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Europe and Central Asia Second to OECD in Implementing Good Business Regulatory Practices

Dushanbe, October 29, 2013—A new World Bank Group report finds that the pace of regulatory reform  in Europe and Central Asia remains strong, with 19 economies implementing 65 reforms to improve  business regulation in the past year. 

Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises shows that  efforts to strengthen legal institutions and reduce the complexity and cost of regulatory processes have  paid off for entrepreneurs in Europe and Central Asia. The region has overtaken East Asia and the Pacific  as the second most business-friendly after the high-income economies in the Organization for Economic  Co-operation and Development (OECD). 
The report finds that since 2009, 92 percent of economies in Europe and Central Asia have improved  their process for starting a business, a higher share than in any other region. Thanks to these efforts,  today it is the easiest region for business entry, ahead of the OECD high-income economies. In response  to the financial crisis, 73 percent of the region’s economies reformed insolvency proceedings over the same period, and 85 percent made it easier to pay taxes.  Tajikistan ranks as 143rd out of 189 economies in the Doing Business 2014 report, compared to 141st in 2013.
 
Tajikistan was credited with a significant improvement in access to credit information as a result of the newly established private credit bureau. In addition, it made paying taxes easier and less costly for companies by reducing the corporate income tax rate, merging the minimal income tax with the corporate income tax, and abolishing the retail sales tax—though it also increased the land and vehicle tax rates.“Tajikistan continues to take positive steps to improve the overall investment climate leading to real results for the nation’s development. As the 2014 Doing Business report shows, there is much more to be done both to improve legislation, and even more importantly, to properly implement adopted legislation. With an ongoing commitment to private sector reform, Tajikistan will grow the rate of investment in the country leading to a more and better jobs,” - said Christopher Miller, the Country Officer for IFC in  Tajikistan. Despite the improvements in access to credit and paying taxes areas tracked by Doing Business, starting a business has become more difficult due to requirements of preliminary approval from the tax authority and the submission of additional documents at registration. There was little or no change in the other categories including dealing with construction permits, getting electricity, getting credit, and trading across borders.
 
About the Doing Business report series
 
The joint World Bank and IFC flagship Doing Business report analyzes regulations that apply to an economy’s businesses during their life cycle, including start-up and operations, trading across borders, paying taxes, and resolving insolvency. The aggregate ease of doing business rankings are based on 10 indicators and cover 189 economies. Doing Business does not measure all aspects of the business environment that matter to firms and investors. For example, it does not measure the quality of fiscal management, other aspects of macroeconomic stability, the level of skills in the labor force, or the resilience of financial systems. Its findings have stimulated policy debates worldwide and enabled a 
growing body of research on how firm-level regulation relates to economic outcomes across economies. This year’s report marks the 11th edition of the global Doing Business report series and covers 189 economies. For more information about the Doing Business reports, please visit doingbusiness.org and join us on doingbusiness.org/Facebook.
 
About the World Bank Group
The World Bank Group is one of the world’s largest sources of funding and knowledge for developing  countries. It comprises five closely associated institutions: the International Bank for Reconstruction and  Development (IBRD) and the International Development Association (IDA), which together form the World Bank; the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA);  and the International Centre for Settlement of Investment Disputes (ICSID). Each institution plays a distinct role in the mission to fight poverty and improve living standards for people in the developing world. For more information, please visit www.worldbank.org, www.miga.org, and www.ifc.org.
 
Media Contacts: 
In Dushanbe: Zebo Nazhmedinova, (992 918) 64 09 28, znazhmedinova@ifc.org
Nigina Alieva, (992 48) 701 58 07, nalieva1@worldbank.org
 
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