Privatization more than a quarter of a century ago in Kazakhstan, as in other republics of the Soviet Union, was announced in order to give an impetus to the economy, give it an impetus, and with new force launch the mechanisms for developing production and distribution systems. Thus began the era of ownership, it touched literally every family. People could not only become shareholders in the enterprises in which they worked, but also received ownership. The reform has not yet been completed, but today it is not so active and large-scale, although it remains under the great attention of the state and society.
How privatization began in Kazakhstan
The first privatization in Kazakhstan began in the nineties and was due to the country's transition to a market economy. To strengthen and develop the new course under the changed conditions, it was necessary to resort to a process in which state property would pass into the private hands of individuals and legal entities, that is, through privatization.
Stages of privatization in Kazakhstan:
- The first stage lasted from 1991 to 1992. The state was the first to decide to sell objects of trade and services. In parallel, the creation of joint-stock companies at enterprises begins, the first joint-stock owners appear in labor collectives. The state sector of the economy during this time left 4,000 small and 2,500 large enterprises.
- Timeframe of the second stage of privatization - 1993-1996. About 14,000 enterprises have been privatized. The most difficult stage, because it includes “small” and “mass” privatization. The issuance of housing coupons begins. Residents of cities received 100 coupons, rural residents - 120 each. Coupons were issued in the coupon book. By 1993, 90% of the country's population received them. With the help of coupons, it was possible to redeem one or another object of economic property from the state at an auction. It was possible to participate in the auction with cash. Mostly small enterprises went under the hammer, and agricultural facilities were also privatized for the first time. The coupons introduced by the authorities of Kazakhstan allowed citizens to receive a share of state property in property in two directions: housing and investment.
- The third, but not the final stage of privatization, lasted from 1996 to 1998. Almost eighty-nine thousand objects were left in private hands from state property.
The whole process is regulated by the law on privatization in Kazakhstan.
Privatization of housing in Kazakhstan
In the 90s, citizens of Kazakhstan received the right to become owners of one dwelling from the state housing stock. Free transfer of real estate was possible after state registration of the privatization agreement. Privatization in the Republic of Kazakhstan allowed the owners to dispose of the apartment of their own free will: sell, change or give.
How to privatize an apartment
Privatization of an apartment in Kazakhstan will not cause much trouble. In order to obtain ownership and to redeem a state or office apartment, you must first collect a package of documents. It’s best to start with a statement that all adult family members must sign. You will also need a copy of an identity card or a copy of the passports of the applicant and his relatives, a copy of the lease or rental agreement or a housing order. A certificate of availability or absence of the applicant’s own housing is required for presentation. The same certificate should be with family members.
These documents should be contacted by the housing commission. After considering the certificates and copies, the commission will make a decision.If she will approve a package of documents, you can register the right to property. The apartment becomes a joint property of the owners of privatized housing.
The conditions for the privatization of apartments are controlled by the articles of the law “On Housing Relations”.
Difficulties in privatizing apartments in Kazakhstan
Despite the privatization process, launched more than two decades ago, and the established scheme of the institution of ownership, some citizens of Kazakhstan cannot still become owners. For example, the prosecutor’s office of Pavlodar was flooded with applications for the recognition of property rights. It turned out that people have only housing orders issued by enterprises. No other documents are contained in the archives. They simply were not transferred there, they say in the prosecutor's office of the city. So, citizens had difficulties pi privatizing apartments. For those in this situation, the authorities went to simplify the privatization process by announcing the “Owner of Law” program.
Economic privatization in Kazakhstan
In parallel with housing privatization, economic privatization continues in Kazakhstan. State enterprises and subsidiaries are transferred to the competitive environment. This is done in order to reduce the influence of the state in the economy and reduce the share of state property to the level of OECD countries, that is, up to 15% of GDP.
Reasons for Economic Privatization
The state, entering the authorized capital of enterprises, controls them and provides financial support. Proponents of privatization are confident that the state should not spend money in this direction. There are enterprises that are in crisis or pre-crisis state. Through privatization, only business can save them. Risks are also borne only by him. Large companies in Kazakhstan get the opportunity to free their own resources from non-core assets, optimize the structure and leave only strategic objects in the group.
