poverty in kazakhstan essay

Poverty in Kazakhstan

• December 2015
• 59(12):105-115
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Poverty in Kazakhstan

While Sacha Baron Cohen may have put Kazakhstan on the map with his fictitious role as a journalist in the movie “Borat,” Kazakhstan today stands as a country that continues to face hurdles despite consistent economic growth over the past few decades.

A Central Asian country of nearly 18 million people, Kazakhstan is no stranger to economic uncertainties. Since gaining independence in the early 1990s following the collapse of the Soviet Union, Kazakhstan has experienced relatively steady economic growth, thanks in part to its expanding oil sector.

The country’s poverty rate declined by more than 50 percent between 1999 and 2004. Between 2004 and 2013, the nation’s GDP increased by more than 500 percent.

Nevertheless, nearly half of the country is considered to be in a low income class. Roughly 47 percent of the population maintains a monthly income of approximately $70.

Arguably most frustrating to many Kazakhstan citizens are the disparities in gross regional product (GRP.) Because some parts of the country are more resource-rich than others, inconsistencies in wealth have affected some Kazakhstanis more than others.

Even though the country has seen substantial economic growth in recent years, specifically in the oil, gas and minerals industries, employment levels in these industries have not matched the nation’s economic growth.

Following the turn of the century, much of the nation saw considerable gains in employment and labor productivity. Yet, the agricultural region of Kostanay and North Kazakhstan did not experience the same growth as others parts of the country. West Kazakhstan saw significant economic gains in the late 1990s following the introduction of an oil pipeline stretching from the Caspian Sea to China .Perhaps surprisingly, Kazakhstan’s oil-rich areas have also become the nation’s most impoverished.

The minimum income level below the subsistence minimum in Kazakhstan is $35 per month. Any amount below the minimum is considered as poverty. Between 1998 and 2003, the number of people living in poverty in the country fell from 5 million to 3 million.

According to a recent U.N. Development Programme report, unemployment and low income remain the primary causes of poverty in Kazakhstan.

Yet, it is hard to overlook the respectable economic gains the country has seen over the past two decades. Kazakhstan has made considerable headway in its attempts to cement its standing on the world stage. Last month, President Nursultan Nazarbayev signed a new law to lift to visa restrictions, enact tax exemptions and help stabilize tax rates to interest foreign investment, especially with the United States and other Western powers. These moves, among others, will help the country in the long-term as it continues to make strides against poverty.

– Ethan Safran

Sources: The World Bank, World Health Organization, CNBC, IRIN, USAID Photo: Breitbart

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Chronic Poverty in Kazakhstan

CERGE-EI Working Paper Series No. 627; ISBN 978-80-7343-434-2 (Univerzita Karlova, Centrum pro ekonomický výzkum a doktorské studium)

40 Pages Posted: 19 Nov 2018

Alma Kudebayeva

The University of Manchester - Global Development Institute

Date Written: October 1, 2018

Given the lack of longitudinal data for Central Asia, research on poverty has largely ignored the time dimension. This study uses panel data constructed from the rotating cross-sectional Kazakhstan Household Budget Survey for the 2001-2009 period. The panel data provides an opportunity to measure chronic poverty levels and poverty transitions for the first time in Kazakhstan. We find that, despite the rapid and substantial reduction in poverty in the country since the turn of the century, and depending on the measure of chronic poverty employed, as much as a quarter of the population has experienced persistent poverty. However, the majority of chronically poor experience interrupted poverty spells. We apply the multiple-spell hazard model analysis to shed light on factors that impact on poverty exit and re-entry. The results of these estimates confirm that families with children under age six are experiencing higher probability of entry into poverty and lower probability of exit from poverty. Policy interventions are needed to improve the situation by providing an affordable state child care system in Kazakhstan.

Keywords: chronic poverty, longitudinal data, multiple-spell hazard model

JEL Classification: I32, C23, C41

Suggested Citation: Suggested Citation

Alma Kudebayeva (Contact Author)

The university of manchester - global development institute ( email ).

Humanities Bridgeford Street Building Manchester, M13 9PL United Kingdom

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Poverty in Kazakhstan: causes and cures. In support of the Millennium Development Goals

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What are causes of poverty among citizens of Kazakhstan and how to deal with it?

2023, Poverty in Kazakhstan

This study looks at the reasons and solutions to poverty in Kazakhstan. The study examined the nation's economic status and determined the key variables influencing the population's level of poverty. It was discovered that one of the primary causes is the low income level and high level of corruption. Additionally, the lack of access to basic services and high cost of food and energy are factors in the rise in the population of the poor. A variety of solutions have been put out to address Kazakhstan's poverty issue, including raising wages, creating new jobs, enhancing population skills, and facilitating better access to essential services. The issues of population social protection and assistance for low-income groups in the population were also taken into consideration. The study's findings can be used to create and carry out a national strategy to fight poverty in Kazakhstan.

