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EURASIA ACTIVE WITH


EURASIA AND THE OECD: Working together for shared prosperity The Eurasia countries are rebounding from recent economic and trade shocks. Yet they are far from regaining their pre-crisis momentum, when the region’s aggregate GDP was growing by around 8% per year. Getting back onto a growth trajectory that will support long-term income convergence with OECD members will require strong institutions to implement structural reforms and foster investment, innovation and entrepreneurship. Only then can Eurasia turn its resource wealth, strategic location and exceptional human capital into the foundation for broad-based prosperity. The good news is that we have witnessed an activation of reforms in Eurasia over the last few years and, importantly, the OECD has been part of this process. Our work supports sustainable and inclusive growth in the region, promoting structural reforms, capacity building and policy dialogue. Increasingly, our co-operation transcends initiatives that focus on Eurasia itself, like the OECD Eurasia Competitiveness Programme and our GREEN Action Task Force. In addition, the Eurasia countries are becoming more active in OECD committees, working parties and other bodies, reflecting their commitment to peer learning and global standard setting. We see growing interest in, and support for, OECD instruments and initiatives, issues such as integrity, taxation, corporate governance and productivity. At a time when there is mounting pressure in many places to close markets and erect new barriers between countries, Eurasia is opening up. Co-operation within the region and with external partners is growing. The OECD remains committed to working with the Eurasia countries to build fairer, more open and more transparent economies in the region. ANGEL GURR�A, OECD Secretary-General  January 2020


CONTENTS

Contents THE OECD AND EURASIA: HOW WE WORK TOGETHER

2

ENVIRONMENT, ENERGY AND TRANSPORT 41

Regional and country-level approaches

4

GREEN Action Task Force

Enhancing regional policy dialogue

8

Leveraging and diversifying financing for green investment 44

Building more competitive economies

10

Promoting peer review of competitiveness reforms

12

42

Sustainable infrastructure for connectivity and low-carbon development

45

Reforming water policies for inclusive green growth

46

SUSTAINABLE, BALANCED AND INCLUSIVE GROWTH 13

Ensuring reliable and clean energy

47

Promoting regional development and

Improving transport networks

48

managing urbanisation

14

Reaping greater benefits from international trade

16

EMPLOYMENT AND SOCIAL DEVELOPMENT 49

Improving agricultural policy performance

17

Seeking best practices in social and health policies

50

Promoting responsible business conduct

18

Improving health-system performance

51

Fostering development

19

Improving education systems and learning outcomes

52

Measuring green growth

20

Fostering youth inclusion

54

Better data for better policies

22

Promoting development co-operation and the 2030 Agenda 55

Supporting SME development and entrepreneurship

23

Global Partnership for Effective Development Co-operation 56

Promoting sound competition

26

Managing international migration

57

Enhancing the investment environment

27

Tackling the root causes of gender equality

58

Improving financial literacy and financial inclusion

28

Building a knowledge economy

59

Working towards more open markets for steel

60

PUBLIC GOVERNANCE 29 Delivering better public services and regulation

30

ANNEXES 61

Towards more open government

31

Today’s OECD: Better policies for better lives

62

Delivering better quality public services

32

Global relations

63

Tackling tax avoidance and evasion

33

Fast facts

63

Enhancing anti-corruption and integrity

35

Governance structure

63

Improving state-owned enterprise reform

37

Working methods

64

Building a high-performing civil service

38

OECD legal instruments

64

Improving resilience to critical risks

39

Adherence to OECD legal instruments

65

Participation in OECD committees and working parties

66

Participation in regional networks

67

Membership in OECD networks and initiatives

67

Dialogue and data

68

Supporting the digital transformation of the public sectors 40

CONTENTS . 1


THE OECD AND EURASIA

2 . ACTIVE WITH EURASIA


“The OECD’s Global Relations Strategy seeks to promote, on a global scale, those principles, values, institutions and policies that lead to sustainable growth and poverty reduction. In today’s increasingly interdependent world, engagement with partner countries is more important than ever.” Andreas Schaal, OECD Director of Global Relations THE OECD AND EURASIA . 3

THE OECD AND EURASIA

HOW WE WORK TOGETHER


Regional and country-level approaches

The OECD’s Eurasia activities involve 13 countries extending from the borders of the European Union to the Far East: Afghanistan, Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, the Republic of Moldova, Mongolia, Tajikistan, Turkmenistan, Ukraine and Uzbekistan. The OECD supports partner countries in Eurasia on the basis of a whole-of-government and whole-of-OECD approach. The OECD also provides intensive programmes of support for individual countries:

L S ignature of a new Memorandum of Understanding, 21 November 2018

at Eurasia Week, in Paris, France: Timur Suleimenov, Minister of National Economy of Kazakhstan and Angel GurrĂ­a, Secretary-General of the OECD.

4 . ACTIVE WITH EURASIA

l

The Kazakhstan Country Programme (2015-18) addressed issues such as social policy, public governance, environmental protection, innovation, and education and skills. In November 2018, Kazakhstan and the OECD signed a new Memorandum of Understanding to provide a framework for co-operation in 2019-22.

l

 The Ukraine Action Plan supports reform in the areas of anti-corruption, governance and the rule of law, and investment and business climate.

L S ignature of the OECD Ukraine Action Plan for 2019-20, 15 February 2019,

Kyiv, Ukraine: Stepan Kubiv, First Deputy Prime Minister/Minister of Economic Development and Trade of Ukraine and Mari Kiviniemi, Deputy Secretary-General of the OECD.


THE OECD AND EURASIA

“The OECD has supported structural transformation through policy reform and dialogue in the Eurasia region for more than a quarter-century, in collaboration with governments and other stakeholders in the region, OECD members and other international institutions. The OECD’s expertise and working methods, particularly its commitment to peer review and multi-stakeholder policy dialogue, can help Eurasia countries advance their reform agendas. Its reliance on evidence and persuasion rather than ‘hard conditionality’ helps ensure national ownership of reforms. We will continue to support the OECD’s efforts to promote better economic, social and environmental policies and stronger institutions through concrete deliverables and greater involvement of Eurasia countries in OECD standards and bodies.”

“Today, the OECD is a successful example of constant development in response to changes in the global economic and political context. Its members account for more than 40% of global GDP and 60% of world trade. They provide high standards of living, and high levels of economic development and productivity. Kazakhstan strives to reach the level of these advanced countries. In the present conditions, when the global competitiveness of countries depends on investment, technological development and human capital, it is especially important for us to build co-operation with, and support from, developed countries and, above all, the OECD.” Askar Mamin, Prime Minister of the Republic of Kazakhstan

Ivita Burmistre, Ambassador and Permanent Representative of Latvia to the OECD and Chair of the OECD External Relations Committee

THE OECD AND EURASIA . 5


Eurasia at a glance Since the turn of the century, labour productivity and real incomes have more than doubled and more than 50 million people have been lifted out of poverty.

Afghanistan 37,172,386 1,952

♂: 62.7 – ♀: 65.7

Kazakhstan 18,276,499 27,831

♂: 68.7 – ♀: 76.9

POPULATION (2018) GDP PER CAPITA (PPP) USD (2018) AVERAGE LIFE EXPECTANCY (2017) Source: World Bank Indicators, https://databank.worldbank.org/source/world-development-indicators. 6 . ACTIVE WITH EURASIA


Azerbaijan

Belarus

Georgia

2,951,776

9,942,334

9,485,386

3,731,000

10,325

18,012

19,960

11,421

♂: 71.1 – ♀: 78.2

♂: 70.1 – ♀: 75.2

♂: 69.3 – ♀: 79.2

♂: 69.0 – ♀: 77.8

Kyrgyzstan

Moldova

Mongolia

6,315,800

3,545,883

3,170,208

3,878

7,301

13,735

♂: 67.2 – ♀: 75.4

♂: 67.4 – ♀: 76.0

♂: 65.5 – ♀: 73.8

Tajikistan

Turkmenistan

Ukraine

Uzbekistan

9,100,837

5,850,908

44,622,516

32,955,400

3,444

19,270

9,233

7,020

♂: 68.5– ♀: 73.0

♂: 64.5 – ♀: 71.4

♂: 67.0 – ♀: 76.8

♂: 69.3 – ♀: 73.5 THE OECD AND EURASIA . 7

THE OECD AND EURASIA

Armenia


Enhancing regional policy dialogue

The OECD and Eurasia have a longstanding and mutually beneficial relationship that has steadily developed since the early 1990s. OECD Eurasia Week is the annual OECD event to exchange on whole-of-government challenges in the region. It includes a ministerial level panel, several thematic sessions on pressing issues of relevance to the region open to public and private sector representatives from OECD and Eurasia countries alike. “The OECD’s Global Relations Strategy seeks to promote, on a global scale, those principles, values, institutions and policies that lead to sustainable growth and poverty reduction. In today’s increasingly interdependent world, engagement with partner countries is more important than ever. OECD members and their citizens, as well

8 . ACTIVE WITH EURASIA

as the citizens of the Eurasia countries, stand to gain from reforms that level the competitive playing field for firms and investors in Eurasia, reduce corruption and poverty, and improve environmental quality. Such engagement is critical if the OECD is to continue to strengthen its role as an effective and inclusive global policy network and a globally recognised standards-setter. We benefit greatly from the partner countries’ experiences and perspectives, which enriches the policy debate at the OECD. At the same time, these countries can tap into the wealth of OECD expertise to inform their policy reforms.” Andreas Schaal, OECD Director of Global Relations

KO  ECD Eurasia Week 2018, keynote speakers, OECD Headquarters, Paris,

France: Angel Gurría, OECD Secretary-General; Abdullah Abdullah, Chief Executive, Afghanistan; Zamirbek Askarov, Deputy Prime Minister, Kyrgyzstan; Azim Ibrohim, Deputy Prime Minister, Tajikistan; Nodir Otajonov, Deputy Prime Minister, Uzbekistan; Peter Burian, EU Special Representative for Central Asia, European External Action Service.


THE OECD AND EURASIA

L E urasia Week 2017, Almaty, Kazakhstan: High-level participants.

L E urasia Week 2017, Almaty, Kazakhstan: Bakytzhan Sagintayev, Prime Minister of Kazakhstan, and Angel Gurría, OECD Secretary-General. THE OECD AND EURASIA . 9


Building more competitive economies

In 2008, the OECD Eurasia Competitiveness Programme was created to help the region address its economic challenges. It assists the 13 Eurasia countries in the design and implementation of policies to improve their business climate drawing on the expertise, experience and instruments of the OECD and its members.

The OECD Eurasia Competitiveness Programme includes two Initiatives:

The Programme has since established itself as a regional policy-network to: l Enhance policy dialogue between OECD and Eurasia

countries, as well as among countries of the region. l Promote country-specific approaches to competitiveness

reforms and peer reviews.

Central Asia Initiative

Eastern Europe and South Caucasus Initiative

Afghanistan

Armenia

Kazakhstan

Azerbaijan

Kyrgyzstan

Belarus

Mongolia

Georgia

Tajikistan

Moldova

Turkmenistan

Ukraine

Uzbekistan

l Serve as a gateway to OECD expertise.

Real GDP Growth (annual, %) 15

10

5

0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

-5

-10

OECD Area

OECD ECP Region

Central Asia

E. Europe/S. Caucasus

Source: OECD calculations based on World Bank, World Development Indicators, https://datacatalog.worldbank.org/dataset/world-development-indicators.

10 . ACTIVE WITH EURASIA


THE OECD AND EURASIA

“The Czech Republic has supported the OECD Eurasia Competitiveness Programme since its birth a decade ago, providing both finance and expertise to OECD projects in the region, as well as chairing the OECD Eurasia Competitiveness Roundtable for four years. We value the Programme’s support to the region to benefit from policy dialogue and peer exchange on critical policy areas, while offering the OECD an opportunity to promote its principles and standards, to benefit from new policy perspectives and to engage with partners from a dynamic and strategically-located region.” Petr Gandalovič, Ambassador and Permanent Representative of the Czech Republic to the OECD and Chair of the OECD Eurasia Advisory Board

“As a major partner to both the Central Asia Initiative and the Eastern Europe and South Caucasus Initiative, the European Union strongly supports OECD work on policy reform in Eurasia, particularly on investment, competitiveness and governance. Such work is particularly important now, as we see an acceleration of reforms across much of the region and a number of Eurasia countries developing deeper partnerships with Europe. We greatly value the OECD’s ability to bring Eurasia countries together at a regional level, as well as to work with individual countries to adapt policy advice and support their circumstances.”

“Sweden strongly supports policy and governance reforms in Eurasia, given the important political and economic challenges the region faces. In Ukraine, in particular, we have financed a number of OECD projects in such fields as anticorruption, investment, competitiveness and energy efficiency. The OECD’s work in Eurasia, which builds on policy dialogue, expert advice and analysis within dedicated regional networks, is a front-runner in addressing key policy challenges, including on investment and trade, entrepreneurship and SME development, and integrity in both public and private sectors. OECD engagement also helps to strengthen the voice of civil society in support of reforms aimed at resilient, inclusive and sustainable development.” Anna Brandt, Ambassador and Permanent Representative of Sweden to the OECD and Co-Chair of the OECD Eastern Europe and South Caucasus Initiative

Didier Lenoir, Ambassador and Permanent Representative of the European Union to the OECD and Co-Chair of the OECD Central Asia Initiative

OECD AND EURASIA . 11


Promoting peer review of competitiveness reforms The OECD Eurasia Competitiveness Roundtable is a regional peer review mechanism to assess and monitor competitiveness reform implementation. Peer reviews offer an initial assessment and recommendations concerning a selected policy area. They are followed two to three years later by reviews of progress in reform implementation. The OECD Eurasia Competitiveness Roundtable is a platform for peer review and knowledge sharing on the implementation of competitiveness reforms in the 13 partner countries of the OECD Eurasia Competitiveness Programme. The Roundtable takes place every year in the context of OECD Eurasia Week. Participants include all partner countries of the Eurasia region, OECD Members, business associations as well as international organisations active in the region. Since its launch in June 2013, the Roundtable has fulfilled its mandate by: l Carrying out peer reviews of competitiveness reform

implementation at the country level. l Exchanging good practices among OECD members, Eurasia

countries and partner organisations. l Developing policy guidelines and recommendations l Monitoring progress in the implementation of.

competitiveness reforms.

The peer review reports are forward-looking and recommend policy responses to specific competitiveness challenges facing the countries under review. The reports are discussed at the Roundtable and launched in the country to give visibility to the policy findings and recommendations. The country is re-examined two to three years after its initial review in order to assess progress in the implementation of the recommendations and to consider further steps that might be taken. “The OECD Eurasia Competitiveness Roundtable is a unique annual forum for peer reviews on reforms in such diverse fields as entrepreneurship, SME development, and export and investment promotion. It allows countries to share knowledge and experiences, as well as providing peer support for those involved in implementing reforms. The Roundtable is an excellent way to introduce Eurasia countries to OECD methods and instruments.â€? Ingrid BrockovĂĄ, Ambassador and Permanent Representative of the Slovak Republic to the OECD and Chair of the OECD Eurasia Competitiveness Roundtable

12 . ACTIVE WITH EURASIA


SUSTAINABLE, BALANCED AND INCLUSIVE GROWTH SUSTAINABLE, BALANCED AND THEINCLUSIVE OECD ANDGROWTH EURASIA . 13


Promoting regional development and managing urbanisation Substantial shifts in patterns of urbanisation and economic activity over the last quarter-century have presented Eurasia countries with both challenges and opportunities. The OECD works with Eurasia governments to promote inclusive and sustainable territorial development, supporting growth while addressing territorial disparities, particularly between cities and rural areas. Since completing an OECD Territorial Review in 2013, Ukraine has undertaken an extensive programme of decentralisation reforms, which the OECD has supported. The OECD project Supporting Decentralisation in Ukraine combined analytical work on regional development and decentralisation with a series of capacity building seminars bringing together Ukrainian national and subnational government authorities, OECD and international experts

and international donors. The report Maintaining the Momentum of Decentralisation in Ukraine was launched in June 2018. In 2019, Ukraine adhered to the Recommendation of the OECD Council on Effective Public Investment across Levels of Government. The Supporting Decentralisation Reform in Ukraine 2019 initiative built on the report’s findings and introduced new OECD work on multi-level governance and decentralisation in order to help Ukrainian authorities ensure more effective subnational public investment and continue on their path of decentralisation reform. Following the OECD Territorial Reviews: Kazakhstan and OECD Urban Policy Reviews: Kazakhstan published in 2017, the OECD has been working with Kazakhstan to develop an urban development framework that boosts competitiveness, productivity and well-being.

