4. Ways of improvement of the mechanism of attracting investments into the economy of Kazakhstan

Attraction of the foreign capital and increase of efficiency of its use demand improvement of an organizational, economic and legal mechanism for ensuring coherence of national interests of our country and interests of foreign investors, creation of the general favorable conditions of investment activity and the preferential mode for primary development of priority spheres of economy. Completion of the operating mechanism has to go in the direction of increase of its flexibility and self-adjustment depending on the changing economic situation. Important value gets increase of guarantees on protection of the rights of foreign investors and streamlining of the bureaucratic procedures which are slowing down process of attraction and use of foreign investments .One of forms of attraction of the foreign capital in an economics of Kazakhstan are external credits.

At the conclusion of credit agreements as well as at implementation of the planned investment projects, emergence of a default, that is problems with repayment of external debt is possible. Absence or imperfection of the mechanism of the movement of the investment projects served at the expense of foreign credit lines at all stages is the reason of defaults: the conclusion of the contract, decision-making on the project at the level of the region, the higher organization and the government, development of the credit and repayment of debt on it. Lack of experience in the international business at the enterprises and the organizations often leads to the conclusion of contracts, unprofitable, and at times and discrimination for the borrower, which realization can infringe upon interests of both the concrete enterprises and the organizations, and regions or the republic in general.

The main lack of the mechanism of selection of priority investment projects is lack of accurate selection criteria and even usual reference points. The majority of projects are insufficiently proved from the point of view of economic efficiency; currency payback and solvency of the internal borrower. Many projects of social character are approved to the detriment of economic advantage. Now, when payments under the loans attracted earlier already begin, it became clear that almost third part from the developed sum of outstanding payments on the foreign credits is the share of the insolvent managing subjects borrowers..

To avoid emergence of possible defaults, it is necessary to accept a package of measures of financial, administrative and legal character. First of all, that tracking, control and planning had under themselves a reliable basis, the system of the main statistics characterizing the amount of receipt of external resources in all forms and in all sectors of national economy has to be prepared and entered. Demands changes and established practices of the closed distribution of the credits which caused the conclusion of unprofitable contracts, an over expenditure of means, purchase outdated, equipment and technologies.

The most important part of work on control and management of an external debt is competitive selection of the foreign credits with study of a question of expediency of use of foreign credit lines, proceeding from importance of receiving loans for implementation of the concrete, carefully selected and prepared projects which passed a comprehensive assessment. The vast majority of loans and credits (more than 90%) have to be attracted to financing of specific projects - such as development of fields, development of small enterprises, education systems and health care, improvement of a demographic situation, etc. Such orientation is urged to provide investment of capital in effective projects which would promote development of economy of the republic and would raise its real opportunities for payment of borrowed funds.

In this regard detailed preliminary expert examination of the offered investment projects with involvement of bank and independent experts is necessary. At such examination technical and technological, price and legal study of projects has to be carried out, market researches are conducted - the sizes and sources of delivery of raw materials, components, necessary number of experts and workers are determined, the possible sales market is estimated.

Then key parameters of the project have to be determined: its benefits and expenses, efficiency, a payback period, including currency payback, degree of commercial risk, influence on the main macroeconomic indicators - an output gain, the budget, a gain of the national income, decrease in expenses, increase of competitiveness of production in the world market.in expenses, increase of competitiveness of production in the world market.

Both qualitative, and quantitative analyses of economic aspects of the project have to be directed on a project contribution assessment to realization of the purposes of development of the country acting as the most important criteria of a choice and examination of projects: revival of economy, carrying out social actions due to implementation of the programs directed on increase of a productivity of work and a standard of living of the population, creation of workplaces, use of local resources, personnel training, improvement of environment.

At inclusion of the project in the list priority and supported by the state guarantees it is necessary to consider among criteria of their selection and such parameters as the size of external debt (the enterprise, the region, the republic), a limit of guarantees of the Republic of Kazakhstan, volume of possible additional financing, possibility of creation special and invariable (before the end of implementation of the project and repayment of debt) legal base. Also detailed check of financial and economic activity of the enterprises borrowers for the purpose of identification of their opportunities for repayment of external debt is necessary. At the same time competitive selection of foreign creditors with an assessment of their financial opportunities and study of a question of expediency of attraction of foreign credit lines has to be the most important part of works on control and management of an external debt.

