Download Impovenment of business index in Macedonia

Improving business environment
in Macedonia
(transfer of Slovak know-how)
Peter Golias
Project manager, Business Alliance of Slovakia
February 18, 2010
Skopje
Basic info about project
• Project title: Improving business environment
and labor market in Macedonia by transfer of
successful know-how from Slovakia
• Implemented by NGOs: Business Alliance of
Slovakia (BAS) and CERM
• Funded by gvt agency: Slovak Official
Development Assistance (Slovak Aid)
• Time: January 2010 – February 2011
Basic info about BAS
• NGO representing Slovak businessmen and
employers:
– 42 paying entities
– Financial contribution 20 EUR – 4,000 EUR yearly
– 60,000 employees, 6% of GDP
• Key values: ethics, transparency, consistency,
solidarity, rule of law
• Established in 2001 by NGOs (alliance of profit
and non-profit sectors)
• Goal: Improving business environment (not
particular interests of its members)
BAS activities I
• Business environment index – quarterly
evaluation of quality of BE
130
125
120
115
110
105
Source: Business Alliance of Slovakia
3Q 2009
1Q 2009
3Q 2008
1Q 2008
3Q 2007
1Q 2007
3Q 2006
1Q 2006
3Q 2005
1Q 2005
3Q 2004
1Q 2004
3Q 2003
1Q 2003
3Q 2002
1Q 2002
1.7.2001
3Q 2001
100
BAS activities II
• Legislation monitoring (incl. comments and
analyses)
• Evaluation of voting of political parties and
Members of Parliament
• Global competitiveness report (official
partner of WEF in Slovakia)
• Opinion surveys among managers
• Audit of BE, Wish list, etc.
BE in Slovakia and Macedonia I
Heritage Foundation: Economic Freedom, 2010
(179 countries)
Freedom House: Democracy Index, 2009
(1 – best, 7 – worst)
Transparency International: Corruption Perception
Index, 2009 (180 countries)
Slovakia
Macedonia
35 (+0.3)
56 (+4.5)
1 (↑)
3 (↓)
56 (52)
71 (72)
BE in Slovakia and Macedonia II
Slovakia
Macedonia
World Bank: Doing Business 2010 (183 countries)
42 (35)
32 (69)
- Starting a business
49 (66)
13 (6)
- Employing workers
81 (78)
58 (122)
- Construction permits
56 (51)
137 (151)
- Registering property
11 (8)
63 (88)
- Closing a business
39 (39)
115 (131)
- Getting credit
15 (12)
43 (41)
- Protecting investors
109 (105)
20 (88)
- Paying taxes
120 (130)
26 (28)
- Trading across borders
113 (115)
62 (63)
61 (49)
64 (62)
- Enforcing contracts
BE in Slovakia and Macedonia III
Slovakia
Macedonia
World Economic Forum: Global Competitiveness
Report, 2009-10 (133 countries)
47 (46)
84 (89)
- Property rights
59 (55)
95 (96)
5 (5)
91 (96)
- Extent and effect of taxation
18 (17)
41 (47)
- Total tax rate
81 (87)
9 (86)
- Rigidity of employment
72 (64)
100 (106)
- Firing costs
19 (19)
46 (45)
- Cooperation in labor-employer relations
36 (40)
101 (101)
- Ease of access to loans
22 (20)
111 (113)
- Soundness of banks
15 (23)
79 (102)
- Tariff barriers
Key reforms in Slovakia
• 1998-2002: Privatization of banks, energy, telecom
• 2003-04: Labor market, Social welfare
• 2003-05: Public finance (ESA95, lower deficit,
analytical capacities, transparency, 3-year
budgeting, programming, decentralization)
• 2004: Flat tax
• 2004-05: Pensions (PAYG, savings pillar)
• 2003-04: Health care & Education (unfinished)
• 2009: Euro
Unemployment and GDP
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
2000
2001
2002
2003
2004
Unemployment
Source: Eurostat
2005
GDP growth
2006
2007
2008
Inflow of FDI
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
1995
1996 1997
1998
1999
2000
2001 2002
2003
2004
2005
Inflow of FDI (% of GDP)
Source: National Bank of Slovakia, Statistical Office of the SR
2006 2007
2008
Activities in Macedonia
• Mobilizing ethical business leaders to establish
and support BE watch-dog
• Supporting public discussion about quality of BE
• Developing tools for monitoring BE:
– Business environment index
– Audit of business environment and Wish list (paper,
conference)
• Transfer of know-how about Slovak reform
experience (paper, lectures)
Thank you for your attention.