The OECD has been working with Kazakhstan to develop an urban development framework that boosts competitiveness, productivity and well-being. 14 . ACTIVE WITH EURASIA


SUSTAINABLE GROWTH

An Implementation Dialogue conducted in 2018-19 involved a series of workshops, to help Kazakh officials translate OECD policy recommendation into actions around four topics: regional competitiveness, urban policy, territorial indicators for better regional policy and the governance of public investment across levels of government. The OECD has also been working with individual regions of Kazakhstan to address regional development challenges in such diverse fields as agribusiness and health care.

OECD Territorial Reviews

KazaKhsTan 2017

OECD Territorial Reviews KazaKhsTan 2017

OECD Urban Policy Reviews

KazaKhstan

In 2019, the OECD organised workshops in Kazakhstan and Uzbekistan to discuss measures of urbanisation and statistical city definitions in order to improve international comparisons on urban trends and urban indicators and to promote evidence-based policy making for urban development.

OECD Urban Policy Reviews

OECD Urban Policy Reviews provide a comprehensive assessment of a country’s urban policies as seen through multiple lenses, including economic, social and environmental. First, the reviews focus on the policies designed and introduced by the central government that directly address urban development and regional development policies with an urban development focus. Second, the reviews analyse how national spatial planning for urban regions, along with specific sectoral policies, impact urban development, directly and indirectly. Often, public policies are designed to target sectoral objectives with little or no regard for their profound impact on urban areas, and the means available to implement policies at the local level. Third, the reviews address issues of governance, including inter-governmental fiscal relationships and the various institutional, fiscal and policy tools aimed at fostering co-ordinated urban development among different levels of government and different administrations at the central level. For example, reducing the fragmentation among urban governance structures can help enhance effectiveness and outcomes in public service delivery and other policy areas. From country to country, the OECD Urban Policy Reviews follow a consistent methodology that features cross-national comparisons and recommendations on the integration of sectoral policies into urban development policy, planning and management.

KazaKhstan 2017

Urbanisation is an important condition for economic development, but must be managed effectively if cities are to realise their potential as engines of national growth. This report provides a comprehensive assessment of Kazakhstan’s urban policies in terms of economic, social and environmental impact. It analyses how national spatial planning for urban regions, along with specific sectoral policies, affect urban development directly and indirectly. It also looks at specific issues such as housing, public utilities, urban transport, and migration. The review assesses the efficiency and effectiveness of current urban governance arrangements, and makes recommendations for steps Kazakhstan can take to develop an attractive and well-managed system of large and medium-sized cities that can help it achieve its development objectives.

This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

The World Observatory on Subnational Government Finance 9HSTCQE*cgiief+ and Investment, established by the OECD and United Cities and Local Governments, covers ten Eurasia countries. It provides qualitative and quantitative information on multilevel governance frameworks and on subnational government structures, responsibilities and finance (expenditure, revenue and debt). 2017

OECD Urban Policy Reviews KazaKhstan 2017

Consult this publication on line at http://dx.doi.org/10.1787/9789264268852-en.

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isbn 978-92-64-26884-5 04 2017 02 1 P

Maintaining the Momentum of Decentralisation in Ukraine This Multi-level Governance Series study focuses on Ukraine’s advances in regional development, territorial reform and decentralisation since 2014. The Government launched a reform to merge local governments and strengthen the decentralisation process, giving additional power and resources to sub-national authorities. In a short period, successful steps have been taken toward achieving municipal mergers and greater fiscal, administrative and political decentralisation, complemented by the State Strategy for Regional Development 2015-2020. The first local elections have been held and more public services are being delivered by certain local authorities. Yet, important challenges remain, ranging from a need to address rising disparities and adjusting multi-level governance practices and territorial structures, to better structuring fiscal decentralisation. This report addresses regional performance and disparities in Ukraine, provides insight into Ukraine’s current territorial reform and approach to decentralisation, explores the impact of fiscal decentralisation measures, and includes a case study of the transport sector. It also provides a set of recommendations for action to support Ukraine in meeting the conditions for successful decentralisation.

This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

www.oecd.org/cfe/regional-policy www.oecd.org/effective-public-investment-toolkit www.sng-wofi.org

iSbn 978‑92‑64‑30138‑2 85 2018 12 1 P

OECD Multi‑level Governance Studies

Maintaining the Momentum of Decentralisation in Ukraine

Maintaining the Momentum of Decentralisation in Ukraine

Consult this publication on line at http://dx.doi.org/10.1787/9789264301436-en.

OECD Multi‑level Governance Studies

OECD Multi‑level Governance Studies

9HSTCQE*dabdic+

OECD Multi‑level Governance Studies

OECD Multi‑level Governance Studies

Making Decentralisation Work A HANDBOOK FOR POLICY‑MAKERS

Making Decentralisation Work

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A HANDBOOK FOR POLICY‑MAKERS

SUSTAINABLE, BALANCED AND INCLUSIVE GROWTH . 15


Reaping greater benefits from international trade

International trade has been a key driver of Eurasia’s integration into global markets. The OECD helps Eurasia countries identify priorities for action in the areas of trade facilitation and the export of raw materials.  Eleven of the 13 Eurasia countries are covered by the OECD Trade Facilitation Indicators, which help governments improve border procedures, reduce trade costs, boost trade flows, and ultimately reap greater benefits from international trade. OECD work on trade facilitation shows that implementing the WTO Trade Facilitation Agreement could reduce trade costs by an average of 15%. The potential benefits of addressing such barriers in tandem with improvements in connective infrastructure was one of the themes of the

16 . ACTIVE WITH EURASIA

joint OECD-International Transport Forum report Enhancing Connectivity and Freight in Central Asia (2019). Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, Ukraine and Uzbekistan are also included in the OECD Inventory of Export Restrictions on Raw Materials. Export restrictions have contributed to large swings in prices and have become a source of friction and trade disputes. Systematic OECD work on these measures and their economic effects has underpinned, and helped to facilitate, policy dialogue among stakeholders affected by them.

www.oecd.org/trade/ www.oecd.org/trade/topics/trade-in-raw-materials


Agriculture typically accounts for a somewhat larger share of GDP in Eurasia than in most OECD economies – and a much larger share of employment. The OECD works with countries to improve agricultural policies and practices in an effort to boost the productivity and competitiveness of the sector, and guarantee higher incomes for rural populations. The OECD and the Food and Agriculture Organization of the United Nations (FAO) annually publish a joint Agricultural Outlook, which examines the medium-term outlook for global agricultural commodity markets. Kazakhstan and Ukraine are included in the OECD’s annual Agricultural Policy Monitoring and Evaluation report, which estimates support to agriculture and evaluates the related impacts. In addition, Kyrgyzstan, Moldova and Ukraine are active members of the OECD Seed Schemes, which promote the use of agriculture seeds of consistently high quality. Certified seeds are produced – and officially controlled – according to common harmonised procedures in 61 participating countries.

www.oecd.org/agriculture www.agri-outlook.org www.oecd.org/agriculture/seeds

Monitoring and Evaluation 2018

D reports that monitor and evaluate agricultural policies across 35 OECD countries, the 6 non-OECD EU Member States and eople’s Republic of China, Colombia, Costa Rica, Kazakhstan, outh Africa, Ukraine and Viet Nam. This annual report is a unique to agriculture and uses a comprehensive system of measuring and ducer and Consumer Support Estimates (PSEs and CSEs), the ) and related indicators. These estimates provide insight into the policy and serve as a basis for OECD’s agricultural policy monitoring ntation for the calculation of support are available on line

Agricultural Policy Monitoring and Evaluation 2018

OECD‑FAO Agricultural Outlook 2019‑2028

Statistical Annex containing detailed background tables with ble in electronic form at the publication website

SPECIAL FOCUS: LATIN AMERICA

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OECD‑FAO Agricultural Outlook 2019‑2028

which gathers all OECD books, periodicals and statistical databases. ation.

Agricultural Policy Monitoring and Evaluation 2018

doi.org/10.1787/agr_pol-2018-en.

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9HSTCQE*dacdeb+

SUSTAINABLE, BALANCED AND INCLUSIVE GROWTH . 17

SUSTAINABLE GROWTH

Improving agricultural policy performance


Promoting responsible business conduct

Enabling responsible business conduct is critical in building healthy business environments in Central Asia and the South Caucasus and bringing the region closer to international standards. Kazakhstan and Ukraine both adhered to the OECD Declaration on International Investment and Multinational Enterprises in 2017. The Declaration includes the OECD Guidelines for Multinational Enterprises, a set of recommendations on responsible business conduct addressed by governments to multinational enterprises. The Guidelines cover nine important areas: disclosure, human rights, employment and industrial relations, environment, consumer interests, science and technology, bribery, taxation, and competition. Observance of the Guidelines is supported by a unique implementation mechanism known as the National Contact Points. An adhering government creates a National Contact Point, which is responsible for promoting the Guidelines and examining cases brought before it of alleged non-compliance with the Guidelines by a multinational enterprise operating in or from adhering countries. By adhering to the declaration and setting up their National Contact Points, Ukraine and Kazakhstan have made important progress towards promoting responsible business conduct in the region.

“Poland is proud to have supported the OECD’s co-operation with the Eurasia countries since it joined the OECD more than 20 years ago. Poland values the OECD’s efforts to bring together all the Eurasia countries, engaging them in peer review processes that facilitate policy learning and the dissemination of good practices. As Co-chair of the OECD Eastern Europe and South Caucasus Initiative, we welcome the close alignment between OECD work in the region and the priorities of the EU’s Eastern Partnership, as well as the OECD’s promotion of international standards and best practices in social, economic and environmental policy and governance.” Aleksander Surdej, Ambassador and Permanent Representative of Poland to the OECD, Vice-Chair of the OECD Eurasia Competitiveness Roundtable and Co-Chair of the OECD Eastern Europe and South Caucasus Initiative

OECD GUIDELINES FOR MULTINATIONAL ENTERPRISES

Guide for National Contact Points on Recommendations and Determinations

mneguidelines.oecd.org/responsible-business-conductmatters SCAN TO READ THE REPORT

18 . ACTIVE WITH EURASIA


SUSTAINABLE GROWTH

Fostering development

The OECD helps Eurasia countries reconcile economic, social and environmental objectives to ensure that their development path is sustainable and that citizens’ lives improve.

thematic dialogue on Sovereign Wealth Funds and Strategic Investment Funds, which looked at how these investment funds can support the low-carbon transition by greening their portfolios and mobilising private capital for green investments.

Kazakhstan joined the OECD Development Centre in January 2015 and undertook a Multi-dimensional Country Review (MDCR), an OECD tool that identifies binding development constraints and supports the design of policies and strategies which promote an integrated approach to development that addresses such issues as equity, environmental quality and well-being, as well as economic growth. The initial assessment of the MDCR of Kazakhstan, launched in 2016, describes the driving forces of development and identifies the major constraints to equitable and sustainable growth and well-being. The indepth analysis, launched in 2017, analyses the key issues for the country’s development.

The PDNR, in which Mongolia also participates, offers an intergovernmental platform for peer learning and knowledge sharing, where OECD and non-OECD countries, in consultation with extractive industries and civil societies, craft innovative and collaborative solutions for resourcebased development.

www.oecd.org/development/mdcr/about www.oecd.org/development/mdcr/countries/kazakhstan www.oecd.org/dev/natural-resources.htm

Kazakhstan has been co-chairing the OECD Policy Dialogue on Natural Resource-based Development (PDNR) since 2013, with a particular focus on how to manage resource revenues effectively and translate them into concrete development gains that will outlast non-renewable resource extraction. In 2019, Kazakhstan chaired the

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Kazakhstan has embarked upon an ambitious reform agenda to realise its aspiration of becoming one of the top 30 global economies by 2050. The country’s economy and society have undergone deep transformations since independence. To sustain economic progress, overcome recent difficulties, and drive improvements in well-being to realise its aspirations, Kazakhstan will need to address a number of challenges to ensure its economy becomes more productive and diverse, and is sufficiently flexible and resilient in the face of an ever-shifting external environment. This next stage of economic transformation will require continuing reforms. This report discusses policy actions to address four key obstacles to development in Kazakhstan, identified in Volume 1 of this review. It presents in-depth analysis and recommendations to improve the economy’s resilience through diversification, to mobilise financing for development, to transform the role of the state in the economy, including through privatisation, and to improve the effectiveness of environmental regulations.

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The OECD Development Pathways series helps developing and emerging economies to identify innovative policy solutions to their specific development challenges. Higher levels of well-being and more equitable and sustainable growth cannot be achieved by merely reproducing the experience of industrialised countries. For each of the countries studied, the series proposes options for action in specific policy areas and at the broader strategic level. It identifies the binding constraints to development across all sectors and proposes whole-of-government solutions.

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VOLUME 2. in-DEPTH AnALYsis AnD RECOMMEnDATiOns

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SUSTAINABLE, BALANCED AND INCLUSIVE GROWTH . 19


Measuring green growth

The Eurasia region faces particularly daunting environmental challenges, not least the legacies of the communist past. Yet, partly for this reason, they also have significant green growth potential. For more than a quarter-century, the OECD has been helping the region develop better green growth instruments and measurement tools to secure a more sustainable future.

Recent initiatives include: l Pilot projects to establish green growth indicators in

Azerbaijan, Kazakhstan and Moldova, based on the OECD Green Growth Indicators. l Support for the adoption of new analytical tools, such as

the System of Environmental Economic Accounting, that would permit governments to factor the costs of natural capital depletion into their decision making.

Green Transformation in Azerbaijan National Report Based on the OECD Set of Green Growth Indicators

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MEASURING THE GREEN TRANSFORMATION OF THE ECONOMY - GUIDE FOR EU EASTERN PARNERSHIP COUNTRIES

wwww.oecd.org/greengrowth/ www.oecd.org/environment/outreach/GREEN-Action-TaskForce

MEASURING THE GREEN TRANSFORMATION OF THE ECONOMY GUIDE FOR EU EASTERN PARTNERSHIP COUNTRIES

This project This project is funded is funded byEuropean the European by the UnionUnion

November 2016

20 . ACTIVE WITH EURASIA


SUSTAINABLE GROWTH

Welfare costs of premature deaths from exposure to ambient PM2.5, GDP equivalent % of GDP 14

12 UKR, 11.7

10 BEL, 8.9

8

ARM, 7.8 EECCA, 6.8 MDA, 6.5 GEO, 6.2

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TAJ, 3.2 KAZ, 3.1 KGZ, 3.0 OECD Total – 3.0

1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: OECD data

SUSTAINABLE, BALANCED AND INCLUSIVE GROWTH . 21


Better data for better policies

l implementation of Green Growth and Sustainable

The OECD maintains comprehensive databases of internationally comparable statistics to support its analytical and policy work. In addition, it develops and promotes international statistical standards, while coordinating statistical activities with other international organisations.

Development Indicators; and l participation in the OECD’s Better Life Initiative, which

takes a multi-dimensional approach to well-being. The 2019 edition of Revenue Statistics in Asian and Pacific Economies, prepared in collaboration with the Asian Development Bank, the Pacific Island Tax Administrators Association and the Pacific Community, covers 17 jurisdictions, including Kazakhstan. It provides comprehensive, detailed and comparable tax revenue data as well as analysis of tax revenues trends.

Eleven Eurasia countries participate in regular meetings organised jointly by the OECD and UNECE, in particular the Joint OECD–UNECE Seminar on Implementation of the System of Environmental Economic Accounting and the Group of Experts on National Accounts. In 2016, Kazakhstan became a Participant in the Committee on Statistics and Statistical Policy (CSSP). OECD work in the country has deepened recently in the following areas:

All Eurasia countries are included in the 2014 and 2018 editions of the Social Institutions and Gender Index, which measures gender-based discrimination in social institutions.

l development of national accounts and implementation of

the 2008 System of National Accounts;

oe.cd/revenue-statistics-in-asia-and-pacific www.genderindex.org www.oecd.org/statistics/better-life-initiative.htm

l implementation of the 2012 System of Environmental

Economic Accounts;

2019

Revenue Statistics in Asian and Pacific Economies Revenue Statistics in Asian and Pacific Economies

1990-2017

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1990-2017

2019

22 . ACTIVE WITH EURASIA


SUSTAINABLE GROWTH

Supporting SME development and entrepreneurship Entrepreneurship and SME growth are critical to private-sector development in the region, as well as to job creation and the diversification of production and exports. For almost a decade, the six Eastern partner countries (Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine) have taken part in the Small Business Act for Europe (SBA) assessment, carried out by the OECD together with the EU, the EBRD and the European Training Foundation. The results are published in the SME Policy Index: Eastern Partner Countries series (2012, 2016, 2020), which identifies priorities for further reform, allows for cross-country comparisons and measures convergence towards EU and OECD SME policy standards. The third edition looks for the first time at the overall business environment, with a focus on competition, contract enforcement and business integrity, which are crucial to creating a healthy environment for SMEs and new firms.

