- •Clusters and Competitiveness: An Analysis of ‘Kazakhstan 2050’ Strategy Textile cluster
- •Content
- •Main features of ‘Kazakhstan 2050’ strategy
- •Business clusters in ‘Kazakhstan 2050’ strategy
- •Food processing
- •Metallurgy
- •Construction materials
- •Oil and gas equipment
- •Textile
- •Tourism
- •Transport/logistics
- •Evaluation of the Textile Cluster’s prospects
- •Demand conditions
- •Firm strategy, structure and rivalry
- •Factor conditions
- •Skilled labor
- •Capital
- •Infrastructure
- •Supporting industries
- •Agriculture sector
- •Livestock (animal husbandry)
- •Challenges/barriers to develop textile business cluster
- •1) Lack of investment into industry.
- •2) Lack of Agricultural advisory services.
- •5) Lack of essential types of manufacturing.
- •6) Significant drawbacks in legal and regulatory environment.
- •7) Lack of skilled manpower.
- •1) Increase the amount of investment into industry.
- •2) Establish Agricultural advisory services.
- •3) Organize and support of farmer’s associations
- •4) Upgrade or purchase new technical equipment and other facilities
- •5) Provide essential types of manufacturing.
- •6) Reconsider legal environment in this sphere
- •7) Increase quality of education and provide necessary trainings
2) Establish Agricultural advisory services.
Agricultural advisory services (i.e. providing farmers with agricultural consultation, advice and knowledge) are very important in the transition of agricultural production from old, socialist system to new and modern one. Fortunately, there are some attempts by the government of Kazakhstan to establish agricultural advisory services. Bright example is KazAgroInnovatia. However, due to the reason that not all farmers are capable to pay for that services, they still remain not fully accessible. That again means that there is an urgent need in efficient agricultural advisory system that could help farmers to obtain needed advice on farming. New channels of agricultural knowledge, innovation in production and experience sharing should be established. That would definitely help to different types of farmers and their needs. Along with other activities, consultations will be provided, farmers will be connected to input suppliers, farmers will be informed about selling opportunities, helped to compile business plans, and accounting training sessions will be held.
3) Organize and support of farmer’s associations
The need for farmer’s associations is once again confirmed by the positive experience of such industrially and agriculturally developed countries like Belgium, the Netherlands etc. The fact that associations regularly play vital roles in helping farmers gain recognition as an independent sector and in lobbying their interests at the national level is shown on a regular basis. The bottom-up organization of farmer’s associations in such countries means that support from the state is received but is does not grow into overly control or too much influence, and of course it contribute to the wellbeing of agricultural producers. Same positive practice should be used while establishing farmers as an important segment of the economy in Kazakhstan.
4) Upgrade or purchase new technical equipment and other facilities
The recommendation would be to buy new and/or significantly upgrade existing technical equipment and provide with facilities for machinery construction. Also, specifically beneficial conditions for farmers should be created: to take loans with very low interest rates and on long period of time, if the loan is taken specifically for buying the equipment for cotton producing purposes.
5) Provide essential types of manufacturing.
Government should have been more concerned about the fact that even existing manufacturers and businesses in the industry of textile are not provided enough with fabrics, leather shoes and own knitted goods. We should aspire to satisfy country’s demand for garment and knitwear by our own production. Also vital types of manufacturing: the production of yarn, woolen and worsted cloths for clothing, lining and blended fabrics, sewing threads, zippers, auxiliary materials, insulation, etc. should be established. So that production costs could be decreased because of native and high quality essential garment costs.
