Catalonia 2020 Strategy EMPLOYMENT & TRAINING SOCIAL COHESION INNOVATION & KNOWLEDGE ENTREPRENEURISM INTERNATIONALISATION GREEN ECONOMY Catalonia 2020 Strategy Generalitat de Catalunya (Government
of Catalonia) Ministry of Economy and Knowledge http://www. gencat. cat/economiaiconeixement April 2012 Catalonia 2020 Strategy 4 This document,
5. 3. Innovation and knowledge 5. 4. Entrepreneurism 5. 5. Internationalisation 5. 6. Green economy 6. Shaping policy:
of businesses 6. 5. Promoting entrepreneurship 6. 6. Fostering the transition to a more resource-efficient economy 6. 7. Modernising the Administration 6. 8. Promoting strategic infrastructure Catalonia
and building on the experience gained from the two previous Strategic Agreements for the competitiveness of the Catalan economy (2005-2007 and 2008-2011),
ECAT 2020 is designed an initiative to ensure the long-term competitiveness of the Catalan economy and better employment, establishing a roadmap for economic recovery whilst preserving the model of social cohesion.
Taking into account both the headline targets and the seven flagship initiatives established in the Europe 2020 Strategy and the needs of the Catalan economy,
and the green economy. ECAT 2020 is organised around eight strategic lines of action. These are broken down into operational objectives and quantifiable targets for products and services,
and challenges facing the Catalan economy. In its report, CAREC describes the situation and prospects for the Catalan economy and identifies the priorities that should guide policies aimed at helping Catalonia to recover
and begin growing again. The report proposes strategic actions to help the economy recover from the crisis and move towards balanced, sustained growth.
Moreover, it also identifies the four great challenges whose outcome will decide how the Catalan economy develops:
employment, finance, productivity and confidence. The CAREC report stresses that the strategy for the competitiveness of the Catalan economy should revolve around four basic ideas:
-Taking advantage of the crisis to thoroughly overhaul the Catalan economy. -Back to basics, that is relaunching the project for an entrepreneurial Catalonia with a strong and firmly-rooted industrial base in order to attract more sectors with high potential for job creation
and encourage new, emerging knowledge-based sectors. -Eliminating the barriers and rigidity that prevent the Catalan economy from growing.
The public authorities should foster entrepreneurial activity, providing guidance and establishing the necessary conditions to enable future-looking business sectors to advance
adopted by the European council on 17 june 2010, is designed an initiative to help the European economy recover from the crisis
Europe 2020 calls on the European economies to launch new engines to boost growth and jobs,
-Developing an economy based on knowledge and innovation (smart growth; -Promoting a more resource efficient, greener and more competitive economy (sustainable growth),
and Catalonia 2020 Strategy 11-Fostering a high-employment economy that can ensure economic, social and territorial cohesion (inclusive growth).
ECAT 2020 follows the roadmap laid down by the Europe 2020 Strategy, adapting it to the Catalan context
and the priorities of its economy. 3. 2. Previous strategic agreements Catalonia has had experience with two previous strategic agreements for the competitiveness of the Catalan economy since 2005.
On 16 february 2005, the Catalan Government and economic and social stakeholders signed the Strategic Agreement for the Internationalisation, Quality of Employment and Competitiveness of the Catalan Economy.
a strategy for improving the competitiveness of the Catalan economy and employment. ECAT 2020 takes its inspiration from the Europe 2020 Strategy,
The Ministry of Economy and Knowledge, which acts as the technical secretariat for ECAT 2020, is supported also by other units with transversal functions.
firstly, the headline targets and the seven flagship initiatives of Europe 2020 Strategy and, secondly, the needs and priorities of the Catalan economy.
and training The greatest challenge facing the Catalan economy is to create employment. The Government must provide a stable,
Inclusive growth European platform against poverty Social cohesion Resource-efficient Europe Green economy Sustainable growth Innovation Union Innovation and knowledge Smart growth
and adopt measures to combat the informal economy and undeclared work. A commitment should also be made to reducing segmentation
Promoting the social economy is a basic means of correcting inequalities. In the present economic climate, public spending caps greatly restrict the public authorities'capacity to respond to growing social demands.
The creation of new business initiatives in the social economy which has a long tradition in Catalonia is essential to bring out the full potential of social enterprises to create new jobs
and employing highly qualified personnel in the production sector are crucial conditions for increasing the competitiveness of the Catalan economy.
which is one of the strongest points of the Catalan economy. Businesses must maintain or intensify their activities,
Catalonia 2020 Strategy 21 5. 6. Green economy The Catalan economy, like that of the rest of Europe, has taken up the challenge of moving towards more efficient use of resources.
Industry needs to speed up the process of transition towards an economy that produces low levels of greenhouse gas emissions
The green economy offers great economic opportunities to industry, the energy sector, farming and tourism.
-efficient economy 7. Modernising the Administration 8. Promoting strategic infrastructure Each priority corresponds to a number of operational objectives that translate into annually quantifiable measures (products
and the green economy. Targets, budgets and monitoring indicators for each product and service will be established annually.
skills and aptitudes are crucial elements for innovation, productivity and the competitiveness of the economy.
active policies with regard to the labour market and making a decisive contribution to improving employability are two of the challenges facing the Catalan economy.
Operational objective Employment and training Social cohesion Innovation and knowledge Entrepreneurism Internationalisation Green economy STRATEGIC LINE 1. Improving employability 1. 1. Improving
To this end, economic and social stakeholders should undertake to focus collective negotiation on increasing productivity within the Catalan economy. 6. 2. 3. Improving job quality and conditions of employment In order to foster
and training Social cohesion Innovation and knowledge Entrepreneurism Internationalisation Green economy STRATEGIC LINE 2. Improving labour market performance 2. 1. Improving efficiency and information
investment networks and partner search mechanisms. 6. 4. Promoting the strategic adaptation of businesses to the global economy The world economy is currently facing two great challenges:
Within Operational objective Employment and training Social cohesion Innovation and knowledge Entrepreneurism Internationalisation Green economy STRATEGIC LINE 3. Facilitating business access to finance 3. 1. Improving
whilst also providing incentives for research centres with clear industrial potential to transfer know-how to the production system. 6. 4. 2. Increasing research into new technologies with applications in the productive economy It is not easy
and changing fiscal conditions are put forward to the Spanish Government. 6. 4. 4. Increasing the internationalisation of the economy Internationalisation is a key driving force for economic recovery.
in order to encourage more and more businesses to include social concerts in their strategies for competitiveness. 6. 4. 8. Promoting quality tourism Tourism is a strategic sector of the Catalan economy.
higher Operational objective Employment and training Social cohesion Innovation and knowledge Entrepreneurism Internationalisation Green economy STRATEGIC LINE 4. Promoting the strategic adaptation of businesses to the global economy
and effectiveness in the R&d and innovation system 4. 2. Increasing research into new technologies with applications in the productive economy 4. 3. Fostering innovation in business 4. 4
. Increasing the internationalisation of the economy 4. 5. Fostering the transition of businesses to activities with higher added value 4. 6. Promoting improved business
The rural economy has a high margin for generating added value and public policies should reinforce this potential by promoting the introduction of new products (such as ecological),
which has enormous potential for boosting the rural economy, has been the most rapidly growing tourism segment in Catalonia.
Fostering the creation of technology-based companies In line with the need to adapt the economy towards sectors that generate higher added value
the social economy is vital for fostering the integration of groups most at risk of social exclusion.
Government actions to this end are aimed at providing a framework to encourage new business initiatives in the sphere of the social economy. 6. 6. Fostering the transition to a more resource-efficient economy Public policies to support economic activity
should promote the transition towards a more resource-efficient economy as much out of necessity (decreasing dependency on fossil fuels, rising energy prices, security of supply, reducing emissions of greenhouse gases
In line with the Europe 2020 Strategy, ECAT 2020 Operational objective Employment and training Social cohesion Innovation and knowledge Entrepreneurism Internationalisation Green economy STRATEGIC LINE
The Administration should play a key role in facilitating the transformation towards a more sustainable, more efficient economy in terms of use of resources.
and efficiency in all sectors of the economy. 6. 6. 3. Promoting renewable energy sources Renewable energy sources generate business opportunities
In this sphere, Operational objective Employment and training Social cohesion Innovation and knowledge Entrepreneurism Internationalisation Green economy STRATEGIC LINE 6. Fostering the transition to a more resourceefficient economy
can create barriers against trade, investment, the creation of businesses and the efficiency of the economy in general.
and airports restricts the contribution that such infrastructure can make to the competitiveness of the Catalan economy.
the Catalan Government calls for the devolution of powers from Central Government to manage infrastructure that is vital to the competitiveness of the Catalan economy,
Operational objective Employment and training Social cohesion Innovation and knowledge Entrepreneurism Internationalisation Green economy STRATEGIC LINE 7. Modernising Government 7. 1. Preventing legislation
of the economy and as local economic motors, it is important to increase the connectivity of Catalan airports, opening up new routes and developing the air cargo industry.
Operational objective Employment and training Social cohesion Innovation and knowledge Entrepreneurism Internationalisation Green economy STRATEGIC LINE 8. Promoting strategic infrastructure 8. 1. Promoting Catalan
Economic transformation and foreign direct investment driven modernisation have produced substantial structural change in CH's economy.
and from the other parts of the economy (this tendency is reinforced by the hub
therefore, indicators should be assessed in the context of an overall meagre innovation performance of the economy.
and the development of a knowledge-based economy opened up never-before-seen opportunities for regional innovation stakeholders.
As for the new structure of the national innovation system, strategy formulation is currently the responsibility of the Ministry for National Economy.
p. 125) that shows the number of innovation policy instruments used by national and regional governments in 21 OECD economies.
(and ensure the transfer of know how by including advanced economy regions as twin-regions). It was in the framework of this programme that CHIC (that later became one of INNOREG's founding organisations) prepared the RIS of CH, with contributions from Innostart and other consultancy firms.
The role and the growth perspectives of creative and cultural industries in the economy of Budapest Metropolitan Region.
CHIC Central Hungarian Innovation Centre Economy The region's GDP per capita was 4, 387 thousand HUF (€17. 461 1) in 2008, the highest in Hungary.
The region's economy is centered around services: they account for more than 77%of gross value added in the region (82.2%in Budapest),
Thus, inside the region, there are at least three distinct parts with different level of development, different economies etc.
to promote the innovation-and enterprise-oriented development of the knowledge economy; To prepare a map of the activities of organisations taking part in the innovation process,
An Introduction i Foreword In just three decades, the internet has evolved from an experimental tool for researchers to a pervasive, omnipresent backbone for society and the economy.
or of the economy are oriented towards the creation of and the engagement with effective experiments of social innovation, promoting their scalability
Contribute to a low-carbon economy, for instance by lending, exchanging and reusing goods at scale, across geographic boundaries (collaborative consumption).
25 Figure 2 CAPS Stakeholders 26 Citizens and initiatives active in commons-based peer production and sharing economy (e g.
New Economic Models The transformation of societies and economies following the diffusion of digital technologies, with increases in productivity, the redistribution of international divisions of labour,
and the emergence of new professions, has questioned the way the world economy has been organised, the way business can be done,
and economy by linking it to the Internet of things (Iot), sensor network and cloude services in order to support open online social media and distributed knowledge cocreation thus maximising the network effect,
resilient societies and economies, deploying ad hoc networks of citizen experts around client's needs. 16.
while also contributing to a growing economy-has become even more pertinent as Europe endures a financial crisis that impacts the entire functioning of its social system.
but they also provide a framework for developing a comprehensive strategy for cultural heritage in the EU, an asset that offers enormous potential for Europe's economy, society and identity,
In which direction does proceed the EU with its 2020 Strategy for a smart, sustainable and inclusive economy in regard to the cultural sector?
or are expected they only to supply to a creative economy? Two presentations focused specifically on the EU's cultural policy and the crucial role of museums in taking Europe out of its crisis. Beginning with a short discussion on the legacy of the Lisbon Treaty,
If successful, the museum will play a key role in the global market of the'knowledge economy'as WIPO (World Intellectual Property Organization) defines it.
reusing cultural heritage and contributing both to the creative economy and to social innovation. Mr. Verwayen also emphasises the crucial importance of providing people with access to culture-culture that has been collected for centuries in museums, libraries and archives.
where the focus will be placed even more on its contribution to the creative economy and to social innovation.
i e. to transform Europe into'the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth with more and better jobs and greater social cohesion'.
2. Sustainable development-the'green'economy; low carbon emissions; efficiency of resources; and competitiveness; 3. Inclusive growth-enlarged labour market and specialisation;
a high employment economy delivering social and territorial cohesion. Tracking the progress of growth within each priority area will be evaluated against five measurable headline EU-level targets,
However, if all revolves around the economy 49 and job creation, and the word'culture'is mentioned hardly in the EU 2020 Strategy,
as embodiments of citizens'sovereignty and as vehicles for mitigating the effects of capitalistic economies on inequality by redistributing global wealth through welfare.
Consultation on Next EU Strategic Work Programme 2016-2017 iii Executive Summary Small and medium enterprises (SMES) are vital to the European economy and a key focus
Consultation on Next EU Strategic Work Programme 2016-2017 1 1. Introduction Small and medium enterprises (SMES) are vital to the European economy and a key focus
and indeed this diversity constitutes one of their key strengths for the European economy. Our focus in this report is driven on innovation and growth-oriented SMES in all sectors:
Solutions that aim at the gradual uncoupling of economic growth from resource consumption are essential for the sustainability of entire economies.
Climate change will drive innovation across the economy and society. With climate change becoming more and more a reality for Europe and the world,
Emerging economies, such as India and China, are moving up the value chain and becoming major innovation players in their own right.
On the one hand, the migration of many production and manufacturing activities to lower-cost economies shifts the emphasis towards developing intangible assets
while raising specific issues associated with the knowledge economy (e g. it is easier to transfer intangible assets,
Economists call this‘path dependence'or hysteresis. The classical example is the DVORAK keyboard, which is considered superior to Horizon 2020 Expert Advisory Group Innovation in SMES:
as proposed by economists such as Eric Reiss9, Steve Blake and Bob Dorf10. We recognize, however, that such reforms have to be considered as a long term objective.
On the other hand, the increasing importance of intangibles, IPR protection and enforcement in the success of economies and individual businesses mean such issues cannot be ignored.
further steps are necessary to turn this heritage into a lasting asset for Europe's citizens and economy in the digital age;
and to promote the creation of content and new online services as part of the information society and the knowledge-based economy;
called the Hungarian Economy Development Centre (MAG Zrt). Based on the government decree 1085/2014 (II. 28.
this intermediary body has been integrated into the Ministry for National Economy by 15th april 2014. As of 1st january 2014, all managing authorities that used to be controlled by the National Development Agency (NFÜ) work under five ministries that are responsible for the implementation of various Operational Programmes co-financed by the European union in 2014-2020.
