Improvement of the Efficiency of Urban Management within the
Concepts of Smart City and Sustainable Development (As Exemplified
by Cities in Kazakhstan)
AIGERIM KULBAEVA1a, SYMBAT NAKHIPBEKOVA2b, AZIZA MERGENBAYEVA3c,
KAMSHAT AKHMETOVA2d, MERUYERT KULBAEVA1e
1Khoja Akhmet Yassawi International Kazakh-Turkish University,
29 B. Sattarkhanov Ave, Turkestan, 161200,
REPUBLIC OF KAZAKHSTAN
2International University of Tourism and Hospitality,
14A Rabig Sultan Begim str., Turkestan,
REPUBLIC OF KAZAKHSTAN
3South Kazakhstan University named after M. Auezov
5 Tauke Khan Ave., Shymkent, 160012
REPUBLIC OF KAZAKHSTAN
ahttps://orcid.org/0000-0002-6612-0991
bhttps://orcid.org/0000-0002-7461-0384
chttps://orcid.org/0000-0001-8387-7673
dhttps://orcid.org/0000-0003-4225-3025
ehttps://orcid.org/0000-0001-8577-6091
Abstract: - The idea of urban development corresponds to the concept of a smart city and is based on resource
savings or more favorable benefit-cost ratios in the long term using a systematic approach to solving a specific
problem. In addition, it is necessary to address such challenges in the interests of all city residents with due
regard to the possibilities and level of management efficiency. The study aims to identify opportunities for
improving the efficiency of managing an urban resource potential within the concept of a smart city. The article
considers various approaches to the concept of smart city. In particular, it presents the 4T concept of urban
resources based on the relationship between the development of a smart city and its resource potential. Based
on the analysis of five large cities in the Republic of Kazakhstan, reporting and strategic documents of local
government authorities, a survey of their residents, and targeted interviews with local government employees,
the authors of the article have studied their perception of innovations, expectations from their implementation,
and manifestations of smart management in these local government bodies. This allowed the authors to evaluate
the results obtained within the concept of a smart city and the 4T resource potential.
Key-Words: - Smart city; Smart city management; Smart management; Talents; Technologies; Tolerance; Trust
1 Introduction
The concept of smart city is a new approach to city
management. This involves the establishment of a
novel urban operational framework, where
municipal authorities delineate societal objectives
and choose the means for their execution. For
instance, they set benchmarks for quality and
anticipated outcomes of rendered services, [1]. Their
focus extends beyond the mere continuity of
services and innovations; they also prioritize
economic effectiveness, [2]. Furthermore, they
actively contemplate the adoption of emerging
technologies, encompassing the introduction of eco-
friendly and energy-efficient solutions aimed at
bolstering energy security and sustainability, [3],
[4].
Innovative technologies used in various spheres
of human activity, primarily information and
communications, can significantly increase the
Received: April 21, 2023. Revised: November 11, 2023. Accepted: November 23, 2023. Published: December 8, 2023.
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2023.20.229
Aigerim Kulbaeva, Symbat Nakhipbekova,
Aziza Mergenbayeva, Kamshat Akhmetova,
Meruyert Kulbaeva
E-ISSN: 2224-2899
2692
Volume 20, 2023
functionality of urban space, [5]. They contribute to
smart management in the public sphere but it is
people (authorities, society, users, and decision-
makers) who determine the implementation of these
principles, [6], [7].
The concept of smart city management assumes
that public authorities and city services and
institutions effectively use the advantages of modern
information and communications technologies (ICT)
and modern technical and technological solutions
that improve the quality of public services and save
on the use of city resources, [8]. The savings can
cover travel time, communications, energy, and
costs associated with waste management or reduce
costs associated with negative impacts caused by
residents and actors, [9]. With the help of ICT, it is
possible to obtain relevant information and ensure
the collaboration of various decision-making
centers.
In our opinion, smart cities have a huge
development potential since they can solve various
problems related to urbanization, [10], sustainable
development of territories, [11], transport, [12],
public safety, healthcare, [13], development of
tourist attractions, [14], economic growth, and the
digital divide. The corresponding scientific literature
highlights the importance of integrating disruptive
technologies and data-driven decision-making into
planning and managing the urban space of the
future. However, it is vital to ensure that smart city
development remains inclusive and equitable and
benefits all citizens.
