DB2019 report web version

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1 DOING BUSINESS 2019 Training for Reform TRADING ACROSS BORDERS

2 © 2019 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and con- clusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625;25 e-mail: [email protected] Cover design: Corporate Visions, Inc.

3 DOING BUSINESS 2019 Training for Reform TRADING ACROSS BORDERS ECONOMIES 190 COMPARING BUSINESS REGULATION FOR DOMESTIC FIRMS IN A World Bank Group Flagship Report

4 DOING BUSINESS 2019 Resources on the website Doing Business Historical data Current features News on the Doing Business project Customized data sets since DB2004 http://www.doingbusiness.org/custom-query http://www.doingbusiness.org Law library Rankings Online collection of business laws and How economies rank—from 1 to 190 regulations relating to business http://www.doingbusiness.org/rankings http://www.doingbusiness.org/law-library Data Contributors All the data for 190 economies—topic rankings, indicator values, lists of More than 13,800 specialists in 190 regulatory procedures and details economies who participate in underlying indicators Doing Business http://www.doingbusiness.org/data http://www.doingbusiness.org/contributors /doing-business Reports Entrepreneurship data reports as well Access to Doing Business as subnational and regional reports, case Data on new business density (number studies and customized economy and of newly registered companies per 1,000 regional profiles working-age people) for 143 economies http://www.doingbusiness.org/reports http://www.doingbusiness.org/data /exploretopics/entrepreneurship Methodology The methodologies and research papers Ease of doing business score Doing Business underlying Data benchmarking 190 economies http://www.doingbusiness.org/methodology to the best regulatory practice and an ease of doing business score calculator http://www.doingbusiness.org/data Research /ease-of-doingbusiness-score Doing Business Abstracts of papers on topics and related policy issues http://www.doingbusiness.org/research Information on good practices Showing where the many good practices identified by Doing Business Doing Business reforms have been adopted Short summaries of DB2019 business http://www.doingbusiness.org/data regulation reforms and lists of reforms /good-practice since DB2006 http://www.doingbusiness.org/reforms

5 DOING BUSINESS 2019 Contents iv F oreword ƒ is the 16th in a Doing Business 2019 series of annual reports investigating Overview 1 the regulations that enhance business activity and those that constrain it. Doing Business About 22 presents quantitative Doing Business indicators on business regulation and the protection of property rights Case studies that can be compared across 190 Star 33 ting a Business and Registering Property: economies—from Afghanistan to Zimbabwe—and over time. The role of training in facilitating entrepreneurship and property rights Regulations affecting 11 areas of the ƒ Getting Electricit y: 39 life of a business are covered: starting Understanding the benefits of wiring regulation a business, dealing with construction permits, getting electricity, registering T rading Across Borders: 46 property, getting credit, protecting Training for trade facilitation minority investors, paying taxes, trading Enf 53 orcing Contracts and Resolving Insolvency: across borders, enforcing contracts, Training and efficiency in the judicial system resolving insolvency and labor market regulation. The labor market regulation data are not included in this year’s x: Labor Market Regulation: Anne 1 6 ranking on the ease of doing business. Trends from Doing Business data are current Doing Business 2019 Data in ƒ as of May 1, 2018. The indicators are eferences 67 R used to analyze economic outcomes 73 D ata Notes and identify what reforms of business regulation have worked, where and why. 12 6 Ease of Doing Busines s Score and Ease of Doing Business Ranking 133 Summaries of Doing Business Reforms in 2017/18 ountry Tables 2 C 15 216 A cknowledgments

6 DOING BUSINESS 2019 Foreword 23% of income per capita, compared to What gets measured gets done. 47 days and 76% of income per capita in 2006. Even more telling, today the Over the past 15 years, no report has average paid-in minimum capital that Doing illustrated this aphorism better than entrepreneurs must deposit is 6% of Business . Anchored in rigorous research income per capita, compared with 145% and methodology, Doing Business gathers of income per capita in 2006. The global detailed and objective data on 11 areas average time to prepare, file and pay - of business regulation, helping govern taxes has fallen from 324 hours in 2005 ments diagnose issues in administrative to 237 hours in 2017. procedures and correct them. The report measures complex regulatory pro- Sub-Saharan Africa has been the region cesses by zeroing in on their quantifiable with the highest number of reforms each components, which can be contested, Doing Business year since 2012. This year, compared—over time and across econo - captured a record 107 reforms across 40 mies—and, ultimately, reformed. economies in Sub-Saharan Africa, and the region’s private sector is feeling the Doing Business has inspired thousands of - impact of these improvements. The aver - articles published in peer-reviewed jour age time and cost to register a business, nals and created a platform for informed for example, has declined from 59 days debate about regulatory and institutional and 192% of income per capita in 2006 frameworks for economic development. to 23 days and 40% of income per capita Many Doing Business indicators have today. Furthermore, the average paid-in been incorporated into the indexes of minimum capital has fallen from 212% of other institutions, which has spurred income per capita to 11% of income per more debate about the ideal business capita in the same period. climate to drive inclusive, sustainable economic growth. This year’s 10 top improvers include a range of economies—large and small; Doing Business Since its launch in 2003, rich and poor—from five regions. The has inspired more than 3,500 reforms diversity shows that, regardless of in the 10 areas of business regulation background, any economy can improve measured by the report. This year, business regulation when the will of we observed a peak in reform activity policy makers is strong. With 13 reforms worldwide—128 economies undertook a between them, China and India—two record 314 reforms in 2017/18. Around of the world’s largest economies—are the world, registering a business now among the 10 top improvers. At the same takes an average of 20 days and costs

7 v FOREWORD entrepreneurship and a thriving private not necessarily follow. A ranking helps time Djibouti, a small economy, is also sector. Without them, we have no chance put the information in front of leaders on the list with six reforms. And with a to end extreme poverty and boost shared and makes it hard to ignore. The report total of 12 business regulatory reforms prosperity around the world. helped inspire the Human Capital Index between them, Afghanistan and Turkey (HCI), which we launched at the 2018 are on the list of 10 top improvers for the International institutions and research Doing Annual Meetings in Indonesia. Like first time in the report’s history. - centers can play a central role by build Business , the HCI is based on the idea that, ing a solid base of knowledge and data regardless of how complex an area may Perhaps most notably, four of the 10 to inform governments, researchers and be, with solid research and methodology top improvers—Afghanistan, Djibouti, Doing Business , the general public. With it can be measured. These types of data Côte d’Ivoire and Togo—are countries - the World Bank Group is fully commit promote reform, not only because they - suffering from fragility, conflict and vio ted to this mission. The reforms that the are easy to analyze, trace and act on, but lence. The World Bank Group and other report inspires will help people reach also because they increase transparency organizations have worked closely with their aspirations; drive inclusive, sustain- and accountability. these economies to address pressing able economic growth; and bring us one humanitarian and developmental needs, step closer to ending poverty on the face Governments have the enormous while also strengthening their legal and of the earth. - task of fostering an enabling environ economic institutions. ment for entrepreneurs and small and medium-size enterprises. Sound and Doing Business taught us that even with efficient business regulation is critical for comprehensive evidence, reforms do Jim Yong Kim President World Bank Group

8 DOING BUSINESS 2019 Overview captured a record 314 Doing Business ƒ regulatory reforms between June 2, 2017, and May 1, 2018. Worldwide, An economy cannot thrive without a healthy private sector. When local 128 economies introduced substantial businesses flourish, they create jobs and generate income that can be 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 ƒ The economies with the most notable improvement in Doing Business 2019 are and small firms the opportunity to grow, innovate and, when applicable, Afghanistan, Djibouti, China, Azerbaijan, move from the informal to the formal sector of an economy. Like its 15 India, Togo, Kenya, Côte d’Ivoire, Turkey Doing Business 2019 predecessors, continues to enable regulators to assess and Rwanda. and benchmark their domestic business regulatory environments. One-third of all business regulatory reforms ƒ recorded by were in the Doing Business 2019 minority investors, paying taxes, Doing Business advocates for both regula- economies of Sub-Saharan Africa. With a total of 107 reforms, Sub-Saharan Africa engaging in international trade, enforcing tory quality and efficiency. It is important once again has a record number this year. contracts and resolving insolvency. to have effective rules in place that are collects and publishes Doing Business easy to follow and understand. To realize ƒ The BRIC economies—Brazil, the Russian data on labor market regulation with a economic gains, reduce corruption and Federation, India and China—introduced a focus on the flexibility of employment encourage SMEs to flourish, unnecessary total of 21 reforms, with getting electricity regulation as well as several aspects red tape should be eliminated. However, and trading across borders the most of job quality. However, this regulatory specific safeguards must be put in common areas of improvement. area does not constitute part of the ease place to ensure high-quality business ƒ The 10 top economies in the ease of doing of doing business ranking (figure 1.1). regulatory processes; efficiency alone business ranking share common features of For more details on the Doing Business is not enough for regulation to func- regulatory efficiency and quality, including indicators, see the data notes at http:// tion well. What use is it when one can mandatory inspections during construction, www.doingbusiness.org. transfer property in just a few days and automated tools used by distribution at a low cost, but the property registry utilities to restore service during power - Each of the measured business regula contains unreliable information with outages, strong safeguards available to tory areas is important to nascent and incomplete geographic coverage? Doing creditors in insolvency proceedings and automated specialized commercial courts. existing entrepreneurs. However, as exposes cases with evident Business data show, SME owners Doing Business discrepancies between regulatory quality ƒ Training opportunities for service providers face drastically different realities across and efficiency, signaling to regulators and users are positively associated with economies as they set up and operate what needs to be reformed. the ease of doing business score. Similarly, their businesses. An entrepreneur in increased public-private communication on Uganda, for example, will spend nearly Doing Business 2019 measures the legislative changes and processes affecting a month and undertake 13 procedures processes for business incorporation, SMEs are associated with more reforms - to set up a new company. The entre getting a building permit, obtaining an and better performance on the Doing indicators. Business preneur will then be required to manage electricity connection, transferring prop - another 18 interactions with different erty, getting access to credit, protecting

9 DOING BUSINESS 2019 2 ? FIGURE 1.1 What is measured in Doing Business Getting a Starting a location business Labor market Dealing with regulation construction Starting a permits business Getting electricity Resolving insolvency Registering property Enforcing contracts Getting Operating in a credit secure business Protecting Accessing Paying minority environment taxes finance investors Trading across borders Dealing with day-to-day operations database. Source: Doing Business Labor market regulation is not included in the ease of doing business ranking. Note: small and medium-size companies and agencies and wait an additional four does not claim to cover Doing Business national competitiveness. Evidence from months to obtain a building permit. all the areas pertinent to private sector economic literature corroborates the development and growth. The report has Once the construction of the warehouse economic relevance and importance of is completed, the entrepreneur will need Doing Business a set of clear limitations; Doing Business the areas measured by . In data alone are not sufficient to assess to wait another two months and cash the case of the starting a business indi- the overall competitiveness or foreign out 7,513.6% of income per capita to cator set alone, more than 300 research investment prospects of an economy. obtain a connection to the electrical articles have been published in the does not assess market Doing Business grid. In contrast, a Danish entrepreneur top 100 academic journals since 2003 can expect to be able to register a new - size, the soundness and depth of finan assessing how the regulatory environ- cial markets, macroeconomic conditions, business in just 3.5 days, complete all ment for entry affects a wide range of required legal procedures to build a ware foreign investment, security or political - economic outcomes such as productivity, house through seven steps in slightly stability. However, the indi- Doing Business growth, employment and informality. cators do offer insights for policy makers over two months and secure a reliable Recent research shows the positive electricity connection for about 100% to identify areas for reform and improve effects of improved business regulation. of local income per capita. Differences the local business environment. For Fewer procedures and lower levels of in regulatory and institutional quality more information on what is measured - minimum capital, for example, are posi can affect how many new businesses and what is not, see the chapter About tively and significantly associated with are created and the dynamism of the Doing Business . the process of starting a business. Where private sector, which generates jobs and procedures are more complex or unclear, economic opportunities. In Denmark 3 the likelihood of corruption is higher. the average number of newly registered WHAT ARE THE BENEFITS companies is eight per 1,000 workers Another study discusses the benefits to OF IMPROVED BUSINESS per year, whereas in Uganda this figure companies of formal registration, such REGULATION? is less than one new company per 1,000 as greater access to new equipment 1 workers per year. and a larger scale of operations, which includes 11 indicator sets Many factors explain Doing Business can lead to increased competitiveness that measure aspects of business regu this difference, including the level of - 2 4 and productivity. lation which are important to domestic business regulation.

10 3 OVERVIEW 9 reaping the growth benefits of reform. - methodology, including firm entry and In the context of construction permit Ample literature on the importance of ting, simplicity and transparency are labor market regulation, trade regula - Doing property rights finds a strong association key in allowing businesses to expand tions and cost and tax regulations. and build new and safe infrastruc- also presented an extended between investment, access to finance, Business 2016 10 review of the literature published in 70 top productivity and economic growth. ture. Research shows that regulatory academic law journals focusing on four burdens often pose substantial obstacles sets of indicators: enforcing contracts, for investors. Discrepancies among Another area measured by Doing existing laws, for example, can lead to getting credit (legal rights), protecting is the protection of minority Business - minority investors and resolving insol unnecessary and even contradictory investors. Greater protection helps 5 17 compliance requirements. vency. foster trust and confidence and, in turn, Furthermore, For further research insights, spurs greater access to finance for entre- lengthy processing times for required updated annually, see the chapter About 11 preneurs. Doing Business approvals—as is the case in Ghana—can and the Doing Business The indicator set focuses website at http://www.doingbusiness drive up costs and spur the development on how policy makers mitigate the risk .org/research. of an informal construction sector, where that corporate executives, directors and falsified construction permits result in - majority shareholders will use their posi 6 unsafe infrastructure. tion to advance their own interests at the expense of the company and other WHERE IS BUSINESS shareholders. Clear rules, robust rights REGULATION BETTER? Electricity is a necessity for any business and increased transparency are some to function properly and expand. It is also of the regulatory instruments at their - an important element in the competitive Doing Business benchmarks aspects disposal. Corporate governance is a key ness and strengthening of human capital of business regulation and practice 12 determinant of investment efficiency, in an economy. Research data indicate using specific case studies with stan - that higher electricity costs tend to dardized assumptions. Based on an while shareholders’ ability to sue and have an adverse impact on businesses. economy’s performance in each of hold directors accountable are essential 13 As prices rise, firms shift their focus the 11 measured areas, the report checks and balances. to less electricity-intensive production scores the efficiency and quality of the processes, resulting in reduced output business environment. This approach Finally, the regulation of labor markets 7 and productivity. facilitates the comparison of regula- is critical as policy makers work to Equally important is tion and practice across economies create more and better jobs for their the reliability of a power connection. and allows for changes to be tracked citizens. Labor regulation is also an area Recent research finds that power outages over time. The ease of doing business of interest to researchers as they strive and deficient power infrastructure in score (box 1.1) serves as the basis for to assess the optimal balance between Sub-Saharan Africa had a measurable ranking economies on their business adequate worker protections and labor negative impact on economic growth 8 environment: to obtain the ranking, market efficiency. In India, for example, over the period 1995−2007. economies are sorted by their scores. research shows that when faced with The ease of doing business score shows restrictive labor laws, firms choose to Similarly, clearly defined regulation an economy’s absolute position to the circumvent such legislation by hiring and equal access to property rights are best regulatory practice, while the ease workers indirectly through contrac - essential for enabling businesses to of doing business ranking is an indica- tors, especially in times of economic expand their operations. If governments 14 tion of an economy’s position relative uncertainty. - do not put in place adequate land owner Another study on foreign to that of other economies. ship protections and leave investors open investment and the organization of to land disputes or property seizures, global firms suggests that firms consider The economies that rank highest in stakeholders would be disinclined to put the strength of worker bargaining power 15 the ease of doing business (table 1.1) money into land and property develop - when making sourcing decisions. are those that have consistently well- ment projects. A recent study exploring designed business regulation or whose whether political institutions have an Doing Business 2014 presented a regulatory environments have thrived impact on the effectiveness of economic synthesis of the fast-growing literature thanks to comprehensive reform over reforms in promoting growth finds that published in top-ranking economic jour - the years. The top three economies financial and trade reforms are more data for analysis Doing Business nals using 16 this year—New Zealand, Singapore effective in developing economies with or motivation. The chapter reviews the and Denmark—exemplify a business- sound property rights. This evidence different estimation methods used in friendly environment. Meanwhile, suggests that sufficiently developed economic analysis and summarizes the Mauritius, which joins the group of property rights may be a precondition for recent research by area of study and

11 DOING BUSINESS 2019 4 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 Doing across the entire sample of the same 41 indicators for 10 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. insolvency proceedings. Court automa- and the Middle East and North Africa. top 20 economies this year (the only tion is prevalent, and judgments are Except for low-income economies, all Sub-Saharan African economy to do enforced twice as fast on average (95.6 income groups are represented. The so), has reformed its business environ- days) than in the remaining economies regional diversity and varying income ment methodically over time. Indeed, (200 days). These economies also have levels among the top 20 economies over the past decade Mauritius has strong disclosure requirements in place underscore the point that any economy reformed more than once in almost 18 to prevent the misuse of corporate can make it to the top, as long as it has Doing Business. all areas measured by assets by directors for personal gain. few bureaucratic hurdles and strong Following seven reforms in the area of Most mandate that a shareholder must laws and regulation. The efficiency and Doing property registration captured by immediately disclose transactions—as quality of regulation are what matter since 2005, for example, the Business well as any conflicts of interest— most for a good performance in the ease time needed to register property has to other shareholders. To date, no of doing business ranking. decreased more than 12 times; the time - economy has reached the best regu needed for business incorporation has latory performance on all indicators; The top 20 economies share a number decreased almost 10 times as a result 19 every economy can progress further by of international good practices. In the of four reforms in starting a business. learning from the experience of others. area of starting a business, 13 of these economies have at least one procedure A continuous and focused reform More trends emerge from the list of that can be completed online in 0.5 - agenda keeps an economy competi the top 50 economies. Regionally, days. The electricity distribution utilities tive and vigilant, as others also keep almost 60% of the top 50 economies in all but one of the top 20 economies improving. Two economies that enter are from the OECD high-income group, use automated tools, allowing for faster, the top 20 this year—the United Arab followed by Europe and Central Asia more efficient and more secure restora - - Emirates and Malaysia—have main (24%) and East Asia and the Pacific tion of service during power outages. tained such a reform momentum. The (12%). South Asia and Latin America In the areas of construction and land United Arab Emirates is the highest- and the Caribbean are the two regions administration, in all top 20 economies ranking economy in the Middle East absent from the top 50 ranking. Upper- mandatory inspections are always done and North Africa region, with reforms middle-income economies represent in practice during the construction of captured in four areas. Six reforms almost 26% of the top 50 economies. a warehouse, and the majority have in Malaysia were measured by Doing Georgia, Kosovo and Moldova are the comprehensive geographic coverage. , resulting in the second highest Business three lower-middle-income economies The quality of legal infrastructure and regional improvement in the ease of on the list and Rwanda is the only low- the strength of legal institutions is doing business score. income economy. There is, however, a also robust. In all top 20 economies, large variation between regions’ regula- for example, the insolvency framework Twelve of the top 20 economies are tory efficiency and regulatory quality stipulates that a creditor has the right from the OECD high-income group; four (figure 1.2). While four of the 10 top to object to decisions accepting or are from East Asia and the Pacific, two improvers in Doing Business 2019 are rejecting creditors’ claims, providing are from Europe and Central Asia and Sub-Saharan African economies, the strong safeguards to creditors in one each is from Sub-Saharan Africa

12 5 OVERVIEW Ease of doing business ranking TABLE 1.1 EODB EODB EODB EODB score EODB score EODB score score Rank Economy Rank score change Economy change Rank Economy score change 0.00 Colombia 69.24 +0.20 129 Barbados 56.78 86.59 0.00 1 New Zealand 65 56.35 66 69.01 0.00 130 St. Vincent and the Grenadines Luxembourg +0.01 85.24 Singapore 2 +0.27 +0.59 67 Costa Rica 68.89 -0.47 131 Cabo Verde 3 +0.02 Denmark 84.64 55.95 84.22 68 Peru 68.83 +0.56 132 Nicaragua 55.64 +0.37 4 Hong Kong SAR, China +0.04 -0.01 133 Vietnam 68.36 +1.59 84.14 Palau 55.59 +0.01 5 Korea, Rep. 69 Guyana 83.28 Kyrgyz Republic 68.33 +2.57 134 70 55.57 -1.21 Georgia 6 +0.48 82.95 7 71 Ukraine 68.25 +0.94 135 Mozambique 55.53 +1.78 Norway +0.25 United States -0.01 72 Greece 68.08 -0.12 136 Pakistan 55.31 +2.53 8 82.75 82.65 +0.33 Indonesia 67.96 +1.42 137 Togo 55.20 +6.32 9 United Kingdom 73 Cambodia 81.55 Mongolia 67.74 +0.27 138 74 54.80 +0.41 Macedonia, FYR 10 +0.32 81.28 +2.37 75 Jamaica 67.47 +0.55 139 Maldives 54.43 +0.10 11 United Arab Emirates Sweden 81.27 76 Uzbekistan 67.40 +1.08 140 St. Kitts and Nevis 54.36 +0.01 12 0.00 80.90 141 77 India 67.23 +6.63 Taiwan, China Senegal 54.15 +0.37 13 +0.24 142 Lithuania 78 Oman 67.19 -0.02 +0.29 Lebanon 54.04 +0.07 14 80.83 Malaysia 80.60 +2.57 79 Panama 66.12 15 143 Niger 53.72 +1.24 +0.41 16 80.50 +0.01 80 Tunisia 66.11 +1.51 144 Tanzania 53.63 +0.34 Estonia Finland 80.35 81 Bhutan 66.08 +0.20 145 Mali 53.50 +0.23 17 +0.05 80.13 -0.01 South Africa 66.03 +1.37 146 Nigeria 52.89 +1.37 18 Australia 82 Grenada 79.59 Qatar 65.89 +0.64 147 83 52.71 +0.07 Latvia 19 +0.33 79.58 +1.29 84 Malta 65.43 +0.28 148 Mauritania 51.99 +0.92 20 Mauritius Iceland 79.35 85 El Salvador 65.41 +0.21 149 Gambia, The 51.72 +0.23 21 +0.05 79.26 150 86 Botswana 65.40 +0.46 Canada Marshall Islands 51.62 +0.01 22 +0.38 151 Ireland 87 Zambia 65.08 +1.48 -0.51 Burkina Faso 51.57 +0.12 23 78.91 Germany 78.90 0.00 88 San Marino 64.74 24 152 Guinea 51.51 +2.02 +2.27 25 78.64 +7.10 89 Bosnia and Herzegovina 63.82 +0.27 153 Benin 51.42 +0.13 Azerbaijan Austria 78.57 90 Samoa 63.77 +0.01 154 Lao PDR 51.26 +0.11 26 +0.03 155 Thailand 91 Tonga 63.59 +0.03 +1.06 Zimbabwe 50.44 +1.92 27 78.45 Kazakhstan 77.89 +0.73 92 Saudi Arabia 63.50 +1.62 156 Bolivia 50.32 +0.15 28 29 Rwanda +4.15 93 St. Lucia 63.02 +0.06 157 Algeria 49.65 +2.06 77.88 Spain -0.21 +0.07 94 Vanuatu 62.87 30 158 Kiribati 49.07 +0.33 77.68 +0.34 31 +0.61 95 Uruguay 62.60 77.37 159 Ethiopia 49.06 +0.91 Russian Federation 32 France 77.29 +0.99 96 Seychelles 62.41 -0.01 160 Micronesia, Fed. Sts. 48.99 0.00 33 Poland -0.36 97 Kuwait 62.20 +0.75 161 Madagascar 48.89 +0.71 76.95 Portugal 76.55 98 Guatemala 62.17 +1.01 162 Sudan 48.84 +3.75 34 -0.07 76.10 +0.05 Djibouti 62.02 +8.87 163 Sierra Leone 48.74 +0.15 35 Czech Republic 99 Comoros 76.04 Sri Lanka 61.22 +1.80 164 100 48.66 +0.14 Netherlands 36 +0.01 75.77 +0.72 101 Fiji 61.15 +0.04 165 Suriname 48.05 -0.05 37 Belarus Switzerland 75.69 102 Dominican Republic 61.12 +0.55 166 Cameroon 47.78 +0.83 38 +0.01 75.65 167 103 Dominica 61.07 +0.04 Japan Afghanistan 47.77 +10.64 39 +0.05 168 Slovenia 104 Jordan 60.98 +1.42 +0.02 Burundi 47.41 +0.73 40 75.61 Armenia 75.37 +2.06 105 Trinidad and Tobago 60.81 41 169 Gabon 45.58 -0.23 -0.12 42 75.17 +0.29 106 Lesotho 60.60 +0.19 170 São Tomé and Príncipe 45.14 +0.30 Slovak Republic Turkey 74.33 107 Namibia 60.53 +0.24 171 Iraq 44.72 +0.04 43 +4.34 171 Kosovo 108 Papua New Guinea 60.12 +1.19 +0.44 Myanmar 44.72 +0.51 44 74.15 Belgium 73.95 +2.24 109 Brazil 60.01 +2.96 173 Angola 43.86 +2.16 45 46 China +8.64 110 Nepal 59.63 -0.32 174 Liberia 43.51 -0.04 73.64 Moldova +0.84 +0.38 111 Malawi 59.59 47 175 Guinea-Bissau 42.85 +0.27 73.54 +0.06 48 +0.17 112 Antigua and Barbuda 59.48 73.49 176 Bangladesh 41.97 +0.91 Serbia 49 Israel 73.23 +0.64 113 Paraguay 59.40 +0.41 177 Equatorial Guinea 41.94 +0.28 50 Montenegro +0.20 114 Ghana 59.22 +2.06 178 Timor-Leste 41.60 +1.71 72.73 Italy 72.56 115 Solomon Islands 59.17 +0.33 179 Syrian Arab Republic 41.57 +0.02 51 -0.15 180 Romania 116 West Bank and Gaza 59.11 +0.39 -0.53 Congo, Rep. 39.83 +0.36 52 72.30 Hungary 72.28 +0.34 117 Eswatini 58.95 +0.13 181 Chad 39.36 +1.15 53 54 Mexico -0.18 118 Bahamas, The 58.90 +0.77 182 Haiti 38.52 +0.11 72.09 Brunei Darussalam +0.87 +1.85 119 Argentina 58.80 55 183 Central African Republic 36.90 +2.67 72.03 +2.74 56 +0.37 120 Egypt, Arab Rep. 58.56 71.81 184 Congo, Dem. Rep. 36.85 +0.67 Chile 57 Cyprus 71.71 +0.44 121 Honduras 58.22 +0.09 185 South Sudan 35.34 +2.04 58 Croatia +0.34 122 Côte d'Ivoire 58.00 +4.94 186 Libya 33.44 +0.23 71.40 Bulgaria +0.12 +0.11 123 Ecuador 57.94 59 187 Yemen, Rep. 32.41 -0.59 71.24 +1.36 60 +2.46 124 Philippines 57.68 71.02 188 Venezuela, RB 30.61 -0.24 Morocco 61 Kenya 70.31 +5.25 125 Belize 57.13 +0.02 189 Eritrea 23.07 +0.13 +0.08 62 +1.82 126 Tajikistan 57.11 69.85 190 Somalia 20.04 +0.06 Bahrain 63 Albania 69.51 +0.50 127 Uganda 57.06 +0.65 64 69.46 +0.20 128 Iran, Islamic Rep. 56.98 +2.34 Puerto Rico (U.S.) 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.

13 DOING BUSINESS 2019 6 Gaps between regulatory efficiency and regulatory quality are observed across all regions FIGURE 1.2 Average ease of doing business score (0–100) 100 80 60 40 20 0 Europe & East Asia OECD high income Middle East Sub-Saharan Africa Latin America South Asia & Caribbean & Pacific Central Asia & North Africa Regulatory quality Regulatory efficiency Source: Doing Business database. 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 Note: 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. latter economies share many of the makers to learn from the experience of region has room for further progress: its good practices found in OECD high- their neighbors. In the area of getting average ease of doing business score income economies, including reliable credit, for example, officials in Angola for regulatory quality is less than 40, secured transaction laws and robust (ranked 184) and Eritrea (186) could compared to 73 in OECD high-income credit information sharing available learn from the experience of Rwanda economies. Similarly, the average ease through credit bureaus or registries. and Zambia (both ranked 3). The two of doing business score for regulatory 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 0 the gap between Sub-Saharan African Protecting Getting Resolving Starting a Getting Dealing Registering Trading Paying Enforcing economies and the best performers credit minority across business electricity contracts with taxes property insolvency investors construction borders is 44 points. permits OECD high income Sub-Saharan Africa Substantial variations in performance among Sub-Saharan African econo- Source: Doing Business database. mies present an opportunity for policy

14 7 OVERVIEW 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- The majority of these reforms have been economy—ranks 25 for paying taxes tating the continuation of the debtor’s made in low- and lower-middle-income but 112 for getting credit. business during insolvency proceedings, economies. In this year’s report, 73% of providing for equal treatment of credi- low-income economies and 85% of lower- If the process of starting a business is tors in reorganization proceedings and middle-income economies reformed in at already relatively easy, but the lack of a granting creditors greater participation least one area. Such reform dynamism credit information system or a collateral in the insolvency proceedings, Kenya explains the significant improvements in register can make it difficult for firms progressed toward the best regulatory business regulation that low- and lower- to obtain credit, entrepreneurs will face practice by 14 points in the score for middle-income economies have achieved hurdles that could negatively impact the resolving insolvency. compared to upper-middle-income and wider economy as they struggle to meet high-income economies (figure 1.5). their potential or compete. The opposite Variation across areas of regulation, as can also be true—an economy can have measured by the ease of doing business The three regions which have improved a high-quality land administration system ranking, is also frequently observed the most since 2004 are Europe and and reliable credit reporting mechanisms, across all economies, regardless of Central Asia, Sub-Saharan Africa and - but cumbersome business incorpora income level. Among high-income the Middle East and North Africa. tion processes. As a result, firms may economies, for example, New Zealand - Together, these regions have intro be discouraged from formal entry, with ranks 1 for starting a business, but 21 duced more reforms than the other four negative consequences for the economy for enforcing contracts. Rwanda, a regions combined. With 905 reforms, including lower rates of formal employ - low-income economy, ranks 2 for regis- Sub-Saharan Africa holds the record ment and tax collection. tering property and 3 for getting credit, for the highest total number of reforms but 88 for trading across borders and 51 captured by over the Doing Business Doing Business 2005 Since more than for starting a business. China is ranked past 15 years. Moreover, the region also 3,500 business regulatory reforms 6 for enforcing contracts but 28 for recorded the highest number of reforms have been implemented across the 190 starting a business, while Morocco— in 11 of those 15 years. For the same . Doing Business economies measured by classified as a lower-middle-income 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 Enforcing Getting Paying Starting a Trading Registering Dealing with Protecting Getting Resolving credit construction electricity insolvency minority property business taxes contracts across borders investors permits Source: Doing Business database.

15 DOING BUSINESS 2019 8 Low- and lower-middle-income economies have made bigger improvements over time FIGURE 1.5 Average year-on-year improvement in ease of doing business score 20 15 10 5 0 Lower middle income Low income Upper middle income High income DB2007 DB2009 DB2006 DB2012 DB2011 DB2010 DB2008 DB2005 DB2017 DB2019 DB2018 DB2016 DB2015 DB2013 DB2014 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. index; today their score is almost 6— period, Europe and Central Asia has, when economies adopt business-friendly 21 within 0.4 points of the high-income regulation. however, maintained the highest average economy average. Although this shows number of reforms per economy per year a substantial gradual convergence, not making it easier to do business (2.03), all areas have experienced the same pace followed by Sub-Saharan Africa (1.26) WHICH ECONOMIES of improvement. Since 2006 low-income and South Asia (1.23). IMPROVED THE MOST IN economies have reduced the time to IN 2017/18? DOING BUSINESS pay taxes, for example, by only 29 hours Slowly, but consistently, the economies on average, compared to a reduction most in need of business regulatory Governments worldwide invest substan- of 57 hours on average—nearly twice reform are adopting global good practices tial effort in changing business regulatory as much—by high-income economies and converging toward the best regula- frameworks to make doing business (which had 100-hours faster head start tory performance. In 2006 the average easier for entrepreneurs. Such efforts on average to begin with). time to start a business in Sub-Saharan can range from straightforward changes African economies was 59 days; today (for example, reducing the fees for Change takes time, especially when the the average is 23 days, significantly closer obtaining a building permit in Cambodia starting point is characterized by weak to the high-income economy average or publishing fee schedules and service institutions and costly, cumbersome of 9 days (figure 1.6). Similarly, the gap standards for property transfer in Tunisia) processes. However, the reform trends - between low- and high-income econo to substantial revisions of legislation (the suggest a captured by Doing Business mies on the extent of disclosure index Kyrgyz Republic’s new civil procedure 20 strong impetus for change in low- and has narrowed over the past decade. code) or the establishment of new insti - In lower-middle-income economies. Recent tutions (such as specialized commercial 2009 low-income economies averaged a research shows that poverty is reduced benches in Ethiopia or intermediate score of 4.6 on the extent of disclosure

16 9 OVERVIEW FIGURE 1.6 Areas where economies are converging and areas where they are not Average cost to obtain an electricity connection Average time to start a business (% of income per capita) (days) 7,000 70 60 6,000 50 5,000 40 4,000 30 3,000 20 2,000 10 1,000 0 0 DB2012 DB2017 DB2008 DB2007 DB2010 DB2009 DB2006 DB2011 DB2016 DB2015 DB2018 DB2019 DB2018 DB2019 DB2015 DB2014 DB2014 DB2013 DB2013 DB2012 DB2010 DB2016 DB2017 DB2011 OECD high income Sub-Saharan Africa Sub-Saharan Africa OECD high income Average time to prepare, file returns Average extent of disclosure index in and pay taxes (hours) protecting minority investors (0–10) 7 350 6 300 5 250 4 200 3 150 2 100 1 50 0 0 DB2019 DB2008 DB2010 DB2009 DB2012 DB2011 DB2007 DB2018 DB2006 DB2017 DB2015 DB2016 DB2013 DB2009 DB2010 DB2011 DB2012 DB2013 DB2014 DB2015 DB2019 DB2018 DB2017 DB2016 DB2014 High income Low income High income Low income Source: Doing Business database. Doing Business 2006 . The upper right-hand side graph includes 183 economies Note: The upper left-hand side graph includes 174 economies where data is available back to where data is available back to Doing Business 2009 Doing Business 2010 . The lower left-hand side graph includes 182 economies where data is available back to . The lower right-hand side graph includes 174 economies where data is available back to . Doing Business 2006 - regulatory reforms improving the busi identifies changes Doing Business how customs posts in El Salvador). While ness climate (see table 1A.1 at the end as a reform, see the data notes at http:// the variety of activities that can be of this chapter). The previous record www.doingbusiness.org. undertaken to improve the ease of doing was set by , which Doing Business 2017 business is extensive, they are all aimed captured 290 reforms implemented observed In the past year, Doing Business at streamlining processes, increasing by 137 economies (figure 1.7). Almost a peaking of reform activity worldwide. procedural and legislative efficiency and one-third of all reforms recorded in From June 2, 2017, to May 1, 2018, 128 improving the accessibility and transpar - 2017/18 were implemented in two economies implemented a record 314 ency of information. For more details on

17 10 DOING BUSINESS 2019 FIGURE 1.7 Doing Business 2019 captured a record 314 reforms in 128 economies Reforms captured by year (number) Doing Business 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 DB2008 DB2009 DB2010 DB2011 DB2012 DB2013 DB2014 DB2015 DB2016 DB2017 DB2018 DB2019 database. Doing Business Source: . The report’s geographical coverage has gradually expanded from 178 economies in Note: The getting electricity indicator set was added in Doing Business 2012 Doing Business 2008 . , 183 in Doing Business 2009 Doing Business 2010 , 185 in to 181 in , 189 in Doing Business 2014 and 190 economies since Doing Business 2017 Doing Business 2013 site inspections or bank certificates prior areas—starting a business and enforcing starting a business easier by reducing the to company incorporation. By allowing procedures, time or cost associated with Doing Business contracts (table 1.2). voluntary value added tax registration also recorded the lowest number company incorporation. Twenty-three of 2019 at the time of business incorporation, of changes to making it more burden- the 50 economies that reformed in this Georgia reduced its relative gap to the area did so by simplifying preregistration some for businesses to operate since 22 best regulatory performance on starting Doing Business 2007 . or registration formalities. Such changes a business the most in 2017/18. - can vary from integrating multiple appli Previously, entrepreneurs had to make cation forms into a single registration In 2017/18, one-quarter of economies a separate visit to the Revenue Service template to abolishing requirements for measured by Doing Business made for value added tax registration after company registration. Georgia also enhanced its existing one-stop shop for TABLE 1.2 Starting a business continues to be the most popular area of reform in 2017/18 business incorporation, allowing entre - preneurs to start a company through Number of reforms Region(s) with the highest share of Area of reform in 2017/18 reformers in 2017/18 a single procedure. 50 East Asia & Pacific Starting a business The second highest number of busi- Europe & Central Asia 31 Dealing with construction permits ness regulatory reforms (49) captured Getting electricity East Asia & Pacific 26 is in the area Doing Business 2019 by Sub-Saharan Africa Registering property 28 of enforcing contracts. This uptick in Getting credit 29 Middle East & North Africa and South Asia reform can be attributed mainly to the Middle East & North Africa 23 Protecting minority investors achievements of the 17 member states of South Asia 31 Paying taxes the Organization for the Harmonization of Business Law in Africa, known by its Trading across borders 33 Europe & Central Asia - French acronym OHADA. The organiza Enforcing contracts Sub-Saharan Africa 49 tion adopted a Uniform Act on Mediation Resolving insolvency 14 South Asia in 2017 (filling a legislative void that Source: Doing Business database. existed in most OHADA member Note: The labor market regulation indicators also recorded 19 regulatory changes in Doing Business 2019 . These changes are not included in the total reform count. states) which introduced mediation as

18 11 OVERVIEW Caribbean (which is the fourth highest economies in Sub-Saharan Africa. Both an amicable mode of dispute settle - scoring region) had the second lowest regions captured reforms in every topic ment. The OHADA Uniform Act adopts share of reformers with 56% of econo - Doing Business . Indeed, measured by a broad scope of application by covering mies implementing reforms in 2017/18. reforms undertaken by economies in conventional and judicial mediation and Naturally, economies in these two these two regions represent half of all sets out the guiding principles for the regions had the lowest average increase reforms recorded globally. In 2017/18 conduct of mediation. in their ease of doing business score Sub-Saharan Africa implemented the in 2017/18: +0.16 points on average in Doing most reforms ever recorded by Doing Business also recorded a historic OECD high-income economies (which is and the highest total number of Business number of reforms (26) in the area the highest performing region and there - reforming economies. of getting electricity. East Asia and fore has little room for improvement) the Pacific has the highest share of and +0.22 points on average in Latin On average, Sub-Saharan African reformers, with 28% of economies from America and the Caribbean. economies increased their ease of this region improving on the getting doing business scores by 0.99 points electricity indicators. Sub-Saharan Worldwide, the 10 economies showing this year, slightly below the average African economies recorded eight the most notable improvement in - improvement of 1.00 point for econo reforms in this area, the highest number Doing Business performance on the mies in Europe and Central Asia. With of any region worldwide. indicators in 2017/18 are Afghanistan, an increase of 2.73 points on average, Djibouti, China, Azerbaijan, India, South Asian economies recorded the The economies of Europe and Central Togo, Kenya, Côte d’Ivoire, Turkey and largest score improvement. This achieve - Asia and Sub-Saharan Africa were the Rwanda (table 1.3). Together, these ment is not surprising as the region has most active in reforming their regula- economies implemented a total of 62 the highest average number of reforms tory frameworks in 2017/18, with four business regulatory reforms across per reforming economy—a total of 19 of every five economies substantially . all areas measured by Doing Business reforms were implemented by five of improving business regulations in both - Overall, the 10 top improvers imple the eight economies that comprise the regions. Nineteen economies in Europe mented the most regulatory reforms region. The lowest share of reformers and Central Asia implemented a total in the areas of starting a business, was observed in the OECD high-income of 54 regulatory reforms improving getting credit and paying taxes (with group where 16 of 34 economies imple - the business environment. A total of eight reforms in each area). This very mented a total of 23 reforms (or 7% of 107 business regulatory reforms were diverse set of economies includes the global count). Latin America and the across 40 recorded by Doing Business TABLE 1.3 T Doing Business in 2017/18 he 10 economies improving the most across three or more areas measured by Reforms making it easier to do business Change Ease of in ease Dealing doing of doing with Protecting Trading business business Starting a Registering construction Getting Getting minority Paying Enforcing across Resolving Economy rank score business credit electricity property permits taxes investors insolvency borders contracts ✔ ✔ ✔ ✔ ✔ +10.64 Afghanistan 167 ✔ ✔ ✔ ✔ ✔ ✔ Djibouti +8.87 99 ✔ ✔ ✔ ✔ ✔ ✔ ✔ +8.64 China 46 ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ Azerbaijan 25 +7.10 ✔ ✔ ✔ ✔ ✔ ✔ 77 +6.63 India ✔ ✔ ✔ ✔ ✔ ✔ Togo 137 +6.32 ✔ ✔ ✔ ✔ ✔ Kenya 61 +5.25 ✔ ✔ ✔ ✔ ✔ Côte d'Ivoire +4.94 122 ✔ ✔ ✔ ✔ ✔ ✔ ✔ +4.34 43 Turkey 29 +4.15 ✔ Rwanda ✔ ✔ ✔ ✔ ✔ ✔ 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.

