Content by ARMENPRESS News Agency
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2020-09-19 08:28
A FAVORABLE BUSINESS ENVIRONMENT HAS BEEN CREATED IN ARMENIA. THE RESULTS OF THE WORLD BANK SURVEY
Business in Armenia is less related to corruption, a more favorable environment is being created in the country.

The RA Deputy Minister of Economy Avag Avanesyan said this commenting on the results of the World Bank survey conducted among Armenian enterprises. More than 500 small, medium and large businesses from Armenia took part in the survey, answering various questions.

"The survey was conducted in many areas, from corruption, tax administration, access to finance, gender issues, etc., related to businesses. If we look at how many organizations in Armenia have said that they have been involved in some form of corruption, we will see that it is 1.4%. "This figure is 9.4 percent in Europe, Central Asia and 16.3 percent in the rest of the world," he said.

According to another indicator, this is a favorable picture. In particular, how many companies in public procurement have reported that they had to give a gift to someone or establish a good relationship with someone in order to win the procurement process? This figure was zero. In Europe և In Central Asia it is 10%, in the world it is 23.6%. The businessmen also answered the question of what percentage of the total contract price is the gift given to the official. Here, the figure is zero, although in the case of construction permits, one percent of respondents indicated that they expected to give a gift. This figure is 12% in Europe, Central Asia and 20.6% in the world.

The interviewed businesses also answered the questions related to the problems. The answers show that access to finance remains the biggest problem for businesses. In addition, businesses have raised the issue of high taxes. This was mentioned by 12.2% of respondents. This figure is 19.2% in Europe, Central Asia and 12.5% ​​in the world.

"If we look at how fast it is possible for us to start a business, we can say that we are many times faster than the average in Europe and Central Asia or the world. Let me say that the level of staff training in our companies remains low. The problem is also the issue of infrastructure. In particular, the rate of power outages in our country is somewhat high, although the losses due to power outages remain low, "said the Deputy Minister.

Avag Avanesyan emphasized that, in general, this is an important issue both from the point of view of the investment field and the business environment. It shows the correlation of Armenia's indicators with the world average. It has sectoral openings that allow you to see what is happening in which sector and what problems there are.

"The advantage of this survey is that we are able to compare the successes of our country, the positive results with the international average, to understand where we have progress, where we have problems, where there were problems in the past and they are solved today. In terms of infrastructure, education, foreign trade organization, yes, we have problems that need to be addressed. This survey can be a guideline for further review of economic policy emphases. It is a rather deep report on many issues, "Avag Avanesyan added.

The survey was conducted among 546 companies in the period from December 2019 to June 2020. Areas: food, other manufacturing, retail, other services, etc. The poll was conducted in Yerevan, Gyumri and Vanadzor.