Publication: Kazakhstan : Agricultural Insurance Feasibility Study, Volume 1. Main Report
Loading...
Published
2012-06
ISSN
Date
2014-12-17
Author(s)
Editor(s)
Abstract
Agriculture is a very important socioeconomic sector in Kazakhstan. The Government of the Republic of Kazakhstan (GRK) introduced a national compulsory crop insurance scheme in 2005 in order to provide grain producers and other farmers with a minimum level of protection against catastrophic climatic events. The overall objective of the current study is to assist the GRK in improving the existing mandatory crop insurance program. The study aims to identify sustainable market-based alternatives to the current crop insurance system in Kazakhstan. In this regard, all of the options for improving the current system that were developed under this study are market based and take into account global experience and the best insurance and reinsurance industry practices for agricultural insurance. The study follows the principles established in the agriculture risk management framework developed by the World Bank. The study focuses mainly on spring wheat crop production in the principal growing regions of Kazakhstan. The study is set out in six chapters. Chapter one gives introduction and objectives of the study. Chapter two presents an overview of agricultural production systems and markets in Kazakhstan, followed by an assessment of the climatic hazards and other risks affecting spring wheat in the country s main crop areas. Chapter three reviews the structure and performance of the current mandatory crop insurance system in Kazakhstan and identifies a series of institutional, operational, technical, and financial drawbacks of the current system. Chapter four presents a phased strategy and a series of options and recommendations for the GRK to consider for the introduction of market based solutions that aim to strengthen the current scheme. Chapter five explores the opportunities for developing new crop insurance products in Kazakhstan, including prefeasibility analyses for area-yield index insurance (AYII), weather index insurance (WII), and named-peril hail insurance for selected rayons. Finally, chapter six deals with the challenges of tailoring crop insurance to the needs of lower-income smaller farmers.
Link to Data Set
Citation
“World Bank. 2012. Kazakhstan : Agricultural Insurance Feasibility Study, Volume 1. Main Report. © http://hdl.handle.net/10986/20779 License: CC BY 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Kazakhstan : Agricultural Insurance Feasibility Study, Volume 2. Annexes(Washington, DC, 2011-10)Agriculture is a very important socioeconomic sector in Kazakhstan. The Government of the Republic of Kazakhstan (GRK) introduced a national compulsory crop insurance scheme in 2005 in order to provide grain producers and other farmers with a minimum level of protection against catastrophic climatic events. The overall objective of the current study is to assist the GRK in improving the existing mandatory crop insurance program. The study aims to identify sustainable market-based alternatives to the current crop insurance system in Kazakhstan. In this regard, all of the options for improving the current system that were developed under this study are market based and take into account global experience and the best insurance and reinsurance industry practices for agricultural insurance. The study follows the principles established in the agriculture risk management framework developed by the World Bank. The study focuses mainly on spring wheat crop production in the principal growing regions of Kazakhstan. The study is set out in six chapters. Chapter one gives introduction and objectives of the study. Chapter two presents an overview of agricultural production systems and markets in Kazakhstan, followed by an assessment of the climatic hazards and other risks affecting spring wheat in the country s main crop areas. Chapter three reviews the structure and performance of the current mandatory crop insurance system in Kazakhstan and identifies a series of institutional, operational, technical, and financial drawbacks of the current system. Chapter four presents a phased strategy and a series of options and recommendations for the GRK to consider for the introduction of market based solutions that aim to strengthen the current scheme. Chapter five explores the opportunities for developing new crop insurance products in Kazakhstan, including prefeasibility analyses for area-yield index insurance (AYII), weather index insurance (WII), and named-peril hail insurance for selected rayons. Finally, chapter six deals with the challenges of tailoring crop insurance to the needs of lower-income smaller farmers.Publication Guyana : Agricultural Insurance Component Pre-feasibility Study Report(Washington, DC, 2010-05)The objective of the Agricultural Insurance pre-feasibility study is to identify the institutional, operational, technical and financial challenges for the