IFC to Develop Strategy of Reforms in Business Licensing

Business Materials 11 October 2008 11:02 (UTC +04:00)

Azerbaijan, Baku, 10 October / Trend , corr I.Khalilova / "The International Finance Corporation (IFC) plans to develop strategy of reforms in the sphere of business licensing for Azerbaijan," said Boris Divyak, head of project on improvement of business climate in Azerbaijan.

Presently, active work is conducted with the Ministry of Economic Development to get permissions and licenses in a single list as the project is aimed at creation of single list of register of permissions and simplification of procedure of issuing permissions, he said.

Development of common rules of issuing permissions and withdrawal of licenses is expected to be carried out within the frames of these measures.

"It is very tedious work. It will take approximately a year to draw up the list of licenses, operating in Azerbaijan, but it is possible to prepare the lists in a shorter term if the governmental agencies are interested," Divyak said.

Collection of this data is planned to be completed in mid-2009 to draw up a single list of permissions by the end of 2009.

Work is conducted with 30 state bodies to receive the list of permissions. At the beginning of next year, the meeting is expected to be conducted in regions with management of enterprises and with about 30 heads of enterprises and representatives of business circles to define the list of permissions, which they use.

Thematic workshops are planned to be conducted for companies which work, for example, in the sphere of restaurant business and in other spheres, to define the spheres which require permissions and sanctions.

"Our position is to limit a number of structures to receive permissions," Divyak said. Experience shows that they are required only for spheres, where there are ecological risk and health hazard, as well as for safety of the country and use of natural resources. All the other spheres do not require licensing. World experience shows the licenses are mainly issued permanently, and permission has limited validity period.

He said there is no need for licensing of audit activities. Availability of the large list of licensing and licensing system is inherent in developing countries and it is heritage of previous regime.

Presently, there are over 50 kinds of licensed activities in Azerbaijan.