Augusto Lopez Claros Director Global Indicators & Analysis November 22, Brussels

1. Benchmarking as a Development Tool: Promoting Better Business Regulation in EU Candidate and Potential Candidate Countries Augusto Lopez Claros Director Global Indicators & Analysis November 22, Brussels

2. Objectives Global Indicators and Analysis Department (GIA) • Generate and disseminate actionable and comparable data and indicators, as well as research and analysis, as key knowledge products - to inform the agenda for financial sector and private sector development, underpin policy dialogue, catalyze action, and engender research. Current products • Doing Business: 11 indicator sets, 183 economies. • Sub-National Doing Business: Driven by client demand – 27 reports on over 300 cities in 54 economies in 5 years. Complements national DB studies. Drives municipal/regional reforms – almost 200 reforms in a large number of countries over 5 years. • Investing Across Borders: Pilot launched in 2010 covering 87 economies. Concept to be fine-tuned, country coverage expanded. Underpins FDI advisory work. • Women, Business and the Law: Path-breaking database and analysis of gender barriers to women’s economic participation in 128 economies. Launched 2010 – dissemination ongoing. • Enterprise Surveys: 130k + firms surveyed. All regions covered. Complements DB, with broader scope. Basis for Investment Climate Assessments, IC reform programs. Over 300 research papers using ES data.

3. ProposalInvestment Climate Indicators in EU Candidate and Potential Candidate Countries

4. Deliverables • Data dashboard • To track performance over time • At the national level • At the subnational level (municipal and state) • At the regional level • To spur competition for reform • To promote transparency • Period regional, national and subnational reports • To compare primary micro level data • Over time • Across a number of locations in the same country • Across countries/regions

5. Subnational Doing BusinessInvesting Across BordersWomen, Business and the LawEnterprise Surveys Building Blocks

6. Doing Business in South East Europe 8 economies and 26 cities surveyed • Doing Business in South East Europe 2008 • Created a baseline for 15 subnational cities in addition to the 7 cities representing their respective economies in the annual report • Doing Business in South East Europe 2011 • Updates benchmarks for 18 cities in 6 economies (all but Croatia) previously measured • Tracks business reforms in these cities • Adds a new economy (Moldova) and 4 new cities from Albania, FYR Macedonia and Moldova (Eastern Neighborhood) MOLDOVA • Both reports cover 4 indicators • Starting a business • Dealing with construction permits • Registering property • Enforcing contracts

7. What are the key findings? • Remarkable progress in regulatory reform across the region results in significant time and cost savings for entrepreneurs • Skopje (FYR Macedonia) and Banja Luka (Bosnia and Herzegovina) most improved in the areas benchmarked • No single city or economy outperforms the others in all areas • The best overall improvement of the region is in the starting a business area • Dealing with construction permits remains expensive in the region • There is rich variation in performance by indicators across economies and even among cities within the same economy • Cities can learn from existing good practices across the region to become more competitive nationally, regionally and globally

8. South East Europe’s business entry averages improved significantly SEE Average 2008 26 22.3 SEE Average 2011 17 15 13 10 8 EU Average 2011 6 5.7 3 Skopje (FYR Macedonia) 3 1.5 Pljevlja (Montenegro) Time (days) Cost (% of GNI pc) Procedures (number)

9. Dealing with construction permits is expensive • The number of procedures varies from 15 in Pljevlja and Skopje to 30 in Chisinau • Pre-construction clearances take up the most time • SEE is one of the most expensive regions in the world: the average cost is 1,134% of income per capita

10. Wide variation in property registration across the region Property transfer tax (% of property value) Time (days)

11. Ia. Doing Business in South East Europe 2013 • Measure progress over time • Expand the subnational and regional analysis to cover other areas such as “Paying Taxes”, “Trading across Borders”, “Getting Electricity” and “Closing a Business” • Support regional “peer-to-peer” learning events to disseminate good practices and motivate the replication of successful business reforms from the region and internationally

12. Turkey and EU rankings on the ease of doing business 2010/11 EU accession countries average Turkey EU average Ease of doing business

13. Ib. Doing Business in Turkey 2012 • 7 regional centers: • Istanbul, Marmara • Ankara, Central Anatolia • Izmir, Aegean • Mersin, Mediterranean • Gaziantep, South-eastern Anatolia • Malatya, Eastern Anatolia • Samsun, Black Sea • 4 Doing Business indicators: • Starting a business • Dealing with construction permits • Registering property • Enforcing contracts

14. II. Investing Across Borders (IAB): Overview

15. Topics of IAB 2012 (Proposed publication date June 2012)

16. IAB 2012 country coverage

17. Sample bottlenecks IAB 2010 data in selected economies

18. III. Women, Business & the Law (WBL): Topic Areas • Objective: The Women, Business and the Law (WBL) dataset and report focuses on how easy or difficult is it for women to get jobs or start and run businesses. Using quantitative and objective data, it examines where laws differentiating between men and women way affect women’s opportunities and incentives to work.

19. What the WBL report measures • Women, Business and the Law 2012 Indicators: • The report objectively measures legal gender differentiations in 141 economies worldwide within six categories: • It does not capture the full extent of the gender gap, nor does it indicate the relative importance of each aspect covered.

20. Gender disparities in Turkey as measured by WBL

21. The gender gap in Turkey remains huge • Turkey (ranked 122 out of 135 countries worldwide) occupies the last place among European countriesin the Global Gender Gap 2011 report. The country performs particularly poorly in measures of political empowerment of women and variables which capture measures of economic participation and opportunity. In the latter category, Turkey ranks among the 10 worst performers in the world. Source: World Economic Forum Global Gender Gap Report 2011

22. IV. Enterprise Surveys: the world's most comprehensive company-level data • The Business Environment and Enterprise Performance Surveys (BEEPs) generate indicators of the overall business environment including infrastructure, regulation, corruption, finance, labor practices, competition, etc.

23. V. Synthesis report: comparing the accession countries to the EU and the rest of the world • Analyze the 11 Doing Business (DB) indicators as well as the 5 Investing Across Borders (IAB) indicators and the 6 Women, Business & the Law (WBL) indicators plus firm data from the Enterprise Surveys (ES) • Provide an in-depth analysis of the business environment in the EU accession countries and their comparative performance vis-à-vis the 27 EU member countries and other selected countries (e.g. China, India, Brazil) • Synthesis report brings 4 indicator groups into one package analyzing business environment from 3 perspectives: • Domestic firms and entrepreneurs (DB & ES) • Foreign firms (IAB) • Gender (WBL)

24. VI. Economy profile and data dashboard • Economy-specific report analyzing the business environment through 4 indicator sets: • Doing Business / subnational Doing Business • Investing across Borders • Women Business and the Law • Enterprise Surveys

25. Dashboard: Albania Albania

26. Doing Business in Turkey – subnational DB study measuring the largest business centers from 7 main regions of the country • Investing Across Borders update • Web-based dashboard and/or economy profiles Proposed Timeline 2012 • Doing Business in South East Europe – subnational DB study covering 7 economies and over 20 subnational cities • Women Business and the Law update • Synthesis report • Web-based dashboard and/or economy profiles 2013

27. Institutional arrangements and budget Initial 2-year agreement extendable for another 7-year period • Initial period: 2012 - 2013 • Renewal period: 2014 – 2020 Cost estimates (2012 - 2013)