Financial investments

2. Preservation of high-risk economy because of preservation of a raw disproportion of economy and an orientation of investments.

3. Loss of the available industrial and production potential of development of the country, because of the low volumes of investment into fixed capital.

4. Fixing of negative investment image of the country, owing to lack of an accurate state policy and its realization on attraction of investments.

5. A real loss of the state budget because of inefficient application of the funds allocated for attraction of investments.

6. Corruption (on a customs post, at payment of taxes).

SWOT analysis of development of SEZ in Kazakhstan

Table 3

Weaknesses:

1. Now in SEZ there is no mechanism of involvement of professional management company, powers between managements and management companies under the current law aren't differentiated, and also there is no uniform government body of management (actually at each SEZ own state agency of management).

2. Investment appeal of the Kazakhstan SEZ is insufficiently high now as conditions of their functioning aren't focused on real requirements and interests of investors.

Removal of a branch binding of special economic zones is supposed, the export orientation of production and labor productivity will become the main criterion for the companies. The main incentive of participation of the investor in SEZ is existence of the special preferences and privileges doing implementation of activity in SEZ economically attractive. Today the current legislation about SEZ contains not enough the incentives promoting involvement of third-party investors to the solution of the most actual tasks, doesn't favor to realization of potential of SEZ of the Republic of Kazakhstan.

3. The list of the resolved types of OKED for SEZ limits involvement of participants to activity of SEZ. Also by consideration of investment projects for SEZ, there is an orientation to large investment projects. In functioning of SEZ the insufficient number of specialized services for participants of SEZ is observed.

4. At implementation of activity of SEZ a large number of coordination between managements of SEZ and the authorized organizations is observed. For opening of production in the territory of SEZ investors should wait for the statement them as participants of SEZ over 1 year.

5. For creation and completion of construction of SEZ there is a slow allocation of the budgetary financing. Also, at creation low productivity of the budgetary is observedexpenses (the empty conference rooms instead of infrastructure are under construction).

Strengths:

1. Now in the Republic of Kazakhstan support of business climate of the country is observed - much attention is paid to business development. For development of economy in general, for the purpose of protection and support of subjects of business the reforms establishing in the legislative way certain privileges are carried out. However, the undertaken measures aren't sufficient for development of industrial and regional policy.

In the Republic of Kazakhstan the success of the carried-out reforms in Kazakhstan in many respects depends on skillful search and finding of the priority directions of industrial and regional policy which weren't up to the end created today. In such situation the organization of national system of free economic zones can become one of positive steps on the way of transformation of economy.

2. In the Republic of Kazakhstan existence of rich natural and mineral resources plays a crucial role on the economic principles of division into districts, carrying out on the basis of public and territorial division of labor, promoting in the conditions of today's formation and tomorrow's development of market economy to increase of its productivity and on this base to the best satisfaction of diverse requirements of society. The differentiated potential of natural resources is one of key factors of development and addition of territorial structure of the Kazakhstan economy. Therefore the branch specialization of regions connected with features of their natural and resource potential gives prerequisites to development of SEZ.

3. The favorable site of the Republic of Kazakhstan between the consumer markets of strategic partners gives the chance to participate in multilateral international economic projects that promotes regional integration. In such favorable conditions it is very important to develop SEZ for increase in economic capacity of the republic.

Threats:

As a result of an ineffective state policy, there can be such factors influencing loss of investment appeal as: an inefficiency of management of SEZ, instability of the tax law for residents SEZ, bureaucratization, continuous changes of structure of management of SEZ of all, a large number of coordination between managements of SEZ and the authorized organizations, slow allocation of the budgetary financing.

Opportunities:

1. As a result of entry of the Republic of Kazakhstan into structure of the Customs union, for participants of the created SEZ the exit to new sales markets of the made production opens.

2. Proposed measures will allow to attract investors and to reach GPFIIR indicators, namely:

the volume of investment into production in territories of SEZ will make 1 trillion 588 billion tenges;

output of goods and services - 718 billion tenges, including export of production not less than 50% of output;

will increase number of participants of SEZ to 160.

Thus, SWOT analysis of attraction of investments, developments of SEZ and stimulation of the Kazakhstan export shows, what not the accounting of the given weaknesses can lead to realization further of the given threats in attraction of investments, development of SEZ and stimulation of export. In too time use of the strengths which are available when exporting the Kazakhstan production can lead to realization of those opportunities which are given in this table.

3.3 World experience of attracting investments

To estimate efficiency of attraction of investments into Kazakhstan it is necessary to consider what general tendencies of attraction of AFI on other regions and the countries of the world.

