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OIL versus KNOWLEDGE!
Hi All!
Firtly, let me introduce myself. My name is Ruslan and I am from Kazakhstan. (I hope your knowledge about this part of the world is beyond just having basic geographic information, since you all seem to me to be the good representatives of intellectual part of 'US Business thinkers', if I can call you that.) I am 22 years old, and at the moment study MBA program in one of Parisian universities. In addition to that, I make internship in INSEAD research project department as research assistant. (Just to give my brief background)
Nevertheless, I would give some information about my country. Kazakhstan, is a former Soviet Union Republic, with a population of about 15 million citizens and the territory, which is equivalent to 5 Frances, or to be more sound, the whole Western Europe, uncluding Scandinavia. The vast natural resources, such as Oil and Gas, Coal, Ore, and other rents, in some of which, Kazakhstan holds top positions in a worldwide natural resource wealth. (a little quote) "Kazakhstan has Central Asia's largest economy. Kazakhstan's nominal gross domestic product (GDP) grew by 20% in 2003, to $29.0 billion, resulting in a per capita GDP of $1,500 (roughly comparable to Guatemala and Jordan). Economic growth in recent years has been propelled by Kazakhstan's growing petroleum industry. The oil sector comprises roughly 55% of the country's state budget revenues. Several economic research efforts conducted in 2002 and 2003 highlighted the growing danger of possible over-reliance on the oil sector, with some analysts predicting that without more investment into the country's non-oil sectors, Kazakhstan's economic capacity will be strained by 2007, thus stifling growth in the next decade. In an effort to reduce Kazakhstan's exposure to price fluctuations for energy and commodities exports, the government created the National Fund of Kazakhstan. As of the end of 2003, the National Fund held $3.6 billion. " http://www.eia.doe.gov/emeu/cabs/kazak.html
So what I am driving to? (is that a correct phrase)
As I mentioned already, I am RELATIVELY young, but I am striving to be a successful businessman in the future. I am not using term 'enterpreneur' consiously, since I am not trying to invent bicycle, my aim is more focused on effort to adapt developed economies practices in my native country emerging economy. There is a lot to be done, in order to be competitive in the world market, and I understand that it is not 'a piece of cake'.
To be more specific, I am looking forward to opening my own investment fund, with the capital structure half foreign, half local (the rationale is simple: companies with foreign capital are less likely to be expropriated, so it is like a cushion, to avoid risk) As a matter of fact, there are already two investment funds, but they started to operate only 4 months(!) ago. The problem with those funds is in their strategy: It is rather for money laundering, than to really make competition to bank saving programs.
To close, some figures, the inflation rate is 6% (source: national bank), interest rates for loans is in range of 12-24% (depending on riskiness and period etc.), while i-rates for deposits varies between 4 to 8% (!).
My question is how should I or even should I try to open an investment fund in my country?
I hope you will excuse me for my spelling, since English is only my 4th language.
Looking forward to receiving any comments. Thank you in advance.
Ruslan
Hi All!
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