Economies in both developed and (to Geoff Mulgan The Process of Social Innovation Geoff Mulgan is director of the Young Foundation based in London (U k). He previously worked in the U k. government as director of the Strategy Unit
Over the next 20 years, the biggest growth for national economies is likely to come in health education,
and outcomes of public and social organizations, including the fascinating work led by Dale Jorgensen at Harvard on valuing the informal economy and family work,
As it came to be understood just how important science was to the economy (and to warfare),
see the Economist, Open, but not As usual,<http://www. economist. com/business/displaystory. cfm? story id=5624944>(accessed May 24,
2006). 8. For example, see de E. Bono, Lateral Thinking Creativity Step by step,(London, U k.:Perennial Library, 1970). 9. See Global Ideas Bank,<http://www. globalideasbank. org/site/home/>.
Attribution-Noncommercial-Sharealike 4. 0 International License Awareness Networks Open Access New Ways of Making Collaborative Economy Open Democracy Funding Acceleration
iii) The collabporative economy;(iv) Awareness networks enabling sustainable behaviours and lifestyles;(v) Open Access;
collaborative economy, awareness networks; open access, and funding, accelerating and incubating). We then created a new visual layout for the 36 DSI case studies that are showcased in on the website and also directly on the DSI map.
Ouishare is the largest conference in France focussing on the collaborative economy. Francesca Bria participated in a workshop on Collective Awareness Platforms and the collaborative economy in Horizons 2020, together with the European commission.
The DSI mapping website and the overall research was presented during a dynamic debate about policy
Harry Halpin (IRI) gave a 30 minute presentation of DSI to an audience of 50 people at the Mapping the Collaborative Economy session.
and based on the National Plan For good Living, is called Social Knowledge Economy. Presentation to 75 people predominantly from the Eastern European Social Innovation Community on the DSI research.
and Horizons 2020 3 present an integrated approach to help the EU economy become more competitive,
and successful tech entrepreneurs such as accelerator and combinator programmes. 12 Early evidence suggests they have a positive impact on the economy
and open research project to create policy proposals and political actions to transition Ecuador to a social knowledge economy.
and the relatively low barriers to entry into mobile development have attracted hundreds of thousands of developers to the app economy.
turning personal data in what has been defined as the oil of the Internet economy. Most users have accepted exploitative business models based on privacy infringement and often hidden surveillance mechanisms in exchange for free services.
/ph overview/documents/stakeholders en. pdf 8. http://eacea. ec. europa. eu/citizenship/programme/action1 measure1 en. php 9. Competitiveness is defined as the capability of an economy to maintain increasing standards
-computing. com/revolution-r-enterprise 94. http://floksociety. org/95. http://publiclab. org/96. http://www. whitehouse. gov/economy/business
and will likely change dynamics in the economy and in our personal lives 9 Auto manufacturers Auto insurers Auto financiers Fleet managers Service & repair shops Rental agencies Taxi operators Oil companies Emergency rooms Health
Northeastern university in Boston, KCR, Economist, Deloitte research Young people increasingly view cars as appliances not aspirations,
it presents the first applications to the economy of a few regions, but also the future perspectives.
and which organisations and processes can foster innovation and dense communities of users, leading to a vibrant Knowledge Economy.
Knowledge Economy Motivation Assumptions Theories and Principles Strategies Instruments Processes Structures Development SME engagement Research Action research Multi-stakeholder processes ICT
which make up more than 99%of all European companies by number and approximately 50%of European GDP, the Lisbon Strategy's call (COM, 2004) for the most competitive and dynamic knowledge-based economy in the world,
The faster and more pervasive communications enabled by the technology reinforced the already existing trend from a material economy based on manufacturing toward a service economy based on knowledge production and distributed value chains.
through its integration with the many societies and economies of the world a more constructive dynamic of interaction between the local and the global scales can be achieved.
but represents a significant weakness for the economy of the region when when the dominant economic actor experiences economic difficulties.
Openness in the Knowledge Economy is not so different from encouraging spending to stimulate the dynamism of the Exchange Economy.
DIGITAL ECOSYSTEM (digital representations of economy) XXX XXX XXX XXX BUSINESS ECOSYSTEM (economy) Perturbation/Compensation Perturbation/Compensation Structural Coupling between Business Ecosystem
and innovators in the knowledge-based economy, integrating them within local/regional/global socioeconomic ecosystems
in order to enable the participation of all players in the knowledge economy and in the knowledge society,
the knowledge that expresses different socially-constructed partial interpretations and views of the economy and
the more aspects of the economy can be described and mediated. Thus, when we abandon the mirage of an objective reality
what economists call‘strategic complementarities'.'To have an‘audience, 'programmers will want to work on software projects that will attract a large number of other programmers.