This issue can be taken as a specific feature of a broader challenge, that is, the dual economy syndrome:
the Hungarian economy is composed of highly productive and technologically advanced foreign-owned large firms, on the one hand,
The macroeconomic situation, the structure of the economy the overall entrepreneurship culture together with the intensity and type of competition seem to influence firms'behaviour with such a power that STI policy schemes cannot offer strong enough incentives to overrule these unfavourable effects. 5
Hungary is the fifth largest national economy in Central and Eastern europe. The Hungarian GDP per capita at market prices has been €16, 000 in 2008 and €16, 700 in 2012.
The RTIF schemes and various operational programmes financed from European union resources used to be administered by the intermediary body, the Hungarian Economy Development Centre (MAG Zrt.
and the reorganised MAG Zrt. will work under the Ministry for National Economy. Figure 1 Policy governance sub-system of the Hungarian National Innovation System Hungary is a unitary state with a centralised decision-making system with regard to major policy domains,
and about €2 billion for the development of the knowledge economy (i e. support of company R&d and research programmes) out of the total Structural Funds available in the period 2014-2020.9 2 RECENT
The economic crisis had severe impact on the Hungarian economy. According to the forecasts of 1 KSH (2013:
According to the estimates of the Ministry for National Economy, R&d tax credits could amount about 0. 08-0. 1%of the GDP in 2013.
This incentive cost the government about €3. 5 m according to estimates of the Ministry for National Economy
the Hungarian National Reform Programme 2013 foresees special measures to support the change for the low carbon emission economy as well as to support the development of telecommunication technologies
and the IT economy. 2. 2. 4. Innovation Funding Hungarian authorities publish budgetary figures and allocation plans of the EU operational programmes in such a way that budget allocations for innovation are separated not from research,
Development of the knowledge economy) explicitly focus on supporting business innovation. In addition to these priorities, Priority 3 through supporting of ICT developments, Priority 4 through energy rationalisation and Priority 6 through supporting of RDI investments could be mentioned in this context.
and as a result, to mobilise the Hungarian economy and to strengthen its competitiveness. The strategy set the target to raise the amount of R&d expenditures to 1. 8%of GDP
resources of the Structural Fund should be used for the reinforcement of the growth potential of the Hungarian economy,
i) Economic Development and Innovation OP (including the development of the creativity and the knowledge economy, support of innovation, R&d and ICT), ii) Human resources Development OP (development of the education and culture infrastructure,
and iii) Competitive Central-Hungary OP (programmes supporting the development of the knowledge economy, social integration and employment).
public consultation started with stakeholders about the content of the OPS in October 2013 organised by the National Economic Planning Office (under the Ministry for National Economy).
a research-development and innovation (RDI) sectoral strategic white book (KFI ÁSFK) was prepared in the National Innovation Office (NIH) on the request of the Ministry for National Economy in October 2013.
Based on series of interactive workshops (charette) and further consultation with stakeholders, implementations plans are prepared in the Ministry for National Economy.
Smart Specialisation Directions of Hungary that was published for public consultation by the Ministry for National Economy in November 2013.
and the implementation structure of the S3 strategy is defined in the Ministry for National Economy.
A partnership is established between the Regional Innovation Agencies and the Ministry for National Economy for the RIS3 process.
however, their level of involvement is far from that of the more developed economies. Links and co-ordination mechanisms between the national and regional level.
This ambition is served decisively by resources for RDI, SMES and competitiveness, employment and low carbon economy thematic objectives.
took a broad view of the Hungarian economy in line with the scope of the surveillance under the Macroeconomic Imbalance Procedure (MIP).
These countries are rather diverse, e g. in terms of their size, structural composition of the economy, level of socioeconomic development,
and Cyprus. EC 2013c) In addition to the new EU composite indicator, the Ministry for National Economy announced
Hungary is placed as the 26th most innovative economy worldwide. Regarding manufacturing industry performance Hungary is ranked as the 16th as a result of the high share of value added as percentage of GDP in this sector (high proportion in the economy) as well as the significant share of high-tech products within manufacturing exports.
In addition, as far as R&d expenditures in the percentage of GDP concerned, among the regional peers Hungary is ahead of Poland and Slovakia.
and improving the competitiveness of the economy and not really oriented towards addressing major societal challenges,
This issue can be taken as a specific feature of a broader challenge, that is, the dual economy syndrome:
the Hungarian economy is composed of highly productive and technologically advanced foreign-owned large firms, on the one hand,
but could be seen as role model for researchers working abroad. 4) Unfavourable framework conditions for innovation The macroeconomic situation, the structure of the economy, the overall entrepreneurship culture,
The Ministry for National Economy supported by the National Planning Office and the Ministry of National Development are responsible for the preparation of the main development concepts and programmes.
With regards to RIS3, the National Innovation Office and the regional innovation agencies are involved in planning process under coordination of the Ministry for National Economy.
In absence of publicly available statistics or report on competitive versus institutional research funding in Hungary, according to senior government officers of Ministry for National Economy the ratio of competitive versus institutional funding could be estimated for about 40
although Hungary is a small economy that's has limited possibilities to achieve significant impact on them.(+
Ministry of National Economy and National Economic Planning Office, Budapest. NRDIS (2013: Befektetés a jövobe.
June 2013, Ministry for National Economy, National Innovation Office, Budapest. NRP (2011: National Reform Programme 2011 of Hungary.
Ministry for National Economy, November 2013.57 LIST OF ABBREVIATIONS BERD Business Expenditures for Research and development BME Budapest University of Technology and Economics CERN European Organisation for Nuclear
Corporate Visions, Inc. Doing Business 2015 Going Beyond Efficiency COMPARING BUSINESS REGULATIONS FOR DOMESTIC FIRMS IN 189 ECONOMIES A World bank Group Flagship Report 12th EDITION
Doing Business 2015 Going Beyond Efficiency Resources on the Doing Business website Current features News on the Doing Business project http://www. doingbusiness. org Rankings How economies rank from 1 to 189
http://www. doingbusiness. org/rankings Data All the data for 189 economies topic rankings, indicator values,
reform case studies and customized economy and regional profiles http://www. doingbusiness. org/reports Methodology The methodologies and research papers underlying Doing Business http://www. doingbusiness. org/methodology Research Abstracts of papers
700 specialists in 189 economies who participate in Doing Business http://www. doingbusiness. org/contributors/doing-business Entrepreneurship data Data on business density (number of newly registered companies per 1,
000 working-age people) for 139 economies http://www. doingbusiness. org/data/exploretopics/entrepreneurship Distance to frontier Data benchmarking 189 economies to the frontier in regulatory
and the protection of property rights that can be compared across 189 economies from Afghanistan to Zimbabwe and over time.
Thus when an economy does poorly, a disproportionate amount of our debate centers on whether or not it needs a fiscal stimulus,
even more important for an economy's success or failure is the nuts and bolts that hold the economy together
and the plumbing that underlies the economy. The laws that determine how easily a business can be started and closed
Their malfunctioning can thwart an economy's progress and render the more visible policy instruments,
an economy can be brought down or held back by the failure of its nuts and bolts. The World bank Group's Doing Business report is an annual statement of the state of the nuts and bolts of economies around the world and,
as such, is one of the most important compendiums of information and analysis of the basis of an economy's effective day-to-day functioning and development.
Creating an efficient and inclusive ethos for enterprise and business is in the interest of all societies.
An economy with an efficient bureaucracy and rules of governance that facilitates entrepreneurship and creativity among individuals
and course through the economy more easily. After decades of debate there is now some convergence in economics about the roles of the market and the state.
In any national economy there are too many decisions to be made and too great a variety of skills and talents scattered through society,
Doing Business takes the same set of hypothetical questions to 189 economies and collects answers to these.
when checking on an economy's efficacy in enforcing contracts, it measures the time, cost and procedures involved in resolving a hypothetical commercial lawsuit between 2 domestic firms through a local court.
The dispute involves the breach of a sales contract worth twice the size of the income per capita of the economy or $5, 000,
This meticulous insistence on using the same standard everywhere gives Doing Business a remarkable comparability across economies.
at least not at this stage, to conduct such surveys in 189 economies. A lot of the Doing Business data are based on careful collection of de jure information on
what an economy's laws and regulations require. Further, even when, based on a study of one economy or a cluster of economies, some measure is found to be an important determinant of the ease of doing business,
it may not be possible to put this measure to use unless a way is found to collect information on it from all 189 economies.
Nor does the fact that the same measures are collected for all economies automatically mean that they are the right measures.
The same measure may be more apt for one economy and less so for another. As Ken Arrow once pointed out, the medieval English law under
which no one was allowed to sleep on park benches applied to both paupers and aristocrats, but since the latter typically did not consider the use of park benches for napping,
namely the poor. 3 Another problem arises from the fact that the overall ease of doing business ranking is an aggregation of 10 component indicators measuring how easy it is (in the economy concerned) to start a business,
whether it is right to give the same weight to different indicators. 4 Is an economy's speed at 1. There is evidence that human beings are not just frequently irrational
an approach that involves declaring one economy to be ranked above another only if it dominates the other in all 10 indicators.
For many pairs of economies it will not be possible to treat either as ranked above the other;
which ranks a small cluster of economies by using vector-dominance in terms of the 10 indicators.
A downward line between 2 economies represents dominance, and 2 economies that cannot be connected by a downward line cannot be compared with each other.
Hence Singapore is ranked unequivocally above Ireland, which is ranked above Cyprus and so on. Singapore is ranked also above Latvia.
and Ireland. 5 It is true that the figure shows only a small segment of the quasi-order over the 189 economies;
the picture would be populated with pairs of economies that cannot be ranked. That is indeed the disadvantage of vector-dominance.
and now know, is that a significant number of the top 30 economies in the ease of doing business ranking come from a tradition where government has had quite a prominent presence in the economy,
However, all these economies have an excellent performance on the Doing Business indicators and in other international data sets capturing various dimensions of competitiveness.
The top-performing economies in the ease of doing business ranking are therefore not those with no regulation but those in
and adversely affect an economy's functioning. But this does not mean that the lower the tax rates and collections, the better.
There are economies where the tax revenue to GDP ratio is so low that it hampers the government's ability to regulate efficiently
Three years ago a threshold was set such that economies with tax rates below this threshold are rewarded not.
This has reduced the bias in favor of economies that choose not to levy even a reasonable tax on private companies.
The Doing Business team is in the midst Ranking by vector-dominance Singapore Ireland Cyprus Senegal New zealand Latvia Morocco Benin 5. This example of vector-dominance is based only on the top 2 economies
First, all economies were sorted by their ranking, and the first economy for which all 10 indicator rankings are lower than those of Singapore was identified:
Ireland. The process was repeated then for Ireland, and so on for all 189 economies. Second, the analysis was replicated, this time starting with New zealand.
Third, all pairs of economies in the figure were compared (for example, the horizontal line between Singapore and Latvia means that Singapore vector-dominates Latvia
and all economies connected with a vertical line under Latvia). 6. See Besley and Burgess (2004). 7. The report by the Independent Panel on Doing Business is available on its website at http://www. dbrpanel. org/.
/viii DOING BUSINESS 2015 of such an exercise, and it is hoped that independent researchers, wherever in the world they happen to be,
critically, that there are economies that do poorly on the Doing Business indicators but that nevertheless get a lot of foreign direct investment (FDI) from global corporations.
These examples are usually nothing more than a reminder that an economy has many more aspects than the features that are tracked
The flow of FDI into an economy is facilitated by having a better doing business ethos, true,
and, conversely, an economy with poor performance on the Doing Business indicators may make up for it in other ways so as to attract large FDI inflows.
The fact that there are examples of economies that do not do well on the Doing Business indicators
If economy x is growing fast, why does it not rank high on the ease of doing business?
of treating the ease of doing business ranking as an all-encompassing measure of an economy's goodness.
An economy can do poorly on Doing Business indicators but do well in macroeconomic policy or social welfare interventions.
Doing Business measures a slender segment of the complex organism that any modern economy is.
It attempts to capture a segment that is representative of other general features of the economy
but the fact remains that an economy can undo the goodness or badness of its performance on Doing Business indicators through other policies.
which we evaluate an economy's performance. 8 Most of us value greater equality among people;
an economy should try to improve its score underlying the ease of doing business ranking.
Ultimately, the Doing Business indicators are meant to simply hold up a mirror to economies. A poor score should alert a government that it ought to examine its regulatory structure.
but nevertheless improve the economy's performance. If this happens, and there is some evidence that it does,
and creativity both of which are within the power of governments to do can set an economy on the path to greater prosperity and development.
Ultimately, what the report does is to provide a table with a simple ordinal ranking of all 189 economies.
It was in 2005 that the World bank Group management decided to start ranking economies on the ease of doing business
The rankings also proved effective in moving issues of performance and progress in business regulation to the center of policy discussions in a large number of economies.
and made possible meaningful international comparisons of the regulatory performance of economies, contributing, along the way, to increasing the accountability of political actors.
Members of the business community, for instance, could point to the existence of less complex and costly procedures or better-functioning institutions in other economies in the region in their dealings with governments,
and allows governments to benchmark their economy's performance against that of other economies. Notwithstanding the important benefits of rankings
and identify where each economy's practices hold inefficiencies or inadequate legal protections. For example, governments find it useful to compare their own procedures lists for firm start-up with those of other economies that pursue the same goals with less procedural complexity and at lower cost.
Having noted these advantages, we would be remiss if we did not point to some of the disadvantages of ordinal ranking.
When an economy is given a rank there is no sense of how far it is from its closest contenders.
Consider an economy that is ranked at 95, with no other economy at that rank. We know that its closest contenders are at 94 and 96
or how near those other economies are. This means that when economies are packed very densely,
a small improvement can lead to a vast jump in ranking and a small worsening can lead to a large drop in ranking.
To see this, consider an extreme case where 50 economies have exactly the same scores on the indicators underlying the ease of doing business ranking
If one economy does slightly worse, with no change in the performance of all the other economies,
Similarly, if an economy is far behind the economy ahead of it, it can make a large improvement and yet show no gain in the ordinal rank measure.
because it tries to capture the actual distance each economy has to go to reach the frontier of best performance.
This puts on display how each economy performs not only vis-à-vis other economies but also in absolute terms.
