УДК 33 Tovma N.A., Golibtsov D., Akimbaeva K. T.
Tovma N.A.
Al-Farabi Kazakh National University (Almaty, Kazakhstan)
Golibtsov D.
Al-Farabi Kazakh National University (Almaty, Kazakhstan)
Akimbaeva K.T.
Al-Farabi Kazakh National University (Almaty, Kazakhstan)
STRATEGY FOR THE DEVELOPMENT OF THE MONOTOWN OF EKIBASTUZ
Аннотация: the purpose of the study is to develop a development strategy for the single-industry town of Ekibastuz based on territorial marketing tools to improve the quality of life of people, attractiveness and improve the comfortable conditions of residents. Research methodology.
The study is based on statistical data, the comparison method was used to identify the reasons for the revival and successful development of single-industry towns in Kazakhstan. The benchmarking method was used to study the experience of competitors and implement best practices. When analyzing the current state of development of single-industry towns, content analysis was used. SWOT analysis was used to identify strengths and weaknesses, opportunities and threats. The observation and data collection method was used to develop a development strategy for Ekibastuz.
Originality of the study. The proposed recommendations will allow you to make the right management decisions regarding the revival and development of single-industry towns in the Republic of Kazakhstan. It is noted that the engine of economic development of single-industry towns should be the use of territorial marketing tools. Competent marketing and branding of the city can significantly improve the image of the territory and contribute to economic growth.
Research results. The article presents the experience of foreign countries in the framework of the strategy for the revival and development of single-industry towns. The solution to the problems of single-industry towns in different countries is given with the help of the developed strategies. The current state of the single-industry town Ekibastuz is analyzed. The main problems of the development of the single-industry town Ekibastuz are identified. The analysis of the strengths and weaknesses, opportunities and threats of the development of the single-industry town Ekibastuz is presented. The strategy for the development of the single-industry town Ekibastuz is developed using territorial marketing tools.
Ключевые слова: strategies, revival, single-industry towns, foreign experience.
INTRODUCTION.
However, despite the measures taken, many unresolved issues remain in the monotowns, particularly:
1. Economic problems: the shutdown of city-forming enterprises, a low degrof economic diversification, high dependency of employment on the city-forming enterprise, heavy reliance of the city budget on tax revenues from the enterprise, shrinking tax base, incomplete production capacity, and insufficient investment attraction,
2. Social problems: rising unemployment, low population income, poor quality of life, negative migration balance, increasing social tension,
3. Infrastructure problems: high wear and tear, the need for repairs and improvement of educational facilities, high deterioration of the central city hospital, lack of sports infrastructure, heavy wear of engineering networks, and road reconstruction,
4. Environmental problems: environmental pollution and ecological issues related to the region's industries,
5. Construction issues: lack of development and construction plans for the further growth of settlements,
6. Personnel problems: shortage of qualified personnel,
7. An acute issue is water supply, with 40% of the settlement area being flooded, particularly in Ekibastuz.
These problems can be addressed through a well-thought-out development strategy based on territorial marketing tools.
LITERATURE REVIEW. Many scientists have dealt with the strategy of monotowns development.The researchers came to the following conclusions that residents of single-industry towns largely depend on the stability of the pace of industrial development of their enterprises and identify two main areas of modernization of the economy of single-industry towns: sharing responsibility for the social sphere between business and the state and diversification of the economy (Glebova, 2022).
Scientists Bobkov V.N., Odegov Yu.G., Garnov A. developed a strategy for regulating employment in the manufacturing industry in single-industry towns. Based on employment models, scientists came to the conclusion about the need to develop an employment management policy in single-industry towns using a system of measures aimed at forming a balanced standard and non-standard employment (Bobkov V.N., 2020).
Rubtsov G., Litvienko A. studied how strategic directions influence the economic development of single-industry towns. The authors developed a model for managing single-industry towns, including an individual set of tools for socioeconomic impact (Rubtsov, 2020).
Fomicheva, L.M., Pronskaya, O.N., Arzamasova, E.L., Fomin, O.S., Kurennaya, V.V. take into account trends and factors changing in the labour market when developing the strategy of single-industry towns (Fomicheva, 2024).
