Dushanbe, August 10, 2006 — The president
of Tajikistan has signed a new law on inspections of business activity.
The law, drafted with assistance from IFC, has already been adopted by
the country’s parliament. The new law will streamline Tajikistan’s inspections
system and significantly decrease the burden on small and medium enterprises.
IFC’s 2006 survey of SMEs in Tajikistan revealed that the inspections
process is one of the most complex administrative procedures for these
enterprises. Over 95 percent of small businesses are inspected each year
in Tajikistan. These businesses average 13 inspections per year,
which collectively take a month to complete.
The new law sets key principles for the conduct of business inspections
by state authorities. It specifies the frequency and duration of inspections,
determines a clear procedure for conducting site visits, and stipulates
the list of regulatory bodies that are entitled to inspect businesses in
Tajikistan. The law also provides for implementation of a risk-based system
of inspections, which directly links the frequency of inspections to the
level of risk a firm’s activities pose to society and the environment.
Having helped the government draft the law, IFC will now help integrate
it into Tajikistan’s overall legislative base, as well as work with a
number of key inspectorates to incorporate the law’s provisions into their
working practices. IFC will also conduct training for entrepreneurs to
make them aware of the effect the new law will have on their business.
Ashurov Amonullo, Deputy Head of the State Agency on Anti-Monopoly Policy
and Support for Entrepreneurship, emphasized that “The new law should
become a daily reference for both entrepreneurs and inspections authorities.
With this new legislation on inspections, entrepreneurs can breathe easier.”
Tajikistan’s Law on Inspections was drafted by a working group headed
by the State Agency for Anti-Monopoly Policy and Support for Entrepreneurship
with assistance from IFC’s Tajikistan SME Policy Project. The project
is funded by the Swiss State Secretariat for Economic Affairs (seco).
The International Finance Corporation is the private sector arm of the
World Bank Group and is headquartered in Washington, D.C. IFC coordinates
its activities with the other institutions of the World Bank Group but
is legally and financially independent. Its 178 member countries
provide its share capital and collectively determine its policies.
The mission of IFC is to promote sustainable private sector investment
in developing and transition countries, helping to reduce poverty and improve
people’s lives. IFC finances private sector investments in the developing
world, mobilizes capital in the international financial markets, helps
clients improve social and environmental sustainability, and provides technical
assistance and advice to governments and businesses. From its founding
in 1956 through FY05, IFC has committed more than $49 billion of its own
funds and arranged $24 billion in syndications for 3,319 companies in 140
developing countries. IFC’s worldwide committed portfolio as of FY05 was
$19.3 billion for its own account and $5.3 billion held for participants
in loan syndications. For more information, please visit www.ifc.org.
The State Secretariat for Economic Affairs (seco) is the Swiss Confederation's
competence center for all the core issues related to the economic policy.
Its aim is to create the basic regulatory and economic policy conditions
to enable business to flourish for the benefit of all. It represents Switzerland
in multilateral trade organizations and international negotiations. It
is also involved in efforts to reduce poverty and help build sustainable
democratic societies and viable market economies. Each year Switzerland
spends approximately 1.9 billion francs on development cooperation and
transition assistance to developing countries.