About the private sector’s needs

Conference

“COPING WITH SHORT-TERM RISKS AND ACCELERATION OF LONG-TERM GROWTH”

June 25-26, 2008 Bishkek, Hyatt Hotel

Talai AsylbekovIBC

The private sector’s needs for economy improvement are not extraordinary or unusual

EEFECTIVE REGULATION

FAIR TAXATION

INDEPENDENT JUDICIAL SYSTEM

LEGAL CLARITY

COMPETITIVE BUSINESS ENVIRONMENT

1. Process for identification of the private sector needs

2. Direct issues of the private sector

Who is the beneficiary of the conducted reforms?

Individuals authorized to take decisions

Issues raised bybusiness associations Issues raised by

individual entrepreneurs

Issues raised byinternational development partners

Issues raised by publicassociations

Issues raised by ministries and agencies

Issues raised byindependent experts

Issues raised by political figures Issues raised by.....

CONSOLIDATED APPROACH IN

REPRESENTING ENTREPRENEURS’ NEEDS

Alliance of the International Business Council and the Union of Entrepreneurs of Kyrgyzstan

Agenda of the IBC/UEK

Profile associations reflecting sectoral interests

Sectoral Committees

Jun 04' Sep04'

Dec04' Mar05'

Jun05' Sep05'

Dec05' Mar06' Jun2006'

Sep06' Dec06'

Sep07' Dec07'

Taxrates

Qualified

staff

Predictable

legislation

Security

Taxadministratio

n

Exchangerate

stability

Corrupted

officials

Business

regulation

Buraucracy

Consistent

courts

60-

40-

20-

0

20

40

60

80

100

4-4-th columnth column: : Health and primary educationHealth and primary education

HIV incidence rate (accurate data)HIV incidence rate (accurate data) 25 25

5-5-the columnthe column: : Higher education and trainingHigher education and training

Admission of students to HEIsAdmission of students to HEIs ( (accurate dataaccurate data)) 4646

6-6-th columnth column: : Commodity market productivityCommodity market productivity

Time required for business start-upTime required for business start-up ( (accurate dataaccurate data))

Number of procedures required to start-upNumber of procedures required to start-up business business ((accurate dataaccurate data))

Average tariff rate for tradeAverage tariff rate for trade ( (accurate dataaccurate data))

3535

3737

4343

7-7-th columnth column: : Labor market productivityLabor market productivity

Firing and dismissal practiceFiring and dismissal practice

Costs related to dismissalCosts related to dismissal ( (accurate dataaccurate data) )

Salary and productivitySalary and productivity

1010

2727

3434

8-8-th columnth column: : Degree of financial market developmentDegree of financial market development

Legal rights index Legal rights index ((accurate dataaccurate data)) 2525

4747

Competitive advantageCompetitive advantage

   Column Column 1: 1: InstitutesInstitutes

01.15 01.15 Ethical behavior of companiesEthical behavior of companies 130 130

01.10 01.10 Transparency of decision-making processes in government bodiesTransparency of decision-making processes in government bodies 125 125

01.18 01.18 Protection of minority shareholders’ rightsProtection of minority shareholders’ rights 124 124

01.05 01.05 Independence of judicial powerIndependence of judicial power 124 124

01.17 01.17 Effectiveness of corporate governanceEffectiveness of corporate governance 124 124

01.07 01.07 Waste of public fundsWaste of public funds 123 123

01.16 01.16 Level of the audit and reporting standardsLevel of the audit and reporting standards 122 122

01.01 01.01 Rights to immovable propertyRights to immovable property 121 121

01.08 01.08 Burden of government resolutionsBurden of government resolutions 120 120

01.14 01.14 Reliability of militia personnelReliability of militia personnel 117 117

01.09 01.09 Efficiency of legal regimeEfficiency of legal regime 116 116

01.13 01.13 Organized crimeOrganized crime 114 114

01.06 01.06 Favoritism in decisions made by civil servantsFavoritism in decisions made by civil servants 114 114

01.11 01.11 Entrepreneurial terrorism costsEntrepreneurial terrorism costs 110 110

01.04 01.04 Political trust of publicPolitical trust of public 106 106

01.03 01.03 Versatility of public foundationsVersatility of public foundations 105 105

01.02 01.02 Protection of intellectual property rightsProtection of intellectual property rights 103 103

   Column Column 2: 2: InfrastructureInfrastructure

02.04 02.04 Developed port infrastructureDeveloped port infrastructure 130 130

02.05 02.05 Developed air infrastructureDeveloped air infrastructure 111 111

02.06 02.06 Availability of seats for passengersAvailability of seats for passengers 108 108

02.01 02.01 Degree of development of all infrastructureDegree of development of all infrastructure 106 106

