Kazakhstan, 2017–2021—Promoting Economic Diversification, Inclusive Development, and Sustainable Growth

Abstract

Kazakhstan surged to upper middle-income status in 2006 and has since become a major economic power in Central Asia. However, the decline in hydrocarbon prices in 2014 revealed economic vulnerabilities stemming from the country’s high dependence on commodity export revenues, as well as institutional and governance constraints. Kazakhstan faces three main challenges to achieving diversified, inclusive, and sustainable growth.1 First, economic diversification efforts are hampered by shortcomings in the finance sector and a weak enabling environment for developing the private sector. Second, spatial and social inequalities are exacerbated by limited access to infrastructure and quality services outside the main cities and the need to improve the management and efficiency of public service delivery. Third, the growth model remains unfriendly to the environment and the economy is vulnerable to the impacts of climate change.