Valeria Perotti
Program Manager, Doing Business
World Bank
Findings of Doing Business 2020
February 18, 2020
Development Economics │Global Indicators
I. About Doing Business
II. Where doing business is easiest
III. Where doing business improved the most
IV. Doing Business in Japan
What gets measured gets done
Doing Business origin: De Soto’s experiment
Measuring the time to get all permits required to open a business in Lima
289 days
1983
1983
1day
2002
Measuring & reporting create
pressure for improvements in
government efficiency
2
Business friendly regulations as measured by Doing Business are
associated with growth
Increased
business creation
Reduced
poverty headcount
More job
opportunities
Ease of
doing
business
Source: Djankov, Georgieva, Ramalho (2018); Divanbeigi, Ramalho (2015).
Increased annual
per capita growth
An improvement of 10 points in the overall ease of doing business score
is linked to an increase of around 0.5 new businesses per 1,000 adults
3
And higher levels of entrepreneurship
4 Source: Doing Business database; Global Entrepreneurship and Development Institute.
5
The areas of business regulation measured by Doing Business
Doing Business analyzes regulation that encourages efficiency
and supports freedom to do business:
Opening
a
business
Getting
a
location
Accessing
finance
Dealing
with
day-to-day
operations
Operating in
a secure
business
environment
Starting a
businessDealing with
construction
permits
Registering
property
Getting
creditProtecting
minority
investors
Paying
taxesTrading
across
borders
Contracting
with the
government
(coming soon)
Enforcing
contracts
Resolving
insolvency
Getting
electricity
What is the focus of the Doing Business indicators?
6
“Governments can foster market-
oriented development and growth
by creating rules that help
businesses create, hire and
expand. Removing barriers to
entrepreneurs generates better
jobs, more tax revenues and
higher incomes.”
World Bank Group President
David Malpass
Local
SMEs
Formal
sector
Largest
business
cities*
Standardized
scenarios
REGULATIONS
Note: The second largest business city is also measured in economies with
more than 100 million inhabitants as of 2013
Development Economics │Global Indicators
I. About Doing Business
II. Where doing business is easiest
III. Where doing business improved the most
IV. Doing Business in Japan
Top 50 performers on in 2018/19
Rank Economy Score
1 New Zealand 86.8
2 Singapore 86.2
3 Hong Kong SAR, China 85.3
4 Denmark 85.3
5 Korea, Rep. 84.0
6 United States 84.0
7 Georgia 83.7
8 United Kingdom 83.5
9 Norway 82.6
10 Sweden 82.0
11 Lithuania 81.6
12 Malaysia 81.5
13 Mauritius 81.5
14 Australia 81.2
15 Taiwan, China 80.9
16 United Arab Emirates 80.8
17 North Macedonia 80.7
18 Estonia 80.6
19 Latvia 80.3
20 Finland 80.2
21 Thailand 80.1
22 Germany 79.7
23 Canada 79.6
24 Ireland 79.6
25 Kazakhstan 79.6
Rank Economy Score
26 Iceland 79.0
27 Austria 78.7
28 Russian Federation 78.2
29 Japan 78.0
30 Spain 77.9
31 China 77.9
32 France 76.8
33 Turkey 76.8
34 Azerbaijan 76.7
35 Israel 76.7
36 Switzerland 76.6
37 Slovenia 76.5
38 Rwanda 76.5
39 Portugal 76.5
40 Poland 76.4
41 Czech Republic 76.3
42 Netherlands 76.1
43 Bahrain 76.0
44 Serbia 75.7
45 Slovak Republic 75.6
46 Belgium 75.0
47 Armenia 74.5
48 Moldova 74.4
49 Belarus 74.3
50 Montenegro 73.8
Source: Doing Business database. One of the top 10 improvers8
Unified collateral registry
Sound & transparent
business regulation
Electronic tax filling
Online business
incorporation
Top performing economies share common features of regulatory
efficiency and quality
9
More than half of the world’s economies made it easier to do
business in 2018/19
10
115ECONOMIES
MADE 294REFORMS
MAKING IT EASIER TO
DO BUSINESS
Source: Doing Business database.
Source: Doing Business database.
