A new report from the International Finance Corporation (IFC) and the World Bank titled- Doing Business 2012: Doing Business in a More Transparent World was released on 20 October 2011.
Doing Business 2012: Doing Business in a More Transparent World assessed regulations affecting domestic firms in 183 economies and ranked the economies in 10 areas of business regulation, such as starting a business, resolving insolvency, and trading across borders. Singapore topped the rankings on ease of doing business for the sixth straight year. Hong Kong SAR, China, held onto the second spot.
In the report, the World Bank and the International Finance Corporation mentioned that between June 2010 and May 2011, there were 245 business regulatory reforms worldwide, which was 13 per cent more reforms than in the previous year.
China, India, and the Russian Federation were among the 30 economies that improved the most over time. Singapore led on the overall ease of doing business, followed by Hong Kong, New Zealand, the U.S. and Denmark. The Republic of Korea was the new entrant to the top ten list that ranked countries according to their business environment.
India ranked low overall in the Doing Business assessment, with its rank improving marginally from 139 to 132 between the 2011 and 2012 reports. When India dismantled a strict licensing regime controlling business entry and production the benefits were greater in states that had more flexible labour regulations. The report noted that the progressive elimination of the licence raj led to a 6 per cent increase in new firm registrations in India, and resulted in highly productive firms entering the market larger increases in real output than less productive firms.
The report claimed that at a time when persistent unemployment and the need for job creation are in the headlines, governments around the world continue sought ways to improve the regulatory climate for domestic business. Small and medium businesses that benefit most from these improvements are the key engines for job creation in many parts of the world.
The report noted that Indonesia's ranking on regulatory environments for local entrepreneurs dropped three levels from 123 to 126. In spite of the fall, Indonesia is still ranked better than India (132) and the Philippines (136th).
Singapore and Hong Kong SAR, China, provide the friendliest regulatory environments for local entrepreneurs. Indonesia is left far behind other Southeast Asian countries such as Thailand (17), Malaysia (18) and Brunei Darussalam (86). Indonesia is even behind Vietnam (98) and Papua New Guinea (101).
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