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Better Regulation for Higher Growth : Bulgaria's Business Regulation - Achievements and Recommendations(World Bank, 2010-11-01) World BankRemoving regulatory obstacles that create barriers to business is a major objective for economic policymakers. There is broad understanding among policymakers and development practitioners that microeconomic reforms aimed at strengthening property rights, unleashing competition, and reducing the cost of doing business are critical to creating a sound investment climate and promoting economic growth (World Bank 2004; World Bank 2005; Lewis 2004). It is also commonly agreed that these changes need to be credible and sustained for private firms to respond by increasing investment and production (World Bank 2005). This report summarizes the findings of three topical studies of the World Bank: Administrative and Regulatory Barriers to Business (volume two) studies the overall burden of regulation for companies in comparison to other new European Union (EU) peers and specifically assesses Information Technology (IT) and manufacturing companies and the role of key stakeholders. The ex-post impact assessment of the act on limiting administrative regulation and administrative control on economic activity (Volume three) makes an assessment of how the act has been enforced, identifies and estimates the impacts of the act, and provides recommendations for amendments. Reforming the regime of state fees (volume four) examines how reforms to the structure of state fees could decrease the regulatory burden for firms.
Publication(World Bank, 2010-11-01) World BankThe present report on the Administrative and Regulatory Barriers to Business is part of an ongoing World Bank analytical and advisory support to the Government of Bulgaria in the area of regulatory reform. Since 2006, the World Bank has provided analytical and advisory support to the government in this area. In 2007, the Bank reviewed administrative procedures in the tourism, food, and road transportation sectors, calling for reduction and simplification of certain burdensome administrative regimes and emphasizing superfluous regulation at the municipality level. This report aims to identify ways in which Bulgaria can further remove obstacles to business regulation, recognizing that achieving pre-crisis growth levels, raising labor productivity and improving the business environment will require continued reforms to eliminate administrative and regulatory barriers to business. The report serves three purposes, such as: 1) providing the economic backdrop and comparators of Bulgaria's regulatory environment; 2) reporting on survey results including assessments by and perceptions of senior managers of Bulgarian enterprises; and 3) identifying strategic reform recommendations, including regulatory changes, institutional upgrading and capacity building, and legislative amendments.
Publication(World Bank, 2009-06-01) World BankThe Government of Bulgaria requested the World Bank to analyze the legal, institutional and administrative framework for setting state fees and provide recommendations based on good international practice. How big is the problem compared to the many other issues the government wants to reform in order to improve the business climate in Bulgaria? So far there are no comprehensive studies of the level of administrative fees in the European Union (EU) area. Such studies would be of great value to assess the magnitude of the problem. There are, however, several arguments in support of reforming the regime of state fees in Bulgaria now. Firstly, business associations in Bulgaria agree also confirmed by a recent unpublished government report - that state fees at the central level became an uncontrolled area in which authorities apply their own judgment and interests without considering the impact on businesses often to the disadvantage of the private sector. Secondly, if the Government of Bulgaria (GoB) does not curb the current regime system, then the trend of increasing state fees will continue or might even gain speed. Again, this will have a negative impact on the cost of doing business. Thirdly, a number of identified state fees are so high that they seriously harm competition by functioning as a barrier to firm entry. Fourthly, the EU requires Member States to implement a specific regime for administrative fees in the services sector by the end of 2009 and Bulgaria does not comply with that yet. A recent World Bank report for Bulgaria Investment Climate Assessment (2008) called for overall reduction of the administrative cost for businesses because Bulgaria is not competitive in this area compared to other Central and Eastern European countries. The report recommended that a strategic policy document is prepared to embrace the administration practice and provide an instrument for classification of the tariffs for the central administration service fees targeting universal reduction of the administrative cost. It also proposed that a special methodology for the classification of the tariffs for the central administrative service fees is developed. The present report is intended to support reform of the regime of state fees.