02. Master's Thesis
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Item Restricted CHANGE MANAGEMENT IN THE PUBLIC SECTOR: THE CASE OF ONE-STOP-SHOPS (OSSS) IN KAZAKHSTAN(Nazarbayev University Graduate School of Public Policy, 2022-11-20) Abdullah, Mohammad Habib; Abdramanova, Dinara; Bekmagambetova, AspetSince their establishment in 2005, one of the major challenges at One-Stop-Shop Public Service Centers (OSS PSCs) in Kazakhstan has been the ineffectiveness of employees in providing better public services, mainly due to their maladaptation to the change (digitalization). Therefore, the main purpose of this paper is to explore how employees at OSS PSCs in Kazakhstan can be effectively adapted to the change (digitalization) in order to provide world-class public services, particularly by implementing the ADKAR Change Management model in which ‘A’ stands for awareness of the need to change, ‘D’ stands for the desire to support and take part in the change, ‘K’ stands for knowledge of how to change, ‘A’ stands for the ability to implement the change, and ‘R’ stands for reinforcement to sustain the change. The data in this paper was collected mainly from the survey questionnaires which were distributed among 51 employees and semi-structured interviews which were conducted among 10 employees at 10 branches of One-Stop-Shops (OSSs) in Astana city. Based on the main findings of this research, there is a positive correlation between each element of the ADKAR Change Management model and effective performance of employees, especially at OSS PSCs in Kazakhstan. The limitation of this paper is in its scope since the main findings of this paper are based on the data collected only from Astana city. Limited literature is also another limitation of this paper. However, the findings of this paper can be used by the government of Kazakhstan to improve employees’ productivity at OSS PSCs as well as in other countries with similar contexts; it can also be used for further relevant researches and class discussions.Item Open Access SUSTAINABILITY OF NATIONAL FUND OF REPUBLIC OF KAZAKHSTAN(Nazarbayev University Graduate School of Public Policy, 2022-11-20) Sandybekova, Nurzhamal; Ibentayeva, Assel; Tleuov, NurkenThe active development of markets worldwide, globalization processes, resource curse, and permanent instability have led to the emergence of new financial institutions with the ability to exert a stabilizing influence on the global economy. For this purpose, sovereign wealth funds (hereinafter - SWF) were created. Recently, approximately 70 SWFs are operating worldwide. The creation and assets of sovereign funds have an impact on the external and internal balance of the national economy. The major principle was to establish the fund, which would become a «fund for future generations». Mostly, the income to the funds is tied to the commodity sector. However, with the advent of the «green economy», some of the funds adapt, diversify their investments and become non-commodity. However, there is a trend of renewable energy sources around the world. To what extent SWFs are resilient? Since Kazakhstan is at the top of the list of countries, producing oil and gas, the National Fund of Kazakhstan (hereinafter - NF) mostly depends on the commodity sector. In recent years, special attention has been paid to the activities of the NF. Especially after the Address of the Head of State Mr. Kassym-Zhomart Tokayev in September 2022, when it was announced the launch of the «National Fund for Children» program, this topic becomes relevant. Meanwhile, it is also often mentioned that the funds of the NF are excessively and inexpediently spent. The aim of this research is to analyze and identify the factors and problems which affect on sustainability and viability of our NF. Moreover, a research study in this field contributes to increasing NF’s revenues for future generations. The research methods will suggest identifying problems with transparency, governance, and profitability of NF to demonstrate sustainability and viability.Item Embargo “ANALYSIS OF THE “SERPIN-2050: THE YOUTH OF ETERNAL STATE TO THE INDUSTRY”(Nazarbayev University Graduate School of Public Policy., 2024-04-05) James-Aguh, Christabel Chinecherem; Takenov, Diyas“Serpin-2050 - The Youth of Eternal State to the Industry” is a program aimed at providing scholarships to young people from rural southern regions of Kazakhstan. The participants can study only in the assigned northern regions and are provided with a comprehensive scholarship with a range of assistance measures from the government. The official goal is to move people from the southern labor-excessive regions with high unemployment to the northern regions with a deficit of labor