133 nations carry out over 200 reforms
Friday, 5 November 2010
FE Report
Of the 183 countries considered for Doing Business 2011 report released globally Thursday, a record 133 nations carried out over 200 reforms.
The report covered 10 indicators affecting businesses -- dealing with construction permits, employing workers, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a business.
Of the other South Asian nations, India improved its score on the 'closing a business' indicator by taking steps to ease resolution of insolvency cases.
Nepal lowered property transfer costs. Pakistan eased business start-up procedures by introducing an e-service registration system, while Sri Lanka improved its access to finance indicator.
"South Asia has opportunity for further improvement. So far only India has a registry that is unified geographically and by asset type and that covers security interests in companies' movable property. But the registry is limited because it registers only security interests over the assets of incorporated companies, excluding such entities as sole proprietorships," the report added.
This is the seventh 'Doing Business' report published jointly by the WB and IFC. The report helps both local and foreign businesses understand business regulations in a country.
Among South Asian nations, Pakistan topped the list with the 85th position, followed by the Maldives at 87, Sri Lanka at 105, Nepal at 123, Bhutan at 126, India at 133 and Afghanistan at 160.
For the first time, a Sub-Saharan African economy, Rwanda, led the world in 'Doing Business' reforms in seven out of 10 indicators. The Arab Republic of Egypt, Liberia, Moldova, the Kyrgyz Republic and Tajikistan joined Rwanda on the list of global top reformers.
Singapore topped the list for the fourth consecutive time, followed by New Zealand in the second and Hong Kong in the third position.
Doing Business 2011 is the eighth in a series of annual reports investigating the regulations that enhance business activity and those that constrain it. Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 183 economies-from Afghanistan to Zimbabwe and over time.
Against the backdrop of the global financial and economic crisis, policy makers around the world took steps in the past year to make it easier for local firms to start up and operate. This is important.
Throughout 2009/10 firms around the world felt the repercussions of what began as a financial crisis in mostly high-income economies and then spread as an economic crisis to many more. While some economies have been hit harder than others, how easy or difficult it is to start and run a business, and how efficient courts and insolvency proceedings are, can influence how firms cope with crises and how quickly they can seize new opportunities.
Between June 2009 and May 2010 governments in 117 economies implemented 216 business regulation reforms making it easier to start and operate a business, strengthening transparency and property rights and improving the efficiency of commercial dispute resolution and bankruptcy procedures. More than half those policy changes eased start-up, trade and the payment of taxes.
For the first time in the 8 years of Doing Business reports, economies in East Asia and the Pacific were among the most active in making it easier for local firms to do business. Eighteen of 24 economies reformed business regulations and institutions-more than in any other year. The pace of Doing Business reforms had been steadily picking up since 2006, when only a third of the region's economies implemented such reforms. In the past year 75% did. Emerging-market economies such as Indonesia, Malaysia and Vietnam took the lead, easing start-up, permitting and property registration for small and medium-size firms and improving credit information sharing. Hong Kong SAR (China), after seeing the number of bankruptcy petitions rise from 10,918 in 2007 to 15,784 in 2009, is working on a new reorganization procedure.
The momentum in the region may continue. Recently leaders of the Asia- Pacific Economic Cooperation (APEC) organization launched an initiative aimed at making it easier for small and medium-size companies to do business through systematic peer learning and assistance across economies. The idea is that economies in the region that have benefited from making it easier to do business can now share their experience with others. The Korea Customs Service, for example, estimates that predictable cargo processing times and rapid turnover by ports provide a benefit of some $2 billion annually. Singapore's online registration system for new firms saves businesses an estimated $42 million annually.
7 Using firm surveys, planners identified 5 priority areas for the APEC initiative-starting a business, getting credit, trading across borders, enforcing contracts and dealing with permits. The goal is to improve regulatory performance in those areas as measured by Latin America & Caribbean.
India implemented 18 business regulation reforms in 7 areas. Many focused on technology-implementing electronic business registration, electronic filing for taxes, an electronic collateral registry and online submission of customs forms and payments. Changes also occurred at the subnational level. In India, as in other large nations, business regulations can vary among states and cities.
While Doing Business focuses on the largest business city in an economy, it complements its national indicators with sub-national studies, recognizing the interest of governments in these variations.
According to Doing Business in India, 14 of the 17 Indian cities covered in the study implemented changes to ease business startup, construction permitting and property registration between 2006 and 2009. The level of change depends not only on the pace of business regulation reform but also on the starting point.
For example, Finland or Singapore, with efficient e-government systems in place and strong property rights protections by law, has less room for improvement. Others, such as Italy, implemented several regulatory reforms in areas where results might be seen only in the longer term, such as judiciary or insolvency reforms.
Digitisation
Governments around the world are increasingly using technology to improve the efficiency of services and the accountability of public officials.
E-government initiatives range from data centers and shared networks to government-wide information infrastructure and unified service centers for the public. Fifty-four economies introduced information and communication technology in their business start-up processes in the past 7 years, saving time and effort for businesses and governments alike. When Mauritius introduced a computerized system for all types of business registrations in 2006, total registration time fell by 80%. Singapore's online registration system saves businesses an estimated $42 million annually. Electronic services are also more accessible, saving entrepreneurs the time and cost of traveling to government agencies and waiting in line.
Today 105 economies use information and communication technology for services ranging from name search to entirely online business registration. New Zealand, the easiest place to start a business, was the first to launch an online company registration system, in 1996.
