The improvement of business climate slowed down in 2006 after its aceleration in 2005
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ANNUAL INDICATOR OF BUSINESS ENVIRONMENT BURDEN has increased to 51.0 in 2006 from 47.5 in 2005;
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The number of managers perceive property rights to be insecure has increased;
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The share of managers consider regulations unclear: remains at level of 2005: 79.8%;
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The "time tax" has decreased from 14.8% to 11.2% of working time;
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The share of respondents reported the bribe to be a common instrument to get “things done” has decreased from 76.8% in 2004 to 34.0% in 2005
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In 2006 share of all firms pay bribes to get “things done increased again and reached to 55.1%”;
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In 2006 the average size of bribes has grown again and reached an average 3.4% of annual sale
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The amount of the bribes increase over time and became more stable again in 2006;
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About 63.5% of all firms are unsure about the efficacy of corruption;
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72,0% of surveyed managers are sure that “friendly relations” with state need to get success in business;
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After significant increase in 2005, the rate of tax compliance has decreased again in 2006;
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Competitive pressures from domestic and foreign producers are seen to be weaker over time;
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The investment activity is growing slowly;
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Profits remain the main source of investment, though the role of banks loans is increasing;
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Almost 2/3 of the firms consider the present to be an unfavorable time for investment;
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Insufficient profits and too high cost capital are the most frequently reported obstacles to invest;
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Investment plans of firms are sensible to changes in political situation.
Small and medium enterprises vs. large firms:
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Smaller firms believe the judicial system to be less able to enforce commercial contracts;
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Medium firms experience more state interference;
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The clarity and predictability of regulations are seen to be less onerous by small enterprises;
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Smaller firms experience a lower absolute level of the “time tax”;
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Smaller firms experience more exposure to corruption and a higher average size of bribes.
