Introduction

The region has considerable productive and economic potential. The region is rich with mineral deposits, such as barite, coal, iron and poly metallic ores, betonies clays, vermiculite, talc, limestone, granite, marble, plaster, quartz sands. On uranium reserves the area wins first place, phosphoresces and iron ores — the third place in Kazakhstan [1].

The largest output of industrial output is necessary on processing – 294178,3 million tenges, the mining industry — 107505,1 million tenges and production of food — 107 771,0 million tenges.

Share of production of the industry of area in all-republican industrial output has made 4,4% in 2017. The number of the industrial enterprises and productions makes 882 units. At these enterprises the number of staff of primary activity has averaged 42,4 thousand people. Annual increase in production of industrial output is observed. Since 2014 production of industrial output has increased by 60,9% and has made 44480 million tenges in 2017.

The leading positions on the output of industrial output are taken by Shymkent – 175699,9 million tenges, then there is Suzak district – 110876,1 million tenges, Otrar – 36987,4 million tenges and Sayramsky – 33068,0 million tenges. The smallest volumes in Baydibek district — 1950,6 million tenges.

The former of regional market of industrial goods through the demand defines commodity policy of the enterprises, change of their product range (The strategy of industrial innovative development of the Republic of Kazakhstan till 2015. It is approved by the Decree of the President of the Republic of Kazakhstan, No. 1096 from 5/17/2009)

Methods

 The reorganization of production caused by these processes has involved considerable material and financial inputs, reduction of jobs, increase in number of the unprofitable enterprises. The defining influence has rendered increase in a share of an absolute value of the investments directed to production objects of the industry on increase in indicators of development of the industry.

The total amount of investments into fixed capital in 2017 98,5billion tenges or 106,7% by 2014. The main investments carry out the large enterprises which volume was 43075 million tenges or for 63,2% in 2017 more in comparison with the same period of 2014. Means of the republican budget have made 18336,7 million tenges, a share – 18,6%, the local budget – 13555,3 million tenges, a share – 13,8%, own means – 51495,8 million tenges, a share – 52,2%, foreign investments – 7169,6 million tenges, a share – 7,3%. The share of borrowed funds has made 8,1%, or 7941,9 million tenges. Priority branches of investments are the industry, transport and warehousing which share in the total amount of investments has made 42,6% and 24,5% respectively. There is development of housing construction. In January-June, 201 5779,1 million tenges of investments are directed to construction of housing, or is 2,6 times more by the corresponding period of last year. The total area of the entered housing was 169,9 thousand sq.m, the index of physical volume of the entered housing in comparison with the corresponding period of 2014 has made [2].

Within the State Program of the forced industrial innovative development in the Southern Kazakhstan area according to the Card of industrialization 79 projects for the total amount of 349,3 billion tenges are implemented.

Within the state program of «The forced industrial innovative development of RK for 2010-2014» for inclusion in the republican card of industrialization of Kazakhstan in the ministry of the industry and trade from the region —  13 large investment projects have been sent for total amount of 409,6 billion tenges. From them are included in structure of the card of 6 investment projects for the total amount of 83,4 billion tenges. Among them innovative projects of the industrial enterprises of chemical, textile and construction branches. In 2014 year — 29 investment projects for the total amount of 13,9 billion tenges, with creation more than 2 thousand new jobs, from them in the first half of the year — 7, in the second – 22 investment projects are realized.

In Sayram District construction of the plant on release of the medical equipment of Ecofarm International LLP is finished, the enterprise is put in operation. Project cost is 1130 million tenges [3].

Rauan LLP has realized the project on production of soft drinks, juice and milkshakes. In the territory of the special economic zone «Ontustik» within the Card of industrialization projects of Hlopkoprom Cellulose LLP, OxyTextile LLP and Shymkent-Kashemir LLP for the total amount of 9,9 billion tenges are realized, more than 400 jobs are created.

In 2017 year — AGF group Production Company LLP was put into operation garment factory with a pipeline flow on production of application-oriented materials, worth 251,0 million tenges, creation of 300 constant jobs.

