DOING BUSINESS 2019 Overview ƒƒ Doing Business captured a record 314 regulatory reforms between June 2, An economy cannot thrive without a healthy private sector. When local 2017, and May 1, 2018. Worldwide, businesses flourish, they create jobs and generate income that can be 128 economies introduced substantial regulatory improvements making it easier spent and invested domestically. Any rational government that cares to do business in all areas measured by about the economic well-being and advancement of its constituency pays Doing Business. special attention to laws and regulations affecting local small and medium- size enterprises (SMEs). Effective business regulation affords micro ƒƒ The economies with the most notable and small firms the opportunity to grow, innovate and, when applicable, improvement in Doing Business 2019 are move from the informal to the formal sector of an economy. Like its 15 Afghanistan, Djibouti, China, Azerbaijan, predecessors, Doing Business 2019 continues to enable regulators to assess India, Togo, Kenya, Côte d’Ivoire, Turkey and Rwanda. and benchmark their domestic business regulatory environments. ƒƒ One-third of all business regulatory reforms recorded by Doing Business 2019 were in the Doing Business advocates for both regula- minority investors, paying taxes, economies of Sub-Saharan Africa. With a tory quality and efficiency. It is important engaging in international trade, enforcing total of 107 reforms, Sub-Saharan Africa to have effective rules in place that are contracts and resolving insolvency. once again has a record number this year. easy to follow and understand. To realize Doing Business collects and publishes ƒƒ The BRIC economies—Brazil, the Russian economic gains, reduce corruption and data on labor market regulation with a Federation, India and China—introduced a encourage SMEs to flourish, unnecessary focus on the flexibility of employment total of 21 reforms, with getting electricity red tape should be eliminated. However, regulation as well as several aspects and trading across borders the most specific safeguards must be put in of job quality. However, this regulatory common areas of improvement. place to ensure high-quality business area does not constitute part of the ease regulatory processes; efficiency alone of doing business ranking (figure 1.1). ƒƒ The 10 top economies in the ease of doing is not enough for regulation to func- For more details on the Doing Business business ranking share common features of regulatory efficiency and quality, including tion well. What use is it when one can indicators, see the data notes at http:// mandatory inspections during construction, transfer property in just a few days and www.doingbusiness.org. automated tools used by distribution at a low cost, but the property registry utilities to restore service during power contains unreliable information with Each of the measured business regula- outages, strong safeguards available to incomplete geographic coverage? Doing tory areas is important to nascent and creditors in insolvency proceedings and Business exposes cases with evident existing entrepreneurs. However, as automated specialized commercial courts. discrepancies between regulatory quality Doing Business data show, SME owners ƒƒ Training opportunities for service providers and efficiency, signaling to regulators face drastically different realities across and users are positively associated with what needs to be reformed. economies as they set up and operate the ease of doing business score. Similarly, their businesses. An entrepreneur in increased public-private communication on Doing Business 2019 measures the Uganda, for example, will spend nearly legislative changes and processes affecting processes for business incorporation, a month and undertake 13 procedures SMEs are associated with more reforms getting a building permit, obtaining an to set up a new company. The entre- and better performance on the Doing electricity connection, transferring prop- preneur will then be required to manage Business indicators. erty, getting access to credit, protecting another 18 interactions with different 2 DOING BUSINESS 2019 FIGURE 1.1  What is measured in Doing Business? Starting a Getting a business location Labor market regulation Dealing with Starting a construction business permits Getting Resolving electricity insolvency Registering property Enforcing Operating in a contracts Getting credit secure business Protecting Accessing Paying environment taxes minority finance Trading across investors borders Dealing with day-to-day operations Source: Doing Business database. Note: Labor market regulation is not included in the ease of doing business ranking. agencies and wait an additional four Doing Business does not claim to cover small and medium-size companies and months to obtain a building permit. all the areas pertinent to private sector national competitiveness. Evidence from Once the construction of the warehouse development and growth. The report has economic literature corroborates the is completed, the entrepreneur will need a set of clear limitations; Doing Business economic relevance and importance of to wait another two months and cash data alone are not sufficient to assess the areas measured by Doing Business. In out 7,513.6% of income per capita to the overall competitiveness or foreign the case of the starting a business indi- obtain a connection to the electrical investment prospects of an economy. cator set alone, more than 300 research grid. In contrast, a Danish entrepreneur Doing Business does not assess market articles have been published in the can expect to be able to register a new size, the soundness and depth of finan- top 100 academic journals since 2003 business in just 3.5 days, complete all cial markets, macroeconomic conditions, assessing how the regulatory environ- required legal procedures to build a ware- foreign investment, security or political ment for entry affects a wide range of house through seven steps in slightly stability. However, the Doing Business indi- economic outcomes such as productivity, over two months and secure a reliable cators do offer insights for policy makers growth, employment and informality. electricity connection for about 100% to identify areas for reform and improve Recent research shows the positive of local income per capita. Differences the local business environment. For effects of improved business regulation. in regulatory and institutional quality more information on what is measured Fewer procedures and lower levels of can affect how many new businesses and what is not, see the chapter About minimum capital, for example, are posi- are created and the dynamism of the Doing Business. tively and significantly associated with private sector, which generates jobs and the process of starting a business. Where economic opportunities. In Denmark procedures are more complex or unclear, the average number of newly registered WHAT ARE THE BENEFITS the likelihood of corruption is higher.3 companies is eight per 1,000 workers OF IMPROVED BUSINESS Another study discusses the benefits to per year, whereas in Uganda this figure REGULATION? companies of formal registration, such is less than one new company per 1,000 as greater access to new equipment workers per year.1 Many factors explain Doing Business includes 11 indicator sets and a larger scale of operations, which this difference, including the level of that measure aspects of business regu- can lead to increased competitiveness business regulation.2 lation which are important to domestic and productivity.4 OVERVIEW 3 In the context of construction permit- reaping the growth benefits of reform.9 methodology, including firm entry and ting, simplicity and transparency are Ample literature on the importance of labor market regulation, trade regula- key in allowing businesses to expand property rights finds a strong association tions and cost and tax regulations. Doing and build new and safe infrastruc- between investment, access to finance, Business 2016 also presented an extended ture. Research shows that regulatory productivity and economic growth.10 review of the literature published in 70 top burdens often pose substantial obstacles academic law journals focusing on four for investors. Discrepancies among Another area measured by Doing sets of indicators: enforcing contracts, existing laws, for example, can lead to Business is the protection of minority getting credit (legal rights), protecting unnecessary and even contradictory investors. Greater protection helps minority investors and resolving insol- compliance requirements.5 Furthermore, foster trust and confidence and, in turn, vency.17 For further research insights, lengthy processing times for required spurs greater access to finance for entre- updated annually, see the chapter About approvals—as is the case in Ghana—can preneurs.11 The indicator set focuses Doing Business and the Doing Business drive up costs and spur the development on how policy makers mitigate the risk website at http:/ /www.doingbusiness of an informal construction sector, where that corporate executives, directors and .org/research. falsified construction permits result in majority shareholders will use their posi- unsafe infrastructure.6 tion to advance their own interests at the expense of the company and other WHERE IS BUSINESS Electricity is a necessity for any business shareholders. Clear rules, robust rights REGULATION BETTER? to function properly and expand. It is also and increased transparency are some an important element in the competitive- of the regulatory instruments at their Doing Business benchmarks aspects ness and strengthening of human capital disposal. Corporate governance is a key of business regulation and practice in an economy. Research data indicate determinant of investment efficiency,12 using specific case studies with stan- that higher electricity costs tend to while shareholders’ ability to sue and dardized assumptions. Based on an have an adverse impact on businesses. hold directors accountable are essential economy’s performance in each of As prices rise, firms shift their focus checks and balances.13 the 11 measured areas, the report to less electricity-intensive production scores the efficiency and quality of the processes, resulting in reduced output Finally, the regulation of labor markets business environment. This approach and productivity.7 Equally important is is critical as policy makers work to facilitates the comparison of regula- the reliability of a power connection. create more and better jobs for their tion and practice across economies Recent research finds that power outages citizens. Labor regulation is also an area and allows for changes to be tracked and deficient power infrastructure in of interest to researchers as they strive over time. The ease of doing business Sub-Saharan Africa had a measurable to assess the optimal balance between score (box 1.1) serves as the basis for negative impact on economic growth adequate worker protections and labor ranking economies on their business over the period 1995−2007.8 market efficiency. In India, for