1.1 Literature Overview
The concept of a smart city is not defined and
interpreted in a unified manner, and different
authors emphasize different aspects. The concept is
a response to global demographic trends and
urbanization processes, the formation of an
innovative ecosystem, and the pursuit of sustainable
development, [15]. As a result, cities get involved in
creative social experimentation and solve modern
problems through partnerships with creative actors,
[16], [17].
For example, Capra defines a smart city as a
territory with high learning, innovative, and creative
potential, many research centers and higher
education institutions, digital infrastructure,
communications technologies, and sufficient
management efficiency, [18]. Alternatively, another
study emphasizes the capacity of cities to draw in
and maintain a population of highly skilled
professionals and entrepreneurs, [19]. And Hollands
reveals approaches that emphasize: a) transport and
telecommunications infrastructure; b) the use of
ICT; and c) the role of digital media, creative
industries, and cultural initiatives, [20].
Thus, a smart city demonstrates sustainable
economic growth (high economic efficiency) in the
long term, offers a high quality of life, promotes
investment in human and social capital, and uses the
latest ICT or technological solutions that determine
the quality of public services. This city is governed
in accordance with the principle of joint
management.
A smart city is an innovative concept for the
modernization of cities. Its implementation is a
difficult task for urban planners, [21], regionalists,
local governments, and residents, [22], [23].
Kornilova proposes a systematic approach to
urban development, [24]. The scholar describes
three levels of smart city development:
– Smart City 1.0 refers to smart cities at a very
early stage of creation. The use of modern
technologies has been initiated by ICT companies.
They implement various solutions, whether cities
need them or not. A good example is the city of
Songdo in South Korea, which is the largest private
sector development in the world. It is becoming a
business center comparable to Shanghai, Hong
Kong, Kuala Lumpur, or Singapore, [25];
– Smart City 2.0 is a stage in the development of
smart cities with a dominant role of public
administration. The use of modern technologies is
initiated by local authorities. The introduction of
new solutions aims at improving living standards,
for example, in Seoul or San Francisco, [26]. Today
most cities implementing the smart city concept
belong to Generation 2.0, [27];
– Smart City 3.0. Many modern cities are
discovering the active position of their residents
concerning further development. The role of local
authorities is to create space and allow the use of the
diverse potential of residents as co-producers of
public services, [28].
The list of these stages is not exhaustive as the
next phase Smart City 4.0 inspired by Economy 4.0
is under formation, [29].
In our opinion, the most interesting concept of a
smart city is described by the 4T model of urban
resources, [30], based on the relationship between
urban innovation and the resource potential of a
particular city. According to this concept, it is a
synergistic interaction of four components:
tolerance, trust, talents, and technologies. Florida
proves that there is a combination of factors from a
tolerant community, creative professions, and a high
level of technological development that promotes
the growth of cities, [30]. Cities that score high on
these four indicators attract highly skilled and
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2023.20.229
Aigerim Kulbaeva, Symbat Nakhipbekova,
Aziza Mergenbayeva, Kamshat Akhmetova,
Meruyert Kulbaeva
E-ISSN: 2224-2899
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creative employees, people from the sphere of
culture and art, as well as investors. Such cities
become smart cities.
The study aims to identify opportunities for
improving the efficiency of managing an urban
resource potential within the concept of a smart city.
2 Methods
In the course of the study, we selected a qualitative-
quantitative approach.
This study assesses the effectiveness of
managing the resource potential of a smart city since
one of the main indicators of the “Digital
Kazakhstan” state program is the development of
smart cities in the five largest cities of the country:
Astana, Karaganda, Shymkent, Alma-Ata, and
Aktobe. The main actors are local government
bodies (akimats). The main priorities in terms of
smart city development are as follows: to improve
the living standards of residents; to increase the
share of public e-services; and to implement
innovative projects that correspond to the concept of
smart city.