Today within the Road Map of Business of 2020 Program in the Southern Kazakhstan area got approval of Regional coordination council of 80 projects worth 30 billion tenges [4]. JSC Kentau Transformer Plant also passes expert assessment for switching on in the Program for the «Construction of the Upgraded Mechanical Shop and Construction of the Insulant Shop» project.

Besides, 11 more large and medium scale enterprises together with the regional operator of the program of APO Shymkent carry out operation on switching on to the program: JSC Khimfarm, JSC Shymkentcement, JSC Asbotsem construction, Iassa’s Consortium LLP, A-Mai LLP, JSC SRKMZ, LMP LLP, OrdabasyLLP, Ekofarm International LLP, MaraiGroup LLP and Nimex-Construction LLP.

The production and territorial structure of industrial production, is created on the principles of rational placement of the enterprises providing:

— rather uniform placement of the industry about the country for ensuring development of economy of the large economic region;

— increase in efficiency of social production by approach of the industry to sources of raw materials and areas of consumption taking into account the fullest and complex use of natural wealth;

— the fullest and rational use of a manpower;

— use of the conditions created by scientific and technical progress[5]

Forms modern territorial structure of industrial production located in Shymkent, Kentau, Maktaral, Suzak, Saryagash, Sayram, Otyrar and Tulkubas districts of SKR. The greatest share of industrial output of area is occupied by Shymkent (42,3%) and Suzak district (25,5%). In total, the share of industrial output in the listed territories has made 84,3% of total production.

The purpose of the Program is ensuring steady and balanced growth of regional business in non-oil sectors of economy and also preservation acting and creation of new constant jobs [6].

During implementation of the Program in the Southern Kazakhstan area since 2016 in two directions to subsidizing 168 projects for the total amount of 43,28 billion tenges have been approved:

— in the first direction (new projects) of 131 projects for the total amount of 23,76 billion tenges.

— in the third direction (export) – 37 projects for the total amount of 19,52 billion tenges.

In total on the republic RKS of 2510 projects is approved, the volume of the loan portfolio is 508,976 billion tenges, including in the 1st direction — 2318 projects (TR – 131 projects of 5,7%), in the 3rd direction — 192 projects (TR – 37 projects of 19,3%).

For the purpose of support of development of business by the state programs are developed and implemented, on the basis of these programs in regions of RK regional programs are developed. Business is a cornerstone of state policy. It is enshrined in such fundamental documents as the Program of Industrial development of Kazakhstan till 2020, the Strategy of industrial innovative development of Kazakhstan till 2019. To questions of further strengthening of the enterprise environment exclusive attention in the Message of the President is paid to the people of Kazakhstan «Nurlizhol — the Way to the future» sounded in November, 2017 [7].

Results and discussion

In 2016 the pilot project on granting grants to the beginning businessmen has begun to function. The priority at allocation of budgetary funds is given to innovative projects which have no analogs in the region. The grant sum not due to exceed 3,0mln. tenge. In 2016 30,0 million tenges for implementation of projects have been allocated. Today, the first competition on granting the state grants within the Program is held. Part was taken 21 participants from whom are approved 9 for the sum of grants of 27 000,0 thousand tenges. Within the first direction of the «Support New Business of Initiatives» program 3 types of support are provided: By this type of support subsidizing on 92 credits / to leasing transactions for the sum of credits of 15,7 billion tenges is conducted. In the second direction of the program under the name «Improvement of a Business Sector» get support of 13 projects for 13,91 billion tenges. Within the third direction under the name «Decrease in Currency Risks of Businessmen» directed to support of exporters it is approved and subsidizing on 15 projects for the sum of credits of 6,8 billion tenges is conducted [8]. Since 2016 realization of the fourth direction «Strengthening of Enterprise Potential» of the Road Map of Business-2020 Program has been begun.            The state support of small and medium business within the Program consists in support of the beginning businessmen (a startup projects) the Business Adviser project; to service support of guiding of operating business; training of top management of small and medium business; project implementation «Business contacts» [9].