Further, the distance to frontier score can shed light on the progress made by individual economies over time in comparison with their own regulatory practices of previous years.
This makes it transparent that an economy can make actual progress and still lose ground in the ranking
when rankneighboring economies do even better. Recent Doing Business reports have given increasing attention to long-term trends in the data with an emphasis on economies'performance with respect to their past performance to balance the short-term perspective that the ranking provides Further,
for reasons of transparency Doing Business makes the disaggregated data available on its website. This allows users to construct alternative rankings with any set of weights they may wish to attach to individual indicators.
and economies making small improvements or regressions in densely packed areas can have a disproportionate gain or loss in ranking.
which would have economies appear in clusters that are ranked then. But this method too comes with its own share of strengths and weaknesses.
CONCLUSION The economy is a complex machine, beyond the full comprehension of any person. Over the years meticulous research, collection of increasingly sophisticated data and the advance of economic theory and innovative modeling have given us a better understanding of this machine.
and measure one of the most important features of an economy the ease with which it is possible to do business, trade and exchange.
There are economies that have benefited greatly from this and it is hoped that Doing Business will continue to provide this service.
we are aware that we still have some distance to go in our understanding of an economy.
Kaushik Basu Senior vice president and Chief Economist The World bank WASHINGTON DC Doing Business 2015 Going Beyond Efficiency Overview Great ideas for new business ventures happen every day and everywhere.
they allow economies to grow, and they improve people's lives. So it is important to understand why some great ideas never come to fruition even as others thrive.
Property transfers are faster and less costly in economies with good land administration systems. And commercial disputes are resolved more efficiently by courts using internationally recognized good practices.
Doing Business collected data for 2 cities in large economies. The data show few differences between cities within economies in indicators measuring the strength of legal institutions,
which typically apply nationwide. Differences are more common in indicators measuring the complexity and cost of regulatory processes,
More than 70%of its economies carried out at least one such reform. Business regulations such as those measured by Doing Business are important for new business creation
Doing Business continues to focus on regulations that affect domestic small and medium-size enterprises, operating in the largest business city of an economy, across 10 areas:
Doing Business has extended its coverage to include the second largest business city in economies with a population of more than 100 million.
These economies are Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United states. In addition,
The distance to frontier score benchmarks economies with respect to a measure of regulatory best practice showing the gap between each economy's performance
because it shows not only how economies are ordered on their performance on the indicators but also how far apart they are.
The distance to frontier score also provides an important complement to the ease of doing business ranking in analyzing changes in an economy's business regulatory environment.
for every economy that goes up another must go down. For more details on the differences between the 2 measures, see the chapter on the distance to frontier
This is particularly likely for economies in the middle of the distribution, in part because they are bunched more closely
therefore tend to have a greater impact on their positions relative to other economies. Another reason is that these are the economies that historically have made more intense efforts to reform business regulation.
The Doing Business website presents comparable data for this year and last, making it possible to assess the extent to which there has been an improvement in business regulation in any economy as tracked by the distance to frontier measure.
Moreover, because most of the changes in methodology involve adding new indicators rather than revising existing ones,
Singapore continues to be the economy with the most business-friendly regulations (table 1. 1)
. And while there was some reordering of economies within the top 20 in the ease of doing business ranking,
17 economies stayed on the list, while 3 entered this year Estonia, Germany and Switzerland.
Economies in the top 20 continued to improve their business regulatory environment in the past year. For example, Switzerland made starting a business easier by introducing online procedures
The 20 economies at the top of the ease of doing business ranking perform well not only on the Doing Business indicators
The economies performing best in the Doing Business rankings therefore are not those with no regulation but those
Moreover, even outside the top 20 economies there is an association between performance in the ease of doing business ranking and performance on measures of quality of government and governance.
For example, in a sample of 78 mostly low-and lower-middleincome economies the distance to frontier score is correlated strongly with the International development association (IDA) Resource Allocation Index
OECD high-income economies have the highest distance to frontier scores on average, indicating that this regional group has the most business-friendly regulations overall (figure 1. 3)
Doing Business database. 4 DOING BUSINESS 2015 TABLE 1. 1 Ease of doing business ranking Rank Economy DTF score Rank Economy DTF score Rank
Economy DTF score 1 Singapore 88.27 64 Cyprus 66.55 127 Mozambique 56.92 2 New zealand 86.91 65 Croatia 66.53 128 Lesotho
The rankings are benchmarked to June 2014 and based on the average of each economy's distance to frontier (DTF) scores for the 10 topics included in this year's aggregate ranking.
For the economies for which the data cover 2 cities, scores are weighted a population average for the 2 cities.
In the year from June 1, 2013, to June 1, 2014,123 economies implemented at least one reform in the areas measured by Doing Business 230 in total.
Twenty-one economies, including 6 in Sub-saharan africa and 6 in the OECD high-income group, implemented 3
more than 80%of the economies covered by Doing Business had an improvement in their distance to frontier score it is now easier to do business in most parts of the world.
Sub-saharan africa, the region with the largest number of economies, accounted for the largest number of regulatory reforms in 2013/14, with 39 reducing the complexity and cost of regulatory processes and 36 strengthening legal institutions.
however, Europe and Central asia had the largest share of economies implementing at least one regulatory reform,
so (figure 1. 4). Sub-saharan africa had the second largest share of economies implementing at least one reform and the second largest average improvement in distance to frontier scores.
Latin America and the Caribbean and South Asia remain the 2 regions with the smallest share of economies implementing regulatory reforms as captured by Doing Business.
Among the 21 economies with the most reforms making it easier to do business in 2013/14,
being recognized as top improvers does not mean that these economies have exemplary business regulations; instead, it shows that thanks to serious efforts in regulatory reform in the past year,
and Central asia had both the largest share of economies making it easier to do business in 2013/14...0 20 40 60 80 100 0 0. 5 1. 0
high income Sub-saharan africa Europe & Central asia Share of economies with at least one reform making it easier to do business(%)Average change in distance to frontier score between 2013 and 2014...
Doing Business database. 6 DOING BUSINESS 2015 TABLE 1. 2 The 10 economies improving the most across 3
Economies are selected on the basis of the number of their reforms and ranked on how much their distance to frontier score improved.
First, Doing Business selects the economies that implemented reforms making it easier to do business in 3
Second, Doing Business ranks these economies on the improvement in their distance to frontier score from the previous year.
The choice of the most improved economies is determined by the largest improvements in the distance to frontier score among those with at least 3 reforms.
FIGURE 1. 5 How far have moved economies toward the frontier in regulatory practice since 2013?
The distance to frontier score shows how far on average an economy is at a point in time from the best performance achieved by any economy on each Doing Business indicator since 2005 or the third year in
for more details, see the note to table 1. 1. The 30 economies improving the most are highlighted in red.
Benin, Côte d'ivoire, Senegal and Togo were all among the OHADA member economies that did so in 2013/14.
These 4 economies strengthened minority investor protections by making it possible for shareholders to inspect documents pertaining to related-party transactions as well as to appoint auditors to conduct inspections Moreover,
Subnational Doing Business reports have covered more than 300 cities in 55 economies in the nearly 10 years that they have been published.
For the first time this year, the global Doing Business report also extends its coverage beyond the largest business city in each economy.
For the 11 economies with a population of more than 100 million, Doing Business now covers the second largest business city as well as the largest one.
The data provide new insights into the variability of business regulation within economies. The sets of indicators showing limited variability across cities in the same economy tend to be those measuring the strength of legal institutions getting credit
protecting minority investors, enforcing contracts and resolving insolvency, which mainly draw from national laws with general applicability (figure 1. 6). Variability is more common for the sets of indicators measuring the complexity
In all 11 economies the data for getting credit both on the strength of legal rights
In the area of protecting minority investors all 11 economies again show no difference between the 2 cities in the aggregate score.
In the area of resolving insolvency only 4 of the 11 economies have a difference between the 2 cities in the recovery rate
Only 4 of the 11 economies have a difference in the number of procedures to resolve a commercial dispute.
In all 4 of these economies one of the pair of cities has specialized a commercial court (Rio de janeiro, Monterrey,
But the time and cost to resolve a commercial dispute differ between the 2 cities in 7 of the 11 economies
For OVERVIEW 9 example, only 4 economies have the same tax system in both the 2 major business cities Bangladesh, India, Indonesia and Nigeria.
In all the other large economies the total tax rate differs between the 2 cities. In the area of starting a business the paid-in minimum capital requirement is the same in the 2 cities in all 11 economies
and the number of procedures differs in only 4 economies. But the time and cost to start a business differ between the 2 cities in 8 economies.
Only in Bangladesh and Pakistan is the process the same in the 2 cities. Similarly, the procedures to transfer a property between 2 firms differ in only 4 economies
but the cost to do so differs in 9 economies. Only in Japan and Russia is the process the same in the 2 cities.
In dealing with construction permits and getting electricity 10 economies show some degree of difference between the 2 cities,
and in trading across borders all 11 economies do so. These are the areas of regulation measured by Doing Business where location matters the most.
Building permits are issued commonly by municipalities. Similarly, electricity connections are provided often by local utilities. And the distance to the nearest port is an important factor in determining the time and cost to export and import, leading to differences even within the same economy.
Labor market regulation can also vary across cities within an economy. In 6 of the 11 economies Brazil, China, India, Indonesia, Japan and Russia the 2 cities in the sample have different minimum wage levels.
This is mainly to account for differences in the cost of living. In all these cases except Brazil and India the largest business city has a higher minimum wage than the second largest one.
In addition, in India the largest business city (Mumbai) has paid longer annual leave, with 21 days, than the second largest one (Delhi), with 15.
Does city size matter for having business-friendly regulations? At first glance the data suggest that it does not.
In 6 of the 11 economies the largest business city performs better on the Doing Business indicators overall than the second largest one,
And in the economies where the second largest business city has a substantially smaller population (at most 30%of the largest business city's population),
Among the 11 economies, the United states has the highest number of differences between the largest and second largest business cities:
Overall, the differences between cities within the same economy are very small, as shown in figure 3. 2 in the chapter on
and expands the measures of quality in the getting FIGURE 1. 6 Indicators measuring the strength of legal institutions show less difference between cities within economies than those measuring the complexity and cost of regulatory processes Note:
The figure shows data for the 11 large economies for which Doing Business covers both the largest and the second largest business city.
Very few economies have an insolvency system with both high efficiency a recovery rate of more than 50 cents on the dollar) and low quality (a score on the strength of insolvency framework index of less than 8 of the possible
But many economies have an insolvency system with low efficiency and high quality. These are economies that have designed well laws
but face challenges in implementing them effectively. These results suggest that welldesigned laws are necessary
though, economies with better-designed laws tend to have higher recovery rates. Preliminary data for a new indicator being developed to measure regulatory quality in registering property reinforce the idea that efficiency
economies that offer a simple, fast and inexpensive process for transferring property are also likely to have a land administration system providing reliable land records (figure 1. 8). The new indicator
and whether the land registry and cadastre cover the entire territory of the economy. Preliminary data show that virtually all economies that score well on the overall quality of land administration (with a distance to frontier score above 50 for the indicator) also score well on efficiency in transferring property (with an average distance to frontier
score above 50 for the procedures, time and cost. But many economies have a property transfer process that is efficient yet lacks quality.
Thus while these economies make the transfer of property simple, fast and inexpensive, the lack of quality in the land administration system is likely to undermine the value of the property title.
In the Republic of Yemen, for example, a transfer of property between 2 firms takes 6 procedures and only 19 days and costs 1. 8%of the property value.
OVERVIEW 11 Economies that make resolving a commercial dispute simpler, faster and less expensive also tend to have a judicial system that follows well-established good practices such as having a specialized commercial court
however, for enforcing contracts the economies are more evenly spread across the 4 quadrants of quality
For example, an economy receives 1 point if it has a functional electronic database for encumbrances, 1 point if it makes the documents
it is possible to study how changes in regulations within an economy over time lead to changes in development outcomes in that economy.
and the highest growth in sales and employment in developing economies. 14 HOW HAVE CHANGED BUSINESS REGULATIONS OVER THE PAST DECADE?
Among the more encouraging trends shown by Doing Business data over the past decade is the gradual improvement in economies'performance in the areas tracked by the indicators.
Moreover, economies with the weakest regulatory institutions and the most complex and costly regulatory processes tend to focus on the areas where their regulatory performance is worse,
The analysis uses data from 2003 13 for all economies covered by Doing Business. Source:
OVERVIEW 13 FIGURE 1. 11 Strong convergence across economies since 2005 Averages by group Cost to start a business(%of income per capita) 0 50 100 150 200
Economies are ranked in quartiles by performance in 2005 on the indicator shown. The data refer to the 174 economies included in Doing Business 2006 (2005.
Fifteen economies were added in subsequent years. Source: Doing Business database. 14 DOING BUSINESS 2015 This process is leading to a convergence toward best practices.
Here is an example: In 2005 the time to transfer property averaged 235 days among the economies ranking in the worst quartile on this indicator.
Among the best 3 quartiles it averaged 42 days. Today that gap is substantially narrower.
for example, that OECD high-income economies have the highest average score on the strength of insolvency framework index.
And economies that have reformed their insolvency laws in the past several years score substantially higher on this index than economies with outdated insolvency provisions.
because economies with better insolvency laws as measured by Doing Business tend to have more credit available to the private sector.
This case study discusses how company registries empower businesses to operate in the formal economy allowing them to reap the benefits that come with formalization,
with the fastest rate of decline occurring in the years immediately following the crisis. The reduction was accompanied by a tangible improvement in the quality of tax administration in many economies thanks to their adoption of the latest technologies to facilitate online filing and payment.
Doing Business will continue to monitor progress in business regulation in economies around the world with the aim of keeping governments informed about good practices
/2. The distance to frontier score shows how far on average an economy is at a point in time from the best performance achieved by any economy on each Doing Business indicator since 2005 or the third year in
no economy can provide a good, and sustainable, standard of living for people. Doing Business promotes rules that establish
dealing with construction permits, Doing Business measures business regulations that affect domestic small and medium-size firms in 11 areas across 189 economies.
The Doing Business methodology is standardized based on case scenarios in the largest business city of each economy.
In addition, for 11 economies a second city has been added this year. Doing Business relies on 4 main sources of information:
the governments of the economies covered and the World bank Group regional staff. Governments use Doing Business as a source of objective data providing unique insights into good practices worldwide.
This year's report does not present rankings of economies on the labor market regulation indicators
particularly data from the World bank Enterprise Surveys. 2 These surveys provide data highlighting the main obstacles to business activity as reported by entrepreneurs in more than 120 economies.
