An analysis of international experience in implementing regional policy shows that its key goal is to provide all regions of the country with equal administrative, legal and institutional conditions that promote sustainable economic development based on their own potential. At the same time, an important element of regional policy is targeted support for less developed territories, aimed not at fully equalizing the levels of socio-economic development, but at creating equal starting opportunities for all regions. This is not about achieving the same results, but about equitable access to resources, infrastructure, and public assistance mechanisms. Ultimately, residents of different regions of the country should have comparable conditions for living, working, accessing quality services, and participating in public and political life.

In the light of the geographical, socio-economic features of Kazakhstan, a number of systemic unresolved problems remain in the country, which significantly limit the potential for sustainable and balanced development of the regions. These challenges are complex and manifest themselves at the geographical, social and economic levels.

Geographical factors:

- unfortunately, the low population density over a large area makes it difficult to form sustainable economic ties, restricts the development of local markets, and increases the cost of providing public and social services;

- the remoteness of many regions from major global and national economic centers reduces their export potential, makes them less attractive for investors and restricts access to international logistics routes;

- sparseness and isolation of settlements, especially in rural areas, creates difficulties for infrastructure development and implementation of regional programs.

Social factors:

- the decline in the birth rate, the aging of the population and the outflow of able-bodied population to large cities and abroad lead to demographic imbalance, staff shortages and a decrease in social activity in small settlements;

- Inter-regional inequality in the quality and accessibility of basic social services (education, health, culture) contributes to increased social polarization and internal migration;

- a significant lag in the standard of living of the rural population compared to the urban one is expressed in lower incomes, limited access to infrastructure and social benefits, which increases depopulation processes and social apathy.

Economic factors:

- the limited number of economic growth centers leads to the concentration of investment and labor resources in several key regions, while most of the country remains on the periphery of economic development;

- low level of transport connectivity between regions limits internal mobility, increases logistics costs and slows down the development of the domestic market;

- the lack of compliance of the existing infrastructure (roads, communications, energy supply) with the needs of the modern economy hinders the attraction of investment and the development of productive potential;

- the high share of low-tech, raw materials and labor-intensive industries weakly stimulates innovation, does not contribute to increasing value added and does not ensure competitiveness in foreign markets;

- the low level of entrepreneurial activity, especially in rural areas and small towns, is due to poor access to financial resources, lack of business skills and institutional barriers to doing business.

In addition to the above-mentioned factors, it can be noted that despite the ongoing decentralization and expansion of the powers of local self-government bodies, many local authorities remain dependent on centralized financing. Limited powers and resources hinder the effective solution of local problems, which reduces public confidence in the authorities. The introduction of elective rural akims is an important step, but without additional mechanisms to support local budgets and improve the skills of managers, its effectiveness may be limited.

According to experts of JSC «Center for Marketing and Analytical Research», in order to increase competitiveness, Kazakhstan should pay more attention to the development of regions, using available resources to create regional clusters. However, today there is a huge gap between Kazakhstan's regions in many social and economic indicators. Most of the regions have a low level of competitiveness, and none of them received a high assessment of the level of productivity^[85].

The prospects for the development of regional policy in Kazakhstan include the following areas:

Economic diversification and support for non-primary industries.

To reduce the regions ' dependence on extractive industries, it is necessary to develop industrial production, agriculture, tourism and the IT sector. Industrialization and entrepreneurship promotion programs play an important role in this process. It is also necessary to develop clusters of small and medium-sized enterprises that contribute to job creation and increase the economic sustainability of the regions.

Strengthening the role of local self-government

Further expansion of the powers of local authorities, mechanisms for direct election of mayors, and increased transparency of the budget process can contribute to more effective local governance. It is important to introduce mechanisms of public control and increase the participation of citizens in decision-making at the local level.

Development of transport and digital infrastructure.

Expanding the network of roads and rail routes, digitalizing public services, and supporting Internet access in small settlements will help increase the integration of regions into national and international economic processes. It is also necessary to develop domestic air transportation and modernize railway junctions, especially in remote regions.

Creating conditions for retaining frames.

The introduction of programs to attract and retain young professionals, including subsidizing housing, raising wages in the social sphere and supporting entrepreneurship, can reduce the level of migration from the regions. It is also important to develop universities and research centers in the regions, which will create intelligent growth centers.

Environmental modernization.

An active policy is needed to introduce "green" technologies, improve the environmental monitoring system, and develop comprehensive programs to improve the environmental situation in industrial regions. An important area is the introduction of circular economy principles, reduction of greenhouse gas emissions and development of renewable energy sources.

Improving the investment attractiveness of the regions.

Regional development requires attracting foreign and domestic investment. In this context, it is important to improve the legislative framework, improve the business climate and create special economic zones with special conditions for business.

Development of the agro-industrial complex.

