EC[ON]OMY

1+1=3: A New KPI for Government Programs – Synergy

Over the past decade, Kazakhstan has launched several major government programs aimed at developing various economic sectors and improving people’s quality of life.

As we can see, many government programs were shut down before achieving their goals. Despite allocating over 20 trillion KZT the expected impact was not realized.

Why Government Programs Fail:

•  Weak Key Performance Indicators (KPIs) and poor execution;

•  Programs often lacked focus on high-value industries;

•  Frequent changes and inconsistent implementation reduced efficiency;

•  Targets were either unrealistic or too easy to achieve, distorting program evaluations;

•  Weak monitoring and analysis systems led to poor performance tracking.

Solution: Rethinking Government Programs Through Synergy

With Kazakhstan facing rising budget deficits, we need a smarter approach to economic development. Traditional funding of isolated projects is expensive and often ineffective. Instead, the “1+1=3” synergy concept should be a key principle in future programs—where one solution addresses multiple problems and creates additional economic benefits.

Examples of Synergy in Action

1. Waste-to-Energy Plants as Multi-Functional Infrastructure

◦ Kazakhstan generates over 5 million tons of household waste annually, but less than 20% is recycled.

◦ Instead of accumulating waste in landfills, we can build waste-to-energy plants that:

▪ Produce electricity and heat;

▪ Convert waste byproducts into construction materials(e.g., road bricks);

▪ Use heat for district heating and snow melting in winter.

2. Legalizing Tinted Windows and VIP License Plates as a Revenue Source

◦ Instead of bans, the government can introduce paid permitsfor tinted car windows.

◦ VIP license plates can be sold through auctions, generating additional income.

3. Combining Agriculture and Renewable Energy

◦ Kazakhstan has vast fertile lands, but farmers struggle with water and electricity shortages.

◦ Inspired by Germany’s model, we can install solar and wind power facilities on farms, creating self-sustaining agricultural hubs.

4. Recycling Water from Public Baths and Pools for Car Washes

◦ Instead of wasting used water, we can filter and reuse it for car washes, reducing water consumption.

5. Creating Unified Transport Hubs

◦ Today, airports, railway stations, and bus terminals in Kazakhstan’s major cities are far apart, increasing costs and inconvenience.

◦ The solution? Multimodal transport hubs—integrating airports, train stations, and bus terminals into onefacility.

◦ This model is already successful in cities like Frankfurt, Beijing, and Dubai.

Conclusion: A Smarter Way to Develop Kazakhstan’s Economy

Kazakhstan needs innovative solutions that stimulate economic growth without excessive government spending. The synergy principle is not just about saving money, but about creating self-sustaining ecosystems where one solution benefits multiple industries.

Key Principles for Future Government Programs:

✅ Multi-functionality – Every project should solve multiple problems at once.

✅ Revenue Generation – Instead of bans, turn high-demand services into legal revenue streams.

✅ Sustainability – Prioritize renewable resources and waste recycling.

✅ Public-Private Partnerships (PPP) – Involve businesses in infrastructure development.

A synergistic approach will not only improve the effectiveness of government programs but also optimize budget spending and enhance people’s quality of life.

 
 

 
Prepared by: Yerlan Karimov, independent expert, specifically for www.economyKZ.org

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