Table 1

The investment projects realized in region for 2014-2017 years.

By quantity trained on the Business Adviser project the Turkestan area is in the first place – 2514 trained. (The Almaty Region — 1424 persons, WKR – 1044 people). On branches. In a branch section the greatest number of projects is implemented in manufacturing industry – 61%, transport and stacking – 15%, rural, forest and fishery – 8%, services in living and a supply – 5%, production of construction materials – 8%, the health care and social services are necessary – 4%, education – 2%, the mining industry – 1%, art entertainment and rest – 1%, operations with real estate – 1%, Activities in the field of administration and support service – 1%, Professional, scientific and technical activity – 1% (fig. 1).

Figure 1. Structure of projects of the Program for branches

Infrastructure. Construction and reconstruction of production infrastructure on area is carried out for 93 enterprises, on the total investment of 52,638 billion tenges. Creation industrially — innovative zones in TR. In TR industrial zones are actively created. In 2010 the first industrial zone «Ontustyk» to Shymkent, in the territory of the former Phosphoric plant by total area – 337 hectares has been created. Now, in the territory of the Industrial zone 65 investment projects for the sum of 46 billion 789 million tenges with creation of 6 thousand 407 jobs are implemented. From them 21 investment projects, for the sum of 29 billion 170 million tenges have entered the Card of Industrialization[10].

In 2016 — 15 projects for the sum of 6 billion 638 million tenges with creation of 866 jobs are realized. For 2016 implementation of 19 projects is planned for the sum of 26 billion 270 million tenges with creation of 3 thousand 229 jobs.

Total production in 2013 was 10 billion 200 million tenges (3,3%), in 2014 have made production for the sum of 12 billion 100 million tenges (that makes 3,7% of the general manufacturing industry on area) [11].

In 2016 total production was 7 billion 470 million tenges (that makes 2,9% of the general manufacturing industry on area). Only 4,9 billion tenges with an ipolnost are allocated for construction and restoration of infrastructure of the Industrial zone «Ontustik» according to the state program «The road map of Business-2020» mastered.

Conclusion

In the area works on opening of industrial zones in all areas and the cities of the region are conducted. For today the industrial zone in the city of Turkestan is open. Besides, this year 1,6 billion tenges are allocated for infrastructure of industrial zones of 7 districts of the area. Within the Card of industrialization 170 projects are implemented. At the same time 65% of projects are placed in the village [13]. At the updating which is carried out recently 53 drafts are introduced to the Card of industrialization in addition, their quantity reached 223 for today. In 10 months of the current year 10 projects for the sum of 6,8 billion tenges are realized. It will be until the end of the year realized remained 31 project and a sozd». In the «Agrarian-industrial» zone it is planned to grow up annually 25 thousand tons of vegetables, but more 3rd thousands of jobs.

In Shymkent also industrial zones are created: «Tassay», «Kazakhstan-Turkish» in to which «Dietary supplements» the 27th will be realized investment the project[14].  Industrial zones also to Turkestan, Shardara and Sozak districts in which it is planned to realize 43 projects are created that will allow to open new jobs, respectively, 5793 persons will be employed. The total area of the land plots allocated under industrial zones in areas and the cities is – 835,5 hectares.

The regional Coordination council of Business SKR today, on areas approved 54 projects for the sum – 47 billion 76 million tenges, with creation of 7 thousand 58 jobs. On October 23 last year during the Business forum the industrial zone of the city of Turkestan, with the total area of 103 hectares, allocated sum from the republican budget is presented – 847 million tenges are completely mastered. By state commission it is finished the act acceptance on the performed works[15].

In 2015 construction of infrastructure 7 industrial zones of Saryagash, Suzak, Shardara, Kazygurt, Tyulkubas, Baydibek and Makhtaral districts is begun). Successfully the project on creation in SKR of the trade and logistics center is implemented; the large warehouse conforming to the international standards is already constructed and put in operation. The centers to Turkestan and Makhtaral district are created trade and logistic.