13. Industry (1)

1. Lesson: Geography of Kyrgyz Republic Subject: Industrial development of Kyrgyz Republic

Lecturer: Emilbek Zholdoshbekov
emilbek.zholdoshbekov@alatoo.edu.kg

2. Outline

• Introduction.
• History.
• Light industry.
• Heavy industry.

3. Introduction

• Industry is an economic activity concerned with the processing of raw
materials and manufacture of goods in factories.
• Importance of industry: Industrial development has played very significant
role in the improving the economic condition of the countries. Following are
the main advantages of industrial development:
• Industrialization solves unemployment rate problem.
• Industrial growth is often linked with higher wages.
• The production that industry provides buts more money and more services
for the economy leading to higher income per capita and more labor
productivity.
• The standard of living increases when industry increases.
• Development of other sectors.

4. Introduction

• As of January 1, 2019, the number of large enterprises and industries
amounted to 1974 units (middle: 4319, small: 23 990), the number of
employees in which was 200 thousand people, they produced products worth
278 565 million soms.
• Share of industry in GDP equals to 18%.
• The industry of Kyrgyz Republic is oriented mostly to local market.
• On last 20 years the republic's industry is not fully adapted to market
conditions, the general level of industrial production does not stabilize, does
not a purposeful state industrial policy is being implemented, which would be
inextricably linked with the general economic strategy of the state. Priority
areas in industries are still not clearly identified. In this regard, the level of
economic growth in the national economy of the republic is not high.

5. Introduction

Figure: Share of industrial income by A) regions, B) branches

6. History

Kyrgyzstan until 1920’th was heavily rural, with
some urban trade centres
After the
October Revolution, with
1)
industrialization in 1930’s, 2) evacuation of industrial
plants to Asian part of USSR during WW2, 3)
recovery and industialization between 1950-1985 it
begun the stage of rapid economic growth and
modernization, lead by heavy industry. From 19131981 industrial production increased 379 times.
From 1940 to 1980, the average annual growth of
industrial gross output in the republic was 10.2%. In
1980, the republic’s industry accounted for 55.6% of
the gross domestic product. The industry of the
republic as a whole consisted of 130 branches. In
these industries the output was regularly increased.
For example, more than 200 types of products were
manufactured in the engineering industry. The
development of industry created favourable
conditions for the development of the labour
market. In 1980, the number of workers in the
republic already reached 197 000 (in 1913 – 2 500).
Work days of Interhelpo cooperation
Everything is for needs of the front
Plant of agricultural machine-building

7. Light industry

• Light industry is a set of industries that produce mainly consumer goods from
various types of raw materials.
• Light industry is one of the leading sectors of the economy of Kyrgyzstan in
terms of its volume, multiplier effect, and importance in solving social
problems.
• The light industry is divided into the following areas:
• Primary processing of raw materials;
• Textile industry;
• Food industry;

8. Light industry

• Textile industry
• The industry's share in the structure of the entire industry is 3% at the end of
2019. In the industrial production of the Kyrgyz Republic.
• The light industry of Kyrgyzstan is represented by “textile production”,
“production of clothing and production of leather, leather goods”, as well as
“production of footwear”. The volumes of industrial production in these subsectors in 2019 amounted to 1491.9 million soms, respectively.
• Textile production in the territory of Kyrgyzstan is distributed relatively evenly.
It is concentrated in Bishkek 29%, Jalal-Abad region 28.5%, Chui region 23%,
Osh region 17%.
• The textile industry of Kyrgyzstan represents by large enterprises as: Tokmok
wool factory, Frunze fabric factory, Kara-Balta rug factory, Osh silk factory etc.