Expectations from privatization of state enterprises
Privatization should help increase the efficiency of enterprise management and reduce the burden on the national budget, experts say. Ordinary citizens hope that the competition regime will force organizations to improve the quality of service and lower prices for goods and services.
The sale of state-owned enterprises will replenish the budget.
The second wave of privatization in Kazakhstan
In order to give the chance to the economic sector to develop independently in Kazakhstan in 2014, the second wave of privatization began. The government approved a list of entities and a plan. In 2014, it was planned to privatize 287 facilities, in 2015 - 232 enterprises. For three years of the second wave of privatization, until 2016, 869 objects were to go under the hammer. Later, the number was repeatedly adjusted.
Opportunities and responsibilities of investors
Privatization of state property is in the form of an electronic auction. Its advantages:
- maximum transparency;
- the exclusion of the human factor - only the system decides whether to allow the bid to bid or not, reject it or limit it;
- no copies of any documents are needed;
- equal access is provided for all investors.
A bidder must have an electronic signature and a bank account in order to make a guaranteed contribution to the account of the trading platform.
The winner of the tender undertakes to maintain the professional team of the enterprise and its profile.
Privatization procedure
E-bidding is preceded by pre-sale preparation. The value of the object is estimated, the commission considers the conditions for the participation of the enterprise in the auction, and only after a positive response is the object allowed to bid.
To participate in the bidding, legal entities and individuals must register on the state portal.The website of the Committee on State Property and Privatization of Kazakhstan presents the necessary registers, databases and statistics - everything that will be useful and interesting to the investor participating in the auction. Here you will also need to create a Personal Account.
After choosing an object, the investor can make a guaranteed contribution, he arrives at the account of the trading platform in a matter of minutes. Next, an electronic application is formed.
When summing up the results of electronic trading, the new owner of the state asset is determined, who offered the highest price per lot. At the next stage, a contract of sale is concluded with him.
If there are no buyers for the object, the enterprise will be liquidated or reorganized. However, the last stage of the electronic auction involves lowering the minimum cost of state assets. Although experts still advise holding large facilities in order not to cheapen and leave the economy in the red.
State assets of the second wave of privatization
Put up for auction objects that are on the balance of the state:
- enterprises of national holdings - 162;
- enterprises of republican ownership - 34;
- municipal property enterprises - 466.
The largest joint-stock company, the National Welfare Fund Samruk-Kazyna, has privatized 49 enterprises, including resource-extracting and transport companies. In general, 132 assets have already been withdrawn from the fund. AO plans to sell 215 objects, according to the Comprehensive Privatization Plan for 2016-2020.
The State Property Committee hopes that the share of enterprises privatized by local buyers will be 2/3 of all proposals, and 1/3 are ready to provide foreign investors.
What is in demand
Data on already sold objects indicate that the organizations in the transportation of passengers and goods, public catering structures, industrial and agricultural enterprises, as well as the media are in the greatest demand.
Results of the second wave of privatization
By the end of the second wave of privatization, more than 300 state assets were sold, most of which were transferred to citizens, individual enterprises and legal entities. The budget replenished with 86.5 billion tenge.
Results of privatization, 2014-2016:
- 57 assets of the national holding were privatized, the amount from sale to the budget - 68 billion tenge;
- 19 enterprises of republican property were privatized, the amount from the sale to the budget - 7 billion tenge;
- 157 utilities were privatized, the amount from sale to the budget is 5 billion tenge.
25 cultural objects dropped out of the privatization program, because by law they are not subject to sale.
Privatization Continues
Privatization of state property will continue until 2020. The process is still considered to be able to balance the interests of business and the state. The authorities expect activity from investors, objects are periodically presented at various economic and investment forums.
According to the latest updated data from the portal of the State Property Register, 444 objects were sold. The compiled top list of state assets includes 65 enterprises. Most of the categories are industry, services, and energy. Several medical, educational organizations, transport, telecommunications and agricultural.