Why Join the IBC?
The International Business Council (IBC) was established in December 2000, by a number of companies, (of which the Celestial Mountains Tour Company was one), with the aim of working in partnership with the government of the Kyrgyz Republic and other local and foreign organizations to:
- 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:
In My Opinion …
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.
Bishkek