OECD Urban Policy Reviews: Kazakhstan

234 Pages·2017·5.07 MB·English

by  Organization for Economic Cooperation and Development (editor)

OECD Urban Policy Reviews
KazaKhstan
OECD Urban Policy Reviews
OECD Urban Policy Reviews provide a comprehensive assessment of a country’s urban policies as seen
through multiple lenses, including economic, social and environmental. First, the reviews focus on the policies
designed and introduced by the central government that directly address urban development and regional
KazaKhstan
development policies with an urban development focus. Second, the reviews analyse how national spatial
planning for urban regions, along with specific sectoral policies, impact urban development, directly
and indirectly. Often, public policies are designed to target sectoral objectives with little or no regard
for their profound impact on urban areas, and the means available to implement policies at the local 2017
level. Third, the reviews address issues of governance, including inter-governmental fiscal relationships
and the various institutional, fiscal and policy tools aimed at fostering co-ordinated urban development
among different levels of government and different administrations at the central level. For example, reducing
the fragmentation among urban governance structures can help enhance effectiveness and outcomes in public
service delivery and other policy areas. From country to country, the OECD Urban Policy Reviews follow
a consistent methodology that features cross-national comparisons and recommendations on the integration
of sectoral policies into urban development policy, planning and management.
Urbanisation is an important condition for economic development, but must be managed effectively if cities
are to realise their potential as engines of national growth. This report provides a comprehensive assessment
of Kazakhstan’s urban policies in terms of economic, social and environmental impact. It analyses how national
spatial planning for urban regions, along with specific sectoral policies, affect urban development directly
and indirectly. It also looks at specific issues such as housing, public utilities, urban transport, and migration.
The review assesses the efficiency and effectiveness of current urban governance arrangements, and makes
recommendations for steps Kazakhstan can take to develop an attractive and well-managed system of large
and medium-sized cities that can help it achieve its development objectives.
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isbn 978-92-64-26884-5
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04 2017 02 1 P

OECD Urban Policy
Reviews: Kazakhstan
This work is published under the responsibility of the Secretary-General of the OECD. The
opinions expressed and arguments employed herein do not necessarily reflect the official
views of OECD member countries.
This document and any map included herein are without prejudice to the status of or
sovereignty over any territory, to the delimitation of international frontiers and boundaries
and to the name of any territory, city or area.
Please cite this publication as:
OECD (2017), OECD Urban Policy Reviews: Kazakhstan, OECD Publishing, Paris.
http://dx.doi.org/10.1787/9789264268852-en
ISBN 978-92-64-26884-5 (print)
ISBN 978-92-64-26885-2 (PDF)
Series: OECD Urban Policy Reviews
ISSN 2306-9333 (print)
ISSN 2306-9341 (online)
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FOREWORD –

Foreword
By 2050, the world urban population is expected to nearly double. Urbanisation will be one
of the most important transformations of the 21st century. The importance to the national
economy of cities and their corresponding metropolitan areas makes them critical players in the
international marketplace. Throughout OECD member and non-member countries,
governments have renewed their support to cities and have adopted policies to solve traditional
urban problems such as urban sprawl, abandoned districts and poverty, as well as newer issues
such as competitiveness, city marketing, environmental sustainability and innovation. The
adoption of the New Urban Agenda at Habitat III in October 2016 provides governments with a
set of global standards in sustainable urban development and the way cities are built and
managed.
The OECD Urban Policy Review of Kazakhstan highlights that, while the country is
modernising, its urban centres still show a number of weaknesses that need to be addressed if
they are to achieve their full potential as the main engines of economic growth. As urbanisation
progresses, the country’s economic performance will be more closely linked to the functioning
of its cities and its urban governance system. The review suggests that Kazakhstan needs to
invest in the quality of its urbanisation if it is to achieve national development objectives.
Urbanisation is a necessary, but not sufficient, condition for economic development. Developing
an attractive and well-managed system of large and medium-sized cities is thus of particular
importance for Kazakhstan. This requires an urban development framework that clearly
formulates policy direction, concepts and strategies for urban and spatial development, and a
comprehensive land-use planning system.
OECD Urban Policy Reviews are conducted by the OECD Regional Development Policy
Committee (RDPC) through its Working Party on Urban Policy, a unique forum for
international exchange and debate. The OECD reviews follow a consistent methodology that
features cross-national comparisons and recommendations on the integration of sectoral policies
into urban development policy, planning and programmes. The reviews provide a
comprehensive assessment of a country’s urban policies as seen through multiple lenses,
including economic, social and environmental. First, the reviews focus on the policies designed
and introduced by the central government that directly address urban development challenges.
Second, the reviews analyse how national spatial planning for urban regions, along with specific
sectoral policies, affect urban development directly and indirectly. Third, the reviews address
issues of governance, including intergovernmental fiscal relationships and the various
institutional, fiscal and policy tools aimed to encourage co-ordinated urban development among
different levels of government and different administrations at the central level.

