The researchers studied how private businesses influence the development of physical urban space and social capital in Almaty's off-center districts.
The report includes an analysis of the available literature and best international practices on business engagement in the modernization of off-center urban areas; analysis of the economic potential of Almaty's off-center areas, and in-depth interviews with experts and business representatives.
Almaty contributes with 22% to GRP, with 25% to total service volume, with more than 20% of tax revenues to Kazakhstan's budget, with 54% of financial and insurance services, with 47% of retail and wholesale trade, and with 1/6 to foreign trade turnover.
Trade occupies the largest share in the city's economy structure and about half of the GRP. Businesses focus mainly on consumers within the city, they don't promote products to foreign markets.
The increase in the share of industrial production is hindered by low labor productivity in the real sector. The off-center territory is seen by authorities as the base upon which new industrial facilities will be developed. Social infrastructure, housing, roads and communications are being built in Alatau and Nauryzbay districts. This will make the districts more attractive, but additional incentives will be required for the development of private businesses.
Natural growth and migration influence urban population growth. Alatau and Auezov districts contribute with 40% to the natural population growth. Alatau, Nauryzbai, and Turksib districts account for 90% of migration.
Unemployment in Almaty is about 5.3%, the employment structure in the districts is relatively even. However, in the context of headcount, three districts of Almaly, Bostandyk and Medeu contribute with the biggest share to the employment rate. Same areas provide a higher average salary.
The quality of physical space has a growing gap in the districts in terms of transport accessibility and convenience, basic utilities, green spaces, etc.