Action Plan for Improving Azerbaijan’s position in "Doing Business" was approved

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  • Action Plan for 2017-2018 years regarding the “Doing Business” was approved

    Azerbaijan approved the Action for 2017-2018 aimed at improving the country’s position in “Doing Business” Report.  Expert of the Center for Analysis of Economic Reforms and Communication (CAERC) Vusal Musayev told that the action plan may be estimated as logical outcome of Commission’s one year activity that created by the Decree № 2199 of the President of the Republic of Azerbaijan, dated July 13, 2016, related to "Further improvement of business environment in the Republic of Azerbaijan and position of our country in international ratings”. Action Plan approved by the Commission aims at taking targeted actions to improve business and investment enabling environment, increase country’s attractiveness for local and foreign investors and strengthen competitiveness in the country.”

    According to the expert, as part of the Action Plan, Azerbaijan plans to implement reform measures on 9 sub-indicators of the Doing Business index, which include legislation indicator, practical and administrative implementation indicators and macroeconomic indicators. The Action Plan focuses particularly on reforms areas such as: Dealing with Construction Permits, Getting Electricity, Registering Property, Getting Credit, Protecting Minority Investors, Paying Taxes, Trading across Borders, Enforcing Contracts, and Resolving Insolvency.

    When reviewing the indicators of the "Doing Business" report for previous years, it becomes evident that there are certain areas which need to be developed, both in the legislative framework and in the sphere of administrative application. For example, in terms of the indicator “Dealing with Construction Permits”, Azerbaijan ranks 127th in the Doing Business 2017 rating. The main reasons for this are the lack of a master plan or detailed plans for the territories, the participation of numerous individual departments in the procedures for issuing a construction permit, the lack of an electronic application, including the Single Window system and other factors. With the effective elimination of these difficulties will play a decisive role in improving procedures in the construction sector."

           Dr. Vusal Musayev stressed that similar difficulties exist in other areas, for example, in connection with power supply networks. For example, the introduction of the Geo-information System (GIS) when a map of electricity distribution systems was created, the establishment of a shutdown limit in order to improve the mechanism for power outages, and the elimination of a number of difficulties related to the establishment of compensation to consumers and fines for electricity suppliers for disconnections will contribute to the fact that our country will join the ranks of the advanced countries of the world on these indicators.

    The expert of the CAERC believes that the continuation of the activities within the Action Plan not only in connection with the indicators ranked in undesirable positions of of the "Doing Business", but also indicators on which Azerbaijan traditionally occupies high positions (registering property, paying taxes, etc.), should be regarded as a purposeful step. The plan of measures is aimed precisely at eliminating the above-mentioned difficulties and subsequently improving the achieved indicators. "Effective implementation of the Action Plan in a complex form will play a positive role in the subsequent development of the business and investment enabling environment of the country as a whole, while also increasing its attractiveness for local and foreign investors, along with the progress to be achieved in Azerbaijan's positions in the reports of international rating organizations."


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