Lithuania has long been praised for its rankings in the categories of starting a business, registering property, and enforcing contracts, but it has also been criticized for a heavy administrative burden and red tape pervading the areas of dealing with construction permits, getting electricity, and paying taxes.
In 2016, the Institute of Economic and Social Studies (INESS) from Slovakia decided to fill the gap and the Bureaucracy Index was born. In collaboration with experts from different areas, INESS identified and analyzed all the administrative tasks that the state requires from a model SME company.
Lithuania outstripped its neighbors (Latvia and Poland) and once again was ranked among the top 20 countries in the world in terms of ease of doing business. But Lithuania’s competitors are not sitting around twiddling their thumbs, so last year’s achievement is not guaranteed for this year.
In the most recent ranking of the World Economic forum, which compares the competitiveness of 140 countries around the world, Slovakia ranked 67th. Since we ranked 8 places higher the year before, the media presented this as positive news.
Europe is standing at an essential crossroads. The key challenge here is stopping the decline of international competitiveness.