Economic sciences/9. Industrial economy

 

master of economy and business Zhagalbaeva N.T.

D. Serikbayev East Kazakhstan State Technical University, Kazakhstan

State Regulation of Development of the Industry in the Region

(on the example of the East Kazakhstan Region)

 

The decision of social problems is impossible without cardinal improvement of a situation in economy and accelerations of rates of its development. In spite of the fact that leading sector in world economy and economy of the advanced countries now is the sphere of services that characterizes transition to a postindustrial stage of development, value of industrial sector in world economy is still very great. The world postindustrial economy, by L.M.Sintserov's well-aimed definition, is consolidated mainly by industrial means. Still contrasts between developed and developing countries are characterized first of all by their industrial potential. Without belittling value of any of national economy spheres, it is necessary to recognize that economic power and position of any country of the modern world are defined, first of all, by its industrial potential. Political position of the country in the world community and well-being of citizens occupying it also depends of the tier of development of the industry.

In creation of gross domestic product (GDP) the share of the industry in stably developing economy makes about 30-38 %. About 17 % of economically active world's population are occupied in this sphere.

The industry as major branch of economy is defined by a technological level of other branches of a national economy and social sphere. The positive dynamics of industry predetermines the level if social welfare. Therefore the main state task consists in preservation, development and rendering of support to the national industry. Proceeding from that role which it plays in economic life of the nation, development of the industry should be a priority number one in the state economic policy.

At regional level, maintenance of social stability and economic self-sufficiency of a region first of all depend on an industry condition. The East Kazakhstan region is one of the industrially-developed regions of Kazakhstan. The region makes 5,9 % of the gross national product of the country (as of 2010). Occupying 10,2 % of the territory of Kazakhstan, the region makes about 5,3 % of an industrial output of the republic. There are the large enterprises of non-ferrous metallurgy, mechanical engineering, power industry, the food-processing industry, easy and woodworking industry, building industry, many of which are unique in the republic. Competitiveness of economy of the region is based on industrially-innovative development. In regional scale the East Kazakhstan region is typical area of nonferrous metallurgy with accurately certain specialization and a set of branches which are combined with easy and the food-processing industry.

The share of industrial production in a total regional product is 29,8 % (by 2010 year). The calculations proving industrial specialization of the region are presented in table 1.

Table 1

Coefficients of localization (specialization) of manufacture of the East Kazakhstan region

 

2005 year

2007 year

2009 year

Agriculture

1,473

1,281

1,687

Industry

1,001

1,095

0,961 @ 1

Building

0,674

0,686

0,537

Trade

1,022

0,877

1,062

Transport and commynication

1,038

0,888

0,77

Other services

0,962

1,045

1,082

(The note. It is made by the author)

Analyzing coefficients given in table 1, leads us to the conclusion that industrial production objectively is a branch of specialization of economy of the region (the coefficient of localization is more 1): localization of industrial branch in the East Kazakhstan region exceeds an average share of this branch in total output of the country.

 

                                                                                                                                   

 

 

 

 

Drawing 1. Region industries

In structure of the industry of the region the main share (72,1 % - 2010 year) from total amount of industrial potential of the region is made by manufacturing industry (drawing 2). Leading branch in manufacturing industry is non-ferrous metallurgy. Its relative density in the general potential of the branch in 2010 was 57,9 %. It was completely exported.  Priority branches in the industry are also mechanical engineering, with relative density of 13,8 %, and manufacture of foodstuff, including drinks - 12,6 %. As a whole in the region in 2010 the index of physical volume in manufacturing industry (136,5 %) exceeds other indexes, including the general index of physical volume of the industry of region which has made 108,6 %. The begun changes in structure of economy are the results of the realization of the government program of the forced industrially-innovative development.

 

 

 

 

 

Drawing 2. Structure of industrial production of the East Kazakhstan region

Thus, the East Kazakhstan region is industrially developed region with the good level of the industrial production. It is necessary to notice that growth of industrial outputs, anyhow, has led to the accelerated development of service sectors of economy, including retail trade, transport, financial and telecommunication services, building, and also the growth of incomes of the population, the expansion of the volumes of the investments, the increase of export and the incomes from export.

