Doing Business

Reducing Bureaucracy

BackgroundThe 2011 Doing Business report is the eighth in a series of annual reports benchmarking the regulations that enhance business activity and those that constrain it. The report presents quantitative indicators on business regulation and the protection of property rights for 183 economies

Israel's global ranking in 2011 is: 29

Rank)29(

Starting a Business

)36(

Dealing with Licenses

(121)

Registering Property

(147)

Getting Credit

(6)

Protecting Investors

(5)

Paying Taxes

)82(

Enforcing Contracts

)96(

Closing a business

)40(

Trading Across

Borders )10(

Procedures (number)

)7.8 / 5(

Time (days) )33.9 / 34(

Cost (% of income

per capita))40.7 / 4.3(

Min. capital (% of income

per capita))59.6 / -(

Procedures (number)

)18 / 20(

Time (days))207.3 / 235(

Cost (% of income

per capita))723.4 / 104(

Procedures (number)

)5.9 / 7(

Time (days))58 / 144(

Cost (% of property

value))5.9 / 5(

Legal Rights Index

)5.5 / 9(

Credit Information

Index)3 / 5(

Shareholder Suits Index

)5.7 / 9(

Disclosure Index

)5.3 / 7(

Director Liability Index

)4.4 / 9(

Investor Protection

Index)5.1 / 8.3(

Payments (number)

)29.9 / 33(

Time (hours))282.1 / 235(

Documents for export (number)

)6.5 / 5(

Time for export (days)

)23.1 / 11(

Cost to export (US$ per container)

)1393 / 670(

Procedures (number)

)38.1 / 35(

Time (days))605.1 / 890(

Cost (% of debt)

34.7 / 25.3(

Recovery rate (cents on the

dollar))32.3 / 49.1(

)Israel/ Average world(

Time (years))2.9 / 4(

Cost (% of estate)

)15.6 / 23(

Time for import (days)

)25.8 / 10(

Total tax rate (% profit)

)47.8 / 31.7(

25%

25%

25%

25%

33%

33%

33%

33%

33%

33%

62.5%

37.5%

33%

33%

33% 33%

33%

33%

17%

17%

17%

17%

17%

17%

33%

33%

33%

100%

Documents for import (number)

)7.3 / 4(

Cost to import (US$ per container)

)1639.8 / 605(

Legend: Leading Lagging

The World Bank’s Ranking

Benefit for the Israeli economy

How do we improve?

Improving World Bank

rankings

Improving World Bank

rankings

Measuring the burden and the improvement using the SCM

Identify processes which have an impact on the ease of Doing

Business

Many government agencies participate in the process

Better Regulation

How?

Starting a business Property registration

Business Registration Import Food Products Registration Medical Tools and Devices Registration the Standards Institution of Israel (SII)

Adding additional processes, according to SCM

What needs to be done?

Open Discussion

Thank you

A joint effort of all Government offices Ministry of Finance Ministry of Justice Ministry of Trade, Industry & Labor Ministry of Interior affairs Ministry of Health Ministry of Environmental Protection Ministry of Agriculture & Rural Development Tax Authority National Insurance Institute Accountant General

Additional partners: Chamber of Commerce Israel Federation of Independent’s Organizations Manufacturers Association of Israel

Mapping the Costs

Costs applicable to businesses and citizens arising from Government’s legislation and regulation .

What is the administrative burden of What is the administrative burden of regulationregulation??

The cost of administrative burden for businesses in Europe is estimated at € 470 billion per year which accounts for 3.5% of GDP EU

Accordingly, the administrative burden in Israel is estimated at NIS 30 Billion

SCM – Standard Cost Model

The conventional model for examining the cost of bureaucratic burden

Hours Cost per hour Frequency businessesXX X

SCM