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Doing Business: Eastern Europe and Central Asia. Svetlana Bagaudinova Senior Private Sector Development Specialist. September 9, 2009. What does Doing Business measure?. Doing Business indicators: Focus on regulations relevant to the life cycle of a small to medium-sized domestic business. - PowerPoint PPT Presentation
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Doing Business:Eastern Europe and Central Asia
Svetlana BagaudinovaSenior Private Sector Development Specialist
September 9, 2009
What does Doing Business measure?
Doing Business indicators:
Focus on regulations relevant to the life cycle of a small to medium-sized domestic business.
Are built on standardized case scenarios.
Are measured for the most populous city in each country.
Are focused on the formal sector.
DO NOT measure all aspects of the business environment such as macroeconomic stability, corruption, level of labor skills, proximity to markets, of regulation specific to foreign investment or financial markets.
Why do rankings change?
# 1 reason: reforms DB2010 recorded 287 reforms in 131 economies. Ranking can change because the economy reformed – OR
others did.
Changes to the methodologyOnly one change in DB2010 to methodology of Employing Workers
indicator.
New economy additions Since 2004, Doing Business added 50 economies to the sample (from
133 to 183).
Data revisionsCorrection rate for DB10 was 5.5%. Note: data for previous years are recalculated in case of revisions.
Comparable rankings are published side by side in report.
What's new in Doing Business 2010?
2007175 economies
2008178 economies
2009181 economies
2010183 economies
Starting a business Dealing with
construction permits
Employing workers Registering
property Getting credit Protecting
investors Paying taxes Trading across
borders Enforcing contracts Closing a business
Update of 2007
Add 3 countries Reformer’s Club,
and 16 case studies
New “About DB” chapter
Trends analysis DB04-DB09 Most popular
reforms Most effective
reforms Lessons learned
Add 3 new countries (Bahamas, Bahrain, Qatar)
Methodology change in Getting Credit (Legal Rights)
Business regulation and reform in the context of the global crisis
EWI and social protection
Researching ILO core labor standards
Piloting a new infrastructure indicator
New insights on gender
Add Cyprus, Kosovo
1. Singapore 16. Finland2. New Zealand 17. Mauritius3. Hong Kong, China 18. Sweden4. United States 19. Korea, Rep.5. United Kingdom 20. Bahrain6. Denmark 21. Switzerland7. Ireland 22. Belgium8. Canada 23. Malaysia9. Australia 24. Estonia10. Norway 25. Germany11. Georgia 26. Lithuania12. Thailand 27. Latvia13. Saudi Arabia 28. Austria14. Iceland 29. Israel15. Japan 30. Netherlands
Top 30 on the ease of Doing Business 2008/09
Key findings in this year’s report
Worldwide the pace of reform picks up to reach a new record: 287 reforms in 131 countries; 20% more than in the year before.
Developing economies lead in DB reforms: Two-thirds of reforms in low- and lower-middle-income economies.
Rwanda is the top reformer: Jumped 76 places in the aggregate rankings, from 143 to 67. Reforms in 7 of the 10 areas.
Eastern Europe and Central Asia is the fastest reforming region six years in a row: 26 of 27 economies reformed. Reform in ECA is spreading eastward: Albania, Belarus, the Kyrgyz Republic, Kazakhstan, Montenegro and Tajikistan continued reforming.
5 of the 10 top reformers are from Eastern Europe and Central Asia.
The Middle East and North Africa region sees the largest surge in reforms: 17 of 19 economies reformed in 2008/09.
Top reformers have been consistent, comprehensive, and committed to reform—often implemented within long term strategies.
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Eastern Europe and Central Asia is the second best performing region in 2008/09
Lowest Rank
Average Rank
Best Rank
Percentage of countries with at least one positive reform in 2008/09
96%
89%
75%
71%63%
59%
63%
High Income OECD
Eastern Europe and Central Asia
Sub-Saharan Africa
Middle East and North Africa
Latin America and
Caribbean
South Asia
East Asia and Pacific
Eastern Europe and Central Asia reformed the most followed by Middle East and North Africa
The top 10 reformers in 2008/09 – 4 countries from Eastern Europe and Central Asia
Economy Starting a business
Dealing with construction
permitsEmploying
workersRegistering
property Getting credit
Protecting investors
Paying taxes
Trading across borders
Enforcing contracts
Closing a business
Rwanda Kyrgyz Republic
Macedonia FYR
Belarus United Arab Emirates
Moldova
Colombia
Tajikistan Egypt, Arab Rep.