example, environment: to obtain the ranking, research shows that when faced with economies are sorted by their scores. Similarly, clearly defined regulation restrictive labor laws, firms choose to The ease of doing business score shows and equal access to property rights are circumvent such legislation by hiring an economy’s absolute position to the essential for enabling businesses to workers indirectly through contrac- best regulatory practice, while the ease expand their operations. If governments tors, especially in times of economic of doing business ranking is an indica- do not put in place adequate land owner- uncertainty.14 Another study on foreign tion of an economy’s position relative ship protections and leave investors open investment and the organization of to that of other economies. to land disputes or property seizures, global firms suggests that firms consider stakeholders would be disinclined to put the strength of worker bargaining power The economies that rank highest in money into land and property develop- when making sourcing decisions.15 the ease of doing business (table 1.1) ment projects. A recent study exploring are those that have consistently well- whether political institutions have an Doing Business 2014 presented a designed business regulation or whose impact on the effectiveness of economic synthesis of the fast-growing literature regulatory environments have thrived reforms in promoting growth finds that published in top-ranking economic jour- thanks to comprehensive reform over financial and trade reforms are more nals using Doing Business data for analysis the years. The top three economies effective in developing economies with or motivation.16 The chapter reviews the this year—New Zealand, Singapore sound property rights. This evidence different estimation methods used in and Denmark—exemplify a business- suggests that sufficiently developed economic analysis and summarizes the friendly environment. Meanwhile, property rights may be a precondition for recent research by area of study and Mauritius, which joins the group of 4 DOING BUSINESS 2019 BOX 1.1  What is the ease of doing business score? This year the name of the Doing Business distance to frontier score has been changed to “ease of doing business score” to better reflect the main idea of the measure—a score indicating an economy’s position to the best regulatory practice. Nevertheless, the process for calculating the score remains the same. The score combines measures with different units such as time to start a company or procedures to transfer a property. The score captures the gap between an economy’s current performance and a measure of best regulatory practice set in Doing Business 2015 across the entire sample of the same 41 indicators for 10 Doing Business indicator sets used in previous years. For example, according to the Doing Business database, across all economies and over time, the least time needed to start a business is 0.5 days, while in the worst 5% of cases it takes more than 100 days. Half a day is, therefore, considered the best performance, while 100 days is the worst. Higher scores show absolute better ease of doing business (the best score is set at 100), while lower scores show absolute poorer ease of doing business (the worst performance is set at 0). The percentage point scores of an economy on different indicators can be averaged together to obtain an aggregate score. For more details, see the chapter on the ease of doing business score and ease of doing business ranking available at http:// www.doingbusiness.org. top 20 economies this year (the only and the Middle East and North Africa. insolvency proceedings. Court automa- Sub-Saharan African economy to do Except for low-income economies, all tion is prevalent, and judgments are so), has reformed its business environ- income groups are represented. The enforced twice as fast on average (95.6 ment methodically over time. Indeed, regional diversity and varying income days) than in the remaining economies over the past decade Mauritius has levels among the top 20 economies (200 days). These economies also have reformed more than once in almost underscore the point that any economy strong disclosure requirements in place all areas measured by Doing Business.18 can make it to the top, as long as it has to prevent the misuse of corporate Following seven reforms in the area of few bureaucratic hurdles and strong assets by directors for personal gain. property registration captured by Doing laws and regulation. The efficiency and Most mandate that a shareholder must Business since 2005, for example, the quality of regulation are what matter immediately disclose transactions—as time needed to register property has most for a good performance in the ease well as any conflicts of interest— decreased more than 12 times; the time of doing business ranking. to other shareholders. To date, no needed for business incorporation has economy has reached the best regu- decreased almost 10 times as a result The top 20 economies share a number latory performance on all indicators; of four reforms in starting a business.19 of international good practices. In the every economy can progress further by area of starting a business, 13 of these learning from the experience of others. A continuous and focused reform economies have at least one procedure agenda keeps an economy competi- that can be completed online in 0.5 More trends emerge from the list of tive and vigilant, as others also keep days. The electricity distribution utilities the top 50 economies. Regionally, improving. Two economies that enter in all but one of the top 20 economies almost 60% of the top 50 economies the top 20 this year—the United Arab use automated tools, allowing for faster, are from the OECD high-income group, Emirates and Malaysia—have main- more efficient and more secure restora- followed by Europe and Central Asia tained such a reform momentum. The tion of service during power outages. (24%) and East Asia and the Pacific United Arab Emirates is the highest- In the areas of construction and land (12%). South Asia and Latin America ranking economy in the Middle East administration, in all top 20 economies and the Caribbean are the two regions and North Africa region, with reforms mandatory inspections are always done absent from the top 50 ranking. Upper- captured in four areas. Six reforms in practice during the construction of middle-income economies represent in Malaysia were measured by Doing a warehouse, and the majority have almost 26% of the top 50 economies. Business, resulting in the second highest comprehensive geographic coverage. Georgia, Kosovo and Moldova are the regional improvement in the ease of The quality of legal infrastructure and three lower-middle-income economies doing business score. the strength of legal institutions is on the list and Rwanda is the only low- also robust. In all top 20 economies, income economy. There is, however, a Twelve of the top 20 economies are for example, the insolvency framework large variation between regions’ regula- from the OECD high-income group; four stipulates that a creditor has the right tory efficiency and regulatory quality are from East Asia and the Pacific, two to object to decisions accepting or (figure 1.2). While four of the 10 top are from Europe and Central Asia and rejecting creditors’ claims, providing improvers in Doing Business 2019 are one each is from Sub-Saharan Africa strong safeguards to creditors in Sub-Saharan African economies, the OVERVIEW 5 TABLE 1.1  Ease of doing business ranking EODB EODB EODB EODB score EODB score EODB score Rank Economy score change Rank Economy score change Rank Economy score change 1 New Zealand 86.59 0.00 65 Colombia 69.24 +0.20 129 Barbados 56.78 0.00 2 Singapore 85.24 +0.27 66 Luxembourg 69.01 0.00 130 St. Vincent and the Grenadines 56.35 +0.01 3 Denmark 84.64 +0.59 67 Costa Rica 68.89 -0.47 131 Cabo Verde 55.95 +0.02 4 Hong Kong SAR, China 84.22 +0.04 68 Peru 68.83 +0.56 132 Nicaragua 55.64 +0.37 5 Korea, Rep. 84.14 -0.01 69 Vietnam 68.36 +1.59 133 Palau 55.59 +0.01 6 Georgia 83.28 +0.48 70 Kyrgyz Republic 68.33 +2.57 134 Guyana 55.57 -1.21 7 Norway 82.95 +0.25 71 Ukraine 68.25 +0.94 135 Mozambique 55.53 +1.78 8 United States 82.75 -0.01 72 Greece 68.08 -0.12 136 Pakistan 55.31 +2.53 9 United Kingdom 82.65 +0.33 73 Indonesia 67.96 +1.42 137 Togo 55.20 +6.32 10 Macedonia, FYR 81.55 +0.32 74 Mongolia 67.74 +0.27 138 Cambodia 54.80 +0.41 11 United Arab Emirates 81.28 +2.37 75 Jamaica 67.47 +0.55 139 Maldives 54.43 +0.10 12 Sweden 81.27 0.00 76 Uzbekistan 67.40 +1.08 140 St. Kitts and Nevis 54.36 +0.01 13 Taiwan, China 80.90 +0.24 77 India 67.23 +6.63 141 Senegal 54.15 +0.37 14 Lithuania 80.83 +0.29 78 Oman 67.19 -0.02 142 Lebanon 54.04 +0.07 15 Malaysia 80.60 +2.57 79 Panama 66.12 +0.41 143 Niger 53.72 +1.24 16 Estonia 80.50 +0.01 80 Tunisia 66.11 +1.51 144 Tanzania 53.63 +0.34 17 Finland 80.35 +0.05 81 Bhutan 66.08 +0.20 145 Mali 53.50 +0.23 18 Australia 80.13 -0.01 82 South Africa 66.03 +1.37 146 Nigeria 52.89 +1.37 19 Latvia 79.59 +0.33 83 Qatar 65.89 +0.64 147 Grenada 52.71 +0.07 20 Mauritius 79.58 +1.29 84 Malta 65.43 +0.28 148 Mauritania 51.99 +0.92 21 Iceland 79.35 +0.05 85 El Salvador 65.41 +0.21 149 Gambia, The 51.72 +0.23 22 Canada 79.26 +0.38 86 Botswana 65.40 +0.46 150 Marshall Islands 51.62 +0.01 23 Ireland 78.91 -0.51 87 Zambia 65.08 +1.48 151 Burkina Faso 51.57 +0.12 24 Germany 78.90 0.00 88 San Marino 64.74 +2.27 152 Guinea 51.51 +2.02 25 Azerbaijan 78.64 +7.10 89 Bosnia and Herzegovina 63.82 +0.27 153 Benin 51.42 +0.13 26 Austria 78.57 +0.03 90 Samoa 63.77 +0.01 154 Lao PDR 51.26 +0.11 27 Thailand 78.45 +1.06 91 Tonga 63.59 +0.03 155 Zimbabwe 50.44 +1.92 28 Kazakhstan 77.89 +0.73 92 Saudi Arabia 63.50 +1.62 156 Bolivia 50.32 +0.15 29 Rwanda 77.88 +4.15 93 St. Lucia 63.02 +0.06 157 Algeria 49.65 +2.06 30 Spain 77.68 +0.07 94 Vanuatu 62.87 -0.21 158 Kiribati 49.07 +0.33 31 Russian Federation 77.37 +0.61 95 Uruguay 62.60 +0.34 159 Ethiopia 49.06 +0.91 32 France 77.29 +0.99 96 Seychelles 62.41 -0.01 160 Micronesia, Fed. Sts. 48.99 0.00 33 Poland 76.95 -0.36 97 Kuwait 62.20 +0.75 161 Madagascar 48.89 +0.71 34 Portugal 76.55 -0.07 98 Guatemala 62.17 +1.01 162 Sudan 48.84 +3.75 35 Czech Republic 76.10 +0.05 99 Djibouti 62.02 +8.87 163 Sierra Leone 48.74 +0.15 36 Netherlands 76.04 +0.01 100 Sri Lanka 61.22 +1.80 164 Comoros 48.66 +0.14 37 Belarus 75.77 +0.72 101 Fiji 61.15 +0.04 165 Suriname 48.05 -0.05 38 Switzerland 75.69 +0.01 102 Dominican Republic 61.12 +0.55 166 Cameroon 47.78 +0.83 39 Japan 75.65 +0.05 103 Dominica 61.07 +0.04 167 Afghanistan 47.77 +10.64 40 Slovenia 75.61 +0.02 104 Jordan 60.98 +1.42 168 Burundi 47.41 +0.73 41 Armenia 75.37 +2.06 105 Trinidad and Tobago 60.81 -0.12 169 Gabon 45.58 -0.23 42 Slovak Republic 75.17 +0.29 106 Lesotho 60.60 +0.19 170 São Tomé and Príncipe 45.14 +0.30 43 Turkey 74.33 +4.34 107 Namibia 60.53 +0.24 171 Iraq 44.72 +0.04 44 Kosovo 74.15 +0.44 108 Papua New Guinea 60.12 +1.19 171 Myanmar 44.72 +0.51 45 Belgium 73.95 +2.24 109 Brazil 60.01 +2.96 173 Angola 43.86 +2.16 46 China 73.64 +8.64 110 Nepal 59.63 -0.32 174 Liberia 43.51 -0.04 47 Moldova 