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Doing Business – Overview
Launched 8 years ago.
Goal: to provide an objective basis for understanding and improving the regulatory environment for business.
From 5 indicator sets in 133 economies to 10 in 183 economies.
The objective: efficient regulations, accessible to all, and simple in their implementation.
Focus on regulations relevant to the life cycle of a small to medium-sized domestic business based on standardized case
DO NOT measure all aspects of the business environment.
Doing Business indicators – 10 areas of business regulation
Start-up Expansion Operations Closing Starting a
business
Minimum capital requirement,
procedures, time and cost
Registering property
Proc, time and cost
Getting credit
Credit information systems
Movable collateral laws
Protecting investors
Disclosure and liability in related party transactions
Enforcing contracts
Proc, time and cost to resolve a commercial dispute
Dealing with construction permits
Proc, time and cost
Employing workers
Flexibility in hiring, work schedule, redundancy procedures
Paying taxes
Payments, time and Total Tax Rate
Trading across borders
Documents, time and cost
Closing a business
Time, cost and recovery rate
Property rightsInvestor protectionAccess to credit
Entry Administrative burden Flexibility in hiring
Recovery rateReallocation of assets
How does it work? Doing Business methodology… Time and Motion indicators
Time and motion indicators
Starting a business Dealing with construction permits Registering property Paying taxes Trading across borders Enforcing contracts Closing a business
Legal scoring indicators: Rwanda companies law again drives change
Extent of Disclosure• Approval
of related-party transactions
• Disclosure requirements
Extent of Director Liability• Ability to
hold interested party liable
• Available remedies
Ease of Shareholder Suit•
Information available during trial
• Access to company documents
1. Based on a standardized case
2. Establishes indices with scoring scale
3. Gather all the relevant laws, regulations
4. Assigns value based on laws, regulation
5. Main index is often a function of underlying indices
Rwanda’s new companies law strengthens investor protection
Scoring (legal) indicators
Employing workers Protecting investors Getting credit
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Where we get our data
Survey design: • Originally developed in
consultation with academic advisers
• Business case with assumptions on legal form size, location, nature of operations
Survey collection: • over 8,000 local professionals
advising on legal and regulatory requirements
• Lawyers, judges, accountants, freight-forwarders, architects, government officials)
• Mostly pro bono• Global and regional alliances (Allen
& Overy, Lex Mundi, PWC, Law Society, Union of Notaries...)
Data collection and verification: • Word & online surveys collection• Follow up through conference calls,
written correspondence, country visits)
• Review of applicable laws and regulations
Reform corroboration: • Information update round with
country offices• Reform update review through
ED offices
JAN – MAY
MAY- JUNEJULY -SEPT
A twelve month project cycle
Data analysis and government feedback - Coding of 52,000 data points
with Excel- 287 reforms recorded
Publication/writing
Report production- 12,000 copies sold
Media prep- 5,739 articles - and mentions
Final data / contributors list- 8,000 contributors- interaction with 183 governments
Surveys- generation- 12,000 sent
Translations
Website- 2 million visits last year
Data collection- Conference calls & VC’s- written correspondence- Travel to 43 countries in DB10
Dec- Jan
Feb- May
June- Aug
Sept- Nov
Note: refers to Doing Business 2010 cycle
Launch- 58 launch events in 25 countries
June 1st cutoff date for reform
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Doing Business 2010: Reforming through Difficult Times
Update of 10 topics New in DB2010 Other products
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
Business regulation and reform in the context of the global crisis
EWI and social protection
Worker Protection: Researching ILO core labor standards
Piloting a new infrastructure indicator
Add Cyprus, Kosovo
Report, academic papers, country summaries, website database www.doingbusiness.org
Translated into Spanish, French, Arabic
Law Library
Special Reports on Paying Taxes + DB in the Arab World 2010
Subnational studies on China, Colombia, India, Kenya, Mexico, among others
Peer-learning events in Abu Dhabi, Mauritius
Outreach: 4,845 media citations as of 31 Oct ’09
10 new reform case studies
183 economies
1. Singapore 16. Finland
2. New Zealand 17. Mauritius
3. Hong Kong, China 18. Sweden
4. United States 19. Korea, Rep.
5. United Kingdom 20. Bahrain
6. Denmark 21. Switzerland
7. Ireland 22. Belgium
8. Canada 23. Malaysia
9. Australia 24. Estonia
10. Norway 25. Germany
11. Georgia 26. Lithuania
12. Thailand 27. Latvia
13. Saudi Arabia 28. Austria
14. Iceland 29. Israel
15. Japan 30. Netherlands
Top 30 on the ease of Doing Business 2010
Key findings in this year’s report
Against backdrop of global financial and economic crisis, record number of reforms recorded: 287 reforms in 131 countries; 20% more than in the year before.
