A Private-Sector Led and More Sustainable Economic Recovery DPF

Summary

The development objectives of the Private-Sector-Led and More Sustainable Economic Recovery Development Policy Financing in Kazakhstan support institutional and policy changes for: (i) a more competitive economy driven by a more vibrant private sector and accountable public sector; and (ii) a more sustainable economic transition. The first pillar supports a decisive shift to a more competitive economy driven by a more vibrant private sector and accountable public sector. To improve the environment for private sector growth, an independent Agency for Protection and Development of Competition (henceforth, Competition Agency) has been set up to oversee competition policy, reduce explicit and implicit preferences for state-owned and state-connected enterprises, and otherwise help level the playing field for all enterprises. Reforms are also targeting a more stable and vibrant financial sector. The development policy financing (DPF) also supports reforms of procurement by the Government to make it more open to competition, more transparent, and less costly. Given the size of public procurement, these reforms support a more competitive economy. In addition, the DPF supports strong anti-corruption efforts to enhance the integrity of state institutions. The second pillar helps lay the foundation for a more sustainable economic transition. The Government recently introduced legislative amendments to integrate sustainable development principles into sector policies and programs, improve the operation of its Emission Trading System, promote energy efficiency, and facilitate more investments in renewable energy. The new Environmental Code also translates Nationally Determined Contribution commitments into legislation and introduces measures to address climate change vulnerabilities in agriculture, water management, and forestry.

Expected Outcome

Expected Outputs