Unlocking Economic Growth: Kazakh Expert Emphasizes the Power of Education – Insights from The Astana Times

ASTANA – Dosym Besbai, an entrepreneur in education and medicine, believes that investing in education can greatly boost economic growth. He founded the EPG Human Capital Development Fund to drive this vision forward.

Dosym Besbai. Photo courtesy of the author/Instagram @dossymb

In a recent government meeting led by President Kassym-Jomart Tokayev, officials highlighted the need for economic diversification and attracting investments. Education quality and scientific advancement were also key topics discussed.

Besbai shared insights with The Astana Times, emphasizing that education is one of the best investments for a country. He mentioned that the return on investment in healthcare might be slightly lower than in education but still remains significant.

“For every tenge invested in education, the return can reach ten times that amount,” he explained. Investing in education increases human productivity, which leads to higher income levels. He stressed that the most valuable resource is human capital, not just natural resources.

Alternative Strategies for Growth

Besbai believes that economic growth also requires easy access to capital for businesses at low interest rates, alongside necessary institutional reforms. He encourages the government to support specific industries that genuinely need help, allowing them to grow sustainably.

“There are some projects, like a transit railway route from China to the EU, that the private sector may struggle to develop alone,” he noted.

President Tokayev acknowledged the importance of developing the Trans-Kazakhstan railway corridor, a vital connection for trade.

Besbai remarked that many domestic industries, like building materials and agriculture, could thrive with the right support, reducing the need for imports.

Tax Reform Feasibility

The government is also discussing a new Tax Code, which includes plans to increase value-added tax (VAT). However, Besbai cautions that this could negatively impact small and medium enterprises (SMEs), which are crucial for job creation.

He argues for better strategies to tackle the budget deficit without burdening SMEs, suggesting that improving economic efficiency can increase tax revenues. “We should first focus on companies that are not contributing adequately, such as those in the raw materials sector,” he added.