Financial and economic crisis extremely seriously affected global streams of AFI around the world. It is expected that inflow of such investments will be reduced from 1,7 trillion US dollars in 2008 to less than 1,2 trillion US dollars in 2009, in 2010 it will a little be restored (to 1,4 trillion US dollars) and in 2011 will resume the growth (approximately to 1,8 trillion US dollars).

Crisis changed the directions of a stream and volume of AFI (tab. 8): investments into developing countries and countries with economies in transition sharply increased, and their share in global streams of PII in 2008 reached 43%. Partly it was caused by simultaneous considerable reduction of inflow of PII to the developed countries (29%). In Africa inflow of investments reached record level, and the highest rates of its gain were noted in the Western Africa (a gain for 63% against 2007); import of investments in Southern, East and Southeast Asia increased by 17% and broke a new record; inflow of AFI to the Western Asia continued to increase the sixth year in a row; import of investments into Latin America and the Caribbean Region grew by 13%; and the increase in inflow of AFI to Southeast Europe and the CIS was recorded the eighth year in a row. Nevertheless, in 2009 streams of AFI will be reduced in all regions.

Growth rates of inflow of AFI on regions of the world visually reflect change of the direction of investments - in 2008 in the conditions of decrease in volumes of inflow of AFI in general in the world (for 14,2%) and to the developed countries (for 29,1%), the essential gain of the volumes of investment into developing countries (for 17,3%) and the CIS countries is observed (for 25,9%).

World leadership in volumes of attraction of AFI in 2008 (tab. 9) remained for the USA (24,5% of the sum "the Top 20"), further there are France (9,1%) and China (8,4%). Considerably volumes of inflow of AFI to Russia, Italy, Sweden, India and Saudi Arabia grew.

The international experiment on the organization of service support of investors and assistance in attraction of investments is rather diverse. Now Agencies on attraction of investments successfully work in more than 160 countries of the world.

Table 4 - Dynamics of inflow of AFI on regions and the countries of the world

Table 5 - A top of 20 countries on inflow of AFI

It is possible to carry to functions of such agencies: image construction; search and generation of investments; pre-investment support (maintenance) of the investor; information activities by investment opportunities and export production.

Malaysia, Malaysian Industrial Development Authority (MIDA) - the state agency which is coordinating and partially controlling some ministries makes offers in parliament, influences regions. Annual budget of the organization of $91 million, staff more than 600 employees. The government body, is completely financed by the state, has 19 foreign representations.

Korea, Invest Korea - coordinates investment activity, influences governors through drawing up the reports estimating work of regions. Annual budget of the organization of $234 million. The organization, is completely financed by the state.

Australia, Austria - coordinates investments, activity in the government and in regions, approves investment projects, makes recommendations to parliament and the prime minister, supports all foreign economic relations. The annual budget of the organization of $185 million, staff - 1 841 employees. The organization is created at the Ministry of Trade and investments, is completely financed by the state, the commission from investors doesn't receive, has 110 representations in 60 countries.

These organizations is the most important mechanism of attraction of PII which acts as a key link in formation of an image of the country as the addressee of investments, improvement of investment climate and active involvement of foreign investors.

The review of the international experience shows that the countries which succeeded in attraction of AFI pursued the policy directed on creation for investors of favorable conditions and helping them to do business without being put at excessive risk. However it means not only granting privileges (release from payment of the import customs duty and taxes, financial subsidies, decrease in rates of the import customs duties, etc.), but also carrying out stable macroeconomic policy. For improvement of investment climate the state needs to guarantee preservations of stability of macroeconomic climate, to improve conditions for business and to increase their predictability, to undertake measures for fight against corruption and bureaucracy.

In view of that the main task of investments consists in service to long-term goals of development and increase of competitiveness it is necessary to provide accurate communication between policy of attraction of foreign investments and industrial policy. Therefore privileges concerning investments have to be developed and provided by the government proceeding from plans of relative what industrial structure the country would like to have in the future as for each of branches there is the set of the specific factors defining its appeal to investors. For example, according to survey of the companies conducted by Ernst&Young about appeal of investment the foreign firms focused on high-tech industries and rendering business of services are very sensitive to such factors as existence of good telecommunication infrastructure (it is very important for 61,5% of the interrogated companies) and a labor skill level (it is very important for 53% from them). The companies focused on industrial production are very sensitive to economic efficiency (costs for labor are very important for 50% of the interrogated firms), the tax burdens, questions connected with regulation and relating to right area. Therefore privileges have to be provided for investors purposefully depending on motives of investments and prospects of development of this or that sector, and development of infrastructure (physical and industrial), stimulation of development of clusters, investments into the human capital can seriously promote inflow of investments into sectors with a high share of a value added.

