Starting a business in Madagascar China Penelope J. Brook, Director, Indicators and Analysis...
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Transcript of Starting a business in Madagascar China Penelope J. Brook, Director, Indicators and Analysis...
Starting a business in Madagascar
ChinaPenelope J. Brook, Director, Indicators and AnalysisFinancial & Private Sector Development
Doing Business Indicators
2007 2008 2009• Starting a business
• Dealing with licenses
• Employing workers
• Registering property
• Getting credit
• Protecting investors
• Paying taxes
• Trading across borders
• Enforcing contracts
• Closing a business
Add 3 countries
• Reformer’s Club:
• 11 case studies
• Add 3 countries
• Research program on
regulation and
business opportunities
for women
• Ongoing work on new
indicators
Focus on Steps, Time and Cost isDoing Business Basic Methodology
Tim
e (n
um
be
r o
f d
ays
)
Co
st (
% o
f G
NI
pe
r ca
pit
a)
Cost
(right axis)
Time
(left axis)
0
5
10
15
20
25
30
0%
2%
4%
6%
8%
10%
12%
14%
Authorize company
name
Notarize company deeds & register for tax
Register public
commercial register
Register with IMSS
Register with federal
tax authorities
Notice of opening of mercantile
establishment
Register at the SIEM
File a notice with INEGI
Starting a business in Mexico 8 procedures that take 27 days and 13.3% of income
Top 30 on the Ease of Doing Business — 2007
1. Singapore 16. Switzerland
2. New Zealand 17. Estonia
3. United States 18. Georgia
4. Hong Kong, China 19. Belgium
5. Denmark 20. Germany
6. United Kingdom 21. Netherlands
7. Canada 22. Latvia
8. Ireland 23. Saudi Arabia
9. Australia 24. Malaysia
10. Iceland 25. Austria
11. Norway 26. Lithuania
12. Japan 27. Mauritius
13. Finland 28. Puerto Rico
14. Sweden 29. Israel
15. Thailand 30. Korea
Top Reformers in 2006-07
1.Egypt
2.Croatia
3.Ghana
4.Macedoni
a FYR
5.Georgia
6.Colombia
7.Saudi Arabia
8.Kenya
9.China
10.Bulgaria
Starting a
business Dealing with
licenses Employing
workers
Registering
property Getting credit
Protecting
investors Paying taxes
Trading
across
borders
Enforcing
contracts Closing a
business
China 83Vietnam 91Indonesia 123Philippines 133Cambodia 145Lao PDR 164Timor-Leste 168
Singapore 1Hong Kong, China 4Japan 12Thailand 15Malaysia 24Korea 30Brunei 78
China and the Region
China Highlights
• A top 10 reformer globally for second year in a
row in 2007• #83 in ease of doing business, up by 9 places• Improved in 3 of the 10 indicators studied by
Doing Business: • Dealing with licenses• Getting credit• Closing a business
China’s Overall Ranking: #83
Topic China’s Rank Top ranked
Starting a business 135 Australia
Dealing with licenses 175 St. Vincent & the Grenadines
Employing workers 86 United States
Registering property 29 New Zealand
Getting credit 84 United Kingdom
Protecting investors 83 New Zealand
Paying taxes 168 Maldives
Trading across borders 42 Singapore
Enforcing contracts 20 Hong Kong, China
Closing a business 57 Japan
More Reforms, Higher Equity Returns
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
-6 -4 -2 0 2 4 6 8 10 12
Venezuela
Egypt
Colombia
Sri Lanka
India
Brazil
Poland
Number of reforms, 2003-06
China
Business Friendly Regulation Leads toMore Registered Businesses and Start-ups
Countries ranked by ease of doing business, quintiles
Business Density (registered firms per capita)
Business Entry (new firms in % of registered firms)
Source: Doing Business database
Easiest Most difficult Most difficultEasiest
…Which Means More Formal Employment
Source: Doing Business database, WDI
Informal Sector (% of GDP)
Unemployment (% of labor force)
Easiest Most difficult Most difficultEasiest
Countries ranked by ease of doing business, quintiles
Why Expand Doing Business to the Sub-National Level?
Diagnostic tool Reform
instrument M&E instrument
• Creates baseline
• Allows locations to compete locally and globally
• Entry point in countries averse to international comparisons
• Puts regulatory reform on political agenda
• Comparisons within countries are strong drivers of reform
• Uncovers bottlenecks and local good practices
• Promotes peer to peer learning
• Measures progress over time
• Creates an incentive to maintain reform effort even when governments change
•Extends Doing Business indicators beyond the most populous city
•Actively involves local governments in the reform process
Subnational DB Uncovers Best Practices within a Country
Countries/RegionsGlobal ranking DB 2008
Hypothetical city ranking
South East Europe 75-136 9
India 134* 79*
Pakistan 76 52
OECS 27-85* 14*
Colombia 66 35
México 43* 33*
Egypt 126 106
Morocco 129 113
China 83 67
*2007 data
To learn more about Doing Business http://chinese.doingbusiness.org