Transcript Slide 1
Simeon Djankov, Chief Economist Private Sector and Finance, World Bank Houston, April 8 World Bank Origins • International Bank for Reconstruction and Development (IBRD) • Established July 1944 in Bretton Woods. Mission? To rebuild Europe and Japan after World War II. • Mission today? Poverty reduction through inclusive and sustainable development • Vital source of financial and technical assistance to developing countries Bank’s Agencies World Bank Group International Bank for Reconstruction and Development International Development Association International Finance Corporation Mutilateral Investment Guarantee Agency 1945 1960 1956 1988 International Center for the Settlement of Investment Disputes 1966 Doing Business Indicators 2008 2009 • Starting a business • Add Not paying bribes • Dealing with licenses • Add Using infrastructure • Employing workers • Add Bahrain, Qatar, and the Bahamas (181 economies in total) • Registering property • Getting credit • Protecting investors • Paying taxes • Trading across borders • Enforcing contracts • Closing a business Making it Easier to Register Property in Ghana Time reduced from 169 to 34 days 180 160 2006 140 Time (days) 120 100 Procedure eliminated: Registration of deed and land commission 80 60 2007 40 20 0 Preparation of the transfer document Assessment and payment of stamp duty Submit application for Title Certificate Publication of transaction Procedures Issuance of Title Certificate Top Reformers in 2006-07 Starting a business Dealing with licenses 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Egypt Croatia Ghana Macedonia Georgia Colombia Saudi Arabia Kenya China Bulgaria Employing workers Registering property Getting credit Protecting investors Paying taxes Trading across borders Enforcing contracts Closing a business Eastern Europe and Central Asia Countries Reformed the Most Countries with at least one positive reform in 2006-'07 (%) E. Europe + Central Asia OECD 78.6% 62.5% 58.8% 35.5% Latin America + Caribbean Middle East + N. Africa 62.5% 45.8% South Asia 52.2% Sub-Saharan Africa East Asia + Pacific Eastern Europe surpasses East Asia on the ease of doing business 136 Average rank, ease of doing business 107 96 87 76 77 Eastern Europe & Central Asia East Asia & Pacific 22 High income OECD Latin America & Caribbean Middle East & North Africa South Asia Sub Saharan Africa Easier Entry Regulations, Lower Taxes, Faster Property Transfers among the Most Popular Reforms in 2006-07 39 Starting a business 31 Paying taxes 27 Registering property 24 Trading across borders 22 Getting credit 15 Dealing with licenses 14 Enforcing contracts Closing a business 10 Protecting investors 10 Employing workers 8 Number of positive reforms Longest export delays in South Asia and Africa Time to export (in days) 36 32 29 24 25 East Asia & EastPacific Asia & Pacific MENA MENA 22 10 High income: High OECD income OECD Latin America & Latin America Caribbean & Caribbean Eastern Europe Eastern Europe & Central Asian & Central Asian South Asia South Asia Sub-Saharan Sub Africa Saharan Africa 0.33 x 0.5 Top 30 on the Ease of Doing Business — 2007 1. Singapore 16. Switzerland 2. New Zealand 17. Estonia 3. United States 18. Georgia 4. Hong Kong, China 19. Belgium 5. Denmark 20. Germany 6. United Kingdom 21. Netherlands 7. Canada 22. Latvia 8. Ireland 23. Saudi Arabia 9. Australia 24. Malaysia 10. Iceland 25. Austria 11. Norway 26. Lithuania 12. Japan 27. Mauritius 13. Finland 28. Puerto Rico 14. Sweden 29. Israel 15. Thailand 30. Korea Slow License Approvals, High Warehouse Rents 6 16 0 16 17 20 14 37 46 12 40 60 84 10 80 Cost to rent a warehouse 8 14 (US $ per square meter) 120 6 4 14 100 7 6 6 6 8 10 140 160 2 174 177 0 180 200 Copenhagen Paris *Excluding value added tax Source: DOEL Partners, Doing Business 2008 Berlin Brussels Madrid Amsterdam Kiev Moscow Ranking on ease of getting a license Average monthly rent (US$ per square meter)* Ease of getting a license rank Business Friendly Regulation Leads to More Registered Businesses and Start-ups Business Density Business Entry (registered firms per adults) (new firms in % of registered firms) Easiest Most difficult Easiest Countries ranked by ease of doing business, quintiles Source: Doing Business database Most difficult More Reforms, Higher Equity Returns 3-year Shareholder Returns 90% 80% Egypt 70% Colombia 60% Brazil 50% Poland 40% India 30% Sri Lanka 20% 10% Venezuela 0% -6 -4 -2 0 2 4 Number of reforms, 2003-06 6 8 10 12