UPDATING THE METHODS OF STATE SUPPORT FOR KAZAKHSTAN’S AGRARIAN MARKET UNDER THE CONDITIONS OF CUSTOMS UNION

Abstract

The work considers the dynamics and problems of Kazakhstan’s agrarian market advance under the conditions of Customs Union. The main conditions to achieve sustainable development of agricultural output production are: internal support for agrarian production, international integration strengthening in the AIC sphere, innovations and information infrastructure advance, interstate integration, outlets diversification, development of optimal transport routes. The burning issues of this period are the problems of interrelations among states under the conditions of Customs Union development, creation of common free market zone and possible risks of joining the WTO. When joining the WTO and common free market zone, each state anticipates substantial economic benefits, however, there are arising certain risks for agriculture advance to which Kazakhstan’s agrarian sector is very vulnerable. Prerequisites to the risks are natural constrains for farm crops cultivation, raw material orientation, general technical and technological lagging behind, minor integration into world economy, underdeveloped production and social infrastructure. The paper investigates the experience with subsides in the agriculture of developing countries. It provides some recommendations to improve subsidizing a country when it joins the WTO.