This report assesses the livingconditions in Kazakhstan during 2001-2002, especially asconcerning the poor. Based upon consultations with theGovernment, research institutes, and nongovernmentalorganizations, three key questions related to poverty wereidentified as critical to understanding the currentsituation, and to developing a poverty reduction strategy.These questions are: a) what is the current povertysituation in Kazakhstan, b) what has been the impact ofeconomic growth on poverty, and, c) how effective is thesocial protection system in alleviating poverty. Six mainfindings on poverty in Kazakhstan are worth highlighting: 1)Housing poverty and the broader problem of poor quality ofbasic infrastructure services are prevalent. 2) Ruralpoverty in particular did not appear to benefitsignificantly from growth, since it decreased onlymarginally in these high growth years. 3) The greatestsource of inequality in Kazakhstan is the divergence ofliving conditions across oblasts-whether measured usingindicators of consumption expenditures, incomes, usage ofservices, or health indicators. 4) Though the quality ofeducation cannot be judged from the Household Budget Survey,the productivity of the future labor force could be injeopardy since an estimated 50 percent of young adults-25-29year olds-have a secondary school, or lower degree. 5)Infant mortality rates are high. 6) The best program fortransferring income to the poor is the Targeted SocialAssistance Program, though it requires strengthening of itscoverage, and benefit levels.
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