ASTANA – Investment in education could be a powerful catalyst for economic growth, said Dossym Besbay, an entrepreneur in education and medicine and founder of the EPG Human Capital Development Fund.
Dossym Besbay. Photo courtesy of the author/Instagram @dossymb
The expanded government meeting on Jan. 28, chaired by President Kassym-Jomart Tokayev, outlined economic diversification and attracting investments as key government priorities. Improving education quality and advancing science were also emphasized as focus areas.
Speaking to The Astana Times, Besbay said that the role of education in driving economic growth should not be underestimated.
“The most profitable investment for the country is in education—this has been well established. For comparison, we attempted to calculate the overall return on investment in healthcare: if we factor in lives saved, quality medical services provided, and a reduction in patients seeking treatment abroad, the return is slightly lower than in education. It remains remarkably high—yielding a 10-to-1 return, meaning every tenge invested generates ten in return,” said Besbay.
Education plays a key role in boosting human capital productivity, which in turn drives income growth, according to the expert.
“Therefore, the most effective way to raise future incomes is by investing in education at all levels, including pre-school, school, vocational education, higher education and science. Our most valuable asset is not natural resources – it’s human capital. We have people serving natural resources, and it should be the other way around,” said Besbay.
Alternative strategies for Kazakhstan’s economic growth
Besbay suggests that fostering economic growth requires providing businesses with access to capital at low interest rates and implementing institutional reforms.
The government should focus on supporting industries that genuinely need assistance through well-targeted measures. This approach, he suggests, would enable businesses to grow independently rather than relying on broad, untargeted support.
“The only exceptions will be those strategic projects that the private sector is unlikely to develop on its own—such as a transit railway route from China to the European Union, which could create synergies for new and existing processing industries,” said Besbay.
In transportation, Tokayev highlighted the need to accelerate the development of the Trans-Kazakhstan railway corridor, which will become a key link in the Middle Corridor.
“Nearly the entire building materials market could be covered by domestic production, while the agricultural and food sectors also have strong potential for import substitution. And it will be difficult for businesses to do it on their own,” added Besbay.
The feasibility of tax reform
The expanded government meeting also announced that Kazakhstan is set to rebalance its tax system with a new Tax Code currently under discussion in the Parliament. The government plans to increase the value-added tax (VAT) rate, emphasizing that this will be paired with broader measures to improve the tax and budget systems.
According to Besbay, there are better ways to address the budget deficit than raising tax rates. The VAT increase could place an additional burden on local small and medium enterprises (SMEs).
“SMEs should stay off-limits, since they, not large corporations, are the ones creating new jobs. The alternative is to increase the efficiency of the economy. If the economy grows, budget revenues will also increase,” said Besbay.
“Right now, it is necessary to start with the lowest-hanging fruit: these are raw materials companies under a special tax regime. Then there are marketplaces that pay nothing at all, and also ‘grey’ importers,” he added.
