Doing Business 2012: Azerbaijan goes up property ladder
Azerbaijan, Baku, Oct. 21 / Trend /
Trend Agency analytic centre head Ellada Khankishiyeva
Azerbaijan has improved its position in the Doing Business ranking as it moved from the 69th position in 2010 to 66th in 2011 for 'Ease of doing business' , the "Doing Business - 2012 In a more transparent world" , sponsored by the World Bank (WB) and the International Finance Corporation (IFC).
The annual report reads that Azerbaijan did not conduct any reforms on the viewed areas during the period between reviews. Also a new criteria was introduced since last year which is "Getting electricity".
Azerbaijan's rating on 'Starting business' was 18th position out of 183. Azerbaijan has been ranked 48th on 'Getting credit'; 24th on 'Protecting investors'; 81st on 'Paying taxes' and 25th on 'Enforcing contracts'.
It is also 170th on 'Trading across borders'; 172nd on 'Dealing with construction permits'; 95th on 'Resolving insolvency' and 173rd on 'Getting electricity'
Azerbaijan has entered the top 10 countries league with the most rapid process of registering property occupying ninth position. Based on the report, the time needed to register property in Azerbaijan is 11 days, the number of procedures that have to be passed is four and cost is only 0.2 per cent of the property value.
Innovation in the Azerbaijani legislation played a major role, as the country introduced new fees for expedited review and issuance of documents confirming property rights. The country has established a new unified register of real estate transactions which reduced the number of procedures to register property from seven to four. In addition, the State Registry was given the opportunity of accelerated passage of two of these four procedures that allows property to be registered in 11 days.
The procedure for obtaining building permits remains the most problematic area for Azerbaijan. This figure has a negative effect on the country's position and significant change has not been recorded in this area.
Companies must undergo 30 procedures over 212 days to obtain permission to build a property in Azerbaijan and the cost is a 335.2 per cent of per capita income. Based on the Azerbaijani State Statistics Committee, the nominal income per capita amounted to 2409.9 manat in January-September 2011.
In 2011, the country's position fell in five indicators. This ranged from falling three points on ' Starting a business'; 12 points on 'Dealing with construction permits'; two points on 'Getting credit'; four points on 'Protecting investors' and 7 points on "Liquidation of the company".
Azerbaijan showed its best results in terms of registering property, lifting by one position, taxation enjoyed a record 22 points, international trade is seven points and Enforcing contracts, two points.
In the new report, Armenia is ranked 55, improving its position by six stages. During the period between reviews Armenia conducted reforms in five areas; starting a business, obtaining building permits, getting credit, paying taxes, as well as the liquidation of companies.
Kazakhstan among the CIS countries occupies the first place rising to 47th place from 58th. This is followed by Armenia - 55 (61st in 2010), Azerbaijan - 66 (69 in 2010), Belarus - 69 (91 in 2010), Kyrgyzstan - 70 (67 in 2010 ), Ukraine - 152 (149in 2010 ) and Uzbekistan - 166 (164 in 2010).
However, Georgia leads the pack among the post-Soviet countries as it has managed to climb from 17th to 16th place in global rankings. Russia climbed four positions and is ranked 120, sitting between the Republic of Cape Verde (119th ) and Costa Rica (121).
Singapore, as well as other countries of the top five namely Hong Kong, New Zealand, USA and Denmark, held the top positions.