Volkov, A.D., Simakova, A.V., Tishkov, S.V., Pitukhina, M.A. identified models which include: environmental, economic, scientific and climatic conditions (Volkov, 2023).
Fomin, M.V., Smirnov, O.O., Miriazov, T.R. argue that for systematic improvement of the situation and prevention of crisis phenomena measures aimed at
improving the competitiveness of town-forming enterprises, as well as increasing the social burden on big business (Fomin, 2022).
According to V. P. Pulyaevskaya and A. A. Khristoforova, the strategic vision based on the consideration of the current level of socio-economic situation of the settlement and potential-possible funds that in the future will be directed to its development (Pulyaevskaya, 2022).
I. N. Ilyina has developed a programme of key measures to implement the strategy attracting investment, development of state and public institutions, technological innovation, information stimulation, training qualified personnel, improving the quality of public services (Ilyina, 2022).
Piyankova, S. G. created which focuses on a balanced approach. (Piyankova,
2017).
E.G. Ivashkin developed a strategy for industrial single-industry towns (Ivashkin, 2020). Torlone Joe G. developed a strategy for single-industry towns (Torlone, 1979). Tigges, L. A. developed a strategy for monotowns (Tigges, 1990).
To enhance the attractiveness of monotowns, it is essential to utilize territorial marketing, which includes city marketing, regional marketing, and country marketing. The development of city marketing strategies has been studied by prominent scholar D.V. Vizgalov, who argued that the formulation of a city development strategy is necessary for several reasons. First, cities must compete with each other to preserve and increase their resources. Competitiveness can only be ensured through a strategic approach to city development. Second, a strategic approach is vital for the proper presentation of urban products. Third, skillful city development is inconceivable without a strategic approach (Vizgalov, 2008).
Territorial marketing as a method of creating value for a territorial unit is explored in the works of Kondratowicz-Pozorska, J. (Kondratowicz-Pozorska, 2022).
The necessity of using territorial marketing tools for developing monotown strategies is discussed in the research of Knapik, A. (Knapik, 2021).
Cities as territorial brands are examined in the works of Giovana Goretti Feijó de Almeida (Almeida, 2023).
The creation of territorial brands is addressed by Anna Adamus-Mutuszynska and Piotr Dzik (Dzik, 2023).
However, despite extensive research on this issue, some questions remain unresolved, particularly the absence of a well-thought-out development strategy for monotowns in Kazakhstan based on territorial marketing, which could significantly increase their attractiveness. Therefore, we have made an attempt to develop a development strategy for the specific monotown of Ekibastuz, the directions of which can also be applied to other monotowns.
The goal is to develop a strategy for the development of Ekibastuz using territorial marketing tools to improve the quality of life, attractiveness, and comfort for its residents. The research objectives are:
- to study international experience in building monotown development strategies for potential application in the monotowns of Kazakhstan,
- to analyze the current state of Ekibastuz in order to identify the main development challenges,
- to develop a development strategy for Ekibastuz using territorial marketing tools to enhance its attractiveness and create a new image.
The object of the research is the socio-economic indicators of Kazakhstan's monotowns.
The subject of the research is the monotowns of Kazakhstan and other countries.
The research hypothesis is that a well-constructed marketing strategy will contribute to the development of Kazakhstan's monotowns.
MAIN PART.
RESEARCH METHODS. The research is based on statistical data. To study the international experience of building monotown development strategies, the comparison method was used, allowing for the identification of the causes behind the revitalization and successful development of monotowns in Kazakhstan. Additionally, the benchmarking method was applied to study competitors' experiences and implement best practices.
To solve the second objective, regarding the analysis of the current development state of monotowns, content analysis was used to numerically record indicators. SWOT analysis was also applied to identify strengths, weaknesses, opportunities, and threats.
For the third objective, the method of observation and data collection will be employed to develop a strategy for the development of Ekibastuz.
RESEARCH RESULTS.
International experience in developing strategies for monotown development has been studied to assess its applicability to the monotowns of Kazakhstan.
