ASTANA, Kazakhstan, November 6. To reach its full potential, Baiterek, Kazakhstan’s state-owned holding company, needs to realign its governance, organizational structure, and operations with a stronger emphasis on medium-term development impact and financial market creation, highlights a new World Bank report released today, Trend reports.
Furthermore, combining climate finance and green impacts can considerably enhance Baiterek's strategy, potentially placing the institution as a global leader in the field of green finance development and a role model for institutions in other countries.
The World Bank stated that Baiterek has begun a transformational journey to improve its effect and governance, and the report highlights the importance of expediting the process.
According to the research, the company's commitment to uplifting MSMEs and households is wonderful, but its methodology for measuring impact has to be improved, and its emphasis on financial market creation needs to be emphasized much more.
While Baiterek is pro-environmental, social, and governance (ESG) advocacy, it could improve its contribution to addressing climate mitigation and adaptation challenges in the economy and financial markets by incorporating climate finance and the impact of green initiatives into its strategy.
The World Bank believes that its complete assessment and recommendations could serve as a potential implementation roadmap for Baiterek reform, delivering long-term development outcomes, fostering efficient financial markets, and efficiently mobilizing private capital.
The study lays forth a well-organized strategy for enacting critical reforms, outlines implementation milestones, and identifies responsible parties.
It emphasizes the importance of top-down and bottom-up techniques in Baiterek's transformation journey in order to keep the company nimble and adaptable.
This strategic direction will drive Baiterek toward a future of delivering sustainable impacts, creating deep financial markets, and pushing the frontier in green finance.
“To be fully accountable for medium-term impacts, Baiterek needs to gain full independence from the political and budget cycles, work under a credible impact framework, and be independently monitored and evaluated on impact,” said Martin Melecky, World Bank Lead Economist, at the Finance, Competitiveness and Innovation Global Practice.
The report highlights that if the suggested reforms are implemented, Baiterek will be reinforced to create positive impacts on Kazakhstani businesses, households, and the environment. Lacking these reforms, Baiterek could face increased scrutiny and criticism from the concerned stakeholders.