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26 May 2021

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Kuanysh Zhaikov

CRC Partner

We have met with the Minister of Economy at the site of the Senate. I was pleased to know that economics as a whole is no longer perceived as something to be solved in a blunt, soviet-style manner and some spoke about institutions - formal and informal.
I share some interesting messages: 56% of Kazakhstanis tested indicated that they prefer leadership positions; 45% of Kazakhstanis tested do not have "soft" skills (communications, teamwork, out-of-box thinking); the State forgot about (and abandoned) the National Plan 2025 - it declares pro-market reforms, while sectoral laws make the quasi-public sector even bigger than before; the north is the most “creative” part of the country - the largest ratio of freelancers (except Almaty) in Kazakhstan are observed in Kostanay, Karaganda, Petropavlovsk and Pavlodar; business-related problems on social media are discussed by those who have nothing to do with it, and 38% of all negative activities online is created by 128 accounts.
I gave my opinion on the prospects of Kazakhstan’s industries: external shocks, though significant, are not as important as our own knowledge; industries are interconnected, like uneven beads – you pull one, all the others shake; on the global market, we specialize in low complexity industries that provide neither internal networks nor special knowledge; a "jump" into complex industries is practically impossible - we will gradually master the following “simple” industries; after the “oil party” we will have a long “hangover” - and instead of suffering a little and moving on, we’ve been “drinking” little by little for 10 years, all at the expense of National Fund; all things considered, adequate growth for our economy is 3.2% on average.
The semi-positive message – Kazakhstan has suddenly become globally specialized in the education sector. But there are 2 conditions to be noted: this is not about quality, but about quantity - we have many times more children and young people than in developed countries; aid by the National Fund, which allowed to increase teacher salaries last year, is a significant part of the added value of the industry.
While I listened to the speakers and checked their words through my values, I noticed several inconsistencies: "Diametric Xiaopeng." Whereas Den Xiaopeng paid tribute to socialism and built a de-facto capitalist system, we, on the other hand, paid tribute to the market economy, but are building a de-facto communist system – “if everyone jumps, I will jump too.”
If other countries are now driving themselves into a swamp, this does not mean that we should do the same. On the contrary, if bureaucrats in countries around us deprive their citizens of economic freedom, the most correct strategy is to offer them freedom. "It's good that there is Irina Kairatovna (rap music group)." It seems my "80s" have already finished. The Minister was probably the most pro-market, but many urged him to introduce even more regulation. You shouldn't deify the State, you should do it like IK (Irina Kairatovna) - either you criticize it (like Kuanysh), or you come into contact with it in your professional area (Azamat).

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