“Since 2017 the co-operation between Ukraine and the OECD has strengthened in the area of small and medium-sized enterprises (SMEs). As a result, Ukraine has received a number of analytical and expert recommendations on SME policy formulation and implementation leading to specific initiatives such as the approval of our SME Development Strategy and Action Plan. OECD recommendations will further guide the government in the development of its policies and in its provision of new opportunities and support programmes to entrepreneurs.� Dmytro Romanovych, Deputy Minister for Economic Development, Trade and Agriculture of Ukraine

The OECD SME and Entrepreneurship Policy Review of Kazakhstan, published in 2018, highlights the progress Kazakhstan has made in improving its business environment, generating new start-ups and increasing its stock of SMEs.

SUSTAINABLE, BALANCED AND INCLUSIVE GROWTH . 23


Supporting SME development and entrepreneurship

The OECD also supports competitiveness and business environment reforms in the Eastern Partner countries through the project EU4Business: From Policies to Action. The OECD helped governments preparing SME strategies and action plans, designing results-based monitoring systems, and strengthening public-private dialogue. In 2018, the OECD completed a study of FDI-SME linkages to support economic diversification and SME development in Azerbaijan. Armenia and Ukraine have also closely worked with the OECD to improve the production, analysis and dissemination of harmonised business statistics. All six countries co-operate with the OECD on policies and practices to “green” SMEs and strengthen those SMEs that can provide environmental goods and services.

www.oecd.org/cfe/smes www.oecd.org/cfe/leed/trentocentre.htm www.oecd.org/eurasia/competitiveness-programme/ eastern-partners

Eastern Partner countries continue to make significant progress in further strengthening institutional frameworks for SME development 2016

2020

A - Institutional and regulatory framework

E - Green economy E - Innovation policy E - Business Development Services

5 4.5 4 3.5 3 2.5 2 1.5 1

A - Operational environment A - Bankruptcy and second chance B -Entrepreneurial learning / women’s entrepreneurship

DInternationalisation

B - SME skills

D - Standards and regulation

C - Access to finance D - Public procurement

Source: SME Policy Index: Eastern Partner Countries 2020, OECD, Paris.

“Azerbaijan is determined to further strengthen its economy and promote sustainable development. We highly appreciate the opportunity to benefit from OECD expertise in SME development, green growth and taxation. Future collaboration with the OECD in a wide range of areas, such as investment, corporate governance and economic diversification will contribute to our efforts on onward economic development of Azerbaijan and increase our integration with the OECD countries.” Mikayil Jabbarov, Minister of Economy, Azerbaijan

24 . ACTIVE WITH EURASIA

“In the last 10 years, OECD support has been crucial in guiding the development and implementation of policies that support small and medium-sized enterprises (SMEs) in Moldova. OECD tools such as the SME Policy Index help us learn from one another and guide our efforts to improve the business environment.” Mr Anatol Usatîi, Minister of Economy and Infrastructure of the Republic of Moldova


SUSTAINABLE GROWTH

OF THE sMALL bUsinEss ACT

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AssEssinG THE iMPLEMEnTATiOn OF THE sMALL bUsinEss ACT FOR EUROPE

OECD

Compendium of Enterprise Statistics in Armenia 2018

Compendium of Enterprise Statistics in Ukraine 2018

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AssEssinG THE iMPLEMEnTATiOn OF THE sMALL bUsinEss ACT FOR EUROPE

7/8b45614b-en.

sME Policy index

Eastern Partner Countries

– Assessing the Implementation of the Small Business s and monitor progress in the design and implementation tice. It is structured around the ten principles of the Small ange of pro-enterprise measures to guide the design s the third edition in this series, following assessments w of the state of play in the implementation of the ten 16. It also identifies remaining challenges affecting SMEs s recommendations to address them based on EU dition also features a novelty: An assessment of three new on, contract enforcement and business integrity) looking ablishing a level playing field for enterprises of all sizes

sME Policy index

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AZERBAIJAN DRIVING DIVERSIFICATION THROUGH STRENGTHENED ENTREPRENEURSHIP

In 2016, the Government of Azerbaijan adopted the Strategic Road Map on Production of Consumer Goods at the Level of Small and Medium Enterprises in the Republic of Azerbaijan (SME Roadmap) to promote SME development and stimulate economic diversification. In this context, the Ministry of Economy requested the OECD’s support for implementing the SME Roadmap. This Policy Insights report focuses on supporting SMEs through the newly established Agency for the Development of Small- and Medium-Sized Enterprises (SME Agency), increasing SME access to alternative sources of finance, improving private sector engagement in policy making, and establishing a results-based monitoring system for the SME Roadmap. The main beneficiaries of this project are the Ministry of Economy, the Centre for Analysis of Economic Reforms and Communication, and the SME Agency as well as other SME stakeholders involved in the implementation and monitoring of Azerbaijan’s SME Roadmap.

www.oecd.org/eurasia

This project is funded by the European Union

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Environmental Policy Toolkit for SME Greening in EU Eastern Partnership Countries

Environmental Policy Toolkit for SME Greening in EU Eastern Partnership Countries

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SME and Entrepreneurship Policy in Kazakhstan 2018

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SME and Entrepreneurship Policy in Kazakhstan 2018

Policy Insights

OECD Green Growth Studies POLICY INSIGHTS . AZERBAIJAN: DRIVING DIVERSIFICATION THROUGH STRENGTHENED ENTREPRENEURSHIP

the government in creating a clear vision and structures ajor improvements in business regulations and through the gramme offering direct supports to SMEs and entrepreneurs in highlights the current challenge of doing more to strengthen SMEs and new enterprises, and makes a range of specific her building the incubator and Entrepreneurship Support ort for high-growth potential enterprises, and stimulating stors.

OECD Studies on SMEs and Entrepreneurship

OECD Green Growth Studies

ve to substantially increase the contribution of SMEs and the economy. Although there are large numbers of SMEs rowth will require a step change in the productivity of existing -sized and growth-oriented firms.

OECD Studies on SMEs and Entrepreneurship

epreneurship

ship Policy in Kazakhstan

GLOBAL RELATIONS

Eurasia Competitiveness Programme

SUSTAINABLE, BALANCED AND INCLUSIVE GROWTH . 25


Promoting sound competition

Fostering competition is a critical priority in Eurasia, not least because concentrated industrial structures and weak conditions for competition were among the enduring legacies of the old system of central planning. The OECD supports a wide range of activities to advance competition law and policy reform in the region to stimulate productivity and innovation for the benefit of consumers.

As part of the Ukraine Action Plan, the OECD in 2017 conducted a follow-up monitoring review of Ukraine’s competition law and policy, taking as a baseline the competition work previously done by the OECD and other international partners in Ukraine. The OECD also organised a panel session on the occasion of the 2018 Competition Day of Ukraine.

The OECD-GVH Regional Centre for Competition in Budapest (RCC) is a joint initiative of the OECD and the Hungarian Competition Authority (GVH). It disseminates best practices in competition law and policy to 18 nonmembers, including Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova and Ukraine. Since 2018, the Eurasian Economic Commission also participates in RCC seminars. The RCC also facilitates networking and international co-operation among the beneficiary countries.

The Eurasia Antitrust Forum 2018 in Almaty was held with the support of the OECD.

www.oecd.org/competition/oecd-gvhregionalcentrefor competitioninbudapest www.oecd.org/competition/globalforum/

Georgia, Kazakhstan, Mongolia and Ukraine participate in the annual OECD Global Forum on Competition, and both Kazakhstan and Ukraine have undergone OECD reviews of competition law and policy. In 2017, OECD Eurasia Week in Almaty included a plenary session on “Improving competition in Eurasia to foster productivity and economic growth”. A side meeting with representatives of the competition agencies of Belarus, Georgia, Kazakhstan, Moldova, Ukraine and Uzbekistan was also organised to discuss approaches to competition advocacy in Eurasia.

OECD Reviews of Competition Law and Policy

UKRAINE 2016

2016

A Peer Review Ukraine-Reviews-of-Competition-Law-and-Policy.indd 1

Конкурентное право и политика в Казахстане

Competition Law and Policy in Kazakhstan

Competition Law and Policy in Kazakhstan

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Экспертный обзор

Конкурентное право и политика в Казахстане

2016

26 . ACTIVE WITH EURASIA

15-Feb-2017 10:59:14 AM


SUSTAINABLE GROWTH

Enhancing the investment environment

Investment policy reform and international investment co-operation are central to the OECD’s effort to help Eurasia countries integrate into the global economy. In 2017, Kazakhstan and Ukraine adhered to the OECD Declaration on International Investment and Multinational Enterprises following successful Investment Policy Reviews. The reviews, conducted as part of the adherence process, assessed their ability to meet the obligations under the Declaration, as well as progress since earlier Investment Policy Reviews.

the legal environment for business, adapting the OECD’s Policy Framework for Investment to local conditions and incorporating the countries into a number of OECD indicator systems. The project addresses the policy barriers that confront both domestic entrepreneurs and foreign investors in the region.

www.oecd.org/investment/fdiindex “Ukraine appreciates its fruitful collaboration with the OECD in shaping its reform process to reinforce institutional capacities, foster innovation and create business opportunities. The OECD offers a unique platform to exchange policy learnings and use internationallyrecognised standards to attract further investments and eventually benefit the

Nine Eurasia countries have been included in the calculation of the OECD Foreign Direct Investment Regulatory Restrict­ iveness Index, which benchmarks statutory restrictions on foreign investment, including screenings and other discrim­ inatory approval procedures that may limit inward FDI flows. The OECD Eurasia Competitiveness Programme’s Central Asia Initiative is working with Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan on improving

economy and society.” Yuliya Kovaliv, Deputy Head of the Office of the President of Ukraine

“We are currently working with the OECD on an Investment Policy Review which allows us to take a holistic view of our investment climate and identify actions for attracting more FDIs. Further strengthening our co-operation with the OECD is of strategic importance to us, not least to help us fulfil our commitments under the EU association agenda.” Natia Turnava, Minister of Economy and Sustainable Development, Georgia

J Eurasia Week 2017, OECD Eurasia Business Forum Opening Panel:

Zhenis Kassymbek, Minister of Investments and Development, Kazakhstan; Natalia Khanjenkova, Managing Director for Central Asia and Russia, EBRD; Frédéric Jenny, Professor of Economics, ESSEC; and Sabine Zigelski, Senior Competition Expert, OECD. A SUSTAINABLE AND INCLUSIVE GROWTH AGENDA . 27


Improving financial literacy and financial inclusion

Since 2017, the OECD and its International Network for Financial Education (INFE) have been working to provide policy guidance and assistance on financial literacy and inclusion to Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan and Tajikistan. This project focuses on bringing these countries closer to OECD/INFE policies and practices on the design, implementation and evaluation of effective financial education policies as a complement to financial consumer protection and inclusion approaches. The OECD project team, drawing on INFE’s extensive wide expertise in the field as a global network with wide membership, has extended support to policy makers in the region in four main areas: l Data collection and analysis of financial literacy levels

and gaps: a quantitative survey was carried out in 2017 across the six participating countries using the OECD/ INFE Toolkit. Its results were summarised in Levels of Financial Literacy in Eurasia (2018).

l Identifying and meeting the financial literacy needs of

migrants and their families: the OECD has produced a regional report on the financial literacy needs and gaps of migrants and their families in Eurasia (forthcoming, 2020). It aims to raise awareness of these important issues in a region where migration and remittances are important economic factors, and to propose policy solutions to support the design of effective financial education programmes tailored to the needs of migrants and their families. Throughout the project, the OECD has been actively promoting knowledge sharing via high-level conferences and technical workshops. Regional events bring together Eurasia representatives alongside other major international financial education stakeholders. These meetings have fostered the emergence of a financial education and inclusion community in the region, which is now working together – and with the OECD – to promote financial literacy in the region.

l Developing, implementing and reviewing effective

national strategies for financial education: the OECD has produced Mapping reports and Roadmaps / Action Plans for the preparation of national strategies for financial education for each of the participating countries. It is helping Armenia to build evaluation tools for financial education in schools, Kyrgyzstan to develop core competencies for the financial education of youth, and Tajikistan to prepare its first national strategy for financial education. l Addressing financial literacy needs of youth through

schools and out-of-school initiatives: the OECD is finalising a Policy Handbook for Financial Education in Schools and for Youth in Eurasia (forthcoming, 2020) to provide advice, recommendations and good practice casestudies. 28 . ACTIVE WITH EURASIA

The OECD/INFE has also increased its engagement with countries of the region, including Afghanistan and Mongolia. The Bank of Mongolia joined the network in 2017 and has been a regular participant in its events since. www.oecd.org/education/financial-education-cis.htm


PUBLIC GOVERNANCE

PUBLIC GOVERNANCE . 29


Delivering better public services and regulation

Since 1991, Eurasia countries have had to create new institutions adapted to the needs of market economies and to overhaul the structures inherited from the old system. OECD work on public governance helps them find ways to improve the quality of regulation and the delivery of public goods and services to citizens and firms.

governance, such as managing the budget process and ensuring the effectiveness of budget programme implementation and evaluation. The OECD also completed a Public-Private Partnership (PPP) Review of Kazakhstan in 2019. The Review assesses Kazakhstan’s PPP governance framework against the OECD Principles for Public Governance of PPPs and best country practices, and identifies its strengths and challenges.

Each year, the OECD convenes a meeting of Senior Budget Officials from Central, Eastern and Southeastern Europe to discuss budgeting and public financial management issues across the region. Armenia, Belarus, Georgia, Moldova, Kazakhstan, Ukraine and Uzbekistan participated in the 2019 meeting in Minsk. Budgeting in Kazakhstan: A Roadmap for Continued Budgetary Governance Reform was published in 2019. The review provides an action-oriented Roadmap of Budgetary Governance Reform to assist the Kazakh authorities in designing reforms for the medium term. Kazakhstan is seeking to align itself with best international practice across the various dimensions of budgetary

Together with the EBRD, the World Bank and other partners, the OECD has been helping Kazakhstan reform its public procurement system using the Methodology for Assessing Procurement Systems. In addition, a review of Public Procurement in Kazakhstan was finalised in late 2019, supported by a series of workshops to provide practical guidance for procurers on improving the efficiency and effectiveness of public procurement.

OECD Public Governance Reviews Public Procurement in Kazakhstan REFORMING FOR EFFICIENCY

30 . ACTIVE WITH EURASIA

OECD Public Governance Reviews

Public Procurement in Kazakhstan REFORMING FOR EFFICIENCY

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GOVERNANCE

Towards more open government

The government of Kazakhstan has been working to enhance open government principles in its policy-making cycle to strengthen public trust in government and improve the quality of public services. The OECD Recommendation on Open Government, adopted by the Council in 2017, defines 10 actionable, evidence-based provisions to support the design and implementation of successful open government agendas. Built on the open government principles of transparency, integrity, accountability and stakeholder participation, the Recommendation promotes a comprehensive approach to reform efforts that aims to foster a new culture of governance. It also seeks to maximise the impact of open government strategies and initiatives on citizens’ lives. In 2017, the OECD conducted an Open Government Review of Kazakhstan, assessing the country’s efforts to ensure the success and long-term sustainability of its ongoing open government reforms. To support the implementation of the recommendations made in the 2017 Review, the OECD provided proposals on how the institutional structure and functioning of Kazakhstan’s Commission on Access to Information could be reformed to better align with OECD standards. The OECD has additionally provided support to

OECD Public Governance Reviews

The Kazakhstan Commission on Access to Information The report assesses the enforcement of the Republic of Kazakhstan’s law on access to information with a focus on the practices of the Kazakhstan Commission on Access to Information. It benchmarks the Commission’s mandate and functions against those of similar access-to-information oversight bodies in OECD countries. The report compares the legal nature and the institutional structure of these institutions, focusing on the availability and effectiveness of appeal mechanisms. It proposes ways to align the Commission with similar bodies in OECD countries by adopting good practices or revising current legislation.

9HSTCQE*bidbaa+

OECD Public Governance Reviews

OECD Public Governance Reviews

Transparent & inclusive stakeholder participation through public councils in Kazakhstan In Kazakhstan, over 200 public councils at national, regional and local levels provide a platform for civil society to voice its opinion on important social issues. This report analyses the legal and policy framework for stakeholder participation in Kazakhstan, and compares public councils’ current practices against the requirements set out in regulations. It proposes practical recommendations to improve the legitimacy, transparency and inclusiveness of public councils in carrying out their duties. Recommendations are supported by good practices in both OECD and other countries that enable, improve and innovate stakeholder participation.

