Научная статья на тему 'KEY METHODS OF POVERTY REDUCTION: EMPLOYMENT PROGRAMS FOR OLDER PERSONS IN KAZAKHSTAN'

KEY METHODS OF POVERTY REDUCTION: EMPLOYMENT PROGRAMS FOR OLDER PERSONS IN KAZAKHSTAN Текст научной статьи по специальности «Экономика и бизнес»

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Sciences of Europe
Область наук
Ключевые слова
POVERTY ALLEVIATION / POVERTY REDUCTION / KEY METHODS OF POVERTY REDUCTION / OLDER PERSONS / ELDERLY PEOPLE / OLDER PEOPLE

Аннотация научной статьи по экономике и бизнесу, автор научной работы — Izekenova Assel, Rakhmatullina A., Izekenova A.

The fight against poverty has been going on for many years. Quite impressive results have been achieved, but there is still more to be done in developing countries. The past pandemic has exposed many weak points, the consequences of which will still be felt for the next five years, according to the forecasts of world institutions. UN World bank programs are focused on the socially vulnerable population, including the older people. The paper reveals the conceptual framework of the difference between poverty reduction and alleviation the main dimensions and poverty measures. The research focuses on tools of poverty reduction for older people as well. In the main part of the text, an analysis on the existing social protection system and employment programs for the pre-retirement and retirement age persons in Kazakhstan was made. The analysis covers a period of 20 years. The results obtained allow us to assess the current situation in the poverty reduction for the elderly in terms of what measures are being taken in Kazakhstan.

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Текст научной работы на тему «KEY METHODS OF POVERTY REDUCTION: EMPLOYMENT PROGRAMS FOR OLDER PERSONS IN KAZAKHSTAN»

ECONOMIC SCIENCES

КЛЮЧЕВЫЕ МЕТОДЫ СОКРАЩЕНИЯ БЕДНОСТИ: ПРОГРАММЫ ЗАНЯТОСТИ ДЛЯ ПОЖИЛЫХ ЛЮДЕЙ В КАЗАХСТАНЕ

Изекенова А.К.

Университет Международного Бизнеса им. К. Сагадиева Др, доцент, Алматы, Казахстан Рахматуллина А. Т.

Университет Международного Бизнеса им. К. Сагадиева PhD студент, Алматы, Казахстан Изекенова А.К.

Казахский Национальный Медицинский Университет им. С. Асфендиярова

Др, доцент, Алматы, Казахстан

KEY METHODS OF POVERTY REDUCTION: EMPLOYMENT PROGRAMS FOR OLDER

PERSONS IN KAZAKHSTAN

Izekenova A.

Kenzhegali Sagadiyev University of International Business Dr, Associate professor, Almaty, Kazakhstan Rakhmatullina A.

Kenzhegali Sagadiyev University of International Business PhD student, Almaty, Kazakhstan Izekenova A.

Asfendiyarov Kazakh National Medical University Dr, Associate professor, Almaty, Kazakhstan DOI: 10.5281/zenodo.7298603

АННОТАЦИЯ

Борьба с бедностью ведется уже много лет. Были достигнуты весьма впечатляющие результаты, но в развивающихся странах еще многое предстоит сделать. Прошедшая пандемия выявила множество слабых мест, последствия которых, по прогнозам мировых институтов, будут ощущаться еще ближайшие пять лет. Программы Всемирного банка ООН ориентированы на социально незащищенное население, в том числе пожилых людей.

В статье раскрываются концептуальные рамки различия между сокращением и борьбой с бедностью, основные измерения и меры бедности. Основное внимание в исследовании уделяется инструментам сокращения бедности для пожилых людей. В основной части текста проведен анализ существующей системы социальной защиты и программ занятости лиц предпенсионного и пенсионного возраста в Казахстане. Анализ охватывает период в 20 лет. Полученные результаты позволяют оценить текущую ситуацию по программам сокращения бедности пожилых людей, на предмет мер принимающихся в Казахстане в ответ на прошедшую пандемию.

ABSTRACT

The fight against poverty has been going on for many years. Quite impressive results have been achieved, but there is still more to be done in developing countries. The past pandemic has exposed many weak points, the consequences of which will still be felt for the next five years, according to the forecasts of world institutions. UN World bank programs are focused on the socially vulnerable population, including the older people.