force. In return for government support, the participants are obliged to stay for two years in one of the assigned regions. However, numerous reports indicate that the program is not working and the number of the program graduates that leave assigned regions far exceeds the number of those who stay. This study aimed to understand the causes of this situation and make recommendations to alleviate it. Using statistical data, interviews with students and university administrators of three universities participating in the program, and the central government officials, we discovered that housing is the main issue for the graduates. This problem is further complemented by low salaries, not speaking Russian, social integration, and other issues. Based on the findings and the analysis of the government's proposed measures, we put forward the recommendations to develop the program.Item Open Access EVALUATING THE EFFECTIVENESS OF 2019 EDUCATION REFORMS IN INCREASING TEACHERS’ STATUS IN KAZAKHSTAN(Nazarbayev University Graduate School of Public Policy, 2024-04-05) Berligaliyeva, Gulaiym; Khussainova, Nagima; Umirbekov, TemirlanThis research aims to evaluate the effectiveness of state programs, introduced after 2019, that were implemented to increase teachers’ status in Kazakhstan. Using UNESCO's recommended definition of teachers’ status as an indicator of value and appreciation that teachers receive in society, we then analyze 5 main factors that influence it: level of autonomy, amount of compensation, workload, opportunities for professional growth and entry requirements in the field. Through a comprehensive survey of more than 2 thousands teachers from all across Kazakhstan, we were able to identify teachers’ perception of these factors and their effect on status, gaining valuable insight into their view on state reforms. Even though teachers generally approved of the reforms, especially for increasing the monetary compensation, many mentioned that state efforts have been futile in other directions. Additional interviews with individuals in the field of education gave a ‘voice’ to teachers’ responses, providing us with a conceptual understanding of survey results and detailed information on their opinions. This research has significant implications for policy-makers who can use our findings to evaluate the effectiveness of said state programs and use them for future policy considerations.Item Open Access THE LEGAL FRAMEWORK ON THE SITUATION OF STRAY ANIMALS IN KZ: PRACTICES AND POLICY RESPONSES(Nazarbayev University Graduate School of Public Policy, 2024-04-05) Aitzhan, Anar; Ibrayeva, Nargiz; Bulekpayeva, AidanaThis research study explores the situation of stray animals in Kazakhstan, emphasizing their rights and the regulatory framework. It analyzes the law “On Responsible Treatment of Animals”, its effectiveness, and public perceptions. The study examines historical and social backgrounds, identifying normative gaps in legislation. It investigates Kazakhstan's regulatory framework regarding homeless animals, encompassing their rights, security, and punishment for violations. It also contemplates global practices applicable in Kazakhstan and characterizes the gap between current reality and government actions. By applying a qualitative analysis which involves a survey and interviews, the study emphasizes public focus on safety issues over animal welfare problems. It discusses the regulatory environment, which leans toward reductionist approaches, and the financial difficulties hindering novel strategies. The study focuses on the need for a multifaceted and holistic approach, facilitating empathy and sense of responsibility towards stray animals. It invites legal reforms, public education, and evidence-based policymaking interventions to deal with the root reasons of stray animal growthItem Open Access WOMEN UNDERREPRESENTATION IN THE AKIMATS OF ASTANA: EXPLORING BARRIERS AND CHALLENGES(Nazarbayev University Graduate School of Public Policy, 2024-04-05) Assykpayev, Sanzhar; Bakirova, Bibigul; Ualibek, AigerimUnderrepresentation of women in civil service poses a great challenge for the inclusivity, gender equality, and political representation of women’s needs and interests in society. Cultural norms and societal pressures exacerbate the situation further limiting women employee’s career aspirations and advancements. In the presence of systematic barriers perpetuating underrepresentation, promotion of policies that encourage women’s participation are found to be an effective solution. This work explores the reasons and factors behind the underrepresentation of women in local governments through a qualitative case study of several akimats of Astana city. By interviewing representatives from local