The methodology includes research areas and
individual research stages.
In the first stage, we analyzed literature in the
field of smart cities and evaluated the 4T model of
smart cities. The main sources for the analysis of
urban development were program documents of
Astana, Karaganda, Shymkent, Alma-Ata, and
Aktobe. When considering the relevant reporting
and strategic documents of city Akimats, we
characterized and evaluated these documents within
the concept of smart city and the 4T model of
resource potential.
In the second stage, we used the methods of
survey and questionnaire to measure the perception
of innovations by residents of Astana, Karaganda,
Shymkent, Alma-Ata, and Aktobe. The perception
of innovations and expectation from their
implementation was assessed using a survey in
social networks. The method was based on a non-
probability type of sampling (accidental sampling).
The questionnaire comprised closed-end questions
with several options. In total, 589 residents of the
cities filled out the questionnaires.
In the third stage, we conducted targeted
interviews in five akimats (Astana, Karaganda,
Shymkent, Alma-Ata, and Aktobe) with their
employees responsible for the implementation of
projects related to the development of the smart city
concept. A total of 21 interviews were conducted.
From the statistical viewpoint, the results
obtained were processed using PSS Statistics.
3 Results
Both the technical and social infrastructure of
Kazakhstan and other developing post-Soviet
countries lag behind that of developed economies.
Table 1. Manifestations of smart city management (opinion of residents)
No.
Questions
Answers, %
Is it important for you…
Likely
not
Likely yes
Definitely
yes
1
To live in a prestigious city?
26%
42%
25%
2
To have access to modern infrastructure?
14%
52%
32%
3
To have access to new technologies?
15%
51%
30%
4
To have an opportunity to purchase innovative products?
27%
48%
20%
5
To have access to interesting jobs?
23%
49%
22%
6
To have a potentially high salary?
39%
42%
10%
7
To live in a city involved in science?
12%
45%
40%
8
To have an opportunity for advanced training in the city?
14%
50%
34%
9
To have access to recreational facilities in the city?
9%
35%
52%
10
To have access to efficient public transport in the city?
6%
44%
48%
11
To have access to bike paths?
10%
43%
45%
12
To participate in city management?
24%
50%
20%
13
To have easy electronic/telephone communication with the
akimat?
15%
52%
32%
In your opinion…
14
Is there clean air in the city?
37%
38%
11%
15
Are you satisfied with waste disposal?
32%
42%
13%
16
Is the city administration friendly to residents?
17%
54%
25%
17
Is there nepotism in the akimat?
57%
25%
10%
18
Is there tolerance in the akimat?
14%
60%
22%
19
Do you have confidence in the competence of the akimat?
19%
54%
22%
Note: compiled by the authors
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DOI: 10.37394/23207.2023.20.229
Aigerim Kulbaeva, Symbat Nakhipbekova,
Aziza Mergenbayeva, Kamshat Akhmetova,
Meruyert Kulbaeva
E-ISSN: 2224-2899
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However, the projects that bring the cities of
Kazakhstan closer to the concept of smart cities are
being implemented by local self-government bodies.
There is a process of renewing different aspects of
cities. It depends on a particular city, its history,
internal conditions, the resourcefulness of local
authorities, and other parties involved.
Table 1 presents the results of our study on urban
innovations and living conditions in terms of the
perceptions and expectations of their residents.
In the municipalities under consideration, the
highest expectations of residents are related to
places of recreation and leisure (52%), efficient
public transport (48%), bike paths (45%), scientific
activity (40%), the possibility of professional
development (34%), and access to electronic
communications (32%). Research indicates that
survey participants express a preference for access
to cutting-edge infrastructure, educational
opportunities, and recreational amenities, and these
elements significantly influence how they perceive
their hometown's innovativeness.
The examination of smart city projects through
focused interviews highlighted that each of these
projects encompasses social and technological
housing innovations, as well as inventive measures
to promote community engagement (as illustrated in
Table 2). Nevertheless, there is a notable deficiency
in the implementation of projects related to urban
audits, the effective and innovative utilization of
city data, including information about residents and
users, and the integration of the Internet of Things
and smart networks. These aspects are currently
underutilized, with only a 71.4% level of
implementation, indicating room for improvement
in these areas.
