Financial System of Kazakhstan

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Suleyman Demirel University

Course work:

Analysis of strengths and weaknesses of financial system in Kazakhstan

Done by: Abeu Azamat

Economics1

Date______________

Almaty 2010

Introduction

Financial relations forms there where are funds of money is. Only with the advent of the state and the regular commodity-money reference there is an economic category the finance.

Finance is objectively necessary, their necessity is caused by existence of commodity manufacture, the reference, and also action of the law of cost.

The monetary relations developing between the enterprises in their economic activities, the circulation of funds in the course of manufacture mediates. A material basis of the finance is manufacture.

Studying of economic structure of any society of the modern state is impossible without the financial system analysis, representing set of financial relations and institutes regulating them. Financial relations represent an important component of the general economic relations inherent in any public system. Through the financial mechanism the state forms and uses funds of the money resources necessary for performance of its numerous functions in political, economic and social spheres.

The financial system covers numerous institutes of public finances which operate in close interaction with credit institutes of different function.

Subject of my research is set of the financial and monetary and credit relations demanding the new approach to their regulation in the conditions of transition to market economy. A methodological basis the complex system approach to studying of a problem of reforming of financially-credit system of Republic Kazakhstan in the conditions of transition to market economy makes, applications in these purposes of various concepts of world economic thought on increase of a role of the finance, money and the credit in management of national economy.

The financial sector of Kazakhstan is the largest financial sector in Central Asia. It possesses enormous fossil fuel reserves as well as minerals and metals. It also has considerable agricultural potential with its vast steppe lands accommodating both livestock and grain production, as well as developed space infrastructure, which took over all launches to the International Space Station from the Space Shuttle. The mountains in the south are important for apples and walnuts; both species grow wild there. Kazakhstan's industrial sector rests on the extraction and processing of these natural resources and also on a relatively large machine building sector specializing in construction equipment, tractors, agricultural machinery, and some military items.

The urgency of the given theme can't be exaggerated, after all a financial system, by right, it is considered a basis of bases of any modern state. Many crises of economy are connected with infringement of its functioning. Therefore it is necessary to know all subtleties of its device for maintenance of normal functioning of any country.

It is possible to assert that each link of a financial system is its independent element, but this independence is relative in middle the uniform complete. The financial system is a set of various kinds of funds of the financial resources concentrated at the disposal of the state, not financial sector of economy (managing subjects), separate financial institutions and the population (households) for execution of the functions assigned to them, and also for satisfaction of economic and social requirements. The modern world is the world of all-round and all-powerful commodity-money relations. They penetrate internal life of any state and its activity on international scene. In the course of reproduction at different levels, since the enterprise and finishing national economy as a whole, funds of money resources are formed. Thus has no value, in what form money acts: In...
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