21.12.2009

Hard times for trade

By Telman MEDEU-ULY

It is the West where everything is for sale,

But here everything is already bought out

Sapa Mekebayev

Trade hardly can be called a locomotive of Kazakhstani economics, because main money in the country is from oil and metals. However, trade is a back bone of social well-being, because 25 to 28 per cent of economically active population, by analysts’ estimate, is engaged in it. Nowadays the trade sphere suffers hard times.

2009 12 21

Foto: Telman ISMAILOV and ravvin

On First Congress of trade enterprises of Kazakhstan following figures were read out aloud: to open new shop near household it is needed to pass through 14 stages, which are including 68 actions. That reason requires from 814 to 840 days and 900 grand of tenge (it is stranded cost). 431 documents are required, of which 144 are scripts. It is necessary to visit 37 organizations for 157 times; of which public service centers (PSC) – 6 times, Ministry of Emergency Situations department – 9 times, State Architectural and Construction Supervisory – for 12 times. The same situation is with barbershop or service station. Special companies can help to pass through all these procedures for “only” six month, but it will cost 3 million tenge already.

Those figures are simply killing by themselves. If to look to Peru, which is comparable to Kazakhstan by a number of development parameters, then there entrepreneurs were complained to the state that opening of a shop takes 60 days. The government made advances and cut procedures by minimum. Now only two days are required for businessmen. Kazakhstani commerce would breathe freely even in case if here bad term by Peruvian measures – 60 days – would be implemented.

Traditionally, the main drawbacks of the way to trade development were and are imperfect legislation and eternally hungry authorities. The last mentioned are astounding with creativeness and disingenuity in terms of fishing out different resources from business. Present economical crisis added new features to it such as falling of solvent demand. During 2009 decrease of population demand will compose $4-5 billion, or 25-30%. If number of working places in trade will decrease in trade by the same amount, then this figure is simply frightening.

Problems with bank lending brought to light one more Achilles’ heel of Kazakhstani economics – high debts pressure. It contains 128% for the trade, in industry this indicator is 72%, in agriculture – 50%. In December of 2009, 65% of trade entrepreneurs met problems of deficit of circulating funds. As the result, difficulties with assortment of goods are increasing. More than 35% of trade enterprises met problems of goods delivery interruption, which is witnessing weak infrastructure and organization of goods supplement.

By estimates of macro-economical scenario for 2009—2010, made by Zertteu DC Group research institute, misfortunes of trade during next year are expressively would not end. There are three scenarios in total (basic, optimistic and pessimistic), however, all three are supposing that physical volumes of trade will be decreasing. Start of Customs Union activity will lead to increase of customs fees for wide assortment of goods.

Concerning question of legislative regulations of retail business, then on the present moment there are more than 100 of regulatory legal acts. At that, from 36 enactments of “About regulation of trade activity” legal act, 17 have reference type. Representatives of trade business, while meeting representatives of the government on various congresses, round tables and meeting, are insisting that legal acts must be direct action ones, to prevent parasitic models to deprive money from entrepreneurs and consumers. The number of procedures is too must be decreased. Meanwhile, the economical situation is worsening, but corruption growth isn’t decreasing.

There is no order even in more particular questions. The example is situation with one-time ticket to conduct trade on market places. For the information: only in Northern Kazakhstan district these tickets sold for 30 million tenge per month, of which 14 million goes to budget, and destiny of 16 million remains unknown for non-initiated. Also, more than 50% of the republic’s commodity circulation is due to Almaty and Astana, which leads to substantial disproportions in the sphere.

The problem of state regulations of internal trade is that the policy of the state is limited exclusively by administrative measures of prohibition and limitations; whereas clear position is needed by direction of development of internal trade and conformed trade policy. In structure of Kazakhstani government there is even no such post as minister of trade, a person who exclusively can be engaged only in this issue.

In Kazakhstan an economics of oil dollars disbursement is only established. Hypertrophied trade sphere is exactly belonging to this feature. However, trade is nervously responding not only on crude dollar flows decrease, but on new players too, which are threatening to break established structuring and “ecological” balance. For instance, Zhybek Zholy marketplace near Almaty, which is belonging to Eurasian Industry Association, was sold to Telman Ismailov, former owner of Cherkizovsky marketplace in Moscow. Lessees of Zhybek Zholy asking the government to nationalize this marketplace to “prevent present owners taking all criminals here, which is appeared outside of Russia”. That was the expression of members of “Protect home marketplaces” social campaign on press-conference in Almaty.

Zhybek Zholy marketplace profile is automotive parts sales. There are 2000 men working on its territory. Recently men came, one of which introduced himself as new director of the marketplace and Telman Ismailov’s nephew. Automotive parts salesmen received the notification, that after 31 of December, when their tenancies are ending, it will not be prolonged.

The marketplace is being prepared to reprofiling. Generally the main profile of activity for Cherkizovsky marketplace is apparel. Dmitriy Belousov, lessee of Zhybek Zholy, reported about scheme of actions of Mr. Ismailov in Moscow on press-conference. Rental payments are increasing; local sellers are pressing out and replaced with more complaisant immigrants from China and Vietnam. As the result, when Russian authorities started to liquidate the biggest marketplace in the world, there were more than hundred thousand of immigrants participated in protest action. Embassies of the immigrants’ countries of origin have been supporting them too.

f Cherkizon (settled slang name of Cherkizovsky marketplace) would reborn in Karasay district, then Kazakhstan can expect flow of immigrants, illegal traffic and revitalization of criminal elements. The owners of Cherkizon are powerful organization in any respect. For that reason they will took profits outside of the country, because here there are no guarantees of ownership for them. Finally: working places for foreign citizens, goods are Chinese, and profit is taken abroad.

The authorities, namely mayor office of Karasay district, reacted on request of disturbed sellers by arresting one of activists of “Protect homeland marketplaces”. After such reaction of local authorities on problems of lessees, traders started to seek for new workplaces. To enter on already functioning marketplace unofficial payment is about $10, 000. There are other payments, for which sellers can’t get checks. These are the orders virtually on every market of Almaty. Because of that, trade volumes on Zhybek Zholy market have substantially decreased. Kenzhekhan marketplace, where trading place worth $5 thousand earlier, now increased the payment until $10-15 grand. The director of Bereke marketplace, which called for sellers to him and promised that they will not pay anything for threee month, after two days stated that there is no places at all.

For the last fifteen years we are speaking about the same thing: administrative barriers, disorder with financing, omnivorous corruption. For fifteen years we are plowing a sand” – that’s how Victor Yambayev, the president of Almaty Association of Entrepreneurs, commented everyday life of our trade.

9 comments

  1. Anonymous

    Один Тельман написал про другого Тельмана. но сдается, что тот Тельман (который с пейсатыми) по- круче нашего Тельмана будет...

  2. Anonymous

    Сукалар... Блядтар... Иттер...

  3. Anonymous

    Вот хачей точно не надо

  4. Anonymous

    How can you really call marketplace a trade? It's now a trade

  5. Anonymous

    Беттер весьма недурственен. Вроде истории еще нет у сайта, а уже есть залежи мысли...

  6. Anonymous

    ...Мысли ли?

  7. Anonymous

    Ну, со Старым и Мудрым Новым Годом?

  8. Qazaq

    no cherkizon and no flow of hachiks to KZ!

    stay in russia!

  9. Gazag

    Хуй вам курды, а не наш базар!!! Вырежем нах