73.54 +0.38 111 Malawi 59.59 +0.84 175 Guinea-Bissau 42.85 +0.27 48 Serbia 73.49 +0.17 112 Antigua and Barbuda 59.48 +0.06 176 Bangladesh 41.97 +0.91 49 Israel 73.23 +0.64 113 Paraguay 59.40 +0.41 177 Equatorial Guinea 41.94 +0.28 50 Montenegro 72.73 +0.20 114 Ghana 59.22 +2.06 178 Timor-Leste 41.60 +1.71 51 Italy 72.56 -0.15 115 Solomon Islands 59.17 +0.33 179 Syrian Arab Republic 41.57 +0.02 52 Romania 72.30 -0.53 116 West Bank and Gaza 59.11 +0.39 180 Congo, Rep. 39.83 +0.36 53 Hungary 72.28 +0.34 117 Eswatini 58.95 +0.13 181 Chad 39.36 +1.15 54 Mexico 72.09 -0.18 118 Bahamas, The 58.90 +0.77 182 Haiti 38.52 +0.11 55 Brunei Darussalam 72.03 +1.85 119 Argentina 58.80 +0.87 183 Central African Republic 36.90 +2.67 56 Chile 71.81 +0.37 120 Egypt, Arab Rep. 58.56 +2.74 184 Congo, Dem. Rep. 36.85 +0.67 57 Cyprus 71.71 +0.44 121 Honduras 58.22 +0.09 185 South Sudan 35.34 +2.04 58 Croatia 71.40 +0.34 122 Côte d'Ivoire 58.00 +4.94 186 Libya 33.44 +0.23 59 Bulgaria 71.24 +0.11 123 Ecuador 57.94 +0.12 187 Yemen, Rep. 32.41 -0.59 60 Morocco 71.02 +2.46 124 Philippines 57.68 +1.36 188 Venezuela, RB 30.61 -0.24 61 Kenya 70.31 +5.25 125 Belize 57.13 +0.02 189 Eritrea 23.07 +0.13 62 Bahrain 69.85 +1.82 126 Tajikistan 57.11 +0.08 190 Somalia 20.04 +0.06 63 Albania 69.51 +0.50 127 Uganda 57.06 +0.65 64 Puerto Rico (U.S.) 69.46 +0.20 128 Iran, Islamic Rep. 56.98 +2.34 Source: Doing Business database. Note: The ease of doing business rankings are benchmarked to May 1, 2018, and based on the average of each economy’s ease of doing business scores for the 10 topics included in the aggregate ranking. For the economies for which the data cover two cities, scores are a population-weighted average for the two cities. A positive change indicates an improvement in the score between 2016/17 and 2017/18 (and therefore an improvement in the overall business environment as measured by Doing Business), while a negative change indicates a deterioration and a 0.00 indicates no change in the score. 6 DOING BUSINESS 2019 FIGURE 1.2  Gaps between regulatory efficiency and regulatory quality are observed across all regions Average ease of doing business score (0–100) 100 80 60 40 20 0 OECD high income Europe & East Asia Middle East Latin America South Asia Sub-Saharan Africa Central Asia & Pacific & North Africa & Caribbean Regulatory efficiency Regulatory quality Source: Doing Business database. Note: The ease of doing business score for regulatory efficiency is the aggregate score for the procedures (where applicable), time and cost indicators from the following indicator sets: starting a business (also including the minimum capital requirement indicator), dealing with construction permits, getting electricity, registering property, paying taxes (including the postfiling index), trading across borders, enforcing contracts and resolving insolvency. The ease of doing business score for regulatory quality is the aggregate score for getting credit and protecting minority investors as well as the regulatory quality indices from the indicator sets for dealing with construction permits, getting electricity, registering property, enforcing contracts and resolving insolvency. region has room for further progress: its makers to learn from the experience of latter economies share many of the average ease of doing business score their neighbors. In the area of getting good practices found in OECD high- for regulatory quality is less than 40, credit, for example, officials in Angola income economies, including reliable compared to 73 in OECD high-income (ranked 184) and Eritrea (186) could secured transaction laws and robust economies. Similarly, the average ease learn from the experience of Rwanda credit information sharing available of doing business score for regulatory and Zambia (both ranked 3). The two through credit bureaus or registries. efficiency is 60, compared to 85 among OECD high-income economies. FIGURE 1.3  Resolving insolvency is the area with the biggest gap between Sub- Saharan African economies and OECD high-income economies Not surprisingly, large gaps exist between Average ease of doing business score (0–100) the performance of Sub-Saharan Africa 100 and OECD high-income economies (figure 1.3). Sub-Saharan African econo- 80 mies score significantly lower than the most efficient economies in all areas. 60 The gap in the score is significantly wider in the areas of trading across borders 40 (41 points) and getting electricity (36 points). The area with the largest score 20 difference is resolving insolvency, where the gap between Sub-Saharan African 0 Starting a Dealing Paying Trading Registering Getting Enforcing Protecting Getting Resolving economies and the best performers business with taxes across property electricity contracts minority credit insolvency construction borders investors is 44 points. permits Substantial variations in performance Sub-Saharan Africa OECD high income among Sub-Saharan African econo- mies present an opportunity for policy Source: Doing Business database. OVERVIEW 7 The area of resolving insolvency is the most challenging of all worldwide (figure Substantial variations in performance among Sub-Saharan 1.4), yet this should not discourage African economies present an opportunity for policy makers economies from taking steps in this to learn from the experience of their neighbors. direction. For example, in 2017/18, as a result of introducing several changes to its insolvency framework, including facili- tating the continuation of the debtor’s economy—ranks 25 for paying taxes The majority of these reforms have been business during insolvency proceedings, but 112 for getting credit. made in low- and lower-middle-income providing for equal treatment of credi- economies. In this year’s report, 73% of tors in reorganization proceedings and If the process of starting a business is low-income economies and 85% of lower- granting creditors greater participation already relatively easy, but the lack of a middle-income economies reformed in at in the insolvency proceedings, Kenya credit information system or a collateral least one area. Such reform dynamism progressed toward the best regulatory register can make it difficult for firms explains the significant improvements in practice by 14 points in the score for to obtain credit, entrepreneurs will face business regulation that low- and lower- resolving insolvency. hurdles that could negatively impact the middle-income economies have achieved wider economy as they struggle to meet compared to upper-middle-income and Variation across areas of regulation, as their potential or compete. The opposite high-income economies (figure 1.5). measured by the ease of doing business can also be true—an economy can have ranking, is also frequently observed a high-quality land administration system The three regions which have improved across all economies, regardless of and reliable credit reporting mechanisms, the most since 2004 are Europe and income level. Among high-income but cumbersome business incorpora- Central Asia, Sub-Saharan Africa and economies, for example, New Zealand tion processes. As a result, firms may the Middle East and North Africa. ranks 1 for starting a business, but 21 be discouraged from formal entry, with Together, these regions have intro- for enforcing contracts. Rwanda, a negative consequences for the economy duced more reforms than the other four low-income economy, ranks 2 for regis- including lower rates of formal employ- regions combined. With 905 reforms, tering property and 3 for getting credit, ment and tax collection. Sub-Saharan Africa holds the record but 88 for trading across borders and 51 for the highest total number of reforms for starting a business. China is ranked Since Doing Business 2005 more than captured by Doing Business over the 6 for enforcing contracts but 28 for 3,500 business regulatory reforms past 15 years. Moreover, the region also starting a business, while Morocco— have been implemented across the 190 recorded the highest number of reforms classified as a lower-middle-income economies measured by Doing Business. in 11 of those 15 years. For the same FIGURE 1.4  Which area is easier for entrepreneurs and which is more difficult? Average ease of doing business score (0–100) 100 80 60 40 20 0 Starting a Dealing with Getting Registering Getting Paying Trading Protecting Enforcing Resolving business construction electricity property credit taxes across minority contracts insolvency permits borders investors Source: Doing Business database. 8 DOING BUSINESS 2019 FIGURE 1.5  Low- and lower-middle-income economies have made bigger improvements over time Average year-on-year improvement in ease of doing business score 20 15 10 5 0 Low income Lower middle income Upper middle income High income DB2005 DB2006 DB2007 DB2008 DB2009 DB2010 DB2011 DB2012 DB2013 DB2014 DB2015 DB2016 DB2017 DB2018 DB2019 Average global improvement Source: Doing Business database. Note: The red line shows the average global improvement in the ease of doing business score since 2004. The measure is normalized to range from 0 to 100, with 100 representing the best regulatory performance. Because of changes over the years in methodology and in the economies and indicators included, the improvements are measured year on year using pairs of consecutive years with comparable data. period, Europe and Central Asia has, index; today their score is almost 6— when economies adopt business-friendly however, maintained the highest average within 0.4 points of the high-income regulation. 