Current Trends of Investment Climate in the Republic of Kazakhstan

Abstract

1. Introduction Investment climate is an essential element of the business climate, which is largely formed by the state authorities in order to create an attractive environment for investors by introducing effective measures. Business environment in a particular country has great influence on the size of investments. These conditions are also called an investment climate. Important indicators of a favorable investment climate are guarantees of property rights, as well as the predictability and stability of business environment. It should be noted that the investment climate is closely associated with the investment policy and is an object of the impact of the investment policy. On the one hand, it determines the starting conditions for the development of investment policy, and on the other hand, it is its result. In this regard, the effectiveness of investment policy is measured by the degree of change in the investment climate to a more favorable direction. In turn, a more favorable investment climate influences the investment policy towards its further improvement. Investment policy, serving as a set of different activities, affects different (mostly subjective) components of the investment climate. It is actualized through the development and implementation of the strategy of investment activity regulation. In assessing the investment climate of Kazakhstan, the following factors are taken into account: abundant natural resources, agricultural and industrial potential, strategic location, political stability and absence of interethnic conflicts (Kaderova, 2011). Methods to assess the investment climate are very diverse. They are based on different economic, political and financial indicators, the totality of which defines the investment grade rating assigned to the country, region or city, which is an important indicator for investors, most of whom are not able to conduct independent detailed research, especially in other countries, and are guided by the assessment of rating agencies. Therefore, the rating increase is always associated with the influx of investment needed for economic growth. 2. Methodology There are many definitions of investment in the scientific literature. Some authors consider the investment as an input of financial resources in various (tangible and intangible) assets, while others define it as the cost of the funds aimed at reproduction, i.e. support and expansion of capital. Currently, the works of scientists refer investment to all types of property and intellectual values invested in objects of entrepreneurial and other activities. Perhaps the most common is the point of view that identifies investment with capital investments. In recent years, investments and investment policy in Kazakhstan have become urgent subjects of many scientific developments and research. However, investment saw increased attention of the scientists and practitioners from the second half of the 90s, while before that the most urgent issues in the economy were those of financial stabilization. The outbreak of the global financial crisis in the late 90s has necessitated a rethinking of many questions of economic policy of Kazakhstan. For a certain period of time, the government had to switch to the mobilization model of development. The priorities in foreign and domestic economic policies changed. All of this also requires making substantial changes in the investment policy of Kazakhstan, based on the realities of globalization and the crisis of the world economy, which sets new challenges for the economic and political science (Nigmatulin, 1999). On the basis of theoretical and methodological research, the article reveals the essence of investment and investment climate in the country, justifies the state's role in regulating the investment climate and the creation of favorable conditions for attracting domestic and foreign investment. …