NUR-SULTAN, December 9, 2021 – The World Bank’s Board of Executive Directors approved today a $400 million loan to Kazakhstan to support its transition to a more competitive market economy and for a more sustainable post-pandemic recovery.
In line with the government’s Kazakhstan 2050 strategy, Transition to Green Economy 2050, and the National Plan for Development 2025, this Development Policy Financing (DPF) loan supports policy and institutional changes aimed at creating a more vibrant private sector, a more accountable public sector, and a more sustainable economic transition.
The DPF supports government-initiated reforms in competition policy, public procurement and anti-corruption, and supports a more efficient enabling environment for the digital economy and the financial sector. To help get the country onto a more sustainable growth path, the DPF also supports “green” policy initiatives, including in renewable energy, the emission trading scheme, and environmental protection.
“We are glad to step up our support to Kazakhstan at a critical juncture, as the country gradually transitions from a state-led and carbon-intensive economy toward a more sustainable and green growth path, driven by a competitive private sector,” said Jean-Francois Marteau, World Bank Country Manager for Kazakhstan. “This financing also supports recent initiatives to help make public institutions more transparent, efficient, and accountable to strengthen public trust.”
Before the COVID-19 pandemic, Kazakhstan’s economy was already experiencing slowing growth rates and sluggish productivity growth. While Kazakhstan is recovering from the worst contraction in over two decades, the pandemic-induced crisis also presents an opportunity to rethink and course-correct the country’s development strategy.
The Government’s reform program, supported by the World Bank, will have a positive impact on people’s lives. Improved public procurement and better competition policies, as well as better functioning of financial markets and access to digital telecommunications will attract more private sector participation.
The reforms supported by the DPF will help achieve better energy efficiency, reduce greenhouse gas emissions, and promote the use of renewable energy sources, particularly through private investment. More accountable and transparent public institutions will also help open fiscal space for social spending that can benefit the welfare of Kazakhstan’s citizens.
Since Kazakhstan joined the World Bank Group in 1992, support has totaled over $8 billion, in sectors ranging from finance to social services. Next year, the World Bank and Kazakhstan will mark three decades of partnership.
