Regional Development : Lessons from International Experience Applicable for Kazakhstan
The first concerns the objective of regional development. International experience and the vast literature on economic geography suggest that as Kazakhstan transforms itself from a middle income country to a high income country, the spatial distrib...
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| Format: | Policy Note |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2011/08/16791329/regional-development-lessons-international-experience-applicable-kazakhstan http://hdl.handle.net/10986/19452 |
| Summary: | The first concerns the objective of
regional development. International experience and the vast
literature on economic geography suggest that as Kazakhstan
transforms itself from a middle income country to a high
income country, the spatial distribution of economic
activity will continue to be uneven. Growth will be
concentrated in a few leading cities and regions, as firms
take advantage of agglomeration economies and workers
migrate seeking higher wages. The second finding concerns
the instruments of regional policy. Much of the discussion
of regional policies focuses on the use of
geographically-targeted subsidies or financing aimed at
encouraging investment in lagging regions. But the World
Bank's experience shows that this emphasis is too
narrow. The most important policies that affect the growth
of a region may not be those that are geographically
targeted. The third finding concerns the design of regional
development financing mechanisms. While regional development
grants play, at best, an ancillary role in the economic
development of lagging regions, they can be an important
source of financing. Finally, the World Bank has learned
that Municipal Development Funds (MDFs) may require reforms
at the local level. Local governments vary in their capacity
to prepare 'bankable' projects. |
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