The first direction of the analysis of the
development policy of the cities under consideration
was to assess their strategic documents and find
direct references to the concept of a smart city. We
carefully studied the content of strategic documents.
Then we selected records related to the research
topic and fragments that define the desired future
usually formulated in the form of vision, goals,
directions, or development efforts.
In all cases, the documents considered indicated
the concept of smart city since all the cities were
included in the “Digital Kazakhstan” state program
as separate projects: Smart Astana, Smart
Karaganda, Smart Ontystuk, Smart Almaty, and
Smart Aktobe.
The analysis of strategic documents revealed
differences in the future of these cities: through
vision, goals, directions, or development projects,
for example, in terms of environmental protection or
energy efficiency.
The second direction of the analysis of the
development policy of the cities under consideration
was to consider the policy of the akimats within the
4T concept of urban resources in two contexts:
reporting documents that determine the current state
of urban resources and strategic documents that
determine the desired future of cities. This creates a
synthetic picture that includes the current state and
the elements that shape the planned future of the
city (usually included in the vision, goals,
directions, or implementation projects). The results
of the analysis are presented in Table 3.
Table 2. Manifestations of smart management in akimats (opinion of akimat employees)
No.
Manifestations of smart management
Yes
No
Don’t know
1
Social and technological housing innovations
100%
-
-
2
Smart districts
85.7%
14.3%
3
Innovative solutions to support social involvement
100%
-
-
4
Smart solutions for sustainable mobility in the functional city area
85.7%
14.3%
-
5
Smart grids for the communal economy management
71.4%
28.6%
-
6
Internet of Things
71.4%
14.3%
14.3%
7
Ecotechnologies and environmental solutions
85.7%
14.3%
-
8
Efficient and innovative use of data about the city, its inhabitants, and
users
71.4%
28.6%
-
9
City audit
71.4%
28.6%
-
Note: compiled by the authors
Table 3. The analysis of urban resources within the 4T concept of development strategies of cities in
Kazakhstan
City
Talents
Tolerance
Technologies
Trust
Alma-Ata
High level
Medium level
High level
Medium level
Astana
High level
Low level
High level
Medium level
Karaganda
Medium level
Low level
Medium level
Low level
Shymkent
Low level
Low level
Medium level
Low level
Aktobe
Low level
Low level
Medium level
Low level
Note: compiled by the authors
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DOI: 10.37394/23207.2023.20.229
Aigerim Kulbaeva, Symbat Nakhipbekova,
Aziza Mergenbayeva, Kamshat Akhmetova,
Meruyert Kulbaeva
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4 Discussion
Based on the results obtained, we can consider
conclusions both from objective and subjective
perspectives. According to the subjective approach,
Alma-Ata is ranked first, followed by Astana and
Karaganda, with Shymkent and Aktobe lagging.
This assessment refers to strategic documents. Since
they were not based on uniform guidelines, different
assessments are also associated with the
differentiation of the procedure for creating such
documents. Consequently, differentiation also
concerns the specification and volume of
documents: for example, the Alma-Ata strategic
document is extensive and significantly exceeds the
strategic documents of Shymkent or Aktobe.
In this regard, it is also possible to define 4T
resources in strategic documents which rank
resources as follows: technologies, talents, trust, and
tolerance. Indeed, the technological resource is the
priority of all strategic documents. However, its
references vary. In almost all cases, there is a direct
mention of talents in strategic documents. On the
contrary, the direct mention of trust and tolerance
was found only in one case.
We concluded that the construction of smart
cities in Kazakhstan should be guided by a model
based on innovative technical-economic
infrastructure and developed educational
organizations. This can stimulate economic growth
and create new jobs in the technology sector, [31].
Developing the necessary infrastructure, services,
and applications to support smart cities can attract
investment, spur innovation, and foster
entrepreneurship, especially for Astana and Alma-
Ata. Such a model has worked well in metropolitan
areas that have a significant concentration of the
population, are characterized by high GDP and GDP
per capita, serve as the headquarters of large
corporations, and are located in business centers and
public institutions, [29].
