Who shapes the economy of the future? Most would say ministers, central governments, or big corporations. But in China the real answer is often different: mayors.
Local leaders play a key role in deciding which industries to back not national agencies. This isn’t just about politics. It’s about real economic strategy. Mayors are picking the sectors that will power their cities for the next decade – and influencing the country’s growth in the process.
How do they choose? Why is this approach working? And what lessons does it offer Kazakhstan? This article dives into the logic behind local leadership in China’s industrial success.
In China industrial policy is built from the ground up. From 2000 to 2022 only 13% of policy documents came from the central government. The rest – 87% – were issued by local and provincial authorities.
Cities and regions pick which sectors to support, design the support measures, and adjust them over time. Beijing sets the national direction – but implementation happens on the ground.
Why it matters for Kazakhstan: Centralized industrial policy limits flexibility. To boost regional economies, local governments need the tools and authority to set their own priorities.
When a mayor changes, priorities change too. New leaders often bring strategies that worked in their previous cities. If they had success in digital infrastructure or logistics, they’re likely to push the same sectors in their new role.
This is called policy diffusion through people – when ideas move with leaders, not through documents.
Benefits:
• Quicker implementation of proven ideas;
• Less time spent reinventing the wheel;
• Career motivation based on impact.
For Kazakhstan: Regional leaders should be rewarded for delivering real results. Promote officials who bring successful strategies and can adapt them to new environments.
Mayors rarely bet on a single industry. They support a portfolio of promising sectors to spread risk and increase chances of success. Think of it like investing – try several ideas, scale what works.
Steps:
• Identify local strengths and opportunities;
• Launch pilot programs in multiple sectors;
• Measure results – job creation, exports, private investment;
• Expand the winners.
Kazakhstan’s opportunity: Allow regions to test multiple approaches, even if some fail. That’s how innovation happens.
In China, mayoral success is tied to economic results. Deliver growth and you rise. That creates competitive governance. New mayors don’t start from scratch – they often bring tools and models from past roles.
One city leader launched a successful industrial accelerator. When transferred, he replicated the model in a new region. Two years later, it became national policy.
Kazakhstan can follow this path: Appoint leaders with proven ideas. Look at their track record. Don’t just reward loyalty – reward creativity and strategy.
In China local experimentation is encouraged. If a city tries something and it works, the idea spreads to other cities. This is horizontal innovation, not top-down command.
Example: tax incentives tested in Hangzhou were later adopted by other regions. Tech park models from Shenzhen spread nationwide.
Kazakhstan’s opportunity: Let cities test policy ideas with clear goals and low risk. If they succeed, scale them nationally.
Chinese mayors are starting to think like investors. They ask:
• What’s the return on public spending?
• How many jobs will this create?
• Will it attract private capital?
• Does it strengthen logistics or exports?
This is a ROI mindset – not just spending, but returns. Results matter more than just “budget used.”
Kazakhstan needs this shift: Move from a “spend the budget” mentality to a “what did we achieve?” approach. Public programs should be measured like private investments.
In China, the mayor is not just a city manager – they’re a chief strategist for future growth. They test, adapt, and deliver.
Five takeaways for Kazakhstan:
1. Give local governments real authority to choose industries;
2. Tie career growth to impact, not paperwork;
3. Encourage experimentation and policy testing;
4. Use return-on-investment to guide spending;
5. Build a national platform to share regional best practices.
Mayors can transform regional economies. With trust, tools, and clear goals – they’re the hidden engine of national growth.