Scientific journal
International Journal of Experimental Education
ISSN 2618–7159
ИФ РИНЦ = 0,484

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The government performs its regulating functions through administrative and economic methods. Administrative methods of regulation are common for team economy. However, governmental regulations on market economy are based on economic methods. Administrative or straight methods limit the choice of economic entity. For instance, policy targets on volume and range of produced products or centrally fixed prices for goods and services, typical methods of administrative regulation in economy planning, deprive the usage of alternative resources for the entity [1]. Unlikely, economic and indirect methods of governmental regulation do not limit the entrepreneurial freedom of choice. For example, decreasing the taxes on business or lowering the discount rate are the common examples of economic regulation, directed to increasing the production and strengthening investing activities of entities. The latter increase investing in capital and volume of production not due to lack of choice. They have the total freedom of choosing production program and investing policy. Lowering the taxes and discount rates increases the speed of growth in production and investments more beneficial than before. At the same time, by forcing entities to perform specific actions, any administrative controls have secondary indirect impact on a range of related economic processes. For example, administrative price increases not only determines their level, it also indirectly determines the demand and supply level, and by this it can be stated that any methods of administrative control have the characteristics of any indirect economic controls. Administrative control methods are diametrically opposed to the nature of the market, they block the action of the relevant market regulators. If the volume of production and supply of raw materials dimensions are defined for the enterprise,it can not respond to changing market conditions by increasing or reducing output. The higher incidence of administrative management techniques, the narrower the scope and lower the efficiency of the real market relations.

Economic methods of regulation, by contrast, are adequate to the nature of the market. They directly affect the state of the market and by that indirectly affect the producers and consumers of goods and services. For example, an increase in transfer payments changes the conditions in market for consumer goods also increases the demand, which in turn contributes to higher prices and forcing producers to increase supply volume. Thus, economic management methods operate over the market through market mechanisms. Transition from a command to a market economy is accompanied by dramatic changes in the system of state regulation methods, destruction of the previous system of administrative methods and the creation of a new system of economic regulators. In order to reduce the scale of the crisis production drops and to prevent a catastrophic drop in living standards, the state may maintain ,in the early stages of reform, administrative control over the production and sale of a small group of products that form the basis of production and personal consumption of the nation. With the deepening of market reforms, economic stabilization and mastering economic methods the state completely reduces the scope in usage of administrative levers, without giving all the way their use.

In Kazakhstan, as well as in other post-communist countries, we face the underestimation of the government role in the economy. Misunderstanding the economic role of the state prevents developing a suitable concept of state economic policy. It is not a secret that the reforms are carried out «from above», and this is no tragedy that it is the only acceptable form. Kazakhstan’s economy is experiencing an unprecedented crisis in the history where all economic «diseases» have intertwined. Since the crisis has objective reasons, any post socialist country has not escaped it. Somewhere it is less, somewhere it is deeper than in our country. The role of business is constantly growing steadily in our country. Entrepreneurship is intended to address important issues in today’s economy, such as:

  • to expand production of many consumer goods and services significantly and without significant capital investments, using local sources of raw materials;
  • To create conditions for the employment of labor, liberated in large enterprises ;
  • To make a positive alternative to criminal business, and many others.

State provides support for business in the following areas:

  • The creation of favorable conditions for the use of state financial, statistical, logistical and information resources for the business entities, as well as scientific and technical developments and technologies;
  • Establishment of a simplified procedure for state registration of business entities, their licensing activities, certification of their products;
  • Elimination of the legal regime favored for businesses, including the preferential tax treatment, payment of customs duties;
  • Establishing a system to attract and use of investments, including foreign, to support the development of entrepreneurship;
  • The adoption of special lending programs of businesses to the definition of financial resources;
  • Establishment of a simplified procedure for state registration of business entities, their licensing activities, certification of their products;
  • Support for foreign economic activities of businesses, including the development of their trade, scientific, technical, industrial and other relations with foreign partners.

The work was submitted to International Scientific Conference «Problems of international integration of national education standards», France (Paris), March, 14–21, 2014, came to the editorial office оn 07.02.2014.