As shown by foreign experience, there are two types of problematic monotowns. The first type includes old industrial cities that emerged during the Industrial Revolution and through the construction of new industries. The second type consists of single-industry towns that rely on one enterprise. Monotowns of both types are found worldwide.
For example, in China, the strategy for the revitalization and modernization of monotowns is based on government financial injections and support.
The experience of the U.S. in monotown development strategies is also noteworthy. In Pittsburgh, steel production began in 1875, and by 1901, the city was producing half of the U.S. steel (Belokurova, 2010). However, during the 1970s and 1980s, many steel plants were shut down, and the population shrank to 330,000. In the second half of the 20th century, the "Renaissance" project was launched, with the primary goal of improving the quality of life and protecting the environment. The key directions were education, tourism, healthcare, and high technologies. Long-term public investment in education, a key element of the U.S. modernization strategy, such as in Pittsburgh's "Renaissance" project, is virtually absent in Kazakhstan. Kazakhstan's conditions particularly require retraining programs for specialists, which are currently lacking in support for monotowns. Pittsburgh transformed from an industrial center into a service-based economy, thanks to public-private partnerships with businesses in innovation and infrastructure, and local universities in
R&D. Pittsburgh serves as a successful example of structural transformation in a declining region of the Pennsylvania coal basin.
Flint, a city once prosperous thanks to General Motors until the 1960s, began to decline after the oil crisis of 1973. To diversify the city's economy, local authorities attracted small manufacturers to vacant industrial spaces and offered tax incentives. Logistics companies and modern student campuses from major universities were established in the city. To revitalize areas that once served industry, Flint adopted a "green infrastructure" strategy.
Birmingham, Alabama, originally known for its steel industry, has diversified its economy with automotive manufacturing (Mercedes-Benz), machinery production, metalworking, and a strong services sector, including healthcare, retail, finance, logistics, and telecommunications (Mitroshena, 2022).
In Saginaw, Michigan, a city known for manufacturing auto parts for General Motors, local authorities began developing medical and biological technologies and reclaiming land to stop mass population outflows caused by the crisis.
After the closure of nearly all steel mills in the 1970s, Youngstown, Ohio, had to shift from being a major steel center to focusing on education. A business incubator was also established to support the development of new technology companies. Despite these efforts, Youngstown remains economically depressed, evidenced by high unemployment and low local incomes (Mitroshena, 2022).
Birmingham also faced severe environmental challenges as a "steel town," but thanks to the active role of local government, residents, and businesses, the city revitalized. In 1989, Birmingham was recognized as the "most livable city in the U.S." Soon after, the international "Birmingham Torch" prize was established, awarded to businesses, organizations, and individuals for "successfully surviving social and economic crises".
Birmingham's support for the transport sector focused on creating clusters of independent companies grouped in specific locations to maximize efficiency.
Another example of monotown revitalization and modernization based on territorial marketing is Glasgow, UK. The country is rich in examples of monotowns
and strategies for solving their problems. In Castleford, located in West and South Yorkshire, all thrcoal mines closed in the 1980s and 1990s, leaving the town in a difficult situation with an official unemployment rate of over 20%. A clothing factory, Burberry, somewhat mitigated the impact of the mine closures despite significant challenges in the textile industry. Government efforts also played a major role in reviving the struggling town. A large indoor snow track, the biggest in Europe, was built near Castleford, providing jobs for hundreds of locals and promoting eco-tourism and sports tourism. Snowboarders from across the country and abroad come to train on the track (Drozdetskaya, 2013).
One of the most successful examples of modernization is the Ruhr region's transformation from a depressed coal mining town to a diversified, post-industrial city. New mobile and competitive industries were simultaneously created in the automotive, precision mechanics, and electrical engineering sectors. Telecommunications and IT industries also developed rapidly, and education programs in the Ruhr area were reoriented toward these sectors.
