----Explanation----
The comparison I made was only to highlight the important elements that can affect operations of company like Steppe in political and social reality of the country. I am trying to find undistorted expression of atmosphere in Kazakhstan in order to understand why certain ventures are successful while others fail. In this regard to me is not important how much and in which way company "A" invested their money in regard to company "B". When you strip this, you are left with what has been done in the process of actual operations. How those operations are viewed by the local government and therefore what response follows. Trying to connect action with the reaction beyond the build up of self rhetoric "what we wanted to" with actual results or development is the key here.
Furthermore the reasons of failure like lack of understanding own goals and capabilities are the internal issues of the company. The planning and than discovery of unseen problems or difficulties is one thing, not understanding of the conditions while evaluating the concept is another. What consists the external and most important issue is what comes next as the result.
Within this scheme both compared parties may find its place. The fact of dissatisfaction but lack of reaction in the full force, maybe once more distorted by size of the compared companies. The elements of public ferment as a background is not important and I have no concerns over it.
My conclusion about government's expectations is very simple. Perform, perform and once more perform.
Lack of performance, attractive and progressive solutions forming on the horizon combine with social stagnancy or worsening conditions around the project or reflecting on population brings this government to action. Political strength is build on masses and what you can put on your table every day. Kazakstan's politicians do not have to take chances having the natural resource kingdom under their feet with "let's hope it works". Everybody is welcome to try, but you must be fit to win.
The exceptional performance of oil industry is an example of meeting above criteria.
How does Steppe fit in?
The investment prospects are great. Possibilities are endless. New business, new jobs, happy masses and full plate. Maybe even a bit of the time credit at the start.
I do not think we should worry about Kazakstan's government at all. As much as in any other place on the globe, concern should be what this particular company can do in the future? what they have done so far and where are they right now?
If they will perform, do what they plan to do, SPE will be just fine.
Personally I believe that this course is in progress.
Regards
Robert |
