1. Project name: START UP YOUR FUTURE Team name: Freakonomists Country: Kazakhstan School: Nazarbayev University Mentor: Dr. Karine Yenokyan

2. Experience and Discover Youth unemployment (YU) in Kazakhstan Statistical evidence: 2011-2012 youth unemployment within 4-7% (2 age groups 15-24 and 15-28). Source: http://www.stat.kz/DIGITAL/STAT_TRUD/Pages/trud.aspx http://www.stat.kz/DIGITAL/STAT_TRUD/Pages/trud.aspx Percentages are less than 10%, but the future of the country depends on the youth, who will later build their future contributions to the economy on the basis of their first experience  then youth unemployment seems to be the problem in fact Relatively low percentages may be the result of statistical distortion: Unemployment is calculated on the basis of only those registered officially (not registered are not covered) Students who want to work are not registered, as their main employment is studying. Young discouraged job-seekers may be prone to work not in their professional field, thus, they are not counted as well (such jobs often demand less skills; promote further inadequate/unstable employment and leave fewer chances to work in the original professional field). Affected by YU parties: students, recent graduates, young people without work experience, national welfare

3. Experience and Discover Brain drain is also a part of the problem While employers seek qualified employees young and promising graduates are leaving the country for better perspectives. According to statistics more specialists (with higher education) are leaving the country than arriving in. Among those many leaving country are young graduates, who encountered the consequences of unemployment in the country. Hence, as more and more young graduates are lost, the less is a new base of specialists which should replace the older generation of specialists. Agency of Statistics of Kazakhstan. Cited in http://rus.azattyq.org/content /migration-shots-nurymbetov- statistican/24584251.html Overall: Brain drain + weak educational preparation programmes (lack of application/practice) + state passiveness and employers’ “aggressive” selection process + corruption A future generation of specialists building and supporting Kazakhstan’s economy is underdeveloped and at risk =

4. Experience and Discover Causes (reasons) of youth unemployment: Lack of motivation “Unlucky” choice of occupational field On the side of youth Rigid educational system (providing mostly theoretical knowledge; not reflecting the demand of the labor market) + Generally, problematic curriculum and faculty Lack of subsidies on the professional development of young specialists and more practice/internships for graduates Problem of corruption (tendering, hiring process corruption) Lack of incentives to start own business; lack of support for young entrepreneurs On the side of government Demand on “unrealistic” background for young employees (employers need qualified and practically knowledgeable specialists, which are rare and almost none among recently graduated youth). Requirement of experience On the side of employers

5. Problem Explained The official statistics do not show real situation with youth unemployment As a result, significant amount of human capital is wasted

6. Suggested Solution Start up The early stage of starting up business when the entrepreneur moves from idea stage to implementing it. A person with idea embodies his/her project usually with the help of investor. Examples: Amazon Twitter Google Facebook

7. Problems at the Moment Barriers People with ideas and investors are not connected No state assistance and incentives Skepticism No proper funding

8. What to do? 1) Government assistance (tax exemptions) 2) Special website (eg. kickstarter.com) Is start-up feasible? YES! Exampes: Hackday, Astana Innovations

9. Results Potential outcome Experience of work and idea/project implementation Being owner of private business In case of success, provide potential workplace for others Timeline and # people reached The timeline and number of people targeted will mainly depend on the assistance of government Nevertheless, the successful implementation of the legislative framework for the project will require 1-2 years. The project will be embodied firstly in urban sector, thereafter moving to rural areas as well.

10. Planned Results and Outcome Incentives from the state will lead to: The share of youth employment in the economy will increase The negative effect of brain drain: more of the talented young specialists will stay in the economy Development of small- and medium business sector As a result, the improvement of national welfare is expected.