Tuesday saw the monthly open meeting of the International Business Council, (IBC).  This onbe was sponsored by the OSCE, (Organization for Security and Cooperation in Europe), office in Bishkek and was entitled “Fighting Corruption: Importance of Preventive Measures”.

As well as opening speeches from the Chairman of IBC, the Ambassador of the OSCE to Kyrgyzstan and the Vice Speaker of the Jogorku Kenesh, (the parliament), there was a short film about how the topic was being tackled in Russia and Georgia, presentations by the General Secretary of the Anticorruption Business Council, one of the deputies from the parliament and the President of the Association of Suppliers of Kyrgyzstan, followed by a general discussion.

It is common here for eyes to turn to the regional superpower, Russia, to see how they tackle questions.  Apart from the years of domination from Moscow under Russian rule as part of the Tsarist Empire and seventy years of the Soviet Union, Moscow exercises a lot of influence over events in the region, both directly and indirectly.  The attention given to Georgia was interesting, however.  Judging from what I see and hear, there is a sense of infatuation with Georgia amongst some of the “free marketers” here in Kyrgyzstan.  Georgia is often quoted as an example when it comes to discussing the visa regime.  In this case, however, there is an interesting comparison in that when the two countries were first featured in the Transparency International Corruption Perception Index, in 2003, they both scored about the same response, but in the latest Index, Georgia had improved its rating by almost 100 place: It holds the 68th place in the rankings, similar to that of Italy, whereas Kyrgyzstan still languishes at 16thh (out of 178).

There has been a lot of attention over the years to the question of corruption in Kyrgyzstan, and the OSCE has hosted a number of initiatives to raise and tackle the issue.  In a way that is not surprising.  The perception is that Corruption is a part of everyday life in Kyrgyzstan, from the “bribes” paid to traffic police to overlook speeding offences to kickbacks when tendering for a contract and payments to officials in order to obtain licenses and other permissions.

Corruption, of course, is about a lot more than just the payment of bribes.  It covers all sorts of abuses of power like nepotism and raising false invoices as well.

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Several of the speakers pointed out that there are two ways of approaching the problem: Prevention and Punishment.  The stress of the meeting was on prevention rather than punishment.  As the OSCE ambassador put it, “prevention is more effective”.  The deputy commented that “punishment isn’t working, there have been practically no prosecutions for corruption”, and he said that only two cases had been pursued in recent time.  Even a Police Colonel, (I think he said he said he was a colonel), said that no-one believes that there is a fight against corruption in Kyrgyzstan.

It’s a bit like old adage about medical treatment: “Prevention is better than cure”.  It is preferable to avoid the problem than to have to take remedial action once it has occurred.

There were several suggestions of measures that could be implemented in order to deter corrupt practice ranging from setting up an anti corruption council to changing the system of account keeping and utilizing electronic submission of documents for things like customs clearance, (removing the human factor, the “chelovechiskiy factor”, by limiting contact between officials and business), thereby making certain procedures more transparent and automatic.

Having said that, it was also noted that punishment does have a role to play.  Part of the rationale behind any form of punishment is to exact retribution, but there is also an element of deterrence.  The threat of punishment can deter people from doing something.  That, of course relies on the risk of being caught being more than just incidental, and the cost of the punishment outweighing the benefits accrued from the action in the first place.  And there are obviously some benefits … as the Deputy Minister for Economic Regulation pointed out, businessmen go along with corrupt practices because it has some advantages for them.

As was pointed out by some of the speakers, apparently, the chance of discovery is not that great, and it is not clear that the Mikado’s formula of making “the punishment fit the crime” is working, either.

One of the successes of the recently introduced hot line at just two of the customs points, (at Manas Airport and the main border crossing with Kazakhstan), where people can report incidents is that it has led to 5 cases being opened and 4 dismissals of customs officials.

So far, according to the OSCE ambassador, despite all the reports and discussion, there seems to have been little progress made.   He asked how could progress be achieved and suggested two particular influences that needed to be brought to bear: Leadership and Peer Pressure.

Several speakers mentioned the need to instill a sense of ethical responsibility … it needs to be generally accepted amongst the population as a whole that it corruption is unacceptable. This means more than just lip service paid to the general principle, but a sea change in attitudes.   It needs, for example, to be seen as unacceptable to give a bribe as it is to accept one.

Legislation, rules and regulations may well act as a deterrent, but their effectiveness in tackling the problem are reliant upon detection and punishment, and there is always the If, on the other hand, it is generally acknowledged that certain things are “beyond the pale” and this is internalized and becomes a principle of doing business and conducting one’s life, then it is less likely to be breached.  This, however, will take time and relies on upbringing and education.  That’s where leadership, example and peer pressure  come in.

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All through the meeting, however, one thought kept occurring to me … in the meantime the answer may well be to, as in the slogan for the anti-drugs campaign, “Just say No”.

If only it were that simple.

Tuesday was the “Ides of March”.

The Romans had a very strange calendar until Caesar decided to reform it in 46BC, (adding 46 extra days in order to bring it back into line with the seasons on which it was supposed to be based, and causing chaos and disruption throughout the Roman world).  His reforms, however, didn’t stretch to the ancient division of the 30-day month by the kalends, nones and ides.

The kalends was the first day of the month, (probably, originally denoting the day of the new moon), and the ides were 13, (or 15 days in the case of March, May, July, and October), were probably originally associated with the full moon.  The nones were probably associated with the half moon phase in the lunar cycle and occurred nine days before the ides.  The other days in between had no special names and were designated by how many days it was to the next kalend, nones or ides.   For example, my birthday, March 8th, would have been called “VIII ides Martius”, (8-ides, or “seven days before the ides of March”).

I’m not sure which is the most confusing, the calendar itself, or the fact that it survived and was the official dating system throughout Europe for something like two thousand years.  Even though there was a more logical calendar in use in Shakespeare’s time, he could freely write “Beware the Ides of March” and expect his audience to understand the reference.

On his way the theater, Julius Caesar was supposed to have seen a seer who warned him that harm would befall him not later than the Ides of March and this incident was immortalized by William Shakespeare in his play named after the Roman oligarch when the seer intones: “Beware the ides of March”.  (This line has since passed into popular culture and is used to express a sense of foreboding, of some impending calamity, doom and destruction and it is even quoted by the likes of Lisa Simpson in order to admonish “Homer the Great”, as well as serving as the title for a Postcard from Bishkek.)

According to Plutarch, on the fateful day  in 44BC, Caesar heads off to a meeting of the Senate in the Theater of Pompeii and encountering the seer responds jokingly with: “Well, the Ides of March have come”, to which the seer in turn replied “Ay, they have come, but they are not gone.”  Julius continues on his way and arriving at the senate is stabbed to death, (23 times), by a band of some 60-odd conspirators.

The next day, had Julius lived to see it, would have been XVII Kalends Aprilis: the first day of Bacchanalia, the wild festival in honour of the Roman god Bacchus, (or his Greek equivalent, Dionysius).  Apparently, the festivities were so wild that the word has come to mean any form of drunken revelry.

Originally the festivities in the grove of Simila, (near one of the seven hills that the city encompassed), were attended only by women but the Roman menfolk were later admitted to the rites.  The Roman historian Livy tells us that in 186BC the Senate acted to prohibit the celebrations as they had become the center of a wide range of crimes and political intrigue.

