Karim Masimov took main post in Kazakhstani government at the period when all country’s management had “hit the roof” from “colored freebie”. In august 2007 year crisis came along into the Republic but the Cabinet preferred to not pay attention to it for a long time. After that $19 billon of dollars were thrown in haste for struggling with the crisis. The effect was the same if they didn’t spend such amount. In other words the effectiveness was close to zero. Kazakhstan needs PM-ant to be able to laboriously and step-by-step work. Mr. Masimov stayed as a butterfly. He flies under the field of problems unable to change or correct something principally.
To be fair it should be said that he hasn’t been among founding fathers, which created this modern and extremely ineffective model of economical management. At 2009 10 28 Kar Masleast he wasn’t at the first row of the creators. On the other hand, the head of the government had found this model quite acceptable. Main point of the model is to throw out billion of US dollars for closing never-ending gaps in the system, without necessity to take responsibility for the results of usage colossal amounts from budget.
However this system can exist only with constant petrodollars inflow. When the prices on hydrocarbons and metals – main export raw materials of Kazakhstan – have fallen, this model of economical management lost the resource to continue its work through the time. The effectiveness is still zero, but there’s no money to make corrections in the functioning, at least to satisfactory grade.
As the matter of fact Prime-Minister Masimov is fertile in creative means. All programs and projects given by the government seem quite operable at the paper and in the light of economical thoughts canons. The stage of practical realization turns this operable quality into nothing. Fatal inoperability of the ministries and departments shocks even professional experts who had seen rough times. Discipline is unknown word for many officials. As the result, Prime-Minister flyblowing future butterflies, hoping that they will grow, pollinate the crops and be pleasant to the eye. But butterflies children are caterpillars, and have few chances to become butterflies. They won’t be pleasant to the eye but they eat anything with a envious appetite. Let’s remember that feed is not enough nowadays.
In light of crisis Karim Masimov has been awaited to give a positive impulse to small and medium size business (SME). New (only in words) Tax Code is designed for such goal. Practice showed zero result, nothing has changed. Medium size business is already lost for the country. Small scale business is in the death row; new Tax Code is not helpful but more poisoning. The system worked in a favour of large companies — subsurface users and monopolists; it is still working that way. The Head of the government didn’t even mention about VAT abolition and exchanging it into tax from retail sale.
Until Masimov premiership, SME also have had bad times. Yet common picture was encouraging. Petrodollars inflow stimulated final demand of population and small and medium size enterprises could make ends meet, defending from corruption and bureaucratic stone mills of state machinery. Nowadays feeding base of SME is broken, but there are not less hunters on them.
Paradoxes in government work can be met at any step. For example, government delegated struggle with the crisis completely to Samruk Kazyna, the National Wealth Fund. This governmental structure also has its strange characteristics, though against of Ministry Cabinet this fund shows us miracles of economical effectiveness and flexibility of management decisions.
It is a lot said about domestic economy diversification. As the result nothing was done even in “economical sectors natural” for the question. First of all it means oil processing and petro-chemistry. Kazakhstan has huge amount of raw materials for that, because it’s domestic. Never the less, percentage of domestic refining oil is keeping falling, but the amount of exported crude oil is keeping growing up. There’s no objective character at the process. Investors are ready to construct high technologies refineries in the republic, but they cannot pass throw the bureaucratic hurdles. Government must make comfortable environment for the investors, mustn’t it? As the result twice every year (in spring and autumn) the country has planned deficit of petroleum, oil and lubricants (POL) and prices rise on petrol and diesel fuel. Notably, it goes regardless world prices on “black gold” rising or falling at the time.
Agricultural sector is also under recession. Cereal-growers practically have no economical alternative to export the grain. Many grain elevators, grinding mills, grain-cars and other grain infrastructure facilities are just improper for exploitation. Non-oil and gas sector is having even greater recession than agricultural one. Thanks to official statistics people know that country still have non-oil and gas economical sector. Yet have.
Period of economical difficulties is objectively suitable moment to struggle with monopolists. These conditions are quite for PM–ant, who is able for systematic and step-by-step yard monopolists. Mr. Masimov occasionally can wipe the water when it is wet but he’s trying not to pay attention to the tap where water is extremely flowing. At this time situation demands to concentrate on tap exactly. Monopolists’ price sheet didn’t fall down in spite of social-economical crisis. Vice a verse, they are trying to get as much as possible, according to their prices dictate. They are not interested that prices on goods and services aren’t connected with medium wage rate economically. Agency on Competition Protection hides its head in the sand as ostrich usually does. There’s no way for doing something else, because Prime-Minister doesn’t give any warranty for protection and defense. When judge by their made decisions not by declarations, obviously the fact of Karim Masimov is playing for monopolists’ team and not against them.
Government cannot avoid its share of responsibility for social stability in the society. At this moment there’s a statement on 20% of growing wage rates for teachers and doctors are delayed from the 1st of January 2010 year to the 1st of July 2010 year. It means that $19 billions of dollars of budget funds went for feeding the bankers, raw material giants and building companies. There’s no money for ordinary state employees. State employees in social sphere were confused with this news though they have always been financed on leftovers. Government cannot defend them from monopolists or give them money instead too, because all resources are already spent on financial oligarchy. The circle is closed.
Meanwhile winter is coming. Big Kazakhstani cities are similar with its suburbs on Rio-de-Janeiro suburbs. Kazakhstani cities also have favellas but they haven’t the Brazilian warm climate. Kazakhstan needs in heating, warm outer and foot wear in winter. Organism needs more food in cold period. Winter is at hand but the butterfly is on premiership of the Republic. He should be changed to ant yesterday or even the day before yesterday, but personnel replacement is delaying every time. May be it’s in a view of all potential candidates are butterflies too.
BETTER.KZ
Experts of the Committee against Torture Commend Kazakhstan for Enhanced Legislation
Karim Masimov took main post in Kazakhstani government at the period when all country’s management had “hit the roof” from “colored freebie”. In august 2007 year crisis came along into the Republic but the Cabinet preferred to not pay attention to it for a long time. After that $19 billon of dollars were thrown in haste for struggling with the crisis. The effect was the same if they didn’t spend such amount. In other words the effectiveness was close to zero. Kazakhstan needs PM-ant to be able to laboriously and step-by-step work. Mr. Masimov stayed as a butterfly. He flies under the field of problems unable to change or correct something principally.
