ГОСУДАРСТВЕННОЕ  УПРАВЛЕНИЕ/2.Современные технологии управления.

 

Stavbunik E.A., Master in Public Administration

Karaganda Economic University, Kazakhstan

 

GOVERNMENT AND BUSINESS AS THE KEY ACTORS OF MODERN SOCIAL COMMUNICATION IN THE REPUBLIC OF KAZAKHSTAN

 

The human society during its historical development has called into being two very interesting phenomenon that is State and Market. The State and the Market act as a product of different causes, initially deal with different spheres of life, over the time their paths crossed and goals and tasks became closer, and the results depended on joint efforts and activities. 

Level of development of the modern society is governed by the possibilities of coordination of the Market and State Forces, the ability of combination and complementarity of these forces.  

At the same time no doubt about the fact – these elements are relatively independent structures, they have their own mechanisms of influence to the society development, which show different spheres of influence, specific functions, aims and goals.  

Last decades were marked by the deep transformational changes at the economic systems which embraced countries of post socialism as well as emerging countries of Asia and Latin America.  These changes mean transition from planned economy to the market economy.

Any economic action taken by the business, as well as any measures taken by the state in various fields of national economy, connected between each other by explicit and implicit factors, causes, relationships.

In general, the history of human society knows three forms of relations between the state and the economy:

1. State directly controls the economy. It turns out nationalization of the economy and of the consequences can be found by referring to the history of the Soviet economy;

2. Splicing of government and business. This form has a different species:

a) In the form of state patronage (protection of patronage by customer loyalty). By this form the state bodies include representatives of business. This kind of interaction between the state and the economy is sometimes referred as: patron-customer form of business-government relations;

b) Symbiotic form of business-government relations. The mutual penetration of representatives of the business elite to the government and conversely;

в) Oligarchical form of the business-government relations.   This is when the business structures are strengthened and go beyond the scope of State’s client and stay on one horizontal level with former patron. Former client makes Government to consider with him, sometimes even patronize the Government.

3. Business-government relations that are based on the Science 

This form is very hardly to finding the way to governance, but ultimately all alternatives give way to this form of relations.  It is very important for the Government to know the limits of intervention to the economy.  This from determines the roles of subjects’ interaction: subjects, which represent business interests, start to arrange the rules and charge the control over the abidance the rules.

Here are fixed obligations of the parties: the State guarantees the business enabling environment and production of public goods that are necessary for functioning and development of the State, such as industrial, social and institutional infrastructure; business incurs obligations to pay taxes and to reproduce used economic resources.  

To ideal model of relations national model is countered, which reflects the common features of this interaction in a particular national market economy model (liberal, social and corporate, corporate paternalism).  

It reflects the earlier history of the country, the actual practice of state-building and business.

So, fully formed during the historical development of the certain country the ideas about "justice" determine the objectives of economic agents and their relation to the variations of distribution of ownership rights to economic resources between private agents, state and municipal agencies.

All this issues are modifying the roles of power and business in their relations and interactions, as well as the volume and character of their mutual liabilities

Along with the ideal and the national regulatory models it can be distinguished normative model of interaction between business and government, emerging from the specified in the country formal rules, regulations and application practices, as well as opposing to this model real institutional model as a set of prevailing in a certain area formal and informal norms, rules and practices of their interaction.

According to the Article 1 of the Constitution of the Republic of Kazakhstan from 1995 year, the Republic of Kazakhstan declares as a Social State. Despite the fact that the current economic situation does not allow to say that Social State was established in Kazakhstan however the fact of the proclamation of the Republic of Kazakhstan as the Social State and decisions that were made due to this directions are saying that interest and needs of citizens are the main link in the chain of transformations of the social life [1].

The development of modern Kazakhstan as a democratic, low-governed and social state depends not only on the relationship of business and government structures, but also on the further development of civil society.

Civil Society is a society where main acting person and subject of events and relations is an individual with a system of needs, interests and values. 

This concept also refers to the existing public relations: political, economic, cultural, national, religious, family, and others, also it shows the diversity of private interests.

Civil society reaches of high level of development only in the framework of democratic political system, where the relations between State and civil society are building on the base of General Public Agreement  

Democratic procedures in the Civil Society are based on the public right to assess the quality of the Government and on the mechanisms of the Society’s impact on Government [2].    

The aim of the Civil Society is a defense of citizens’ interests, representation of citizens’ interest in the face of society and authority, public control of Government and external and internal policy [3].

Contemporary relations between the participants of the welfare state are actualizing some principles such as social partnership and social responsibility of business. We consider that the social partnership is a cooperation between the state and social agencies (trade unions, parties, movements), but in the framework of the market structure business are involving to the social partnership.

Entrepreneurs in developed countries involved in the resolution of many social problems, but in Kazakhstan such activities do not become systematic.

Thus social partnership is an important mechanism and important part of the development of the social state and social policy. 

Social partnership, as a special type of social relations, expresses essential characteristics of the welfare state, the main principle of which is the balance of the social groups.   

