option of a strong and clear framework law and implementing regulations on the licensing and permit regimes.
В· Review and rationalization of the number and level of legally permissible permits to avoid the proliferation of permits for revenue generation.
В· Development of a basic set of guidelines on the procedures for processing and enforcing permits (similar to those in place for licenses).
В· Development of a monitoring mechanism within the Ministry of Justice that will ensure consistent enforcement of provisions for permits.
В· Publication and dissemination of information on the legally sanctioned licenses and permits (Eg, regulations, procedures, documentation requirements, fees and appeals mechanisms).
Operating a Business - Inspections . The passage of the Law on Supervising Entrepreneurial Activity represented the most recent of a series of attempts to streamline the business inspection process by state and local governments. It is, however, too early to assess the effect of this new law. At the time of the FIAS mission, the implementing regulations had not been completed and the law had not been fully implemented.
The main recommendations to strengthen the implementation of the new regime for inspections include:
В· Articulate and publish the mandate of each inspectorate as well as information on definitions of violations, criteria for selecting businesses for inspection, the penalties that may be assessed under specific conditions, and the rights and responsibilities of inspectors and businesses.
В· Halt extralegal inspectorate activity pending the registration of all sanctioned inspection activities.
В· Establish and enforce procedures for conducting on-site inspections.
В· Regulate the payment of penalties and fines resulting from inspections to a central cashier in order to avoid on-site payments and minimize opportunities for corruption.
В· Coordinate and rationalize the activities of inspection agencies; implement initiatives for joint training and information sharing among inspection agencies; introduce a code of conduct for inspectors; and train inspectors to understand that their primary function is to ensure public health and safety.
Conclusions and Next Steps . There is a general agreement within Georgia that the existing environment for investment needs to improve if the country wishes to attract new FDI flows and secure the expansion of existing investments. This report has focused on the principal administrative barriers that increase the cost and risk of doing business in Georgia. br/>
Pervasive corruption and the apparent lack of political will to implement reforms have emerged as two fundamental issues affecting the business environment in Georgia....
