Postcard from Bishkek

One of the things about life here in Kyrgyzstan that took a bit of getting used to was the tradition of Professional Holidays - which was inherited from the Soviet Union.

These are days set aside form members of a particular profession to celebrate as a “community” and to commemorate the contribution they make to the economy and society.  Although they are not actually “holidays”, (non-working days), they are usually marked by social events as well as more formal events such as seminars and training sessions.  Members of the profession will contribute each other on the holiday, as will clients and customers.   

Apparently the practice began in the Soviet Union, in what is called “the years of stagnation”, (a phrase used to describe the period of economic, political, and social stagnation which started in the mid-1970′s … when Leonid Brezhnev was General Secretary of the Communist Party, and continued under his successor Yuri Andropov and Konstanin Chernenko, eventually coming to a close with the election of Mikhail Gorbachev … in the mid-1980′s ).  

Today, 7th June, happens to the Day of Financial and Economic Workers of Kyrgyzstan.

The holiday is a fairly new creation, having been established by Government Decree in 1998, to “celebrate the importance of the contribution of financial and economic workers in all sectors of the economy, scientific and educational institutions in the socio-economic development of the republic” … as well as marking “the need for further improvement of the structure of government in the implementation of fiscal reform strategy in the Kyrgyz Republic, the optimization of the functions, strengthen executive discipline”.  The original sate chosen for the “holiday” was 10th December; (in 2001 it was moved to the last Sunday in November … and in 2003 it moved once more – to 7th June).

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The tax inspection have their own Professional holiday and there’s another for Accountants and Auditors …

The taxman is often accused of trying to “get blood from stone” … but that’s everywhere in the world and not just here … and sometimes I can see the logic behind the measures they take – but not always.

There’s a number of arguments brewing at the moment, and one of them concerns Value Added Tax … NOT my favourite tax.  It’s a sort of sales tax, but firms are allowed to claim back the VAT they paid when buying goods and services out of the VAT they collect when they sell goods and services – so that, in theory at least, it doesn’t get compounded and become a tax on a tax. Now that all sounds very good … but notice my “in theory” and “sounds very good”.  Unfortunately, however, practice does not always reflect theory, and the administration of the tax is not only very complex … it’s a minefield littered with potential grounds for disputation … reminding me of the medieval debates about how many angels could sit on a pin – or whether Jesus owned his own clothes.

Well, in the attempt to tighten up on the system, it’s been decided that VAT will not apply on any purchases over say three million som – where the payment is made in cash.  As I understand it, pay by a bank transfer – no problem, claim the VAT discount … but pay by case and forget it.  As I said, I can see some logic behind the move … in terms of helping to develop the banking system, providing for better security and not having to worry about the physical safety of the cash and reducing the opportunities for fraud and, say, money laundering …  and I do know that something similar is done in other parts of the world … BUT …  it all seems fairly arbitrary to me and probably against the basic concept of the tax.

I suppose the main idea is to raise as much money in tax revenues as possible so that the government can get on and do it’s job.   OK – fair enough – but the tax system doesn’t seem to be working properly as it is without making it even more complex.  Apparently there are over 1.8 billion soms worth of tax debt … either unpaid taxes, fines or penalties.  I am amazed that only can businesses run up such debts, but that the tax inspection lets them … if we make even a small mistake then they make our life very difficult – not just imposing fines and penalties but confiscating cash in bank accounts, seizing assets, telling people who owe us money to pay them instead of us … and so on … including what Britain is trying to introduce at the moment.

There was actually talk of writing off this debt … but the government has (surprise, surprise) opposed the suggestion.

In order to try and smooth over relationships with business, there’s a new draft code of conduct including ethics … which looks good on paper but we’ll have to wait and see how it works out in practice.

Staying on the subject of tax revenues for a moment … it was announced that the protesters down South who have blocked the main road between Osh and Irkeshtam, (the border post with China), in support of the former speaker who is sitting in prison awaiting trial on corruption charges, has cost the state some 46 million som in lost taxes and duties as lorries carrying goods across the border – in both directions – have been unable to complete their journey.    The President is adamant that the protesters should be held responsible for their actions … so there “fun” in store for us there in the future.

