Investments today: when desires do not coincide with the possibilities
Bishkek holds business-forums at a run. Representatives of business circles of Kyrgyzstan pass from one hotel to another to participate in forums and find potential investors in a crowd of Turkish, Mongolian, and Kazakh delegations.
All nations visit us
Recently, business-forums are being organized almost every week. Each event gathers around 200 people and has the same model: solemn presentation of Kyrgyzstan as the country trine for investments, speeches about brotherhood and friendship of peoples, similarity of countries and nations, speeches about common ancestors, history, religion, kaganates and Manas… Overall, all of this is constrained by imagination of a speaker and desire to get investments.
Kyrgyzstan keeps praising its priorities in agriculture, mining and energetics. Besides, business projects are usually one and the same.
Event for Mongolian delegation didn’t become an exception. First, the Minister of Economy and Antitrust Policy Temir Sariev spent much time to explain why it is important to cooperate. Then he put emphasis on similarities of fraternal peoples as well as on internal and external likeness. In the end he expressed a hope that the world would speak about Kyrgyzstan and Mongolia as invaders of the world market not only as capturers of new lands during times of Great Genghis Khan.
Russian language could not have come at a better time. The event was conducted on Russian, the official language of the republic, which is the second native language for fraternal peoples of Mongolia. Many of them studied in the USSR and even in Kirghizia therefore they speak Russian fluently. Organizers didn’t forget to say that bilingualism is sealed by our Constitution.
I love myself for everything
Then a universal presentation took place which provided potential investors and partners with common information about the country which could be found easily in Internet: geographic location, GDP, and inflation. It can be presented without any changes at any business-forum. But what is the reason to spend precious time repeating the same well-known for everyone? Our businessmen know this very well while foreigners are interested in concrete projects and conditions but the main thing for them is guarantees of investments and property security. But it is not considered respectable to pinpoint state guarantees of investments in the country where nationalization won as well as don't mention rope in the house of a hanged man.
Meanwhile ministers and their assistants speak fine words that Kyrgyzstan will be Eden for investors soon, the republic rolls down in the International Index of Economic Freedom. Thus, Kyrgyzstan slid to 88th rank out of 179 possible losing 5 points as of January 2012. Of course this is better than 124th rank of Moldova, 144th rank of Russia and 153rd rank of Belarus but there are plenty good examples like Kazakhstan (65th rank), Lithuania (23rd) and Estonia (16th).
Experts explain this downfall by significant losses in terms of ownership, government expenditures and freedom of doing business. Political unrest caused instability and uncertainty which slowed down economic development of the country.
“My will of the head of the state will be enough to give security to investors,” the President Almazbek Atambayev said during his visit to Istanbul. In these latter days, authorities show their desire to improve business environment. Law improvements in tax system, mining and reducing number of inspection authorities are welcomed by business circles. But fear to lose business is still strong. After 42 interim government’s decrees on nationalization passed with direct participation of Almazbek Atambayev investors can hardly believe him. 47 private facilities were transferred into ownership of the state out of court and investigation.
Foreign businessmen are attracted by the lowest taxes in Central Asia, cheap electricity and man power. There is something Kyrgyzstan is proud of. If average salary in Russia is close in $700 and in Kazakhstan it is $500 then people agree to get $200 in Kyrgyzstan. However, the Ministry of Economy and Antitrust Policy assures that market culture together with literacy improve in the republic.
Multivector in Kyrgyz way
Probably, multivector in Kyrgyz way is while smiling at someone keeping in mind to bow before others. Wishing to be members of the Customs Union and declaring strategic partnership with Russia the country hasn’t held any forum to attract Russian investors. Authorities don’t feel shy when promising projects in energy sector to both Russia and Turkey. They are so eager to fall between two, three, four stools! But, alas…
“Kyrgyz multivector model has the most significant defect. To be multivector it needs to be interesting for potential partners,” REGNUM News Agency quoted international expert on transport issues Kubat Rakhimov as saying.
“I promise, I swear that I will do all my best”
Despite ardent desire to get foreign capitals gold rivers don’t flood the republic. Potential investors see very well what is destiny of companies who have risked doing business in the republic.
“Businessmen fear corruption and instability in Kyrgyzstan,” the governor of Bursa Province, Shahabettin Harpu, said openly at the Kygryz-Turkish Forum for Trade and Investments. “We are glad to know that some measures against this are taken but it is necessary to make laws working. Businessmen are interested in cooperation but it is important for them to know what risks are.”
“Kyrgyzstan greets Russian capital but money extortion continues on the part of state agencies,” the Russian Ambassador Valentin Vlasov said at the meeting with vice Prime Minister Dzhoomart Otorbaev.
And this truth is thorn in the Cabinet’s side. It seems potential investors guess that they must be ready to execute state functions in Kyrgyzstan which could be financed by the state budget just because “we don’t have means while they have”.
“The country has the most liberal tax and customs legislation. To improve investment climate we promote a complex of reforms aimed at forming favorable business environment, we eradicate administrative hurdles in sphere of investments,” Temir Sariev alluringly told Mongolian delegation.
“The Government of Kyrgyzstan showed it has turned its face to business,” he said at the Kyrgyz-Kazakh business-forum.
And I am so eager to believe the Minister. His initiative to impose excess profit tax for mining companies and offer to Kumtor to construct meat, vegetables, and fruits processing plant as well as Kentor Gold Australian Company which invested $41 million in gold deposit but failed to start up remain outside halls where business forums are being conducted.
