1. Rethinking Kazakhstan’s Strategy for Growth and Development: New Policies toward Foreign Direct Investment and Supply Chain Expansion Theodore H. Moran Georgetown University

2. Eighty percent of all trade flows today take place as inter-affiliate transactions within multinational corporations or within supply chains organized by multinationals.

3. Emerging market economies that are able to use foreign direct investment to upgrade and diversify their economies grow more rapidly and enjoy greater welfare gains.

4. Comparative evidence shows that FDI is attracted to areas that offer a skilled labor force, technicians, and managers.

5. A fast shortcut is for investment promotion authorities to offer help in creating public-private partnerships between investors and host vocational training programs.

6. Comparative evidence also shows that local content requirements are an impediment to attracting FDI.

7. A more effective strategy is to reward investors who designate a “talent scout” or “marriage broker” to search for local suppliers.

8. The host sets up data registries of indigenous firms and works with foreign investors to design certification programs to help local companies qualify as suppliers.

9. Kazakhstan should continue to improve doing business indicators, simplify FDI regulatory procedures, increase access to finance,

10. Upgrade infrastructure around industrial zones, streamline procedures for foreigners to get work visas and work permits, follow through on the investors’ court.

11. Kazakh authorities might select three priority sectors to concentrate on harnessing FDI to the creation of supply chains with local private sector and public sector Kazakh firms.

12. Within these priority sectors, the first recommendation is to shift from local personnel quotas to creation and strengthening of public-private partnerships for vocational training.

13. The second recommendation is to shift from local content mandates to rewards for foreign investors who designate talent scouts or marriage brokers who seek out local supplier firms.

14. The goal is to create three demonstration sectors in which FDI is used to create supply chains with powerful demonstration effects to help attract new investors in other sectors in the Kazakhstan economy.

15. Thank you. I am eager to hear your comments and reactions!