findings of doing business 2020 - world...

Valeria Perotti

Program Manager, Doing Business

World Bank

Findings of Doing Business 2020

February 18, 2020

Development Economics │Global Indicators

I. About Doing Business

II. Where doing business is easiest

III. Where doing business improved the most

IV. Doing Business in Japan

What gets measured gets done

Doing Business origin: De Soto’s experiment

Measuring the time to get all permits required to open a business in Lima

289 days

1983

1983

1day

2002

Measuring & reporting create

pressure for improvements in

government efficiency

2

Business friendly regulations as measured by Doing Business are

associated with growth

Increased

business creation

Reduced

poverty headcount

More job

opportunities

Ease of

doing

business

Source: Djankov, Georgieva, Ramalho (2018); Divanbeigi, Ramalho (2015).

Increased annual

per capita growth

An improvement of 10 points in the overall ease of doing business score

is linked to an increase of around 0.5 new businesses per 1,000 adults

3

And higher levels of entrepreneurship

4 Source: Doing Business database; Global Entrepreneurship and Development Institute.

5

The areas of business regulation measured by Doing Business

Doing Business analyzes regulation that encourages efficiency

and supports freedom to do business:

Opening

a

business

Getting

a

location

Accessing

finance

Dealing

with

day-to-day

operations

Operating in

a secure

business

environment

Starting a

businessDealing with

construction

permits

Registering

property

Getting

creditProtecting

minority

investors

Paying

taxesTrading

across

borders

Contracting

with the

government

(coming soon)

Enforcing

contracts

Resolving

insolvency

Getting

electricity

What is the focus of the Doing Business indicators?

6

“Governments can foster market-

oriented development and growth

by creating rules that help

businesses create, hire and

expand. Removing barriers to

entrepreneurs generates better

jobs, more tax revenues and

higher incomes.”

World Bank Group President

David Malpass

Local

SMEs

Formal

sector

Largest

business

cities*

Standardized

scenarios

REGULATIONS

Note: The second largest business city is also measured in economies with

more than 100 million inhabitants as of 2013

Top 50 performers on in 2018/19

Rank Economy Score

1 New Zealand 86.8

2 Singapore 86.2

3 Hong Kong SAR, China 85.3

4 Denmark 85.3

5 Korea, Rep. 84.0

6 United States 84.0

7 Georgia 83.7

8 United Kingdom 83.5

9 Norway 82.6

10 Sweden 82.0

11 Lithuania 81.6

12 Malaysia 81.5

13 Mauritius 81.5

14 Australia 81.2

15 Taiwan, China 80.9

16 United Arab Emirates 80.8

17 North Macedonia 80.7

18 Estonia 80.6

19 Latvia 80.3

20 Finland 80.2

21 Thailand 80.1

22 Germany 79.7

23 Canada 79.6

24 Ireland 79.6

25 Kazakhstan 79.6

Rank Economy Score

26 Iceland 79.0

27 Austria 78.7

28 Russian Federation 78.2

29 Japan 78.0

30 Spain 77.9

31 China 77.9

32 France 76.8

33 Turkey 76.8

34 Azerbaijan 76.7

35 Israel 76.7

36 Switzerland 76.6

37 Slovenia 76.5

38 Rwanda 76.5

39 Portugal 76.5

40 Poland 76.4

41 Czech Republic 76.3

42 Netherlands 76.1

43 Bahrain 76.0

44 Serbia 75.7

45 Slovak Republic 75.6

46 Belgium 75.0

47 Armenia 74.5

48 Moldova 74.4

49 Belarus 74.3

50 Montenegro 73.8

Source: Doing Business database. One of the top 10 improvers8

Unified collateral registry

Sound & transparent

business regulation

Electronic tax filling

Online business

incorporation

Top performing economies share common features of regulatory

efficiency and quality

9

More than half of the world’s economies made it easier to do

business in 2018/19

10

115ECONOMIES

MADE 294REFORMS

MAKING IT EASIER TO

DO BUSINESS

Source: Doing Business database.