development of agricultural risk transfer solutions and insurance for rice, fruit and vegetables, livestock, and the aquaculture sector in Guyana. The specific objectives of the study include: (i) to identify the production systems, constraints and risks faced by farmers in Guyana; (ii) to assess the institutional, operational and financial capacity in Guyana to manage an agricultural insurance scheme for the selected activities; (iii) to evaluate the availability of information and collect technical data and information needed for the development of an agricultural insurance scheme for the selected activities; (iv) to assess the potential interest of the possible stakeholders that might get involved in the development of an agricultural insurance scheme in Guyana. This report draws heavily on international experience. International experience on agricultural insurance is vast, as it is currently being implemented in more than 100 countries around the world. This study benefits from this experience, which has been tailored to the local economic and social context of Guyana.Publication Enhancing Crop Insurance in India(World Bank, 2011-04-01)The broad structure of Modified National Agricultural Insurance Scheme (mNAIS), the main crop insurance program in India, is technically sound and appropriate in the context of India. The NAIS is based on an indexed approach, where average crop yield of an insurance unit, or IU, (i.e., block) is the index used. The insurance is mandatory for all farmers that borrow from financial institutions, though insurance cover is also available to non-borrowers. The actual yield of the insured crop (as measured by crop cutting experiments) in the IU is compared to the threshold yield. If the former is lower than the latter, all insured farmers in the IU are eligible for the same rate of indemnity payout. Individual crop insurance will have been prohibitively expensive, or even impossible, in a country such as India with so many small and marginal farms. Further, the method of using an 'area based approach' has several other merits and, most importantly, it mitigates moral hazard and adverse selection. This report offers detailed analysis of a number of technical and operational issues which should be addressed if mNAIS is to be implemented. GOI is to be complemented on its bold vision of the future of agriculture insurance through modifying NAIS, an action which, if well implemented, has the potential for significant economic and political economy gains. The policy note World Bank (2010) supported this vision and offered specific policy recommendations for mNAIS, with reference to the Joint Group report (2004). This technical report is intended as a complement to World Bank (2010) and also to the previous technical report World Bank (2007a), by offering detailed technical analysis of a number of issues that will be critical to the success of mNAIS.Publication China : Innovations in Agricultural Insurance, Technical Annexes(Washington, DC, 2007-06)This report explains why agricultural insurance is expensive to deliver to small farm households, details risk assessment in four provinces, and recommends China put more resources in developing products that are more suited to an agricultural economy that is dominated by small farm households. The report discusses the important role of government in supporting the legal and regulatory environment, access to data for new product development, risk sharing, and broader education of all stakeholders about the benefits of agricultural insurance. It also explains why this form of subsidy could provide improved incentives versus a direct subsidy for farmer premium. The report concludes with principle recommendations involving scalable product solutions, risk financing strategy, intuitional capacity building and technical assistance, legal and regulatory framework, and government support and public subsidies.Publication Crop Insurance in Karnataka(World Bank, Washington, DC, 2005-07)The authors examine the performance of the crop insurance scheme in Karnataka, a southern state of India and the second driest state in the country. Their analysis highlights weaknesses in product design, implementation challenges, and operational problems. The authors' finding is that the crop insurance scheme in its current form does not achieve its objectives, either explicit (risk management) or implicit (safety net and containment of both the central and state governments' contingent liability). The crop insurance scheme performs poorly both in terms of coverage (number of hectares insured and number of farmers purchasing insurance) and financial performance. The authors provide a framework for designing a crop insurance scheme based on the premise that insurance is a cost effective risk management techniques. They also provide some new ideas and thinking toward both improving the existing crop insurance scheme and exploring alternatives to the current product, based on an area-yield approach.
