A study carried out by the World Bank among 600 companies operating in Moldova shows that the real reforms work and they generate benefits for the business community. The study shows improvements compared with 2018, but there are also aspects on which work is yet to be done as the areas either weren’t sufficiently reformed or still deserve attention, IPN reports.
World Bank Country Manager for Moldova Anna Akhalkatsi said the study covers a 15-year period and presents a general picture with the possibility of comparing developments and keeping the finger on the pulse of the business community as regards the perceptions of its representatives.
Tarik Sahovic, Senior Private Sector Specialist at the World Bank Group, said the reforms that started to be implemented last year produced results. For example, the number of inspections decreased and the burden on the business sector was thus reduced.
“The companies feel less pressure on the part of the inspection authorities – 40% said they had fewer inspections. To my mind, there are two key things. One thing is that the companies notice improvements as regards inspections, a kind of improvement of the image of the public sector, which is no longer perceived as a burden, as earlier. It is a positive tendency that should be continued. The inspections based on risks indeed produce results. We also see that the companies pay fewer bribes, but pay more fines and this is something normal,” explained Tarik Sahovic.
It should be yet noted that fiscal inspections in 2019 were carried out at almost each second enterprise (46.6%) and the length of visits rose significantly compared with 2018 – almost three times. The longer inspections coincide with the rise in the number of fined enterprises from 31% to 50%.
2019 was the first year of implementation of the one-stop shop. As a result, the period of time needed to receive a license or a permit decreased significantly. About 30-60 days were earlier needed to get these documents, but now the time decreased to eight days.
The building permits are the area in which no improvements were felt according to the respondents. Almost half of the companies said that they met with difficulties in obtaining such permits and the authorities should devote special attention to this aspect. “The more we digitize and increase the transparency of the system, the more things will improve,” stated Tarik Sahovic.
The study also shows that two in five enterprises go to court to resolve commercial disputes. The entrepreneurs do not go to court because the trials last too long. A company in three resorted to unofficial dispute resolution methods.
Attending the event, Minister of Economy and Infrastructure Anatol Usatyi said the creation of optimal conditions for developing businesses and the building of businesses’ confidence in the state institutions are on the Government’s list of priorities.
