Regions and Countries

	Table of Contents
p. 7 of 20 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies IV. Regional Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work Program IX. Local Cost Financing

Country Assistance Plans - Kazakhstan

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II. Country Operational Strategy

A. The COS

20. The current Country Operational Strategy (COS) for Kazakhstan was endorsed by the Board in 1996. The objectives of the COS are: (i) encouraging the transition to a market-based economy by supporting the Government’s reform agenda, encouraging institutional change, and strengthening social protection; (ii) promoting the rehabilitation of the environment; (iii) strengthening the long-term potential for sustainable growth; and (iv) encouraging the creation of a new output structure and new production capacity through private sector investment. The country’s development needs are vast, but ADB’s resources are limited. Moreover, other external aid agencies provide extensive financial and technical assistance. To maximize development impacts, ADB activities are therefore focused in the following areas: (i) management of reform at the central and local government levels; (ii) education and training; (iii) agriculture; (iv) industry; and (v) infrastructure, especially rehabilitation projects.

B. Progress in Implementation

21. Since the adoption of the COS in December 1996, ADB has approved three loans totaling $185 million and 11 TA grants amounting to $6.8 million for Kazakhstan. These loan and TA projects have contributed to the country’s social and economic development by supporting pension reform, strengthening management of water and land resources, and improving education services. However, implementation of the COS has been affected by ADB’s zero lending to the country during 1998 and 1999, which was mainly due to the lack of the country’s absorptive capacity and severe fiscal constraints caused by the Russian crisis and the fall in the world prices of oil and metals. The Government and ADB are both conscious of the importance of developing a close partnership, and are making efforts to strengthen the bilateral cooperation.

C. Poverty Partnership Agreement

22. The current COS needs updating to reflect ADB’s Poverty Reduction Strategy approved in November 1999 and the Government’s priority of fighting poverty and unemployment, and to lay the foundation for a Poverty Partnership Agreement between the Government and ADB. In close consultation with the Government and civil society, ADB will formulate a new Country Strategy and Program (CSP) in 2001 to identify priority areas for future assistance. Moreover, a TA grant will be provided to finance a poverty analysis and assist the Government in preparing a medium-term poverty reduction strategy. The TA, which will be implemented in 2001 in collaboration with the United Nations Development Programme and the World Bank and in close consultation with all stakeholders, will help formulate the new CSP. Based on the outcome of the poverty assessment and the new CSP, the Government and ADB will conclude a Partnership Agreement in the second half of 2001 to set out specific targets and action plans for poverty reduction.

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