INFLUENCE OF THE SHADOW ECONOMY ON THE FINANCIAL AND ECONOMIC DEVELOPMENT OF KAZAKHSTAN

Authors

  • Murat LAUMULIN D.Sc. (Political Science), Research Fellow at the Kazakhstan Institute of Strategic Studies (Almaty, Kazakhstan) Author

Abstract

The article examines the phenomenon of the shadow (hidden) economy and its influence on Kazakhstan’s financial and economic development and security. The republic’s statistical bodies often use the term “non-observed economy,” which implies hidden, unaccounted, informal, and illegal economic activity. Non-observed economic activity includes the production of goods and services, as well as the illegal redistribution of revenue and assets. Based on how widespread shadow and corruption processes are and on the current level of Kazakhstan’s economic development, it can be concluded that when pursuing a policy to combat the shadow economy, attention should be placed not so much on reducing its scope as on raising the efficiency of the entire governance system. Furthermore, the state should play a leading role in managing socioeconomic processes.

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References

See, for example: A. Singh, S. Jain-Chandra, “Out of the Shadows,” Finance and Development, Vol. 49, No. 2, June 2012, available at [http://www.imf.org/external/pubs/ft/fandd/2012/06/singh.htm].

For comparison, according to the World Bank, this figure in Russia was 41%-42%.

See: O deiatelnosti rynkov v Respublike Kazakhstan, RK Statistics Agency, Astana, 2012, pp. 1-10.

See: Razvitie torgovli v RK: tendentsii i vliianie na makroekonomicheskie indikatory, Scientific-Research Institute of Economics and Information Technology of Transport and Telecommunications, Astana, 2011, 84 pp.

Results of Sociological Surveys Carried Out by the KACB/R between 2005 and November 2011, Kazakhstan Association of Customs Brokers, Almaty, 2012, pp. 1-7 (in Russian).

Retail and Wholesale Trade in the Republic of Kazakhstan. 2006-2010, Statistics Collection, Astana, 2011, pp. 1-12 (in Russian).

Staff problems in the trade sector are typical of most non-finance and non-raw material branches.

Torgovye rynki Kazakhstana: sovremennaia situatsia i problemy modernizatsii, Almaty, 2012, p. 36.

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Published

2013-02-28

Issue

Vol. 14 No. 1 (2013): 1 (14) 2013

Section

REGIONAL ECONOMIES

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Copyright (c) 2013 Author

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How to Cite

LAUMULIN, M. (2013). INFLUENCE OF THE SHADOW ECONOMY ON THE FINANCIAL AND ECONOMIC DEVELOPMENT OF KAZAKHSTAN. CENTRAL ASIA AND THE CAUCASUS, 14(1), 157-167. https://ca-c.org/CAC/index.php/cac/article/view/1573

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