Ease of Doing Business Ranking
Autor: tadeo • June 6, 2017 • Essay • 424 Words (2 Pages) • 457 Views
Ease of Doing Business Ranking
The Ease of Doing Business is a ranking created by The World Bank to measure aspects of business regulation affecting domestic small and medium-size firms. It covers: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency.[1]
According to their website, the rankings are determined by “sorting the aggregate distance to frontier scores on 10 topics, each consisting of several indicators, giving equal weight to each topic”. They use a scale from 0 to 100 of distance to frontier, where 0 represents the lowest performance and 100 represent the frontier.[2]
Macedonia is the highest ranked, and Bosnia and Herzegovina is the lowest ranked in the CEE region due to several factors. Starting a business in Macedonia, for example, is free of charge (online registration) and it only takes 2 days while in Bosnia and Herzegovina takes 65 days. Registering Property takes 30 days in Macedonia, while in Bosnia and Herzegovina takes 24 days, even though Macedonia is higher ranked (48) than Bosnia and Herzegovina (99) due to the “Quality of land administration index”, that shows this ranking does not only take into consideration the simplification process as number of days, procedures and costs, it also uses other indicators to be objective during the study of the countries.
Despite the fact that Macedonia is ranked number 10 worldwide, it has one of the highest unemployment rates of the region (brain drain of qualify workers): it also has less GDP per capita than Bulgaria, Croatia, Serbia, Romania, Moldova, Montenegro and Slovenia[3]. If you take into consideration the Ease of Doing Business ranking, Macedonia is an excellent place to establish a company even better than Austria, Germany or Canada, but it does not measure other general conditions such as quality of infrastructure, inflation, criminality, etc.
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