Yesterday the documentary from Jim and Maureen Tusty was presented first time in Canada, Toronto on Estdoc Festival. The audience received the movie with standing ovations. This is actually not a suprise. Tusty’s documentary describes very well the fate of Estonia between nazi ja communist dictatorships, the fight against the tyranny and victory, achieved during the “singing revolution”. This is extraordinary and true story, which is at the same time very moving. In some weeks “Singing revolution” will arrive cinemas across the United States. When You want to see this extraordinary movie in Your cinemas, please register in the homepage of the documentary. It is really worth to see it.
In the recent World Bank study “Doing Business 2008″ Georgia which some years ago was on 122th position has raised to 18. place, immadiately after Estonia. This is best proof, that radical liberal reforms have really worked in Georgia. Georgia has liberalized its economy, moved away from lot of regulations, fought down corruption, introduced flat rate 12% tax, abolished most of custom tariffs. This has created real economic boom in Georgia, bringing in nearly 3 billion USD investments this year. It is easier to do business in Georgia than in any other transition country except Estonia. Looking on so called “developed” countries, Germany is on the same list on 20th, France 31th, Italy on 53th position. Georgia is really now in the mind of business.
As one of the lastest in the Black Sea region Bulgaria is after Russia, Ukraine, Georgia and Romania moving to the flat tax, introducing it on the lowest level in the World – to 10 percent. Ruling socialist-lead coalition has soon adopted ta plan and it is now under discussion in Parliament with other legislation connected with 2008 budget. This bold move is following last years radical tax cut, when Bulgaria slashed its corporate income tax to flat 10 percent. IMF issued its usual warnings, that such cuts are very bad as they threaten the balance of budget. Results of first year low corporate tax had proved opposite – earnings from it have been more as 40 higher as predicted. This has encouraged to do the same with personal income tax. Bulgarias example proves once again, tax low taxes boost economic growth and hit hardly informal or grey sector. Meeting with the Prime Minister Stanishev I encouraged him to continue on the radical way of reforms, boosting so Bulgarias growth and recovery. It was good to see, that on the flat tax, the Prime Minister did not needed actually encouragement – he has made its decision and keeps it. So we can wish all the best.