The presidential decree on suspension of inspections in entrepreneurship invoked a positive resonance in the society.

Which changes will take place in our country after this decision and which opportunities it will open for people?

Expert in economics Vugar Ahmedov answered this question and clarified all points regarding the related issue, AzVision.az reports.

Serious legal and administrative measures are being taken to establish a complete liberal market, to provide the sustainability of the non - oil sector in our country, to reach all set goals concerning the diversification of our economy and thereby increase budget revenues.

These reforms will serve not only for the diversification of the economy and financial roots, but also will create a steady ground for the success of the 2020 Development Goals. Our economy is switching from an oil oriented market to a more liberal economic development model, where funds are fed by cash inflow mostly from non oil sector.

The sustainability of this model is highly correlated with the content of the reforms, recently launched by the President.

Thus, strong political will imposed by the President to vanish all externalities falling back the pace of the economic growth stands in the core of the reforms.

Radical positive changes in the fiscal as well as monetary policy will be a trend in our country. Reforms will reduce direct physical contact between business representatives and governmental authorities, which accordingly will diminish the possibility of unnecessary interference in the market. Applications will be done via electronic governmental resources.

New phase of economic growth, which embodies liberal interactions within the market and limited business – governmental relations have started in Azerbaijan. Switching from a Keynesian type of economy to a Hayekian model will doubtlessly have a positive influence on various macroeconomic observations.

Special stress put on the importance of high transparency in the governmental services , offered to the local business, in the presidential decision is a direct indication of future transparent and constitutionally valid market relations among economic subjects in Azerbaijan.

Transfer of license issuance functions from other governmental bodies to ASAN service will open opportunities for entrepreneurs to get the required legal permits without going through a multi-staged bureaucratic procedures and having extra costs.

Analyses conducted based on the previous experience revealed, entrepreneurs were compelled to pay not only for the official governmental fee, but also had to come down with additional money. Therefore, the decision to reduce the number of required documents for various types of business activities is very crucial to remove the room for corruption emerged due to mentioned administrative gaps.

Issuance of sectorial licenses is a flipped side of the coin. Entrepreneurs will be able to run multiply business operations within one sector after getting merely one sectorial license.

It is an irrefutable fact, any type of corruption, - bribery, nepotism, cronyism, bureaucracy -cannot be observed in any branch of governmental activities under subordination of ASAN Service.

Therefore, the transfer of the crucial functions of ASAN service will ameliorate the loaded scheme of the license issuance process, business owners will get the required documents without bargaining. It will cut the oxygen of “illegal brokers” previously offering easy access to certain services for a certain amount of money.

Reduction in the number of licenses will automatically cut extra costs and increase competitiveness in the market.

In other words, less licenses for a certain business activity mean less costs and no illegal costs.

In a nutshell, Liberal economy based on the competitive market principles will boost the economic growth and diminish the negative impacts of externalities on our local market. This will let us build a sustainable economy on a strong ground.

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