EBRD: Kazakhstan suffers heavily from crisis due to integrated banking system
Kazakhstan, Astana, March 13 / Trend, D.Mukhtarov /
The crisis was more severe in Kazakhstan than in the rest of Central Asia, due to its more globally integrated banking system, but lack of effective social safety nets, the EBRD's latest Transition Report - "Crisis in Transition": The People's Perspective", which was presented today in Astana, says.
According to the report, ordinary people in countries like Kazakhstan were hit far harder by the downswing than their counterparts in Western Europe. Moreover, households in Kazakhstan were hit harder than even those in the rest of central Asia: 37 percent of Kazakh households were forced to reduce their basic food consumption following the crisis, as compared with 27 percent of Central Asian households on average.
The crisis was more severe in Kazakhstan also due to bank borrowing, especially linked to dollar denominated loans taken out before the crisis.
The EBRD report finds that women in transition countries are less likely to attempt to set up a business but no less likely to succeed than men once they try. This may argue for policies targeted at encouraging potential female entrepreneurs and more business-relevant education.