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Lowering role of state in economy critical to ensuring sustained and inclusive growth in Kazakhstan, says IMF

May 2, 2014

Bolstering human capital and institutions, and lowering the role of the state in the economy are critical to ensuring sustained and inclusive growth in Kazakhstan, said in the statement of the IMF mission, led by Hossein Samiei, which visited Almaty and Astana April 21-30 to conduct the 2014 Article IV consultations, the press service of the National Bank of Kazakhstan reported.

"Successful diversification, which the authorities appropriately consider as a primary long-term goal requires addressing key structural weaknesses, in particular regarding human capital and institutions – areas where the country has lagged behind successful emerging market economies," the mission noted.

Robust GDP growth in the previous years has contributed to increasing per capita income and reducing income inequality. However, the relationship between job creation and growth has been weak, particularly since the onset of the global crisis, says the statement. 

To promote private-sector led non-oil growth and job creation, the government's long-term development programs (as envisaged in the Kazakhstan-2050 Vision) need to focus on broad-based reforms, notably in the areas of starting business, enforcing contracts, and protecting investors, while avoiding top-down policies of picking winners. In the context of gradually reducing the role of the state in the economy, the authorities' recently announced plan to accelerate the public IPO program of large SOEs is welcome.

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Source: AKIpress News Agency (Kyrgyz Republic)

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