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  • Improvement Of The Business Environment As A Basis For The Economic

    IMPROVEMENT OF THE BUSINESS ENVIRONMENT AS A BASIS FOR THE ECONOMIC POLICY
    Srbuhi Vanian

    http://artsakhtert.com/eng/index.php?option=com_content&view=article&id=605:-improvement-of-the-business-environment-as-a-basis-for-the-economic-policy&catid=6:economy&Itemid=18
    Thursday, 29 March 2012 05:55

    At the recent press conference, Minister of Economic Development Karen
    Yesayan, highlighting the role of private companies in the economic
    development and the state-private sector relationship, presented the
    steps taken by the Ministry for improving the business environment.

    A part of the works envisaged by the Ministry of Economic Development
    for improving the business sphere will be carried out within the
    Business Environment Improvement Program, about which we asked to
    tell Deputy Chief Business Promotion Department of the Ministry
    Karen Voskanian.

    - According to certain information, the Ministry of Economic
    Development revised and put into operation a few times the program
    of improving the NKR business environment. Do you have the final
    version of the program or should any additions and changes be still
    introduced in it?

    - The NKR Government activities provide that the qualitative
    improvement of the business and investment environment is a basis
    for the NKR Government's economic policy aimed at ensuring high
    economic growth. To this end, the Government approved two programs
    within the measures on improving the business environment - in 2008
    and 2011 respectively.

    The program accepted in 2011 is the amended version of the 2008
    program; the major part of the measures included in it has been
    already carried out, and the second part should be carried out during
    2012. Improvement of the business environment is a continuous process,
    and depending on the implementation of the measures provided by the
    program, operation of the third programs on the business environment
    improvement is possible after corresponding discussions.

    - Can you, please, introduce briefly the measures to be carried out
    in the sphere?

    - The measures within the business environment improvement are aimed
    at simplification and unification of the tax payment and reporting
    processes, improvement of the taxation field, simplification of the
    procedures of establishment and liquidation of companies, reduction
    and specification of the terms, simplification of the procedures for
    issuing construction permits, reduction of the terms, increase in
    the level of public awareness in this sphere, reduction in terms of
    public property sales, increase in the level of investments protection,
    simplification of the procedures of property registration, reduction
    of time and expenses, increase and maintenance of public awareness
    for simplification of economic activities.

    - As far as we know, one of the most painful issues for businessmen
    is still the difficult and long process of documentation. What is
    done in this direction?

    - Most of the reforms are directed also to the simplification of
    the documentation process and reduction of terms. To realize the
    above-mentioned measures, the Ministry actively worked with all
    departments responsible for the measures' implementation. As a result,
    during the year, a series of legislative changes were made, aiming at
    simplification of the reporting process required by the law, provision
    of corresponding clarifications, improvement of the taxation field,
    reduction of the time and expenses for the procedures of establishment
    and liquidation of a company, as well as the deadlines for the public
    sale of property. It should also be noted that the NKR law 'On Patent
    Fees' is adopted. The law will create favorable conditions for small
    business, and tax reduction will take place in this sphere.

    Part of the measures provided by the 2011 program will be implemented
    in 2012.

    - Are the proposals and complaints of businessmen taken into account
    when elaborating the project, in particular of those involved in
    small and medium businesses? If yes, then how do you learn them? Do
    your specialists meet with them personally? Or is there any body,
    through which you can do it?

    - When elaborating the acting program, the selection of the measures
    included in it was made, mainly aiming at the removal of the known
    problems hindering the businessmen's activities. Providing mutual
    contacts with businessmen while implementing the measures became quite
    easier with the establishment of the Fund of Legal Entities of the
    Union of Artsakh Businessmen, which, as a party to the negotiations,
    represents the interests of businessmen. It should also be noted that
    there is a corresponding protocol recommendation of the NKR Prime
    Minister aimed at continuous improvement of the business environment
    and consolidation of the state-private sector cooperation, according
    to which the state administration bodies, while elaborating the legal
    acts containing corresponding norms for the economic policy should be
    involved in the Union of Businessmen. By the way, for public discussion
    of the draft regulations elaborated by the Ministry, they are placed
    at the Ministry's website (mineconomy.nk.am). The materials on the
    process of implementation of the program of improving the business
    environment are regularly updated in the website's Improvement of
    the Business Environment section.

    - Can we say that our legislation provides the best conditions for
    the business environment or does the legislation need regular changes?

    - In the current era of rapid changes, improvement of the business
    environment is a continuous process in any country. The Government
    takes consistent steps for improving the business environment, by
    which the changes in the legislation are conditioned.

    - The e-management system seems to be slowly introduced in all the
    fields. Can we expect such improvements in the tax sphere and other
    instances of documents' circulation in the nearest future?

    - Introduction of the electronic management system in all areas is
    the imperative of time. According to the 2012 measures of the program
    of improving the business environment, elements of the electronic
    management system will be introduced in the taxation and property
    registration spheres. The success of introducing the electronic
    management system depends also on the level of the society's
    e-literacy, at the increase of which a number of projects being
    implemented by the Ministry of Economic Development are aimed.

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