During the week, we saw the publication of data on the salaries and wealth of the Deputies in the Parliament … One news agency published a series of lists: the richest deputies; the poorest deputies – but most locals would consider even these with such “modest” wealth as being pretty rich; then there was the riches of the families (close relatives) of some of the deputies …

Perhaps it was an inopportune moment, therefore, for some of the Deputies to plead for better housing allowances in order to maintain a home here in the capital.  At the moment we haven’t seen the sort of “expenses scandals” that have plagued politics in the West – in Britain in particular in recent years.

I doubt that it was connected in any way, (I am not a great believer in conspiracy theories on the whole), but almost immediately a group of MP’s began discussing the vitally important issue of clothes worn by civil servants around the parliament building.  One of them called for the resignation of the Minister of Education because girls in mini skirts could be found in the country’ s schools.  There was a suggestion that traditional Kyrgyz National Costume should be de rigour for all officials on official business … one deputy even suggested (tongue in cheek?) that officials should meet visiting delegations on horseback … which led one journalist to add … (again, toungue in cheek?) … that perhaps they should also move out of their apartments and move out of their apartment and back into yurt.

This predilection for all things traditional, clothing, language. national sports, crafts, cuisine – even an resurgence of the traditional ‘religion’ of Tengrism – all of which are celebrated in a growing number of festivals, around the country.

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By far the biggest taxpayer in the country is the Kumtor Gold Mine.  A few weeks ago there was a rumour that they were sacking staff and going to close the mine as a result of their on-going difficulties; renegotiations of the investment agreement, reorganization of the structure of the company, threats of nationalization,  strikes and public protests … and so on.  At the time the rumours were denied – it was apparently a case of plausible deniability because the parent company have now announced that if the necessary permits and approvals are not forthcoming, so that they can get on with their work,  then the mine will cease operations on 13th June and the site will be will be put into conservation with measures to protect the environment.

President Atambaev has described the situation in very uncomplimentary terms … saying that if the mine stops working it will be a catastrophe … and he was talking about the environmental situation rather than the economic one … but I am sure he had the economics situation in mind as well.  Referring to the new law On Glaciers which the parliament recently passed, he explained that he had decided to veto the bill because, although it was necessary, it was basically targeted against just one company … Kumtor.

This next week looks as if it could be quite eventful! …

… in more ways than one!

Another important date next week is 10th June – the anniversary of the events in Southern Kyrgyzstan back in 2010, when more than 400 people were killed, ”dozens still missing” and thousands displaced.  Apparently, according to some reports, tensions are “running high” … but I suspect that has more to do with other factors – the lack of Gas, border disputes, internal concerns like the confinement of ex-speaker Keldibekov  … and so on, rather than with the anniversary itself.   In an interesting move, however, the Muftiat has called on all clerics to help prevent ethnic clashes by preachiung sermons about the “brotherly relations between all Muslims, regardless of nationality”.

Another long running story is that of the Manas Transit Center … which looks as if it has finally come to an end.  The operations came to an end a few weeks ago and this week saw the official closing ceremony with most of the facilities created over the last fourteen years handed over to the Kyrgyz side.  During its operational life some five and a half million people traveled through its portals, (that’s roughly the same number as in the population), some 136000 aircraft were refueled over Afghanistan with over a billion tons of fuel on 33000 different missions.

It was interesting to see how one American newspaper chose to portray the end of the lease on the base as the Kyrgyz “kicking the Marines out” … and saying that the servicemen seemed to “ducking and running” as they headed for new postings in Poland and … Western Ukraine (!)  Well, I suppose this is another example of “it all depends on who is telling the story … “.

The servicemen may well be heading off to new deployments but one person won’t be … a civilian employee at the center managed to get himself arrested – apparently when he was “under the influence”, making improper advances to women, damaging police property … and earning for himself a four year prison sentence for Hooliganism in the process.  The Americans have been remarkably quiet in response.

