The Economy of Kazakhstan
The National Fund and Managing Oil Wealth
Kazakhstan saves part of its oil revenue in a National Fund, which cushions the budget and supports development.
Saving for a rainy day.
Fund
Established in 2000 on the model of Norway’s fund.
Rules
Oil taxes flow in, and fixed transfers go to the budget.
Uses
It has helped during oil price crashes and pandemic support.
Criticism
Some question transparency and how funds are used.
A rainy day
When oil prices fall, transfers from the fund cover the budget gap.
Assuming a fund alone prevents resource problems
Governance matters.
Key takeaways
- The National Fund saves oil revenue.
- It cushions shocks.
- Transparency is debated.
- Governance matters.
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