Regions and Countries

	Table of Contents
p. 9 of 20 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies A. Agriculture B. Infrastructure C. Social Infrastructure and Environment D. Governance Dimensions of ADB Operations E. Gender Dimensions of ADB Operations F. Private Sector Operations 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 : III. Sector Strategies

---

A. Agriculture

23. Agriculture is important for achieving sustainable economic growth and reducing rural poverty. With the support of ADB’s Agriculture Sector Program Loan approved in 1995, the Government has enacted major agriculture reforms at the national level, which included improving land tenure, privatizing state-owned farms, reducing state interventions in markets, and dismantling state-owned monopoly trading companies. However, further efforts are needed to deepen agriculture reform and revive the agriculture sector. The major sector issues are (i) the lack of private ownership of agricultural land, (ii) weak farm and water resources management, and (iii) the lack of commercially oriented agricultural financial institutions, which constrains agricultural production and discourages new investment in agriculture.

24. The Government's overall objective for the agriculture sector is to encourage the development of a competitive market-based agriculture sector. To achieve this goal, the Government has set six tasks: (i) improving land legislation, (ii) providing farmers with financial support, (iii) upgrading agricultural machinery and equipment, (iv) assisting to establish farmers’ associations, (v) preserving the gene pool of plants and animals, and, (vi) accelerating construction of rural infrastructure. A new draft Land Law, presently under review by Parliament, does not authorize private ownership of agricultural land, although it provides for use rights being granted to private individuals and legal entities for 49 years.

25. ADB’s agriculture sector strategy emphasizes the need for private ownership of land, farm restructuring, strengthening of institutional and business management capacities at the local levels, and reforming agricultural finance to serve the privatized farms and agribusiness enterprises. The strategy focuses ADB investment on water resources management, farm systems development, and establishment of commercially oriented rural credit institutions. In addition, ADB will provide support for rural income and employment generation through policy reform, training, credit, and market development, primarily in household microenterprises, small rural businesses and agro-processing enterprises.

Back III. Sector Strategies	Next B. Infrastructure