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Khalitov: Cabinet shifts responsibility for economy onto private businessmen

«I don’t have optimism about the new post-crisis plan being developed by the Government,» Mikhail Khalitov, President of the Mountain Cluster Association, said to 24.kg news agency.

He added that the plan needs to be studied for its discussion, but the Cabinet of Ministers could not develop the first two.

«So what to expect from it in the third? The Deputy Prime Minister Erkin Asrandiev made a statement on the post-crisis plan in Parliament that it would be ready by the end of June. The logic is clear: deputies will leave for summer recess on July 1 that is why such a deadline is indicated. In fact, the official announced lack of control over the situation in the sectors of the economy and announced a competition of ideas among business and deputies for the best offer. But in this case, these are ideas of business, not government, why should they approve them?» Mikhail Khalitov asks.

The expert said that business cannot estimate its proposals on a national scale and economy as a system of production, distribution, redistribution, and consumption. «The business will hog the blanket,» he said.

Mikhail Khalitov asks what if the post-crisis plan is ready only by the end of June, when will it come into force? «If the Cabinet of Ministers timely gave the necessary instructions to the ministries and departments to work out together with business and society all the issues of the plan, for example, by May 31, then by the end of June, perhaps, a document agreed upon with interested parties would appear. And apparently, such work was not carried out. Everything will be thoughtlessly, non-publicly and without consensus,» he said.

The President of the Mountain Cluster Association noted that in no case one should replace a plan in the economy with a plan to support business.

Economy and business are not the same thing. The task of the state is to ensure a balance of interests between business and society.

Mikhail Khalitov

«Granting endless tax benefits to business means greatly limiting the social role of the state. Any measures to support the business should be reflected in the balance sheets of enterprises with positive indicators from the moment the measures take effect. If this is not the case, then the measure is ineffective. You cannot empirically calculate it, only by tracking real figures,» he explained.

The expert added that it was time for the government to stop replacing banking. All measures as of today are reduced to granting loans, which the business will have to repay in any case.

«The Cabinet does not invest anything in economic recovery, but passes bank loans off as measures, but expects to get something else. In fact, it shifts the responsibility for restoring the economy to the private sector,» he said.

According to Mikhail Khalitov, when developing a plan, it is necessary to go beyond the existing model of the economy, because it has exhausted its development potential. «If we can get out, we will not be limited to measures for the current model, then we can implement solutions for introducing a new model for Kyrgyzstan. And it provides for a new type of relationship in society. All this requires a legislative settlement. If the government gives birth to something by the end of June, then we will wait for return of the deputies from holidays, well, and there will be elections. The Cabinet wastefully approached development of measures in the economy. Therefore, there is no optimism,» he told.