19 DOING BUSINESS 2019 12 India also continued to streamline and and introduced a unified application for some of the largest and the smallest in centralize its construction permitting inspections carried out after the comple - the world, showing that economies of process. Regarding getting electricity, tion of construction. Similarly, the District all sizes can be successful reformers in newly-adopted regulations from the Real Estate Registries of both Beijing and . Doing Business Delhi Electricity Regulatory Commission Shanghai implemented a new connected require that electrical connections platform streamlining the registration Doing Afghanistan—the top improver in be completed within 15 days of the process for new buildings. To facilitate —focused on enhancing the Business 2019 application’s acceptance. To comply cross-border trade, China implemented legal framework for businesses. Minority with this regulation, Tata Power Delhi a national trade single window linking investor protections were strengthened Distribution deployed more personnel the customs and tax administration, port substantially, making Afghanistan one - as well as tracking tools and key perfor authorities, the Ministry of Commerce of the economies advancing most in mance indicators to monitor each and other agencies involved in the export this area. A new law on limited liability commercial connection. and import processes. companies made noteworthy progress toward mitigating the risks of prejudicial Djibouti and India are the only economies - India also focused on streamlining busi conflicts of interest in companies and to make the list of 10 top improvers for ness processes. Under its National Trade strengthening corporate governance the second consecutive year. Djibouti Facilitation Action Plan 2017-2020, India structures. In addition, the Commercial introduced a total of 11 business regula - implemented several initiatives that Procedure Code was amended to grant tory reforms in the past two editions improved the efficiency of cross-border greater powers to shareholders to Doing Business , while India made 14 of trade, reducing border and documentary challenge related-party transactions. sizeable improvements during the same compliance time for both exports and Afghanistan also adopted a new insol- period. Djibouti, the only economy from imports (figure 1.9). Enhanced risk-based vency legal framework in 2018. the Middle East and North Africa region management now allows exporters in the list of 10 top improvers this year, to seal their containers electronically The two economies with the largest has targeted its reform agenda toward at their own facilities; as little as 5% populations, China and India, demon - strengthening its legal framework. For of shipments must undergo physical strated impressive reform agendas. Both example, Djibouti implemented strict inspections. India also invested in port governments took a carefully designed deadlines for registering the property sale equipment, strengthened management approach to reform, aiming to improve agreement with the Tax Authority and and improved electronic document flow. the business regulatory environment digitizing its land registry. The country By implementing the Single Window over the course of several years. China also made substantial enhancements Clearance System in Delhi and the Online is the only economy from East Asia and to the process of resolving commer - Building Permit Approval System in the Pacific to join the Doing Business 2019 cial disputes by adopting a new civil Mumbai during the second half of 2017, list of 10 top improvers. China focused its reform efforts in 2017/18 on increasing the efficiency of business processes. The China significantly reduced the time to get a new electricity connection FIGURE 1.8 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 60 introduced reform measures to stream - line its construction permitting process 30 by implementing unified platforms for all building review processes carried out 0 before the approval of a building permit DB2019 DB2018 in both Beijing and Shanghai. The reforms Shanghai Beijing - also simplified documentation require ments, improved processing times, database. Source: Doing Business expanded public access to information

20 13 OVERVIEW while Kenya simplified the process of India decreased border and documentary compliance time for both FIGURE 1.9 providing value added tax information exports and imports by enhancing its existing online system, iTax. Rwanda streamlined the process Time for compliance (hours) of starting a business by replacing its 300 electronic billing machine system with 250 new software that allows taxpayers to issue value added tax invoices. The 200 free software, which is provided by the 150 office of the Revenue Authority, allows taxpayers to issue value added tax 100 invoices from any printer, eliminating 50 the previous requirement to purchase and set up a special billing machine. 0 Togo made it faster to check company Exports documentary Imports border Exports border Imports documentary - name availability by fully operational DB2018 DB2019 izing its online one-stop shop. Digital solutions were also implemented in Doing Business Source: database. the area of property registration. Togo developed an ambitious digitization project for modernizing its land admin - to credit, Azerbaijan established a new procedure code that regulates voluntary istration system and, by February 2018, - credit bureau and a new unified collat conciliation, mediation proceedings and 97.2% of all land titles in Lomé had been eral registry. In Turkey, the government’s case management techniques, including scanned. In Kenya, the Ministry of Lands reform effort focused on improving the time standards for key court events. and Physical Planning implemented electronic processing of documents and Enforcing contracts is easier following the - an online land rent financial manage providing more information on specific creation of a dedicated division within the ment system on the eCitizen portal, - regulations. Istanbul and other munici - court of first instance to resolve commer enabling property owners to determine palities across the country published on cial cases. With regards to resolving the amount owed in land rent, make an their websites all relevant regulations, fee insolvency, Djibouti established equal online payment and obtain the land rates schedules and pre-application require- treatment of creditors in reorganization clearance certificate digitally. Rwanda’s ments related to construction permits. proceedings and increased creditors’ Land Management and Use Authority The Ministry of Justice now publishes participation by granting them the right launched a new website, which now all judgments rendered by the Istanbul to approve the appointment of the includes statistics regarding the number commercial courts, the civil courts of insolvency representative and the sale of land disputes registered in 2017 intellectual and industrial rights and the of substantial assets of the debtor in the for all judiciary districts. The National Istanbul Regional Court of Justice on legal course of insolvency proceedings. Agricultural Export Development Board disputes concerning commercial, intel - of Rwanda also introduced an online lectual and industrial rights since 2014. In Europe and Central Asia, Azerbaijan system, allowing certificates of origin to Furthermore, the Banks Association of implemented eight reforms making it be issued electronically. Turkey Risk Center began sharing credit easier to do business in 2017/18, a record information from seven telecommunica - number among the 10 top improvers Brazil, which recorded the largest score tions companies. and globally, and Turkey implemented improvement in Latin America and the seven reforms. Several of these reforms Caribbean in 2017/18, reformed in four With four economies—Côte d’Ivoire, involve institutional changes. Azerbaijan Doing Business as areas measured by Kenya, Rwanda and Togo—Sub-Saharan opened a single window at the Baku part of the country’s ongoing effort to Africa is the most represented region City Executive Office for dealing with strengthen its business environment. in the Doing Business 2019 list of 10 top construction permits, for example, Brazil introduced electronic certificates improvers. Digitization was a common reducing the time to obtain a building of origin in 2017, for example, following a theme among the business regulatory permit by 80 days and the cost by 12,563 pilot project that began in October 2016. reforms recorded by these four econo - manat (about $7,500). Another one-stop After signing the Digital Certificates mies. Côte d’Ivoire and Togo introduced shop—the Asan Communal facility— of Origin Act with Argentina under online systems for filing corporate streamlined the process of connecting the framework of the Latin American income tax and value added tax returns, to the electricity grid. To improve access

21 DOING BUSINESS 2019 14 every case is unique and a variety of of Economic Law. The scope of applica Integration Association, certificates - - factors influence each economic environ of origin for auto parts imports tion of the law, traditionally limited to ment; business regulation is only one of from Argentina are now obtained merchants, was extended to include the those factors. Political stability, the level of liberal professions, “second chance” rules electronically, reducing document prep- economic development, natural resource were strengthened and the Code was aration and compliance time for Brazilian - endowment, cultural specifics, environ amended to provide for the digitaliza - importers. Brazil made starting a busi - mental risk and many other elements tion of all insolvency proceedings into a ness easier by launching online systems can each play a consequential role in the for company registration, moving its solvency register. - ability of an economy to implement regu score for starting a business (80.23) latory change successfully. While some closer to the global average. Overall, the factors cannot be influenced, others lie BRIC economies—Brazil, Russia, India DOES TRAINING CIVIL within governments’ direct control, for and China—improved their average ease SERVANTS AND example the level of training provided to of doing business score by a combined COMMUNICATING civil servants and the way in which regu - total of almost 19 points across various REGULATORY CHANGES latory change is communicated. areas of business regulation. All four AFFECT THE BUSINESS economies improved in the area of CLIMATE? Doing Business data show that across getting electricity and passed reforms economies there is a significant posi - simplifying the process of trading Reform efforts will not always result in tive association between the availability across borders. immediate improvements; indeed, some of training programs for public officials may have no impact at all. Efficient and streamlined business regulation Among OECD high-income economies, design and poor implementation are (figure 1.10). From the perspective of Belgium recorded the largest improve - just two factors that explain why some service providers—such as officers at Doing Business 2019 ment in by reforms succeed while others fail. Once land registries, judges, prosecutors or strengthening access to credit. It also new regulation is enacted, it must be engineers—training serves as a platform introduced changes to its insolvency legal brought to practice—the role of dissemi - to acquire new skills and keep existing - framework. Two laws relating to reorga nation should not be underestimated. The 23 knowledge up to date. nization and liquidation were streamlined - process of improving a business environ 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 3–5 0 1–2 3–4 1–2 0 Count of practitioners with legal degree requirement (0–4) Count of topics with training provided to government officials (0–5) OECD high income Sub-Saharan Africa 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.

22 15 OVERVIEW effectively communicate changes to business score. Governments that make capacity to serve customers, who in legislative processes tend to be associ- turn become better informed about new changes to laws or procedures publicly ated with better business regulation available through regulatory websites are regulatory requirements or processes. and more reforms. While these results also likely to perform better on the Doing Those with a better understanding of cannot be interpreted as causal, they indicators. business regulatory processes are likely Business do signal to policy makers that public- to comply more often with the required private dialogue is a powerful tool for - rules and procedures. Improved under increasing the number of reforms and standing, clarity and trust in regulatory WHAT IS NEW IN THIS improving business regulatory efficiency requirements are associated with more YEAR’S REPORT? 24 (figure 1.11). efficiency in the regulatory framework. To further explore the links between Effective public communication of - training and the successful implementa In the area of judicial performance, business regulatory reform not only tion of business regulation, Doing Business those economies that make the training constitutes good practice—it also presents four case studies with a 2019 of judges mandatory are more likely to improves compliance from the private specific focus on training opportunities enjoy higher resolution rates and better sector and holds the public sector for public officials and communication judicial decisions. Indeed, the training 28 accountable for regulatory violations. of regulatory changes. The case study of judges is imperative for increased 25, 26 on starting a business and registering judicial efficiency and productivity. Specifically, regulators who conduct property analyzes new data on training workshops with the public or interested Evidence from Pakistan indicates that opportunities available to public officials stakeholders are more likely to have reforms which provided judges with at the business and land registries. It better efficiency and quality of business training are accompanied by positive finds that the provision of mandatory legislation in their constituencies. Not effects on judicial efficiency and, conse- 27 training for business registry officers is surprisingly, economies where govern - quently, entrepreneurship. associated with higher registry efficiency. ments communicate regulatory changes Similarly, holding annual training for through media—such as broadcast Beyond training, governments have land registry officers is associated with advertisements and announcements, other options to enhance the implemen- more effective registration procedures. social media, and mobile applications— tation of business regulatory reform. Communicating changes at the business are likely to have a higher ease of doing Economies in which governments Communication of regulatory changes through media campaigns is associated with better business regulation and FIGURE 1.11 more reforms Business regulatory reforms in 2017/18 Average ease of doing business (number) score (0–100) 100 3 80 2 60 40 1 20 0 0 0–1 2–4 0–1 2–4 5+ 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.

23 DOING BUSINESS 2019 16 Sinc e 2005 a total of five reforms have been 19. and land registries—through, for example, captured in Mauritius in the area of starting a NOTES providing workshops for registry officers business, but four reforms contributed to the reduction in time for business incorporation. or information campaigns for system 1. epreneurship Database (http://www Entr he extent of disclosure index ranges from T 20. 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. Aghion, F ally and Scarpetta 2007; Herrendorf 2. ov, Georgieva and Ramalho 2018. 21. Djank and Teixeira 2011. wenty-three changes making it more 22. T The case study on getting electricity 3. P aunov 2016. burdensome for businesses to operate were highlights the benefits of comprehensive 4. Demenet, Raz afindrakoto and Roubaud 2016. recorded in Doing Business 2019 . 5. Sutherland 2011. aro, Maxwell and Morita 2017. DeV 23. wiring regulation. To adequately mitigate Agy eman, Abeka and Assiamah 2016. 6. abla-Norris, Gradstein and Inchauste 2008. D 24. safety risks, accreditation systems for Abeber 7. ese 2016. Hadfield 2008. 25. electricians are essential, as are inspec - sen and Dalgaard 2013. Ander 8. , Polo and Rettore 2003. 26. Ichino Ar agón 2015; Christiansen, Schindler and 9. C 27. hemin 2009. tions of wiring installations and liability Tressel 2013. chiavello 2008. Mac 28. data show that Doing Business regimes. 10. Berk owitz, Lin and Ma 2015; Mitton 2016. where electrical connection processes 11. ov, La Porta and others 2008. Djank 12. Durne v, Errunza and Molchanov 2009. are efficient, there also tend to be robust ez 2003. 13. Gutiérr quality control standards. Similarly, the C 14. haurey 2015. case study on trading across borders 15. Carluc cio 2015. F 16. or more information on the research on the draws on newly collected data to illus - effects of business regulation published in trate that the use of regular training to , see http://www Doing Business 2014 educate customs clearance officials and .doingbusiness.org/en/reports/global-reports /doing-business-2014. customs brokers is positively associated or more information on the legal research 17. F with lower border and documentary findings on business regulations and the law compliance times. , see http:// Doing Business 2016 published in www.doingbusiness.org/en/reports /global-reports/doing-business-2016. The case study on enforcing contracts hese areas include: starting a business 18. T and resolving insolvency explores the (DB2019, DB2018, DB2015, DB2009, DB2008), dealing with construction permits education and training that judges (DB2018, DB2016, DB2008), registering receive worldwide. It features examples property (DB2019, DB2018, DB2017, DB2013, of two judicial systems—Indonesia DB2010, DB2009, DB2008), getting credit (DB2014, DB2013, DB2010, DB2009, and the United Arab Emirates—each DB2007, DB2006), protecting minority with adequate education and training investors (DB2019), paying taxes (DB2019, frameworks in commercial and insol- DB2008), trading across borders (DB2019, DB2018, DB2010, DB2008, DB2006), vency matters. The annex presents data enforcing contracts (DB2015, DB2014, analysis for the labor market regulation DB2011, DB2010), resolving insolvency topic, including general trends and the (DB2014, DB2010, D2008). Substantial changes were observed in labor market relationship with firm performance. regulation in DB2010.

24 17 OVERVIEW TABLE 1A.1 Who reduced regulatory complexity and cost or strengthened legal institutions in 2017/18—and what did they do? Some highlights Economies Feature Making it easier to start a business Argentina made starting a business easier by introducing an expedited process for Afghanistan; Argentina; Bolivia; Brazil; Brunei Simplified preregistration limited liability companies that includes company incorporation, book legalization Darussalam; Burundi; Côte d’Ivoire; Ethiopia; and registration formalities and tax and social security registration. India made starting a business easier by Guatemala; India; Mauritania; Morocco; Myanmar; (publication, notarization, fully integrating multiple application forms into a general incorporation form. New Zealand; Nigeria; Pakistan; Qatar; South inspection, and other Africa; Sudan; Thailand; Togo; Turkey; Vietnam requirements) 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. Indonesia made starting a business easier by combining different social security Armenia; Belarus; Brunei Darussalam; Chile; Cut or simplified registrations. Mauritius made starting a business easier by linking the database Georgia; India; Indonesia; Kazakhstan; Mauritius; postregistration procedures of the business registry with the database of the social security office. Singapore Peru; Philippines; Rwanda; Singapore; Zimbabwe (tax registration, social security made starting a business easier by abolishing corporate seals. registration, licensing) Bolivia; China; Guatemala; Malaysia; Nigeria; Nigeria made starting a business easier by introducing an online platform to Introduced or improved 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. Cameroon; Chad; Djibouti; Egypt, Arab. Rep; Introduced or improved Moldova made starting a business easier by removing the requirement to separately Gabon; Guinea; Moldova; Togo; Tunisia one-stop shop 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 Sri Lanka made dealing with construction permits easier by reducing the processing Reduced time for processing Azerbaijan; Botswana; China; El Salvador; times to issue several building certificates. Ethiopia; Greece; Guinea; India; Kosovo; Malaysia; permit applications 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 Ghana and Peru strengthened construction quality control by imposing stricter China; Côte d’Ivoire; Gabon; Ghana; Madagascar; Peru; Philippines; Togo regulations 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. Burundi increased the transparency of dealing with construction permits by Burundi; China (Beijing); India; Mauritania; Sri Improved transparency 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. Macedonia, FYR made the construction permitting process less costly by reducing Azerbaijan; Cambodia; China; Gabon; Greece; Reduced fees the land development fees. Guinea; India; Macedonia, FYR; Madagascar; Niger; Togo Azerbaijan; Belarus; China; India; Sri Lanka; Taiwan, China, made dealing with construction permits less time-consuming by Introduced or improved one-stop shop improving the efficiency of its single window counter in the Taipei City Construction Taiwan, China; Zimbabwe Management Office. Zimbabwe made dealing with construction permits faster by adopting a one-stop shop for building plan approvals. China; India; Russian Federation; Serbia; Sri Lanka; Serbia reduced the time needed to obtain a construction permit by introducing an Introduced or improved Taiwan, China; Uruguay electronic application system. electronic platforms or online services Making it easier to get electricity Gabon improved the regulatory framework of the electricity sector; the national Angola; Azerbaijan; Brazil (São Paulo); Gabon; Facilitated more reliable regulator now monitors the utility’s performance on reliability of supply. Papua Mozambique; Myanmar; Paraguay; Papua New power supply and New Guinea improved the reliability of supply by expanding electricity generation Guinea; Rwanda; Saudi Arabia; South Africa; Togo; transparency of tariff capacities. Paraguay rolled out a Supervisory Control and Data Acquisition (SCADA) Thailand information system to monitor power outages. Niger made the process for getting an electricity connection faster by increasing the Improved process efficiency Algeria; Armenia; Azerbaijan; Hong Kong SAR, stock of material the utility carries and by allowing the internal wiring certificate of China; India (Delhi); Mozambique; Niger; Russian conformity to be obtained at the same time as the external connection works. Federation; Rwanda; United Kingdom Streamlined approval process Thailand streamlined procedures by setting up a dedicated task force at the utility Brunei Darussalam; China; France; Malaysia; 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.

25 DOING BUSINESS 2019 18 Who reduced regulatory complexity and cost or strengthened legal institutions in 2017/18—and what did they do? TABLE 1A.1 Some highlights Economies Feature 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 services provided by the Land Registry and Cadaster. Sri Lanka worked toward infrastructure 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. Gabon and Israel upgraded their official websites to include relevant Azerbaijan; Croatia; Eswatini; Gabon; Indonesia; Increased transparency of information to the public at large regarding land registry services. Pakistan and Israel; Mauritius; Pakistan; Papua New Guinea; information West Bank and Gaza began publishing online official statistics tracking the Rwanda; Togo; Tunisia; United Arab Emirates; number of transactions at the immovable property registration agency. West Bank and Gaza Chad; Congo, Dem. Rep.; Congo, Rep.; Djibouti; Congo, Dem. Rep. reduced the cost of securing land and property titles. Guinea Reduced taxes or fees reduced the fees to transfer property from 2% to 1.2% of the property value. Guinea; Togo Reduced time for registering China; Djibouti; France; Kenya; Malawi; Malaysia; Malawi made property transfer faster by decentralizing the consent to transfer property property to local government authorities. Morocco; Sri Lanka; Togo; West Bank and Gaza China; Djibouti; Indonesia; Israel; Kenya; Morocco; Niger improved communication between the taxation department and the Increased administrative registration department by merging procedures, making reviewing and efficiency Niger; Pakistan; Senegal; Sri Lanka; Togo 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 United Arab Emirates established a modern and unified collateral registry. Azerbaijan; Belgium; Kenya; Nicaragua; United Created a unified and/or Arab Emirates modern collateral registry for movable property Azerbaijan; Kenya Kenya strengthened access to credit by implementing a functional secured Introduced a functional and 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. Djibouti Djibouti allowed the general description of debts and obligations. Allowed for general description of assets that can be used as collateral Egypt, Arab Rep. introduced a new law that broadens the scope of assets which Azerbaijan; Belgium, Djibouti; Egypt, Arab. Rep.; Expanded range of movable Turkey; United Arab Emirates can be used as collateral to secure a loan. assets that can be used as collateral Afghanistan; Belgium; Djibouti; Egypt, Arab. Rep.; Afghanistan introduced a new law that grants secured creditors absolute priority Granted absolute priority to India; Sudan; Turkey; United Arab Emirates over other claims within insolvency proceedings. secured creditors or allowed out-of-court enforcement Rwanda adopted a new law on insolvency that contemplates protections for Azerbaijan; Rwanda; Sudan Granted exemptions to secured creditors during an automatic stay in reorganization proceedings. secured creditors from automatic stay in insolvency proceedings Improving the sharing of credit information Azerbaijan; Benin; Haiti; Ireland; San Marino San Marino improved access to credit information by launching a new Established a new credit credit registry. bureau or registry Antigua and Barbuda; Bahamas, The; Grenada; Madagascar improved access to credit information by adopting a law that creates Improved regulatory Madagascar a new credit information system. framework for credit reporting Brazil; Côte d’Ivoire; Indonesia; Jamaica; Jordan; In Indonesia, one public utility began submitting positive and negative information Expanded scope of Turkey on consumer accounts to the credit bureau. information collected and reported by credit bureau or registry In Brunei Darussalam, the credit registry began offering credit scores to banks and Brunei Darussalam; Zimbabwe Introduced bureau or registry other financial institutions to better inform their lending decisions. credit scores as a value- added service Guaranteed by law borrowers’ Qatar adopted the Consumer Credit Act 2016 guaranteeing borrowers’ right to Mauritania; Qatar 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.

26 19 OVERVIEW Who reduced regulatory complexity and cost or strengthened legal institutions in 2017/18—and what did they do? TABLE 1A.1 Feature Some highlights Economies Strengthening minority investor protections The Philippines issued new rules for companies listed on its stock exchange. Afghanistan; Armenia; Azerbaijan; Bahrain; China; Expanded shareholders’ role Shareholders can now approve the appointment and dismissal of the auditor Cyprus; Djibouti; Dominican Republic; Egypt, Arab in company management and companies must establish an audit committee composed exclusively Rep.; Jordan; Kenya; Kuwait; Kyrgyz Republic; of board members. Lithuania; Mauritius; Papua New Guinea; Philippines; Saudi Arabia; Sudan; Taiwan, China; Tunisia; Uzbekistan In Tunisia, an amendment to capital market rules requires that companies promptly Afghanistan; Armenia; Bahrain; Cyprus; Djibouti; Increased disclosure make public information on interested party transactions and conflicts of interest. Kenya; Kuwait; Tunisia; Ukraine requirements for related-party transactions Djibouti introduced major changes to its Code of Commerce. Among the changes, Afghanistan; Bahrain; China; Djibouti; Jordan; Enhanced access to Sudan any information relevant to the subject matter of the claim must now be made information in shareholder available to shareholders when they bring a lawsuit. actions Djibouti; Kenya; Saudi Arabia Kenya enacted the Companies Amendment Act 2017, which holds directors liable for Increased director liability 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 The Bahamas implemented an online system for filing and payment of value added tax. Introduced or enhanced Azerbaijan; Bahamas, The; Bhutan; China; Côte d'Ivoire; Cyprus; Finland; Iran, Islamic Rep.; electronic systems Jordan; Kenya; Mauritius; Panama; Sri Lanka; Thailand; Togo; Turkey Ecuador introduced a Tax Incentive Law in 2017 allowing businesses to deduct an Ecuador; France; Georgia; Hungary; India; Russian Reduced profit tax rate, Federation; Togo additional 100% on amounts paid to cover private medical insurance or prepaid allowed for more tax- health care for its employees. deductible expenses and made changes to tax depreciation rules China (Beijing); Cyprus; Finland; France; Hungary; Vietnam reduced the employer’s contribution to the labor fund from 1% to 0.5%. Reduced labor taxes and India; Uzbekistan; Vietnam mandatory contributions, or taxes other than profit and labor Georgia; India India introduced the Maharashtra Goods and Services Tax Act 2017 and the Delhi Introduced new or Goods and Services Tax Act 2017, which unified all sales taxes into one new tax significantly revised tax law called the Goods and Services Tax (GST). or tax code Armenia improved the quality of the local accounting software (Arm accounting) Afghanistan; Armenia; Azerbaijan; China; Georgia; Simplified tax compliance India; Kenya; Kosovo; Lithuania; Vietnam for corporate income tax and labor taxes in 2017 by incorporating a wider range of processes or decreased tax calculations. This allowed for the integration of the local accounting software number of tax filings with the tax authority's secure data transmission and storage system. or payments 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. In 2017 Afghanistan introduced a new tax administration and law manual Afghanistan; Iran, Islamic Rep.; Kosovo; Mauritius Improved tax audit processes with clear rules and guidelines on tax audit and automated the submission and correction of corporate of tax returns. income tax processes

27 DOING BUSINESS 2019 20 TABLE 1A.1 Who reduced regulatory complexity and cost or strengthened legal institutions in 2017/18—and what did they do? Economies Feature Some highlights Making it easier to trade across borders Kazakhstan made trading across borders easier by introducing an electronic Angola; Azerbaijan; China; Congo, Dem. Introduced or improved customs declaration system, ASTANA-1 IS, and reducing customs administrative Rep.; India; Iran, Islamic Rep.; Kazakhstan; electronic submission and fees. Uganda fully implemented the Centralized Document Processing Centre, an Kosovo; Lesotho; Lithuania; Malaysia; Morocco; processing of documents for electronic processing platform that centralizes all documentary checks. Traders in Mozambique; Nigeria; Russian Federation; exports Uganda also began using the Uganda Electronic Single Window, which allows for Rwanda; Saudi Arabia; Thailand; Turkey; Uganda; electronic submission of documents as well as for the exchange of information Uzbekistan between trade agencies. Lesotho made importing faster by implementing the Automated System for Angola; Azerbaijan; Bahrain; Brazil; China; Introduced or improved Customs Data (ASYCUDA), reducing documentary compliance time for imports by Congo, Dem. Rep.; Ghana; India; Iran, Islamic electronic submission and two hours. In January 2017, Paraguay introduced the legal validity of the electronic Rep.; Lesotho; Malaysia; Morocco; Mozambique; processing of documents for signature for trade operations. Nigeria; Paraguay; Russian Federation; Saudi imports Arabia; Turkey; Uganda El Salvador made exporting easier by introducing an intermediate customs post in Strengthened border China; El Salvador; India; Malaysia; Morocco; 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. Malaysia strengthened infrastructure at Port Klang by opening a second gate with Bahrain; China; India; Malaysia; Morocco; Strengthened border additional scanners, upgrading the management system, expanding two terminals infrastructure for imports Mozambique; Nigeria; Rwanda; Saudi Arabia; and decreasing the cut-off time. Uganda Mauritius made exporting easier by introducing a risk-based management system Algeria; Azerbaijan; China; Ghana; Guinea; India; Enhanced customs which reduced border compliance time by 14 hours. Ukraine made trading across Iran, Islamic Rep.; Kazakhstan; Kosovo; Kyrgyz administration and borders easier by eliminating the verification requirement on auto-parts. Kosovo Republic; Lao PDR; Malaysia; Mauritius; Nigeria; inspections for exports and also introduced simplified controls at the border with Albania, reducing the number Russian Federation; Rwanda; Tajikistan; Turkey; imports of physical examinations during customs clearance. Ukraine Making it easier to enforce contracts Kyrgyz Republic, Slovenia, Sri Lanka and Ukraine amended the civil procedure rules Albania; Armenia; Djibouti; Kyrgyz Republic; Introduced significant to introduce a pre-trial conference as part of the case management techniques Malawi; Mongolia; Niger; Nigeria (Lagos); changes to the applicable civil used in court. Albania, Armenia, Niger, Nigeria (Lagos) and Ukraine issued new Rwanda; São Tomé and Príncipe; Saudi Arabia; procedure or enforcement rules of procedure for small claims. Slovenia; Sri Lanka; Ukraine rules Canada, Jordan and Puerto Rico (U.S.) implemented a platform to pay fees Canada; Georgia; Jordan; Kazakhstan; Expanded court automation electronically. Georgia, Madagascar and Poland introduced random and automatic Madagascar; Poland; Puerto Rico (U.S.); Slovak by introducing electronic assignment of cases to judges throughout the courts. Slovak Republic implemented Republic; Turkey; Vietnam; Zambia; Zimbabwe payment, electronic service electronic service of process. Kazakhstan, Turkey, Vietnam and Zimbabwe made of process, automatic decisions rendered in commercial cases publicly available. assignment of cases to judges or by publishing judgments Denmark, Madagascar and Puerto Rico (U.S.) introduced an electronic case Denmark; Kazakhstan; Madagascar; Namibia; Introduced or expanded the Puerto Rico (U.S.) management system. Kazakhstan and Namibia introduced the possibility of electronic case management generating performance measurement reports. system Introduced electronic filing Canada, Chile, Denmark, Puerto Rico (U.S.) and Saudi Arabia introduced an Canada; Chile; Denmark; Puerto Rico (U.S.); Saudi Arabia electronic filing system for commercial cases, allowing attorneys to submit the initial summons online. Introduced or expanded Djibouti and Ethiopia introduced dedicated benches to resolve commercial disputes. Djibouti; Ethiopia specialized commercial court Djibouti, Ireland and Kyrgyz Republic adopted laws that regulate all aspects of Benin; Burkina Faso; Cameroon; Central African Expanded the alternative mediation as an alternative dispute resolution mechanism. Sudan recognized dispute resolution framework Republic; Chad; Comoros; Congo, Dem. Rep.; voluntary conciliation and mediation as ways of resolving commercial disputes. Congo, Rep.; Côte d'Ivoire; Djibouti; Equatorial Turkey introduced financial incentives for mediation. Guinea; Gabon; Guinea; Guinea-Bissau; Ireland; Kyrgyz Republic; Mali; Niger; Senegal; Singapore; Sudan; Togo; Turkey

28 21 OVERVIEW TABLE 1A.1 Who reduced regulatory complexity and cost or strengthened legal institutions in 2017/18—and what did they do? Some highlights Economies Feature 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 the commencement of insolvency proceedings and introduced corresponding successful reorganization Morocco; Pakistan; Rwanda; Turkey priority rules. Afghanistan; Egypt, Arab. Rep.; Malaysia; Pakistan Introduced a new Pakistan introduced the option of reorganization for commercial entities as an restructuring procedure alternative to previously available option of liquidation. Afghanistan; Djibouti; Kenya; Kyrgyz Republic; Kyrgyz Republic granted an individual creditor the right to access information about Strengthened creditors’ rights the debtor’s business and financial affairs. Morocco; Rwanda; Sudan; Turkey Afghanistan; Azerbaijan; Kenya; Kyrgyz Republic; Kenya allowed for the continuation of contracts supplying essential goods and Improved provisions on Pakistan; Sudan services to the debtor, giving the administrator the power to continue or disclaim treatment of contracts contracts of the debtor. during insolvency Streamlined insolvency Belgium unified its insolvency legal framework and streamlined provisions related Belgium; Burundi procedures to liquidation and reorganization procedures. Changing labor legislation Benin; Nepal Benin increased the maximum length of fixed-term contracts. Nepal allowed fixed- Altered hiring rules and 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 100% wage premium for work on the weekly rest day. Lithuania; Nepal; Norway; South Sudan Azerbaijan; Brazil; Costa Rica; France; Lithuania; Changed redundancy rules 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. Canada introduced two days of paid sick leave. Israel, Luxembourg, Nepal and Bulgaria; Canada; Costa Rica; Israel; Luxembourg; Reformed legislation South Sudan increased the duration of paid maternity leave. Malaysia; Mali; Mozambique; Nepal; South Sudan; regulating worker protection United States (New York) and social benefits 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.

