Enhancing Export Diversification in Resource-Rich Economies – Policies and Evidence from Kazakhstan

Abstract

Kazakhstan has managed to benefit from its considerable endowments of natural resources during the commodity price boom in the 2000s. However, the global crisis of 2008-09 has demonstrated that relying on a single sector prone to high price volatility cannot be a viable strategy for development. The government of Kazakhstan well realizes that and for already 2 decades has been pursuing various industrial policy initiatives to build a more diversified and competitive economy. The paper aims to examine how successful were those policies by applying various indicators of export diversification. The results show that progress has been very limited as the country’s export basket is highly concentrated and still dominated by oil. This suggests that Kazakhstan should ensure better implementation, coordination, monitoring and evaluation of its diversification initiatives.

Keywords

• export
• diversification
• policy
• natural resources