OECD

high-income

23

44%

0.7

Europe &

Central Asia

56

83%2.4

East Asia &

Pacific

33

48%1.3

Middle East &

North Africa

57

65%2.9South Asia

17

50%2.1

Sub-Saharan Africa

73

65%1.5

Latin America &

Caribbean

35

66%

1.1

11

Low-income and lower-middle-income economies carried out 136

reforms in 2018/19

Share of economies that reformed in a region %

Number of reforms per region

Average number of reforms per economy

ECA made the biggest improvement in business regulation over

time

0

5

10

15

20

25

30

Europe &Central Asia

Sub-SaharanAfrica

Middle East &North Africa

South Asia East Asia &Pacific

Latin America &Caribbean

High income:OECD

12

DB 2020

DB 2015-2019

DB 2010-2014

DB 2005-2009


Average improvement in the ease

of doing business score

Top improvers in 2018/19


14

The 10 economies improving the most across three or more areas measured by Doing

Business in 2018/19

Women

can obtain an

ID card in the

same manner

as men

Saudi Arabia made starting a business easier 2018/19

Streamlined

registration

New

online one-

stop shop

MERAS

-7.5 days

procedures for men

-1.2 % cost

Source: Doing Business database; Entrepreneurship Database.

New LLC owners increased from

12,390 in 2017 to 16,677 in 2018

Among them, new female business

owners increased from 1,815 in

2017 to 2,435 in 2018

-7

15

for women- 8

Jordan made resolving insolvency easier in 2018/19

Jordan adopted Insolvency Law No. 21 of 2018

Introduced option of reorganization for commercial entities as an alternative to liquidation

Allowed debtor to commencereorganization

Stipulated specific rules on how creditors vote on reorganization plan

Established provisions allowing continuation of the debtor’s business during insolvency

Source: Doing Business database.16

Score increased by 9.4 points

-49 days

-4.3% of property

value

-2procedures

Togo made registering property easier in 2018/19

Streamlined & faster

New one-stop shop: Guichet Foncier Unique

Submission of transfer documents & payment of

registration fees: one step at the same office

Cheaper

Reduced registration fee from 4% of property

value to a fixed fee

Reduced fee for drafting & notarizing the sale

agreement

17 Source: Doing Business database.

Bahrain made enforcing contracts easier in 2018/19

Improved quality of the judicial administration by:

+4.5 points

on Bahrain’s quality

of the judicial

administration

index: from

5.5 to 9 points

(out of 18)

Creating a specialized commercial court

Establishing time standards for key court events

Allowing electronic service of the summons


Tajikistan made getting credit easier in 2018/19

19

Launched a unified, modern & notice-based collateral registry

Introduced a

functional

secured

transactions

system

Broadened

the scope

of assets

that can be

used as

collateral

Allowed

general

description

of debts &

obligations

Granted

secured

creditors

absolute

priority

Provided time

limits & clear

grounds for

relief from

automatic

stays during

reorganization

Tajikistan ranks 11 on Getting Credit


Pakistan made getting electricity easier 2018/19


Investments in

power generation

Installed capacity

3,316 MW in 2017

3,569 MW in 2018

Increased access

to electricity

59,508 new connections

in Karachi

in 2018

Online portals

for new connection

applications

Enforced time limits

for connection

services

Improved

power outages

calculation

Tariff changes

announced in

advance

0

Reliability of supply andtransparency of tariffs index

(0-8)

162

113

Total time to obtain a newconnection (days)

5

2018/19

2017/18

Kuwait made construction permitting easier in 2018/19


Topographical survey

21

Water & electricity inspections

no longer

required

Public Authority of Industry

Fire Services Directorate

faster

clearance

Site take-over letter

Final report

submitted

online

Plans verified

via GIS

Municipality

automated

permits system

Public

agencies

integration

procedures

days

-3

-91

cost

-0.8%

China made paying taxes easier in 2018

✓ Implemented preferential

treatment on corporate

income tax rate for small and

thin-profit enterprises

✓ Reduced VAT rate from 17-

11% to 16-10%

✓ Enhanced the electronic filing

and payment system

✓ Reduced housing fund rate in

Shanghai

64.0

59.2

Total tax and contribution rate (% profits)

