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.
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. • 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 methodology • Only 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 revisions • Correction 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.
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.
Eastern Europe and Central Asia is the second best performing region in 2008/09 Best Rank Average Rank Lowest Rank
Eastern Europe and Central Asia reformed the most followed by Middle East and North Africa Percentage of countries with at least one positive reform in 2008/09 96% High Income OECD Eastern Europe and Central Asia 89% 59% 63% 63% 71% 75% Middle East and North Africa South Asia Latin America and Caribbean East Asia and Pacific Sub-Saharan Africa
The top 10 reformers in 2008/09 – 4 countries from Eastern Europe and Central Asia
Eastern Europe and Central Asia rankings on the ease of Doing Business 2008/09
71 reforms in 9 areas in Eastern Europe and Central Asia in 2008/09 Starting a business is the most popular area of reform in the region Number of reforms by indicator
I checked the top ten in every indicator and we just asked them “What did you do”? - Dr MahmoudMohieldin, Egypt’s Minister of Investment Top 10 by Indicator
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 Lowest 183
Moldova eased the tax burden of companies by reducing the total tax rate Total tax rate (% of profits) Payments (number per year) Time (hours per year) 228 Moldova has eased the burden of taxes on business reducing the social security taxes as paid by the employer.
Moldova made Starting a business quicker by 5 days Moldova eased the business start up process by implementing an expedited company registration service. 2008 5 days less Time (days) 2009 Eliminated 1 procedure
Completed reforms inspired and informed by Doing Business 270 completed reforms were inspired by Doing Business 270