Urbanization and Industrialization in Central Asia: Looking for solutions to key development problems Central Asian countries today practice a “concentration model” of urbanization, under which population and economic growth are centered in big cities, as the region becomes increasingly cognizant of the need to shift from an agrarian to an industrial-agrarian type of economy. Cities and their agglomerations under this new economic model must act as drivers of growth, but they are having trouble handling the massive influx of people from underdeveloped areas. This economic transition requires better management of urbanization and industrialization processes. Most of Central Asia’s modern cities developed during the Soviet period and were subordinated to the command economy directed from Moscow. After the collapse of the USSR in 1991, the Central Asian were primarily agro-industrial economies with predominantly rural populations. Long-term development challenges Central Asia is a dynamically growing region, but it faces a host of long-term challenges. 1. Demographic growth. On January 1, 2012, the estimated population of the five Central Asian countries was 64.6 million, 30.7 million of whom (or47.4% ) lived in urban communities. According to UNDESA estimates, the region’s population will reach 71.4 million by 2025 and 82 million people by 2050. The urban population will increase by an average of 1.51% until 2050, outstripping overall population growth, and will amount to 55.2% by 2050.. The rural population growth rate is expected to decline from the current 1.1% to 0.46% in 2025 and to 0.77% in 2050. The most rapid population growth is expected to occur in Uzbekistan, Tajikistan, and southern Kyrgyzstan, while increases in Kazakhstan should be relatively small. The region’s population will remain relatively young – the average age will be about 26, while the able-bodied (15-64 years of age) share of the population will average 65-67%, meaning that the pressures on the labor market will continue for the long term. 2. Natural geographical constraints. The limited supply and uneven distribution of water and land resources make extensive agricultural development impossible. Moreover, intensification of agriculture results in fewer employment opportunities in rural areas. The region’s countries have managed to diversify their economies and solve food-distribution probFig. 1. Urbanization in Central Asia, 1926-2010. 70 000 46% 43% Urban development issues The Soviet period saw significant growth in Central Asia’s urban population,, the creation of new cities, an expansion of the urban infrastructure and growth of extractive industries. The evacuation of industrial enterprises from other Soviet republics to Central Asian states during the Second World War had a major impact on urbanization and industrialization. Between 1940 and 1960 the urban population doubled, and industrial production increased fivefold. The newly created cities, however, were predominantly “monocities,” or single-industry towns, which had narrowly defined objectives that were tied more to cities and industries in other former Soviet republics than to the local economy. This caused major imbalances in the spatial development of Central Asia, thereby limiting the ability of cities to adapt to the new economic environment following the colFig. 2. Population, ages 15-64 in Central Asia in 2025. 50% 80000 45% 42% 60 000 41% 38% 45% 70000 40% 60000 50 000 35% 30% 40 000 24% 30 000 20 000 lems. Most of the economic growth in Central Asia, however, derives from raw materials. Central Asia’s countries are now facing the challenge of transitioning from an agro-industrial to an industrial-agrarian development model, which requires cities to play a bigger role as economic and industrial drivers. 3. Rising migration to the cities. Excess manpower is flowing from the countryside to the cities in every country of the region, a process that has already increased pressure on the labor markets and infrastructure in the cities. Until now, the lack of employment opportunities in rural areas was offset by external labor migration. In the long run, internal migration will grow and, consequently, there will be growing pressure on cities to absorb the surplus manpower. But their current capacity to drive urbanization is limited. 