The paper "The Role of a Public Investment Fund in Promoting Diversification" is a wonderful example of a Business Assignment. Since gaining independence, Kazakhstan has continued to grow its economy in leap and bounds especially in matters related to investment and trade. The period after this independence; has resulted in foreign multinationals exploring ways for which they can conduct successfully in this rather emerging market (Jendrzejczyk & Rodriguez, 2003). The firm, in a bid to grow its business environment, has engaged in extensive restructuring efforts as well as directly adopting reform initiatives like improved FDI; technological advancements, as well as immense development of the country’ s foreign trade, has accelerated its transition into a notable business hub (Jendrzejczyk & Rodriguez, 2003).
The Kazakhstan government is in the process of exploring ways for which to import modern and advanced technological advancements and, also extensive management skills for purposes of improving its economic situation and infrastructure as a whole. It is important to note that the country boasts of a robust economic potential as well as top-notch economic growth and development rates that is expected to even attain a higher status in the future period.
Despite this positive notion, it is worth understanding that the emerging market is also faced with an extensive set of risks that could possibly hinder smooth entrance into the economy as a whole. The focus of this paper is thus on examining the business environment; risks and entrance strategies for foreign business in Kazakhstan. Positive Features of the Local Business Environment First, it is important to note that Kazakhstan has continued to make efforts in its overall economic development that have ensured to contribute to its overall boosting income and reducing the level of income inequality.
Jendrzejczyk and Rodriguez (2003, p. 10) note that the country has enjoyed an aggressive level of GDP growth since the start of the millennium-averaging at least 8%. This positive improvement in the level of growth has, in turn, resulted in a sharp rise in the level of per capita income. Notably, distinctive improvement frameworks have continued to be noted in relation to their underlying natural resource wealth. The government continues to promise of even making immense strides in the future in relation to the promotion of economic diversification-related activities that would help eliminate income inequality.
This is especially since the economy enjoys a resource-rich environment and the reform initiative as laid out in Kazakhstan Vision 2050 (International Monetary Fund, 2014). As a result of this development, the population disposable income has been improved over time to enhance their purchasing power for both products and services. Second, considering the rapid economic growth and development, the level of the unemployment rate has distinctively declined over time in the period starting 2000.
The unemployment rate has dwindled to 5.2% in 2013, which is less than half of its degree in the earlier millennium (International Monetary Fund, 2014). Particularly, the level of youth unemployment rates fell tremendously as a result of direct government intervention like in the case of expanding the underlying vocational and training systems for purposes of creating employment chances for them. In essence, there have been interventions to greatly improve female labor force participation (FLFP) in the overall Kazakhstan market. The level of this initiative currently stands at 67% of the overall female labor force in the year ending 2012, which is higher than the emerging market economies across the globe (International Monetary Fund, 2014).
A higher level of FLFP seeks to contribute efficiently with the improvements in output growth and the elimination of income inequality. Following this line of argument, allowing extensive and better opportunities for women to earn income would; in fact, contribute immensely to wider economic development. Due to this, it is safe to note that the degree of income inequality and unemployment levels in Kazakhstan can be easily compared to that of its immediate emerging market economy counterparts.
International Monetary Fund.2014. Republic of Kazakhstan. IMF Country Report No.14/243. Retrieved from https://www.imf.org/external/pubs/ft/scr/2014/cr14243.pdf
Jendrzejczyk, G. T., & Rodriguez, P. L. 2003. The role of a public investment fund in promoting diversification in Kazakhstan. Country Economic Memorandum, vol.1, pp. 1-20
Tugut, M & Lee, CY.2009. ‘Doing Business in Kazakhstan; Opportunities, Challenges and Suggestions. Pittsburgh State University, USA. Retrieved from http://www.jgbm.org/page/14%20%20Choong%20Y.%20Lee.pdf