The World Bank “Doing Business” 2009 report was issued in September 2008 and ranked the Republic of Kazakhstan 70th out of 181 economies surveyed--an improvement of 10 positions from last year. Among the countries in Eastern Europe & Central Asia, Kazakhstan ranks 12th out of 25. The most positive results were achieved in the “Registering Property” indicator, for which the country’s rating rose 52 positions (to 25th rank). Also, positive trends are recorded in the “Getting Credit” indicator, for which Kazakhstan improved 18 positions to 43rd rank. Kazakhstan otherwise is placed well in “Enforcing Contracts” (28th rank) and “Employing Workers” (29th rank). The “Protecting Investors” and “Paying Taxes” indicators also place the country in the top-50. Across these six indicators, Kazakhstan averages a rank of 38, providing one illustration for the country’s overall potential.

Other indicators, however, had no positive change or decreased in the 2009 report. For instance, important reforms in “Dealing with Construction Permits” conducted by the Government of Kazakhstan in May of 2008 were not yet reflected in this 2009 report, and the ranking in this area remained at 175th place. Also “Closing a Business” in Kazakhstan remained at 100th position, “Starting a Business” decreases 17 places to 78th and “Trading Across Borders” is 180th. Across these four indicators Kazakhstan’s average rank is 133rd, demonstrating good areas for future reforms.

BEI actively cooperates with different ministries in order to improve business environment in the Republic, which will support development of small and medium enterprises and increase Kazakhstan’s positions in the World Bank Doing Business report.

The BEI Project works on improving Kazakhstan’s permitting system, and according to the “Plan of Immediate Measures for Stabilization of the Economy and Finance Systems in 2009-2010”, approved by the Government of RK, the following actions are planned:

• Inventory of normative and legal acts
• Review of normative and legal acts
• Development of a new draft law “On licencing”
• Reduction of number of types and subtypes of licenses and permits by 50-90% (using the “Guillotine” method)

The BEI Project cooperates with state bodies to introduce risk management systems (RMS). The Government of RK expressed its interest in this issue and a concept on RMS introduction is being developed now in order to improve and reduce unnecessary regulation of business activity. This system will considerably improve inspections for small and medium businesses by state control bodies through reduction in unnecessary and wasteful inspections.

However, inspections and risk management are only some of many components of future work. The RMS may be profitably introduced wherever resources are allocated and at all levels of regulation – from selection and preparation of policy, legislation, and instruments for regulation to the operation of state control bodies including collection of information, control (inspections) and prosecution functions.