Transcript Slide 1

ENTREPRENEURSHIP IN KAZAKHSTAN: CHALLENGES AND OPPORTUNITIES
The infrastructure to support the development and expansion of foreign
economic activities of Kazakhstani SMEs
23 May 2013
Astana, Kazakhstan
Olga Memedovic
Chief, Europe and NIS Programme
United Nations Industrial Development Organization
DOING BUSINESS 2010
DOING BUSINESS 2013
Georgia
11
9
Georgia
FYR Macedonia
32
23
FYR Macedonia
Azerbaijan
38
32
Armenia
Armenia
43
49
Kazakhstan
Bulgaria
44
51
Montenegro
Romania
55
58
Belarus
Belarus
58
66
Bulgaria
Kazakhstan
63
67
Azerbaijan
Montenegro
71
71
Turkey
Turkey
73
72
Romania
Albania
82
83
Moldova
Serbia
88
85
Albania
Moldova
94
86
Serbia
Bosnia & Her
116
112
Russian Fed
Russian Fed
120
126
Bosnia & H.
Ukraine
142
137
Ukraine
Uzbekistan
150
154
Uzbekistan
Economic - World Bank
Doing Business 2010/2013
rankings
• Georgia and FYR Macedonia best
performing countries in 2010 and
2013
• Many EECCA countries have
improved their rankings between
2010 and 2013, but remain near the
bottom of the table
Economy Rankings - Doing Business 2013
Ease of Doing
Business Rank
Starting
a
Business
Registering
a Property
Getting
Credit
Protecting
Investors
Paying
Taxes
Trading
Across
Borders
Enforcing
Contracts
Resolving
Insolvency
Kazakhstan
49
7
7
19
1
1
22
7
6
Belarus
58
3
2
21
16
17
18
2
7
Kyrgyzstan
70
5
6
4
2
23
21
13
23
Russian Fed
112
21
12
21
21
9
19
1
5
Ukraine
137
10
24
6
21
22
17
10
24
Tajikistan
141
17
17
24
6
24
23
11
12
Economies are ranked on their ease of doing business, from 1 – 185. A high ranking on the ease of
doing business index means the regulatory environment is more conducive to the starting and
operation of a local firm. This index averages the country's percentile rankings on 10 topics, made
up of a variety of indicators, giving equal weight to each topic. The rankings for all economies are
benchmarked to June 2012.
Source: IFC/World Bank
Global Competitiveness Index 2012-2013
The World Economic Forum Global Competitiveness Report, 2012–2013, ranked Kazakhstan 51
among the 144 countries surveyed, up from 72nd place in 2011 higher than Russia, Georgia or
any other non-EU former Soviet republic, except Azerbaijan
Russian Fed
Ukraine
Kazakhstan
Kyrgyzstan
Tajikistan
Structural transformation- Increasing urbanization
Growing urban populations
Value added by agriculture, industry and services in Kazakhstan
70
60
50
40
Agriculture, value added (%
of GDP)
30
Industry, value added (% of
GDP)
20
Services, etc., value added
(% of GDP)
10
19
90
19
92
19
94
19
96
19
98
20
00
20
02
20
04
20
06
20
08
20
10
0
Source: World Bank 2012
Trade indicators
Source: World Bank
Industry, value added (% of GDP)
Exports of goods and services (% of GDP)
45
60
Kazakhstan
Kazakhstan
Europe and Central
Asia
World
25
Europe and
Central Asia
30
2003
2011
2003
World
2011
Manufacturing value added, % GDP
GDP Growth (annual GDP)
Kazakhstan
10
18
World
World
Europe and Central Asia
Kazakhstan
Europe and
Central Asia
0
-5
2003
2011
10
2003
2011
Europe and NIS Region
Global Innovation Index rankings (INSEAD)
Country/Economy
Score (0-100)
Rank
(1-125)
Income
Switzerland
63.82
1
HI
Sweden
62.12
2
HI
Singapore
59.64
3
HI
Estonia
49.18
23
HI
Hungary
48.12
25
HI
Czech Republic
47.30
27
HI
Cyrus
46.45
28
HI
Slovenia
45.07
30
HI
Latvia
39.80
36
HI
Slovak Republic
39.05
37
HI
Moldova, Rep.
