SPEECH

Of Tokmok city mayor Sulaimankulov A.D.

On International forum on LSG problems

(29-30 of June 2006 , «Alaarcha-4»)

Dear ladies and gentlemen, participants of International Forum!

I guess, there is no necessity to underline one more time actuality and timeliness of discussed problems today, especially for us Kyrgyz citizens, where more than 10 years System of local self government forming and developing, unfortunately with big difficulties.

As you know, bases of our System of local self government laid the foundation in Chapter 7 of acting Constitution of Kyrgyz Republic and fastened by whole line of legislative acts, including Law “About local self government and local state administration”, “about financially-economical bases of local self government”, “About main principles of budget law”, “About municipal service”, and also by many Decrees of KR President, Resolutions of republic Government and branch normative acts.

But, line of most important these Laws positions and normative legal acts today just not functioning or interpreting on different levels of state administration and act halved at that quite often on principle of original Kyrgyz mentality: “want to execute, want to forgive…” So for example consummation of principally important resolutions of Law about financially-economical bases of LSG, accepted in 2004, has been postponed as if with a wave of a magic wand, first till 1 of January 2006, and then 1 of January 2007, and what will be further – only God knows…

In this connection I would like to briefly share with you quite difficult and relatively fresh experience of LSG forming in Tokmok city, with what problems we faced and what endured, and also bring in discussion order some suggestions on further development and strengthening of LSG on places.

As known, on base of march (2003) KR Law about new statute of Tokmok city, further Decree of KR President about authority bodies and administration of Tokmok city and corresponding Resolution of KR Government from 4 of August 2003, in second half of 2003 was started forming in Tokmok city System of local self government. Elections of new City Council staff were held, on base of former Town Council created City administration of town and in general formed city Services and subdivisions. And finally from 1 of October 2003 city received confirmed normative deductions and independent budget.

At the same time, from the very outset, step by step, we were aspire to fill real content laid in foundation in legislation basic principles of LSG such as “self regulation, self provision and self financing”…truly not always successfully, and often with great conflicts, especially in matters of functions differentiation and authorities between state administration bodies and LSG, selection and allocation of staff, distribution of financial means and so on.

All these expenses and problems under forming of LSG in Tokmok city appeared and became more acute, on my view, first of all because tenacious unwillingness of parent bodies of state administration, some Ministries and Departments to give city independence in solution of local meaning matters…subordinate at any price, to lead and to indicate, to distribute and so on.

You will not believe…, but it came down to that after depletion of all conceivable and inconceivable, official and other examination (right up to concealed video filming…), compelled some of our workers every day and privately report to “up” about all what happen in City administration.

All this of course in general we endured, though separate set-back of that times continue and until now…But today we can say about some results of this difficult way. Generalized in total 2, 5 years of LSG forming and development in Tokmok city could be reduced to following:

1). We could for this time overcome stand for many years firm stereotype of authority aversion from direction of people and create SYSTEM of joint with people work of City administration and City Council, based on EVERYWEEK meetings and reports city Mayor and corresponding deputies of City Council to people, directly to residential area, graphics and place of holding that beforehand publishes in press, and people became accustomed to this.

These meetings as a rule are holding in informal atmosphere, without any conventions and orders, where people can raise any question and problems. Such reports on this day became only 83 and we finished seventh on account of meetings on parted by convention of 11 city territories districts. In this meeting about 16, 0 thousands people took part, raised and discussed 689 questions, 591 from which are solved, the rest are in realization stage, or entered in our perspective plans.

In a word, today we can ascertain, that people are actively and directly joined in process of developing and realization of big and small matters of socially-economical development of city, and all that was done in city on this day devised not by us, but realizes by orders and wishes of people.

That’s why we consider that owing to reached on today to level of self organization and also coordinated and joint activity of 47 quarter committee, united in 8 TSLB (territorial self government bodies) and 27 condominium (association of house owners) where City Council and City administration perform as not leading and commanding subjects but as business partner and coordinating bodies, we could in some extent realize on practice such basic principles of LSG activity as “self organization and self regulation”

2). Fro last 2,5 years we achieved of definite results and in “self provision and self financing”

of city. At the same time, from the beginning we understood that fundamental base for this could be served dynamical growth and creation of full market of ground area and objects of municipal property. That’s why we emphatically and single-mindedly worked in these directions on base of ever year developing concrete programs.

So, by our prognosis in this year economic of city will grow in comparison with 2003 in 1,5 times, and growth of manufacture will increase on 185,7 percent. At the same time without calculation of showings of Glass works, manufacture of city will grow more than 3,0 times

All this gave us opportunity, following determined normative of deductions in republic and region, to raise budget of city from 21, 3 mln soms in 2003 to 78, 4 mln. soms in this year 2006. At the same, real addition to city budget already gives us created and arranged market of municipal property and ground area.

3). Due to realization on practice principles of LSG and self organization of city community, and dynamical growth of economic, today appeared opportunity to solve some matters of socially-cultural meaning and construction of city.