This measure shows the distance of each economy to the frontier which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005 or the third year in
which data for the indicator were collected. This allows users both to see the gap between a particular economy's performance
and the best performance at any point in time and to assess the absolute change in the economy's regulatory environment over time as measured by Doing Business.
This year, for the first time, the ease of doing business ranking is based on the distance to frontier score.
The ranking complements the distance to frontier score by providing information about an economy's performance in business TABLE 2. 1 What Doing Business measures 11 areas of business regulation Complexity
benefits for workers and labor dispute resolution ABOUT DOING BUSINESS 17 regulation relative to the performance of other economies as measured by Doing Business.
In the absence of a strong theoretical framework that assigns different weights to the topics covered for the 189 economies,
The distance to frontier scores and rankings of each economy vary, often substantially, across topics,
indicating that strong performance by an economy in one area of regulation can coexist with weak performance in another.
A quick way to assess the variability of an economy's regulatory performance is to look at its distance to frontier scores across topics (see the country tables.
and even within the areas it covers its scope is narrow (table 2. 2). Doing Business does not measure the full range of factors, policies and institutions that affect the quality of an economy's business environment or its national competitiveness.
and importing FIGURE 2. 1 An economy's regulatory environment may be more business-friendly in some areas than in others Hong kong SAR, China United states Singapore Korea, Rep. Finland Sweden Ireland
it does not include all 189 economies covered by this year's report. See the country tables for the distance to frontier score for each Doing Business topic for all economies.
Source: Doing Business database. TABLE 2. 2 What Doing Business does not cover Examples of areas not covered Security Prevalence of bribery
These objectives can differ across economies. Doing Business provides a starting point for this discussion and should be used in conjunction with other data sources.
when using the data (table 2. 3). A key consideration for the Doing Business indicators is that they should ensure comparability of the data across a global set of economies.
One such assumption is the location of a notional business the subject of the Doing Business case study in the largest business city of the economy.
particularly in federal states and large economies. But gathering data for every relevant jurisdiction in each of the 189 economies covered by Doing Business would be infeasible.
In addition, while variation is inevitable across different locations, the variation is unlikely to deliver significantly different results commensurate with the scale of the effort.
for the first time, Doing Business has extended its coverage to the second largest business city in economies with a population of more than 100 million.
The considerations TABLE 2. 3 Advantages and limitations of the Doing Business methodology Feature Advantages Limitations Use of standardized case scenarios Makes the data comparable across economies
and the data comparable Reduces the representativeness of the data for an economy if there are significant differences across locations Focus on domestic and formal sector Keeps the attention on where regulations are relevant
regulatory changes may not achieve the full desired results a. In economies with a population of more than 100 million,
subnational Doing Business studies The subnational Doing Business studies expand the Doing Business analysis beyond the largest business city of an economy.
They measure variation in regulations or in the implementation of national laws across locations within an economy (as in Nigeria) or a region (as in Central america.
Data collected by subnational reports over the past 2 years show that there can be substantial variation within an economy.
Indeed, within the same economy one can find cities that perform as well as economies ranking in the top 20 on the ease of registering property
and cities that perform as poorly as economies ranking in the bottom 40 on that indicator (see figure).
Despite these large differences across cities of varied sizes, the differences between the largest and the second largest business cities in an economy tend to be discussed small,
Different locations, different regulatory processes, same economy The subnational Doing Business studies create disaggregated data on business regulations.
The data produced are comparable across locations within the economy and internationally, enabling locations to benchmark their results both locally and globally.
Comparisons of locations that are within the same economy and therefore share the same legal and regulatory framework can be revealing:
but not others within an economy helps policy makers recognize the potential for replicating these good practices.
Since 2005 subnational reports have covered 367 cities in 55 economies, including Brazil, China, India, Indonesia, Morocco and Pakistan.
The average score shown for each economy is based on all locations covered by the data:
The worst score shown for each economy is that of the location with the most complex process for transferring property,
The 10th and 90th percentile values are based on economy-level scores for the 189 economies covered by Doing Business.
First, private limited liability companies are, empirically, the most prevalent business form for firms with more than one owner in many economies around the world.
In economies with particularly burdensome regulation, levels of informality tend to be higher. Compared with their formal sector counterparts,
The data cover 189 economies including small economies and some of the poorest economies, for
the governments of the economies covered and the World bank Group regional staff (figure 2. 2). For a detailed explanation of the Doing Business methodology,
Conference calls and videoconferences with private sector practitioners and government officials Travel to selected economies The Doing Business team develops questionnaires for each topic
Doing Business respondents Over the past 12 years more than 30,000 professionals in 189 economies have assisted in providing the data that inform the Doing Business indicators. 9 This year's report draws on the inputs of more than 10,700 professionals. 10 Table
The Doing Business website shows the number of respondents for each economy and each indicator set.
Through this process government authorities and local World bank Group staff in the 189 economies covered can alert the team about, for example,
Over the past decade governments have focused increasingly on reforming business regulation as one way of maintaining competitiveness in an increasingly globalized economy.
More than 50 economies have formed such committees typically at the interministerial level or reporting directly to the president
NOTES 1. The focus of the Doing Business indicators remains the regulatory regime faced by domestic firms engaging in economic activity in the largest business city of an economy.
The average number of contributions per indicator set and economy is just over 6. For more details,
expansion of the sample of cities covered in large economies and a broadening of the scope of indicator sets (table 3. 1). Some of the changes imply a break in the data series
For the 11 economies with a population of more than 100 million a second city has been added to the sample this year.
TABLE 3. 1 Timeline of the changes in Doing Business Changes in Doing Business 2015 Revision of the ranking calculation Expansion of the city sample in large economies Broadening of the scope of indicator
The distance to frontier score benchmarks economies with respect to a measure of regulatory best practice showing the gap between each economy's performance and the best performance on each indicator.
even if no economy attains it. For most of the other indicators the frontier is set at the lowest number that occurs in practice for example,
But the distance to frontier score captures more information than the percentile rank because it shows not only how economies are ordered
Economies with greater variance across topics are more likely to have a less favorable position in the distance to frontier ranking than in the percentile ranking.
The changes in ranking are due to other changes in methodology, changes in the data for these 2 countries and changes in the data for other economies.
Since its inception Doing Business has focused on the largest business city of each economy, taking it as a proxy for the entire national territory.
Depending on the indicator and the size of the economy, this focus can be a limitation in extrapolating results to the economy level.
As the subnational Doing Business reports have shown, the indicators measuring the procedures, time and cost to complete a transaction (such as the dealing with construction permits indicators) tend to show more variation across cities within an economy than do indicators capturing features of the law applicable nationwide (such as the protecting minority investors or resolving insolvency indicators).
Moreover, this limitation is likely to be more important in larger economies where the largest business city is likely to represent a smaller share of the overall economy and in those with greater regional diversity in business practices.
To address this issue, this year Doing Business has expanded its sample of FIGURE 3. 1 How much difference is there between the 2 calculations of the ease of doing business ranking?
Doing Business database. 26 DOING BUSINESS 2015 cities in large economies, defined as those with a population of more than 100 million.
Today there are 11 such economies in the world: Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United states. For each of these economies the sample now includes the second largest business city.
Population size was used as the criterion for selecting these economies for 2 main reasons: First, economies with a large population, because of their size and diversity, are more likely to have differences in performance on indicators.
Second, the larger the population in an economy, the larger the number of people who can benefit from improvements in business regulation.
Within each economy the second city was selected also on the basis of population size. Another criterion was that the second city must be in a different metropolitan area than the largest business city. 3 Other criteria were considered also, such as contribution to total GDP or level of city dynamism,
but these were used not in the end because of the lack of comparable data across the economies. What do the data for the new cities in the sample show about the differences within economies?
Overall, the differences are small. In 7 of the 11 economies the difference in the distance to frontier score between the 2 cities is less than 1 point (figure 3. 2). Broadening the scope of indicator sets Eight of the 10 sets of Doing Business
indicators are being improved over a 2-year period. The improvements are aimed at addressing 2 main concerns.
First, in indicator sets that primarily measure the efficiency of a transaction or service provided by a government agency (such as registering property),
the focus is being expanded to also cover aspects of the quality of that service. And second
paying taxes, enforcing contracts and FIGURE 3. 2 Small differences in the distance to frontier score between cities in the same economy 40 40 60 60 80 80
In general, economies with less regulation or none at all will have a lower score on the new indicators.
A comparison of the 2 scores shows that many economies have insolvency laws that follow some good practices
Economies not performing well on the new indicator are those that use foreclosure to resolve the insolvency in the Doing Business standardized case.
A land administration system that does not cover the economy's entire territory is unable to guarantee the protection of property rights in areas that lack institutionalized information on land.
Finally, the indicator will allow comparative analysis of land dispute resolution across economies. It will measure the accessibility of conflict resolution mechanisms and the extent of liability for the entities or agents recording land transactions.
As a result of this change, an increase in the total tax rate has a smaller impact on the distance to frontier score for paying taxes than previously for economies with a below-average total tax rate
and a larger impact for economies with a very high total tax rate relative to the average (see figure 15.2
One of the new points is awarded to economies where credit information can be accessed through an online platform or through a system-to-system connection between financial institutions and the credit information system.
Another new point is awarded to economies where credit scores are available. Credit scores considered more effective in predicting risk than credit histories alone,
The highest distance to frontier score for protecting minority investors observed under the new methodology is lower than the highest one under the old methodology (figure 3. 8). The average score across all economies covered by Doing Business
Yet some economies score higher on the overall index under the new methodology. One of them is Switzerland.
They can also have an important impact on perceptions of an economy's business environment.
increasing port efficiency from the 25th to the 75th percentile can reduce shipping costs by 12%.5 These spillover effects on shipping costs decrease with an economy's income level:
high-income economies showed greater effects than low-and middle-income ones. Moreover, better regulation is correlated strongly with better perceptions of the quality of the business environment in an economy. 6
And there is strong evidence that regulatory reforms in the areas measured by Doing Business indicators improve perceptions of quality.
2014,123 economies implemented at least one such reform in areas measured by Doing Business 230 in total.
Eight of the 11 economies with a population of more than 100 million implemented at least one reform making it easier to do business in the past year.
Portugal and Spain all among the economies most adversely affected by the global financial crisis have maintained a steady pace of regulatory reform. 34 DOING BUSINESS 2015 affecting the indicators that measure the strength of legal institutions.
2014,123 economies implemented at least one such reform in areas measured by Doing Business 230 in total.
It happens in small economies and in large ones (box 4. 1). Reforms aimed at cutting red tape
Timor-Leste, the economy that improved the ease of starting a business the most, did so by creating a one-stop shop.
and in the past 5 years Area of reform Number of reforms in 2013/14 Average annual number of reforms in past 5 years Economy improving the most in area in 2013/14 Complexity
Making it easier to get electricity Doing Business recorded only 12 reforms making it easier to get electricity in BOX 4. 1 Most economies with a population of more than 100 million implemented at least one regulatory reform in 2013/14 Some people
might assume that reforming business regulation is easier in small economies because their government structures tend to be less complex.
Eight of the 11 economies with a population of more than 100 million reformed in at least one of the areas measured by Doing Business in 2013/14,
while only 18 of the 34 economies with a population of less than 1 million did so.
Among the 11 large economies, China, Mexico and the Russian Federation each implemented 2 reforms making it easier to do business
What did these economies do? India made starting a business easier by considerably reducing the registration fees though it also added a requirement to file a declaration before commencing business operations.
In 2013/14 the 11 large economies were more likely to implement reforms reducing the complexity and cost of regulatory processes than reforms strengthening legal institutions a pattern also evident in smaller economies.
Among the 15 reforms captured by Doing Business in these large economies, most were at the national level
but not to Los angeles. Reforms making it easier to do business in the 11 large economies in 2013/14 Economy Reforms reducing regulatory complexity and cost Reforms strengthening legal institutions Bangladesh
The table shows data for the 11 large economies for which Doing Business covers both the largest and the second largest business city.
In many economies shortages in the materials needed for external works such as transformer substations are a source of substantial delays in the connection process.
21 economies made it easier for businesses to register property by reducing the time, cost or number of procedures required.
Thirteen economies implemented such changes, including Azerbaijan, Belarus, Moldova, Mongolia, Romania, Tajikistan and Ukraine. Electronic tax systems,
Other economies making noteworthy changes in the area of paying taxes in the past year include Belarus, China, the Democratic Republic of congo and Latvia.
Four other economies merged or eliminated certain taxes the Republic of congo, Hungary, Senegal and Zambia. Eleven economies reduced profit tax rates, the second most common feature of tax reforms in 2013/14.
These include 4 high-income economies (Portugal, Spain, St kitts and nevis, and the United kingdom 3 uppermiddle-income economies (Colombia, the Seychelles and Tunisia) and 4 lowermiddle-income economies (the Republic of congo, Guatemala, Swaziland and Vietnam.
Reductions in profit tax rates are combined often with efforts to widen the tax base by removing exemptions and with increases in the rates of other taxes, such as value added tax.
Facilitating trade Myanmar made the biggest improvement in the ease of trading across borders in 2013/14 (figure 4. 5). Its Ministry of Commerce abolished the export license requirement for 166 types of goods
The reduction in the time required for port and terminal handling activities benefits not only traders in Tanzania but also those in the landlocked economies of Burundi and Rwanda that use the port.
Eighteen other economies also implemented reforms making it easier to trade across borders in 2013/14.
Eight economies Bangladesh Croatia, Ecuador, Pakistan, Palau, St lucia, Uganda and Uzbekistan reduced the time to export
Five economies Algeria, Ghana, Jordan Kazakhstan and Tanzania strengthened transport or port infrastructure. Kazakhstan opened a new border station
Economies in Europe and Central asia implemented the most reforms aimed at strengthening legal institutions followed by economies in Sub-saharan africa.
Strengthening legal rights of borrowers and lenders In 2013/14, 9 economies improved access to credit by strengthening the legal FIGURE 4. 5 Myanmar reduced the time to export
and import by abolishing license requirements for many types of goods Inland transport and handling Port and terminal handling Customs clearance and inspections Document preparation 05 10 15 20 25 30 2013 2014 05 10 15 20
Twenty-one other economies also improved credit reporting, with the largest number of them in Sub-saharan africa.
Five Sub-Saharan African economies Cabo Verde, Cameroon, Côte d'ivoire, Kenya and Senegal strengthened their regulatory frameworks for credit reporting.
or centralized geographically for the entire economy? No. Yes. Is the collateral registry notice-based?