Another American who is not going to be going home for some time is Edward Snowden … currently in Russia but wanted in the States for making public information about their intelligence gathering methods.   At the beginning of the week there was a very strange report suggesting that he might be offered asylum here in Kyrgyzstan … but I can’t see that happening … but then again, there’s a remarkable silence being maintained from all quarters on the speculation.

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If the Tax Inspection that suffers from a poor image with the population – so do the police, traffic police – and their political masters.  Until fairly recently teachers, (academics in general) and the medical profession were well perceived among the population … but their images have also suffered some damage over the last few years.

Take the medical profession, for example, there was the case a few years ago where a number of children in Southern Kyrgyzstan who contracted HIV from having been given contaminated blood – a situation we are assured will not be repeated as a result of the reforms that were subsequently introduced.   That really helped to make a huge dent in the reputation of the medical profession – but it’s not the only scandal to hit the health service in recent years … there was also the case of out of date medicines being supplied (or purchased – it seems to depend on who is telling the story), or the wrong type of syringes provided for insulin injection; an apparent over eagerness to undertake surgery, even exploratory surgery - because, or so it is said, “that offers the chance to earn more money”.

In fact, in my experience, the local medical staff are well qualified and, on the whole, competent.  What they lack is mainly access … to decent facilities, the latest technology and the most range of medications available elsewhere.  Most of that is down to the bottom line – economics.  I’m pleased to not, however, that things are improving – at least in the Private sector … with new, modern, well equipped clinics and diagnostic centers springing up – at least, here in the capital.

One of the more worrying aspects, however, is the recent fall in the number of children being immunized against various diseases … or, to look at it another way, the rise on the number of families where the parents are declining to take up the option.  When the story first broke, my immediate thought was that it was, once again, a question of economics – economizing in order to stretch out the family already strained finances.  As it happens, another reason is being cited by the authorities as they try to tack the issue … Islam.

Muslim theology has a long held that it is a sin to oppose the will of God … and if someone falls ill, then this is because God has willed it for some reason, so it would be a sin to do something to thwart the will of the Almighty.  Well, although that’s probably a far too crude and simplistic representation of what is a very complicated and controversial topic, I suppose however that it is one way to deal with the Problem of Evil which  has held Christian Theologians in thrall over the centuries. The local authorities have apparently been trying to persuade the faithful that immunization is not a sin – and they have had some success with the Mufriat declaring that there are only two issues that should concern the true believer: Are the vaccines manufactured in accordance with Islamic principals – for example, they should be 100% free of any ingredients that contain pork … and, that they should do no harm.

That last one is proving to be a bit of major hurdle … even without doctors who exposed young children to the HIV virus.  Think of the controversy in the West over the advisability of immunizing children with the MME vaccine … and dare I mention Thalidomide.  The internet, which is in so many ways a boon to society, is also responsible for the dissemination of such stories … albeit anecdotal information about individual cases or complex medical research.

I may be wrong, but it seems to me that some health officials here seem to think that it’s a “bridge too far” … and is being used deliberately by certain individuals  who appear to want to stop immunization in the Republic altogether.

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I am rapidly running out of time and space again – so let me do a quick round up of some of the other stories in the news this week:

Perhaps the most surprising piece of news came, tucked away in a news report about attracting investments into Naryn … which apparently is to include the construction of a factory producing cars !  That is indeed welcome news – Naryn is one of the poorest parts of the country and seriously in need of investment and improved employment opportunities.  However, I am confused … I am not sure if it is planned to be a large plant producing vehicles for the mass market or a small, specialist factory like the Morgan Motor Company plant in my hometown of Malvern, Worcestershire.  (One of the longest-existing private constructors of automobiles in the world.)

The weather continues to be a little unusual with storm warnings regularly issued from the Ministry of Emergency Situations …

They are warning us of heavy rains in the mountains, likely yo cause flooding and mudflows.  We’ve already seen a number of mudflows down South which have blocked roads cutting off small remote communities.

In the Naryn region, snow fell (mixed with rain) and almost seven hundred head of livestock were lost as a result of this unseasonal weather.  They had been shorn with the onset of warmer weather and sent out to the pastures … only to be caught unawares for this sudden change of weather.