29 DOING BUSINESS 2019 Doing Business About measures aspects of Doing Business ƒ business regulation affecting small and is founded on the principle that economic activity benefits Doing Business medium-size domestic firms defined based on standardized case scenarios from clear and coherent rules: rules that set out strong property rights, and located in the largest business city facilitate the resolution of disputes and provide contractual partners with of 190 economies. In addition, for 11 protections against arbitrariness and abuse. Such rules are much more economies a second city is covered. effective in promoting growth and development when they are efficient, transparent and accessible to those for whom they are intended. The ƒ covers 11 areas of Doing Business strength and inclusivity of the rules also have a crucial bearing on how business regulation. Ten of these societies distribute the benefits and finance the costs of development areas—starting a business, dealing strategies and policies. with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, environment affecting domestic firms. It Good rules create an environment where enforcing contracts and resolving provides quantitative indicators on regu - new entrants with drive and innova - insolvency—are included in the ease lation for starting a business, dealing with tive ideas can get started in business of doing business score and ease of construction permits, getting electricity, and where productive firms can invest, doing business ranking. Doing Business registering property, getting credit, expand and create new jobs. The role of also measures features of labor market protecting minority investors, paying government policy in the daily operations regulation, which is not included in taxes, trading across borders, enforcing of small and medium-size domestic firms these two measures. contracts and resolving insolvency is a central focus of the Doing Business ƒ Doing Business relies on four main Doing Business also measures (table 2.1). - data. The objective is to encourage regu sources of information: the relevant features of labor market regulation which lation that is efficient, transparent and Doing Business laws and regulations, are reported as a separate section and easy to implement so that businesses respondents, the governments of the not included in the ranking. can thrive and promote economic and economies covered and World Bank data focus social progress. Doing Business Group regional staff. on the 11 areas of regulation affecting How the indicators are selected small and medium-size domestic firms in Doing Business The design of the Over the past 16 years more than ƒ the largest business city of an economy. indicators has been informed by theo- 43,800 professionals in 190 economies The project uses standardized case retical insights gleaned from extensive have assisted in providing the data that indicators. Doing Business inform the studies to provide objective, quantitative research and the literature on the role of measures that can be compared across - institutions in enabling economic devel ƒ Doing Business data are widely 1 190 economies. opment. In addition, the background used by governments, researchers, papers developing the methodology for international organizations and think indicator sets each of the Doing Business tanks to guide policies, conduct have established the importance of the FACTORS DOING BUSINESS research and develop new indexes. Doing Business rules and regulations that MEASURES There are no methodological changes ƒ focuses on for such economic outcomes data. Doing Business 2019 in as trade volumes, foreign direct invest - Doing Business - captures several impor ment (FDI), market capitalization in tant dimensions of the regulatory

30 23 ABOUT DOING BUSINESS doing business score aids in assessing What measures—11 areas of business regulation TABLE 2.1 Doing Business - the absolute level of regulatory perfor Indicator set What is measured mance and how it improves over time. Procedures, time, cost and paid-in minimum capital to start a limited Starting a business The individual indicator scores show the liability company for men and women distance of each economy to the best Procedures, time and cost to complete all formalities to build a Dealing with construction permits regulatory performance observed in warehouse and the quality control and safety mechanisms in the construction permitting system each of the indicators across all econo - sample since Doing Business mies in the Procedures, time and cost to get connected to the electrical grid, the Getting electricity reliability of the electricity supply and the transparency of tariffs 2005 or the third year in which data Procedures, time and cost to transfer a property and the quality of Registering property were collected for the indicator. The the land administration system for men and women best regulatory performance is set at Movable collateral laws and credit information systems Getting credit the highest possible value for indicators Protecting minority investors Minority shareholders’ rights in related-party transactions and in calculated as scores, such as the strength corporate governance of legal rights index or the quality of land Payments, time and total tax and contribution rate for a firm to Paying taxes administration index. This underscores comply with all tax regulations as well as postfiling processes the gap between a particular economy’s Time and cost to export the product of comparative advantage and Trading across borders performance and the best regulatory import auto parts performance at any point in time and is Time and cost to resolve a commercial dispute and the quality of Enforcing contracts judicial processes for men and women used to assess the absolute change in the economy’s regulatory environment Time, cost, outcome and recovery rate for a commercial insolvency Resolving insolvency and the strength of the legal framework for insolvency over time as measured by Doing Business Labor market regulation Flexibility in employment regulation and aspects of job quality (see the chapter on the ease of doing business score and ease of doing busi - ness ranking). The ranking on the ease of doing business complements the ease compliance costs for firms low—such as stock exchanges and private credit as 2 of doing business score by providing by easing the burden of business start- a percentage of GDP. information about an economy’s perfor - up formalities with a one-stop shop or mance in business regulation relative to through a single online portal. Finally, Doing The choice of the 11 sets of the performance of other economies as the scores reward economies that apply indicators has also been Business Doing Business measured by . a risk-based approach to regulation as a guided by economic research and firm- way to address social and environmental level data, specifically data from the 3 uses a simple averaging Doing Business concerns—such as by imposing a World Bank Enterprise Surveys. These approach for weighting component greater regulatory burden on activities surveys provide data highlighting the indicators, calculating rankings and that pose a high risk to the population main obstacles to business activity as determining the ease of doing business - and a lesser one on lower-risk activi reported by entrepreneurs from more 4 score. ties. Thus, the economies that rank - than 136,880 companies in 139 econo Each topic covered by Doing highest on the ease of doing business mies. Access to finance and access to Business relates to a different aspect are not those where there is no regula- electricity, for example, are among the of the business regulatory environ - tion, but those where governments have factors identified by the surveys as ment. The scores and rankings of each managed to create rules that facilitate important to businesses—inspiring the economy vary considerably across interactions in the marketplace without indicators Doing Business design of the topics, indicating that a strong perfor - needlessly hindering the development of on getting credit and getting electricity. mance by an economy in one area of the private sector. - regulation can coexist with weak perfor Doing Business indicators give a Some mance in another (figure 2.1). One way higher score for more regulation and to assess the variability of an economy’s The ease of doing business better-functioning institutions (such regulatory performance is to look at its score and ease of doing as courts or credit bureaus). Higher scores across topics (see the country business ranking scores are given for stricter disclosure tables). Qatar, for example, has an overall To provide different perspectives on - requirements for related-party trans ease of doing business score of 65.89, the data, presents data Doing Business actions, for example, in the area of meaning that it is about two-thirds both for individual indicators and for protecting minority investors. Higher of the way from the worst to the best two aggregate measures: the ease of scores are also given for a simplified performance. It scores highly at 99.44 doing business score and the ease of way of applying regulation that keeps on paying taxes, 87.67 on starting a doing business ranking. The ease of

31 DOING BUSINESS 2019 24 An economy’s regulatory environment may be more business-friendly in some areas than in others FIGURE 2.1 Score (0–100) 100 90 80 70 60 50 40 ighest sco Av era of the three h res ge 30 Av era ge of a ll to pic scores 20 Av era res ge west sco of the three lo 10 0 Fiji Italy Mali India Togo Niger Chad Israel Brazil Palau Qatar Benin Japan Belize Latvia Kenya Tonga Eritrea Turkey Ghana Gabon Cyprus Poland Ireland Kuwait Algeria Angola Iceland Bhutan Finland Belarus Malawi Zambia Albania Norway Ukraine Uganda Djibouti Senegal Jamaica Ecuador Panama Belgium Rwanda Ethiopia Bulgaria Vietnam Hungary Namibia Eswatini Uruguay Armenia St. Lucia Grenada Thailand Moldova Malaysia Maldives Denmark Suriname Dominica Barbados Myanmar Colombia Honduras Indonesia Argentina Zimbabwe Costa Rica Azerbaijan El Salvador Korea, Rep. Cabo Verde Afghanistan Yemen, Rep. Madagascar Sierra Leone South Sudan Gambia, The Burkina Faso Mozambique New Zealand Guinea-Bissau Taiwan, China Czech Republic United Kingdom Solomon Islands Equatorial Guinea Brunei Darussalam Russian Federation Syrian Arab Republic Trinidad and Tobago United Arab Emirates Bosnia and Herzegovina Central African Republic Source: database. Doing Business The scores reflected are those for the 10 topics included in this year’s aggregate ease of doing business score. The figure is illustrative only; it does not Doing Business Note: include all 190 economies covered by this year’s report. See the country tables for the scores for each Doing Busines s topic for all economies. business or protecting minority inves - not, for example, capture aspects of business and 83.27 on registering prop- Doing Business measures tors. Given that macroeconomic stability, development erty. At the same time, it has a score of only a few features of each area that of the financial system, market size, the 28.33 for protecting minority investors, it covers, business regulatory reforms incidence of bribery and corruption or 38.12 for resolving insolvency and 40 should not focus only on these narrow the quality of the labor force. for getting credit. areas and should be evaluated within a broader perspective. The focus is deliberately narrow even within the relatively small set of indi - DOING BUSINESS FACTORS Doing Business does not attempt to quan - . The cators included in Doing Business DOES NOT MEASURE tify all costs and benefits of a particular time and cost required for the logistical law or regulation to society as a whole. process of exporting and importing Many important policy areas are not The paying taxes indicators measure the goods is captured in the trading across ; even within Doing Business covered by total tax and contribution rate, which, in borders indicators, for example, but they the areas it covers its scope is narrow isolation, is a cost to businesses. However, do not measure the cost of tariffs or of does not (table 2.2). Doing Business the indicators do not measure—nor are international transport. Doing Business measure the full range of factors, policies they intended to measure—the benefits provides a narrow perspective on the and institutions that affect the quality of the social and economic programs infrastructure challenges that firms face, of an economy’s business environment funded with tax revenues. Measuring the particularly in the developing world, or its national competitiveness. It does - quality and efficiency of business regu through these indicators. It does not lation provides only one input into the address the extent to which inadequate Examples of areas not TABLE 2.2 debate on the regulatory burden associ- roads, rail, ports and communications covered by Doing Business ated with achieving regulatory objectives, may add to firms’ costs and undermine Macroeconomic stability Doing which can differ across economies. competitiveness (except to the extent Business provides a starting point for this that the trading across borders indica - Development of the financial system discussion and should be used in conjunc - tors indirectly measure the quality of Quality of the labor force tion with additional data sources. Other ports and border connections). Similar to Incidence of bribery and corruption World Bank Group databases that provide the indicators on trading across borders, Market size comprehensive data related to some all aspects of commercial legislation Lack of security include: Women, Doing Business areas of are not covered by those on starting a

32 25 ABOUT DOING BUSINESS encouraged to venture into business economy. The reality is that business regu- Business and the Law, which measures when potential losses are limited to lations and their enforcement may differ legal restrictions on women’s economic their capital participation. within a country, particularly in federal opportunities in 189 economies; the states and large economies. But gath - Logistic Performance Index, which Another assumption underlying the ering data for every relevant jurisdiction benchmarks the performance of trade Doing Business indicators is that entre - in each of the 190 economies covered by logistics in 160 economies; the World preneurs have knowledge of and comply Doing Business is infeasible. Nevertheless, Governance Indicators, which provides with applicable regulations. In practice, where policy makers are interested in data on different dimensions of gover - entrepreneurs may not be aware of what generating data at the local level, beyond nance in 214 economies; and Country needs to be done or how to comply with the largest business city, and learning Policy and Institutional Assessments, regulations and may lose considerable Doing Business from local good practices, which measure the quality of policies and time trying to find out. Alternatively, they has complemented its global indicators institutions in International Development 5 may intentionally avoid compliance—by with subnational studies (box 2.1). Also, Association (IDA) economies. not registering for social security, for coverage was extended to the second example. Firms may opt for bribery and largest business city in economies with other informal arrangements intended a population of more than 100 million ADVANTAGES AND to bypass the rules where regulation is (as of 2013) in Doing Business 2015. LIMITATIONS OF THE particularly onerous—an aspect that METHODOLOGY helps explain differences between the - Doing Business recognizes the limi de jure data provided by Doing Business tations of the standardized case methodology is The Doing Business and the de facto insights offered by scenarios and assumptions. But while designed to be an easily replicable way 6 the World Bank Enterprise Surveys. such assumptions come at the expense to benchmark specific characteristics of generality, they also help to ensure of business regulation—how they are Levels of informality tend to be higher in Doing the comparability of data. Some implemented by governments and expe - economies with particularly burdensome topics are complex, and so it is Business rienced by private firms on the ground. regulation. Compared with their formal important that the standardized cases Its advantages and limitations should sector counterparts, firms in the informal are defined carefully. For example, the be understood when using the data sector typically grow more slowly, have standardized case scenario usually (table 2.3). poorer access to credit and employ fewer involves a limited liability company workers—and these workers remain or its legal equivalent. There are two outside the protections of labor law Ensuring comparability of the data across reasons for this assumption. First, and, more generally, other legal protec - a global set of economies is a central 7 private limited liability companies are tions embedded in the law. Doing Business consideration for the Firms in the the most prevalent business form (for indicators, which are developed using informal sector are also less likely to pay firms with more than one owner) in standardized case scenarios with specific measures one set Doing Business taxes. many economies around the world. assumptions. One such assumption is of factors that help explain the occur - Second, this choice reflects the focus of the location of a standardized business— rence of informality and provides policy on expanding opportuni- Doing Business Doing Business the subject of the case makers with insights into potential ties for entrepreneurship: investors are study—in the largest business city of the areas of regulatory reform. TABLE 2.3 Adv antages and limitations of the Doing Business methodology Advantages Feature Limitations Use of standardized case scenarios Makes data comparable across economies and Reduces scope of data; only regulatory reforms in areas methodology transparent measured can be systematically tracked a Focus on largest business city Makes data collection manageable (cost-effective) and data Reduces representativeness of data for an economy if there are comparable significant differences across locations Keeps attention on formal sector—where regulations are Unable to reflect reality for informal sector—important where Focus on domestic and formal private sector that is large—or for foreign firms facing a different set of relevant and firms are most productive constraints Reliance on expert respondents Ensures that data reflect knowledge of those with most Indicators less able to capture variation in experiences among experience in conducting types of transactions measured entrepreneurs Focus on the law Makes indicators “actionable”—because the law is what Where systematic compliance with the law is lacking, regulatory policy makers can change changes will not achieve full results desired a. In economies with a population of more than 100 million as of 2013, Doing Business covers business regulation in both the largest and second largest business city.

33 DOING BUSINESS 2019 26 Subnational indicators: the European Union series BOX 2.1 Doing Business is a series of subnational reports being produced by the World Bank Group at the request Doing Business in the European Union of and funded by the European Commission’s Directorate-General for Regional and Urban Policy (DG REGIO). A first edi- tion, covering 22 cities in Bulgaria, Hungary and Romania, was released in 2017. This year, 25 more cities in Croatia, the Czech Republic, Portugal and the Slovak Republic were benchmarked (see map). The next study in the subnational series will cover 24 cities in Greece, Ireland and Italy. The ambition is to continue this series until all member states with at least 4 million inhabitants have been covered. The focus of the series is on indicator sets that measure the complexity and cost of regulatory processes as well as the strength of legal institutions, affecting five stages in the life of a small to medium-size domestic firm: starting a busi - ness, dealing with construction permits, getting electricity, registering property and enforcing contracts through a local court. Because many regulations and administrative measures are implemented or determined by local authorities, subnational Doing Business studies give a nuanced and comprehensive representation of the business regulatory system and the efficacy of the bureaucracy at the local administrative unit level. By providing a factual baseline, along with local examples of good practices, the studies promote peer learning—both within national boundaries and beyond—and convergence among locations toward regula- tory good practices. The results are revealing. The studies show that there remain substantial differences in the business environment both between and within EU member states. And these differences matter. A study that looked at cities in Italy, Poland, Romania and Spain found that firms located in places with a better business environment have a stronger performance in sales, employment and a productivity growth as well as in investments. Reducing the cost for local firms to do business would enhance their efficiency and competitiveness abroad and encourage investments, which are critical for regional growth. A European Commission report on competitiveness in low-income and low-growth regions also emphasizes the need to improve public administration and make b procedures more transparent. The findings of the studies indicate how reform-minded officials can make tangible improvements by replicating good practices already existing in other cities in their country. For example, by adopting all the good practices found at the subnational level, all four member states benchmarked in 2018 would move substantially closer to the regulatory best performance. Doing Business in the European Union series will be relevant for the individual country reports The insights from the subnational produced for the European Semester (the European Union’s economic and fiscal policy coordination framework) and for the Cohesion Policy (the EU’s main investment policy) and will be closely linked with the European Commission’s “lagging regions” initiative, which studies constraints to growth and investment in the low-income and low-growth regions of the European Union. Azores Madeira a. Farole and others 2017. b. European Commission 2017.

34 27 DOING BUSINESS ABOUT Extensive consultations with multiple approximately two-thirds of the data DATA COLLECTION IN contributors are conducted by the team embedded in the Doing Business indica- PRACTICE to minimize measurement errors for tors are based on a reading of the law. the rest of the data. For some indica - In addition to filling out questionnaires, tors—for example, those on dealing Doing Business respondents submit The Doing Business data are based on a with construction permits, enforcing references to the relevant laws, regu- detailed reading of domestic laws, regu - contracts and resolving insolvency—the lations and fee schedules. The Doing lations and administrative requirements time component and part of the cost team collects the texts of Business as well as their implementation in prac- component (where fee schedules are the relevant laws and regulations and tice as experienced by private firms. The lacking) are based on actual practice checks the questionnaire responses report covers 190 economies—including rather than the law on the books. This for accuracy. The team will examine some of the smallest and poorest introduces a degree of judgment by the civil procedure code, for example, economies, for which little or no data are respondents on what actual practice to check the maximum number of available from other sources. The data looks like. When respondents disagree, adjournments in a commercial court are collected through several rounds of the time indicators reported by Doing dispute, and read the insolvency code communication with expert respondents Business represent the median values to identify if the debtor can initiate (both private sector practitioners and of several responses given under the liquidation or reorganization proceed - government officials), through responses assumptions of the standardized case. ings. These and other types of laws to questionnaires, conference calls, law Doing Business are available on the written correspondence and visits by the 8 library website. relies on four main team. Doing Business Doing Business Since the data collec - respondents sources of information: the relevant laws tion process involves an annual update More than 43,800 professionals in 190 Doing Business respon- and regulations, of an established database, having a economies have assisted in providing dents, the governments of the economies very large sample of respondents is the data that inform the Doing Business 9 covered and the World Bank Group not strictly necessary. In principle, the indicators over the past 16 years. This regional staff (figure 2.2). For a detailed role of the contributors is largely advi- year’s report draws on the inputs of more 10 explanation of the Doing Business meth- Doing Business team sory—helping the than 13,800 professionals. The Doing odology, see the data notes at http:// to locate and understand the laws and Business website shows the number of www.doingbusiness.org. - regulations. There are quickly dimin respondents for each economy and each ishing returns to an expanded pool of indicator set. contributors. This notwithstanding, the Relevant laws and regulations number of contributors rose by 70% Selected on the basis of their exper - Doing Business The indicators are between 2010 and 2018. based mostly on laws and regulations: tise in these areas, respondents are How Doing Business collects and verifies the data FIGURE 2.2 Oct. Sept. Aug. Jul. Jun. Nov. Dec. Jan. Feb. Mar. Apr. May Data collection and analysis Questionnaire Report launch development  The team distributes Doing Business the questionnaires and analyzes the relevant laws and regulations along Data verification The report is published,  with the information in the The  team updates Doing Business followed by media outreach questionnaires. the questionnaires and consults and findings dissemination. with internal and external experts. The  The  team shares Doing Business team travels to Doing Business preliminary information on reforms approximately 30 economies. with World Bank Group regional teams  The team engages in Doing Business for their feedback. conference calls, video conferences The  and in-person meetings with team analyzes the Doing Business government officials and private data and writes the report. Comments sector practitioners. on the report and data are received from across the World Bank Group Governments and World Bank Group  through an internal review process. regional teams submit information on regulatory changes that could potentially be included in the global count of regulatory reforms.

35 DOING BUSINESS 2019 28 Data adjustments Information on data corrections is offers policy makers a benchmarking tool Doing Business provided in the data notes available at useful in stimulating policy debate. Doing Business the website. A transparent complaint procedure allows anyone to challenge the data. From November to assess the process of starting a busi - 2017 to October 2018 the team received professionals who routinely admin- ness than are individual firms. They also and responded to over 150 queries ister or advise on the legal and have access to current regulations and on the data. regulatory requirements in the specific practices, while a firm may have faced a . Because Doing Business areas covered by different set of rules when incorporating of the focus on legal and regulatory years before. The second reason is that arrangements, most of the respondents USES OF THE DOING the Doing Business questionnaires mostly are legal professionals such as lawyers, BUSINESS DATA gather legal information, which firms judges or notaries. In addition, officials are unlikely to be fully familiar with. of the credit bureau or registry complete Doing Business was designed with two For example, few firms will know about the credit information questionnaire. main types of users in mind: policy makers all the main legal procedures involved Accountants, architects, engineers, and researchers. It is a tool that govern - in resolving a commercial dispute freight forwarders and other profes- ments can use to design sound business through the courts, even if they have sionals answer the questionnaires related regulatory policies. Nevertheless, the gone through the process themselves. to paying taxes, dealing with construc - Doing Business data are limited in scope But a litigation lawyer should have little tion permits, trading across borders and should be complemented with other difficulty in providing the requested and getting electricity. Information that Doing Business sources of information. information on all the procedures. is incorporated into the indicators is focuses on a few specific rules relevant to also provided by certain public officials the specific case studies analyzed. These (such as registrars from the company or rules and case studies are chosen to be Governments and World Bank property registry). illustrative of the business regulatory Group regional staff environment, but they are not a compre - - After receiving the completed ques The approach is to work Doing Business hensive description of that environment. Doing Business tionnaires from the with legal practitioners or other profes - By providing a unique data set that respondents, verifying the information sionals who regularly undertake the enables analysis aimed at better under - against the law and conducting follow- transactions involved. Following the standing the role of business regulation in up inquiries to ensure that all relevant standard methodological approach for is Doing Business economic development, Doing information is captured, the Doing Business time-and-motion studies, also an important source of information Business team shares the preliminary - breaks down each process or transac for researchers. descriptions of regulatory reforms tion, such as starting a business or with the Country Management Units registering a building, into separate steps (CMUs) of the World Bank Group in Governments and policy makers to ensure a better estimate of time. The different regions. At a later stage, the offers policy makers a Doing Business time estimate for each step is given by team sends the final versions of the benchmarking tool useful in stimulating practitioners with significant and routine reform descriptions to the World Bank policy debate, both by exposing potential experience in the transaction. Group’s Board of Executive Directors, challenges and by identifying good prac- which then informs the governments tices and lessons learned. Despite the There are two main reasons that Doing of the reforms in their economies. narrow focus of the indicators, the initial Business does not survey firms. The Through this process, government debate in an economy on the results they first relates to the frequency with authorities and World Bank Group staff highlight typically turns into a deeper which firms engage in the transactions working on the economies covered discussion on areas where business regu - captured by the indicators, which is Doing Business can alert the team by latory reform is needed, including areas generally low. For example, a firm goes about, for example, regulatory reforms Doing well beyond those measured by through the start-up process once in its not reported by the respondents or Business . In economies where subnational existence, while an incorporation lawyer additional achievements of regulatory Doing Business studies are conducted, the may carry out 10 such transactions each reforms. In addition, the team responds indicators go one step further in offering month. The incorporation lawyers and - formally to the comments of govern policy makers a tool to identify good other experts providing information to ments or regional staff and provides practices that can be adopted within their Doing Business are therefore better able explanations of the scoring decisions. economies (see box 2.1).

36 29 ABOUT DOING BUSINESS have been informed by Doing Business Over the past decade governments have Many indicators can be Doing Business 11 since 2003. increasingly turned to Doing Business as considered “actionable.” For example, a repository of actionable, objective data governments can set the minimum providing unique insights into good prac - capital requirement for new firms, invest Many economies share knowledge on tices worldwide as they have come to in company and property registries to the regulatory reform process related to understand the importance of business increase their efficiency, or improve . Doing Business the areas measured by - regulation as a driving force of competi the efficiency of tax administration by Among the most common venues for tiveness. To ensure the coordination of adopting the latest technology to facili - this knowledge sharing are peer-to-peer efforts across agencies, economies such tate the preparation, filing and payment learning events—workshops where offi- as Colombia, Malaysia and the Russian of taxes by the business community. cials from different governments across Federation have formed regulatory And they can undertake court reforms a region or even across the globe meet reform committees. These committees to shorten delays in the enforcement to discuss the challenges of regulatory use the Doing Business indicators as of contracts. But some Doing Business reform and to share their experiences. one input to inform their programs for indicators capture procedures, time improving the business environment. and costs that involve private sector Researchers More than 70 other economies have participants, such as lawyers, nota - Doing Business data are widely used by also formed such committees. In East ries, architects, electricians or freight researchers in academia, think tanks, Asia and the Pacific, they include Brunei forwarders. Governments may have international organizations and other Darussalam; Indonesia; the Republic little influence in the short run over the institutions. Since 2003, thousands of of Korea; Myanmar; the Philippines; fees these professions charge, though Doing Business researchers have utilized Sri Lanka; Taiwan, China; and Thailand. much can be achieved by strengthening data or its conceptual framework to In the Middle East and North Africa: professional licensing regimes and analyze the impact of business regula- Algeria, the Arab Republic of Egypt, preventing anticompetitive behavior. tion on various economic outcomes. Israel, Kuwait, Morocco, Qatar, Saudi And governments have no control This section provides a brief overview Arabia and the United Arab Emirates. over the geographic location of their - of studies published in the top 100 jour In South Asia: Afghanistan, Bangladesh, economy, a factor that can adversely nals during the last 10 years or recently India and Pakistan. In Europe and Central affect businesses. distributed as a working paper of a well- 12 Asia: Albania, Azerbaijan, Croatia, established institution. The papers Georgia, Kazakhstan, Kosovo, the While many indicators Doing Business cited here are just a few examples of Kyrgyz Republic, the former Yugoslav are actionable, this does not necessarily research done in the areas measured 13 Republic of Macedonia, Moldova, mean that they are all “action-worthy” in Doing Business . by A comprehensive Montenegro, Poland, Tajikistan, Turkey, a particular context. Business regulatory review of the literature is provided in Ukraine and Uzbekistan. In Sub-Saharan reforms are only one element of a strategy Doing Business the research chapters of Africa: Benin, Burundi, the Comoros, aimed at improving competitiveness . Doing Business 2015 and 2014 the Democratic Republic of Congo, and establishing a solid foundation for the Republic of Congo, Côte d’Ivoire, sustainable economic growth. There are Regulation of firm entry is one of the Guinea, Guinea-Bissau, Kenya, Liberia, many other important goals to pursue— most investigated areas of business Madagascar, Malawi, Mali, Mauritius, such as effective management of public regulation. The results of this body of Niger, Nigeria, Rwanda, Senegal, Sierra finances, adequate attention to educa- research suggest that excessive regula - Leone, Sudan, Tanzania, Togo, Zambia tion and training, adoption of the latest tion of entry increases the number of and Zimbabwe. And in Latin America technologies to boost economic produc- informal businesses and employment. and the Caribbean: Argentina, Brazil, tivity and the quality of public services, A natural experimental study in Mexico Chile, Costa Rica, the Dominican and appropriate regard for air and water found that reforms that simplified busi - Republic, Guatemala, Jamaica, Mexico, quality to safeguard public health. ness registration increased registration 14 Nicaragua, Panama, Peru and St. Lucia. Governments must decide what set of by 5% and wage employment by 2.2%. Governments have reported more than priorities best suits their needs. To say These reforms also resulted in 14.9% of 3,500 regulatory reforms, 1,116 of which that governments should work toward informal business owners shifting to the a sensible set of rules for private sector activity (as embodied, for example, Thousands of researchers have utilized Doing Business Doing Business indicators) does in the not suggest that doing so should data or its conceptual framework to analyze the impact come at the expense of other worthy of business regulation on various economic outcomes. policy goals.

37 DOING BUSINESS 2019 30 15 environment are positively linked to main drivers behind “missing” corporate In Portugal, reforms formal economy. 21 32 export performance. bond markets in many economies. reducing the time and cost for company According to a formalization increased the number of study, a 1-day increase in transit time business start-ups by 17% and created reduces exports by an average of 7% More borrowers gain access to credit in 22 seven new jobs per 100,000 inhabit - in Sub-Saharan Africa. economies with a robust legal system Another study ants per month. These new start-ups that supports the use of movable assets found that a 1-day delay in transport time were more likely to be female-owned, as collateral and a well-developed credit for landlocked economies and for time- - were smaller and headed by less experi information sharing system. In a multi- sensitive agricultural and manufacturing enced and less-educated entrepreneurs economy study, the introduction of products reduce trade by more than 1% 23 compared to others, suggesting that the collateral registries for movable assets for each day of delay. Delays in customs reform created a more inclusive environ - was shown to increase firms’ access clearance also negatively impact a firm’s 16 33 ment for aspiring entrepreneurs. to finance by approximately 8%. ability to export, particularly when goods 24 are destined for new clients. Creditors’ ability to use movable assets, In econo - vis-à-vis real estate, is shown to increase mies with flexible entry regulations, a 1% Efficient and non-distortionary business 34 the debt capacity of firms. increase in trade is associated with an regulations are crucial for productivity. An in-depth increase of more than 0.5% in income per A study on India, for example, shows review of global bank flows revealed capita but has no positive income effects that inefficient licensing and size that firms in economies with better 25 in economies with more rigid regulation. restrictions cause a misallocation of credit information sharing systems and resources, reducing total factor produc - higher branch penetration evade taxes Research has also shown that potential 35 tivity (TFP) by preventing efficient firms to a lesser degree. - gains for consumers from import compe from achieving their optimal scale and tition are reduced in economies with 26 allowing inefficient firms to remain in cumbersome regulation. There is also a large body of work inves - 17 the market. tigating the distortionary effects of high The study concludes that tax rates and cumbersome tax codes removing these restrictions would boost Doing Business measures Even though and procedures. After a tax reform in TFP by 40-60%. In the European Union aspects of business regulation affecting Brazil, business licensing among retail and Japan, implicit taxes on capital use domestic firms, several studies indi- 36 firms rose by 13%. were shown to reduce the average size of cate that better business regulation is Research shows 27 firms by 20%, output by 8.1% and output associated with higher levels of FDI. that a 10% reduction in tax complexity 18 per firm by 25.6%. is comparable to a 1% reduction in effec - Also, the impact of FDI on domestic A recent study on 37 tive corporate tax rates investment depends on how business- Côte d’Ivoire, Ethiopia, Ghana and Kenya and higher tax 38 friendly entry regulations are in the demonstrates large productivity gains rates discourage entry. A recent study host economy. A study shows that FDI following the removal of firm-level distor - finds that a lower tax compliance burden can crowd out domestic investment in tions caused by uneven regulations and has a positive impact on the productivity 39 19 economies with costly processes for a poor business environment. of small and young firms. Research 28 starting a business. also shows that raising the efficiency Another study level of bankruptcy laws in select OECD points out that economies with simpler Labor market regulation—as measured high-income economies to that of the processes for starting a business have —has been shown Doing Business by United States would increase the TFP of higher international market integration to have important implications for 29 the former by about 30% through a rise on average. economies. According to one study, 20 in bank loans to large firms. graduating from school during a time of adverse economic conditions has a A well-designed insolvency framework persistent, harmful effect on workers’ is a vital determinant of debt recovery. In many economies, companies engaged subsequent employment opportunities. A reform making bankruptcy laws more in international trade struggle with high The persistence of this negative effect efficient in Colombia, for example, - trade costs arising from transport, logis is stronger in economies with stricter tics and regulations that impede their improved the recovery rate of viable firms 30 40 employment protection legislation. competitiveness and growth potential. significantly. In India the establishment indicators on Doing Business With the of debt recovery tribunals reduced non- Rigid employment protection legislation trading across borders, several empirical performing loans by 28% and lowered can also have negative distributional studies have assessed how trade costs interest rates on larger loans, suggesting consequences. A study analyzing the affect the export and import perfor - that faster processing of debt recovery labor market regulation literature points 31 mance of economies. A rich body of out that the impact of labor market regu cases cut the cost of credit. - A recent empirical research shows that efficient lation on productivity could be in either data showed Doing Business study using infrastructure and a healthy business direction, and the magnitude of the that insolvency resolution is one of the

38 31 ABOUT DOING BUSINESS sample of 190 economies during the impact is modest. The study provides WHAT IS NEXT? report cycle, when clear evidence that labor market regula - Doing Business 2020 tion equalizes the income of the covered the indicators will be considered for rankings. Doing Business inclusion in the workers, but youth, women and less- The Doing Business team is developing skilled workers generally are left outside a new indicator set—contracting with 41 this coverage and the benefits. Doing Business recognizes that the the government—that benchmarks the comparability of data over time is vital efficiency, quality, transparency, account - for both researchers and policy makers. ability and integrity of public procurement Indexes The team has not, therefore, made any systems around the world. Public Doing Business identified 20 different methodological changes in this year’s procurement refers to the process by data projects or indexes that use Doing 42 data. This decision is also supported by which public authorities purchase goods as one of its sources of data. Business the External Audit Report Doing Business or services from firms. Globally, public - Most of these projects or institu 2018, which can be accessed at http:// procurement accounts for between 10 tions use indicator level data and not www.doingbusiness.org/. and 25% of GDP on average, with govern- the aggregate ease of doing business ments cumulatively spending about $9.5 ranking. The indicator set most widely trillion in public contracts every year. used is starting a business, followed The government is the biggest buyer on by labor market regulation and paying NOTES many national markets and the policy taxes. These indexes typically combine Djank ov 2016. 1. issues endorsed through public procure- data with data from Doing Business T Doing 2. hese papers are available on the ment can be a catalyst for economic other sources to assess an economy website at http://www Business .doingbusiness.org/methodology. development, innovation, employment along a particular aggregate dimension F or more on the World Bank Enterprise 3. and growth. Inefficient public procure - such as competitiveness or innova- Surveys, see the website at http://www ment, on the other hand, is extremely tion. The Heritage Foundation’s Index .enterprisesurveys.org. F or getting credit, indicators are weighted 4. costly. It compromises competition, thus of Economic Freedom, for example, proportionally, according to their contribution raising the prices paid by governments Doing Business has used 22 indicators to the total score, with a weight of 60% for goods and services. Also, given the to measure the degree of economic assigned to the strength of legal rights index and 40% to the depth of credit information magnitude of the resources involved, freedom in the world in four areas, index. In this way, each point included in these the unique purchasing power of govern- including rule of law, government size, indexes has the same value independent of the component it belongs to. Indicators for ments, the multitude of stakeholders - regulatory efficiency and market open all other topics are assigned equal weights. 43 and the complexity of processes, public ness. Economies that score better in For more details, see the chapter on the ease procurement is particularly vulnerable these four areas also tend to have a of doing business score and ease of doing business ranking available at http://www to fraud and corruption. In the European high degree of economic freedom. .doingbusiness.org. Union alone, annual losses due to corrup- or more information on these databases, F 5. tion in public procurement could equal Similarly, the World Economic Forum see their websites: Women, Business and the Law (https://wbl.worldbank.org/); Logistic approximately €5 billion ($5.7 billion), data in its Global Doing Business uses Performance Index (https://lpi.worldbank. higher than the GDP of more than 30% Competitiveness Index to demonstrate org/); World Governance Indicators (http:// 44 info.worldbank.org/governance/wgi/#home); of Sub-Saharan African economies. how competitiveness is a global driver Country Policy and Institutional Assessments of economic growth. The organization (https://datacatalog.worldbank.org/dataset Doing Business also uses 13 indicators in Data are collected using a questionnaire /country-policy-and-institutional -assessment). five indexes that measure institutions, - that follows the life cycle of a procure Hallw 6. ard-Driemeier and Pritchett 2015. product market efficiency, labor market ment contract in the road infrastructure Schneider 2005; La P orta and Shleifer 2008. 7. efficiency, financial market development sector. The questionnaire was built or the law library, see the website at http:// F 8. www.doingbusiness.org/law-library. and business dynamism. These publicly to reflect internationally-recognized he annual data collection exercise is an 9. T accessible sources expand the general good practices in public procurement, update of the database. The Doing Business team and the contributors examine the business environment data generated peer-reviewed and piloted in 18 econo - extent to which the regulatory framework by incorporating it into Doing Business by mies in late 2017. The team is in the has changed in ways relevant for the features the study of other important social and process of collecting data for approxi - captured by the indicators. The data collection process should therefore be seen as adding economic issues across economies and mately 85 economies with the aim each year to an existing stock of knowledge regions. They prove that, taken individu- of publishing the results in the Doing reflected in the previous year’s report, not as ally, indicators remain Doing Business - Business website by early 2019 along creating an entirely new data set. While about 13,800 c 10. ontributors provided a useful starting point for a rich body side the indicator set’s preliminary data for this year’s report, many of them of analysis across different areas and methodology. Data collection will then completed a questionnaire for more than . dimensions in the research world be scaled-up to the full Doing Business one Doing Business indicator set. Indeed, the