2017

2018

$


Decreased tax costs &

compliance time

23

India made resolving insolvency easier in 2018/19

Promoted reorganization in practice:

The Insolvency and Bankruptcy Code introduced

reorganization

Reorganization procedure enables the company to

continue operation as a going concern

Positive impact on time it takes to resolve a

reorganization procedure

Score went from 40.8 to 62.0


India ranks 52 on Resolving Insolvency

Nigeria made trading across borders easier 2018/19


Improved information sharing between

government agencies & traders

Documents submitted & approved

electronically

Time to comply with documentaryrequriements (export & import)

Reformimpact

2018/19

-69

hours

Upgraded

customs

e-platform

Integration of

additional

agencies

Electronic

approval of

documents

E-payment

system

Customs, port & shipping fees

paid online

The remarkable influence of the World Bank’s business rankings

25

Prime Minister of Pakistan

Imran Khan tweets on

Doing Business…

“This is the best time to be in India. Many things

are rising while others are falling. Ease of doing

business, ease of living, FDI, forest cover,

patents, productivity, infrastructure are rising.”

- Prime Minister of India Narendra Modi

at ASEAN Summit 2019

“…the report described itself as a

cholesterol test…It has nonetheless

become hugely influential.”

Japan’s performance compared to APEC in 2018/19

Rank Economy Score

1 New Zealand 86.8

2 Singapore 86.2

3 Hong Kong SAR, China 85.3

5 Korea, Rep. 84.0

6 United States 84.0

12 Malaysia 81.5

14 Australia 81.2

15 Taiwan, China 80.9

21 Thailand 80.1

23 Canada 79.6

28 Russian Federation 78.2

One of the top 10 improvers

Rank Economy Score

29 Japan 78.0

31 China 77.9

59 Chile 72.6

60 Mexico 72.4

66 Brunei Darussalam 70.1

70 Vietnam 69.8

73 Indonesia 69.6

76 Peru 68.7

95 Philippines 62.8

120 Papua New Guinea 59.8


0 20 40 60 80 100

Getting credit

Protecting minority investors

Enforcing contracts

Registering property

Paying taxes

Dealing with construction permits

Trading across borders

Starting a business

Resolving insolvency

Getting electricity

Ease of doing business score (0-100)

Results on individual indicators

Doing Business in Japan – ease of doing business score

28

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

Japan scored

78.0 points on

the ease of

doing business

in 2018/19,

giving it a

ranking of 29

overall in Doing

Business 2020


Japan’s rankings compared to OECD high-income


Note: The rank next to each indicator shows Japan’s performance.

Starting a business (106)

Dealing with construction permits (18)

Getting electricity (14)

Registering property (43)

Getting credit (94)

Protecting minority investors (57)

Paying taxes (51)

Trading across borders (57)

Enforcing contracts (50)

Resolving insolvency (3)

Japan OECD high-income

Japan made paying taxes and getting electricity easier

in the past years

30

Japan made paying taxes easier by

disclosing the technical

specifications of the eTax platform

and allowing the upload of additional

information in comma separated value

(CSV) format, which reduced

compliance time for three major taxes

Doing Business 2016:

181.5 hours per year

128.5 hours per year

Japan made paying taxes less costly

by reducing the statutory rate for CIT

and rates for other taxes including

mandatory labor contributions


48.8% total tax and contribution rate


47.4% total tax and contribution rate

Osaka made getting electricity more

efficient by introducing online

application and eliminating

preliminary consultation


4 procedures

39 days


3 procedures

38 days


Payin

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www.doingbusiness.org


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