1 Almaty Region Region is located in the south-east of the country. As of January 1, 2012 the area is 224 thousand square kilometers, the region's population is thousand people (11.5% of RK population). Density of population over the region per 1 km is 8.5 people (average in RK – 6.1). Resource base includes reserves of non-ferrous metals – lead, zinc, copper; rare metals - tungsten, tin, molybdenum, beryllium, precious metals – gold and silver, reserves of energy brown coal, building materials. Administrative-territorial structure of the region includes 16 districts and 3 cities of regional subordination: Kapchagay, Taldykorgan, Tekeli. The main socio-economic indicators of the region for 2011 are provided in the table. 1 Demography: Regions population is growing. In 2000 it was 1,557 thousand people, at the beginning 2012 – 1,909 thousand people: As of January 1, 2012 Area, thousand square kilometers Share in total RK area, % Density for 1 square kilometer Index level in RK Population, thousand people Share in total RK population, % 2011 Economically active population Share in total RK EAP, % employed Share in RK index, % hired labor Share in RK index, % unemployed Share in RK index, % Monthly average nominal salary, Tenge Index level in RK Nominal population income (estimation), average per capita a month, Tenge Index level in RK Compared to previous year in % Level in RK GRP, billion Tenge Share in total RK GRP, % CPI (end of period), by December of previous year in % Index level in RK Volume of industrial product, billion Tenge Share in RK index, % Agriculture total output (services), billion Tenge Share in RK index, % Fixed asset investment, billion Tenge Share in RK index, % Retail trade, billion Tenge Share in total RK index, %

The number of employed population increases and unemployed population falls in both absolute and relative terms. For 10 years, from 2001 to 2011, the employed population has increased from 90 to 95%, while the number of unemployed people has fallen from 10 to 5%. Characteristic feature of the employed population dynamics is the growth of hired labor and the reduction of self-employed people. From 2001 to 2011 the number of hired labor has increased from 51% to 56%, the number of self-employed people has fallen from 49 to 44%. EAP structure corresponds to the average in Kazakhstan: 2 EAP of the region is increasing at a moderate pace and in 2011 it reached 947 thousand people thousand people are employed, 47.9 thousand people are unemployed. The economically inactive population made up thousand people, thousand people, it is above the level in 2000: Labor Force thousand people Economic ally inactive populatio n Economically active population Including: Unemplo yed Employed including: Hired labor Self- employed Economically active population (EAP)

Unemployment Level The changes of employed population structure are supported by a strong tendency of unemployment rate reduction from 14.1% in 2000 to 5.1% in 2011 and an increase of the economic activity of the population: 3 In 2011 unemployment rate of the region was slightly below the average in Kazakhstan – 5.4%:

4 Quality of Life Cost of living has been growing steadily since 2003, and the values are above the average in RK: Share of population with income used for consumption below the poverty line is decreasing and it is below the average in Kazakhstan in 2011: Life expectancy at birth in the region is increasing and the values are above the average in Kazakhstan: Some of life quality indicators in 2011:

Enrollment share of the population aged 6-24 years has decreased since 2001 and now it is below the average in RK: 5 Enrollment The number of students in technical and vocational education is increasing, despite the decrease of regions population: The number of children in regular preschools has significantly increased since 2001: The number of students in higher education has been decreasing since 2004, despite an increase of regions population:

Population Income Population Income Monthly average nominal salary per employee for 2011 is 67,638 Tenge, which is below the countrys average – 90,028 Tenge: In the dynamics the average nominal salary per employee and the average nominal income per capita are ever-growing. The index of the nominal and real incomes showed a decline during the crisis in In 2009 the growth of nominal income was less than the consumer price index, i.e. revenue growth did not cover inflation: 6

Economy Despite the GRP growth, the regions share in total GRP of all the regions has fallen from 4.8% in 2000 to 4.5% in 2011: GRP growth in 2011 is below the average growth of total GRP of all the regions of Kazakhstan and makes up 124.9% compared to 2010, against the total value of RK %: 7

Investment Fixed assets investment tends to a stable significant growth, however, its values have decreased during the crisis in 2010: The growth of fixed assets investment in 2011 has exceeded significantly the total average level in RK regions and made up 121.6% compared to previous year against 107.7% in general in RK. This tendency can be explained by the base effect from the stronger decrease of investments in 2010 in the region compared to RK level: 8 The share of fixed assets investment in the Kazakhstans level of investment has increased significantly from 1.6% in 2000 to 7.4% in 2011:

Agriculture The volume of production in agriculture was increasing until 2009, decreased in 2010 to billion Tenge: 9 The share of the regions volume of production in agriculture in total Kazakhstans volume of industrys production. In % of countrys agricultural production was manufactured in the region:

Real Sector The growth of industrial production volumes was observed throughout the study period: 10 The share of industrial production in the Kazakhstans level has decreased from 8% in 2000 to 5.2% in 2011: Real sector industries with the highest values of production in 2010 are agriculture, production of food products, construction, production and distribution of electricity, production of paper and paper materials. These industries have the significant share in the total production volume of RK and regions GRP:

11 The number of industrial enterprises has decreased from 2008: The number of construction companies is increasing: The number of working agricultural enterprises was growing since 2000, and decreased in 2011: Sector Enterprises

12 Small and Medium Business The number of registered legal entities as of October 1, 2012 is The SME number is The structure of the enterprises number is close to the RK average level: SME share of the region's GRP is growing at a moderate pace up to 2010, and its values are above the average level in RK:

13 Budget revenues of Almaty region in 2011 amounted to trillion Tenge, including trillion Tenge of transfers from the national budget. Expenses amounted to trillion Tenge, including 1.3 trillion Tenge of transfers to the national budget. Thus, the region is subventional: Interbudgetary Relations

Almaty Region Development Program for Main target indicators: Real GRP growth in 2015, compared to the level in 2009 shall be 130.8%; The share of manufacturing industry in GRP shall be not less than 19.4% in 2015 (in %); An increase of labor productivity in the manufacturing industry by 1.5 times to 2015; An increase of the production volume of the constructing materials in 2015 to 39,935.2 million tons (In million tons); An increase of the share of non-resource exports to 86.4% (in %) of total exports in 2015 ; An increase of non-resource export volume in 2015 to at least 12.8% of total manufacturing production (in %); An increase of the proportion of local content in the procurement of government agencies and organizations, strategic companies – for procurement of goods up to 60%; An increase of the proportion of local content in the procurement of government agencies and organizations, strategic companies for the procurement of works and services up to 90%; An increase of the labor productivity in agriculture by 2015 to thousand Tenge or by 2 times ( thousand Tenge); The share of SMEs in GRP shall increase by 3 - 8% by 2015; To keep inflation at an average of 6-8% per year; Investment in the manufacturing industry shall increase at least by 2.3 times in 2015; Coverage of preschool education and upbringing in educational organizations shall reach 48.2%; Life expectancy of the population shall increase to 70.1 years by 2015; Overall mortality shall reduce to 6.8 by 2015; The unemployment rate shall fall to 5.5% in 2015; The share of the population with income below the minimum cost of living shall reduce to 12.5% in