27.09.2013. Today, the Economic Research Center (ERC) held a roundtable discussion on "Defining Administrative Barriers to Street Trade" within the "Micro-Entrepreneurship Support Project” implemented by Entrepreneurship Development Foundation (EDF) with the financial support of the USAID.
The round table was attended by representatives of the Ministry of Taxes, the National Confederation of Entrepreneurs, the International Finance Corporation, academia and independent think tanks, experts and the media.
Welcoming the participants of the round table, the chairman of EDF Sabit Bagirov briefed on the current state of street trade in Azerbaijan. Emphasizing that street trading is widespread in the world and plays an important role in the development of micro and small business, Sabit Bagirov spoke about the advantages of this form of trade, such as creating additional employment and earning opportunities, reducing the costs of entrepreneurs and consumers.
According to the chairman of the Fund, the institutional regulation of street trade in the capital is carried out by the Department of Trade and Services of the Baku City Executive Power. There is a great need to regulate the legal framework of street trade in our country.
Then, the expert of the Center for Economic Research Gubad Ibadoglu made a presentation on the results of his research on "Defining administrative barriers to street trade." The expert said that street trade in Azerbaijan is widespread in densely populated areas. If we take into account that the able-bodied population of the republic lives and works mainly in Baku, it is possible to come across street trade in the streets and squares of the capital, sidewalks, around markets, bus stops, entrances and exits of metro stations, neighborhoods.
According to the expert, street trade expands the informal economy, creates conditions for tax evasion, corruption, and the sale of low-quality, expired goods of unknown origin. There are many advantages of this type of trade, the most important of which is microfinance. is to provide the opportunity to build and create employment.
The expert then spoke about international experience in this field, citing examples from Japan, the Czech Republic, Spain, Turkey, Italy, Russia and Sweden.
At the end of the presentation, the speaker acquainted the participants with the findings of the study, the results and recommendations. Proposals such as the creation of a regulatory framework, a review of the institutional division of powers, the introduction of a patent-tax system for street trading, the introduction of social insurance for street traders, the establishment of an association and the membership of a new association in Streetnet International was met with interest.
After the presentation, participants addressed questions to the speaker. Afterwards, discussions were held on the research and proposals were voiced.
Presentation: "Defining administrative barriers to street trade." (Gubad Ibadoglu)
Research paper on "Defining administrative barriers to street trading"
