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E-book Reforming Kazakhstan
Windfalls from hydrocarbons and metals have largely driven growth in recent decades. The extractive sector accounts for nearly 30% of GDP, two-thirds of exports, three quarters of the stock of FDI and half of government revenues. Like other lessdiversified economies, Kazakhstan is vulnerable to commodity-price fluctuations and other problems associated with resourcebased development. To sustain the growth of living standards and productivity over the long term, Kazakhstan needs to implement wide-ranging structural reforms. An overly centralised bureaucratic structure, lack of transparency and problems with corruption undermine efforts to implement reform, as well as investor and citizen confidence. Kazakhstan needs to streamline central decision-making, devolve more authority to regions and localities, strengthen public sector integrity and broaden public participation in policy-making.
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