21 number of reforms per economy per year economy average. Although this shows making it easier to do business (2.03), a substantial gradual convergence, not followed by Sub-Saharan Africa (1.26) all areas have experienced the same pace WHICH ECONOMIES and South Asia (1.23). of improvement. Since 2006 low-income IMPROVED THE MOST IN economies have reduced the time to DOING BUSINESS IN 2017/18? Slowly, but consistently, the economies pay taxes, for example, by only 29 hours most in need of business regulatory on average, compared to a reduction Governments worldwide invest substan- reform are adopting global good practices of 57 hours on average—nearly twice tial effort in changing business regulatory and converging toward the best regula- as much—by high-income economies frameworks to make doing business tory performance. In 2006 the average (which had 100-hours faster head start easier for entrepreneurs. Such efforts time to start a business in Sub-Saharan on average to begin with). can range from straightforward changes African economies was 59 days; today (for example, reducing the fees for the average is 23 days, significantly closer Change takes time, especially when the obtaining a building permit in Cambodia to the high-income economy average starting point is characterized by weak or publishing fee schedules and service of 9 days (figure 1.6). Similarly, the gap institutions and costly, cumbersome standards for property transfer in Tunisia) between low- and high-income econo- processes. However, the reform trends to substantial revisions of legislation (the mies on the extent of disclosure index captured by Doing Business suggest a Kyrgyz Republic’s new civil procedure has narrowed over the past decade.20 In strong impetus for change in low- and code) or the establishment of new insti- 2009 low-income economies averaged a lower-middle-income economies. Recent tutions (such as specialized commercial score of 4.6 on the extent of disclosure research shows that poverty is reduced benches in Ethiopia or intermediate OVERVIEW 9 FIGURE 1.6  Areas where economies are converging and areas where they are not Average time to start a business Average cost to obtain an electricity connection (days) (% of income per capita) 70 7,000 60 6,000 50 5,000 40 4,000 30 3,000 20 2,000 10 1,000 0 0 DB2006 DB2007 DB2008 DB2009 DB2010 DB2011 DB2012 DB2015 DB2016 DB2017 DB2018 DB2019 DB2013 DB2014 DB2010 DB2011 DB2012 DB2013 DB2014 DB2015 DB2016 DB2017 DB2018 DB2019 Sub-Saharan Africa OECD high income Sub-Saharan Africa OECD high income Average extent of disclosure index in Average time to prepare, file returns protecting minority investors (0–10) and pay taxes (hours) 7 350 6 300 5 250 4 200 3 150 2 100 1 50 0 0 DB2006 DB2007 DB2008 DB2009 DB2010 DB2011 DB2012 DB2015 DB2016 DB2017 DB2018 DB2019 DB2009 DB2010 DB2011 DB2012 DB2013 DB2014 DB2015 DB2016 DB2017 DB2018 DB2019 DB2013 DB2014 High income Low income High income Low income Source: Doing Business database. Note: The upper left-hand side graph includes 174 economies where data is available back to Doing Business 2006. The upper right-hand side graph includes 183 economies where data is available back to Doing Business 2010. The lower left-hand side graph includes 182 economies where data is available back to Doing Business 2009. The lower right-hand side graph includes 174 economies where data is available back to Doing Business 2006. customs posts in El Salvador). While how Doing Business identifies changes regulatory reforms improving the busi- the variety of activities that can be as a reform, see the data notes at http:// ness climate (see table 1A.1 at the end undertaken to improve the ease of doing www.doingbusiness.org. of this chapter). The previous record business is extensive, they are all aimed was set by Doing Business 2017, which at streamlining processes, increasing In the past year, Doing Business observed captured 290 reforms implemented procedural and legislative efficiency and a peaking of reform activity worldwide. by 137 economies (figure 1.7). Almost improving the accessibility and transpar- From June 2, 2017, to May 1, 2018, 128 one-third of all reforms recorded in ency of information. For more details on economies implemented a record 314 2017/18 were implemented in two 10 DOING BUSINESS 2019 FIGURE 1.7  Doing Business 2019 captured a record 314 reforms in 128 economies Reforms captured by Doing Business year (number) 350 Resolving insolvency 300 Enforcing contracts 250 Trading across borders Paying taxes 200 Protecting minority investors 150 Getting credit Registering property 100 Getting electricity 50 Dealing with construction permits Starting a business 0 8 9 0 1 2 3 4 5 6 7 8 9 200 200 201 201 201 201 201 201 201 201 201 201 DB DB DB DB DB DB DB DB DB DB DB DB Source: Doing Business database. Note: The getting electricity indicator set was added in Doing Business 2012. The report’s geographical coverage has gradually expanded from 178 economies in Doing Business 2008 to 181 in Doing Business 2009, 183 in Doing Business 2010, 185 in Doing Business 2013, 189 in Doing Business 2014 and 190 economies since Doing Business 2017. areas—starting a business and enforcing starting a business easier by reducing the site inspections or bank certificates prior contracts (table 1.2). Doing Business procedures, time or cost associated with to company incorporation. By allowing 2019 also recorded the lowest number company incorporation. Twenty-three of voluntary value added tax registration of changes to making it more burden- the 50 economies that reformed in this at the time of business incorporation, some for businesses to operate since area did so by simplifying preregistration Georgia reduced its relative gap to the Doing Business 2007.22 or registration formalities. Such changes best regulatory performance on starting can vary from integrating multiple appli- a business the most in 2017/18. In 2017/18, one-quarter of economies cation forms into a single registration Previously, entrepreneurs had to make measured by Doing Business made template to abolishing requirements for a separate visit to the Revenue Service for value added tax registration after company registration. Georgia also TABLE 1.2  Starting a business continues to be the most popular area of reform in enhanced its existing one-stop shop for 2017/18 business incorporation, allowing entre- Number of reforms Region(s) with the highest share of preneurs to start a company through Area of reform in 2017/18 reformers in 2017/18 a single procedure. Starting a business 50 East Asia & Pacific Dealing with construction permits 31 Europe & Central Asia The second highest number of busi- Getting electricity 26 East Asia & Pacific ness regulatory reforms (49) captured by Doing Business 2019 is in the area Registering property 28 Sub-Saharan Africa of enforcing contracts. This uptick in Getting credit 29 Middle East & North Africa and South Asia reform can be attributed mainly to the Protecting minority investors 23 Middle East & North Africa achievements of the 17 member states of Paying taxes 31 South Asia the Organization for the Harmonization Trading across borders 33 Europe & Central Asia of Business Law in Africa, known by its Enforcing contracts 49 Sub-Saharan Africa French acronym OHADA. The organiza- tion adopted a Uniform Act on Mediation Resolving insolvency 14 South Asia in 2017 (filling a legislative void that Source: Doing Business database. Note: The labor market regulation indicators also recorded 19 regulatory changes in Doing Business 2019. These existed in most OHADA member changes are not included in the total reform count. states) which introduced mediation as OVERVIEW 11 an amicable mode of dispute settle- economies in Sub-Saharan Africa. Both Caribbean (which is the fourth highest ment. The OHADA Uniform Act adopts regions captured reforms in every topic scoring region) had the second lowest a broad scope of application by covering measured by Doing Business. Indeed, share of reformers with 56% of econo- conventional and judicial mediation and reforms undertaken by economies in mies implementing reforms in 2017/18. sets out the guiding principles for the these two regions represent half of all Naturally, economies in these two conduct of mediation. reforms recorded globally. In 2017/18 regions had the lowest average increase Sub-Saharan Africa implemented the in their ease of doing business score Doing Business also recorded a historic most reforms ever recorded by Doing in 2017/18: +0.16 points on average in number of reforms (26) in the area Business and the highest total number of OECD high-income economies (which is of getting electricity. East Asia and reforming economies. the highest performing region and there- the Pacific has the highest share of fore has little room for improvement) reformers, with 28% of economies from On average, Sub-Saharan African and +0.22 points on average in Latin this region improving on the getting economies increased their ease of America and the Caribbean. electricity indicators. Sub-Saharan doing business scores by 0.99 points African economies recorded eight this year, slightly below the average Worldwide, the 10 economies showing reforms in this area, the highest number improvement of 1.00 point for econo- the most notable improvement in of any region worldwide. mies in Europe and Central Asia. With performance on the Doing Business an increase of 2.73 points on average, indicators in 2017/18 are Afghanistan, The economies of Europe and Central South Asian economies recorded the Djibouti, China, Azerbaijan, India, Asia and Sub-Saharan Africa were the largest score improvement. This achieve- Togo, Kenya, Côte d’Ivoire, Turkey and most active in reforming their regula- ment is not surprising as the region has Rwanda (table 1.3). Together, these tory frameworks in 2017/18, with four the highest average number of reforms economies implemented a total of 62 of every five economies substantially per reforming economy—a total of 19 business regulatory reforms across improving business regulations in both reforms were implemented by five of all areas measured by Doing Business. regions. Nineteen economies in Europe the eight economies that comprise the Overall, the 10 top improvers imple- and Central Asia implemented a total region. The lowest share of reformers mented the most regulatory reforms of 54 regulatory reforms improving was observed in the OECD high-income in the areas of starting a business, the business environment. A total of group where 16 of 34 economies imple- getting credit and paying taxes (with 107 business regulatory reforms were mented a total of 23 reforms (or 7% of eight reforms in each area). This very recorded by Doing Business across 40 the global count). Latin America and the diverse set of economies includes TABLE 1.3  The 10 economies improving the most across three or more areas measured by Doing Business in 2017/18 Reforms making it easier to do business Change Ease of in ease Dealing doing of doing with Protecting Trading business business Starting a construction Getting Registering Getting minority Paying across Enforcing Resolving Economy rank score business permits electricity property credit investors taxes borders contracts insolvency Afghanistan 167 +10.64 ✔ ✔ ✔ ✔ ✔ Djibouti 99 +8.87 ✔ ✔ ✔ ✔ ✔ ✔ China 46 +8.64 ✔ ✔ ✔ ✔ ✔ ✔ ✔ Azerbaijan 25 +7.10 ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ India 77 +6.63 ✔ ✔ ✔ ✔ ✔ ✔ Togo 137 +6.32 ✔ ✔ ✔ ✔ ✔ ✔ Kenya 61 +5.25 ✔ ✔ ✔ ✔ ✔ Côte d'Ivoire 122 +4.94 ✔ ✔ ✔ ✔ ✔ Turkey 43 +4.34 ✔ ✔ ✔ ✔ ✔ ✔ ✔ Rwanda 29 +4.15 ✔ ✔ ✔ ✔ ✔ ✔ ✔ Source: Doing Business database. Note: Economies are selected on the basis of the number of reforms and ranked on how much their ease of doing business score improved. First, Doing Business selects the economies that implemented reforms making it easier to do business in three or more of the 10 areas included in this year’s aggregate ease of doing business score. Regulatory changes making it more difficult to do business are subtracted from the number of those making it easier. Second, Doing Business ranks these economies on the increase in their ease of doing business score from the previous year. The improvement in their score is calculated not by using the data published in 2017 but by using comparable data that capture data revisions. The choice of the most improved economies is determined by the largest improvements in the ease of doing business score among those with at least three reforms. 