The Kazakhstan Commission on Access to Information

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Consult this publication on line at http://dx.doi.org/10.1787/?????????????-en. This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

ISBN 978-92-64-00000-0 00 0000 00 0P

OECD Public Governance Reviews

Transparent & inclusive stakeholder participation through public councils in Kazakhstan

Transparent & inclusive stakeholder participation in Kazakhstan

ISBN 978-92-64-00000-0 00 0000 00 0P

The Kazakhstan Commission on Access to Information

Towards an Open Government in Kazakhstan

Consult this publication on line at http://dx.doi.org/10.1787/?????????????-en. This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

www.oecd.org/gov/open-government/ www.oecd.org/gov/publicgovernancereviews.htm www.oecd.org/gov/regulatory-policy www.oecd.org/gov/public-procurement www.mapsinitiative.org

OECD Public Governance Reviews

Towards an Open Government in Kazakhstan

OECD Public Governance Reviews

OECD Public Governance Reviews

OECD Public Governance Reviews

Kazakhstan on improving the governance of public councils as mechanisms for strengthening the participation of stakeholders in the policy cycle.

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PUBLIC GOVERNANCE . 31


Delivering better quality public services

The SIGMA Programme, a joint initiative of the OECD and the European Union which has been active for over 25 years, works with Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine to strengthen the foundations for improved public governance and build the capacities of the public sector. To support the dialogue on public administration reform in countries neighbouring the EU, SIGMA has developed The Principles of Public Administration: A Framework for ENP Countries, together with a detailed Methodological Framework.

Public financial management, external audit and public procurement Strategic framework of public administration

Service delivery

Policy development and co-ordination

Accountability

The Principles were developed by SIGMA in close cooperation with the European Commission to define detailed requirements for a well-functioning public administration in each of the following core areas:

Public service and human resource management

strategic framework of public administration reform; policy development and co-ordination; l public service and human resource management; l accountability; l service delivery; and l  public financial management, including public procurement and external audit. l l

SIGMA works closely with key stakeholders in the countries on the design and implementation of governance reforms, providing recommendations for improving laws and administrative arrangements, policy papers and multi-country comparative studies, as well as opportunities to share good practice from a wide range of countries. SIGMA is working on various aspects of public administration reform in its partner countries in the region.

www.sigmaweb.org 32 . ACTIVE WITH EURASIA

N 2017, THE NUMBER

The Principles of Public Administration Strategic Framework of Public Administration Reform

Baseline Measurement Report

UKRAINE JUNE 2018

The Principles of Public Administration Policy Development and Co-ordination

BASELINE MEASUREMENT REPORT

GEORGIA MAY 2018

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GOVERNANCE

Tackling tax avoidance and evasion

Eurasia countries are involved in the global fight against tax avoidance and evasion, through the Base Erosion and Profit Shifting (BEPS) Project, the work on transparency and exchange of information for tax purposes and through capacity building initiatives. Five Eurasia countries¹ are members of the Inclusive Framework on BEPS. As such, they work on an equal footing to implement the agreed measures to address multinational enterprises’ aggressive tax planning. Georgia is also a member of the Inclusive Framework’s Steering Group, giving the strategic orientations to the work. l

l

 Armenia, Georgia, Kazakhstan and Ukraine have signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS, and Georgia and Ukraine have ratified it.  Kazakhstan, Mongolia and Ukraine also benefit from the technical assistance focused on implementation of BEPS recommendations as a part of the Induction Programme to BEPS, which includes assistance with policy design as well as with legal drafting of the relevant primary laws and regulations to implement measures aimed at protecting tax base and preventing tax avoidance.

In addition, Eurasia countries are involved in a variety of ways in the OECD’s efforts to promote tax transparency and compliance. l

 Seven Eurasia countries² are among the 157 members of the Global Forum on Transparency and Exchange of Information for Tax Purposes, which is the biggest international body for ensuring the implementation of

1. Armenia, Georgia, Kazakhstan, Mongolia and Ukraine 2. Armenia, Azerbaijan, Georgia, Kazakhstan, Moldova, Mongolia and Ukraine

the internationally agreed standards of transparency and exchange of tax information. l

 Six Eurasia countries³ participate in the OECD/Council of Europe Convention on Mutual Administrative Assistance in Tax Matters, the most comprehensive instrument available for all forms of tax co-operation.

l

 Azerbaijan is the first Eurasia country to adopt the OECD’s Common Reporting Standard. Kazakhstan made the commitment for Automatic Exchange of Information (AEOI) by 2020. It is expected that others will follow suit; Armenia and Mongolia have participated in an Induction Programme of the Global Forum which includes an AEOI component.

Officials from Azerbaijan and Ukraine have participated in trainings on tax and financial crimes held at the OECD Academy for Tax Crime Investigation in Ostia, Italy. Armenia, Georgia and Ukraine also benefit from the OECD/ UNDP’s Tax Inspectors Without Borders programmes, aiming at building capacity through on-field technical support, whilst Mongolia benefits from general audit and mining-industry specific capacity building. “Our participation in wider global initiatives, like the OECD/G20 BEPS initiative, which combats cross-border tax avoidance, marks a further strengthening of our involvement in international economic governance.” Madina Abylkassimova, Chair of the Agency on Regulation and Development of the Financial Market, Kazakhstan

3 Armenia, Azerbaijan, Georgia, Kazakhstan Moldova and Ukraine

PUBLIC GOVERNANCE . 33


Tackling tax avoidance and evasion

All Eurasia countries can attend trainings at the OECD Multilateral Tax Centres (MTCs) (Ankara, Budapest, China, Korea, Mexico or Vienna) , which together hold around 25 events per year on international tax topics such as transfer pricing, international tax avoidance, tax treaties and tax administration. In the last four years over 150 tax officials from Eurasia countries participated in events organised at the MTCs.

www.oecd.org/ctp/beps www.oecd.org/tax/transparency www.tiwb.org

Oksana Markarova, Minister of Finance of Ukraine

34 . ACTIVE WITH EURASIA

Global Forum on Transparency and exchanGe oF InFormaTIon For Tax purposes

Peer Review Report on the Exchange of Information on Request

KazaKhstan 2018 (second round) Peer review rePort on the exchange of information on request KazaKhstan 2018

“Ukraine has confirmed its determination to introduce international best practices in economic reforms, many of which are envisaged in the Association Agreement between Ukraine and the EU. We continue working to increase the efficiency of the tax administration with the aim of reducing tax gaps, increasing tax compliance, and ensuring a level playing field in this sphere in line with OECD standards. The Ministry of Finance benefits from participation in the Tax Inspectors without Borders Programme and is making progress in the introduction of transfer pricing regulation. In 2020, we will start the implementation of the Base Erosion and Profit Shifting (BEPS) package. These policies will result in the much-needed ‘de-oligarchisation’ of the Ukrainian economy.”

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GOVERNANCE

Enhancing anti-corruption and integrity

The OECD Anti-Corruption Network for Eastern Europe and Central Asia (ACN) brings together 25 countries from Estonia to Mongolia to promote anti-corruption reforms, elaborate good practices and exchange information. Since its launch in 1998 as an awareness raising initiative, the ACN has grown into a strong initiative with measurable impact on anti-corruption policies and practices in the region. Through its regional and country focused activities and robust, inclusive monitoring programme, the ACN helps its members reform anti-corruption laws, institutions and practices and brings them closer to the OECD standards. Since 2003, the ACN’s flagship programme, the Istanbul Anti-Corruption Action Plan, has conducted four rounds of comprehensive anti-corruption peer reviews of Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Mongolia, Tajikistan, Ukraine and Uzbekistan. From 2020, reviews will

be based on a novel concept, and a set of anti-corruption performance indicators. The ACN’s Law Enforcement Network, launched in 2010, supports exchange of experience as an informal group of law enforcement practitioners to carry out successful investigations using modern investigative tools and step-up enforcement of responsibility for corruption crimes. Since 2016, the ACN in co-operation with EBRD, has advanced the work on business integrity, raising awareness of companies, business associations and governments in the region through seminars, where the good practice and regional recommendations of the ACN have been disseminated. The Network has also conducted thematic studies and seminars on prevention of public sector corruption, as well as focusing on practical implementation and enforcement of prevention measures, at both sectoral and local levels.

OECD Integrity Scans help governments assess their legal, administrative and economic frameworks regarding integrity and the fight against corruption. PUBLIC GOVERNANCE . 35


Enhancing anti-corruption and integrity

The ACN also works at country level. For example, it helped design, launch and later build capacity of the National AntiCorruption Bureau (NABU) of Ukraine, one of the stronger and more effective anti-corruption bodies in that country. In particular: l

 The ACN developed tests and procedures to hire detectives and analysts of NABU.

l

 A training curriculum using case simulation approach developed in co-operation with partners has become core training for NABU.

l

OECD Anti-Corruption Network for Eastern Europe and Central Asia

Confiscation of instrumentalities and proceeds of corruption crimes in Eastern Europe and Central Asia

OECD Anti-Corruption Network for Eastern Europe and Central Asia

Prevention of Corruption in the Public Sector in Eastern Europe and Central Asia

 OECD helped NABU build its international networks and help with cases, strengthening its international image.

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The ACN has also assisted Kyrgyzstan and Uzbekistan in developing their law enforcement capacities.

OECD Integrity Scan of Kazakhstan PREVENTING CORRUPTION FOR A COMPETITIVE ECONOMY This series includes international studies and country-specific reviews of government efforts to make the public sector more efficient, effective, innovative and responsive to citizens’ needs and expectations. Publications in this series look at topics such as open government, preventing corruption and promoting integrity in the public service, risk management, illicit trade, audit institutions, and civil service reform. Country-specific reviews assess a public administration’s ability to achieve government objectives and preparedness to address current and future challenges. In analysing how a country's public administration works, reviews focus on crossdepartmental co-operation, the relationships between levels of government and with citizens and businesses, innovation and quality of public services, and the impact of information technology on the work of government and its interaction with businesses and citizens. This report looks at how to curb corruption and build a more competitive economy in the Republic of Kazakhstan by assessing four crucial factors: governance, prevention, detection, and prosecution and recovery. In its analysis, it draws on good international practices as well as OECD instruments and tools in 15 policy areas: regulatory governance, competition policy, public financial management, development co-operation, public sector integrity, public procurement, tax administration and transparency, export credits, lobbying, whistleblower protection, business sector integrity, criminalising bribery, civil society, and media. The report provides recommendations for improving Kazakhstan’s laws and policies as well as effectively implementing them in each of these areas.

This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

WINNER

ISBN 978-92-64-27287-3 42 2017 18 1 P

OECD Integrity Scan of Kazakhstan PREVENTING CORRUPTION FOR A COMPETITIVE ECONOMY

PREVENTING CORRUPTION FOR A COMPETITIVE ECONOMY

Consult this publication on line at http://dx.doi.org/10.1787/9789264272880-en.

OECD Public Governance Reviews

OECD Integrity Scan of Kazakhstan

OECD Integrity Scans help governments assess their legal, administrative and economic frameworks regarding integrity and the fight against corruption. In 2016 Kazakhstan became the first Eurasia country to conduct an Integrity Scan.

OECD Public Governance Reviews

OECD Public Governance Reviews

Afghanistan, Kazakhstan, Kyrgyzstan and Mongolia are also participants in the ADB/OECD Anti-Corruption Initiative for Asia and the Pacific, which provides an additional regional forum to discuss shared integrity challenges and ways to address them. The initiative covers law enforcement, public integrity and business integrity.

9HSTCQE*chcihd+

Fighting Corruption in Eastern Europe and Central Asia

Anti-corruption reforms in Uzbekistan 4th round of monitoring of the Istanbul Anti-Corruption Action Plan

www.oecd.org/corruption/acn anticorruption-integrity.oecd.org www.oecd.org/site/adboecdanti-corruptioninitiative

36 . ACTIVE WITH EURASIA

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GOVERNANCE

Advancing state-owned enterprise reform

The OECD works to ensure that state-owned enterprises operate in a sound competitive and regulatory environment to promote efficient and open markets at the domestic and international levels. It supports reforms in countries across the world, guided by the internationallyagreed OECD Guidelines on Corporate Governance of State-Owned Enterprises. Ukraine has undergone two reviews of its corporate governance reform of state-owned enterprises (SOEs), looking at the hydrocarbons and electricity sectors, with the aim of improving the country’s competitiveness on global markets and its energy security. The OECD reviews entail an evaluation of the corporate governance on the basis of the OECD Guidelines on Corporate Governance of State-Owned Enterprises (SOE Guidelines). This work resulted in tailormade policy recommendations for further improvement as well as an opportunity for Ukraine to work more closely with OECD members in further shaping its SOE reform. The SOE Guidelines give concrete advice to countries on how to manage their responsibilities as company owners more effectively, thus helping to make state-owned enterprises more competitive, efficient and transparent.

lines on Corporate Governance ned Enterprises, 2015 Edition

e Council on Guidelines on Corporate

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ises in the marketplace

of shareholders and other investors and responsible business

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elines

n line at http://dx.doi.org/10.1787/9789264244160-en. the OECD iLibrary, which gathers all OECD books, periodicals and

OECD Guidelines on Corporate Governance of state-Owned Enterprises, 2015 Edition

ons

OECD Guidelines on Corporate Governance of state-Owned Enterprises 2015 EDiTiOn

The OECD is also working on the corporate governance of SOEs in Belarus and Kazakhstan. The SOE Guidelines are available in Russian and Ukrainian.

www.oecd.org/corporate “Reform of state-owned enterprises is one of the government’s top priorities. Ukraine continues to implement the G20/OECD Principles of Corporate Governance in our largest companies. Naftogaz was the first company the government sought to reform, and now the reform is broadened to other state-owned enterprises. OECD assessment of our progress in this endeavour is very important for us. Positive impacts from this reform include reducing fiscal risks, strengthening competition and developing capital markets. Also it will positively affect work of the civil service, which will concentrate on policy making. We are happy to work with the OECD on this important matter. The OECD database of knowledge and experience of similar processes in other countries makes a significant contribution to our work.” Pavlo Kukhta, First Deputy Minister for Economic Development, Trade and Agriculture of Ukraine

Fighting Corruption in Eastern Europe and Central Asia

Anti-Corruption Reforms in Ukraine: Prevention and Prosecution of Corruption in State-Owned Enterprises 4th round of monitoring of the Istanbul Anti-Corruption Action Plan

State-Owned Enterprise Reform in the Hydrocarbons Sector in Ukraine

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org for more information.

isbn 978-92-64-24412-2 26 2015 06 1 P

PUBLIC GOVERNANCE . 37


Building a high-performing civil service

Kazakhstan has been working to develop a professional public workforce to improve the efficiency of its administration and the quality of its public services. The OECD partnered with the UNDP Astana Civil Service Hub to benchmark Kazakhstan’s strategic human resource management practices against those in OECD countries. Kazakhstan aims to increase the efficiency of the state apparatus, in line with its goal of becoming one of the 30 most developed countries in the world by 2050. An effective civil service built on the principles of merit and professionalism is an essential part of a high-performing public sector.

OECD Public Governance Reviews

Civil service modernisation is a key priority in Kazakhstan. This report uses the OECD's Survey on Strategic Human Resource Management (HRM) in central governments to examine how Kazakhstan’s practices compare against OECD countries in several strategic areas. It explores how Kazakhstan is looking at skills and competencies throughout the employment cycle; how performance and pay systems contribute to improving public service quality, accessibility and responsiveness; and the role leaders and managers play in the reform implementation process. The report suggests areas for further improvement to help Kazakhstan develop a professional, strategic and innovative civil service.

The report is the first outcome of an ongoing partnership between the OECD and the UNDP Astana Civil Service Hub.

OECD Public Governance Reviews

The report Benchmarking Civil Service Reform in Kazakhstan presents comparable data on a range of policies and practices in critical strategic human resource management areas (HRM). The study is based on the OECD survey on strategic HRM in Central/Federal Governments, completed by senior officials in Kazakhstan and members of the OECD Public Employment and Management Working Party. The analysis shows that while Kazakhstan shares many concerns and strategic priorities for reform with OECD countries, ensuring that these reforms are well Benchmarking Civil Service Reform in Kazakhstan implemented will be a key challenge for the future.

