Kazakhstan has the potential to become an economic leader in Central Asia. Relying on oil and gas alone, however, will not produce the long-run level of growth needed to meet this potential. Reforms geared to improve the business climate, enhance competitiveness, and increase private sector participation are essential. This book examines reforms to accelerate economic diversification in the country. This involves not only modernizing and using public resources in agriculture more efficiently to increase productivity, but also transitioning of manufacturing toward high-potential exports to help the country’s industrial development and create employment opportunities. Upgrading innovation of oilfield services and improving transport and logistics are important to increase participation in the global value chains.

This book explores opportunities for diversifying modern Kazakhstan's economy, which is still heavily dependent on its natural resources, as well as looking at economic opportunities for the whole Central Asian region arising from the Chinese government's Belt and Road Initiative (BRI). The book is comprised of four parts. Part 1 explores the first main theme of the book: development of the economy based on the resource sector with the example of Kazakhstan. Part 2 examines opportunities for diversification arising from BRI: a rise of transport and communication industries alongside the new Belt and Road economic route. Part 3 explores the view from China on the perspectives of regional development, not least the economic reasons for the launch of this programme, investments and planned effects. Part 4 discusses other internal sources for diversification of the economy in Kazakhstan based on development of local industry in the oil and gas sector, small- and medium-sized enterprises and tertiary sector of the economy. This book will be of value for students, academics, policy-makers, and practitioners focused on economic development and business in the Central Asian region, as well as those who are working on the design of instruments for economic development in their own countries.

Inflation has surged to 18 percent while growth is projected to slow to 2.7 percent this year. High oil prices have strengthened fiscal and external buffers, while the revised budget increased public spending by 21⁄2 percentage points of GDP to support activity. Subsidiaries of sanctioned Russian banks have exited the domestic market and regulatory compliance is being enhanced to avoid secondary sanctions. Risks to the outlook remain tilted to the downside, as adverse global conditions could lower oil prices and raise borrowing costs, while oil exports through Russian territory remain a major source of vulnerability. Accelerated economic diversification and private sector development are needed to attain sustainable and inclusive growth.

Azerbaijan has set the course for the economy to reduce its dependence on oil by promoting new drivers of growth. By 2025, under the government’s Strategic Roads Maps, a more diversified economy should take shape led by three sectors: agriculture, tourism, and manufacturing. Bold reforms need to strengthen areas of the economy that could otherwise impede this transition, and policy makers must resolutely stay on the reform path. The core message of this publication is diversification toward non-oil sources of growth alongside efforts to reduce macroeconomic risks and the high cost of finance, make the education system responsive to the needs of the labor market, close infrastructure gaps, and help economically significant state-owned enterprises become more efficient.

Kazakhstan is a major success story in Central Asia, having experienced double-digit growth rates between 2000 and 2007. The country has made significant market-oriented reforms and large amounts of foreign investment. However, following the maxim adopted by many successful countries in Southeast Asia, 'First the economy and then politics,' political reform in Kazakhstan has lagged. The key challenge is ensuring broad-based sustainable economic development in order to avoid the 'resource curse' -- the problem of countries with abundant natural resources paradoxically lagging in development. When the global financial crisis reached Kazakhstan in 2007, additional challenges became managing problems associated with the banking and construction sectors as well as securing macroeconomic stability, in particular lowering inflation. Inspired by the examples of Malaysia, Singapore, and South Korea and on the advice of Harvard Business School's Michael Porter, the Kazakhstani government tries to promote economic diversification through an active industrial policy based on clustering and supporting companies that the government thinks will succeed. This has led to a mix of liberal and interventionist economic policies. Much of Kazakhstan's future success will depend upon whether it implements liberal or illiberal economic policies going forward. Given historical and cross-country evidence, additional government involvement in the market process may hamper Kazakhstan's economic potential. With this in mind, this Country Brief recommends the following policy directions: - Refrain from top-down diversification programs, short-term rescue programs for ailing banks and construction firms, and price controls to fight inflation. - Tighten monetary policy to curb credit growth. - Concentrate government spending on infrastructure building and human capital formation. - Separate the commercial and public functions of national industries and expose them to competition and the accountability rules of private firms. - Continue to improve business regulations. - Continue to modernize the political system and establish the rule of law. If the political decision makers in Kazakhstan recognize entrepreneurship as the market's driving force and focus on the institutional prerequisites to growth, Kazakhstan could unleash great economic potential.

Kazakhstan has embarked upon an ambitious reform agenda to realise its aspiration of becoming one of the top 30 global economies by 2050. The country’s economy and society have undergone deep transformations since independence. To sustain economic progress, overcome recent difficulties, and drive improvements in well-being to realise its aspirations, Kazakhstan will need to address a number of challenges to ensure its economy becomes more productive and diverse, and is sufficiently flexible and resilient in the face of an ever-shifting external environment. This next stage of economic transformation will require continuing reforms. This report discusses policy actions to address four key obstacles to development in Kazakhstan, identified in Volume 1 of this review. It presents in-depth analysis and recommendations to improve the economy’s resilience through diversification, to mobilise financing for development, to transform the role of the state in the economy, including through privatisation, and to improve the effectiveness of environmental regulations.

It is considered in the paper the role and the place of "the State Program of forced industrial-innovative development of the Republic of Kazakhstan for 2010-2014" in providing of diversification and enhancing competitiveness of the economy. It is given analysis and evaluation of the program implementation, its influence on development of priority economy sectors providing diversification of branch structure of the economy, forming the centers of economic growth, and ensuring of effective interaction between government and business in the development of priority economy sectors.

This book aims at shedding light on the reasons why the death rates during the pandemic were so high in Central Asia. More specifically, this book proposes analysis on why individuals did not follow the sanitary rules imposed by their respective government and on the role played by misinformation. Secondly, it also examines the impact of Sinophobia in Central Asia and the future challenges this feeling may pose on the authorities in the near future. Lastly, this book also proposes analysis of how the pandemic has contributed to show the inherent vulnerabilities of Kazakhstan and Kyrgyzstan by focusing on their immediate and future political consequences.