Since 1991, Kazakhstan has had to rely on the deteriorating
infrastructure it inherited from the Soviet Union. As a result,
nearly every piece of public infrastructure (such as roads and
hospitals) in Kazakhstan requires a different degree of upgrading
or expansion.
Kazakhstan authorities that traditionally spurred economic
growth through expansive public spending have come to recognize
that they cannot finance the necessary investments in public
infrastructure from current budgets anymore and that a major part
of future financing must flow from the private sector to meet the
demands of the immense infrastructure financing gaps.
The need for the inflow of private capital is becoming ever more
pressing because of the sharp decline in commodity prices and
wide-ranging spillovers from Russia's recession, as well as the
low demand from China that hurts Kazakhstan's export
revenues.