Users also downloaded
Showing related downloaded files
Publication Commodity Markets Outlook, April 2025(Washington, DC: World Bank, 2025-04-29)Commodity prices are set to fall sharply this year, by about 12 percent overall, as weakening global economic growth weighs on demand. In 2026, commodity prices are projected to reach a six-year low. Oil prices are expected to exert substantial downward pressure on the aggregate commodity index in 2025, as a marked slowdown in global oil consumption coincides with expanding supply. The anticipated commodity price softening is broad-based, however, with more than half of the commodities in the forecast set to decrease this year, many by more than 10 percent. The latest shocks to hit commodity markets extend a so far tumultuous decade, marked by the highest level of commodity price volatility in at least half a century. Between 2020 and 2024, commodity price swings were frequent and sharp, with knock-on consequences for economic activity and inflation. In the next two years, commodity prices are expected to put downward pressure on global inflation. Risks to the commodity price projections are tilted to the downside. A sharper-than-expected slowdown in global growth—driven by worsening trade relations or a prolonged tightening of financial conditions—could further depress commodity demand, especially for industrial products. In addition, if OPEC+ fully unwinds its voluntary supply cuts, oil production will far exceed projected consumption. There are also important upside risks to commodity prices—for instance, if geopolitical tensions worsen, threatening oil and gas supplies, or if extreme weather events lead to agricultural and energy price spikes.Publication Business Ready 2024(Washington, DC: World Bank, 2024-10-03)Business Ready (B-READY) is a new World Bank Group corporate flagship report that evaluates the business and investment climate worldwide. It replaces and improves upon the Doing Business project. B-READY provides a comprehensive data set and description of the factors that strengthen the private sector, not only by advancing the interests of individual firms but also by elevating the interests of workers, consumers, potential new enterprises, and the natural environment. This 2024 report introduces a new analytical framework that benchmarks economies based on three pillars: Regulatory Framework, Public Services, and Operational Efficiency. The analysis centers on 10 topics essential for private sector development that correspond to various stages of the life cycle of a firm. The report also offers insights into three cross-cutting themes that are relevant for modern economies: digital adoption, environmental sustainability, and gender. B-READY draws on a robust data collection process that includes specially tailored expert questionnaires and firm-level surveys. The 2024 report, which covers 50 economies, serves as the first in a series that will expand in geographical coverage and refine its methodology over time, supporting reform advocacy, policy guidance, and further analysis and research.Publication Digital Africa(Washington, DC: World Bank, 2023-03-13)All African countries need better and more jobs for their growing populations. "Digital Africa: Technological Transformation for Jobs" shows that broader use of productivity-enhancing, digital technologies by enterprises and households is imperative to generate such jobs, including for lower-skilled people. At the same time, it can support not only countries’ short-term objective of postpandemic economic recovery but also their vision of economic transformation with more inclusive growth. These outcomes are not automatic, however. Mobile internet availability has increased throughout the continent in recent years, but Africa’s uptake gap is the highest in the world. Areas with at least 3G mobile internet service now cover 84 percent of Africa’s population, but only 22 percent uses such services. And the average African business lags in the use of smartphones and computers as well as more sophisticated digital technologies that catalyze further productivity gains. Two issues explain the usage gap: affordability of these new technologies and willingness to use them. For the 40 percent of Africans below the extreme poverty line, mobile data plans alone would cost one-third of their incomes—in addition to the price of access devices, apps, and electricity. Data plans for small- and medium-size businesses are also more expensive than in other regions. Moreover, shortcomings in the quality of internet services—and in the supply of attractive, skills-appropriate apps that promote entrepreneurship and raise earnings—dampen people’s willingness to use them. For those countries already using these technologies, the development payoffs are significant. New empirical studies for this report add to the rapidly growing evidence that mobile internet availability directly raises enterprise productivity, increases jobs, and reduces poverty throughout Africa. To realize these and other benefits more widely, Africa’s countries must implement complementary and mutually reinforcing policies to strengthen both consumers’ ability to pay and willingness to use digital technologies. These interventions must prioritize productive use to generate large numbers of inclusive jobs in a region poised to benefit from a massive, youthful workforce—one projected to become the world’s largest by the end of this century.Publication Dominican Republic Poverty Assessment 2023(Washington, DC: World Bank, 2023-11-08)In recent decades, economic growth in the Dominican Republic (DR) has been steady. However, growth has not occurred in such a way as to make the benefits widely and evenly available. In fact, although the DR economy grew faster than that of other LAC countries before the Covid-19 pandemic, its poverty rates and social outcomes remain broadly similar to them. This report seeks to explain this conundrum, as well as to expand the knowledge base to improve the effectiveness of ongoing poverty reduction policies in the DR. The Poverty Assessment draws primarily on new analytical work conducted in the DR, structured around four background notes on: (i) trends in monetary poverty and inequality, as well as the key drivers of those changes; (ii) nonmonetary poverty and its spatial dimensions; (iii) social assistance programs and their role in mitigating poverty; and (iv) climate change and its interaction with poverty. By helping to reduce the evidence gap in each of these areas, our analysis hopes to inform government policies and the national dialogue on poverty reduction. In addition, the note integrates existing analytical work and evidence produced inside and outside the Bank, including from its operations in the country.Publication Classroom Assessment to Support Foundational Literacy(Washington, DC: World Bank, 2025-03-21)This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.