I suppose that the conspiracy of Brutus,  Cassius and the others to assassinate their head of state was the sort of conspiracy that might have been blamed on the revelers if the Bacchanalia festivities had been permitted in 44BC.

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Well, we’ve had more than our fair share of seers predicting doom and destruction here in Kyrgyzstan this Spring.  It is said that Spring is the traditional time for protest and upheaval here in Kyrgyzstan and I suppose there is some evidence for this, even if such claims are based mainly on just the two revolutions that we have experienced in the last few years.

The incidents and movements that are rocking regimes from Tunisia and Egypt to Bahrain and Yemen are also signs of people power taking the streets are reminiscent of what we experienced last year, but they seem to be more protracted than our revolutions, which seemed to be over in the course of single day.

That’s not true, of course.  The events of March 24th, 2005 and April 7th, 2010, when the White House was stormed, were simply the culmination of events which took place over several days, weeks and even months.  In 2011, it didn’t even mark the conclusion of the revolution as the president, Kurmanbek Bakiev, fled the capital to his homeland in the south, which prolonged the dénouement of events.

If only it had been a one-day event, or even a nine day event, but then came the events in Maevka, Djalal Abad and Osh.

What’s more, the rumours and counter rumours of further unrest persist, suggesting that all is not over yet.  Some have come from commentators and pundits in the media: in the local press, the foreign press abroad and from those working for international organizations.  Others have simply circulated amongst the population as rumours.  Some, however, have even come from official circles.

I am not sure if Roza Otunbaeva was aware of the significance of the date when she chose, at a press conference on this day, to respond to challenges calling for an explanation of her remarks, which she made made a month ago, about the possible escalation of the situation in the country.   She said that she was particularly concerned about two areas in Kyrgyzstan: Uzgen and Karasuu.   She talked about “a big panic of ethnic Uzbeks, who fear that Kyrgyz will clash with them”, adding that the people are very aggressive in Uzgen and are ready to retaliate.  Another issue which was cause for concern was that of land distribution in the Osh region, where the number of applicants on the list had increased tenfold to 60,000 since the events of last June.  Land distribution was the crucial issue which sparked the deadly riots back in 1990!

Some of the predictions we have seen, like those of Cassandra, (predicting the fall of the ancient city of Troy), have foreseen nothing but gloom and dark days ahead.  The seer who forewarned Caesar, (unlike Cassandra), was rather vague in his warning giving Julius little idea of what to expect, but at least he gave something specific data: the date.  In contrast, the prognostications that we have been treated to have sometimes been specific in both detail and date, but, fortunately, most of them have proved to be unfounded.

I am tempted to say that these predictions have become so commonplace that it seems that they almost a part of everyday life.  As each date has approached, nervousness and tension have mounted, then it arrives … and then it has passed and, finally, we have been able to utter a sigh of relief as one more hurdle has been successfully negotiated and we are able to return to our normal everyday lives and concerns.

At the recent Open Meeting of the International Business Council, (IBC), one of the speakers treated us to a quotation from the American author Ursula LeGuin: “The only thing that makes life possible is permanent, intolerable uncertainty; not knowing what comes next.”  The speaker pointed out that, although for is some situations such tensions might be stimulating, when it comes to business and investment they are far from welcome.  Business and investment “prefer clarity and predictability”.

It’s not just business and investment that benefit from clarity and predictability.  Uncertainty is destructive in many aspects of life and, in some ways, almost as destructive as if the events that are prophesied were to actually take place.

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Fortunately, however, the Ides of March have come and gone for another year.  Nothing dreadful had been predicted for this auspicious date in this particular year … and, I am glad to be able to say, nothing more calamitous took place than a sudden drop in temperature and another fall of snow.

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The International Business Council, (IBC), is a business association, which was established in December 2000, whose membership includes a wide range of local and international businesses that have created thousands of jobs and have a combined investment of over one billion USD in the Kyrgyz economy.  The Celestial Mountains Tour Company was one of the original members, (in fact, the inaugural meeting was held in the Conference Room in our hotel in Bishkek, The Silk Road Lodge), and I have served several terms as a member of the Management Board of the IBC.

I should point out, however, that the following comments and observations, (barring the open letter itself), are my own.

As well as promoting the common interests of business investors and providing its members with relevant information and advice to support their business operations, IBC’s mission is to make the Kyrgyz Republic a more attractive investment location by promoting good business legislation and efficient business practices, working in partnership with the government of the Kyrgyz Republic and other local and foreign organizations. As such, it has established itself as one of the main voices of the business community in the Kyrgyz Republic – if not the main one.

To be fair, over the years it has sometimes been criticized as being the voice of foreign investors and of big business.  There may be some element of truth in this, in that it was originally established by some of the large foreign investors and amongst its membership it has some, but not all, of the largest companies operating in the republic.  However, it also includes, and actively recruits amongst, both smaller and local businesses.

IBC actively supports the process of economic reform in the country and tries to ensure that private sector investors are represented in Government policy activities. IBC representatives, for example, sit on many official bodies and working groups.  The Association also has a strong recognition amongst the International Finance Institutions, (IFIs), embassies, and the international donor community as a key player in the process of reform.

IBC supports the ten principles of the UN Global Compact, setting core values in the areas of human rights, labour standards, environment and anti-corruption. As an Association, IBC encourages its members to embrace, support and enact these principles within their sphere of influence.  It also works cooperatively with government and other local and international organizations to fight against corruption and to change laws and practice that impede social or economic justice.

Obviously, in order to achieve all of these aims, IBC has to maintain good relationships with the government – whatever government happens to be in place at any particular time, whilst maintaining its independence.  This hasn’t always been easy and although it may sometimes appear as if the government and IBC are working “hand in glove” with one another, there have been other times when the relationship has been more strained.

Sometimes, the strain on the relationship has arisen out of the fact that we are a membership organization and part of our role is to present to the government the concerns of our members.

Recently there have been a number of  issues that are affecting our members, (some more directly than others), and we were asked to address some of these issues and decided to publish an open letter to the government, addressed to the President, Prime Minister and the Speaker of the Jogorku Kenesh, (the Parliament).

To be fair, members of the government say many things which seem designed to convey positive messages and address many of the issues being raised by the business community.  They are concerned about the development of the economy and stress the importance of business for the country.  They want to bring about improved living conditions and raise the quality of life and standard of living for the population.  Unfortunately, however, the way that events have unfolded has not always supported these positive statements and aspirations.  Indeed, there is a concern that many of the events that are happening in the country, are likely to deter, if not drive away, potential investment – whether it be from local or foreign investors.

What matters most, however, is not what is said, but what happens in reality.  It’s not a beauty contest and all the fine words need to be backed up by real measures, or else we do actually risk businesses deciding to shut up shop and leave, or simply not to decide not to come here.  Celestial Mountains may be “in for the long haul”, (after all, our business is trying to persuade people to come and experience the landscape, history and culture of the country), but that isn’t necessarily true for everyone.

It is easy to think that IBC is just protecting the interests of its members: those who have been nationalized, or have had their licenses revoked, or those who have been faced with changes in legislation, court cases or corruption, but it is wider than that.   We all need a thriving and growing economy in order to thrive and grow ourselves.  To attract business, clients or investors, we need to be able to point to a safe and secure situation within the country.  We need to show that we have the facilities and infrastructure of a modern state: banking and health services, transport services, communications and internet access, with a sound and predictable legal basis and system, an educated and willing workforce and a viable market for our products and services.  We need a business environment that allows business to operate, prosper and grow; that will attract and encourage investment; that will, in the long run, benefit the whole community.