39 DOING BUSINESS 2019 32 total number of contributions received for Millennium Challenge Corporation’s Open this year’s report is more than 17,200, which Data Catalog; Oxford University’s International represents a true measure of the inputs Civil Service Effectiveness (InCiSE) Index; received. The average number of contributions PricewaterhouseCoopers’ Paying Taxes per indicator set and economy is more than 2018: In-depth Analysis on Tax Systems seven. For more details, see http://www in 190 Economies Report; TRACE’s Bribery .doingbusiness.org/contributors/doing Risk Matrix; U.S. Chamber of Commerce’s -business. Global Rule of Law and Business Dashboard; 11. hese are reforms for which T Doing Business University of Gothenburg’s Quality of Doing is aware that information provided by Government (QoG) Standard Dataset; and was used in shaping the reform Business World Economic Forum’s Enabling Trade agenda. Index (ETI), Global Competitiveness Index he journal and institution rankings are from 12. T (GCI); Human Capital Index (HCI), Networked Research Papers in Economics (RePEc) and Readiness Index (NRI) and Travel and Tourism cover the last 10 years. They can be accessed Competitiveness Index (TTCI). or more on the Heritage Foundation’s Index F 43. at https://ideas.repec.org/top/top.journals of Economic Freedom, see the website at .simple10.html and https://ideas.repec.org http://heritage.org/index. /top/top.inst.allbest10.html. 44. opean Parliament 2016. 13. Sinc e 2003, when the Doing Business report Eur was first published, more than 3,400 research articles discussing how regulation in the areas measured by Doing Business influence economic outcomes have been published in peer-reviewed academic journals and 1,360 of these are published in the top 100 journals. Another 9,450 are published as working papers, books, reports, dissertations or research notes. Bruhn 2011. 14. Bruhn 2013. 15. Br 16. anstetter and others 2014. w 2009. 17. Hsieh and Kleno Guner , Ventura and Xu 2008. 18. C irera, Fattal Jaef and Maemir 2017. 19. Neir a 2017. 20. 21. P ortugal-Perez and Wilson 2011. F 22. reund and Rocha 2011. 23. Djank ov, Freund and Pham 2010. 24. Mar tincus, Carballo and Graziano 2015. reund and Bolaky 2008. 25. F al 2011. Amiti and Khandelw 26. C orcoran and Gillanders 2015. 27. 28. Munemo 2014. 29. Norbäck, P ersson and Douhan 2014. 30. Giné and L ove 2010. V 31. isaria 2009. 32. Beck er and Josephson 2016. 33. L ove, Martínez Pería and Singh 2016. 34. s 2017. Calomiris and other 35. Beck, Lin and Ma 2014. Mont eiro and Assunção 2012. 36. wless 2013. 37. La 38. Belitski, C howdhury and Desai 2016. 39. D abla-Norris and others 2017. waguchi and Murao 2014. 40. Ka 41. cherman 2015. Bet 42. T he projects or indexes using Doing Business as a source of data are the following: Citi and Imperial College London’s Digital Money Index; Cornell University and the World Intellectual Property Organization’s Global Innovation Index (GII); DHL’s Global Connectedness Index (GCI); Fraser Institute’s Economic Freedom of the World (EFW) index; Heritage Foundation’s Index of Economic Freedom (IEF); INSEAD’s Global Talent Competitiveness Index (GTCI); International Institute for Management Development’s World Competitiveness Yearbook; KPMG’s Change Readiness Index (CRI); Legatum Institute’s Legatum Prosperity Index;

40 DOING BUSINESS 2019 Starting a Business and Registering Property The role of training in facilitating entrepreneurship and property rights collected Doing Business This year ƒ data on training provided to business and land registry officers and users in By keeping records of a company’s formal existence and of land 183 economies. ownership rights, business and land registries play a critical role in any economy’s business environment. Registering a new company or ƒ Training opportunities at business and a property right is best done when registry officers are well trained land registries are only provided in a and knowledgeable. A combination of targeted training and effective limited number of economies. communication to both civil servants and the public can improve the overall quality of the public goods and services provided by business ƒ Only 24% of the economies measured and land registries. for this case study legally require professional training for business registry officers. The systematic training of registry Doing Business For the first time this year Mandatory training for business ƒ - officers is, therefore, vital for a well-func collected data on the training and commu- registry officers is associated with tioning registry system and the effective nication of changes provided to both the higher business registry efficiency implementation of government policies officers and the users of business and while annual training for land registry to promote entrepreneurship. land registries. Regarding registry officers, officers is also associated with higher - research covered qualifi Doing Business land registry efficiency. cation requirements for civil servants, the Relevance of training in mandatory training of officers, the business and land registries ƒ Communication of changes at the frequency and duration of training and Well-trained staff are more efficient business and land registries—through how changes in the registries are commu - and less prone to making errors when workshops for registry officers and nicated to them. Data were also collected assessing transactions or assisting dissemination campaigns for registry on training for registry users, including entrepreneurs. Business registrars users—is associated with a lower the workshops offered to new business typically undertake a series of training transaction completion time. owners and the targeted communication programs and examinations to gain of registry changes to the general public. the qualifications required to perform This case study examines how training their duties. The Canadian province of contributes to business activity by Alberta, for example, requires aspiring improving the quality of services provided business registrars to complete three by business registries (to entrepreneurs) levels of exams to receive the highest and land registries (to property owners). accreditation for the Corporate Registry Electronic System. To pass these exams, students complete three online courses (costing 365 Canadian dollars—about TRAINING REGISTRY $282—each) through which they learn OFFICERS how to perform procedures such as registering limited liability partnerships Business and land registry officers play a and amending corporate structures, key role in facilitating the delivery of high- 1 among others. quality services to new entrepreneurs.

41 DOING BUSINESS 2019 34 continuous training for land registry officers be practical, available to all Training registry officers about upcoming changes - who require it and range from univer is associated with a positive impact on the business sity-level courses for comprehensive operating environment. professional training to short-term courses for the introduction of new 5 techniques. provide training to business registry Land registrars also play a fundamental Land registries should officers. The content of the training is provide both formal and in-house role in guaranteeing legal certainty to diverse, varying from technical skills training for employees and ensure property rights transactions. To perform (legislative changes, types of entities and their duties local land officers need a that staff have adequate time to take 6 incorporation requirements, IT skills) to range of technical and communication advantage of training opportunities. soft skills (professional ethics, commu - skills that can be attained through staff Training is essential to convey registry 2 nication skills). In Spain, the Professional training programs. service standards (procedural times, Most economies Association of Registrars offers online for example) so that staff understand regulate the position of land registrar, and in-person courses free of charge their duties and are equipped to handle typically through minimum skill or educa- 7 for registry officers. Topics include the problems when they arise. tion requirements. Of the 183 economies legal forms and corporate structure of a included in this case study, 74% require company and the processes of registering that land registrars attain a minimum Training should not be limited to or dissolving each type of company, level of education (usually a university managers and supervisors. Land registry 4 among others. - degree in law), 47% require a profes staff that interact with the public on a sional qualification and 44% mandate daily basis should also be well trained. a minimum number of years of experi - Capacity-building training programs— Slightly more than half of the economies ence. Only 15% of economies require a such as that provided for the staff of that legally mandate training also define combination of four criteria—typically a Turkey’s land and cadaster agency in a minimum frequency or duration of minimum level of education, minimum 2018 or the workshop on land records that training. In China and Romania, for years of experience, professional management in Thailand held in 2017— example, mandatory training programs qualification and being a civil servant. can be important for maintaining the must be held annually. Registry staff typi - 8 Prospective land registrars in Bulgaria, for quality of land registry services. cally make decisions on the duration and example, must have a university degree in frequency of training programs. law, a license to practice law, evidence of Although most economies do not legally moral integrity and professional standing, The Land Administration Guidelines require continuous training, one-third no record of intentional criminal offenses, from the United Nations Economic of economies measured by this case and the candidate must not be an elected Commission for Europe suggest that study hold regular training programs on member of the Supreme Judicial Council. FIGURE 3.1 Most economies do not legally require training for business registry officers Continuous training in business and land registries Training required Most economies do not have legally binding regulation that mandates training for business registry officers (figure 9% 3.1). Indeed, just 24% of the economies 24% 43% measured for this case study legally 27% require professional training for business 76% registry officers. Such requirements vary 21% significantly among regions—nearly two- thirds (59%) of economies in Europe and Central Asia have a legal requirement Only minimum time for training, but only 11% of economies Only minimum frequency in the Middle East and North Africa Minimum time and frequency Training not required 3 do. Although group classes are the No minimum time or frequency Training required most common form of training, online learning tools are used in about 5% of economies with a legal requirement to Doing Business database. Source:

42 STARTING A BUSINESS AND REGISTERING PROPERTY 35 a variety of topics for land registry offi - FIGURE 3.2 Economies with training programs tend to score better than those without cials. Routine training is offered in 45% Score for starting a business, registering property of OECD high-income economies but (0–100) just 24% of economies in Sub-Saharan 100 9 Africa. While the topics of these training programs vary, they commonly include 90 administrative processes (offered in 35% of economies with training), property 80 rights (30%), new systems or innova- tions (27%) and customer service and 70 coordination with other agencies such as the cadaster or tax authority (22%). 60 Business and land registry efficiency 50 tends to be higher in economies where Training at the business registry Training at the land registry training is offered to registry staff. No Ye s Economies with mandatory training for business registry officers have a score for starting a business that is 6 points Doing Business Source: database. Note: For training at the business registry, this relationship is significant at the 1% level after controlling for income higher on average than those without per capita. For training at the land registry, this relationship is significant at the 5% level after controlling for income it (figure 3.2). Furthermore, economies per capita. with annual training programs at the land Training registry officers about upcoming and East Asia and the Pacific also run registry have a higher score (by 7 points changes is associated with a positive pilot tests before implementing new on average) for registering property than - impact on the business operating envi processes. Pilot testing is used in economies without it. ronment. Doing Business data indicate less than 20% of economies in Latin that it takes 12 days less on average America and the Caribbean, the Middle Communicating changes to to incorporate a business and 29 days East and North Africa, South Asia and registry officers less on average to transfer a property in Sub-Saharan Africa. Changes to regulations or processes at business and land registries can be communicated to staff in various ways. Workshops are the most common channel for communicating changes FIGURE 3.3 At business registries, officers learn to registry about changes to the business start-up Share of economies using communication channel process through workshops in 66% of (%) economies; in 39% of economies they 70 are informed via pilot tests. Workshops and pilot tests are also the most common 60 means of informing staff of changes to 50 regulations or processes at land regis- 40 tries; 56% of economies mainly use 30 workshops for this purpose while 24% use pilot tests (figure 3.3). 20 10 By using pilot testing, business and 0 land registries can identify and address Pilot tests Workshops Public broadcast Dissemination potential challenges before the full campaigns implementation of new processes. Pilot Business registries Land registries tests are most commonly implemented in registries in Europe and Central Doing Business database. Source: Asia, where 55% of business registries Note: An economy can use multiple channels of communication as listed above. Economies where changes are not and 41% of land registries use pilot communicated (two economies) are excluded from the sample. Workshops refer to the use of presentations for a group of people. Pilot tests refer to the use of small-scale experiments or tests to introduce changes. Dissemination testing. A significant share of registries campaigns refer to the use of social media or billboards. Public broadcast refers to using television or radio in the OECD high-income economies transmission to convey changes.

43 DOING BUSINESS 2019 36 of EET on business growth such as, economies where registry officers have Guatemala’s business registry maintains for example, enhancing entrepreneurs’ received training compared to economies a budget explicitly dedicated to training 12 access to credit. where no training is offered (figure 3.4). system users—the registry has an annual Training programs also budget of 70,000 quetzales (about succeeded in teaching new entrepreneurs - $10,000) specifically for training nota - managerial skills useful to the opera 13 ries and lawyers. In recent years the land tion of their businesses. In addition, TRAINING REGISTRY USERS registry spent 208,000 quetzales (about business-support interventions for small $28,000) to provide training to more and medium-size enterprises like training Registry users also benefit from training. than 3,000 system users, mainly notaries programs help improve firm performance As the popularity of entrepreneurial 14 and lawyers. and create jobs. training programs has risen in recent However, depending years governments worldwide have - on the national context and on the audi Skills training programs are more taken steps to develop and expand ence receiving the program, the impact successful when the private sector is such programs. of training programs can vary widely. An involved in curriculum development as experiment in Bosnia and Herzegovina, well as providing on-the-job training for example, showed that individuals Relevance of training for 17 via internships or apprenticeships. with an existing business tend to benefit entrepreneurs more from training opportunities and Jóvenes en Acción program, for Colombia’s In 2014 some 230 Entrepreneurship make more investments than individuals - example, combines classroom instruc Education and Training (ETT) programs 15 without a business. tion with on-the-job training at private were identified around the world; companies. This model’s short-term these include global initiatives like the outcomes—namely a higher probability International Labor Organization’s Know For more than three decades, the New - of formal employment and greater earn About Business and Start and Improve Enterprise Incentive Scheme—a program ings—were sustained over the long term. Your Business and regional programs like run by Australia’s Department of Jobs 10 Injaz Al-Arab. and Small Business—has provided accredited training and mentoring to help Training and information individuals start a business. Delivered by opportunities for registry users When EET programs target budding a network of 21 providers nationally, each entrepreneurs, results show significant Registries offer training to start-up firms year the scheme provides 8,600 people increases in self-employment, household in just over one-half of OECD high- with small business training, income consumption, and income two years after income economies, the highest share 11 support and rental assistance during their the intervention. Doing among the regions measured by Over time, evalua- 16 first year in business. Business ; registries in South Asia offer tions find positive and significant effects FIGURE 3.4 Starting a business and transferring property tend to take less time in economies where workshops are provided to registry staff Average time to transfer property Average time to start a business (days) (days) 70 70 60 60 50 50 40 40 30 30 20 20 10 10 0 0 Workshops at the business registry Workshops at the land registry Not used Used Source: Doing Business database. Note: Both relationships are significant at the 1% level after controlling for income per capita.

44 37 STARTING A BUSINESS AND REGISTERING PROPERTY answers to specific inquiries related to the least training to entrepreneurs (figure Communication of changes to procedures. Of the economies included 3.5). Where training opportunities are registry users in this case study, 57% have a help offered to entrepreneurs, these usually Business and land registries inform - desk specifically for property registra take the form of group classes, work - the public of changes—for example, to tion available to the public. In general, shops and seminars. Online courses are requirements for registering a company economies with a publicly-available available in one-third of the economies or selling a property—using various chan- help desk tend to have a higher score that offer training. nels of communication. In a majority of on the quality of land administration - economies, business registries commu 19 index. nicate changes to the business start-up Training can be offered to anyone The help desk, which is entirely process via a dissemination campaign starting a business but, in some cases, focused on user and customer satis- using social media or physical bill- special learning opportunities are faction, improves land registry quality boards (63%) and public broadcasts on directed to targeted groups, such as by providing feedback on the types of television or radio (65%). Training and - youth, elderly and woman entrepre issues raised by customers, which the workshops are a less-common method of neurs. However, just 17% of economies registry can then address. Since Peru’s conveying such changes (36%). that provide training implement targeted Superintendencia Nacional de los Registros training programs. In Niger the Chamber Públicos (SUNARP, the national public of Commerce and Industry and Income level plays a role in determining registry superintendency) established the National Employment Promotion which communication method is used. the Citizen Attention Center in 2014, Agency run an entrepreneurship training Business registries in around two-thirds the help desk has addressed more than program tailored specifically to young (70%) of low- and middle-income half a million inquiries. The center’s people, including high school students economies use public broadcasting; lawyers, registration law specialists, and other youths who did not complete those in high-income economies rely provide guidance free of charge on 18 formal education. more heavily on web-based methods of registration and general procedures at dissemination, such as publication on the land registry. All citizens have access the business registry’s website. to this service via e-mail, chat and a free Help desks play a critical role in hotline, Aló SUNARP . Economies that addressing citizens concerns and Similarly, when a new initiative is adopted have a help desk at the land registry inquiries regarding various processes by the land registry, or when significant tend to perform better on the ease of developed by public agencies. By changes are made to the legislation or a registering property indicator set and providing access to information help new system is implemented, registries in have a better score in the quality of land desks act as a strategic educational tool 20 46% of economies communicate those administration index. for the public; they allow citizens to have FIGURE 3.5 Most OECD high-income economies provide registry training to entrepreneurs Share of economies (%) 100 90 80 70 60 50 40 30 20 10 0 OECD high South Asia Europe & East Asia & Sub-Saharan Latin America & Middle East & income North Africa Africa Central Asia Caribbean Pacific No training Training Source: Doing Business database.

45 DOING BUSINESS 2019 38 FIGURE 3.6 Starting a business and transferring property tend to be faster when registry changes are introduced through dissemination campaigns Average time to transfer property Average time to start a business (days) (days) 60 60 50 50 40 40 30 30 20 20 10 10 0 0 Dissemination campaigns at the business registry Dissemination campaigns at the land registry Not used Used database. Source: Doing Business For the business registry, this relationship is significant at the 1% level after controlling for income per capita. For the land registry, this relationship is significant at the 5% Note: level after controlling for income per capita. -records-management-and-information changes to the public through a dissemi - -systems-community-of-learning-exchange#1. NOTES nation campaign; 61% rely most heavily T he share of economies (as measured by 9. on television and radio. this case study) that hold regular training This case study was written by Cyriane Coste, Marie programs for land registry officials is as Lily Delion, Fatima Hewaidi, Frédéric Meunier, Albert follows: OECD high income (45%); East Asia When citizens are made aware of the Nogues i Comas, Nadia Novik, Nathalie Reyes, Erick and the Pacific (40%); South Asia (38%); Tjong and Yuriy Valentinovich Avramov. changes implemented at the business Europe and Central Asia (32%); Middle East and North Africa (32%); Latin America and and land registries, they may be more or more information, see the registries F 1. the Caribbean (29%); and Sub-Saharan Africa training section of the website of the - likely to assert their rights with confi (24%). Association of Alberta Registry Agents data show that it Doing Business dence. V 10. alerio, Parton and Robb 2014. (AARA) at http://www.aaratraining.com 11. V alerio, Parton and Robb 2014. takes 13 days less on average to start a /index.aspx?tabid=1. V 12. alerio, Parton and Robb 2014. F ourie 1998. 2. business and 19 days less on average to 13. D ana 2001. 3. T he share of economies (as measured by transfer a property when a dissemina- 14. avo and Piza 2016. Cr this case study) with a legal requirement 15. Bruhn 2011. tion campaign is used to communicate for training is as follows: Europe and Central 16. F or more information on Australia’s New Asia (59%); East Asia and the Pacific (28%); changes to the public (figure 3.6). Enterprise Incentive Scheme, see the website OECD high income (27%); Latin America of the Department of Jobs and Small Business and the Caribbean (16%); Sub-Saharan Africa at https://www.jobs.gov.au/self-employment (16%); South Asia (13%); and Middle East and -new-enterprise-incentive-scheme-neis. North Africa (11%). CONCLUSION 17. alerio, Parton and Robb 2014. V or more information, see the website of the F 4. L 18. e Sahel. 2014. “Signature de conventions Asociación Profesional de Registradores at de financement entre le PRODEC, la CCIAN Training can be important for ensuring http://www.apregistradores.com/. et l’ANPE: près de 404 millions de FCFA UNE CE 1996. 5. the quality of business and land regis - pour soutenir la formation professionnelle et illiamson 2000. 6. W Doing Business tries. Data collected for l’insertion économique des jeunes.” January F 7. AO 2017. 30. http://news.aniamey.com/h/11947.html. 2019 suggest that training initiatives are F or more information on the World Bank’s Land 8. 19. T his relationship is significant at the 1% level Registration and Cadastre Modernization Project beneficial to both registry officers and after controlling for income per capita. in Turkey, see http://documentsworldbank.org entrepreneurs. Access to training for his relationship is significant at the 1% level 20. T /curated/en/774231526581694132/pdf after controlling for income per capita. registry officials and the public can be /Disclosable-Version-of-the-ISR-Turkey-Land -Registration-and-Cadastre-Modernization provided through a variety of channels. -Project-P106284-Sequence-No-21.pdf. Workshops, learning programs, help Additional information on the Workshop on desks, media broadcasts and awareness Land Records Management and Information Systems:Community of Learning Exchange can campaigns can improve the efficiency of be found at http://www.worldbank.org/en business and land registries and create a /events/2017/06/12/workshop-on-land well-informed public.

46 DOING BUSINESS 2019 Getting Electricity Understanding the benefits of wiring regulation ƒ A robust regulatory framework governing the electricity sector and An extensive fire broke out in one of Bamako’s largest markets, the accrediting the electrician profession Marché Rose, in December 2017. Business owners watched as their protects public safety by helping 1 investments were destroyed. After the fire was extinguished, the extent the market overcome asymmetry of information and moral hazards. of the damage was clear—hundreds of stalls had been burnt down at a cost of more than 1 billion CFA francs (approximately $1.7 million), most data show that Doing Business ƒ of which was shouldered by small firms. An investigation by the utility approximately three-quarters of later found that faulty installation of electrical wiring caused the fire. economies have an electrical code or regulation setting forth standards for electrical installations. Such incidents act as a reminder that Safety is often absent from the discussion electricity is inherently hazardous. on access to electricity. Faulty wiring can ƒ Requirements for qualifications and cause direct harm or indirect injury due However, electrification is crucial for skill development in the electrical to fires or explosions. To adequately economic development—its impact profession can prevent electrical mitigate safety risks, electricians must be on education, labor and income is well system failure incidents. Barely well qualified. However, without a proper documented. Household electrification two-thirds of the economies covered is estimated to result in an average rise accreditation system, asymmetry of require electricians by Doing Business to have accreditations guaranteeing of around 7% in school enrollment, 25% information arises—the seller of a good 2 their qualifications to carry out a (or service, in this case), has greater in employment and 30% in income. 7 building’s internal wiring. knowledge than the buyer. Where electricity services are deficient, The public is firm performance is negatively impacted. unable to differentiate a good electrician ƒ Mandatory inspections and liability World Bank Enterprise Survey data for from a bad one. Regulation is also neces- regimes introduce accountability vis-à- 2017 indicate that business owners in sary to offset negative market externali - vis the party undertaking the internal developing economies perceive a lack of ties that arise when a firm is not liable for wiring works of a building. Inspections 8 reliable electricity supply as the biggest the full cost of an economic decision. can be carried out by utilities, certified - obstacle to the operation of their busi Ultimately, the hiring decision will vary electrical engineers or third-party nesses, behind only access to finance, the depending on the perspective of the inspection bodies. Such inspections are 3 informal sector and political instability. consumer—one individual may be willing required in about 70% of economies. to hire an unqualified professional while the neighboring community may not (as ƒ Doing Business data indicate that There are myriad supply-side impedi- effective regulatory regimes that it would bear the full cost associated with ments to gaining access to electricity. protect the public from electrical faulty wiring in the case of a fire). A complicated connection process, for system failure incidents also tend - example, can make obtaining a new elec to have an efficient grid connection tricity connection difficult for a newly- 4 process. incorporated startup. THE HUMAN AND ECONOMIC Furthermore, once connected to the grid, firms may face COST OF FAULTY WIRING - blackouts that force them to halt produc 5 tion or hikes in electricity tariffs that Between 2011 and 2015, fire depart - 6 ments in the United States responded to undermine their productivity.

47 DOING BUSINESS 2019 40 are (i) electricians not conforming with nearly 200,000 fires at manufacturing or energy consumption have been found to 14 industrial properties. These fires caused wiring codes and standards, and (ii) spur economic expansion. the largest share of civilian deaths and - non-certified electrical engineers per direct property damage, averaging $1.2 forming wiring installation and connec- Small and medium-size enterprises 9 billion annually. tion works. Unsurprisingly, data indicate (SMEs) are especially dependent on grid Most industrial property that seven of every 10 fires in urban access as they often lack the resources fires are the result of incidents associated areas in Peru are the result of defective to rely on captive power solutions. Doe with “electrical distribution and lighting electricity installations, such as faulty and Asamoah (2014) find that without equipment” (figure 4.1). The types of wiring or equipment that does not reliable energy supply, SMEs in Ghana equipment most typically involved in a comply with the norms of the National struggle to boost output, resulting in fire’s ignition are the wiring installation or 15 Electric Code and Norm NTP 370.304 low profitability. transformer and power supply. Moreover, Similarly, research 11 Electrical Installations of Buildings. the leading cause of ignition is electrical on electricity provision in India shows failure (for example, a short circuit or an that the expansion of the electric - arc from a broken conductor). ity network boosts industrial develop - ment and increases the performance ENSURING SAFE ACCESS 16 Deadly fires involving electrical failure of smaller firms. TO ELECTRICITY MAKES are common, particularly in developing ECONOMIC SENSE economies. In South Africa, for example, Given the importance of electricity, electrical fires accounted for 80% of the managing the risks associated with its The risks associated with electrical economic loss caused by the 46,000 - use is imperative. The lack of profes failures undermine firms. At the same 10 fires that were attended to in 2015. sional certification requirements and time, access to the electrical grid is quality controls that characterize an a key driver of firm production. A Improper equipment often causes such inadequately regulated electricity sector casual relationship has been established fires. In 2012, a fire destroyed a shoe reinforce the asymmetry of information between electricity consumption and factory in Lahore; investigators later individuals face when assessing the economic growth in India, Indonesia, the - confirmed that a faulty electrical gen 12 - qualifications of electricians and engi Philippines and Thailand. erator was to blame. Incorrect wiring Across Sub- neers. Analogous to Akerlof’s “lemons installation is another major cause of Saharan Africa, it is estimated that the 17 problem,” electrical fires. Peru’s National Institute economic growth drag of a weak power unqualified electricians may of Quality (INACAL) has reported that infrastructure is about 2 percentage drive their qualified counterparts out of 13 the main causes of fires in that country points annually. the market since the latter group will In Nigeria, increases in FIGURE 4.1 Electrical failure is the leading cause of industrial property fires in the United States Share of industrial fires by cause (%) 60 50 40 30 20 10 0 Intentional Exposure fire All other Heating Torch, burner and Electrical soldering iron (or unkown) equipment distribution and lighting equipment Fires Direct property damage Sources: Campbell 2018; National Fire Protection Association. Note: Data are annual averages for the period 2011–15.

48 41 GETTING ELECTRICITY be reluctant to lower their prices if they cannot make a return on their educa - When electricians are certified and licensed, the public tional investment. In turn, the quality of has proof of their professional qualification and an electrician services will suffer. informed hiring decision can be made. Furthermore, in the event that a wiring across 190 economies, approximately defect causes a fire, the societal costs standards across Africa and aims to three-quarters of economies have an can extend beyond the private parties incorporate international good practices. electricity code or comprehensive legisla - onto neighboring communities. Because It currently has 11 statutory members. tive text that covers some or all of these private companies do not assume all areas. Having clear regulation in place damages, their decisions may stand in Communication is just as important as establishes a foundation for regulating contrast to societal interests. In short, regulation—market players must be the electrical profession. The National if the electricity market is unregulated, informed of the rules. A first step, there- Electric Code of Barbados, for example, the hiring party may find it economically fore, is to make the laws that stipulate sets forth requirements for professional justifiable to use an unqualified electri- the required professional qualifications qualifications to carry out electrical cian rather than a well-qualified (but for electricians—as well as norms on wiring, conditions for inspections of more expensive) technician. electrical equipment and installation electrical wiring and prerequisites for —available to the public. In most econo - the professional qualifications necessary A robust regulatory framework govern- mies, electricity codes and regulations to inspect electrical wiring. ing the electricity sector is necessary to are not publicly available online and only maintain public safety. Regulation must Doing half of economies measured by Independent regulatory agencies be transparent and cover a broad range provide a list of steps online Business contribute to the design of regulation of areas. Examples of good practice in which customers must complete to governing electrical installation safety electricity sector regulation are high- obtain a new connection. in good practice economies. An inde - lighted below, as are key findings from a pendent regulator can ensure clarity and Doing Business cross-economy compari- In the event of a legislative change to transparency and form the basis of a son of electrical wiring safety provisions. electricity sector regulation, market 18 system that encourages accountability. participants—including employees of the - distribution utility and private contrac In South Africa, for example, the statu- tors—must be informed swiftly. While tory Bureau of Standards (SABS) has an CLEAR REGULATION: THE modes of communicating such changes explicit mandate to promote quality in FIRST STEP TOWARD vary from one economy to another, products and services in several sectors, ENSURING PUBLIC SAFETY two-thirds of distribution utilities including engineering certifications and report organizing training workshops electrical appliances. A regulatory foundation establishes for engineers, technicians and inspec- - qualification requirements and electri tors involved in the connection process Common standards and rules encourage cal installation norms. In nearly all when a change in regulation occurs. The shared manufacturing facilities across economies private contractors carry 19 majority of economies, however, do not economies. out the internal wiring buildings. within It is indeed easier for provide public funds for such programs. And in about one-half of the economies private firms to operate beyond their covered by Doing Business , private firms borders in economies where regulation outside undertake the connection works is similar. The European Committee the building, from the switchboard to for Electrotechnical Standardization ENSURING ELECTRICIANS the network. It is, therefore, important (CENELEC) has strengthened regula - HAVE THE RIGHT SKILLS that commercial interests not be placed tory coherence by aligning the electrical ahead of public safety. installation standards of the members When electricians are certified and of the European Union through stan- licensed, the public has proof of their Regulation should provide clear rules on dard HD 384 on Electrical Installations professional qualification and an (i) norming electrotechnical equipment, of Buildings. These standards provide informed hiring decision can be made. (ii) stipulating professional requirements - clear guidelines on electrical installa Certification and licensing mechanisms in relation to electricians and install- tions for new buildings. Similarly, the can incentivize qualified professionals ers, and (iii) establishing an inspection African Electrotechnical Standardization to offer their services, as their creden - regime to ensure wiring works are up Commission (AFSEC), established in tial will allow them to stand out from to code. Doing Business data show that, 2008, promotes the harmonization of their uncertified counterparts.

49 42 DOING BUSINESS 2019 Electrical Workers (REWs) must partici- of these economies are in Sub-Saharan Proof of professional experience and - pate to renew their registration. The train Africa (figure 4.2). education is commonly required for ing consists of two modules: (i) statutory professionals to carry out electrical - requirements in electricity ordinance, wir While entry into the electrical trade installation works. Different approaches ing regulations and safety protocols; requires regulation, emphasis should exist across economies, however, with and (ii) dissemination of information on also be placed on continuing par - regards to licensing. Licenses can be the design, maintenance and testing of ticipation. Many electricians are issued by a dedicated public authority electrical installations. The CPD Scheme self-employed and are not associated —for example, the Electrical and requires REWs to complete the training, with a professional body at the time Mechanical Services Department in - which is provided by various organiza they receive their trade license. As Jamaica—or the national regulatory b o d y, tions and agencies, within the three years such, keeping them up to date on new as in the case of Uganda’s Electricity - prior to the expiration of their registra regulation or technological changes Regulatory Authority. Other econo- 21 tion. can be challenging. Most companies mies rely on professional organ- Similarly, in the United States, all lack the financial resources to offer izations or academic institutions to licensed professional engineers in the formal training to their employees. In issue licenses. In Pakistan, electricians state of California are required to obtain some economies, therefore, the onus is performing internal installations are 32 hours of continuing education at an put on electricians to remain active to required to be a member of the board approved trainee school—or any federate retain their license. of engineers, a professional body that or state apprenticeship program—every regulates the engineering profession. three years prior to the renewal of their Hong Kong SAR, China, offers an exten- In the Dominican Republic, licenses are license. Elsewhere, the private sector has sive professional training program—the issued by the Colegio Dominicano de taken an active role in organizing training Continuing Professional Development Ingenieros Arquitectos y Agrimensores programs to improve the qualifications of (CPD) Scheme—in which all Registered - (CODIA, a national engineering asso all construction professionals. The Korea ciation). In other economies, including Brunei Darussalam and Singapore, the utility is responsible for issuing Many African economies lack professional norms to undertake internal FIGURE 4.2 wire works certifications. Such cases are usually confined to smaller economies where the utility is vertically integrated and has broad national coverage. The requirements to be certified as an electrician also vary widely across economies. In Malaysia, to carry out internal wiring works, one must be registered as a professional engineer and have at least three years of pro - fessional experience, have success - fully completed the required courses as determined by the Board of Engineers Malaysia and have either undergone a professional assessment examination or be a member of the Institution of 20 Engineers Malaysia. In Germany, elec - trical contractors require a certification which they can only obtain through an , a program that combines an Ausbildung apprenticeship and education. While Doing most economies measured by Business mandate a minimum level of education to undertake internal wiring Source: Doing Business database. Note: Economies in blue have an electricity code (or set of regulations) that sets forth the professional qualifications installations, about 30% of economies (education and professional experience, for example) required to legally carry out a building’s internal wiring have no requirements at all—and many installation. Economies in grey have no such requirements.

50 43 GETTING ELECTRICITY and lack the appropriate equipment for internal wiring of the building to ensure Electric Association, for example, which 22 electrical services. compliance with the approved plans. is comprised of corporations that are Inspections approval is communicated engaged in electricity-related businesses, internally within the utility, allowing provides regular training programs taught Despite the information prescribed in - DEWA to carry out the external electri by leading experts in the industry. electrical codes and other regulation, cal works immediately without the need technical audits often reveal faults in for the customer to be present. design, installation and maintenance. Inspections provide an incentive to com - ENSURING THAT INTERNAL Third-party bodies carry out inspections ply with regulation. Initial inspections INSTALLATIONS ARE SAFE in about one-third of economies with —carried out before the facility becomes THROUGH MANDATED internal wiring inspection requirements. operational—can help identify and fix INSPECTIONS OR LIABILITY 23 - In Côte d’Ivoire, a public works institu any nonconformity of the installation. REGIMES tion, the Laboratoire du Bâtiment et des In economies where private sector Travaux Publics (LBTP), is tasked with - electricians make the external connec Regulatory compliance is as essential - ensuring that all internal electrical instal tion to the network, nearly all require as the rules themselves. In 2009, a fire lations comply with safety standards. that the utility inspect the connection caused by ineffective grounding and To this end, an inspector examines works ahead of the electricity turn-on. aging cables destroyed the building various points on the installation—the Similarly, in about 70% of economies of the Ministry of Foreign Affairs in grounding, the electrical panel, and so inspections Doing Business covered by Accra, Ghana. As is often the case in on. Clients can only apply for a new con - of a new building’s electrical wiring economies where there is a shortage of nection once the installation has been are compulsory. qualified engineers and a large informal approved and a certificate of conformity sector, although regulation existed— has been issued. Ghana’s National Wiring Code—it had Inspections are typically carried out - not been observed. In Kenya, the infor by the utility, a third-party agency or a - In some economies, private certified elec mal sector, also known as jua kali , is certified electrical engineer (figure 4.3). trical engineers provide internal wiring extensively involved in the manufactur - Utilities perform this function in nearly inspections. In Croatia, an internal wiring ing sector. A study of electrical safety 40% of economies where internal wiring certificate must be submitted before the management in Kenya’s informal sector inspections are required. In the United utility, Hrvatska Elektroprivreda (HEP), jua kali shows that most operators do Arab Emirates, the Dubai Electricity and installs the meter. This certificate, which not follow electrical safety regulations Water Authority (DEWA) checks the FIGURE 4.3 Who conducts the inspection of the internal wiring installation prior to the electrification of a commercial building? Share of economies with internal wiring inspection method (%) 100 90 80 70 60 50 40 30 20 10 0 South Asia Sub-Saharan OECD East Asia & Europe & Latin America & Middle East & Caribbean Pacific Central Asia Africa high income North Africa Other Third-party agency Certified private engineer No inspection carried out Utility Source: Doing Business database.

