OECD Investment Policy Reviews: Kazakhstan 2017
This review, which was prepared in response to Kazakhstan's 2012 request to adhere to the Declaration on International Investment and Multinational Enterprises (OECD Declaration), analyses the general framework for investment as well as most recent reforms, and shows where further efforts are necessary. It assesses Kazakhstan’s ability to comply with the principles of openness, transparency and non-discrimination and its policy convergence with the OECD Declaration, including responsible business conduct practices. Capitalising on the OECD Policy Framework for Investment, this review studies other policy areas that are of key relevance to investment such as SME policy, infrastructure development, trade policy as well as anti-corruption efforts. Since the first review of Kazakhstan, in 2012, the authorities have made strides in opening the country to international investment and in improving the policy framework for investment as part of their efforts to diversify the economy to avoid continued overreliance on oil. Additional policy measures are nevertheless required to create a stimulating environment for investment if the government wants to fulfil its goal of economic diversification and sustainable development.
The policy framework for the balancing of investor protection and the government's power to regulate
This chapter looks at the policy framework for investment protection at the domestic and international level. A key focus is on the balancing between investor protection and the government’s power to regulate. The chapter analyses protection provisions available to all persons in the general laws and those available only to investors in specific legislation, such as certain provisions under the Entrepreneurial Code. The issue of regulatory stability is addressed separately, both for contracts and investments generally and for investments in the subsurface sector in particular. The chapter also provides an overview of dispute resolution mechanisms, such as the Kazakh court system, arbitration, and mediation, and analyses recent reform efforts. Finally, the chapter analyses Kazakhstan’s investment treaties and dispute settlement under these treaties, identifying options for their review.