During the restructuring, all coal mining companies were merged into a single conglomerate, Ruhrkohle. The introduction of a special tax—the coal pfennig— ensured that revenues were used to buy German coal instead of cheaper foreign alternatives, and the government established the necessary level of coal production. This guaranteed stable demand from steel mills and power plants. By focusing on human potential through the development of higher education systems, including increasing the number of students and educational programs, Germany managed to prevent a worsening of the already serious problems in the coal industry and gradually restructured the Ruhr region's economy (Mitroshena, 2022).
In Canada, the monotown Tumbler Ridge, founded in the 1980s for coking coal mining, began to decline after a mine closed. A national program was launched that focused on affordable housing. Tumbler Ridge rebranded itself as a retirement destination with all the necessary infrastructure for a peaceful life, and the population began to grow again.
In Mount Isa, Australia, founded in 1923, the population dropped to 21,800 by 1980 due to falling raw material prices and reduced mining. In 2003, the global company Xstrata acquired Mount Isa Mines and decided to place an R&D, marketing, and tech promotion division in the town. Mount Isa transformed from a typical mining settlement into a center for research and technological development. The French city of Lille thrived on the textile industry, serving as another international example of successful monotown transformation.
Thus, different countries face the following challenges in addressing monotown issues (Table 1).
Table 1. Results of addressing monotown issues in various countries through developed strategies.
Country City Problem-solving through well-designed strategies
USA Pittsburgh, Flint Implemented a "green infrastructure" strategy to restore certain city areas previously used for industrial purposes. Repurposing of abandoned spaces.
UK Manchester, Liverpool, Glasgow "Physical regeneration" (construction of new homes and apartments).
Germany Ruhr Region Reindustrialization, neo-industrialization.
Australia Tennant Creek, Woodcartes, Mount Isa Transformation into a logistics hub through the construction of new railways, converting the city into a tourist center.
Canada Tumbler Ridge Stabilization of socially significant services.
Sweden Kiruna Increasing the share of services, transportation, and logistics.
France Lille Development of the textile industry. Advancement of innovative industrial production within inherited specializations. Ensuring 1.5-hour transport connectivity with Paris, London, and Brussels.
Note - Based on literature data (Larchenko O.V., 2019).
Thus, when developing strategies and addressing the challenges of single-industry towns, two distinct approaches are identified: the American and European styles. The American model employs a method of "managed shrinkage," where the city's territory is reduced in line with population decline. The European model, on the other hand, emphasizes investment in creating highly developed infrastructure and training a highly skilled workforce. The U.S. experience in reviving and developing single-industry towns is particularly relevant for Kazakhstan, as these towns are already well-established areas. In Kazakhstan, there is a strong regional differentiation where single-industry towns are located. Therefore, it is proposed that Kazakhstan adopts elements of the "green infrastructure" strategy to restore single-industry town areas.
The current state of the development of the town of Ekibastuz has been reviewed to identify its main development challenges.
Let's examine the key socio-economic indicators of Ekibastuz, including population size, natural growth rate, migration balance, employed population, unemployment rate, youth unemployment rate, industrial production output, the number of registered small and medium-sized enterprises (SMEs), the number of people employed in SMEs, average monthly nominal wages, workforce size, manufacturing industry, light industry, the number of hospitals, the dynamics of preschool institutions, housing construction, key school development indicators, the number of students, the number of schools, university dynamics, and R&D spending (Table 2).
Table 2. Socio-Economic Development Indicators of the Single-Industry Town of
Ekibastuz for 2018-2022.