municipalities research reveals emerging themes from the experiences and challenges women employees face during their work and advancement to decision-making positions. Results of the study indicate that societal and cultural biases are prominent reasons behind the underrepresentation of women in akimats. Systematic pressure built on the base of male preference and historically developed assigned roles for women was found to be significant in defining the barriers women face during promotion to decision-making positions. Additionally, the study underlines the importance of domestic responsibilities in evaluating factors that influence women’s decision to pursue political careers in Astana akimats.Item Open Access KINDERGARTEN SHORTAGE IN ASTANA: CURRENT SITUATION, PPP IMPACT AND LIMITATIONS(Nazarbayev University Graduate School of Public Policy, 2024-04-05) Zhassulanova, Sana; Adamtayev, Dias; Bozchshin, AlibekThis paper will provide an overview of the issue of scarcity of places in kindergartens in Astana. Kazakhstan is facing a scarcity of 250,000 places and 20% of these places are located in Astana. Despite the implementation of Public-Private partnership, the issue is still current. The main focus of the paper is on the current situation of shortage of places, PPP impact in addressing this issue and the challenges in PPP mechanism. We have conducted 15 semi-structured interviews with government officials, owners of kindergartens and experts of preschool education and legal experts. Based on interviews, it was found that the PPP mechanism partially solved the problem of scarcity of places in kindergartens. Respondents mentioned the success of the Balapan program but also noted the severity of the issue now. The reason for partially solving this problem is the lack of attractiveness of PPP mechanism for private businesses for the following challenges: bureaucracy, strict requirements, land unattractiveness, corruption, economic and financial challenges. The policy recommendations were provided for each challenge.Item Open Access DECRIMINALIZATION OF DOMESTIC VIOLENCE: PERSPECTIVE OF EXPERTS AND PUBLIC OPINION IN KAZAKHSTAN(Nazarbayev University Graduate School of Public Policy, 2024-04) Maratova, Mukaddam; Mukhtor, Jonbegim; Ilkhamzhanova, LailoThis study aims to shed light on the decriminalization of domestic violence in Kazakhstan, specifically exploring the perspective of non-governmental experts and public opinion. Using a mixed-methods approach, 254 survey responses were collected from the residents of Astana, and seven interviews were conducted with experts. The results of the logistic regression analysis revealed that younger age respondents, females, not married and without children were more likely to support the measure that domestic violence should be criminalized. Our findings suggest that under decriminalization the absence of adequate punishment and protective tools for victims are critical issues since they may send the wrong signal to society and unleash the hands of the aggressors. Another issue with decriminalization is that it creates issues of impunity which later breeds violence. Although domestic violence was criminalized in Kazakhstan before 2017, it was not implemented in practice properly. Victims lacked the legal tools and resources to protect themselves. As claimed by the study respondents, a legal approach is necessary but not enough because the issue of domestic violence requires a multifaceted approach. Necessary steps may include social changes such as fighting against gender-based discrimination and gender inequality, changing the deeply-rooted patriarchal norms, and inculcating a culture of zero tolerance towards domestic violence. Further detailed recommendations based on the responses of experts and best practices for handling domestic violence around the world are provided.Item Open Access POLITICAL PARTICIPATION OF WOMEN IN THE PARLIAMENT OF KAZAKHSTAN(Nazarbayev University Graduate School of Public Policy, 2024-04-12) Kairatkyzy, Aigerim; Mamzhanova, Nurgul; Zhunussova, DayanaThis research discusses the political participation of women in Kazakhstan and current gender policies that attempt to ensure equal opportunities for women in the legislative branch. Throughout decades, women were excluded from the political arena indicating a high level of gender inequality in the state. To promote gender equality, Kazakhstan in collaboration with international organizations has made progress, but not in all public spheres. Women’s political participation still seems to be low which makes them underrepresented. This paper focuses on the legislative branch of Kazakhstan as one of the public spheres having a low level of women’s participation. To establish