The paper reveals the conceptual framework of the difference between poverty reduction and alleviation the main dimensions and poverty measures. The research focuses on tools of poverty reduction for older people as well. In the main part of the text, an analysis on the existing social protection system and employment programs for the pre-retirement and retirement age persons in Kazakhstan was made. The analysis covers a period of 20 years. The results obtained allow us to assess the current situation in the poverty reduction for the elderly in terms of what measures are being taken in Kazakhstan.

Ключевые слова: Борьба с бедностью, сокращение бедности, ключевые методы сокращения бедности, пожилые люди, старые люди.

Keywords: Poverty alleviation, poverty reduction, key methods of poverty reduction, older persons, elderly people, older people.

Introduction

More than a billion people at this historical moment are people over 60 years old and unfortunately most of poor elderly people having no satisfactory living conditions live in developing countries. [1]

Although the world community and states managed to reduce the level of extreme poverty from 35% in 1990 to 10% in 2015 the global pandemic and its economic and social consequences may increase the level of poverty. (World Bank, 2022) This is especially true for the elderly, who during the pandemic experienced quite tangible difficulties with health isolation obtaining a stable income and etc. [2] According to the UN older people are persons over 65 years at some national levels this limit varies from 58 to 68 years.

Improving the quality of people's lives is within the framework of poverty alleviation. [3] In the context of this study, it is the improvement of the quality of life of the elderly.

There are conceptual differences between poverty alleviation and poverty reduction frequently used in the literature. Poverty reduction moves an individual or household from poor to non-poor whereas poverty alleviation is a continuous process that reduces living standards and income inequality. [4]

The following approaches to poverty reduction such as economic growth economic reforms microfinance programs cash transfers are suggested by researches. [5]

At the same time, it is noted that the concept of poverty reduction is much broader than just finance and income although it has a direct and decisive role. It is

multidimensional due to various aspects of well being. [6]

At this stage, there are many measures of poverty, and the official one is based on poverty threshold. It was developed in 1960s and determined those who can be in poverty if their pre-tax income amounts are less than poverty line. [7]

Multidimensional poverty measure was developed by World Bank. Along with monetary deprivation it is including access to education and basic infrastructure. [8]

Based on the mentioned approaches the researchers reveal the following poverty reduction tools for older persons

1. Social protection and retirement benefits [9]

2. Employment opportunities including self employment in the form of small and medium entrepre-neurship [10,11]

3. Education programs for older persons (life-long learning) [12]

4. Access healthcare services [13]

In order to analyze poverty reduction tools for the elderly in the case of Kazakhstan, we will consider social security and employment programs in this article.

Main body

In the Republic of Kazakhstan, special attention has always been paid to ensuring the social protection of citizens without increasing dependency in society.

The country was one of the first in Central Asia to draw a distinction between targeted social assistance and a social risk insurance system. The following social protection systems operate on the principle of compulsory insurance:

Obligatory social insurance programs

Figure 1 - The main obligatory social programs in Kazakhstan

The social protection based on compulsory social insurance began on January 1, 2005 and for the historical period of 2022 covers more than 6 million people of the working population. While the total annual amount of social payments is approximately 331 billion KZT for 993,000 people. [14]

The State Social Insurance Fund, created specifically for this purpose, has become the main institution for accumulating social contributions. The main payers of social contributions are employers. The algorithm of relations between the main participants in the system of compulsory social insurance is as follows: The employer pays social contributions calculated on the basis of the employee's income in the State Social Insurance Fund through the State Corporation "Government for Citizens". [15] In accordance with the Law of the Re-

public of Kazakhstan "On Compulsory Social Insurance", employees, individuals who are payers of a single aggregate payment, individual entrepreneurs and persons engaged in private practice are subject to compulsory social insurance. [16] Persons of pre-retirement age also participate in the system of compulsory social insurance in case of official employment. Persons of retirement age are covered by compulsory health insurance at the expense of state transfers. [17]

The unemployed population of any age category is regulated by the Law of the Republic of Kazakhstan "On Employment of the Population". Various government programs have been implemented for 20 years to promote the employment of citizens. Such policy not only prevented the growth of unemployment, but also achieved a decrease in its level, even in times of crisis.

