Azerbaijan, Baku, Dec. 3 / Trend N. Ismayilova /
The International Finance Corporation (IFC) recommends Azerbaijan to adopt a building code, co-author of the Doing Business report Svetlana Bagaudinova said today during training on the report's preparation methodology.
"The situation in the sphere of issuing building permits across the region is difficult, as the system that remained after the Soviet collapse is tangled," she said. "The problem is that Azerbaijan has no united building code."
According to the co-author, a "single-window" principle should be applied to the issuing of building permits and differentiated standards should be adopted based on risk management in construction, access to laws and rules, and online applications. Additionally, an institute should be created to improve the country's rating on this index and to develop the sector.
"In the United States, the acceleration of the required term for issuing building permits increased budget revenues by two percent," she said.
According to Bagaudinova, the process is complicated and fast reforms are impossible. Studying the best practices of Singapore and Hong Kong, the IFC believes that 5-6 years are needed to implement reforms in the building permit system.
Azerbaijan ranked 160th in terms of "building permits" in Doing Business-2011.
Azerbaijan ranked 54th this year in an international rating of improving entrepreneurial conditions by country. The report was compiled by the World Bank and the International Finance Corporation under the titled, "Doing Business 2011: Making a Difference for Entrepreneurs." The research involved 183 countries.
Azerbaijan ranked 54th this year in an international rating of improving entrepreneurial conditions by country. The report was compiled by the World Bank and the IFC under the title, "Doing Business 2011: Making a Difference for Entrepreneurs." The research involved 183 countries.
Bagaudinova added that Azerbaijan's position has fallen in the Doing Business ranking due to changes in the rating methodology. Nine indexes were used this year compared to 10 indexes last year, as the final hiring and labor force index is being improved.
According to Doing Business-2011, "Improving Terms for Entrepreneurship," Azerbaijan has held efficient reforms in 2009-2010 in issuing loans and tax payment. In particular, Azerbaijan improved access to loans by creating an online platform - a state loan register enabling financial institutes to offer and receive data about loans. At the same time, changes to the tax code promoted cuts in some tax rates, including profit tax, and also facilitated paying corporate income tax and VAT.
The top 10 leading reformers were Singapore, Hong Kong, New Zealand, the UK, the United States, Canada, Denmark, Norway, Ireland and Australia.
From the CIS, Kazakhstan ranked 59th, Belarus - 68th, and Russia - 123rd.
The Doing Business Report has been published since 2004, annually adding to the list of criteria based on which a country's rating is compiled. If in 2004 they were only five, the latest research was carried out in nine directions.
In Doing Business-2009, Azerbaijan was recognized as a leader in economic reforms.