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Kazakhstan Institute for Strategic Studies

under the President of the Republic of Kazakhstan

The President's Address to the People of Kazakhstan

Growing welfare of kazakh citizens: increase in income and quality of life

 

Well-being of the population and accession of Kazakhstan to the list

of 30 developed countries are the long-term goals of our independent state.

KazISS experts took part in the round table «Self-employment Kazakhstan citizens: a ballast or resource of social and economic development?»

On June 19, in Almaty was held a round table «Self-employment Kazakhstan citizens: a ballast or resource of social and economic development?» organized by the analytical group Kipr. The event was attended by KazISS experts Madina Nurgalieva, Lesya Karataeva, Irina Chernykh, Gulnara Mukhataeva.

The issue of self-employed citizens regularly becomes the subject of professional discussions. According to various data the country has 2.1 or 2.7 million self-employed people – that is about one quarter of economically active Kazakhstan citizens. The largest share of self-employed people is in 4 southern regions of Kazakhstan: South Kazakhstan (now Turkestan), Zhambyl, Kyzylorda and Almaty.

Within the expert discussion participated as a speakers a scientific leader of the Applied Economics Research Centre Zhaksybek Kulekeyev, who presented the results of a report «Social portrait of self-employed people in the south regions of the Republic of Kazakhstan», President of the public fund Centre for Social and Political Studies «Strategy» Gulmira Ileuova, also Vice President of JSC Labour Resources Development Centre at the Ministry of Labour and Social Protection of Population of Kazakhstan Takhir Aslyaliyev.

 

In discussion experts focused on the scope of independent employment in the Republic, on the lack of a unified approach in definitions, differences between self-employed and individual entrepreneurs. The main subject of discussion was the risks associated with the introduction of the Unified Social Tax (UST) in the context of access of self-employed to the pension system, medical services, social insurance.

In her speech, Madina Nurgalieva drew attention to the need to forming a single synchronized methodological approach, which must be developed jointly with the profile agencies. «The proposed methodology must be tested in the public experts discussion. To developing an effective methodology Ministry of Labour and Social Protection of Population of Kazakhstan, Ministry of National Economy of the Republic of Kazakhstan, Ministry of healthcare of the Republic of Kazakhstan, Ministry of Finance of the Republic of Kazakhstan and various departments must be involved in the process.  Considering the forthcoming Population Census in 2019, should be given an impetus to this process to build an unified Identification criteria to self-employed people».

Madina Nurgalieva also noted the importance of working with the public and the need to increase a level of legal and financial literacy. «According to the experience of holded polls, respondents often do not consider themselves to self-employed, although in fact they are».

Summing up, the experts concluded that  there's need to know about difference between self-employed, part-employed people, freelancers and various subtypes of self-employed citizens should be clearly defined, also to examine the risks of introducing a Unified Social Tax from a position of international experience and Kazakhstan specificity.