Kazakhstan's reforms give it an advantage in attracting international business, says expert

For international businesses, political and institutional reforms are important not only as part of a country's domestic agenda. Kusztal believes that investors and financial institutions considering entry into a new market primarily evaluate the predictability of the rules, the consistency of decision making, the clarity of procedures, and the transparency of institutional responsibilities.

In this regard, Kazakhstan's transition from a bicameral Parliament to a new institutional model sends an important signal not only to the country's political system, but also to the business community, Kusztal says.

Speaking at a joint session of Parliament, President Kassym-Jomart Tokayev described the planned changes as the beginning of a profound transformation of Kazakhstan's system of public administration. The new Constitution and parliamentary reforms form part of a broader national development strategy aimed at improving the quality of government decision making, reducing bureaucratic barriers, enabling faster responses to economic and technological challenges, and ensuring that reforms lead to tangible improvements in people's quality of life.

For international partners, it is particularly important that Kazakhstan is implementing these changes in a consistent and well-managed manner. Such an approach reduces uncertainty, strengthens confidence in state institutions, and helps businesses view Kazakhstan as a promising market with clear and predictable rules for long term investment. Qazinform News Agency spoke with Marcin Kusztal about why this matters.

- Today Kazakhstan held the final session of its current bicameral Parliament. In many ways, this marks the end of a particular institutional stage in the country's development. From the perspective of international partners and the business community, how important is it that such transitions are predictable, gradual, and free from institutional disruption?

- For international partners, the specific institutional model a country chooses is often less important than the clarity of the transition itself. Investors do not necessarily need a system that is familiar or resembles those they have worked with elsewhere. What matters most is the confidence that the rules under which they commit capital today will remain stable and reliable in the years ahead.

If a transition is clearly communicated, implemented consistently, and avoids creating uncertainty, it reduces perceived risk. It is rarely the reform itself that causes concern. The real challenge arises when businesses cannot clearly see how the changes will be implemented in practice.

In this regard, Kazakhstan has an important advantage. Its reforms are being presented as part of a long-term development strategy rather than a response to short-term circumstances. For businesses, that kind of predictability has real value. It allows companies to plan ahead, invest with greater confidence, and build stronger relationships with both the government and local partners. President Kassym-Jomart Tokayev's consistent approach to institutional reform has also made the transition easier for international partners to understand.

- Kazakhstan is moving toward a new governance model that places greater emphasis on effective public administration, clear institutional accountability, and reducing bureaucratic barriers. In your view, how could these changes influence the way investors and the international business community perceive the country?

- Reducing bureaucracy certainly helps, but the main benefit goes beyond simply cutting the number of procedures. There is one important factor that is often underestimated outside the region: foreign companies need to know exactly who makes decisions and where the real center of responsibility lies.

In practice, the biggest challenge for businesses entering a new market is not always strict regulation. More often, the difficulty is understanding which institution is responsible, at what level decisions are made, and through what process they are reached. That lack of clarity increases costs, delays, and overall business risk.

If Kazakhstan's new institutional model makes lines of responsibility clearer, it will shorten the adjustment period for investors. For businesses, this means a faster path from negotiations to implementation. Internationally, such changes are viewed as reducing risk and making governance more predictable.

From a business perspective, this is one of Kazakhstan's key strengths. The government is working to make public administration clearer, faster, and more business friendly. For investors, that has practical significance. The more transparent the system, the easier it is to make market entry decisions and the greater the confidence in long term projects.

- President Kassym-Jomart Tokayev has set the goal of modernizing the system of public administration and strengthening the foundations of Kazakhstan's statehood. Why is it important for international partners to see not only political statements, but also a consistent institutional logic behind the reforms?

- Capital responds not to individual statements, but to consistent patterns of action. Even the strongest political declaration, on its own, is unlikely to change the decision of an investment committee. What matters is whether reforms are carried through consistently, whether they continue over time, and whether new measures align with the commitments made earlier.

International partners do not simply read speeches. They look at whether what was said last year still holds true this year. They assess whether there is a clear link between the stated objectives, the laws that have been adopted, and the decisions taken in practice.

In Kazakhstan's case, what matters is the presence of this kind of coherent approach. The reforms are linked to constitutional reform, changes to the parliamentary model, digitalization, economic modernization, and improvements in the quality of governance. This sends a positive signal to international partners: these are not isolated decisions, but part of a coherent system of reforms.

This is especially important for businesses. Companies cannot base their long-term strategies on promises alone. They need consistency, clear rules, and evidence that the government's stated direction is being translated into action. If President Tokayev's reforms continue to be embedded in institutions and administrative processes, it will strengthen confidence in Kazakhstan and make the country more predictable for international partners.

- Kazakhstan has identified digital transformation, artificial intelligence, economic modernization, and improving citizens' quality of life as key national priorities. How does the link between institutional reforms and tangible socioeconomic outcomes affect the country's long-term competitiveness?

— Long-term competitiveness depends on whether reforms reach the level where businesses actually operate. Today, digitalization and artificial intelligence are prominent priorities that many countries talk about. But the real test goes deeper. What matters is whether day-to-day practice is changing: whether decisions are made more quickly, processes become clearer, and unexplained delays become less frequent.

That is the point at which reform stops being a headline and becomes a reason to invest. When companies see that government processes are becoming faster and more transparent, they begin to view the country as a more reliable destination for long term operations.

The link between institutional reforms and citizens' quality of life is also directly relevant. Economic development cannot be separated from the well-being of society. When a government improves governance, expands digital public services, supports employment, and raises living standards, it creates a more stable domestic environment. For businesses, that kind of stability is just as important as tax policy or market access.

From this perspective, Kazakhstan's current course appears both pragmatic and forward looking. The objective is not simply political reform, but to ensure that the state functions more effectively in serving the economy, its citizens, and investors. Over the long term, this is what strengthens the country's competitiveness and makes Kazakhstan a more attractive destination for international partners.

Earlier, Qazinform News Agency reported that the new Constitution may increase value of education and science in Kazakhstan, according to Amirlan Nurgazin, a research fellow at MIND.