OECD Public Governance Reviews

Benchmarking Civil Service Reform in Kazakhstan

oe.cd/pem

This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

iSBn 978-92-64-28808-9 42 2017 55 1 P

9HSTCQE*ciiaij+

38 . ACTIVE WITH EURASIA

Benchmarking Civil Service Reform in Kazakhstan

Consult this publication on line at http://dx.doi.org/10.1787/9789264288096-en.

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GOVERNANCE

Improving resilience to critical risks

The climate and topography of the Eurasia region exposes its populations to various natural hazards. The OECD’s High Level Risk Forum has completed a risk governance scan of Kazakhstan’s disaster risk management policies that analyses the coherence and co-ordination of risk governance consistent with the 2014 OECD Council Recommendation on the Governance of Critical Risks. The process entailed working with disaster-risk management stakeholders from across central government institutions, regional authorities, the private sector, academia and civil society organisations to formulate and test inclusive recommendations meant to strengthen the governance of disaster risk management policies in Kazakhstan. The Risk Governance Scan of Kazakhstan provides recommendations to improve national resilience through better risk governance policies.

OECD Reviews of Risk Management Policies

This report presents the governance framework in Kazakhstan for managing disaster risks. A wide range of disaster risks are present throughout the national territory, primarily floods, landslides, avalanches, but also extreme cold and heatwaves. The report reviews how the central government sets up a national strategy to manage these disaster risks, and how a national risk governance framework is formulated and executed. It examines the role of the private sector and other non-governmental actors in contributing to resilience at a national and subnational level.

www.oecd.org/gov/risk

This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

Risk Governance Scan of Kazakhstan

Consult this publication on line at https://doi.org/10.1787/cb82cae9-en.

OECD Reviews of Risk Management Policies

The OECD’s High Level Risk Forum helps countries improve risk governance across a full range of disaster risk management policies, from prevention and preparedness to response and recovery. Good risk governance involves a national co-ordinated and coherent strategy, decisionRisk Governance of Kazakhstan making processes that are transparent and Scan inclusive, accountable and adaptable.

OECD Reviews of Risk Management Policies

Risk Governance Scan of Kazakhstan

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ISBN 978-92-64-78004-0

9HSTCQE*hiaaea+

PUBLIC GOVERNANCE . 39


Supporting the digital transformation of the public sector Faced with the enormous social and economic challenges and opportunities presented by digitalisation, governments in Eurasia are rethinking their roles, scope of action and ways of working in order to drive a sound digital transformation of their public sectors.

collaboration with the OECD Korea Policy Centre and the Academy of Public Administration under the President of Uzbekistan. The workshop aimed at sharing OECD best practices on digital government, data governance in the public sector and open government data.

The 2014 OECD Recommendation on Digital Government Strategies comprises 12 recommendations to support the integration of decisions on digital government in public sector reform strategies. The Recommendation helps governments to make the most of digital technologies. It promotes a holistic approach that recognises the use of technology and data as tools that can help in the design and delivery of public services and public policies with a focus on the creation of benefits for citizens.

Building on the active relationship with the Astana Civil Service Hub, the OECD is a member of the Peer-to-Peer Learning Alliance on the Development of Electronic Government Development. The alliance brings together representatives of Armenia, Azerbaijan, Estonia, Georgia, Kazakhstan, Kyrgyzstan, Uzbekistan and OECD to share practices and expand co-operation for the digital transformation of the public sector through a peer-to-peer approach.

In line with the above, the OECD organised a workshop on 24 and 25 September 2019 in Tashkent, Uzbekistan in

www.oecd.org/gov/digital-government

J Workshop “Towards a Digitally Transformed Service Delivery in Uzbekistan”, Tashkent, Uzbekistan. 24 – 25 September, 2019. 40 . ACTIVE WITH EURASIA


ENVIRONMENT, ENERGY AND TRANSPORT ENVIRONMENT, ENERGY AND TRANSPORT . 41


GREEN Action Task Force

The OECD works with governments across the region to strengthen environmental protection and promote green growth. With 25 years of experience in the Eurasia region, the OECD has built a strong reputation in the region for working closely with governments and other stakeholders on the ground and supporting reform implementation. This includes pilot projects to demonstrate how policies and tools can be applied in practice and building ownership and consensus on policy principles and good practices through analytical work. The Organisation has also facilitated cross-ministerial national policy dialogues on key aspects of green growth. Since the 2016 “Environment for Europe� Ministerial Conference in Batumi, the GREEN Action Task Force, for which the OECD serves as a secretariat, has served as a unique platform for interested countries and development co-operation partners to help Eurasia countries develop policies that improve environmental quality and social

well-being, while creating opportunities for strong economic growth and decent jobs. An important feature of the GREEN Action Task Force is the greater engagement across government, in particular the Ministries of Environment, Economy and Finance, in its work and the strategic partnerships with OECD bilateral donor agencies, the European Union, development finance institutions and international organisations like the UNECE, UN Environment and UNIDO. The Task Force helps to develop human capital in the region for policy development and implementation as well as exploit synergies with the wider resource and knowledge base of OECD member countries. It also ensures work streams are synergetic with political processes involving the countries, the European Union, and also the Environment for Europe Ministerial process.

www.oecd.org/environment/outreach/GREEN-Action-TaskForce

L GREEN Action Task Force meeting 2019, OECD Headquarters, Paris, France. 42 . ACTIVE WITH EURASIA


ENVIRONMENT & ENERGY

GREEN

ACTION TASK FORCE

ENERGY AFFORDABILITY, FISCAL AND ENVIRONMENTAL IMPACTS

Promoting Clean Urban Public Transportation and Green Investment in Kyrgyzstan This report discusses the main results of a project on how an influx of funds could spur development of cleaner public transport, and reduce air pollution and greenhouse gas (GHG) emissions in large urban centres in Kyrgyzstan, by providing an analysis for designing a green public investment programme in this sector. This sector represents an opportunity for Kyrgyzstan to address key objectives in its environmental and climate‑related policies as part of the country’s ambitions to transition to a green economic path of development. The investment programme is also designed to support the modernisation of the urban transport fleet in the country and stimulate the domestic market to shift to modern buses powered by cleaner fuels. The programme is foreseen to be implemented in two phases: the first covers the cities of Bishkek and Osh and the second extends to areas outside of the initial pilot city centres (pilot city suburbs as well as inter‑city transport). These investments are expected to result in significant environmental, public service and socio‑economic benefits.

Promoting Clean Urban Public Transportation and Green Investment in Kyrgyzstan

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OECD Green Growth Studies

Mining and Green Growth in the EECCA Region

Mining and Green Growth in the EECCA Region

This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

Green Finance and Investment

Promoting Clean Urban Public Transportation and Green Investment in Kyrgyzstan

Consult this publication on line at https://doi.org/10.1787/b6b91b9a-en.

OECD Green Growth Studies

Energy Subsidy Reform in the Republic of Moldova

Energy Subsidy Reform in the Republic of Moldova

oi.org/10.1787/9789264292833-en.

y, which gathers all OECD books, periodicals and statistical databases. mation.

Green Finance and Investment

Green Finance and Investment

Green Finance and Investment

ntal and social impacts of energy subsidy reform in Moldova with Reduced value added tax (VAT) rate on natural gas consumption eat consumption by domestic users represent the largest fossil-fuel ng these will imply an increase of the VAT rate, which will lead to an s for households, and will in turn affect household consumption levels, ility. If reform measures are to work, they will need to be accompanied otect poor households.

Green Finance and Investment

ent

form in the Republic of Moldova

FISCAL AND ENVIRONMENTAL IMPACTS

ISBN 978-92-64-39276-2 ISBN 978-92-64-29270-3 97 2018 02 1 P

9HSTCQE*cjchad+

This project is funded by the European Union

OECD Green Growth Studies

Extended

Addressing Industrial Air Pollution in Kazakhstan REFORMING ENVIRONMENTAL PAYMENTS POLICY GUIDELINES

Producer Responsibility in Kazakhstan

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Review and recommendations

REFORMING ENVIRONMENTAL PAYMENTS POLICY GUIDELINES

Environmental Policy Toolkit for SME Greening in EU Eastern Partnership Countries

Addressing Industrial Air Pollution in Kazakhstan

Environmental Policy Toolkit for SME Greening in EU Eastern Partnership Countries

OECD Green Growth Studies

OECD Green Growth Studies

OECD Green Growth Studies

9HSTCQE*djchgc+

September 2019

This project is funded by the European Union

GREEN

ACTION TASK FORCE

Green Finance and Investment

Green Finance and Investment

Promoting Clean Urban Public Transportation and Green Investment in Moldova

Promoting Clean Urban Public Transportation in Kazakhstan, Kyrgyzstan and Moldova

This report discusses the main results of a project on how an influx of funds could spur development of cleaner public transport, and reduce air pollution and greenhouse gas (GHG) emissions in large urban centres in Moldova, by providing an analysis for designing a green public investment programme in this sector. This sector represents an opportunity for Moldova to address key objectives in its environmental and climate‑related policies as part of the country’s ambitions to transition to a green economic path of development. The investment programme is also designed to support the modernisation of the urban transport fleet in the country and stimulate the domestic market to shift to modern buses powered by clean fuels. The programme is foreseen to be implemented in two phases: the first covers the cities of Chisinau and Balti and the second extends to areas outside of the initial pilot city centres (pilot city suburbs as well as inter‑city transport). These investments are expected to result in significant environmental, public service and socio‑economic benefits.

SUMMARY REPORT OF PROJECT IMPLEMENTATION 2016‑2019

Consult this publication on line at https://doi.org/10.1787/31925aae-en. This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

Green Finance and Investment

Promoting Clean Urban Public Transportation and Green Investment in Moldova

Promoting Clean Urban Public Transportation and Green Investment in Moldova

Access to Green Finance for SMEs in Georgia

Promoting Clean Urban Public Transportation in Kazakhstan, Kyrgyzstan and Moldova

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Green Finance and Investment

Access to Green Finance for SMEs in Georgia

Green Finance and Investment

Green Finance and Investment

Green Finance and Investment

ISBN 978-92-64-41962-9

9HSTCQE*ebjgcj+

ENVIRONMENT, ENERGY AND TRANSPORT . 43


Leveraging and diversifying financing for green investment Green Finance and Investment

Promoting Clean Urban Public Transportation and Green Investment in Kazakhstan

This report discusses the main results of a project on how to reduce air pollution from urban public transport in Kazakhstan, by providing an analysis for designing a green public investment programme in this sector. This sector represents an opportunity for Kazakhstan to address key objectives in its environmental and climate-related policies as part of the country’s ambitions to transition to a green economic path of development. The investment programme is also designed to support the modernisation of the urban transport fleet in the country and stimulate the domestic market to shift to modern buses powered by clean fuels. The programme is foreseen to be implemented in two phases: the first covers the cities of Kostanay and Shymkent and the second, all major urban centres in Kazakhstan. These investments are expected to result in significant air improvement.

Country-specific and regional activities include: l

 supporting reform of fossil fuel subsidies in Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine;

Consult this publication on line at http://dx.doi.org/10.1787/9789264279643-en. This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

Green Finance and Investment

Promoting Clean Urban Public Transportation and Green Investment in Kazakhstan

Promoting Clean Urban Public Transportation and Green Investment in Kazakhstan

Green growth means achieving economic growth while reducing pollution and greenhouse gas emissions, minimising waste and improving efficiency in the use of natural resources. This requires long-term investment and sustained financing. Public budgets have traditionally been an important source of green infrastructure financing. But given the strains on public finances, large-scale private investment will be needed for the transition towards a green economy. Governments have a key role to play in strengthening domestic policy frameworks to catalyse and mobilise private finance and investment in support of green growth. It is necessary to better align and reform policies across the regulatory spectrum to overcome barriers to green investment, and to provide an enabling environment that can attract both domestic and international investment. This OECD series on Green Finance and Investment provides policy analysis and guidance to scale up financing and investment in technologies, infrastructure and companies that will be critical in the transition to a low-carbon, climate-resilient and resource-efficient economy.

Green Finance and Investment

The OECD helps Eurasia countries to better use, leverage and diversify financing for green investments, including to address climate change mitigation and adaptation challenges.

Isbn 978-92-64-27963-6 97 2017 43 1 P

*5((1

  

9HSTCQE*chjgdg+

GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN

 analysing mechanisms for scaling up green investments and finance in Azerbaijan, Belarus, Georgia and Ukraine, including strengthening green lending by local financial institutions, mobilising private finance and facilitating access to international finance for green investments; Green Finance and Investment

Mobilising Finance for Climate Action in Georgia Green growth means achieving economic growth while reducing pollution and greenhouse gas emissions, minimising waste and improving efficiency in the use of natural resources. This requires long-term investment and sustained financing. Public budgets have traditionally been an important source of green infrastructure financing. But given the strains on public finances, large-scale private investment will be needed for the transition towards a green economy. Governments have a key role to play in strengthening domestic policy frameworks to catalyse and mobilise private finance and investment in support of green growth. It is necessary to better align and reform policies across the regulatory spectrum to overcome barriers to green investment, and to provide an enabling environment that can attract both domestic and international investment. This OECD series on Green Finance and Investment provides policy analysis and guidance to scale up financing and investment in technologies, infrastructure and companies that will be critical in the transition to a low-carbon, climate-resilient and resource-efficient economy.

Green Finance and Investment

l

Green Finance and Investment

Mobilising Finance for Climate Action in Georgia

This report discusses key issues surrounding finance mobilisation for achieving Georgia’s climate change and green growth targets, and new investment opportunities for developing its capital market. The report focuses particularly on finance for climate change mitigation from various sources – private and public, national and international – but remains relevant for other issues around the country’s green growth agenda, such as energy productivity, air pollution prevention, climate change adaptation, better waste management, conservation of natural resources, and the technologies and innovations that help tackle these issues.

 helping national and local administrations in Moldova, Kazakhstan and Kyrgyzstan to prepare robust and realistic green public investment programmes, including 9HSTCQE*cijhad+ for cleaner urban transport and water infrastructure; and Consult this publication on line at http://dx.doi.org/10.1787/9789264289727-en.

This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

Mobilising Finance for Climate Action in Georgia

l

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Isbn 978-92-64-28970-3 97 2018 01 1 P

GREEN

ACTION TASK FORCE

Green Finance and Investment

l

 identifying sources of finance for greening small- and medium-sized enterprises in the Eastern Partnership countries.*

Green Finance and Investment

Inventory of Energy Subsidies in the EU’s Eastern Partnership Countries

Inventory of Energy Subsidies in the EU’s Eastern Partnership Countries

www.oecd.org/environment/outreach/finance-andinvestment-green-economy.htm

Financing Resource Efficient and Cleaner Production by SMEs in the EU Eastern Partnership Countries - A Stakeholders’ Guidebook

This project is funded by the European Union

* Armenia, Azerbaijan, Belarus, Georgia, Moldova, Ukraine. 44 . ACTIVE WITH EURASIA

Financing Resource Efficient and Cleaner Products by SMEs in the EU Eastern Partnership Countries A Stakeholders’ Guidebook

April 2018

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ENVIRONMENT & ENERGY

Sustainable infrastructure for connectivity and low-carbon development The OECD is supporting countries of Central Asia and the Caucasus to better align infrastructure with sustainable development and climate goals.

projects that are approved and financed deliver not only economic benefits and enhanced connectivity but also long-term environmentally and socially sustainable growth. Building on the recent OECD-World Bank-UNEP work The choices that countries make and the approaches they Financing Climate Futures: Rethinking Infrastructure and take with regards Six to infrastructure will have a long-lasting the OECD/ITF transformative areas to financial flows with report Enhancing Connectivity and Freight impact on their economies, societies and the environment. in Central Asia, a new regional programme will support low-emission, resilient infrastructure They will also determine their resilience to future climatecountries to develop capacity and effective mechanisms and related impacts. It is imperative that the infrastructure tools for long-term planning, project preparation, screening and assessment to ensure that infrastructure projects Six transformative are compatible with the Sustainable Development areas to align Goals as well as the climate objectives of the RESET BUDGET financial flows Paris Agreement. Disentangle public Reset the financial

with lowemission, resilient infrastructure

budgets from fossil fuel revenues

sytem in line with longterm climate risk and opportunites

Financing Climate Futures RETHINKING INFRASTRUCTURE

INNOVATE

Rethink development finance for climate

RETHINKING INFRASTRUCTURE

OECD/The World Bank/UN Environment (2018), Financing Climate Futures: Rethinking Infrastructure, OECD Publishing, Paris, https://doi.org/10.1787/9789264308114-en.