12 DOING BUSINESS 2019 some of the largest and the smallest in and introduced a unified application for India also continued to streamline and the world, showing that economies of inspections carried out after the comple- centralize its construction permitting all sizes can be successful reformers in tion of construction. Similarly, the District process. Regarding getting electricity, Doing Business. Real Estate Registries of both Beijing and newly-adopted regulations from the Shanghai implemented a new connected Delhi Electricity Regulatory Commission Afghanistan—the top improver in Doing platform streamlining the registration require that electrical connections Business 2019—focused on enhancing the process for new buildings. To facilitate be completed within 15 days of the legal framework for businesses. Minority cross-border trade, China implemented application’s acceptance. To comply investor protections were strengthened a national trade single window linking with this regulation, Tata Power Delhi substantially, making Afghanistan one the customs and tax administration, port Distribution deployed more personnel of the economies advancing most in authorities, the Ministry of Commerce as well as tracking tools and key perfor- this area. A new law on limited liability and other agencies involved in the export mance indicators to monitor each companies made noteworthy progress and import processes. commercial connection. toward mitigating the risks of prejudicial conflicts of interest in companies and India also focused on streamlining busi- Djibouti and India are the only economies strengthening corporate governance ness processes. Under its National Trade to make the list of 10 top improvers for structures. In addition, the Commercial Facilitation Action Plan 2017-2020, India the second consecutive year. Djibouti Procedure Code was amended to grant implemented several initiatives that introduced a total of 11 business regula- greater powers to shareholders to improved the efficiency of cross-border tory reforms in the past two editions challenge related-party transactions. trade, reducing border and documentary of Doing Business, while India made 14 Afghanistan also adopted a new insol- compliance time for both exports and sizeable improvements during the same vency legal framework in 2018. imports (figure 1.9). Enhanced risk-based period. Djibouti, the only economy from management now allows exporters the Middle East and North Africa region The two economies with the largest to seal their containers electronically in the list of 10 top improvers this year, populations, China and India, demon- at their own facilities; as little as 5% has targeted its reform agenda toward strated impressive reform agendas. Both of shipments must undergo physical strengthening its legal framework. For governments took a carefully designed inspections. India also invested in port example, Djibouti implemented strict approach to reform, aiming to improve equipment, strengthened management deadlines for registering the property sale the business regulatory environment and improved electronic document flow. agreement with the Tax Authority and over the course of several years. China By implementing the Single Window digitizing its land registry. The country is the only economy from East Asia and Clearance System in Delhi and the Online also made substantial enhancements the Pacific to join the Doing Business 2019 Building Permit Approval System in to the process of resolving commer- list of 10 top improvers. China focused its Mumbai during the second half of 2017, cial disputes by adopting a new civil reform efforts in 2017/18 on increasing the efficiency of business processes. The FIGURE 1.8  China significantly reduced the time to get a new electricity connection utility distribution companies in both in 2017/18 Beijing and Shanghai undertook several Time to obtain a new electricity initiatives that significantly reduced the connection (days) time to obtain a new electricity connec- 150 tion (figure 1.8). China digitalized new grid connection applications offering 120 online payment while eliminating the external site visit from the utility in 90 Beijing. During the first half of 2018, China introduced reform measures to stream- 60 line its construction permitting process by implementing unified platforms for 30 all building review processes carried out 0 before the approval of a building permit DB2018 DB2019 in both Beijing and Shanghai. The reforms also simplified documentation require- Shanghai Beijing ments, improved processing times, expanded public access to information Source: Doing Business database. OVERVIEW 13 while Kenya simplified the process of FIGURE 1.9  India decreased border and documentary compliance time for both exports and imports providing value added tax information by enhancing its existing online system, Time for compliance (hours) iTax. Rwanda streamlined the process of starting a business by replacing its 300 electronic billing machine system with 250 new software that allows taxpayers 200 to issue value added tax invoices. The free software, which is provided by the 150 office of the Revenue Authority, allows 100 taxpayers to issue value added tax invoices from any printer, eliminating 50 the previous requirement to purchase 0 and set up a special billing machine. Imports border Exports border Imports documentary Exports documentary Togo made it faster to check company DB2018 DB2019 name availability by fully operational- izing its online one-stop shop. Digital solutions were also implemented in Source: Doing Business database. the area of property registration. Togo developed an ambitious digitization procedure code that regulates voluntary to credit, Azerbaijan established a new project for modernizing its land admin- conciliation, mediation proceedings and credit bureau and a new unified collat- istration system and, by February 2018, case management techniques, including eral registry. In Turkey, the government’s 97.2% of all land titles in Lomé had been time standards for key court events. reform effort focused on improving the scanned. In Kenya, the Ministry of Lands Enforcing contracts is easier following the electronic processing of documents and and Physical Planning implemented creation of a dedicated division within the providing more information on specific an online land rent financial manage- court of first instance to resolve commer- regulations. Istanbul and other munici- ment system on the eCitizen portal, cial cases. With regards to resolving palities across the country published on enabling property owners to determine insolvency, Djibouti established equal their websites all relevant regulations, fee the amount owed in land rent, make an treatment of creditors in reorganization schedules and pre-application require- online payment and obtain the land rates proceedings and increased creditors’ ments related to construction permits. clearance certificate digitally. Rwanda’s participation by granting them the right The Ministry of Justice now publishes Land Management and Use Authority to approve the appointment of the all judgments rendered by the Istanbul launched a new website, which now insolvency representative and the sale commercial courts, the civil courts of includes statistics regarding the number of substantial assets of the debtor in the intellectual and industrial rights and the of land disputes registered in 2017 course of insolvency proceedings. Istanbul Regional Court of Justice on legal for all judiciary districts. The National disputes concerning commercial, intel- Agricultural Export Development Board In Europe and Central Asia, Azerbaijan lectual and industrial rights since 2014. of Rwanda also introduced an online implemented eight reforms making it Furthermore, the Banks Association of system, allowing certificates of origin to easier to do business in 2017/18, a record Turkey Risk Center began sharing credit be issued electronically. number among the 10 top improvers information from seven telecommunica- and globally, and Turkey implemented tions companies. Brazil, which recorded the largest score seven reforms. Several of these reforms improvement in Latin America and the involve institutional changes. Azerbaijan With four economies—Côte d’Ivoire, Caribbean in 2017/18, reformed in four opened a single window at the Baku Kenya, Rwanda and Togo—Sub-Saharan areas measured by Doing Business as City Executive Office for dealing with Africa is the most represented region part of the country’s ongoing effort to construction permits, for example, in the Doing Business 2019 list of 10 top strengthen its business environment. reducing the time to obtain a building improvers. Digitization was a common Brazil introduced electronic certificates permit by 80 days and the cost by 12,563 theme among the business regulatory of origin in 2017, for example, following a manat (about $7,500). Another one-stop reforms recorded by these four econo- pilot project that began in October 2016. shop—the Asan Communal facility— mies. Côte d’Ivoire and Togo introduced After signing the Digital Certificates streamlined the process of connecting online systems for filing corporate of Origin Act with Argentina under to the electricity grid. To improve access income tax and value added tax returns, the framework of the Latin American 14 DOING BUSINESS 2019 Integration Association, certificates of Economic Law. The scope of applica- every case is unique and a variety of of origin for auto parts imports tion of the law, traditionally limited to factors influence each economic environ- from Argentina are now obtained merchants, was extended to include the ment; business regulation is only one of electronically, reducing document prep- liberal professions, “second chance” rules those factors. Political stability, the level of aration and compliance time for Brazilian were strengthened and the Code was economic development, natural resource importers. Brazil made starting a busi- amended to provide for the digitaliza- endowment, cultural specifics, environ- ness easier by launching online systems tion of all insolvency proceedings into a mental risk and many other elements for company registration, moving its solvency register. can each play a consequential role in the score for starting a business (80.23) ability of an economy to implement regu- closer to the global average. Overall, the latory change successfully. While some BRIC economies—Brazil, Russia, India DOES TRAINING CIVIL factors cannot be influenced, others lie and China—improved their average ease SERVANTS AND within governments’ direct control, for of doing business score by a combined COMMUNICATING example the level of training provided to total of almost 19 points across various REGULATORY CHANGES civil servants and the way in which regu- areas of business regulation. All four AFFECT THE BUSINESS latory change is communicated. economies improved in the area of CLIMATE? getting electricity and passed reforms Doing Business data show that across simplifying the process of trading Reform efforts will not always result in economies there is a significant posi- across borders. immediate improvements; indeed, some tive association between the availability may have no impact at all. Efficient of training programs for public officials Among OECD high-income economies, design and poor implementation are and streamlined business regulation Belgium