gender equality, Kazakhstan has adopted various policies and regulations which have not yielded considerable results. This paper attempts to provide explanations for the ineffectiveness of the current policies and demonstrate the attitudes of people toward women politicians in Kazakhstan through mixed-method research. The data was collected via survey of the public and interviews with female deputies. The survey collected responses from 350 citizens across Kazakhstan showing the attitudes of citizens toward women in politics. Interviews were conducted with 6 current and former members of the Parliament (MPs) that provided detailed information on current and past experiences of women in the Parliament. The study reveals that the underrepresentation of women in Parliament stems from traditional beliefs and expectations about women’s role in society. However, there is a high level of public trust in female politicians indicating the potential for further advancement of women in the political arena.Item Open Access THE HOUSING OF LOW-INCOME MULTI-CHILD FAMILIES IN ASTANA, KAZAKHSTAN(Nazarbayev University Graduate School of Public Policy, 2024) Kenzhebek, Assem; Assilova, Rassula; Aldabergenova, MakhabbatThis study was conducted to investigate the housing conditions of low-income multi-child families in Astana. The main motivation of the research is to study the effectiveness of government programs aimed at improving the situation of multi-child families. This topic is important because it involves children forced to live in difficult economic conditions and often have limited access to basic needs. A qualitative research design was used to study housing programs of multi-child families. The primary data collection is interviews and official correspondence from government agencies, Otbasy Bank and NGOs. We used secondary data from government agencies and the Bureau of National Statistics. The analysis in this paper tries to find out what programs and measures exist and whether programs such as "Nurly Zher", "Bakytty Otbasy" and rental housing without the right to redemption meet the housing needs of multi-child families. The results of our study can be used to (re)examine the state's housing policy towards multi-child families. There is no assessment of state support for multi-child families in Kazakhstan in any existing literature and this is a new contribution to the literature. Our finding indicates significant changes in the housing policy. The government increased the number of housing programs, changed the application process and separated multi-child families from other vulnerable groups. It led to a decrease in waiting time and made the application system more transparent and digitalized. The article argues that the housing policy for multi-child families was improved, yet the policy has some shortcomings.Item Embargo DIGITAL LITERACY LEVELS IN KAZAKHSTAN: THE CASE OF ASTANA AND AKMOLA REGION(Nazarbayev University Graduate School of Public Policy, 2024) Kutym, Begim; Toleuov, AdilbekIn the modern world, digital literacy acquires not only an educational meaning but also affects the development of the state and the economic well-being of the population. Scholars and researchers internationally have sufficiently studied the problems of digital literacy, but there is a paucity of empirical research in Kazakhstan. This study aims to partially fill this gap by examining the aspects of digital literacy pertinent to Kazakhstan and evaluating the accuracy of official data. Despite significant government initiatives aimed at enhancing digital literacy levels across Kazakhstan, doubts regarding the effectiveness of these programs have emerged, primarily due to questions surrounding the reliability of the official data. This research will critically examine these initiatives, investigating their impact. The quantitative research is based on data obtained from a survey of residents of Astana and the Akmola region. The questionnaire is based on the UNESCO Institute for Statistics’ Digital Literacy Global Framework competencies. Our findings suggest that age, type of settlement, and ICT possession are statistically significant factors in digital literacy levels. Moreover, individuals with higher digital literacy skills are indeed more likely to use or benefit from digitalized government services. The average digital literacy level is 61%, and the middle-aged and senior groups were the ones who scored the lowest. The findings should make an important contribution to conducting further research on digital literacy and digital competence of the entire population of Kazakhstan. The study introduces key factors of insufficient digital literacy levels of Kazakhstan’s residents along with recommendations