1. Financial & Private Sector Development Makati City, December 08, 2010 Janamitra Devan Vice President Financial and Private Sector Development The World Bank and International Finance Corporation Tanya Lat Project Manager AIM Policy Center

2. Financial & Private Sector Development What does Doing Business measure? Doing Business indicators: Focus on regulations relevant to the life cycle of a small to medium-sized domestic business in the largest business city Are built on standardized case scenarios The objective: efficient regulations, accessible to all, and simple to implement DO NOT measure all aspects of the business environment such as macroeconomic stability, corruption, level of labor skills, proximity to markets, or of regulation specific to foreign investment or financial markets. 2

3. Financial & Private Sector Development  1Footnote goes here (add tab after number for proper alignment). 10 pt Arial regular.  Source: Place here. 10 pt Arial regular. Doing Business indicators – 11 areas of business regulation (9 included in the ranking) Property rights Investor protection Access to credit Entry Administrative burden Flexibility in hiring Recovery rate Reallocation of assets

4. Financial & Private Sector Development Top 30 economies on the ease of Doing Business 2009/10 4 1. Singapore16. Korea, Rep. 2. Hong Kong SAR, China17. Estonia 3. New Zealand18. Japan 4. United Kingdom19. Thailand 5. United States20. Mauritius 6. Denmark21. Malaysia 7. Canada22. Germany 8. Norway23. Lithuania 9. Ireland24. Latvia 10. Australia25. Belgium 11. Saudi Arabia26. France 12. Georgia27. Switzerland 13. Finland28. Bahrain 14. Sweden29. Israel 15. Iceland30. Netherlands 148. Philippines

5. Financial & Private Sector Development 61% 63% 59% 47% 67% OECD high Income Eastern Europe and Central Asia Sub-Saharan Africa Middle East and North Africa Latin America and Caribbean South Asia East Asia and Pacific Economies in East Asia & the Pacific were among the most active in making it easier for local firms to do business in 2009/10 5 84% 75% Percentage of countries with at least one positive improvement in 2009/10

6. Financial & Private Sector Development Closer to an apples-to-apples comparison Expands Doing Business beyond the largest business city Captures local differences in regulations or enforcement Gives specific locations an opportunity to tell their story and provides a tool for locations to compete globally Provides information on good practices within the same country that can be easily replicated Why expand Doing Business to the subnational level?

7. Financial & Private Sector Development Doing Business in the Philippines 2011 covers 25 cities Doing Business in the Philippines 2011 updates 2008 data and expands the analysis to 25 cities. The study measures national and local regulations across the country in 3 areas of the life of a business: 1. starting a business 2. dealing with construction permits 3. registering property Second in a series of reports undertaken in partnership with the Asian Institute of Management Policy Center Data collected with the help of more than 500 private sector contributors and public sector officials Luzon: Batangas City, Caloocan, Las Piñas, Makati, Malabon, Mandaluyong, Manila, Marikina, Muntinlupa, Navotas, Parañaque, Pasay, Pasig, Quezon City, San Juan, Taguig, Valenzuela Visayas: Cebu City, Iloilo City, Lapu-Lapu, Mandaue Mindanao: Cagayan de Oro, Davao City, General Santos, Zamboanga City

8. Financial & Private Sector Development 65% of cities benchmarked in 2008 and again in 2010 have improved in at least one area measured Computerization and multiple service providers make it easier to do business, lower transaction costs and increase transparency across the Philippines High number of procedures continues to be a challenge for entrepreneurs Wide variation in local business regulation across the country points to ample room for further business reforms National level business reforms needed for more results Cities can learn from the existing good practices of their peers and become more competitive nationally and globally Key findings

9. Financial & Private Sector Development 9 19 business reforms since 2008 made it easier to do business in the Philippines City or departmental reformsImplementation of national reforms Starting a business Dealing with construction permits Registering property Starting a business Dealing with construction permits Registering property Caloocan Cebu City Davao City Las Piñas Makati Malabon Mandaluyong Mandaue Manila Marikina Muntinlupa Navotas Parañaque Pasay Quezon City San Juan Taguig Valenzuela

10. Financial & Private Sector Development Manila made starting a business easier in 2009/10 thanks to local level reforms 1 procedure cut Time cut from 53 to 38 days Manila introduced a one-stop shop for the municipal license and cut the inspection by the mayor’s office, reducing start-up time by 15 days

11. Financial & Private Sector Development Easier business entry means more new firms: evidence from empirical research Mexico Impact of the reduction of registration procedures through the introduction of One-Stop Shops and the elimination of federally required procedures  Increase in the number of new firms of about 6%  Increase in employment by 2.6%  Consumer Price Index decrease by 1% due to competitive pressures of new entrants Colombia Impact of the introduction of One-Stop Shops in 6 cities:  Increase of 5.2% in the number of new firms India Impact of the elimination of License Raj in 16 states over 64 industries:  Increase in the number of new firms by 6% Why business regulation reform matters

12. Financial & Private Sector Development 12 Too many requirements to start a business

13. Financial & Private Sector Development 13 Wide variation in time and cost to start a business

14. Financial & Private Sector Development 9 of 20 cities benchmarked in 2008 made it easier to start a business

15. Financial & Private Sector Development Majority of permit requirements during pre- and post-construction phases

16. Financial & Private Sector Development 16 90% of construction permit cost relates to electricity connection

17. Financial & Private Sector Development Variation in time and cost to register property

18. Financial & Private Sector Development 18 6 of 20 cities benchmarked in 2008 made it easier to register property

19. Financial & Private Sector Development Philippine cities have good practices… Indicator Global Rank (183 economies) Days to deal with construction permits Zamboanga City (46 days) 5 Days to register property Mandaluyong (22 days) 49 Cost to register property Mandaue (3.35% of property value) 64 Cost to deal with construction permits Davao City (94.24% of income per capita) 67

20. Financial & Private Sector Development …but there is room for improvement Indicator Global Rank Range (183 economies) Number of procedures to register property 8-9 procedures 137-159 Number of procedures to deal with construction permits 25-36 procedures 155-178 Number of procedures to start a business 15-22 procedures 175-183

21. Financial & Private Sector Development 21 Thank you www.doingbusiness.org/philippines

22. Financial & Private Sector Development Annex slides

23. Financial & Private Sector Development Davao, General Santos and Valenzuela each leads one area measured by Doing Business