OECD
high-income
23
44%
0.7
Europe &
Central Asia
56
83%2.4
East Asia &
Pacific
33
48%1.3
Middle East &
North Africa
57
65%2.9South Asia
17
50%2.1
Sub-Saharan Africa
73
65%1.5
Latin America &
Caribbean
35
66%
1.1
11
Low-income and lower-middle-income economies carried out 136
reforms in 2018/19
Share of economies that reformed in a region %
Number of reforms per region
Average number of reforms per economy
ECA made the biggest improvement in business regulation over
time
0
5
10
15
20
25
30
Europe &Central Asia
Sub-SaharanAfrica
Middle East &North Africa
South Asia East Asia &Pacific
Latin America &Caribbean
High income:OECD
12
DB 2020
DB 2015-2019
DB 2010-2014
DB 2005-2009
Source: Doing Business database.
Average improvement in the ease
of doing business score
Development Economics │Global Indicators
I. About Doing Business
II. Where doing business is easiest
III. Where doing business improved the most
IV. Doing Business in Japan
Top improvers in 2018/19
Source: Doing Business database.
14
The 10 economies improving the most across three or more areas measured by Doing
Business in 2018/19
Women
can obtain an
ID card in the
same manner
as men
Saudi Arabia made starting a business easier 2018/19
Streamlined
registration
New
online one-
stop shop
MERAS
-7.5 days
procedures for men
-1.2 % cost
Source: Doing Business database; Entrepreneurship Database.
New LLC owners increased from
12,390 in 2017 to 16,677 in 2018
Among them, new female business
owners increased from 1,815 in
2017 to 2,435 in 2018
-7
15
for women- 8
Jordan made resolving insolvency easier in 2018/19
Jordan adopted Insolvency Law No. 21 of 2018
Introduced option of reorganization for commercial entities as an alternative to liquidation
Allowed debtor to commencereorganization
Stipulated specific rules on how creditors vote on reorganization plan
Established provisions allowing continuation of the debtor’s business during insolvency
Source: Doing Business database.16
Score increased by 9.4 points
-49 days
-4.3% of property
value
-2procedures
Togo made registering property easier in 2018/19
Streamlined & faster
New one-stop shop: Guichet Foncier Unique
Submission of transfer documents & payment of
registration fees: one step at the same office
Cheaper
Reduced registration fee from 4% of property
value to a fixed fee
Reduced fee for drafting & notarizing the sale
agreement
17 Source: Doing Business database.
Bahrain made enforcing contracts easier in 2018/19
Improved quality of the judicial administration by:
+4.5 points
on Bahrain’s quality
of the judicial
administration
index: from
5.5 to 9 points
(out of 18)
Creating a specialized commercial court
Establishing time standards for key court events
Allowing electronic service of the summons
18 Source: Doing Business database.
Tajikistan made getting credit easier in 2018/19
19
Launched a unified, modern & notice-based collateral registry
Introduced a
functional
secured
transactions
system
Broadened
the scope
of assets
that can be
used as
collateral
Allowed
general
description
of debts &
obligations
Granted
secured
creditors
absolute
priority
Provided time
limits & clear
grounds for
relief from
automatic
stays during
reorganization
Tajikistan ranks 11 on Getting Credit
Source: Doing Business database.
Pakistan made getting electricity easier 2018/19
Source: Doing Business database.20
Investments in
power generation
Installed capacity
3,316 MW in 2017
3,569 MW in 2018
Increased access
to electricity
59,508 new connections
in Karachi
in 2018
Online portals
for new connection
applications
Enforced time limits
for connection
services
Improved
power outages
calculation
Tariff changes
announced in
advance
0
Reliability of supply andtransparency of tariffs index
(0-8)
162
113
Total time to obtain a newconnection (days)
5
2018/19
2017/18
Kuwait made construction permitting easier in 2018/19
Source: Doing Business database.