51 DOING BUSINESS 2019 44 data reveal that economies Doing Business proves that the electrical installation electrician profession is well regulated, that provide efficient grid connection norms are respected and the informal has been tested, can be prepared by services (as measured in terms of time the client’s electrician, provided they sector is small, liability regimes may be or cost) also tend to have (i) clear legal have the required accreditation, or—in sufficient to ensure public safety, pro - standards stating the qualifications nec - vided there is an efficient court system most cases—by a third-party firm if the essary to carry out the internal works and to foster accountability. Internal wiring electrician lacks the required accredita- (ii) a requirement for an inspection of the inspections for lower risk constructions tion. The utility issues a final connection internal installation. At the global level, may not be necessary, as is current approval once this documentation is those low-income economies that meet deemed satisfactory. practice in OECD high-income econo- at least one of these two criteria connect mies such as Germany and Sweden. businesses to the grid in about 25% less These economies do not require internal Because the circumstances surround - time on average. And across income wiring checks as all electricians (i) must ing electrical failures vary significantly, groups, economies with an internal wir - - undergo a rigorous professional certifi blanket recommendations on internal ing inspection have, on average, lower cation process and (ii) are held legally wiring inspection schemes are unhelpful. connection times. “Smart” regulation responsible that the installations they Mandatory inspections may be advisable does not need to come at the expense of carry out are up to code. in economies with a history of faulty an efficient connection process. wiring incidents; however, a risk-based approach may be more applicable in The reality in other economies, however, Dubai provides a good example of bal - - economies where the electricity profes stands in stark contrast to that of the ancing efficiency and wiring compliance. sion is well-regulated and qualification OECD high-income economies. Many To be certified by the Dubai Electricity standards are enforced. Despite varied - economies lack the qualified profession and Water Authority (DEWA), prac - practices, one recommendation holds als needed to impose strict qualification ticing electrical engineers must pass true across all economies: inspectors - requirements, making the implementa the Municipality Exam for Electrical should receive adequate training and tion of liability regimes more challenging. Installation. This requirement allows the have relevant qualifications. Even where the electrician profession is - utility to minimize the number of proce well regulated, unqualified professionals dures needed to complete the process may still offer their services if the infor - Beyond inspections, another way to when the application is submitted without mal sector is large and law enforcement ensure the safety of internal instal - jeopardizing wiring safety standards. The is weak. Many economies with these lations is to implement clear liability internal wiring inspection is scheduled characteristics (rightfully) require that all regimes, placing an added responsibility - when the application to the utility is sub internal wiring installations be inspected on electricians by holding them legally mitted through the utility’s online portal to avoid incidents. responsible when incidents occur. In the by the customer’s electrical contractor. Philippines, for example, the Board of Moreover, due to the standardization of Electrical Engineers can suspend elec- internal wiring guidelines, the external trical engineers for unprofessional or REGULATION AND connection works are commenced at the dishonorable conduct. The law specifies EFFICIENCY ARE NOT same time the inspection is carried out, the circumstances under which an elec- MUTUALLY EXCLUSIVE with the results communicated internally trical engineer can be suspended from within DEWA. professional practice (for example in the Electricity sector regulation is crucial. case of fraudulent documents). Also, However, regulation should be designed data suggest that electric- Doing Business in cases of wiring regulation violations, to transfer the regulatory burden away ity services are in no way made worse the law gives any person, firm or asso - from end-users. In Mauritania, the util- where there is regulation that governs ciation the right to file charges result - ity requires that all electrical materials - internal wiring inspections and qualifica ing in the revocation of the electrical bought on the private market—including tions. For example, there are fewer power engineer’s license. the transformer—be checked by the outages, on average, in economies where utility before the private electrical con - an internal wiring inspection is necessary, The choice of whether to employ tractor can build a sub-station; this adds which in turn may reduce the likelihood internal wiring inspections or liability time and interactions to the connection of faulty wiring defects. Moreover, across regimes (or both) varies from economy - process. Alternatively, in Nigeria, mate regions and income groups, there is no to economy as it depends on myriad fac - rials must be purchased from accredited significant difference in the number of tors (such as existing regulation, the size distributors, which sell transformers that procedures—or even the connection of the informal sector or history of wir - already include a test certificate from time—in economies with internal wiring ing incidents). In economies where the the manufacturer.

52 45 GETTING ELECTRICITY FIGURE 4.4 The number of procedures to connect to the grid are similar across income groups whether an internal wiring inspection is required or not Average number of procedures to obtain a new electricity connection 6 5 4 3 2 1 0 High income Upper middle income Low income Lower middle income Economies with internal wiring inspections Economies with no internal wiring inspections Source: database. Doing Business 6. Abeber ese 2016. Doing Business data demonstrate that inspection requirements compared to 7. Ak erlof 1970. economies with efficient electrical con - those with none (figure 4.4). Kapp 19 50. 8. nection processes tend to have clear legal 9. Campbell 2018. 10. ire Protection Association of South Africa F standards and quality controls for new 2015. electrical connections. In other words, CONCLUSION ernational Copper Association Latin Int 11. regulatory regimes that protect the public America. 2012. “El 70% de los incendios urbanos se debe a las malas instalaciones from electrical failure incidents also tend Established standards for electrical electricas.” September 4. http:// to deliver good services to businesses materials, wiring installations and programacasasegura.org/pe/2012/09/04 through an efficient grid connection electricians are not only essential for /el-70-de-los-incendios-urbanos-se-debe-a -las-malas-instalaciones-electricas/. process or a reliable network. public safety—they also make economic Asafu- 12. Adjaye 2000. sense. Qualification requirements for sen and Dalgaard 2013. 13. Ander professional electricians help individuals 14. Ok afor 2012. 15. Doe and Asamoah 2014. overcome the asymmetry of information NOTES 16. Rud 2012. they would otherwise face. Accreditation Ak erlof 1970. 17. This case study was written by Ahmad F. systems that focus on both experience ren-Lewis 2014. W 18. AlKhuzam, Jean Arlet, Viktoriya Ereshchenko and 19. Josias 2014. and education are essential. Silvia Carolina Lopez Rocha. F 20. or more information, see Board of Engineers Le Republicain. 2017. “Violent incendie au 1. Malaysia Application for Registration as a - Aligning national norms with interna grand marché de Bamako hier: Un mort et Professional Engineer . Available at http://www des centaines de magasins partis en fumée.” .bem.org.my/documents/20181/43352 tional standards can ensure regula - December 13. https://www.maliweb.net /PEnotes.pdf. tory coherence and facilitate the safe /societe/violent-incendie-grand-marche-de 21. F Continuing or more information, see the use of electricity. Regulation alone is not -bamako-hier-mort-centaines-de-magasins Professional Development Scheme for Registered -partis-fumee-2721832.html. Electrical Workers of the Hong Kong SAR, sufficient—compliance with the law 2. Jimenez 2017 . China, Electrical and Mechanical Services is just as important. To this end, many ccording to World Bank Enterprise Survey A 3. Department. Available at https://www economies have instituted inspection data, over 11% of business owners in .emsd.gov.hk/en/electricity_safety/cpd developing economies perceive a lack of _scheme_for_rew/index.html. regimes for internal wiring installations. reliable electricity supply as their biggest 22. s 2007. Mutai and other Other economies have put in place obstacle, behind access to finance (15%), the Rang 23. el, Queiroz and Oliveira 2015. liability regimes so that the electricians informal sector (12%) and political instability (12%). For more information, see http://www carrying out the wiring installation .enterprisesurveys.org. are held accountable in the case of Geginat and Ramalho 2015. 4. future incidents. ott and others 2014. 5. Sc

53 DOING BUSINESS 2019 Trading Across Borders Training for trade facilitation ƒ In today’s globalized and highly digitalized trading environment, the ability of trade professionals Nearly a decade ago, the World Customs Organization (WCO) highlighted to benefit from electronic systems the importance of education for trade facilitation by advocating for largely depends on training and knowledge-based services, training and capacity building. The World Trade communication. In recent years, Organization’s (WTO) Trade Facilitation Agreement (TFA) that entered has captured reforms Doing Business into force in February 2017 further emphasized the importance of these that highlight the fundamental role instruments in trade facilitation. The WCO foresaw that the effective use of played by education, training and - information and tools—such as electronic platforms and risk-based inspec communication in trade facilitation. tions—by customs professionals would help economies reduce the time 1 and costs associated with trading across borders. In today’s globalized and ƒ Of the economies that implemented highly-digitalized trading environment, however, the ability of trade profes - trade reforms as captured in Doing sionals to reap the benefits of these tools depends heavily on training and Business 2019 , 85% regularly provide communication. Indeed, the WTO cites training as one of the most important training to customs clearance officials. 2 elements in the successful implementation of trade facilitation measures. ƒ Training of customs clearance officials and customs brokers is positively associated with lower border and on behalf of the exporter or importer. Cross-border trade is a complex endeavor. documentary compliance times. Customs officials perform several tasks According to the United Nations on behalf of customs administrations Conference on Trade and Development ƒ Doing Business data indicate that the including valuation, documentary checks, (UNCTAD), the average international average time required to clear customs physical inspections of cargo and post- trade operation involves between 20 (for both exports and imports) is 34% clearance audits. Customs brokers’ and 30 parties. Trading includes not only lower in economies where clearance - duties include preparing trade documen government actors such as customs officers receive regular training tation, ensuring the proper transfer of and port authorities but also brokers, compared to those where no regular cargo as well as advising on exporting commercial banks, vendors, insurance training is provided. 3 and importing requirements. Given these companies and freight forwarders. Worldwide, organizing workshops is ƒ tasks, communication and training on Customs clearance officials and customs the most commonly-used channel of new trade processes, as well as on IT brokers are two of the most important communication to convey changes developments, are critical. parties involved in a typical international in practice or regulations to customs trade transaction. They have different officials and customs brokers. Doing Business data show that education but interconnected roles with regards to and training, together with communica - education, training and communication A majority of economies do not require ƒ tion with customs clearance officials since they are the providers and users of a formal university degree to operate as and customs brokers, play an important customs services, respectively. While the a customs broker. However, brokers are role in the successful implementation customs clearance official is an employee required to obtain a license in 75% of of trade-related reforms. Education and of the customs administration who acts Doing Business economies measured by . training facilitate the implementation as a law enforcement officer, the customs of new policies as well as the develop- broker is a third-party, private entity ment of the specific skills or knowledge who deals directly with customs officials

54 47 TRADING ACROSS BORDERS - required to make those policies opera 4 tional. Training can target various Education, training and communication can support staff levels—from senior to operational the successful implementation of trade-related staff—and encompass different types of regulatory reforms. programs, including technical training on daily operations, training linked to experience—can, for example, result in the implementation of new processes no exception. Since trade facilita - 5 fewer errors when firms are completing or the training of new staff. tion catalyzes economic growth, Training can customs documents, contributing to educating stakeholders to adopt trade support the successful implementation of time savings and increased trade reforms effectively should be a central trade-related reforms by communicating 9 12 volumes. government priority. relevant information about new programs Bangladesh has Governments provide trade- and their requirements—simply knowing identified its top priorities for trade related training to customs clearance more about reforms could make govern- - facilitation as capacity building activi officials in 98% of economies measured ment employees more likely to adopt by ties at ports and customs offices as Doing Business and to customs them. Indeed, education and training are well as communicating with relevant brokers in 87%. - positively associated with reform imple actors to ensure the proper adoption 10 mentation. Education and training can of regulations. Significant improvements to Bolivia’s also improve communication, which is foreign trade regime in 1985 were crucial for conveying pertinent informa - systematically offset by administrative Education, training and communication 6 tion on new standards. shortcomings including high levels of - can support the successful implementa bureaucracy and opacity in the public tion of trade-related regulatory reforms service. To address these issues, starting (box 5.1). India has supported its A well-trained and educated workforce in 1997 the government introduced a ambitious reform agenda by providing is equipped with the knowledge to series of initiatives to strengthen public regular training to both customs offi - perform their day-to-day duties as well administration, including redesigning cials and private sector agents, as well as to increase the efficiency of the overall the customs administrative struc- as by establishing Customs Clearance trade process. By developing workers’ ture and implementing educational Facilitation Committees which bring competencies and skills, training can act programs for customs officers. Of these together actors involved in international as a catalyst for improved organizational 7 initiatives, education-related policies trade at regular meetings. Similarly, the productivity. Morocco customs has been had the greatest impact. The introduc- Islamic Republic of Iran has invested implementing a series of reforms in the tion of a new competitive selection in training customs officials, setting area of human resources and commu- model for customs officers, higher up “expert pools” of customs officials nication since the 1990s. Together with qualification requirements and tech- with existing technical training who - the introduction of an online declara nical evaluations through exams—as are responsible for electronic goods tion system and strong anticorruption well as mandatory on-the-job training clearance, as assigned by the national measures, an improved training system and a required minimum number of single window. for customs personnel and new commu - training hours—helped to further nications channels (including a customs reduce customs clearance times. Governments are tasked with designing intranet and public website) for both Furthermore, even while imports into and implementing their national trade staff and the public have substantially Bolivia were declining, the effective tax facilitation programs. Because of this, improved the efficiency of the customs 13 rate increased, they are often best placed to lead service. Indeed, improved customs reflecting enhanced - stakeholder education and communica efficiency was associated with a 7.7% customs efficiency through corruption tion strategies through their customs increase in customs revenue between reduction and the implementation of 8 administrations and National Trade 1998 and 2002. new regulations. Facilitation Committees. They are also well positioned to provide standard- Governments use a variety of mecha - 11 ized, harmonized training programs. nisms to communicate changes in THE ROLE OF GOVERNMENT trade processes to customs officials Furthermore, governments have a stake IN EDUCATING AND Doing Business and customs brokers. in educating service providers and users, COMMUNICATING CHANGE data show that a workshop is the most since the effective implementation of commonly-used channel followed by trade reforms will ultimately boost trade Training policies typically require disseminating information on a website volumes. Providing adequate training— the support of the government to be (figure 5.1). Interestingly, 65% of especially to firms with limited trading successful, and training in customs is

55 DOING BUSINESS 2019 48 Promoting reform implementation through education, BOX 5.1 training and communication has captured reforms that underscore the fundamental role played by education, training and com Doing Business In recent years - munication in international trade processes. These reforms target not only the qualifications of the customs workforce but also the training provided to government officials and private sector agents when implementing new reforms, conducting pilot tests or communicating changes. data show Well-trained customs professionals are more likely to navigate new trade procedures effectively. Doing Business that the share of governments providing regular training (at least once a year) to customs clearance officials is significantly higher in economies where reforms were implemented than in economies where they were not. A decrease in the time to clear goods at the border in El Salvador, for example, was associated with the 2017 recruitment and training of customs clearance officers. A lack of trained customs officers had previously hampered clearance efficiency, despite the introduction of numerous trade reforms. Customs officials are more likely to receive regular training in reforming economies Training frequency of customs officials Training frequency of customs officials in non-reforming economies in reforming economies 3% 2% 14% 33% 62% 86% Regular training Only with new processes/systems No training One-time training Source: Doing Business database. Note: Reforming economies include 56 economies that implemented trade reforms in and Doing Business 2019 . Non-reforming economies Doing Business 2018 include 132 economies for which no reform was captured in Doing Business 2018 Doing Business 2019 . “No practice” economies (Eritrea and the Republic of or Yemen) are excluded from the sample. One-time training refers to providing training only once over the duration of service. Results hold when comparing economies within the same income group, with one exception in high-income economies; however, the difference is relatively small. - Training has been pivotal when introducing new electronic systems, such as customs management systems or national elec tronic single windows. Doing Business data show that many economies—including Afghanistan, Grenada and Jamaica in 2016, Cabo Verde and the Comoros in 2017 and Angola and Lesotho in 2018—have experienced reductions in the time to pre - pare documentation following training programs or pilot tests when implementing the Automated System for Customs Data (ASYCUDA) World, a customs data management system developed by UNCTAD. Brazil, Brunei Darussalam and Kenya also experienced positive results following the implementation of national electronic single window systems in 2017; by increas - ing awareness of the new platforms through training and seminars, they reduced documentary compliance time as measured by Doing Business . A pilot test period, together with effective communication between government agencies, government officials and private sec- tor agents, can also benefit reform implementation. The pilot period allows both for the testing and correction of a new system’s functionality ahead of full implementation and deepens user knowledge of the new procedures. Pilot testing can also serve to mit - igate resistance to change among public and private actors. The phased implementation of ASYCUDA in Angola (2017–18) and Lesotho (2015–18) provide good examples of successful pilot test periods. In both economies, ASYCUDA was initially launched as a pilot, allowing customs administrators the opportunity to test implementation issues and traders to get accustomed to the new system before its full launch. Subsequently, ASYCUDA has been used effectively in Angola and Lesotho, decreasing docu - mentary compliance time for exports and imports in both economies.

56 49 TRADING ACROSS BORDERS FIGURE 5.1 Most economies use workshops to convey changes in trade practices or regulations to customs officials Share of economies where government used specified communication channel (%) 100 80 60 40 20 0 Dissemination campaign Workshop Pilot Broadcast Website Low income Upper middle income Lower middle income High income Source: Doing Business database. Note: An economy can use several channels of communication as listed above. Economies where no communication of change is available (the Syrian Arab Republic and Timor- Leste) are excluded from the sample. Dissemination campaign refers to the use of social media or billboards. Pilot refers to the use of small-scale experiments/tests to introduce changes. Broadcast refers to using television or radio transmission to relay changes. programs offered by international orga - low-income economies use websites— nizations—both for newly recruited only slightly below the 76% rate of THE ROLE OF CUSTOMS employees as well as for experienced high-income economies—even though CLEARANCE OFFICIALS IN 15 customs officers and executives. the Internet penetration rate in low- INTERNATIONAL TRADE income economies is just 12% (compared - to a rate of 82% in high-income econo The future orientation of customs While customs agencies traditionally mies). This figure can be attributed to the have been responsible for revenue collec will require a transition toward a - 16 fact that customs officials and brokers tion, border management and fraud knowledge-based model. Greater typically have greater access to the prevention, they are now also expected investment in the education and skills Internet than the average citizen. to streamline clearance processes while development of clearance officials is ensuring border security. The new important. The World Bank Group’s Although governments remain the most “dynamic” role of customs agencies Customs Modernization Handbook 2005 — important source of capacity-building - demands that customs clearance offi which emphasized human resources training for customs officials and brokers, cials maintain a high level of efficiency, management—identified the educa- opportunities also exist for private sector knowledgeability and accountability, tion and training of staff as the most - involvement. In 2011 Mozambique imple underscoring the need for well-educated important factor affecting customs mented the Janela Única Electrónica customs personnel. performance, a view that has been 17 (JUE), an electronic single window reiterated by several recent studies. system, to streamline and harmonize Education and training support the - Education also improves the transfer 18 its customs procedures. The JUE is professional development of customs ability of skills and is key to building 19 managed by a private company which clearance officials. Such training provides technology absorption capacity. provided technical training on its use to an opportunity for customs agencies to all agents involved in international trade emphasize the importance of integrity at Providing regular training to customs to ease the migration from a physical work, deliver anti-corruption messages clearance officials is positively related to to an online system. Training sessions and promote the agency’s code of data customs efficiency. Doing Business 14 included specific modules for customs conduct. indicate that the average time required Customs employees should officials, brokers, freight forwarders, ship - to clear customs (for both exports and meet the educational requirements ping line representatives, port operators, - imports) is about 34% lower in econo defined by customs authorities to qualify port authorities and banks. Additional mies where clearance officers receive for and effectively perform the role of training is available when new processes regular training compared to those clearance official. For their part, govern- are launched or upon request. where no regular training is provided ments should take advantage of training

57 DOING BUSINESS 2019 50 (figure 5.2). This trend holds in three Economies that offer regular training for customs clearance officials have FIGURE 5.2 of the income groups (upper middle shorter customs clearance times than those that do not income, lower middle income, and low Average time to complete customs clearance (hours) income), but does not hold in high- 50 income economies. Sub-Saharan Africa and the Middle East and North Africa 40 are the two regions where the difference in clearance time is the most dramatic 30 between economies where regular training is offered and where it is not. In 20 Cabo Verde regular training of customs officials helped the country to success- 10 fully upgrade its automated customs data management system from ASYCUDA++ 0 to ASYCUDA World in January 2016. Imports Exports Throughout 2016, Cabo Verde delivered Training regularly offered Training not regularly offered training courses to customs officials, brokers and traders, enabling these actors to take full advantage of the new Doing Business Source: database. identified 128 economies where regular training (defined as occurring more than once a year) Note: Doing Business system, which reduced documentary is provided to customs clearance officials. Doing Business identified 58 economies where such training is not provided. compliance time by 24 hours for both exports and imports. Sub-Saharan Africa. In 2016, the country The experience of the Democratic introduced a single window for trade, Republic of Congo highlights the The Europe and Central Asia region has which began as a pilot. The following importance of training as well as the highest share of economies that year the government continued the communicating changes as catalysts require a university degree to operate implementation of the single window, to trade reform implementation in as a customs official (70%), followed by Sub-Saharan Africa (68%). At 29%, the OECD high-income group has the lowest Requiring customs officials to have a university degree is not necessarily FIGURE 5.3 share (figure 5.3). However, a compar - associated with improved customs efficiency ison among regions of the average time for export clearance shows that requiring Average customs clearance time for export (hours) Share of economies (%) - a college degree is not necessarily asso 50 100 ciated with better customs efficiency; - many other variables impact the effi ciency of customs procedures (such as 40 80 technology, legal support, infrastruc- ture, strong anti-corruption measures 30 60 or membership in a trade agreement). Even though fewer OECD high-income 20 40 economies require that customs officials have a university degree, candidates are - required to complete customs clear 10 20 ance vocational training before their appointment. Furthermore, in economies 0 0 - in Sub-Saharan Africa where a univer Europe & Middle East OECD high East Asia Sub-Saharan Latin America South Asia sity degree is not required, but regular & Caribbean Central Asia income & North Africa Africa & Pacific training is provided to customs officials, Export customs clearance time Provide regular training Require university degree the average customs clearance time for both exports and imports is approxi - mately 44% lower than in those where Source: Doing Business database. Note: The average customs clearance time for exports measures the number of hours needed to complete procedures a university degree is required, but no required by customs authorities only and excludes the time for product-specific inspections such as phytosanitary or regular training is provided. technical standard inspections. Regular training is defined as training provided at least once a year.

58 51 TRADING ACROSS BORDERS The customs broker profession is no requirement for brokers in the United - publishing information on new require evolving. Ongoing customs reforms, the States to have a university degree, they ments on its website and providing Internet and e-commerce are prompting must be licensed; this requires passing training workshops to the private some customs brokers to offer more a background check and an exam to sector. The government also opened sophisticated services (advisory, for demonstrate their understanding of the trade facilitation centers equipped example) rather than merely filing docu- harmonization tariff schedule, federal with Internet-connected computers to 21 ments for customs clearance. regulations and customs electronic assist and train users. By implementing Brokers interfaces. Furthermore, the American the single window together with the are expected to also support the interests Customs Association, an independent - accompanying training and commu of governments by ensuring compliance public intergovernmental organization, nication, the Democratic Republic of with regulations and payment of duties offers continued training to licensed Congo reduced document preparation and taxes. It is not, therefore, surprising customs brokers on recent changes time by 122 hours for exports and 42 that many economies require more than in the law as well as updates in the hours for imports; border compliance one qualification (for example a license electronic systems used by the trade time was also cut, by 219 hours for and an exam) to operate as a customs community. Requirements in some exports and 252 hours for imports. broker. In turn, data show that it is more - economies go beyond licenses or educa expensive to hire more educated customs tion. To become a customs broker in the brokers, particularly for imports (figure West African Economic and Monetary 5.4). Furthermore, in economies that do THE CUSTOMS BROKER: Union, for example, a petitioner must not require any qualification, high income THE LIAISON BETWEEN deposit a minimum of 25 million CFA per capita is not necessarily associated TRADERS AND OTHER francs (around $44,500) with the with more expensive brokers; instead, ACTORS INVOLVED IN customs administration as a financial in economies requiring more qualifica - INTERNATIONAL TRADE guarantee in the case of errors or fraud. tions, even with lower income levels, In 156 of the 190 economies measured Doing Business , customs brokers by act as intermediaries between traders FIGURE 5.4 Customs brokers are more expensive in economies with greater and other parties involved in moving qualifications requirements goods internationally. Of these, only Average income per capita Average cost to hire a customs broker 56 economies mandate the use of ($) ($) brokers by law. Customs brokers play 160 30,000 a pivotal role thanks to their in-depth 140 knowledge of the industry, customs 25,000 laws, tariffs and regulations; often, 120 brokers are the only channel through 20,000 100 which producers can sell their goods internationally. By hiring an agent, firms 80 15,000 gain access to international markets 60 without incurring the up-front costs 10,000 and risks associated with searching 40 20 for new markets or negotiating deals. 5,000 20 These responsibilities are transferred to the broker, making the life of the 0 0 trader easier. One qualification No qualifications Three qualifications Two qualifications Many economies require brokers to be Average income per capita Imports Exports licensed or to pass an official examina- tion. Indeed, obtaining a license is the Sources: database; World Development Indicators database (http://data.worldbank.org/data- Doing Business most common qualification for customs catalog/world-development-indicators), World Bank. brokers; 75% of economies measured Note: Doing Business collects data on whether the following qualifications are required to operate as a customs broker: university degree, pass an official exam or obtain a license. “One qualification” means that only one of these Doing Business by require brokers to qualifications is required; “three qualifications” means that a broker must have a university degree, pass an official be licensed. In the United States, U.S. exam and obtain a license. The average cost to hire a customs broker is calculated based on Doing Business data for 188 economies. Of these, 24 economies do not require any qualifications, 68 require one qualification, 68 require Customs and Border Protection regu- two qualifications and 28 require three qualifications. The “no practice” economies of Eritrea and the Republic of lates customs brokers. Although there is Yemen are excluded from the sample.

59 DOING BUSINESS 2019 52 regions with the highest share of econo - mies that require a university degree to In 87% of economies measured by Doing Business , operate as a customs clearance official, customs brokers participate in training programs while the OECD high-income group organized by the customs administration. has the lowest share of economies with this requirement. Economies in South Asia and Europe and Central Asia most , customs Doing Business measured by it is costlier to hire customs brokers. commonly provide customs officials Market segmentation in the customs brokers participate in training programs with regular training. organized by the customs administration. brokerage profession may also explain the higher cost for brokers in economies Among economies where the customs administration offers training to customs with lower income per capita, where a brokers, 45% offer training only when new few large companies control a substantial NOTES processes or systems are launched; 36% market share. This case study was written by Iryna Lagodna, offer training on a regular basis (figure Nuno Mendes dos Santos, Esperanza Pastor Nuñez data indicate that the Doing Business 5.5). Requirements for licensing, examinations de Castro, Tiffany (Rongpeng) Yang, Marilyne average time for documentary compli - and training for customs brokers are Youbi and Inés Zabalbeitia Múgica. ance is 41% lower in economies that offer fundamental, as a lack of these can lead 1. W CO 2008. 22 WT 2. O 2015. training to customs brokers compared to to delays in the clearance process. The 3. s 2011. McLinden and other those where training is not available. This WCO recommends that any customs oll and Moynihan 2015. Kr 4. suggests that training could be beneficial reforms or modernization be accom- s 2011. McLinden and other 5. 6. oll and Moynihan 2015. Kr in terms of familiarizing brokers with new panied by the necessary training and 7. Mckinnon and other s 2017; Elnaga and Imran regulation that could enhance their effi - sharing of information between govern- 2013. ciency in complying with documentary ments and brokers. Furthermore, the 8. De W ulf and Sokol 2005. 9. Hampson 200 2. requirements. International Trade and Customs Broker 10. zaman and Abu Yusuf 2011. Uz - Association recommends the establish 11. ciuoli 2016. Ur ment of capacity-building initiatives for 12. olpe Martincus and Carballo 2010; Volpe V Martincus, Carballo and Graziano 2015. brokers through certification programs CONCLUSION ulf and Sokol 2005. De W 13. 23 and examinations. In 87% of economies 14. De W ulf and Sokol 2005. Doing Business data show that educating 15. Ex amples of training programs include those offered by the World Customs Organization, customs officials and customs brokers Most economies only FIGURE 5.5 such as the Virtual Customs Orientation provide training to customs brokers when through regular training is positively Academy (VCOA), the CLiKC! Customs new processes or systems are introduced associated with lower border and docu - Learning and Knowledge Community and integrity development workshops. For mentary compliance times. Training is more information, see the WCO’s website also related to the successful implemen - 13% at http://www.wcoomd.org. Similarly, the tation of trade reforms. Indeed, most of Inter-American Development Bank offers a 6% 36% course on Development of Management and the economies that implemented trade Leadership Capacity for Customs Supervision Doing Business reforms as captured by and Control that can be taken online. provide regular training to customs clear - CO 2008. W 16. O 2015; Moïsé 2013. 17. WT 45% ance officials. inters 2004. W 18. amovitz and David 1994. 19. Abr Most economies do not require formal P eng and York 2001. 20. Economies where no W 21. CO 2016. higher education to work as a customs training is offered 22. W CO 2016. clearance official or customs broker. Economies where training s 2011. Arvis and other 23. is offered only once However, many economies do require Economies where training other types of qualifications, such as is offered only following launch of new processes obtaining a license or passing exams, or systems to serve as a broker. More educated Economies where training customs brokers are more expensive is offered regularly to hire, particularly for imports. A majority of customs administrations Source: Doing Business database. - offer regular training to customs offi Note: “Training is offered only once” is defined as cials. Interestingly, Europe and Central providing training only once over the duration of Asia and Sub-Saharan Africa are the two service. The sample includes 183 economies.

60 DOING BUSINESS 2019 Enforcing Contracts and Resolving Insolvency Training and efficiency in the judicial system ƒ Worldwide only 101 of the 190 economies measured by Doing Business have a specialized A well-prepared and robust judiciary is fundamental to the rule of law. The commercial jurisdiction in place; only training of judges facilitates the prompt resolution of trials and can lead to 31 have a specialized court handling judicial decisions of higher quality. Training can also foster greater uniformity insolvency cases. and predictability of decisions and can increase public confidence in the legal system’s ability to deal effectively with specialized matters. Well-trained ƒ Judicial training programs can improve judges maintain the rule of law through enduring principles and predictable judicial performance. Economies processes, while also responding to a rapidly changing society. with training programs for judges on insolvency-related issues tend to perform better in the Doing Business resolving insolvency indicators. phenomenon. The first specialized training Ensuring that the judiciary can handle schools were established in France, the complex commercial cases efficiently is Judicial training is a key factor in ƒ Netherlands and the United States in the a fundamental aspect of any rule of law the successful implementation and 1960s. Previously, it was believed that - system. For that reason, specialized judi positive impact of regulatory reform - judges already had all the required knowl cial education and training are critical to governing commercial and insolvency edge and, therefore, would not benefit guaranteeing the efficiency and quality court proceedings. from additional or continuous training. of court processes. The decisions of ƒ Training formed a central part of In France judges received no training judges trained in basic economics, for the United Arab Emirates’ strategy throughout their careers despite suffering example, are significantly less likely to be to modernize its judiciary and has from a poor public image as archaic and appealed than decisions made by their been instrumental in the successful 1 cut off from the world and society. After untrained counterparts. Furthermore, creation of specialized commercial they publicly expressed their distress judicial training can prevent ruling courts, the introduction of electronic over their lack of preparation for the errors; courts where judges receive case management systems and growing complexity of legislation, the training show lower decision reversal the implementation of a new 2 French National School for the Judiciary rates. Extensive literature assesses how insolvency regime. 5 was created in 1959. the regulatory environment for contract ƒ Institutionalized training programs enforcement and resolving insolvency for judges in Indonesia supported the affects abroad range of economic In recent years, efforts have been successful implementation of reforms 3 outcomes. made—mainly by the European Union Empirical research also establishing small claims courts and and national judicial schools meeting at supports the view that efficient contract the successful adoption of new insolvency international fora—to establish a set of enforcement is essential to economic laws, decreasing the time to resolve 4 common principles of judicial training development and sustained growth. insolvency cases. (table 6.1). Although these principles are not recognized as international stan- dards, they represent a first effort toward THE CONCEPT OF JUDICIAL convergence by interested stakeholders. TRAINING As law and litigation have grown more Despite the long history of courts, the complex in recent decades, the need training of judges is a relatively recent

61 DOING BUSINESS 2019 54 Principles of judicial training TABLE 6.1 Common principle European Judicial Training Network principles International Organization for Judicial Training principles Acknowledging the complexity of the judicial role, judicial Judicial training is a multidisciplinary and practical type of training, Judicial training is training should be multidisciplinary and include training in law, essentially intended for the transmission of professional techniques multidisciplinary and non-legal knowledge, skills, social context, values and ethics. and values complementary to legal education. includes legal and non-legal knowledge, professional skills and values. All judges should receive initial training before or on their Judges need to receive All members of the judiciary should receive training before or upon their appointment. initial training. appointment. All members of the judiciary should also receive regular training All judges should have the right to regular continuous training after Continuous training is a throughout their careers. It is the right and the responsibility appointment and throughout their careers and it is their responsibility right and responsibility of all members of the judiciary to undertake training. Each to undertake it. They should have time for it as part of their working for judges. member of the judiciary should have time to be involved in time. Every Member State should put in place systems that ensure training as part of their judicial work. judges are able to exercise this right and responsibility. To preserve judicial independence, the judiciary and judicial In accordance with the principles of judicial independence the design, Institutions responsible training institutions should be responsible for the design, content and delivery of judicial training are exclusively for national for judicial training content, and delivery of judicial training. institutions responsible for judicial training to determine. should determine the content. Judges should train Training should primarily be delivered by judges who have been Training should be judge-led and delivered primarily by members of the judiciary who have been trained for this judges. previously trained for this purpose. purpose. Active and modern educational techniques should be given primacy Judicial training should reflect best practices in professional Adequate education in judicial training. and adult training program design. It should employ a wide techniques should range of up-to-date methodologies, involving new technologies, be used. distance/online learning (complementary when appropriate) and electronic media. All states should provide their institutions responsible for Member States should provide national institutions responsible for Appropriate funding judicial training with sufficient funding and other resources to should be allocated. judicial training with sufficient funding and other resources to achieve achieve their aims and objectives. their aims and objectives. The senior judiciary Judicial leaders and the senior judiciary should support judicial The highest judicial authorities should support judicial training. training. should support training. Sources: Adapted from European Judicial Training Network 2016 and International Organization for Judicial Training 2017. including a large number and diverse for specialized judges has increased. deal with these types of cases must type of creditors, insolvency represen- However, just 101 of the 190 econo- be highly knowledgeable and develop tatives, practitioners and the debtor have Doing Business mies measured by particular skills (such as financial and 8 9 6 facing financial difficulties. a specialized commercial jurisdiction accounting skills). Judges that in place, and only 31 economies have a specialized bankruptcy court handling Solving commercial disputes is 92 days faster in economies with a FIGURE 6.1 insolvency cases. Having a specialized specialized commercial jurisdiction commercial jurisdiction can result in Average time to enforce contracts shorter resolution times (figure 6.1). (days) 800 Specialized courts are created to handle 700 complex legal issues in the areas of 600 commercial, insolvency, securities or 500 intellectual property law. Such courts 400 require specialized judges with training 300 in specific and complex procedures. In an ever-changing business world, 200 judges’ knowledge must be kept current 100 on the rapidly-evolving business regu - 0 latory environment (box 6.1). Economies without specialized Economies with specialized commercial jurisdiction commercial jurisdiction Bankruptcy cases, in particular, are - complicated due to the demanding inter database. Doing Business Source: 7 ests of the many stakeholders involved, Note: The relationship is significant at the 5% level after controlling for income per capita.