Some of these models will be based mainly on a new Exchange Economy characterised by peer production behaviour to become integrated with the Gift Economy. 29 In the gift economy a immediate remuneration is sought not,
and the people who straddle both economies. Social constructivism takes a further step to what we have discussed so far in its recognition of language as a medium of power relationships.
to arrive at a participatory socioeconomic development process that can bootstrap the Knowledge Economy in any regional context to construct a sustainable, global, pluralistic,
Economy, Society and Culture volume: The rise of the network society. Oxford: Blackwell. Chesbrough, H (2003.
The EU Economy: 2003 Review. European commission (2004. Communication from the Commission, COM (2004). 480-3. 07. 2004european Commission, DG-INFSO (2005a),
Such interventions take place in the context of wider efforts to create a social economy. Whilst the relationships between social innovation and digital technologies are being explored in policy and practice,
Social innovation towards a social economy The definition of social innovation is contested and the subject of an ongoing debate across academic,
The Young Foundation, 2012: 17-18) Based on this definition we suggest that social innovations can be viewed an effort to establish a (more) social economy.
Like social innovation, the concept of a social economy has manifold meanings. In one sense, all economies are social economies in that there is a moral sentiment between counter-parties engaging in market transactions.
The tendency to monopoly, market failure and non-optimal outcomes challenge this assumption in contemporary economies.
As a consequence, a revival of interest in social economics and the construct of social economics has emerged.
the economy is limited not to the market, but includes principles of redistribution and reciprocity (Laville et al.,
1994) These principles suggest that increased social integration will play a central role in establishing a social economy.
Hence we suggest that digitally mediated forms of social innovation are a key component of the wider effort to establish a social economy.
Doing Business 2015 Spain Economy Profile 2015 Spain Doing Business 2015 Spain 2 2014 The International Bank for reconstruction and development/The World bank 1818 H Street NW, WASHINGTON DC
and the protection of property rights that can be compared across 189 economies, from Afghanistan to Zimbabwe, over time.
The data set covers 47 economies in Sub-saharan africa, 32 in Latin america and the Caribbean, 25 in East asia and the Pacific, 26 in Eastern europe and Central asia, 20 in the middle East and North africa and 8 in South Asia
as well as 31 OECD high-income economies. The indicators are used to analyze economic outcomes and identify what reforms have worked, where and why.
This economy profile presents the Doing Business indicators for Spain. To allow useful comparison, it also provides data for other selected economies (comparator economies) for each indicator.
The data in this report are current as of June 1, 2014 (except for the paying taxes indicators,
Other areas important to business such as an economy's proximity to large markets, the quality of its infrastructure services (other than those related to trading across borders
comparisons and benchmarks are valid across economies. The data not only highlight the extent of obstacles to doing business;
Second, for the 11 economies with a population of more than 100 million, data for a second city have been added to the data set and the ranking calculation.
These economies are Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United states. Third, for getting credit,
Doing Business 2015 Spain 6 THE BUSINESS ENVIRONMENT For policy makers trying to improve their economy's regulatory environment for business,
a good place to start is to find out how it compares with the regulatory environment in other economies.
Economies are ranked from 1 to 189 by the ease of doing business ranking. This year's report presents results for 2 aggregate measures:
The ranking of economies is determined by sorting the aggregate distance to frontier (DTF) scores. The distance to frontier score benchmarks economies with respect to regulatory practice, showing the absolute distance to the best performance in each Doing Business indicator.
An economy's distance to frontier score is indicated on a scale from 0 to 100,
where 0 represents the worst performance and 100 the frontier. See the chapter on the distance to frontier
but the data are presented in this year's economy profile. The aggregate ranking on the ease of doing business benchmarks each economy's performance on the indicators against that of all other economies in the Doing Business sample (figure 1. 1)
. While this ranking tells much about the business environment in an economy, it does not tell the whole story.
The ranking on the ease of doing business, and the underlying indicators, do not measure all aspects of the business environment that matter to firms and investors or that affect the competitiveness of the economy.
Still, a high ranking does mean that the government has created a regulatory environment conducive to operating a business.
