§ 5. The general characteristic of the economy

The republic Kazakhstan is the state with different extensiveness of territory, a variety of natural riches and multinationality. The country future, increase of standard of life of the population are directly connected with development of an economy. The economy of Kazakhstan represents set ­ of various enterprises closely interconnected among themselves ­ and the establishments satisfying with the activity certain demand of the population.

The enterprises, associations and establishments are state ­ and private, joint-stock, co-operative and etc.

The enterprises and the establishments satisfying demand of the population­, unite in economic branches which is divided into industrial and non-productive spheres.

Industrial sphere: means of production (electric power industry, mechanical engineering, etc.), consumer goods (foodstuff, clothes), transportation to the consumer (transport, communication). These are industries, agriculture, communication, building, transport, trade, public catering.

Non-productive sphere: household (habitation, municipal services­, etc.) and spiritual (culture, art, etc.) requirements of people. The public health services, the rest organisation­, formation, culture, art, science, physical training and sports, consumer services, municipal and housing economy concern this sphere­.

The industry - leading branch of the economy of republic. The industry level of development is defined by technical progress ­ in all branches of the national economy, including defensive ­ power of the country.

Now the volume of output of an industrial output ­ of Kazakhstan makes 15 %. Among the CIS countries the republic takes the ­ third place after Russia and Ukraine. Prominent features ­ of the industry of the country are security local ­ raw materials and fuel (extracting branch), and also presence of processing branches. The industry is conditionally subdivided ­ on two groups: 1) group A (manufacture of means of manufacture ­ - fuel, the electric power, cars, raw materials, etc.); 2) group ­ B (production of commodities). The industry gives 50 % of all public production made in republic.

The heavy industry is a basis of economic power of the country, a source of growth of the standard of life of the population. Fuel industry, electric power industry concern it, black and nonferrous metallurgy, mechanical engineering, the chemical industry and manufacture of building materials. To easy and the food-processing industry concern textile, sewing, tanning, shoe­, meat, fish, sugar, wine-vodka and other branches.

Among production which is let out by a mining industry of Kazakhstan, the raw materials, fuel and half-finished products prevail.

Kazakhstan on stocks of many minerals takes leading ­ places in the world. However on degree of their processing it is on 10-20 places among the developed countries of the world.

Possibilities of expansion of the mining industry in the country are great: the most part of the investigated stocks is ready to use­. However manufacturing industry in the country is insufficiently developed­. Therefore Kazakhstan buys cars, the equipment ­ and other finished goods abroad.

With a view of the best maintenance of the population of the country with a domestic production the ­ great attention addresses on development of branches ­ of manufacturing industry for what it is necessary to involve ­ foreign investments, widely to introduce new technologies­, to restore industrial communications between the enterprises ­ of the CIS countries.

Over the separate enterprises of republic the joint ­ kazahstan-foreign or foreign companies, firms supervise­ with a view of effective attraction of direct investments on the basis of what the domestic production should develop systematically. Recently the state began to carry out purposeful to the policy on returning under the control of strategic branches ­ of economy. In June, 2008 the government has accepted the decision ­"About the further measures on development of mountain-metallurgical branch ­ in Republic Kazakhstan". According to this document the state gets a share of participation in share capital Kazakhmys Р1с. As a result of the transaction Government RK will keep 11,65 % of actions ENRC Р1с and gets 15 % of actions Kazakhmys Р1с.

Besides, in January, 2008 as a result of negotiations the Republic Kazakhstan has restored initial balance of economic interests of the country under the project "Kashagan". Kazakhstan has increased a share of participation ­ in the North Caspian project to level of the large participant (i.e. on a level with other shareholders, such as Exxon, Total, Eni, etc.) - 16,8 %, and also has obtained monetary compensation for carrying over of date of commercial extraction and increase in expenses under the project.

The Prime minister of the country also has disposed to accelerate the repayment in state property of a controlling interest of joint-stock company "Mangistaumunai - Gas". As a result of the decision of a question to the state it will be returned not less than 51 % of shares of company.

In development of the industry the great attention is given ­ to such forms of the organisation of manufacture, as concentration­, specialisation and the combined cooperation.

Concentration of manufacture - a concentration of the greatest part of means of production, labour and output at the large ­ enterprises.

Manufacture specialisation - the form of public division of labour, restriction of industrial activity of the enterprise by release of certain kinds of production.

Specialisation promotes increase in production ­ and increase of its quality, labour productivity growth. Specialised manufacture is characterised, besides uniformity ­ of production, uniformity of technological process.

Manufacture cooperation - realisation of industrial ­ communications between the enterprises which are letting out homogeneous production. For example, the Pavlodar tractor factory uses the ­ spare parts imported from other CIS countries.

Manufacture combination - a combination in one enterprise of the different manufactures representing or consecutive steps of processing of raw materials, or playing an auxiliary role in relation to other manufactures.

Concentration, specialisation and the combined cooperation ­ of manufacture promote intensive development of all industries.

FUEL AND ENERGY COMPLEX

The power economy of any country is a basis for creation of material base and development of productive ­ forces. The Fuel and energy complex consists of industrial ­ groups which provide manufacture and transportation ­ of various kinds of fuel and energy. The structure of the fuel and energy complex includes the enterprises for extraction and processing of all kinds of fuel (fuel industry), to manufacture ­ of the electric power and its transportation (electric power industry).

Natural resources from which it is possible to receive energy is called ­power resources. These are fuel (coal, oil, gas, slates), water (force of falling of water) resources, and also nuclear energy.

To consider proportions in extraction of various fuels manufacture ­ of energy and their distribution between various consumers­, use fuel and energy balance.

The parity of extraction of different kinds of fuel and the developed energy (arrival) and their use to an economy (expense) is called as fuel and energy balance.

To calculate the fuel and energy balance, the different ­ kinds of fuel possessing unequal calorific value, reduce to a common denominator.

Conditional fuel (C.f.) - unit accepted at technical and economic calculations serving for comparison of thermal value of various kinds of organic fuel. Warmth of combustion of 1 kg firm C.f. (or 1 m³ gaseous) - 29,3 МJ (7000 kcal).

1 t coal it is approximately equal 1 т C.f., while 1 t oil - 1,4 t C.f., natural gas - 1,2 t C.f., brown coal and peat - 0,4 t C.f., slates - 0,3 t C.f.

The highest calorific value oil and gas possess. Value ­ of fuel depends not only on it "caloric contents, but also and from expenses for its use, manufacture and transportation.

Oil and gas are economic fuel as their manufacture ­ and transportation on pipelines manage more cheaply, than mining operations by open (career) way­. However last years, despite increase of transport ­ expenses, coal mining by open way is considered favourable.

One of kinds of power fuel is brown coal. In view of that transportation of low-calorie brown coal is unprofitable, this kind of fuel use at the local industrial ­ enterprises.

In structure of fuel and energy balance of manufacture recently there were changes. So, if in the fifties a priority kind of fuel was coal now the leading place belongs to oil and gas.