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World Bank Report Highlights Poverty and Inequality Challenges in Kazakhstan

The World Bank has released its Kazakhstan Poverty and Equity Assessment 2024, urging policymakers to adopt pro-poor fiscal policies, improve education quality, and enhance climate resilience to address poverty and inequality in the country. According to the report, Kazakhstan’s poverty reduction has slowed in recent years despite significant progress since the early 2000s. “Between 2006 and 2021, economic advancement significantly improved living standards and reduced poverty rates in Kazakhstan. However, economic growth has slowed since 2014, and the pace of poverty reduction has fallen. The COVID-19 pandemic exacerbated these challenges, highlighting the need for resilient and inclusive economic strategies presented in this report,” said Andrei Mikhnev, World Bank Country Manager for Kazakhstan. Kazakhstan’s economy has grown exponentially since 2006, with an average annual growth rate of 4.7 percent. This growth helped lift 5.9 million people out of poverty, reducing the poverty rate from 49.5 percent to 8.5 percent. However, the report identifies three phases of Kazakhstan’s poverty reduction journey: 2006-2013: Rapid poverty decline driven by strong economic growth. 2014-2016: Reversal during the economic downturn, raising poverty rates. 2016-2021: Resumed poverty reduction but at a slower pace The report highlights that Kazakhstan’s middle-class households with a low probability of falling into poverty grew 2.5 times, reaching 67 percent of the population in 2021 compared to 26 percent in 2006. However, this expansion has stagnated since 2013 due to slower structural transformation and productivity growth. Income inequality has also increased. The Gini index, a measure of inequality (0 = perfect equality, 100 = extreme inequality), rose from 24.3 in 2015 to 26.4 in 2021, driven by faster income growth among high-income households. Although fiscal policies, such as taxation and social spending, have mitigated some inequality, the report recommends making fiscal measures more progressive and pro-poor to maximize their redistributive impact. Poverty rates in rural areas (11.4 percent) remain significantly higher than in urban centers (6.6 percent). The southern Turkistan region now accounts for a disproportionate share of the poor population. Alarmingly, poverty has become more concentrated among children and large families, with children comprising 40 percent of the poor in 2021, up from 27 percent in 2006. The report underscores the critical role of human capital investment in achieving long-term poverty reduction and growth. While access to education in Kazakhstan is nearly universal, significant disparities in quality and outcomes persist. The Human Capital Index indicates that children in Kazakhstan achieve only 53–64 percent of their productivity potential, with regional and socio-economic inequalities exacerbating the issue. Climate-related shocks present additional risks, particularly for rural and vulnerable populations. The report calls for targeted investments in infrastructure and social transfers to build resilience against these challenges. To reduce poverty and inequality, the report suggests: Enhancing fiscal policies through progressive taxation and better-targeted social transfers. Improving education quality and outcomes, particularly for disadvantaged groups. Building resilience to climate shocks by investing in infrastructure and providing targeted support to low-income households. The report concludes that sustained policy reforms will be essential for Kazakhstan to maintain economic progress,...

Trade WTO World Bank International Cooperation Economic Reforms IMF

Uzbekistan Aims to Join WTO by 2026

Uzbekistan is intensifying efforts to finalize its accession to the World Trade Organization (WTO), aiming for completion by 2026. At the ninth meeting of the Working Group on Accession, held December 5-6, a delegation led by Deputy Prime Minister Jamshid Khodjayev reaffirmed the country’s commitment to this timeline. WTO members expressed support for Uzbekistan’s high-level political engagement, and encouraged continued alignment of its trade regime with international standards. Khodjayev emphasized that WTO accession is not merely a technical procedure but a critical driver of internal reforms. “This goal demonstrates the inevitability of Uzbekistan's integration into the global trading system. In 2025, efforts will focus on completing negotiations and harmonizing legislation with WTO norms,” Khodjayev stated. The Uzbek delegation included Azizbek Urunov, the president's special representative on WTO issues, Deputy Economy Minister Ahadbek Khaidarov, and representatives from various agencies. Some officials joined the discussions virtually from Tashkent. Chief Negotiator Azizbek Urunov reported that Uzbekistan has concluded bilateral negotiations with nine additional WTO members, bringing the total to 22. This milestone underscores significant progress in the accession process. WTO Deputy Director General Xiangchen Zhang commended Uzbekistan for its ambitious reforms, including Presidential Decree DP-85, which aims to align national legislation with WTO norms. These efforts align with President Shavkat Mirziyoyev’s strategy to accelerate economic modernization. Chairman of the Working Group, Ambassador Yoon Seong-Dok of South Korea, also noted substantial progress at both bilateral and multilateral levels. He highlighted Uzbekistan’s productive cooperation with international organizations such as the IMF, World Bank, and WTO. The Working Group reviewed Uzbekistan’s draft report outlining commitments as a prospective WTO member and examined recent legislative changes. Since May 2024, Uzbekistan has enacted 192 legal acts to comply with WTO standards. Ambassador Yoon stressed the importance of sustained efforts in 2025 to meet the next milestones. “The coming seven to eight months will be crucial to achieve the goal of completing the process by 2026,” he said. The Times of Central Asia previously reported that Uzbekistan has secured China's agreement for its WTO accession. Joining the organization is a cornerstone of Uzbekistan’s broader economic reforms aimed at integrating the nation into the global trading system.