Here’s what the open letter said:

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The International Business Council (IBC) wishes to convey concerns from its members regarding the state of the business environment in Kyrgyzstan.

The IBC unites more than 100 businesses, both local and foreign, operating in Kyrgyzstan and representing more than US$1 billion worth of investments in the country. Over more than years, cooperation between the business community represented by IBC and the Government has become stable in reaching mutual understanding of common purposes and tasks. The business community has always been the basis for raising and strengthening the economic independence of the country, and it is the key to Kyrgyzstan’s future prosperity and stability.

However, there seems to be a growing tendency in the country to disregard the property rights which serve as the basis of businesses. It occurs mainly due to the opaque policy pursued by the Government in respect of nationalization of various business entities. The business community has been excluded from the process of determining the destiny of the nationalized facilities, in which it has its own property. Meanwhile, in accordance with the laws of the Kyrgyz Republic and international agreements to which Kyrgyzstan is a signatory, the business community has a voice and right to protection.

Insecurity of private property rights in Kyrgyzstan was confirmed by various studies of independent international organizations. Kyrgyzstan holds 97^th place out of 125 countries on the IPRI index (International Property Rights Index) and got 25 points out of 100 points in the property rights protection according to the Heritage Foundation.

IBC believes that at present the country’s investment climate is becoming less conducive to attracting new investors. The investment climate has deteriorated sharply after the events of April 2010 and continues to deteriorate, primarily because of investors’ uncertainty that property rights are properly protected in Kyrgyzstan.

The massive investment outflow last year is not only the result of the April events, but also, to a far greater degree, the result of ill-conceived public policies in the area of investments and businesses. The lack of continuity of the government policies and lack of predictability and consistency of judicial decisions together with the “rich” legacy in the form of corruption cause investors’ uncertainty.  All this undermines investors’ confidence and affects the investment climate in the country, the replenishment of the state budget and creation of new jobs.

Currently, the program of nationalization initiated by the Interim Government has been delayed. We understand that this is a necessary measure aimed at establishing justice. Therefore, to avoid perception of corruption, it is important that the nationalization should be carried out transparently with the participation of civil society and business communities. Most importantly, it is needed to keep the rule of law in each case and protect property rights of honest investors.

With a budget deficit and far-reaching goals of the Government, it is unclear how the state budget could be replenished while the Government’s policy leads to “pushing away” investors. If the Government does not urgently take measures to improve the business environment, there is a great risk that the country will lose confidence of both local and foreign investors.

IBC asks to draw your attention to the above mentioned issues and provide immediate assistance in resolving them. In turn, IBC is ready to offer its ideas on creating a favorable investment climate in the country and keeping existing investments and attracting new investments to build an economically strong country with a good international image.

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For those who know Russian, you can find the Russian version here.

Yesterday, December 9th, was designated by the United Nations as “International Anti-corruption Day”, as long ago as in October, 2003, when it passed the United Nations Convention against Corruption. I don’t think it has been well advertised and, to be honest, I almost missed it this year.  The first I knew was when I saw a post on Twitter from one of the prominent younger Kyrgyz politicians, congratulating his “followers” on the occasion.  I have made sure to write it into next year’s diary already so that this doesn’t happen again. The convention was originally signed by 140 countries, (including Kyrgyzstan), and it has since been ratified by a total of 148 – which means that some others have also adopted it. – especially as some of the original signatories still haven’t, as far as I am aware, done so. It contains chapters with provisions on:

• the prevention of corruption, (with attention to the involvement of public and private sectors, non-government and community based organizations),
• the criminalization of corrupt practices, (requiring states to establish criminal and other offences to cover a wide range of acts of corruption, if these are not already crimes under domestic law, covering not only basic forms of corruption such as bribery and the embezzlement of public funds, but also trading in influence and the concealment and laundering of the proceeds of corruption.);
• International cooperation, (for example in the prevention, investigation, and the prosecution of offenders) and
• the recovery of assets, (which is, as the UN website points out, “a particularly important issue for many developing countries where high-level corruption has plundered the national wealth, and where resources are badly needed for reconstruction and the rehabilitation of societies under new governments”, such as the situation in which Kyrgyzstan finds itself following this year’s April Revolution) .

There are many definitions of the word “corruption”.  To many people, the word is synonymous with “bribery”, but in fact this is only one aspect of corruption.  Corruption can involves doing something, (or not doing something), with a view to private gain – especially using a public office to influence events in favour of one party in return for some advantage – not necessarily financial.

Corruption can take several forms, such as: the public official (traffic policeman, tax inspector, etc.) pretending to find an infringement of some rule (which is not necessarily that difficult given the way some laws and regulations are phrased) and then accepting a payment (bribe) to overlook the offence; or the public official expecting, (demanding), and accepting payment for signing a particular document (license, permission, etc.), or to decide a question in favour of the person making the payment; the official who uses information gathered in the course of his employment for other purposes; the official using the power and prestige of their office to obtain favours, property etc. that would not others be given to them … and so on.

There is a general impression that corruption is rife in Kyrgyzstan.  An article on the subject in one of the local (government), newspapers, (Slovo Kyrgyzstana – the Word of Kyrgyzstan), ran under the headline “When was the last time you took a bribe?, … or paid one?”  It has been said that court decisions can be bought, that official posts (tax and customs posts, even governors of oblasts) are “sold” by those in authority.  It was allegations such as these, amongst other things, which helped to bring the regime of President Akaev into disrepute and led to the Tulip Revolution which overthrew his government.

Every year since 1995, the organization Transparency International has conducted surveys to assess the extent of corruption around the world.  The Corruption Perception Index (CPI) is a benchmark which combines the results from a number of different surveys, (in 2010 there were 13 such components), to obtain a Index of how corrupt a country is perceived as being.  A score of 10 represents a “highly clean” society whereas a score of 0 indicates a highly corrupt one.  In some countries, it not possible to apply all the surveys and so a minimum of three is required for the country to be included in the annual survey’s published results.  For several years the Kyrgyz Republic were omitted from the table of rankings, but in 2005 the country occupied joint 130th place in the CPI with a “score” of 2.3, (on a basis of 5 surveys) along with Burundi, Cambodia, The Republic of Congo, Papua New Guinea and Venezuela.  Although this represented a slight improvement on the score obtained in 2004, (2.2), the country slipped from joint 122nd place in the overall table of rankings.

In this year’s survey Kyrgyzstan occupied the 164th place, out of 178 countries, (together with the Democratic Republic of Congo, Guinea and Venezuela), with an overall score of 2, (on a scale of 0 to 10).

This is almost the same as in previous years and shows that little seems to have changed over the years.

The report comments that: “With such level and volumes of corruption, Kyrgyzstan cannot progress, can make neither economic, nor scientific, nor technological, nor social breakthrough. Corruption, remaining as it is now, will continue eating up the resources that could be invested in the future of the country.”

There are other surveys and attempts to identify the scale of corruption in the country.  The Investment Round Table and other non-government organizations have organized various activities and surveys within the country.  A World Bank report issued in 2006 found that corruption had increased in the period 2002-2005.  About half the firms surveyed said that bribes were common.

