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World Bank released Doing Business 2015: Going Beyond Efficiency Report

Oct 30, 2014 17:50 IST

World Bank on 29 October 2014 released the Doing Business 2015: Going Beyond Efficiency Report. The report is 12th in a series of annual reports published by World Bank measuring the regulations that enhance business activity and those that constrain it.
In the report, India with a score of 53.97 points has been ranked 142 among the 189 countries. In 2014 report, India with a score of 52.78 was ranked 140.
Singapore with 88.27 points occupies the top position in the ease of doing business followed by New Zealand, Hong Kong, Denmark and South Korea respectively. The USA and UK has been ranked seventh and eighth respectively.
In the Doing Business, the lowest five economies are Chad (185), South Sudan (186), Central African Republic (187), Libya (188) and Eritrea (189).

Main findings of the Doing Business Report 2015

•    The list of top 20 economies in the 2015 report remains the same as in 2014 report except 3 economies that have entered the top 20 list. These are Estonia (17), Germany (14) and Switzerland (20).
•    Economies in the top 20 continued to improve their business regulatory environment in 2013-14. These economies performed well not only on the Doing Business Indicators but also in other international data sets capturing dimensions of competitiveness.
•    The difference between best score and worst score is substantial in East Asia and the Pacific, the Middle East and North Africa and Sub-Saharan Africa.     

•    The report finds that entrepreneurs in 123 economies saw improvements in their local regulatory framework in 2014.
•    Between June 2013 and June 2014, 230 business reforms across the world were documented with 145 reforms aimed at reducing the complexity and cost of complying with business regulation, and 85 reforms aimed at strengthening legal institutions.
•    Sub-Saharan Africa with 75 business reforms out of 230 worldwide accounted for the largest number of regulatory reforms and accounted for 5 of the 10 top improvers in 2013-14. More than 70 percent of its economies carried out at least one such reform.
•    21 economies, including 6 in Sub-Saharan Africa and 6 in OECD high income group, implemented 3 or more reforms reducing burdensome bureaucracy or improving legal and regulatory framework.
•    Globally more than 80 percent of the economies covered by Doing Business Report 2015 had an improvement in their distance to frontier score. This means, not it is easier to do business in most parts of the world.
•    Europe and Central Asia had the largest share of economies implementing at least one regulatory reform, with some 85 percent doing so. The next region is Sub-Saharan Africa which has the second largest average improvement in distance to frontier scores.
•    Latin America and the Carribean and South Asia region remains the 2 region with the smallest share of economies implementing regulatory reforms.
•    Tajikistan (166), Benin (151), Togo (149), Côte d’Ivoire (147), Senegal (161), Trinidad and Tobago (79), the Democratic Republic of Congo (184), Azerbaijan (80), Ireland (13) and the United Arab Emirates (22) are among the economies that improved the most in 2013-2014 in areas tracked by Doing Business. Together, these 10 top improvers implemented 40 regulatory reforms making it easier to do business.
•    Among the 11 economies, the United States has the highest number of differences between the largest and second largest business cities.
What’s New to Doing Business 2015 Report?
•    For the first time this year, Doing Business Report collected data for largest and the second largest city in 11 economies with more than 100 million inhabitants. The economies are: Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation, and the United States. The added city enables a sub-national comparison and benchmarking against other large cities.
•    The report this year expands the data in three of the 10 topics covered, with further plans to expand on five topics in next year’s report.
•    The Doing Business rankings are now based on a distance to the frontier measure. Each economy from the 189 economies measured is evaluated based on how close their business regulations are to the best global practices. A higher score indicates a more efficient business environment and stronger legal institutions.

India and Doing Business Report 2015
•  According to the report, India made starting a business easier by considerably reducing the registration fees, but also made it difficult by introducing a requirement to file a declaration before the commencement of business operation. These changes apply to both Mumbai and Delhi.
•  Also, the utility in Mumbai was made less costly by reducing the security deposit for a new connection.
•  India strengthened minority investor’s protections by requiring greater disclosure of conflicts of interest by board members, increasing the remedies available in case of prejudicial related-party transactions and introducing additional safeguards for shareholders of privately held companies. The reform applies to both Mumbai and Delhi.
•  Mumbai, the largest city of India, has the largest number of paid annual leaves with 21 days compared to Delhi, the second largest city, with 15 days.
•  India is among the 6 economies out of 11 economies with 100 million population where there is a huge difference in the minimum wage levels between the largest and the second largest city.
•  Among the 11 economies with 100 million population, India along with Indonesia implemented 3 reforms in 2013-14 to make doing business easier.
•  Among 189 economies worldwide, India follows the largest share of the good practices.

 

India’s rank in different variables of Doing Business Report 2015

Variables of Doing Business

Rank/Score

Starting a Business

158

Dealing with Construction Permits

184

Getting Electricity

137

India and BRICS Countries
Among the BRICS Countries, India ranks lowest in Doing Business whereas South Africa leads the table with 43rd rank. The ranks of other BRICS nations are Russia Federation (62), China (90) and Brazil (120).
India and SAARC Countries
Among the SAARC Countries, India is at bottom third with Sri Lanka leading the table at 99. The ranks of other SAARC countries are Nepal (108), Maldives (116) Bhutan (125), Pakistan (128), India (142), Bangladesh (173) and Afghanistan (183).

Is this article important for exams ? Yes35 People Agreed

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