National Fund for Children in Kazakhstan: A Social Policy Model in Energy Transition

Background: The National Fund for Children is a universal asset-building social policy for children launched in 2024 by Kazakhstan. Under the new policy, 50% of the National Fund’s annual income from fossil fuel wealth is allocated to a new National Fund for Children (the NFC). The National Fund of Kazakhstan is a repository for the nation’s natural resource revenue and associated investment returns. The accounts are automatically opened at the birth of each child under the NFC policy. As a centralized platform for the accounts, Kazakhstan used the government’s financial institutions and second-level private banks that collaborate with the government’s Unified Pension Fund. Ongoing annual deposits were automatically deposited in accounts from the National Fund. The amount of deposits to the NFCs in Kazakhstan varies with the price of oil, gas, and minerals in the global market every year. The policy aims to promote education and secure housing for the whole population. Financial assets accumulated in the NFC could be used after account owners are 18 years old for post-secondary education expenses and improving housing situations.

Methods: The paper applies qualitative approaches such as a desk review, a systematic review, and content analysis to collect data on the progress of the implementation of the policy.

Results: In 2024, the government of Kazakhstan made the first deposit of $100.58 to all children of the country. In 2025, the government made the 2^nd deposit of $129.38, and the total amount that was transferred from the National Fund of Kazakhstan to the NFCs was $889 million (National Bank of Kazakhstan, 2025). For the past 2 years, the government accrued a total of about $1.5 billion from the wealth of natural resources for children. The scope of the policy in 2025 was up to 7 million children, which were all children who were citizens of Kazakhstan. In 2025, beneficiaries began making withdrawals from accounts. By January 2025, account holders who had turned 18 withdrew a total of $5.32 million. Of this amount, $2.96 million was used by 29,542 individuals to improve their housing conditions, while $2.35 million was allocated by 23,459 applicants for educational expenses (United Accumulative Pension Fund, 2025).

Implications: The NFC is a forward-thinking initiative that underscores Kazakhstan’s commitment to equitable wealth distribution and future generations' welfare. While it has the potential to foster economic security and opportunity, its success hinges on sustainable management, transparency, and adaptability to economic fluctuations. With strategic improvements, this policy can serve as a model for other resource-rich nations seeking to invest in their younger populations. This policy can contribute to sustainable and inclusive development in other natural resource-rich countries in the Global South. If other nations that are rich in oil, gas, and mineral resources eventually follow Kazakhstan’s lead, this would have the long-term potential to improve the well-being of over three billion people in the world.