Azerbaijan Top Global Reformer

The sixth in the World Bank Group's annual series on business regulations, Doing Business 2009, launched on September 10th. There are two ways a country can make headlines with its ranking in this report. One way is to make it to the top quintile of the ranking and be dubbed a top performer. This year Singapore remained at the top of the list, followed by New Zealand, the United States and Hong Kong (China).

Another way a country can steal the headlines is by becoming a top reformer. Each year the Doing Business determines top reformers by looking at 10 countries that have reformed in at least 3 of the areas of business regulation measured by the report and that have moved most in the overall rankings.

This year the list of these countries is led by Azerbaijan. This country reformed in 7 out of 10 areas measured by the Doing Business project with reforms including introduction of a one-stop shop for business start-up, introduction of a unified property registry, greater protection for minority shareholders, creation of a new economic court, amendments to the labor code and the opportunity to file and pay taxes electronically.

All these reforms helped Azerbaijan jump an unprecedented 64 places in the overall ranking. In a year where 113 economies implemented 239 reforms to make business easier – the most reforms recorded in a year since Doing Business project started – Azerbaijan’s performance is dazzling.

On September 12th, two days after the launch of the report, the Doing Business team was in Baku to celebrate Azerbaijan’s performance. As 5 reformer Azeri ministers and other government officials came together at a press conference with Doing Business and other World Bank Group officials, each of them highlighted the results of their hard work.

While their speeches touched reforms in areas as diverse as judiciary and property registration, they all seemed to concur on one common theme about reforms: they don’t happen overnight. Before the Ministry of Taxes introduced its online taxation system in 2007, its hardworking staff spent months traveling around the world to study international best practices and put in hundreds of 18-hour work days to develop and test the one-of-a-kind taxation database.

Similarly, to create the State Business Registry, Azerbaijan studied “almost every one-stop shop registration system deemed successful,” mobilized 5 government agencies, made changes and amendments to 13 different pieces of legislation, hired new staff, trained them, and publicized its new one-stop shop in a widespread media campaign on TV, radio and various websites.

Resources and hard work aside, the most important thing that it takes for a reform plan to succeed is determination. As an Azeri official told me, “to be a reformer, first you have to be a patriot and really want the changes for the good of your country. And I can assure you, this country is full of such people.” I believe him and I have seen the fruits of this hard work with my own eyes. That is why I think it should be no surprise if Azerbaijan’s determination to create a modern economy and improve its business environment does not stop at this.