for improving them in present-day realities.Item Restricted IMPACT OF TARIFF POLICY ON WASTE MANAGEMENT IN KAZAKHSTAN(Nazarbayev University Graduate School of Public Policy, 2024-04) Bakytzhanova, Aziza; Kuangali, NazymWaste management concerns are currently attracting increased attention. This study aims to investigate the efficacy of tariff policies in waste management, focusing on Kazakhstan as a case study. The study's methodology combined quantitative and qualitative methods to answer the research questions. The analysis of statistics, interviews with government authorities and waste management company executives, and data collected from other sources provided a preliminary picture of the effectiveness of waste tariffs and other waste-related concerns. The data demonstrated that, while tariff increases had a small effect on waste collection per person, they had a significant impact on waste collection per firm. The study also discovered that different tariff increases had different effects on waste sorting, pointing to the necessity for careful policy considerations. The interviews with government officials and company entrepreneurs shed light on a variety of issues with tariff policy.Item Open Access STUDY OF GENDER DISCRIMINATION IN THE UNIVERSITIES OF KAZAKHSTAN(Nazarbayev University Graduate School of Public Policy, 2023-04-14) Temirzakhkyzy, Kassiyet; Ryskulova, Madiana; Abenov, YernurThis research examines the prevalence of gender discrimination in universities of Kazakhstan. By employing Morley's micropolitics framework, this study focuses on the experiences of people and groups in order to understand how gendered power relations operate within universities. Three dependent variables were established through a survey and focus group discussions: gender-based undervaluation, sexual objectification, and sexual harassment. According to the findings, female students are significantly more likely to face all three types of discrimination. Personal accounts of discrimination were shared during the focus group discussions, including biased grading and feedback, sexual remarks, stalking, and sexual assault. Recommendations are provided for university administrations, the Ministry of Education, and the Mazhilis of Parliament to address these issues, such as developing anti-discrimination and harassment policies, offering education and training, and establishing reporting procedures.Item Restricted EVALUATION OF CARBON PRICING IMPACTS ON THE OIL AND GAS INDUSTRY OF KAZAKHSTAN(Nazarbayev University, Graduate School of Public Policy, 2023-11-05) Rakhimzhanov, Sultan; Bokeikhanov, Dauren; Zhalgabay, DaurenThis paper’s main research area is the extent to which carbon pricing has an impact on Kazakhstan's oil & gas industry. For this purpose, the research overviews the necessary energy policy reforms considering climate change issues and addressing the economic and social impacts of such reforms around the globe. It closely analyzes carbon pricing, particularly the emission trading systems of the world. The research identifies that Kazakhstan faces serious environmental issues and works on resolving it through environment-oriented policies and the Kazakhstan Emission Trading System (KZ ETS). The energy sector is the main emitter of greenhouse gases, and oil & gas sector is responsible for approximately 45% of energy consumption. Since the oil & gas sector is a private sector with access to international expertise in sustainability knowledge and sufficient funds to modernize equipment and introduce new technologies, it was chosen as the target for this research. Research conducts the overview of the KZ ETS system with references and comparisons to the international experience. It conducts the qualitative research in the form of interviews with the sample of specialists from the field of oil & gas, environment protection and state administration to identify the issues of KZ ETS and its potential to influence oil & gas companies.Item Restricted COMMUNICATION STRATEGY ABOUT THE PROJECT OF THE NUCLEAR POWER PLANT IN KAZAKHSTAN(Nazarbayev University, Graduate School of Public Policy, 2023-11-05) Akynov, Tomas; Gninenko, Saltanat; Kartpay, AldiyarOver the last two decades, the Kazakhstan government has discussed constructing a Nuclear Power Plant (NPP) to pursue an energy security agenda and, more recently, carbon neutrality. However, government communication on this topic has been inconsistent and intermittent, and in the past four years, we observed an increase in communication conducted by the government. The NPP, being a grand project with multiple stakeholders and complex implications for the country, deserves close attention and careful consideration from the country as a