Doing Business database. 40 DOING BUSINESS 2015 Among OECD high-income economies, Ireland and the Slovak Republic improved their regulatory frameworks for credit reporting.
and Economic Interest groups simultaneously updated the regulatory frameworks of 17 member economies in Sub-saharan africa. The revised act addresses multiple aspects of corporate law.
and with these changes became the economy that most strengthened minority investor protections in Sub-saharan africa in 2013/14.
Three economies the Czech republic, Ireland and South africa reorganized their court systems by amending the rules on the size of monetary claims that can be filed with courts at different levels
Two economies undertook such changes in 2013/14. Benin established a commercial chamber within its court of first instance
Increasing efficiency in resolving insolvency Doing Business recorded 10 reforms making it easier to resolve insolvency in 2013/14, most of them in OECD high-income and Sub-Saharan African economies.
Several other economies reformed their insolvency laws to strengthen the rights of creditors. For example, Kazakhstan established provisions for direct participation of all creditors through creditors'meetings.
The economies implementing reforms included Portugal, which has made the most reforms aimed at improving the labor market environment in recent years.
And Portugal is one of several Southern European economies that reformed business regulation in areas beyond labor market regulation in 2013/14 (box 4. 2). Other economies implementing reforms in labor
BOX 4. 2 Southern European economies continue a steady pace of regulatory reform Greece, Italy,
Portugal and Spain all among the economies most adversely affected by the global financial crisis have maintained a steady pace of regulatory reform.
These economies, by actively reducing the complexity and cost of regulatory processes and strengthening legal institutions, are narrowing the gap with the regulatory frontier at a faster pace than the rest of the European union.
Feature Economies Some highlights Making it easier to start a business Simplified preregistration and registration formalities (publication, notarization, inspection, other requirements) Albania;
Feature Economies Some highlights Making it easier to register property (continued) Set effective time limits Albania;
Feature Economies Some highlights Strengthening minority investor protections Increased disclosure requirements for related-party transactions Benin;
Formal registration has substantial benefits for businesses and for the economy as a whole. Registered companies can benefit from legal
And the economy benefits from positive spillovers: where formal entrepreneurship is higher, job creation and economic growth also tend to be higher. 1 Moreover,
As the first interface between the regulator and a potential new entrepreneur, company registries hold the key to the formal economy,
Institutional efficiency at company registries is thus a critical element of a healthy economy. 3
They also enable the government to determine which Company registries empower businesses to operate in the formal economy
100 economies have launched already one. And these 100 one-stop shops are quite widely distributed, with 64 of them located in low-or middle-income economies.
A one-stop shop provides a single service point for completing several business registration processes.
Doing Business data show that among the 189 economies covered, 144 have introduced online platforms for business incorporation.
Company registries in 95 economies around the world reported extensive use of online services in the World bank Group Entrepreneurship Survey in 2013.
Some economies, especially low-and middle-income ones, start the digitization process by putting just some features online such as conducting a company name search
FIGURE 5. 1 Company registries in high-income economies offer more electronic services 0 20 40 60 80 100 High income Upper middle
income Lower middle income Low income Share of economies with electronic service available(%)2013 Online application Remote registration Electronic access to data Source:
The most technologically advanced registries are concentrated in OECD high-income economies and Europe and Central asia.
Company registries in high-income and upper-middle-income economies tend to offer a much broader array of online services than those in lower-income ones (figure 5. 1). This pattern is not surprising,
Analysis of data from 71 economies shows that business registration for limited liability companies is significantly faster in those using online platforms (figure 5. 2)
systems for company registration. 9 Economies whose company registry uses online registration, allowing entrepreneurs to set up new businesses remotely,
The sample consists of 71 economies, with 20 having online registration. Data are for 2013.
Rwanda, a country facing a range of other development challenges, has shown that improvements in the regulatory environment including the adoption of global good practices are well within the reach of low-income economies.
unified company registry hosted by the Ministry of Economy and accessible from anywhere free of charge. 16 The new law was part of a strategy aimed at continuing to enhance the efficiency of public services through the use of the latest technologies,
Chile, Ministry of Economy, Register of Companies (Registro de Empresas y Sociedades. FIGURE 5. 5 Electronic registration has become almost universal in the United kingdom 01234 1990 1995 2000 2001 2003 2005 2007 2009 2010 2011 2012 2013 2014
CONCLUSION Many economies have modernized their company registries, offering a wide array of online services for a lower fee or at no cost at all.
For low-income economies introducing online platforms may not be an affordable or practical solution, especially if electricity shortages are common.
For example, economies could create physical one-stop shops or improve existing ones to streamline incorporation processes
as the latest information and communication technologies spread around the world, low-income economies will find a broader range of opportunities to adopt good practices used in higher-income economies,
A growing number of economies with difficult business environments are gradually adopting the practices seen in those with more business-friendly climates.
While in some economies the registry is the first and only interface for formally commencing business operations,
in other economies the start-up process involves other government agencies as a result of more burdensome regulations. 4. See, for example, the website of the Companies Office of Jamaica at http://www. orcjamaica. com/profile/and that of the Companies Registry of Hong kong at http://www. cr. gov. hk
builders tend to proceed without a permit. 2 By some estimates 60 80%of building projects in developing economies are undertaken without the proper permits and approvals. 3 For many entrepreneurs,
In most economies with zoning plans, each zone has its own ordinance governing development within that section.
Economies with an efficient and effective zoning process make zoning maps of cities accessible to builders.
Among OECD high-income economies the process for obtaining a building permit, as measured by Doing Business,
many economies require builders to obtain some form of zoning or urban planning approval before building or even before obtaining a construction permit.
But economies go about this process in different ways. Some economies complete the process efficiently and effectively by making zoning maps of cities accessible to builders (in some cases online.
In these cases builders access the maps to verify that their project's intended location is in compliance with zoning regulations,
In other economies the permit-issuing authority checks the zoning compliance itself after receiving the building permit application.
Sixty-five of the 189 economies covered by Doing Business do require that builders go through the additional step of getting urban planning approval before obtaining a construction permit.
Thirty-six of the 65 economies require builders to obtain approval to build in their intended location before they can receive a construction permit (table 6. 1). Twenty-two of these 36 economies require a zoning permit as this form of approval.
Among the 22 economies requiring a zoning permit, some issue it more expeditiously than others.
In Bangladesh obtaining a zoning clearance from the Capital Development Authority (Rajuk) in Dhaka takes 45 days on FIGURE 6. 2 Half the economies that require the additional step of obtaining a zoning
or urban planning approval are in Europe and Central asia or Latin america Latin america & Caribbean (14 of 32 economies) OECD high income (9 of 31 economies Sub-saharan africa (8 of 47 economies
) East asia & Pacific (8 of 25 economies) Middle east & North africa (7 of 20 economies) South Asia (2 of 8 economies) Europe & Central asia (17 of 26 economies
The numbers in parentheses are the number of economies out of the total in each region that require the additional step of obtaining a zoning or urban planning approval.
In other economies the process is entirely different. In Belgium, for example, an urban planning certificate is required only for large-scale projects.
In 29 of the 65 economies there is no legal requirement to obtain an urban planning clearance or certificate.
In some economies the information is available online, but in most the information can be obtained upon request.
this does not necessarily mean that economies that require this step have inefficient permitting systems.
Consider OECD high-income economies. As measured by Doing Business, the process for obtaining approval of a building permit takes 43 days on average in those where it includes zoning procedures,
or urban planning clearance actually speeds up the process by 19 days on average in these OECD high-income economies especially where the builder can obtain the clearance directly online.
On average across all 65 economies that require the additional step, obtaining the zoning or urban planning clearance takes 26 days (of a total of 177 days on average to comply with all formalities to build a warehouse) and costs $402 (of a total of $15, 709).
These economies generally require only TABLE 6. 1 What type of clearance is needed in economies with zoning requirements?
Zoning permit is mandatory Urban planning clearance or certificate is mandatory Urban planning clearance or certificate is obtained generally but not mandatory Afghanistan Albania Algeria Argentina Bosnia and herzegovina Antigua and barbuda Australia Côte d'ivoire Bahamas, The Bangladesh Ecuador Bahrain Bolivia Iran, Islamic Rep. Cameroon Canada
many economies have adopted zoning systems to varying extents. These economies require builders to obtain some form of zoning
or urban planning approval before building or even before obtaining a construction permit. These requirements can lead to more efficient
Because land and buildings account for between half and three-quarters of the wealth in most economies,
for the first time, Doing Business has collected preliminary data in 170 economies on the reliability, transparency and coverage of land registration systems and on land dispute resolution (figure 7. 1). Next year Doing Business will refine the newly collected data
This year Doing Business has collected new data in 170 economies on the overall quality of land administration systems through a set of indicators on reliability, transparency, coverage and dispute resolution.
Half of economies around the world use an electronic database for checking for charges on property (encumbrances)
In 72%of economies the land registry makes fee schedules publicly available, either online or on public display boards.
Only 56 economies make statistics about transactions at the land registry publicly available, and only 63 provide specific means for filing an official complaint about land services.
Around the world, 27%of economies have a registry with full coverage of private land,
In many economies property titles are registered manually and most titles remain stored in paper archives with restricted access.
In 62 economies property titles are kept only in paper format. Relying on a paper-based system increases the time required to conduct a title search
Many economies are moving toward computerized land administration systems. Over the past 6 years 51 economies computerized their land registries.
Mozambique where a flood affected land records in 2000, scanned most of its titles in 2013.
Other economies scanned all their historical records. Digital records also make it easier to access key information on the legal status of properties.
half of economies around the world have an electronic database for rights and encumbrances (figure 7. 3). Cadastral maps play an important part in increasing tenure security by providing information about the physical characteristics of land, the boundaries of parcels and any changes in those boundaries.
Surveying and mapping system FIGURE 7. 3 Half of economies have an electronic database for encumbrances
and half have a geographic information system Share of economies with an electronic database for encumbrances(%)Share of economies with a geographic information system(%)High income Upper middle income Lower middle income Low
half of economies around the world have a geographic information system in place a computerized system that can capture,
While most are highincome economies, some are low-and middle-income economies. In Sub-saharan africa for example, South africa and Swaziland both have an electronic database to record property boundaries,
check maps and provide updated geographic information on land parcels. Linking the land registry with the cadastral system has important advantages.
And it provides a single point of contact for those conducting land transactions. 9 In recent years several economies,
A majority of economies use a single identification number, with the highest shares doing so in Europe and Central asia,
the lower the incidence of bribery at the land registry (figure 7. 4). Among all economies included in the research,
In 7 of these economies the fee schedule is not accessible, and in 38 it is accessible only by asking for it in person from a public official.
In stark contrast, 83 economies make information on fee schedules available online. Some economies go even further:
FIGURE 7. 4 A better and more transparent land administration system is associated with a lower incidence of bribery at the land registry Score on overall quality of land administration Reported incidence of bribery for land services(%)80
an economy receives 1 point if it has a functional electronic database for encumbrances; 1 point if it makes the documents
or brochures the approach used by land registries in 34 economies (figure 7. 5). Governments can give citizens the chance to be informed
98 economies compile statistics on land transactions (figure 7. 6), though only 56 of those make their statistics public.
Of all economies included in the research, only 63 have specific means for filing an official complaint about land services.
if it covers only a limited area of the economy. Where land registries do not provide complete geographic coverage,
and the records should cover the entire economy. 18 Around the world, only 27%of economies have a registry with full coverage of private land
and only 34%a cadastre with complete coverage (figure 7. 7). South Asia, Latin america and the Caribbean and Sub-saharan africa have the smallest shares of economies with full coverage of private land,
while the OECD high-income group and Europe and Central asia have the largest shares with full coverage.
Several economies have increased the coverage of their land registry and cadastre by registering properties and the associated rights through either systematic adjudication or a more sporadic approach.
100 High income Middle income Low income Economies by type of access provided(%)Online Public boards/brochures In person Not publicly available Source:
Lower middle income Low income Share of economies with accountability mechanism(%)Source: Doing Business database. 64 DOING BUSINESS 2015 the land registry is now able to provide information on different categories of tenure, through a database searchable by parcel across the entire country.
In many economies disputes over land can make up the lion's share of all disputes in court. 22 To prevent land disputes
In some economies the state requires a professional agent a public notary in France and Italy,
In many economies the state provides a guarantee over property registration. Among all economies covered by the research,
149 have a property registration system backed by a state guarantee. The most advanced forms of guarantee indemnify individuals for losses suffered because of deficiencies in information provided by the registry. 24 In Shanghai, for example,
and cadastres provide the highest coverage of private land in OECD high-income economies and Europe and Central asia 0 10 20 30 40 50 60 70 80 South Asia Latin america & Caribbean Sub-saharan africa Middle east & North africa East asia & Pacific
Middle east & North africa Europe & Central asia OECD high income Share of economies where land registry has full coverage(%)Share of economies where mapping system has full coverage(%)Source:
& Pacific Europe & Central asia OECD high income Economies by time required(%)Note: Data refer to a standardized case involving a dispute over a property transfer between 2 domestic companies.
easing the burden on congested courts. 25 A dozen economies have mediation procedures specifically for land disputes.
But time requirements vary considerably across economies. Obtaining a judgment in a standard land dispute takes less than a year in 58 economies,
but up to 3 years or more in another 55 economies. There is also much variation across regions.
In 61%of economies in the OECD high-income group and 58%in Europe and Central asia
land disputes can be resolved within a year. In 80%of economies in South Asia and 62%in Latin america and the Caribbean, the process usually takes 3 years
or more (figure 7. 8). Whether a judicial system provides official statistics on the number of land disputes filed
Among all economies included in the research, about 20 have such statistics available. In Finland, for example, statistics show that 1,
FIGURE 7. 10 Economies with a good land administration system are likely to have lower inequality 0 10 20 30 40 50 60 70 0 5
which the distribution of income or consumption expenditure among individuals or households within an economy deviates from a perfectly equal distribution.
Indeed, the higher the quality of the land administration system, the higher the level of domestic credit provided by the financial sector to the economy (figure 7. 9). In addition,
Economies with a reliable and transparent land administration system tend to have lower inequality and to be more inclusive.
New data on reliability, transparency, coverage and dispute resolution show much variation in the overall quality of land administration systems among the 170 economies covered.
Forty-seven of 189 economies have a functional approach as recorded by Doing Business. A modern collateral registry centralized, notice-based
Among 189 economies, 18 have such a registry, while 25 have based a notice registry and 28 an online registry.
Online access is available in 119 of 126 economies with a functioning credit bureau or registry covering at least 5%of the adult population as recorded by Doing Business.
