Lagging behind a former Soviet republic in caviar production is one thing. But now the US, that champion of capitalism, has to face the news that the World Bank and International Finance Corporation believe that autocratic Azerbaijan contains fewer bureaucratic hurdles for starting a business.
The latest installment of the duo's Doing Business series claims that it takes three bureaucratic procedures and one percent of per-capita income to get a business going in Azerbaijan, whereas in the US it takes twice as much red tape, and 1.5 percent of per-capita income.
But before entrepreneurs start packing for Baku, some divination of these findings is due.
The speed and the cost of starting a business are just two out of a slew of yardsticks used to gauge countries' business friendliness. Overall, the US is perched far above Azerbaijan as a place to do business -- #4 out of 188 countries, compared with #70.
In those sub-categories where Azerbaijan outperformed the US, a lot might be lost between the numbers.
The report looks at laws and regulations, but does little to look behind them and gauge informal business practices; an area in which Azerbaijan has something of a reputation.
Many local businesspersons, especially for small and medium-sized operations, complained to TI that running a business requires paying off politicians, and that some areas of the Azerbaijani economy are dominated by political elites and sealed off to outsiders.
Such caveats do not appear in the Doing Business report. While the World Bank and IFC make as many disclaimers as they make points, considering such reported factors when measuring the ease of doing business in Azerbaijan might give a more complete picture.