Indicators 2018 2019 2020 2021 2022
Population of single-industry towns 133.9 133.7 132.8 131.9 129
Natural increase 846 831 791 454 816
Migration balance -1,093 -1,044 -1,705 -1,352 -1,326
Employed population 73.4 74.5 73.3 72.8 68.6
Unemployed population 3.8 3.8 3.8 3.8 3.5
Unemployment rate 4.9 4.8 4.9 4.9 4.8
Youth unemployment rate 3.3 2.4 2.4 2.9 2.7
Industrial production output 329,983 312,616 366,141 447,999 570,451
Number of registered small and medium enterprises 9,296 9,053 8,824 8,656 9,549
Number employed in small and medium enterprises 24,560 24,742 22,863 23,536 23,536
Average monthly nominal wage 169,564 185,157 223,797 259,000 312,322
Workforce (economically active population) 82.5 83.3 81.8 81.5 81.5
Manufacturing industry output 55,422 59,633 91,630 137,469 143,611
Food production output 3,422 3,287 3,345 4,533 4,932
Light industry output 407 327 426 551 639
Number of hospitals 6 5 5 5 5
Dynamics of preschool institutions 45 45 45 45 45
Housing construction 57.5 54.4 68.7 69.3 72.6
Key school development indicators 44 44 44 45 45
Number of students in schools 20,869 22,578 23,127 23,373 23,477
Number of colleges in single-industry towns 7 6 6 6 6
Number of students in colleges 3,640 3,328 3,380 3,326 3,456
Dynamics of universities 1 1 1 1 1
Number of students in universities 1,400 1,582 1,464 1,429 1,442
Internal R&D expenditures 3.5 3.5
Number of R&D projects 1 1 0 0 0
Number of employees conducting R&D 91 112 0 0 0
Note - Compiled based on statistical data.
Based on the data from Table 1, the following conclusions can be drawn:
- There is a population decline in the single-industry town, as indicated by the decreasing population, natural increase, and negative migration balance.
- There is a reduction in the employed population, including those in small and medium enterprises.
- There is a lack of hospitals.
- There is virtually no scientific potential.
Based on the practical study of the city of Ekibastuz and the data from Table 2, we will conduct a SWOT analysis of its strengths, weaknesses, opportunities, and threats (Table 3).
Table 3. SWOT Analysis of Ekibastuz monotown.
Strengths Weaknesses
Increase in the number of small and medium enterprises Increase in industrial production volume Growth of the manufacturing sector Growth in food production Increase in light industry metrics Increase in new housing construction Decrease in population Decrease in natural population growth Increase in negative migration balance Decrease in the employed population Decline in employment in small and medium enterprises Reduction in the working population Decrease in the number of hospitals Reduction in internal R&D expenditures
Opportunities Threats
Annual increase in funding from the national budget within industry programs Funding for business development from regional authorities Dependence of small and medium enterprises on the stability and volume of funding from budget and industry programs. Rising level of moral depreciation of material and technical resources.
Note: Compiled by the authors based on t ie statistical data in Table 2.
Thus, it can be concluded that the mono-city of Ekibastuz has significant development prospects, including an increase in the number of small and medium enterprises, industrial production volume, growth in the manufacturing sector, expansion of light industry, and an increase in new housing construction.
A development strategy for the single-industry town of Ekibastuz has been developed using territorial marketing tools to improve the quality of life for its residents.
The success of the town's development largely depends on the ability to coordinate the city's strategy with that of the town-forming enterprise. The stages of developing the single-industry town's strategy include goal formulation, task setting, and the development of program measures with specified timelines and resources. For the development of such towns, it is essential to create a strategy based on economic diversification, localization of small and medium-sized businesses, creation of small industrial zones, attracting investors, supporting import substitution industries, and establishing new production facilities. We have developed proposals for the government that can be included in Kazakhstan's single-industry towns' development strategy. The main goal of the strategy is sustainable economic growth and the welfare of single-industry town residents.
External factors also influence the town's development strategy. Key factors include civilizational challenges, climate change, political stability, the economic cycle phase, and prevailing trends in the global economy. Macroeconomic factors involve a combination of legal, political, social, economic, cultural, scientific, and technical conditions and resources in the country. Meso-level factors include the immediate environment of the single-industry town, shaping interterritorial socioeconomic relations. These may include interregional trade, migration flows, and budgetary and financial links (Zinchuk, 2012).
The driving force behind the economic development of single-industry towns should be the use of territorial marketing tools. Effective marketing and city branding can significantly enhance the image of the area and foster economic growth. Many issues related to the maintenance and development of single-industry towns can be
solved through territorial marketing, conducted both within and outside the area. Key stakeholders include residents, investors, and other parties interested in the town's development. For successful functioning, a marketing strategy for the territory is essential.
