Corruption risks of investors in the Republic of Kazakhstan: agro-industrial sector

Abstract

Corruption remains a serious social problem in modern society, which damages the country's investment potential. Kazakhstan's agricultural sector, a key part of the economy, attracts both local and foreign investors. However, the industry faces significant corruption risks in state-business relations. To identify such risks, a specific sociological assessment of legal regulation was carried out - an analysis of the regulatory framework in the field of providing certain measures of state support to subjects of the agro-industrial complex. In particular, documents were examined regulating the provision of subsidies in the field of livestock farming, reimbursement of investment costs of agricultural entities, as well as in the implementation of procedures for identifying farm animals. The analysis revealed a number of legislative conflicts and vulnerabilities that contribute to the commission of corruption offenses. These factors lead officials to misuse their powers when providing government support to entrepreneurs. The study modeled how legal factors, rather than investor decisions, influence behavior considering the macro-environment. The authors conclude that corruption in agriculture harms the country's investment climate. At the same time, unscrupulous market entities can exploit corruption to gain unfair advantages over competitors. The article concludes with recommendations to improve state support for Kazakhstan's agro-industrial complex.