Regarding fiscal encouragement of PII we suggest to consider successful experience of China.

The political policy withheld by the government of China throughout the long period on stability of reforms, doesn't cause in investors of doubts today. Now in China the flexible system of privileges considering a set of shades, both external economic interrelations, and internal between producers and the state is created.

So, investments into low profitable branches, the depressive, remote areas receive the release full or partial, for five years, and then for ten years - discounts for the sum of income tax in sizes from 15 to 30 percent.

At the enterprises of the industry, transport and communication with financing term more than 10 years the first two years the rate of income tax is equal to zero, from the third on the fifth can be lowered to 50%. Besides, at the enterprises with the latest technologies this term the solution of management of a zone can be reduced to 50% for 6-8 years.

The enterprises exporting 70% of production after the termination of privileges pay income tax of 10%. If, the reinvested part of profit is invested in agriculture, construction, infrastructure, high technologies and export-oriented productions, return of the withdrawn sum of income tax makes 100%.

The payment for the earth also has differentiation of rates on areas and types of productions.

Privileges, by the Chinese legislation receive also the sums of the investment funds allocated for reinvestments.

Thus, in China at this stage of development - coexistence of private business and the state, were created unique mutually beneficial relations, was a consequence of that flexible economic policy and rigid legislative base. Flexibility of economic policy of China is caused by desire of the state to create favorable conditions to all categories of investors, both own, and foreign. Rigidity of laws, allowed to balance possibilities of all players of the market and to create the identical games, despite of priorities - interests of government institutions and private business governed. Rigid fight against corruption manifestations, allowed China to eliminate practically obstacles and bureaucratic delays in registration of investment projects and documentation in various fields of activity. The differentiated approach in the taxation of different types of activity, allowed to stimulate development of the most necessary spheres in economy.

Proceeding from the available experience of the countries which succeeded in attraction of investments it is possible to allocate the next moments:

creation of a special support service of the investors who already came to the country (aftercare services) which would help them to solve the problems arising during implementation of their projects (the taxation, regulation in labor market, etc.) and I gave help in the solution of the controversial issues resulting from interaction with government bodies, could increase appeal of the country to investments;

such incentives for investors as granting grants by the state (on hiring of labor, research and development, training, etc.) could promote inflow to the country of investments from a blank sheet, especially to depressive regions;

as investments are very sensitive to tax burden, it is necessary to consider opportunity expansion of the existing tax preferences, and also to improve the attitude of tax administration towards investors;

it is necessary to work a question of a visa-free regime for heads and representatives of an administrative link, and also highly qualified specialists of the hi-tech companies from the specified countries for negotiation, acquaintance with production, the conclusion of transactions. The basis for entrance on the territory of the Republic of Kazakhstan without presentation of the visa will be the invitation of Committee on investments.

in view of that Kazakhstan rather small state, it is necessary to consider expediency of existence of six free economic zones. First, such zones can create effects similar to Chinese "roundtripping" when internal investments go abroad, and then come back in the form of foreign, for receiving the privileges provided by the SEZ mode. Secondly, the policy of creation of SEZ has to be accurately connected with industrial policy and its priorities. The third, creation of more attractive conditions for economic activity has to be the guideline of economic policy in general, and granting preferential conditions only for residents of SEZ isn't enough for achievement of success in attraction to the country of investments.

World experience of development of SEZ

In many countries of the world of SEZY proved the efficiency. Foreign experience shows that in the presence of accurately thought over strategy and the SEZ program are one of effective instruments of development of economy of certain regions and increase of competitiveness of production.

World experiment on creation of SEZ extremely extensive. Now in the world there are more than 1200 special economic zones in 120 countries of the world. The quantity of SEZ in the world from 1975 for 2010 grew by 15 times. The volume of export of the industrial output made in SEZ in 2010 exceeded 350 billion dollars. Thus more than a half of SEZ are created in the countries of Asia and the Middle East.

Experience of countries with economies in transition such as the People's Republic of China and the Republic Turkey is most interesting to Kazakhstan.

China. Experts note that progress of the Chinese zone projects is connected with timely creation in special areas of the most modern infrastructure - roads, communication, hotels that attracted the largest world investors. To 80% of all expenses it was financed by the state budget.

Main aim which was pursued by the government of China, opening SEZ - to receive the foreign capital, technologies and management. For this purpose in SEZ the most hothouse conditions for business were created.

