DEVELOPMENT OF AGRARIAN RELATIONS BETWEEN THE STATES OF CENTRAL ASIA AND THE EUROPEAN UNION

РАЗВИТИЕ АГРАРНЫХ ОТНОШЕНИЙ МЕЖДУ ГОСУДАРСТВАМИ ЦЕНТРАЛЬНОЙ АЗИИ И ЕВРОПЕЙСКИМ СОЮЗОМ

Притула Евгения Евгеньевна

магистр экономических наук, преподаватель Костанайский инженерно-экономический университет им. М. Дулатова,

Казахстан, г. Костанай

ABSTRACT

In the conditions of increasing interdependence of the economies of the states of Central Asian and the European Union, the development of agrarian relations is of special importance. Agrarian business in Kazakhstan and CA countries is becoming more and more profitable and important sector for the economy. The agricultural sector is traditionally of great importance for Kazakhstan - it is the largest sphere of employment for our population and one of the main sources of economic diversification in the future. Today Kazakhstan has the best conditions for investment.

АННОТАЦИЯ

В условиях растущей взаимозависимости экономик государств Центральной Азии и Европейского Союза развитие аграрных отношений приобретает особое значение. Аграрный бизнес в Казахстане и странах Центральной Азии становится все более прибыльным и важным сектором экономики. Сельскохозяйственный сектор традиционно имеет большое значение для Казахстана - это крупнейшая сфера занятости нашего населения и один из основных источников диверсификации экономики в будущем. Сегодня в Казахстане созданы наилучшие условия для инвестирования.

Keywords: agriculture; agricultural business; economics; investment.

Ключевые слова: сельское хозяйство; аграрный бизнес; экономика; инвестирование.

The agrarian sector is of great importance for the Central Asian countries - it is the largest sphere of employment of the population. Agrarian business is becoming more and more profitable and important sector for Central Asian economies.

When shaping the EU's strategy towards the CA countries, not only the internal development of the states in the region itself, but also the geopolitical situation is taken into account.

Relations between the European Union and the states of Central Asia were developing before the collapse of the USSR. Central Asia was a historical bridge between Europe and Asia, located at the junction of two continents. It was through this region that the routes of the Great Silk Road from China and India to Europe passed. With the increasing interdependence of the economies of the countries of the world system, the European Union began to actively pursue its regional policy outside Europe, including in Central Asia.

The dynamics of the development of relations between the states of Central Asia and the European Union can be divided into two stages:

• the period when the concept of the EU's relations with the states of Central Asia was being formed and the main areas of cooperation were defined;
• period of establishment of a strategic partnership level of relations between the EU and CA, which manifested itself in the activation of the European Union in the Central Asian region.

In the 1990s, the development of EU-Central Asia relations was facilitated by the interest of both sides in mutual cooperation.

Relations between the EU and the states of Central Asia in the early 1990s were shaped by the new geopolitical situation resulting from the collapse of the bipolar system of international relations. The location of Central Asia in a geopolitically important macro-region like the Heartland provided great opportunities for the development of cooperation with other leading economic centers. Among them, the European Union has taken a special place due to its structural peculiarities. The development of relations between the EU and the post-Soviet states was facilitated primarily by the mutual interest of the parties.

After the collapse of the USSR, the foreign policy of the newly independent states was aimed at establishing equal and mutually beneficial relations with all states of the world. For their part, the countries of the European Union were also interested in cooperation with the states of Central Asia, based primarily on economic considerations. The EU's economic interests in Central Asia were based on the possibility of access to the necessary energy resources of the states of Central Asia and the development of trade and economic relations. In order to develop trade and economic relations with the states of Central Asia, it was necessary to prepare a political and legal basis for cooperation.

In the course of the research, organizational methods were used to establish connections and interdependencies between phenomena of different types. This group includes methods used in virtually all sciences: analysis, synthesis, extrapolation and selection. These methods are aimed at the theoretical study of material, literary sources (study and analysis of literature and documents, generalization). Among the most important sources are published government documents (laws, decrees, resolutions of the highest state authorities), local government documents, newspaper and magazine materials and other materials related to the subject of the study.

The agricultural sector for Kazakhstan is traditionally of great importance - it is the largest sphere of employment of our population and one of the main sources of economic diversification in the future [1].

Our country has one of the best conditions in the world for the development of agriculture. The area of agricultural land in Kazakhstan is 215 million hectares. This is more than 4% of the world resources. The diversity of natural and climatic zones and fertile soil allow us to be competitive in a variety of areas - in the production of wheat, rice, oil seeds and fodder crops, meat and dairy production. Kazakhstan is among the 10 largest grain exporters in the world. Annually up to 6 million tons of wheat is exported to the countries of Central Asia, and up to 2 million tons to the countries of the European Union. In general, the geography of Kazakhstan's exports includes 70 countries.

Food security is one of the main topics on the global development agenda. According to the UN forecast, by 2025 the world's population will exceed 8 billion people, and by 2050 it may reach 9 billion people. In the next 15 years, the number of middle class consumers will grow by 3 billion to 4.8 billion people, 90% of the growth will fall on India and China.

Agrarian business in Kazakhstan and CA countries is becoming more and more profitable and important sector for the economy. Purposeful work is conducted in order to fully utilize the available potential [2].