ECONOMY OVERVIEW Region: OECD high income Income category: High income Population: 46,647, 421 GNI per capita (US$:
Doing Business 2015 Spain THE BUSINESS ENVIRONMENT Figure 1. 1 Where economies stand in the global ranking on the ease of doing business Source:
knowing where their economy stands in the aggregate ranking on the ease of doing business is useful.
Also useful is to know how it ranks relative to comparator economies and relative to the regional average (figure 1. 2). The economy's rankings (figure 1. 3)
and distance to frontier scores (figure 1. 4) on the topics included in the ease of doing business ranking provide another perspective.
and comparator economies rank on the ease of doing business Note: 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.
The distance to frontier score benchmarks economies with respect to regulatory practice, showing the absolute distance to the best performance in each Doing Business indicator.
An economy's distance to frontier score is indicated on a scale from 0 to 100,
where 0 represents the worst performance and 100 the frontier. For the economies for which the data cover 2 cities, scores are weighted a population average for the 2 cities.
Source: Doing Business database. Doing Business 2015 Spain 9 THE BUSINESS ENVIRONMENT Figure 1. 3 Rankings on Doing Business topics-Spain (Scale:
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.
The distance to frontier score benchmarks economies with respect to regulatory practice, showing the absolute distance to the best performance in each Doing Business indicator.
An economy's distance to frontier score is indicated on a scale from 0 to 100,
For the economies for which the data cover 2 cities, scores are weighted a population average for the 2 cities.
Yearly movements in rankings can provide some indication of changes in an economy's regulatory environment for firms,
Moreover, year-to-year changes in the overall rankings do not reflect how the business regulatory environment in an economy has changed over time
This measure shows how far on average an economy is from the best performance achieved by any economy on each Doing Business indicator Comparing the measure for an economy at 2 points in time allows users to assess how much the economy's regulatory environment as measured by Doing Business has changed over time how far it has moved toward
The distance to frontier score shows how far on average an economy is from the best performance achieved by any economy on each Doing Business indicator
on their own or in comparison with the indicators of a good practice economy or those of comparator economies in the region, may reveal bottlenecks reflected in large numbers of procedures, long delays or high costs.
Comparison of the economy's indicators today with those in the previous year may show where substantial bottlenecks persist
income per capita) 13.8 13.4 0. 0 35.8 0. 0 0. 0 25.4 0. 0 112 Economies (0. 0)* Dealing with Construction
) Procedures (number) 5. 0 5. 0 5. 0 3. 0 5. 0 5. 0 3. 0 4. 0 12 Economies (3
0 5. 0 4. 0 1. 0 4. 0 6. 0 4 Economies (1. 0)* Time (days) 12.0 12.5 49.0
40.0 16.0 1. 0 16.0 21.5 3 Economies (1. 0)* Cost(%of property value) 6. 1 7 1 6. 1 6
. 7 4. 4 7. 3 0. 3 4. 6 4 Economies (0. 0)* Getting Credit (rank) 52 45 71 23
) Strength of legal rights index (0-12) 5 5 4 6 2 2 6 7 3 Economies (12)* Doing Business 2015 Spain 13
Depth of credit information index (0-8) 7 7 6 8 7 7 6 8 23 Economies (8)* Credit registry coverage
0. 0 100.0 100.0 23.4 26.3 100.0 23 Economies (100.0)* Protecting Minority Investors (rank) 30 30 17 51 21 51
10.0 10.0 9. 0 19.0 15.0 8. 0 8. 0 5 Economies (6. 0)* Cost to export (US$ per container) 1, 310.0 1
14.5 12.0 11.0 5 Economies (15.0)* Note: DB2014 rankings shown are not last year's published rankings but comparable rankings for DB2014 that capture the effects of such factors as data corrections and changes to the methodology.
The best performer on time for paying taxes is defined as the lowest time recorded among all economies in the DB2015 sample that levy the 3 major taxes:
If an economy has no laws or regulations covering a specific area for example, insolvency it receives a no practice mark.
Similarly, an economy receives a no practice or not possible mark if regulation exists but is used never in practice
Either way, a no practice mark puts the economy at the bottom of the ranking on the relevant indicator.*
*Two or more economies share the top ranking on this indicator. A number shown in place of an economy's name indicates the number of economies that share the top ranking on the indicator.
For a list of these economies, see the Doing Business website (http://www. doingbusiness. org.
