Keywords: digital economy, transformation of economy, ICT, Digital Kazakhstan, economic growth
Introduction. Over the past decades, the world has been rapidly moving towards a new type of economy, where digital technologies are becoming the main tool for its formation. In modern conditions, information technologies and digital transformation are the main factor of technological changes and a condition for ensuring competitiveness, leading to the restructuring of all economic and production processes, radically increasing productivity, improving the quality and reducing the cost of goods and services.
The purpose of the article is to consider the features of digitalization of the economy of Kazakhstan as a key factor of economic development in the context of modernization.
Material and methods.To achieve this goal, such research methods were used as the analysis of literary sources and documents in order to study the problem and determine the theoretical and methodological foundations of research; concretization, induction and deduction of theoretical knowledge; abstraction, classification and systematization of theoretical and experimental data on the research problem.
Results of research.The term "digital economy" is very young. It was introduced in 1995 by the American computer scientist N. Negroponte from the Massachusetts Institute of Technology. The concept of "digital economy" gained international recognition in 2016, after the release of the World Bank report "Digital Dividends". Prior to this, other terms were used to refer to the economic relations arising from and around the use of new information and communication technologies (ICTs), including "information economy", "electronic economy", etc [1].
The digital economy is the result of the transformational effects of new general-purpose technologies in the field of information and communications. This has affected all sectors of the economy and social activities, for example, retail trade, transport, financial services, manufacturing, education, health care, and the media [2].
The whole world is embracing the idea of digital transformation.
In Kazakhstan, the State Program "Digital Kazakhstan" was adopted in 2017 [3]
The major goals of the Program have accelerated economy growth of the Republic of Kazakhstan and have upgraded the living standards, as well as have created conditions for transition on a fundamentally new pathway – future digital economy [4].
The digital economy, due to the presence of certain properties of non-material functioning, allows us to overcome the limitations that are inherent in the classical economy:
1. Material products cannot be used by several people, there is no such barrier for digital products: they can be copied and distributed to an unlimited number of people.
2. Material products are subject to wear and tear during use. Digital products do not lose their original properties, moreover, these properties can be improved in the process of joint operation or exchange.
3. Information and communication platforms allow you to avoid restrictions on the size of the area typical of ordinary retail premises, and therefore on the volume of the assortment and the number of customers served at the same time [5].
Compared to traditional markets, digital markets are formed in a relatively short period of time and are also changing rapidly. The development of the digital economy blurs the boundaries between traditional markets and digital markets themselves, since the company's competitiveness in almost any market today is largely determined by the creation and use of innovations and high technologies. The main characteristics of digital markets are:
the dynamics of development – the high speed of technological changes, which result in the transformation of the old ones markets and the emergence of new ones. The creation of market capital takes place in a relatively short period of time;
expansion and consolidation of the business. If the dominant company expands its activities and creates interconnected products and services, then this can lead to the emergence of a supersystem that is controlled by a single group of companies. The consequence may be the monopolization or oligopolization of markets;
high level of innovation activity. Scientists and lawyers associate the problem of intellectual property rights with this topic. Intellectual property rights and trade secrets are often used to make it difficult for potential participants to access the technologies used by the dominant companies. A system of strong intellectual property protection can harm consumers in the long run and serve as an obstacle to the development of the digital economy;
the key role of digital platforms. There is no single well-established definition of a digital platform yet. Legally, it is fixed only in the legislation of France . When it comes to the collection and circulation of user information, a key risk is the desire of digital platform owners to concentrate user data arrays not so much to improve the quality of their services, but to create obstacles for competitors entering the market. In other words - to limit competition and oust competitors from the market [6].
Recognition of the importance of the role of the digital economy is the annual increase in its share in the GDP of states by almost 20%, in developed countries this figure is on average 7%. In 2010, the Boston Consulting Group estimated the size of digitalization at $ 2.3 trillion for the group of 20 countries, or about 4.1% of their GDP. With continued growth rates, in 10-15 years, the share of such an economy in world GDP will reach, according to various forecasts, 30-40%.
In developing countries, the ICT sector accounts for about 1% of the workforce and creates a relatively small number of jobs directly, but the number of people employed in other sectors that are supported by high technology will increase (4.9 jobs per 1 in the ICT sector) .
State programs and strategies for the development and promotion of digital technologies and / or digitalization of national economies and industrial sectors have been developed and implemented in dozens of different countries of the world, as well as at the interstate level. So, only in the EU countries, according to official data of the European Commission as of March 2017, there are more than 30 national and regional initiatives on digitising industry. According to this information, the following programmes and initiatives are being implemented at the national level:
- Austria — OesterreichIndustrie 4.0;
- Belgium — Made different — Factories of the future;
- Czech Republic — Průmysl 4.0;
- Germany-Industrie 4.0;
- Denmark — Manufacturing Academy of Denmark (MADE) •
- Spain-IndustriaConectada 4.0;
- France-Alliance pour l'Industrie du Futur/Nouvelle France Industrielle;
- Hungary — IPAR4. 0 National Technology Initiative;
- Italy-Industria 4.0 and FabbricaIntelligente;
- Luxembourg-Digital For Industry Luxembourg;
- Netherlands-Smart Industry;
- Slovakia-Smart Industry;
- Portugal-Indústria 4.0;
- Sweden-Smart Industry [7].
Today, the economy of Kazakhstan as a whole is experiencing a relatively stable period, but further growth is impossible without accelerating the pace of digitalization of key industries, such as industrial production, retail trade, agriculture and transport. Such conclusions are contained in the joint study "Kazakhstan’s macroeconomic outlook & new investment horizons in digitalization", conducted by the Sovereign Wealth Fund «Samruk-Kazyna» and the international company The Boston Consulting Group.
In terms of the involvement level in the digital economy, Kazakhstan is generally on an equal footing with Russia, the United Arab Emirates, Argentina and Chile, with an index of 0.72 (UNO and BCG data for 2016), exceeding the global average (0.49). Also, according to the BCG e-intensity - the broadband Internet access penetration rate - among Kazakhstani companies is 45%, which is comparable to the UAE (53%) and Malaysia (38%)
Recall that the" Digital " leading countries today are Norway, Sweden and Switzerland. The top 10 includes the US, UK, Denmark, Finland, Singapore, South Korea and Hong Kong [8]
Digital transformation is one of the main goals of modern state. The Republic of Kazakhstan also pays a lot of attention to this area. In 2017, the state program "Digital Kazakhstan" was adopted.
The program consists of five key areas: