The Slovak agricultural sector suffers from several problems that hinder the competitiveness of farmers: complicated land ownership, due to which (young) farmers cannot access fields, an unpredictable business environment and bureaucracy and, last but not least, lack of investment in capital equipment.
The administrative burden has decreased by one working day or 8 hours compared to last year, shows the 2019 Bureaucracy Index published by the Institute of Economic and Social Studies in cooperation with the Lithuanian Free Market Institute.
Bureaucracy is still a burden for both entrepreneurs and ordinary citizens. One of the reasons why the political “fight” has not achieved remarkable success in fighting the red tape, is a missing connection between politics and the everyday life of entrepreneurs.
In Slovakia, one of the least popular offices is the Police Traffic Inspectorate, and, more specifically, the Vehicle Registration Department. Yes, you read it correctly – Slovakia is one of three countries in EU28 where the vehicle registry agenda is fully run by the police.
Truth be told, the Doing Business report has lost a significant part of its explanatory power, at least for countries in transition, due to political economy of reforms and disregard of the level of rule of law.
The new Slovak government was elected in the spring of 20162. Fundamental commitments regarding improvements of the business environment appeared also in Government Manifesto announced in April 2016.
Bureaucratic burden is one of the most discussed and topical issues. No wonder! Whatever we may want or not, each one of us meets bureaucracy and administrative obstacles almost every day – in our jobs, businesses, or personal lives.
Examples of senseless Slovak economic policy that combines financial and bureaucratic blows always aimed at a different sector of the economy are thick on the ground. One of the most memorable ones is the imposed levy on singular shops and chains, also known as “food tax”.
Bureaucracy Index was introduced in Slovakia in 2016 by Institute of Economic and Social Studies (INESS) to emphasize the amount of red tape a small entrepreneur has to overcome on a daily basis. It is based on a straightforward methodology, using an analysis of a model company.