Source: Doing Business database. Doing Business 2015 Spain 16 STARTING A BUSINESS Formal registration of companies has many immediate benefits for the companies and for business owners and employees.
Doing Business measures the ease of starting a business in an economy by recording all procedures officially required
The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a business.
To make the data comparable across economies, Doing Business uses several assumptions about the business and the procedures.
name verification or reservation, notarization) Registration in the economy's largest business city1 Postregistration (for example, social security registration,
Does not own real estate. 1 For the 11 economies with a population of more than 100 million
Doing Business 2015 Spain 17 STARTING A BUSINESS Where does the economy stand today? What does it take to start a business in Spain?
costs 4. 6%of income per capita and requires paid-in minimum capital of 13.8%of income per capita (figure 2. 1). 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 of the 2 largest business cities.
Spain stands at 74 in the ranking of 189 economies on the ease of starting a business (figure 2. 2). The rankings for comparator economies
and comparator economies rank on the ease of starting a business Source: Doing Business database.
Doing Business 2015 Spain 19 STARTING A BUSINESS Economies around the world have taken steps making it easier to start a business streamlining procedures by setting up a one-stop shop,
These are identified by Doing Business through collaboration with relevant local professionals and the study of laws, regulations and publicly available information on business entry in that economy.
to avoid excessive constraints on a sector that plays an important part in every economy.
time and cost for a business in the construction industry to obtain all the necessary approvals to build a warehouse in the economy's largest business city,
The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for dealing with construction permits.
To make the data comparable across economies Doing Business uses several assumptions about the business
For the 11 economies with a population of more than 100 million, data for a second city have been added.
Doing Business 2015 Spain 24 DEALING WITH CONSTRUCTION PERMITS Where does the economy stand today?
and costs 5. 2%of the warehouse value (figure 3. 1). 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 of the 2 largest business cities.
Spain stands at 105 in the ranking of 189 economies on the ease of dealing with construction permits (figure 3. 2). The rankings for comparator economies and the regional average ranking provide other useful
Figure 3. 2 How Spain and comparator economies rank on the ease of dealing with construction permits Source:
many firms in developing economies have to rely on self-supply, often at a prohibitively high cost.
The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting electricity.
To make the data comparable across economies several assumptions are used. The warehouse: is owned by a local entrepreneur, located in the economy's largest business city,
in an area where other warehouses are located. For the 11 economies with a population of more than 100 million, data for a second city have been added.
Is not in a special economic zone where the connection would be eligible for subsidization or faster service.
Doing Business 2015 Spain 31 GETTING ELECTRICITY Where does the economy stand today? What does it take to obtain a new electricity connection in Spain?
and costs 242.0%of income per capita (figure 4. 1). 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 of the 2 largest business cities.
Spain stands at 74 in the ranking of 189 economies on the ease of getting electricity (figure 4. 2). The rankings for comparator economies and the regional average ranking provide another perspective in assessing how easy
Figure 4. 2 How Spain and comparator economies rank on the ease of getting electricity Source:
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, the property and the procedures are used.
are located in the economy's largest business city2. Have 50 employees each, all of whom are nationals.
paying property transfer taxes) Registration in the economy's largest business city2 Postregistration (for example, filing title with the municipality) Time required to complete each procedure (calendar days) Does not include time spent gathering information Each
There is no heating system. 2 For the 11 economies with a population of more than 100 million,
Doing Business 2015 Spain 37 REGISTERING PROPERTY Where does the economy stand today? What does it take to complete a property transfer in Spain?
and costs 6. 1%of the property value (figure 5. 1). 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 of the 2 largest business cities.
Spain stands at 66 in the ranking of 189 economies on the ease of registering property (figure 5. 2). The rankings for comparator economies
and comparator economies rank on the ease of registering property Source: Doing Business database. Doing Business 2015 Spain 39 REGISTERING PROPERTY Economies worldwide have been making it easier for entrepreneurs to register
and transfer property such as by computerizing land registries, introducing time limits for procedures and setting low fixed fees.
For the 11 economies with a population of more than 100 million, data for a second city have been added.
The ranking of economies on the ease of getting credit is determined by sorting their distance to frontier scores for getting credit.
Doing Business 2015 Spain 44 GETTING CREDIT Where does the economy stand today? How well do the credit information system
The economy has a score of 7 on the depth of credit information index and a score of 5 on the strength of legal rights index (see the summary of scoring at the end of this chapter for details).
