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.
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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.