Important component of a package of measures, has to be, creation of the mechanism on accountability of the ministries and departments, enterprises and organizations for decision-making on the foreign credits, and also division of this responsibility with regional administrations, being in most cases intercessors of a number of projects. Bodies of local government have to not only approve the project and promote the conclusion of the credit agreement, but also be directly involved in its realization in various forms: assistance in finding of sales markets of finished goods, sources of the accompanying investment; implementation of legal, economic advice; rendering consulting services and other depending on a concrete situation.

Avoidance of defaults requires providing the general favorable macroeconomic conditions (inflation control, a solution of the problem of mutual settlements with the CIS countries, production stabilization) and stability of legal base, creation of the mechanism of transfer of obligations for the foreign loans attracted under guarantees of the Republic of Kazakhstan at elimination or reorganization of the enterprises borrowers. Implementation of priority investment projects, the including in the state list, demands implementation of continuous monitoring. The important factor stimulating the international investment of economy of Kazakhstan is professional and full insurance of political, social and economic and commercial risks. Investment appeal of our country in this area increases in connection with adoption of law of RK "About the State Support of Direct Investments" which has a number of essentially new legal provisions increasing degree of exclusiveness of the rights of investors. So, according to articles of this law the following guarantees on protection of interests of investors are provided:

- not restriction of the rights of the approved investor on the order with the share in an authorized capital or stocks of economic association or on the free translation of the capital, profits or the income, on condition of payment of taxes and other obligatory payments;

- a ban on creation of the state monopoly controlling sale of raw materials and sale of the goods made by the investor in the territory of the republic;

- a ban on application of control measures and price control at the sale of raw materials or goods made by the investor;

- liberal currency regulation;

- measures of customs regulation for protection of investors;

- protection of the rights and legitimate interests of investors, investments, profit (income), dividends;

- not preventing to investors in management of the property belonging to them, except for cases of violation of laws of the Republic of Kazakhstan.

Essential guarantee of the rights of foreign investors is protection against changes and additions of the legislation of the republic, and also providing to opportunity modification of terms of the contract at change of standard and legal regulation of attraction and use of foreign investments.

However, issues in the field of protection of interests of the investor are resolved by not all. So, today there are no the acts allowing to create joint insurance companies in Kazakhstan and limiting monopoly of "Kazakhinstrakh". Now according to the insurance legislation, the state company on insurance "Kazakhinstrakh" becomes the only insurer to whom insurance of risks of foreign investments in Kazakhstan is allowed and thus to investors refuse an option of the insurer which services they would wish to use ring of development of the credits and timely repayment of debt.

For more rational use of opportunities of insurance of foreign investments expediently creation of the international insurance company or joint fund for insurance of political and commercial risks as corporations foreign "private investments of OPIK" with the assistance of AIG corporation (American International Group) - the largest international diversification insurance group and the insurer of trade and industrial risks, largest in the USA. It is the state company which would include insurance upon confiscation, of alienation and nationalization of property, not convertibility of currency, etc. and would have; for this purpose rather big insurance fund. For example, the similar international company is created in Uzbekistan and has insurance fund in 100 mln. dollars whereas insurance fund of "Kazakhinstrakh" makes only 1 mln. dollars. that need of reinsurance of risks abroad and, as a result, causes possibility of leakage of insurance premiums from Kazakhstana.1

For stimulation of attraction of the foreign capital to priority spheres of economy of Kazakhstan expediently use as financial and credit, tax incentives, and non-financial methods. It is possible to refer creation of the general, favorable situation of functioning of the foreign capital, ensuring production with necessary factors, information, services of management to the last, development of transport, different communications, bank service creation of other elements of market infrastructure.

Expediently wide use of tax privileges and incentives. For example, the stimulating role will be played by release from a value added tax of operations on delivery and transfer of loans. The sums of the credits in foreign currency received from investment banks and credit institutions in this case shouldn't be assessed with a value added tax.

To avoid the organization of the fictitious joint ventures created only for "tax holidays" for the purpose of obtaining the tax-free income it is necessary to provide the special amendment to the Tax code according to which in case of liquidation of such enterprise during release from payment of a tax it has to pay taxes on the gained income for the entire period of the activity.

Granting tax and financial and credit privileges has to be carried out not automatically, and differentially, depending on the state importance of the carried-out project, from share in an authorized capital of the enterprise, from capital investment spheres, the speed of its turn.

