SUSTAINABILITY OF NATIONAL FUND OF REPUBLIC OF KAZAKHSTAN

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Date

2022-11-20

Authors

Sandybekova, Nurzhamal
Ibentayeva, Assel
Tleuov, Nurken

Journal Title

Journal ISSN

Volume Title

Publisher

Nazarbayev University Graduate School of Public Policy

Abstract

The active development of markets worldwide, globalization processes, resource curse, and permanent instability have led to the emergence of new financial institutions with the ability to exert a stabilizing influence on the global economy. For this purpose, sovereign wealth funds (hereinafter - SWF) were created. Recently, approximately 70 SWFs are operating worldwide. The creation and assets of sovereign funds have an impact on the external and internal balance of the national economy. The major principle was to establish the fund, which would become a «fund for future generations». Mostly, the income to the funds is tied to the commodity sector. However, with the advent of the «green economy», some of the funds adapt, diversify their investments and become non-commodity. However, there is a trend of renewable energy sources around the world. To what extent SWFs are resilient? Since Kazakhstan is at the top of the list of countries, producing oil and gas, the National Fund of Kazakhstan (hereinafter - NF) mostly depends on the commodity sector. In recent years, special attention has been paid to the activities of the NF. Especially after the Address of the Head of State Mr. Kassym-Zhomart Tokayev in September 2022, when it was announced the launch of the «National Fund for Children» program, this topic becomes relevant. Meanwhile, it is also often mentioned that the funds of the NF are excessively and inexpediently spent. The aim of this research is to analyze and identify the factors and problems which affect on sustainability and viability of our NF. Moreover, a research study in this field contributes to increasing NF’s revenues for future generations. The research methods will suggest identifying problems with transparency, governance, and profitability of NF to demonstrate sustainability and viability.

Description

Keywords

Type of access: Open Access, Sovereign wealth funds, National Fund of Kazakhstan, sustainability

Citation

Sandybekova, N. Ibentayeva, A. Tleuov, N. (2024). Sustainability of National Fund of Republic of Kazakhstan. Nazarbayev University Graduate School of Public Policy