This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

ISBN: 9789264308107 97 2018 46 1 P

Plan infrastructure for a low-emission and resilient future

FCF Report cover [4].indd 1

EMPOWER

Build low-emission and resilient urban societies

RETHINKING INFRASTRUCTURE

Consult this publication online at https://doi.org/10.1787/9789264308114-en

PLAN

Financing Climate Futures

RETHINK

Financing Climate Futures

Unleash innovation in technologies, institutions and business models

Infrastructure worldwide has suffered from chronic under-investment for decades and currently makes up more than 60% of greenhouse gas emissions. A deep transformation of existing infrastructure systems is needed for both climate and development, one that includes systemic conceptual and behavioural changes in the ways in which we manage and govern our societies and economies. This report is a joint effort by the OECD, UN Environment and the World Bank Group, supported by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety. It focuses on how governments can move beyond the current incremental approach to climate action and more effectively align financial flows with climate and development priorities. The report explores six key transformative areas that will be critical to align financial flows with low-emission and resilient societies (planning, innovation, public budgeting, financial systems, development finance, and cities) and looks at how rapid socio-economic and technological developments, such as digitalisation, can open new pathways to low-emission, resilient futures.

9HSTCQE*daibah+ 15/11/2018 21:47

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ENVIRONMENT, ENERGY AND TRANSPORT . 45


Reforming water policies for inclusive green growth Reforming Sanitation in Armenia

Reforming Sanitation in Armenia TOWARDS A NATIONAL STRATEGY

OECD Studies on Water

Enhancing the Economic Regulatory System for Moldova’s Water Supply and Sanitation

Enhancing the Economic Regulatory System for Moldova’s Water Supply and Sanitation

www.oecd.org/env/outreach/partnership-eu-waterinitiative-euwi.htm

OECD Studies on Water

TOWARDS A NATIONAL STRATEGY

OECD Studies on Water

The main working method has been to support multistakeholder National Policy Dialogues aimed at preparing practical, evidence-based, agreed approaches to water sector reform. Long-lasting working relationships built in the countries over many years help to deliver the work on the ground.

OECD Studies on Water

Pressure on water resources in Eurasia countries is high due to increasing demands from agriculture, energy generation, industry and urban populations. Climate change is adding to the uncertainty about future water availability and reinforcing the need for more effective management of freshwater resources. Since 2002, the OECD has worked with a number of Eurasia countries to address these challenges in the framework of the EU Water Initiative.

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Facilitating the Reform of Economic Instruments for Water Management in Georgia Water is essential for economic growth, human health, and the environment. Yet governments around the world face significant challenges in managing their water resources effectively. The problems are multiple and complex: billions of people are still without access to safe water and adequate sanitation; competition for water is increasing among the different uses and users; and major investment is required to maintain and improve water infrastructure in OECD and non-OECD countries. This OECD series on water provides policy analysis and guidance on the economic, financial and governance aspects of water resources management. These aspects generally lie at the heart of the water problem and hold the key to unlocking the policy puzzle.

OECD Studies on Water

OECD Studies on Water

This study assesses the use of economic instruments for water resources management in Georgia and considers options for reform following the 2014 signature of an Association Agreement with the EU committing to alignment with the EU’s Water Framework Directive. This includes the systematic use of economic instruments, including water pricing, to recover the cost of water services provided to households, industry and farmers, among other measures.

Consult this publication on line at http://dx.doi.org/10.1787/9789264281776-en. This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

EUWI     

ISBN 978-92-64-28172-1 42 2017 47 1 P

Facilitating the Reform of Economic Instruments for Water Management in Georgia

Facilitating the Reform of Economic Instruments for Water Management in Georgia

Three main economic instruments are recommended in this study: 1) the introduction of a licensing regime and charges for both surface water and groundwater abstraction, 2) the restoration of a licencing and charging regime for all forms of water pollution, and 3) more rigorous enforcement of these measures, including more active monitoring and higher fines for offenders. Implementing these measures will be greatly facilitated by the enactment of the new Water Law now being examined by the government of Georgia.

OECD Studies on Water

EECCA

Action funded by the EUROPEAN UNION

OECD Studies on Water Strengthening Shardara Multi-Purpose Water Infrastructure in Kazakhstan

46 . ACTIVE WITH EURASIA BRAZIL

9HSTCQE*cibhcb+

OECD Studies on Water

Strengthening Shardara Multi-Purpose Water Infrastructure in Kazakhstan

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ENVIRONMENT & ENERGY

Ensuring reliable and clean energy l establishing

country-specific action plans for the development of energy statistics.

The International Energy Agency (IEA) is leading the implementation of the EU4Energy Programme, a fouryear programme that began in July 2016, funded by the European Union, for Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, Ukraine and Uzbekistan.

The 20 Renewable Energy Recommendations provides guiding principles for policy making, based on best practices observed across IEA member states and partner countries.

The programme’s aim is to work with these countries on improving energy data capabilities, enhancing data collection and monitoring, and assisting in evidence-based energy policy design relevant to each country’s needs.

www.eu4energy.iea.org/ www.iea.org/

20

RENEWABLE ENERGY Policy Recommendations

Covering a wide range of energy topics such as grid integration of variable renewables, energy efficiency, energy modelling, sustainable transport, R&D, and renewable heat, the IEA engages Eurasia countries by: l organising l training

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policy fora;

statisticians, ministry officials, and NGOs; and

Total final consumption by source and sector in EU4Energy Programme countries, 2017 15%

Industry1

25%

28%

21%

80%

Transport1 7%

Residential

16%

47%

4%

Services

7%

49%

7%

4%

47%

Other1, 2

11%

7%

18%

20%

2%

4% 13%

1) Includes non-energy use;

22%

15%

Notes: EU4Energy covers Eastern Europe (Belarus, Republic of Moldova, Ukraine), Caucasus (Armenia, Azerbaijan, Georgia) and Central Asia (Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan).

2) Other consumption consists of agriculture, forestry, fishing and nonspecified consumption;

28%

3) Includes coal and peat;

TOTAL

26%

0%

31%

20% Oil

Natural gas

40% Coal3

Bioenergy & waste

12%

2%

60% Other renewables4

16%

13%

80% Electricity

100% District heat

4) Other renewables consist of geothermal and solar thermal; not visible at this scale. Source: IEA, 2020

ENVIRONMENT, ENERGY AND TRANSPORT . 47


Improving transport networks

The International Transport Forum (ITF) at the OECD is an intergovernmental organisation with 60 member countries that focuses on helping governments improve the design and implementation of policies governing all modes of transport. Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Moldova and Ukraine are all members of the ITF.  The 2019 ITF Summit on “Transport Connectivity for Regional Integration� featured the importance of better transport connectivity for Eurasia to facilitate trade flows, which can ultimately stimulate economic growth, social integration and political stability in the region. The debates highlighted that greater efforts should be devoted to reducing physical barriers and infrastructure gaps between countries with poor transport infrastructure. More needs to be done to strengthen initiatives for transport facilitation at

borders to remove bottlenecks and simplify administrative burdens related to customs and other border-crossing procedures. The ITF has devoted increasing attention to these challenges, offering analysis of the main barriers and recommendations on how to tackle them in such contexts as the Asia-Europe Meetings on transport and logistics networks in Eurasia in 2015 and 2016. In 2019, the ITF published Enhancing Connectivity and Freight in Central Asia, as part of a joint project with the OECD Eurasia Competitiveness Programme. It benchmarks national freight and logistics performance, assesses policies to improve connectivity in Central Asia and provides advice on improving strategic infrastructure planning.

www.itf-oecd.org

CPB

Corporate Partnership Board

Enhancing Connectivity and Freight in Central Asia Case-Specific Policy Analysis

48 . ACTIVE WITH EURASIA

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EMPLOYMENT AND SOCIAL DEVELOPMENT EMPLOYMENT AND SOCIAL DEVELOPMENT . 49


Seeking best practices of social and health policies The OECD conducts work on a wide range of labour market and social issues and seeks to develop policy practices to adapt to changing socio-economic and demographic conditions.

Building Inclusive Labour Markets in Kazakhstan (2017) supported the government’s ongoing efforts to improve access to good quality jobs for youth, create conditions for participation of older workers, and tackle the labour market exclusion among persons with disabilities.

Society at a Glance: Asia/Pacific 2019 provides quantitative evidence on social well-being and its trends across countries in the region including Armenia, Azerbaijan, Kazakhstan, Kyrgyzstan, Mongolia and Tajikistan. The report includes indicators on general context, self-sufficiency, equity, health and social cohesion.

www.oecd.org/dev/inclusivesocietiesanddevelopment/socialprotection.htm www.oecd.org/employment

Kyrgyzstan is one of ten countries participating in the EU Social Protection System project, which assesses the current system and future needs, and assists with capacity building of governments. The Social Protection System Review of Kyrgyzstan, developed in close consultation with government counterparts and social protection experts, was launched in 2018. It takes a holistic view of the country’s social protection system, examining social assistance, social insurance and labour market programmes within the country’s broader policy context. The review examines questions of policy coherence not only within the social protection sector, but also with other relevant policy areas.

OECD Development Pathways

Social Protection System Review of Kyrgyzstan

Social Protection System Review of Kyrgyzstan

A Focus on Youth, oLder WorKers And PeoPLe WIth dIsABILItIes

Social Protection System Review of Kyrgyzstan

0

Kazakhstan has made major economic and social advances in the past decade and a half. Yet, Kazakhstan needs to sustain high growth rates in the future to converge towards the living standards of OECD countries. This report provides a review of the labour market and social policies that could help Kazakhstan in its dual objectives of building more inclusive labour markets, while maintaining a path of strong growth. It explores the role that institutions and policies play in helping vulnerable groups to access gainful and productive jobs, particularly focusing on three key groups: youth, older workers, and people with disabilities, and provides a comprehensive set of policies to increase the employment and employability of these groups. Evaluations and lessons from innovative experiences in OECD and other countries are used to formulate recommendations tailored to Kazakhstan.

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Consult this publication on line at http://dx.doi.org/10.1787/9789264273023-en.

Consult this publication on line at http://dx.doi.org/10.1787/9789264302273-en This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

ISBN 978-92-64-30226-6 41 2017 28 1 P1

9HSTCQE*daccgg+

9HSTCQE*dbaihc+

This project is co-funded by the European Union

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WINNER

IsBn 978-92-64-18844-0 81 2017 07 1 P

9HSTCQE*biieea+

A Focus on Youth, oLder WorKers And PeoPLe WIth dIsABILItIes

ISBN 978-92-64-31087-2 81 2018 19 1 P

The Social Protection System Review of Kyrgyzstan comes at a time when imbalances and fragmentation of social protection provision are undermining its impact and jeopardising its long-term sustainability. This Review proposes a systemic approach to addressing these challenges consistent with the Government of Kyrgyzstan’s own commitment to developing a coherent and extensive social protection system. It examines the current and future challenges facing Kyrgyzstan and analyses the capacity of existing social protection programmes to confront them. It also analyses the financing of social protection and the sector’s current institutional framework. Finally, it proposes specific policies for establishing a social protection system and optimising the design of its component programmes.

Building Inclusive Labour Markets in Kazakhstan OECD Development Pathways

Social Protection System Review of Kyrgyzstan

ry, which gathers all OECD books, periodicals and statistical databases. rmation.

Society at a Glance: Asia/Pacific 2019

doi.org/10.1787/soc_aag-2019-en.

Society at a Glance: Asia/Pacific 2019

Social protection is at the heart of Kyrgyzstan’s development and is a priority of public policy. Pension coverage among today’s elderly is universal and a large number of contributory and non-contributory programmes are in place to cover a wide range of risks. Kyrgyzstan has succeeded in maintaining the entitlements dating from the Soviet era while introducing programmes appropriate for its transition to a market economy. However, severe fiscal constraints have limited the coverage of these new arrangements and their capacity to adapt to challenges such as poverty, pervasive informality and emigration.

Building Inclusive Labour Markets in Kazakhstan

Glance Asia/Pacific, the OECD’s overview of social indicators for the g demand for quantitative evidence on social well-being and its trends Chapter 1 introduces this volume and provides readers with a guide ators. Chapter 2 focuses on issues around extending coverage and the e Pacific. Already, there are many workers in Asia and the Pacific whose ealth supports. Digitalisation and changes in the nature of work may e economic labour market and economic inequalities between highd without access to social benefits. These rising inequalities will further s quest to get support to those who need it most. The chapter includes lustrate possible policy responses. Chapter 3 to 7 each present five ency, equity, health and social cohesion.

KYRGYZSTAN

e: Asia/Pacific 2019

OECD Development Pathways

OECD Development Pathways

Building Inclusive Labour Markets in Kazakhstan A Focus on Youth, oLder WorKers And PeoPLe WIth dIsABILItIes


SOCIAL DEVELOPMENT

Improving health system performance

The OECD helps countries improve health system performance by measuring health outcomes and the use of health system resources as well as by analysing policies that improve access, efficiency and quality of health care.

Health at a Glance: Asia/Pacific 2018

oecd reviews of health systems

MEASURING PROGRESS TOWARDS UNIVERSAL HEALTH COVERAGE

national health Accounts of Kazakhstan

The OECD-WHO publication Health at a Glance: Asia/Pacific 2018 – which includes Mongolia – presents indicators on equity, health status, determinants of health, health care resources and utilisation, quality of care, and health expenditure and financing.

MEASURING PROGRESS TOWARDS UNIVERSAL HEALTH COVERAGE

oecd reviews of health systems

The Health System Review of Kazakhstan 2018 assesses the development and application of Kazakhstan’s national health accounts framework, as well as the country’s production and use of health accounting information. The report recommends the improvement of data sources and methodologies and their alignment with international definitions and concepts to achieve more efficient delivery of information.

Health at a Glance: Asia/Pacific 2018

national health Accounts of Kazakhstan

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www.oecd.org/els/health-systems

EMPLOYMENT AND SOCIAL DEVELOPMENT . 51


Improving education systems and learning outcomes

Eurasia is emerging as an attractive destination for investment and trade, but achieving dynamic and sustainable growth in the region will depend on the skills of the workforce and the quality of underlying education systems. The OECD supports the countries of Eurasia in setting measurable goals for improving education systems and enhancing learning outcomes for students. Azerbaijan, Belarus, Georgia, Kazakhstan, Moldova and Ukraine participated in the Programme for International

Student Assessment (PISA) in 2018, while Armenia and Mongolia will participate in this assessment for the first time in 2021. PISA is a triennial international survey that aims to evaluate education systems worldwide by testing the skills and knowledge of 15-year-old students. The OECD also offers targeted support to current or future PISA participants in order to make better use of PISA participation. In Ukraine, the OECD has analysed the country’s capacity in the area of standardised assessment and provided targeted recommendations.

In Ukraine, the OECD has analysed the country’s capacity in the area of standardised assessment and provided targeted recommendations. 52 . ACTIVE WITH EURASIA


SOCIAL DEVELOPMENT

Kazakhstan and Georgia participate in the Teaching and Learning International Survey (TALIS), which examines the working conditions and attitudes of teachers and school leaders to inform policies for better teaching.

Higher Education in Kazakhstan 2017

Higher education policy is the key to lifelong learning and this is particularly important as the ageing population is increasing in many countries. It is a major driver of economic competitiveness in an increasingly knowledge-driven global economy and it also brings social cohesion and well-being. Countries are increasingly aware that higher education institutions need to foster the skills required to sustain a globally competitive research base and improve knowledge dissemination to the benefit of society. Kazakhstan’s higher education system has made progress over the past ten years. However, there is scope for improvement in delivering labour-market relevant skills to Kazakhstanis, and in supporting economic growth through research and innovation.

Kazakhstan participates in the data collection for the OECD Programme for the International Assessment of Adult Competencies (PIAAC). The PIAAC Survey of Adult Skills measures the key cognitive and workplace skills needed for individuals to participate in society and for economies to prosper.

In examining the higher education system in Kazakhstan, this report builds on a 2007 joint OECD/World Bank review, Reviews of National Policies for Education: Higher Education in Kazakhstan 2007. Each chapter presents an overview of progress made in the past decade across the main areas explored in the 2007 report. These include quality and relevance, access and equity, internationalisation, research and innovation, financing and governance. The report also examines policy responses to evolving dynamics in higher education and the wider socio-economic changes.

OECD Reviews of Integrity in Education: Ukraine 2017

Reviews of National Policies for Education

Reviews of National Policies for Education

Both countries will also engage in an OECD review of policies for evaluation and assessment in education to identify ways in which practices such as school evaluation, teacher appraisal and student assessment can be improved to promote better school outcomes.

