Page 12 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.74, # 1, 2017, pp. 10-22

The problems regulation by state bodies were resolved as they arose, by
introducing new regulatory instruments.
In 2009-2012, an analysis was made of the state of regulation of
entrepreneurial activity, which revealed the following problems:
- Firstly, business and consumers did not have access to regulatory acts that
established mandatory requirements to the process of their development, there was
no monitoring of their implementation;
- Secondly, there were no data on the exact number of licensing procedures in
force, issued permits and registries of licensees;
- Thirdly, there was no statistics security in the regulated spheres and actual
information about the supervised subjects, which in turn expanded the sphere of
application of control;
- Fourthly, state authorities did not disclose information about their regulatory
tools, as they were not responsible for the business climate in their industries,
consumer safety and blocked initiatives of business, consumers and the authorized
body of reforms for further improvement of the regulatory system. In addition, state
bodies sought to introduce new permitting procedures and other aggravating
amendments to laws through the deputies of the Parliament, bypassing the current
system of public appraisal of drafts of the legal acts.
Thus, regulatory (permissive and control-supervisory) procedures have
become the most corrupt tools. With such a volume of administrative transactions,
the regulatory system was not observable and not manageable.
It should be noted that in the system of state regulation, operated at that time, the
dominant position was occupied by the state, which established rules of the game,
usually aimed at ensuring the interests of the state. In such a system, business did not
have residual levers of influence and was under the weight of the administrative burden.
As a consequence, the business shifted its costs, arising from such regulation, to the
consumer. Thus, the consumer remained the most vulnerable part of such a system.
The subject of regulatory policy are regulatory instruments and legislative
requirements, in other words, the norms of regulatory legal acts which are
prescribing mandatory behavior, setting rules, parameters and standards.
The main tools of regulation in the field of entrepreneurship are:
 Permissions;

 Control and supervision;
 information tools.

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