Kazakhstan’s Developmental Journey, 1st ed. 2021
Entrenched Paradigms, Achievements, and the Challenge of Global Competitiveness

This book discusses Kazakhstan?s transitioning trajectory to a market economy since it declared its independence from the Soviet Union in 1991.. It analyses the evolution of key policy areas and sectors through the lens of policy development and implementation, and evaluates their suitability in pursuing the country?s strategic objectives.  

Topics include policy initiatives for economic development, new policy paradigms in public service delivery and infrastructure improvement, and water-energy-food (WEF) nexus thinking in governing the WEF sectors. 

The book argues that policies developed in the 1990s and 2000s have so far served the nation?s needs. Nevertheless, as Kazakhstan seeks to achieve a competitive edge worldwide, many of these policies would require adjustment, or a paradigm shift.  

Providing a unique outlook on policy and governance, this book will appeal to scholars, students, and practitioners involved with Kazakhstan and Central Asia and interested in the transformation of ex-Soviet nations, their policy, and sustainable development.   

Part 1 - Introduction

1

Anastasia Koulouri and Nikolai Mouraviev

Introduction: An overview of Kazakhstan’s development journey since 1991

 

This chapter provides a brief overview of Kazakhstan’s developmental direction since it gained its independence in 1991. The chapter highlights the details and explains the significance of the government strategies Kazakhstan 2030 and Kazakhstan 2050, which provide the framework for the country’s long-term priorities and underpin the design, development and implementation of policy in key areas (e.g. political and economic reforms, civil service and public administration) and key sectors (e.g. energy, water, agriculture, education) as well as governance tools (e.g. public-private partnerships).

The chapter shows how the edited collection contributes to the body of knowledge on Kazakhstan and in particular on the nation’s evolutionary trajectory since it became an independent country. It then emphasises the general purpose of the book, which is to analyse Kazakhstan’s developmental journey by investigating policy approaches and governance issues. Finally, it explains the selection of topics and outlines the book’s structure.

            

Part 2 - Nation-building and transitioning to a market economy

2

Donnacha Ó Beacháin   

Political evolution and nation building in Kazakhstan

 

This chapter charts Kazakhstan’s state-building trajectory since its independence in 1991. Until recently and for more than a quarter of a century, Kazakhstan’s political life has been dominated by its President Nursultan Nazarbayev. Kazakhstan’s state-building efforts have been accompanied by power struggles and ethno-nationalistic tendencies. The existence, until recently, of an all-powerful president has ensured that any emerging tensions have been managed effectively at the policy level and in the country’s relations with its neighbours and with ethnic groups. The country has now entered a post-Nazarbayev era with the election of a new president, Kassym-Jomart Tokayev, in 2019. One of the most significant challenges facing Kazakhstan is whether it can manage these tensions going forward in order to ensure socio-economic and political stability in the country. 

 

3

Roman Vakulchuk

The role of market reforms in achieving Kazakhstan’s sustainable development

 

This chapter discusses the transition of Kazakhstan to a market economy and the economic reforms that have taken place in the nation since it gained its independence in 1991. Kazakhstan has been actively promoting market reforms since its independence and is widely regarded as one of the most successful reformers in the post-Soviet space. In the 1990s, it pursued a shock therapy approach and fast liberalisation of the economy drawing on extensive support from international organisations and foreign investors. In the early 2000s, the country began the active exploration and development of its vast oil and gas reserves and became a substantial oil exporter. Using oil revenue, the government launched a number of industrial development programmes aimed at restructuring the economy away from the fossil fuel sector. Although some success has been achieved, many of these programmes have failed to achieve the set objectives. Environmental goals were not prioritised during that period and only after 2010 the country started integrating environmental concerns in its policies. The chapter investigates the suitability of economic reforms for Kazakhstan’s long-term development goals by offering a case study that elucidates climate change awareness, the impact of EXPO 2017 and the proliferation of renewable energy in the country.

