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Kazakhstan: extractive resources, governance and inclusive development

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  • Rafael Aguirre-Unceta

Abstract

Kazakhstan has large natural resources (hydrocarbons and minerals), which have enabled it to achieve a position of relative prosperity compared with other ex-Soviet countries in Central Asia. This article aims to examine the economic and social impact that the exploitation of these resources has had on the country. More specifically, it seeks to assess the consistency of the economic growth achieved, the extent of national productive diversification, as well as the wealth distribution within the Kazakh social structure. The article also attempts to appraise these effects in Kazakhstan in relation to some of the postulates of the resource curse thesis. One of them predicts that under weak and autocratic institutional frameworks, the benefits of the extractive sector tend to be captured by elites close to power. Poverty in Kazakhstan has declined overall, albeit with peaks in recent years and marked inequalities between the country's regions. Public spending on social policies (education, health, social protection) has been disproportionate and has lagged behind that of countries with comparable economic conditions. Social deprivation and civil unrest are witnessed in the country, as evidenced by the riots that rocked some of its cities in January 2022.

Suggested Citation

  • Rafael Aguirre-Unceta, 2024. "Kazakhstan: extractive resources, governance and inclusive development," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 26(1), pages 235-257, April.
    • Handle: RePEc:spr:jsecdv:v:26:y:2024:i:1:d:10.1007_s40847-023-00252-1
    DOI: 10.1007/s40847-023-00252-1
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    References listed on IDEAS

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    More about this item

    Keywords

    Natural resources; Governance; Industrial policy and economic diversification; Tax performance; Public social policies;
    All these keywords.

    JEL classification:

    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)

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