Development of the financial sector in Kazakhstan as a raw materials economy

Abstract

The financial sector development in a commodity-based economy using the Kazakhstan case has been studied. The subject of the study is the structure and dynamics of the financial market of commodity exporting countries in general and Kazakhstan in particular. The purpose of the study is to analyze the needs and ways of developing the financial market in the commodity economy using the Kazakhstan case, as well as to assess the progress made. The research methodology includes a comparative analytical method and a synthesis method. The experience of countries with successful financial centers has been compared to identify effective practices. It has been established that Kazakhstan implements the world’s leading practices for the financial sector development. The study results show that Kazakhstan has made some progress in the financial sector development, but has not yet become an example of a successful financial center. The factors limiting the opportunities for the financial sector development in Kazakhstan have been identified. The prospects of the research are to develop a strategy for further development of the financial sector, increase institutional maturity, expand the domestic capital market, and implement innovative financial instruments. The conclusions emphasize the need for active development of the financial sector in Kazakhstan to di versify the economy and increase resilience to external shocks.