The bureaucracy and negative sentiment scare investors from China — the economist

Business conditions in the manufacturing industry of Kazakhstan is markedly reduced. So, according to the British analytical Agency IHS, Markit,

at the beginning of February 2020 the business activity index fell from to 48.2 to 47.1 points

A similar pattern is observed for the third month.

The economy is stagnating

Economist of Magbat of Spanov explains that the combination of many factors. According to him, all the data about the economic growth of 4-4,5%, which gives the Ministry of national economy, not true.

— Most of the increase is due to hidden inflation, which the national Bank is stubbornly hiding. According to him, we have it in the channel and on economic growth is not reflected. In fact, there is a certain stagnation of the economy. Therefore the presidential administration the decision on creation of the center for economic reforms. It is headed by the Deputy head of the presidential administration Timur Suleimenov. By the way,

many have already created development institutions, instead of being anchors in the economy, squandering resources

About the stagnation of the economy and says the strengthening of social conflicts. More and more people are demanding higher wages, increasing benefits and introducing different benefits.

What should the officials?

And the government should not remain indifferent. And in General, to really place, officials must plow: to meet with different social groups and across the nation.

70e6f7878902d10953e3f58a3ed638d4 - The bureaucracy and negative sentiment scare investors from China — the economist

M. Spanov

The Prime Minister and the Ministers should be a “playing coach” to guide, to direct, to be an example, to control the tough questions. And in General, to the post of Prime Minister we need to elect, not appoint, candidates for it should come with a prepared program of economic development of the country. Today, our government is almost not caring, which would be “sick” and would be focused on results, he said.

Chinese investments in mining

Creating a favorable investment climate in Kazakhstan is one of the directions of the government which has a role to play in improving the economic situation. Including affect the development of the manufacturing industry. According to Magbat of Spanov, special emphasis was placed on involvement in this sector Chinese investors.

But distrust, which is strongly fueled anti-Chinese sentiment in the society (often unfounded), discourages potential investors from China. Plus, who would not say, in Kazakhstan it is difficult to obtain a business visa. I learned this personally from Chinese businessmen.

Some invested in deposits that are being developed for many years, but the work did not reach the finals

All because of various bureaucratic obstacles. And given that today

we have actually exhausted all explored in the Soviet period deposits, without money from the outside the development of new we produce

Free money is, unfortunately, no, — says the economist.

External factors

According to Spanov, do not forget that almost half of the amount of the national Fund is arrested. This problem is very much hushed up and the perpetrators never punished. And actually, the story with the Way had a negative impact on the investment attractiveness of Kazakhstan.

— Possible pandemic coronavirus slowly starting to have an impact on us through a General weakening of growth in the world economy. For Kazakhstan are important commodities, as revenues from this account for the lion’s share of the budget.

Reduction of the need for these resources has an impact on the macroeconomic situation in the country

Tooswencym negatively affect us and the prolonged conflict between the US and China. Closed production, we have sokupaetsya less raw materials, says Spasov. Concludes: the country needs economic partners and investors, including Chinese.

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