Economic Reforms Government Economic Growth GDP World Bank

World Bank Chief Economist Owes a Bottle of Wine to Kyrgyzstan’s Cabinet Chief

During a conversation with Hugh Riddell, head of the World Bank’s office in Kyrgyzstan, Akylbek Japarov, Chairman of the Cabinet of Ministers, shared an anecdote about a wager made with the World Bank’s chief economist. “In 2022, at a World Bank session in Washington, your chief economist and I bet that Kyrgyzstan’s economic growth over the next 3-4 years would remain stable and exceed 7%. He doubted this was possible and was ready to wager a bottle of fine wine,” Japarov recounted at a recent event focused on Kyrgyzstan’s development. Japarov highlighted the latest economic figures to underscore his point: GDP growth for the first 11 months of 2024 stands at an impressive 9%. Confident in his position, Japarov announced his intention to claim his winnings. The anecdote reflects broader optimism about Kyrgyzstan’s trajectory. According to data presented by World Bank experts during discussions with the presidential administration, 89% of Kyrgyz citizens believe the country is moving in the right direction regarding political, social, and economic reforms. The World Bank is actively monitoring socio-economic trends in Kyrgyzstan through its “Listening to the Kyrgyz Republic” project. This initiative conducts monthly panel surveys of 1,500 households across all regions, using telephone interviews to track citizens’ well-being and gather insights into national development trends.

World Bank Foreign Investment Agricultural Produce Agriculture

World Bank Allocates $5 Million to Create Agro-Logistics Center in Tajikistan

The World Bank has launched a project to establish an agro-logistics center in Tajikistan’s Sughd Special Economic Zone. The initiative, which began in 2021, aims to strengthen Tajikistan’s agricultural sector by increasing farm productivity and adding value to agricultural products. The center will serve as a critical element of efforts to enhance agricultural infrastructure and efficiency. The $5 million project, fully funded by the World Bank, is part of a broader six-year program titled “Enhancing the Sustainability of the Agricultural Sector,” running from June 2021 to June 2027. This program, with a total investment of $108 million, supports sustainable agricultural development through integrated activities. Construction of the Sughd Center is set to begin in 2025, with completion and commissioning expected by the end of 2026. The Sughd facility is one of five agro-logistics centers planned across Tajikistan as part of the World Bank’s initiative. These centers aim to reduce product losses and improve efficiency by introducing international standards for post-harvest handling of fruits and vegetables. Services provided will include sorting, packing, storage, and transportation, enabling Tajik producers to access new export markets and strengthen the national economy.

Climate Change Water Water Conservation World Bank Environmental Awareness Saudi Arabia Water Security Water resources

