DUSHANBE, April 1, 2009, Asia-Plus — Basically, Tajikistan’s permit system has not been modernized and it is one of main administrative obstacles on the way of development of small and medium-sized enterprises (SMEs) in the country, Ms. Madina Nurmatova, IFC Tajikistan legal advisor, said in an interview with Asia-Plus.
According to her, the system currently contains obsolete technical requirements of the Soviet time and new ones oriented to market economy have been added to them chaotically over the past fifteen years. “The new requirements do not match the old rules of obtaining permits,” said the legal advisor, “Moreover, the system is not transparent because a number of legal acts are not available for the majority of entrepreneurs.”
She notes that there are some 400 permits in Tajikistan that are obligatory for the majority of entrepreneurs and obtaining them requires a lot of time and funds.
Lack of legally established norms and requirements, difficulties with getting information are becoming a breeding ground for extortions and force entrepreneurs to use unofficial methods, Nurmatova noted. “Officially, permits are granted free of charge, however, entrepreneurs sometimes act in accordance with the principle “I’d better pay than have a long wait,” said she. “Unofficial payments make the permit system burdensome for small and medium entrepreneurs.”
Tajikistan’s permit system needs modernization to make reforms in licensing and inspection spheres efficient, Ms. Nurmatova said.
We will recall that IFC on April 28, 2008 presented the results of its analysis of Tajikistan’s permit system to representatives of the government, state bodies, international organizations, entrepreneurs, and the mass media. The results focused on the challenges of obtaining a permit and international best practices for reforming the permit system.
According to IFC’s survey, the Tajikistan government spends more than $7 million a year to administer a complex permit system. About 40 percent of local entrepreneurs face difficulties when applying for permits, a process that is expensive and time-consuming. The system needs reform to make procedures more practical and transparent and ensure that they align with the principles of a market economy.
The analysis is based on a review of existing legislation and interviews with government officers and local entrepreneurs that allows identifying ways to improve the permit system.