whole. Thus, this paper aims to study the communication strategy regarding the construction of NPP in Kazakhstan. A modified Laswell model is used as a conceptual framework to analyze communication in terms of “Who, Says What, in Which Channel, to Whom, with What Feedback,” where the last category replaces measuring the effectiveness of communication due to its recency. Semi-structured interviews with two groups, representing government officials responsible for the communication and the expert community and civil society activists providing feedback on the communication strategy, contributed to the findings of this research. In addition, documents related to the PR campaign, the results of sociological research, and the social media pages of the primary stakeholders in communication were analyzed. The two key stakeholders responsible for the communication are Kazakhstan Nuclear Power Plants (KNPP) LLP and the Ministry of Energy (MoE). The themes they cover are energy deficiency, experts’ opinions on the NPP, peaceful nuclear, and other materials informing the population about the benefits of nuclear energy. However, the second group is quite negative about the reasons provided by the KNPP, MoE, and the government, emphasizing the lack of addressed risks and concerns. The paper ends with the relevant recommendations that seek to improve the communication strategy of the MoE and KNPP on the project of NPP.Item Open Access TO WHAT EXTENT DOES DIGITALIZATION AFFECT THE CORRUPTION RATE IN KAZAKHSTAN?(Nazarbayev University, Graduate School of Public Policy, 2023-11-05) Zhaubassar, Ablaikhan; Bozhanov, Adilkhan; Korotich, SauleIn the search for economic growth drivers, scholars identify consistent and transparent public policy as the foundation in any stage of a country's economic development. Transparency of public decisions and policy processes leads to the trust between government and society along with the national integrity, impartiality, accountability and low corruption level. Transparent and non-corrupted governance in Kazakhstan is supposed to be achieved by the mechanism of digitalization of public services. However, Kazakhstan as a sub-regional leader in e-governance still remains the outlier in terms of corruption combating. This research is aimed at analysis of linkage between digitalization and the corruption level. In spite of an array of studies on this theme, findings still present ambiguous interpretations. Our study makes an effort to understand the impact of digitalization in public services’ field on the corruption rate in Kazakhstan over the course of the last decade.Item Restricted EVALUATION OF KAZAKHSTAN'S INVESTMENT ATTRACTIVENESS: DETERMINANTS AND SUGGESTIONS(Nazarbayev University, Graduate School of Public Policy, 2023-11-05) Nurgozhina, Zhaniya; Nurzhanov, Islambek; Saktaganov, DauletIn light of Kazakhstan's impressive economic achievements over its three-decade period of independence, its strategic geographic positioning and substantial oil and gas reserves have facilitated the country's capacity to attract Foreign Direct Investment (FDI). However, sustaining and augmenting FDI inflows necessitates the implementation of a well-defined and transparent investment management policy. Our study adopts a bottomup analytical approach, engaging directly with pivotal stakeholders within the investment framework to examine the current investment climate. Through comprehensive interviews and analysis, we discerned critical areas warranting refinement. Specifically, our findings underscore that fundamental enhancements are requisite in political stability, corruption reduction, legal infrastructure, bureaucracy, and inter-agency communication among key governmental entities integral to the investment landscape. This nuanced investigation underscores the imperative of strategic reforms to fortify Kazakhstan's investment architecture and bolster its enduring economic prosperity.Item Restricted ASSESSMENT OF THE FACTORS LIMITING GROWTH OF MEDIUM-SIZED BUSINESSES IN KAZAKHSTAN(Graduate School of Public Policy, 2023-11-19) Kokkozov, Dimash; Zhuszhassarova, Meruyert; Myrzatay, GaukharWith the growth of entrepreneurship globally and its potential gains to the economy and society, governments are focusing efforts on creating the fertile ground for their talents to innovate, grow and flourish. Acknowledging the fact that entrepreneurial activity is no one’s priority, state policies and programs aim to foster entrepreneurial culture by easing the burden on business creation and facilitating a supportive environment. Kazakhstan’s policy priorities for entrepreneurship development have been on the agenda of the government over the twenty years with major focus on advancement of the institutional