Social Contract to be concluded by business associations and parties participating in the parliamentary elections

Representatives of business associations and eleven political parties participating in the upcoming parliamentary elections have decided to conclude a Social Contract on September 17, 2020.

The meeting participants discussed business proposals for the development of the private sector and entrepreneurship in Kyrgyzstan.

IBC Executive Director Askar Sydykov raised investment protection issues including building an independent and fair judiciary and further strengthening the private property protection.

The Contract includes the tasks of increasing the GDP, improving the indicators of the Kyrgyz Republic in the of Doing Business ranking, the Global Competitiveness Index, Corruption Perception Index, and others, as well as tax reform, pension reform and business licensing reform.

The Secretariat of the Business Development and Investment Council under the Government was one of the main initiators of the meeting.

After discussing business proposals for the development of the private sector and entrepreneurship in Kyrgyzstan, the meeting participants decided to sign the Social Contract.

Earlier this month, business associations sent their proposal to conclude such a contract to the political parties participating in the parliamentary elections to be held on October 4, 2020. The entrepreneurs called on the parties to focus on creating conditions for economic growth and social development, and the development of the private sector.

The state lacks systemic measures to support the private sector, entrepreneurs said. At the same time, the public administration sector is growing, and pressure from law enforcement and inspection bodies is increasing, which leads to the suppression of private initiative, a serious outflow of investments and a deterioration in Kyrgyzstan's performance in international rankings.

“Without a change in government policy towards the private sector, without systemic changes in public administration, the country will not achieve economic prosperity,” the business community concluded.

46 business associations and 11 political parties decided to sign the Social Contract.