Kazakhstan: Countercyclical Support
In early 2014, a long-term development strategy—Kazakhstan 2050—was launched to transform the economy into one that is diversified, private sector-driven, and developed. In response to the crisis, the government undertook a range of countercyclical measures, including finance for income-generating activities, increased infrastructure spending, and restructuring of the banking sector. The Nurly Zhol program for infrastructure development approved in April 2015 to support and stabilize economic growth and employment included anti-crisis measures for sectors facing export declines. Spending priorities covered (i) developing and modernizing infrastructure to support education, tourism, housing, utilities, transport, and logistics; (ii) developing non-oil business sectors, including manufacturing and agribusiness; and (iii) improving the business environment. To address the impact of the crisis on employment levels and vulnerable groups, the Employment Roadmap 2020 was included in the revised March 2015 budget. Target population groups included the self-employed, unemployed, part-time workers, and low-income persons, including youth, women, and the disabled. These initiatives were supported by proactive monetary, fiscal, and regulatory measures to address the significant negative external pressures on the economy.
In response to the government’s request, the Asian Development Bank (ADB) agreed to provide a loan of $1 billion from its Countercyclical Support Facility (CSF) to support the government’s planned fiscal stimulus, help stabilize the country’s economy and continue the economic growth trajectory, and foster fiscal sustainability in the medium-term. The proposed loan was designed to contribute to (i) employment creation, social services provision, and low-income household support; (ii) expansion and modernization of physical infrastructure; and (iii) inclusive private sector development.
This report validates the completion report's assessment of the program. IED overall assessment: Successful.