Agricultural regions can get an additional incentive for development by introducing modern technologies, improving the irrigation system and supporting farms. The development of organic farming and export orientation of agricultural products will help to increase the competitiveness of the industry.

Promotion of interregional cooperation.

Enhancing economic and social ties between regions contributes to the exchange of experience, reducing disparities and creating a common economic space. The state can encourage such initiatives through grant programs and the development of transport logistics.

Thus, the state regional policy of Kazakhstan requires modernization in accordance with modern economic and social challenges. Solving existing problems and implementing the proposed promising areas will help to balance the development of regions, improve the quality of life of the population and strengthen the stability of the country's economy. This requires a comprehensive strategy that includes measures to strengthen the economic independence of the regions, develop human capital, and improve the quality of public administration.

 

Control questions

 

1. What role do central government bodies play in shaping regional policy?
2. What functions do local executive bodies perform in implementing regional policy?
3. Consider the powers of maslikhats in the field of regional development
4. What are the main objectives of the state regional policy of Kazakhstan?
5. How does regional policy help eliminate socio-economic disparities between regions?
6. Does the region's economic specialization affect its development? If so, how?
7. What financing mechanisms are used to implement regional policies?
8. What are the main problems characteristic of the modern regional policy of Kazakhstan?
9. What role does decentralization play in improving the effectiveness of regional policies?
10. What are the prospects for integrating Kazakhstan's regions into global economic processes?

 

Questions for discussion

 

1. What, in your opinion, are the main tasks facing Kazakhstan's regional policy for the next 10-15-years? What measures should be taken to address regional disparities? How can we ensure the sustainable development of small towns and rural settlements?
2. How effective, in your opinion, are state support programs for the regions? What role do digitalization and innovative technologies play in regional governance?
3. Is it possible to further expand the powers of local authorities? What global models of regional governance can be useful for Kazakhstan?

 

Case studies

 

Case 1. Goals and objectives of the state regional policy.

In State N, the Government is updating its regional development strategy. As part of the reform, it is necessary to determine the priority goals of the state regional policy, based on the socio-economic problems of the country. In recent years, the following trends have been observed:

- narrowing the income gap between regions;

- urbanization and population decline in rural areas;

- unemployment rate in certain industrial regions;

- sufficient infrastructure development in remote areas;

- an imbalance in investment between the capital region and the periphery.

Task:

- outline the main objectives of the state regional policy in this context. Should they be related to leveling regional development, increasing investment attractiveness, supporting demographics, or other aspects?

- formulate the key tasks that need to be solved in order to achieve your goals. For example, what measures can be taken to improve the investment climate in depressed regions?

- provide a system of indicators to assess the implementation of regional policy objectives. What quantitative and qualitative indicators (for example, the unemployment rate, investment volume, infrastructure development index) can be used to monitor the effectiveness of the strategy?

 

Case 2. Factors of regional policy formation.

Region M faces the following challenges:

- demographic decline: the population is declining due to the migration of young people to more developed regions;

- high level of unemployment, especially among young people;

- low level of investment in industry and infrastructure;

- poor development of the transport network, which limits economic activity;

- lack of strong local institutions capable of initiating regional development.

The regional authorities are planning to develop a new regional development program, but it is necessary to take into account the key factors influencing the formation of regional policy.

Task:

- analyze the main factors influencing the formation of regional policy. For example, what economic, social, demographic, political, and environmental factors need to be considered in a given region?

- tell us what factors are key for the sustainable development of the region. Should priority be given to economic reforms, infrastructure projects, or social programs?

- develop proposals for adjusting the regional policy based on the identified factors. What measures can be taken to reduce the outflow of population, increase investment and create jobs?

Case 3. Regional policy in the crisis.

Region S is experiencing an economic crisis due to the closure of a large city-forming enterprise, which employed a significant part of the population. Consequences:

- unemployment rate from 6% to 18%;

-reduction of tax revenues to the local budget;

- an increase in consumer demand, which affected small and medium-sized businesses;

- an increase in social tension, protest moods among the population;

- lack of a clear plan of action for the regional authorities.

There is an urgent need to develop anti-crisis measures aimed at restoring the region's economy.

Task:

- outline the main anti-crisis measures of regional policy that can be implemented in the short and medium term. For example, what support measures can be offered to unemployed citizens?

- develop a program to support employment and entrepreneurship in the region. How can we encourage the creation of new jobs, attract businesses, and develop new industries?

- appreciate the possible long-term consequences of the crisis and suggest measures to prevent similar situations in the future. What structural reforms will help the region become more resilient to economic shocks?

 

^[85] Sagimbekov, M., & Pshembayeva, U. (2014). Competitiveness Rating of Kazakhstan's Regions. JSC «Center for Marketing and Analytical Research». http://www.kaznexinvest.kz/press-center/smi/676/. Accessed on April 4, 2025.