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Armenia: Promoting Good Economic Governance and Economic Security through Regulatory Reform

Jacobs, Cordova & Associates designed and is helping to implement the national Regulatory GuillotineTM reform in Armenia 2012-2015. The goal of the reform will be to cut the cost of doing business, broadly understood (that is, regulatory costs that go beyond the Doing Business indicators), in Armenia by at least 50%, which will set into a series of beneficial reactions in the business and investment communities. To do this, the government of the Republic of Armenia (GoA) with support from multi-donor consortia has launched a program of systemic reform to improve national competitiveness by updating its regulatory policies and policy instruments to stimulate market-driven growth. On October 13, 2011, with the establishment of the National Centre for Legislative Regulation (NCLR) Project, the government of Armenia launched a broad regulatory reform based on the regulatory guillotine method. As recommended by JC&A, the scope of the reform was set broadly: the review is to cover “all legal norms that are broadly defined as any requirement placed on the businesses or on citizens” and will include legal norms implemented by the following agencies:

  • 16 ministries at national level.
  • 10 regulatory bodies at national level.
  • The city government of Yerevan.

The reform is being carried out by the NCLR, reporting to the Council of Legal Acts Reforms Regulating the Economic Sphere of the Republic of Armenia, which is chaired by the Prime Minister of the Republic of Armenia.  A particular goal of this reform is to boost foreign investment. Armenia is highly regulated, with over 25,000 legal norms on the books at the national level, and more added every week. Many of these legal norms are sensible and well designed, but there are contradictions, inconsistencies, and complexities through the legal framework that are burdensome for citizens and businesses, and that discourage investment in Armenia. JC&A is supporting the design and implementation of the Reform process, mentoring reform efforts, strategic guidance on reform benchmarks and facilitating reform debates as well as provide custom-made training for the Client’s staff. This includes establishing the scope and process of the Reform, comprising a comprehensive Operational Plan for the reform.

Armenia, The World Bank/OSCE, 2012-2015.