1. 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 Asylbekov IBC

2. 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

3. 1. Process for identification of the private sector needs 2. Direct issues of the private sector

4. Who is the beneficiary of the conducted reforms? Individuals authorized to take decisions Issues raised by business associations Issues raised by individual entrepreneurs Issues raised by international development partners Issues raised by public associations Issues raised by ministries and agencies Issues raised by independent experts Issues raised by political figures Issues raised by.....

5. 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

9. 4-th column: Health and primary education HIV incidence rate (accurate data) 25 5-the column: Higher education and training Admission of students to HEIs (accurate data) 46 6-th column: Commodity market productivity Time required for business start-up (accurate data) Number of procedures required to start-up business (accurate data) Average tariff rate for trade (accurate data) 353743 7-th column: Labor market productivity Firing and dismissal practice Costs related to dismissal (accurate data) Salary and productivity 102734 8-th column: Degree of financial market development Legal rights index (accurate data) 2547 Competitive advantage

10. Column 1: Institutes 01.15 Ethical behavior of companies 130 01.10 Transparency of decision-making processes in government bodies 125 01.18 Protection of minority shareholders’ rights 124 01.05 Independence of judicial power 124 01.17 Effectiveness of corporate governance 124 01.07 Waste of public funds 123 01.16 Level of the audit and reporting standards 122 01.01 Rights to immovable property 121 01.08 Burden of government resolutions 120 01.14 Reliability of militia personnel 117 01.09 Efficiency of legal regime 116 01.13 Organized crime 114 01.06 Favoritism in decisions made by civil servants 114 01.11 Entrepreneurial terrorism costs 110 01.04 Political trust of public 106 01.03 Versatility of public foundations 105 01.02 Protection of intellectual property rights 103

11. Column 2: Infrastructure 02.04 Developed port infrastructure 130 02.05 Developed air infrastructure 111 02.06 Availability of seats for passengers 108 02.01 Degree of development of all infrastructure 106 02.02 Quality of highways 104 02.07 Quality of electricity supply 96 02.08Telecommunications90 02.03 Degree of development of highway infrastructure 65

12. Column 3: Macroeconomic stability 03.02 Interest rates on population’s savings 125 03.04 Dissemination of interest rates 124 03.05 Public debt 106 03.01 Surplus/ deficit of the state budget 84 03.03Inflation77

13. Column 5: Higher education and training 05.08 Volume of training for staff 125 05.07 Accessibility of local specialized, research and training services 118 05.05 Quality of institutions providing management education 117 05.06 Access to Internet at schools 81 05.04 Level of mathematics and science 75 05.03 Educational system quality 72 05.01 Enrollment of students to secondary schools (accurate data) 68

14. Column 6: Commodity market productivity 06.01 Level of domestic competition 127 06.09 Spreading of trade barriers 126 06.08 Agricultural policy costs 126 06.03 Anti-monopoly policy efficiency 124 06.12 Impact of FDI rules on business development 121 06.02 Number of companies with a leading position in the market 118 06.04 Volume and effectiveness of taxation 116 06.11 Level of foreign share in property 113 06.15 Level of buyer/consumer 107 06.13 Burden of customs procedures 106 06.05 Overall tax rate (accurate data) 103 06.14 Level of consumer orientation 91

15. Column 7: Labor market productivity 07.08 Reliability of professional management 124 07.09 Brain drain 109 07.03 Costs per employee except for salary (accurate data) 94 07.02 Flexibility when determining salaries 68 07.04 Complexity of work (accurate data) 63 07.1007.1007.1007.10 Participation of women in the labor market (accurate data) 59

16. Column 8: Degree of financial market development 08.07 Sustainability of banks 127 08.08 Regulation of foreign currency exchange security 125 08.01 Level of financial market development 117 08.02 Financing through domestic stock market 107 08.04 Accessibility of venture capital 99 08.03 Access to financing 92 08.05 Limitation of capital flows 83

17. Column 9: Technological readiness 09.01 Accessibility of latest technologies 127 09.04 FDI and technology transfer 125 09.02 Use of technology at a company level 123 09.03 Laws on ICT 120 09.05 User of mobile communication (accurate data) 110 09.07 Personal computers 101 09.06 Internet users (accurate data) 99

18. Column 10: Market volume 10.01 Indicator of domestic market volume (accurate data) 117 10.02 Indicator of external market volume (accurate data) 116

19. 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

20. In the nearest future Advisory councilsAnnual recommendations under ministries of the IBC/UEK under ministries of the IBC/UEK Presentations for concerned individuals