... the global food crisis. Worldwide, food prices are skyrocketing. Climate change is no less of a threat to food security—heat wave and prolonged drought in Europe and China, floods in Pakistan.
The external environment has a rather grave impact on Kazakhstan’s economy. Alongside difficulties with exports, the country is experiencing problems with the purchase of basic goods, primarily food. One of the main problems is the global food crisis, followed by global price increases and shortages of goods. This summer,...
... devaluation of the national currency. At the same time, Kazakhstan is facing price increases, reduced volumes of construction, industrial manufacturing and foreign trade, and a plethora of social issues. The pandemic has delivered another serious blow to the economy.
Today, Kazakhstan is going through an acute crisis of its economic model, whose foundations still include expanding mineral resource exports and developing the consumer sector domestically. Along with many post-Soviet states (Russia, Azerbaijan, and Turkmenistan) ...
... regionalism and bolster Eurasian cooperation.
As far as the EAEU interests are concerned, one should say that Iran represents serious potential for the Union’s expansion. Among the economies of the EAEU member states, observers and partners, the Iranian economy is
second
only to Russia’s. In terms of economic cooperation, Russia and Kazakhstan stand to benefit most from lowering tariff barriers. In addition, the project is of particular interest to Armenia, which is the only EAEU member that has a land border with Iran—currently under a partial blockade. Armenia could thus be used ...
... some positive developments underlined by the index. For instance, Kazakhstan grew significantly in the ranking for health and primary education, higher education and training, technological readiness, and market size.
Dutch Disease
Since the 2000s, the Kazakhstan economy indicates typical signs of the Dutch disease (
Akhmetov 2017
, IMF 2013, OECD 2016). The Dutch disease can be measured by considering the following symptoms: (i) faster growth in prices of non-tradable goods compared to tradable; (ii) the lagging ...
... officially employed, while the rest are engaged in the shadow sector. Widespread corruption and the active role of the state in the economy hinder the development of private business. Most big business owners either have connections to the state or accumulated ... ... infrastructure, customs and technical restrictions, as well as a high level of corruption. For example, railway freight transit across Kazakhstan in 2018 only
slightly exceeded
17 million tonnes, which is a fraction of the volume carried along the Trans-Siberian ...
... SMEs to bring technology transfers to Uzbekistan. This development is mirrored in the recent creation of a new
US$ 500 million Kazakhstan-China Eurasian Nurly Fund
and the
Russia-China Investment Fund
, a US$ 225 million fund denominated in RMB established ... ..., there is nothing wrong with letting the China side take the financial risk if the project is of direct benefit to the host economy. But if the
RMB denominated risk is on the Eurasian side
, and the project is to the benefit of Beijing, such as with ...
... international economic cooperation across its economy, paying due regard to its national interests. Effective implementation of reforms contributed to the creation of a new type of institutional environment, which combines stringent management with an open economy. As Kazakhstan’s president noted at the signing ceremony, the country's economic policy has long aimed at creating an open economy by removing barriers to regional integration and by promoting open collaboration.
Over the past 25 years the Republic ...
