President's Address provides opportunity to respond to challenges of a rapidly changing world - IWEP expert
ASTANA. KAZINFORM According to the expert of the Institute of World Economy and Politics under the Foundation of the First President of Kazakhstan, Aizhan Mukhishbayeva, in his annual State-of-the-Nation Address, Nursultan Nazarbayev stresses the importance of "resetting" the country's financial sector, and puts an emphasis on increasing the responsibility of bank owners, since in the light of recent events, they have proven to be focusing on lobbying their projects.
Thus, according to the expert, tighter supervision by the regulator in this regard should facilitate second-tier banks' compliance with prudential standards, as well as reducing non-performing loans.
At the same time, she notes, IPO's of a number of several quasi-state companies within the framework of the AIFC launch should give impetus to the development of the stock market and the formation of a broad class of investors.
According to her, the President also instructed to accelerate the work in terms of privatization, including by reducing the number of subordinate organizations of state bodies.
The expert notes that in his Address, the President also focuses on the digitalization of the country's economy, due to the fact that at the moment government agencies and private sector are facing a huge flow of information, which creates great opportunities for them.
With competent structuring and management, large data provides an access to valuable information, which in turn should reduce the cost of production and increase productivity.
Another locomotive of digital reforms, according to Aizhan Mukhishbayeva, is the urbanization of Kazakhstan. The expert notes that the accelerated growth of urban population puts a great burden on cities' infrastructure, which makes it necessary to optimize urban spending.
The comprehensive introduction of the Smart City concept across Kazakhstan helps reduce city spendings making them more efficient. As for digitalization, in her opinion, countries with huge territories, such as Kazakhstan shall benefit from digitalization which allows to manage business processes from afar.
Thus, according to Ms. Mukhishbayeva, the President's focus on the latest global trends provides an opportunity for the country to respond to the challenges of a rapidly changing world in a timely manner.