 4.2 Goods market efficiency.....................................................87........ 4.1 Labor market efficiency......................................................21........ 4.9 Financial market development ........................................121........ 3.3 Technological readiness.....................................................87........ 3.4 Market size ...........................................................................55........ 4.1
Infrastructure
6
Macroeconomic environment
4 3 2
Market size
Health and primary education
1
Higher education and training
Technological readiness
Innovation and sophistication factors (9.3%) ..............114........ 3.0 Business sophistication ...................................................109........ 3.4 Innovation............................................................................116........ 2.7
Financial market development
Goods market efficiency Labor market efficiency
Kazakhstan
Economies in transition from 1 to 2
The most problematic factors for doing business Corruption..............................................................................17.3 Inadequately educated workforce ...................................12.3 Access to financing.............................................................12.1 Inefficient government bureaucracy................................10.8 Tax regulations .......................................................................8.9 Inflation....................................................................................7.6 Tax rates ..................................................................................7.3 Poor work ethic in national labor force.............................6.0 Inadequate supply of infrastructure...................................5.3 Crime and theft.......................................................................3.3 Foreign currency regulations ..............................................3.0 Restrictive labor regulations................................................2.1 Poor public health..................................................................2.0 Government instability/coups..............................................1.3 Policy instability .....................................................................0.8 0
5
10 15 Percent of responses
20
25
Note: From a list of 15 factors, 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.
The Global Competitiveness Report 2011-2012 © 2011 World Economic Forum
30
The Global Competitiveness Index in detail INDICATOR
VALUE RANK/142
INDICATOR
1st pillar: Institutions
VALUE RANK/142
6th pillar: Goods market efficiency
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
Property rights....................................................... 3.6 .......... 107 Intellectual property protection ............................. 2.6 .......... 116 Diversion of public funds ...................................... 2.8 ............98 Public trust of politicians ....................................... 3.3 ............46 Irregular payments and bribes .............................. 3.4 ............99 Judicial independence........................................... 2.7 ...........111 Favoritism in decisions of government officials .... 2.6 .......... 100 Wastefulness of government spending ................ 3.5 ............50 Burden of government regulation ......................... 3.3 ............65 Efficiency of legal framework in settling disputes 3.4 ............87 Efficiency of legal framework in challenging regs. 3.1 ............91 Transparency of government policymaking........... 4.5 ............53 Business costs of terrorism .................................. 5.4 ............83 Business costs of crime and violence .................. 4.5 ............87 Organized crime .................................................... 4.4 .......... 104 Reliability of police services.................................. 3.3 ...........111 Ethical behavior of firms ....................................... 3.6 ............93 Strength of auditing and reporting standards ....... 4.3 ............93 Efficacy of corporate boards ................................. 4.6 ............67 Protection of minority shareholders’ interests...... 3.6 .......... 113 Strength of investor protection, 0–10 (best)* ....... 6.0 ............36
2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09
Quality of overall infrastructure ............................. 3.8 ............85 Quality of roads..................................................... 2.5 .......... 125 Quality of railroad infrastructure............................ 3.9 ............33 Quality of port infrastructure................................. 3.6 .......... 104 Quality of air transport infrastructure .................... 3.9 .......... 103 Available airline seat kms/week, millions* ........ 196.2 ............62 Quality of electricity supply................................... 3.9 ............91 Fixed telephone lines/100 pop.* ......................... 25.0 ............46 Mobile telephone subscriptions/100 pop.* ....... 123.3 ............38
3.01 3.02 3.03 3.04 3.05 3.06
Government budget balance, % GDP*..................1.5 ............16 Gross national savings, % GDP* ........................ 35.3 ............12 Inflation, annual % change*...................................7.4 ...........117 Interest rate spread, %* ....................................... n/a ........... n/a General government debt, % GDP* .................... 11.4 ............12 Country credit rating, 0–100 (best)* ................... 52.5 ............69
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 ........................... 4.1 .......... 121 Tuberculosis incidence/100,000 pop.* .............. 163.0 .......... 102 Business impact of HIV/AIDS ............................... 4.6 ............96 HIV prevalence, % adult pop.* ............................. 0.1 ............21 Infant mortality, deaths/1,000 live births*........... 25.6 ............91 Life expectancy, years*....................................... 68.4 .......... 101 Quality of primary education................................. 3.6 ............77 Primary education enrollment, net %* ............... 90.6 ............90
