INVESTMENT COMPANY POLICY: Conclusions

Conclusions

Based on critical analysis and theoretical generalization of the views of domestic and foreign scientists in research noted that the investment policy, as part of the socio-economic policies of the economic system a certain level of control is a complex of measures and activities of organizing, financing and management of investment activities aimed at goals, strategic issues, the implementation of the various interests at the optimum ratio for the investor risk and return. Economic content of the investment policy depends on the subject of the investment market, determined by the objectives of the investor and the characteristics of the current economic situation that sets out objectives and implementation mechanisms. Banking sector

Current world trends influence the investment process, foremost among which is globalization as a trend of forming global investment environment and the integration of national capital markets, contributing to strengthening inter-country migration of capital. This allowed us to prove the principle, which stipulates that in order to mitigate the negative impact of current trends in world development requires measures of public investment policy to ensure that Kazakhstan for some integration into the global economy at an optimal degree of openness of the domestic market with the capabilities of the country to successfully participate in global competition.

We note that economic growth in Kazakhstan at the beginning of the XXI century is mainly due to temporary factors, action: increasing the price competitiveness of domestic products based on the devaluation of favorable conditions in the dynamics of world prices for exported commodities, especially energy. Certain increase in production in industrial enterprises was observed due to the involvement of previously withdrawn from the manufacturing process facilities. Lack of growth in investment in fixed assets is primarily due, the asymmetry of capital in the country. The possibility of realization of the investment process is the main driver of economic growth, whose action requires the following objective conditions: a sufficient level of savings, the development of financial markets, excluding the deposition of savings from the population and taking them into the investment process, a high return on investment, overlapping the losses associated with high risks are inevitable in intensive economic growth. This involves the development of actions to create the general conditions for economic growth and specific measures to build and promote the use of the investment potential of Kazakhstan. The study of investment climate in Kazakhstan has allowed the following conclusions. Positive impact on the investment attractiveness of the country has a good economic performance, rich natural resources and responsible fiscal policy. Among the factors hindering the formation of favorable investment climate include: the quality of enforcement of existing legislation, the level of administrative pressure on business, protection of property rights. For the formation of favorable investment climate requires large-scale restructuring of the administration, including the optimization of functions of public administration, increase transparency and accountability of executive power, which will reduce red tape and corruption in this regard.Statistical data analysis of investment activity in 2009 led to the conclusion that in general the structure of incoming foreign investment in Kazakhstan at extremely small scales cannot be considered progressive. The role of foreign investment in Kazakhstan’s economy is negligible. Public policy of the host country for foreign capital should include two areas: investment regulation in order to obtain the maximum profit per unit of invested capital and FDI incentives, the main purpose of which attract the highest possible level of investment. Both of these areas – regulation and promotion of FDI – are held simultaneously. With a focus on one of them, depending on the level of economic development and national interests.

Regional investment policy is the result of joint actions of state body’s national and regional levels. Authorities responsible for developing the framework conditions for investment activities in the region, the rationale for the priorities and modalities of use of investment resources, substantial burden lies with the regional authorities. Formation of the investment environment in the region depends on economic and business development.

Identification of deficiencies in the practice of regulation of investment activity has identified key issues for improving investment policies, which include the need to choose priorities and optimizing the implementation of targeted programs to their number, given the limited financial resources, capacity in the region of transparent investment management process, improving the investment legislation, the decision problems of intergovernmental relations.

Efficient investment policy depends on the type of policy of investment resources, risk preferences, external and internal factors and should be considered and balanced in all areas of investment and adequate changing economic conditions.Active State’s position in the investment policy will create opportunities for increased investment in the economy, we can tap the mechanisms for the use of liquid funds in accordance with industry objectives by encouraging the development of various financial instruments with the ultimate goal – the development of industries with high added value.In this regard, ensuring the availability of financial resources would enhance the competitiveness of both the products and the enterprise as a whole. Certainly, for Kazakh producers need to improve product quality in order to survive in the regime of tough competition. To Kazakh enterprises to operate effectively both now and in the mode of membership in the WTO should create equal conditions for domestic and foreign producers – the conditions of access to financial and other resources and fair competition.It should be noted that the accession of Kazakhstan to the WTO can help to increase the number of TNCs on the market of the Republic, to strengthen their positions in various sectors of the economy. Under the conditions of underdevelopment of the national business it can act as a serious threat to economic and political security.In this regard, the Government’s policy, legal and administrative measures should provide the conditions to meet the challenges of attracting foreign investment with a rigid linkage with the national interests of the country. It is necessary to develop mechanisms to block or at least weaken the undesirable consequences for the economy of Kazakhstan actions of foreign investors.

• Railways carry 50-70% of freight of all kinds of public transport use. Infrastructure investments today strategically advantageous for the state to its multiplier effect in the period of economic development after the crisis. In the framework of crisis management program of the Government of the Republic of Kazakhstan on implementation of 1919 breakthrough innovation projects fund FNR “SK” to allocate an additional one billion dollars, of which five – on the development of transport infrastructure that will create new jobs and a powerful impetus to the real economy. Existing provisions in the economic theory does not provide universal definition of

investment planning. Project investment involves the practical realization of investments within a specific techno-economic project, which should be considered a separate kind of investment.

• “NC” KTZh – Operator OLS (Operation Network – over 14 thousand kilometers in an area of 2.7 million km2) has a high degree of wear and tear of backbone network (you need to make a complete replacement of 30 to 82 percent capacity). If the allowable level of defects in the rails without the threat of traffic safety adopted at the 1% level, in the Republic the figure is 1,9%. For the remaining elements of the infrastructure measure defect should not exceed 5%, OLS Republic percentage of defective items is equal to 9 sleepers, turnouts – 10%. In addition, 12.3%, or more than 2 thousand km of roads in Kazakhstan are the lines with overloaded tonnage.

• Trunk railway network requires continuous investment in its upgrading and improving the design of the path. Starting from 20,010 years to overhaul up to 1000-1100 km of the railway lines each year. In this case, it will be possible to eliminate deterioration of existing routes only in 2013.Given the shortage of investment resources needed project-based approach to investment management. Under the direction of the project will be complex, tools and processes aimed at achieving the objectives of the project in the specified time and in accordance with the real justification for the scope and effectiveness of the project.