Measures being undertaken to combat corruption – especially in public life.  Public officials – and members of their immediate family – have to report on the level and sources of their income.  Laws are in place under which officials who act inappropriately to their official duties can be prosecuted – and there have been a few high ranking cases such as that of Feliks Kulov, who was convicted and imprisoned for corruption but following the 2005 Tulip revolution, the conviction was quashed.

The general impression is, however, that low level employees are sometimes caught and prosecuted, whilst their high ranking superiors are rarely ever.  The local press does, however, sometimes reports cases being investigated and individuals either resigning or being dismissed.   Despite this, the emphasis seems to have been on establishing a legal framework rather than the implementation of measures to combat corruption.

In 2006 a new “coalition” against corruption was established by the government and a number of Associations have joined with it, committing themselves to providing information, running information and educational campaigns and other measures.

In its Mission Statement, the International Business Council, (IBC), states that it : “supports the ten principles of the UN Global Compact, setting core values in the areas of human rights, labour standards, environment and anti-corruption” and that it encourages members to embrace, support and enact these principles within their sphere of influence.

Yesterday, Roza Otunbaeva reaffirmed the government’s commitment to eliminating corruption in a video address to the participants of a round table discussion on monitoring the hot lines of government agencies.  She pointed out that  ”public supervisory boards” are being piloted in 10 government agencies, which will oversee work of agencies and how public funds are spent; that civil servants are now being hired only on a basis of open competition; that “lie detectors” are used in State Tax and Customs Services; some of the biggest companies – particularly in the energy sector – are being audited “for the first time”.

This caught me by surprise.

Although I was  aware that we grow a lot of apples here in Kyrgyzstan, I was intrigued as to why someone would want to travel all this way to see the orchards when we grow an awful lot of apples in the UK as well.  Indeed, in our garden we had four apple trees of different varieties, (two “eaters” and two “cookers”) which almost every year bowed on the weight of the plentiful fruit.  Many fell to the ground before we could get to pick them – and one of my regular jobs was to rake up the “windfalls” and sort them into ones that could be salvaged and others which were to be composted.

So I went off and did some research.

To my amazement I discovered some learned articles in a variety of journals that seemed to suggest that, although the apple was now found virtually throughout the world, it’s origins were thought to be deep in the Tien Shan mountains.  As it turns out, deep in the Kazakh Tien Shan, not the Kyrgyz part of the range – a little bit to the East of the modern republic.

The research seems to show that the modern apple evolved from seeds which had blown over the mountains from China many millions of years ago and then seeds were transported westwards over a period of time – naturally at first, (for example carried by migrating birds or simply blown by the wind), but in more recent times, (over the last 10,000 years),  with the assistance of human intervention.  Everywhere, the fruit proved to be a popular food and the cultivation of trees began with grafting and new hybrids were developed wherever mankind settled.

For the record: As it happens, it’s not just the apple that it thought to have originated in this area.  Central Asia turns out to have been a real melting pot in the world of flora.  Rhubarb and the tulip, for example, are also thought to have their origins here.  Surprisingly, the walnut, for which Kyrgyzstan is particularly well known as it hosts the world’s largest extant of wild walnut forests, probably didn’t originate here – but it probably the source of the European walnut.  Alexander the Great is supposed to have found the tree when he conquered the region and sent some back to Macedonia where it thrived.  Oddly enough, they are still known in Russian as Grecheskiy Orecky – Greek Nuts – which is the cause of a little annoyance locally.

Anyway, in Kyrgyzstan there are numerous varieties of apple – varying in shape, colour, size and sweetness.  For several years there has even been an Apple Festival organized by the Association of  Orchardists and the Gardens and Plastic project, (the first one being held in 2005, and it has been held annually, in October, ever since), to commemorate and market the fruit – giving people the opportunity to taste and purchase some of the wide variety of organically grown produce, products made from apples (and other food and beverages), as well as giving people the chance to have a good time.  The Festival has normally been held in the Issyk Kul region, but this it was held in Kochkor, in the Naryn oblast.

In fact, I hadn’t heard anything about this year’s festival – we received no leaflets or posters, unlike in previous years.  So the first I heard about this years’s event was when I received the latest issue of the IBC Monthly Newsletter, which included the following article:

Singing an ode to Kyrgyz apples

Communities of Issyk-Kul and Naryn oblasts and the “Nur-Omur”Association, with the support of Kompanion Financial Group,Mercy Corps and the Kochkor District Administration held the 5thAnnual Apple Festival on October 30, 2010 in the Kochkor villageof Naryn.

This year’s Apple Festival brought together about 400 people from 40 villagesof Naryn and Issyk-Kul regions to celebrate this year’s harvest. The day wasfilled with exciting contests and competitions for adults and children, humoroussketches and jokes, musical performances, as well as the traditional andthe most delicious part of the holiday – apple tasting and the display of originaldishes made with apples.

In addition, to further the development of organic horticultural practices andagricultural market linkages, event organizers facilitated round tables to providecommunity members an excellent opportunity to discuss and identify important ecological and economicissues at the local level for further joint development.”

The tradition of the Apple Festival was born in 2006. This year’s Apple Festival is held in the Naryn region forthe first time. Communities of Kochkor took the initiative to introduce gardening experience that serves as agood example for others, “- says Erkinbek Zhumabayev, Kompanion’s Chief Liaison Officer.

There was tough competition in the fight for the title of the “Biggest Apple.” A juicy fruit weighing 700 gramstook first place. Among the vegetables, the winners were: a 4 kg beet; a 12-pound pumpkin; and a huge potato,weighing 1.6 kg.

I am used to receiving announcements of different events just before, (say a day or two), before they are going to happen, but this time, the first I knew about it was three weeks after it had happened.

What a waste … I would have liked to have gone – and I can think of several others who might have enjoyed the day out as well.

These events are normally small scale – something approaching a village fete back in the UK, but they are fun all the same – they get me out of the office … and you never know quite what you might come across.  Last year, for example, at a similar festival I found several jams that I had never tried before – including Pine Cone Jam – a speciality of the Issyk Kul region.  It wasn’t bad … tasty and interesting.  (Nothing, incidentally like the Greek wine Retsina which is fermented in Pinewood barrels and often credited with tasting like disinfectant – which is a little unfair.  Although Retsina is not my favourite wine – and if there was a choice I would choose the alternative – it is not too bad.)

Unfortunately, this is not the first time that something like this has happened – that we have learned about an event only after it has happened.

Why does it happen? – because there is a tendency here to “do, nothing, do nothing, do nothing” – and then – “rush, rush, rush” as the appointed date becomes imminent.  I keep saying to people that if they want their events to be well attended then they need to market it – and if they want us to try and encourage tourists to attend, then we need to know about them well in advance … preferably a year in advance, so that we can include them in our planning and marketing and offer them to clients as part as part of their itinerary.

For example, the clients with whom I opened this postcard would have been delighted to have gone along.  When they came to Kyrgyzstan – it was the wrong week for the festival and although they saw lots of fruit orchards – especially apples -the trip wasn’t exactly what they had in mind.  It didn’t stop them, however, recommending a similar to some of their friends who also wanted to undertake a pilgrimage to the “home of the apple” this year.  However,  for various reasons – something to do with a revolution back in the Spring – that particular trip was restricted to Kazakhstan … although they say that they may come back to visit Kyrgyzstan next year.  Maybe, we’ll be able to arrange a trip to the festival for them if they do come.

