Disclosure: The World Bank is a funder of Global Integrity.
The World Bank Group has published its most recent findings on the ease of doing business around the world. Doing Business 2010 shows the 2008-9 period of study to be a year of reform with legal reform up 20% from the previous round. Rwanda takes the crown as the top reformer, somewhat unsurprising given the major push the Kagame government has undertaken to portray itself as an oasis of reform in Africa (see articles in Fast Company and The New Yorker from a few months back). Two-thirds of the financial reforms tracked by Doing Business occurred in low/ low-middle income countries — whether that’s because higher incoming countries already have “best practices” in place, we’re not entirely sure.
Despite Doing Business coming under (what we see as somewhat unfair) criticism in recent years, it remains the standard bearer for in-depth, locally gathered data on what it takes to start, run, and shutter a business around the world. Congratulations to the Doing Business team for yet another impressive survey.
— Norah Mallaney & Global Integrity
News Release
In Washington, D.C.:
Nadine Ghannam
Phone: +1 (202) 473-3011
E-mail: nsghannam@ifc.org
Doing Business 2010: Governments Set New Record in Business Regulation Reform
Washington, D.C., September 9, 2009—A record 131 economies around the globe reformed business regulation in 2008/09, according to the IFC–World Bank Doing Business 2010 report.
That is more than 70 percent of the 183 economies covered by the report— the largest share in any year since the annual report was first published in 2004. And this progress came against the backdrop of a global economic crisis.
Doing Business 2010: Reforming through Difficult Times recorded 287 reforms between June 2008 and May 2009, up 20 percent from the previous year. Reformers around the world focused on making it easier to start and operate businesses, strengthening property rights, and improving commercial dispute resolution and bankruptcy procedures.
“Business regulation can affect how well small and midsize firms cope with the crisis and seize opportunities when recovery begins,” said Penelope Brook, Acting Vice President for Financial and Private Sector Development for the World Bank Group. “The quality of business regulation helps determine how easy it is to reorganize troubled firms to help them survive difficult times, to rebuild when demand rebounds, and to get new businesses started.”
Singapore, a consistent reformer, is the top-ranked economy on the ease of doing business for the fourth year in a row, with New Zealand as runner-up. But most of the action occurred in developing economies. Two-thirds of the reforms recorded in the report were in low- and lower-middle-income economies. For the first time a Sub-Saharan African economy, Rwanda, is the world’s top reformer of business regulation, making it easier to start businesses, register property, protect investors, trade across borders, and access credit.
Reformers were particularly active in Eastern Europe and Central Asia and the Middle East and North Africa. This year, there were 4 new reformers among the top 10: Liberia, the United Arab Emirates, Tajikistan and Moldova. Others include Rwanda, Egypt, Belarus, the Former Yugoslav Republic of Macedonia, the Kyrgyz Republic, and Colombia. Colombia and Egypt have been top global reformers in four of the past seven years.
Doing Business analyzes regulations that apply to an economy’s businesses during their life cycles, including start-up and operations, trading across borders, paying taxes, and closing a business. Doing Business does not measure all aspects of the business environment that matter to firms and investors. For example, it does not measure security, macroeconomic stability, corruption, skill level, or the strength of financial systems.
About the World Bank Group
The World Bank Group is one of the world’s largest sources of funding and knowledge for developing countries. It comprises five closely associated institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Each institution plays a distinct role in the mission to fight poverty and improve living standards for people in the developing world. For more information, please visit www.worldbank.org, www.miga.org, and www.ifc.org.
For more information about the Doing Business report series, please visit: www.doingbusiness.org
