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OECD Integrity Scan of Kazakhstan

Preventing Corruption for a Competitive Economy

image of OECD Integrity Scan of Kazakhstan

This report looks at how to curb corruption and build a more competitive economy in the Republic of Kazakhstan by assessing four crucial factors: governance, prevention, detection, and prosecution and recovery. In its analysis, it draws on good international practices as well as OECD instruments and tools in 15 policy areas: regulatory governance, competition policy, public financial management, development co-operation, public sector integrity, public procurement, tax administration and transparency, export credits, lobbying, whistleblower protection, business sector integrity, criminalising bribery, civil society, and media. The report provides recommendations for improving Kazakhstan’s laws and policies as well as effectively implementing them in each of these areas.

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Competition policy in Kazakhstan: promoting efficient and sound markets

It is widely accepted that more competition drives productivity and innovation, key factors that contribute to macroeconomic growth. However, high levels of corruption can undermine competition by creating entry barriers into lucrative markets. Ultimately, corruption replaces a virtuous circle of competition and growth with a system that rewards inefficient and sometimes outright criminal behaviour. This chapter assesses the role of status of competition policy in the Republic of Kazakhstan, analysing the country’s competition framework underpinned by the “Law on Competition” adopted in 2008 against OECD best practice. It explores issues related to restrictive agreements and concerted practices, dominance and monopolisation and concentration control. It also discusses actions taken by Kazakhstan’s competition authority KREMZK against public actors restricting competition, as well as issues related to the institutional structure and procedural aspects of KREMZK.

English

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