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Kazakhstan’s chairmanship of the OSCE in 2010 prompted amendments to some key pieces of legislation related to democratic transition, including the laws on elections, political parties, media, and local government. Nevertheless, political reforms overall have been slow and many challenges remain. Although hard-hit by the financial crisis, the economy has been growing strongly by over 7 per cent in 2010 and 2011 and 5 per cent in 2012 driven by oil production and exports.
Kazakhstan faces a number of strategic challenges. The global economic and financial crisis highlighted its excessive dependence on primary industries and commodity exports: it is necessary to diversify the economy towards value-added industries. It is also important to reform the financial sector and ensure that it emerges from the crisis with a sustainable business and funding model. Remaining transition gaps in the country’s infrastructure, including shortages and imbalances in power and energy, and transport bottlenecks, also need to be filled.
The EBRD and Kazakhstan
EBRD will assist Kazakhstan promote economic diversification and move towards a more sustainable model of financial development.
In its support to the corporate sector, the Bank will address immediate financing needs as part of the EBRD’s crisis response, while promoting economic diversification and innovation, best business and environmental practices, and energy efficiency.
In developing the financial sector, the EBRD will work with Kazak authorities and other IFIs to help formulate a sustainable financial model. It will also work towards transforming the infrastructure sectors - pivotal to further economic diversification and longer-term sustainable growth.
Last updated 23 December 2013