Press Releases
A USAID Sponsored Conference Discusses Practical Ways to Increase Kazakhstan's International Competitiveness Against the World Economic Forum (WEF) Competitiveness Index
April 17, 2007
Astana, Kazakhstan
On the 17th of April in Astana, representatives of the Government of Kazakhstan, regional akimats, and the private sector participated in a USAID-sponsored Forum on Economic Growth and Competitiveness in Kazakhstan. Forum participants analyzed the current rating of Kazakhstan against the 9 pillars of competitiveness as defined by the World Economic Forum (WEF). Discussions resulted in recommendations for future actions to be taken by Kazakhstan’s public and private sector institutions to assist in furthering economic growth, reducing barriers, and increasing the country’s WEF standing as Kazakhstan seeks to become one of the world’s 50 most competitive countries in the world.
In accordance with World Economic Forum research, in 2006 Kazakhstan ranked 56th on the world index of competitive countries. The World Competitiveness Index is comprised of three sets of key indicators: basic requirements (Kazakhstan ranks 51st place), efficiency enhancers (Kazakhstan ranks 56th place) and innovation factors (Kazakhstan ranks 74th place). China is considered to be the 54th most competitive country and Russia is 62nd according to the World Competitiveness Index. Kazakhstan is seeking to shift from being a “factor-driven” economy where firms compete on price and take advantage of cheap inputs, to becoming an “efficiency-driven” economy where application of efficient practices helps to increase productivity. Examples of efficiency driven economies include Estonia (ranked 25th) and Poland (ranked 47th). The Forum noted areas of recommended improvement, including Health and Primary Education; Institutional Development such as strengthening of judicial independence; Infrastructure and Business Sophistication Strengthening, as well as Innovation and Intellectual Property Rights’ Protection.
“Kazakhstan is committed to enhancing its overall global competitiveness, by focusing on integral sectors such as health, education, and small business development,” said U.S. Ambassador John Ordway at the opening of the conference. “Its goal to become one of the 50 most competitive countries is a sign of this commitment. Through USAID’s support for this Competitiveness Forum, we believe that both the public and private sector will work together and seek out market-oriented solutions that can be applied for improving Kazakhstan’s global competitiveness, and in so doing, build greater opportunities for the Kazakhstan people.”
The Forum was organized by two USAID projects: Kazakhstan Small Business Development Project and USAID-Washington’s Regional Competitiveness Initiative. USAID Kazakhstan Small Business Development Project provides technical assistance to strengthen Business Service Providers and Business Support Institutions who in turn build and provide advisory services to strengthen SMEs. Kazakhstan Small Business Development Project also works with the Government of Kazakhstan by transferring capacity on the development and implementation of SME programs. The Regional Competitiveness Initiative complements Mission programming through drawing upon vast knowledge throughout the Europe and Eurasia region on competitiveness topics.
KSBD is funded in part with support from the Government of Kazakhstan (GOK) through the Program for Economic Development, the cost-sharing agreement between the Governments of Kazakhstan and the USA to support Economic Growth assistance programs in Kazakhstan. Since 1992, with support from the American people, USAID has provided more than $500 million in assistance toward development of the economy, healthcare system, and democratic institutions of the country.