They are offered in 64 of the 126 economies with a functioning credit bureau or registry covering at least 5%of the adult population. 68 DOING BUSINESS 2015 a system that limits the impression of false wealth becomes paramount.
and Latin america and the Caribbean (figure 8. 2). 5 The functional approach has also been considered in some highincome economies whose current system poses no significant problems
scholars from economies with different legal traditions have reached consensus on the importance of a single notion of security right with pledges covered by the same rules and principles for creation,
In economies that introduce one, access to bank finance rises by about 8 percentage points on average,
when examined in light of other benefits for the economy at large. Key features of a modern collateral registry As model laws
This FIGURE 8. 2 How many economies have adopted a functional approach to secured transactions? 0 5 10 15 20 25 30 35 40 45 50 South Asia Middle east & North africa East asia & Pacific Europe & Central asia OECD
18 29 Number of economies Source: Doing Business database. 70 DOING BUSINESS 2015 avoids the need for a specialist to review lengthy documents,
different practices While the registration of collateral claims is common practice in many economies, the type and role of registries may vary depending on the legal tradition.
In some economies with a common law tradition, rights over movable property are recorded customarily in separate registries for incorporated and nonincorporated entities.
In some civil law economies registration of securities takes place at the local court of first instance or at the commercial registry.
In many other economies there is no requirement at all to register security interests over movable property (figure 8. 3). The strength of legal rights index is consistent with good practices in secured transactions law,
and FIGURE 8. 3 Which economies have collateral registries and of which type? Note: The map reports operational collateral registries as recorded by Doing Business those that are for all entities,
and rewards economies in the scoring if at least 3 of them are recorded at the same collateral registry.
and track their current credit behavior. 17 A 2007 study found that in developing economies access to credit grew twice as fast FIGURE 8. 4 How credit information flows in a system with both a credit registry
Some economies have only a credit registry, some have only one or more credit bureaus, and some have both a credit registry and one or more credit bureaus.
rule of law can be a catalyst for growth in frontier economies with many young firms and entrepreneurial ventures.
whose high interest rates and lack of protections can be destabilizing both to the firms and to the overall economy.
and 120 million firms worldwide by January 2014.24 The number of economies with a credit bureau covering at least 5%of the adult population as recorded by Doing Business grew from 49 of 145 economies in 2004 to 94 of 189 in 2014 while the number
with a credit registry covering at least 5%increased from 22 of 145 economies to 58 of 189 (figure 8. 5). Globally,
28 economies have both a credit registry and a credit bureau covering at least 5%of the adult
Coverage continues to grow as economies establish or enhance credit reporting systems. Several did so in the past year.
Thanks to the launch of their operations, Jamaica was the economy that made the biggest FIGURE 8. 5
Which economies have a credit bureau or registry? Note: Coverage is the number of individuals and firms covered as a percentage of the adult population.
Three other economies also developed new credit reporting systems in the past year. The Democratic Republic of congo's central bank established a credit registry by launching an electronic credit reporting system, YSYS CERI, in April 2013.
Some economies have development plans under way. In June 2013 the West african Economic and Monetary Union set up a legal framework providing for the establishment of credit bureaus in member states.
In 119 of 126 economies with a functioning credit bureau or registry covering at least 5%of the adult population as recorded by Doing Business,
Globally, data providers and users can exchange credit information electronically in 94 of the economies with a credit bureau that covers at least 5%of the adult population
In East asia and the Pacific, Europe and Central asia, Latin america and the Caribbean, the OECD high-income group and South Asia data providers and users can exchange data electronically in all economies that have a functioning credit bureau
or registry covering at FIGURE 8 6 How many economies have a credit bureau or registry providing online access to credit data?
and offers online access Number of economies 12 5 21 9 20 1 11 30 1 25 1 16 2 7 11 2
and North africa this is the case in about 85%of economies that have such a credit bureau or registry,
or credit registry data is offered in 64 of 126 economies with a credit reporting service provider covering at least 5%of the adult population as measured by Doing Business.
offered in 80%of economies with a credit bureau or registry covering at least 5%of the adult population compared with 40%in Europe and Central asia, 38%in the middle East and North africa,
25%in East asia and the Pacific and 24%in Sub-saharan africa (figure 8. 7). In South Asia credit scores are offered in only 1 of 5 economies with a credit reporting service provider
FIGURE 8. 7 How many economies have a credit bureau or registry providing credit scores? No credit bureau or registry exists Credit bureau
and offers credit scores Number of economies 1 5 4 10 24 16 4 4 8 12 15 6 4 13 2 5
Analysis of data collected for the strength of legal rights and depth of credit information indices confirms that economies that score high on these indices also have higher levels of domestic credit provided to the private sector by financial institutions
when analyzing an economy's credit market. CONCLUSION Effective systems for secured transactions and credit reporting can improve access to finance for small and mediumsize enterprises.
and firms covered in 126 economies with functioning credit bureaus and registries covering at least 5%of the adult population as recorded by Doing Business. 25.
FIGURE 8. 8 Economies with stronger systems for secured transactions and credit reporting have higher levels of domestic credit provided to the private sector 0 20 40 60 80 100 0 40 80 120 160 200 240
If such abuses become widespread in an economy, they can deter investors from participating in any corporation.
and shareholder access to judicial redress as a proxy for an economy's overall corporate governance standards and ease of access to financing from capital markets.
Economies with the most developed securities markets tend to have the highest average scores on the 3 new indices.
On average, OECD high-income economies offer the strongest protections as measured by the new indices
Among 189 economies worldwide, India follows the largest share of the good practices measured by the new indices.
Overall, minority investors are protected more in economies that distinguish between shareholders of listed companies and shareholders of nonlisted ones.
This transaction is tested against the regulations of each of the 189 economies covered by Doing Business to determine who can approve the transaction,
that offer variation across economies and that lend themselves to data collection and verification through the annual Doing Business questionnaire on minority investor protections.
and nonlisted companies are consistent in most economies 0 10 20 30 40 50 60 70 80 90 100 Shareholders have the right to amend bylaws or statutes
Share of economies where good practice applies(%)Listed companies Nonlisted companies Note: The good practices are measured those by the extent of shareholder rights index.
unless FIGURE 9. 2 Some areas of corporate governance continue to be overlooked in some economies 0 10 20 30 40 50 60 70 80 90 100 Cross-shareholding between 2
Listed companies Nonlisted companies Share of economies where good practice applies(%)Note: The good practices are measured those by the strength of governance structure index.
Listed companies Nonlisted companies Share of economies where good practice applies(%)Note: The good practices are measured those by the extent of corporate transparency index.
Overall, OECD high-income economies have the strongest protections of minority shareholders as measured by Doing Business.
These economies have the highest average score both on the extent of conflict of interest regulation index,
while the results in East asia and the Pacific and Latin america and the Caribbean are attributable mostly to outdated company laws and the heterogeneity of the economies in these regions.
which have the region's highest scores, with such economies as Haiti, Grenada and St lucia. Globally,
the results are in line with the results of research in this area suggesting positive correlations between TABLE 9. 1 OECD high-income economies offer the strongest protections overall
The sample includes 116 economies for which data on market capitalization are available. Source: Doing Business database;
economies that have stronger regulation of related-party transactions and a greater minority shareholder role in corporate governance also tend to have, for example, higher market capitalization (figure 9. 4). Moreover,
economies that tend to have greater shareholder involvement in corporate governance, as measured by the 3 new indices,
the economies that score best on the new indices have active stock exchanges with the requisite legal frameworks and enforcement agencies.
Among the 189 economies covered by Doing Business, 124 apply stronger regulations to listed companies than to nonlisted ones,
so that shareholders of listed companies are protected more. 12 In all OECD highincome economies the regulations that apply to listed companies are more protective of minority shareholders,
consistent with the more developed capital markets in these economies (figure 9. 5). Sub-saharan africa is the only region where the majority of economies provide the same level of protection for minority shareholders in both types of companies,
minority investors are protected more in economies that distinguish between shareholders of listed companies and shareholders of nonlisted ones (figure 9. 6). Indeed,
economies that distinguish between these shareholder groups have adopted 55%on average of the good practices captured by the 3 new indices
FIGURE 9. 6 Minority investors are protected more overall in economies that distinguish between shareholders of listed companies
FIGURE 9. 5 OECD high-income economies systematically offer more protection for shareholders of listed companies than for shareholders of nonlisted ones 100 75 50 250 OECD high income
and nonlisted companies 31 7 21 15 16 17 17 30 15 9 5 5 1 Economies by relative level of shareholder protection
The numbers shown in the bars are the number of economies in each category within each region.
Doing Business database. 82 DOING BUSINESS 2015 CONCLUSION Results on the 3 new indices highlight great variation across the 189 economies covered in the rights,
and yet that could prove to be a particularly important area of legislation and source of economic growth in economies with less developed stock exchanges and capital markets.
and securities regulations of some economies contributing to sounder regulations that both protect minority investors
or their functional equivalent under the respective legislation of the economies covered by Doing Business,
Doing Business 2015 Going Beyond Efficiency Paying taxes Trends before and after the financial crisis Taxes matter for the economy.
and trade in most economies. Fiscal measures were part of the policy toolkit that governments brought to bear in supporting the recovery.
Policy makers in most economies applied measures aimed at improving revenue collection while keeping the taxes levied on businesses and households as low as possible,
the global financial and economic crisis also led to growing tax compliance risks in some economies.
and even engage in transactions in the informal sector. 7 Many economies redesigned their tax systems during that period with the objective of easing compliance with tax obligations.
Two other indicators measure the complexity of an economy's tax compliance system. The number of payments reflects the total number of taxes
The main driver of the drop in other taxes was the replacement of the cascading sales tax with VAT by a number of economies, many of them in Sub-saharan africa.
Seven economies made this change during the 9 years, 6 of them during the crisis period. 11 This shift substantially reduces the tax cost for businesses:
The data refer to the 174 economies included in DB2006 (2004. The Bahamas, Bahrain, Barbados, Brunei Darussalam, Cyprus, Kosovo, Liberia, Libya, Luxembourg, Malta, Montenegro, Myanmar, Qatar, San marino and South Sudan were added in subsequent years.
though its average total tax rate still remains the highest, at 53.4%in 2012 (figure 10.2). 12 In addition, many African economies lowered rates for the profit tax,
Other economies introduced new taxes during the 9-year period. For example, in 2010 Hungary introduced a sectorspecific surtax on business activity in retail, telecommunications and energy supply.
The average profit tax rate in most economies fell consistently between 2004 and 2010 dropping most sharply during the crisis period (2008 10),
In several economies this reflects concerns on the part of the authorities about the impact of aging populations
The data refer to the 174 economies included in DB2006 (2004. The Bahamas, Bahrain, Barbados, Brunei Darussalam, Cyprus, Kosovo, Liberia, Libya, Luxembourg, Malta, Montenegro, Myanmar, Qatar, San marino and South Sudan were added in subsequent years.
By 2012,76 economies had implemented fully electronic systems for filing and paying taxes as measured by Doing Business.
OECD high-income economies have the largest representation in this group. a. Bird and Zolt 2008.86 DOING BUSINESS 2015 32%of the total in 2004 to only 25%in 2012.
The data refer to the 174 economies included in DB2006 (2004. The Bahamas, Bahrain, Barbados, Brunei Darussalam, Cyprus, Kosovo, Liberia, Libya, Luxembourg, Malta, Montenegro, Myanmar, Qatar, San marino and South Sudan were added in subsequent years.
) In 2008 10 around 47 economies cut their rates. Moldova temporarily reduced its rate from 15%to 0,
Some economies (Canada, Fiji, Greece, Indonesia, Slovenia, the United kingdom) reduced their rates gradually, over several years.
Other economies abolished their minimum income tax (France, Timor-Leste. Romania, having introduced a minimum income tax in May 2009,
Some economies amended their income tax brackets rather than reducing rates. Portugal introduced tax brackets for profit tax in January 2009.
some economies increased the percentage of allowance that could be applied on certain assets or allowed the deduction of more expenses.
The data refer to the 174 economies included in DB2006 (2004. The Bahamas, Bahrain, Barbados, Brunei Darussalam, Cyprus, Kosovo, Liberia, Libya, Luxembourg, Malta, Montenegro, Myanmar, Qatar, San marino and South Sudan were added in subsequent years.
FIGURE 10.5 During the crisis period many economies cut the corporate income tax rate while continuing to improve tax administration Abolished
The data refer to the 174 economies included in DB2006 (2004. The Bahamas, Bahrain, Barbados, Brunei Darussalam, Cyprus, Kosovo, Liberia, Libya, Luxembourg, Malta, Montenegro, Myanmar, Qatar, San marino and South Sudan were added in subsequent years.
or costly to pay taxes Some economies introduced new taxes (16 in total in 2008 10).
and the pension contribution rate from 6%to 7%.CONCLUSION The financial crisis had a substantial impact on national tax revenue, leading in many economies to larger government deficits and higher levels of public debt.
BOX 10.2 The Republic of korea a comprehensive approach to supporting an economy in recession The 2008 global credit crunch and ensuing economic recession hit Korea hard.
the Korean economy contracted sharply in 2009 and public finances came under pressure. Reflecting diminished confidence in the short-term outlook, the value of the Korean won fell sharply.
Most other advanced economies saw rapid increases in public indebtedness as a result of policy interventions to deal with the effects of the financial crisis. c a. Korea, Ministry of Strategy and Finance 2012. b
Commercial profit amounts to 59.4 times income per capita. 9. This is an unweighted average across 189 economies. 10.
The 7 economies are Burundi the Democratic Republic of congo, Djibouti, The gambia, the Seychelles, Sierra leone and the Republic of Yemen. 12.
This is the average for all Sub-Saharan African economies included in Doing Business 2013 (45 in total.
The data refer to the 174 economies included in DB2006 (2004. The Bahamas, Bahrain, Barbados, Brunei Darussalam, Cyprus, Kosovo, Liberia, Libya, Luxembourg, Malta, Montenegro, Myanmar, Qatar, San marino and South Sudan were added in subsequent years.
This freedom is essential to an efficient economy: without it, and without enforcement of contracts, there would be little stability in financial arrangements,
and examines how it is regulated in a sample of 34 economies belonging to different regions
and income groups, chosen mostly on the basis of the quality of the data collected by the Doing Business team in each economy. 1 It also looks at judicial efficiency in contract resolution in the same 34 economies,
In regulating freedom of contract, economies worldwide have had to draw the line between very extensive and very limited freedom of contract (figure 11.1).