For example a few examples. At the expense of city budget we could practically to double national cares about privilege people. So if in 2005 on these aims were directed from republican budget 4,5 million soms then in this year the sum will be directed from national budget. In this year we started to realize every month money payment to 579 especially needed families on additional grocery rations and treatment, parents of pupils wholly excused from fee on school keeping. Already second year teachers of city receive 15 % additional to salary, payment on communal service and free ride.

For past 2,5 years due to serious holding of Maecenas and sponsors, we could asphalt central streets of city and restore highway lighting capitally repair and again give the life to Palace of culture, to build and to slip 2 nice sport complexes, Children city and a lot of other.

Such, dear participants of international Forum, main, on our view totals of implantation in Tokmok city system of LSG, its merits and demerits. And we are sure that future of national structure of our country exactly of LSG, as in all civilized world

At the same time, we think that became time when we need to give new impulse of LSG development to enter definite corrects in our practical acts in legislative acts of republic. Exactly in this we see basic tasks and missing of such representative international Forum, participants of which we are.

В контексте изложенного позвольте представить вашему вниманию некоторые предложения по дальнейшему совершенствованию МСУ.

1). Before all we imagine urgent to reach strict following of Chapter 7 (“Local self government”) acting in Constitution of KR, and also execution of already accepted KR laws in this area, in part of strict differentiation of functions and authorities between bodies of state administration and LSG, having aim of most whole exception of factors of intervention in LSG matters.

I think, it would be possible in this aims for beginning to develop and fasten by Decrees of KR President, or Resolutions if KR Government line of simple and clear under law and normative acts, regulating these questions, that would except opportunity of ignoring or high handle interpretation of already acting Laws on various levels, but not to take great interest of all kinds empirical Programs of decentralization and LSG development.

In perspective of course already is obvious, necessary to realize radical reform of itself system of state administration as in vertical so in horizontal meaning significant and real shortening excessive links of too much bulky and far unjustified for our small republic huge state machine.

2). We think it is necessary as soon as possible remove having non joint and contradictions in already accepted and acting Laws of KR about LSG. So for example, separate regulations of KR Law “About budget law in KR” last redaction has quite flowery and difficult formulations by principle “to ours and to yours …” and not join with principally important for us regulation of KR Law “About financially economical bases of local self government”

And of course, obviously needs in finishing to necessary extent of condition our long suffering and more than once changing in somebody’s sake ambitions Law about local self government especially in part if direct defense of rights, functions and authorities of LSG subjects.

3). It’s impossible not to say few words about development problems and execution of local budgets. As you know our Tokmok city first of LSG subjects undertook courage and in the end of 2004 accepted budget on new principle and achieved of exact results. And this was highly appraised by Kyrgyz Republic President K.S. Bakiev in his speech on republican meeting of LSG heads on 10 of march 2006.

However its difficult for me to tell you about peripeteia and hardships that we endured from that days. It is also endless , frequent and need to tell directly not rare illegal examinations, on the same matters of Calculating chamber, Office of Public Prosecutor and other juridical bodies, and also lots of commissions and so on, having the aim to find discreditations and to put us in our place.

God be praised! We endured this. And want in this connection to express thanks to city community of exist Minister of economic and finance AKYLBEK USENBEKOVICH JAPAROV for his support and professionalism, constant striving to new and modern approaches to budget policy

At the same time dear AKYLBEK USENBEKOVICH having your participation in work of this Forum I would like to give an account my point of view on the occasion of suggested by your specialists new principles of inter budget relations in 2007.

As known on have been taken place on 16 of june 2006 meeting in Ministry of economic and finance on this matters was suggested two level scheme of forming and executing budget on 2007 and it is nice suitable for high value.

However there was already sounded, that under forming of income part of local budgets abolished to “zero” normatives of deductions from common republic taxes for cities of region and district significance, and also Ail Okmotu. And instead of it, explained in verbal form, will be allowed to LSG subjects aligning grants.

In this connection I would like to reduce you that acting normatives of deductions on Tokmok city determined on next scheme: a) 65% of taxes from income are deducting to republican budget; 10%-to Chui regional, and 25 % stay in city budget that makes 51,2 percent from all income part of city budget; b)from income taxes deduct in republican budget, 15% - in regional and 20% stays in city budget that makes 24,4 percent from all common taxes of city. And these two articles have decisive importance.

By prognosis on next 2007 year joint incomes of city budget under saving of acting normative deductions, expecting on level 128,9 million soms under the most minimal calculation need of city not less than in 100,0 million soms.

Coming from above mentioned would ask You to examine opportunity of saving now acting normatives of deductions fro you, and this would be real support to LSG on places. In favor of such approach say and following arguments:

1). Under suggested scheme of forming of local budget income part, when deductions from national taxes change by grants, in many respects lose stimulating motives on places in plan of purposeful and persistent work on economic development

2). Covering to 2/3 income part of aligning grants automatically would come to intensive centralization of country budget, at that, to a great extent, then in present time.

3). Wishes and recommendations to develop local taxes and dues, of course, fair and we will do it. However, as showed practice of last 2-3 years, potential of these income articles on now acting legislature not exceeds ¼ of total sum of budget income part.

Such, dear participants of today meeting, main thesis, that I would like to bring to your notice. And if they though in some measure help under developing of common recommendations pf Forum, I will consider that my task is finished. Thank you for attention