For Ekibastuz, a well-thought-out development strategy is required, so we propose a city development strategy based on territorial marketing tools, which includes national and regional urban marketing. To improve the city's competitiveness, attractiveness, and living conditions, it is necessary to develop a city marketing strategy. This strategy should aim to create a climate that enhances the town's appeal for investment and quality of life. City marketing strategies are unique products. There are generally four key target groups for cities: 1) visitors, 2) residents, 3) economic sectors and investors, 4) external markets. Based on this, the city's marketing strategy is divided into four directions: 1) image marketing, 2) attractiveness marketing (entertainment and attractions), 3) infrastructure and population marketing, 4) external market promotion. Let's examine the city marketing strategy for the monotown of Ekibastuz (Table 4).
Table 4. Dev. strategy for the city of Ekibastuz using territorial marketing tools.
№ Directions Proposals for development Completion period
1 Mission - creating a sustainable and attractive single-industry town Develop an additional plan until 2027, including image marketing, attractiveness marketing, infrastructure marketing, and external markets. Within a year
2 Alignment with UN Goals Increase the efficiency of urban planning and city management as a whole. Within a year
3 City's future vision A city for comfortable living. Within a year
4 Infrastructure development Develop "green infrastructure" to restore areas of the single-industry town. Improve city infrastructure and enhance living quality and housing availability. Within a year
5 Social sphere development Improve the quality and accessibility of social services, trade, and household services. Within a year
6 Solving environmental problems Enhance environmental sustainability of utilities and address water issues. Within a year
7 Strengthening the role of government Increase the role of local self-government and public organizations in the city's development. Within a year
8 Image marketing Erect a statue in the city, similar to the "Statue of Liberty," to boost the city's image. Within a year
9 Attractiveness marketing (entertainment and attractions) Open a Disneyland for children. Within a year
10 Infrastructure marketing and population marketing Develop the industrial zone, small and medium-sized businesses. Within a year
11 External markets Develop the coal chemistry and coal industry research center in Ekibastuz by participating in commercialization contests. Within a year
Thus, the number of challenges faced by monotowns is increasing, and to address them, tools from a new area in marketing—territorial marketing can be used. To enhance the attractiveness of the monotown of Ekibastuz, we propose the following: in terms of image creation, install an art object, such as a statue of a woman with coal, which will attract tourists' attention, for attractiveness marketing, build a Disneyland for children. To develop infrastructure, expand the industrial zone and foster small and medium-sized businesses. For external market development, establish research centers in coal chemistry and the coal industry in Ekibastuz by participating in technology commercialization competitions.
CONCLUSION.
Based on the research conducted, we draw the following conclusions:
1. International experience in revitalizing monotowns was studied to develop recommendations for government regulation of monotowns in the Republic of Kazakhstan. By analyzing global practices in developing such towns, and considering Kazakhstan's economic and spatial specifics, it can be proposed that one of the main directions for the development of these territories may include the following aspects: modernization of existing industries with competitive potential, especially focusing on products with high added value, diversification of the urban economy, primarily through the development of small and medium-sized businesses, the creation of infrastructure to support entrepreneurship (e.g., business incubators, technoparks), and providing infrastructural, transportation, logistical, tourism, and recreational services for nearby agglomerations and large cities.
2. The socio-economic indicators of the monotown of Ekibastuz were studied, and the main development issues were identified: social, economic, environmental, and infrastructural. A SWOT analysis of Ekibastuz was conducted, identifying strengths, weaknesses, opportunities, and threats.
3. A development strategy for the monotown of Ekibastuz was created based on territorial marketing, aimed at improving the quality of life for its residents. For the town's development, actions are required that focus on economic diversification,
localization of small and medium-sized businesses, the creation of small industrial zones, attracting investors, and establishing new production facilities.
Финансирование: The article was prepared under the program BR18574200 "Revival of single-industry towns in the conditions of creation of New Kazakhstan on the basis of territorial marketing" within the framework of program-targeted financing of the Committof Science of the Ministry of Science and Higher Education of the Republic of Kazakhstan.
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