recorded the largest improve- just two factors that explain why some (figure 1.10). From the perspective of ment in Doing Business 2019 by reforms succeed while others fail. Once service providers—such as officers at strengthening access to credit. It also new regulation is enacted, it must be land registries, judges, prosecutors or introduced changes to its insolvency legal brought to practice—the role of dissemi- engineers—training serves as a platform framework. Two laws relating to reorga- nation should not be underestimated. The to acquire new skills and keep existing nization and liquidation were streamlined process of improving a business environ- knowledge up to date.23 Such training into one and integrated into the Code ment often spans several years. Naturally, improves experts’ productivity and FIGURE 1.10  More training opportunities for public officials are associated with a higher ease of doing business score Average ease of doing business score Average ease of doing business score (0–100) (0–100) 100 100 80 80 60 60 40 40 20 20 0 0 0 1–2 3–5 0 1–2 3–4 Count of topics with training provided to government officials (0–5) Count of practitioners with legal degree requirement (0–4) Sub-Saharan Africa OECD high income Source: Doing Business database. Note: The count of Doing Business topics for which training is offered to public sector officials ranges from 0 to 5, where each topic with government-provided training counts as 1 (left-hand figure). The topics are as follows: starting a business (+1), registering property (+1), getting electricity (+1), paying taxes (+1) and trading across borders (+1). The relationship is significant at the 1% level after controlling for income per capita. The sample comprises 166 economies. The legal degree requirement count (right-hand figure) ranges from 0 to 4 where each type of legal practitioner required to hold an advanced degree counts as 1. The types of legal practitioner are as follows: practicing lawyers (+1), judges (+1), insolvency representatives (+1) and law clerks (+1). The relationship is significant at the 1% level after controlling for income per capita. The sample comprises 86 economies. OVERVIEW 15 capacity to serve customers, who in effectively communicate changes to business score. Governments that make turn become better informed about new legislative processes tend to be associ- changes to laws or procedures publicly regulatory requirements or processes. ated with better business regulation available through regulatory websites are Those with a better understanding of and more reforms. While these results also likely to perform better on the Doing business regulatory processes are likely cannot be interpreted as causal, they Business indicators. to comply more often with the required do signal to policy makers that public- rules and procedures. Improved under- private dialogue is a powerful tool for standing, clarity and trust in regulatory increasing the number of reforms and WHAT IS NEW IN THIS requirements are associated with more improving business regulatory efficiency YEAR’S REPORT? efficiency in the regulatory framework.24 (figure 1.11). To further explore the links between In the area of judicial performance, Effective public communication of training and the successful implementa- those economies that make the training business regulatory reform not only tion of business regulation, Doing Business of judges mandatory are more likely to constitutes good practice—it also 2019 presents four case studies with a enjoy higher resolution rates and better improves compliance from the private specific focus on training opportunities judicial decisions. Indeed, the training sector and holds the public sector for public officials and communication of judges is imperative for increased accountable for regulatory violations.28 of regulatory changes. The case study judicial efficiency and productivity.25, 26 Specifically, regulators who conduct on starting a business and registering Evidence from Pakistan indicates that workshops with the public or interested property analyzes new data on training reforms which provided judges with stakeholders are more likely to have opportunities available to public officials training are accompanied by positive better efficiency and quality of business at the business and land registries. It effects on judicial efficiency and, conse- legislation in their constituencies. Not finds that the provision of mandatory quently, entrepreneurship.27 surprisingly, economies where govern- training for business registry officers is ments communicate regulatory changes associated with higher registry efficiency. Beyond training, governments have through media—such as broadcast Similarly, holding annual training for other options to enhance the implemen- advertisements and announcements, land registry officers is associated with tation of business regulatory reform. social media, and mobile applications— more effective registration procedures. Economies in which governments are likely to have a higher ease of doing Communicating changes at the business FIGURE 1.11  Communication of regulatory changes through media campaigns is associated with better business regulation and more reforms Average ease of doing business Business regulatory reforms in 2017/18 score (0–100) (number) 100 3 80 2 60 40 1 20 0 0 0–1 2–4 5+ 0–1 2–4 5+ Count of topics with media campaign (0–6) Count of topics with media campaign (0–6) Source: Doing Business database. Note: The count of topics with media campaign ranges from 0 to 6 where each topic with a media campaign launched to announce changes to regulation counts as 1. The topics are as follows: starting a business (+1), dealing with construction permits (+1), registering property (+1), getting credit (+1), protecting minority investors (+1) or paying taxes (+1). Both the left-hand and right-hand relationships are significant at the 1% level after controlling for income per capita; both samples comprise 76 economies. 16 DOING BUSINESS 2019 and land registries—through, for example, 19. Since 2005 a total of five reforms have been captured in Mauritius in the area of starting a providing workshops for registry officers NOTES business, but four reforms contributed to the or information campaigns for system reduction in time for business incorporation. 1. Entrepreneurship Database (http:/ /www 20. The extent of disclosure index ranges from users—is associated with a lower time to .doingbusiness.org/data/exploretopics 0 to 10, with higher values indicating greater complete transactions. /entrepreneurship), World Bank Group. disclosure. 2. Aghion, Fally and Scarpetta 2007; Herrendorf 21. Djankov, Georgieva and Ramalho 2018. and Teixeira 2011. 22. Twenty-three changes making it more The case study on getting electricity 3. Paunov 2016. burdensome for businesses to operate were highlights the benefits of comprehensive 4. Demenet, Razafindrakoto and Roubaud 2016. recorded in Doing Business 2019. wiring regulation. To adequately mitigate 5. Sutherland 2011. 23. DeVaro, Maxwell and Morita 2017. 6. Agyeman, Abeka and Assiamah 2016. 24. Dabla-Norris, Gradstein and Inchauste 2008. safety risks, accreditation systems for 7. Abeberese 2016. 25. Hadfield 2008. electricians are essential, as are inspec- 8. Andersen and Dalgaard 2013. 26. Ichino, Polo and Rettore 2003. tions of wiring installations and liability 9. Aragón 2015; Christiansen, Schindler and 27. Chemin 2009. Tressel 2013. 28. Macchiavello 2008. regimes. Doing Business data show that 10. Berkowitz, Lin and Ma 2015; Mitton 2016. where electrical connection processes 11. Djankov, La Porta and others 2008. are efficient, there also tend to be robust 12. Durnev, Errunza and Molchanov 2009. 13. Gutiérrez 2003. quality control standards. Similarly, the 14. Chaurey 2015. case study on trading across borders 15. Carluccio 2015. draws on newly collected data to illus- 16. For more information on the research on the effects of business regulation published in trate that the use of regular training to Doing Business 2014, see http://www educate customs clearance officials and .doingbusiness.org/en/reports/global-reports customs brokers is positively associated /doing-business-2014. 17. For more information on the legal research with lower border and documentary findings on business regulations and the law compliance times. published in Doing Business 2016, see http:// www.doingbusiness.org/en/reports /global-reports/doing-business-2016. The case study on enforcing contracts 18. These areas include: starting a business and resolving insolvency explores the (DB2019, DB2018, DB2015, DB2009, education and training that judges DB2008), dealing with construction permits (DB2018, DB2016, DB2008), registering receive worldwide. It features examples property (DB2019, DB2018, DB2017, DB2013, of two judicial systems—Indonesia DB2010, DB2009, DB2008), getting credit and the United Arab Emirates—each (DB2014, DB2013, DB2010, DB2009, DB2007, DB2006), protecting minority with adequate education and training investors (DB2019), paying taxes (DB2019, frameworks in commercial and insol- DB2008), trading across borders (DB2019, vency matters. The annex presents data DB2018, DB2010, DB2008, DB2006), enforcing contracts (DB2015, DB2014, analysis for the labor market regulation DB2011, DB2010), resolving insolvency topic, including general trends and the (DB2014, DB2010, D2008). Substantial relationship with firm performance. changes were observed in labor market regulation in DB2010. OVERVIEW 17 TABLE 1A.1  Who reduced regulatory complexity and cost or strengthened legal institutions in 2017/18—and what did they do? Feature Economies Some highlights Making it easier to start a business Simplified preregistration Afghanistan; Argentina; Bolivia; Brazil; Brunei Argentina made starting a business easier by introducing an expedited process for and registration formalities Darussalam; Burundi; Côte d’Ivoire; Ethiopia; limited liability companies that includes company incorporation, book legalization (publication, notarization, Guatemala; India; Mauritania; Morocco; Myanmar; and tax and social security registration. India made starting a business easier by inspection, and other New Zealand; Nigeria; Pakistan; Qatar; South fully integrating multiple application forms into a general incorporation form. requirements) Africa; Sudan; Thailand; Togo; Turkey; Vietnam Abolished or reduced Central African Republic; Guatemala; Kuwait; Kuwait made starting a business easier by eliminating the paid-in minimum capital minimum capital requirement Timor-Leste; Togo requirement. Cut or simplified Armenia; Belarus; Brunei Darussalam; Chile; Indonesia made starting a business easier by combining different social security postregistration procedures Georgia; India; Indonesia; Kazakhstan; Mauritius; registrations. Mauritius made starting a business easier by linking the database (tax registration, social security Peru; Philippines; Rwanda; Singapore; Zimbabwe of the business registry with the database of the social security office. Singapore registration, licensing) made starting a business easier by abolishing corporate seals. Introduced or