Kazakhstan and World Bank Partner on Water Conservation at One Water Summit

A memorandum of understanding has been signed to enhance water resource management and environmental conditions, including in the North Aral Sea and its surrounding basin, between Kazakhstan’s Ministry of Water Resources and Irrigation and the World Bank. As climate change continues to significantly impact water resources in Central Asia, exacerbating water scarcity and management challenges, this agreement underscores a shared commitment to ensuring sustainable and equitable water resource management for future generations. The memorandum was formalized following a meeting between Kazakhstan’s President Kassym-Jomart Tokayev and World Bank Group President Ajay Banga during the One Water Summit in Riyadh, Saudi Arabia, on December 3. Co-organized by French President Emmanuel Macron, Tokayev, and World Bank Group President Banga, in partnership with Saudi Arabia’s Crown Prince and Prime Minister Mohammed bin Salman, the summit sought to accelerate progress toward Sustainable Development Goal 6 (clean water and sanitation) and discuss innovative solutions ahead of the 2026 UN Water Conference. During the summit, Tokayev stressed the importance of bolstering reservoir capacity, preserving glaciers, and adopting advanced irrigation systems to secure stable water access. Tokayev proposed creating a global partnership to unite research centers focused on glacier preservation. “Glaciers are integral to the global water cycle, sustaining rivers and lakes that supply water to nearly two billion people worldwide. Collaborative research and unified policies are essential to mitigate glacier loss and support water management strategies in vulnerable regions,” he said. He warned that water scarcity poses risks to food security, energy production, and industrial growth, adding that investments in water-efficient agriculture and renewable energy can enhance economic resilience while alleviating environmental pressures. “Water knows no borders; it binds communities and ecosystems,” Tokayev remarked. As Chair of the International Fund for Saving the Aral Sea, he emphasized Kazakhstan’s commitment to fostering regional cooperation and joint action. “It is vital for countries at the forefront of combating climate change to strengthen dialogue, build international partnerships, and pool resources to implement water projects. Kazakhstan is proud to join the One Water Vision coalition, uniting stakeholders to address the global water crisis and promote integrated water resource management. As part of these efforts, with United Nations support, Kazakhstan will host a Regional Climate Conference in 2026,” Tokayev concluded.

Economic Reforms International investment Green Future World Bank Green economy

World Bank Report Outlines Path to Drive Tajikistan’s Green Transition and Economic Growth

On November 7, the World Bank Group published the Tajikistan Country Climate and Development Report (CCDR), highlighting the transformative potential of climate action for Tajikistan's economy. The report suggests that addressing climate risks can drive economic renewal, create jobs, and enhance resilience against the rising frequency of extreme weather events caused by climate change. Ozan Sevimli, World Bank Group Country Manager for Tajikistan, emphasized the urgency of a strategic shift: “Tajikistan urgently needs an economic reset to tackle its numerous development challenges and the growing impacts of climate change that threaten future progress. The CCDR provides a roadmap for accelerating the transition to a green economy, supporting long-term growth.” A key finding of the report is the importance of mobilizing private-sector financing to supplement Tajikistan's limited public resources. This financing will be crucial in securing the nation’s green transition and ensuring water, food, and energy security. Despite ranking 130th globally in greenhouse gas emissions, Tajikistan is highly vulnerable to climate change impacts, notes Bahodur Sheralizoda, Chair of the Environmental Protection Committee under the Tajik government: “Although our contribution to global emissions is minimal, we are one of the most climate-vulnerable countries in the world. The CCDR advises the government to improve production efficiency, foster innovative technologies, and create green jobs to reduce our susceptibility to climate-related challenges.” The report warns that Tajikistan already faces high risks of floods, earthquakes, and landslides, with potential infrastructure and agricultural losses that could lower GDP by 5-6% by 2050. The strategic Vakhsh River Basin, which produces 90% of the country’s electricity, underscores the dual challenges of climate and development. Annual costs of land degradation are estimated at $325 million, with further increases anticipated. Additionally, air pollution remains a major health risk, accounting for 84 deaths per 100,000 people—Central Asia’s second-highest rate. A green transition could deliver substantial benefits. By 2050, reduced healthcare costs from lower air pollution, fewer road accidents, and improved road conditions could save over $3.5 billion. Investments in renewable energy, including hydro, solar, and geothermal, as well as in energy efficiency, promise new employment opportunities across sectors. The report advises the Tajik government to fast-track low-carbon development to strengthen economic growth, energy security, export potential, and job creation, all while enhancing air quality. Achieving these goals will require significant investments: Tajikistan needs around $17 billion, in addition to the $79 billion required for the government’s reform agenda from 2025 to 2050. Private sector investments, particularly in energy, industry, and agriculture, will be essential. Recognizing that the financial needs for this transformation exceed domestic resources, the report underscores the importance of external support. Tajikistan will need substantial technical and financial assistance from international bodies, climate funds, and development partners to fulfill its climate and development goals.