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When transporting goods to Poti is more expensive…

The fact that Armenia improved its position in the World Bank ‘Doing Business’ 2013 report by 18 points and appeared on the 32nd position can be considered a substantial progress, as it was stated by RA Prime Minister of RA Tigran Sargsyan during the RA Government session.

According to him, there are still many things that need to be done. ‘Heads of many countries keep this index under their personal control, since it briefly describes business environment, shows the image of the situation in different countries regarding starting and doing business’, the Prime Minister said, mentioning about the importance of the indexes, which appear as a result of surveys conducted within private sector.

In the Prime Minister’s opinion several issues exist in this respect:

First, the services provided to the small and medium businesses (water, electricity, gas supply) are still costly. Regardless some improvements in this respect, Armenia is not yet among 100 states on the list of “Doing Business” Report.

Second issue is connected with the customs clearance, external trade and export of goods. Armenia is very vulnerable in this respect. ‘Actual research of the World Bank shows that we yield to our neighbors by the number of required references, in particular it is necessary to remove the demands about presenting different types of documents, which is defined at constitutional or non-constitutional level’ Prime Minister noted.

As for the costs, expensive transportation of goods to Poti is not limited to the expenses in Armenia but also includes expenses in Georgia. All this substantially complicates doing business.

According to T. Sargsyan the next issue is connected with the sector of Justice, ‘The research done within the scope of businesses shows that judicial disputes can last for more than a year. It is a very low index’, noted Prime Minister, giving the Minister of Justice an assignment to introduce suggestions for changing the situation for the better.