improved Bolivia; China; Guatemala; Malaysia; Nigeria; Nigeria made starting a business easier by introducing an online platform to online procedures Tanzania; Togo; United Arab Emirates; Vietnam pay stamp duties. Tanzania made starting a business easier by launching online company registrations. Vietnam made starting a business easier by publishing the notice of incorporation online. Introduced or improved Cameroon; Chad; Djibouti; Egypt, Arab. Rep; Moldova made starting a business easier by removing the requirement to separately one-stop shop Gabon; Guinea; Moldova; Togo; Tunisia file for registration with the National Bureau of Statistics. Tunisia made starting a business easier by combining different registrations at the one-stop shop. Making it easier to deal with construction permits Reduced time for processing Azerbaijan; Botswana; China; El Salvador; Sri Lanka made dealing with construction permits easier by reducing the processing permit applications Ethiopia; Greece; Guinea; India; Kosovo; Malaysia; times to issue several building certificates. Malta; Russian Federation; Serbia; Sri Lanka; Taiwan, China; Zimbabwe Streamlined procedures Azerbaijan; Botswana; China; El Salvador; Greece; Kosovo made dealing with construction permits easier by streamlining the India; Kosovo; Malaysia; Malta; Serbia; Sri Lanka inspection system through the use of an in-house engineer. Adopted new building China; Côte d’Ivoire; Gabon; Ghana; Madagascar; Ghana and Peru strengthened construction quality control by imposing stricter regulations Peru; Philippines; Togo qualification requirements for professionals in charge of technical inspections. The Philippines made the construction sector safer by improving its risk management practices; latent defect liability insurance is now commonly obtained by industry players. Improved transparency Burundi; China (Beijing); India; Mauritania; Sri Burundi increased the transparency of dealing with construction permits by Lanka; Turkey; Uruguay publishing regulations related to construction online free of charge. Uruguay improved the quality of its building regulations by creating an online portal that provides information on the requirements and fees to obtain a building permit. Reduced fees Azerbaijan; Cambodia; China; Gabon; Greece; Macedonia, FYR made the construction permitting process less costly by reducing Guinea; India; Macedonia, FYR; Madagascar; the land development fees. Niger; Togo Introduced or improved Azerbaijan; Belarus; China; India; Sri Lanka; Taiwan, China, made dealing with construction permits less time-consuming by one-stop shop Taiwan, China; Zimbabwe improving the efficiency of its single window counter in the Taipei City Construction Management Office. Zimbabwe made dealing with construction permits faster by adopting a one-stop shop for building plan approvals. Introduced or improved China; India; Russian Federation; Serbia; Sri Lanka; Serbia reduced the time needed to obtain a construction permit by introducing an electronic platforms or online Taiwan, China; Uruguay electronic application system. services Making it easier to get electricity Facilitated more reliable Angola; Azerbaijan; Brazil (São Paulo); Gabon; Gabon improved the regulatory framework of the electricity sector; the national power supply and Mozambique; Myanmar; Paraguay; Papua New regulator now monitors the utility’s performance on reliability of supply. Papua transparency of tariff Guinea; Rwanda; Saudi Arabia; South Africa; Togo; New Guinea improved the reliability of supply by expanding electricity generation information Thailand capacities. Paraguay rolled out a Supervisory Control and Data Acquisition (SCADA) system to monitor power outages. Improved process efficiency Algeria; Armenia; Azerbaijan; Hong Kong SAR, Niger made the process for getting an electricity connection faster by increasing the China; India (Delhi); Mozambique; Niger; Russian stock of material the utility carries and by allowing the internal wiring certificate of Federation; Rwanda; United Kingdom conformity to be obtained at the same time as the external connection works. Streamlined approval process Brunei Darussalam; China; France; Malaysia; Thailand streamlined procedures by setting up a dedicated task force at the utility Nigeria; Russian Federation; Thailand that coordinates the external works, meter installation and electricity turn-on without the need for customer interaction. Reduced connection costs Azerbaijan; China; India (Delhi); Russian India (Delhi) issued a regulation prescribing new electricity charges. The United Federation; Togo; United Arab Emirates Arab Emirates made getting electricity easier by eliminating all costs for commercial and industrial connections of up to 150 kVA. 18 DOING BUSINESS 2019 TABLE 1A.1  Who reduced regulatory complexity and cost or strengthened legal institutions in 2017/18—and what did they do? Feature Economies Some highlights Making it easier to register property Increased reliability of Croatia; Djibouti; Pakistan; Sri Lanka; Togo Croatia became fully digitized, increasing the efficiency and transparency of infrastructure services provided by the Land Registry and Cadaster. Sri Lanka worked toward implementing a fully digital Land Registry and Survey Department by rolling out a geographic information system and creating a Single Window Counter for the issuance of certificates. Increased transparency of Azerbaijan; Croatia; Eswatini; Gabon; Indonesia; Gabon and Israel upgraded their official websites to include relevant information Israel; Mauritius; Pakistan; Papua New Guinea; information to the public at large regarding land registry services. Pakistan and Rwanda; Togo; Tunisia; United Arab Emirates; West Bank and Gaza began publishing online official statistics tracking the West Bank and Gaza number of transactions at the immovable property registration agency. Reduced taxes or fees Chad; Congo, Dem. Rep.; Congo, Rep.; Djibouti; Congo, Dem. Rep. reduced the cost of securing land and property titles. Guinea Guinea; Togo reduced the fees to transfer property from 2% to 1.2% of the property value. Reduced time for registering China; Djibouti; France; Kenya; Malawi; Malaysia; Malawi made property transfer faster by decentralizing the consent to transfer property Morocco; Sri Lanka; Togo; West Bank and Gaza property to local government authorities. Increased administrative China; Djibouti; Indonesia; Israel; Kenya; Morocco; Niger improved communication between the taxation department and the efficiency Niger; Pakistan; Senegal; Sri Lanka; Togo registration department by merging procedures, making reviewing and approving property transfers significantly faster. Senegal further streamlined the interactions between different departments at the Property Registry (Conservation Foncière). Strengthening legal rights of borrowers and lenders Created a unified and/or Azerbaijan; Belgium; Kenya; Nicaragua; United United Arab Emirates established a modern and unified collateral registry. modern collateral registry for Arab Emirates movable property Introduced a functional and Azerbaijan; Kenya Kenya strengthened access to credit by implementing a functional secured secured transactions system transactions system. The new law regulates functional equivalents to loans secured with movable property, such as financial leases and fiduciary transfer of title. Allowed for general Djibouti Djibouti allowed the general description of debts and obligations. description of assets that can be used as collateral Expanded range of movable Azerbaijan; Belgium, Djibouti; Egypt, Arab. Rep.; Egypt, Arab Rep. introduced a new law that broadens the scope of assets which assets that can be used Turkey; United Arab Emirates can be used as collateral to secure a loan. as collateral Granted absolute priority to Afghanistan; Belgium; Djibouti; Egypt, Arab. Rep.; Afghanistan introduced a new law that grants secured creditors absolute priority secured creditors or allowed India; Sudan; Turkey; United Arab Emirates over other claims within insolvency proceedings. out-of-court enforcement Granted exemptions to Azerbaijan; Rwanda; Sudan Rwanda adopted a new law on insolvency that contemplates protections for secured creditors from secured creditors during an automatic stay in reorganization proceedings. automatic stay in insolvency proceedings Improving the sharing of credit information Established a new credit Azerbaijan; Benin; Haiti; Ireland; San Marino San Marino improved access to credit information by launching a new bureau or registry credit registry. Improved regulatory Antigua and Barbuda; Bahamas, The; Grenada; Madagascar improved access to credit information by adopting a law that creates framework for credit Madagascar a new credit information system. reporting Expanded scope of Brazil; Côte d’Ivoire; Indonesia; Jamaica; Jordan; In Indonesia, one public utility began submitting positive and negative information information collected and Turkey on consumer accounts to the credit bureau. reported by credit bureau or registry Introduced bureau or registry Brunei Darussalam; Zimbabwe In Brunei Darussalam, the credit registry began offering credit scores to banks and credit scores as a value- other financial institutions to better inform their lending decisions. added service Guaranteed by law borrowers’ Mauritania; Qatar Qatar adopted the Consumer Credit Act 2016 guaranteeing borrowers’ right to right to inspect data inspect their own data. Expanded borrower coverage Côte d’Ivoire; Zimbabwe Zimbabwe expanded the number of borrowers listed by its credit registry with by credit bureau or registry information on their borrowing history from the past five years to more than 5% of the adult population. OVERVIEW 19 TABLE 1A.1  Who reduced regulatory complexity and cost or strengthened legal institutions in 2017/18—and what did they do? Feature Economies Some highlights Strengthening minority investor protections Expanded shareholders’ role Afghanistan; Armenia; Azerbaijan; Bahrain; China; The Philippines issued new rules for companies listed on its stock exchange. in company management Cyprus; Djibouti; Dominican Republic; Egypt, Arab Shareholders can now approve the appointment and dismissal of the auditor Rep.; Jordan; Kenya; Kuwait; Kyrgyz Republic; and companies must establish an audit committee composed exclusively Lithuania; Mauritius; Papua New Guinea; of board members. Philippines; Saudi Arabia; Sudan; Taiwan, China; Tunisia; Uzbekistan Increased disclosure Afghanistan; Armenia; Bahrain; Cyprus; Djibouti; In Tunisia, an amendment to capital market rules requires that companies promptly requirements for related-party Kenya; Kuwait; Tunisia; Ukraine make public information on interested party transactions and conflicts of interest. transactions Enhanced access to Afghanistan; Bahrain; China; Djibouti; Jordan; Djibouti introduced major changes to its Code of Commerce. Among the changes, information in shareholder Sudan any information relevant to the subject matter of the claim must now be made actions available to shareholders when they bring a lawsuit. Increased director liability Djibouti; Kenya; Saudi Arabia Kenya enacted the