Kazakhstan Reversing Productivity Stagnation : Country Economic Memorandum

After experiencing exceptional economic growth in the 2000s, Kazakhstan’s economy has slowed sharply since the global financial crisis, putting development achievements at risk. The economic slowdown has been caused by sharply lower commodity price...

Full description

Bibliographic Details
Main Author:	World Bank
Format:	Report
Language:	English
Published:	World Bank, Washington, DC 2019
Subjects:	PRODUCTIVITY GROWTH TRADE INVESTMENT GROWTH DRIVERS OIL AND GAS PRIVATE SECTOR DEVELOPMENT BUSINESS ENVIRONMENT EMPLOYMENT PUBLIC POLICY
Online Access:	http://documents.worldbank.org/curated/en/615051550479498194/Kazakhstan-Reversing-Productivity-Stagnation-Country-Economic-Memorandum http://hdl.handle.net/10986/31348

id	okr-10986-31348
recordtype	oai_dc
spelling	okr-10986-313482021-05-25T09:21:54Z Kazakhstan Reversing Productivity Stagnation : Country Economic Memorandum World Bank PRODUCTIVITY GROWTH TRADE INVESTMENT GROWTH DRIVERS OIL AND GAS PRIVATE SECTOR DEVELOPMENT BUSINESS ENVIRONMENT EMPLOYMENT PUBLIC POLICY After experiencing exceptional economic growth in the 2000s, Kazakhstan’s economy has slowed sharply since the global financial crisis, putting development achievements at risk. The economic slowdown has been caused by sharply lower commodity prices, and structural degradation of the economy. Kazakhstan’s productivity growth has steadily fallen over the past two decades. Falling within-sector productivity improvements are the driving force behind Kazakhstan’s productivity slowdown. The private sector is significantly constrained and does not exhibit many important features of healthy private sectors worldwide. Empirical evidence suggests that business entry rates are relatively low in Kazakhstan, even controlling for the structure of economy. The evidence shows that new (and small) firms are more productive than older (and larger) firms. The corrosive patterns must be corrected to revive productivity, which is essential for higher economic growth - since higher investment cannot substitute for productivity growth in the long run. The first policy imperative is to level the playing field for all firms - well-connected or otherwise. The second policy is to strengthen the rule of law and to deal more aggressively and comprehensively with corruption. Third, the governments will need to introduce structural changes in the economy to boost private investment and reduce a disproportionately large role of the state in the economy. 2019-03-06T19:39:19Z 2019-03-06T19:39:19Z 2019 Report http://documents.worldbank.org/curated/en/615051550479498194/Kazakhstan-Reversing-Productivity-Stagnation-Country-Economic-Memorandum http://hdl.handle.net/10986/31348 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Country Economic Memorandum Europe and Central Asia Kazakhstan
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	PRODUCTIVITY GROWTH TRADE INVESTMENT GROWTH DRIVERS OIL AND GAS PRIVATE SECTOR DEVELOPMENT BUSINESS ENVIRONMENT EMPLOYMENT PUBLIC POLICY
spellingShingle	PRODUCTIVITY GROWTH TRADE INVESTMENT GROWTH DRIVERS OIL AND GAS PRIVATE SECTOR DEVELOPMENT BUSINESS ENVIRONMENT EMPLOYMENT PUBLIC POLICY World Bank Kazakhstan Reversing Productivity Stagnation : Country Economic Memorandum
geographic_facet	Europe and Central Asia Kazakhstan
description	After experiencing exceptional economic growth in the 2000s, Kazakhstan’s economy has slowed sharply since the global financial crisis, putting development achievements at risk. The economic slowdown has been caused by sharply lower commodity prices, and structural degradation of the economy. Kazakhstan’s productivity growth has steadily fallen over the past two decades. Falling within-sector productivity improvements are the driving force behind Kazakhstan’s productivity slowdown. The private sector is significantly constrained and does not exhibit many important features of healthy private sectors worldwide. Empirical evidence suggests that business entry rates are relatively low in Kazakhstan, even controlling for the structure of economy. The evidence shows that new (and small) firms are more productive than older (and larger) firms. The corrosive patterns must be corrected to revive productivity, which is essential for higher economic growth - since higher investment cannot substitute for productivity growth in the long run. The first policy imperative is to level the playing field for all firms - well-connected or otherwise. The second policy is to strengthen the rule of law and to deal more aggressively and comprehensively with corruption. Third, the governments will need to introduce structural changes in the economy to boost private investment and reduce a disproportionately large role of the state in the economy.
format	Report
author	World Bank
author_facet	World Bank
author_sort	World Bank
title	Kazakhstan Reversing Productivity Stagnation : Country Economic Memorandum
title_short	Kazakhstan Reversing Productivity Stagnation : Country Economic Memorandum
title_full	Kazakhstan Reversing Productivity Stagnation : Country Economic Memorandum
title_fullStr	Kazakhstan Reversing Productivity Stagnation : Country Economic Memorandum
title_full_unstemmed	Kazakhstan Reversing Productivity Stagnation : Country Economic Memorandum
title_sort	kazakhstan reversing productivity stagnation : country economic memorandum
publisher	World Bank, Washington, DC
publishDate	2019
url	http://documents.worldbank.org/curated/en/615051550479498194/Kazakhstan-Reversing-Productivity-Stagnation-Country-Economic-Memorandum http://hdl.handle.net/10986/31348
_version_	1764474122255990784

Kazakhstan Reversing Productivity Stagnation : Country Economic Memorandum

Similar Items