Kazakhstan and the World Bank

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Kazakhstan's location on the world map.

Kazakhstan joined the World Bank in 1992 after it had gained independence from the in 1991. Kazakhstan has one of the fastest growing economies of all, and as a result had its classification changed from a lower-middle income state to and upper-middle income state in 2006.[1] Because of this, Kazakhstan has begun to rely less on international financing as it had in previous decades; however, Kazakhstan still takes out loans from the world bank, primarily relating to the countries environmental issues.[2]

History

Loss of water in the Aral Sea has left boats stranded in a newly formed desert.

Upon leaving the Soviet Union, Kazakhstan showed impressive growth due to its governments willingness to accept

Kok-Aral Dam which raised the water levels by 4m.[5] Along with projects to restore the Aral Sea, early on in Kazakhstan's reemergence post-Soviet Union, the World Bank also invested in infrastructure projects. World Bank investments in infrastructure in Kazakhstan were primarily loans given to supplement ongoing projects such as the construction of an electricity grid and thousands of Kilometers of planned roads. [6]

Current World Bank Loan Efforts

IBRD

Logo of the World Bank

Currently the branch of the World Bank which provides the most funds to Kazakhstan is the

USD to infrastructure, developmental, and environmental projects.[7] The most recent major project that has been funded by the IBRD was a 1 billion dollar loan given for programmatic development policy financing.[8]
The goal of this major project, contradictory to the World Banks primary goal of environmental reform in Kazakhstan, is to help Kazakhstan reorient its economy so that it is less reliant on the Oil Industry. The loan, which was approved in 2015, is currently being repaid by Kazakhstan.

IFC

The International Finance Corporation has also had major involvement in Kazakhstan's development efforts. It has directly invested in 26 projects worth over 1 billion dollars, and has been an adviser on 5 projects totaling nearly 10 million dollars. Most recent investment from the IFC have been to financial institutions with the goal of providing support for small enterprise in remote parts of Kazakhstan.[9] Some recent projects have also targeted Agribusiness, in order to increase the countries food production and decrease its reliance on foreign imports.[10]

MIGA

Global financial crisis. Both of these loans aimed to allow the ATF Bank to diversify its portfolio to include more small and medium enterprises.[11]

Reception

Overall trends for the economy in Kazakhstan indicate that World Bank efforts to help the development of Kazakhstan have been a net positive for the country. This is reflected in the rising

Carbon dioxide emission in the country have rapidly increased since the year 2000.[12]

References

  1. ^ "Overview". World Bank. Retrieved 2019-12-03.
  2. ^ "World Bank and Kazakhstan: 25 Years of Partnership". World Bank. Retrieved 2019-12-03.
  3. ISSN 0040-781X
    . Retrieved 2019-12-03.
  4. ^ "Reclaiming the Aral Sea". Scientific American. Retrieved 2019-12-03.
  5. ^ "World Bank and Kazakhstan: 25 Years of Partnership". World Bank. Retrieved 2019-12-03.
  6. ^ "Projects". World Bank. Retrieved 2019-12-03.
  7. ^ "WBG Finances - Country Details - Kazakhstan". financesapp.worldbank.org. Retrieved 2019-12-03.
  8. ^ "Kazakhstan Programmatic Development Policy Financing". World Bank. Retrieved 2019-12-03.
  9. ^ "WBG Finances - IFC Summary". financesapp.worldbank.org. Archived from the original on 2018-12-16. Retrieved 2019-12-03.
  10. ^ "Disclosure". disclosures.ifc.org. Retrieved 2019-12-03.
  11. ^ "ATF Bank JSC | Multilateral Investment Guarantee Agency | World Bank Group". www.miga.org. Retrieved 2019-12-03.
  12. ^ a b "Kazakhstan | Data". data.worldbank.org. Retrieved 2019-12-03.
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