It is necessary to simplify the formalities allowing the foreign companies to be engaged in a production activity and to reinvest the income. An important measure in this area the conclusion of contracts between investors and the State Committee on investments in which all privileges and preferences are in detail stated is submitted. The approved order of the conclusion of the contract exempts investors from the numerous bureaucratic procedures practicing so far. At the same time it would be necessary to strengthen incentives on reinvestment of the income of the foreign companies.

Within process of privatization it is necessary for creation of the effective mechanism of stimulation of attraction of the foreign capital: to fulfill the principles of currency converting of foreign portfolio investments, to define a circle of the privatized objects for the international auction, to develop primary and secondary securities markets for acquisition by foreign investors of property rights.

Among organizational measures for attraction of the foreign capital the following is necessary:

- carrying out further negotiations with interested countries on the conclusion of agreements on mutual protection and encouragement of investments (list of the countries);

- adoption of the bills "About Pledge", "About a Mortgage of Real Estate", development and representation of offer on the mechanism of use of mortgage forms for attraction of the foreign capital;

- formation of system of monitoring of investment climate RK and its regions.

For performance of the functions connected with realization of a state policy on attraction of the foreign capital at the State committee on investments it is expedient to create:

- The center of a project financing and consulting and technical assistance to which implementation of pre-investment researches, examination of projects and their maintenance, coordination of activities for realization of consulting and technical assistance is assigned;

- Registration chamber for registration of the enterprises with the foreign capital and accreditations of foreign firms and companies;

- Information center on the foreign capital for the purpose of creation of databanks according to specific investment programs and projects, legislative base, tax system, investment policy and providing potential foreign investors with this information.

The listed measures will allow to pursue the weighed state policy in the field of attraction of the foreign capital that will help to solve a problem of interface of national interests to interests of foreign investors.

The policy of attraction of the foreign capital proceeds from the general economic strategy of development of Kazakhstan by which restructuring priorities on a long-term outlook are determined. The foreign capital has to take an important place in development of separate sectors of priority branches of economy, serve as the means which is supplementing, but not forcing out national investments to interfere with transmission of negative processes on the future.

Conclusion

In Kazakhstan positive dynamics in attraction of gross direct foreign investments is observed. Average annual growth rate of investments from 2005 to 13 years made 17,3%. In national economy more than 196 billion dollars of the foreign capital are attracted. We continue a cycle of materials about industrialization of Kazakhstan. The maximum volume of the attracted gross direct foreign investments in 2012 reached nearly 30 billion dollars. In 2013 24 billion are attracted. It is lower than an indicator of 2012 for 16,5%. The Netherlands, the USA, China, Switzerland, France and Great Britain were the main investors from 2005 to 1 half-year 2014.

If to look on branches, volumes of inflow of investments were divided as follows. Nearly 74 billion dollars are invested in professional, scientific and technical activity. In the mining industry and development of pits – it is slightly more than 52 billion, in manufacturing industry – over 21 mlrd, and motorcycles invested 16,5 billion in trade, car repairs. I will note that, average annual growth rate of direct investments in manufacturing industry from 2005 to 2013 made 43,3%. Now, as for data for this year. In 1 half-year 2014 inflow of gross direct foreign investments to economy of Kazakhstan made 12,4 billion dollars.

Main investors: Netherlands, USA, China, Switzerland, France, Great Britain. For these half a year 5 billion dollars are directed to the mining industry and development of pits, in professional, scientific and technical activity – 3 billion, manufacturing industry – 1,5 billion, as much went to trade, car repairs and motorcycles. Gross inflow of investments into manufacturing industry made 1,5 billion dollars. Thus, growth of gross direct foreign investments in manufacturing industry is in recent years observed that, undoubtedly, is result of the carried-out work on realization of the first five-years period of the Program of industrialization.

For stimulation of inflow of foreign investments and financial control over their use it is necessary to improve effectiveness of the mechanism of state regulation of process of the attraction of the external help including organizational structure of management of foreign investments and a wide arsenal of the legal and economic means used by specialists of this structure; to improve system of insurance and reinsurance of risks; to adjust qualitative and timely information support of foreign investors; to carry out a number of other measures, but the main thing – the investment policy of the Republic of Kazakhstan has to be flexible, pragmatic and to the corresponding occurring internal and external economic realities.

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