OECD Reviews of Integrity in Education: Ukraine 2017

Reviews of National Policies for Education

Higher Education in Kazakhstan 2017

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Contents

Chapter 1. Higher education in Kazakhstan

Chapter 2. Quality and relevance of higher education in Kazakhstan Chapter 4. Internationalisation and higher education in Kazakhstan

Chapter 5. Integration of education, research and innovation in Kazakhstan Chapter 6. Financing higher education in Kazakhstan

Chapter 7. The governance of higher education in Kazakhstan Chapter 8. Concluding remarks

Consult this publication on line at http://dx.doi.org/10.1787/9789264268531-en.

This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

ISBN 978-92-64-26852-4 91 2017 01 1 P

In addition to this, Kazakhstan is involved in the Future of Education and Skills 2030 project, which helps countries to define the knowledge, skills, attitudes and values that today’s students will need in the future and to design instructional systems that will develop them.

Higher Education in Kazakhstan 2017

Chapter 3. Access and equity in higher education in Kazakhstan

9HSTCQE*cgifce+ PISA

PISA

Capacity Needs Analysis: Ukraine

CAPACITY NEEDS ANALYSIS:

UKRAINE

In 2018 Ukraine will take part for the first time in the OECD’s triennial international survey which aims to evaluate education systems worldwide by testing the skills and knowledge of 15-year-old students. Ukraine joins more than 80 countries and economies participating in the 2018 Programme for International Student Assessment (PISA). The Ministry of Education and Science of Ukraine is working with the OECD to maximise its use of PISA for monitoring progress towards nationally-set targets for improvement, for the analysis of factors associated with student learning outcomes, for institutional capacity building, and for tracking international educational targets in the UN-led Education 2030 agenda. This report presents the results of an analysis of Ukraine in respect of its capacity for managing large scale student assessments, such as PISA. The results of this report are being used to design a capacity building plan for Ukraine that will be implemented by the OECD, its contractors, the Ministry of Education and Science, and the Ukrainian Centre for Educational Quality Assurance (UCEQA), which is responsible for managing the PISA assessment in Ukraine.

The OECD has conducted country-specific reviews in Kazakhstan and Ukraine on issues such as higher education, vocational education and training, school resources, early childhood education and care and integrity in education.

www.oecd.org/education/ www.oecd.org/pisa/ www.oecd.org/education/talis/ www.oecd.org/skills/piaac/ www.oecd.org/education/2030-project/

PISA 2018 Results WHAT STUDENTS KNOW AND CAN DO VOLUME I

PISA P

r

o

g

r

a

m

m

e

f

o

r

I

n

t

e

r

n

a

t

i

o

n

a

l

S

t

u

d

e

n

t

A

s

s

e

s

s

m

e

n

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t

EMPLOYMENT AND SOCIAL DEVELOPMENT . 53


Improving youth inclusion

Young people are increasingly exposed to a number of vulnerabilities and threats, such as limited access to decent employment, education, health services and civic participation. The OECD works with partner countries to close the gap in youth well-being. Moldova is one of ten countries participating in the EUOECD Development Centre Youth Inclusion Project, which pursues two objectives: l Supporting

national policy makers, youth organisations and other stakeholders in compiling and collecting data on youth that will nurture policy design and analysis.

l Facilitating

national dialogue on youth inclusion in partner countries that will contribute to the design of evidence-based policies and approaches.

The Youth Well-being Policy Review of Moldova assesses the situation of youth in Moldova with regards to employment, education, health and civic participation. Through a multidimensional approach of youth well-being, the review includes: l a

full diagnosis on the situation of youth in Moldova using a well-being lens;

l an

inventory of key youth policies and a description of the institutional framework for youth development; and

l an

analysis of gender social norms and health disparities among youth.

www.oecd.org/development/ inclusivesocietiesanddevelopment

This process is accompanied by capacity building on policy design and impact evaluation.

Youth Well-being Policy Review of Moldova

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SOCIAL DEVELOPMENT

Promoting development co-operation and the 2030 Agenda The OECD’s Development Assistance Committee (DAC) has been expanding its engagement with Azerbaijan and Kazakhstan, two relatively new providers of development co-operation that are keen to learn from and share their experiences with DAC members. Both countries have been rapidly developing their official development assistance (ODA) institutions and activities, on both bilateral and multilateral bases. Both report their ODA activities to the OECD. Azerbaijan established the Azerbaijan International Development Agency in 2011 to manage and deliver its development co-operation assistance, while Kazakhstan is working to establish a Kazakh Agency. Kazakhstan became a DAC Invitee in 2015 and Azerbaijan became a DAC Participant in 2019. The DAC is a unique international forum where bilateral providers of development co-operation and multilateral agencies work together to improve the quantity and quality of development assistance. Regular participation in meetings

of the DAC and its subsidiary bodies help Azerbaijan and Kazakhstan to share their experiences with members and to align their ODA efforts with international best practice. In addition to supporting the DAC’s engagement with Eurasia, the OECD launched a report on Financing for Development in Europe and the Commonwealth of Independent States and is working on a policy paper on triangular cooperation that will span many countries in the region. The DAC engaged Ukraine in its Peer Review of Switzerland, which was an opportunity to discuss Switzerland’s efforts to engage in quality and effective partnerships in the country. During this process, discussions were held with the national authorities on Switzerland’s efforts to support Ukraine’s reform agenda and reach out to conflict-affected populations.

www.oecd.org/dac/dac-global-relations www.oecd.org/dac/development-cooperation-report

EMPLOYMENT AND SOCIAL DEVELOPMENT . 55


Global Partnership for Effective Development Co-operation Since 2011, the OECD has supported the work of the Global Partnership for Effective Development Co-operation, an inclusive multi-stakeholder platform to maximise the effectiveness of all forms of development co-operation, deliver long-lasting results and contribute to the achievement of the Sustainable Development Goals (SDGs). The OECD, jointly with the United Nations Development Programme, co-ordinates a biennial global monitoring exercise helping governments and development organisations to monitor progress in implementing internationally-agreed commitments for effective development co-operation.

priorities, targets and indicators. However, only Armenia’s and Moldova’s strategies link these plans with resources for implementation. Five countries have systems in place to track development co-operation delivered at country level; however, for most countries there is room for improvement in tracking and making public budget allocations for gender equality and women’s empowerment (SDG 5.c) and in the quality of mutual accountability mechanisms to hold development actors accountable to each other. Since 2014, Afghanistan has been a member of the Global Partnership Steering Committee providing strategic leadership for successful implementation of the work of the Global Partnership. It represents the g7+ group of fragile and conflict affected states and has been actively contributing to the development of an approach to measure effectiveness in fragile contexts.

Afghanistan, Armenia, Azerbaijan, Belarus, Georgia, Kyrgyzstan and Moldova participated in the latest review of progress in 2018 and their results are featured in the 2019 Global Partnership Progress Report and dedicated country profiles. All seven countries have national development plans in place and most include country results frameworks with development

http://effectivecooperation.org

Making Development Co-operation More Effective 2019 PROGRESS REPORT

Making Development Co-operation More Effective 2019 PROGRESS REPORT

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SOCIAL DEVELOPMENT

Managing international migration

In recent years, personal remittances have exceeded 10% of GDP in five of the 13 Eurasia countries; migration has had a substantial impact on receiving countries, too. The OECD works to help Eurasia countries to better understand migration trends and their economic impact and to improve policies towards migrants, particularly in the major sending countries.

Contribution of Labour Migration in Developing Countries as Countries of Destination and co-financed by the EU Thematic Programme on Migration and Asylum. Kyrgyzstan is one of the ten participating countries. In Moldova, the Centre is operationalising a dashboard of indicators for measuring policy and institutional coherence for migration and development in co-operation with the United Nations Development Programme.

In Armenia and Georgia, the OECD Development Centre is working to enhance government capacity to incorporate migration into the design and implementation of the countries’ development strategies. In particular, the Centre helps collect primary data through household and community surveys, and provides support through capacity building activities and cross-country comparisons. Armenia and Georgia are two of the ten developing countries participating in the project on the Interrelations between Public Policies, Migration and Development (IPPMD), supported by the European Union.

In Tajikistan, the OECD Eurasia Competitiveness Programme has carried out two studies (2014, 2017) of policies designed to support returning migrants’ entrepreneurial activity and to strengthen the growth impact of migrant remittances.

www.oecd.org/dev/migration-development

In Kyrgyzstan, the Centre focuses on providing reliable evidence on the economic impact of labour migration on Kyrgyzstan’s economy, as country of destination, in cooperation with the International Labour Organisation (ILO). This work is part of a project entitled Assessing the Economic

Consult this publication on line at http://dx.doi.org/10.1787/9789264273603-en This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

ISBN 978-92-64-27358-0 41 2017 07 1 P1

The recent effects of immigration on the Kyrgyz economy appear to be limited. Many immigrants have been in the country for several decades, hence are overrepresented among the older cohorts, resulting in a lower labour force participation rate than among the native-born. Still, the estimated share of value added generated by immigrants exceeds their share of the labour force but also of the population. Overall, immigration is not associated with a deteriorating labour force situation for the native-born population. In contrast, the current contribution of immigrants to public finance appears to be negative. The high concentration among retirement-age individuals is a major reason for this outcome as the estimate disregards their prior contributions to public revenues. Kyrgyzstan’s economy would benefit from changes in certain migration and non-migration sectoral policies.

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How Immigrants Contribute to Kyrgyzstan’s Economy is the result of a project carried out by the OECD Development Centre and the International Labour Organization, with support from the European Union. The project aimed to analyse several economic impacts – on the labour market, economic growth, and public finance – of immigration in ten partner countries: Argentina, Costa Rica, Côte d’Ivoire, the Dominican Republic, Ghana, Kyrgyzstan, Nepal, Rwanda, South Africa and Thailand. The empirical evidence stems from a combination of quantitative and qualitative analyses of secondary and in some cases primary data sources.

Consult this publication on line at http://dx.doi.org/10.1787/9789264287303-en This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

This project is co-funded by the European Union

ISBN 978-92-64-28730-3 41 2017 26 1 E 1

How Immigrants Contribute to Kyrgyzstan’s Economy

KYRGYZSTAN

This project is co-funded by the European Union

ARMENIA

GEORGIA

ISBN 978-92-64-27220-0 41 2017 02 1 P1

The report addresses three dimensions of the migration cycle that have become an important part of the country’s social and economic contexts: emigration, remittances and return. The results of the empirical work confirm that even though migration contributes to the development of Armenia, the potential of migration is not fully exploited. One explanation is that many policy makers in Armenia do not sufficiently take migration into account in their respective policy areas. Armenia therefore needs to adopt a more coherent policy agenda to do more to integrate migration into development strategies, improve co-ordination mechanisms and strengthen international co-operation. This would enhance the contribution of migration to development in the country.

How Immigrants Contribute to Kyrgyzstan’s Economy

Interrelations between Public Policies, Migration and Development in Armenia

KYRGYZSTAN

Library, which gathers all OECD books, periodicals ecd-ilibrary.org for more information.

Interrelations between Public Policies, Migration and Development in Armenia is the result of a project carried out by the Caucasus Research Resource Center (CRRC-Armenia) and the OECD Development Centre, in collaboration with the State Migration Service (SMS) and with support from the European Union. The project aimed to provide policy makers with evidence on the way migration influences specific sectors – the labour market, agriculture, education and investment and financial services – and, in turn, how sectoral policies affect migration.

OECD Development Pathways

ARMENIA

p://dx.doi.org/10.1787/9789264272217-en

The OECD Development Pathways series helps developing and emerging economies to identify innovative policy solutions to their specific development challenges. Higher levels of well-being and more equitable and sustainable growth cannot be achieved by merely reproducing the experience of industrialised countries. For each of the countries studied, the series proposes options for action in specific policy areas and at the broader strategic level. It identifies the binding constraints to development across all sectors and proposes whole-of-government solutions.

GEORGIA

confirm that even though migration contributes to the ntial of migration is not fully exploited. One explanation d of migration and development through the creation of Georgia take migration sufficiently into account in their n authorities therefore need to adopt a more coherent e migration into their sectoral strategies to enhance the opment in the country.

Interrelations between Public Policies, Migration and Development in Armenia

Interrelations between Public Policies, Migration and Development in Georgia

How Immigrants Contribute to Kyrgyzstan’s Economy

cies, Migration and Development in Georgia is the result ucasus Research Resource Center (CRRC-Georgia) and n collaboration with the State Commission on Migration om the European Union. The project aimed to provide e way migration influences specific sectors – the labour d investment and financial services – and, in turn, how The report addresses three dimensions of the migration kably in Georgia over the last 20 years: emigration,

OECD Development Pathways

OECD Development Pathways

OECD Development Pathways Interrelations between Public Policies, Migration and Development in Armenia

s series helps developing and emerging economies to to their specific development challenges. Higher levels and sustainable growth cannot be achieved by merely ustrialised countries. For each of the countries studied, tion in specific policy areas and at the broader strategic traints to development across all sectors and proposes

OECD Development Pathways Interrelations between Public Policies, Migration and Development in Georgia

ways

ween Public Policies, velopment in Georgia

EMPLOYMENT AND SOCIAL DEVELOPMENT . 57


Tackling the root causes of gender equality

Social Institutions and Gender Index score, 2019

As recognised by the United Nation’s 2030 Agenda for Sustainable Development, women’s empowerment and gender equality are key pillars of economic and social development. The OECD’s work on gender focusses on identifying, measuring, analysing and encouraging policy dialogue on what drives gender inequalities in the region.

EU (Av.) MNG UKR MDA

While Eurasia countries generally have medium levels of discrimination against women, there is considerable heterogeneity in practice in the day-to-day rights of women, gender gaps, and the participation of women in politics and business. The OECD Development Centre tracks gender discrimination worldwide including in these countries via its Social Institutions and Gender Index (SIGI) and has published the SIGI 2019 Regional Report for Eurasia, which offers an in-depth analysis of the region’s progress towards gender equality. During the SIGI update process, the OECD has worked with countries to collect, analyse and disseminate data, in particular in this region through regional workshops focusing on data and policy on gender equality and social norms.

KAZ KGZ GEO ARM AZE World (Av.) TJK Asia (Av.) AFG 0%

OECD Public Governance Reviews

This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

ISBN 978-92-64-74617-6

Gabriela Ramos, OECD Chief of Staff and G20 Sherpa 58 . ACTIVE WITH EURASIA

SIGI 2019 Regional Report for Eurasia

Consult this publication on line at https://doi.org/10.1787/f6dfa21d-en.

30%

40%

50%

OECD Public Governance Reviews

Gender Policy Delivery in Kazakhstan

Social Institutions and Gender Index

SIGI 2019 Regional Report for Eurasia

EURASIA

Over the past decade, the Social Institutions and Gender Index (SIGI) has consistently shown that governments need to look at discriminatory laws, social norms and practices to achieve gender equality and promote women’s empowerment. This 2019 regional report provides an overview of the main outcomes of the SIGI in 12 Eurasian countries in relation to women and the family, their physical integrity, access to productive and financial resources and their civic rights, as well as the economic cost they represent. Building on these outcomes, the report provides a set of tailored regional policy recommendations to enhance Eurasia’s governmental efforts to deliver their gender-equality commitments through a three-pronged approach: legal reforms and transformative gender policies, laws through community mobilisation and empowerment, and policy efficiency through accountability and monitoring.

20%

Gender Policy Delivery in Kazakhstan

SIGI 2019 Regional Report for Eurasia

Social Institutions and Gender Index

Social Institutions and Gender Index

10%

Source: https://stats.oecd.org/Index.aspx?DataSetCode=GIDDB2019

www.oecd.org/dev/development-gender

“The OECD works actively to help OECD and partner countries advance gender equality, both as a goal in itself and as a prerequisite for sustainable development and inclusive growth. On some measures, the Eurasia countries perform relatively well in terms of women’s economic empowerment, but institutional frameworks and social norms still hold women back in many contexts. The OECD stands ready to help the region unlock women’s economic and entrepreneurial potential, to the benefit of all its citizens – both men and women.” 9HSTCQE*hegbhg+

A lower percentage implies greater equality

BLR

SCAN TO READ THE REPORTS

60%


SOCIAL DEVELOPMENT

Building a knowledge economy

OECD Innovation Policy Reviews provide comprehensive assessments of national innovation systems, based on internationally comparable indicators. They provide policy recommendations based on the experiences of OECD countries and leading emerging economies that can help countries better integrate into global knowledge networks and further diversify their economies.

improve the governance of the research and innovation system, and increase the effectiveness of innovation incentives and policies, with a focus on implementation and evaluation.

www.oecd.org/innovation/ OECD Reviews of Innovation Policy

KazaKhstan 2017

SCAN TO READ THE REPORT

OECD Reviews of Innovation Policy KazaKhstan 2017

Kazakhstan is aware of the importance of innovation for its socio-economic development, including the diversification of its resource-based economy. Kazakhstan has put in place key components of a modern research and innovation system. This has helped improve scientific output and resulted in some successes in technology commercialisation. Further commitment and effort will be needed to strengthen innovation capabilities and make the most of Kazakhstan’s advantages. This requires further reforms in order to strengthen the funding model of universities, intensify and broaden knowledge transfer,

L Presentation of the Innovation Policy Review of Kazakhstan at the OECD Day in Astana, July 2017. EMPLOYMENT AND SOCIAL DEVELOPMENT . 59


Working towards more open markets for steel

Steel is one of the most widely produced industrial products in the world, and the sector depends heavily on a range of raw materials for its production. Several Eurasia countries have significant steel sectors, including Kazakhstan and Ukraine. The OECD Steel Committee provides a unique forum for governments to come together to address the evolving challenges facing the steel industry and identify political solutions to encourage open and transparent markets for steel.