Anyway, this year I missed the chance of weekend out.  What is really annoying, is that I passed through Kochkor that weekend – twice … on my way to Naryn, and back.  It would have been nice to have taken the opportunity to call in.

If only I had known!

A week ago, I received an invitation to the regular monthly Open Meeting of the International Business Council, (IBC).

Now, I get a lot of correspondence from IBC – after all, I serve on the Management Board, and have done so, (with two short interludes), ever since it’s inception in 2000.  That might change this month, because I am up for re-election and who knows what might happen.

Indeed, the inaugural meeting was held in the conference room at the Silk Road Lodge, but it soon became apparent that the conference room was too small to accommodate the numbers involved.  There aren’t that many of us left in Bishkek who attended that opening meeting, but despite the constant turnover of personnel, the organization has gone from strength to strength and is recognized as one of, if not the, leading voice of business in the Republic.

The regular monthly Open Meeting is just one of the activities it runs.  Normally it is a quiet affair … a couple of hours in which two or three speakers make a presentation introducing a topic followed by questions and answers and a general discussion.

Over the years, however, some of them have been notable …  it was one of the first public meetings at which members of the government(s) appeared after both the 2005 and 2010 revolutions; the Hyatt Hotel, the venue), was almost sealed off when the IBC meeting was the subject of a mass picket when it discussed the question of whether Kyrgyzstan should join the HIPC (Highly Indebted Poor Countries) programme; in 2004, the then Prime Minister chose a meeting of the IBC to announce a review of the Tax Code – which took some four years and numerous (I was tempted to say countless) drafts before it was completed … to nobody’s satisfaction.

When I first saw this notice I almost uttered two groans.  One because I saw that the number of speakers listed on the Agenda, (twelve, including two Ministers), and the other when I saw the topic … “Kyrgyzstan and the Customs Union”.  If there is one aspect of doing business in the Kyrgyz Republic about which I know very little, then “Customs” is probably it.

For the record: Kyrgyzstan joined the World Trade Organization, (WTO), in 1998 – the first of the former Soviet Republics to do so.  As a result it has adopted as fairly liberal trading regime - and, indeed, much of the country’s economy is based on trade.  There was an attempt to set up a Customs Union within the Commonwealth of Independent States that emerged after the collapse of the Soviet Union, which resulted in the formation of the Eurasian Economic Community, (EurAsEC), of states – including Kyrgyzstan – but this was not a formal Customs Union.  Uzbekistan also joined – but later suspended their membership.  There are three other “observer” states.

Eventually three of those countries, (Russia, Kazakhstan and Byelorussia), decided to establish a formal Customs Union which would harmonize a “common market” across all three states with common customs tariffs and procedures.   It came into effect on January 1st, 2010, when all tariffs between the three members were abolished.  The member countries thus opened their markets to each other, exposing domestic producers to more competition. Those countries with low customs duties, (like Kazakhstan), had to raise them, which led to price hikes on goods coming from outside of the union and created a tariff wall which impacted .  On the other hand, the producers in each country gained access to new markets in the other countries. In theory, the union also fosters investments between its members in sectors which involve moving raw materials across borders.

For other countries, like Kyrgyzstan, nothing in the system changed – except they faced higher tariffs when trading with Kazakhstan and Byelorussia, which meant their goods become more expensive and less attractive to consumers in those countries.  As a lot of Kyrgyz exports to these countries involve the re-export of goods made in China, or Chinese goods assembled in Kyrgyzstan, the higher tariffs have have had a dramatic effect on Kyrgyzstan’s role as a transit country – and thus hit the country’s economy hard … compounded by the fact that it coincided with a period when Kyrgyzstan faced a lot of other problems.

As a result there has been a debate in Kyrgyzstan about whether Kyrgyzstan should apply to join the Customs Union.  That’s what this meeting was all about.

Up until now, I had more or less overlooked the question, having decided that, as we weren’t really involved in import and export, it would have little impact on our business.  I wasn’t alone in taking this view.  One of my friends, another ex-pat, had asked his local staff what effect the Customs Union would have on their business – and they said the same.  I felt that I was in good company.

When Britain joined the “Common Market”, the European Economic Community, (EEC), back in the 1970′s, I was all in favour of it.  One of the major newspapers ran a cartoon which displayed a newspaper billboard declaring “Britain says “Yes” to Europe“, and a bystander is saying … “I don’t remember being asked.”  However, we did get asked and have a chance to have our say, and in the referendum of 1975, I voted “Yes”.  On the whole, even though there is more bureaucracy and lots of other problems – I still think it was the right decision.  My gut feeling about Kyrgyzstan’s membership of the Customs Union, therefore, was that unless there was some overriding obstacle, then perhaps it would be wise to join.  After all, Kazakhstan and Russia, account for a lot of our foreign trade.

Despite the fact that the subject didn’t exactly enthrall me, I trotted along to the meeting at the appointed time, and took my place.  We were a little late starting, which is not that unusual for Kyrgyzstan – but not not very late.  The Chairman called the meeting to order after giving five minutes for the latecomers and announced that the two ministers, unfortunately couldn’t come and had sent representatives in their stead.  There were lots of things going on in the country at that particular time, so although it was disappointing, it was understandable.

The opening speeches were short(ish) and to the point – with a surprising amount of detail.  The main speakers were well prepared – too well prepared for they had far too much material to present in the time available and the chairman had to interrupt two of the speakers and ask them to cut their presentations short.  As we had printouts of the presentations, it didn’t detract too much from the flow of information.

The range of speakers was quite interesting, and they spoke with passion about their particular positions – “Yes” or “No”.  Those opposed seemed to stress that the existence of the Customs Union had not brought the expected benefits but, on the contrary, created new bureaucracy and problems.  There were also several “contradictions” and questions yet to be resolved between the members within the Customs Union.  (That sounded like the European Debate that we had back in Britain in the 1970′s all over again.)  Several speakers pointed out that there was no question of principal about whether to join or not – the overriding issue was whether the terms and conditions were appropriate and at least two of the speakers adopted the position of “Not now but later”.

Part of their logic of adopting a position of “wait and see” is that the situation could change if and when Russia and/or Kazakhstan join the WTO.

The one issue that seems to me to be a problem is that Kyrgyzstan’s tariffs at the present are set at about 5.1%, but if we entered the Customs Union, then they would have to rise to double that.  This would have an effect on prices for imported goods in the domestic market – which is a considerable portion of the existing trade.  Even if the Customs Union would have little direct effect on our business as we are not involved in import and export, it would have a significant indirect, “knock on” effect.

Even if we decided that this was acceptable because membership would bring other advantages, the fact that the new unified tariff was higher than Kyrgyzstan is allowed to impose under the WTO rules, meant that Kyrgyzstan would have to compensate its partners in WTO countries and the bill for this, it was said, would be in the region of USD1billion a year.  That seems a lot, and I wonder if Kyrgyzstan could afford this.

