GENEVA — In the midst of the global financial crisis, rich and emerging nations implemented a record number of regulatory reforms in a bid to slash costs and enhance the business setting of their economies, according to a new World Bank report.
The World Bank’s “Doing Business 2010: Reforming Through Difficult Times” report reveals 131 economies reformed business regulations in 2008-09 out of 183 covered by the study.
“Business regulation can affect how well small and midsize firms cope with the crisis and seize opportunities when recovery begins,” said Penelope Brook, acting World Bank vice president for financial and private sector development.
Related Articles
The 10 business regulations analyzed by the report include trading across borders, starting a business, protecting investors, getting credit, paying taxes and enforcing contracts.
You May Also Like
Singapore is ranked the top nation on the ease of doing business, followed by New Zealand, Hong Kong, the U.S. and the U.K.
The analysis shows that some apparel exporting nations such as Mauritius, rising to 17th place from 24th the previous year; Egypt, up to 106th from 116th, and Indonesia, up seven slots to 122nd, have posted big gains on the business reform front. But others such as China, down to 86th from 89th; Vietnam, falling two slots to 93rd; Bangladesh, falling four spots to 119th; Cambodia, falling to 145th from 139th, and India, down one spot to 133rd, fell behind in the pace of reform.
In the segment on the cost of trading across borders, which examines the number of documents required, the cost levied per 20-foot container, and the time to export or import goods, indicates economies that have efficient customs, transport and logistics are more competitive globally.
The report estimates the time to export goods in rich Western economies averages 10.5 days, requires 4.3 documents and has an average cost to export a container of $1,089. By comparison, in South Asia on average it takes 32.4 days, requires 8.5 documents and costs $1,364 per container, while in East Asia and the Pacific only 23.1 days, 6.6 documents and $909 per container.
In the most efficient cases, it takes only five days to exports goods in Denmark and Singapore, requires only two documents in France and only four documents in Hong Kong and Singapore, and costs only $450 to export a container from Malaysia, $456 from Singapore and $500 from China.
On the import front, the report said it takes on average 11 days to import goods in Western economies, 24.3 days in East Asia and the Pacific, and 32.2 days in South Asia.