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This thesis explores the concepts and measurements of chronic poverty, with application to Kazakhstan. A rigorous analysis of different approaches in the measurement of poverty and chronic poverty is presented in this study. Five matching techniques have been applied for the construction of unintended panel data based on KHBS 2001-2009. The substantial test of reliability, representativeness and robustness of the constructed panel data has examined. The attrition biases of the longitudinal data have been studied rigorously. The appropriate equivalence scale has been determined through regression analysis to the Kazakhstan HBS. The sensitivity of conventional and chronic poverty measures to various poverty lines and equivalence scales studied in this thesis. The stochastic dominance analysis of per adult equivalent consumption expenditures has been presented. The chronic poverty measures and determinants of chronically and transient poor have been estimated. It illustrates that the m...

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Executive Summary Kazakhstan has been remarkably successful in managing its transition since 1991, with GDP per capita up from U$1,500 in 1998 to nearly U$13,000 in 2013, on the basis of rich natural resources, combined with prudent macro-economic management. Government investment has improved infrastructure and social services, and the country has made significant progress in human development. In this country the size of Western Europe, however, social and regional disparities are widening rather than narrowing and Kazakhstan faces numerous complex development challenges in the fields of governance and sustainable socio-economic management. This Country Situation Analysis is an independent UN assessment of the development situation and critical issues, in light of goals agreed at UN global conferences, treaty obligations, and relevant national strategies, above all Kazakhstan 2050. Once the analysis is finalized, the UN Country Team will draft its next strategic framework in close cooperation with government and non-government partners. The analysis is based on a desk review of over 100 studies, triangulated with input collected via an online survey and discussions with more than 120 internal and external stakeholders. The report employs the five pillars defined in the post-2015 consultations to provide a structure for the overview of development challenges. Following a brief update on progress with the current UNDAF (2010-2015) and a summary of lessons learned, this report concludes with recommendations regarding priority development challenges. The Government launched “Kazakhstan 2050” in December 2012 as its new national-development policy directive; in a massive effort to adjust institutions and policies, the Government has been reorganized, including e.g. the establishment of a Ministry of Regional Development. Civil service reforms have included merit-based appointments and promotion. While the overall situation of freedoms and rights has been portrayed very negatively abroad, the Government has taken steps that appear to open (carefully controlled) space for civil society. Inclusive Social Development – serving those who need it most: While Kazakhstan has achieved and surpassed most MDGs, major challenges remain, especially in terms of making development truly inclusive, across fault lines such as gender, regional and social disparities. Persons with disabilities have been receiving more attention in official statistics, but they may be marginalized in their communities. Limited access to health care for vulnerable populations is making it difficult to contain the spread of diseases, including TB, STDs and HIV. The country’s overall health outcomes (measured e.g. in life expectancy) lag behind its rapidly increasing income. The Government has implemented reforms, but efforts need to continue to ensure access for the most vulnerable. Special attention needs to be also paid to youth issues. The concept of state youth policy identifies threats and risks including pressure on traditional value systems; paternalism and social infantilism; consumerism; and risky / unhealthy life-styles. In education, Kazakhstan has made major strides, but the full effects will take time. Aspects particularly deserving attention are VET and life skills, including reproductive health. Access, especially for marginalized groups such as people without official residence status, and quality, particularly outside well-resourced urban centres remain key challenges. Equitable Economic Development – making sure the fairy tale is true for all: Labour force participation increased from 58% in 2000 to 68% in 2011 while unemployment was cut from 13% to 5%. In these statistics, however, a third of those employed is described as “self-employed,” representing rural inhabitants with access to land who consider themselves unemployed. The proportion of women in these marginalized and vulnerable sectors is much higher than that of men. The share of the population living in poverty (USD2.5 PPP per capita per day) fell from 41% in 2001 to 4% in 2009. Using a higher poverty line (USD5 PPP) that is more appropriate for countries with a higher level of income per capita, some 42% of Kazakhstan’s population are still living in poverty; if the poverty line is increased to US$6 PPP, the poverty rate increases to 58%. The real issues only reveal themselves once one looks at disaggregated data, particularly in terms of gender and at the sub-oblast level. The share of children living in families with per capita consumption below the subsistence minimum increased from 33% (aged 0-14) in 2010 to 39% in 2012. Poverty is concentrated heavily among large households with small children and single parent families. Good Governance – a Kazakhstan of the people by the people for the people: Apparently trust in leadership and parliament remains relatively strong, but institutional and governance performance are very weak by international standards. Some institutional reforms are underway. President Nazarbayev’s 2014 State of the Nation Address provided further guidance on the 2050 Strategy, stressing the need to improve public institutions’ efficiency by promoting fair competition, justice and the rule of law, and strengthening interactions with NGOs and the business sector. Kazakhstan acceded to and ratified a wide range of fundamental international covenants, conventions and protocols – more than 40 in all. The Government also adopted several relevant programmes, including the Legal Policy Concept Paper for 2010-2020, the Gender Equality Strategy 2006-2016, a concept on developing the juvenile justice system, state programmes on fighting corruption, transnational organised crime, civil society development, national heritage, etc., and expressed the intention to develop a national human rights action plan. Environmental Sustainability – for a healthier present and future: As part of the Soviet legacy, Kazakhstan has inherited some of the most daunting environmental challenges in the world. Among the factors highlighted in the Government’s own analysis, almost a third of Kazakhstan’s agricultural land is either degraded or under serious threat. Currently, the economy is forecast to run short of 14 bcm of water by 2030 (a third of the current inflow). Environmental contamination has had a devastating impact on health in Kazakhstan. Some 40,000 children under ten are estimated to suffer from neurological diseases resulting from lead poisoning. Kazakhstan ranks second in terms of organic contamination among the countries in the region. Air pollution in the cities is estimated to cause 6,000 premature deaths per year. With no integrated waste management, 97% of solid municipal waste ends up in uncontrolled landfills. To address these complex challenges, the Government has adopted the Concept for the Transformation of Kazakhstan toward a Green Economy and corresponding national legislation. Regional and international cooperation – Kazakhstan as a donor and a hub: Kazakhstan would like to assume more of a regional leadership role. Trade has been one of the main drivers of cooperation, with intraregional trade expanding significantly in terms of volume. Connectivity between Kazakhstan, Kyrgyz Republic, and Tajikistan has increased. There are growing links with Afghanistan. And there has been rapid growth in economic ties with some of the big neighbours, especially China and Russia. Since 2011 the Government has been planning to set up its own agency for international development, KazAID, to render assistance to neighbouring countries. Kazakhstan has initiated the creation of a sub-regional multilateral diplomacy hub in Almaty to help address regional issues in Central Asia, the South Caucasus and Afghanistan. The hub strengthens Kazakhstan’s international standing and bolsters stability in the region. Lessons learned from the current UNDAF: The main strengths of the current UNDAF process have been that the Government has been engaged, not least via the annual reviews; the UN has used it as a basis for joint advocacy and programming; and the UNDAF has facilitated information management and coordination (though more could be done). Among the challenges that the next framework should address are that monitoring was difficult, as the results matrix was seen as a one-off product rather than a day-to-day tool in programme management; the roles & responsibilities were not operationalized sufficiently; routine demand for information on the UNDAF was limited; and the Kazakhstan’s plans to be a regional leader were not explicitly framed in the existing UNDAF. Conclusions: The UN is well placed to help Kazakhstan achieve a future with a healthy population, a thriving green economy and guaranteed rights for all, through economic, social and political modernization; with an inclusive society, in which the rights of all people, especially the most vulnerable, are protected; with stakeholders at all levels enabled to be accountable for equal rights for all; and with effective multilateral and regional cooperation, particularly in the area of humanitarian and development assistance. The UN could base its support on a concept of “eQuality,” combining equality, quality and e-governance to boost effectiveness and accountability. One of the main changes proposed in line with Kazakhstan’s emerging as a donor and very likely attaining HIC status well before 2020, would be to think of the next UN strategy in terms of a partnership framework rather than a UN Development Assistance Framework.