The most surprising fact, however, was the discrepancy between the official Chinese and Kyrgyz statistics about trade between the two countries.  I was aware that there are discrepancies, but had put this down to my usual skepticism about statistics.  It was reported, however, that according to Kyrgyz statistics, in 2008 Kyrgyzstan exported goods worth USD44.4million to China, but the Chinese figures claim they were worth USD121.3 … just under three times as much.  According to Kyrgyz statistics, Kyrgyzstan imported goods from China worth USD728.2million, but according to the Chinese they were worth USD9213.4million … or over twelve and a half times more.  What’s more, discrepancies exist in the figures with other countries as well … but these were the most striking.  I can think of lots of legitimate reasons why there might be some differences between the two sets of figures, but it is hard to see how to explain the huge discrepancy that seems to exist.

If the Chinese figures are anyway near accurate then China must be Kyrgyzstan’s biggest trading partner … and although China is a member of the WTO, it is not in the Customs Union.

That doesn’t mean to say that joining the Customs Union would be a bad thing in itself – but it does mean that there would need to be some considerable readjustment within the Kyrgyz economy if it did … just as they would need to be if Kyrgyzstan stays out.

So, it turned out that there was lots of information, well presented in a lively meeting which provided a lot of food for thought.

I don’t think it helped me, however.  I may have gone into the meeting knowing just a little about the topic, (and, to be honest, not very interested), but a gut feeling that given there were no overriding objections, then it would probably be a good thing for Kyrgyzstan to join.  I came out with a lot more information – but also a lot more questions – and possibly more confused than ever.  All in all, I felt glad that I was foreigner … and it’s not my decision.

I also came out of the meeting thinking that it was, probably, one of the best Open Meetings that IBC has staged for a long time.

One of IBC’s other activities is the publication of a bilingual, (English-Russian), newsletter, “Trade & WTO news”, which is financed by the USAID Regional Trade Liberalization and Customs Project (RTLC), and aims to inform entrepreneurs of the Kyrgyz Republic on trade policy news, the impact on trade of Kyrgyzstan as WTO member and import rules of the WTO countries through analytical articles, interviews and latest WTO notifications.

The latest issue includes articles on the problems and prospects of trade with China, a summary of news items about international trade and trade with the European Community as well information about official notifications from different WTO countries.

If you are interested, you can download a copy in pdf format from the IBC website: www.ibc.kg

However, feelings ran deep and there were many who were dissatisfied with this, that or the other.  People had grievances they wanted to air and demands they wanted to present.  It is not surprising that different groups will try to present their demands to the new authorities, and so rallies, demonstrations and “meetings” are to be expected.   It is unfortunate and disappointing, however, that they have grown used to turning to violence rather than debate to do so … especially, it turned out, it was to cost further lives.

The weekend following the President’s resignation was quiet and calm, but that turned out to be the proverbial “calm before the storm”.  Protests erupted almost immediately and the most serious was about allocation of land.  Protesters gathered in Bishkek and then made their way to a village on the outskirts of the city, Maevka, where a running battle ensued.

Some of the villagers were intent on defending themselves, and some started to remove pegs from the plots of land that people had marked out for themselves.  The fire department received lots of calls asking for assistance, apparently six houses had been set on fire, but the road had been blocked by protestors who refused to let them through.  They also refused to let ambulances through.  In the morning, it was reported that about 500 people were involved in the riots, seven people had been injured in the “mass unrest”, (although that was later revised to forty people who were hospitalized – 10 of whom were from the police), that there had been one fatality, (and later reports said two had died in the fires and two from gunshot wounds … making five altogether), some cars had been overturned – six were burnt out, including three police cars, about 1000 bales of hay had been burnt in the fires and the authorities had dispatched some 600 police officers to maintain order and they had blocked the roads leading to the village who arrested some 130 rioters.

Bishkek, itself, remained quiet and peaceful … apart, that is, from the expressions of shock, outrage, and even anger, that people would do this so soon after the violence of April 7th.

In the face of these events, I wrote a letter to the management board of the IBC, (International Business Council), – I happen to serve as one of the members of the board – suggesting that we address the interim government with an appeal about the need for the preservation of Safety and Security.

Back in 2005, following the Tulip Revolution, this had been one of the main themes that we had pursued.

As it happens, as they say, “great minds think alike” and the Chairman and Executive Director had already had thoughts along the same lines and they proposed a draft of an open letter on the subject to the interim government.  Our emails crossed.

Their letter was better than mine in that it was less emotional …

Anyway, here is what I wrote:

Can I suggest that in the light of yesterday’s events, and the continued uncertainty today, that we probably need to follow the Open Letter that we sent to the interim government up with a press release and/or another letter to the government and/or pressure on all and sundry to raise / pursue the importance of the issue of Safety and Security.

“Safe Streets” was one of the six pillars of the the Business Agenda which IBC promoted at the time of the 2005, Tulip Revolution.  Security is also regularly cited as one of the critical issues identified by respondents in the IBC Quarterly Investor’s Survey.

How many news reports have there been in the last few days about how this or that government, this or that international organization, welcome the stabilization of affairs in Kyrgyzstan.  One of the critical roles of government, any government, is to provide for the safety and security of its people.  It should be a priority, a top priority, issue for government.

Please note that I am not saying that the government isn’t do anything … nor am I saying that they are not doing enough … what I am saying is that this should be a priority … the country needs safety and security, business needs it, the people need it … and that we should do anything that we can to help bring the issue into the spotlight, and to help to keep it there.

Obviously, I have a vested interest in pursuing this question.  In our business, Tourism, safety and security is by far the biggest issue when it comes to deciding whether or not to cancel a holiday.  We have got over the first hurdle, (poor marketing and lack of awareness about the country), only to fall at the next fence.  The tourist already knows about Kyrgyzstan and has made a decision that they would like to come here … but the scenes on BBC, CNN and so on, cause them concern … worry them.  Will they be safe?  If there is any question about this then they will consider, and probably decide to, cancel their travel plans.  They have the world at their feet – apart from the fact a volcano might limit their flight options at the present moment.  It doesn’t matter if the threat to their person is in the form of terrorism, civil unrest or heath issues like SARS, Bird Flu or Swine Flu … if there is danger they won’t come.  What’s worse, there will be a considerable long term effect as it will also put people off even considering a trip here in the near future.

But, I am not thinking only in terms of self-interest.  The current situation will also put off potential investors, and businessmen from considering doing business here.  It won’t matter that Kyrgyzstan has risen so many places in the World Bank’s “Doing Business” rankings … with riots on the streets and governments toppling.  Investors and businessmen will, at best, delay any decision to get involved in the country … and they are more likely to decide on other potential projects.  The influence of an Icelandic volcanic eruption is unlikely to interfere with this decision as it would with a tourist who wants to change their plans.

Then there is the question of the needs of the population of Kyrgyzstan, and the question of social cohesion.  It does nobody any good if the first recourse for any dissatisfied group is to violence.  Just talking to people, ordinary people, there is frustration and despair, shock, outrage, and even anger, that something like this could happen, especially so soon after the violence of April 7th.  Eighty five deaths in one day, five more less than two weeks later, not mention the number of injured and the damage to property. Of course, there is also the fear of civil war.  No-one thinks it will happen.  No-one wants it to happen.  But, who can tell? … if any group of dissatisfied people feel that their best recourse, their first recourse, their only recourse is to take to the streets and create mayhem, then we have a recipe for anarchy.

That is nobody’s interests.

Saturday was one of the few days in the year when you wouldn’t have found me in the office.  Well, that’s not quite true -  I arrived, as usual, at six o’clock and spent three hours going through the emails and some of the routine weekend tasks … but at nine o’clock I abandoned the office for a day out.