          The social partnership in the social state, as a special mechanism in regulation of the labor relations, is aimed to the realization of the principle of equal negotiations, to getting compromise between employee and employer. Furthermore, it promotes reduction of the risks at social and labor sphere. Welfare state as a mouthpiece of the social interests, determines the social partnership as a main element of its ideology, a main condition of political stability of society and economic progress.     

Social partnership considers as the way to improve welfare state. During the collective negotiations, mutual consultations, and workers’ participation in management happens mutual enrichment of the participant of social dialogs, increasing of the democratic level and development of the civil society.       

The main task of the welfare state, as one of the partner, is a foundation of conditions for interacting and implementation of civil and political rights without any intervention and pressure on entrepreneurs and representatives of civil society.

Also the aim is an establishment of frameworks and rules in the limits of which social partners stay independence. Improvement of the Government representation in the social partnership system should be considered in the framework of improvement its functions and interests as the social partner.            

At first, the Government is a large employer and this means existence of the social responsibility policy in the system of labor relations. The state, as the largest employer, should have a significant impact on the socio-labor relations in general. This also applies to income policies, job creation, and employment programs. For example, the state should use the public sector as a benchmark for the private sector in the creation of decent working conditions, wages and incentive systems, social protection of workers.

Second, the state acts as guarantor of important civil rights that are necessary for the effective functioning of the social partnership system, realization workers, trade unions, employers and their unions rights. The main functions of the state, in this case, are the function of organizer and coordinator. The state develops the basic rules, norms and mechanisms of parties’ interaction; forms the procedure of determining the minimal labor standards (minimal wages, social benefits and guarantees). Therefore the state can widely use circumstantial economic regulators in the form of social norms and regulations. For employers these regulators are investments, favorable taxes, loans, public contracts, licenses, free trade zones, etc. For employees these regulators are guaranties against unemployment and additional measures of social protection.

Thirdly, the state, as the full member of social dialog, acts as a part at negotiations and consultations, but also can be considered as independent regulator of the social partnership system and the labor relations at all. Three-party negotiations lead to three-party agreements, where on the one hand each party specifies obligations of each other, and on the other hand parties develop basic directions of the economic, industrial and social politic in the country. Consultation, in contrast to the negotiations, allow to the state, which is represented by the government and local authorities, to realize their own preferences.

Fourth, one of the most important functions of the state as a social partner is a function of an arbitrator, mediator and conciliator. Collective conflict management through the settlement arrangements and arbitration procedures are solved under the state auspices.    As the experience of Western European countries and Japan shows such administrative procedures are more effective than trial, because does not lead to prolonged and undesirable consequences, in particular, to strikes.

Fifthly, the state in the social partnership system performs the function of organizer. Implementation of this function requires legislative recognition of arrangements that were reached by partners through social dialogue. And for the state and society as a whole, it is important to create conditions for the development of such arrangements and to maintain control over their observance.

Sixth, the most important function of the state is the role of coordinator. Value of this function is enhanced by complexity and multilevel nature of the agreement in the social partnership and by inequality of regions’ development in Kazakhstan. The variance of prices, the economic potential of different regions, and the differentiation in wages leads to problems in the implementation of the agreements. Consequently, on the base of coordination such agreements may provide an unified procedure for the salary payment, the permissible level of unemployment, specially designed activities to implement the state policy of employment, programs for retraining and internships.

Seventh, it is an informational function. In our opinion, to the state is belongs a leading role in promoting the ideas of social partnership through the media and public opinion.

So, the state in the social partnership should acts as the guarantor of fundamental rights and freedoms, as the arbitrator in the conflict situations at workplace, as an organizer and coordinator of the negotiating process. The State also intended to create the conditions for a civilized system of social partnership, forming of legal and regulatory framework.

Currently representatives of business and entrepreneurship play an active role in coordinating the interests of employers, employees and the state. In Kazakhstan, these include "National Union of Entrepreneurs and Employers of Kazakhstan «Atameken», Forum of Entrepreneurs of Kazakhstan, Union of Chambers of Commerce of the Republic of Kazakhstan.

Also it includes large Kazakh associations, which prove oneself by results:  

1.            Central Asian Association of Entrepreneurs

2.            Union of workers of small and middle business of Eastern Kazakhstan

3.            Association of furniture and woodworking industry;

4.            Almaty Association of Entrepreneurs;

5.            Association of producers of milk and milk products;

6.            Entrepreneurs Association of Astana;

7.            Entrepreneurs Association Karaganda region;

8.            Association of Business Women of Kazakhstan.

The most active business associations in the regions:

1. Akmola, Jambul, Mangistau, Atyrau , Kyzylorda – Association of Business Women of Kazakhstan ;

2 . Aktobe region - the Union of Industrialists and Entrepreneurs;

3 . Almaty region - Entrepreneurs Forum of Taldykurgan ;

4 . The East Kazakhstan region – the Union of Workers of Small and Medium-sized businesses ;

5 . Karaganda region – Central Kazakhstan Association of Entrepreneurs;

6. Kostanay - Entrepreneurs Association of Kostanay region;

7. Pavlodar region – Entrepreneurs Forum Pavlodar region;

8. Northern Kazakhstan region – League of Entrepreneurs of North Kazakhstan region ;

9. South Kazakhstan Region – Public Association of peasants and farmers “Sharua”;

10 . Almaty - Almaty Association of Entrepreneurs;

11. Astana - Akmola Chamber of Commerce and Industry [4].

Socially responsible business – this is one of the fundamental values ​​of a civilized economy and broadly. Its main role is active participation in the financing of the social sphere in addition to the social costs of the state.