The supreme body of administrative management by zones is the Office of the State Council of the People's Republic of China for SEZ. She develops the main political installations and controls their performance, performs the general management of other departments in that part of their activity which belongs to SEZ. In zones at municipalities under the direction of office Committees on management of SEZ are created.

The organizational centers of economic activity of each of steel zones, so-called, "the companies of development" to which the general management of capital construction, coordination of negotiations between Chinese and foreign partners is assigned. They act in contact with the provincial and city authorities. Have, mainly in Hong Kong and Macau, the foreign representations which are busied on involvement of investors.

Creation of SEZ in industrially developed areas strengthened their influence on economy of the region and all China, they became the universal tool for achievement of the objectives of long-term development.

Turkey. The main motivation of experience of Turkey in the field of SEZ - "It is impossible to create the ideal investment environment over all country, but it is possible to create special favorable zones".

The law regulating creation and activity of the free economic zones (FEZ) in Turkey is valid from 1987 when the Turkey's first SEZ - in Mersin and Antalya were created. In 1990 their number was replenished with the Aegean free economic zone in Izmir and the Istanbul zone of free business covering the area of the airport of Ataturk. In 1992 SEZ was created in Trabzon, in 1993 - in Adana, in 1994 - 1995 two SEZ in Erzurum and Mardin in the east of Turkey for the purpose of the fastest development of these more backward so far economically of areas were created.

The Turkish SEZ as much as possible rely on advantages of a geographical position of Turkey, its proximity to the markets as countries of the Middle East, and countries of Western and Eastern Europe. Thus the main attention is paid to strengthening of an export orientation of investments and productions in Turkey by attraction of the foreign capital and technologies, providing a regular and consecutive contribution to development of economy and expansion of use of external sources of financing and opportunities of international trade. The Turkish SEZ are enclaves, completely free from taxes, including from corporate and income. The businessmen who are carrying out the activity in SEZ are exempted also from any collecting and duties: customs, stamp, port.

Unlike the majority of other countries, in Turkey realization in domestic market of the goods made in SEZ or imported through them is allowed. Thus usual foreign trade regulation is applied to them. Actually about a third of a trade turnover of the Turkish SEZ is the share of trade in Turkey.

The foreign citizens having residence permit in Turkey can own in SEZ the companies from 100% the foreign capital. Employment of foreign experts and the administrative personnel is allowed.

Each of the Turkish SEZ in a certain degree has "specialization" depending on location and mission. So, the free economic zones in Mersin and Antalya located in fertile agricultural areas are focused mainly on creation of the enterprises for processing of agricultural production and to service of agrarian sector of these regions, and also export of production of agro-industrial sector. In Izmir SEZ emphasis is placed on electronics and the telecommunication equipment. The Istanbul zone of free business around the airport of Ataturk is aimed at production and trade in ready-to-wear clothes and hi-tech electronic production. SEZ of Adana specializes on the heavy industry.

Regulation and control of activity of free economic zones is exercised by the Ministry of the industry and trade. It is engaged in issue of licenses for the right of business activity in SEZ.

Korea. Experience of successful creation of SEZ is available in Korea where SEZY are not limited sites of the territory, but the whole cities which providing engineering infrastructure is carried out completely at the expense of the state budget. The Korean SEZ have no branch focus. For example, in the territory of free economic zone of Ganging projects on the following branches are realized: petrochemistry, metal working, light industry, high technologies. It allows one producer to consume production of other producer.

World experience shows that creation of SEZ is connected with definite purposes of the country leaders which are directed on increase of welfare in zones and in the country in general. To such purposes it is possible to carry increase in export, creation of workplaces, raising of depressive territories, alignment of interregional contrasts, transition from import substitution to export, change of structure of export, etc.

Thus measures for attraction of investments into SEZ are most often identical are tax and customs privileges and preferences.

World experience of development of export

Providing the system constructed and operating according to the best world practice, constantly changing dynamics of world tendencies, requires studying of various practice of the countries which are successfully advancing export and investments.

Activity of the organizations for advance of export is limited to rules of international trade and generally consists in providing various information necessary for export. The circle of such information varies from the standardized reports and seminars before specialized researches, databases, information from experience of participation in the international exhibitions and visit of foreign countries. Ways of realization of such activity the most various depending on the country.

Efficiency of activities for advance of export and investments widely differs, however its potential influence not always directly correlates with export growth, increase in inflow of PII as these indicators are defined by the whole set of economic factors and economic policy in other areas. Such set includes competitiveness, the used mechanisms of expenses, ensuring quality, technological equipment, access to the markets and some other which are defined by economic structure and all economic policy in general.

