Doing business 2005

According to a recent report from the World Bank Group Slovakia and Colombia were the world's most successful investment climate reformers over the past year. The report also found that poor nations make it harder than rich nations for entrepreneurs to start, operate, or close a business. Also businesses in poor nations have less than half the property rights protections available to businesses in rich countries. This report covers about 145 countries. In rich countries the process for businesses to get started is much easier and faster than in poor countries. In rich countries, it takes a business six procedures, eight percent of income per capita, and twenty-seven days to get started. In poor countries, the same process takes eleven procedures, one hundred twenty-two percent of income per capita, and fifty-nine days for a business to get started. If poor countries could simplify their process for businesses to get started, they would be on the road to becoming a rich country. When a business is looking to get started in a country and they see the procedures and how long it would take to get started, they will chose the country with the shortest process. A quote from Michael Klein, World Bank/ IFC Vice President for Private Sector Development and IFC Chief Economist explains it all; "Poor countries that desperately need new enterprises and jobs risk falling even further behind rich ones who are simplifying regulation and making their investment climates more business friendly." Future investors in rich countries have access to teh ownership and financial informatoin of publicly listed companies while the investors in poor countries find it hard to gain access. The research report of Doing Business 2005 found that: (1) Businesses in poor countries face larger regulatory burdens than those in rich countries, (2) the payoffs from reform appear to be large and (3) Heavy regulation fan weak property rights exclude the poor-especially women and younger people-from doing business. Most of the reforms that took place focused on simplifying business entry and improving credit information systems. Africa was the country who reformed the least and had the most obstacles to doing business compared to all of the regions.

http://Doing Business 2005: Poor Nations Struggle To Reduce Red Tape For Business, Miss Large Growth Opportunities