1. Doing Business 2007 How to reform Sept 5 th 2006 Caralee McLiesh World Bank

2. Doing Business indicators Starting a business Dealing with licenses Employing workers Registering property Enforcing contracts Getting credit Trading across borders Protecting investors Paying taxes Closing a business 2006 2007 2008 www.doingbusiness.org Update of 2006 Add 20 countries 9 in Africa How to reform 50 case studies Update of 2007 Add Paying bribes Add Using infrastructure

3. Top 30 on the ease of doing business, 2006 16.Lithuania 17.Estonia 18.Thailand 19.Puerto Rico 20.Belgium 21.Germany 22.Netherlands 23.Korea 24.Latvia 25.Malaysia 26.Israel 27.St. Lucia 28.Chile 29.South Africa 30.Austria 1.Singapore 2.New Zealand 3.United States 4.Canada 5.Hong Kong, China 6.United Kingdom 7.Denmark 8.Australia 9.Norway 10.Ireland 11.Japan 12.Iceland 13.Sweden 14.Finland 15.Switzerland

4. Top reformers in 2005/06

5. East Asia & Pacific ranks 2 nd among regions Average Ease of Doing Business

6. …with wide variation Ease of Doing Business Rank

7. But the region lags in reforms Percentage of countries with at least one reform, 2005/06

8. Top reformers in EAP

9. Cambodia highlights Rank #143, compared with 142 last year Reforms include: –Setting time limits to cut delays in obtaining business licenses –Introduced risk based inspections and simplified processes at customs Opportunities for reform include: –Laws on credit (collateral) –Credit bureau –Ease of start-up

10. Indonesia highlights Ranked #135, compared with 131 last year Reforms include –Simplification of start-up procedures (151 to 97 days) –Possibility for electronic filing of taxes (still being implemented) Opportunities for reform include: –Further improvements to business start-up –Delays in courts –Rigidities in employment law

11. Lao PDR highlights Rank #159, up from 164 Reforms include: –Faster business start-up (198 to 163 days) and abolition of minimum capital –Easier access to credit with amendments to the secured transactions law, allowing businesses to pledge assets without giving up possession Opportunities for reform include: –Ease of trading –Ease of property registration

12. Mongolia highlights Ranked #45, down from #41 last year No reforms affecting the indicators in 2005/06 –Company law amendments have no impact –No reforms recorded last year either Opportunities for reform include: –Ease of trading –Credit laws (collateral)

13. Thailand highlights Ranked # 18, up one place from last year Reforms include: –Amendments to credit bureau act and merger of credit bureaus –Online procedures in start-up and trading (no effect on indicators) Opportunities for reform include: –Ease of trading –Complexity of tax payments

14. Timor-Leste highlights Ranked #174, same as last year No improvements to Doing Business indicators –Issuance of business licenses in the construction industry suspended for 6 months –Court reforms are continuing (no effect on the indicators) Opportunities for reform include –Streamlining business start-up –Establishing a property registration system –Speeding contract enforcement

15. Vietnam highlights Ranked #104, down from 98 Reforms include: –Faster business licensing –More flexible labor laws –New enterprise law (no impact on indicators) Opportunities for reform include: –Credit institutions (collateral laws and a credit bureau) –Further improvements to business start-up –Complex tax rules

16. Reform payoff: creating jobs Countries ranked by ease of doing business, quintiles HigherLower Unemployment (%) Note: relationship is statistically significant at the 1% level and remains significant when controlling for income per capita