Enhancing the role of the private sector

Topics: Public sector, Investment, Public ownership Pages: 7 (930 words) Published: August 13, 2015
www.pwc.kz

Enhancing the role
of the private sector
in Kazakhstan

Disclaimer
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PwC

17 September 2014
2

Background
Kazakhstan is embarking on a program of privatization, accordingly the Government of Kazakhstan is now developing proposals which will help to: - Identify the companies with government links that should be included in the privatization program;

- Adopt principles and guidelines for “Yellow Pages rule” suitable for implementation in Kazakhstan.
PwC has undertaken a brief study of relevant international experiences to aid the policy makers of Kazakhstan in their decision making process.

PwC

17 September 2014
3

Rationale for chosen case studies

Singapore
• rapid economic success despite its constraints in terms of natural resources and land;
• vibrant private sector contributing to economic progress and development; • SWF invests on commercial basis, over time divested out of non-core and non-strategic sectors.

PwC

17 September 2014
4

Rationale for chosen case studies

Norway
• the majority revenues come from natural resources, with an emphasis on oil and gas;
• SWF with a clear mandate;
• adopting an ownership strategy to reduce state ownership.

PwC

17 September 2014
5

Key Lessons from Case Studies
1

State ownership strategy should be clear, intentional and transparent.

2

State ownership in state-owned enterprises should continually be evaluated.

3

Government business should retain commercial discipline and be professionally run.

4

The investment strategy of the sovereign wealth fund should be clear and transparent and adopt a long-term view.

5

Public procurement policies and procedures can help promote private sector participation.

6

Sound regulatory and legal frameworks.

7

The attraction, nurturing and retention of top-tier talent.

8

Multi-stakeholder collaboration is key for sustainable and inclusive growth.

PwC

17 September 2014
6

Key questions addressed include:
1. How to create a level playing field between the state and private sector
2. How to provide opportunities for all enterprises to have a fair chance to succeed
3. How to establish and maintain the strategic interest of the SWF and the state in investments
4. How to stimulate an innovative and sustainable economy by growing small-and-medium enterprises (SMEs) and public-private
partnerships (PPPs)

PwC

17 September 2014
7

Summary of Key findings
How to create a level playing field between the state and private sector Government businesses should aim to achieve a commercial rate of return. Regulatory neutrality relating to the general business environment and market regulations. Debt neutrality (the avoidance of concessionary financing of SOEs). Public procurement policies and procedures should be competitive,...
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