A powerful industrial center, the Karaganda region occupies a leading position in Kazakhstan as the country's largest industrial region. The region has a rich mineral resource base of copper and tungsten, as well as coal, lead, zinc, iron, manganese, and rare metals. Metallurgical enterprises in the republic rely on the Karaganda coal basin for coking coal.

Metallurgical plants in the region created machine-building and metal-working enterprises to process the products of mining and ferrous and non-ferrous metallurgy. Aside from the food and light industries, the chemical and pharmaceutical industries, as well as the production of non-metallic building materials, are developing in the region.

As Karaganda lies in the geographical center of the country and actually of the entire Eurasian continent, it has advantages for developing modern economic branches such as logistics and transport (mainly transit). Agricultural development in the Karaganda region is favored by its natural and climatic conditions.

A total of 7.7 trillion dollars was generated by the Karaganda region of Kazakhstan in 2021, or 9.4% of the total gross domestic product. Among the regions of Kazakhstan, it is ranked fourth. The largest share of the GRP of the region is occupied by industry (49.5%), wholesale and retail trade (15%), as well as car and motorcycle repair (15%) and construction (5.2%).

According to the industry structure for the Republic of Kazakhstan at the end of 2021, Karaganda took 2nd place after Atyrau, with a share of 11.6%.

Based on the dynamics of industry development in the Karaganda region during 2017-2021, industrial production increased by 87.8%, reaching 4.4 trillion tenge (from 2.3 trillion tenge in 2017). As a result of the increase in manufacturing products, which made up 79.4% (3.5 trillion tenge) of the industrial structure of the region in 2021 in comparison with 2020, the industrial production index has grown by 100.9%. Metallurgical production (78.8%), mechanical engineering (5.7%), food production (4%) accounted for the majority of manufacturing in 2021.

A total of 809.1 billion tenge was invested in fixed assets in the region in 2021, which accounts for 6.1% of the total country's investments. A majority of manufacturing investments were made in metallurgical production (75.1%), rubber and plastic product production (13.9%), and mechanical engineering (4.6%).

A major obstacle to the development of industries is the 43.1% rate of depreciation of manufacturing assets. Meanwhile, the coefficient of renewal of fixed assets is 8.3%, below the national average; and the liquidation ratio of fixed assets is a mere 2.1%, indicating that modernizing fixed assets, especially equipment for the production process, is crucial to producing competitive products.

In the country, the Karaganda region produces 119 manufacturing products (stranded wires, cables, ropes, and cords woven from ferrous metals), unalloyed steel ingots, semi-finished products made from carbon steel (non-alloyed), pig iron, and flat-rolled products made from cold-rolled unalloyed steel.

As of 2021, the Karaganda region's trade turnover totaled 8.4 billion US dollars (exports accounted for 73.8%, imports for 26.2%).

A net exporter, the Karaganda region ranks second after the Atyrau region in terms of goods exported.

As far as the Karaganda region's external exports are concerned, China accounts for 35.8%, Russia accounts for 29.7%, and the United Arab Emirates accounts for 8.8%. Among these are rolled metal, coal, semi-finished steel (ArcelorMittal Temirtau JSC), noble (precious) metals, ferroalloys, copper, zinc, iron ores, vinyl chloride polymers, carbides, flour, and margarine. The number of commodity items with exports exceeding 100 thousand US dollars has reached 182 units.

The Karaganda region ranks fifth in imports among the regions of Kazakhstan. Machinery and equipment, base metals, chemicals and products, coke and petroleum products, pharmaceutical products, rubber and plastic products are the most commonly imported goods. The region's main trading partners are Russia (61.6%), China (9.9%), Germany (3.6%), and others. In total, 1,133 commodities are imported worth more than 100 thousand dollars.

Karaganda has no common borders with neighboring countries, but cooperates with more than 100 countries worldwide. Globally, in 2021, the Karaganda region supplied its products to 63 countries and imported from 108 others.

The Karaganda region outperformed other regions due to its export of non-ferrous and ferrous metallurgy products (Fig. 1).

Fig. 1. The Karaganda region's exports in 2021, in percent

Source: National Bureau of Statistics ASPR RK

In order to identify potential areas for industrial cooperation, export goods from the Karaganda region are classified as low-tech, medium-tech, and high-tech.

