New projects, shadow tourism, and déjà vu in the industrial zones of East Kazakhstan.
With positive dynamics across all key indicators of socio-economic development, the East Kazakhstan region has completed 2024, according to data presented by the akimat of VKO. The gross regional product for the past year is expected to grow by 5-6% according to preliminary information.
The industrial production physical volume index (IPVI) increased by 3.4%, including the manufacturing sector – by 2.2%, mining – by 6.8%, electricity supply – by 8.6%, while water supply decreased by 8.3%. Gold production in doré alloy rose by 30.5%, gold-containing concentrates by 21.7%, unrefined lead by 14.9%, refined unrefined copper by 12.9%, and unrefined zinc by 6%. However, the production of refined gold decreased by 4.7%, and refined silver by 30.6%. A decline in metal production was noted at Kaztsink LLP: Silver production has been affected by sanctions in the Russian Federation, specifically due to a halt in the import of raw materials from Magadan. Low-silver lead concentrates are imported from Mexico. The decrease in gold production occurred due to reduced supplies of gold-containing raw materials from Kyrgyzstan and an increase in the loading of lead-containing raw materials, as reported by inbusiness.kz.
Where Have the Birds Gone?
According to the results of last year, the agricultural sector leads in growth compared to all other industries in VKO, noted Gulshtat Korganbaeva, acting head of the regional economy and budget planning department, at an expanded open meeting with akim of VKO Ermek Kosherbaev. She stated that the effectiveness of the work is influenced by the quality of the sowing campaign. This year, it is planned to issue loans worth 17 billion tenge for spring field activities under the "Ken Dala" program. Last year, 12.2 billion tenge was allocated for these purposes. The gross agricultural product output in VKO for 2024 amounted to 458.5 billion tenge, with a growth rate of 6.6% and an IPVI increase of 8.7%. This includes crop production – 242.5 billion tenge with an IPVI growth of 12%, and livestock – 215.9 billion tenge with an IPVI increase of 5%.
In 2024, 14 projects of the agro-industrial complex were implemented for 20.6 billion tenge, creating 31 jobs. The sown area for agricultural crops in the region amounted to 607.4 thousand hectares, decreasing by 31 thousand hectares or 4.8% compared to 2023. At the same time, according to the akimat of VKO, 564 thousand tons of grain crops were harvested, which is 46% more than the level of 2023. The average yield of grain crops was 22 quintals per hectare, while the national average was 16 quintals per hectare. The gross harvest of oilseeds increased by 18% with an average yield of 18.9 quintals per hectare, compared to the national average of 11 quintals per hectare. By the end of 2024, the number of cattle increased by 12% (361.8 thousand heads), and horses by 4.5% (224.7 thousand heads).
At the same time, there was a decrease in the number of small livestock in VKO – by 1.7% (551.6 thousand heads), and poultry – by 6.4% (3.5 million heads). These figures particularly interested Ermek Kosherbaev, who questioned his subordinates at the meeting about the reasons behind this.
"We aligned the statistics from last year, but there is no decline in poultry production," he heard as an excuse.
The akim promised not to criticize officials for these figures but requested that they analyze whether the population has reduced its consumption of poultry meat or if its import from outside VKO has increased.
"It's good if we import poultry from Abay region or somewhere else in Kazakhstan. But if they have started importing from our neighbors, that's a reason to think. I'm not against working with our neighbors, but we should only take what we do not produce ourselves," said the akim. "Perhaps the producer lacked feed, or maybe something else was missing this year? In other words, we need to engage in dialogue, sit down with each enterprise, large or small."
Land at a Distance
Regarding the decrease in the number of cattle, Ermek Kosherbaev stated that rational land use is necessary.
"In total, we returned 120 thousand hectares of land. I started investigating why we cannot further use the lands we are returning to state ownership for their intended purpose. I am told that all lands adjacent to district settlements are allocated and are all in economic circulation. The returned lands are remote. But they are suitable for haymaking and livestock grazing. In other words, you have the main tool to diversify in pasture livestock farming, and for that, you need to prepare corresponding plans," he addressed the district akims. "Typically, people engaged in animal husbandry are not even aware of this. They do not want to engage with your bureaucracy when you start demanding: 'I will give you five or 20 hectares, but you must prepare such a plan.' He will not make a plan. Plans can be made by large enterprises that have 10-12 thousand heads of livestock. The rest are forced to keep as many as they can."
In this regard, Ermek Kosherbaev instructed district akims to monitor the situation in each district, how many farms there are, what they are engaged in, and what development paths each farm has, as well as to explore cooperation opportunities. To be honest, they should have done this yesterday. Gulshtat Korganbaeva, in her report, listed several tasks for city and district akims, including determining the list of villages where small industrial zones are planned to be created.
By the way, a small industrial zone is a territory equipped with engineering and communication infrastructure and operational production and other premises (small industrial zones). It is possible to locate small and medium-sized enterprises there. Interestingly, the need to create industrial zones in VKO, particularly in Ust-Kamenogorsk, was discussed about 20 years ago. Two such zones were built in the regional center, but neither is operational. However, hundreds of millions of tenge of budget funds were spent on their creation and equipping.
"Why do you think small industrial zones in the regions will work? Who came up with them, and are there plans for their development? Or is it just a company initiative?" Ermek Kosherbaev questioned. "Do akims have plans for the development of these zones? How does it depend on the social-entrepreneurial corporation? What state programs do you intend to use to attract people to these small industrial zones? What conditions will the government create to bring entrepreneurs there? Entrepreneurs will not come from far away; they will be local people, our compatriots."
In response, Gulshtat Korganbaeva provided an example of small industrial zones in the border Zaisan district, which cannot be opened due to legislation that does not allow land to be allocated for the development of this zone near the border post and customs "Maikapchagay." However, the akim noted that this issue has already been discussed in the government and will be resolved.
"We want to build small electronic factories in the small industrial zone of Zaisan district. We also plan to build small tractor manufacturing plants. These small tractors are not very costly," Gulshtat Korganbaeva reported. "A large factory has approached us that wants to manufacture binoculars and other sensory equipment that we need."
In response, the akim expressed that he liked the initiatives from Zaisan district: in a region where, according to him, "there are practically no cucumbers, tomatoes, or anything growing," they were the first to organize a stream production of "all this." Specifically, in Zaisan district, they opened processing for sea buckthorn, which grows in the neighboring Tarbagatay district of VKO, freezing it and producing food additives.
"So, my dear, when you do these things, demand from the management: 'Give me a breakdown of what you are saying about the small industrial zone.'
And I know that no one can really answer because the department of entrepreneurship and industrial-innovative development does not deal with this. Akims are planning to build something, but everything is just in plans," he added.
"Fleeing from Authorities"
As always, tourism remains a key aspect of regional development. However, the akim of VKO openly stated at the meeting that his directive to identify unregistered recreation zones has essentially gone unfulfilled.
"Walk around the coastal areas where tourism facilities can be developed," he addressed the akims of cities and districts. "Last year, there were many