Liberia
Eastern Europe and Central Asia rankings on the ease of Doing Business 2008/09
TajikistanUzbekistan
UkraineRussian Federation
Bosnia and HerzegovinaKosovoCroatia
MoldovaSerbia
AlbaniaTurkeyPoland
MontenegroKazakhstan
BelarusRomaniaSloveniaBulgariaArmenia
Kyrgyz RepublicCyprus
AzerbaijanMacedonia, FYR
LatviaLithuania
EstoniaGeorgia
0 20 40 60 80 100 120 140 160 180
152150
142120
116113
10394
8882
7372
7163
5855
5344
4341
4038
3227
2624
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71 reforms in 9 areas in Eastern Europe and Central Asia in 2008/09
Starting a business
Dealing with licenses
Paying taxes
Registering property
Getting credit
Trading across borders
Closing a business
Employing workers
Protecting investors
Enforcing contracts
13
1110
9 9
6 6
43
0
Starting a business is the most popular area of reform in the region
Number of reforms by indicator
Topic World’s top ranked 2008/09 Eastern Europe and Central Asia’s top ranked 2008/09
Starting a business New Zealand Georgia (5)Macedonia, FYR (6)
Dealing with construction permits Hong Kong, China Georgia (7)
Estonia (20)Employing workers Australia Georgia (9)
Belarus (32)Registering property Saudi Arabia Georgia (2)
Lithuania (4)Getting credit
MalaysiaBulgaria (4)Latvia (4) Serbia (4)
Protecting investors New Zealand Kyrgyz Republic (12)Albania (15)
Paying taxes Maldives Macedonia, FYR (26)Cyprus (37)
Trading across borders Singapore Estonia (3)Cyprus (15)
Enforcing contracts Luxembourg Belarus (12)Latvia (15)
Closing a business Japan Cyprus (21)Kosovo (28)
I checked the top ten in every indicator and we just asked them “What did you do”? - Dr Mahmoud Mohieldin, Egypt’s Minister of Investment
Top 10 by Indicator
Eastern Europe and Central Asia – top reformer in Closing a business
Eastern Europe and Central Asia lead the way in Getting credit reforms with 9 reforms in 2008/09
Improvements in the protecting investors indicator in Eastern Europe and Central Asia
Online tax filing is now possible in the majority of countries in Eastern Europe and Central Asia
Moldova’s performance stands out in Registering property and Enforcing contracts
Ease of Do-ing Busi-
ness
Starting a business
Dealing with licenses
Employing workers
Registering property
Getting credit
Protecting investors
Paying taxes
Trading across borders
Enforcing contracts
Closing a business
72 68
119
91
6351
69
105
93
59
8594 77
161
141
17
87
109101
140
22
90
Moldova DB10 Europe and Central Asia DB10
Highest 1
Lowest 183
Moldova eased the tax burden of companies by reducing the total tax rate
Series1DB10 DB09
31
42
Series1
48
52
Series1
234
Total tax rate (% of profits)
Payments (number per year) Time (hours per year)
Moldova has eased the burden of taxes on business reducing the social security taxes as paid by the employer.
228
Moldova made Starting a business quicker by 5 days
1 2 3 4 5 6 7 8 90
3
6
9
12
15
Procedures
2008
2009
5 days less
Eliminated 1 procedure
Moldova eased the business start up process by implementing an expedited company registration service.
Tim
e (d
ays)
Completed reforms inspired and informed by Doing Business
2004 2005 2006 2007 2008 20090
50
100
150
200
250
300270 completed reforms were inspired by Doing Business
270
Thank you. For more information:www.doingbusiness.org