A large-scale Program "Agribusiness" is being implemented, under which more than $16 billion will be invested in the agro-food sector. In the last 4 years alone, more than $5 billion have been invested in the agro-food sector in Kazakhstan. At the same time, today only a small share of the huge potential that our country possesses is used.

The agricultural sector has not yet become a driver of economic growth and diversification of our economy. Imports of products have increased by 45% over the last 5 years and amount to more than $4 billion a year. Half of the consumed cheese and poultry meat, more than 40% of sausages and butter are imported. All of these enterprises can produce domestically. For those who are ready to invest, there is a guaranteed sales market.

There is also great potential for the development of the processing sector. For example, today only 1% of the total volume of grain is used for pasta production. Kazakhstan can significantly expand the production and export of its own branded products.

The RK has huge opportunities and reserves for the development of the agricultural sector. In recent years, only less than 1% of the annual volume of foreign investment has gone into agriculture. In order to utilize our potential, the Government is implementing a number of measures in the following areas.

First is formation of a favorable investment climate. Over the past 10 years, Kazakhstan has attracted more than $200 billion of foreign investment. The formation of a favorable investment climate has been and remains a top priority.

According to experts and investors from the European Union countries directly working in our country, today Kazakhstan has the best investment conditions in the region. Investors in priority sectors are exempted from corporate income tax and land tax for 10 years, property tax - up to 8 years. Investors are guaranteed stability of tax legislation. Moreover, the state has decided to compensate up to 30% of capital expenditures after putting the facilities into operation. Our state is also aimed at the formation of an open labor market. Investors have the opportunity to attract foreign labor for the entire period of project implementation and one year after commissioning of the facility without any quotas and permits. All these advantages fully apply to the agro-industrial sector.

Second is development of processing and attraction of TNCs. Our main goal is to develop agricultural production as a base for a highly efficient, diversified and export-oriented processing sector. In the meat and dairy sectors, we have set a task to occupy a significant niche in the domestic and export markets as a supplier of high-quality and environmentally-friendly products within 3 years in strategic partnership with the world's leading companies.

Third is development of science, innovations and personnel training. The competitiveness of the industry depends entirely on how effective the technologies of rational use of natural resources will be. We should carefully study the experience of EU countries.

Today, in developed countries, farms are assigned to scientific research institutes that conduct monitoring, research and develop practical recommendations. This gives the farmer great advantages for increasing productivity and introducing new technologies. Now the work on improvement of scientific and educational infrastructure is underway in the Republic of Kazakhstan. Large agrarian universities of the country will be united to create a single scientific and educational center. The tasks of the Center will be to solve the problems of development of applied science, personnel training and introduction of modern technologies. The state intends to attract the best international partners in order to create a leading regional research and educational center in the agrarian sphere in Kazakhstan in the next 5 years.

Foreign investors make a practical contribution to the development of agricultural production in Kazakhstan. For example, "Philip Morris" company has established an "Agribusiness Center" in Almaty oblast, where farmers are trained in new technologies of crop cultivation, drip irrigation, greenhouse farming, and fertilizer application. Such projects will receive the widest support from the state. The President of Kazakhstan noted that the government needs to work out this issue in detail and begin its implementation.

Fourth is implementation of institutional reforms. The implementation of large-scale institutional reforms is aimed at further improvement of the investment climate in Kazakhstan [3].

The volume of preferential lending for sowing and harvesting works will be brought up to one and a half trillion tenge, for investment projects - up to 800 million tenge. The volume of preferential leasing of agricultural machinery will be increased to 450 billion tenge annually. This will allow bringing the rate of renewal of agricultural machinery up to 10% per year. These measures will contribute to the doubling of gross output.

Agrarian reforms need major reforms aimed at increasing productivity through the introduction of new technologies, rational use of land and other resources, and improving the effectiveness of benefits and subsidies.

The Government will have to pay special attention to the transition from the raw material orientation of the agro- industrial complex to the development of processing of agricultural products.

The President of Kazakhstan K.-J. Tokayev suggests "reconsider the application of a single land tax, because in fact there are many unresolved issues here. The main condition is that it should not only simplify administrative, but also take into account the efficiency of land use" [4].

These reforms include: building a modern state apparatus; ensuring the rule of law; industrialisation and the development of small and medium-sized businesses; the formation of a Nation of One Future; and the creation of a transparent and accountable state.

Effective implementation of the proposed transformations will allow forming a qualitatively new institutional environment and making Kazakhstan even more attractive for investments.

References:

1. Denison M. The EU and Central Asia: Commercializing the Energy Relation- ship [электронный ресурс] — Режим доступа. — URL: http://EU-Central Asia Monitoring. -Working Paper 02. July 2019. P. 2. (дата обращения 12.06.2024)
2. The EU and Central Asia: Strategy for a New Partnership  [электронный ресурс] — Режим доступа. — URL: http://eeas.europa.eu/central_asia/docs/2020_strategy_eu_centralasia_ru.pdf (дата обращения 15.06.2024)
3. Speech by the President of Kazakhstan K-.J. Tokayev at the 34th plenary meeting of the Council of Foreign Investors. - Astana, June 9, 2022.
4. Speech by the President of Kazakhstan K.-J. Tokayev at the enlarged meeting of the Government. - Astana, February 7, 2024.