Building a buy kazakh system: lessons from the U.S.

The U.S. has followed a protectionist path for nearly a century, thanks to the Buy American Act-a law that channels public procurement toward American-made goods. In Kazakhstan, the idea of “buying local” is gaining momentum, especially in the context of supporting small businesses and reducing import dependency. But is it possible to create a similar system here?

Passed in 1933, the Buy American Act requires U.S. federal agencies to prioritize American-made products in their annual $600+ billion public procurement. Over time, it evolved from a patriotic slogan into a powerful economic tool that:

• ⁠ ⁠supports domestic manufacturing,
• ⁠ ⁠protects jobs,
• ⁠ ⁠and even boosts demand for U.S. government bonds (since many federal contracts and stablecoins are backed by Treasury securities).

Violations trigger public outrage, and enforcement is digital, institutionalized, and free from manual interference.

Kazakhstan doesn’t have an equivalent law yet, but public discussion is already underway:

• ⁠ ⁠Industry associations and the National Chamber of Entrepreneurs Atameken often raise the need to prioritize local products in tenders.
• ⁠ ⁠Some sectors (pharma, construction materials, IT) have introduced local content quotas and trust points.
• ⁠ ⁠There is a national producer registry maintained by QazIndustry-but it’s not widely used in procurement.

So far, Buy Kazakh is just a concept. There’s no law, no platform, and no enforcement.

What Could Kazakhstan Do Right Now?

1.⁠ ⁠Launch a Pilot Sectoral Program – Buy Kazakh

Start small, with one or two sectors with strong local presence – like food processing, textiles, or pharmaceuticals.

Key elements:

• ⁠ ⁠mandatory verification of origin,
• ⁠ ⁠digital producer profiles,
• ⁠ ⁠procurement bonuses for local companies.

2.⁠ ⁠Create a Trust-Based Producer Rating

A public platform showing product origin, tax history, government feedback, and customer complaints.

3.⁠ ⁠Automate Local Content Verification

Integrate zakup.gov.kz with tax, customs, and QazIndustry databases.

This would allow the system to automatically check how much of a product is truly made in Kazakhstan.

4.⁠ ⁠Maintain a Public Exception List

Like in the U.S., if a government agency chooses a foreign supplier, the decision must be officially approved and publicly justified.

The difference between the U.S. and Kazakhstan is not just legal – it’s institutional.

In the U.S.:

• ⁠ ⁠Independent bodies like the GAO and Inspector Generalenforce the law.
• ⁠ ⁠Exceptions are public and challengeable.
• ⁠ ⁠Any violation may spark a media investigation.

In Kazakhstan:

• ⁠ ⁠Tenders are often won by connected companies, even if their “local” status is only on paper.
• ⁠ ⁠Certificates of origin can be bought.
• ⁠ ⁠Supplier checks are often superficial – or skipped entirely.
• ⁠ ⁠There are no real consequences for faking local origin.

Buy American vs a Potential Buy Kazakh

What Needs to Be Done?

1.⁠ ⁠Adopt a law prioritizing local producers—with clear criteria, procedures, and penalties.

2.⁠ ⁠Launch a Buy Kazakh digital platform, integrated with procurement and national producer data.

3.⁠ ⁠Establish citizen oversight via business associations, journalists, and independent experts.

4.⁠ ⁠Build a digital verification tool for checking localization using customs and tax records.

5.⁠ ⁠Make reputation a competitive asset – participating companies should gain not only procurement access, but also media exposure, PR support, and inclusion in government programs.

Buy Kazakh isn’t just a patriotic slogan – it’s an economic and institutional challenge.

The U.S. experience shows that with clear rules and public oversight, such systems can work, even in the face of corporate lobbying.

For Kazakhstan, this is a chance to:

• ⁠ ⁠strengthen domestic industries,
• ⁠ ⁠reduce dependency on imports,
• ⁠ ⁠and build public trust in the national economy.

But it will require political will, digital infrastructure, and public accountability.

Without them, the idea risks becoming just another formality – or worse, a loophole.