- •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
Infrastructure
In Soviet times, such giant enterprises in the republic as the Alma-Ata Cotton Plant (Almaty Cotton Plant), Kostanai and Semipalatinsk worsted woolen mills; leather and footwear Dzhambul Plant were put into operation. 18 garment factories were working, which on the eve of the collapse of the Soviet Union have been equipped with new imported equipment.
After independence, most of these enterprises have been closed down. The main reasons to put the industry on the brink of collapse are: inflation, high interest rates loans, tax burden, ill-conceived privatization, uncontrolled flow of imports.
Nevertheless, the country is looking forward and is going to attract large investments to improve the infrastructure and overall conditions on major working plants. And the main prospective is lying on the long-term basis, mainly to accomplish the idea of “Ontustik” project.
But we also suggest not only waiting for the help from Chinese investors, but putting all efforts to rebuild and renew old plants, for example Almaty Cotton Plant. The country is in high need of textile production that will serve for the internal market, rather than exporting everything.
Supporting industries
Since we deeply immersed into the textile sector of Kazakhstan, it is important to mention all the supporting sectors that help to develop and on which textile industry depends on. So, we may identify the following industries as the main supports for textile production in Kazakhstan:
Agriculture sector
Animal husbandry
Agriculture sector
Agricultural industry is an important branch of Kazakhstan’s economy that contributes 7% of country’s GDP. Moreover, Kazakhstan is ranked as the 6th largest producer of wheat in the world. Besides wheat production, country also focuses on the crops, such as cotton, flax, barley and others. Talking about cotton production in Kazakhstan, it can be said that cotton is grown only in South Kazakhstan region. Yields are relatively lower than in Uzbekistan and production is hampered by a deteriorating irrigation infrastructure (all of the Kazakhstan’s cotton is irrigated.) Planted area doubled between 1997 and 2004, reaching a record level of 216,000 hectares; then contracted nearly as sharply over the following five years. Estimated production for 2009 was the lowest in over ten years.
However, despite the fact that in 2013 the area under cotton was reduced by 4.2 thousand hectares, country was able to increase its production collecting 272,000 tons of cotton, which is 8,000 tons more than in 2012. On average, South Kazakhstan collected from each hectare about 27 quintals and it was the highest rate for the past decade.
Such increase in production was due to the fact that we learned how to use technology to save water. Three years ago, the yield in the region was at 15.9 quintals per hectare and we increased production by 70% due to the development in the field of modern technologies.
Kazakh people from ancient times were considered as nomadic people, huge pastures allowed people to grow livestock in an ecologically clean environment.