Of the 183 countries considered for Doing Business 2011 report released globally Thursday, a record 133 nations carried out over 200 reforms.
The report covered 10 indicators affecting businesses -- dealing with construction permits, employing workers, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a business.
Of the other South Asian nations, India improved its score on the 'closing a business' indicator by taking steps to ease resolution of insolvency cases.
Nepal lowered property transfer costs. Pakistan eased business start-up procedures by introducing an e-service registration system, while Sri Lanka improved its access to finance indicator.
"South Asia has opportunity for further improvement. So far only India has a registry that is unified geographically and by asset type and that covers security interests in companies' movable property. But the registry is limited because it registers only security interests over the assets of incorporated companies, excluding such entities as sole proprietorships," the report added.
This is the seventh 'Doing Business' report published jointly by the WB and IFC. The report helps both local and foreign businesses understand business regulations in a country.
Among South Asian nations, Pakistan topped the list with the 85th position, followed by the Maldives at 87, Sri Lanka at 105, Nepal at 123, Bhutan at 126, India at 133 and Afghanistan at 160.
For the first time, a Sub-Saharan African economy, Rwanda, led the world in 'Doing Business' reforms in seven out of 10 indicators. The Arab Republic of Egypt, Liberia, Moldova, the Kyrgyz Republic and Tajikistan joined Rwanda on the list of global top reformers.
Singapore topped the list for the fourth consecutive time, followed by New Zealand in the second and Hong Kong in the third position.
Doing Business 2011 is the eighth in a series of annual reports investigating the regulations that enhance business activity and those that constrain it. Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 183 economies-from Afghanistan to Zimbabwe and over time.
Against the backdrop of the global financial and economic crisis, policy makers around the world took steps in the past year to make it easier for local firms to start up and operate. This is important.
Throughout 2009/10 firms around the world felt the repercussions of what began as a financial crisis in mostly high-income economies and then spread as an economic crisis to many more. While some economies have been hit harder than others, how easy or difficult it is to start and run a business, and how efficient courts and insolvency proceedings are, can influence how firms cope with crises and how quickly they can seize new opportunities.
Between June 2009 and May 2010 governments in 117 economies implemented 216 business regulation reforms making it easier to start and operate a business, strengthening transparency and property rights and improving the efficiency of commercial dispute resolution and bankruptcy procedures. More than half those policy changes eased start-up, trade and the payment of taxes.
For the first time in the 8 years of Doing Business reports, economies in East Asia and the Pacific were among the most active in making it easier for local firms to do business. Eighteen of 24 economies reformed business regulations and institutions-more than in any other year. The pace of Doing Business reforms had been steadily picking up since 2006, when only a third of the region's economies implemented such reforms. In the past year 75% did. Emerging-market economies such as Indonesia, Malaysia and Vietnam took the lead, easing start-up, permitting and property registration for small and medium-size firms and improving credit information sharing. Hong Kong SAR (China), after seeing the number of bankruptcy petitions rise from 10,918 in 2007 to 15,784 in 2009, is working on a new reorganization procedure.
The momentum in the region may continue. Recently leaders of the Asia- Pacific Economic Cooperation (APEC) organization launched an initiative aimed at making it easier for small and medium-size companies to do business through systematic peer learning and assistance across economies. The idea is that economies in the region that have benefited from making it easier to do business can now share their experience with others. The Korea Customs Service, for example, estimates that predictable cargo processing times and rapid turnover by ports provide a benefit of some $2 billion annually. Singapore's online registration system for new firms saves businesses an estimated $42 million annually.
7 Using firm surveys, planners identified 5 priority areas for the APEC initiative-starting a business, getting credit, trading across borders, enforcing contracts and dealing with permits. The goal is to improve regulatory performance in those areas as measured by Latin America & Caribbean.
India implemented 18 business regulation reforms in 7 areas. Many focused on technology-implementing electronic business registration, electronic filing for taxes, an electronic collateral registry and online submission of customs forms and payments. Changes also occurred at the subnational level. In India, as in other large nations, business regulations can vary among states and cities.
While Doing Business focuses on the largest business city in an economy, it complements its national indicators with sub-national studies, recognizing the interest of governments in these variations.
According to Doing Business in India, 14 of the 17 Indian cities covered in the study implemented changes to ease business startup, construction permitting and property registration between 2006 and 2009. The level of change depends not only on the pace of business regulation reform but also on the starting point.
For example, Finland or Singapore, with efficient e-government systems in place and strong property rights protections by law, has less room for improvement. Others, such as Italy, implemented several regulatory reforms in areas where results might be seen only in the longer term, such as judiciary or insolvency reforms.
Digitisation
Governments around the world are increasingly using technology to improve the efficiency of services and the accountability of public officials.
E-government initiatives range from data centers and shared networks to government-wide information infrastructure and unified service centers for the public. Fifty-four economies introduced information and communication technology in their business start-up processes in the past 7 years, saving time and effort for businesses and governments alike. When Mauritius introduced a computerized system for all types of business registrations in 2006, total registration time fell by 80%. Singapore's online registration system saves businesses an estimated $42 million annually. Electronic services are also more accessible, saving entrepreneurs the time and cost of traveling to government agencies and waiting in line.
Today 105 economies use information and communication technology for services ranging from name search to entirely online business registration. New Zealand, the easiest place to start a business, was the first to launch an online company registration system, in 1996.