Government and big business must enter into a social contract with the public

At a briefing at the Service of Central Communications, the Chairman of the Board of  NCE RK "Atameken" described in detail his vision of what obligations should take the state and business, to soften the position of the population in the new economic realities.

"You read, perhaps the media. For each inflation targeting there is torpedo information. The headlines are full of info "WKO Akim walked through the bazaar", "Akim of SKO inspected prices", "Almaty Mayor walked through Green bazaar", "Zhas Otan is inspecting shops". What is your attitude to it? Is it correct to control market economy? "- a well-known blogger Galym Baytuk asked the Chairman of NCE "Atameken".

The second question of the blogger was: "Mr. Kelimbetov advised citizens to learn to live within the means. I have a neighbor, a teacher, she receives a salary of 50 thousand. Every Sunday, she buys a cake. Now she won’t be buying it, because she listened to the advice of Kelimbetov. What are your tips to the population? How to live? "- He succinctly described the concerns of the people.

Ablay Myrzakhmetov answered honestly that rising prices for imported goods can not be avoided, since they are tied to the currency. Chairman of the Board of NCE also spoke about the different methods of control, so that businesses do not abuse their desire to make profit on ordinary people.

"How do we try to solve this issue each time? The first thing that comes to mind, it is an approved mechanism of administrative control, when Akims visit bazaars. During each currency fluctuation we can see it. At first sight, it is justified, in order to eliminate the speculative mood. It exists – as people want to earn. But I think we have to systematically subsidize socially targeted assistance. That is, it is necessary to subsidize those industries which are involved in the formation of the food basket. Stabilization Fund - is also one of the methods. They are formed every year, from the local budgets and from 500 to several billion tenge is spent on the Stabilization Fund. And now the situation will show how they work. This is also one of the measures of how to bring prices down", - he said.

"We need to move to market-based measures. And even more - to apply targeted subsidies for socially vulnerable population. It would be more fair and understandable than trying to restrain prices by administrative means ", - said the head of NCE.

He also noted that the Chairman of the Board of the National Bank Kairat Kelimbetov said that there is nothing wrong with "living within the means".

"But I understand your irony. Council of the population is as follows: it is necessary to tighten the belts, it is inevitable. It is to engage in populism now. But the next month, we should adopt a package of reforms, and clearly say to the population: what we will seek to improve the situation. In particular, to reduce the government stake in the economy, reducing inefficient public spending, reduce the level of corruption and barriers that hinder business development ", - said Ablay Myrzakhmetov.

"If 50% of GDP will form small and medium-sized businesses, in our country will be more economically active population, which will support itself. And not, as it is now: big mining companies or self-employed. The self-employed have to engage in the business as much as possible, to create a simplified system of taxation. Taxes should be reduced, and even through the universal declaration of everyone will be able to do business, create an entity without any special registration, but in the personal declaration to declare the revenues and expenses. We must move on to this. And the main conditions - low taxes and the availability of cheap credit in tenge", - added the chairman of NCE RK.

According to Ablay Myrzakhmetov, "the state should enter into a social contract with the population".

"When this program is ready, we must clearly say that for three years or five years, we undertake such commitments to monitor annually their implementation. It is necessary to involve the Parliament and non-governmental sector. Every year we cannot "step on the same rake". We must consistently perform well this program of reforms and provide the opportunity to develop small and medium businesses. There are all the conditions for that in Kazakhstan. And people will feel it. Then we can say: "Tighten the belt today, but tomorrow you will get an environment of development. This is the normal social contract", - he explained.

"Now the Government says about public contracts. I stand for it as well. Mr. Mashkevich spoke, said he is ready for such a public contract. But if we give all companies-subsoil users discounts on rail fares, electricity, subsidies to reduce the severance tax, that, accordingly, they, too, need to take to the community public commitments that will retain jobs, establish indexation of wages, social spending, it will develop a company and help to support small and medium businesses around the businesses. We have come to a point where there is no other way. There should be a responsibility of the elites to society", - concluded Ablay Myrzakhmetov.