NUR-SULTAN, April 29, 2021 – The COVID-19 pandemic has negatively affected Kazakhstan’s progress in strengthening human capital, warned experts during a virtual roundtable this week organized by the World Bank and the Agency for Strategic Planning and Reforms under the President of the Republic of Kazakhstan. The discussion aimed to facilitate a holistic and equity-oriented policy dialogue for informing investments and strategic plans to boost skills and productivity in the country.
Human capital is the knowledge, skills, and health that people accumulate throughout their lives, which enable them to realize their potential as productive members of the society. From 2017, the World Bank has led on a global effort on the human capital development to accelerate more and better investments in people for greater equity and economic growth.
During the event, the World Bank presented key findings of the Equitable Human Capital Development Framework Report for Kazakhstan that showcase declining productivity, growing inequality in the regions, as well as deteriorating health indicators amongst the population.
While Kazakhstan has made impressive economic progress, largely driven by rising exports of oil and gas and increasing productivity, since 2009 the country has seen a marked slowdown in economic growth. Contribution of the human capital to the Kazakh economy beyond extractive industries significantly went down, limiting the country’s ability to produce high-value products.
Today Kazakhstan’s economy lags in some key measures of innovation and competitiveness, and the state of skills development in the country is lower than in countries of the Organization for Economic Co-operation and Development (OECD). Moreover, the COVID-19 pandemic has significantly lowered domestic economic activity with GDP falling by 2.6 percent in 2020 after expanding by 4.5 percent in 2019 and the poverty rate increasing from 6% in 2016 to 14 percent in 2020. Building back from this economic shock requires strategic and targeted reforms to diversify the economy into more complex, skill-based sectors in order to meet Kazakhstan’s 2050 goals.
“COVID-19 has significantly undermined human capital development gains in Kazakhstan achieved over the last decade. The poorest and the most disadvantaged have been hit the hardest, and this will negatively impact their lifelong learning, future earnings, and socio-economic well-being. For Kazakhstan to enjoy sustainable growth, public policies and investments need to cater to the needs of the poorest and most disadvantaged regions and people. Greater emphasis is needed on the quality of education, skills development, and adult survival”, said Ayesha Vawda, Lead Education Specialist at the World Bank Office for Central Asia.
The report argues that there are substantial inequalities in human capital indicators across regions, gender, and in terms of socio-economic status in Kazakhstan. A child born…