Tradeflow Study - UNDP Black Sea Trade and Investment Promotion ...
Tradeflow Study - UNDP Black Sea Trade and Investment Promotion ...
Tradeflow Study - UNDP Black Sea Trade and Investment Promotion ...
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.<br />
In terms of existence of a legal framework for business transactions <strong>and</strong> the enforcement of<br />
the law <strong>and</strong> the quality of corporate governance law, there are wide disparities between<br />
countries in the region. Moldova is the only country in the region which does not have a<br />
competition policy enforcement organisation. The quality of insolvency laws is considered by<br />
the EBRD to be very low in Azerbaijan, Georgia <strong>and</strong> Ukraine, but high (equal to OECD<br />
country st<strong>and</strong>ards such as Turkey or Greece) for Albania, Bulgaria, Moldova, Romania <strong>and</strong><br />
Serbia.<br />
The transactions law of some countries in the region is considered to be equal to that of a<br />
st<strong>and</strong>ard OECD country (Albania, Bulgaria <strong>and</strong> Romania). Moldova, Serbia <strong>and</strong> Ukraine have<br />
a functioning transactions law but this does not fully cover the spectrum of areas to make it<br />
compatible with an OECD country. Meanwhile, Armenia, Azerbaijan, Georgia <strong>and</strong> Russia<br />
have a malfunctioning transactions law. Finally, the quality of corporate governance law is<br />
considered high in just Armenia, Moldova <strong>and</strong> Russia, while being low in Azerbaijan, Georgia,<br />
Romania <strong>and</strong> Ukraine. A summary of these indicators is given in Table 19.<br />
Table 19. Legal framework in transition economies<br />
Existence of a<br />
Competition office<br />
Quality of<br />
insolvency law<br />
Secured<br />
transactions law<br />
Quality of corporate<br />
governance law<br />
Albania high advanced medium<br />
Armenia medium malfunctioning high<br />
Azerbaijan low malfunctioning very low<br />
Bulgaria high advanced medium<br />
Georgia low malfunctioning low<br />
Moldova high some defects high<br />
Romania high advanced low<br />
Russia medium malfunctioning high<br />
Serbia high some defects medium<br />
Ukraine very low some defects very low<br />
Source: EBRD Transition Report 2006<br />
The depth of economic reform in BSEC countries is best reflected by a series of indicators on<br />
the scale of privatisation <strong>and</strong> enterprise restructuring, independence of monetary policy <strong>and</strong><br />
elimination of price fixing, foreign exchange liberalisation <strong>and</strong> strength of competition policy.<br />
The EBRD compiles a series of transition indicators which capture these elements of<br />
economic <strong>and</strong> trade policy reforms, which are summarised in Table 20.<br />
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