9. Light industry

The food industry is one of the priority industries in the republic. The branches of the
food industry are mainly based on the processing of local raw materials for domestic
consumption. In the structure of gross industrial output, the food industry occupies
about 20% and more than 10% of the export volume (sugar, fermented tobacco, food
alcohol).
Sugar industry. It was widely developed in the early 40s. Novo-Troitsky, Kant, Tokmok,
Belovodsky and other plants were built. The sown area for sugar beet was more than
50 thousand hectares, the gross harvest was 1 million 900 thousand tons. In 2000 57137.3 tons of granulated sugar produced.
The bakery industry in Kyrgyzstan began to develop only after the revolution. Until
1917, baking was at the level of home and small commodity production. In 2000 87443.3 tons of bread and bakery products were produced. There are bakeries in
almost all cities and large settlements in the republic.
The tobacco industry. Tobacco cultivation in the republic first began in 1890 on an area
of 70 hectares. Tobacco production has been widely developed since 1929 (first in the
Chuiskaya, then in the Talas valley and the southern districts of the republic). The
production of tobacco products is concentrated in 11 enterprises. Large: Joint Stock
Company REEMSTMA - Kyrgyzstan (with a capacity of 7 billion cigarettes per year), Joint
Stock Company Sary-Altyn, Kyzyl-Kyi Tobacco Fermentation Plant, Jalal-Abad Tobacco
Fermentation Plant, joint stock company company "Ayup-Bulak", Osh tobaccofermentation plant, joint-stock company "Osh Dyubek".

10. Light industry

Dairy industry: The largest enterprises: Bishkeksyut Joint Stock Company, Ak-Syut Joint
Stock Company (Belovodsk Dairy Plant), Tokmok Dairy Cheese Production Plant Kyrgyz-Swiss Open Joint Stock Company Syut-Bulak, Ak-Syut Joint Stock Company
Zhalga "(Kyzyl-Suu cheese factory), joint-stock company" Elvest "(Bishkek)," Eridan-Syut
"(Kara-Balta).
Industrial enterprises of alcoholic and non-alcoholic beverages are represented by such
large enterprises: Joint Stock Company Bishkek Distillery, Kara-Balta, Kyrgyzshampany,
Salkyn (Jalal- Abad Brewery), Bishkek Brewery, Addis (Belovodskoe), Ala-Too Joint Stock
Company (Alamyudyun) and other mini-productions.
• The beginning of the development of viticulture and winemaking in the
republic dates back to 1944, when a wine state farm named after Lenin was
organized in the Chuy valley. In subsequent years, state farms were created:
"Ala-Too", "Chuisky", "Oktyabrsky" and named after Krupskaya. In 1980, the
total area of ​vineyards in the republic occupied 8 thousand hectares, the gross
harvest of grapes - 70.3 thousand tons. The production of grape wine in 1995
decreased by 10%, champagne by 30%, and cognac by 48%. The wines
produced by the joint-stock company "Kyrgyzshampany" (1957) from local raw
materials have always been of high quality. In 1966 this joint-stock company
produced 2 million bottles of cognac and 2 million bottles of champagne.

11. Heavy industry

• Heavy industry refers to an industry that produces large industrial products,
which requires large and heavy machinery and facilities and involves complex
production processes.
• Heavy industry includes:
• mining;
• ferrous and non-ferrous metallurgy;
• chemical production.
• The development of heavy industry is associated with the industrial
revolution.
• Heavy industry KR is based of import raw materials.

12. Heavy industry

The share of mechanical engineering and metalworking is occupied by the
instrument making (Dastan plant), machine building (Avtomash radiator plant),
metal processing products. The elecrotechnical complex produces electric motors,
electric transformers, lighting (Maili-Suu bulb factory) and semiconductor devises,
cables and wires (Kaindy cable plant), household electrical goods, metering devises
are producing in 9 factories.
Large enterprises of the construction industry operate on the territory of
Kyrgyzstan: Kurmenti cement plant, Kant cement and slate plant, Zhel-Aryk lime
plant, such large enterprises as the Kyrgyz plant of building materials, Ivanovo
plant of building materials were commissioned , Tokmok glass plant (Interglass
factory), Kant slate factory, Chuy crushing and sorting plant, Osh plant of building
materials, “South-Kyrgyz cement” etc.
• The total design capacity of the republic's cement enterprises reaches 3
million tons per year.
By 2020, in the Central Asia, the share of Kyrgyzstan was 19% for cement, 25% for
slate, and 20% for bricks.
Currently, there are more than 2 thousand deposits of non-ore raw materials in
the republic, suitable for the production of various building materials. Deposits of
raw materials required for the production of bricks, cement, expanded clay, facing
slabs, agglopyrite, gypsum, lime, sand, and crushed stone are especially promising.

13. Questions

• Indicate the largest industrial enterprises in Kyrgyzstan.
• Indicate the favourable and unfavourable conditions for industrial
development in Kyrgyzstan.
• Which industrial sector has the largest potential in the future?

14. Thank you for attention