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Sub-Nationa l Doing Business in the Philipp ines 2011Asian Urban Forum, November 15, 2011
Lai-Lynn A. B. BarcenasAIM Policy Center
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What does Doing Business measure?
Why expand the Doing Business to the subnational level?
What are the key findings of the study?
How easy is it to get the necessary permits to start a business,
construct a warehouse, and transfer land title?
What are the global good practices in the Philippines?
Outline of Presentation
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What does Doing Businessmeasure?
Doing Businessindicators:
Focus on regulations relevant to the lifecycle of a small to medium-sized domesticbusiness in the largest business city
Are built on standardized case scenarios
The objective: efficient regulations,accessible to all, and simple to implement
DO NOT measure all aspects of the business environment such as macroeconomicstability, corruption, level of labor skills, proximity to markets, or of regulation specific toforeign investment or financial markets.
3
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Closer to an apples- to- apples comparison
Expands Doing Businessbeyond the largest business city
Captures local differences in regulations or enforcement
Gives specif ic locations an opportunit y to tell their story
and provides a tool for locations to compete globally
Provides informat ion on good practices within the samecount ry that can be easily repl icated
Why expand Doing Businesstothe subnational level?
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Doing Business in the Philippines
2011 covers 25 cities
Doing Business in the Philippines2011 updates 2008 data and expandsthe analysis to 25 cities. The studymeasures national and localregulations across the country in 3areas of the life of a business:
1. starting a business
2. dealing with constructionpermits
3. registering property
Second in a series of reportsundertaken in partnership with theAsian Institute of Management Policy
Center
Data collected with the help ofmore than 500 private sectorcontributors and public sector officials
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65% of cities benchmarked in 2008 and again in 2010 haveimproved in at least one area measured
Computerization and multiple service providers make it easier todo business, lower transaction costs and increase transparencyacross the Philippines
High number of procedures continues to be a challenge forentrepreneurs
Wide variation in local business regulation across the countrypoints to ample room for further business reforms
National level business reforms needed for more results Cities can learn from the existing good practices of their peers and
become more competitive nationally and globally
Key findings
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19 business reforms since 2008made it easier to do business in thePhilippines
City or departmental reforms Implementation of national reforms
Start ing abusiness
Dealing withconstruction
permits
Registeringproperty
Start ing abusiness
Dealing withconstruction
permits
Registeringproperty
Caloocan Cebu City Davao City Las Pias
Makati
Malabon Mandaluyong
Mandaue Manila Marikina
Muntinlupa
Navotas Paraaque Pasay Quezon City San Juan Taguig
Valenzuela
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Too many requirements to start abusiness
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Majority of permit requirementsduring pre- and post-constructionphases
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Variation in time and cost toregister property
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Philippine cities have goodpractices
Indicator
Global Rank
(183 economies)
Days to deal with construction permits
Zamboanga City (46 days) 5
Days to register property
Mandaluyong (22 days) 49
Cost to register property
Mandaue (3.35% of property value) 64
Cost to deal with construction permitsDavao City (94.24% of income per capita) 67
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but there is room forimprovement
Indicator
Global Rank Range
(183 economies)
Number of procedures to register property
8-9 procedures 137-159
Number of procedures to deal with construction
permits
25-36 procedures 155-178
Number of procedures to start a business15-22 procedures 175-183
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Thank youwww.doingbusiness.org/philipines
www.policy.aim.edu
The project was funded by the
International Finance Corporation of the World Bank Group,
Australian Agency for International Development (AusAid),
Canadian International Development Agency (CIDA), and
United States Agency for International Development (USAID) through theirLocal Implementation of National Competitiveness for Economic GrowthProgram (LINC-EG).