context. Progress in the development of small and medium sized enterprises (SMEs) in the last decenniums has not yet produced results that would allow Kazakhstan to fully benefit from SMEs contribution to employment and economic growth. Statistics on SME performance and their contribution towards GDP falling below the national targets reflects the necessity of further research in quest for the future success of SMEs. This is particularly relevant with the trend in declining number of medium-sized enterprises despite the state efforts to increase their share of contribution to the country's GDP. The thrust of this research, then, is to examine the factors limiting the growth of small enterprises and enhance recognition of the importance of medium-sized businesses that is currently undervalued in state policies.Item Restricted INVESTIGATING THE FACTORS THAT HINDER KAZAKHSTAN'S INVOLVEMENT WITH THE BRI(Nazarbayev University, Graduate School of Public Policy, 2023-11-05) Mahate, Wumuti; Burhani, Imam BaqirKazakhstan is one of China’s direct neighbors, and a prominent one by size and border. Therefore, Sino-Kazakh interactions are crucial, particularly in respect to Beijing's efforts to advance the Belt and Road Initiative (BRI) throughout Eurasia. BRI is China's economic program that connects Asia and Europe and largely provides a basis for the transfer of goods from the East to the West and likewise from the West to the East. Therefore, in the present research, an attempt has been made to investigate the factors that hinder Kazakhstan's involvement with the BRI. In this research, it was conducted using qualitative methods and using first-hand (interviews) and second-hand sources (websites, articles, scientific journals, as well media. The results of this research have shown that Kazakhstan’s engagement with the BRI is becoming more complicated in the future. Based on findings of this research, Kazakhstan engagement with the BRI can lead to the reinforcement of corruption, as well as influence of China in the country. Furthermore, Kazakhstan has a long border with China, which has strengthened the government's and the country's citizens' concern about falling into a debt trap. In particular, there will be concerns for Kazakhstan because the BRI project's implementation failed to yield the same outcome for both countriesItem Open Access THE PERCEPTION OF THE EFFECTIVENESS AND GOALS OF THE PREFERENTIAL CAR LOAN PROGRAM REINTRODUCED IN 2022(Nazarbayev University, Graduate School of Public Policy, 2023-11-05) Kunbulatova, Diana; Mussabekov, Aidar; Kanatbayev, ArkhatThe frequent instability of world commodity prices and recurrent crises have forced Kazakhstan to restructure its economy and move away from the extraction and export of raw materials. These occurrences prompted Kazakhstan to undertake an exploration of potential strategies that would optimize economic outcomes, therefore introducing preferential lending programs. Existing theories and concepts emphasize the significance of government incentives promoting the automotive industry for technological, economic, and industrial advancements. Study findings analyzed the efficacy and practices of various automotive industries in different countries. Our theoretical framework illustrates how preferential lending, influenced by international experiences and government policies, contributes to the development of the automotive sector in Kazakhstan. Paradoxically, limited research on the concentration of the car loan market and the effective implementation of preferential lending programs in Kazakhstan seems to exist. In this regard, employing a descriptive and comparative research approach through the utilization of surveys, collected from the public, stakeholders, and experts, enabled the gathering of relevant data regarding the respondents' perceptions of the goals and effectiveness of the preferential car loan program (hereinafter - the Program). Our survey revealed the need for a more precise definition of the Program's goals. The survey results showed that most of the respondents perceive the Program primarily as a tool to help citizens buy cars and support the domestic auto industry while others recognize it as harming the environment. Our project proposes recommendations to improve the efficiency and transparency of the Program. These include defining objectives, introducing digital solutions, enforcing financial controls, enhancing public awareness, preventing car price increases, incentivizing electric vehicle production, and taking a holistic approach to automotive industry development. Implementing these proposals will allow Kazakhstan to optimize the preferential car loan program and more effectively address its objectives.