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Master Plan to Develop Engineering in the Republic of Kazakhstan

Situation

  • Currently, the engineering sector plays an insignificant role in the Kazakhstan economy, taking only 3% of industrial production in the Republic. This is notably less than in other developed countries and is less than during the period before the fall of the USSR
  • Nonetheless, in the early 2000s, the economic boom that took place in Kazakhstan and in the world created good conditions to renew and develop engineering. Until 2008, demand had increased at constant prices by an average of 13% annually. However, much of the demand has been met by imports, accounting for about 90% of total domestic demand for engineering products
  • At the moment an absence of investment and lack of significant government support means engineering firms cannot compete with foreign manufacturers

Goal

  • To identify priority segments of the engineering market in Kazakhstan for development
  • To select projects with great potential for the creation of new / modernization of existing engineering enterprises in the sector
  • To develop a detailed engineering development program for the Ministry of Trade and Industry of the Republic of Kazakhstan

Our approach

  • Analizing the current state of the industry and the factors hindering its development reducing its competitiveness, along with the factors contributing to the development of engineering in the Republic of Kazakhstan
  • Studying the key engineering development trends in the world and CIS, taking into account external and internal industry factors to construct a scenario forecast for the engineering sectors in Kazakhstan
  • Creating the criteria to identify the priority segments in Kazakhstan for engineering development
  • Assessing the international experience of using government support for the engineering sector
  • Working groups of the directors in the leading engineering enterprises in Kazakhstan, as well as other experts with the aim of identifying the key elements of government support were interviewed
  • Measurements and controls and conducted preliminary budget assessments for each action of state support were developed

Results

  • The priority engineering segments for development in the Republic of Kazakhstan was identified
  • The potential and provided development forecasts for the sector taking into account different internal development scenarios (within Kazakhstan) and external (CIS and world) were assessed
  • Recommendations and a detailed plan to develop engineering in Kazakhstan along with controls, measurements, and preliminary budgetary assessments for each of the recommended measurements were provided

 

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