Kiersten Johnson

Zaure Chulanova

The purpose of the article is to study the main parameters characterizing the quality of life of the population of Kazakhstan in modern economic conditions and develop proposals for its improvement. The methodology of the study is based on a holistic approach, including the use of objective indicators of the quality of life that determine the material conditions and means of human livelihood, and subjective assessments of the population, social groups of their material and social well-being. Measuring and evaluating the level and quality of life of the population of Kazakhstan based on an integrated approach includes the use of the following methods: component analysis, normative and stratification, integral indicators, and subjective assessments of the population. The leading blocks of the life support system are considered, including the assessment of income and consumption in the conditions of maintaining socio-economic income differentiation; the social qualitative parameters of...

Jane Falkingham

Aaron M Thompson , Morgan Lundy , Shelly Nichols

When the Millennium Development Goals (MDG) were first announced back in 1990, there was a sense of good feelings among people in the development community. For the first time, there was a world-wide effort to in effect change the world so that every country would accomplish eight unique goals. While it is hard for every country to meet these goals, most have been able to make huge strides towards changing their countries into more developed nations. The first four of the eight goals assigned to countries has been assigned to our group, which are to eradicate extreme poverty and hunger, to achieve universal primary education, to promote gender equality and empower women, and to reduce child mortality. Each of these goals alone is a task that some countries have not been able to accomplish in the entirety of the countries past. It is a steep goal that could not be ever one hundred percent completed, because there will always be people who have to be willing to make the change happen. The country of Kazakhstan is doing well in the categories mentioned above. No country is perfect however, so when Kazakhstan started to reach some of the goals that were given to it, new, more focused goals toward Kazakhstan of each MDG were then assigned. For example, Kazakhstan was able to reduce its extreme poverty and hunger levels significantly, so the task started to become more refined, with a focus on extreme hunger and poverty in remote places. This is a great stride for a country like Kazakhstan, especially because it was a country, in Eurasia, controlled as a satellite state by the Soviet Union (USSR) for so long. Education rates are exceeding expectations in Kazakhstan as well, due to advancements and understanding of gender equality, and how important it is to a modern civilization. No longer does Kazakhstan look like a dependent country, but a country flourishing in its infancy of becoming an independent state.

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