The national chamber of entrepreneurs of the Republic of Kazakhstan "Atameken"
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Programs in villages "suffer" ineffective allocation of funds

08 August 2017

Duplication of rural education programs - ineffective allocation of funds

On 8th of August the Chairman of the Board of NCE RK "Atameken" Ablay Myrzakhmetov at a meeting of the Government of the RK under the chairmanship of Prime Minister of the Republic of Kazakhstan Bakytzhan Sagintayev voiced problems and gave suggestions on improving the work on the project of teaching entrepreneurship "Bastau Business" and the Program for the Development of Productive Employment and Mass Entrepreneurship.

"Since the start of project financing, serious barriers have been identified, first of all, this is the low availability of financial resources", - Ablay Myrzakhmetov emphasized.

The revision of all training programs for rural residents is offered by the National Council. For example, in addition to Bastau Business, in the same areas, additional programs are available, such as the Express Course "Business Adviser" (BRM-2020), the course "Basics of Entrepreneurship" (the first direction of the Program for the Development of Productive Employment and Mass Entrepreneurship) and training on Bases of business at the expense of local budgets.

"The existence of so many programs duplicating each other is an inefficient expenditure of budgetary funds, in the absence of control over the quality of training. We propose to leave a single program of training in the countryside - the Bastau Business project, because at the moment it is the most demanded", - the speaker believes.

blay Myrzakhmetov suggested to leave training exclusively for Bastau Business in 80 districts in 2017, and in all 160 districts from 2018 to 2021.

"The funds under the Program for the Development of Productive Employment and Mass Entrepreneurship are sufficient to finance no more than 1,200 business projects, although the target figure is 3000. Therefore, Atameken with the Agricultural Financial Support Fund (FFPA) is forced to seek additional sources of funding outside the Program. (...)

In addition, there is a "disbalance": if funds are sufficient in 10 regions, then it is necessary to allocate additional amounts for 4 regions (Akmola, Atyrau, West Kazakhstan, Pavlodar regions). At the moment, there is a concrete agreement with the leadership of the FPFA to allocate these funds solely to microcrediting business projects within the framework of Bastau Business", - the Chairman of the Board specified.

Reinvestment is a compelling measure, the speaker added. In fact, the participants of "Bastau Business" microcredits will have a maximum term of not 7 years, as it was declared in the Program, but only for 3 years.

We add that up to 80 percent of business projects belong to the sphere of agro-industrial complex. As practice shows, most agricultural business projects have a much longer payback period than other projects.

In addition, Atameken, together with interested ministries, prepares a package of changes and additions to this Program. "The experience of the current year shows that the funds allocated are insufficient, so it is important to decide on increasing the amount of funding for the Program in the years to come", - Ablay Myrzakhmetov said.

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