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World Bank Doing Business 2010 Report

Discussion in 'Jukwaa la Siasa' started by Invisible, Oct 8, 2009.

  1. Invisible

    Invisible Admin Staff Member

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    Doing Business 2010: A record in business regulation reform

    Since 2004 Doing Business has been tracking regulatory reforms aimed at improving the ease of doing business. Despite the challenges presented by the financial crisis, the number of reforms hit a record level this year.

    Between June 2008 and May 2009, 287 reforms were recorded in 131 economies, 20% more than the year before. Reformers focused on making it easier to start and operate a business, strengthening property rights and improving the efficiency of commercial dispute resolution and bankruptcy procedures.

    Two regions were particularly active this year: Eastern Europe and Central Asia and the Middle East and North Africa. In Eastern Europe and Central Asia, 26 of the region’s 27 economies reformed business regulation in at least one area covered by Doing Business.

    Governments in the Middle East and North Africa are reforming at a similar rate, with 17 of 19 reforming in 2008/09. In both cases, competition among neighbors helped inspire widespread reform.


    Singapore, a consistent reformer, is the top-ranked economy on the ease of doing business for the fourth year in a row, with New Zealand as runner-up. But most of the action occurred in developing economies.

    Two-thirds of the reforms recorded in the report were in low- and lower-middle-income economies. For the first time a Sub-Saharan African economy, Rwanda, is the world’s top reformer of business regulation, making it easier to start businesses, register property, protect investors, trade across borders, and access credit.

    Doing Business ranks economies based on 10 indicators of business regulation that record the time and cost to meet government requirements in starting and operating a business, trading across borders, paying taxes, and closing a business. The rankings do not reflect such areas as macroeconomic policy, security, labor skills of the population or the strength of the financial system or financial market regulations.

    Once again the most popular reform measure fell in the category of starting a business, with three-quarters of economies making it easier to start a business. Paying taxes was the next most popular category. The financial crisis has also prompted governments to act in areas where regulatory reform may be more difficult and require more time. During the past year 18 economies reformed their bankruptcy regimes, including several economies in the hard-hit region of Eastern Europe and Central Asia. In times of recession, keeping viable companies operating as a going concern and preserving jobs becomes especially important.


    : Not all indicators are covered for the full period. Registering property was introduced in Doing Business 2005, and paying taxes, trading across borders, dealing with construction permits and protecting investors in Doing Business 2006.

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  2. Invisible

    Invisible Admin Staff Member

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    UAE Among Top Five Countries In World Bank 2010 Business Report

    7 October 2009

    The UAE moved up to be among the top five economies in the world in the “Trading Across Borders” topic of the World Bank’s “Doing Business” report for 2010. From its 13th rank in last year’s report, the country has surged to the 5th rank in the latest annual evaluation of 183 global economies.

    The UAE also improved its overall World Bank ranking in “Ease of Doing Business” by 14 positions, from 47 in the 2009 to 33 in 2010 report, reflecting the strength of its trade flow strategies, which are efficiently supported by the innovative online services of Dubai Trade, the leading business facilitator under Dubai World.

    Jamal Majid Bin Thaniah, Chief Executive Officer, Dubai World and Chairman of Dubai Trade, said: “By joining the world’s top five economies in cross border trade, the UAE has proved the excellence of its forward-looking policies on trade facilitation. The rise in overall ranking is reflective of the country’s all-round economic progress. The online solutions Dubai Trade has initiated played a vital part in enabling fast and efficient movement of goods across the border. This recognition by the World Bank strengthens our resolve in making Dubai and the UAE the most efficient trade hub in the world.”

    “Doing Business” is World Bank’s annual project covering 183 economies providing an objective measure of business regulations and their enforcement. The economies are ranked by the index on the ease in doing business. This index relates to 10 different indicators, ranging from Starting a Business and Operating it to Closing it.. Higher rank reflects a regulatory environment supportive of business operations, which is a vital clue to prospective investors.

    Since Dubai Trade has been associated with improving the facilitation of trade through the online portal www.dubaitrade.ae, the country has witnessed a dramatic increase in its rankings from 24 in 2008 to the present rank of 5 in the 2010 report, an increase of 19 positions. Dubai Trade works closely with World Bank in collecting the data for the “Doing Business” report. The comprehensive report on trade procedures in the UAE submitted by Dubai Trade’s stakeholders has played an important role in the World Bank’s evaluation, which is a result of the online service provider ’s adoption of a carefully designed, transparent procedure to collect data from the trading community.

    Dubai Trade also allied with the established committees of the Dubai Executive Council, Prime Minister’s Office, Dubai Competitiveness Council and Emirates Competitiveness Council to validate the report findings.