02.02 02.02 Quality of highwaysQuality of highways 104 104

02.07 02.07 Quality of electricity supplyQuality of electricity supply 96 96

02.08 02.08 TelecommunicationsTelecommunications 90 90

02.03 02.03 Degree of development of highway infrastructureDegree of development of highway infrastructure 65 65

Column Column 3: 3: Macroeconomic stabilityMacroeconomic stability

03.02 03.02 Interest rates on population’s savingsInterest rates on population’s savings 125 125

03.04 03.04 Dissemination of interest ratesDissemination of interest rates 124 124

03.05 03.05 Public debtPublic debt 106 106

03.01 03.01 Surplus/ deficit of the state budgetSurplus/ deficit of the state budget 84 84

03.03 03.03 InflationInflation 77 77

   Column Column 5: 5: Higher education and trainingHigher education and training

05.08 05.08 Volume of training for staffVolume of training for staff 125 125

05.07 05.07 Accessibility of local specialized, research and training Accessibility of local specialized, research and training servicesservices

118 118

05.05 05.05 Quality of institutions providing management educationQuality of institutions providing management education 117 117

05.06 05.06 Access to Internet at schoolsAccess to Internet at schools 81 81

05.04 05.04 Level of mathematics and scienceLevel of mathematics and science 75 75

05.03 05.03 Educational system qualityEducational system quality 72 72

05.01 05.01 Enrollment of students to secondary schools (accurate Enrollment of students to secondary schools (accurate datadata) )

68 68

  Column Column 6: 6: Commodity market productivityCommodity market productivity

06.0106.01 Level of domestic competitionLevel of domestic competition127127

06.0906.09 Spreading of trade barriersSpreading of trade barriers 126126

06.0806.08 Agricultural policy costsAgricultural policy costs126126

06.0306.03 Anti-monopoly policy efficiencyAnti-monopoly policy efficiency124124

06.1206.12 Impact of FDI rules on business developmentImpact of FDI rules on business development121121

06.0206.02 Number of companies with a leading position in the marketNumber of companies with a leading position in the market 118118

06.0406.04 Volume and effectiveness of taxationVolume and effectiveness of taxation 116116

06.1106.11 Level of foreign share in propertyLevel of foreign share in property113113

06.1506.15 Level of buyer/consumerLevel of buyer/consumer107107

06.1306.13 Burden of customs proceduresBurden of customs procedures106106

06.0506.05 Overall tax rate (accurate dataOverall tax rate (accurate data))103103

06.1406.14 Level of consumer orientationLevel of consumer orientation 9191

  Column Column 7: 7: Labor market productivityLabor market productivity

0077.08 .08 Reliability of professional managementReliability of professional management 124124

0077.0.099 Brain drainBrain drain 109109

0077.0.033 Costs per employee except for salaryCosts per employee except for salary ( (accurate dataaccurate data)) 9494

0077.0.022 Flexibility when determining salariesFlexibility when determining salaries 6868

0077.0.044 Complexity of workComplexity of work ( (accurate dataaccurate data)) 6363

0077..1100 Participation of women in the labor marketParticipation of women in the labor market ( (accurate dataaccurate data)) 5959

   Column Column 8: 8: Degree of financial market developmentDegree of financial market development

0088.0.077

Sustainability of banksSustainability of banks 127127

0088.0.088 Regulation of foreign currency exchange securityRegulation of foreign currency exchange security 125125

0088.0.011 Level of financial market developmentLevel of financial market development 117117

0088.0.022 Financing through domestic stock marketFinancing through domestic stock market 107107

0088.0.044 Accessibility of venture capitalAccessibility of venture capital 9999

0088.0.033

Access to financingAccess to financing 9292

0088.0.055 Limitation of capital flowsLimitation of capital flows 8383

   Column Column 9: 9: Technological readinessTechnological readiness

0099.0.011 Accessibility of latest technologiesAccessibility of latest technologies127127

  

0099.0.044 FDI and technology transferFDI and technology transfer125125

  

0099.0.022 Use of technology at a company levelUse of technology at a company level123123

  

0099..0303 Laws onLaws on ICTICT120120

  

0099.05 .05 User of mobile communicationUser of mobile communication ( (accurate dataaccurate data))110110

  

0099.0.077 Personal computersPersonal computers 101101

  

0099.0.066 Internet usersInternet users ( (accurate dataaccurate data))9999

  

   Column Column 10: 10: Market volumeMarket volume

110.00.011 Indicator of domestic market volume Indicator of domestic market volume ((accurate accurate datadata))

117117

110.00.022 Indicator of external market volumeIndicator of external market volume ( (accurate dataaccurate data)) 111166

Direct participation:Dependence on political figures

Information pressure:Loss of feedback due to the human factor

RIA: A new tool, but there is also a risk of formal discussions

In the nearest futureIn the nearest future

Advisory councilsAdvisory councils Annual recommendationsAnnual recommendations

under ministriesunder ministries of the IBC/UEKof the IBC/UEK

Presentations for concerned individuals