In the News
Knowledge. Integrity. Results.

Tomorrow’s Exit Strategy Should be in Place Today – The Already Inevitable Bailout Packages Should be Accompanied by a Viable Market-oriented Exit Strategy

Kazyna's Alexander Mirtchev Calls for Balanced Government Involvement

WASHINGTON -- Today's market increases and the announcement by the U.S. government to undertake a major bailout plan to restore confidence in the world financial system, prompted a rare comment from Alexander Mirtchev,

Chairman of the Board of Directors for the Kazakhstan Sustainable Development Fund, Kazyna. Dr. Mirtchev provided thoughts on what the suspension of an unfettered free-market in the United States could mean for emerging economies, including Kazakhstan.

"There are dire predictions being made about the impending meltdown of emerging markets. The predictions are based on the assumption of a steep decline in commodity prices, combined with a liquidity squeeze that, taken together, will wipe out the reserves of transitional market countries," said Dr. Mirtchev, who is also the founder of the Washington-based consulting firm Krull Corporation.

He continued: "Emerging markets are all different. It is just a label that does not describe the reality of an economy. Emerging markets have experienced declines and weathered many storms and years with no reserves. In the case of the Kazakh economy, it depends a lot less on financial schemes that need to be unwound than the so-called mature markets. In times of trouble, the people of the emerging markets will work harder, their commodities will be put to good use domestically and in the region, and their companies will survive, restructure and come out stronger."

The mission of Dr. Mirtchev's work at Kazyna is to improve the competitiveness, stability and diversify the national economy of Kazakhstan, as part of the overall market reforms agenda. His comments reflect the unique ability of the Kazakhstan economy to withstand a downturn in world financial systems.

"Each country has different approaches to dealing with market and financial crises. For example, Kazakhstan is introducing an "Assets Stabilization Fund" to address specific problems of the banking sector caused by the financial crisis," Dr. Mirtchev said. "Such government measures may not be right for other countries, but some form of government supervision must take place, as markets, not to mention market players, sometimes do not stick to what is in the textbooks."
As an individual who grew up under Communist rule in Bulgaria and who later came to excel in the free-market of the United States, Dr. Mirtchev added a personal note to involvement by the government in the open markets.

"Irrespective of the fact that dramatic market movements have immediate impact on personal lives, it is undeniable that the market should have its final say. Drastic volatility and market turmoil have their underlying rationale in market principles, which cannot be ignored. Without being too interventionist, governments should embrace the reality that they have certain responsibilities towards how market players operate, in particular, the rules of the game, and how to prepare for and mitigate the possible social fallout, keeping in mind the Law of Unintended Consequences.
For more information, visit

About Krull Corporation
Krull Corporation is a Washington, DC-based advisory and project management firm with expertise in dealing with economic growth, industrial expansion and restructuring issues. Founded by Dr. Alexander Mirtchev in 1992, Krull Corporation capitalizes on his extensive professional experience in market developments and reforms and focuses primarily on emerging and transitional economies. Over the years, the firm has provided its clients with outstanding strategic guidance and professional services in various areas. Combining a unique blend of global reach and understanding of local markets, Krull is able to consistently produce high quality results and returns.