38.66
39
LM
Lithuania
38.49
40
UM
Bulgaria
38.42
42
UM
Poland
38.02
43
HI
Croatia
37.98
44
HI
Romania
36.83
50
UM
Serbia
36.31
55
UM
Russian Federation
35.85
56
UM
Ukraine
35.01
60
LM
Turkey
34.11
65
UM
Global Innovation Index rankings (INSEAD)
(continued)
Country/Economy
Score (0-100)
Rank
(1-125)
Income
Macedonia
33.47
67
UM
Armenia
33.00
69
LM
Georgia
31.87
73
LM
Bosnia & Herzegovina
30.84
76
UM
Albania
30.45
80
UM
Kazakhstan
30.32
84
UM
Kyrgyzstan
29.79
85
LI
Azerbaijan
29.17
88
UM
Tajikistan
24.50
116
LI
Yemen
20.72
123
LM
Sudan
20.36
124
LM
Algeria
19.79
125
UM
Source: INSEAD (2011)
Note: World Bank Income Group Classification (January 2011): LI = low income; LM = lower-middle income; UM = upper-middle income; and HI
= high income; World Bank Regional Classification (January 2011):
ECS = Europe & Central Asia; MEA = Middle East & North Africa; SSF = Sub-Saharan Africa; EAS = East Asia & Pacific; SAS = South Asia;
NAC = North America; and LCN = Latin America & Caribbean
Economic - Intra-industry trade (IIT) scores (0-10) –
two way trade of products within the same sector
Growth in IIT is associated with and expansion in trade through greater specialization
and economies of scale rather than comparative advantage. Further, IIT is associated
with foreign direct investment, innovation and the accumulation of knowledge.
0.40
0.35
0.30
0.25
0.20
0.15
0.10
0.05
0.00
1992
1994
1996
1998
2000
NMS
Source: UNIDO, based on UN Comtrade
2002
2004
EECA MICs
2006
2008
2010
Share in world manufactured intermediate goods exports and imports
The share in world manufactured intermediate goods exports and imports remains very low.
Imports
Exports
100
%
90
100
80
90
70
80
60
70
60
50
%
40
50
40
30
30
20
20
10
10
0
1988
1994
2000
2010
0
1988
Industrialized countries
Developing countries
CIS
1994
2000
2010
Stages of catching-up Industrialization
Creativity
Arrival of
manufacturing
FDI
Agglomeration
(acceleration of
FDI)
Monoculture,
agriculture, aid
dependency
Pre industrialisation
STAGE THREE
STAGE TWO
STAGE ONE
STAGE ZERO
Technology
absorption
Simple
manufacturing
under foreign
guidance
Have supporting
industries but still
under foreign
guidance
Management &
technology
mastered, can
produce high
quality goods
STAGE FOUR
Full capability
in innovation
and design as
global leader
Japan, US, EU
Korea, China
Middle Income Trap
Initial FDI
absorption
Internalizing parts Internationalizing
and
Internationalizing
skills and
components
innovation
technology
Role of
multilateralism
& regionalism/
bilateralism
International
public goods
Global
Domain
National
Domain
National
public
goods
Role of
public and
private
sector
SMEs-Clusters and GVC linkages
!The share of total population employed in
SME: 32 % in 2011 > developed countries
average: 50-70%.
Globalization of industry:
GVC
Local industries
SMEs and clusters
Business Environment
Industrial strategies, policies and programmes
Regulatory: IPR, contract protection, and enforcement
Regional Innovation System
SMEs/Clusters
Customers
Contractors
Knowledge application &
exploitation and
transformation subsystem
Competitors
Collaborators
ICT
Governance
system :
university;
government and
business
Flows of resources:
knowledge, finance
& skills
Venture capitalist, Lawyers for
patents and IPR
Governance
system :
university;
government and
business
Memedovic after Cooke 2006, UNIDO
Technology and productivity centers, cleaner
production centers,
Investment promotion centers
Quality infrastructure: metrology, standards,
testing, and quality control centres;
Export consortia; Commercial banks;
Business incubators; Technology parks,
Consulting firms; Educational centres
Building trust and
confidence in
institutions and their
reliability
Knowledge generation &
diffusion subsystem
Thank you for your attention!
[email protected]
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