Unleashing Private Sector
The role playing by private sector, and especially by micro-, small and medium business (MSMB), in the transition economies of the Central Asia is significant as from the point of view of the most transitional needs, so as understanding of its place in market economy. These countries realize that private sector is the basic catalyst of changes, the tool of effective distribution and use of resources in the context of system transformations, privatization and economy restructuring.
Creation of competitive market with horizontal ties among manufacturers and industrial specialization is possible due to steady development of private sector, including MSMB. The entrepreneurship sector becomes the basic driving force of economic development thanking its mobility, capacity to engage wide strata of population in the income generation activity, not requiring large-scale investments.
Importance of private sector in economic development and improvement of living standards of population is caused by the its potential in:
- creating new workplaces;
- forming middle class;
- increasing budget revenues.
At the same time, there are the serious barriers typical to some extent for the Central Asian economies that constrain development of entrepreneurship and expansion of private sector in the region. The are:
- Internal barriers (shortage of financial means, immunity to new ideas, absence of experience and knowledge).
- Excessive intervention of the state bodies in the entrepreneurs' activity.
- Insufficient level of business environment (lack of tax stimulus, constrained access to credit resources, markets and information, and instability of legislative system).
This subsection provides access to publications on the role of private sector and its cooperation in achieving sustainable development of both the Central Asian countries and the in the world; on challenges in the way of unleashing the potential of private sector and entrepreneurship and ways of their overcoming.
Useful publications:
.gif){kind=logo}