In a sample of 34 economies, none allow the parties to a contract to exclude liability for gross negligence
Similarly, all of the economies consider contracts void or voidable if concluded in contravention of public policy or under duress
every economy limits freedom of contract in different ways. In regulating these limitations, the main debate has centered on the role that should be played by the courts and by the state in general.
to protect them from the damaging consequences of their agreements. 8 Several countries started to regulate contractual relationships under the assumption that in certain circumstances people are unable to identify their own preferences. 9 Today most economies regulate limitations to freedom
All economies in the sample fall within this category. Parties have considerable freedom in negotiating contract conditions
now intended to be both freedom of the parties from interference by the state and freedom from imposition by one another. 13 Among the 34 economies in the sample,
freedom of contract contributes to the establishment of a functional economy in which predictability is prized. 16 Worldwide, the most common limitations to freedom of contract stem from the government,
WHAT METHODOLOGY WAS USED To investigate limitations to freedom of contract in the 34 sampled economies the Doing Business team added several new questions to this year's questionnaire on enforcing contracts.
) To observe meaningful differences between economies, the team focused on issues that have been debated extensively throughout the relevant literature and case law,
The 34 economies were chosen from the 189 covered by Doing Business in a way that ensures a representative sample across regions and income groups.
Economies limiting freedom of contract in this area usually do not allow such clauses or allow them
whether an economy has any regulations setting a cap on interest rates and what rules govern asymmetry of power.
After analyzing the laws addressing these issues in the sampled economies, the team counted the number of limitations to freedom of contract in each economy.
The higher the number of limitations, the more limited the freedom of contract. The maximum number of limitations in the study is 10.
The sole purpose in providing the number of limitations is to understand how the sampled economies regulate freedom of contract
WHAT THE RESULTS SHOW Among the 34 economies covered, Tunisia has the highest number of limitations to freedom of contract, with 8 of the 10 limitations measured.
) The results not only show that all 34 economies have struck a balance between the extremes of very limited and very extensive freedom of contract;
For example, none of the economies allow the parties to a contract to exclude liability for gross negligence
And only 4 of the economies the Democratic Republic 94 DOING BUSINESS 2015 of Congo, Pakistan,
there is great variation among the economies on whether the law prohibits covenants restricting alienation of real property.
Of the 34 economies, 14 explicitly prohibit this kind of covenant, though 9 of these 14 economies allow restrictions on alienation of real property
when foreigners are involved in the transaction. The rest of the economies allow these contract provisions.
Among the 7 regions covered, Europe and Central asia is the only one in which no variation was found in the number
All sampled economies in the region have the following 6 limitations: A cap is imposed by law on interest rates.
with 7. Togo is the only Sub-Saharan African economy in the sample that allows the courts to deny enforcement of a contract on the basis of inadequate consideration.
In addition, only 2 of the 5 Sub-Saharan African economies in the sample do not limit the terms that can be included in a standard-form contract,
only 3 economies forbid choice-of-law clauses in international contracts. All 3 Brazil, Colombia and Uruguay are in Latin america and the Caribbean.
The Democratic Republic of congo is another economy where long enforcement times frustrate freedom of contract. It limits freedom of contract only in the areas of future determination of contract price, exclusion of liability for gross negligence,
Among the 34 economies in the sample, however, there are cases where neither is prized. Greece is a clear example.
Similarly, in Tunisia, the economy with the highest number of limitations in the sample (8), enforcing a contract takes 565 days.
and Tanya Maria Santillan. 1. The 34 economies in the sample are Barbados; Bhutan; Brazil;
FIGURE 11.3 Singapore is among the economies with both the fewest limitations to freedom of contract and the fastest contract resolution Tunisia Singapore Congo, Dem.
This indicator tests whether each economy has adopted internationally recognized good practices in the area of insolvency.
OECD high-income economies have the highest average score on the strength of insolvency framework index.
Economies that have reformed their insolvency laws in the past several years score substantially higher on the strength of insolvency framework index than economies with outdated insolvency provisions.
Economies with better insolvency laws as measured by Doing Business tend to have more credit available to the private sector.
cost and outcome of the most likely incourt proceeding involving a domestic debtor in each economy.
it now also tests whether each economy has adopted internationally recognized good practices in the area of insolvency.
10 The purpose behind expanding the scope of the methodology is to capture multiple aspects of the insolvency framework in each economy.
Thus the expanded methodology will provide a more complete and balanced view of the insolvency framework in each economy by addressing both the quality of the law and the efficiency of its implementation.
One of the findings this year is that economies with a higher quality of insolvency laws as measured by the strength of insolvency framework index experience on average higher recovery rates. 11 Additionally
) The strength of insolvency framework index measures whether each economy has adopted internationally recognized good practices in 4 areas:
The information used to compile the strength of insolvency framework index was provided by private and public sector insolvency practitioners in each economy with reference to the applicable laws and regulations.
and secondary sources in evaluating to what extent insolvency laws in each economy accord with internationally accepted good practices.
OECD high-income economies have the highest scores on average on the strength of insolvency framework index and on each of the 4 component indices (figure 12.1).
) Among the economies in this region, Germany and the United states have the highest scores. Europe and Central asia has the second highest average score on the strength of insolvency framework index,
though there is a substantial difference between the average score of Eastern and Central European economies
and that 98 DOING BUSINESS 2015 of Central Asian economies. Economies that have reformed recently their insolvency laws such as Bulgaria
Romania, the former Yugoslav Republic of Macedonia and Montenegro have the region's highest scores,
Economies with some of the highest scores in Sub-saharan africa are adopted those that the OHADA (Organization for the Harmonization of Business Law in Africa) Uniform Act Organizing Collective Proceedings for Wiping Off Debts.
Economies that have amended recently their insolvency laws such as China, Cambodia and the Philippines, receive high scores,
while other economies have no formal insolvency framework, such as Palau and the Marshall islands. The region with the lowest average score on the strength of insolvency framework index is South Asia.
Very few economies in the region have insolvency laws that facilitate the continuation of the debtor's business during insolvency proceedings.
Economies in the middle East and North africa score only slightly better. Only 2 economies in this region have a reorganization framework,
and many lack a designated insolvency law; instead, provisions related to insolvency are found in company laws and commercial codes.
In Latin america and the Caribbean some economies have developed well insolvency laws, such as Brazil, Mexico and Colombia, for example, all of
But most of the smaller economies in the region, particularly island economies, still use winding-up provisions in companies acts that have not been amended for several decades.
This analysis shows that economies that have reformed their insolvency TABLE 12.1 Objectives of an effective insolvency regime as identified by the World bank principles
RESOLVING INSOLVENCY 99 laws in the past several years score substantially higher on the strength of insolvency framework index than economies that rely on old insolvency provisions in companies acts and commercial codes.
because it enhances the ability to identify areas where each economy can improve. The data for the component indices point to 2 areas where many economies can improve:
reorganization proceedings and creditor participation (figure 12.2). ) There is also room for improvement in the management of the debtor's assets,
A third of the economies covered by Doing Business have no formal judicial reorganization framework.
This means that preservation of insolvent businesses in these economies is virtually impossible, so that the only option for an insolvent debtor is to sell its assets.
More than 40%of economies lack specific provisions in their insolvency laws that would allow debtors to maintain contracts supplying essential goods and services during insolvency proceedings.
While some of these economies require utilities to continue providing services to insolvent customers for many debtors this is not enough to ensure continuous operation.
Many economies do not allow creditors to participate in important decisions throughout insolvency proceedings. Among the first and most important decisions made after insolvency proceedings begin is the appointment of an insolvency representative,
Almost 60%of economies exclude creditors from the process of choosing the insolvency representative. Lack of meaningful participation can affect creditors'confidence in the system,
The data for the component indices also point to economies with particular strengths in the areas measured.
For example, Germany is one of 51 economies that receive full points on the commencement of proceedings index.
Japan is one of 26 economies that receive full points on the management of debtor's assets index.
For example, both prohibit the termination of FIGURE 12.1 OECD high-income economies have developed well insolvency frameworks and the highest recovery rates 048 12 16 100 75 50 25
Cambodia is one of 17 economies that receive full points on the reorganization proceedings index. In 2007 Cambodia adopted a new insolvency law that,
Switzerland is one of only 3 economies that receive full points on the creditor participation index.
Economies that score well on the index have higher levels of credit provided to the private sector by domestic financial institutions (figure 12.3).
but as an indication of FIGURE 12.2 Two areas where many economies can improve are reorganization proceedings
CONCLUSION Analysis of the data collected for the strength of insolvency framework index shows that economies with recent changes to their insolvency frameworks have better-quality laws.
Among other economies several still have no formal insolvency framework and many more rely on outdated companies acts
Differences in regulatory quality are especially apparent in regions with emerging economies, such as Latin america and the Caribbean and East asia and the Pacific.
The results suggest that there is opportunity in many economies to improve reorganization proceedings, facilitate the continuation of businesses during insolvency
FIGURE 12.3 Economies with strong insolvency frameworks have higher levels of domestic credit provided to the private sector 16 12840 Strength of insolvency framework index (0 16
and enabled abundant empirical research on critical questions puzzling economists, policy makers and international development professionals. Researchers have used these data to investigate the importance of business-friendly regulation for the creation of new firms, for the productivity and profitability of existing ones and for such key outcomes as growth, employment, investment and informality.
Moreover, they find that growth has a stronger association with entrepreneurship in economies with a higher level of financial development
While most research in this area focuses on developing or emerging economies, Bripi (2013) focuses on Italy, analyzing how differences among provinces in the local regulatory burden affect firm creation.
Using firm-level panel data from emerging economies, Yang (2014) examines the relationship between the business climate and profitability for innovative and noninnovative firms.
They identify 43 such episodes over a period of nearly 3 decades in 94 high-income, middle-income and transition economies.
The expansion of the global Doing Business sample to the second largest business city in 11 large economies,
Centre for Monitoring Indian Economy, PROWESS database; Reserve bank of India, annual accounts data on scheduled commercial banks 108 DOING BUSINESS 2015 TABLE 13a.1 Summary of the main findings
How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism. Princeton, NJ:
Unemployment Reduction Episodes in Rich, Middle-Income and Transition Economies. Journal of Comparative Economics. Fritsch, Michael,
The Unofficial Economy and Economic Development. Tuck School of business Working Paper 2009-57, Dartmouth College, Hanover, NH.
Postregistration incorporation Time (days) Formal operation Entrepreneur 118 Doing Business 2015 Operates in the economy's largest business city.
For 11 economies the data are collected also for the second largest business city (see table 14a.1 at the end of the data notes.
name verification or reservation, notarization) Registration in the economy's largest business citya Postregistration (for example, social security registration,
or with a notary before registration (or within 3 months) a. For 11 economies the data are collected also for the second largest business city.
Completed warehouse Preconstruction Construction Postconstruction and utilities A business in the construction industry Cost(%of warehouse value) Number of procedures Time (days) 120 Doing Business 2015 across economies, several
Operates in the economy's largest business city. For 11 economies the data are collected also for the second largest business city (see table 14a.1).
) Is 100%domestically and privately owned. Has 5 owners, none of whom is a legal entity.
and be located in the periurban area of the economy's largest business city (that is, on the fringes of the city but still within its official limits).
For 11 economies the data are collected also for the second largest business city. Will not be located in a special economic or industrial zone.
If there is no water delivery infrastructure in the economy, a borehole will be dug. If there is no sewerage infrastructure,
To make the data comparable across economies, several assumptions about the warehouse and the electricity connection are used.
is located in the economy's largest business city. For 11 economies the data are collected also for the second largest business city (see table 14a.1).
) is located in an area where similar warehouses are located typically. In this area a new electricity connection is not eligible for a special investment promotion regime (offering special subsidization or faster service, for example.
) The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering property.
To make the data comparable across economies, several assumptions about the parties to the transaction,
are located in the periurban area of the economy's largest business city. For 11 economies the data are collected also for the second largest business city (see table 14a.1).
) Are 100%domestically and privately owned. Have 50 employees each, all of whom are nationals. Perform general commercial activities.
The data details on registering property can be found for each economy at http://www. doingbusiness. org.
) The ranking of economies on the ease of getting credit is determined by sorting their distance to frontier scores for getting credit.
The questionnaire data are confirmed through teleconference calls or on-site visits in all economies. Figure 14.9 Do lenders have credit information on entrepreneurs seeking credit?
paying property transfer taxes) Registration procedures in the economy's largest business citya Postregistration procedures (for example, filing title with municipality) Time required to complete each procedure (calendar days) Does not include time spent gathering
or capital gains taxes included a. For 11 economies the data are collected also for the second largest business city. 126 DOING BUSINESS 2015 Strength of legal rights index Thstrnth of ll rihts indx m-surs thdrto
To make the data comparable across economies, several assumptions about the business and the transaction are used (figure 14.12).
is traded a publicly corporation listed on the economy's most important stock exchange. If the number of publicly traded companies listed on that exchange is less than 10,
or if there is no stock exchange in the economy, it is assumed that Buyer is a large private company with multiple shareholders.
Has a supervisory board (applicable to economies with a 2-tier board system) on which 60%of the shareholder-elected members have been appointed by Mr. James,
The data details on protecting minority investors can be found for each economy at http://www. doingbusiness. org.
The ranking of economies on the ease of paying taxes is determined by sorting their distance to frontier scores for paying taxes.
the total tax rate. 15 The threshold is defined as the highest total tax rate among the top 15%of economies in the ranking on the total tax rate.
%All economies with a total tax rate below this threshold receive the same score as the economy at the threshold.
or maximizes efficiency in an economy's overall tax system. Instead it is mainly empirical in nature,
This reduces the bias in the total tax rate indicator toward economies that do need not to levy significant taxes on companies like the Doing Business standardized case study company
All economies below the threshold receive the same score in the total tax rate component as the economies at the threshold.
Is one of the economy's leading export or import products. Assumptions about the business The business:
is located in the economy's largest business city. For 11 economies the data are collected also for the second largest business city (see table 14a.1).
) Is a private, limited liability company. Does not operate in an export processing zone or an industrial estate with special export or import privileges.
For landlocked economies, documents required by authorities in the transit economy are included also. Since payment is by letter of credit,
The exporter is incurred responsible for the costs related to exporting the goods until they depart from the exporting economy
and the importer is incurred responsible for the costs related to importing from the moment the goods arrive at the seaport in the importing economy.
The data details on trading across borders can be found for each economy at http://www. doingbusiness. org.
The ranking of economies on the ease of enforcing contracts is determined by sorting their distance to frontier scores for enforcing contracts.