At the beginning of 2000th the Program for Combating Poverty and Unemployment was implemented. It was aimed at ensuring the employment of at least one member of each family in Kazakhstan and assumed the creation of new jobs. [18]

Over time new employment programs were developed. It contains a number of active policies (measures) for vocational training and retraining subsidizing jobs increasing the territorial mobility of workers supporting entrepreneurship through the issuance of grants concessional lending and training in the basics of doing business.

At the moment the project "Program to increase the income of the population until 2025" is operating, which replaced the state program for the development of productive employment and mass entrepreneurship "Enbek" for 2017 - 2021. It should be noted that in the last developed program attention was paid to the socially vulnerable segment of the population including the older people. Within the framework a special project "Silver Age" was developed in order to provide employment for unemployed people of pre-retirement age. The essence of the project is that the employment center will subsidize part of the salary of a person of preretirement age at the expense of the budget. The monthly amount of wage subsidies is 50% of the salary, but not more than 30 MCI, including taxes, mandatory social contributions, and compensation for unused vacation and banking services, excluding payments for environmental allowances. [18]

The participation in the Silver Age project is up to 12 months. After the completion, the employer hires a person of pre-retirement age on a permanent basis. It should not be harmful and dangerous working conditions.

Also, along with this, the Active Longevity program until 2025 has been developed for the elderly. The creation of active longevity centers are financed by local municipalities. The centers help older people to maintain their health, involving them in public life. Yoga classes Nordic walking and dancing are held free of charge. Pensioners are provided with medical psychological and legal consultations as well as they are taught IT and smart literacy foreign languages. The centers organize field events visits to cultural sites hold themed concerts and events.

In general the priorities of the healthy aging policy for Kazakhstan were determined. After all the formation of a society of active, healthy and dignified longevity involves actions in the following areas:

- Health: healthy lifestyle prevention and treatment of diseases rehabilitation and prevention of complications after illnesses.

- Integration (inclusion): ensuring the feasible participation of older people of any age up to the very late one in various spheres of society social economic cultural spiritual political etc. and at various levels from the family to the national level.

- Improving the social security system and planning measures to strengthen its adequacy equity and sustainability.

- Improving the system of providing social services.

- Strengthening intergenerational harmony and cooperation, based on the historical and cultural traditions of the country and taking into account the ongoing changes in the country and the world.

- Individual development: the opportunity to do what you love, while maintaining interest in life and satisfaction with its quality until its completion.

- Education throughout life.

- Ensuring the rights of the elderly and preventing ageism.

Conclusion

The literature review with selected keywords on the conceptual framework for poverty reduction was carried out. Along with economic growth, the studies advised to pay attention to the instruments of poverty reduction. Not all of them are suitable for older people. The article analyzed the existing measures to reduce poverty, taking into account the past pandemic. The main provisions of social protection institutions in Kazakhstan were explained. There are three main social obligatory insurance systems in Kazakhstan, such as social health and pension systems. The experience of using employment programs for the older people for was analyzed. Longevity programs are also quite successfully implemented and working.

Funding

This research has been funded by the Science Committee of the Ministry of Science and Higher Education of the Republic of Kazakhstan (Grant No. AP09058488)

References

1. The official website of World bank https://blogs.worldbank.org/opendata/pandemic-prices-and-poverty

2. Laborde, D., Martin, W., Vos, R., 2020. Poverty and food insecurity could grow dramatically as COVID-19 spreads. IFPRI Blog. Available at https://www.ifpri.org/blog/poverty-and-food-insecurity-could-grow-dramatically-covid-19-spreads

3. Rewilak, J., 2013. Finance is good for the poor but it depends where you live. Journal of Banking & Finance, Volume 37(5), 1451-1459. http://dx.doi.org/10.1016/jjbankfin2012.04.022

4. Adongo, J., & Deen-Swarray, M., 2006. Poverty alleviation in rural Namibia through improved access to financial services. Ausspannplatz, Windhoek, Namibia: Namibian Economic Policy Research Unit.