This week we saw strong storm force winds which uprooted posts and trees … one tree falling on a passerby killing him.  When we talk about cultural differences … photos of the corpse were a feature of the news reports – something you wouldn’t see back in the UK.

The work on approving the agencies that are going to be allowed to arrange international adoptions progresses … eight have so far received accreditation.  Actually, this has given me a bit of a problem – fielding questions about how to go about arranging such adoptions.  For some reason, people seem to think I am an expert on all things to do with Kyrgyzstan but this is well outside my knowledge and experience.

One interesting statistic that emerged during the week was that children and teenagers now constitute a third of the country’s population – a little less than two million.  Now, if you look at a “population pyramid” graph for any country it should clear that children usually form a large portion of the population … but what is interesting is how the absence of half a million migrant workers in Russia and Kazakhstan distorts that proportion … and it’s even more marked in some parts of the country than others.

Another interesting statistic was that landlocked, mountainous Kyrgyzstan produced some 2000 tons of fish last year!  Not bad. In the past, I have written a couple of postcards about fish farms – you can see the latest one here.

The plans for the development of the city have been the subject of much discussion in the recent past … the proposed plans were considered secret with tidbits “leaked”, or announced, from time to time … usually outlining some grand proposals like fifty storey skyscrapers.  A lot will, of course, depend on finding the finance to fund such projects … although there’s a fair amount of finance around – judging by the amount of construction, (at least in the city center), turning to more mundane matters, it emerged during the week that the average resident of the city contributes just 20 som to garbage disposal … that struck me as odd because I get a bill for 15 som each month – that’s 226 som a year … and the company pays even more based on the things like the size of our premises and the number of employees that we have … and that’s what colloquially referred to as the Rubbish Tax – there’s also a separate contract for commercial entities like the hotel.  Now I know that some people, (for example, pensioners), have concessions but even they pay 60 som a year … so … where is all the money because it clearly isn’t being spent on garbage disposal.

Another interesting statistic – issued to commemorate the World Anti-Tobacco Day, was that since the ban on somoking in public places (schools, hospitals, places of entertainment, and workplace which serves the public), some 759 citations have been issued … with fines averaging about 2000 som.

Smoking bans, tax reforms … these are just a couple of examples of how the trends and tendencies which have been “imported” from the West … another is the controversy over how far a householder can go in defending their property … what constitutes reasonable and legitimate force?  I think we’ll see some more disputes on this in the near future.

As the Football World Cup rapidly approaches, it is worth noting that, although Kyrgyzstan is taking part in the finals, we do have an Assistant Referee who will be active in Brazil.  Kyrgyzstan has also been quite successful in a number of sporting competitions – from Tennis to Show Jumping … Chess and Ballroom Dancing.  Yes, Ballroom Dancing, with a Kyrgyz couple taking the Silver Medal in a recent international competition held in Kazakhstan.  Indeed, here is known as Sport Dancing.

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Postcard from Bishkek: the weekly postcard that I send out as an email also gets posted on the website ianbek.kg each week – and there are other postcards which don’t get sent out.  This week, for example, there has been the following postcards:

• Travelling with Children - On Children’s Day … some thought about travelling with children – 01/06/14
• Picturesque Placenames - Some placenames have picturesque meanings … but they don’t always mean what they say – 02/06/14
• 2048 - A game the is sweeping across the globe … – 03/06/14
• Osh Bazaar - A look at Bishkek’s main bazaar – where it is possible to fun just about anything – 04/06/14
• Raise your voice, not the sea level - Although it’s always good to think about the environment – Thursday was a particularly good day … because it was World Environment Day – 05/06/14:
• Ishenaly Arabaev - One of the founders of Kyrgyz education – 06/06/14

It is possible to follow me on Facebook, (where we also have specific pages for Celestial Mountains, the Silk Road Lodge, The Celestial Mountains Guesthouse in Naryn  and also links.kg, Kyrgyz Diary and Kyrgyzstan Visitki … and not forgetting ianbek), and also on twitter, (@Bishkekpostcard and @celestialM

 

 

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