Red tape hinders growth
Press Release (11 February 2014).
The results of the World Bank’s “Doing Business Report 2014” reaffirm the views and concerns of the Association of Large Scale Development Projects over the negative impact red tape has on business activity and how it blights our country’s efforts to attract investments, which will assist in the implementation of large scale development projects.
The report, which was presented locally by the Cyprus Investment Promotion Agency (CIPA), indicates how easy it is to do business in a total of 189 countries.
While Cyprus ranked 39th in the Report’s overall standings, it held 103rd place in the field of property registration and 108th in providing building permits. Compared with 2013, our country’s performance waned when it came to indexes such as, “performance contracts” and “starting a new business”. Furthermore, in order to secure building permits one must go through nine procedures, while the time needed to secure the permit is estimated at 677 days. In the report’s 10 indexes, Cyprus improved its ranking in only three, remained steady in one and declined in six.
On the occasion of the Report’s findings being publicised, the Association of Large Scale Development Projects is calling on the government and all stakeholders to move ahead with all the necessary measures that will contribute to reducing bureaucracy, update and speed up the procedures, so as to create a more business friendly environment.
The Association’s press spokesman, Mr Andreas Demetriades, said that “growth and bureaucracy are two incompatible concepts”, adding that “if we want to attract investors, we must as a state create the business friendly environment required and offer the necessary incentives”. He explained, “Competition is intense; in many cases, bureaucratic dysfunctions and onerous conditions have led foreign investors to seek other, more business friendly destinations”.
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About the Association of Large Scale Development Projects
The mission of the Association of Large Scale Development Projects is to promote and realise large scale development projects in Cyprus. Its goal is to restart the economy and contain unemployment. The Association is a member of the Cyprus Chamber of Commerce and Industry (CCCI) and represents more than 25 companies active in Cyprus. The Association’s members come from the entire spectrum of the Cyprus economy and represent projects with a total value in excess of € 8 billion. Among the Association’s main priorities is the issue of creating a friendly business environment, so as to overcome barriers that discourage or eliminate foreign investors.