Abstract
The article focuses on modernizing the local government system in the Republic of Kazakhstan by prioritizing decentralization, enhancing governance efficiency, and fostering citizen engagement. Key challenges identified include significant financial dependence on the national budget, limited administrative autonomy, inadequate public participation, and a low level of digitalization in local governance processes. The study employs a mixed-method approach, including systematic, comparative, economic-statistical, and regression analyses, to assess the current system and adapt successful international practices from countries such as Sweden, Estonia, and Singapore to Kazakhstan’s context. The findings highlight the need to expand the financial independence of local authorities, simplify decision-making processes, and integrate advanced digital management tools to improve transparency and operational effectiveness. Recommendations include introducing e-governance platforms, public consultation mechanisms, fiscal decentralization measures, and enhanced professional development programs for local government officials. The study’s novelty lies in proposing a comprehensive reform framework tailored to Kazakhstan’s unique socio-economic conditions, informed by global best practices. These measures are anticipated to promote sustainable regional development, improve the quality of public services, and strengthen public trust in local authorities. The proposed reforms aim to establish a more adaptive, inclusive, and transparent governance system capable of addressing contemporary challenges while ensuring long-term socio-economic progress. JEL Classification: H70, H77, O18, R50.