Strong tenge begins with the control of power — recommendations of economist

the tenge exchange Rate fell, however, to say where the bottom is, no one dares. Economist Zharas Akhmetov is convinced that tenge appreciated, we need systemic reform. Namely:

  • to establish their own production to be less dependent on imports;
  • to increase non-oil exports;
  • to increase the investment attractiveness up to a level that capital is not flowing out of Kazakhstan, but, on the contrary, came.

— The package of measures proposed by the government, is now addressing systemic problems we see. Hope that in the present circumstances, they resolved, yet, says the economist.

In Russia the situation worse

— But in Russia, unlike the us, with non-resource production is better, and it was before the crisis?

— In Russia, believe me, not better. Maybe even somewhere worse. Typologically, Kazakhstan, and Russia have similar economies. But us growth was 4%, and 1.5-2%, and then using statistical tricks.

5fe8ca596ce13a16cdb560efefd745cd e1541417218318 - Strong tenge begins with the control of power — recommendations of economist

Zharas Akhmetov

They like the diversity of production more, but the more and system problems. And to conduct business in Russia more difficult. There and arbitrariness and other difficulties more than us.

Prevents monopolization

— Why then do we have non-resource business is weak developing?

— Systemic problems hinder the development of the private sector.

The views of our government is fundamentally anti-market

They understand that to abandon the market model and back in the Soviet times was impossible, but to restrict competition as soon as possible they are always ready. As a result, we have monopolization, a high proportion of the public sector in the economy.

— How to change this approach, where to start?

— To have an environment for business development was favorable, it is necessary to change the legislative, Executive, base, the role of the state Organizaci as Executive bodies.

It is necessary to strengthen public control, to provide the freedom of the media

It was a social, not economic change, first and foremost will provide the main impetus to economic development and increase economic resilience to crisis.

The complexity of non-oil business

Then non-oil exports we will increase?

— Of course. Today it is we do not develop, as the promotion of non-oil high-tech goods in our institutional environment, that is, under our laws and regulations lead to high costs. According to reports from the world economic forum (WEF), the main barriers to trade in Kazakhstan are

  • bad work of transport,
  • the inability of finding the right buyers
  • some tariff restrictions.

But it all costs. For example, when you send the goods for export, you undertake to deliver them on time. And if the transport organization with which you are affiliated, terms and obligations are violated, this leads to costs.

In terms of finding buyers for commodity companies is much easier. Because they are large and they have the ability to pay for expensive lawyers, and if necessary to sue in international arbitrations. And their total sales, these costs have no effect.

But, relatively speaking, for the manufacturer any toys things work quite differently. He will carry the goods, for example, in Russia, it’s “throw”, and who in the end is it there to protect? How much it will cost, the protection and restoration of rights and return of money? Maybe even more than he lost.

This is the main problem in the development of non-oil exports. Survive mostly those exporters, who have been on the market and already stuffed a lot of cones.

To support their

Accordingly, we need to change the legislative framework?

— If we want to develop the private sector, is necessary in all areas where you can reduce the cost of doing business, to carry out legislative changes. President Kassym-Jomart Tokayev in his speech on 2 September said

aid to small business local governors, distributed among close to it companies

It is evidence of inefficient use of budget funds.

For these young akimichi needs someone to follow. And who? People! So must be the election of akims

Or another example: who among us knows the face of at least one member of the city maslikhat? Meanwhile, each of us there is the representative who must protect our interests at the city level. But businessmen don’t know who to ask. Until we have the normal representatives of the authorities, there will be no normal protection, and therefore business development. And scheme “to maintain their, and others ‘care” will flourish.

Investors are afraid

— How do we attract investors into the country? This topic officials today often discuss…

An investor comes to a foreign country in one of two cases:

  • when he realizes that quickly return your investment and will quickly fill up investment costs;
  • or when investment income is not very high and return on investment will be expensive, but where there is a reliable legal environment that protects investor rights and risk of loss of investment equal to zero.

Quarantine coronavirus and tenge exchange rate: triple attack on the economy

Here as the investor comes into the company when he doesn’t understand how reliable the service it reporting? And if she is low quality, then the more will not come.

Reporting in the open access!

Besides very few number of companies in the public domain it is placed. Mainly among them are joint stock companies, subsoil users and some recipients of financing from the budget.

We need legislation to broaden the categories of companies required to put their reports in open access

To individual businessmen it is unlikely to spread, but starting from a certain level of revenue need to be introduced for companies this requirement. In General, we need to change the institutional environment that would allow, on the one hand, to reduce costs, with another — to protect their rights to entrepreneurs and to increase the investment attractiveness of Kazakhstan.

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