Study of Small and Medium Enterprises in Azerbaijan - IFC

Chart 6.11
Average registration
in the IRB equals 42
percent
Registration in CRB at the check-ups (for those, who had check-ups)
Ecology Ministry
State Standard
Tax Ministry
EDM
Ministry of Agriculture
Health Ministry
Labor Ministry
Force Major Ministry
Internal Affairs Ministry
Transportation Ministry
Ministry of Industry
State Committee on Land
0% 10% 20% 30% 40% 50% 60% 70% 80%
As can be seen from the chart above, only half of the inspections are duly registered.
The problems are two-fold:
(a) Three agencies that are most active in running inspections, do not register their
inspections in more than 60 percent of the cases;
In-depth discussions with the entrepreneurs make it clear that the usage of the inspections
registration book was insufficiently explained to entrepreneurs as the instrument
was launched. A fundamental issue that remains unclear is whether the book records
are the right of the entrepreneur or a responsibility of the state inspectors.
Since a large number of visits and inspections are conducted in an informal way, both
sides are keen to maintain such visits off-record.
View from an entrepreneur:
“By requiring [to record the inspection in] the registration book, I may trigger the comeback
of the inspector. But later he will come in a larger group and then I will be severely
fined. I will not achieve anything essential by my request to register an inspection, except
only spoil my relations with the inspector. And my goal is to make money, and not pay
attention to these administrative side activities.”
It is simply not profitable for the inspector to register his attendance in the inspections
registration book.
Aze r b a i j a n Bu s i n e s s En a b l i n g En v i r o n m e n t Pr o j e c t 103