The name of the relevant court in each economy the court in the largest business city with jurisdiction over the standardized commercial dispute described below is published at http://www. doingbusiness. org/data/exploretopics/enforcing-contracts.
For 11 economies for which the data are collected also for the second largest business city,
Assumptions about the case The value of the claim is equal to 200%of the economy's income per capita or $5, 000,
both located in the economy's largest business city. For 11 economies the data are collected also for the second largest business city (see table 14a.1).
) Pursuant to a contract between the businesses, Seller sells some custom-made furniture to Buyer worth 200%of the economy's income per capita or $5, 000,
whichever is greater. After Seller delivers the goods to Buyer, Buyer refuses to pay the contract price,
The dispute is brought before the court located in the economy's largest business city with jurisdiction over commercial cases worth 200%of income per capita or $5, 000,
As noted, for 11 economies the data are also Figure 14.17 What are the time,
The ease of doing business ranking compares economies with one another; the distance to frontier score benchmarks economies with respect to regulatory best practice, showing the absolute distance to the best performance on each Doing Business indicator.
When compared across years, the distance to frontier score shows how much the regulatory environment for local entrepreneurs in an economy has changed over time in absolute terms,
while the ease of doing business ranking can show only how much the regulatory environment has changed relative to that in other economies.
DISTANCE TO FRONTIER The distance to frontier score captures the gap between an economy's performance
and a measure of best practice across the entire sample of 31 indicators for 10 Doing Business topics (the labor market regulation indicators are excluded).
and Australia, Colombia and 110 other economies have paid no-in minimum capital requirement (table 15.1).
) Calculation of the distance to frontier score Calculating the distance to frontier score for each economy involves 2 main steps.
In this formulation the frontier represents the best performance on the indicator across all economies since 2005 or the third year in
the frontier is defined as the total tax rate at the 15th percentile of the overall distribution for all years included in the analysis. For the time to pay taxes the frontier is defined as the lowest time recorded among all economies that levy the 3 major taxes:
when benchmarking these absolute-cost indicators across economies with different inflation trends. The base year for the deflator is 2013 for all economies.
In the same formulation, to mitigate the effects of extreme outliers in the DISTANCE TO FRONTIER
AND EASE OF DOING BUSINESS RANKING 147 distributions of the rescaled data for most component indicators (very few economies need 700 days to complete the procedures to start a business,
) Second, for each economy the scores obtained for individual indicators are aggregated through simple averaging into one distance to frontier score
weighting all topics equally and, within each topic, giving equal weight to each of the topic components. 2 An economy's distance to frontier score is indicated on a scale from 0 to 100,
United Kingdomf 8 0e Protecting minority investors Extent of conflict of interest regulation index (0 10) No economy has attained the frontier yet. 10 0e Extent of shareholder governance
index (0 10) No economy has attained the frontier yet. 10 0e Paying taxes Payments (number per year) Hong kong SAR, China;
The difference between an economy's distance to frontier score in any previous year and its score in 2014 illustrates the extent to
which the economy has closed the gap to the regulatory frontier over time. And in any given year the score measures how far an economy is from the best performance at that time.
Treatment of the total tax rate This year for the first time, the total tax rate component of the paying taxes indicator set enters the distance to frontier calculation in a different way than any other indicator.
and therefore on the distance to frontier score for paying taxes for economies with a belowaverage total tax rate than it would have in the calculation done in previous years (line B is smaller than line A in figure 15.2).
) And for economies with an extreme total tax rate (a rate that is very high relative to the average), an increase has a greater impact on both these distance to frontier scores than before (line D is bigger than line C in figure 15.2).
or maximizes efficiency in an economy's overall tax system. Instead, it is mainly empirical in nature.
The nonlinear transformation along with the threshold reduces the bias in the indicator toward economies that do need not to levy significant taxes on companies like the Doing Business standardized case study company
In addition, it acknowledges the need of economies to collect taxes from firms. Calculation of scores for economies with 2 cities covered For each of the 11 economies for
which a second city was added in this year's report, the distance to frontier score is calculated as the population-weighted average of the distance to frontier scores for the 2 cities covered (table 15.2).
framework index (0 16) No economy has attained the frontier yet. 16 0e a. Worst performance is defined as the 99th percentile among all economies in the Doing Business sample. b. Worst performance is defined as the 95th
percentile among all economies in the Doing Business sample. c. One hundred and ten other economies also have a minimum capital requirement of 0. 0. d. In 11 other economies it also takes only 3
connection. e. Worst performance refers to the worst value recorded. f. Twenty-two other economies also score 8 on the depth of credit information index. g. Defined as the lowest time recorded among all economies
and VAT or sales tax. h. Defined as the highest total tax rate among the 15%of economies with the lowest total tax rate in the Doing Business sample.
TABLE 15.2 Weights used in calculating the distance to frontier scores for economies with 2 cities covered Economy City Weight(%)Bangladesh Dhaka 78 Chittagong 22 Brazil São paulo
DISTANCE TO FRONTIER AND EASE OF DOING BUSINESS RANKING 149 Variability of economies'scores across topics Each indicator set measures a different aspect of the business regulatory environment.
The distance to frontier scores and associated rankings of an economy can vary, sometimes significantly, across indicator sets.
These correlations suggest that economies rarely score universally well or universally badly on the indicators (table 15.3).
Figure 2. 1 in the chapter About Doing Business illustrates the degree of variability for each economy's performance across the different areas of business regulation covered by Doing Business.
The figure draws attention to economies with a particularly uneven performance by showing for each economy, the distance between the average of its highest 3 distance to frontier scores and the average of its lowest 3 across the 10 topics included in this year's aggregate distance to frontier score.
While a relatively small distance between these 2 averages suggests a broadly consistent approach across the areas of business regulation measured by Doing Business,
Economies that improved the most across 3 or more Doing Business topics in 2013/14 Doing Business 2015 uses a simple method to calculate which economies improved the ease of doing business the most.
First, it selects the economies FIGURE 15.1 How are distance to frontier scores calculated for indicators?
Two examples 100 80 60 40 200 0 5 10 15 20 25 30 35 Worst performance (99th percentile:
or more of the 10 topics included in this year's aggregate distance to frontier score. 3 Twenty-one economies meet this criterion:
and the United arab emirates. Second, Doing Business sorts these economies on the increase in their distance to frontier score from the previous year using comparable data.
Selecting the economies that implemented regulatory reforms in at least 3 topics and had the biggest improvements in their distance to frontier scores is intended to highlight economies with ongoing, broad-based reform programs.
The improvement in the distance to frontier score is used to identify the top improvers because this allows a focus on the absolute improvement in contrast with the relative improvement shown by a change in rankings that economies have made in their regulatory environment for business.
EASE OF DOING BUSINESS RANKING The ease of doing business ranking ranges from 1 to 189.
The ranking of economies is determined by sorting the aggregate distance to frontier scores, rounded to 2 decimals.
TABLE 15.3 Correlations between economy distance to frontier scores for Doing Business topics Dealing with construction permits Getting electricity Registering property Getting credit Protecting minority investors
which are considered of more or less importance in the context of a specific economy. 2. For getting credit,
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
) 64.8 Note For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
For resolving insolvency, an economy for which no practice is recorded for time and cost receives a score of 0 on the strength of insolvency framework index
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average for the 2 largest business cities.
which can differ among economies depending on the economic or political context. Consistent with the plateau effect, regulations that are too loose
leading to losses of employment in an economy or to its missing out on job-supporting agglomeration effects and knowledge spillovers. 3 Doing Business measures flexibility in the regulation of employment as it affects the hiring and redundancy of workers and the rigidity
No Yes No No Yes No No Yes Yes Yes a. Including renewals. b. Economies for
5 and 10 years of tenure. e. Some answers are not applicable (n. a.)for economies in
for some economies. h. Some answers are not applicable (n. a.)for economies where dismissal due to redundancy is disallowed.
Overall guidance for the preparation of the report was provided by Kaushik Basu, Senior vice president and Chief Economist of the World bank.
or advising on the relevant legal and regulatory requirements in the 189 economies covered. Contact details for local partners are available on the Doing Business website at http://www. doingbusiness. org.
Albert Babayan MINISTRY OF ECONOMY Anush Baghdasaryan AVENUE CONSULTING GROUP Vahagn Balyan AVENUE CONSULTING GROUP Irina Belubekyan UNION OF MANUFACTURERS AND BUSINESSMEN (EMPLOYERS
Elena Melnikova REVERA CONSULTING GROUP Konstantin Mikhel VLASOVA MIKHEL & PARTNERS Aleksandr Mironichenko MINISTRY OF ECONOMY Helen Mourashko REVERA CONSULTING GROUP Yulia
MEMBER OF LEX MUNDI Sa a Jovicic WOLF THEISS Domagoj Juricic CROATIAN CHAMBER OF ECONOMY Sanja Jurkovic PWC CROATIA Petra Jurkovic Mutab ija
CROATIAN CHAMBER OF ECONOMY, BUSINESS INFORMATION CENTER Sandra Svaljek CENTRAL CITY ADMINISTRATION OF ZAGREB Marin Svic PRALJAK & SVIC Zoran Tasic CMS LEGAL Zrinka Terlep ZAGREB COMMERCIAL COURT
Begiashvili BEGIASHVILI & CO. LIMITED LAW OFFICES Lily Begiashvili GEORGIA REVENUE SERVICE Nino Berianidze MINISTRY OF ECONOMY AND SUSTAINABLE DEVELOPMENT Revaz Beridze ERISTAVI
LAW GROUP Nino Bezhitashvili MINISTRY OF ECONOMY AND SUSTAINABLE DEVELOPMENT Giorgi Chichinadze MINISTRY OF ECONOMY AND SUSTAINABLE DEVELOPMENT Zviad Chkhartishvili APM TERMINALS POTI Khatia
NEW ECONOMIC SCHOOL David Javakhadze MINISTRY OF ECONOMY AND SUSTAINABLE DEVELOPMENT Revaz Javelidze COLIBRI LAW FIRM David Kakabadze COLIBRI LAW FIRM Grigol Kakauridze MINISTRY
OF ECONOMY AND SUSTAINABLE DEVELOPMENT Ana Kamkhadze ERISTAVI LAW GROUP Mari Khardziani NATIONAL AGENCY OF PUBLIC REGISTRY Anastasia Kipiani PWC GEORGIA Victor Kipiani
MGALOBLISHVILI, KIPIANI, DZIDZIGURI (MKD) LAW FIRM Sergi Kobakhidze PWC GEORGIA Aieti Kukava ALLIANCE GROUP HOLDING Tea Loladze MINISTRY OF ECONOMY AND SUSTAINABLE DEVELOPMENT
Eteri Mamukelashvili MINISTRY OF ECONOMY AND SUSTAINABLE DEVELOPMENT Elene Mebonia LEGAL PARTNERS ASSOCIATED (LPA) LLC Ekaterina Meskhidze NATIONAL AGENCY OF PUBLIC REGISTRY Roin
PARTNERSHIP Tamta Otiashvili MINISTRY OF ECONOMY AND SUSTAINABLE DEVELOPMENT Joseph Salukvadze TBILISI STATE UNIVERSITY Manzoor Shah GLOBALINK LOGISTICS GROUP Zaza Simaev ELECO LTD.
Vakhtang Tsintsadze MINISTRY OF ECONOMY AND SUSTAINABLE DEVELOPMENT Samson Uridia GEORGIA REVENUE SERVICE Zviad Voshakidze TELASI GERMANY Stephan Bank CLEARY GOTTLIEB STEEN
José Martínez NOTARÍA PÚBLICA 29-NUEVO LEÓN Ana Lilia Martínez Valdés SECRETARÍA DE ECONOMÍA-MINISTRY OF ECONOMY Carla E. Mendoza Pérez
D. O. O. Dragan Draca PWC SERBIA Veselin Dragicevic CHAMBER OF ECONOMY OF MONTENEGRO SECTOR FOR ASSOCIATIONS AND ECONOMIC DEVELOPMENT Sladana Dragovic NORMAL COMPANY Dragana Filipovic MINISTRY OF SUSTAINABLE DEVELOPMENT AND TOURISM Darko Globarevic ZETATRANS Mile Grujic NORMAL
COMPANY Danilo Gvozdenovic MINISTRY OF SUSTAINABLE DEVELOPMENT AND TOURISM Ana Jankov BDK ATTORNEYS-AT-LAW Maja Jokanovic MINISTRY OF ECONOMY Miomir Joksimovic LAW OFFICE
Jaya Raj Bhandari ECONOMIST Bhojraj Bhattarai NEPAL ELECTRICITY AUTHORITY Narayan Chaulagain PIONEER LAW ASSOCIATES Tankahari Dahal NIRAULA LAW CHAMBER & CO
OF ECONOMY AND FINANCES Aristides Anguizola MORGAN & MORGAN Mercedes Araúz de Grimaldo MORGAN & MORGAN Luis Arrocha LOMBARDI AGUILAR GROUP Khatiya Asvat PATTON
INT.-PSLI Irene Carrizo MINISTRY OF ECONOMY AND FINANCES José Carrizo Durling MORGAN & MORGAN Mariana Castillo PWC PANAMA Luis Chalhoub ICAZA, GONZALEZ
LOYRETTE NOUEL POLAND WARSAW Tomasz Czech RAIFFEISEN BANK POLSKA SA Michal Dabrowski MINISTRY OF JUSTICE Tomasz Dabrowski MINISTRY OF ECONOMY Andrzej Dmowski
. O. Peter Ondrejka MINISTRY OF ECONOMY Simona Rapavá WHITE & CASE S. R. O. Ivana aková CECHOVÁ & PARTNERS S. R. O. Gerta
PWC SLOVAKIA Katarina Simurdova PWC SLOVAKIA Jakub Skalo MINISTRY OF ECONOMY Jaroslav kubal PRK PARTNERS S. R. O. Stanislava Valientová WHITE
SOMAY HUKUK BÜROSU Metin Abut MOROGLU ARSEVEN Erol Acun ÖZAK TEKSTIL Emre Akarkarasu PWC TURKEY Serdar Akinci MINISTRY OF ECONOMY Simge Akyüz
CONSULTING SERVICES Murad Abu Mwis MINISTRY OF NATIONAL ECONOMY Salah Alodeh RAMALLAH CHAMBER OF COMMERCE & INDUSTRY Haytham L. Al-Zubi AL-ZUBI LAW
0 2004 2008 2013 2007 2011 2006 2010 COMPARING BUSINESS REGULATIONS FOR DOMESTIC FIRMS IN 185 ECONOMIES 10th EDITION DOING BUSINESS 2013 Smarter
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