Nur-Sultan, December 9, 2021 – The Board of Directors of the World Bank today approved 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 strategy for Kazakhstan 2050, the transition to a green economy 2050 and the national development plan 2025, this Development Policy Financing (DPF) loan supports policy and institutional changes aimed at creating a private sector more dynamic, 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 environment for the digital economy and financial sector. To help put the country on a more sustainable growth trajectory, the DPF also supports “green” policy initiatives, including in renewable energy, the emissions trading system, and environmental protection.
“We are pleased to step up our support to Kazakhstan at a critical time as the country gradually transitions from a state-led, carbon-intensive economy to a more sustainable and green growth path, driven by a competitive private sector,” said Jean-François Marteau, World Bank Country Director for Kazakhstan. “This funding also supports recent initiatives to make public institutions more transparent, efficient and accountable in order to build public trust.”
Prior to the COVID-19 pandemic, Kazakhstan’s economy was already experiencing slowing growth rates and low productivity growth. As Kazakhstan recovers from the worst contraction in more than two decades, the crisis caused by the pandemic also offers an opportunity to rethink and correct the trajectory of 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 financial markets and access to digital telecommunications will attract greater private sector participation.
The reforms supported by the DPF will make it possible to achieve greater energy efficiency, reduce greenhouse gas emissions and promote the use of renewable energy sources, in particular through private investment. More accountable and transparent public institutions will also help create fiscal space for social spending that can benefit the well-being of Kazakhstan’s citizens.
Since Kazakhstan joined the World Bank Group in 1992, assistance has totaled more than $8 billion, in sectors ranging from finance to social services. Next year, the World Bank and Kazakhstan will mark three decades of partnership.