Focus on SMEs for job creation. Regulatory ease of starting, operating and closing a business influences how well firms can cope and adjust.
Reforms more likely in developing economies: Two-thirds of reforms in low- and lower-middle-income economies.
Rwanda first Sub-Saharan African country to become top reformer: Reforms in 7 of the 10 areas; from143 to 67 in aggregate ranking.
2 regions stand out for reform pace in 2008/9: Eastern Europe and Central Asia (sixth year in a row) and Middle East and North Africa
The top 10 reformers in 2008/09
Economy 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
Rwanda
Kyrgyz Republic
Macedonia FYR
Belarus
United Arab Emirates
Moldova
Colombia
Tajikistan
Egypt, Arab Rep.
Liberia
Percentage of countries with at least one positive reform
96%
89%
75%
71%63%
59%
63%
High Income OECD
Eastern Europe and Central Asia
Sub-Saharan Africa
Middle East and North Africa
Latin America and
Caribbean
South Asia
East Asia and Pacific
Eastern Europe and Central Asia reformed the most, followed by Middle East and North Africa
Ease of Doing Business – by Region
287 reforms in 131 economies in 2008/09 made it easier to do business
Reforms gained momentum in Developing Economies
Broad reform programs more common in developing economies
Following a longer-term agenda aimed at increasing the competitiveness of their firms.
Continually pushing forward and staying proactive.
Following a clear direction in their policy agenda while responding to new economic realities.
Some Insights by Indicator
Big improvements in starting a business since 2004
One-stop shops and risk-based systems popular in construction permitting
Increased investor protections in Africa as a result of new company laws
In bankruptcy, creditors recover more in high income OECD economies
69
32 30 28 27
2017
Average recovery rate (cents on the dollar) in 2008/09
Global Average
Peer-learning and benchmarking: completed reforms motivated or informed by DB
2004 2005 2006 2007 2008 20090
50
100
150
200
250
300
About 270 reforms since 2004
270Sub-
Saha-ran
Africa ; 36
EAP; 2
ECA; 47
LAC; 21
MENA; 17
OECD; 4
127 reforms in 2008/9
Reform task forces in over 30 countries • At the Prime Minister’s or President’s level (e.g. Colombia, Burkina Faso, India)
• At the ministerial level (e.g. Rwanda, Egypt, Kenya, Liberia, Sierra Leone, Kazakhstan, Saudi Arabia)
Using Doing Business to learn from and cooperate with others
• Peer-learning events in El Salvador (Central America), Mauritius (Small Island States), Abu Dhabi (Arab World).
• Ease of Doing Business action plan for 21 members of Asia-Pacific Economic Cooperation (APEC).
Learning from others
“What I like about Doing Business … is that it creates a forum for exchanging knowledge. It’s no exaggeration when I say I checked the top ten in every indicator and we just asked them “What did you do”? If there is any advantage to starting late in anything, it’s that you can learn from others.”
Dr Mahmoud Mohieldin, Egypt’s Minister of Investment, and Doing Business 2010 top reformer
Growing body of research drawing on Doing Business
405 articles published in peer-reviewed academic journals, about 1,140 working papers
Some findings of recent research:
Higher entry costs significantly reduce output per worker and skilled employment. (Barseghyan (2008), Freund and Bolacky (2008), Dulleck et al (2006))
Women are particularly affected by regulation and its impact on entrepreneurship. (Ardagne and Lusagi (2009))
Economy’s governance structure and natural resources influence motivation for reform (Amin and Djankov, 2009)
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Thank you. For more information:www.doingbusiness.org