5. Ayoo, C., 2021. Poverty Reduction Strategies in Developing Countries. In P. de Salvo, & M. V. Pineiro (Eds.), Rural Development - Education, Sustainability, Multifunctionality. IntechOpen. https://doi.org/10.5772/intechopen.101472

6. Singh PK, Chudasama H., 2020. Evaluating poverty alleviation strategies in a developing country. PLoS 0ne.15(1):e0227176. DOI: 10.1371/jour-nal.pone.0227176

7. Gordon M. Fisher, 1992. The Development and History of the Poverty Thresholds Social Security Bulletin l Vol. 55, No. 4 l

8. Multidimensional Poverty Measure (4th edition, circa 2018), World Bank, Washington,

DC. 2022. https://www.worldbank.org/en/topic/povert y/brief/multidimensional-poverty-measure

9. Aguila E, López-Ortega M, Gutiérrez Robledo LM, 2018. Non-contributory pension programs and frailty of older adults: Evidence from Mexico. PLoS ONE 13(11): e0206792. https://doi.org/10.1371/jour-nal.pone.0206792

10. Aneel G. Karnani, 2011. Reducing poverty through Employment. Fighting Poverty Together: Rethinking Strategies for Business, Governments, and Civil Society to Reduce Poverty New York: Palgrave Macmillan Downloaded from http://www.mitpress-journals.org/doi/pdf/10.1162/INOV_a_00071 by guest on 5 September 2022

11. Custer, Jessica, and Enright Sara, 2019. "Reducing Poverty Through Employment Toolkit." Report. BSR, San Francisco.

12. Flores-Flores O, Bell R, Reynolds R, Bernabé-Ortiz A, 2018. Older adults with disability in extreme poverty in Peru: How is their access to health care?

PLoS ONE 13(12): e0208441.

https://doi.org/10.1371/journal.pone.0208441

13. Zhai, S., Yuan, S. & Dong, Q., 2021. The impact of health insurance on poverty among rural older adults: evidence from nine counties of western China. Int J Equity Health 20, 47. https://doi.org/10.1186/s12939-021-01379-5

14. The official website of State Social Insurance Fund https://gfss.kz/en/

15. The official website of State Corporation of Government for Citizens https://gov4c.kz/en/

16. The Law of the Republic of Kazakhstan dated 25 April 2003 No. 405. Abolished by the Law of the Republic of Kazakhstan dated 26.12.2019 No. 286-VI (shall be enforced from 01.01.2020). https://adilet.zan.kz/eng/docs/Z030000405_

17. The official website of State Health Insurance Fund https://fms.kz/en/

18. The official website of state organizations https://www.gov.kz/memleket/entities/enbek/pro-jects/details/272?directionId= 188&lang=ru

ЭФФЕКТИВНОСТЬ ИСПОЛЬЗОВАНИЯ ОБОРОТНОГО КАПИТАЛА - КАК ГЛАВНОЕ УСЛОВИЕ УСПЕШНОЙ ДЕЯТЕЛЬНОСТИ ПРЕДПРИЯТИЯ

Абузьярова Ж.

магистр экономических наук, Атырауский университет им. Х. Досмухамедова

Атырау, Казахстан ORCID 0000-0002-2067-6046

EFFICIENCY OF USE OF WORKING CAPITAL - AS THE MAIN CONDITION FOR SUCCESSFUL

ACTIVITIES OF THE ENTERPRISE

Abuzyarova Zh.

Master of Economic Sciences Atyrau University named after Khalel Dosmukhamedov

Atyrau, Kazakhstan ORCID 0000-0002-2067-6046 DOI: 10.5281/zenodo.7298612

АННОТАЦИЯ

Оборотные активы являются одной из составных частей имущества предприятия. Состояние и эффективность их использования - одно из главных условий успешной деятельности предприятия. Инфляция, неплатежи и другие кризисные явления вынуждают компании изменять свою политику по отношению к оборотным активам, искать новые источники пополнения, изучать проблему эффективности их использования.

ABSTRACT

Current assets are one of the components of the property of the enterprise. The condition and efficiency of their use is one of the main conditions for the successful operation of the enterprise. Inflation, non-payments and other crisis phenomena are forcing companies to change their policy in relation to current assets, look for new sources of replenishment, and study the problem of their efficient use.

Ключевые слова: предприятие, оборотные средства, производственные фонды, ресурсы, оборотные фонды, кругооборот фондов.

Keywords: enterprise, working capital, production assets, resources, working capital, circulation of funds.

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Introduction

One of the conditions for the continuity of production is the constant renewal of its material foundation -the means of production. In turn, this predetermines the continuity of the movement of the means of production

themselves, which occurs in the form of their circulation.

In its turnover, current assets consistently take on a monetary, productive and commodity form, which corresponds to their division into production assets and circulation funds.

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