Ecologically Oriented Regional Development in the Aral Sea Region - Assessment of Business Growth
The problem:
The Aral Sea region, once one of the world's largest inland seas, has been severely affected by ecological degradation due to decades of water mismanagement and environmental neglect. This crisis has led to widespread socio-economic challenges, particularly in the Republic of Karakalpakstan and Khorezm Oblast in Uzbekistan, and Kyzylorda and Mangistau Oblasts in Kazakhstan. The region’s shrinking water resources have devastated local agriculture, fisheries, and livelihoods, leading to increased poverty, unemployment, and health issues among the approximately 2 million residents. The ecological disaster has also severely limited economic opportunities, especially for micro, small, and medium-sized enterprises (MSMEs), which are crucial for regional development. Gender inequality and the marginalization of vulnerable groups, such as unemployed women and persons with disabilities, further exacerbate the region’s socio-economic disparities. To address these issues, there was a pressing need for an ecologically oriented regional development strategy that not only promotes sustainable economic growth but also integrates environmental preservation and social equity.
The solution:
InfoCapital Group LLC (ICG) contributed to the ""Ecologically Oriented Regional Development in the Aral Sea Region"" project, funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ). ICG's role focused on identifying the socio-economic challenges faced by MSMEs in the region and developing actionable strategies to support sustainable business initiatives that align with environmental goals.
1. Field and Desk Research:
- Comprehensive Survey: ICG conducted extensive field research across the Mahallas (local communities) of Chimbay district, surveying 60 MSMEs, including over 20 women-led businesses, to identify key challenges and opportunities. The research aimed to understand the current state of entrepreneurial activities and the obstacles preventing their growth.
- Data Collection and Analysis: ICG gathered and analyzed statistical data on MSMEs, reviewing the information to prepare a detailed research report. The analysis focused on the potential for business development in the context of the region’s unique socio-economic and environmental challenges.
2. Stakeholder Engagement:
- Focus Groups and Interviews: ICG facilitated discussions in two focus groups with 24 Mahalla residents and conducted additional focus groups with civil servants in Nukus city. These engagements aimed to gather diverse perspectives on regional development needs and potential solutions.
- Expert Consultations: 6 interviews were conducted with experts, including representatives from the Tax Committee and local government (khokimiyat), to discuss the role of MSMEs in the region's development and to identify support mechanisms that could be provided.
3. Development of Strategic Proposals:
- Support for Business Initiatives: ICG developed proposals to strengthen support for local civil society’s business initiatives, focusing on promoting gender equality by involving unemployed women in family businesses and private entrepreneurship.
- Inclusion of Vulnerable Groups: The strategy also emphasized encouraging MSMEs to include persons with disabilities in their business projects, particularly in the Chimbay district, as part of a broader effort to promote inclusive economic growth.
- Innovative Approaches: ICG identified innovative approaches in the non-governmental sector that could drive integrated economic and territorial development in the Aral Sea region. These approaches were designed to be replicable across the region, ensuring that successful models could be scaled to benefit more communities.
Through these efforts, ICG played a pivotal role in shaping an ecologically sustainable and socially inclusive regional development strategy, aiming to revitalize the Aral Sea region by balancing economic growth with environmental stewardship and social equity.
Start date:
06/2021
Services:
Client:
German Development Cooperation (GIZ)
