Sabit Bagirov: Entrepreneurs Should Believe in Justice

The Chairman of Entrepreneurship and Market Economy Assistance Foundation Sabit Bagirov in an interview with Turan News Agency and the Voice of America commented the recently taken measures to improve the business atmosphere in the country.

Since September last year, the country's President signed about 35 decrees. Some of them regard improvement of the legislation, others are directly aimed at stimulating and motivating entrepreneurs, creating favorable conditions for them.

However, the important issue is the protection of the interests of the entrepreneur, to be sure that there is a center of justice, which can be accessed, the expert said.

Bagirov noted the existence of problems with the execution of the measures taken in the field of business development. For example it is licensing. Back in 2011 the President issued a decree on the development of licensing law, but it was never executed.

In recent speeches, the President's message contained the strengthening of social control, as discussed in the parliament with the participation of members of the public the draft law "On public control". The document gives ample opportunity to social entities to take part in this process, but needs improvement.

In particular unacceptable is monopolisation of control. So, now the situation is developing in the direction that public scrutiny will be carried out by public councils, that is, bodies created under the central government. But an important role in public control should be also played by NGOs. In particular, the organization headed by Bagirov already conducts public monitoring, analyzing the implementation of legislation, assessing the problems and how they are solved.

"It is our mission as an NGO and no one shoukld take these functions from us, and monopoly in this area is unacceptable. Public participation is one of the four main criteria of good governance as well as transparency, accountability, and the rule of law," said Bagirov.

Does the business environment comply with the WTO standards and does it provide the basis for the competition? In answering this question, Bagirov said that the WTO does not have any official standards. However, there are reports of certain international entities, assessing business environment in the world.

For example every year the World Bank publishes a report Doing Business - Measuring Business Regulations - World Bank. According to this index, the situation in Azerbaijan is somewhere in the middle. But there are areas where there are serious problems. For example, it is the availability of financial resources. The situation with credits creates a big problem for entrepreneurs. Credit terms are hard - high interest rates and collateral required.

Or there is difficulty in connecting to the power grid, which is surprising in the energy system. In the Doing Business report, Azerbaijan is not at a good place.

There are problems in obtaining building permits. However, compared with last year, there is some progress.

When should we expect positive results from the steps already taken by the state? In answering this question, Bagirov said the consequences of general solutions of the entire national character manifest themselves, as a rule, in a few years. "But there are solutions, the results of which are felt on the following day. For example, it is monetary policy. In Azerbaijan, there were two devaluations and their impact is immediately felt in business, economics and the social sphere. Devaluation has generated such deep problems that their solutions will take years. So, for the return of public confidence in the manat, banks need time," concluded Bagirov. -06D--