The Interregnum

The supporters of communism call this period “developed socialism”, while opponents characterize it as stagnation, and even regress. At this time the struggle of two tendencies can be revealed: democratic and conservative. The second one clearly prevailed. The stagnation of “developed socialism” as a system does not exclude quantitative and qualitative changes, development as a whole, but it can gravely distort numerous parameters of functioning and lays a fundament for its transformation in future. During this time Kazakhstan was a part of Union of Soviet Socialist Republics, where Bolsheviks kept all power, developing socialism on the way to communism. As it is known in 1917 capitalist relationships were destroyed and all means of production moved in hands of government.

Beginning from 1970s the paces of economic development decreased significantly. The country was in an urgent need of economic reforms. The transformation firstly touched agriculture. Also the allowances for cattle purchase prices increased and the collective farms were transferred to direct bank lending. After 1976 more than 700 production companies started to work on the latest economic criteria. The process of transition to a system of cost accounting industry has been completed by the end of the eighth 5-year plan. In the process of reforms realization of reform small companies were joint with big ones.

The industrial development of the 70s beginning 80s was characterized by the deepening trends caused by the formation of a policy of economic complex. With the purpose of "complementarity" of national economies and their integration into a single complex the processes of union division of labor were developing. At the turn of the 70's and early 80's severe imbalances in the structure of the industry of the USSR began to appear. At this time heavy industry sector received a priority development. During the tenth five-year plan (1976-1980 gg.) an attempt has been made in order to translate the industry on a path of intensive development. But the plans to introduce the latest technology and productivity growth were not met.

1980-today: The Rise and Fall of Neo-liberalism

Later the tasks of the eleventh five-year plan (1981-1985 gg.) have not been implemented on any indicator. The monthly wages of low-paid categories of workers were increased. Immediately an unjustified wage convergence of engineering and technical personnel and workers has revealed. The growth of wages was carried out without taking into account the results of real work performed.

In the middle of the 80s to the power in the country came to a group of young, energetic workers. In March 1985, M.S. Gorbachev became the General Secretary of the CPSU. Gorbachev and supporting it constructively minded politicians took the initiative to “renewal of socialism”. The transformation required to accelerate socio-economic development of the country. The first years of «perestroika» do not affect existing economic system strongly enough. At the end of the 80s most of the economists, business executives, and managers recognized the need for extensive development of market relations. The need to develop a market economy, competition and entrepreneurship was worked out on the XXVIII Congress of the CPSU (July 1990). In 1987, under the proclaimed policy of "perestroika" in the Soviet administrative-command economic model the elements of market relations were allowed: private enterprise in the form of cooperatives, joint ventures with foreign capital, but these measures did not change the essence of the existing system. However, after the collapse of the USSR in 1991, Kazakhstan began to implement radical economic reforms, including privatization, which meant the transition from socialism to capitalism.

With the collapse of the Soviet Union in 1991 the administrative-command system and the planned economy were also destroyed. Under this system, economy of Kazakhstan lapsed into a crisis. In 1991 in the republic functioned more than 5000 large industrial enterprises, 2119 collective farms, 407 state farms, a lot of thermal and hydroelectric power plants, construction and communication facilities. In the early years of independence due to the transition to a market economy all sectors of the economy were covered with crisis. The crisis spread all over CIS countries. The decline in production was as follows: in the chemical and petrochemical industry - 71%, in light industry - 84%, wood processing industry - 76%, in the mechanical engineering and metal industries - 64%, construction - 82%, in electricity production - 30%, ferrous metallurgy - 30%, non-ferrous metals - 28%, in production of fuel - 40%. The number of livestock has dramatically decreased. The number of sheep and goats from 35.5 mln heads in 1991 was reduced to 13 million in 1997. State agricultural sector was privatized and collective farms were disbanded. The crisis has also affected agriculture. As a result of these changes living standards have deteriorated, and unemployment started to increase.

After all, the own model of development was accepted. One of the proofs of the selection of country`s own path of development is the development strategy of the Republic of Kazakhstan "Kazakhstan-2030. Ownership privatization process in the country began with the first days of independence. In 1992, there were privatized 6200, in 1993 - 2700 enterprises. In the first stage of privatization there were mainly formed collective enterprises. Since 1993, special attention was paid to the establishment of joint-stock enterprises. Their share in the total number of enterprises in 1993 amounted to 57%. This form of privatization in industry and construction accounted for 73% of all privatized enterprises. During these years, mainly small businesses of trade, consumer services and catering have been privatized.

The privatization program was continued in 1994-1996. In 1996, budget receipts amounted to 19 359 898 tenge. During the first two months of 1997 due to the sold businesses the budget has received more than 2 billion tenge. In 2001, the share of domestic private-sector production exceeded 74%, of workers counted more than 60%, they were producing 83% of the country`s products. Fully privatized housing and municipal economy were united in joint-stock companies, partnerships, which operated on a contractual basis. More than 142 million square meters of living area was transferred to the private property of citizens. Thus, by May 1997 the privatization of all branches of the republic's economy was essentially completed and state property remained in small volume.

The level of life of Kazakhstan’s citizens significantly increased. Over the past 10 years (2000-2009), the average wage increased by 5 times and the average pension increased by 3 times. 652 schools opened its doors, 463 health facilities were built, 350 thousand families, about 1.2 million people became owners of their own homes.

According to The World Bank, the Republic of Kazakhstan since 2004 is among the countries with above-average income. Thus, Kazakhstan was confidently moving towards the implementation of strategic development plans, calculated up to 2030. Due to implementation of all points of that strategy, in 2012 Kazakhstan has accepted new way of economic development “Kazakhstan-2050”.

One of the challenges ahead is welfare society. In 1995-2005, income of Kazakhs grew 5.5 times, the average salary increased by 6-7 times, retirement income - an average 5 times.

Kazakhstan is a young and developing country. Although it has just started its long way as a republic, Kazakhstan citizens already have reasons to be proud of their country. Kazakhstan is on the way of developing capitalism and we believe that our country would prosper and thrive!

Дата добавления: 2015-11-16