A few weeks ago we received a notice about a special charity event being organized at Toguz Bulak, one of the local ski resorts.

A number of local organizations, (the Kyrgyz-Japanese Community of Friendship and Cooperation, JICA Alumni Association, Bishkek City Administration, Bishkek Business Club, International Business Council, The Union of Entrepreneurs of Kyrgyzstan and the Kyrgyz Association of Software Development and Service), had got together to organize the event in order to raise money to buy beds for a local children’s hospital which specializes in treating patients with Tuberculosis.

The event was to include competition events, (both skiing and snowboarding), guided walks to some of the interesting places in the vicinity, along with a concert given by a popular local band and lunch.   It was hoped that the event would also act as an illustration of Kyrgyzstan as “a country of winter sports, tourism and recreation”.  Indeed, there are plans to hold the event on an annual basis in the future.

Now, I am not a skier … I have tried it on a couple of occasions – once on a dry ski-slope just north of London with a group of sixth formers when I was a school teacher, and on that occasion I did quite well and enjoyed it very much, and the other time was when I took a holiday with a friend at a ski-resort here in Kyrgyzstan.  On that occasion, I kept falling over and hurting my legs.  I was afraid that I would break my leg and so I gave up and, instead, went walking in the nearby valleys.

Despite that, however, I was very interested to get the notice about the event, for several reasons:

• For once, we were given plenty of advance notice … two and a half weeks, instead of being told that it was going to to happen in the next couple of day – as is, unfortunately, all too common here;
• I don’t often get out of the office and I welcomed the idea of a day out, visiting a spot, near to the capital, which I have never seen before;
• I have a number of foreign visitors here at the moment from Britain, Australia and the States, and although they are not tourists, I thought that they might enjoy the idea of a day out in the mountains;
• the family of “Baseball kids” rarely ever get out of the city, and have never been skiing, so I thought that they would enjoy the opportunity to do both;
• I am always on the lookout for ways of saying a “thank you” to our staff and so invited them to join me;
• The event was to benefit a good cause – a children’s hospital which specializes in treating patients with Tuberculosis … my mother had the disease when I was born, and lost a lung through it, and we were very lucky not to lose her as a result and so I have always had an affinity to support charities working in this area.  (In fact, my mother gave me a natural immunity to the disease and every time I have been tested in order to see if I need an inoculation against Tuberculosis, the doctors have been surprised to see the strength of reaction from my body to the test.)

Not everyone who was invited to go could do so, but even so we managed to put together a party of twenty-one for the outing … me, one of our foreign visitors, thirteen staff members and six of the baseball kids.

When I bought the tickets a week ago, I was asked if I was sure that I wanted that many – maybe there wouldn’t be any snow, (we’ve been experiencing a lot of unseasonably warm weather recently … though, as it turned out we had three days of snow before the event, so there was plenty) and as not all of us were intending to ski, I still liked the idea of taking a day off and going into the mountains

We gathered in the office at nine o’clock and set off.  It was quite slow driving as there had been snow overnight and a fresh layer covered the road.  Apart from these conditions, most of the road was quite good and it was only when we got to the steep rise leading to the ski resort itself that we had to stop and put chains on the wheels of the bus – and we easily ascended to the entrance of the resort.  Some other vehicles, without chains, however, had had problems and were left at the side of the road – the passengers walking the last couple of hundred meters up to the resort.

We collected our badges that entitled us to ride the ski-lift, and eat lunch, and set off to explore the site.

Then we hit the big disappointment … there was no ski equipment available for hire (!), despite the fact that the publicity had said the price included a discount on hire.  I was told that we should have hired it from one of the stores in town – who would have given us a discount on their usual rates.  I remonstrated that it would have been better if we had been told that beforehand … to go back into town now would take at least two hours and by the time we got back the day’s skiing would be almost over.  Fortunately, some of our party had their own skis and snowboards and, as I said, not all of us were planning to ski anyway.  I felt sorry for the children have never skied and would have loved to give it a go … but, they accepted the situation with good grace and, I suppose, that means I’ll have to take them another time.

Although this was a big disappointment, it wasn’t a disaster.  We had enough to do riding the ski lift, walking through the snow, taking photos (some good – some not so good), and warming ourselves up in the cafe, (where the fare was limited but the shashlik was good and the tea was both hot and refreshing).

If they do hold the event again next year – we’ll learn from the experience and be sure to hire skis beforehand.  I hope the organizers also learn and either have equipment available for hire, or at least make sure that their publicity materials make the situation crystal clear.

Alistair Cooke, my hero, was keen on two particular sports, and almost every year he would feature these in one, (but just one each year), of his “Letter from America” broadcasts.  These two sports were: Tennis and Golf.

Although I am not aficionado of either sport, I knew enough to make sense of whatever he was saying – and, anyway, his talks were not really about the sport itself, but there was usually a more general point that he would try and illustrate using the sport as a medium.

I have never been particularly fond of either sport.  They are both individual sports – and, as I am not particularly good in any specific sporting skills, I have always tended to favour team games.

In terms of Tennis, for example, my experience is fairly limited … as a schoolboy I played one match – and lost it, six-love, six-love, six-love.  That humiliating experience gave me no real incentive to have another go – even if there were no witnesses to my spectacular defeat apart from my opponent.

As for golf, I have never played it.  I have watched it on TV and know the basic principles.  I know several people, however, who do play and who enjoy it immensely.  The idea of going for a stroll and at the same time enjoying a game does seem appealing, but I feel that it’s a bit late for me to take up a new sport, especially one that involves a certain amount of skill, devotion and application.

I remember my first exposure to Golf.  It was in 1969.  Tony Jacklin was playing in the British Open and was in a commanding position after the first day’s play.  The last time a British player had won the competition was in 1951, (before I was born), and the media sprang into action.  The next three days saw a growing exposure to the sport on television and in the daily newspapers.  When Jacklin eventually won, it was a event widely publicized and hailed as a sign of the improvement in Britain’s sporting prowess.  He went on to win the US Open the following year and this seemed to confirm all the hype.

We all seemed to get caught up in the excitement.  New words, or at least new meanings for words, seemed to enter our vocabularies: tee, fairway, green, rough, bunker, wood, iron, drive, put, birdie, eagle, bogey, caddy … and so on.  Even my father, who had never held a golf club in his hands, became captivated and an “armchair expert”.

Despite all this interest, Golf was still somewhat of an “exclusive” sport: The equipment was expensive, and out of the reach of most people’s budget; it was played in specialist courses, to which access was restricted and it required application and practice.  On top of that, (at least to me), it didn’t seem like a sport as  you walked everywhere.

It might come as a surprise therefore that I spent last Saturday at a golf tournament.  Not participating as a player, I will quickly add, but as spectator.

If I’m not exactly a golfer, what was my motivation for going along?  Well, it was threefold:

1. The competition was organized by the International Business Council, (IBC), and as member of the management board I felt that I should take an interest.  As noted by the executive director in his opening remarks, we often meet “in suits” to discuss important topics about “doing business” in Kyrgyzstan, but it’s good to meet in less formal surroundings and simply pass time together, getting to know each other and build a greater understanding and such events as a Golf Tournament are not only good for “networking” and  team building” but provide a good social experience as well as a fund-raising event.
2. As well as the tournament itself, with opportunities for both experienced players and novices alike, there was a “Golf School” for absolute beginners.  I have already said that I am not so sure about this for myself, but I took along the baseball kids and gave them the chance to have a go at the game.  Although they enjoyed it, as they pointed out, it’s not the same as baseball which they prefer, but at least they have had an opportunity to have a go.  Something I never had at their age.
3. Although golf is not a traditional Kyrgyz game, the Maple Leaf Golf Club, (where the tournament was held), was established some eight years ago.  I have often thought about going to have a look, but somehow, I have never made it.  Some friends of mine play occasionally at the weekends and we have often talked about the possibility of my tagging along to walk round with them … but somehow, it never happened.  This tournament gave me the excuse to actually get away from my desk and go and have a look.

