1 / 25

Doing Business 2010 : Reforming through Difficult Times

Doing Business 2010 : Reforming through Difficult Times. Overview Dahlia Khalifa dkhalifa@worldbank.org. Doing Business – Overview. Launched 8 years ago. Goal: to provide an objective basis for understanding and improving the regulatory environment for business.

kalei
Download Presentation

Doing Business 2010 : Reforming through Difficult Times

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Doing Business 2010:Reforming through Difficult Times Overview Dahlia Khalifa dkhalifa@worldbank.org

  2. DoingBusiness – 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.

  3. Doing Business indicators – 10 areas of business regulation • Recovery rate • Reallocation of assets Property rights Investor protection Access to credit • Administrative burden • Flexibility in hiring • Entry

  4. 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

  5. Legal scoring indicators: Rwanda companies law again drives change Rwanda’s new companies law strengthens investor protection • Based on a standardized case • Establishes indices with scoring scale • Gather all the relevant laws, regulations • Assigns value based on laws, regulation • Main index is often a function of underlying indices • Scoring (legal) indicators • Employing workers • Protecting investors • Getting credit

  6. Where we get our data • 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...) • Survey design: • Originally developed in consultation with academic advisers • Business case with assumptions on legal form size, location, nature of operations • 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

  7. A twelve month project cycle Surveys - generation - 12,000 sent Launch - 58 launch events in 25 countries • Data collection • Conference calls & VC’s • written correspondence • Travel to 43 countries in DB10 Dec- Jan Website - 2 million visits last year • Data analysis and government feedback • Coding of 52,000 data points with Excel • 287 reforms recorded Sept- Nov Feb- May • Media prep • 5,739 articles • and mentions Report production - 12,000 copies sold June- Aug Translations June 1st cutoff date for reform • Final data / contributors list • 8,000 contributors • interaction with 183 governments Publication/writing Note: refers to Doing Business 2010 cycle

  8. Doing Business 2010: Reforming through Difficult Times • 183 economies

  9. Top 30 on the ease of Doing Business 2010

  10. 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

  11. The top 10 reformers in 2008/09

  12. Eastern Europe and Central Asia reformed the most, followed by Middle East and North Africa Percentage of countries with at least one positive reform 96% High Income OECD Eastern Europe and Central Asia 89% 59% 63% 63% 71% 75% Middle East and North Africa South Asia Latin America and Caribbean East Asia and Pacific Sub-Saharan Africa

  13. Ease of Doing Business – by Region

  14. 287 reforms in 131 economies in 2008/09 made it easier to do business

  15. Reforms gained momentum in Developing Economies

  16. 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.

  17. Some Insights by Indicator

  18. Big improvements in starting a business since 2004

  19. One-stop shops and risk-based systems popular in construction permitting

  20. Increased investor protections in Africa as a result of new company laws

  21. In bankruptcy, creditors recover more in high income OECD economies Global Average

  22. Peer-learning and benchmarking: completed reforms motivated or informed by DB About 270 reforms since 2004 127 reforms in 2008/9 270 • 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).

  23. 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 MahmoudMohieldin, Egypt’s Minister of Investment, and Doing Business 2010 top reformer

  24. 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)

  25. Thank you. For more information:www.doingbusiness.org

More Related