Globally, Spain stands at 52 in the ranking of 189 economies on the ease of getting credit (figure 6. 1). The rankings for comparator economies
Figure 6. 1 How Spain and comparator economies rank on the ease of getting credit Source:
Doing Business 2015 Spain 45 GETTING CREDITONE way to put an economy's score on the getting credit indicators into context is to see where the economy stands in the distribution of scores across economies.
Figure 6. 2 highlights the score on the strength of legal rights index for Spain and shows the scores for comparator economies as well as the regional average score.
Economy scores on strength of legal rights index Note: Higher scores indicate that collateral and bankruptcy laws are designed better to facilitate access to credit.
Economy scores on depth of credit information index Note: Higher scores indicate the availability of more credit information, from either a credit registry or a credit bureau,
The getting credit indicators reported here for Spain are based on detailed information collected in that economy.
publicity and enforcement of functional equivalents to security interests in movable assets exist in the economy?
An economy receives a score of 1 if there is a"yes"to either bureau or registry.
The ranking of economies on the strength of minority investor protections is determined by sorting their distance to frontier scores for protecting minority investors.
To make the data comparable across economies, a case study uses several assumptions about the business and the transaction.
is traded a publicly corporation listed on the economy's most important stock exchange (or at least a large private company with multiple shareholders.
and extent of shareholder governance indices Doing Business 2015 Spain 50 PROTECTING MINORITY INVESTORS Where does the economy stand today?
The economy has a score of 6. 4 on the strength of minority investor protection index,
Globally, Spain stands at 30 in the ranking of 189 economies on the strength of minority investor protection index (figure 7. 1)
a higher ranking does indicate that an economy's regulations offer stronger minority investor protections against self-dealing in the areas measured.
and comparator economies perform on the strength of minority investor protection index Source: Doing Business database.
Doing Business 2015 Spain 51 PROTECTING MINORITY INVESTORS One way to put an economy's scores on the protecting minority investors indicators into context is to see where the economy stands in the distribution of scores
across comparator economies. Figures 7. 2 through 7. 7 highlight the scores on the various minority investor protection indices for Spain in 2014.
Firms in economies that rank better on the ease of paying taxes in the Doing Business study tend to perceive both tax rates and tax administration as less of an obstacle to business according to the World bank Enterprise Survey research.
The ranking of economies on the ease of paying taxes is determined by sorting their distance to frontier scores on the ease of paying taxes.
To make the data comparable across economies, several assumptions are used. Taxpayerco is a medium-size business that started operations on January 1, 2012.
The business starts from the same financial position in each economy. All the taxes and mandatory contributions paid during the second year of operation are recorded.
or maximizes efficiency in the tax system of an economy overall. Instead it is mainly empirical in nature,
This reduces the bias in the indicators toward economies that do need not to levy significant taxes on companies like the Doing Business standardized case study company
%Doing Business 2015 Spain 60 PAYING TAXES Where does the economy stand today? What is the administrative burden of complying with taxes in Spain
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 of the 2 largest business cities.
Globally, Spain stands at 76 in the ranking of 189 economies on the ease of paying taxes (figure 8. 1). The rankings for comparator economies
Figure 8. 1 How Spain and comparator economies rank on the ease of paying taxes Source:
Doing Business 2015 Spain 61 PAYING TAXES Economies around the world have made paying taxes faster and easier for businesses such as by consolidating filings,
Some economies simplifying tax payment and reducing rates have seen tax revenue rise. What tax reforms has Doing Business recorded in Spain (table 8. 1?
making trade between economies easier is increasingly important for business. Excessive document requirements, burdensome customs procedures, inefficient port operations and inadequate infrastructure all lead to extra costs
The ranking of economies on the ease of trading across borders is determined by sorting their distance to frontier scores for trading across borders.
To make the data comparable across economies, Doing Business uses several assumptions about the business and the traded goods. The business:
is located in the economy's largest business city. For the 11 economies with a population of more than 100 million, data for a second city have been added.
Is a private, limited liability company, domestically owned and does not operate with special export or import privileges.
Is one of the economy's leading export or import products. is transported in a dry-cargo, 20-foot full container load.
Doing Business 2015 Spain 65 TRADING ACROSS BORDERS Where does the economy stand today? What does it take to export
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 of the 2 largest business cities.
Globally, Spain stands at 30 in the ranking of 189 economies on the ease of trading across borders (figure 9. 1). The rankings for comparator economies
and comparator economies rank on the ease of trading across borders Source Doing Business database.
