We present a detailed report on the work of NCE on the transfer of the functions of state bodies to a competitive environment

This list is published on the websites of the Ministry of National Economy and the National Chamber of Entrepreneurs of RK "Atameken" for public discussion and search of the potential competitive environment. After that market readiness analysis and regulatory impact analysis are conducted. The main role of the effective interaction with the competitive environment and the non-governmental sector is provided to NCE and the Civil Alliance of Kazakhstan. In the third step on the basis of the inventory and market readiness analysis, the Commission makes recommendations to the Government for decision. And in the final stage on the basis of proposals approved by the Government, the state agencies will start to transfer functions to the market environment.

In June of this year state authorities conducted an inventory of functions for possible transfer to the competitive environment and self-regulatory organizations.

It turned out that the central and local public authorities have about 15 thousand functions (ministries - 4616 functions, Akimats on average about 700 functions). As a result, 448 functions were suggested for the transfer to the competitive environment and SRO (217 - the central executive bodies and 231 - Akimats).

Depending on the willingness of the market and the initiative of subjects of private enterprises  and civil society, there were formed 2 groups of functions. The first group includes 38 functions, planned to transfer in 2016-2017 to self-regulation for those spheres, where was introduced mandatory membership in the non-profit organizations (evaluation and audit activities, the activities of environmental auditors, notaries, advocateship); in other ways (state tasks, state social orders, outsourcing, etc.) - in the areas where the work on the transfer of functions is already nearing completion stage. The second group included 102 features planned for transfer in 2017-2019: transfer to self-group the functions in the areas where the position of state agencies and the competitive environment are the same (healthcare facilities, geological organizations, etc.); in other ways (state task, state social order, outsourcing, at the expense of service recipients) in areas where the work on the transfer of functions has already begun. The list is published on the websites of the Ministry of National Economy and the National Chamber of Entrepreneurs.

NCE together with state bodies analyzed the transfer of the first group of functions into a competitive environment (including NCE) and SROs. We are talking about the functions of the Ministry of Agriculture and the MID on subsidizing agribusiness entities, the development of local content and the tourist market, the functions of the Ministry of Finance, the Ministry of Justice and the Ministry of National Economy subject to ARV for the introduction of self-regulation based on mandatory membership, in areas where we have been introduced a mandatory membership in the non-profit organizations, as well as the functions of the Ministry of health and social development, subject to market readiness analysis for their transfer to the competitive environment for determining the degree of satisfaction of the citizens and the level of quality of care. In all areas were created working groups with participation of relevant ministries, representatives of NCE, the subjects of business and professional activities, there was developed a plan of work of these groups, as well as the general plan of action for the transfer of functions of the state bodies to the competitive environment and SRO in 2016-2019 years.

NCE "Atameken" held public hearings in conjunction with state bodies and the maximum participation of the subjects of a particular sector of the market, and also studied international experience in the implementation of a competitive environment similar to state functions. There were held a lot of meetings to discuss the results of ARV and AGR with Mazhilis deputies, representatives of state bodies and market participants.

Regarding the transfer of the functions to the Ministry of Agriculture and MID. The above functions of state bodies are being implemented by subordinate organizations of the ministries. At the same time one of the important tasks of the reform on the transfer of state functions to the competitive environment and the SRO is reduction of the participation of the quasi-public sector in the implementation of state functions.

Regarding the functions of the MID in the development of local content, service provision and financial support of subjects of industrial innovative activities, which are carried out by JSC “NADLoC” now. The Expert Group and the authorized body (MID) decided to leave the operator services on rendering the state financial support after JSC “NADLoC”.

It was suggested to transfer to "Atameken" the functions of development of local content and provision of service support to business entities, due to the fact that under the conditions of WTO and EAEU the Ministry for Investment and Development can’t implement them. The results of the analytical work, which was carried out by the Chamber in cooperation with the Ministry and business entities - recipients of services have shown the benefits and feasibility of such a transfer. Now the business community will determine the rules of support of local entrepreneurs.

