Improving business environment in Macedonia (transfer of Slovak know-how) Peter Golias Project manager, Business Alliance of Slovakia February 18, 2010.

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Presentation transcript:

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 Source: Business Alliance of Slovakia Business environment index – quarterly evaluation of quality of BE

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 SlovakiaMacedonia Heritage Foundation: Economic Freedom, 2010 (179 countries) 35 (+0.3)56 (+4.5) Freedom House: Democracy Index, 2009 (1 – best, 7 – worst) 1 (↑)3 (↓) Transparency International: Corruption Perception Index, 2009 (180 countries) 56 (52)71 (72)

BE in Slovakia and Macedonia II SlovakiaMacedonia World Bank: Doing Business 2010 (183 countries)42 (35)32 (69) - Starting a business49 (66)13 (6) - Employing workers81 (78)58 (122) - Construction permits56 (51)137 (151) - Registering property11 (8)63 (88) - Closing a business39 (39)115 (131) - Getting credit15 (12)43 (41) - Protecting investors109 (105)20 (88) - Paying taxes120 (130)26 (28) - Trading across borders113 (115)62 (63) - Enforcing contracts61 (49)64 (62)

BE in Slovakia and Macedonia III SlovakiaMacedonia World Economic Forum: Global Competitiveness Report, (133 countries) 47 (46)84 (89) - Property rights59 (55)95 (96) - Tariff barriers5 (5)91 (96) - Extent and effect of taxation18 (17)41 (47) - Total tax rate81 (87)9 (86) - Rigidity of employment72 (64)100 (106) - Firing costs19 (19)46 (45) - Cooperation in labor-employer relations36 (40)101 (101) - Ease of access to loans22 (20)111 (113) - Soundness of banks15 (23)79 (102)

Key reforms in Slovakia : Privatization of banks, energy, telecom : Labor market, Social welfare : Public finance (ESA95, lower deficit, analytical capacities, transparency, 3-year budgeting, programming, decentralization) 2004: Flat tax : Pensions (PAYG, savings pillar) : Health care & Education (unfinished) 2009: Euro

Unemployment and GDP Source: Eurostat

Inflow of FDI Source: National Bank of Slovakia, Statistical Office of the SR

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.