Analysis and evaluation of socio-economic development of the regions of Kazakhstan

The article describes the major factors affecting the sustainable development of the regions. State programs  on socio-economic development of the Republic of Kazakhstan regions have been analyzed. The authors have carried out a ranging of regions of Kazakhstan on the main indicators of socio-economic development: industrial output (goods and services); gross output of agriculture (services); retail sales. Recommendations for the socio-economic development of regions of the Republic of Kazakhstan have been suggested. 

Sustainable development of the region depends on the stability of structure-productions functioning.  The sustainable development of an economic entity refers to its ability to resist and prevent the effects that could lead to a decline in production. Developing persistently may be a production that ensures the release of necessary range of consumer goods at the lowest cost with the effective use of factors of production and on time. At the same time the reproduction stability of region's territorial economic complex is determined by ensuring continuous maintenance of stability and economic growth at the lowest cost, economic and social security, contributing to better meet the material and spiritual needs of the region's population.

Region's sustainable development management is carried out through the development of forecasts and socio-economic development programs. No less important in this case is to assess the economic potential, which is the starting point for the formation of a science-based concept of sustainable and safe development of the territory. An important role in the development of programs for sustainable socio-economic development of the region plays a prediction. It covers various aspects of life in the region: the demographic situation, resource potential, including natural resources, consumer demand, the production dynamics of industry and areas of innovation in the economy and so on.

Currently, in the Republic of Kazakhstan a regional development program up to 2020 is operating [1]. This program has been developed within the framework of realization of the messages of President of the Republic of Kazakhstan to the people of Kazakhstan «A «Kazakhstan – 2050» Strategy»: a new policy of the established state» from December 14, 2012 [2] and «Nurly Zhol — a Path to the Future» from November 11, 2014 [3].

Regional development program will be implemented in 2015–2019 years without breaking down into stages. The program will focus on development of macro-regions, promising areas and centers of economic growth:

• macro-regions;
• cities of the «first level» (agglomerations with centers in the cities of Astana, Almaty, Shymkent and Aktobe);
• cities of the «second level» (regional centers, cities of Semey and Turkestan);
• cities of the «third level» (small and single-industry towns);
• rural areas, including supporting rural communities;
• border

In the framework of implementation of the Forecasting scheme, forward-looking measures to improve the economic competitiveness of all regions and districts of the republic, increase their export capacity will be taken.

The purpose of the Program is to create conditions for the development of regions' socio-economic potential through the formation of a rational territorial organization of the country, encouraging the concentration of population and capital in the centers of economic growth.

According to the Ministry of Finance of the Republic of Kazakhstan in 2015, 430 607 855.6 thousand tenge were provided on the implementation of the Program, including:

• From the state budget — 385 701 716 thousand tenge, including 207 734 280.0 thousand tenge at the expense of target transfers from the National Fund, execution amounted to 381 825 842.2 thousand, including 264,983,738 thousand tenge allocated to the budgets of local executive bodies. At the local level, the execution amounted to 261 198 4 thousand, including through targeted transfers — 161 700 234.4 thousand tenge, budget credits — 99 497 976.0 thousand tenge;
• From the local budget — 37 252 639.6 thousand tenge, the execution amounted to 36 811 008.0 thousand

In addition, to implement the Program, general transfers were sent in the amount of 7 023 500,0 thousand tenge, also extra-budgetary funds were attracted in the amount of 630 000.0 thousand tenge. In general, the execution of the program amounted to 426 304 531.8 thousand, or 99 % [4].

To implement projects aimed at solving problems under the Program, return mechanisms of project financing will be used, including those through joint-stock company «Fund of development of housing and communal services» in accordance with current legislation.

The Program is one of the mechanisms for implementing the predictive scheme for spatial development  of the country till 2020, approved by the Decree of the President of the Republic of Kazakhstan dated July 21, 2011 № 118 [5].

Predictive scheme for spatial development of the country until 2020 is an instrument of implementation of the new regional policy, which aims at creating conditions for sustainable development of the regions through the effective use of social and economic potential of each region.

Sustainable socio-economic development of the region depends on the level of self-sufficiency, selffinancing, self-repayment and economic independence. The level of self-sufficiency means the territory's self-sufficiency of resources (production, labor, natural, financial) ensuring a stable positive trade balance of export and import of products of the region, including the foreign economic relations. Sufficient level of selfsufficiency in the territory is the basis for independent economic policy aimed at ensuring the sustainability of socio-economic development of the region. Stability of self-financing of the regional economy is achieved through conducting effective fiscal, financial, credit, tax and price policies, the establishment of a fair interbudgetary relations, the development of the securities market, the development of the mechanism of regulation of investment and innovation activity, increase in exports, the level of income.

Self-sufficiency of the Republic of Kazakhstan regions is achieved through the receipt of income from economic activities of territorial structures to provide expanded reproduction process based on self-financing costs to maximize profits. Economic independence of the region expresses the degree of security of its economic (primarily financial) resources to pursue an independent economic policy aimed at ensuring sustainable socio-economic development of the region. To do this, one can spend a ranking of Kazakhstan's regions in terms of gross domestic product for the years 2013–2014 (Table 1).

T a b l e   1

Gross Domestic Product by the production method by regions of Kazakhstan 

Note. Compiled by the authors [6]. 

As evidenced by the data in Table 1, in recent years, the first positions are taken by Almaty (1st place), Astana (2nd place) and Atyrau region (3rd place). However, the volume of gross domestic product does not fully reflect the stability of the socio-economic development of the region. Sustainable development of the region involves ensuring internal and external sustainability of the regional system.

