Page 20 - Azerbaijan State University of Economics

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

In addition to the above mentioned methods, methods for calculating costs and
benefits also include other methods such as:
- Analysis of the lowest cost (LCA);
- Analysis of compliance costs (CCA);
- Risk reduction analysis (RRA).
Responsibility for the preparation of RIAs in accordance with the
Entrepreneurship Code of the Republic of Kazakhstan is vested in the regulatory
authorities, since they have the necessary information in the sphere or industry
regulated by it, on which the quality of the RIA procedure depends.
Nowadays, not all regulatory state bodies consider the ARV procedure as
support in the formation of a coherent and qualitative policy in the relevant
industry/sphere. Rather, as an unnecessary and additional formality complicating the
decision-making process. As a result, the procedure for using RIA regulators is
accompanied by a number of problems. At the end of 2016 it was revealed that on
average, every third draft of RIA presented by regulators does not include
calculation of costs for alternative regulatory options.
In addition, every fifth RIA project was submitted without a protocol for public
discussions. Whereas, the conduction of public discussions allows us to identify the
positions of the interested parties, makes the process of reviewing the draft document
transparent, ensures that the positions of the parties are taken into account.
On average, every seventh RIA submitted by state bodies either does not
contain alternatives, or alternatives do not correspond to the proposed regulation or
duplicate each other. It should be noted that the quality of RIAs depends on the
identification of alternatives which are reasonably facilitating the conduct of
entrepreneurial activities. Making a balanced decision at the state level is impossible
without identifying and evaluating alternative approaches to the proposed regulation.
An analysis of the state of regulation of entrepreneurial activity has shown that
RIA procedures are currently being carried out formally, but real discussion, search for
options and calculation of costs are not made. The goals, declared in the introduction of
RIAs, cannot generally be achieved because of the undeveloped indicators of
evaluation. Meanwhile, all the specified procedures in the aggregate extend the period
for drafting laws and other drafts of legislative acts for several months.
More than 60% of RIA projects are marked by a low level of quality analysis,
more than 20% of RIA projects contained inappropriate proposals for regulation.
And only about 10% of RIA projects were aimed to solve existing problems.

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