significant problem Kazakhstan has low scores on important governance

Significant problem kazakhstan has low scores on

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significant problem Kazakhstan has low scores on important governance indicators, even compared to some of its peers in the CIS While the quality of laws is often considered to be good, challenges remain in implementation and independent judicial review Kazakhstan has to address significant challenges in its broader context if it is to upgrade its economic performance Source: EBRD Kazakhstan country strategy (2004), World Bank – Governance (2004), World Bank country profile (2004)
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28 Copyright 2005 © Professor Michael E. Porter Kazakhstan Competitiveness 01-06-05 CK -15 -10 -5 0 5 10 15 Political, Social, and Legal Conditions in Kazakhstan Corruption Ukraine Hungary Kazakhstan Azerbaijan Romania Bulgaria Latvia Uzbekistan Slovak Rep. Poland Lithuania Czech Rep. Slovenia Estonia Russia Note: Eastern European and CIS countries in blue, constant country sample Source: Global Corruption Report, 2003 Change in Rank, Global Corruption Report, 2003 versus 2001 Rank in Global Corruption Index, 2003 80 1
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29 Copyright 2005 © Professor Michael E. Porter Kazakhstan Competitiveness 01-06-05 CK Factor Kazakhstan’s situation The Context for Competitiveness in Kazakhstan A Mixed Legacy Geography Culture Vast, sparsely populated country in a remote, landlocked location Population centers on the Southern, Western, and Northern borders 60% of population live in cities Potential to play an important role in Central Asia A meeting point for many cultures 120 different ethnic groups from Asia and Europe living together peacefully
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30 Copyright 2005 © Professor Michael E. Porter Kazakhstan Competitiveness 01-06-05 CK Legacies of a Planned- Economy Economic policy is centrally directed Buyer/supplier linkages planned from a national perspective; many were broken after the end of the Soviet Union Relationships between suppliers and buyers are specified and focused on production of defined goods and services The geographic locations of related economic activities driven by political and security considerations Companies focused on narrow parts of the value chain, lacking marketing and other capabilities Cluster-based Economy Economic policy involves significant autonomy and well developed institutions at the regional and local level Regions specialize in terms of the fields in which they compete Clusters leverage externalities across firms, universities, and other local organizations that drive productivity and dynamism Geographic choices are based on the economic attractiveness of locations; firms co-locate with others to reap cluster benefits Company scale and scope driven by economic efficiency , including the ability to access specialized skills available in the surrounding cluster Small and medium sized companies are an essential part of clusters The Context for Competitiveness in Kazakhstan Legacies of a Planned Economy
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31 Copyright 2005 © Professor Michael E. Porter Kazakhstan Competitiveness 01-06-05 CK Microeconomic Foundations of Competitiveness The Quality of the Microeconomic Microeconomic Business Business Environment Environment
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  • Economics, Michael E. Porter, Kazakhstan, Professor Michael E., Kazakhstan Competitiveness

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