60 . ACTIVE WITH EURASIA

As Associates in the OECD Steel Committee, Kazakhstan and Ukraine work closely with other members of the Committee to address the current crisis facing the world’s steel industry, characterised by excess capacity and growing trade frictions, to improve productivity and the competitiveness of the industry, and to tackle issues related to the environmental performance of the sector.

www.oecd.org/industry/ind/steel.htm


SOCIAL DEVELOPMENT

ANNEXES ANNEXES . 61


Annexes

L Château de la Muette, Paris – OECD headquarters

TODAY’S OECD: BETTER POLICIES FOR BETTER LIVES The OECD is an intergovernmental organisation created to promote policies that will improve the economic and social wellbeing of people all over the world. The OECD provides a forum in which governments can work together to seek solutions to common problems, share experiences and identify best practices. 62 . ACTIVE WITH EURASIA

Governments of members and partners work with the Organisation to understand the key drivers of economic, social and environmental change. The OECD measures productivity and global flows of trade and investment, it analyses and compares data to predict future trends, and it sets international standards on a wide range of areas, from governance to the fight against bribery and corruption, taxation to the environment.


GLOBAL RELATIONS

GOVERNANCE STRUCTURE

Through its relationship building over the last 50 years, the OECD has transformed itself into a global organisation, with 36 Members from America, Europe, Asia, and Oceania, including developed and emerging countries.

The OECD is structured around the Council, substantive committees and the Secretariat:

Colombia and Costa Rica have been invited to join the OECD and are currently in the process of accession.1 In 2007, the OECD identified Brazil, China, India, Indonesia and South Africa as “key partners” and has been enhancing engage­ ment with these countries. OECD’s relations with non-Members have been further extended. Its regional initiatives cover South-East Asia, South-East Europe, Eurasia, the Middle East and North Africa, as well as Latin America and the Caribbean. The OECD has also developed Country Programmes with Kazakhstan, Morocco, Peru and Thailand. FAST FACTS History: Established in 1961 Headquarters: Paris, France Secretary-General: Angel Gurría Membership: 36 countries Accession: 2 countries Key Partners: 5 countries Regional Programmes: 5 regions Country Programmes: 4 countries Publications: About 250 new titles per year Committees: About 250 Committees and their subsidiary bodies

l D  ecision-making power is vested in the OECD Council.

Overseeing the Organisation’s functioning and giving strategic direction, it is made up of one representative per Member country plus a representative of the European Union. The Council takes decisions by consensus. l A  t the committee level, representatives of member countries

and partners from the permanent delegations to the OECD or their capitals participate in meetings, to request, review and contribute to work undertaken by the Secretariat. l T  he Secretariat collects data, conducts research and analyses

and produces policy proposals. The Secretary-General heads the Secretariat and is assisted by one or more Deputy SecretariesGeneral. The Secretary-General also chairs the Council, providing the link between national delegations and the Secretariat. WORKING METHODS Through the OECD, governments work together with a multidisciplinary approach to develop evidence-based policy guidance, increasingly involving different stakeholders including parliaments, business communities and civil society. On the basis of comparable statistics collected across member and partner governments, the OECD Secretariat analyses countries’ policy experiences and identifies good practices, to inform policy making in participating countries and beyond. “Peer reviews”, based on dialogue and consensus-building, allow for an effective monitoring of reform progress in a broad range of policy areas. Identified good practices and policy recommendations contribute to designing new international standards that can be embodied into OECD legal instruments as described overleaf.

1. Since March 2014, activities related to the accession process of the Russian Federation to the OECD have been postponed.

ANNEXES . 63

ANNEXES

Annexes


Annexes

Governance structure of the OECD

OECD LEGAL INSTRUMENTS

COUNCIL Strategic direction and control

COMMITTEES Discussion, monitoring and peer reviews

SECRETARIAT Research, analysis and policy recommendations

The OECD works in a broad range of policy areas

Education

Pensions

Healthcare

Employment

Corruption

Governance

Tax evasion

Entrepreneurship Fiscal policy Finance Agriculture

64 . ACTIVE WITH EURASIA

Recommendations are not legally binding but practice accords them great moral force as representing the political will of adherents. There is an expectation that adherents will do their upmost to fully implement them.

International Agreements are negotiated and concluded in the framework of the Organisation. They are legally binding on the parties.

Competition Trade

Decisions are legally binding on all adherents. While they are not international treaties, they entail the same kind of legal obligations. Adherents are obliged to implement Decisions and must take the measures necessary for such implementation.

Declarations are prepared within the Organisation, generally within a subsidiary body. They usually set general principles or long-term goals, have a solemn character and are usually adopted at Ministerial meetings of the Council or of committees of the Organisation.

Development assistance Migration

Since the creation of the OECD in 1961, around 450 substantive legal instruments have been developed within its framework. These include OECD Acts (i.e. the Decisions and Recommendations adopted by the OECD Council in accordance with the OECD Convention) and other legal instruments developed within the OECD framework (e.g. Declarations, International Agreements). There are five categories of OECD legal instruments:

Climate change Innovation

Energy

Arrangements, Understandings and Others: several ad hoc substantive legal instruments have been developed within the OECD framework over time, such as the Arrangement on Officially Supported Export Credits, the International Understanding on Maritime Transport Principles and the Development Assistance Committee Recommendations.


ADHERENCE TO OECD LEGAL INSTRUMENTS IN EURASIA Decision of the Council Revising the OECD Schemes for the Varietal Certification: Kyrgyzstan, Moldova, Ukraine Decision of the Council on Conflicting Requirements Being Imposed on Multinational Enterprises: Kazakhstan, Ukraine Decision of the Council on International Investment Incentives and Disincentives: Kazakhstan, Ukraine Istanbul Ministerial Declaration on Fostering the Growth of Innovative and internationally Competitive SME: Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Ukraine, Uzbekistan Paris Declaration on Aid Effectiveness: Afghanistan, Armenia, Azerbaijan, Belarus, Georgia, Kyrgyzstan, Moldova, Mongolia, Tajikistan, Ukraine

Declaration on Strengthening SMEs and Entrepreneurship for Productivity and Inclusive Growth: Kazakhstan Recommendation of the Council on Artificial Intelligence: Ukraine Recommendation of the Council on Budgetary Governance: Kazakhstan Recommendation of the Council on Digital Government Strategies: Kazakhstan Recommendation of the Council on Gender Equality in Education, Employment and Entrepreneurship: Kazakhstan Recommendation of the Council Concerning Guidelines for Quality Provision in Cross-Border Higher Education: Kazakhstan Recommendation of the Council Concerning Guidelines on Earthquake Safety in Schools: Kazakhstan

Daejeon Declaration on Science, Technology and Innovation Policies for Global and Digital Age: Kazakhstan

Recommendation of the Council Concerning a General Framework of Principles for International Co-operation in Science and Technology: Kazakhstan

Declaration on International Science and Technology Cooperation for Sustainable Development: Kazakhstan

Recommendation of the Council Concerning Access to Research Data from Public Funding: Kazakhstan

Declaration on Propriety, Integrity and Transparency in the Conduct of International Business and Finance: Kazakhstan

Recommendation of the Council on Due Diligence Guidance for Responsible Supply Chains of Minerals from ConflictAffected and High-Risk Areas: Kazakhstan, Ukraine

Declaration on International Investment and Multinational Enterprises and related instruments: Kazakhstan, Ukraine Declaration on Green Growth: Georgia, Kazakhstan Declaration on Risk Reduction for Lead: Kazakhstan Declaration on Better Policies to Achieve a Productive, Sustainable and Resilient Global Food System: Ukraine Declaration on Policies for Building Better Futures for Regions, Cities and Rural Areas: Kazakhstan, Ukraine Declaration for the Future of the Internet Economy (Seoul Declaration): Kazakhstan

Recommendation of the Council on the OECD Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Sector: Ukraine Recommendation on Principles for Public Governance of Public-Private Partnerships: Kazakhstan Recommendation of the Council on Principles for Transparency and Integrity in Lobbying: Kazakhstan Recommendation of the Council on OECD Guidelines for Managing Conflict of Interest in the Public Service: Kazakhstan

ANNEXES . 65

ANNEXES

Annexes


Annexes

Recommendation of the Council on Regulatory Policy and Governance: Kazakhstan Recommendation of the Council on Guidelines for Recipient Country Investment Policies relating to National Security: Kazakhstan

PARTICIPATION IN OECD COMMITTEES AND WORKING PARTIES l A  ssociates participate in OECD bodies, including projects or

the development or revision of OECD legal instruments, for an open-ended period, with the same rights and obligations as OECD members.

Recommendation of the Council on Improving the Quality of Government Regulation: Kazakhstan

l P  articipants participate in OECD Bodies for an open-ended

Recommendation of the Council on Principles for Internet Policy Making: Kazakhstan

l E  urasia countries also participate as invitees in many OECD

Recommendation of the Council on the OECD Due Diligence Guidance for Responsible Business Conduct: Kazakhstan, Ukraine.

Steel Committee: KazakhstanA, UkraineA

Recommendation of the Council on the Governance of Critical Risks: Kazakhstan Recommendation on Effective Public Investment across Levels of Government: Ukraine Schemes for the Varietal Certification or the Control of Seed Moving in International Trade: Moldova Scheme for the Certification of Forest Reproductive Material Moving in International: Georgia Multilateral Guidelines (Extract from the Annex to the Decision establishing a Steel Committee): Kazakhstan, Ukraine Convention on Mutual Administrative Assistance in Tax Matters and its amending protocol: Azerbaijan, Georgia, Kazakhstan, Moldova and Ukraine

period, except in discussions marked as confidential. bodies on a meeting-by-meeting basis.

Committee for Industry, Innovation and Entrepreneurship: KazakhstanP WP on SMEs and Entrepreneurship: UkraineP Committee for Scientific and Technological Policy: KazakhstanP Competition Committee: KazakhstanP, UkraineP Development Assistance Committee: Azerbaijan Education Policy Committee: KazakhstanP Environmental Policy Committee: KazakhstanP Investment Committee: Investment Committee meeting in enlarged session for work related to the Declaration on International Investment and Multinational Enterprises and related Instruments: KazakhstanA, UkraineA

Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS: Georgia, Kazakhstan, Ukraine

WP on Responsible Business Conduct: KazakhstanA, UkraineA

Understanding on Common Shipping Principles: Ukraine

Joint Meeting of the Chemicals Committee and the Working Party on Chemicals, Pesticides and Biotechnology: KazakhstanP Public Governance Committee (all bodies): KazakhstanP, UkraineP

66 . ACTIVE WITH EURASIA


ANNEXES

Committee on Statistics and Statistical Policy: KazakhstanP Working Party on State Ownership and Privatisation Practices: KazakhstanP, UkraineP A – Associate, P – Participant, O – Other form of participation

PARTICIPATION IN OECD REGIONAL NETWORKS The Anti-Corruption Network for Eastern Europe and Central Asia – Afghanistan2, Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Mongolia, Tajikistan, Turkmenistan, Ukraine and Uzbekistan. The GREEN Action Task Force for Eastern Europe, the Caucasus and Central Asia – Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Mongolia, Tajikistan, Turkmenistan, Ukraine and Uzbekistan. The OECD Eurasia Competitiveness Programme – Afghanistan, Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Mongolia, Tajikistan, Turkmenistan, Ukraine and Uzbekistan. The SIGMA Programme – Armenia, Azerbaijan, Georgia, Moldova and Ukraine. The OECD Network of Senior Budget Officials from Central, Eastern and South Eastern European Countries – Armenia, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Ukraine and Uzbekistan.

MEMBERSHIP IN OECD NETWORKS AND INITIATIVES: Co-ordinating Body of the Convention on Mutual Administrative Assistance in Tax Matters: Moldova Base Erosion and Profit Shifting Inclusive Framework: Armenia, Georgia, Kazakhstan, Mongolia, Ukraine Global Forum on Transparency and Exchange of Information Tax Purposes (since 2009): Armenia, Azerbaijan, Georgia, Kazakhstan, Moldova, Mongolia, Ukraine. Global Forum on Transfer Pricing: Georgia, Moldova, International Network on Financial Education (INFE): Mongolia International Transport Forum and Joint OECD/ITF Transport Research Committee (since 2011): Armenia, Azerbaijan, Belarus, Moldova, Ukraine. – Road Transport Group: Moldova – Transport Management Board: Georgia Policy Dialogue on Natural Resource-based Development: Kazakhstan, Mongolia Programme for International Student Assessment Governing Board (PISA) - Azerbaijan (Baku city), Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Mongolia, Ukraine, Uzbekistan Programme for Teaching and Learning International Survey Governing Board (TALIS): Georgia OECD Development Centre and its Governing Board (since 2015): Kazakhstan. OECD-GVH Regional Centre for Competition in Budapest: Georgia, Moldova, Ukraine Tax Inspectors without Borders: Georgia, Ukraine

2. Afghanistan is a member of the Asia-Pacific Anti-Corruption Initiative, but participates occasionally in ACN for Eastern Europe and Central Asia.

ANNEXES . 67


Annexes

DATA AND DIALOGUE The OECD reaches out to stakeholders in the Eurasia countries through its support for public-private dialogue and active engagement in discussions between the government and nonstate actors in the Eurasia countries, as well as its convening of such annual events as the OECD Eurasia Week and the OECD Eurasia Competitiveness Roundtable. These platforms bring together ministers and senior officials from ministries, departments and state agencies from the region and from OECD countries, as well as development partners, private-sector representatives and other stakeholders, for both wide-ranging debates about broad reform challenges in the region and concrete, working-level discussions of specific reform proposals in individual countries. Their objective is to stimulate public-private dialogue concerning the policy areas covered by the OECD projects and more generally the overall economic reform agendas of the Eurasia countries. The OECD

also participates actively in other regional platforms, such as the EU’s Eastern Partnership Platform 2 on “Economic integration and convergence with EU policies” and the EBRD’s Investment Climate and Governance Initiative. www.tuac.org www.biac.org www.oecd.org/forum

This brochure is based on information and data available up to January 2020. The information presented does not consider any potential environmental or socio-economic effects of the COVID-19 pandemic.

News and information about OECD work and events involving Eurasia are available at www.oecd.org/ globalrelations/eurasia.htm

Discover reports, data and analysis about the Eurasia alongside the world’s leading economies on OECD iLibrary, the global knowledge base – www.oecd-ilibrary.org 68 . ACTIVE WITH EURASIA


The OECD: A Global Policy Network

BRAZIL ACTIVE WITH

MENA ACTIVE WITH

THE MIDDLE EAST AND NORTH AFRICA

AFRICA ACTIVE WITH

September 2016

CHINA ACTIVE WITH THE PEOPLE’S REPUBLIC OF

ACTIVE WITH

LATIN AMERICA AND THE CARIBBEAN

ACTIVE WITH

SOUTHEAST ASIA

The OECD Member countries are: Australia, Austria, Belgium, Canada, Chile, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea, Latvia, Lithuania, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, the Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States of America.

Brochure design by baselinearts.co.uk

The Organisation for Economic Co-operation and Development (OECD) is an international organisation helping governments tackle the economic, social and governance challenges of a globalised economy. It provides a setting where governments can compare policy experiences, seek answers to common problems, identify good practice and work to co-ordinate domestic and international policies.

ACTIVE WITH

THE UNITED NATIONS


Global Relations Secretariat OECD, 2 rue AndrĂŠ Pascal 75775 Paris Cedex 16 France www.oecd.org/globalrelations www.oecd.org/eurasia GRS.contact@oecd.org

January 2020

Profile for OECD

Active with Eurasia 2020  

This brochure provides an overview of how the OECD and the Eurasia countries (Afghanistan, Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan...

Active with Eurasia 2020  

This brochure provides an overview of how the OECD and the Eurasia countries (Afghanistan, Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan...

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