JOBS OUTCOMES STORY THE CHALLENGE Kazakhstan holds a strategic position between China, Europe, THE ROAD TO and the Middle East, but has historically been underutilized as an BETTER JOBS economic and transit bridge because of poor connectivity across the country. This has not only hindered Kazakhstan’s ability to Boosting Transit leverage its geographical advantage, but also led to pronounced regional disparities. Lack of efficient transport links contrib- Connectivity in uted to unequal access to employment, education, healthcare, Kazakhstan and social and cultural opportunities. Transit costs were high in terms of time, finances, and vehicle wear and tear, which posed significant obstacles to international commerce and stymied AT A GLANCE local socioeconomic progress, particularly in the southern re- REGION/COUNTRY Europe & Central gions. These challenges disproportionately impacted women, Asia | Kazakhstan who faced greater unemployment and suffered from high mater- nal mortality rates because they could not quickly reach medical PROGRAM/PROJECT South-West Road Project (SWRP) and East-West care. These issues were compounded by persistent underinvest- Road Project (EWRP) ment and limited institutional capacity within the road sector, which further impeded the development of robust transportation FUNDING $3.193 billion IBRD infrastructure. RESULTS 5.5 million residents along the Western Europe– Western China corridor in Kazakhstan have been connected through better road infrastructure since 2009. Two road projects created 50,000+ construction jobs and 1,200 permanent road maintenance po- sitions, spurring regional development and curbing youth migration. The projects focused on training, new qualifications, and equitable conditions for women, becoming a catalyst for social mobility. Retail trade in the project area surged by 50%, and wholesale trade increased by 640% within three years of the roads’ completion. In surveys, 43% of beneficiaries said the project led to better job and income opportunities; 93% said it led to a higher quality of life. Between 2009 and 2020, residents who feel opti- mistic about their future in the area rose from 20% to 83% – primarily due to new jobs, better access to employment, and transformative improvements for businesses. WBG APPROACH The World Bank supported two modern road corridors in Kazakhstan, with a combined length of almost 2,000 kilometers. The South–West Road Project (SWRP) and East–West Road Project (EWRP) supported moderniza- tion of both the Western Europe–Western China and the Center–South transit corridors. The development of these routes is accelerating sustainable, equitable economic growth in Kazakhstan. The projects invested in new road infrastructure; they also provided technical assistance to improve maintenance and safety standards, and to boost the transport sector’s financial sustainability by introducing tolls. Additionally, the World Bank support- ed the establishment of two authorities to ensure that the new roads were sustainably managed: KazAvtoZhol, a national highway management company, and the National Center for Quality of Road Assets. KazAutoZhol models performance-based remuneration for state employees, promoting efficiency and accountability in public services management. LESSONS LEARNED Collaboration was critical to development of the 2,700-kilometer Western Europe–Western China Highway; these projects were able to achieve results due to their One World Bank Group approach and external partner- ships. The World Bank’s projects were complemented by the International Finance Corporation’s structuring of the Big Almaty Ring Road 20-year concession; this 66-kilometer road is critical to the Western Europe–Western China Highway corridor, because it bypasses congestion around Almaty, Kazakhstan’s most populous city. The World Bank’s financing of 1,600 kilometers of road was also bolstered by contributions from the Asian Devel- opment Bank (480 km), the European Bank for Reconstruction and Development (100 km), the Islamic Develop- ment Bank (50 km), and the government of Kazakhstan (500 km) – demonstrating that the road to better jobs must be a shared path toward the future. NEXT STEPS The World Bank envisions further expansion of transport and social infrastructure to alleviate regional imbal- ances in Kazakhstan. The focus will be on developing multimodal transport and facilitating trade through im- proved logistics. The World Bank will continue to support effective governance and sustainability in the trans- port sector, as well as safety and climate resilience. These projects will also work to ensure that communities near major corridors benefit from spillover effects, including last-mile connections to populations in remote areas. Before the project, I had no job. Now I am working as a cleaner for the contractor company based in our village. One of my sons got a job as a driver; the other is a se- curity guard. It is great that the work is not far from our home. — Anar Kassymbekova, Resident of Akzharma village, Kyzylorda region