ADB to focus on inclusive, pro-poor growth

The Asian Development Bank's (ADB) 2005-2007 country strategy for Kazakhstan, a regional leader in terms of economic growth and reforms, will focus on supporting the Kazakh government's efforts to ensure strong economic growth to benefit the poor. "Each country strategy and support programme (CSP) or update is tailored according to the individual country's needs, government priorities, problems, economic performance and absorptive capacity, as well as ADB's resources. In Kazakhstan, the recent economic growth has underscored the need for inclusive, pro-poor growth," ADB spokesman Graham Dwyer told IRIN from Manila. "There are common challenges facing Central Asian countries as well as unique problems. In the case of Kazakhstan, the government is cutting back on external borrowing as it continues to enjoy an inflow of oil revenues and is trying to reduce the budget deficit. So, ADB must be responsive to these needs," Dwyer added. According to the ADB, fuelled by the oil sector, the country's gross domestic product (GDP) grew by an annual average of 11 percent from 2000 to 2002 and around 9 percent in 2003. This strong performance is expected to continue with annual growth of 8 to 10 percent over the medium-term, the development bank expects. But despite the continued economic growth creating new jobs and improving living standards in Central Asia's largest nation, disparities still exist between rural and urban areas. In some places, rural poverty is three times as high as in urban areas, ADB said. "The ADB's operational focus in Kazakhstan is on rural poverty reduction and activities with regional impact. Rural poverty reduction will be supported with rural water supply, rural development, natural resources management, small and medium enterprises [SME] support and rural education," the ADB spokesman explained. The Philippines-based financial body envisages one loan per year of about US $50 million in line with the government's priorities. "Timely delivery of programme results is of particular importance for its development impact on rural poverty reduction in the medium term, through SME development, diversification of the economy and social infrastructure investments," Dwyer said. The ADB plans to implement a number of projects with strong development impact or innovative approaches in the country over the three years starting in 2005, including a regional rural development project in 2005; a rural water supply and sanitation project and a storm water management project in 2006; and a water resources management and land improvement project scheduled for 2007. As of December 2003, the ADB had approved 12 loans for nine projects in Kazakhstan, totalling $501.6 million. Since Kazakhstan joined the bank in 1994, the ADB has also approved 51 technical assistance projects totalling $23.4 million.