The results of the analysis of the export structure of the Karaganda region showed that the main share of exports (65.7% of total exports) falls on products with a low degree of processing (low level of processing), 33.9% - average level of processing , and a mere 0.4% high level products. A wide range of finished goods requiring deep processing of raw materials, including high-tech ones, should be produced in the region in the automotive and engineering industries. Rubber and plastic products, electrical equipment, chemicals, food, and light industries, and other non-metallic mineral products, as well as finished metal products, excluding machinery and equipment, furniture. In terms of developing industrial cooperation with other countries, Central Asia, the Middle East, and the Middle East are promising regions for Karaganda enterprises.

Based on an analysis of single-industry towns in the Karaganda region, it was found that to some extent, regional policy measures were ineffective because they used a unified approach and did not incorporate the specificities of single cities.

Consequently, single-industry towns have common systemic problems:

- a downward trend in population continues, the labor force is shrinking, and employment is declining.

- mineral-extraction-based activities generate the majority of the economic activity in single-industry towns;

- deterioration of the engineering and transport infrastructure (water supply, heating networks, power lines, sewerage), which affects the quality of life of the population; poor quality of roads;

- deterioration of the environment and the health of residents due to the activities of "dirty industries" in single-industry towns.

From 2012 to 2022, the Karaganda region had the highest urbanization rate (80%). There were 11 cities in the region (Abay, Balkhash, Zhezkazgan, Karaganda, Karazhal, Karkaralinsk, Priozersk, Saran, Satpaev, Temirtau, Shahtinsk), of which 2 were of regional significance (small towns) and 9 of regional significance (8 with the status of "monocity"). They accounted for 41.8% of the population of the region.

As a result of the President's decree establishing the Ulytau region on June 8, 2022, Zhezkazgan, Karazhal, and Satpayev were separated from the Karaganda region.

Between 2017 and 2021, a steady outflow of Kazakhs from the Karaganda region, especially in single-industry towns, was observed in the Karaganda region.

Single-industry towns are classified according to their industrial potential: Temirtau with "high-tech development," Zhezkazgan, Balkhash, Satpaev with "social-economic development," Saran, Shakhtinsk, Abai with "region of stabilization," Karazhal with "stagnation ."

The main city-forming enterprises of single-industry towns: ArcelorMittal Temirtau JSC (steel and coal departments); Kazakhmys Corporation LLP with subdivisions; Zhairem Mining and Processing Plant JSC; Orken LLP; Karazhal Operating LLP; LLP "Kazcentrelectroprovod"; SES SARAN LLP and Kurylysmet LLP.

During the year 2021, the total volume of industrial production in the region's single-industry towns increased by 81.3% to 3,042.1 billion tenge, or 71.3% of the region's total production.

A total of 3,042.1 billion tenge worth of industrial production was recorded in the single-industry towns of the region in 2021, or 71.3% of the total production of the region.

According to the structure of industry, Temirtau (34.1%), Zhezkazgan (16.7%) and Balkhash (13.9%) hold the top positions among single-industry towns in the region.

Also to be noted are monotowns, which produce the smallest amount of industrial output in the region, such as Saran and Shakhtinsk, whose shares in the structure were less than 1%.

A number of indicators show the level of concentration of the Karaganda region: 20.6% of the total cargo transportation in the country is used as a measure of transport volume, and 12.7% of the total number of people working in the country are employed as workers in the industry. In terms of these indicators, the region occupies a leading role in the country. Based on the country's overall structure, the region's fixed asset indicator was 4%, which ranked seventh among regions.

In general, the Karaganda region's economy is characterized by a high level of concentration. Additionally, the Herfindahl-Hirschman concentration index was used to assess the level of concentration of the region's economy, which found a moderate (average) level of concentration in 2017-2021.

As the level of economic concentration increases, the share of mining and manufacturing in the region's economy is likely to increase in 2019-2021 as well.

A Hachman coefficient, which is based on the localization coefficient, was used to compare the region's economy with the national economy. As a result, in the Karaganda region, the Khachman coefficient ranges between 0.68 and 0.71, which indicates the region's structure is different from the country's.

An industry's localization coefficient serves as an indicator of its specialization, if it is higher than 1. Based on the analysis, water supply, waste collection, processing, and disposal, activities for pollution elimination, manufacturing industry, electricity, gas, steam, hot water, and air conditioning are the specializations of the Karaganda region in 2021.

The manufacturing industry of Karaganda has several niches, among which are hand saws and blades for all kinds of saws, rolling mills, and rolls, polyamide and polyester cords for tires, copper fittings for pipes, and auxiliary equipment for steam boilers and central heating systems . In addition, there is potential for mastering the production of ceramic tiles; dishwashers; equipment for washing or drying bottles or other containers; washing machines, electric water heaters, electrical equipment for space heating and ground heating, etc.