Alternative way to promote national economy
Nowadays, world markets make their evaluation according to assumptions and gossip. Talks about Iran increasing their daily oil production without any base have an impact on declining of oil prices.
Nearly a month ago OPEC announced that they are going to cut one to two percents of their daily oil production but the final decision was planned to be made today, October 30. Since the announcement, even without final agreement, oil prices rose which influenced dollar fall against KZT for little. But today, OPEC countries could't reach an agreement and now, we see that dollar rose again for 5 KZT.
Iran wants to increase production by 400,000 barrels a day and Iraq says that they have keep pumping in order to have proper financing on fighting ISIS. It is very problematic for countries, like Kazakhstan when oil prices are unstable.
According to WTO oil forecasts, in 2018 due to decreasing surplus of oil the prices are predicted to be around 60$ per barrel, still it is very cheap in comparison with the trend of 2014, when a barrel of brent oil was nearly 120$.
Now, we have to make a strong decision on planning our economy, future. Even if our economy is dependent of oil we have to find an alternative to avoid economic problems.
Fall of oil prices are not major reason for crackdown of our economy and currency devaluation. We love importing goods from outside, love toyota, love apple products, but we have nearly nothing to export. We have nothing to offer except crude oil, raw materials. We sell them for cheap prices and then they return with expensive prices. When we keep importing things our money is going to the pockets of businessman of other countries. At the moment it is hard promote starting to process raw material and one of the only ways is promoting medium business.
In my opinion, the best alternative for today is to stop buying luxurious brends of other countries and start promotion of our national brands. Today, light industry is arising. National brands like @mukajan, @altyn_adam_made_in_kz (instagram pages)are doing great job, and the quality of their products can easily compete with international brands. Investment in national companies will help them develop in a fast rate, and in future, they may start exporting their goods, which would be a great help to our currency. By that way we can at least keep a significant amount of money in the coutry and help our country.
Overall, it is less likely that oil prices will recover very soon and in order to keep our economy more stable we have to start investing in our own national meduim business companies.
According to WTO oil forecasts, in 2018 due to decreasing surplus of oil the prices are predicted to be around 60$ per barrel, still it is very cheap in comparison with the trend of 2014, when a barrel of brent oil was nearly 120$.
Now, we have to make a strong decision on planning our economy, future. Even if our economy is dependent of oil we have to find an alternative to avoid economic problems.
Fall of oil prices are not major reason for crackdown of our economy and currency devaluation. We love importing goods from outside, love toyota, love apple products, but we have nearly nothing to export. We have nothing to offer except crude oil, raw materials. We sell them for cheap prices and then they return with expensive prices. When we keep importing things our money is going to the pockets of businessman of other countries. At the moment it is hard promote starting to process raw material and one of the only ways is promoting medium business.
In my opinion, the best alternative for today is to stop buying luxurious brends of other countries and start promotion of our national brands. Today, light industry is arising. National brands like @mukajan, @altyn_adam_made_in_kz (instagram pages)are doing great job, and the quality of their products can easily compete with international brands. Investment in national companies will help them develop in a fast rate, and in future, they may start exporting their goods, which would be a great help to our currency. By that way we can at least keep a significant amount of money in the coutry and help our country.
Overall, it is less likely that oil prices will recover very soon and in order to keep our economy more stable we have to start investing in our own national meduim business companies.
In future posts I am going to concentrate on promoting national business, talk about the point that Countries should promote business which is peculiar to them.
Sources: http://www.wsj.com/articles/opec-secretary-general-warns-against-delaying-production-cuts-1477748202
http://longforecast.com/brent/crude-oil-forecast-for-2015-2016-and-2017.html