Lamia Kamal-Chaoui
Director, Centre for Entrepreneurship, SMEs, Local Development and Tourism, OECD

OECD URBAN POLICY REVIEWS: KAZAKHSTAN © OECD 2017
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– ACKNOWLEDGEMENTS

Acknowledgements
This review of Kazakhstan is part of a series of Urban Policy Reviews produced by
the OECD Centre for Entrepreneurship, SMEs, Local Development and Tourism and its
Regional Development Policy Division, led by Joaquim Oliveira Martins. The review was
made possible through the financial support of the Ministry of National Economy of the
Republic of Kazakhstan.
The OECD Secretariat is grateful to Kuandyk Bishimbayev, Minister of National
Economy of the Republic of Kazakhstan; Roman Sklyar, Vice Minister of National
Economy; Zhaiyk Sharabassov, Director General of Regional Policy, Assessment and
Analysis of the Regions; and the co-ordinating team at the Ministry of National Economy
led by Dauren Zhambaibek and with excellent support from Arslan Bissembayev,
Sholpan Baimagambetova, Nurlan Seitkhanov, and Dauren Zakumbayev. The Secretariat
would also like to acknowledge the numerous representatives from the public and private
sectors, civil society and academia who shared perspectives with the OECD delegation.
In particular, the Secretariat would like to thank Anara Makatova, Yelena Yerzakovich,
Malika Tukmadiyeva, Mats Andersson, Meruert Makhmutova, and Aigul
Kosherbayeva. Special thanks go to the authorities of Astana, Almaty City, South
Kazakhstan oblast, Shymkent, Turkestan and Kentau for the organisation of the
interviews and the valuable information provided. Kazakhstan’s Committee on Statistics
provided valuable data and assistance for this review. Thanks also go to the Asian
Development Bank local office in Astana for sharing their perspectives with the OECD
delegation. The Secretariat is grateful to the governments of Canada and Turkey for
acting as leading peer reviewers.
This report was co-ordinated by Oscar Huerta Melchor and drafted by Antoine
Comps, Madina Junussova and Oscar Huerta Melchor. Rüdiger Ahrend, Head of the
Urban Programme, supervised this review and provided critical guidance throughout the
process. Valuable comments and input were provided by Daniela Glocker, Isabelle
Chatry, Karen Maguire, Monika Sztajerowska, Tierra McMahon, Michael O’Neill, and
Andrea Uhrhammer. The Secretariat is grateful to Dan McCarthy, Director of Energy and
Environment Policy at the Atlantic Canada Opportunities Agency, for his useful
comments and advice. This report was elaborated within the framework of the
Kazakhstan Country Programme and benefitted from the support of colleagues from the
OECD Eurasia Programme at the Global Relations Secretariat. Special thanks to Pilar
Philip, Joanne Dundon, Vicky Elliott and Cécile Cordoliani for preparing the review for
publication.