The internal sustainability refers to the sustainable development of the production, the maintenance of a stable balance of product export and import, employment and the appropriate level of life support.

The external sustainability refers to the stability of the region's balance of payments, stable foreign trade balance, presence of a stabilization fund (gold reserve), stability of equal inter-budgetary relations, a region's place in the national division of labor.

Thus, the sustainable development of the region is its ability to withstand the effects of a different nature, a rapid return to its original state in the event of a breach, or achieving a higher point in its development, a steady increase in the quality of life and ensuring the continuous extended reproduction of territorial economic complex.

For in-depth analysis let's look at the main indicators of socio-economic development of regions:

• the volume of industrial products (goods and services);
• gross output (services) of agriculture;
• volume of retail trade (Table 2).

T a b l e   2

Main indicators of social and economic development of the regions in 2015 y. 

Note. Compiled by the authors. 

Table 2 shows that the volume of industrial products (goods and services) by ranking takes Atyrau region (1st place), Mangistau region (2nd place) and Karaganda region (3rd place).

Atyrau region is positioned as a leading and dynamic center of production and deep processing of hydrocarbon raw materials, chemical industry, construction industry and a developed fishing industry. The role of the Mangistau and Karaganda regions as the «locomotive» of economic development of Kazakhstan will continue in connection with the prospects of development of the industry. At the same time the emphasis should be placed on the diversification of the structure of the regional economy in the direction of innovation, high-tech sectors of the economy and strengthening the country's transit potential.

Top positions in the agriculture occupy Almaty; South-Kazakhstan and North-Kazakhstan regions, and the worst position are the cities of Almaty and Astana. This is logical, since the city of Almaty and Astana are the centers for the provision of services. 

It is known that the socio-economic development of the region is determined by the objective needs and social trends. It is usually considered in terms of a set of various social and economic objectives, including such blocks as the changes in the institutional, social and administrative structures of society, the growth of production and income, changes in traditions and habits, the changes in the public consciousness.

Currently, the main goal of the socio-economic development of regions is to improve the quality of life.

In this regard, the process of socio-economic development includes three major components:

1. The growth of household incomes, improving health and raising the level of
2. Increasing the degree of freedom of the people, including their
3. Creating an environment conducive to the growth of self-esteem of people as a result of the formation of social, political, economic and institutional systems, focused on respect for human

The content of socio-economic development of regions can vary greatly, it is due to the peculiarities of each region, its geographical location, industrial structure and specialization, the initial level of development, and others. With these features we have compiled a summary table based on the data in Tables 1 and 2, to determine the ranking of regions Kazakhstan (Table 3).

T a b l e   3

Summary table ranking the socio-economic development of the regions of Kazakhstan for 2015 

Note. Compiled by the authors. 

Ranking indicates that the top three regions include East Kazakhstan, Karaganda and South Kazakhstan regions. In these regions there are special approach to solve problems of sustainable development, associated with the structure of the regional economy. Kyzylorda, Mangystau and North Kazakhstan regions on the worst place in the ranking.

The abolition of the old industrial structures of enterprise management located in the region, demands from regional governments necessity of finding new forms and methods of industrial cooperation and regional producers management in the unified structure of the economy of the region. Formation of major cross-industry complexes on the basis of this cooperation for the production of competitive products will increase the stability of the region. Such cross-industry complexes can solve the problems of reducing unemployment, providing new jobs and increasing incomes of territorial budgets due to tax deductions on income received from the sale of the products of these enterprises on the domestic and foreign markets.

Under these conditions, the formation of regional economic policy depends on the economic, social and institutional factors, taking into account the specifics of the region, the predominance of the private sector in major industrial and life-supporting industries [7]. 

Thus, the priorities of regional policy to ensure economic and social development should be:

• implementation of institutional reforms to facilitate the coordination of public institutions action for the sustainable development of the region;
• design of government measures to support the development of high-tech and competitive basic industries and economic sectors that promote the sustainable development of the territory;
• creating a favorable investment climate, ensuring the inflow of foreign investments;
• active social policy aimed at reducing the area of property differentiation of the population;
• ensuring the most effective usage of resources in the region;
• the organization of personnel training to modern methods of economic activities analysis of the enterprise and management decisions for sustainable development of economic

References 

1. The regional development program up to 2020. Resolution of the Government of the Republic of Kazakhstan from June 28, 2014, 728, [ER]. Access mode: online.zakon.kz
2. Strategy «Kazakhstan – 2050»: a new policy of established state. Message from the President of the Republic of Kazakhstan, Leader of the Nation A. Nazarbayev, December 14, 2012, [ER]. Access mode: www.ovp.bukhar-zhirau.kz
3. Nurly Zhol  -  Path  to  the    Message  from  the  President  of  the  Republic  of  Kazakhstan,  Leader  of  the  Nation N.A. Nazarbayev, November 11, 2014, [ER]. Access mode: www.akorda.kz
4. The explanatory note to «On execution of the republican budget for 2015» report of the Government of the Republic of Kazakhstan, [ER]. Access mode: http://www.minfin.gov.kz
5. Predictive scheme for territorial-spatial development of the country until 2020. Decree of the President of the Republic of Kazakhstan from July 21, 2011, 118, [ER]. Access mode: akorda.kz
6. Regions of Kazakhstan, Astana: Committee on Statistics, 2016, 23 , [ER]. Access mode: www.stat.gov.kz
7. Yssengeldin S., Murzatayeva G.K., Nurumova I.T. Bulletin of the Karaganda University, Series Economу, 2014, 3, p. 22–27.