We can look at it from the perspective of distorted relationship between profit and cost. Second, there are deficiencies in the tax system. Our tax system should be rational and with few distortions. Yet, this is not easily achievable for countries in transition and emerging markets and usually takes a long time. The first is tax category.
Ultimately, the trajectory of economic activity beyond the next few quarters will depend greatly on the extent to which financial and credit markets return to more normal functioning.