5 Key Steps to Affordable Finances
It is necessary to reduce ineffective measures of state support with low coverage
Good opportunities for business are opened by the development of public-private partnership. At the initiative of Atameken, an agreement was reached on long-term state order of PPP projects, procedures were dramatically simplified, compensation for exchange rate fluctuations was provided, and a proposal to replace the concept with a business plan was supported.
Public-private partnership - legally formalized for a certain period and based on the pooling of resources, risk sharing, partner's cooperation on the one hand and the private partner on the other hand.
The goal is to attract private investments into the economy, to ensure the availability and quality of goods, works and services.
Even in his address, the Head of State commissioned the creation of an Export Policy Council under the Government, representatives of business communities were to enter it. The task is to ensure the protection and promotion of national economic interests in the framework of international cooperation.
Having interviewed businessmen, Atameken gathered opinions of industry entrepreneurs and identified 5 areas that they consider important for achieving the goal and improving the business environment:
- Macroeconomic stability (progressive development of the economy ensuring sustainable economic growth with a stable price level and low unemployment is realized by the state to create conditions favorable for investments and savings);
- Reduction of the state's share in the economy (strengthening of market institutions, development of free competition and stimulation of private business initiative);
- Gradual transition to horizontal measures of state support (gradual reduction of ineffective measures of state support with low coverage);
- Business-oriented regulation (reduction of control and supervisory functions, number of requirements, inspections, reduction of the number of state bodies);
- Increase the competitiveness of the enterprise (increase of competencies and training, modernization of enterprises through technology transfer).
At the IV Congress, the Head of the Board of NCE RK "Atameken" Ablay Myrzakhmetov touched upon the issue of a gradual transition to "horizontal" measures of state support.
"To achieve sustainable long-term economic growth, the emphasis should be on creating the most favorable conditions for SMEs. Systemic problems with access to finance, high costs in a number of industries made the state to subsidize business.
In 2016, more than 400 billion tenge was allocated from the state budget for subsidies.
As it is known, subsidies for BRM-2020 and subsidies to the agro-industrial complex are the main ones for business. Coverage is small and these support measures are not used by all SMEs, which today are about 1.2 million", - Ablay Myrzakhmetov said.
Within the framework of already existing programs, it is possible to significantly expand the inclusiveness of state support measures, redistributing budget funds between separate directions.
For example, in the framework of BRM, the construction of infrastructure to one facility can significantly limit the ability to subsidize dozens of enterprises. Targeted support should focus on measures of competitiveness programs in priority sectors in exchange for counter demands for technological modernization.
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