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Simeon Djankov, Chief Economist

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1 Simeon Djankov, Chief Economist
Private Sector and Finance, World Bank Houston, April 8

2 World Bank Origins International Bank for Reconstruction and
Development (IBRD) Established July 1944 in Bretton Woods. Mission? To rebuild Europe and Japan after World War II. Mission today? Poverty reduction through inclusive and sustainable development Vital source of financial and technical assistance to developing countries

3 Bank’s Agencies 1945 1960 1956 1988 1966

4 Doing Business Indicators
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 Not paying bribes Add Using infrastructure Add Bahrain, Qatar, and the Bahamas (181 economies in total)

5 Making it Easier to Register Property in Ghana
Time reduced from 169 to 34 days 180 160 140 2006 120 100 Procedure eliminated: Registration of deed and land commission Time (days) 80 60 40 2007 20 Preparation of the transfer document Assessment and payment of stamp duty Submit application for Title Certificate Publication of transaction Issuance of Title Certificate Procedures

6  Top Reformers in 2006-07 Starting a business Dealing with licenses
1. Egypt 2. Croatia 3. Ghana 4. Macedonia 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

7 Eastern Europe and Central Asia Countries Reformed the Most
Countries with at least one positive reform in 2006-'07 (%) E. Europe + Central Asia 78.6% OECD 62.5% 58.8% Middle East + N. Africa 35.5% 45.8% 62.5% South Asia East Asia + Pacific Latin America + Caribbean 52.2% Sub-Saharan Africa

8 Eastern Europe surpasses East Asia on the ease of doing business
Average rank, ease of doing business High income OECD Eastern Europe & Central Asia East Asia & Pacific Latin America & Caribbean Middle East & North Africa South Asia Sub Saharan Africa

9 Number of positive reforms
Easier Entry Regulations, Lower Taxes, Faster Property Transfers among the Most Popular Reforms in Starting a business Paying taxes Registering property Trading across borders Getting credit Dealing with licenses Enforcing contracts Closing a business Protecting investors Employing workers Number of positive reforms

10 Longest export delays in South Asia and Africa
Time to export (in days) 36 32 29 25 24 22 10 High income OECD Latin America & Caribbean East Asia & Pacific MENA Eastern Europe & Central Asian South Asia Sub Saharan Africa

11 Top 30 on the Ease of Doing Business — 2007
0.33 x 0.5 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

12 Slow License Approvals, High Warehouse Rents
Ease of getting a license rank 16 6 16 17 20 14 37 46 40 12 60 84 10 80 Average monthly rent (US$ per square meter)* Cost to rent a warehouse (US $ per square meter) Ranking on ease of getting a license 8 100 14 14 120 6 10 140 8 4 7 6 6 6 160 2 174 180 177 200 Copenhagen Paris Berlin Brussels Madrid Amsterdam Kiev Moscow *Excluding value added tax Source: DOEL Partners, Doing Business 2008

13 Countries ranked by ease of doing business, quintiles
Business Friendly Regulation Leads to More Registered Businesses and Start-ups Business Density (registered firms per adults) Business Entry (new firms in % of registered firms) Easiest Most difficult Easiest Most difficult Countries ranked by ease of doing business, quintiles Source: Doing Business database

14 More Reforms, Higher Equity Returns
3-year Shareholder Returns 90% 80% Egypt 70% Colombia 60% Brazil 50% Poland 40% India 30% Sri Lanka 20% 10% Venezuela 0% -6 -4 -2 2 4 6 8 10 12 Number of reforms,


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