WB AND IFC RANK ARMENIA 34 IN TERMS OF BUSINESS DOING EASE

Armenpress
Oct 03 2006

YEREVAN, OCTOBER 3, ARMENPRESS: Armenia has been ranked 34-th out of
175 nations for its efforts to increase the ease of doing business
in the country, says a report by the World Bank and its arm, the
International Finance Corporation (IFC).

Semion Diankov, director of IFC department for monitoring analysis
and policy, said in Yerevan today that in terms of economic reforms
and actual ease of doing business index Armenia was ranked the best
among CIS member countries.

But he said the report shows that Armenia still has a lot of work to
do. Particularly, Armenia is behind the neighboring Georgia in terms
of reform implementation dynamic. Armenia started sweeping reforms
in mid 1990-s and secured the place due to progress it has made
over a decade, while studies show that Georgia was able to carry out
successful reforms in just few recent years to spring to the 37-th
position from 130-th.

The World Bank and IFC report notes that Armenia must carry out
sweeping reforms in tax collection.

Studies show that an average businessman wastes 1000 hours annually
to fill in different papers, resulting in higher volume of shadow
economic activity.

The report says also that a string of administrative obstacles makes
doing oversea trade complicated. Unlike in Georgia where registration
of documents for export-import operations takes on average 5 days,
this period in Armenia is 30-35 days.

As a result, in terms of tax payment and doing oversea business
Armenia is ranked 148 and 119 respectively, while its index of property
registration is second after New Zealand.