62 55 ENFORCING CONTRACTS AND RESOLVING INSOLVENCY F acilitating investment through enhancing specialized training for lawyers and judges BOX 6.1 Companies, corporate finance and capital markets are increasingly complex—they impact wages, financial stability and economic growth. Together with frequent legal and technological changes, this complexity creates obstacles for firms. Businesses must be able to rely on trained, certified professionals (such as accountants, attorneys and judges) to navigate these obstacles. The a judiciary’s function as a check and balance hinges upon its ability to maintain practical know-how. Regulatory uncertainty in new, complex areas of corporate law increases the risk for information asymmetry among market players. Judges are expected to stay current on the latest investment instruments. Guaranteeing minority investor protections against accrued risks, digital currencies b or initial coin offerings are only several examples of the novelties to which legal professionals must adapt. Given the multidisciplinary nature of business law—it intersects with economics, finance and accounting—specialized training for judges and legal practitioners can act as a critical, mitigating tool. Indeed, the capacity of judges to fairly and efficiently resolve economic disputes is a function of their knowledge of the law and the facts before them. Training can help improve both their understanding of the law and their ability to grapple with complicated financial or technological concepts. - There is a positive correlation between an economy’s judicial capacity in commercial law and the quality of its business environ c Doing Business data for 155 economies show that 120 economies offer training to ment, court efficacy and public confidence. - practicing lawyers, but only 83 provide specialized training on commercial and corporate law. Nearly 76% of high-income econo mies offer specialized legal training to practicing lawyers while only 24% of low-income economies do. Mandatory training of lawyers is more common in low-income economies, but it is rarely specialized Share of economies offering training to lawyers (%) 100 90 80 70 60 50 40 30 20 10 0 Training is offered Training is mandatory Training is specialized Lower middle income Upper middle income Global average Low income High income Source: Doing Business database. The requirements to become a judge vary widely across economies. In 10 economies, judicial candidates to courts adjudicating commercial disputes do not require a law degree (but must satisfy alternative requirements). Only 38 economies—including France, Peru and Madagascar—require that candidates have prior experience or specialized knowledge of business law, finance or capital markets. Specialized training on business, corporate law, finance or capital markets is offered to judges in only 55 economies. Among the main reasons for the lack of specialized training globally are court workload and a lack of targeted training d directly applicable to the cases for adjudication. continued

63 DOING BUSINESS 2019 56 (continued) acilitating investment through enhancing specialized training for lawyers and judges F BOX 6.1 About one-third of economies offer specialized training to judges Share of economies offering specialized training to judges (%) 50 45 40 35 30 25 20 15 10 5 0 0 Middle East & South Asia Europe & Latin America East Asia OECD high Sub-Saharan & Pacific income North Africa Central Asia & Caribbean Africa Global average database. Doing Business Source: Justice systems should act as facilitators of investment and economic growth, not obstacles. data suggest that Doing Business specialized training of lawyers and judges is an area that could benefit from more attention and resources worldwide. Even where continuing training and education are offered, they are seldom mandatory or practical to the cases assigned and often exacerbate judges’ lack of expertise. However, imposing standardized mandatory training is not an adequate solution. Setting minimum stan - dards should not come at the cost of motivation. Instead, integrating training plans into annual judicial performance evaluations (or otherwise creating incentives to continue learning) are opportunities to enhance judicial systems’ indirect but significant role in investment. alumbo and others 2013; Lorizio and Gurrieri 2014; Magnuson and others 2014. a. P b. ay of raising capital through the sale of virtual coins or tokens. New businesses can create and sell their own virtual currencies Initial coin offerings are an alternative w without selling stocks. c. F or more on the EBRD’s Core Principles for Commercial Law Judicial Training in Transition Countries, see www.ebrd.com/documents/legal-reform/core-principles-for- commercial-law-judicial-training.pdf. d. European Parliament 2017. that is not characteristic of an ordinary Accumulating job-specific human capital 11 commercial judge. in handling insolvency cases vis-à-vis REGULATORY REFORM, In France, insolvency the general legal knowledge of judges - judges, as a rule, have a good under TRAINING OF JUDGES AND has an outsized effect on bankruptcy standing of how the business operates, JUDICIAL EFFICIENCY GO outcomes by significantly reducing the which ensures a more active involve - HAND IN HAND duration of the insolvency procedure ment of the judges in the hearings and 10 12 and achieving more reliable results. evidentiary stage. Judicial training programs can improve Insolvency training To successfully carry out a reorganiza - judicial performance. Specialized training of the judiciary has a broader impact on the successful implementation of tion proceeding, for example, a judge and continuous learning on insolvency law regulatory reforms. By providing quality- must demonstrate sound accounting and practice allow the competent judge to make better, more informed decisions, and financial skills; therefore, insolvency based training to judges after insolvency taking into account elements such as the reforms have passed, the system is judges should be designated on their merit and ability to fully understand the - significantly more likely to operationalize financial well-being and viability of a debt regulatory changes. or’s business, the effect of the procedures financial situation of the debtor, a skill

64 57 ENFORCING CONTRACTS AND RESOLVING INSOLVENCY on the contracts and assets of the debtor, There is a positive association between economies with training FIGURE 6.2 and so on. Economies with training programs and a higher resolving insolvency score programs for judges score better and are Average resolving insolvency score closer to the best regulatory practice as (0–100) Doing Business measured by the resolving 60 insolvency indicators (figure 6.2). 50 Training can act as an essential conduit 40 for the introduction of new laws, 13 methods and practices to the judiciary. 30 Training can, in effect, make the decisions 20 of judges more predictable. By providing all judges with the same information 10 and knowledge on a particular regula- tory reform, they will be more likely to 0 Training available Training not available interpret the new rules similarly, resulting - in more coordinated, uniform deci sions. Chile adopted a new insolvency database. Doing Business Source: law in 2014 that specifically required Note: The relationship is significant at the 5% level after controlling for income per capita. insolvency law training for civil judges dealing with insolvency proceedings; the positive effects on the judicial system as United Arab Emirates law also mandated that appellate courts - a whole, but also in the areas of commer The United Arab Emirates has been adopt measures to guarantee the law’s cial litigation and insolvency specifically. modernizing and improving the quality successful implementation. Since then, Judicial training has played a funda - and efficiency of its judicial system judges nationwide have been trained mental role in boosting the effectiveness since the early 1990s. The country has on the new insolvency law and the time of structural reforms, particularly the effectively redesigned the architecture to resolve insolvency proceedings has creation of specialized commercial courts of its judicial system by implementing decreased in Santiago. Furthermore, as - in 2008, the implementation of an elec court management techniques, adopting Doing Business 2018 , the time captured by tronic case management system in 2014 new technologies and professionalizing to complete a liquidation procedure after and the adoption of a new insolvency judicial officers within the courts. These an attempt at reorganization fell from 3.2 regime in 2016. Targeted and continuous efforts have had transformative and Doing Business to two years. data show a positive association between resolving Economies with training programs are more likely to have reformed in FIGURE 6.3 insolvency reforms and training programs in the area of resolving insolvency Doing Business 2019 (figure 6.3). Indeed, among economies with the same income per capita, econo - Share of economies with training programs (%) mies with training programs are 11% 70 more likely to have reformed in this area 60 Doing Business 2019 in . 50 The cases of Indonesia and the United 40 Arab Emirates provide two examples of 30 economies where training programs have supported the implementation of reforms 20 in the areas of commercial litigation and 10 - insolvency. Both countries recently intro 0 duced regulatory changes that made Resolving insolvency reforms No resolving insolvency reforms in DB2019 (14 economies) in DB2019 (176 economies) it easier to enforce contracts and to resolve insolvency as measured by Doing , but they also adopted robust Business Doing Business Source: database. training frameworks for judges which Note: Nine of the 14 economies that reformed in the area of resolving insolvency in 2017/18 have training programs on insolvency law. These economies are Belgium, Djibouti, the Arab Republic of Egypt, Kenya, the Kyrgyz Republic, contributed to the successful implemen- Malaysia, Pakistan, Rwanda and Turkey. The relationship is significant at the 1% level after controlling for income tation of these reforms. per capita.

65 DOING BUSINESS 2019 58 these matters. This training has resulted in faster resolution times, lower appeal Training can act as an essential conduit for the rates and higher-quality judgments. introduction of new laws, methods and practices During the past 3-4 years, around 35% of to the judiciary. first instance judgments were appealed and, of these decisions, the appellate 15 court upheld 87-89%. These results system implemented within 12 months - suggest that the vast majority of the deci training has allowed judges to put legisla - of the enactment of the reform. Training sions taken by the commercial court were tive reforms into practice and to use new is also offered in the form of workshops high-quality decisions in the first place. case management tools to reduce delays in cooperation with other national and and improve the quality of their decisions. international public institutions and The United Arab Emirates also invested programs funded and provided directly resources in providing comprehensive Although training of judicial officers has - by the courts. Monitoring and evalua training for judges on new technology. In been an integral part of the strategy tion are part of the training system; the 2014 Dubai Courts adopted a new case to modernize the judiciary since the Dubai Judicial Institute and the Human management system and established a 1990s, it was formally introduced as a Resources Department for the courts Case Management Office in every court fundamental component in the systems measure the impact of every training to aid the flow of cases and expedite the of appointment, performance measure - three months after completion. trial process. A Smart Petitions mobile ment, incentives and promotion for application also facilitated the filing of judges with the Dubai Judicial Authority Judicial training has played a funda - petitions, court document submission Law of 2016. The law stipulates that mental role in the United Arab Emirates and payment of court fees. High-quality prospective judges must pass a training in the effective implementation of regula - training allowed these new systems course before their appointment and that tory reforms to improve judicial efficiency to be used effectively. Following the they must attend an orientation before and quality in commercial litigation. A implementation of these reforms at the sitting on the bench. Additionally, judges’ commercial court was established in commercial court, average resolution promotions are linked to their completion 14 2008 among six specialized courts. times declined. From 2014 to 2018, the of training programs (they are required average time for filing the case, going to attend a minimum number of training Different circuits were created within through the legal process and obtaining programs each year). Indeed, there is a the court to hear disputes related to the final judgment decreased from 380 positive association between the accu - commercial contracts, bankruptcy, to 351 days. By learning how to use the racy of judgments—understood as the intellectual property, banking, commer - online case management system, many percentage of cases upheld as opposed cial companies, exclusive distribution judges stopped relying on clerks to check to the cases overturned or amended by licenses and maritime issues. Judges in and print documents for the case and, by the appellate court—and the number of each circuit received technical training on trainees following the formal inclusion of training in the United Arab Emirates’ The higher the number of trainees, the more accurate the judgments FIGURE 6.4 judicial authority law (figure 6.4). Number of trainees 300 Under the direction of the Judicial Council, 250 the general strategy for providing judicial 2017 training in the United Arab Emirates is 200 - guided by existing needs and the require ments of the judicial inspections done 150 on individual judges. Training is provided 100 - by the Dubai Judicial Institute, a dedi 2016 cated institution for judicial training. The 50 2015 institute offers continuous and special - ized training in diverse topics such as 0 84 81 83 82 80 79 78 legal awareness, Islamic economics and Cases upheld in second instance (%) Judicial Council leadership as well as customized training programs. Also, all Source: Dubai 2016; Dubai 2017. commercial court judges receive training Note: Accuracy of judgments is the percentage of cases upheld as opposed to the cases overturned or amended by on every legal reform or new court the appellate court.

66 59 ENFORCING CONTRACTS AND RESOLVING INSOLVENCY 17 restructuring, improved work proce- the organization of judicial training. the end of 2017, more than 300,000 peti- dures, human resource development, In 2003 the Supreme Court assumed tions had been electronically submitted new working groups and a new judicial the authority to provide judicial training and processed by Dubai Courts. training center, all of which contributed and became the primary counterpart to reducing the number of unresolved for international assistance on judicial Specialized training for judges on insol- 18 cases from 20,314 in 2004 to 11,479 reform. vency procedures was essential for Within the Supreme Court, the 21 in 2009. the United Arab Emirates to realize Judicial Training Center (JTC) evolved to A significant milestone was the full benefits of its new insolvency - be the central unit responsible for devel reached in 2015 when Indonesia intro - 19 law. Seeking to create a robust legal oping and organizing judicial training. duced a dedicated procedure for small insolvency framework, the United Arab claims that allows for parties’ self- 22 Emirates adopted a new insolvency law representation. - Based on the estab The JTC exercises its mandate by in 2016 that introduced a reorganization operating three separate training lished small claims procedure, the JTC procedure and replaced an outdated also developed a five-day small claims programs: integrated initial judicial regime. The adequate application of new training, continuing judicial education court training for judges on efficient case 20 insolvency procedures required active and certification training. administration. This training resulted in The two- court involvement; judges needed rele - a marked increase in the clearance rate year integrated initial judicial training vant bankruptcy experience and training for small claims, from 79% in 2015 to program, for judge candidates, includes 23 to carry out this role effectively. Judges 88% in 2016. - a combination of courses and an intern have been receiving training since the ship. The continuing judicial education enactment of the law. In 2017 bankruptcy program, which provides supplementary Judicial reform and the development judges participated in two workshops training for judges who have worked for of judicial training in Indonesia are also on the new law—one, for 27 bankruptcy 1-5 years and 6-10 years, is organized reflected in the Doing Business data, which judges, was delivered by the Judicial based on training needs. The certification show a decrease in the time to resolve Institute and the other, for 31 judges, training program is designed for ad-hoc a commercial dispute through a local was delivered by the U.S. Department of judges and judges serving in special first-instance court, both in Jakarta and Justice. Senior judges provided additional courts and covers specific issues such Surabaya (figure 6.5). training programs and workshops. as, for example, mediation, commercial disputes and fisheries. In the area of resolving insolvency, 24 After several years of promoting a Indonesia’s 2004 insolvency law coherent system for judicial training, The emphasis on training has spilled included an explicit training provision 25 the United Arab Emirates is experi - over to other areas of Indonesia’s legal for prospective judges. Training was encing improvements in court efficiency system. Reforms to improve judicial also provided for existing commercial and quality of decisions. Judges are efficiency were implemented by the - court judges with jurisdiction over insol 26 embracing a culture of continuous Supreme Court, including organizational vency cases. As the judges’ expertise learning and development, which allows them to acquire specialized skills. The time to resolve a commercial dispute through a local first-instance FIGURE 6.5 court decreased in both Jakarta and Surabaya Indonesia Average time to enforce contracts Shaken by the impact of the 1997 Asian (days) 600 financial crisis, Indonesia has worked continuously to improve its commercial 500 regulatory framework. With the assis - tance of the IMF, the government has 400 focused on bringing commercial sophis - 300 tication to the courts, including through 16 training. - The independence of the judi 200 cial system was strengthened in 1999 100 with the adoption of the so-called “one roof” approach which was implemented 0 Jakarta Surabaya following the transfer of administra- DB2014 DB2019 tive control over the courts from the - executive branch to the judiciary; funda database. Source: Doing Business mental changes were also made to

67 DOING BUSINESS 2019 60 FIGURE 6.6 The time to resolve insolvency of SMEs has steadily decreased in Jakarta NOTES This case study was written by Najah Nina Time to resolve insolvency (months) Dannaoui, Maksym Iavorskyi, Herve Kaddoura, 80 Klaus Koch-Saldarriaga, Joseph Antoine Lemoine, Tiziana Londero, Raman Maroz, Madwa-Nika 70 Phanord-Cadet, Marion Pinto, María Antonia 60 Quesada Gámez and María Adelaida Vélez Posada. 50 1. ye and Wright 2011. Ba 40 2. 7. Nees 200 30 3. See D am 2006; Trebilcock and Leng 2006; 20 Mitman 2016. 10 4. o, Lanau and Pompe 2014; Ahsan Esposit 2013; Laeven and Woodruff 2007. 0 DB2013 DB2011 DB2009 DB2007 DB2005 F École Nationale or more information on the 5. de la Magistrature , see https://www.enm .justice.fr. 6. A specializ ed commercial jurisdiction is Doing Business Source: database. established by setting up a dedicated stand- Doing Business The time to resolve insolvency of SMEs in Jakarta as measured by Note: has remained 13 months alone court, a specialized commercial section since 2012. within an existing court or specialized judges within a general civil court. 7. UNCITRAL 2001. can rely on the court system to resolve increased, so did the performance of istrich 2006. 8. Rachlinski, Guthrie and W their case in a timely fashion, with a the courts, as evidenced by their swift Rachlinski, Guthrie and W istrich 2006. 9. 27 erson and others 2018. 10. Iv competent judge correctly interpreting adjudication of cases. The latter is also UNCITRAL 2001. 11. and implementing the law. Judges corroborated by Doing Business data. The 12. or more on the perspective of insolvency F should be well-trained professionals time to resolve insolvency of small and judges, see Broude and others 2002. oude and others 2002. 13. Br that enjoy the confidence of the busi- medium-size enterprises (SMEs), for 14. Dubai, Dubai C ourts 2008. ness community and society—and that example, has steadily fallen in Jakarta, 15. Dubai, Dubai C ourts 2008. requires a training framework which from 72 months in 2004 to 13 months in T omasic 2013. 16. HRR 17. C 2014. enables judges to receive comprehen - 2012, where it has remained ever since C 18. ox, Duituturaga and Sholikin 2012. sive and continuous training. (figure 6.6). Furthermore, although the 19. o these tasks, the Judicial Training In addition t number of incoming reorganization cases Center is responsible for administrative and management training within the judiciary. Economies worldwide have adopted in Jakarta more than doubled—from 66 20. eme Court 2012. Indonesia, Supr effective training frameworks for applications in 2012 to 146 in 2016—the on and Hearn 2016. Men Y 21. judges. The United Arab Emirates has Commercial Court of Central Jakarta T 22. hese data are from the Doing Business database. For more information see http:// been particularly active in promoting continued to consider them at the same www.doingbusiness.org/Reforms/Overview a coherent system for judicial training pace: 55 closed cases in 2012 compared /Economy/indonesia. 28 with impressive results in court to 118 in 2016. T 23. he clearance rate is the number of decided cases as a share of incoming cases. The efficiency and quality of decisions. calculations are based on the data provided by Indonesia’s efforts to train judges Although Indonesia has established an the Commercial Court of Central Jakarta. For following judicial reform bore positive impressive judicial training program, more information see http://pn-jakartapusat .go.id/. results through a substantial decrease there is room for improvement in terms 24. Indonesia’ s insolvency law is Law No. 37 in court backlogs and insolvency case of the quality of its judicial services. of 2004 on Bankruptcy and Suspension of resolution times. Given the high rotation rate in the judi- Obligation for Payment of Debts. 25. T he training provision for judges can be found ciary, training programs may require in Article 302 of Law No. 37 of 2004 on Continuous and comprehensive judi - further development. Nonetheless, the Bankruptcy and Suspension of Obligation for cial and court staff training is not, focus of the Indonesian government Payment of Debts. Indonesia, Supr eme Court 2008; Indonesia, 26. however, the norm in many econo- on judicial training is visible, as is the Supreme Court 2011. mies. As evidenced by Doing Business economy’s improvements across the Bedner 2008. 27. data, the education and skills of court metrics. Doing Business T hese data are from the Commercial Court 28. of Central Jakarta database. For more staff—including clerks, registrars and information see http://pn-jakartapusat.go.id/. bailiffs—are often disregarded in national training programs in the justice CONCLUSION sector, but they are no less impor - tant to ensure efficiency and quality Businesses must be able to operate in the courts. knowing that, if a problem arises, they

68 DOING BUSINESS 2019 Annex: Labor Market Regulation Trends from data Doing Business ƒ Given the changing dynamics of work, assessing the right level of regulatory Every economy in the world has a system of laws and regulations intervention in the labor market is that mediates the relationship between employees, employers, trade measures some critical. Doing Business unions and the government. On the one hand, labor market regulation key aspects of labor market laws and regulations. protects workers from unfair treatment and brings a degree of predictability to contracting; on the other, labor markets may not ƒ data show that flexible Doing Business operate efficiently if overregulated, resulting in productivity and labor regulation is associated with a 1 employment losses. higher number of newly registered companies. For employees, such protection is not The question of how economies can In economies with a cumbersome labor ƒ always reliable and, furthermore, it only design efficient labor policies—that regulatory framework, a larger share of covers those in formal employment— increase employment and productiv - firms rely on temporary workers as a everyone else is left unprotected. To ity without compromising employment share of total workers. extend protection to all, while easing the protection—has been the subject of 2 Low-income economies are among ƒ burden on firms, policy makers should intense debate. The challenge for those with the highest severance pay consider enacting national labor policies governments is to set labor policies on upon dismissal. These economies that provide universal protection, instead an efficiency range, or “plateau,” while also have the lowest incidence of 5 of firm-based arrangements. avoiding distortionary interventions, unemployment protection schemes. or “cliffs,” which could undermine job creation through rigid policies or leave By measuring elements of labor market National training funds are available ƒ workers wholly unprotected as a result regulation—hiring, working hours, in two-thirds of economies globally, 3 of excessively flexible ones. redundancy rules and cost—as well as Denmark’s the majority of which are in the OECD aspects of job quality (the availability - “flexicurity” model has been widely stud high-income group. of unemployment protection and sick ied because it provides employee pro - leave, for example), Doing Business tections while maintaining labor market 4 offers a rich dataset of 43 indicators for flexibility. Many economies that enact policy makers to learn from the labor more flexible regulation, however, fail to market regulatory experience of 190 make adequate investments to get the economies worldwide. The dataset can unemployed back into work. be used by governments, employers and researchers to measure excessive Without adequate social protection and or insufficient labor market intervention - active labor market policies—job assis and investigate the state of social pro - tance programs provided by the state, for tection in their economies. A researcher example—workers are at the mercy of the could use Doing Business data, for employment contract. For firms, this can example, to determine whether there is - be equally challenging: instead of focus a relationship between the flexibility of ing on their business, they are faced with an economy’s employment regulations the burden of protecting their employees.

69 DOING BUSINESS 2019 62 and the number of newly registered companies (figure 7.1). Such findings Sub-Saharan Africa is the region with the highest proportion are in line with earlier research showing of firms that rely on temporary workers as a share of total that stringent labor market regulation workers, followed by South Asia and East Asia and the Pacific. coupled with burdensome regulations - on entrepreneurial activity is nega more firms rely on temporary workers tively correlated with the entry of new economies with lower levels of informal- 6 as a share of total workers. Conversely, small firms. ity. Nonetheless, research shows that lower labor costs could give more hiring informality is more prevalent in econo - space to start-ups, particularly in times - mies with more cumbersome entry regu Faced with cumbersome labor laws 11 of economic downturn or production lations and rigid labor laws. that result in complex hiring proce- Therefore, 12 shifts. dures, stringent working hours or high care should be exercised when designing These findings suggest that redundancy costs, new businesses may labor market policies to avoid a further stringent labor regulation is related to choose to employ workers informally, increase in the level of informality as a an increase in temporary employment 7 effectively joining the informal economy. result of rigid labor laws that constrain relative to permanent employment. firm growth. Doing Business data show Sub-Saharan Africa is the region with The existence of a large informal sector that there is an association between the highest proportion of firms that in developing economies is one of the economies with more flexible labor rely on temporary workers as a share central factors undermining productiv - 8 regulation and a higher number of newly of total workers, followed by South ity and economic development. In Sub- 13 registered businesses. Even formally- Asia and East Asia and the Pacific. Saharan Africa, informality remained at established companies may choose to an average of 75% of total employment Understanding these linkages and their 9 under-hire permanent employees or from 2000 to 2016. consequences is important, given that In Nepal, 98% of 10 increase temporary workers when faced entrepreneurial activity and job creation employment is informal. with strict regulation governing hiring play a crucial role in poverty reduction 14 and redundancy. and sustainable development. Unequivocally, the reach and impact of improvements in labor market regula - Firm-level data also show that where tion in economies with higher levels of Stringent employment protection can labor market regulation is less flexible, informality will not be the same as in also cause employers to create fewer FIGURE 7.1 Stringent labor regulation is associated with fewer newly registered companies and a greater number of firms relying on temporary workers Firms relying on temporary workers (%) Business entry density rate 14 18 16 12 14 10 12 8 10 8 6 6 4 4 2 2 0 0 0 20 40 60 80 0 20 40 60 80 Rigidity of employment regulation index (0–100) Rigidity of employment regulation index (0–100) database; Entrepreneurship database (http://www.doingbusiness.org/data/exploretopics/entrepreneurship), World Bank; Enterprise Surveys database Sources: Doing Business (http://www.enterprisesurveys.org), World Bank. The rigidity of employment regulation index is the average of four other indices—hiring, working hours, redundancy rules and cost. For an explanation on how these Note: indexes are computed, see the data notes in Doing Business 2013 . The business entry density rate is the number of newly registered firms with limited liability per 1,000 working- age people (age 15–64) per calendar year. The relationships are significant at the 5% level after controlling for income per capita and are robust to the removal of the outliers.

70 63 ANNEX: LABOR MARKET REGULATION the area of working hours in 2017/18. of work. As a result, economies may permanent jobs as they attempt to In India (Mumbai) the Maharashtra circumvent the cost of providing consider revisiting legal restrictions on Shops and Establishment Act, 2017, employment protection to permanent non-standard working hours such as 15 increased overtime hours and eliminat - night work, weekly holiday or overtime employees. While doing so may be ed work restrictions on the weekly rest work. Understanding the impacts of a short-term solution for employers, day, while introducing a compensatory regulatory restrictions, including those - this labor market duality presents sig day off and a 100% wage premium for - on working hours, is important for pro nificant risks to the economy. These 19 work on that day. Norway also eased moting entrepreneurship. risks—including no overall increase in According 16 restrictions on night work by allowing employment, Doing Business data, 40% of econo to - negative implications for employees to work past 9:00 p.m. and mies have legal restrictions on night employees’ professional development, the 17 until 11:00 p.m. Non-standard work work, weekly holiday work or overtime costs associated with unfair dismissal schedules allow businesses to adjust work in the food retail industry. Of - and weak productivity growth—are dis 18 their workforce as they evolve and face these three areas, weekly holiday work cussed extensively in the literature. new global dynamics. Weekly holiday is the most restricted. The largest or night work prohibitions constrain share of high-income economies have It is a challenge for any economy to firms and give them less flexibility to restrictions on work performed on a develop labor policies that avoid labor meet their employment needs. weekly rest day, followed by lower- - market segmentation and provide a bal middle-income economies (figure 7.2). - ance between worker protection and flex - In Belgium, for example, there is a gen ibility. Measuring labor market regulation Severance payment and length eral prohibition on employing personnel assists policy makers in making informed of employment on Sunday; to operate on Sunday, busi- policy decisions. The differences in New data show that low- and lower- nesses must obtain authorization from selected labor market regulation—such middle-income economies, which 20 the Mayor and Aldermen. as that governing working hours, sever - maintain the highest average severance 21 ance payment, unemployment protection pay as measured by Doing Business, and the availability of national training tend to mandate longer minimum Night work is the second most restrict - funds—is discussed below. lengths of employment before a worker ed area according to Doing Business is entitled to severance pay (figure 7.3). data. Upper-middle-income economies Facing higher dismissal costs, employ - have the most limits on night work, Working hours ers may be induced to choose to keep followed by the lower-middle-income Technological advancements and mar - 22 senior workers over junior ones. group. Nine economies reformed in ket dynamics are changing the nature If only FIGURE 7.2 Lower-middle-income economies have the most restrictions on night, weekly holiday and overtime work Share of economies where work restriction is in place (%) 45 40 35 30 25 20 15 10 5 0 Lower middle income High income Upper middle income Low income Night work Weekly holiday work Overtime work Source: Doing Business database .

71 DOING BUSINESS 2019 64 Workers in low-income economies must be employed the longest to obtain severance pay FIGURE 7.3 Weeks 50 40 30 20 10 0 Upper middle income Lower middle income High income Low income Length of employment to obtain severance pay Average severance pay . Source: Doing Business database Note: The sample size includes 177 economies for which data on the minimum length of employment are collected in . Doing Business 2019 to provide training for their employees, employee becomes eligible. However, available to experienced employees and professional development as a national only 5% of low- and lower-middle- in economies without unemployment policy generates more opportunities for - income economies require unemploy insurance, more vulnerable employ - the wider population. India, for example, ment protection by law. A lack of ees—such as youth, for example—may has set a target of training 500 million protection and benefits leaves people be left without any income protection. people by 2022 to spur employment vulnerable to poverty, particularly during - Research shows that youth employ 27 and national development. life events such as poor health or old ment can decrease by roughly 1.5 25 age. percentage points when severance pay Unemployment protection policies 23 is increased by 100%. are critical in promoting inclusive labor The labor mar - National training funds are one of the markets, human capital development, ket can become segregated between main financing vehicles for putting 26 productivity and economic growth. highly protected older workers with national skills development policies The into practice. Such funds, dedicated - job stability, and younger, less experi need is particularly high in developing enced workers who are unable to ben to improving the skills of citizens, - - economies where informality is predomi efit from labor protection mechanisms. typically come from a stock or flow of nant. In 2017/18, Malaysia and Nepal financing outside normal government Therefore, more flexible regulation introduced unemployment protection 28 should be enacted only once enhanced budget channels. schemes, while Bulgaria increased the data Doing Business social assistance and insurance are in minimum contribution period for unem- indicate that national training funds 24 place. ployment protection from nine to 10 exist in 60% of economies worldwide Within the past year, South months. To ensure basic protections for at varying levels of development and Sudan adopted legislation introducing all citizens, effective national level poli - geography. The OECD high-income severance payments for redundancy cies should be designed in collaboration - group has the largest share of econo termination; France increased severance with social partners. mies with national training funds, fol- payments, while Azerbaijan and Lithuania lowed by Sub-Saharan Africa and Latin decreased these amounts. Similarly, a lack of training can leave America and the Caribbean (figure 7.4). people, especially youth, unprepared - Training funds in high-income econo Unemployment protection and for the job market. Economies should mies are most commonly financed by skills development continuously improve the skills of the levies (taxes) on enterprises, while in Globally, 40% of economies measured - labor force to adapt to rapidly chang low-income and lower-middle-income Doing Business by provide unemployment ing business and social environments. economies the funds primarily come protection, with an 8-month average 29 Although firms are generally expected from international donors. minimum contribution period before an

72 65 ANNEX: LABOR MARKET REGULATION South Asia has the lowest share of economies with national training funds FIGURE 7.4 Share of economies with national training funds (%) 30 25 20 15 10 5 0 Sub-Saharan OECD Latin America East Asia Europe & Middle East & South Asia & Pacific high income Africa & Caribbean Central Asia North Africa . Source: Doing Business database 31 are available. Since its creation in 2017 and its associated institutions, The benefits of national training programs which Bolivia’s National Employment Plan has operate under the umbrella of the are yet to be fully evaluated. However, helped generate about 58,000 jobs for data show a negative and National Confederation of Industry, have Doing Business young people by providing incentives to graduated 55 million professionals since significant association between the avail - companies including co-financing their 1942. The SENAI offers approximately ability of national training funds and youth 30 training. unemployment (figure 7.5), suggesting 3,000 courses that train workers in 28 In Brazil the Serviço Nacional industrial areas. Courses range from the youth unemployment rate is lower in de Aprendizagem Industrial (SENAI, the economies where national training funds professional learning to college and National Service for Industrial Training) graduate degrees. In Sub-Saharan Africa, Côte d’Ivoire’s Professional Training and FIGURE 7.5 Availability of national training funds is associated with lower levels of Development Fund was created with youth unemployment the core mission of financing employee - training initiatives to address the chal Total youth unemployment (% of labor force) lenge of low education and skills among 32 25 workers. In East Asia and the Pacific, the Lao People’s Democratic Republic established a national training fund in 20 33 2010. The main role of the fund, which is financed through 1% mandatory 15 employee salary contributions, is to fos- ter the development of relevant job skills 10 in the country’s workforce. 5 CONCLUSION 0 No national training funds available National training funds available The Doing Business labor market regulation dataset serves as a tool database Source: Doing Business . for policy makers to identify areas for Note: The relationship is significant at the 5% level after controlling for income per capita. The sample includes regulatory reform and for researchers to 116 economies.

73 DOING BUSINESS 2019 66 measures severance pay for Doing Business 21. investigate the links between changes workers with 1, 5 and 10 years of tenure. to labor regulation and economic out - Mont 22. enegro and Pagés 2007; Heckman and Pagés 2003; Montenegro and Pagés 2003. comes. Given the changing dynamics Mont 23. enegro and Pagés 2007. of work, determining the right level W orld Bank 2018. 24 . of regulatory intervention in the labor 25. emtsov 2013. Alderman and Y 26 A cemoglu and Shimer 2000; Di Maggio and market is critical. It is important on the Kermani 2016; Kuddo, Robalino and Weber one hand to provide businesses with the 2015. flexibility to meet their permanent and or more information on India’s national F 27. training policy, see the UNESCO Institute for temporary staffing needs while, on the Lifelong Learning brief on India at http://uil other, ensuring worker protections and .unesco.org/fileadmin/keydocuments the revision of rigid labor legislation, /LifelongLearning/en/UIL_Global_Inventory particularly in developing economies _of_NQFs_India.pdf. 28. . Johanson 2009 where vulnerable groups may be left . Johanson 2009 29. behind. Shifts in labor market demand 30. F or more information, see the website of Plan also call for new ways of thinking Generación de Empleo at http://www .plandeempleo.bo/. about skills development and training, he SENAI was followed by four other sector- 31. T including national policies and funding specific training institutions for commerce strategies that economies can utilize to (Serviço Nacional de Aprendizagem Comercial, SENAC), rural areas (Serviço prepare their citizens for the future. Nacional de Aprendizagem Rural, SENAR), small enterprises (Serviço Brasileiro de Apoio às Micro e Pequenas Empresas, SEBRAE) and transport (Serviço Nacional de Aprendizagem NOTES do Transporte, SENAT). All of these institutions operate under the same basic This case study was written by Lucia Arnal structure and legal framework. Rodriguez, Liliya F. Bulgakova and Dorina P. or more information on the Fonds 32. F Georgieva. de Développement de la Formation Professionnelle, see the website at http:// 1. Bot ero and others 2004; Besley and Burgess www.fdfp.ci/faq. 2004; Amin 2007. Lao PDR’ 33. s national training fund was 2. orld Bank 2012. W established by Decree No. 036/PM of the he World Bank’s 3. T World Development Report Ministry of Labour and Social Welfare dated uses the term “plateau” to describe the 2013 January 22, 2010. The fund is meant to build balance between unemployment protection and develop labor skills at the national and and labor market flexibility. provincial levels by creating opportunities 4. Ulk u and Muzi 2015. for citizens to receive training and skills orld Bank 2018. 5. W development at training centers, schools and s 2002; Klapper, Laeven Scarpetta and other 6. colleges. The fund also facilitates academic and Rajan 2006. scholarships, grants and short-term loans. 7. oayza, Oviedo and Servén 2005. L orta and Shleifer 2014. 8. La P W orld Bank 2018. 9. Int 10. ernational Labor Organization data (http:// www.ilo.org/ilostat); employment in the informal economy as a percentage of total non-agricultural employment. ov and Ramalho 2009. 11. Djank W orld Bank 2018. 12. 13. erprise Surveys database (http://www Ent .enterprisesurveys.org/), World Bank. The share of firms relying on temporary workers by region is as follows: Sub-Saharan Africa 7.2%, South Asia 6.2%, East Asia and the Pacific 5.1%, the Middle East and North Africa 4.3%, Europe and Central Asia 3.9%, and Latin America and the Caribbean 3.9%. 14. ov, Georgieva and Ramalho 2018. Djank 15. Cahuc, C harlot and Malherbet 2016. CD 2013. OE 16. Ulk u and Muzi 2015. 17. CD 2014. 18. OE 19. W orld Bank 2012. 20. As stipulat ed by Belgium’s Labour Act of March 16, 1971, and sectoral regulations (JIC 119).

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80 DOING BUSINESS 2019 Data Notes Doing Business The indicators presented and analyzed in measure business regulation, the quality and strength of legal frameworks, the protection of property rights—and their effect on businesses, especially small and medium-size domestic firms. First, the indicators document the complexity of regulation, such as the number of procedures to start a business or to register a transfer of commercial property. Second, they gauge the time and cost to achieve a regulatory goal or comply with regulation, such as the time and cost to enforce a contract, go through bankruptcy or trade across borders. Third, they measure the extent of legal protections of property, for example, the protections of minority investors against looting by company directors or the range of assets that can be used as collateral according to secured transactions laws. Fourth, a set of indicators documents the tax burden on businesses. Finally, a set of data covers different aspects of employment regulation. The 11 sets were added over time, and the of indicators measured in Doing Business sample of economies and cities expanded (table 8.1). (table 8.2). These experts have several METHODOLOGY Doing rounds of interaction with the team, involving conference Business Doing Business data are collected in The calls, written correspondence and visits a standardized way. To start, the Doing by the team. For Doing Business 2019 Business team, together with expert team members visited 28 economies to advisers, designs a questionnaire. The verify data and recruit respondents. The questionnaire uses a simple business case data from questionnaires are subjected - to ensure comparability across econo to numerous rounds of verification, mies and over time—with assumptions leading to revisions or expansions of the about the legal form of the business, information collected. its size, its location and the nature of its operations. The methodology offers Doing Business several advantages. It is transparent, Questionnaires are administered to using factual information about what laws more than 13,800 local experts, and regulations say and allowing multiple including lawyers, business consultants, interactions with local respondents - accountants, freight forwarders, govern to clarify potential misinterpretations ment officials and other professionals of questions. Having representative routinely administering or advising samples of respondents is not an issue; on legal and regulatory requirements

81 DOING BUSINESS 2019 74 T TABLE 8.1 opics and economies covered by each Doing Business report DB DB DB DB DB DB DB DB DB DB DB DB DB DB DB DB Topic 2014 2018 2009 2013 2005 2008 2017 2012 2007 2004 2016 2019 2015 2006 2010 2011 Getting electricity Dealing with construction permits Trading across borders Paying taxes Protecting minority investors Registering property Getting credit Resolving insolvency Enforcing contracts Labor market regulation Starting a business Number of 185 183 183 183 181 178 175 155 145 133 190 190 190 189 189 189 economies Note: Data for the economies added to the sample each year are back-calculated to the previous year. The exceptions are Kosovo and Montenegro, which were added to the sample after they became members of the World Bank Group. Eleven cities (though no additional economies) were added to the sample starting in Doing Business 2015 . The data for paying taxes in Doing Business 2019 refer to January-December 2017. The data for all other sets of indicators are for May 2018. collected in a large sample of economies. extent of specific regulatory obstacles is not a statistical survey, Doing Business Because standard assumptions are used to business but also identify their source and the texts of the relevant laws and in the data collection, comparisons and regulations are collected and answers and point to what might be reformed. benchmarks are valid across economies. Doing Business 2019 - - has no major meth checked for accuracy. The method Finally, the data not only highlight the ology is easily replicable, so data can be odological change at the indicators level. Doing Business consult? How many experts does TABLE 8.2 LIMITS TO WHAT IS Economies with given number MEASURED of respondents (%) Indicator set Respondents 5+ 3–5 1–2 methodology has five Doing Business The 67 23 10 2,364 Starting a business limitations that should be considered Dealing with construction permits 45 37 18 1,320 when interpreting the data. First, for most 38 1,283 23 39 Getting electricity economies the collected data refer to 15 48 37 1,484 Registering property businesses in the largest business city 27 65 8 1,817 Getting credit (which in some economies differs from - the capital) and may not be representa Protecting minority investors 1,428 24 44 32 tive of regulation in other parts of the 68 Paying taxes 1,754 9 23 economy. (The exceptions are 11 econo - 51 36 13 1,616 Trading across borders mies which had a population of more 36 1,624 Enforcing contracts 14 50 Doing than 100 million in 2013, where 21 47 32 Resolving insolvency 1,364 Business now also collects data for the 1 Labor market regulation 1,205 17 41 42 second largest business city.) To address 51 16 33 Total 17,259 Doing Business this limitation, subnational indicators were created (box 8.1). Note: The total number of respondents includes experts contributing to multiple indicator sets.