To build a smart city, it is necessary to create
sectors of an innovative economy that improve the
living standards of residents with an effective
control center, [1]. The fundamental concepts
underlying the definition of a smart city can be
illustrated through the activities of the akimat. In the
realm of smart city management, emerging
technologies play a crucial role, aiding city
authorities in addressing contemporary challenges
brought about by the expanding urban population
and the rising demand for the digitization of public
services, [32]. The akimat activities in the interests
of residents should ensure a high level of comfort
and satisfaction from the functions performed and
the public services provided, which improves the
quality of life, convenience, ease, and trouble-free
functioning. This approach should be applied not
only to residents but also to other users of urban
services.
Another practical factor is the development with
the help of professional and qualified personnel,
thinking out-of-the-box, striving for development,
using the maximum knowledge of employees, and
providing them with accessible working tools, [26].
In a broader sense, the akimat fully uses its human
and economic resources and capabilities.
The akimat should not only be smart but also
follow procedures in the field of intellectual actions
and willingly use smart solutions in certain
activities. The development of technologies together
with the development of professional capacity will
advance digital equality and inclusion, [33], so that
all citizens can benefit from technology-driven
transformation, [34]. This requires investment in
digital infrastructure and efforts to bridge the digital
divide by providing access to essential services and
opportunities for all residents.
5 Conclusion
In the course of the study, we analyzed the
synergistic interaction of four components in five
cities of Kazakhstan: tolerance, trust, talents (human
capital), and technologies. As a result, we revealed
that none of these cities use this model and only
apply some of its elements. Thus, it is necessary to
build a new model based on an innovative technical-
economic infrastructure and developed educational
organizations. This will help to achieve sustainable
development goals by optimizing resource
consumption and reducing environmental impact.
Then it will be possible to improve public safety by
training specialists who can regulate the use of
artificial intelligence and analyze big data for the
development of smart cities. By gradually
developing the above-mentioned individual
components, we can achieve a synergistic
interaction of the four components, i.e. implement
the 4T model.
It is stated that efficient urban management can
lead to cost savings, which can help control inflation
by preventing excessive price increases in essential
goods and services. Additionally, sustainable
practices, proposed in the paper, are relevant to
modern economics, considering the impact of
resource scarcity and environmental factors on
prices.
Moreover, the emphasis on technological
innovation aligns with economic growth,
influencing inflation rates through increased
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DOI: 10.37394/23207.2023.20.229
Aigerim Kulbaeva, Symbat Nakhipbekova,
Aziza Mergenbayeva, Kamshat Akhmetova,
Meruyert Kulbaeva
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productivity and altered production costs. Efficient
public services, as discussed in the paper, can
enhance consumer satisfaction and potentially
influence consumer behavior, indirectly affecting
inflation dynamics.
The study is limited by the sampling of
respondents. Therefore, it is incorrect to apply the
conclusions drawn on smart city management to all
cities of Kazakhstan.
Future research in this field should prioritize
cross-city comparative studies to examine variations
in smart city strategies and their economic
consequences, especially regarding inflation
dynamics. Long-term assessments of the economic
and environmental impacts of smart city initiatives
are crucial, alongside investigations into the
relationship between digital infrastructure
development and inflation. Additionally, exploring
the socioeconomic inclusion and environmental
sustainability aspects of smart cities can provide
valuable insights into their broader economic
implications.
In our opinion, one of the most complex
challenges in the development of smart cities in
Kazakhstan is to improve the health and well-being
of the population, as well as counterbalance
environmental factors that affect health. We believe
that it is also necessary to conduct research in the
field of telemedicine and remote medical services,
which can be facilitated with the help of reliable
digital infrastructure, the development of legislation,
and increasing the professionalism of employees.
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Meruyert Kulbaeva
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WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2023.20.229
Aigerim Kulbaeva, Symbat Nakhipbekova,
Aziza Mergenbayeva, Kamshat Akhmetova,
Meruyert Kulbaeva
E-ISSN: 2224-2899
2699
Volume 20, 2023