 

4

Sharimerden Chikanayev

Public-private partnerships: An evolving policy paradigm

 

Public-private partnerships (PPPs) have been deployed in Kazakhstan since 2005 and as such are a relatively novel phenomenon. In the past 10 years, PPPs have been launched in the energy, healthcare and childcare sectors and transportation and urban infrastructure (e.g. toll roads, railroads, water treatment). This chapter investigates the internal and external drivers for PPP proliferation in Kazakhstan and explains the evolution of the government’s PPP policy into a paradigm. The chapter delineates the emerging PPP policy paradigm model, whose structure includes a set of simplified solutions for deployment, changing government responsibilities, indicating an increasing provision of public services privately, and the development of new institutional capacities. Further it critically appraises the underpinning governance instruments, such as the extensive government financial support provided to PPPs. Finally, it highlights the broader implications for society as the emergent PPP paradigm may mask greater government risks and rising prices for public services.

 

5

Saule Emrich-Bakenova

The organisational culture of public administration and civil service in Kazakhstan: Procedural fairness and transparency

 

This chapter examines the extent to which the rights and interests of citizens and legal entities are upheld by public administration bodies in Kazakhstan. Since Kazakhstan gained its independence in 1991, the organisational culture of the country’s public administration and civil service has been and still is oriented toward achieving outcomes, whilst citizens are viewed as consumers of public goods and services. This could also be observed in how the government reports on its activities by focusing on outcomes achieved by individual public administration agencies and the national government. These performance snapshots create the perception that the administrative bodies are transparent and are controlled by the citizens. Nonetheless, the performance reports do not provide information on how outcomes have been achieved or what happens when citizens appeal decisions that affect their rights.

This pattern of public service delivery has been evolving into a broader paradigm of public administration in which the outcome is more important than the process. The focus on outcomes creates the conditions in which the delivery of public services could become a “ticking box” exercise whilst the lack of attention to procedural fairness and transparency reduces the chances of citizens receiving appropriate consideration of their requests.

The chapter argues that the focus on outcomes and the treatment of citizens as consumers of public goods and services, effectively override the public officials’ duty to uphold procedural fairness. It further argues that the existing public administration paradigm needs to shift to ensure fairness and transparency.

 

Part 3 - The role of key sectors in transforming the nation

6

Serik Ozargaliyev

Kazakhstan’s oil and gas sector: The evolution of state regulation

 

This chapter explores the changing conditions in Kazakhstan’s oil and gas sector since the nation gained independence in 1991. It provides an overview of the privatisation of the energy sector and the entry of multinational corporations in the country’s oil and gas industry. In this context, Kazakhstan and other newly independent Central Asian nations have been constrained by exogenous and endogenous factors, such as low commodity prices, lack of adequate export pipeline infrastructure and geopolitical instability, all of which profoundly affect the levels of foreign investment in the region. The geopolitical dimension is of particular importance as global actors, such as the United States, Russia, China and certain EU countries, have been competing to gain access to the Central Asian energy resources. Further, the chapter investigates the role of the national government in regulating Kazakhstan’s oil and gas sector. In particular, it analyses the government policies, such as nationalisation and efforts to increase rent by amending existing legislation. It analyses the government’s steps to adopt a balanced approach to the development of the sector as a response to pressure from the electorate to increase state participation in this industry. In addition, the chapter examines these efforts within the context of the state’s significant dependency on a single industry and the government’s attempts to restructure the economy whilst gradually increasing the state participation in key oil and gas projects. In light of this paradox, the chapter emphasises the need for a shift in the nation’s energy policy that would enhance its energy security whilst contributing to the restructuring of its economy.

 

7

Marat Karatayev

Water-energy-food nexus thinking in Kazakhstan

 

This chapter focuses on the need for Kazakhstan to change its approach to governing the water, energy and food sectors by adopting the nexus concept. It provides an overview of the water, energy and food sectors in the country and delineates key policies and governance frameworks for each. It further identifies the drawbacks of sectoral thinking and how they are manifested in Kazakhstan. The chapter argues that the successful integration of the water-energy-food nexus conceptualisation in the governance of these sectors is contingent on effective collaborative efforts bringing together various actors, public agencies and private firms to engage in consensus-oriented decision-making. It further contends that this approach is one of the most impactful means of nexus governance enabling and facilitating higher levels of integration across sectors, institutions and scales.