    In its 2009 report, World Bank described the trade process information submitted by the online service provider to be of “utmost quality, which is key to the success of the entire report.”

    In collaboration with its partners, such as DP World, Jafza and Dubai Customs, Dubai Trade has been keenly promoting the concept of online transactions through its www.dubaitrade.ae portal to minimise the number of documents required to process import and export transactions, which contributed saving time as well as enhancing efficiency.

    Mohammed Al Muallem, Senior Vice President and Managing Director of DP World, UAE Region, said: “The UAE’s remarkable achievement also bears the stamp of DP World’s committed efforts to enable easy business flow. Jebel Ali Port has a long history of comprehensive automation of operations. Our online initiatives such as e-payment and e-token services have greatly helped speedy business transactions. We are proud to be part of the country’s rise at a global level.”

    Juma Al Gaith, the Executive Director of Customs Development Division said:” “We are pleased that Dubai Customs is a part of this achievement by the UAE at the international trade level. This is the product of a real partnership between the public and private sectors for supporting the supply chain related to customs, ports and free zones and for the purposes of simplifying procedures as well as delivering a higher quality services that support the single window policy in a manner that enhances the country’s position as an attractive destination for world investments.”
  3. Invisible

    Invisible Admin Staff Member

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    Nairobi City, at Dusk. A Business Leaders' Confidence Index showed that investors considered Kenya unattractive./ Joan Pereruan

    Written by Allan Odhiambo - Business Daily

    The business environment in Kenya has changed for the worse in the past 12 months, a new report indicates, pointing to increasing difficulties in accessing permits and rampant corruption.

    The World Bank and its private sector-leaning arm, the International Finance Corporation (IFC), says doing business has become more difficult in Kenya causing the country to drop by 11 points in the global ranking of nations in terms of ease of doing business.

    Kenya is ranked in position 95 in the Doing Business 2010 report down from last year's position 84 – indicating that the government is losing its grip on the reform agenda it began four years ago to improve the business environment.

    The report could strike a major blow to Kenya's effort to prop up its flagging economy by attracting foreign direct investments to support sluggish activity that has left many business leaders cautious with spending to guard their profit margins.

    "The appetite for foreign investment is already low globally and a destination needs to be exceptionally attractive to win a portion of this little remaining portion," said Robert Shaw, an independent analyst.

    The latest findings present a major setback to the government, which has only recently received international recognition for driving reforms that significantly improved the business environment in the country.

    One such key area of reforms has been in the business licensing regime where some 315 licences were eliminated in 2007 and another 379 of the 1,325 identified as hindering growth of small businesses, simplified.

    The government last year cut down the number of licences required to set up a business from 300 to 16 and has since lined up an additional 337 business licences for review.

    Finance minister Uhuru Kenyatta has recently appointed a special committee to look into the permits and recommend whether they should be simplified or eliminated all together depending on their relevance.

    "It is for this reason that an electronic register of all valid business licenses in Kenya has been developed to ensure that licensing reforms are not undermined by creeping re-regulation," he said at the launch of the national electronic registry in Nairobi a fortnight ago.

    It has now emerged that these reform efforts have yet to bear fruit in the business environment, culminating to the World Bank and IFC's finding that the business landscape is not yet even in terms of regulation pointing to frustratingly high cost of landing construction permits.

    "Kenya increased the cost of getting construction permits," the World Bank says in the Doing Business 2010 report.

    Players in the construction industry agreed with the findings, saying the licensing reforms have failed to tackle bureaucracy that is the main obstacle to investment in the country.

    "The process of obtaining the construction permits is simply cumbersome, bureaucratic and without transparency and this boils down to bloated cost in terms of time and other fundamentals," said Mr Elijah Agevi, CEO Research Triangle Africa.

    Mr Agevi reckons that the situation has been worsened by a silent war between local authorities and the central government over who was in-charge of such permits.

    "It has become akin to giving with one hand and taking with another in that the central government tries to cut back on the number of licences but council keep coming up with resolutions that impose new conditions that unfortunately come at a cost," he said.

    Expiry of physical plans in key urban areas such as Nairobi have also left investors at the mercy of corrupt and bureaucratic officials in local authorities bent on taking advantage of the situation.

    "Only about 30 per cent of urban centres are currently planned, an indication of how people are reaping from the confusion through deliberate delays in approving projects," Mr Agevi said.

    Ibrahim Mwathane, a surveyor, said lengthy procedures of approving construction permits had put off many investors.

    The African Competitiveness Report 2009, published in June jointly by the World Bank, the African Development Bank (AfDB) and the World Economic Forum indicates that corruption and patronage have continued to damage Kenya's viability as an investment destination.

    "The country's public institutions continue to be assessed as highly inefficient, plagued by undue influence and high levels of corruption," the report says.