Taking into account it, and also importance of export for all economy in general, many countries transfer emphasis on development of export ability within the country. In other words, if advance of export concentrates on external activity, development of export does focus by internal efforts and on creation of the international competitiveness and an export potential of the companies.

For rendering service support of export, 119 countries created the specialized organizations for advance of export (OPE). For the last 20 years their number doubled. The budget of OPE averages 0,11% of the volume of export of the country. A source of financing of activity are means of the state budget.

By estimates of the international experts, from one dollar spent for financing of activity of OPE, return in the form of increase in volume of export makes in Latin America - $490, in Asia - $227 and in the countries of OECD - $160.

In the Appendix 1 the list of various programs used by the governments of the different countries for development and advance of export which are interesting to Kazakhstan is offered.

In the developed countries it is possible to carry the following to the most known organizations for ensuring the state support for advance of export and investments.

Trade and investments of Great Britain (UK Trade & Investment) - the government organization, Foreign & Commonwealth Office and Department of Trade and Industry subsidiary.The purpose of the organization - to increase competitiveness of the companies through foreign trade and investments, and to involve steady inflow of quality direct investments. Carries out national coordination between government bodies, administrations of self-government and regions in the field of development and advance of foreign trade and has the voice in the government representing exporters and the companies investing abroad. The organization supports the exporters and the foreign companies wishing to open or expand business in Great Britain through the transfer of knowledge and the program of support financed from own means and budget funds. Has the staff of 2300 employees and advisers, including foreign departments in embassies, the commissions, consulates and the trade missions, and also nine regions in England. The general budget about Ј80 million is formed of means of FCO and DTI, but there is also an independent budget on programs. There is a national strategy of advance of export and investments.

The agency on development of trade and investments of South Korea (KOTRA) is the non-profit government organization created on June 21, 1962 as the Korean corporation on assistance to trade (Korea Trade Promotion Corporation). Since then it promoted fast development of export-oriented economy of Korea, being engaged in various activities for assistance to trade, including by studying of the foreign markets and search of business partners. In August, 1995 assistance to cross-border investments and support of projects of technological and industrial cooperation were added to the main activities of KOTRA. KOTRA was renamed into the Korean agency of assistance to development of trade and investments for the purpose of assistance to development of trade and investments. KOTRA has effective system of foreign representations for performance of tasks of two directions of the activity - assistance of trade and to investments. At the moment there are 103 representations of KOTRA in 74 countries of the world.

The organization of development of foreign trade of Japan (JETRO) is the government organization created in 1958. The purpose of JETRO is trade development, attraction of investments into economy of Japan, and support of the companies of medium and small business in development of their export potential. The main activities of JETRO are: advance of direct foreign investments, cooperation within realization of JSEPA (The Japanese-Singapore Agreement on economic cooperation), consultation of the companies of small and medium business, participation in support of development of regions of Japan, carrying out researches in the field of economic development. JETRO has the staff of 1660 employees and 73 foreign representations in 55 countries of the world. The general budget makes 42,1 million yens.

3.4 Target indicators, tasks and indicators of results of implementation of the program

Table 6

4. Ways of improvement of the mechanism of attracting investments into the economy of Kazakhstan

Attraction of the foreign capital and increase of efficiency of its use demand improvement of an organizational, economic and legal mechanism for ensuring coherence of national interests of our country and interests of foreign investors, creation of the general favorable conditions of investment activity and the preferential mode for primary development of priority spheres of economy. Completion of the operating mechanism has to go in the direction of increase of its flexibility and self-adjustment depending on the changing economic situation. Important value gets increase of guarantees on protection of the rights of foreign investors and streamlining of the bureaucratic procedures which are slowing down process of attraction and use of foreign investments.One of forms of attraction of the foreign capital in an economics of Kazakhstan are external credits.

At the conclusion of credit agreements as well as at implementation of the planned investment projects, emergence of a default, that is problems with repayment of external debt is possible. Absence or imperfection of the mechanism of the movement of the investment projects served at the expense of foreign credit lines at all stages is the reason of defaults: the conclusion of the contract, decision-making on the project at the level of the region, the higher organization and the government, development of the credit and repayment of debt on it. Lack of experience in the international business at the enterprises and the organizations often leads to the conclusion of contracts, unprofitable, and at times and discrimination for the borrower, which realization can infringe upon interests of both the concrete enterprises and the organizations, and regions or the republic in general.

The main lack of the mechanism of selection of priority investment projects is lack of accurate selection criteria and even usual reference points. The majorit...