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By Mario D. Lamberte, Robert C. Vogel, Roger Thomas Moyes

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2. 3. 4. 5. 6. 1 Country 1990 1991 1992 1993 1994 1995 1996 Azerbaijan Kazakhstan Kyrgyz Republic Mongolia1 Tajikistan Uzbekistan 4,639 7,319 3,596 1,333 2,979 4,241 4,537 6,457 3,253 1,182 2,652 4,117 3,463 6,066 2,766 1,049 1,758 3,578 2,632 5,503 2,326 1,002 1,451 3,427 2,093 4,817 1,869 1,010 1,123 3,223 1,832 4,429 1,772 1,058 967 3,071 1,847 4,468 1,895 1,066 909 3,139 The figure for 2002/1990 is based on 2001 per capita GDP at PPP. Source: Angus Maddison, The World Economy: Historical Statistics, 2003.

Another more market-based approach has been for development agencies to work directly on risk management arrangements that involve spreading risks across processors and other market intermediaries as well as producers, as suggested by the earlier discussions of informal finance. Identifying and Managing the Key Risk: Undiversified Local Areas The foregoing approaches to risk management may nonetheless largely neglect what can be the most crucial risk element for rural finance—the largely undiversified nature of most rural economies.

0 Per Capita Income ($) 745 1,992 319 442 184 312 (2002) (2003) (2002) (2002) (2002) (2003) Sources: ADB Key Indicators, 2004; Various country diagnostic studies. result, the share of the rural population rose from 46% in 1990 to 49% in 2001. Also, the rural population comprises a large majority in 10 of the 12 economic regions. 4% of the population is located in rural areas. The relative proportion of rural and urban populations has not changed significantly since 1979. However, with rural areas accounting for over 95% of Kazakhstan’s land mass, it is easy to understand the country’s low rural population density.

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