Azerbaijan improves position in Doing Business - 2015 ranking by 8 points
Baku, Azerbaijan, Oct.30
By Azad Hasanli - Trend:
Azerbaijan improved its position in the annual ranking of Doing Business-2015 of the World Bank and the International Finance Corporation by 8 points, said the authors of the report Oct.29 during a video conference held in Baku office of the World Bank.
They said that a new method of counting, called the "principle of the remoteness from the forward line" (an index of how far the legal regime of any country is from the best indicator on a particular parameter) was applied in the rating this year.
For example, the period of registration of new business recorded in New Zealand is the best indicator on the criterion of "the ease of starting business". Therefore the index of New Zealand was taken as "the forward line" for other countries.
The previous year indexes have been re-calculated using the new method in order to be able to make a comparison, the bank representatives said.
"For example, Azerbaijan ranked 88th in 2013 versus 80th in 2014, according to the new method of calculation," the authors of the report said. "The index of Azerbaijan on the remoteness amounted to 61.97 points in 2013, and the figure is 64.08 points in 2014, according to the new method of calculation."
Talking about the changes in the calculation of the rating, the bank's representatives said that the process of updating the methodology will take 2 years and changes in the following 5 criteria are expected in the next year: obtaining construction permits, connection to the power supply system, registration of ownership, tax payment and contract enforcement.
Azerbaijan's ranking consists of the following indices: establishing enterprise business - 12th, tax payment - 33rd, international trade - 166th, registration of ownership - 10th, obtaining construction permits - 150th, lending - 104th, insolvency settlement - 94th, contract enforcement - 31st, protection of investors' rights - 51st, connection to the power supply system - 159th.
Doing Business - 2015 report is compiled 12 times and covers 189 countries. The regulations contributing or hampering business development throughout the cycle of their activity, including the establishment of the company, doing business, the implementation of foreign trade activity, tax payment and investors' rights protection are examined there.