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2007 Assessment

Armenia: Integrity Indicators Scorecard

Armenia: Integrity Scorecard Report > Sub-Category: Business Licensing and Regulation
Indicators		Score
67	Are business licenses available to all citizens?	81
68	Are there transparent business regulatory requirements for basic health, environmental, and safety standards?	100
69	Does government effectively enforce basic health, environmental, and safety standards on businesses?	0

Indicator and sub-Indicator Details

Are business licenses available to all citizens?

67a: In law, anyone may apply for a business license.

Score:

YES

Comments:

References: The Constitution of the Republic of Armenia www.parliament.am

67b: In law, a complaint mechanism exists if a business license request is denied.

Score:

YES

Comments:

References: The Law on State Register Law on Business Licence Law on Trade and Commerce of the Republic of Armenia www.arlis.am

67c: In practice, citizens can obtain any necessary business license (i.e. for a small import business) within a reasonable time period.

Score:

100

Comments: A reasonable time period exists for obtaining any necessary business license. However, there exists a mechanism to get the license in one day by giving bribes to respective public officials. According to the Small and Medium Business Foundation's research, in cases in which unofficial payment is required, 24% of respondents answered registration of enterprise and getting a license. (See Combating Corruption: Small and Medium Business Sector Perception and Solutions, Yerevan, 2006, p.13.)

References: Interview with the executive director of Foundation for Small and Medium Businesses Narine Mailyan (August 7, 2007) Combating Corruption: Small and Medium Business Sector Perception and Solutions, Yerevan, 2006, publisher: Foundation for Small and Medium Business

Peer Review Comments: The reporter's comments do not give any indication what this time period might be. And quite honestly, the one-day period in exchange for a bribe should not count, should it?

67d: In practice, citizens can obtain any necessary business license (i.e. for a small import business) at a reasonable cost.

Score:

100

Comments: According to the Small and Medium Business Foundation's research, in cases where unofficial payment is required, 24% of respondents answered registration of enterprise and getting license. (See Combating Corruption: Small and Medium Business Sector Perception and Solutions, Yerevan, 2006, p.13.)

References: Interview with the executive director of Foundation for Small and Medium Businesses Narine Mailyan (August 7, 2007) Combating Corruption : Small and Medium Business Sector Perception and Solutions, Yerevan, 2006, publisher: Foundation for Small and Medium Business

Are there transparent business regulatory requirements for basic health, environmental, and safety standards?

68a: In law, basic business regulatory requirements for meeting public health standards are transparent and publicly available.

Score:

YES

Comments:

References: The Law on Environmental Protection The Code of Trade and Commerce of the Republic of Armenia

68b: In law, basic business regulatory requirements for meeting public environmental standards are transparent and publicly available.

Score:

YES

Comments:

References: The Law on Environmental Protection of the Republic of Armenia www.arlis.am

68c: In law, basic business regulatory requirements for meeting public safety standards are transparent and publicly available.

Score:

YES

Comments:

References: The Code of Trade Law of the Republic of Armenia www.arlis.am

Does government effectively enforce basic health, environmental, and safety standards on businesses?

69a: In practice, business inspections by government officials to ensure public health standards are being met are carried out in a uniform and even-handed manner.

Score:

100

Comments: Even for sanitation inspections, business organizations are forced to do extra payments on a regular basis. (See "Combating Corruption: Small and Medium Business Sector Perception and Solutions," Yerevan, 2006, p.13.)

References: Interview with the executive director of Foundation for Small and Medium Businesses Narine Mailyan (August 7, 2007) "Combating Corruption: Small and Medium Business Sector Perception and Solutions," Yerevan, 2006, publisher: Foundation for Small and Medium Business

69b: In practice, business inspections by government officials to ensure public environmental standards are being met are carried out in a uniform and even-handed manner.

Score:

100

Comments:

References: Interview with the executive director of Foundation for Small and Medium Businesses Narine Mailyan (August 7, 2007)

69c: In practice, business inspections by government officials to ensure public safety standards are being met are carried out in a uniform and even-handed manner.

Score:

100

Comments:

References: Interview with the executive director of Foundation for Small and Medium Businesses Narine Mailyan (August 7, 2007)