PHOTO
JEDDAH: A record 137 economies around the world have adopted key reforms that make it easier to start and operate small and medium-sized businesses, says Doing Business 2017: Equal Opportunity for All, the World Bank Group’s annual report on the ease of doing business.
The new report finds that developing countries carried out more than 75 percent of the 283 reforms in the past year, with Sub-Saharan Africa accounting for over one-quarter of all reforms.
The Middle East and North Africa region saw the most reforms implemented in the past year since 2009, with 35 reforms in 15 of the region’s 20 economies.
Among the reformers, the UAE and Bahrain were among the world’s top 10 improvers. However, the region features the greatest gender disparities, with 70 percent of the economies creating barriers for women entrepreneurs.
In South Asia, five of the region’s eight economies implemented a total of 11 reforms in the past year, compared with nine the previous year. Pakistan, which was among the world’s top 10 improvers, implemented several reforms this past year, as did India and Sri Lanka.
The bulk of the business reform activity in the region was aimed at facilitating cross-border trade. However, Afghanistan and Pakistan, stipulate additional hurdles for women entrepreneurs.
In its global country rankings of business efficiency, Doing Business 2017 awarded its coveted top spot to New Zealand, Singapore ranks second, followed by Denmark; Hong Kong SAR, China; Republic of Korea; Norway; United Kingdom; United States; Sweden; and Former Yugoslav Republic of Macedonia.
The world’s top 10 improvers, based on reforms undertaken, are Brunei Darussalam; Kazakhstan; Kenya; Belarus; Indonesia; Serbia; Georgia; Pakistan; UAE; and Bahrain.
The report cites research that demonstrates that better performance in Doing Business is, on average, associated with lower levels of income inequality, thereby reducing poverty and boosting shared prosperity.
“Simple rules that are easy to follow are a sign that a government treats its citizens with respect. They yield direct economic benefits – more entrepreneurship; more market opportunities for women; more adherence to the rule of law,” said Paul Romer, World Bank chief economist and senior vice president.
“But we should also remember that being treated with respect is something that people value for its own sake and that a government that fails to treat its citizens this way will lose its ability to lead.”
Doing Business data points to continued successes in the ease of doing business worldwide, as governments increasingly take up key business reforms. Starting a new business now takes an average of 21 days worldwide, compared with 46 days 10 years ago.
Paying taxes in the Philippines involved 48 payments 10 years ago, compared to 28 now and in Rwanda, the time to register a property transfer has dropped from 370 days a decade ago to 12 days now.
This year’s Doing Business report also features expansions to the Paying Taxes indicator, to cover post-filing processes, such as tax refunds, tax audits and administrative tax appeals, to better understand the overall tax environment. Since 2004, when Doing Business started, a total of 443 reforms have been recorded under the Paying Taxes indicator, the second highest number of reforms, with 46 reforms implemented in the past year.
However, easing the requirements for Starting a Business is, by far, the most common area for reform, with almost 600 reforms recorded since 2004. Of these, 49 reforms were introduced during the past year.
© Arab News 2016