5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08
Secondary education enrollment, gross %*..... 103.0 ............18 Tertiary education enrollment, gross %* ............ 40.1 ............59 Quality of the educational system ........................ 3.0 .......... 112 Quality of math and science education ................ 3.7 ............85 Quality of management schools ........................... 3.6 .......... 109 Internet access in schools..................................... 4.0 ............72 Availability of research and training services ........ 3.9 ............80 Extent of staff training .......................................... 3.6 ............96
2nd pillar: Infrastructure
3rd pillar: Macroeconomic environment
4th pillar: Health and primary education
5th pillar: Higher education and training
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 ...........117 Extent of market dominance................................. 3.4 ............93 Effectiveness of anti-monopoly policy................... 3.2 .......... 121 Extent and effect of taxation................................. 3.8 ............41 Total tax rate, % profits*..................................... 29.6 ............31 No. procedures to start a business*........................ 6 ............34 No. days to start a business* ................................ 19 ............ 74 Agricultural policy costs ........................................ 4.1 ............49 Prevalence of trade barriers .................................. 4.0 .......... 112 Trade tariffs, % duty*............................................ 9.8 .......... 102 Prevalence of foreign ownership........................... 4.1 ...........111 Business impact of rules on FDI........................... 4.3 ............93 Burden of customs procedures ............................ 3.5 .......... 102 Imports as a percentage of GDP* ...................... 28.9 .......... 116 Degree of customer orientation............................ 3.9 ...........117 Buyer sophistication.............................................. 3.9 ............40
7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09
Cooperation in labor-employer relations................ 4.2 ............78 Flexibility of wage determination .......................... 5.5 ............31 Rigidity of employment index, 0–100 (worst)* .... 17.0 ............39 Hiring and firing practices ..................................... 4.4 ............34 Redundancy costs, weeks of salary* ...................... 9 ............16 Pay and productivity .............................................. 4.7 ............18 Reliance on professional management ................. 3.6 .......... 116 Brain drain ............................................................. 3.1 ............88 Women in labor force, ratio to men*.................. 0.91 ............19
8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08
Availability of financial services............................. 4.1 ............91 Affordability of financial services .......................... 3.6 .......... 103 Financing through local equity market .................. 2.8 .......... 107 Ease of access to loans ........................................ 2.1 .......... 120 Venture capital availability ..................................... 2.3 ............92 Soundness of banks.............................................. 3.9 .......... 131 Regulation of securities exchanges....................... 3.6 .......... 112 Legal rights index, 0–10 (best)* ............................ 4.0 ............89
9.01 9.02 9.03 9.04 9.05 9.06
Availability of latest technologies .......................... 4.4 .......... 103 Firm-level technology absorption .......................... 4.1 .......... 113 FDI and technology transfer.................................. 4.1 .......... 100 Internet users/100 pop.*..................................... 34.0 ............77 Broadband Internet subscriptions/100 pop.* ........ 5.3 ............71 Internet bandwidth, kb/s/capita*........................... 2.9 ............ 74
2.1: Country/Economy Profiles
Kazakhstan
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)* ................. 4.8 ............47
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 .......................................... 4.0 .......... 124 Local supplier quality............................................. 3.9 .......... 105 State of cluster development................................ 3.3 ............85 Nature of competitive advantage .......................... 2.5 .......... 129 Value chain breadth ............................................... 3.0 .......... 115 Control of international distribution....................... 3.6 .......... 108 Production process sophistication ........................ 3.3 ............84 Extent of marketing............................................... 3.8 ............85 Willingness to delegate authority ......................... 3.2 .......... 101
12.01 12.02 12.03 12.04 12.05 12.06 12.07
Capacity for innovation.......................................... 2.6 .......... 101 Quality of scientific research institutions .............. 2.7 .......... 121 Company spending on R&D.................................. 2.6 .......... 107 University-industry collaboration in R&D............... 2.9 .......... 119 Gov’t procurement of advanced tech products..... 3.4 ............93 Availability of scientists and engineers ................. 3.4 .......... 106 Utility patents granted/million pop.* ..................... 0.1 ............81
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 89.
The Global Competitiveness Report 2011-2012 © 2011 World Economic Forum
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