The purpose of Entrepreneurs (Employers) in the system of social partnership is a protection of economic rights and interests of its members in the field of social and labor relations.

Associations and employers in the social partnership system must perform the following functions:

1. Protecting the interests of its members both in the domestic and foreign markets.

2. Representation business in social and labor relations and the development of guidelines for the development of social and labor sphere.

3. Synergy between business and the state in the developing of key policies in the social and labor issues (issues relating to pay and working conditions, employment, job creation) .

4. Conclusion of collective agreements, control over their implementation.

5. Settlement of labor conflicts and conflicts with unions.

However, in practice, there are problems and negative trends of entrepreneurs’ representation as the main employers in the social partnership.

First, lack of mobilization and lobbying capacities of many business associations.

Secondly, lack of institutional representation of employers' associations in the social partnership.

Thirdly, entrepreneurs are not ready to have an additional responsibility and take care about employees. Researches show that the main reasons of the low activity for most employers are related with the difficult economic situation and low activity of the workers themselves.

Fourth, there is an insufficiency in the development of entrepreneurs’ priorities system as agents of social partnership and social dialogue. Practice confirms that in the business development among other priorities economic objectives are dominated. 

Fifth, insufficiently developed infrastructure also has a negative impact to the development of social partnership as a whole and to the representation of employers in particular (institutions of social dialogue, information support, standards and procedures, generally accepted principles of cooperation, skills) [5].

Another important aspect of the social dialogue and social partnership are in general unions. As part of civil society they are intended to represent and protect the interests of employees. In this case trade unions are the most massive public union workers of a particular industry, professional group for the protection and representation of their interests in the field of labor and social-labor relations.

Today, Kazakhstan has the most widespread and representative organization of workers of the country. It is the Federation of Trade Unions of the Republic of Kazakhstan, which brings together about two million union members. It is volunteering and includes 26 national sectorial trade unions, 14 regional associations and Capital trade unions – union of Astana. Their structure includes more than 17,000 primary, more than 530 city and district, 190 regional trade union organizations. Federation of Trade Unions of Kazakhstan comes from the fact that a reputable and strong nation can be built only on the basis of social justice.

One of the most important function is a participation in social partnership in the Republican tripartite (government representatives, employers and workers) Commission on Social Partnership and the regulation of social-economic and labor relations.

         The unions are differing among many public organizations in two main features.

The first feature is the mass workers' union, which is also most approachable. There are no any restrictions and special conditions for entering to the ranks.

The second feature is that this organization by goals, objectives and interests are mostly close to the economy and social and labor issues. Because, ultimately, the application area of socio-economic interests of the individual is a work activity [6].

Thus, the successful functioning of the modern welfare state is possible only on the basis of a highly effective and socially-oriented economy.

In economic policy, the welfare state must combine governmental regulations measures, measures of encouraging competition and the development of personal initiative of citizens to ensure their own welfare.

In the political sphere it is required to keep consensus of the main political forces regarding the main goals and objectives of the society, the activities of the existing system of social institutions. This allows you to ensure continuity of social policy in cases of democratic change of ruling parties, governments and senior government officials.

The spiritual atmosphere in the social state should be characterized by a strong sense of citizenship, social solidarity and humanism.

The ultimate goal of social development of the welfare state should be a statement of the principle of social justice, which in this context means:

1. Firstly, guarantees for everyone to work according to his abilities and qualifications, labor, depending on its quality and quantity, the possibility of self-sufficiency and improve their well-being;

2. Secondly, the creation of equal opportunities to all members of society through the education system and social support; transition from the political and legal equality of citizens to their social equality;

3. Third, guarantees by the forces of government and public institutions acceptable standard of living for individuals who do not have the opportunity to work independently and maintain their standard of living [7].

References:

1.     Кубеев Е.К. Современные тенденции развития Республики Казахстан как социального государства в свете новой Концепции правовой политики // KarSU Bulletin, № 1, 2011.

2.     Исламбеков А.С. Проблемы «Концепции развития гражданского общества в Казахстане на 2006-2011 годы»// 20 лет независимости Республики Казахстан в свете формирования гражданского общества, 2011, г. Астана.

3.     Concept of the Civil Society development in the Republic of Kazakhstan to 2006 – 2011 years.

4.     Структуры поддержки предпринимательства. Режим доступа: http://www.damu.kz/127

5.     Гага В.А. и др.. Экономика и социология труда: (социально-трудовые отношения): Учебник - Томск: Изд-во Томского госуниверситета - 340 стр., 2008.

6.     Федерация профсоюзов Республики Казахстан. Режим доступа: http://old.vkp.ru/about/r_kazah.html

7.     Жаканова М.Е., Кожахметова Т. Казахстан – социальное государство. Режим доступа: http://www.group-global.org/ru/lecture/view/7908.