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The Global Integrity Report (report.globalintegrity.org)
2007 Assessment

Azerbaijan: Integrity Indicators Scorecard

Azerbaijan: Integrity Scorecard Report > Sub-Category: Business Licensing and Regulation
Indicators   Score
67 Are business licenses available to all citizens? 56
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? 25

Indicator and sub-Indicator Details

67 Are business licenses available to all citizens?
 
  67a: In law, anyone may apply for a business license.
 
Score: YES  NO score
  Comments: According to the Law on the Entrepreneurship Activity, all Azerbaijan citizens may apply for a business license.

References: Reference: Law on the Entrepreneurship Activity of Azerbaijan Republic.

  67b: In law, a complaint mechanism exists if a business license request is denied.
 
Score: YES  NO score
  Comments: According to the Law on Entrepreneurship activities (Article 11), a complaint mechanism exists if a business license request is denied.

References: Reference: Law on the Entrepreneurship Activity of Azerbaijan Republic.

  67c: In practice, citizens can obtain any necessary business license (i.e. for a small import business) within a reasonable time period.
 
Score: 100  75  50  25  0  score
  Comments: If the applicant is not willing to pay a bribe, then process takes longer. According to the World Bank calculations, 28 procedures and 212 days are needed to obtain the necessary license.

References: Reference: World Bank, Doing Business Report. www.worldbank.org. Interview with Gubad Ibadoglu, chairman of ERC. www.erc-az.org

Peer Review Comments: There are exceptions.

  67d: In practice, citizens can obtain any necessary business license (i.e. for a small import business) at a reasonable cost.
 
Score: 100  75  50  25  0  score
  Comments: In practice, any necessary business license can only be obtained through a very high cost.

References: Reference: World Bank, Doing Business Report. www.worldbank.org Interview with Gubad Ibadoglu, chairman of ERC. www.erc-az.org

68 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  NO score
  Comments: Those standards are posted in many laws, but they are very complicated, and are really adapted to the international standards.

References: Reference: The Legislation of Azerbaijan Republic.

  68b: In law, basic business regulatory requirements for meeting public environmental standards are transparent and publicly available.
 
Score: YES  NO score
  Comments: Those standards are posted in many laws, but they are very complicated, and are really adapted to the international standards.

References: Reference: The Legislation of Azerbaijan Republic.

  68c: In law, basic business regulatory requirements for meeting public safety standards are transparent and publicly available.
 
Score: YES  NO score
  Comments: Those standards are posted in many laws, but they are very complicated, and are really adapted to the international standards.

References: Reference: The Legislation of Azerbaijan Republic.

69 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  75  50  25  0  score
  Comments: In practice, business inspections by government officials to ensure public health standards are being met are not always carried out in a uniform and even-handed manner.

References: Reference: Interview with Rovshen Agayev, an independent expert. Reports by international organizations, WHO and WB, 2007.

  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  75  50  25  0  score
  Comments: In practice, business inspections by government officials to ensure public health standards are being met are not always carried out in a uniform and even-handed manner.

References: Reference: Interview with Rovshen Agayev, an independent expert. Reports by international organizations, WHO and WB, 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  75  50  25  0  score
  Comments: In practice, business inspections by government officials to ensure public health standards are being met are not always carried out in a uniform and even-handed manner.

References: Reference: Interview with Rovshen Agayev, an independent expert. Reports by international organizations, WHO and WB, 2007.

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