82 75 DATA NOTES Comparing business regulation and learning from good practices at the local level: BOX 8.1 studies subnational Doing Business Improving the business regulatory environment by learning from international good practices can propel economies to improve. How - - ever, learning from good practices across different locations within the same economy can be an even more powerful motivator. Sub Doing Business indicators beyond an economy’s largest business city as measured by the annual Doing Business national studies expand report. These studies, which are demand driven and conducted at the request of governments, capture differences in regulations or enforcement at the local level, allowing policy makers to effectively target bottlenecks and improve the business environment across their economy. Data produced by subnational Doing Business studies are comparable across locations within an economy and internationally. Policy makers can benchmark their results both locally and globally and see how their overall performance in Doing Business would improve if the largest business city were to adopt all the good practices documented within their borders. Subnational studies can prompt discus- sions of regulatory reform across different levels of government, providing opportunities for local governments and agencies to learn from one another, resulting in local ownership and capacity building. - There can be substantial variations in regulation or in the implementation of national laws across locations within an economy. A sub Doing Business study completed in 2017 benchmarking Colombia’s 32 departments showed that entrepreneurs face different national realities depending on their geographic location. For starting a business, for example, one-third of Colombia’s cities performed similarly to Austria, Germany and Poland—all OECD high-income economies. However, the number of procedures required in the city of Inírida (16) is exceeded by only two of the 10 worst-ranked economies globally (namely República Bolivariana de Venezuela and Equatorial Guinea, with 20 and 16 procedures, respectively). What is the main lesson? Cooperation between entities facilitates reform. In Colombia, this collaboration took the form of agreements between departmental and municipal governments and Chambers of Commerce to facilitate payment of registration fees and coordi - nate inspections—and between municipal governments and Curadores Urbanos (private professionals responsible for the administration of building permits) to accelerate the approval of construction permits. Studying good practices in other locations within Colombia (in this case, Manizales) can assist policy makers in replicating them locally. Since 2005 subnational Doing Business studies have covered 510 locations in 75 economies. These locations represent all regions of the world and economies of varying income levels, including fragile and conflict-affected states such as Afghanistan, which completed Doing Business a subnational study in 2017 (see map). Eighteen economies—including the Arab Republic of Egypt, Colombia, Mexico, Nigeria, the Philippines, the Russian Federation and South Africa—have undertaken two or more rounds of subnational data collection to measure progress over time. This year subnational studies were completed in four EU member states (25 cities in Croatia, the Czech Republic, Portugal and the Slovak Republic), Nigeria (36 states and the Federal Capital Territory of Abuja) and South Africa (13 loca - tions). Ongoing studies include those in an additional three EU member states (24 cities in Greece, Ireland and Italy), Kazakhstan (16 cities), Mozambique (10 cities) and the United Arab Emirates. Subnational studies cover a large number of cities across all regions of the world 84 cities 84 cities in Europe and Central Asia in Europe and Central Asia 83 cities in OECD 83 cities in OECD high-income economies high-income economies 30 cities 30 cities 76 cities 76 cities in the Middle East in the Middle East in East Asia in East Asia and North Africa and North Africa 46 cities 46 cities and the Pacific and the Pacific in South Asia in South Asia 109 cities 109 cities 82 cities 82 cities in Latin America in Latin America in Sub-Saharan Africa in Sub-Saharan Africa and the Caribbean and the Caribbean | IBRD 43044 AUGUST 2018 ed by t This map was produc he hy Uni Cartograp t o f t he World Bank aries, colors, Group. The bound denomination s and any other ECONOMIES WITH ONE SUBNATIONAL OR REGIONAL STUDY information shown on this map do no t ECONOMIES WITH MORE THAN ONE SUBNATIONAL OR REGIONAL STUDY imply, on the par t o f t he World Bank Group, any judgment on t he l s egal statu itory, or any endorsement or of any t err t an ce o f such bound aries. accep Source: Subnational Doing Business database. Note: Subnational reports are available on the Doing Business website at http://www.doingbusiness.org/en/reports/subnational-reports. For any additional information, please contact the Subnational Doing Business Team at [email protected]

83 DOING BUSINESS 2019 76 Economy characteristics Gross national income per capita World Development Indicators 2018 Doing Business 2019 reports 2017 income per capita as published in the World Bank’s . Income is calculated using the Atlas method (in current U.S. dollars). For cost indicators expressed as a percentage of income per capita, 2017 gross national income (GNI) per capita in current U.S. dollars is used as the denominator. GNI data based on the Atlas method were not available for Eritrea; Puerto Rico (territory of the United States); San Marino; Somalia; South Sudan; the Syrian Arab Republic; Taiwan, China; República Bolivariana de Venezuela; and the Republic of Yemen. In these cases, GDP or GNP per capita data and growth rates from other sources, such as the International Monetary Fund’s World Economic Outlook database and the Economist Intelligence Unit, were used. Region and income group Doing Business uses the World Bank regional and income group classifications, available at https://datahelpdesk.worldbank.org /knowledgebase/articles/906519. Regional averages presented in figures and tables in the Doing Business report include econo- mies from all income groups (low, lower middle, upper middle and high income), though high-income OECD economies are as - signed the “regional” classification OECD high income. Population . World Development Indicators 2018 reports midyear 2017 population statistics as published in Doing Business 2019 data sets used for background papers. Second, the data often focus on a in the World Bank Enterprise Surveys or Doing other firm-level surveys. The correction rate between specific business form—generally a Business 2018 limited liability company (or its legal and Doing Business 2019 2 is 5.6%. equivalent) of a specified size—and may not be representative of the DATA CHALLENGES AND regulation on other businesses (for REVISIONS Governments submit queries on the example, sole proprietorships). Third, data and provide new information to - transactions described in a standard . During the Doing Business Doing Business Most laws and regulations underlying ized case scenario refer to a specific 2019 production cycle the team received the Doing Business data are available set of issues and may not represent 151 such queries from governments. In website at http:// Doing Business on the the full set of issues that a business addition, the team held multiple video www.doingbusiness.org. All the sample encounters. Fourth, the measures of - conferences with government represen questionnaires and the details underlying time involve an element of judgment by tatives in 72 economies and in-person the indicators are also published on the the expert respondents. When sources - meetings with government representa website. Questions on the methodology indicate different estimates, the time tives from 46 economies. and challenges to data can be submitted Doing Business indicators reported in through email at [email protected] represent the median values of several responses given under the assumptions Doing Business publishes 24,120 indica - STARTING A BUSINESS of the standardized case. tors (120 indicators per economy) each year. To create these indicators, the records all procedures Doing Business Finally, the methodology assumes that team measures more than 117,000 data officially required, or commonly done a business has full information on what points, each of which is made available in practice, for an entrepreneur to start is required and does not waste time on the Doing Business website. Historical up and formally operate an industrial or when completing procedures. In prac- data for each indicator and economy are commercial business, as well as the time tice, completing a procedure may take available on the website, beginning with and cost to complete these procedures longer if the business lacks informa - the first year the indicator or economy and the paid-in minimum capital require - tion or is unable to follow up promptly. was included in the report. To provide a ment (figure 8.1). These procedures Alternatively, the business may choose to comparable time series for research, the include the processes entrepreneurs disregard some burdensome procedures. data set is back-calculated to adjust for undergo when obtaining all neces - For both reasons the time delays reported changes in methodology and any revi - sary approvals, licenses, permits and would differ from Doing Business 2019 in sions in data due to corrections. The completing any required notifications, the recollection of entrepreneurs reported website also makes available all original verifications or inscriptions for the

84 77 DATA NOTES to a special tax regime, for example, FIGURE 8.1 What are the time, cost, paid-in minimum capital and number of liquor or tobacco. It is not using heavily procedures to get a local limited liability company up and running? polluting production processes. ƒ Leases the commercial plant or offices Cost (% of income per capita) and is not a proprietor of real estate. ƒ The amount of the annual lease for Formal operation the office space is equivalent to one income per capita. Paid-in $ Number of minimum ƒ The size of the entire office space is procedures capital approximately 929 square meters (10,000 square feet). ƒ - Does not qualify for investment incen tives or any special benefits. Entrepreneur Time ƒ Has at least 10 and up to 50 (days) Preregistration Postregistration Registration employees one month after the commencement of operations, all of them domestic nationals. ƒ Has a turnover of at least 100 times is readily available and that the entre- income per capita. company and employees with relevant ƒ preneur will pay no bribes. If answers authorities. The ranking of economies on Has a company deed that is 10 by local experts differ, inquiries continue the ease of starting a business is deter - pages long. until the data are reconciled. mined by sorting their scores for starting a business. These scores are the simple The owners: ƒ To make the data comparable across average of the scores for each of the Have reached the legal age of majority economies, several assumptions about the component indicators (figure 8.2). and are capable of making decisions businesses and the procedures are used. as an adult. If there is no legal age Two types of local limited liability of majority, they are assumed to be companies are considered under the 30 years old. Assumptions about the business ƒ starting a business methodology. They The business: Are sane, competent, in good health ƒ are identical in all aspects, except that and have no criminal record. Is a limited liability company (or its one company is owned by five married legal equivalent). If there is more than women and the other by five married one type of limited liability company in Starting a business: FIGURE 8.2 getting a local limited liability company men. The score for each indicator is the the economy, the limited liability form up and running average of the scores obtained for each most common among domestic fi rms of the component indicators for both of is chosen. Information on the most Rankings are based on scores for four indicators these standardized companies. common form is obtained from incor - 25% Cost 25% Time poration lawyers or the statistical office. As % of income Preregistration, ƒ After a study of laws, regulations and Operates in the economy’s largest registration and per capita, no - publicly available information on busi business city. For 11 economies the bribes included postregistration (in calendar days) ness entry, a detailed list of procedures data are also collected for the second is developed, along with the time and largest business city (table 8A.1 at the 12.5% 12.5% women men cost to comply with each procedure end of the data notes). 12.5% 12.5% ƒ under normal circumstances and the Is 100% domestically owned and women men paid-in minimum capital requirement. has five owners, none of whom is 25% 12.5% women Paid-in Subsequently, local incorporation law- a legal entity. minimum 12.5% capital ƒ yers, notaries and government officials Has start-up capital of 10 times men review and verify the data. income per capita. 25% Paid-in ƒ Performs general industrial or minimum capital 25% Procedures Funds deposited in a Procedures are Information is also collected on the commercial activities, such as the bank or with a notary completed when sequence in which procedures are to production or sale to the public of before registration (or final document up to three months after is received be completed and whether procedures goods or services. The business does incorporation), as % may be carried out simultaneously. It is not perform foreign trade activities of income per capita assumed that any required information and does not handle products subject

85 DOING BUSINESS 2019 78 ƒ that are officially required or commonly Are married, the marriage is TABLE 8.3 What do the starting done in practice for an entrepreneur to monogamous and registered with a business indicators measure? formally operate a business are recorded the authorities. Procedures to legally start and formally ƒ (table 8.3). Where the answer differs according operate a company (number) to the legal system applicable to the Preregistration (for example, name verification or reservation, notarization) Procedures required for official corre - woman or man in question (as may a spondence or transactions with public be the case in economies where there Registration in the economy’s largest business city agencies are also included. For example, is legal plurality), the answer used will Postregistration (for example, social security registration, company seal) if a company seal or stamp is required on be the one that applies to the majority - official documents, such as tax declara of the population. Obtaining approval from spouse to start a business or to leave the home to register the tions, obtaining the seal or stamp is company counted. Similarly, if a company must Procedures Obtaining any gender specific document for open a bank account in order to complete A procedure is defined as any interaction company registration and operation or national identification card any subsequent procedure—such as of the company founders with external registering for value added tax or showing - parties (for example, government agen Time required to complete each procedure (calendar days) proof of minimum capital deposit—this cies, lawyers, auditors or notaries) or Does not include time spent gathering transaction is included as a procedure. spouses (if legally required). Interactions information Shortcuts are counted only if they fulfill between company founders or company Each procedure starts on a separate day four criteria: they are legal, they are officers and employees are not counted (two procedures cannot start on the same day)— available to the general public, they are as procedures. Procedures that must be though procedures that can be fully completed online are an exception to this rule used by the majority of companies, and completed in the same building but in Registration process considered completed once avoiding them causes delays. different offices or at different counters final incorporation document is received or are counted as separate procedures. If company can officially start operating - Only procedures required for all busi founders have to visit the same office No prior contact with officials takes place nesses are included. Industry-specific several times for different sequential Cost required to complete each procedure procedures are excluded. For example, procedures, each is counted separately. (% of income per capita) procedures to comply with environ- The founders are assumed to complete Official costs only, no bribes mental regulations are included only all procedures themselves, without No professional fees unless services required by when they apply to all businesses middlemen, facilitators, accountants or law or commonly used in practice conducting general commercial or lawyers, unless the use of such a third Paid-in minimum capital (% of income per capita) industrial activities. Procedures that the party is mandated by law or solicited company undergoes to connect to elec - by the majority of entrepreneurs. If the Funds deposited in a bank or with a third party (for example a notary) before registration or up tricity, water, gas and waste disposal services of professionals are required, to three months after incorporation services are not included in the starting procedures conducted by such profes- a. or 11 economies the data are also collected for F a business indicators. sionals on behalf of the company are the second largest business city. counted as separate procedures. Each electronic procedure is counted as a Time separate procedure. Approvals from process is considered completed Time is recorded in calendar days. The spouses to own a business or leave once the company has received the - measure captures the median dura the home are considered procedures if final incorporation document or can tion that incorporation lawyers or required by law or if by failing to obtain - officially commence business opera notaries indicate is necessary in practice such approval the spouse will suffer tions. If a procedure can be accelerated to complete a procedure with minimum consequences under the law, such as the legally for an additional cost, the fastest follow-up with government agencies and loss of right to financial maintenance. procedure is chosen if that option is no unofficial payments. It is assumed Obtaining permissions only required by more beneficial to the economy’s score. that the minimum time required for each one gender for company registration and When obtaining a spouse’s approval, it procedure is one day, except for proce - - operation, or getting additional docu is assumed that permission is granted dures that can be fully completed online, ments only required by one gender for at no additional cost unless the permis - for which the minimum time required a national identification card are consid- sion needs to be notarized. It is assumed is recorded as half a day. Although ered additional procedures. In that case, that the entrepreneur does not waste procedures may take place simultane- only procedures required for one spouse time and commits to completing each ously, they cannot start on the same day but not the other are counted. Both remaining procedure without delay. The (that is, simultaneous procedures start pre- and postincorporation procedures time that the entrepreneur spends on on consecutive days). A registration

86 79 DATA NOTES only a part of it before registration, gathering information is not measured. DEALING WITH with the rest to be paid after the first It is assumed that the entrepreneur is CONSTRUCTION PERMITS year of operation. In El Salvador in May aware of all entry requirements and 2018, for example, the minimum capital their sequence from the beginning but requirement was $2,000, of which 5% has had no prior contact with any of Doing Business records all procedures needed to be paid before registration. the officials involved. required for a business in the construc - Therefore, the paid-in minimum capital tion industry to build a warehouse, along recorded for El Salvador is $100, or 2.7% with the time and cost to complete each Cost of income per capita. Doing Business procedure. In addition, Cost is recorded as a percentage of the measures the building quality control economy’s income per capita. It includes index, evaluating the quality of building all official fees and fees for legal or REFORMS regulations, the strength of quality professional services if such services are The starting a business indicator set control and safety mechanisms, liability required by law or commonly used in tracks changes related to the ease of and insurance regimes, and professional practice. Fees for purchasing and legal - incorporating and operating a limited certification requirements. Information izing company books are included if liability company every year. Depending is collected through a questionnaire these transactions are required by law. on the impact on the data, certain administered to experts in construction Although value added tax registration changes are classified as reforms and - licensing, including architects, civil engi can be counted as a separate procedure, Doing Business listed in the summaries of neers, construction lawyers, construction value added tax is not part of the incor - reforms in 2017/18 section of the report firms, utility service providers, and public poration cost. The company law, the - in order to acknowledge the implementa - officials who deal with building regula commercial code and specific regulations tion of significant changes. Reforms are tions, including approvals, permit issuance and fee schedules are used as sources for divided into two types: those that make it and inspections. calculating costs. In the absence of fee easier to do business and those changes - schedules, a government officer’s esti that make it more difficult to do business. The ranking of economies on the ease mate is taken as an official source. In the The starting a business indicator set uses of dealing with construction permits is absence of a government officer’s esti- one criterion to recognize a reform. determined by sorting their scores for mate, estimates by incorporation experts dealing with construction permits. These are used. If several incorporation experts The aggregate gap on the overall score scores are the simple average of the provide different estimates, the median of the indicator set is used to assess the - scores for each of the component indica reported value is applied. In all cases the impact of data changes. Any data update tors (figure 8.3). cost excludes bribes. that leads to a change of 2% or more on the relative score gap is classified as a reform, except when the change is the Paid-in minimum capital FIGURE 8.3 Dealing with construction result of automatic official fee indexation - The paid-in minimum capital require permits: efficiency and quality of building to a price or wage index (for more details, fl ment re ects the amount that the regulation see the chapter on the ease of doing busi - entrepreneur needs to deposit in a bank Rankings are based on scores ness score and ease of doing business or with a third party (for example, a for four indicators - ranking). For example, if the implementa notary) before registration or up to three Days to comply Cost to comply tion of a new one-stop shop for company months after incorporation. It is recorded with formalities with formalities, registration reduces time and procedures as a percentage of the economy’s to build a as % of warehouse warehouse value in a way that the overall gap decreases income per capita. The amount is typi - by 2% or more, the change is classified cally specified in the commercial code as a reform. Minor fee updates or other or the company law. The legal provision 25% 25% small changes in the indicators that have needs to be adopted, enforced and fully Cost Time an aggregate impact of less than 2% on implemented. Any legal limitation of 25% 25% Building Procedures the gap are not classified as a reform, but the company’s operations or decisions quality the data is updated accordingly. control related to the payment of the minimum index capital requirement is recorded. In case Steps to comply Quality of building The data details on starting a business the legal minimum capital is provided with formalities; regulation and its can be found for each economy at ://www per share, it is multiplied by the number completed when implementation final document is .doingbusiness.org. This methodology was of shareholders owning the company. received developed by Djankov and others (2002) Many economies require minimum and is adopted here with minor changes. capital but allow businesses to pay

87 DOING BUSINESS 2019 80 to register the warehouse so that it can BuildCo is not assumed to have any EFFICIENCY OF be used as collateral or transferred to other employees who are technical or CONSTRUCTION PERMITTING another entity are also counted. - licensed specialists, such as geolog Doing Business divides the process of ical or topographical experts. building a warehouse into distinct proce- ƒ To make the data comparable across dures in the questionnaire and solicits Has paid all taxes and taken out all economies, several assumptions about data for calculating the time and cost to necessary insurance applicable to its - the construction company, the ware complete each procedure (figure 8.4). general business activity (for example, house project and the utility connections These procedures include, but are not accidental insurance for construction are used. limited to: workers and third-person liability). ƒ ƒ Owns the land on which the ware- Obtaining all plans and surveys required by the architect and the house will be built and will sell the Assumptions about the engineer to start the design of the warehouse upon its completion. construction company building plans (for example, topo- The construction company (BuildCo): ƒ graphical surveys, location maps or Assumptions about the Is a limited liability company (or its soil tests). legal equivalent). warehouse ƒ ƒ Obtaining and submitting all relevant The warehouse: Operates in the economy’s largest ƒ project-specific documents (for business city. For 11 economies the Will be used for general storage data are also collected for the second example, building plans, site maps activities, such as storage of books or largest business city (table 8A.1). and certificates of urbanism) to stationery. The warehouse will not be ƒ the authorities. used for any goods requiring special Is 100% domestically and privately ƒ conditions, such as food, chemicals, owned. - Hiring external third-party super ƒ or pharmaceuticals. visors, consultants, engineers or Has five owners, none of whom is a ƒ inspectors (if necessary). legal entity. Will have two stories, both above ƒ ƒ ground, with a total constructed area Is fully licensed and insured to carry Obtaining all necessary clearances, of approximately 1,300.6 square out construction projects, such as licenses, permits and certificates. ƒ meters (14,000 square feet). Each building warehouses. Submitting all required notifications ƒ floor will be 3 meters (9 feet, 10 for the start and end of construction Has 60 builders and other employees, inches) high. and for inspections. all of them nationals with the technical ƒ ƒ expertise and professional experience Requesting and receiving all neces Will have road access and be located - necessary to obtain construction sary inspections (unless completed by in the periurban area of the economy’s permits and approvals. a hired private, third-party inspector). largest business city (that is, on the ƒ fringes of the city but still within its Has a licensed architect and a official limits). For 11 economies the also records procedures Doing Business licensed engineer, both registered data are also collected for the second for obtaining connections for water with the local association of archi - largest business city. and sewerage. Procedures necessary tects or engineers, where applicable. ƒ Will not be located in a special economic or industrial zone. What are the time, cost and number of procedures to comply with FIGURE 8.4 ƒ Will be located on a land plot of formalities to build a warehouse? approximately 929 square meters Cost (10,000 square feet) that is 100% (% of warehouse value) owned by BuildCo and is accurately registered in the cadastre and land Completed warehouse registry where freehold titles exist. However, when the land is owned by the government and leased by BuildCo, Number of procedures it is assumed that BuildCo will register the land in the cadastre or land registry or both, whichever is applicable, at the A business in the construction completion of the warehouse. industry Time ƒ Is valued at 50 times income (days) Construction Preconstruction Postconstruction per capita. and utilities ƒ Will be a new construction (with no previous construction on the land),

88 81 DATA NOTES managers, or any party acting on behalf with no trees, natural water sources, TABLE 8.4 What do the indicators on of the company with external parties, natural reserves, or historical monu- the efficiency of construction permitting including government agencies, nota - ments of any kind on the plot. measure? ƒ ries, the land registry, the cadastre, Will have complete architectural and Procedures to legally build a warehouse utility companies, public inspectors, technical plans prepared by a licensed (number) and the hiring of external private architect and a licensed engineer. If Submitting all relevant documents and obtaining all necessary clearances, licenses, permits and inspectors and technical experts where preparation of the plans requires such certificates needed. Interactions between company steps as obtaining further documen - Submitting all required notifications and receiving employees, such as development of the tation or getting prior approvals from all necessary inspections warehouse plans and inspections by the external agencies, these are counted Obtaining utility connections for water and in-house engineer, are not counted as as separate procedures. sewerage ƒ procedures. However, interactions with Will include all technical equipment Registering the warehouse after its completion (if required for use as collateral or for transfer of external parties that are required for the required to be fully operational. the warehouse) ƒ - architect to prepare the plans and draw Will take 30 weeks to construct Time required to complete each procedure ings (such as obtaining topographic (excluding all delays due to adminis- (calendar days) or geological surveys), or to have such trative and regulatory requirements). Does not include time spent gathering documents approved or stamped by information external parties, are counted as proce - Assumptions about the utility Each procedure starts on a separate day— dures. Procedures that the company connections though procedures that can be fully completed online are an exception to this rule undergoes to connect the warehouse The water and sewerage connections: Procedure is considered completed once final ƒ to water and sewerage are included. Will be 150 meters (492 feet) from document is received All procedures that are legally required the existing water source and sewer No prior contact with officials and done in practice by the majority of tap. If there is no water delivery Cost required to complete each procedure companies to build a warehouse are infrastructure in the economy, a (% of warehouse value) recorded, even if they may be avoided borehole will be dug. If there is no Official costs only, no bribes in exceptional cases. For example, sewerage infrastructure, a septic - obtaining technical conditions for elec tank in the smallest size available will tricity or a clearance of the electrical be installed or built. ƒ plans are counted as separate proce - commits to completing each remaining Will not require water for fire dures if they are required for obtaining a procedure without delay. The time that protection reasons; a fire extin - building permit (table 8.4). BuildCo spends on gathering information guishing system (dry system) will is not taken into account. It is assumed be used instead. If a wet fire protec - that BuildCo follows all building require- tion system is required by law, it is Time ments and their sequence as required. assumed that the water demand Time is recorded in calendar days. The specified below also covers the measure captures the median duration water needed for fire protection. that local experts indicate is necessary Cost ƒ to complete a procedure in practice. Will have an average water use of Cost is recorded as a percentage of the It is assumed that the minimum time 662 liters (175 gallons) a day and an warehouse value (assumed to be 50 required for each procedure is one times income per capita). Only official average wastewater fl ow of 568 liters day, except for procedures that can be costs are recorded. All fees associated (150 gallons) a day. Will have a peak fully completed online, for which the with completing the procedures to legally water use of 1,325 liters (350 gallons) time required is recorded as half a day. build a warehouse are recorded, including ow of a day and a peak wastewater fl Although procedures may take place those associated with obtaining land use 1,136 liters (300 gallons) a day. ƒ simultaneously, they cannot start on approvals and preconstruction design Will have a constant level of water the same day (that is, simultaneous clearances; receiving inspections before, demand and wastewater flow procedures start on consecutive days), during, and after construction; obtaining throughout the year. ƒ again with the exception of procedures utility connections; and registering the Connection pipes will be 1 inch in that can be fully completed online. If a warehouse at the property registry. diameter for water and 4 inches in procedure can be accelerated legally for Nonrecurring taxes required for the diameter for sewerage. an additional cost, the fastest procedure completion of the warehouse project are is chosen if that option is more beneficial also recorded. Sales taxes (such as value Procedures to the economy’s score. It is assumed added tax) or capital gains taxes are not A procedure is any interaction of that BuildCo does not waste time and recorded. Nor are deposits that must the building company’s employees,

89 DOING BUSINESS 2019 82 The index ranges from 0 to 2, with be paid up front and are later refunded. What do the indicators on TABLE 8.5 higher values indicating clearer and The building code, information from building quality control measure? more transparent building regulations. local experts, specific regulations and Quality of building regulations index (0–2) In New Zealand, for example, all relevant fee schedules are used as sources for Accessibility of building regulations (0–1) legislation can be found on an official costs. If several local partners provide Clarity of requirements for obtaining a building government website (a score of 1). The different estimates, the median reported permit (0–1) legislation specifies the list of required value is used. Quality control before construction index (0–1) documents to submit, the fees to be paid, Whether licensed or technical experts approve - and all required preapprovals of the draw BUILDING QUALITY CONTROL building plans (0–1) ings or plans by the relevant agencies (a The building quality control index is Quality control during construction index (0–3) score of 1). Adding these numbers gives based on six indices—the quality of Types of inspections legally mandated during New Zealand a score of 2 on the quality building regulations, quality control construction (0–2) of building regulations index. before, during and after construction, Implementation of legally mandated inspections liability and insurance regimes, and in practice (0–1) professional certifications indices (table Quality control before Quality control after construction index (0–3) 8.5). The indicator is based on the same construction index Final inspection legally mandated after case study assumptions as the measures The quality control before construction construction (0–2) of efficiency. index has one component: Implementation of legally mandated final inspection in practice (0–1) ƒ Whether by law, a licensed architect or licensed engineer is part of the Quality of building regulations Liability and insurance regimes index (0–2) committee or team that reviews and index Parties held legally liable for structural flaws after building occupancy (0–1) approves building permit applica- The quality of building regulations index tions and whether that person has has two components: Parties legally mandated to obtain insurance to cover structural flaws after building occupancy or ƒ the authority to refuse an application Whether building regulations are insurance is commonly obtained in practice (0–1) if the plans are not in conformity with easily accessible. A score of 1 is Professional certifications index (0–4) regulations. A score of 1 is assigned assigned if building regulations Qualification requirements for individual who if the national association of archi - (including the building code) or approves building plans (0–2) tects or engineers (or its equivalent) regulations dealing with construc - Qualification requirements for individual who must review the building plans, if an tion permits are available on a supervises construction or conducts inspections (0–2) independent firm or expert who is a website that is updated as new regu - Building quality control index (0–15) licensed architect or engineer must lations are passed; 0.5 if the building review the plans, if the architect or regulations are available free of Sum of the quality of building regulations, quality control before construction, quality control during engineer who prepared the plans charge (or for a nominal fee) at the construction, quality control after construction, must submit an attestation to the relevant permit-issuing authority; 0 liability and insurance regimes, and professional certifications indices permit-issuing authority stating that if the building regulations must be the plans are in compliance with the purchased or if they are not made of the team that reviews the plans and building regulations or if a licensed easily accessible anywhere. ƒ drawings. Rwanda therefore receives a architect or engineer is part of the Whether the requirements for score of 1 on the quality control before committee or team that approves the obtaining a building permit are clearly construction index. plans at the relevant permit-issuing specified. A score of 1 is assigned if authority; 0 if no licensed architect or the building regulations (including engineer is involved in the review of the building code) or any acces - Quality control during the plans to ensure their compliance sible website, brochure, or pamphlet construction index with building regulations. clearly specifies the list of required The quality control during construction documents to submit, the fees to be index has two components: ƒ The index ranges from 0 to 1, with higher paid, and all required preapprovals Whether inspections are mandated values indicating better quality control of the drawings (example: electrical, by law during the construction in the review of the building plans. In water and sewerage, environmental) process. A score of 2 is assigned if Rwanda, for example, the city hall in or plans by the relevant agencies; 0 if (i) a government agency is legally Kigali must review the building permit none of these sources specify any of mandated to conduct technical application, including the plans and these requirements or if these sources inspections at different stages during drawings, and both a licensed archi - specify fewer than the three require- the construction or an in-house tect and a licensed engineer are part ments mentioned above. engineer (that is, an employee of

90 83 DATA NOTES a score of 2 on the quality control after the building company), an external Quality control after construction index. supervising engineer or firm is legally construction index mandated to conduct technical The quality control after construction inspections at different stages during index has two components: Liability and insurance regimes ƒ the construction of the building and is Whether a final inspection is index required to submit a detailed inspec - mandated by law in order to verify The liability and insurance regimes index tions report at the completion of that the building was built in compli- has two components: ƒ the construction; and (ii) it is legally ance with the approved plans and Whether any parties involved in the mandated to conduct risk-based existing building regulations. A score construction process are held legally inspections. A score of 1 is assigned - of 2 is assigned if an in-house super liable for latent defects such as struc - if a government agency is legally vising engineer (that is, an employee aws or problems in the building tural fl mandated to conduct only technical of the building company), an external once it is in use. A score of 1 is assigned inspections at different stages during supervising engineer or an external if at least two of the following parties the construction or if an in-house inspections firm is legally mandated are held legally liable for structural engineer (that is, an employee of to verify that the building has been aws or problems in the building fl the building company), an external built in accordance with the approved once it is in use: the architect or engi - supervising engineer or an external plans and existing building regula- neer who designed the plans for the inspections firm is legally mandated tions, or if a government agency is building, the professional or agency to conduct technical inspections at legally mandated to conduct a final that conducted technical inspec- different stages during the construc- inspection upon completion of the tions, or the construction company; tion of the building and is required to building; 0 if no final inspection is 0.5 if only one of the parties is held submit a detailed inspections report mandated by law after construction legally liable for structural fl aws or at the completion of the construction. and no third party is required to verify problems in the building once it is in A score of 0 is assigned if a govern- that the building has been built in use; 0 if no party is held legally liable ment agency is legally mandated to accordance with the approved plans for structural fl aws or problems in the conduct unscheduled inspections, and existing building regulations. building once it is in use, if the project ƒ or if no technical inspections are owner or investor is the only party Whether the final inspection is imple - mandated by law. held liable, if liability is determined mented in practice. A score of 1 is ƒ in court, or if liability is stipulated assigned if the legally mandated final Whether inspections during construc - in a contract. inspection after construction always tion are implemented in practice. A ƒ occurs in practice or if a supervising score of 1 is assigned if the legally Whether any parties involved in engineer or firm attests that the mandated inspections during construc- the construction process is legally building has been built in accordance tion always occur in practice; 0 if the required to obtain a latent defect with the approved plans and existing legally mandated inspections do not liability—or decennial (10 years) building regulations; 0 if the legally occur in practice, if the inspections liability—insurance policy to cover mandated final inspection does occur most of the time but not always possible structural aws or problems fl not occur in practice, if the legally or if inspections are not mandated in the building once it is in use. A mandated final inspection occurs by law regardless of whether they score of 1 is assigned if the architect most of the time but not always, or commonly occur in practice. or engineer who designed the plans if a final inspection is not mandated for the building, the professional or by law regardless of whether or not it The index ranges from 0 to 3, with higher agency that conducted the tech- commonly occurs in practice. values indicating better quality control nical inspections, the construction during the construction process. In company, or the project owner or The index ranges from 0 to 3, with Antigua and Barbuda, for example, the investor is required by law to obtain higher values indicating better quality Development Control Authority is legally either a decennial liability insurance control after the construction process. mandated to conduct phased inspections - policy or a latent defect liability insur In Haiti, for example, the Municipality under the Physical Planning Act of 2003 ance to cover possible structural fl aws of Port-au-Prince is legally mandated (a score of 1). However, the Development or problems in the building once it is to conduct a final inspection under the Control Authority rarely conducts these - in use or if a decennial liability insur National Building Code of 2012 (a score inspections in practice (a score of 0). ance policy or a latent defect liability of 2). However, the final inspection Adding these numbers gives Antigua and insurance is commonly obtained in does not occur in practice (a score of Barbuda a score of 1 on the quality control practice by the majority of any of 0). Adding these numbers gives Haiti during construction index. these parties even if not required by

91 DOING BUSINESS 2019 84 a registered member of the national fi determines the professional’s quali law. A score of 0 is assigned if no - order (association) of architects or cation requirements. party is required by law to obtain either a decennial liability insurance cation exam. engineers or pass a quali fi or a latent defect liability insurance, The index ranges from 0 to 4, with higher A score of 1 is assigned if national or and such insurance is not commonly values indicating stricter professional state regulations mandate that the obtained in practice by any party, if certification requirements. In Albania, professional must have a university the requirement to obtain an insur - for example, the professional conducting degree (a minimum of a bachelor’s) in ance policy is stipulated in a contract, technical inspections during construc - architecture or engineering and must if any party must obtain a professional tion must have a minimum number of also either have a minimum number insurance or an all risk insurance to years of experience, a relevant university of years of practical experience or be cover the safety of workers or any degree and must be a registered architect a registered member of the national other defects during construction but or engineer (a score of 2). However, the order (association) of architects or not a decennial liability insurance or professional responsible for verifying engineers or pass a quali cation fi a latent defect liability insurance that that the architectural plans or drawings exam. A score of 0 is assigned if would cover defects after the building are in compliance with building regula - national or state regulations mandate is in use, or if any party is required tions must only have a minimum number that the professional must meet only to pay for any damages caused on of years of experience and a university one of the above requirements, if they their own without having to obtain an degree in architecture or engineering (a mandate that the professional must insurance policy. score of 1). Adding these numbers gives meet two of the requirements but Albania a score of 3 on the professional neither of the two is to have a univer - certifications index. The index ranges from 0 to 2, with higher sity degree, or if no national or state values indicating more stringent latent - regulation determines the profes defect liability and insurance regimes. In fi cation requirements. Building quality control index sional’s quali ƒ Madagascar, for example, under article cation requirements of the The building quality control index is The quali fi 1792 of the Civil Code both the archi- the sum of the scores on the quality professional who conducts the tech - tect who designed the plans and the of building regulations, quality control nical inspections during construction. construction company are legally held before construction, quality control A score of 2 is assigned if national or liable for latent defects for a period of 10 during construction, quality control after state regulations mandate that the years after the completion of the building construction, liability and insurance professional must have a minimum (a score of 1). However, there is no legal regimes, and professional certifications number of years of practical experi - requirement for any party to obtain a indices. The index ranges from 0 to 15, ence, must have a university degree decennial liability insurance policy to with higher values indicating better - (a minimum of a bachelor’s) in engi cover structural defects, nor do most quality control and safety mechanisms in neering, and must also either be a parties obtain such insurance in practice the construction regulatory system. registered member of the national (a score of 0). Adding these numbers - fi ca order of engineers or pass a quali gives Madagascar a score of 1 on the If an economy issued no building permits tion exam. A score of 1 is assigned if liability and insurance regimes index. between June 2017 and May 2018 or if national or state regulations mandate the applicable building legislation in the that the professional must have a economy is not being implemented, university degree (a minimum of a Professional certifications index the economy receives a “no practice” bachelor’s) in engineering and must cations index has fi The professional certi mark on the procedures, time, and cost also either have a minimum number two components: ƒ indicators. In addition, a “no practice” of years of practical experience or be cation requirements of fi The quali economy receives a score of 0 on the a registered member of the national - the professional responsible for veri building quality control index even if order (association) of engineers or fying that the architectural plans or its legal framework includes provisions drawings are in compliance with the pass a quali fi cation exam. A score related to building quality control and building regulations. A score of 2 is of 0 is assigned if national or state safety mechanisms. assigned if national or state regula- - regulations mandate that the profes tions mandate that the professional sional must meet only one of the must have a minimum number of requirements, if they mandate that REFORMS years of practical experience, must the professional must meet two of The dealing with construction permits have a university degree (a minimum the requirements but neither of the indicator set tracks changes related to of a bachelor’s) in architecture or two is to have a university degree, - the efficiency and quality of construc engineering, and must also either be or if no national or state regulation tion permitting systems every year.

