This paper examines the economic problems Kazakhstan faces in terms of transboundary rivers and proposes solutions based on the United Nations guidelines for implementing water policy. There are several transboundary river basins in Kazakhstan, but this study focuses only on the Syr Darya, as it is the most important one for the economy and often the source of political disputes. The Syr Darya river crosses through the territory of Kyrgyzstan, Tajikistan and Uzbekistan before reaching Kazakhstan. While upstream countries Kyrgyzstan and Tajikistan use the river to generate electricity, Uzbekistan and Kazakhstan need it for agricultural purposes. Differences in water usage have caused interstate conflicts in the region. Countries cannot come to an agreement regarding the graphic of water release, nor develop the mechanism of trade between energy and water. Qualitative research on the cases of conflict and regional water policy agreements shows that the roles and responsibilities of countries are not clearly defined and there are also trust issues due to a lack of compliance incentives and insufficient exchange of objective information. Based on the study results, the author offers constructive recommendations, which propose the creation of a joint regional institution that will monitor, analyze, and manage the water situation in Central Asia.
