Bangladesh demoted in keyWB Doing Business gauge

FE ReportBangladesh has been downgraded by four notches in a key World Bank annual "Doing Business" gauge as acute power crisis has weighed heavily on the country's overall investment and business climate. The development lender placed Bangladesh at 122 among 183 nations, whose business climate it monitors every year, saying the country showed negative trend in almost all the areas, excepting enforcing contacts. "Bangladesh made getting electricity more difficult by imposing a moratorium on new electricity connections from April 2010 to March 2011 because of an electricity supply shortage," the report said. "This moratorium has led to long delays for customers and has increased the time to obtain an electricity connection," it said. The Washington-based anti-poverty lender and its private sector arm, International Finance Corporation (IFC), launched the ninth edition of the Doing Business report on Thursday. Singapore topped the ranking in the overall ease of doing business, followed by Hong Kong, China, New Zealand; the United States and Denmark. South Korea was a new entrant to the top 10. The report said Bangladesh continues to do well in starting a business, with an expedited registration approval process and automation of name clearance, which now takes only one day compared to seven days in previous years. In the South Asian region, Bangladesh ranks fifth out of the eight countries, but well ahead of India's overall ranking of 132, said a senior official of the WB Bangladesh Office. 'In achieving the 'Digital Bangladesh' vision, the government has introduced online tax filing and electronic bidding in four key government agencies"said Tahseen Sayed, WB's acting country head in Bangladesh. "When technology is used effectively, it not only increases efficiency but also ensures more transparency." According to the dossier, entrepreneurs in South Asia face a regulatory environment that is on average less business-friendly than those in OECD high-income economies. "This means costlier and more bureaucratic procedures to start a business, deal with construction permits, register property, trade across borders, and pay taxes," said a bank statement. In five of South Asia's economies, traders have access to relevant documentation requirements online or through public notices. Meanwhile, fee schedules for electricity connections are easily accessible in three economies. Sri Lanka implemented the most business reforms among the eight South Asian economies putting itself in the 89th position in the global ranking. "Simpler regulations, increased access to information and critical infrastructure are key to an improved operating environment for businesses," said Kyle F Kelhofer, Country Manager, International Finance Corporation (IFC). "Bangladesh's commitment to reform and the efforts to implement regulatory best practices are visible and appreciated by the government, private sector and civil society," said the official. "Doing Business" gauge analyzes regulations that apply to an economy's businesses during their life cycle, including start-up and operations, trading across borders, paying taxes, and resolving insolvency. The present report is the ninth in a series of annual reports comparing business regulations in 183 economies. This year's report, Doing Business 2012: Doing Business in a More Transparent World, measures regulations affecting 11 areas of everyday business activity. They are: starting a business, dealing with construction permits, employing workers, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts, closing a business and getting electricity.