Doing Business 2015 Spain 66 TRADING ACROSS BORDERSIN economies around the world, trading across borders as measured by Doing Business has become faster and easier over the years.
To make the data comparable across economies, Doing Business uses several assumptions about the case:
The seller and buyer are located in the economy's largest business city. For the 11 economies with a population of more than 100 million, data for a second city have been added.
The buyer orders custom-made goods, then fails to pay. The seller sues the buyer before a competent court.
Doing Business 2015 Spain 70 ENFORCING CONTRACTS Where does the economy stand today? How efficient is the process of resolving a commercial dispute through the courts in Spain?
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 of the 2 largest business cities.
Globally, Spain stands at 69 in the ranking of 189 economies on the ease of enforcing contracts (figure 10.1).
) The rankings for comparator economies and the regional average ranking provide other useful benchmarks for assessing the efficiency of contract enforcement in Spain.
Figure 10.1 How Spain and comparator economies rank on the ease of enforcing contracts Source:
in a quarter of the economies covered by Doing Business, by judges as well). COURT NAME Claim value:
save more viable businesses and thereby improve growth and sustainability in the economy overall. What do the indicators cover?
supplemented with data from central banks and the Economist Intelligence Unit. In addition, Doing Business evaluates the adequacy and integrity of the existing legal framework applicable to liquidation and reorganization proceedings through the strength of insolvency framework index.
The index tests whether economies adopted internationally accepted good practices in four areas: commencement of proceedings, management of debtor's assets, reorganization proceedings and creditor participation.
-4) Doing Business 2015 Spain 77 RESOLVING INSOLVENCY Where does the economy stand today? Combination of quality regulations and efficient practice characterize the top-performing economies.
How efficient are insolvency proceedings in Spain? According to data collected by Doing Business, resolving insolvency takes 1. 5 years on average and costs 11.0%of the debtor's estate,
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 of the 2 largest business cities.
Globally, Spain stands at 23 in the ranking of 189 economies on the ease of resolving insolvency (figure 11.1).
) The rankings for comparator economies and the regional average ranking provide other useful benchmarks for assessing the efficiency of insolvency proceedings in Spain.
Figure 11.1 How Spain and comparator economies rank on the ease of resolving insolvency Doing Business 2015 Spain 78 Source:
The report does not present rankings of economies on these indicators nor include the topic in the aggregate distance to frontier score
To make the data comparable across economies, several assumptions about the worker and the business are used.
Is a limited liability company (or the equivalent in the economy) with 60 employees. Operates a supermarket or grocery store in the economy's largest business city.
For 11 economies the data are collected also for the second largest business city. Is subject to collective bargaining agreements
if such agreements cover more than 50%of the food retail sector and they apply even to firms that are not party to them.
Many economies that changed their labor market regulation in the past 5 years did so in ways that increased labor market flexibility.
The average value added per worker is the ratio of an economy's GNI per capita to the working-age population as a percentage of the total population.
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 in the Doing Business 2015 report).
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 after data for the indicator were collected for the first time.
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 distributions of the rescaled data for most component indicators (very few economies need 700 days to complete the procedures to start a business
but many need 9 days), the worst performance is calculated after the removal of outliers. The definition of outliers is based on the distribution for each component indicator.
Second, for each economy the scores obtained for individual indicators are aggregated through simple averaging into one distance to frontier score, first for each topic and then across all 10 topics:
An economy's distance to frontier score is indicated on a scale from 0 to 100,
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 below-average 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 of the Doing Business 2015 report).
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
or maximizes efficiency in an economy's that from the simple average method because both these methods assign roughly equal weights to the topics,
which are considered of more or less importance in the context of a specific economy. 7 For getting credit,
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 12.1).
Table 12.1 Weights used in calculating the distance to frontier scores for economies with 2 cities covered Source:
Petersburg30new York60los Angeles40mexiconigeriapakistanrussian Federationunited Statesjapanbangladeshbrazilchinaindiaindonesia Doing Business 2015 Spain 90 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 that in 2013/14 implemented regulatory reforms making it easier to do business in 3
Twenty-one economies meet this criterion: Azerbaijan; Benin; the Democratic Republic of congo; Côte d'ivoire; the Czech republic; Greece; India;
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.
Doing Business 2015 Spain 91 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,
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
-library Contributors More than 10,700 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
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
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