    Mr Shaw dismisses the regulatory reforms introduced by Treasury as lacking depth and only tending to concentrate on certain sectors of the economy while leaving out others.

    "There is need to coordinate reforms because we keep witnessing clashes in roles by regulators. A notable case has been the Kenya Bureau of Standards that from time to time finds itself at loggerheads with other agencies on regulatory matters," he said.

    World Bank's acting vice president for Financial and Private Sector Development, Penelope Brook said business regulation would play a critical role as economies step out of recession.

    "Business regulation can affect how well small and midsized firms cope with the crisis and seize opportunities when recovery begins," said Brook.

    "The quality of business regulation helps to determine how easy it is to reorganize troubled firms to help them survive difficult times, to rebuild when demand rebounds, and to get new businesses started."

    But despite the drop in competitiveness, the new survey acknowledged government efforts that resulted in improved access to credit following the implementation of a law on credit bureaus which provides a framework for regulated, reliable system of sharing credit information.

    Last year's amendment of the banking act compels banks to share divulge details about their non-performing loans to credit reference bureaus. But as of yet, CRBs themselves are yet to be licensed by the Central Bank of Kenya (CBK).

    Mrs Rose Detho, the supervision director at CBK, recently said they were working with the Kenya Bankers Association to put in place the necessary operational framework for credit information sharing.

    A Business Leaders' Confidence Index, separately released by research firm Synovate two weeks ago, also showed that investors considered Kenya unattractive.

    Those interviewed including executives from Nigeria, Ghana and Zambia reckon that Kenya looks unattractive compared to its peers Tanzania and Uganda.

    Kenya scored 53 points in a scale of 100 as an investment destination compared to Tanzania (54), Uganda (6 and Ghana (73).

    "The looming East African Community integration might benefit Uganda more, if we go by this index," said Mr George Waititu, the CEO at Synovate, arguing that the bureaucratic business regime and the heightened political risks helped lower Kenya's score.

    The five member countries of the EAC are expected to have an operational common market by January 2010, creating a market of 126 million people with a total GDP of $55 billion (Sh4.4 trillion).

    As Kenya and other EAC neighbours; Tanzania and Uganda faltered, the new World Bank survey report showed that Rwanda had defied the trend to record an impressive performance climbing to position 67 this year from 143 in last year.

    "Rwanda has steadily reformed its commercial laws and institutions since 2001. In the past year it introduced a new company law that simplified business start-up and strengthened minority shareholder protections," the survey pointed out.

    In Rwanda, entrepreneurs are now able to start a business in just two procedures that cumulatively last three days while related party transactions are subject to stricter approval and disclosure requirements. The survey further found that legal provisions determining directors' liability in case of prejudicial transactions between interested parties were also tightened.

    "Rwanda improved regulations to ease access to credit through two new laws. Its new secured transactions act facilitates secured lending by allowing a wider range of assets to be used as collateral.

    The law also makes out-of-court enforcement of movable collateral available to secured creditors and gives them absolute priority within bankruptcy," the World Bank said.
  4. Invisible

    Invisible Admin Staff Member

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  5. Invisible

    Invisible Admin Staff Member

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    Tanzania to Lose Sh400 Billion in World Bank Cash

    By Samuel Kamndaya And Mkinga Mkinga
    The Citizen
    Sept 11, 2009

    Tanzania stands to lose $312 million (about Sh405.6 billion) in soft loans from the World Bank in the next three years, having performed poorly on the key criteria for such lending, The Citizen can reveal.

    The country will see the money it badly needs slip through its fingers because of its dismal performance in the bank's annual Country Performance Rating (CPR).

    The setback also comes at a time when Tanzania has slipped five places in the World Bank's Doing Business due to its failure to initiate "business-friendly reforms".

    In the World Bank's just-released annual CPR, the country dropped seven places and now ranks below Ghana, Burkina Faso, and Madagascar.

    The CPR determines how much money a country can borrow from the World Bank.

    "The consequence of this drop in ranking is a reduction in the overall lending from the World Bank of $312 million (about Sh405.6 billion) for the period covering July 2008 to June 2011," an expert, familiar with workings of the bank, told The Citizen in Dar es Salaam yesterday.

    The World Bank compiles CPR by combining 17 criteria, including macro-economic management and debt policy, but also trade policies and the business environment.

    The rating covers gender, the quality of public administration and the performance of outstanding WB loans.

    Tanzania has dropped mainly due to a downgrading in financial management, transparency and accountability and corruption in the public sector.

    But contacted yesterday, Finance and Economic Affairs minister Mustafa Mkulo said he would only be able to comment after thoroughly reading the CPR report.

    "I have not read the report on the ratings so far. Please, give me time to read it before I make any comment," he told The Citizen by telephone.

