Despite the fact that most of economic experts hailed draft law on Licensing and Permits, they also point to number of stipulations that “allow different interpretations.” Moreover, the experts say, some articles of the document contradict others and main principles of the law.

The government submitted the draft to parliament on May 14. After already one month, the document is still actively being debated in different committees. The document promises to introduce number of innovations in the field already well known in Europe. Primarily, it sets to establish so called “one window” and “silence is a sign of consent” principles. They will contribute to formation of efficient licensing system and reduction of barriers to business. Its authors did not hesitate to call their work “revolutionary.”

Young Economists’ Association was the first Georgian NGO to come up with critical remarks on the draft. The association’s executive director Ana Kadagidze said though the remarks are mostly editorial and technical, their ignorance might lead to serious consequences.

For example, the draft includes extension of already extended timeframe for issuing licenses with three more months “carried out by the government based on argument request of the relevant body.” According to the YEA, this norm not only contradicts to requirements of the General Administrative Code which stipulates that term for issuing of an administrative act should not exceed three months. After all, one of the founding principles of the document is to liberalize and improve licensing.

Katamadze also spoke against an article which suggests that the issuing body is entitled to make decision of extending administrative proceedings.

“Considering that this term is too lengthy and making decisions is possible within much shorter period, it would be appropriate to define it with seven days from application. Existence of the 15 day period puts applicants in unclear position,” aid the association’s expert Niko Tevdorashvili.

Mechanism of overseeing licensing was also subject to criticism. According to the draft selective audit by the issuing body based on its own administrative act is proposed.

“For prevention of corruption and support of free business environment it would be more appropriate if such audit would take place based on a judges’ decree,” Katamadze suggested.

These and other remarks were already sent to all agencies involved, including State Minister Kakha Bendukidze. Katamadze noted that Mr. Bendukidze recognized some of them and promised to make changes in the draft.