Summary and Policy Recommendations

Kazakhstan has enjoyed a long period of stability and prosperity, with one of the world’s fastest growing economies over the past decade on the back of high commodity prices. The past decade is in sharp contrast with the post-independence period when the economy suffered through a total of six years of negative growth. Extensive reforms following independence finally paid off and the country was able to profit from the sharp rise in oil prices beginning in 1999. In common with other oil-producing countries, the government has created a sovereign wealth fund with the aim of enhancing competitiveness, economic diversification and sustainable development. The government is nevertheless far from achieving the long-standing goal of diversifying the economy away from natural resources to support broad-based economic development and to mitigate some of the macroeconomic volatility associated with fluctuations in global commodity prices.