OECD URBAN POLICY REVIEWS: KAZAKHSTAN © OECD 2017
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TABLE OF CONTENTS –

Table of contents
Acronyms and abbreviations ................................................................................................................ 9
Executive summary .............................................................................................................................. 13
Assessment and recommendations ..................................................................................................... 17
Chapter 1. Kazakhstan’s urban system and its challenges ............................................................... 29
Introduction ........................................................................................................................................ 30
Kazakhstan’s urban structure ............................................................................................................. 32
Urbanisation in Kazakhstan................................................................................................................ 42
Kazakhstan’s urban challenges .......................................................................................................... 50
Cities, key economic challenges and innovation in Kazakhstan ........................................................ 67
Notes .................................................................................................................................................. 93
References .......................................................................................................................................... 97
Appendix 1.A1. Defining OECD functional urban areas ............................................................. 104
Appendix 1.A2. Functional urban areas of Almaty City, Astana and Shymkent ....................... 105
Chapter 2. Towards effective and sustainable urbanisation in Kazakhstan ................................. 109
Understanding urbanisation in Kazakhstan ...................................................................................... 110
Towards new urban planning principles .......................................................................................... 116
Responding to national urban challenges ......................................................................................... 122
Notes ................................................................................................................................................ 157
References ........................................................................................................................................ 160
Chapter 3. Governing urbanisation in Kazakhstan ......................................................................... 169
The local government structure and public administration .............................................................. 170
The urban governance system .......................................................................................................... 179
Paying for urbanisation .................................................................................................................... 190
Strengthening the capacity of subnational public administrations ................................................... 208
Cultivating dialogue with civil society ............................................................................................. 219
Notes ................................................................................................................................................ 223
References ....................................................................................................................................... 225

Tables

1.1. Territorial organisation in Kazakhstan (2016) ............................................................................ 32
1.2. Settlements (posiolki) with more than 20 000 inhabitants, 2016 ................................................ 35
1.3. Functional urban areas in Kazakhstan (2009) ............................................................................. 42
1.4. Estimated urbanisation rate, corrected for administrative-territorial changes ............................. 44
1.5. Estimated water losses (% of overall water supply) .................................................................... 60

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– TABLE OF CONTENTS

1.6. Heat prices for residential users in selected cities (2011-12) ...................................................... 62
1.7. Heat tariffs affordability in Kazakhstan's regional centres.......................................................... 62
1.8. Perceptions of obstacles to doing business by oblast .................................................................. 83
2.1. Core cities of the three largest urban agglomerations in Kazakhstan, 2016 .............................. 112
2.2. Getting cities right: the OECD perspective ............................................................................... 114
2.3. Development management instruments applied in OECD countries ........................................ 132
2.4. Types of social housing systems ............................................................................................... 136
2.5. Public and private transport in Almaty City, 2001 and 2011 .................................................... 140
2.6. Key requirements for energy-efficiency policies ...................................................................... 149
3.1. Territorial structure of SNGs in Kazakhstan ............................................................................. 173
3.2. Central government bodies involved in urban development in Kazakhstan ............................. 182
3.3. Proposal for a National Urban and Regional Development Co-ordination
Council for Kazakhstan ............................................................................................................. 186
3.4. Revenue of Kazakhstan’s SNGs ................................................................................................ 191
3.5. Main features of the budget for the cities of Almaty and Shymkent ......................................... 196
3.6. Revenue tools to finance public services and infrastructure ..................................................... 198
3.7. Debt of Kazakhstan’s SNGs ...................................................................................................... 202
3.8. Expenditure of Kazakhstan SNGs ............................................................................................. 203
3.9. Almaty City budget by sector, 2016 .......................................................................................... 204
3.10. Breakdown of responsibilities across SNG levels: A general scheme .................................... 207
3.11. Distribution of public employees between central government and SNGs ............................. 208
3.12. Comparing the strengths and weaknesses of civil service systems ......................................... 210