After the official opening, the teams dispersed to the holes that would serve as their starting point, the kids went off to the driving range for their first lesson, and I took up my camera and set off on a three and a half kilometer stroll around the nine hole course.

The course, itself, is in a village about fifteen kilometers, or a twenty minute taxi drive, from the Bishkek city center and set in scenic surroundings under the foothills of the Kyrgyz Range of the Tien Shan mountains.   As well as the well kept fairways and greens there is a certain amount of landscaping with colourful flowerbeds, several ponds and sapling trees which in years to come will mature into mighty trees.

Unfortunately, being Autumn, the day was cold and overcast which detracted from the full beauty of the landscape, although the potential for spending a pleasant Spring or Summer day here, was clear.  At least it wasn’t raining!

Everyone seemed to enjoy themselves … evidenced by the sound of “whelps” of delight and the sight of grown men rolling around on the grass in celebration as the little white ball sank into the hole and even the desperate, (but good natured), cries of “What have I done?” as the ball flew off into the rough to the left or the right of the fairway.

As I wasn’t playing, I got round the course a lot quicker than everyone else … and settled down in the warmth of the clubhouse to look at the photographs and glance through the coffee table books with pictures of spectacular courses around the world.  The Salt Peanuts Jazz Band braved the cold to perform.  As the teams returned to the clubhouse, a hearty lunch was served and jolly merriment abounded as the prizes and awards were presented.

All in all, it was a successful event, a pleasant day out and everyone is looking forward to it becoming an annual event and to next year’s tournament.

One of the nice things I noticed was that although most of the players were foreigner, ex-pats, a number were locals, and the teachers giving lessons in the Golf School were all locals.

Indeed, it is quite interesting that although most of the club’s cliental are foreigners, in Kyrgyzstan for business, there are quite a few locals who have successfully taken up the game.  Earlier this year, the club hosted the “Kyrgyz Open” Tournament and representatives of fourteen different nationalities participated, but the top three places were taken by local people.

I wonder what Alistair Cooke would have made of that?

• promote the common interests of business investors;
• provide members with relevant information and advice to support their business operations, and
• make the Kyrgyz Republic a more attractive investment location by promoting good business legislation and efficient business practices, .

The membership of IBC includes a wide range of local and international businesses who have created thousands of jobs and have a combined investment of over one billion US Dollars in the Kyrgyz economy.

As one of the founder members I have always taken an active interest in, and played an active role in the affairs of IBC since it’s inception, including serving several terms on the Management Board.

As part of its activities, IBC produces a number of publications, the flagship of which is the quarterly journal: Investment Now.  The journal has a guest editorial column and on one occasion I, as a Board Member, was asked if I would write it.

Generally, the IBC has a good reputation, but at this particular time questions were being asked about “who were the IBC?” … was it a “foreigner’s club”?, or “the voice of big business”? … and I decided to tackle that question.

This is what I wrote:

There are many reasons why companies decide to join an organization like the International Business Council (IBC).  Some of them are, perhaps, more obvious than others.  Most of them can be characterized, however, by one word: Access.

First of all there is Access to Decision Makers.  Perhaps one of the more obvious reasons is to unite with others in a strong body to lobby the government and other authorities on behalf of the interests of the business community.  The IBC has, over the years, gained a voice which, thankfully, is listened to, respected and considered by the highest officials in the land.   It should be noted, however, that IBC does not promote or lobby individual cases but concentrates on the general issues of principle and the interests of the community as whole.  To help it in this task IBC has established a number of committees which represent those working in several different sectors of the economy, such as Financial Services, or Mineral Resources, or Tourism, and every year they produce a series of recommendations as to what they consider are the most important issues facing their particular sector and how they should be addressed.

Then there is Access to Information and advice. Another reason might be to gain access to information.  The IBC regularly conducts surveys and publishes a number of reports and other publications.  It also holds several events such as the regular monthly Open Meetings and occasional special meetings on a given topic.

Also important is Access to Colleagues in the Business Community.  Members of IBC know that they are not alone and IBC offers a variety of various channels, such as publications, meetings, social events and so forth, though which they can meet with other businessmen.

Finally there is Access to Services and Benefits – as the advertising slogan said: “Membership has its benefits”.  In addition to those that I have already mentioned there is the status of belonging and contributing to a thriving organization that is striving to make a difference and improve the business environment in the Kyrgyz Republic.

Membership may well have its benefits, but it also brings responsibilities.

Once again, some of these responsibilities are more obvious than others.  Perhaps the most obvious of these is to pay the membership fees.  In addition, however, it is a requirement of IBC membership to confirm their commitment to support the IBC mission of making the Kyrgyz Republic a more attractive investment location by promoting good business legislation and efficient business practices; to confirm their commitment to professional and ethical standards which demonstrate rejection of corrupt practices and in keeping with internationally acceptable standards of transparent corporate governance and to provide information on their current shareholders.  Also, if the IBC is to maintain the place that it has won for itself in Kyrgyzstan then it is necessary that the membership take an active role in helping to formulate policy; to keep the management board and executive staff informed about major developments and issues so that they can continue to be effective in representing the concerns and opinions of the business community.

It is easy to misunderstand the nature of the IBC, once again for a number of reasons and some of them are more obvious than others.  Because it was originally established by foreign investors, it is often seen as representing the interest of the foreign community – however the membership comprises a considerable number of domestic companies.  Because many of the members are large companies, (to be honest, the membership fees are not exactly cheap), it is often seen as the voice of “big business”, and because it is a membership organization it is sometimes seen as just another pressure group promoting the interests of their members.

Of course, every businessman is interested in the affairs of his own company.  It is their job to ensure the prosperity, efficiency and profitability of their business.  It is important to make a profit. It is in nobody’s interest for a company to make a loss: the entrepreneur loses his business and livelihood; the employees lose their jobs and their livelihood; their suppliers loose a customer and their customers lose a supplier; the state looses a source of tax revenue and the community looses a facility.

On the other hand, no business exists in a vacuum.  Every business needs several vital elements to ensure its success: a supply network to provide it with the raw materials needed in order to provide the goods and services which it hopes to sell on; likewise, it needs access to a strong and thriving market in which to sell its goods and services; a pool of well educated, trained and motivated personnel for the workforce; a stable and predictable legislative, regulatory and taxation base so that it is possible to have confidence when making plans and decisions; fair and transparent legal taxation, and administrative systems in which it can operate and the safety and stability of a confident, flourishing and vibrant community in which to live and work.

By deciding to join an organization like IBC, companies show that they are concerned about these issues and not just about “the bottom line”.   They take a wider view.  That’s why the IBC exists.  That’s why my company decided to join IBC as one of its founder members and that’s one reason why the voice of IBC should, at least, be heard.