The economists believe that even if we have improved our position in the “Doing Business”, this does not mean that everything is fine in our country. “Registering a business in Armenia is one thing and doing a business is another thing. There are so many shadow and corruption risks in the business environment in our country that relying on the positive indicators on Armenia by the Doing Business and saying that Armenia is a cute country, we will not deceive foreign investors with it. In addition to the formal aspect, they will be indirectly contacting with the informal aspect and the corruption as well”, such an opinion was expressed by the expert of the “Transparency International” anticorruption Center, economist Artak Manukyan, in an interview with Aravot.am, referring to the World Bank’s published “Doing Business 2016” report.
Note that Armenia ranks the 35th according to this “Doing Business” report, improving its position by 3 points. As presented by Manukyan, the Doing Business methodology has been edited, and the published data cannot be accepted as an absolute truth. The Doing Business report, as a positive indicator, mentions that Armenia has simplified the process of construction permits. In particular, the low-risk projects do not apply the requirements for the approval of an architectural design by an independent expert and the technical supervision for the construction. In this regard, economist Manukyan noted that relying on such small things and saying that major reforms have been made in the business environment in our country and making it a flag is senseless. “One important thing too. The index that is calculated by the World Bank is based on a non-shadow sector. It is clear that if a business is willing to come and work in Armenia, he should take into account that in addition to the legislation, there is also a shadow aspect, plus also the corruption, the Doing Business says nothing about these indexes,” mentioned Artak Manukyan.
To compile the report, as the economist said, the legislative aspect is considered, while the high degree of monopoly, the corruption risks incurred thereof and the indirect obstacles and similar essential things are not considered by the authors of the report. “Let’s take the transparency, which apparently refers to the e-reporting of the tax statements, but considering the business environment transparent only with this is not right.” Artak Manukyan said that with such minor indicators, our government is trying to create a veil together with the authors of this report that everything is fine in the business environment in our country. “Doing a business in Armenia, the best assessment about the business environment is the fall of the foreign investments, the availability of unequal competition in the market. There is no better indicator than this.”
President of the Union of Employers of Armenia, Gagik Makaryan, referring to the improvement of Armenia’s position by the Doing Business 2016, said that in case of the import within the Eurasian Economic Union, the Documentation is taken into account, and in this respect we are ahead by 29 scores in the report, we have also improved our position pertaining to the construction permit. “However, Armenia also ranked between Belgium and France in the report compiled 2-3 years ago, now we rank after Japan. These indicators are not able to digest and use in the real life because the reality is much more complicated and confused than the laws formulated by the reforms and indicators on a piece of paper. In my opinion, this Doing Business methodology should be reviewed because they select capital and big cities in each country. Eventually, the business culture is very different in the capitals and the marzes.”
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As mentioned by Mr. Makaryan, “The report reads that under the new law, the appointment of judges for any lawsuit is done randomly and in a completely automated system, the reinforcement matter of agreements is facilitated in all courts of the country. It is not only submitting the lawsuits to the judges electronically, but it should be also considered whether this judge, after accepting the lawsuit, what attitude he has towards given case, whose interests he defends and who calls him for this lawsuit.” According to Makaryan, these indicators create an image, but we cannot use these indicators. “Next year, we maybe would go ahead or back, such roaming from one point to another does not mean that we are applying the business culture of leading countries in Armenia. Business likes culture, quiet environment, rule of law, and equal competitive conditions. We have a high level of corruption and unfair competition”.
Nelly BABAYAN