Figures

1.1. Urbanisation rate, Kazakhstan and selected countries (1950-2015)............................................ 31
1.2. Average number of municipalities per 100 000 inhabitants (2015-16) ....................................... 37
1.3. Commuting zone settlements of Kazakhstan’s 26 functional urban areas .................................. 39
1.4. Share of overall population living in FUAs ................................................................................ 40
1.5. Share of population by FUA type ................................................................................................ 40
1.6. Share of population living in metropolitan areas (2009) ............................................................. 41
1.7. Official urbanisation rate, 1991-2016 ......................................................................................... 43
1.8. Urban population growth in Kazakhstan ..................................................................................... 45
1.9. Annual average population growth by FUA size (1999-2009) ................................................... 45
1.10. Growth of Kazakhstan’s FUAs (1999-2009) ............................................................................ 46
1.11. Contributions to city population growth (2009-2014) ............................................................... 47
1.12. Zipf’s Law for Kazakhstan’s functional urban areas (2009) ..................................................... 49
1.13. Zipf’s Law for FUAs in 1999 and 2009 (Kazakhstan) .............................................................. 49
1.14. Passenger cars per 1 000 inhabitants ......................................................................................... 50
1.15. Index of passenger-kilometres since 2003 ................................................................................ 51
1.16. Level of satisfaction with housing availability .......................................................................... 53
1.17. Housing stock in Kazakhstan (2001-2015) ............................................................................... 54
1.18. Single-family homes as a share of newly built dwellings (2010-15 average) ........................... 55
1.19. Correlation between population growth and housing stock growth (2011-15) ......................... 56
1.20. Real house prices indices (2001-2015)...................................................................................... 57
1.21. Share of population by tenure structure in Kazakhstan's large cities ........................................ 58
1.22. Heat loss rates in Kazakhstan’s regions .................................................................................... 59
1.23. Real growth of selected municipal utility tariffs (indices) ........................................................ 61
1.24. PM concentration in cities ...................................................................................................... 63
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TABLE OF CONTENTS –

1.25. Municipal solid waste per capita (kg per year) ......................................................................... 65
1.26. Municipal solid waste generated in OECD countries, Astana and Almaty City, 2013 ............. 66
1.27. Economic convergence and urbanisation (1990-2015) ............................................................. 67
1.28. Average wage and real wage growth in monotowns ................................................................. 72
1.29. Share of residents with tertiary education, 2009 ....................................................................... 72
1.30. Self-employment across Kazakhstan’s monotowns in 2015 ..................................................... 73
1.31. Yearly net migration, 2010-15 .................................................................................................. 74
1.32. R&D is highly concentrated in Almaty City ............................................................................. 89
1.33. Kazakhstan’s technoparks ......................................................................................................... 89
1.34. Kazakhstan's internationally ranked universities....................................................................... 90
1.35. Fixed broadband Internet access per 100 inhabitants ................................................................ 91
1.A1.1. Procedure for defining functional urban areas in OECD countries ..................................... 104
1.A2.1. Almaty metropolitan area: City cores and commuting zone settlements (2009) ................. 105
1.A2.2. Astana’s commuting zone settlements in 2009 ................................................................... 106
1.A2.3. The FUAs of Shymkent and Taraz in 2009 ......................................................................... 107
2.1. Urban categorisation according to the Regional Development Plan until 2020 ........................ 112
2.2. Planning framework for urban and economic development in Kazakhstan .............................. 117
2.3. The role of urban institutes in urban management .................................................................... 145
3.1. Subnational government tax revenue as a % of public tax revenue and GDP, 2014 ................ 195
3.2. Share of tax revenues and transfers in local budgets in Kazakhstan ......................................... 197
3.3. Percentages of national and subnational budgets in state budget revenue,
excluding transfers .................................................................................................................... 197
3.4. Distribution of general government employment across levels of government, 2011 .............. 209

OECD URBAN POLICY REVIEWS: KAZAKHSTAN © OECD 2017