13% 50000 25% 40000 20% 30000 15% 20000 10% Городское население, тыс. чел. Казахстан Кыргызстан Таджикистан Доля городского населения, % (правая шкала) Туркменистан Узбекистан Все население Source: For 1926-1989, various sources; for 1990-2010 - World Urbanization Prospects-2011, UNDESA Source: World Urbanization Prospects-2011, UNDESA 2030 2025 2020 2015 2010 2005 Сельское население, тыс. чел. 0 2000 2010 1995 2000 1990 1990 1985 1989 1980 1979 1975 1959 1970 1939 1965 0% 1926 1960 0 10000 1955 5% 1950 10 000 Fig. 3. Arable land per person in Central Asian countries, km2 14,00 Fig. 4. Urban population distribution in Central Asian countries in 2025. * 25 000 70% 63% 12,35 12,00 60% 11,37 20 000 2010 2025 50% 10,00 15 000 40% 8,00 6,47 6,00 10 000 5,48 30% 22% 20% 15% 5 000 4,00 10% 1,99 1,67 2,00 0,690,56 0,970,83 0,00 Казахстан Кыргызстан Таджикистан Туркменистан Узбекистан Source: World Development Indicators, World Bank; World Urbanization Prospects-2011, UNDESA lapse of the Soviet command economy. Central Asia has 273 cities, which have a total population of about 24 million. The largest urban population is in Uzbekistan (8.95 million. or 37.6% of the total population), followed by Kazakhstan (8.89 million, or 37.4%); Turkmenistan (2.5 million, or 10.7%); Kyrgyzstan (1.88 million, or 7.9%) and Tajikistan (1.50 million, or 6.3%). The majority of urban communities however, are small and medium towns with populations of not more than 100,000, mostly between 10,000 and 50,000. Such towns account for about 16% of the urban population in Kazakhstan; 25.4% in Kyrgyzstan; 35% in Tajikistan; and about 35% in Uzbekistan. Central Asian countries practice a “concentration model” of urbanization, under which population and the economy are centered in big cities. Meanwhile, small and medium towns, despite their numbers and social importance, make only a meager contribution to economic development.. Between 2000 to 2010 alone the population of the capitals and big cities of Central Asian countries increased by an average of 19.4%. Dushanbe is a striking example – about 48% of Tajikistan’s urban population lives there. At the beginning of the 1990s the Central Asian countries had a relatively developed urban infrastructure, particularly in big cities. There were, however, a number of weaknesses: from the 1970s on, the growth rate of the capacities of infrastructure facilities lagged far behind growth rates of urban population and economic growth; the infrastructure maintenance system was centrally funded and subsidized; the infrastructure was antiquated, and infrastructure organizations had no incentive to economize and introduce new technologies; in most single-industry cities, infrastructure support was dependent on one or two dominant enterprises that funded it. This system could not be sustained, especially in a market economy. Today the infrastructure in every Central Asian country (gas, water and electrical supply and sewage systems) is badly worn out, and investment in its overhaul is inadequate. Despite the efforts to implement administrative reforms, the region’s countries have failed so far to develop efficient urban governance systems. As a result, the ability to 6 813 4 507 19 319 1-5 млн. чел. 0,5-1 млн. чел. менее 0,5 млн. чел. - 0% Население, тыс. чел. Доля городского населения, % (правая шкала) * - assuming the current structure of resettlement Source: World UrbanizationProspects-2011, UNDESA modernize the urban infrastructure is limited, and, more broadly, so is the capacity of cities to drive spatial development. Prospects of spatial development Every country in the region, with certain variations, is undergoing profound economic, political and social transformations. In the medium and long term the success of these processes will depend on industrialization and urbanization which can be effectively managed. The region’s governments are implementing comprehensive programs aimed at stimulating the processing industries and developing cities. However, these policies seldom factor into the regional dimension; they are oriented more toward the country’s internal situation than toward constructing region-wide structures that could integrate specific sectors of national economies with each other. As a result, industrial development programs and projects that are localized within national borders will only have a limited effect. The socio-economic and political-administrative reforms that took place in Central Asia during the transition period were based on different models. As consequence, different political, economic and institutional systems took shape. Implementing common regional policies on spatial development that focus on cities will require that these disintegrative factors be resolved. New, integrative approaches must be sought to carry out industrial and transportation-logistical projects, establish cross border cooperation zones, etc. In this context the Central Asian states face a formidable task – to find sectors, initiatives and concrete projects that will enable national development strategies to gradually become interconnected. These strategies must include a major role for cities and agglomerations as centers of development as well as of the creation of political, economic, infrastructural and other conditions for expanding cooperation among urban areas of Central Asian states. * This is an executive summary of a 19 000 words paper that provides detailed overview and analysis of urbanization, industrialization and related integration issues in Central Asia that could serve as a good example for many landlocked African countries.