Education Key Factor Boosting Economic Advancement, According to Kazakh Specialist
Astana - Dossym Besbay, an influential figure in education and medicine, and the founder of the EPG Human Capital Development Fund, shares his insights on economic growth. An expanded government meeting on January 28, chaired by President Kassym-Jomart Tokayev, highlighted the importance of economic diversification, attracting investments, and improving education quality.
Dossym Besbay, renowned as a forward-thinker, emphasized the role of education in driving economic growth. He states that investing in education is the country's most lucrative move, outperforming even healthcare investments by a significant margin. Education plays a crucial role in boosting human capital productivity, leading to income growth.
In BA's opinion, investing in education at all levels - including pre-school, school, vocational training, higher education, and science - is crucial to raise future incomes. "Our most valuable asset is not natural resources; it's human capital," asserts Besbay.
Alternative Growth Strategies
Besbay proposes a two-pronged strategy to foster economic growth: providing businesses with easy access to capital at low interest rates and implementing strategic institutional reforms. To ensure effective growth, the government should focus on targeted support for industries that genuinely need help, rather than relying on broad, untargeted measures.
Besbay suggests that developing strategic projects, such as a transit railway route linking China and the European Union, could create synergies for new and existing processing industries and spur economic growth.
In the transportation sector, Tokayev emphasized the importance of speeding up the development of the Trans-Kazakhstan railway corridor as a key component of the Middle Corridor. According to Besbay, this could enable domestic market coverage for building materials and strong potential for import substitution in the agricultural and food sectors.
Balancing the Tax System
The government plans to rebalance its tax system with a revised Tax Code under discussion in Parliament. The proposed changes include increasing the value-added tax (VAT) rate, coupled with broader measures to strengthen the tax and budget systems.
Besbay argues that raising tax rates may not be the most effective way to address the budget deficit. An increase in the VAT could burden smaller businesses, impacting job creation, whereas focusing on improving the economy's efficiency would generate more growth and increased tax revenues.
Besbay suggests that initial focus should be on scrutinizing raw materials companies under a special tax regime, marketplaces that evade tax, and 'grey' importers.
Besbay's strategies aim to propel Kazakhstan into a diversified, robust economy that thrives in the global marketplace by focusing on education and institutional reforms. These strategies are aligned with Kazakhstan's broader goals of shifting away from a heavy reliance on natural resources into clean energy, transport infrastructure, and agriculture industries.
Dossym Besbay, advocating a balanced approach to economic growth, proposes focusing on both increased access to low-interest capital for businesses and strategic institutional reforms. He suggests that the government may find it more effective to scrutinize raw materials companies under a special tax regime, marketplaces that evade taxes, and 'grey' importers, rather than simply increasing the value-added tax rate. Meanwhile, in the realm of education, Besbay emphasizes the importance of investing in education at all levels, stressing that human capital is Kazakhstan's most valuable asset. This comprehensive education investment strategy aligns with his wider vision of transitioning Kazakhstan into a diversified, robust economy that excels globally. His strategies interlink with Kazakhstan's overall goals of moving away from natural resource dependence and towards clean energy, transport infrastructure, and agriculture industries.
