Digital modernization of Kazakhstan’s economy in the context of global trends

Abstract

An academic interest in the topic of digital economy is caused by the ever increasing digital technology possibilities as a new production factor. In digital production, added value is obtained as a result of information procession using digital technology, the final products of which are new products and services. Digital economy contributes to the rethinking of existing economic relations and formation of new pure digital economy sectors as the basis for a new information economy. In this paper, we analyze theoretical aspects of the evolution of the «digital economy» concept; examine various scientific and expert opinions and views on current issues. The authors’ approach to the definition of «digital economy» concept follows from the economic theory of «productive forces and production relations,» and is based on the premise of «new production relations». This paper critically rethinks the state of digitalization in Kazakhstan, the implementation of the Digital Kazakhstan Program, which really showed the impact of the 2019-2020 coronavirus pandemic on digitalization, especially within healthcare, education, and public administration. The results of the study suggest that at present, digital knowledge and digital literacy skills are becoming an urgent need for most citizens to improve their efficiency of work and the employee qualification. A comparative analysis of the digital economy’s development level across leading and developing countries has shown a number of significant factors that hinder digitalization in Kazakhstan, such as the lack of a fullfledged digital infrastructure (IT capacity, limited technological capabilities, etc.).As a result of the study, we have determined a lag in both implementation of digital communication technologies and development of digital business in Kazakhstan. Simulation results show that the effective digital economy development in Kazakhstan requires ensuring a positive dynamics of such key digital growth indicators, as the availability of digital communication technologies and the volumes of digital business, which have a positive correlation with the development of digital literacy, and the level of e-government. Mathematical methods we used in writing this paper have allowed us to develop a predictive model of the digital economy development in Kazakhstan in the medium term. We have made specific conclusions and recommendations for the development of the digital economy in Kazakhstan for the near future.

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