Kazakhstan outlines obstacles in economy diversification
Baku, Azerbaijan, Oct. 24
By Ali Mustafayev - Trend:
Kazakhstan has many obstacles and problems in diversification of economy that should be resolved, and the main problem is the country’s dependence on oil and gas, said the Kazakh Minister of Economy Timur Suleimenov during the “Eurasian week of OECD (Organization for Economic Co-operation and Development)” forum.
“It is not a secret that we depend on oil and gas and it remains one of the main obstacles on the way of diversification of economy. The share of natural sources in the economy of Kazakhstan has been reducing for about 7-8 years since the government adopted the program of industrialization. However the decrease of oil price in the international market delayed this process,” said Suleimenov, Kazinform reported.
Other difficulties in diversification of the economy are the long distances between the country’s regions and the climate, he said.
Elsewhere, the minister said that Kazakhstan spends a lot of money on infrastructure.
“Transportation and delivery processes in Kazakhstan are more expensive than in Europe. The satisfactory functioning of routes and transport nodes requires investments,” he said.
However, the country’s service sector and processing industry are being improved, and the economy is currently being stabilized by the government, according to the minister.
“Our state programs and development strategies include diversification, development of export, as well as the transition from centralized economy to decentralized economy,” Suleimenov said.