Kazakhstan [antikvár]

Kazakhstan became a member of the World Bank on July 23, 1992. This report is based on the work of two economic missions that visited Kazakhstan in January and April 1992 led by Wafik Grais and Chandrashekar Pant, respectively. The report was discussed with the authorities in October 1992 and distributed to the first Consultative Group (CG) meeting for Kazakhstan, which took place on December 14, 1992. The staff that prepared this report wishes to thank the authorities in Kazakhstan for their excellent support and cooperation. Country Economic Reports are prepared as part of the normál work of the Bank to meet several needs. They provide analysis relevant to the Bank's own lending activities. They are a useful source of information for other donors. In addition, the analyses and recommendations are an important input into the economic dialogue between officials of the country and Bank staff. The report is based mainly on official data, but where necessary it draws upon independent estimates. Although statistical material has been prepared with care, the methods and concepts were not always familiar to Bank staff, and the data should be interpreted carefully. The judgements and recommendations in the report are entirely the responsibility of the Bank. This report was put together by Isabel Guerrero, John Holsen and Keith Lloyd. The main economic mission included: Craig Andrews, Homayoon Ansari, Paul Apthorp, Mohinder Berry, James Bond, Earl Brown, Lily Chu, Patrick Conway, Heinz Hendriks, Ann Ishee, Ernst Lauridsen, Thurvara S. Nayar, Brian O'Connor, Barbara Ossowicka, Salem Ouahes, Joseph Saba, Ossi Rakhonen, Marcel Scoffier, Inderjit Singh, Kutlu Somel, Kalanidhi Subbarao, Alfredo Thorne, Jacques Toureille, Hasan Tuluy, Jurgen Voegele. Other staff contributing to the writing of the report included Suzanne Barnes, Christina Leijonhufvud, Klaus Lorch, Michael Mills, and Michael Walton. The study was carried out under the generál supervision of Kadir Tanju Yurukoglu, Division Chief and Russell J. Cheetham, Director. Since the report was distributed to the CG, many reform measures, addressing key areas discussed in this report, have been undertaken by the Government. A brief update on key developments in recent months is presented below, while the rest of the report remains as it was presented to the CG meeting. The report therefore reflects the Bank's assessment of Kazakhstan's economy at the end of 1992. Important structural reforms that have been approved since this report was distributed to the CG include: (i) the adoption by Parliament of a new Constitution in January 1993, which establishes the legal basis for priváté ownership; (ii) the design and implementation of an ambitious privatization program. By April 1993, approximately 10 percent of state assets had been privatized. The majority of these, were small-scale enterprises in the trade and services sectors; (iii) the elimination of most legal and institutional barriers to priváté sector participation in trade and distribution; and (iv) the adoption by Parliament of new statutes for the National Bank of the Republic of Kazakhstan giving it increased independence, a law on banking activities and a new foreign currency law. The Government of Kazakhstan has agreed to the elements of an initial stabilization program, allowing Kazakhstan access to the use of the Systemic Transformation Facility with the IMF. The program was presented to and approved by the IMF Board on July 23, 1993 and covers a 12- month period starting in July 1993. The program targets sharp reductions in the rate of inflation to single digit monthly rates by the end of 1993, a contraction in the budget deficit (from 9 percent of GDP in 1992 to 6 percent in 1993) and growth of broad money and domestic credit.