All nations visit us
Recently, business-forums are being organized almost every week. Each event gathers around 200 people and has the same model: solemn presentation of Kyrgyzstan as the country trine for investments, speeches about brotherhood and friendship of peoples, similarity of countries and nations, speeches about common ancestors, history, religion, kaganates and Manas… Overall, all of this is constrained by imagination of a speaker and desire to get investments.
Kyrgyzstan keeps praising its priorities in agriculture, mining and energetics. Besides, business projects are usually one and the same.
Event for Mongolian delegation didn’t become an exception. First, the Minister of Economy and Antitrust Policy Temir Sariev spent much time to explain why it is important to cooperate. Then he put emphasis on similarities of fraternal peoples as well as on internal and external likeness. In the end he expressed a hope that the world would speak about Kyrgyzstan and Mongolia as invaders of the world market not only as capturers of new lands during times of Great Genghis Khan.
Russian language could not have come at a better time. The event was conducted on Russian, the official language of the republic, which is the second native language for fraternal peoples of Mongolia. Many of them studied in the USSR and even in Kirghizia therefore they speak Russian fluently. Organizers didn’t forget to say that bilingualism is sealed by our Constitution.
I love myself for everything
Then a universal presentation took place which provided potential investors and partners with common information about the country which could be found easily in Internet: geographic location, GDP, and inflation. It can be presented without any changes at any business-forum. But what is the reason to spend precious time repeating the same well-known for everyone? Our businessmen know this very well while foreigners are interested in concrete projects and conditions but the main thing for them is guarantees of investments and property security. But it is not considered respectable to pinpoint state guarantees of investments in the country where nationalization won as well as don't mention rope in the house of a hanged man.
Meanwhile ministers and their assistants speak fine words that Kyrgyzstan will be Eden for investors soon, the republic rolls down in the International Index of Economic Freedom. Thus, Kyrgyzstan slid to 88th rank out of 179 possible losing 5 points as of January 2012. Of course this is better than 124th rank of Moldova, 144th rank of Russia and 153rd rank of Belarus but there are plenty good examples like Kazakhstan (65th rank), Lithuania (23rd) and Estonia (16th).
Experts explain this downfall by significant losses in terms of ownership, government expenditures and freedom of doing business. Political unrest caused instability and uncertainty which slowed down economic development of the country.
“My will of the head of the state will be enough to give security to investors,” the President Almazbek Atambayev said during his visit to Istanbul. In these latter days, authorities show their desire to improve business environment. Law improvements in tax system, mining and reducing number of inspection authorities are welcomed by business circles. But fear to lose business is still strong. After 42 interim government’s decrees on nationalization passed with direct participation of Almazbek Atambayev investors can hardly believe him. 47 private facilities were transferred into ownership of the state out of court and investigation.
Foreign businessmen are attracted by the lowest taxes in Central Asia, cheap electricity and man power. There is something Kyrgyzstan is proud of. If average salary in Russia is close in $700 and in Kazakhstan it is $500 then people agree to get $200 in Kyrgyzstan. However, the Ministry of Economy and Antitrust Policy assures that market culture together with literacy improve in the republic.
Multivector in Kyrgyz way
Probably, multivector in Kyrgyz way is while smiling at someone keeping in mind to bow before others. Wishing to be members of the Customs Union and declaring strategic partnership with Russia the country hasn’t held any forum to attract Russian investors. Authorities don’t feel shy when promising projects in energy sector to both Russia and Turkey. They are so eager to fall between two, three, four stools! But, alas…
“Kyrgyz multivector model has the most significant defect. To be multivector it needs to be interesting for potential partners,” REGNUM News Agency quoted international expert on transport issues Kubat Rakhimov as saying.
“I promise, I swear that I will do all my best”
Despite ardent desire to get foreign capitals gold rivers don’t flood the republic. Potential investors see very well what is destiny of companies who have risked doing business in the republic.
“Businessmen fear corruption and instability in Kyrgyzstan,” the governor of Bursa Province, Shahabettin Harpu, said openly at the Kygryz-Turkish Forum for Trade and Investments. “We are glad to know that some measures against this are taken but it is necessary to make laws working. Businessmen are interested in cooperation but it is important for them to know what risks are.”
“Kyrgyzstan greets Russian capital but money extortion continues on the part of state agencies,” the Russian Ambassador Valentin Vlasov said at the meeting with vice Prime Minister Dzhoomart Otorbaev.
And this truth is thorn in the Cabinet’s side. It seems potential investors guess that they must be ready to execute state functions in Kyrgyzstan which could be financed by the state budget just because “we don’t have means while they have”.
“The country has the most liberal tax and customs legislation. To improve investment climate we promote a complex of reforms aimed at forming favorable business environment, we eradicate administrative hurdles in sphere of investments,” Temir Sariev alluringly told Mongolian delegation.
“The Government of Kyrgyzstan showed it has turned its face to business,” he said at the Kyrgyz-Kazakh business-forum.
And I am so eager to believe the Minister. His initiative to impose excess profit tax for mining companies and offer to Kumtor to construct meat, vegetables, and fruits processing plant as well as Kentor Gold Australian Company which invested $41 million in gold deposit but failed to start up remain outside halls where business forums are being conducted.
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