Topographical survey
21
Water & electricity inspections
no longer
required
Public Authority of Industry
Fire Services Directorate
faster
clearance
Site take-over letter
Final report
submitted
online
Plans verified
via GIS
Municipality
automated
permits system
Public
agencies
integration
procedures
days
-3
-91
cost
-0.8%
China made paying taxes easier in 2018
✓ Implemented preferential
treatment on corporate
income tax rate for small and
thin-profit enterprises
✓ Reduced VAT rate from 17-
11% to 16-10%
✓ Enhanced the electronic filing
and payment system
✓ Reduced housing fund rate in
Shanghai
64.0
59.2
Total tax and contribution rate (% profits)
2017
2018
$
Source: Doing Business database.22
Decreased tax costs &
compliance time
23
India made resolving insolvency easier in 2018/19
Promoted reorganization in practice:
The Insolvency and Bankruptcy Code introduced
reorganization
Reorganization procedure enables the company to
continue operation as a going concern
Positive impact on time it takes to resolve a
reorganization procedure
Score went from 40.8 to 62.0
Source: Doing Business database.
India ranks 52 on Resolving Insolvency
Nigeria made trading across borders easier 2018/19
Source: Doing Business database.24
Improved information sharing between
government agencies & traders
Documents submitted & approved
electronically
Time to comply with documentaryrequriements (export & import)
Reformimpact
2018/19
-69
hours
Upgraded
customs
e-platform
Integration of
additional
agencies
Electronic
approval of
documents
E-payment
system
Customs, port & shipping fees
paid online
The remarkable influence of the World Bank’s business rankings
25
Prime Minister of Pakistan
Imran Khan tweets on
Doing Business…
“This is the best time to be in India. Many things
are rising while others are falling. Ease of doing
business, ease of living, FDI, forest cover,
patents, productivity, infrastructure are rising.”
- Prime Minister of India Narendra Modi
at ASEAN Summit 2019
“…the report described itself as a
cholesterol test…It has nonetheless
become hugely influential.”
Development Economics │Global Indicators
I. About Doing Business
II. Where doing business is easiest
III. Where doing business improved the most
IV. Doing Business in Japan
Japan’s performance compared to APEC in 2018/19
Rank Economy Score
1 New Zealand 86.8
2 Singapore 86.2
3 Hong Kong SAR, China 85.3
5 Korea, Rep. 84.0
6 United States 84.0
12 Malaysia 81.5
14 Australia 81.2
15 Taiwan, China 80.9
21 Thailand 80.1
23 Canada 79.6
28 Russian Federation 78.2
One of the top 10 improvers
Rank Economy Score
29 Japan 78.0
31 China 77.9
59 Chile 72.6
60 Mexico 72.4
66 Brunei Darussalam 70.1
70 Vietnam 69.8
73 Indonesia 69.6
76 Peru 68.7
95 Philippines 62.8
120 Papua New Guinea 59.8
27 Source: Doing Business database.
0 20 40 60 80 100
Getting credit
Protecting minority investors
Enforcing contracts
Registering property
Paying taxes
Dealing with construction permits
Trading across borders
Starting a business
Resolving insolvency
Getting electricity
Ease of doing business score (0-100)
Results on individual indicators
Doing Business in Japan – ease of doing business score
28
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
Japan scored
78.0 points on
the ease of
doing business
in 2018/19,
giving it a
ranking of 29
overall in Doing
Business 2020
Source: Doing Business database.
Japan’s rankings compared to OECD high-income
29 Source: Doing Business database.
Note: The rank next to each indicator shows Japan’s performance.
Starting a business (106)
Dealing with construction permits (18)
Getting electricity (14)
Registering property (43)
Getting credit (94)
Protecting minority investors (57)
Paying taxes (51)
Trading across borders (57)
Enforcing contracts (50)
Resolving insolvency (3)
Japan OECD high-income
Japan made paying taxes and getting electricity easier
in the past years
30
Japan made paying taxes easier by
disclosing the technical
specifications of the eTax platform
and allowing the upload of additional
information in comma separated value
(CSV) format, which reduced
compliance time for three major taxes
Doing Business 2016:
181.5 hours per year
128.5 hours per year
Japan made paying taxes less costly
by reducing the statutory rate for CIT
and rates for other taxes including
mandatory labor contributions
Doing Business 2017:
48.8% total tax and contribution rate
Doing Business 2018:
47.4% total tax and contribution rate
Osaka made getting electricity more
efficient by introducing online
application and eliminating
preliminary consultation
Doing Business 2016:
4 procedures
39 days
Doing Business 2017:
3 procedures
38 days
Source: Doing Business database.
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Gett
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www.doingbusiness.org
Development Economics │Global Indicators
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