Influence of the quasi-state corporations on the developing economy, in the case of the JSC Development Bank of Kazakhstan and Kazakhstan economy

Abstract

Regional development banks, as a state instrument for promoting economic development, began to be created everywhere after the end of World War II. Similar development institutions exist in both developed and developing countries. The scientific world is still studying the phenomenon of development banks and their impact on the development of the economy. The literature review revealed that there is a need for a more thorough and systematic study of the functioning and effectiveness of development finance institutions, in particular in the Kazakh scientific environment. As well as other countries, Kazakhstan has its own development bank, the degree of study of which is extremely small. Thus, the aim of this study was to study the impact of quasi-state companies on the development of the economy of developing countries, in the context of the Development Bank of Kazakhstan JSC and the economy of Kazakhstan. Within the framework of the study, elements of a qualitative research method and financial analysis were used. To collect primary data, 4 interviews were conducted with representatives of the Kazakhstan financial system. For a better understanding of the influence of the DBK, a special case of a glass factory was considered, since it was funded by the DBK and gained scandalous fame. To understand the impact on industries and regions, a financial analysis of the loan portfolio, information and publications from the official DBK website was carried out. Also, an analysis of the DBK's participation in state programs was carried out on the basis of reporting information on the implementation of these programs. As metrics of the impact on the economy, the following were used: creation of new jobs and exports. The results of the analysis showed that the influence of DBK on the economy of Kazakhstan is multifaceted. DBK makes a positive contribution to economic growth and development through the implementation of government programs, project financing and the development of certain regions and industries. However, there are concerns about the sectoral and III regional distribution of funds. It was also noted that larger companies have a significant share in the financing structure. It was revealed that with an insignificant contribution to the creation of jobs in relation to the able-bodied population, the contribution to exports, during the analyzed period, amounted to at least 10%. Analysis of case of a glass factory determined that corruption inherent in authoritarian regimes can have a significant impact on the development of enterprises, industries and that such cases take place. These findings open the door for additional research into the significance of quasi-state institutions in countries governed by an authoritarian regime. Since the concept of such institutions has positive effects in and of itself. The criticism of these institutions in Kazakhstan by public and government officials calls for further study.