Regarding the function of the dissemination of information about Kazakhstan and its tourism opportunities at the international tourist market, and within the state. During the discussion it was noted that the issues of regulation of the tourism industry passed from department to department 6 times. It was therefore proposed to establish a special structure in the form of public-private partnership (49% MID RK and 51% NCE). The responsibility for the performance of functions in the sphere of tourism development will look as follows: the Ministry will be responsible for the regulation of tourism, including the development of RLAs, inter-agency coordination, the creation of conditions for attraction of potential investors, the development of infrastructure in areas of tourism and leisure, international cooperation at the state level and state control in indicated sphere; the special structure will also provide marketing and advertising, the formation of national and regional brands, the development of tourist products, training of tourist market participants. This alignment was supported by members of the Expert Group.

Regarding the transfer of functions of MA on provision of subsidies to agricultural producers. Functions on subsidizing are state services. However, the Ministry of Agriculture carried out policies aimed at updating and improving the organizational processes of the measures of financial support of agribusiness entities. In particular, it proposed to automate fully the function, i.e., a decision on the allocation of financial support to agribusiness entities will be automated, without the participation of the human factor. Therefore, from next year, the Ministry eliminates the role of operator for these types of grants, respectively, the funds to pay for their services will not be allocated. In this regard, Ministry of Agriculture considers it is premature to think of the transfer of the function into the competitive environment.

Regarding appraisal activities. On the territory of Kazakhstan appraisal activities are carried out by more than 700 business entities - it is about 1.5 thousand licensed appraisers, who must necessarily be members of one of the 16 regional chambers - potential SRO. As part of the law "On the self-regulation" the Ministry of Justice in cooperation with the Chamber conduct regulatory impact analyzes. As a result of ARV, it is suggested to transfer the following public functions: the development of appraisal standards; licensing of valuation activities; holding qualification examination of persons applying for employment at appraisal companies; development of professional retraining programs; the promotion of competition on the market for property assessment services through the creation of equal conditions for all the subjects of appraisal activities; state control over appraisers. Currently, the Ministry of Justice proposed to maintain the evolutionary development of self-regulation institute in this field by introducing a multiplicity of SROs with the establishment of a minimum number of members engaged in assessment activities. The Expert Group supported the proposal of the Ministry of Justice on the transfer of a group of functions of appraisal activities to self-regulatory organizations, and the final decision will be made after a meeting of the Interdepartmental Commission on the development of entrepreneurship.

Regarding the functions of the Ministry of Energy, regulating the activities of environmental auditors. In this area today, there was established one organization, consolidating the majority of licensees - Association "National Chamber of professional environmental auditors". Expert Group supported the issue of transfer of the function to the self-regulation.

The Ministry of Health and Social Development proposed to transfer to the competitive environment through state social order the function of determination of the degree of citizens' satisfaction with the level and quality of health care. Taking into account the increase in the number of appeals and complaints of patients, as well as to get an objective picture of the level of satisfaction of citizens' level and quality of medical care, an independent evaluation is necessary. In general, the proposal of the Ministry was supported by the Expert Group.

Regarding the functions of the Ministry of Finance in regulation of audit activities. Currently 198 licenses were issued to legal entities (audit firms), evolutionarily there were established 3 professional auditing organizations with consideration of compulsory membership: The Collegium of Auditors (80 audit organizations), the Union of Auditors (36 audit organizations), the Chamber of Auditors (81 audit firms). Audit activity has all the signs of self-regulation, and there is a legally established model of compulsory participation of market agents (auditors) in professional non-profit organizations - potential SRO. NCE together with the heads of professional associations of audit firms and large business entities (including international) analyzed the costs and benefits of the introduction of self-regulation, which have shown the benefits of this institution.

Self-regulation in the sphere of activity of notaries and lawyers. MJ against the introduction of self-regulation in these areas at the moment, it does not object to consider this issue in the future. NCE proposes to consider the issue of self-administration by the results of ARV at a meeting of the Interdepartmental Commission.