Transcript Why Business Aliance of Slovakia

Why PAS?
Eugen Jurzyca, Bratislava, February 2010
Why PAS?

situation

Corruption

High level and increasing
Clientelism
 Etatism
 Low trust

Why PAS?

Clean versus dirty villages
Critical mass needed
 Small group of dedicated managers
 Snow ball

Why PAS?
Universities
 Ministry of Economy, Finance
 BEI and Profits

Why PAS?

What politicians said


The State Secretary of the Ministry of Labor, Social Affairs
and Family of the Slovak Republic: “BAS considerably
contributed to the Labor Code Revision by means of
putting pressure on public opinion as well as through
particular suggestions.”
The Minister of Labor, Social Affairs and Family of the
Slovak Republic: “I appreciate every impulse and idea
leading to the reduction of contributions. I believe that it
will facilitate the common goal, i.e. a better business
environment with a low tax and contribution burden.”
Why PAS?

World Bank
Out of the original 24 principal comments of BAS
16 have been taken into consideration in the
present Labor Code that came into force as of 1
July 2003.
 The Labor Code Revision implemented in 2004
was assessed by the World Bank as “the best
reform of labor law legislation”.

Why PAS?

Pas in media, on average one quotation
daily

BEI, WEF, WB, IMD, special surveys
Why PAS?
PAS in Media
384
400
352
300
221
200
118
148
157
2005
2006
100
0
2004
2007
2008
2009
Vi s i ts
Uni que vi s i tors
Pa ges vi ewed
XI.09
X.09
IX.09
VIII.09
VI.09
VII.09
V.09
IV.09
III.09
II.09
XII.08
I.09
XI.08
X.08
IX.08
VII.08
VIII.08
VI.08
V.08
IV.08
III.08
I.08
II.08
XII.07
XI.07
X.07
VIII.07
IX.07
VII.07
VI.07
V.07
IV.07
III.07
Why PAS?
Web page statistics (by google analytics)
8000
7000
6000
5000
4000
3000
2000
1000
0
Real GDP Growth
12
10.6
Economic reforms
10
8.5
8
%
6.7
6.2
6
4.6
4
3.9
2
4.8
EU 27
5
3.5
3.2
2.5
2
1.4
1.2
2.9
Slovakia
2
1.3
0.8
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
Why PAS?

Why successful reforms were
implemented in 2004, 2005, survey
Others
Elections 1998
Clear reform plan
Weak oposition
Weak democracy
Bad starting point
Elections 2002
Small but influencial group of experts
0
10
20
30
40
50
60
70
80
Why PAS?
I. Government reform Measures
Weight of reforms
by panel
Benefit for
one year
Reforms with
costs
estimated
Author’s
costs
estimation
Reforms of first wave: Border opening, price liberalisation, privatisation
10 %
500
Privatisation and restructuring banks
7%
350
350
0,15
Increasing transparency (e.g. Freedom of Information Act, public procurement)
3%
150
150
0,03
Allowing foreign investors to participate in Slovak privatisation
10 %
500
Tax reform (flat tax, unification of VAT rates)
21 %
1050
1050
0,03
Labour market reform (Labour Code)
10 %
500
500
0,01
Pension reform
4%
200
200
0,06
Health care reform
2%
100
Others: Increasing reliability abroad, public finance reform, investment incentives, etc.
5%
250
Management of the entry to EUROZONE
3%
150
Abolishing the marginal payments in health care system, changes in tax system...
-1 %
-50
EU entry
12 %
600
World economic boom
4%
200
Globalisation impact
4%
200
Majority of people in Slovakia is willing to work for low salaries
2%
100
Others: Geographic location, decrease of oil prices, weakening of USD, etc..
4%
200
€ 2250 mil.
€ 0,28
mil.
Total:
100,0%
€ 5000 mil.
8000%
Why PAS?

Investment into business environment is
extremely efficient, but difficult to
organize