The Unassuming Economist

From the Astana Times:

“The global economy remains slow, creating major challenges for reducing poverty and inequality. According to the IMF’s latest World Economic Outlook update, global growth is expected to be 3.2 percent this year and 3.3 percent in 2025, which is much lower than the pre-pandemic average of 3.8 percent.

Economic stagnation often leads to fewer job opportunities and low wage growth, worsening long-term unemployment and reducing the share of income that goes to workers. The pandemic has made inequality worse, with widespread job losses and income gaps causing a 0.5-point rise in the global Gini index in 2020.

In response to these challenges, governments need to focus on inclusive growth to create strong and resilient economies. Inclusive growth ensures that economic prosperity benefits everyone, especially the most vulnerable. It aims to create decent jobs, expand opportunities for all, and promote fairer wealth distribution.

Kazakhstan is at a crucial point in its development, working to shift toward a more inclusive and sustainable growth model. As part of its commitment to the United Nations 2030 Agenda, the country is focused on achieving the Sustainable Development Goals (SDGs) to improve the well-being and prosperity of its people. Over the past three decades, Kazakhstan has used its natural resources to achieve significant economic progress, becoming a key player among oil-producing nations.

However, the benefits of growth have not been equally distributed. The Gini coefficient, which measures income inequality, saw a notable decline from 0.366 in 2000 to 0.267 in 2009. Yet, the years following 2010 revealed a gradual rise in inequality, with the coefficient fluctuating between 0.278 and 0.291. Between 2013 and 2023, the Gini index increased by 5.1%, reflecting challenges in achieving equitable growth.

Data from the World Inequality Database highlight disparities in wealth distribution. The wealthiest 1% of Kazakhstan’s population controls 29.2% of the nation’s assets, while the bottom 50% holds a mere 4.6%. 

In response to these challenges, President Kassym-Jomart Tokayev introduced a new economic course in 2023. This ambitious strategy aims to achieve sustainable economic growth rates of 6–7% and double the size of the national economy to $450 billion by 2029. At the heart of these reforms lies the principle of inclusivity, with a strong focus on equitable wealth distribution to ensure that “every citizen tangibly benefits from the fruits of consistent economic progress.””

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