The main thing is consistency

February 26. Kazpravda

By Doszhan NURGALIEV

The main thing is consistencyThe draft comprehensive action plan to improve the indicators of “Doing Business” rating of the World Bank in 2014 was considered at the Cabinet’s meeting chaired by Prime Minister Serik Akhmetov. It is assumed that the rating will simplify the identification and analysis of existing administrative barriers to business and help take the necessary measures to remove them.

Minister of Regional Development Bolat Zhamishev presented the keynote report on the issue. According to him, the proposed action plan divides each indicator into business processes with incremental steps to improve them. In total there are 46 actions on 11 indicators.

In addition, there is a list of 19 regulations in the document which provides changes to implement the plan. In particular, the relevant amendments will be introduced in 5 codes, 3 laws and 11 law regulations.

– These changes will simplify and in some cases eliminate a number of procedures in the environmental, sanitary-epidemiological and energy sectors, said the minister.

In the World Bank ranking of Doing Business Kazakhstan is in the 50th position among 189 countries. At the same time on such indicators as international trade (186th place), obtaining construction permits (145th), connection to grids (86th), taking loans ( 89th ), the situation leaves much to be desired.

The Minister stressed that the World Bank in assessing the indicator “International trade” takes into account the time and costs spent by the participants of foreign economic activity on such procedures as document preparation, customs clearance and technical control, terminal handling of cargo and conditions of their transport.

To improve this indicator it is necessary to further reduce the number of documents, including invoices for transportation and terminal handling of goods. In particular, it is proposed to reduce two documents reflected in the World Bank report. In the report of this international institute of development for 2013, 10 documents are required for export and 12 for import. Thereby the above measure will bring the number of documents for export and import to 8 and 10 respectively.

To reduce the cost of participants of foreign economic activity it is envisaged to lower the coefficients on tariffs for transit of goods, to introduce advance information system on the movement of containerized cargo, as well as develop the infrastructure of rail crossings. As part of this work it is necessary to achieve consensus with the Chinese side on the application of uniform tariffs for rail transport operations from the port of Lianyungang in China to Kazakhstan. In order to provide a legal framework for the introduction of electronic declaration and use of electronic documents in the field of export-import operations, the corresponding changes will be made in the legislations of the country.

As for quicker connection of business objects to the power supply system, the drafters propose to improve the situation by reducing the time for issuing permits from 7 to 4 days, as well as through a number of other optimization measures. Also to improve conditions for access of business to credit resources it is offered to reduce the banks’ requirements to collateral contracts.

Concluding his speech, Bolat Zhamishev said that they will inform the World Bank’s experts on the results of reforms that have been already carried out, but not included in the rating in 2013.

Minister of Economy and Budget Planning Erbolat Dossaev, chairman of the Committee for Construction, Housing and Utilities Serik Nokin and representative of the World Bank in Kazakhstan Sebnem Akkaya taking part in the discussion made their presentations on the topics of the agenda.

To improve Kazakhstan’s position in the international ranking of World Bank in the complex of all measures, RK Government will conduct appropriate outreach among participants of foreign economic activity on the reforms in the field of international trade. In addition, the WB experts will organize consultations to clarify the requirements stipulated by the legislation of RK in the field of international trade. As the Finance Minister Bakhyt Sultanov noted in this regard, in practice it turns out that not all participants are aware of the already made changes in the law.

Summing up the meeting, Prime Minister Serik Akhmetov stressed:

– It is important at the legislative level to make changes that will improve the indicators on support and ease of doing business in Kazakhstan. In essence, the fundamental question is not in figures, but in trends and systematic work to improve conditions and business climate in the country, including through providing access to credit for entrepreneurs.

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