6. Lecture complex (thesis of the lectures) Theme of the lecture №1. Characteristic of development of economy of the Republic of Kazakhstan and its state regulation

1. National economy of the Republic of Kazakhstan. Modern branch structure of economy of Republic of Kazakhstan

2. Essence of the market. Market mechanism

3. Economic instruments of state regulation of economy

1.Kazakhstan is important to world energy markets because it has significant oil and natural gas reserves. With sufficient export options, Kazakhstan could become one of the world's largest oil producers and exporters in the next decade. But Kazakhstan's strategic aspiration is to become a modern, diversified economy with a high value added and high-tech component, well integrated in to the global economy.

The energy sector is viewed as a good basis to achieve this goal.

The main goals of current structural policy are diversification and the strengthening of the non-oil sector.

The main driver behind Kazakhstan's economic growth has been foreign investment, mainly in the country's booming oil and natural gas industries. All these institutions serve the further development and diversification of the economy of Kazakhstan. Thus, during these years Kazakhstan has covered a path which has not been easy, and has achieved significant results. Having created and strengthened sociopolitical stability by implementing democratic and market reforms on a steady basis, Kazakhstan has gained macroeconomic stability, formed legislation essential for conducting successful business, and realized structural reforms which, while being unpopular initially, created a firm basis and favorable environment for the accelerated development of the country in the mid and long terms.

2.The market mechanism is the operation of the forces of supply and demand, is the very heart of the market system. This chapter explores the logic behind using the market mechanism to set prices and output.

Demand: Since consumption is presumably the fundamental purpose of the material side of life, our investigation of the market mechanism can start with the consumer. As a consumer you will respond to changes in prices. When the price of some item that you normally purchase increases, you will buy less of it. there are two reasons for this.

Supply: If the price they can get increases, there will be higher profits. They can increase production because previously unprofitable production methods (such as putting workers on overtime) or adding a night shift will now be profitable. Other business people will also consider entering that line of business. On the other hand, lower prices will force some firms to cut back production and force others out of business entirely.

3. The economic role of state concretizes in its’ functions, promoting the solving of many different economic and social problems, grabbing the producing,  distribution, exchange and using material and spiritual goods on macro, micro and mezzo-levels. Here are several functions of state:

1. The providing of lawful basis and social climate, promoting the effective functioning of market economy, regulating of market economy with the help of market levels of influence on the behavior of subjects of market relations.

2. Ant monopolist politics and the support of competition.

3. The development of effective common conditions of reproduction

4. Realization of state property with the help of developing the industrialists’ activity in the state sector of economy.

5. The distribution of recourses, their rational redistribution among different spheres of industry, economy.

6. Stabilization of reproduction on macro-level with the help of regulation of economic dynamic by invest-structured policy, financial and tax control after the level of production, unemployment, inflation.

7. The securing of principle of equity, social guarantees with the help of redistribution of profits, realization of transfer payments.

8. The support of little and average business.

The organization of fiscal politics – the impressments of a part of profits of managing subjects in order to form a state budget.

In the mechanism of government regulation of economy means (instruments) play an important role, that are divided into 2 groups: administrative (admissions, compulsions) and economic (budget, credit, price, and fee). All of them are used separately as well as together, especially during the state economy programming, usage of the means of the state sector. That’s why the principal meaning has the right choice of the forms, methods due to the aims and social- economic situation, objects and subjects, effectiveness of the implementation. The main forms of the state regulation are planning (long term, midterm and short term), programming and prediction on national and international levels. The methods of the regulations are:

• economic regulation;

• law regulation;

• administrative;

• financial.

Basic literature: 1,2,3,4,5,6,7,8,9.

Additional literature: 10,11,12,13,14,15,16.

Periodicals: 17-60

Internet sources and the optional list of electronic sources: 1-6