Turning the Tide in Turbulent Times : Leveraging Trade for Kazakhstan's Development
Kazakhstan is facing its greatest economic challenge since the global crisis. With oil prices at US$50 per barrel, the country urgently needs to adjust its economic model and find new sources of economic growth. Kazakhstan main export has been crud...
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/750981493645588464/Turning-the-tide-in-turbulent-times-leveraging-trade-for-Kazakhstans-development http://hdl.handle.net/10986/26673 |
| Summary: | Kazakhstan is facing its greatest
economic challenge since the global crisis. With oil prices
at US$50 per barrel, the country urgently needs to adjust
its economic model and find new sources of economic growth.
Kazakhstan main export has been crude oil, considered a
low-complexity mineral products, which has made the country
extremely vulnerable to shocks. For Kazakhstan to reach high
income status it will need to move up the value chain and
find new sources of growth. However, new opportunities are
arising. China's new Silk Road initiative, renewed
regional integration efforts through the Eurasian Economic
Union, CAREC and WTO accession are opening up new prospects
for Kazakhstan to integrate more successfully with the
region and the world and to position itself as a key trade
and transit corridor between Asia, Europe, and the Middle
East. While Kazakhstan outperforms its regional peers in
terms of overall business environment, it still ranks poorly
in trading across borders. Kazakhstan is embarking on an
economic transformation at a time where new global trends
are reshaping economic fundamentals. As countries in Asia
and Europe enhance their living standards, opportunity costs
will matter more than direct transport costs, resulting in
increasing opportunities to transport goods from East Asia
to Europe. |
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