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

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 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.....

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

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) th column: Labor market productivity Firing and dismissal practice Costs related to dismissal (accurate data) Salary and productivity th column: Degree of financial market development Legal rights index (accurate data) 2547 Competitive advantage

Column 1: Institutes Ethical behavior of companies Transparency of decision-making processes in government bodies Protection of minority shareholders’ rights Independence of judicial power Effectiveness of corporate governance Waste of public funds Level of the audit and reporting standards Rights to immovable property Burden of government resolutions Reliability of militia personnel Efficiency of legal regime Organized crime Favoritism in decisions made by civil servants Entrepreneurial terrorism costs Political trust of public Versatility of public foundations Protection of intellectual property rights 103

Column 2: Infrastructure Developed port infrastructure Developed air infrastructure Availability of seats for passengers Degree of development of all infrastructure Quality of highways Quality of electricity supply Telecommunications Degree of development of highway infrastructure 65

Column 3: Macroeconomic stability Interest rates on population’s savings Dissemination of interest rates Public debt Surplus/ deficit of the state budget Inflation77

Column 5: Higher education and training Volume of training for staff Accessibility of local specialized, research and training services Quality of institutions providing management education Access to Internet at schools Level of mathematics and science Educational system quality Enrollment of students to secondary schools (accurate data) 68

Column 6: Commodity market productivity Level of domestic competition Spreading of trade barriers Agricultural policy costs Anti-monopoly policy efficiency Impact of FDI rules on business development Number of companies with a leading position in the market Volume and effectiveness of taxation Level of foreign share in property Level of buyer/consumer Burden of customs procedures Overall tax rate (accurate data) Level of consumer orientation 91

Column 7: Labor market productivity Reliability of professional management Brain drain Costs per employee except for salary (accurate data) Flexibility when determining salaries Complexity of work (accurate data) Participation of women in the labor market (accurate data) 59

Column 8: Degree of financial market development Sustainability of banks Regulation of foreign currency exchange security Level of financial market development Financing through domestic stock market Accessibility of venture capital Access to financing Limitation of capital flows 83

Column 9: Technological readiness Accessibility of latest technologies FDI and technology transfer Use of technology at a company level Laws on ICT User of mobile communication (accurate data) Personal computers Internet users (accurate data) 99

Column 10: Market volume Indicator of domestic market volume (accurate data) Indicator of external market volume (accurate data) 116

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 future Advisory councilsAnnual recommendations under ministries of the IBC/UEK under ministries of the IBC/UEK Presentations for concerned individuals