Let’s go from bottom to top
The uniqueness of the program lies in the fact that it is developed entirely with the participation of the business community of the country and that each element contained in it offers great opportunities for business. This time, as recognized by the Ministry of Economy and Trade of the Kyrgyz Republic, the usual methods of drawing up a normative legal act of this level have been revised.
According to Deputy Minister of Economy and Trade of Kyrgyzstan Ainura Usenbekova, such documents were first developed in state structures, and business associations were involved only at the last stage. This time they decided to start from the bottom up – they asked entrepreneurs to present their vision of how the economy of the republic should be developed in the coming years, and based on their proposals, a draft program has been developed.
During the development of the document, particular attention was paid to several areas. Among them – the granting of tax preferences, the simplification of administrative procedures, the creation of conditions for the development of certain sectors of the economy.
- The need for such a program is connected with the changes that have taken place in the country in recent years, – Ainura Usenbekova told RG correspondent, – This is primarily about the negative impact of coronavirus infection on the life of the Kyrgyz people and the socio-economic situation. In addition, in October 2020, the republic once again experienced socio-political upheavals. And, finally, the restrictions of interaction with the outside world have increased sharply and the possibilities of access to resources have narrowed. That is, in fact, a new reality has formed, in which certain prohibitions can remain indefinitely.
As the Deputy Minister explained, despite all the conditions created to ensure stability in Kyrgyzstan, the main problems today remain numerous violations and non-compliance with legislation in the areas of customs regulations, enforcement of sentences, medico-legal assistance, public procurement, taxation and licensing. activities, assets of the public administration and assets of the community.
It’s all in the principle
During the presentation of the document, Ainura Usenbekova focused on several principles set out in the program. These include, for example, mutual accountability, which implies a reduction in the regulatory functions of the state.
We are talking about simplifying the procedures of the tax administration and its transition to a service-service model. That is, as the National Tax Service of the Kyrgyz Republic explains, a gradual abandonment of punitive measures and a greater focus on the provision of services. To do this, service centers will be opened in the republic, where entrepreneurs can not only pay taxes, but also receive advice on how to proceed in each specific case.
Another point on which Ainura Usenbekova focused is the link between trade and producers, which, according to her, is one of the main principles necessary to improve Kyrgyzstan’s economic standing on the world market, improve the conditions for infrastructure, recognizing and applying international standards.
In a separate chapter, the developers of the program have formalized environmental efficiency. According to the Ministry of Economy, despite regular declarations on the “green” sustainable development of the country, indeed, the preservation of natural ecosystems and the protection of biodiversity are insufficient.
For example, there are concerns about the level of pasture degradation. Excessive and unregulated grazing and deforestation lead to soil erosion and harm agriculture. Climate change has an additional impact.
As before, in many localities of the Kyrgyz Republic, the problem of access to water supply and sanitation has not been solved. About 20% of the rural population does not have access to drinking water, which worsens the country’s health situation.
- With huge hydroelectric potential, Kyrgyzstan has one of the most energy-intensive economies, – said Ainura Usenbekova. – The reasons for this are the low level of its technological modernization and the politicization of the pricing process in the energy sector. Of course, this seriously affects the investment interest in this sector. The country has huge water resources, while only 20% of the river flow is used in the republic.
At whose expense?
Despite the fact that entrepreneurs participated in the development of the Business Development Program until 2026, representatives of the business community still have some doubts. Moreover, most of their questions do not relate so much to the content of the document as to its financial component.
– The program is really unique, and at first glance it seems that everything is taken into account in it, – says the head of one of the processing enterprises Ruslan Abaev. – And yet I am confused by a question, the answer to which the government has not yet given. It’s funding. Given our foreign debt and our budget deficit, where will the funds come from, for example, to develop the same creative hubs? Not only do we have a catastrophic number of specialists in this field, but we don’t have the technology either, and they are very expensive. If we have to borrow money again to implement the program, then there can be no talk of any development. Remember how much money we have already taken for these purposes and where we have come to. This requires a clear analysis of the situation. Great hope for the State Development Bank.
Apart from the financial aspect, entrepreneurs are also worried about who will be responsible for the implementation of the program by the state. The Ministry of Economy of the Kyrgyz Republic promised to provide answers to these and other questions in the near future.
A comment
Gulnara Uskenbayeva, head of the Association of Suppliers, Manufacturers and Distributors of the Kyrgyz Republic
The program, which was presented by the Ministry of Economy and Trade of Kyrgyzstan, contains the main directions and tasks for the development of the country, provides for a policy for the development of the business environment and the investment climate. The main thing is that this document contains a schedule plan, deadlines and events. In addition, a big plus is that the Ministry of Economy will check what has already been done twice a year. This greatly increases the chances of successful program implementation.
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