The report's conclusions suggest that many countries have to carry out reforms to create new jobs for young people and women, involve the shadow economy in the formal economy and contribute to economic growth.
The report stresses that Georgia is among the countries, which have to take steps to improve their business environment.
While commenting on the situation in Georgia, experts from the World Bank and the International Finance Corporation note that conducting business in the country could be simplified by raising the efficiency of the judiciary system, cutting expenses on property and restructuring business. These measures will create conditions for the normal operation of credit and information bureaus.
According to the experts, as compared to EU countries, less time is required in Georgia for business registration. However, there are considerable expenses related to starting up a business. These expenses are higher than in neighboring countries. In particular, registration fees are three times higher than in Armenia and five times higher than in Azerbaijan.
According to the report, Georgia and Kazakhstan were the top CIS countries in terms of business transparency. Despite the fact that investors and creditors in Georgia have quite strong legal rights, the Georgian legal system is relatively ineffective, which results in the breach of investors' rights.
This situation makes it more difficult for companies operating in Georgia to get requisite loans. Also, the expenses stipulated in contracts on the protection of their terms of operation are considerably higher than in other countries of the region.
