Djankov, follow Saakashvili’s example

On Oct 06, 2009 the president of Georgia Mikheil Saakashvili introduced the Economic Freedom Act. The main points in it were:

1. Compulsory referendum on proposals for tax increase or the implementation of new taxes
2. Inclusion of statutory limitation of government expenses to a level of 30% form GDP and a budget deficit up to 3% of GDP in the constitution
3. Creation of new agencies except for the currently existing ones in the sphere of financial services, communications and energetics to be prohibited by law
4. Prohibition of introduction of new licence regimes
5. Prohibition of government-controlled prices

"Our experience shows that there would not be a place where something good could happen if government was present." said Saakashvili. "Low and simple taxes are the biggest achievement of Georgia that attracts investors, creates new work places and gives more money to people and firms. So it is our obligation to secure the existence of that type of politics regardless of any political changes in future"

During his speech the president also addressed the foreign diplomats who were present and proposed them to send Georgian experts in their countries in order to help them make progress with the reforms at lest to a certain level or even reach Georgia. 

Everything Saakashvili said applies to Bulgaria to a full extent – up until now it is easy to see that the vice premier Djankov has the required recourses – power, knowledge and trust from society – at his disposal to make the most necessary reforms. The easiest way is just to write down the topics in an act and to keep up with the implementation of the act. By the way, Mr Djankov should not only be proud with the reduced and flat taxes but should also propose Bulgarian assistance for similar reforms to other countries.

Higher levels of economic freedom mean higher levels of income, entrepreneurship and choice. If this is what the new government aims at, it should certainly follow the example of Georgia.

Level of economic freedom (100 stands for the highest economic freedom)

Source: Index of Economic Freedom, The Heritage Foundation