A joint project of the OECD LEED Programme and the OECD DAF Central Asia Competitiveness Initiative
Within the framework of the OECD Eurasia Competitiveness Programme
This project examines how policies can support the integration of small and medium-sized enterprises (SMEs) into global value chains through creating and exploiting linkages between SMEs and Foreign Direct Investors (FDI). It involves assessments of current conditions and opportunities in three regions of Kazakhstan and makes recommendations for policy actions at national and local levels. It also supports the government and its partners in developing a monitoring and evaluation strategy for policies and programmes aimed at attracting and embedding FDI.
The work is based on analysis of statistics as well as discussions with key stakeholders and is produced in the context of lessons learned in other countries in analogous situations.
The objectives of linkage strategies at the regional level are:
The fragmentation of global supply chains is an opportunity for SMEs to integrate and thus capture positive spillovers from the transfer of technology, skills and know-how. FDI-SME linkage programmes are public policies which enable SMEs to make best use of the opportunities. In implementing such programmes it is important that there is coordination with both regional development and FDI promotion strategies. To develop linkages, the region and its institutions need to understand which sectors and types of investment they are looking for. FDI-SME linkages form part of FDI aftercare and therefore any strategy needs to work in cooperation with individuals and institutions involved in this.
Development of linkages requires coherence in three areas, and the analysis and suggestions for action are broken down in this way:
The review was developed in three main stages:
A local diagnostic report - setting out information for three selected regions in Kazakhstan on FDI and SME activities and on existing programmes to support FDI-SME linkages.
A seminar - presenting international experience in developing FDI-SME linkage strategies.
A study visit - organised to each of the three regions with a team including the OECD Secretariat and international experts.