Along with intensive development of the industry in the EKR there are many problems in development of this sector of the economy of the region:

– low competitiveness of the production of manufacturing sector. First of all, it is connected with low technological level of the enterprises, high physical deterioration and moral obsolescence of the equipment;

– shortage of professional shots which would meet the requirements of modern technological way, and as consequence attraction of foreign experts;

– low level of innovative activity of the national enterprises;

– shortage of circulating assets and inaccessibility of long credits with the low interest rate;

– incomplete use of available capacities;

–high consumption of energy;

– a low share in production of the high technology, highly technological products with the high added cost;

– vulnerability of domestic market from unfair import (mainly in branches of easy and food-processing industry);

– ecological problems arising because of nuclear tests on Semipalatinsk range and the pollution of the Irtysh river, constant increase in emissions of a toxic waste;

– the limited nomenclature and a low share of internal consumption of production;

– imperfection of standard legal certificates in sphere of the state purchases (payment for put production frequently 60-90 days after delivery);

 

     

– an insufficient level of development of ancillary industries of economy (an industrial and social infrastructure).

According to the data of the Ministry of preservation of the environment of the Republic of Kazakhstan, among the register of environmental problems of the East Kazakhstan region designated one global, six national and two local problems which demand the decision.

Administration of the East Kazakhstan region conducts full-scale work on support and development of industrial sector of economy. The industrial policy in region is carried out by means of realization of three main groups of programs (drawing 3).

 

 


                                                                                                      

 

 

 

 

 

 

 

 

Drawing 3. The industrial policy in the East Kazakhstan region

The regional operating center of the forced industrially-innovative development of Kazakhstan in East Kazakhstan region is the Coordination Council of the forced industrially-innovative development of the region. The Card of Industrialization of East Kazakhstan was developed. It included 29 investment projects for a total sum more than 493,3 billion tenge.

For creation of the favorable environment for further industrial development  the zone of high technologies was developed and approved. The work on formation and development of innovative infrastructure of region is continuing, except the Zone of high technologies there are also scientific-research potential (universities, KazGIPROtsvetmet, Non-ferrous Metals Scientific-Research Institute) and technoparks (Technopark "Altai", joint-stock company «Park of Nuclear Technologies»), design office of the enterprises of the region and the enterprises mastering a know-how.

At the same time, more active state industrial policy is really necessary, as in region the primary orientation of the economy of the region remains. The ways of the further development of industrial production of the East Kazakhstan region can become:

1) introduction of jeweler manufacture in region, which will serve not only expansion and a manufacture diversification, but also promotes development of the Kazakhstan jewellery, and also will make a competition of similar import production;

2) in region there are assembly manufactures on assemblage of cars, buses and tractors where, beginning from knots and units to last screw, are delivered on import. So that is the severe need of creation of production on making of accessories for these assembly manufactures arises;

3) the main important artery – the Irtysh river and its inflows still have in sufficient potential for the development of the necessary energy, especially the cost price of its development is much cheaper, than in thermal stations, and such possibility is characteristic only this area among regions of Kazakhstan. Therefore on the regions’ rivers can be built average and small hydroelectric power stations. Simultaneously with it realization of projects on use in this direction of alternative (renewed) sources of development of electric energy isn't excluded;

4) simplification of access of the enterprises and firms of high technologies to “the risk capital”.

At rationally thought over policy of industrially-innovative development, the East Kazakhstan region has all possibilities and chances to become the center of extraction and deep processing of non-ferrous metals, working out and skilled study of technologies in sphere of the metallurgy dynamically developed by manufacturing industry, region with positive dynamics of economic space and steady growth of a degree of quality of life of the population.

 

Literature:

1.     Tatarkin A., Romanova O. The Industrial Policy and the Mechanism of its Realization: the System Approach // Regions’ economy. -2007.-¹ 3- 21 p.

2.     Aytjanova D. Problems and Priorities of the Transition of the National Eeconomy to Innovative Model of the Development // The industry of Kazakhstan. – 08.2008. – 8-11 p.

3.     Ibraeva B. R. The Role of the Industrially-Innovative Factor in Maintenance of the Sustainable Development of Kazakhstan // Transit economy. – 2009. -      ¹ 3/4/ - 51-61 p.

4.     The Program of the Development of the Territory of the East Kazakhstan region on 2011 – 2015