Due to BEI-facilitated reforms performed by the Government in 2008 Kyrgyzstan placed among the top 3 most-active reformers in the Doing Business Survey 2009 Report and advanced 31 places from 99 in 2007 to 68 in 2008. The Kyrgyz Republic also improved 14.6 points in the World Economic Forum’s “Index of Economic Freedom”. These successes were the result of the KR Government’s “100 Days of Reforms” program conducted with BEI assistance as part of ongoing Doing Business improvement activities. BEI continues to work with Government reform efforts to improve the business environment and make it easier to do business.

Further Doing Business-related reforms remain a priority for successful KR development and under the Government’s Phase 2 efforts it plans to further improve legislation and regulation affecting 8 of the 10 Doing Business indicators: Starting a Business, Dealing with Construction Permits, Protecting Investors, Getting Credit, Trading Across Borders, Paying Taxes, Employing Workers, and Registering Property. These reform efforts fall within the purview of the Prime Minister’s Inter-agency Work Group, with the Minister for Economic Development and Trade as his deputy.

BEI experts also assisted in drafting the Law of the KR on Improvement of the Legal Framework for Entrepreneurial Activities that was passed on April 5, 2008. In pursuance of this Law, the Government formed an Inter-agency Work Group with BEI to revise normative legal acts by executive and local self-governance bodies. BEI has supported the Inter-Agency Commission in implementing the criteria in the Law on Improvement and in completing its revision of permitting documents and identifying and abolishing redundant, illegal and duplicate permits. As of the beginning of February 2009 there were 76 licenses or sub-licenses and 31 permits scheduled for elimination.

These eliminated licenses and permits were previously issued by the following state bodies: State Geology Agency, Ministry for Emergency Situations, Ministry of Healthcare, Ministry of Agriculture and Water Resources, National Institute of Standards and Metrology, State Customs Committee, Ministry of Industry and Energy, State Agency for Environment Protection and Forestry, Ministry of Transport and Communications, State Agency for Antimonopoly Policy and Promotion of Competition, and the Bishkek Mayor’s Office.

BEI will continue to assist the Commission in streamlining the remaining licenses and permits until the completion of the process, planned for September 2009.

BEI has also participated extensively in work on the adoption of the Law on Inspections, which improved the list of bodies authorized to conduct inspections of businesses and required those bodies to revise internal inspections procedures in accordance with the Law. BEI has also assisted the State Committee on Taxes and Dues (SCTD) and Department for State Sanitary and Epidemiological Supervision to improve their inspections operations in line with the new Law, as pilot bodies.

BEI further lobbied for the re-establishment of the Advisory Council under the SCTD and now participates in its work, including on the Work Group of the Advisory Council.

As part of its cooperation to support protection of entrepreneurs, BEI assisted the MEDT in the implementation of an initiative to prevent illegal inspections of businesses, called “Bell.” MEDT conducted the Bell program in Bishkek and Osh, consisting of a special MEDT team with representatives from business associations and media that made on-site visits based on entrepreneurs’ reports of illegal actions by controlling bodies. The national TV channel hosted an intense campaign showing videos on the Bell program. Since the inception of this program MEDT has received about 200 reports, leading to the dismissal of 1 public officer, 3 cases filed with Prosecutor’s Office, 1 petition submitted to take actions against an officer, and 1 fine cancelled.