    According to the report, Tanzania' s slip in rating has to a lesser degree been caused by changes in gender equity and exchange rate fluctuations.

    The country is now ranked 16th, down from the 10th position it held in the 2007 rating. Uganda improved by two places to 19th from 21st, while, Kenya dropped from the 27th to 30th place.

    "This ironically means that the ministry of Finance will have less access to soft loans from the WB. Instead of being able to borrow $2,157 million (over Sh2.8trillion) between 2008 and 2011, Tanzania will now be able to borrow $1,845 million (about Sh2.4 trillion). The money 'lost' will be re-allocated to other countries," the expert explained.

    But the country, which has yet to recover from being denied money that could have helped to finance the Budget, which donors supported by almost 40 per cent, is still in for more bad news.

    The 2010 Doing Business Report by the World Bank and the International Finance Corporation (IFC), which was launched on Wednesday in Washington, DC, places Tanzania among countries that have failed to ease business regulation.

    The country was ranked 131st, with zero reforms implemented between June last year and May this year. Just like Tanzania, Burundi, the poorest of the five East Africa Community partner states (the others are Kenya, Uganda, Tanzania and Rwanda), was at position 176, with zero reform being implemented during the same period.

    This is the second time Tanzania has performed poorly in the doing business report.

    In the same report in 2007, Tanzania ranked among the world's top 10 reformers. But last year, the country slipped three places, clinching the 127th position out of the 181 countries surveyed.

    The EAC bloc's economic giant, Kenya, ranked 95th after making only one reform over the past 12 months.

    Uganda, just like Kenya, managed to only one reform to ease business regulation, and was ranked 112th.

    Ironically, Rwanda, which is among the 48 poorest countries in the world, just like Tanzania, Uganda and Burundi, was ranked as the top global reformer in easing the business regulations based on the number and impact of reforms implemented between June last year and May this year.

    According to the report, Rwanda reformed seven out of the 10 business regulation areas measured.

    The 10 regulations, considered in the report, include starting a business, issuing permits, employing workers, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a business.

    Rwanda's global ranking jumped up from the 143rd to the 67th position this year.

    In the past one year, Kigali has introduced new laws that simplified business start-up and strengthened minority shareholder protections.

    A Rwandan entrepreneur now needs to go through just two procedures within three days to start a business. Imports and exports are more efficient, and transferring property takes less time, thanks to a re-organised registry and statutory time limits.

    "Investors have more protection, insolvency re-organisation has been streamlined, and a wider range of assets can be used as collateral to access credit," the report reads in part.

    Being the seventh in a series of Doing Business publications by the WB and the IFC, the 2010 report shows that Mauritius is the business-friendliest country in Africa. Others in the Top 10, include South Africa, Botswana, Namibia, Rwanda, Tunisia, Zambia, Ghana, Kenya, and Papua New Guinea.
  6. Lucchese DeCavalcante

    Lucchese DeCavalcante JF-Expert Member

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    Useful reports especially for 3rd world developing countries hope walengwa wanapitia hizi
  7. n00b

    n00b JF-Expert Member

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    Kudos Invisible,

    Very educative and well arranged. Wachumi tupe shule juu ya nini tutarajie kutokana na Report hii
  8. Buswelu

    Buswelu JF-Expert Member

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  9. mbasajohn

    mbasajohn JF-Expert Member

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    The report is very good and educative! But this is not gd report for Tanzania, the gvt deal much wth gvng incetives which enable investors to collaborate with official to exploit the people and forget to make reform in the sector management system like removing njoo kesho procedure which discourage serious and honest investor
  10. T

    Tunsume Member

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    It is very dissappointing that Tanzania has performed poorly despite all the resources that have been invested in various programmes for improving the business environemnt in the country. Programmes such as the Business Environment Strengtherning Tanzania (BEST); BSPS I-III should have helped us improve our scores in the World Bank Doing Business Assessment or rather maintain the previous score but not sliding dowanwards as is currently the case. Understandbly, the eradication and change of a culture of impunity, corruption, favouratism and nepotism that permeates Tanzania's public service require more than BEST and BSPS I-III, nevertherless some improvement should have been recorded . For sure, improvement in country governance including increased government accountability to citizens and transparency in the conduct of government business including recruitment of some of the very people who man these reform programmes are necessary if the country has to make any progress in economic reforms. All these conditions which are necessary for successful reforms require a new constitutional dispensation for Tanzania, one that will make public servants and politicians accountable to the people of Tanzania and not the ruling party or an imperial president and his/her appointees. It is saddening how bad governance is holding Tanzania back despite her natural endownments and amani na utulivu.
  11. The Quonquerer

    The Quonquerer JF-Expert Member

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