Companies Amendment Act 2017, which holds directors liable for transactions with interested parties valued at 10% or more of a company’s assets and that cause damages to the company. Directors involved in prejudicial transactions are now required to pay damages, disgorge profits and may be disqualified from holding similar office for up to five years. Making it easier to pay taxes Introduced or enhanced Azerbaijan; Bahamas, The; Bhutan; China; Côte The Bahamas implemented an online system for filing and payment of value added tax. electronic systems d'Ivoire; Cyprus; Finland; Iran, Islamic Rep.; Jordan; Kenya; Mauritius; Panama; Sri Lanka; Thailand; Togo; Turkey Reduced profit tax rate, Ecuador; France; Georgia; Hungary; India; Russian Ecuador introduced a Tax Incentive Law in 2017 allowing businesses to deduct an allowed for more tax- Federation; Togo additional 100% on amounts paid to cover private medical insurance or prepaid deductible expenses and health care for its employees. made changes to tax depreciation rules Reduced labor taxes and China (Beijing); Cyprus; Finland; France; Hungary; Vietnam reduced the employer’s contribution to the labor fund from 1% to 0.5%. mandatory contributions, India; Uzbekistan; Vietnam or taxes other than profit and labor Introduced new or Georgia; India India introduced the Maharashtra Goods and Services Tax Act 2017 and the Delhi significantly revised tax law Goods and Services Tax Act 2017, which unified all sales taxes into one new tax or tax code called the Goods and Services Tax (GST). Simplified tax compliance Afghanistan; Armenia; Azerbaijan; China; Georgia; Armenia improved the quality of the local accounting software (Arm accounting) processes or decreased India; Kenya; Kosovo; Lithuania; Vietnam for corporate income tax and labor taxes in 2017 by incorporating a wider range of number of tax filings tax calculations. This allowed for the integration of the local accounting software or payments with the tax authority's secure data transmission and storage system. Merged or eliminated taxes China; Cyprus; Ecuador; India; Kenya; Lithuania; Cyprus abolished the immovable property tax and did not extend the levy of the Special Tunisia; Vietnam Contribution for Employees, Pensioners and Self-Employed individuals in 2017. Improved VAT refund process Egypt, Arab Rep.; Iran, Islamic Rep.; Kosovo; Mauritius introduced an expedited processing system for the repayment of value Mauritius; Mozambique added tax refunds and upgraded its online platform to allow for the online submission of invoices and amended corporate tax returns. Improved tax audit processes Afghanistan; Iran, Islamic Rep.; Kosovo; Mauritius In 2017 Afghanistan introduced a new tax administration and law manual and correction of corporate with clear rules and guidelines on tax audit and automated the submission income tax processes of tax returns. 20 DOING BUSINESS 2019 TABLE 1A.1  Who reduced regulatory complexity and cost or strengthened legal institutions in 2017/18—and what did they do? Feature Economies Some highlights Making it easier to trade across borders Introduced or improved Angola; Azerbaijan; China; Congo, Dem. Kazakhstan made trading across borders easier by introducing an electronic electronic submission and Rep.; India; Iran, Islamic Rep.; Kazakhstan; customs declaration system, ASTANA-1 IS, and reducing customs administrative processing of documents for Kosovo; Lesotho; Lithuania; Malaysia; Morocco; fees. Uganda fully implemented the Centralized Document Processing Centre, an exports Mozambique; Nigeria; Russian Federation; electronic processing platform that centralizes all documentary checks. Traders in Rwanda; Saudi Arabia; Thailand; Turkey; Uganda; Uganda also began using the Uganda Electronic Single Window, which allows for Uzbekistan electronic submission of documents as well as for the exchange of information between trade agencies. Introduced or improved Angola; Azerbaijan; Bahrain; Brazil; China; Lesotho made importing faster by implementing the Automated System for electronic submission and Congo, Dem. Rep.; Ghana; India; Iran, Islamic Customs Data (ASYCUDA), reducing documentary compliance time for imports by processing of documents for Rep.; Lesotho; Malaysia; Morocco; Mozambique; two hours. In January 2017, Paraguay introduced the legal validity of the electronic imports Nigeria; Paraguay; Russian Federation; Saudi signature for trade operations. Arabia; Turkey; Uganda Strengthened border China; El Salvador; India; Malaysia; Morocco; El Salvador made exporting easier by introducing an intermediate customs post in infrastructure for exports Rwanda; Uganda Santa Ana, reducing congestion at the Anguiatú border crossing. Rwanda reduced border compliance time by having staff from the Rwanda Revenue Authority and the Tanzania Revenue Authority at the Rusomo one-stop border post, the result of the implementation of the Single Customs Territory. Strengthened border Bahrain; China; India; Malaysia; Morocco; Malaysia strengthened infrastructure at Port Klang by opening a second gate with infrastructure for imports Mozambique; Nigeria; Rwanda; Saudi Arabia; additional scanners, upgrading the management system, expanding two terminals Uganda and decreasing the cut-off time. Enhanced customs Algeria; Azerbaijan; China; Ghana; Guinea; India; Mauritius made exporting easier by introducing a risk-based management system administration and Iran, Islamic Rep.; Kazakhstan; Kosovo; Kyrgyz which reduced border compliance time by 14 hours. Ukraine made trading across inspections for exports and Republic; Lao PDR; Malaysia; Mauritius; Nigeria; borders easier by eliminating the verification requirement on auto-parts. Kosovo imports Russian Federation; Rwanda; Tajikistan; Turkey; also introduced simplified controls at the border with Albania, reducing the number Ukraine of physical examinations during customs clearance. Making it easier to enforce contracts Introduced significant Albania; Armenia; Djibouti; Kyrgyz Republic; Kyrgyz Republic, Slovenia, Sri Lanka and Ukraine amended the civil procedure rules changes to the applicable civil Malawi; Mongolia; Niger; Nigeria (Lagos); to introduce a pre-trial conference as part of the case management techniques procedure or enforcement Rwanda; São Tomé and Príncipe; Saudi Arabia; used in court. Albania, Armenia, Niger, Nigeria (Lagos) and Ukraine issued new rules Slovenia; Sri Lanka; Ukraine rules of procedure for small claims. Expanded court automation Canada; Georgia; Jordan; Kazakhstan; Canada, Jordan and Puerto Rico (U.S.) implemented a platform to pay fees by introducing electronic Madagascar; Poland; Puerto Rico (U.S.); Slovak electronically. Georgia, Madagascar and Poland introduced random and automatic payment, electronic service Republic; Turkey; Vietnam; Zambia; Zimbabwe assignment of cases to judges throughout the courts. Slovak Republic implemented of process, automatic electronic service of process. Kazakhstan, Turkey, Vietnam and Zimbabwe made assignment of cases to judges decisions rendered in commercial cases publicly available. or by publishing judgments Introduced or expanded the Denmark; Kazakhstan; Madagascar; Namibia; Denmark, Madagascar and Puerto Rico (U.S.) introduced an electronic case electronic case management Puerto Rico (U.S.) management system. Kazakhstan and Namibia introduced the possibility of system generating performance measurement reports. Introduced electronic filing Canada; Chile; Denmark; Puerto Rico (U.S.); Saudi Canada, Chile, Denmark, Puerto Rico (U.S.) and Saudi Arabia introduced an Arabia electronic filing system for commercial cases, allowing attorneys to submit the initial summons online. Introduced or expanded Djibouti; Ethiopia Djibouti and Ethiopia introduced dedicated benches to resolve commercial disputes. specialized commercial court Expanded the alternative Benin; Burkina Faso; Cameroon; Central African Djibouti, Ireland and Kyrgyz Republic adopted laws that regulate all aspects of dispute resolution framework Republic; Chad; Comoros; Congo, Dem. Rep.; mediation as an alternative dispute resolution mechanism. Sudan recognized Congo, Rep.; Côte d'Ivoire; Djibouti; Equatorial voluntary conciliation and mediation as ways of resolving commercial disputes. Guinea; Gabon; Guinea; Guinea-Bissau; Ireland; Turkey introduced financial incentives for mediation. Kyrgyz Republic; Mali; Niger; Senegal; Singapore; Sudan; Togo; Turkey OVERVIEW 21 TABLE 1A.1  Who reduced regulatory complexity and cost or strengthened legal institutions in 2017/18—and what did they do? Feature Economies Some highlights Making it easier to resolve insolvency Improved the likelihood of Afghanistan; Djibouti; Egypt, Arab. Rep.; Kenya; Morocco established the possibility for the debtor to receive new financing after successful reorganization Morocco; Pakistan; Rwanda; Turkey the commencement of insolvency proceedings and introduced corresponding priority rules. Introduced a new Afghanistan; Egypt, Arab. Rep.; Malaysia; Pakistan Pakistan introduced the option of reorganization for commercial entities as an restructuring procedure alternative to previously available option of liquidation. Strengthened creditors’ rights Afghanistan; Djibouti; Kenya; Kyrgyz Republic; Kyrgyz Republic granted an individual creditor the right to access information about Morocco; Rwanda; Sudan; Turkey the debtor’s business and financial affairs. Improved provisions on Afghanistan; Azerbaijan; Kenya; Kyrgyz Republic; Kenya allowed for the continuation of contracts supplying essential goods and treatment of contracts Pakistan; Sudan services to the debtor, giving the administrator the power to continue or disclaim during insolvency contracts of the debtor. Streamlined insolvency Belgium; Burundi Belgium unified its insolvency legal framework and streamlined provisions related procedures to liquidation and reorganization procedures. Changing labor legislation Altered hiring rules and Benin; Nepal Benin increased the maximum length of fixed-term contracts. Nepal allowed fixed- probationary period term contracts for permanent tasks and reduced probationary periods. Amended regulation of Brazil; Canada; Haiti; India (Mumbai); Israel; India (Mumbai) eliminated restrictions on weekly holiday work and introduced a working hours Lithuania; Nepal; Norway; South Sudan 100% wage premium for work on the weekly rest day. Changed redundancy rules Azerbaijan; Brazil; Costa Rica; France; Lithuania; France increased severance payments. Lithuania decreased the notice period and cost Nepal; South Sudan and severance payments in case of redundancy. Nepal eliminated the third-party approval requirement in case of redundancy. Reformed legislation Bulgaria; Canada; Costa Rica; Israel; Luxembourg; Canada introduced two days of paid sick leave. Israel, Luxembourg, Nepal and regulating worker protection Malaysia; Mali; Mozambique; Nepal; South Sudan; South Sudan increased the duration of paid maternity leave. and social benefits United States (New York) Source: Doing Business database. Note: Reforms affecting the labor market regulation indicators are included here but do not affect the ranking on the ease of doing business.