 

8

Aliya Tankibayeva

Ensuring Kazakhstan’s sustainable development: The role of entrepreneurship

 

This chapter discusses the role of entrepreneurship in Kazakhstan’s long-term development. This analysis is performed within the framework set by the Kazakhstan 2050 government strategy and in light of the United Nations’ 17 Sustainable Development Goals that outline a comprehensive agenda aiming at ensuring universal, human-centered and equitable socio-economic well-being.

The chapter identifies the types, characteristics and contributions of enterprises and entrepreneurial ecosystems in Kazakhstan with particular focus on those that foster sustainable practices across various social domains. Further, the chapter analyses whether policy design and implementation aiming at supporting entrepreneurship are fit for purpose in the country’s current socio-economic conditions and the extent to which they enhance or impede the nation’s economic restructuring. The chapter argues that existing policy regarding small and medium-sized enterprises combine financial and non-financial support mechanisms within an established regulatory framework with a range of government programmes. The latter feature instruments to facilitate the entrepreneurial activities of young people and people with disabilities. In addition, there is a nascent venture capital infrastructure filling the void in access to finance for high risk and/or unconventional enterprises. The chapter identifies areas in which policy adjustments are required to ensure that entrepreneurship can fulfil its role in facilitating the nation’s long-term sustainable development.

 

9

Dennis Soltys

Growing an education policy community in Kazakhstan

 

This chapter investigates an emergent trend in Kazakhstan’s educational sector, which manifests itself in the growing impact of the pedagogical community on policy design and implementation. In 1991, at the time when Kazakhstan gained its independence, the educational policy community in the country was underdeveloped at the ground level. Consequently, state governing agencies stepped in to fill the institutional void in the educational realm.  Inevitably, educational policymaking in the country took on a top-down character. The Ministry of Education has constructed much of the governance infrastructure through such measures as accession to the Bologna Process and membership in the European Higher Education Area, with a concomitant National Qualifications Framework, domestic and international accreditations, quality assurance criteria, and means for teacher and faculty upgrading.

However, the national government and the Ministry of Education realise that in order for the educational system to reach its full potential, the participation and support of an active pedagogical community are necessary. This chapter discusses issues such as state versus educational community values, preferences, and policy agendas; community legitimisation of state policies; and community lobbying for material resources and pertinent reforms in education delivery. It further highlights the evolving policy paradigm in education, in which the Ministry and the educational community are engaging in learning how to collaborate with and support each other for the purposes of educational reform. The chapter also elucidates the benefits to the country’s education from the inputs of the educational community, and Kazakhstan’s potential to develop a high-quality and internationally competitive educational system.

 

Part 4 - Conclusion

10

Anastasia Koulouri and Nikolai Mouraviev

Insights into policy changes and Kazakhstan’s future trajectory

 

This chapter draws the learning points from the analysis of the nation’s experience in policy design, development and implementation in selected key areas and sectors. Led for more than a quarter of a century by President Nazarbayev, Kazakhstan has elected a new President in 2019, leading to high expectations of reform, as well as trepidation regarding the extent to which this change might lead to a power vacuum and/or power struggle between competing political factions. The chapter builds a coherent picture of the policy and governance challenges facing Kazakhstan in its economic and social transformation journey in the 21^st century. It argues that a range of endogenous and exogenous factors necessitate policy shifts and new policy paradigms. The chapter provides insights into the potential solutions to meet the current policy and governance challenges in key areas and sectors. It further discusses whether these solutions require policy shifts and renewed paradigms as opposed to incremental changes. Finally, the chapter highlights the principal enablers of and impediments to policy shifts, which facilitate and constrain the nation’s long-term development.