92 85 DATA NOTES Depending on their impact on the data, measures the connection process at the level of Doing Business FIGURE 8.5 ed as reforms certain changes are classi fi distribution utilities and listed in the summaries of Doing Business reforms in 2017/18 section of the report in order to acknowledge the cant changes. fi implementation of signi Reforms are divided into two types: those that make it easier to do business and those changes that make it more Generation Transmission difficult to do business. The dealing with construction permits indicator set uses Distribution only one criterion to recognize a reform. u New connections u Network operation and maintenance The aggregate gap on the overall score u Metering and billing of the indicator set is used to assess the Customer impact of data changes. Any data update that leads to a change of 2% or more on the score gap is classified as a reform, Data on the reliability of supply are of getting an electricity connection into except when the change is the result of collected from the electricity distribu - distinct procedures and solicits data for automatic official fee indexation to a tion utilities or regulators, depending calculating the time and cost to complete price or wage index (for more details, see upon the specific technical nature of each procedure. the chapter on the ease of doing busi - the data. The rest of the information, ness score and ease of doing business including data on transparency of tariffs - ranking). For example, if the implemen Doing Business In addition, measures the and procedures for obtaining electricity tation of a new electronic permitting reliability of supply and transparency connection, are collected from all market system reduces time in a way that the - of tariffs index (included in the aggre players—the electricity distribution overall gap decreases by 2% or more, gate doing business score and ranking utility, electricity regulatory agencies and such a change is classified as a reform. on the ease of doing business) and the - independent professionals such as elec Minor fee updates or other smaller price of electricity (omitted from these trical engineers, electrical contractors changes in the indicators that have an aggregate measures). The reliability of aggregate impact of less than 2% on the supply and transparency of tariffs index gap are not classified as a reform, but encompasses quantitative data on the FIGURE 8.6 Getting electricity: duration and frequency of power outages fl ected on the most their impact is still re efficiency, reliability and transparency as well as qualitative information on the updated data for this indicator set. Rankings are based on scores for four indicators mechanisms put in place by the utility for monitoring power outages and restoring - The data details on dealing with construc Cost to obtain a Days to obtain power supply, the reporting relationship tion permits can be found for each economy connection, as % of an electricity income per capita connection between the utility and the regulator for at http://www.doingbusiness.org. power outages, the transparency and accessibility of tariffs and, lastly, whether 25% 25% the utility faces a financial deterrent GETTING ELECTRICITY Time Cost aimed at limiting outages (such as a 25% 25% Reliability Procedures requirement to compensate customers records all procedures Doing Business of supply and transparency or pay fines when outages exceed a required for a business to obtain a of tariffs certain cap). permanent electricity connection and Steps to file a connection Power outages supply for a standardized warehouse application, prepare and regulatory The ranking of economies on the ease (figure 8.5). These procedures include a design, complete mechanisms in works, obtain approvals, place to monitor of getting electricity is determined by - applications and contracts with elec go through inspections, and reduce them; install a meter and transparency of sorting their scores for getting electricity. tricity utilities, all necessary inspections sign a supply tariffs These scores are the simple average of and clearances from the distribution contract - the scores for all the component indi utility as well as other agencies, and the cators except the price of electricity external and final connection works. The price of electricity is measured but does not Note: (figure 8.6). The questionnaire divides the process count for the rankings.

93 DOING BUSINESS 2019 86 electricity supply utilities, government medium-voltage distribution network and construction companies. The distri - agencies, electrical contractors and and is either overhead or under - bution utility consulted is the one serving ground, whichever is more common the area (or areas) where warehouses rms. Interactions between electrical fi in the area where the warehouse are most commonly located. If there is company employees and steps related to is located. a choice of distribution utilities, the one the internal electrical wiring, such as the ƒ serving the largest number of customers design and execution of the internal elec- Requires works that involve the is selected. trical installation plans, are not counted crossing of a 10-meter wide road (by as procedures. However, internal wiring excavation, overhead lines) but are To make the data comparable across all carried out on public land. There is inspections and certi fi cations that are economies, several assumptions about no crossing of other owners’ private prerequisites to obtain a new connection the warehouse, the electricity connection property because the warehouse has are counted as procedures. Procedures and the monthly consumption are used. access to a road. that must be completed with the same ƒ utility but with different departments Includes only negligible length in the are counted as separate procedures customer’s private domain. Assumptions about the ƒ (table 8.6). Does not require work to install the warehouse internal wiring of the warehouse. This The warehouse: ƒ The company’s employees are assumed has already been completed up to and Is owned by a local entrepreneur. ƒ to complete all procedures themselves including the customer’s service panel Is located in the economy’s largest unless the use of a third party is mandated or switchboard and the meter base. business city. For 11 economies the (for example, if an electrician registered However, internal wiring inspections data are also collected for the second with the utility is the only party allowed largest business city (table 8A.1). - cations that are prerequi fi and certi ƒ to submit an application). If the company sites to obtain a new connection are Is located in an area where similar can, but is not required to request counted as procedures. warehouses are typically located. In the services of professionals (such this area a new electricity connection as a private firm), procedures will be is not eligible for a special investment Assumptions about the monthly counted for each interaction commonly promotion regime (offering special consumption for January ƒ done in practice. subsidization or faster service, for It is assumed that the warehouse example). operates 30 days a month from 9:00 ƒ A procedure is always counted for the a.m. to 5:00 p.m. (8 hours a day), Is located in an area with no physical external works—whether it is carried with equipment utilized at 80% of constraints. For example, the property out by the utility or a private contractor. capacity on average and that there is not near a railway. ƒ However, the external work procedure are no electricity cuts (assumed for Is a new construction and is being and the meter installation can be counted simplicity reasons). connected to electricity for the ƒ as one unique procedure provided two first time. The monthly energy consumption is ƒ 26,880 kilowatt-hours (kWh); hourly speci Has two stories, both above ground, c conditions are met: (i) both the fi consumption is 112 kWh. - with a total surface area of approxi external works and meter installation ƒ mately 1,300.6 square meters are carried out by the same company If multiple electricity suppliers exist, (14,000 square feet). The plot of or agency, and (ii) there is no additional the warehouse is served by the land on which it is built is 929 square interaction for the customer between the cheapest supplier. ƒ meters (10,000 square feet). external works and the meter installation Tariffs effective in January of the ƒ (such as, for example, a supply contract current year are used for calculation Is used for storage of goods. that needs to be signed or a security of the price of electricity for the ware- deposit that needs to be paid). house. Although January has 31 days, Assumptions about the for calculation purposes only 30 days electricity connection If an internal wiring inspection—or a are used. The electricity connection: ƒ fi related certi cation on the installation—is Is a permanent one. ƒ Is a three-phase, four-wire Y connec- needed to obtain a new connection, then Procedures it is counted as a procedure. However, tion with a subscribed capacity of - A procedure is defined as any interac if an internal inspection and the meter 140-kilo-volt-ampere (kVA) with tion of the company’s employees or its installation occur (i) at the same time, a power factor of 1, when 1 kVA = 1 main electrician or electrical engineer kilowatt (kW). and (ii) without additional follow up or (that is, the one who may have done the ƒ through a separate request, then these internal wiring) with external parties, Has a length of 150 meters. The are counted as one procedure. such as the electricity distribution utility, connection is to either the low- or

94 87 DATA NOTES consumption bills, it is not recorded. To the company does not waste time and TABLE 8.6 What do the getting calculate the present value of the lost commits to completing each remaining electricity indicators measure? interest earnings, the end-2017 lending procedure without delay. The time that Procedures to obtain an electricity rates from the International Monetary the company spends on gathering infor - connection (number) Fund’s International Financial Statistics mation is not taken into account. It is Submitting all relevant documents and obtaining all necessary clearances and permits are used. In cases where the security assumed that the company is aware of all deposit is returned with interest, the electricity connection requirements and Completing all required notifications and receiving all necessary inspections difference between the lending rate and their sequence from the beginning. Obtaining external installation works and the interest paid by the utility is used to possibly purchasing material for these works calculate the present value. Cost Concluding any necessary supply contract and Cost is recorded as a percentage of the obtaining final supply In some economies, the security deposit economy’s income per capita and is Time required to complete each procedure can be put up in the form of a bond: exclusive of value added tax. All the fees (calendar days) the company can obtain from a bank and costs associated with completing Is at least one calendar day or an insurance company a guarantee the procedures to connect a warehouse Each procedure starts on a separate day issued on the assets it holds with that to electricity are recorded, including Does not include time spent gathering financial institution. In contrast to the those related to obtaining clearances information scenario in which the customer pays the from government agencies, applying for Reflects the time spent in practice, with little deposit in cash to the utility, in this case the connection, receiving inspections follow-up and no prior contact with officials the company does not lose ownership of both the site and the internal wiring, Cost required to complete each procedure (% of income per capita) control over the full amount and can purchasing material, getting the actual continue using it. In return, the company connection works and paying a security Official costs only, no bribes will pay the bank a commission for deposit. Information from local experts Value added tax excluded obtaining the bond. The commission - and specific regulations and fee sched Reliability of supply and transparency of charged may vary depending on the ules are used as sources. If several local tariffs index (0–8) credit standing of the company. The partners provide different estimates, Duration and frequency of power outages (0–3) best possible credit standing and thus the median reported value is used. In all Tools to monitor power outages (0–1) the lowest possible commission are cases the cost excludes bribes. Tools to restore power supply (0–1) assumed. Where a bond can be put up, Regulatory monitoring of utilities’ performance (0–1) the value recorded for the deposit is the Security deposit Financial deterrents aimed at limiting outages (0–1) annual commission times the five years Utilities may require security deposits as Transparency and accessibility of tariffs (0–1) assumed to be the length of the contract. a guarantee against the possible failure If both options exist, the cheaper alter - of customers to pay their consumption Price of electricity (cents per kilowatt-hour) native is recorded. bills. For this reason, the security deposit Price based on monthly bill for commercial warehouse in case study - for a new customer is most often calcu In Hong Kong SAR, China, a customer lated as a function of the customer’s Doing Business Note: While measures the price of electricity, it does not include these data when calculating - requesting a 140-kVA electricity connec estimated consumption. the score for getting electricity or the ranking on the ease of getting electricity. tion in 2018 would have had to put up a security deposit of 64,721 Hong Kong does not record the full Doing Business dollars (approximately $8,250) in cash amount of the security deposit. If the Time or check, and the deposit would have deposit is based on the customer’s Time is recorded in calendar days. The been returned only at the end of the actual consumption, this basis is the measure captures the median duration contract. The customer could instead one assumed in the case study. Rather that the electricity utility and experts have invested this money at the prevailing than the full amount of the security indicate is necessary in practice, rather lending rate of 5.0%. Over the five years deposit, Doing Business records the than required by law, to complete a of the contract, this would imply a present value of the losses in interest procedure with minimum follow-up and present value of lost interest earnings of earnings experienced by the customer no extra payments. It is assumed that 14,008 Hong Kong dollars ($1,780). In because the utility holds the security the minimum time required for each contrast, if the customer chose to settle deposit over a prolonged period, in procedure is one day. Although proce- the deposit with a bank guarantee at an most cases until the end of the contract dures may take place simultaneously, annual rate of 1.5%, the amount lost over (assumed to be after five years). In they cannot start on the same day (that the five years would be just 4,854 Hong cases where the security deposit is, simultaneous procedures start on Kong dollars ($620). is used to cover the first monthly consecutive days). It is assumed that

95 DOING BUSINESS 2019 88 on the reliability of supply and transpar - available online and customers are Reliability of supply and ency of tariffs index is calculated on the ed of a change in tariff a full fi noti transparency of tariffs index basis of the following six components: billing cycle (that is, one month) Doing Business uses the system average ƒ ahead of time; 0 if not. interruption duration index (SAIDI) What the SAIDI and SAIFI values are. and the system average interruption If SAIDI and SAIFI are 12 (equivalent frequency index (SAIFI) to measure to an outage of one hour each month) The index ranges from 0 to 8, with the duration and frequency of power or below, a score of 1 is assigned. higher values indicating greater reli - outages in the largest business city of If SAIDI and SAIFI are 4 (equiva - ability of electricity supply and greater each economy (for 11 economies the data lent to an outage of one hour each transparency of tariffs. In the United are also collected for the second largest quarter) or below, 1 additional point Kingdom, for example, the distribution business city; table 8A.1). SAIDI is the is assigned. Finally, if SAIDI and SAIFI utility company UK Power Networks average total duration of outages over are 1 (equivalent to an outage of one uses SAIDI and SAIFI metrics to monitor the course of a year for each customer hour per year) or below, 1 more point and collect data on power outages. In served, while SAIFI is the average number is assigned. 2017, the average total duration of power ƒ of service interruptions experienced outages in London was 0.27 hours per What tools are used by the distri- by a customer in a year. Annual data customer and the average number of bution utility to monitor power (covering the calendar year) are collected outages experienced by a customer was outages. A score of 1 is assigned if from distribution utility companies and 0.13. Both SAIDI and SAIFI are below the utility uses automated tools, such national regulators on SAIDI and SAIFI. the threshold and indicate that there as an Outage/Incident Management Both SAIDI and SAIFI estimates should was less than one outage a year per System (OMS/IMS) or Supervisory include planned and unplanned outages, customer, for a total duration of less than Control and Data Acquisition as well as load shedding. one hour. Hence, the economy not only (SCADA) system; 0 if it relies solely meets the eligibility criteria for obtaining on calls from customers, and records a score on the index, it also receives a An economy is eligible to obtain a score and monitors outages manually. ƒ score of 3 on the first component of the on the reliability of supply and transpar - - What tools are used by the distribu index. The utility uses the automatic tion utility to restore power supply. A fi es two ency of tariffs index if it satis - GE PowerOn Control System to iden score of 1 is assigned if the utility uses conditions. First, the utility must collect tify faults in the network (a score of 1) automated tools, such as an OMS/ data on all types of outages (measuring and restore electricity service (a score IMS or SCADA system; 0 if it relies the average total duration of outages of 1). The Office of Gas and Electricity solely on manual resources for service per customer and the average number Markets, an independent national restoration, such as field crews or of outages per customer). Second, the regulatory authority, actively reviews maintenance personnel. SAIDI value must be below a threshold of ƒ the utility’s performance in providing 100 hours and the SAIFI value must be Whether a regulator—that is, an reliable electricity service (a score of under 100 outages. entity separate from the utility— - 1) and requires the utility to compen monitors the utility’s performance sate customers if outages last longer An economy is not eligible to obtain on reliability of supply. A score of 1 than a maximum period defined by the a score if outages are too frequent or is assigned if the regulator performs regulator (a score of 1). Customers are long-lasting for the electricity supply periodic or real-time reviews; 0 if it notified of a change in tariffs ahead to be considered reliable—that is, if the does not monitor power outages and of the next billing cycle and can easily SAIDI or the SAIFI values exceed the does not require the utility to report check effective tariffs online (a score determined thresholds. An economy on reliability of supply. ƒ of 1). Adding these numbers gives the is also not eligible to obtain a score on Whether financial deterrents exist to United Kingdom a total score of 8 on the the index if data on power outages are limit outages. A score of 1 is assigned reliability of supply and transparency of not collected or collected partially (for if the utility compensates customers tariffs index. example, planned outages or load shed- when outages exceed a certain cap, ding are not included in the calculation of if the utility is fined by the regulator On the other hand, several economies the SAIDI and SAIFI indices), and if the when outages exceed a certain cap or receive a score of 0 on the reliability of minimum outage time considered for if both these conditions are met; 0 if supply and transparency of tariffs index. calculation of the SAIDI and SAIFI indices no deterrent mechanism of any kind The reason may be that outages occur is over 5 minutes. is available. ƒ more than once a month and none of Whether electricity tariffs are trans - the mechanisms and tools measured For all economies that meet the criteria parent and easily available. A score by the index are in place. An economy Doing Business as determined by , a score of 1 is assigned if effective tariffs are

96 89 DATA NOTES be considered a reform that makes doing may also receive a score of 0 if either the REFORMS SAIDI or SAIFI value (or both) exceeds business easier. However, if a utility The getting electricity indicator set tracks establishes a one-stop shop to stream- the threshold of 100, or not all outages changes related to the efficiency of the were considered when calculating the line the connection process or if it installs connection process, as well as the reli - indices. In Suriname, for example, the - an automated system to improve moni ability of power supply and transparency toring of power outages and restoration utility does not include load shedding of tariffs. Depending on the impact on of electricity services, these actions in the calculation of SAIDI and SAIFI the data, certain changes are classified would be considered reforms that made indices. Thus, based on the criteria as reforms and listed in the summaries of established, Suriname cannot receive doing business easier. Doing Business reforms in 2017/18 section a score on the index even though the of the report in order to acknowledge the utility uses automated systems for implementation of significant changes. The data details on getting electricity monitoring outages and restoration of Reforms are divided into two types: those can be found for each economy at http:// power supply and there is a transparency that make it easier to do business and www.doingbusiness.org. The initial meth - of electricity tariffs. those changes that make it more difficult odology was developed by Geginat and to do business. The getting electricity Ramalho (2015) and is adopted here with indicator set uses two criteria to recog- minor changes. If an economy issued no new elec - nize a reform. tricity connections to an electrical grid between June 2017 and May 2018, or if electricity is not provided during that First, the aggregate gap on the overall REGISTERING PROPERTY period, the economy receives a “no score of the indicator set is used to practice” mark on the procedures, time assess the impact of data changes. Any records the full sequence Doing Business and cost indicators. In addition, a “no data update that leads to a change of 2% of procedures necessary for a limited practice” economy receives a score of 0 liability company (the buyer) to purchase or more on the score gap is classi fi ed as on the reliability of supply and transpar - a property from another business (the a reform, except when the change is the ency of tariff index even if, for example, seller) and to transfer the property title result of automatic official fee indexation there is regulatory oversight of utilities to the buyer’s name so that the buyer to a price or wage index (for more details, on power interruptions, among others. can use the property for expanding its see the chapter on the ease of doing busi - business, use the property as collateral ness score and ease of doing business in taking new loans or, if necessary, sell - ranking). For example, if the implementa Price of electricity the property to another business. It also tion of a new single window at the utility Doing Business measures the price of measures the time and cost to complete - reduces the time to process new connec electricity but does not include these Doing Business each of these procedures. tion requests in a way that the overall data when calculating the score for also measures the quality of the land gap decreases by 2% or more, such a getting electricity or the ranking on administration system in each economy. the ease of getting electricity. The data ed as a reform. On the fi change is classi The quality of land administration index Doing Business are available on the other hand, minor fee updates from the - has five dimensions: reliability of infra website (http://www.doingbusiness utility or other small changes that have structure, transparency of information, .org) and are based on standardized an aggregate impact of less than 2% on geographic coverage, land dispute resolu- assumptions to ensure comparability ed as a reform, but fi the gap are not classi tion and equal access to property rights. across economies. their impact is still reflected in the most updated indicators for this topic. The ranking of economies on the ease The price of electricity is measured in of registering property is determined by U.S. cents per kilowatt-hour. A monthly Second, to be considered a reform, sorting their scores for registering prop- electricity consumption is assumed, for changes in the data must be tied to erty. These scores are the simple average which a monthly bill is then computed for an initiative led by the utility or by the of the scores for each of the component - a warehouse based in the largest busi government—and not an exogenous indicators (figure 8.7). ness city of the economy for the month event. For example, if outages increase of January (for 11 economies the data considerably from one year to the next are also collected for the second largest due to inclement weather, this cannot EFFICIENCY OF TRANSFERRING business city; table 8A.1). As noted, the be considered a reform that makes doing PROPERTY warehouse uses electricity 30 days a business harder. Similarly, if the cost of Doing Business , the As recorded by month, from 9:00 a.m. to 5:00 p.m., so electricity-related materials (such as process of transferring property starts different tariff schedules may apply if a cabling or transformers) decreases due with obtaining the necessary documents, time-of-use tariff is available. to a currency appreciation, this cannot such as a copy of the seller’s title if

97 DOING BUSINESS 2019 90 ƒ ƒ Will not be used for special purposes, Have 50 employees each, all of whom FIGURE 8.7 Registering property: are nationals. and no special permits, such as for efficiency and quality of land ƒ residential use, industrial plants, Perform general commercial activities. administration system waste storage or certain types of agri - Rankings are based on scores cultural activities, are required. Assumptions about the property for four indicators ƒ The property: Has no occupants, and no other party Cost to transfer Days to transfer ƒ holds a legal interest in it. Has a value of 50 times income per property, as % of property between two property value local companies capita, which equals the sale price. ƒ Procedures Is fully owned by the seller. ƒ Has no mortgages attached and has A procedure is defined as any interaction 25% 25% of the buyer or the seller, their agents (if been under the same ownership for Time Cost an agent is legally or in practice required) the past 10 years. 25% 25% Quality Procedures ƒ with external parties, including govern- Is registered in the land registry of land administration index ment agencies, inspectors, notaries and or cadastre, or both, and is free lawyers. Interactions between company of title disputes. Steps to transfer Reliability, ƒ - officers and employees are not consid Is located in a periurban commercial property so that it transparency and ered. All procedures that are legally or in zone, and no rezoning is required. can be sold or used coverage of land as collateral administration system; ƒ practice required for registering property Consists of land and a building. The protection against land disputes; equal access are recorded, even if they may be avoided land area is 557.4 square meters to property rights in exceptional cases (table 8.7). If a proce - (6,000 square feet). A two-story dure can be accelerated legally for an warehouse of 929 square meters additional cost, the fastest procedure is (10,000 square feet) is located on the chosen if that option is more beneficial to land. The warehouse is 10 years old, necessary, and conducting due diligence the economy’s score and if it is used by the is in good condition, has no heating if required. The transaction is considered majority of property owners. Although the system and complies with all safety complete when it is opposable to third buyer may use lawyers or other profes - standards, building codes and other parties and when the buyer can use sionals where necessary in the registration legal requirements. The property, the property, use it as collateral for a process, it is assumed that the buyer does consisting of land and building, will be bank loan or resell it (figure 8.8). Every not employ an outside facilitator in the transferred in its entirety. procedure required by law or necessary ƒ registration process unless legally or in in practice is included, whether it is the Will not be subject to renovations practice required to do so. responsibility of the seller or the buyer or additional construction following or must be completed by a third party the purchase. ƒ on their behalf. Local property lawyers, Time Has no trees, natural water sources, notaries and property registries provide natural reserves or historical monu- Time is recorded in calendar days. information on procedures as well as the ments of any kind. The measure captures the median time and cost to complete each of them. To make the data comparable across FIGURE 8.8 What are the time, cost and number of procedures required to transfer economies, several assumptions about property between two local companies? the parties to the transaction, the prop - erty and the procedures are used. Cost (% of property value) Assumptions about the parties Buyer can use the property, The parties (buyer and seller): resell it or use it as ƒ Are limited liability companies (or the collateral Number of legal equivalent). procedures Land & two-story ƒ Are located in the periurban area of warehouse the economy’s largest business city. Seller with property For 11 economies the data are also registered and no title disputes Time collected for the second largest busi - (days) Postregistration Registration Preregistration ness city (table 8A.1). ƒ Are 100% domestically and privately owned.

98 91 DATA NOTES ƒ among sources, the median reported Whether there is a geographic What do the indicators on TABLE 8.7 value is used. information system—an electronic the efficiency of transferring property database for recording boundaries, measure? checking plans and providing cadas - Cost Procedures to legally transfer title on tral information. A score of 1 is Cost is recorded as a percentage of the immovable property (number) assigned if yes; 0 if no. property value, assumed to be equiva- Preregistration procedures (for example, checking for liens, notarizing sales agreement, paying ƒ lent to 50 times income per capita. How the land ownership registry property transfer taxes) Only official costs required by law are and mapping agency are linked. A Registration procedures in the economy's largest recorded, including fees, transfer taxes, score of 1 is assigned if information a business city stamp duties and any other payment to about land ownership and maps are Postregistration procedures (for example, filling the property registry, notaries, public kept in a single database or in linked title with municipality) agencies or lawyers. Other taxes, such as databases; 0 if there is no connection Time required to complete each procedure capital gains tax or value added tax, are between the different databases. Does not include time spent gathering ƒ excluded from the cost measure. Both How immovable property is identified. information costs borne by the buyer and the seller A score of 1 is assigned if there is a Each procedure starts on a separate day— though procedures that can be fully completed are included. If cost estimates differ unique number to identify properties online are an exception to this rule among sources, the median reported for the majority of land plots; 0 if there Procedure is considered completed once final value is used. are multiple identifiers. document is received No prior contact with officials The index ranges from 0 to 8, with QUALITY OF LAND Cost required to complete each procedure higher values indicating a higher quality ADMINISTRATION (% of property value) of infrastructure for ensuring the reli - The quality of land administration index Official costs only (such as administrative fees, ability of information on property titles is composed of five other indices: the duties and taxes) and boundaries. In Turkey, for example, reliability of infrastructure, transparency Value Added Tax, Capital Gains Tax and illicit payments are excluded the land registry offices in Istanbul of information, geographic coverage, maintain titles in a fully digital format land dispute resolution and equal access or 11 economies the data are also collected for the a. F second largest business city. (a score of 2) and have a fully electronic to property rights (table 8.8). Data are database to check for encumbrances collected for each economy’s largest (a score of 1). The Cadastral Directorate business city. For 11 economies the data duration that property lawyers, notaries offices in Istanbul have digital maps are also collected for the second largest or registry officials indicate is necessary (a score of 2), and the Geographical business city. to complete a procedure. It is assumed Information Directorate has a public that the minimum time required for each portal allowing users to check the - procedure is one day, except for proce Reliability of infrastructure plans and cadastral information on dures that can be fully completed online, index parcels along with satellite images for which the time required is recorded The reliability of infrastructure index has (a score of 1). Databases about land as half a day. Although procedures may six components: ƒ ownership and maps are linked to each take place simultaneously, they cannot How land titles are kept at the other through the TAKBIS system, start on the same day (again except for registry of the largest business city an integrated information system for procedures that can be fully completed of the economy. A score of 2 is the land registry offices and cadastral online). It is assumed that the buyer assigned if the majority of land titles offices (a score of 1). Finally, there is does not waste time and commits to are fully digital; 1 if the majority are - a unique identifying number for prop completing each remaining procedure scanned; 0 if the majority are kept erties (a score of 1). Adding these without delay. If a procedure can be in paper format. ƒ numbers gives Turkey a score of 8 on accelerated for an additional cost, the - Whether there is an electronic data the reliability of infrastructure index. fastest legal procedure available and base for checking for encumbrances. used by the majority of property owners A score of 1 is assigned if yes; 0 if no. ƒ is chosen. If procedures can be under - Transparency of information How maps of land plots are kept at taken simultaneously, it is assumed that the mapping agency of the largest index they are. It is assumed that the parties business city of the economy. A score The transparency of information index involved are aware of all requirements of 2 is assigned if the majority of maps has 10 components: ƒ and their sequence from the beginning. are fully digital; 1 if the majority are - Whether information on land owner Time spent on gathering information is scanned; 0 if the majority are kept in ship is made publicly available. A not considered. If time estimates differ paper format. score of 1 is assigned if information

99 DOING BUSINESS 2019 92 published about property transfers in TABLE 8.8 What do the indicators on the quality of land administration measure? the largest business city in the past Reliability of infrastructure index (0–8) calendar year at the latest on May Type of system for archiving information on land ownership 1st of the following year; 0 if no such Availability of electronic database to check for encumbrances statistics are made publicly available. ƒ Whether maps of land plots are made Type of system for archiving maps publicly available. A score of 0.5 is Availability of geographic information system assigned if maps are accessible by Link between property ownership registry and mapping system anyone; 0 if access is restricted. Transparency of information index (0–6) ƒ Whether the fee schedule for Accessibility of information on land ownership accessing maps is made publicly Accessibility of maps of land plots available. A score of 0.5 is assigned if Publication of fee schedules, lists of registration documents, service standards the fee schedule is accessible online or on a public board free of charge; 0 Availability of a specific and separate mechanism for complaints if it is not made available to the public Publication of statistics about the number of property transactions or if it can be obtained only in person. Geographic coverage index (0–8) ƒ Whether the mapping agency a Coverage of land registry at the level of the largest business city and the economy fi c time frame for commits to a speci a Coverage of mapping agency at the level of the largest business city and the economy delivering an updated map. A score of Land dispute resolution index (0–8) 0.5 is assigned if the service standard is accessible online or on a public Legal framework for immovable property registration board; 0 if it is not made available to Mechanisms to prevent and resolve land disputes the public or if it can be obtained only Equal access to property rights (-2–0) in person. Unequal ownership rights to property between unmarried men and women ƒ Whether there is a specific and Unequal ownership rights to property between married men and women independent mechanism for filing Quality of land administration index (0–30) complaints about a problem that Sum of the reliability of infrastructure, transparency of information, geographic coverage, land dispute occurred at the mapping agency. A resolution indices and equal access to property rights score of 0.5 is assigned if there is a a. or 11 economies the data are also collected for the second largest business city. F specific and independent mecha - nism for filing a complaint; 0 if there is only a general mechanism or delivering a legally binding document on land ownership is accessible by no mechanism. that proves property ownership. A anyone; 0 if access is restricted. ƒ score of 0.5 is assigned if the service Whether the list of documents The index ranges from 0 to 6, with higher standard is accessible online or on required for completing the registra- values indicating greater transparency in a public board; 0 if it is not made tion of property transactions is made the land administration system. In the available to the public or if it can be publicly available. A score of 0.5 is Netherlands, for example, anyone who obtained only in person. assigned if the list of documents is ƒ - pays a fee can consult the land owner accessible online or on a public board; Whether there is a specific and ship database (a score of 1). Information 0 if it is not made available to the independent mechanism for filing can be obtained at the office, by mail or public or if it can be obtained only complaints about a problem that online using the Kadaster website (http:// in person. occurred at the agency in charge of ƒ www.kadaster.nl). Anyone can also get immovable property registration. Whether the fee schedule for information online about the list of A score of 1 is assigned if there is a - completing the registration of prop documents to submit for property regis- specific and independent mecha - erty transactions is made publicly tration (a score of 0.5), the fee schedule available. A score of 0.5 is assigned if nism for fi ling a complaint; 0 if there for registration (a score of 0.5) and the the fee schedule is accessible online is only a general mechanism or service standards (a score of 0.5). And or on a public board free of charge; 0 no mechanism. ƒ anyone facing a problem at the land if it is not made available to the public Whether there are publicly available registry can file a complaint or report an or if it can be obtained only in person. official statistics tracking the number ƒ error by filling out a specific form online of transactions at the immovable Whether the agency in charge of (a score of 1). In addition, the Kadaster property registration agency. A score immovable property registration makes statistics about land transactions of 0.5 is assigned if statistics are fi c time frame for commits to a speci

100 93 DATA NOTES ƒ Japan a score of 8 on the geographic available to the public, reporting a total of How much time it takes to obtain a coverage index. 39,849 property transfers in Amsterdam decision from a court of first instance in 2017 (a score of 0.5). Moreover, (without an appeal) in a standard - land dispute between two local busi anyone who pays a fee can consult online Land dispute resolution index cadastral maps (a score of 0.5). It is also nesses over tenure rights worth 50 The land dispute resolution index times income per capita and located possible to get public access to the fee assesses the legal framework for schedule for map consultation (a score in the largest business city. A score of immovable property registration and of 0.5), the service standards for delivery 3 is assigned if it takes less than one the accessibility of dispute resolu- of an updated plan (a score of 0.5) and a year; 2 if it takes between one and tion mechanisms. The index has specific mechanism for filing a complaint two years; 1 if it takes between two eight components: ƒ and three years; 0 if it takes more than about a map (a score of 0.5). Adding Whether the law requires that all three years. these numbers gives the Netherlands a property sale transactions be regis- ƒ score of 6 on the transparency of infor - tered at the immovable property Whether there are publicly avail- mation index. registry to make them opposable to able statistics on the number of third parties. A score of 1.5 is assigned land disputes in the first instance. A if yes; 0 if no. score of 0.5 is assigned if statistics Geographic coverage index ƒ are published about land disputes The geographic coverage index has Whether the formal system of in the economy in the past calendar immovable property registration is four components: ƒ year; 0 if no such statistics are made subject to a guarantee. A score of 0.5 How complete the coverage of the publicly available. is assigned if either a state or private land registry is at the level of the guarantee over immovable property largest business city. A score of 2 is The index ranges from 0 to 8, with registration is required by law; 0 if no assigned if all privately held land plots higher values indicating greater protec- such guarantee is required. in the city are formally registered at ƒ tion against land disputes. In the United the land registry; 0 if not. Whether there is a specific, out-of- ƒ Kingdom, for example, according to the court compensation mechanism to How complete the coverage of the Land Registration Act 2002 property cover for losses incurred by parties land registry is at the level of the transactions must be registered at the who engaged in good faith in a prop- economy. A score of 2 is assigned land registry to make them opposable erty transaction based on erroneous if all privately held land plots in the to third parties (a score of 1.5). The information certified by the immov - economy are formally registered at property transfer system is guaranteed able property registry. A score of 0.5 the land registry; 0 if not. ƒ by the state (a score of 0.5) and has is assigned if yes; 0 if no. How complete the coverage of the ƒ a compensation mechanism to cover mapping agency is at the level of the Whether the legal system requires losses incurred by parties who engaged largest business city. A score of 2 is verification of the legal validity of the in good faith in a property transaction assigned if all privately held land plots documents (such as the sales, transfer based on an error by the registry (a in the city are mapped; 0 if not. or conveyance deed) necessary for a ƒ score of 0.5). In accordance with the property transaction. A score of 0.5 How complete the coverage of the Proceeds of Crime Act 2002 and the is assigned if there is a review of legal mapping agency is at the level of the Money Laundering Regulations 2007, validity, either by the registrar or by economy. A score of 2 is assigned a lawyer verifies the legal validity of a professional (such as a notary or a if all privately held land plots in the the documents in a property transac- lawyer); 0 if there is no review. economy are mapped; 0 if not. ƒ tion (a score of 0.5) and the identity of Whether the legal system requires the parties (a score of 0.5). The United The index ranges from 0 to 8, with higher verification of the identity of the Kingdom has a national database to values indicating greater geographic parties to a property transaction. - verify the accuracy of identity docu coverage in land ownership registration A score of 0.5 is assigned if there is ments (a score of 1). In a land dispute and cadastral mapping. In Japan, for verification of identity, either by the between two British companies over example, all privately held land plots are registrar or by a professional (such the tenure rights of a property worth formally registered at the land registry as a notary or a lawyer); 0 if there is $2,026,500, the Land Registration divi - in Tokyo and Osaka (a score of 2) and no verification. ƒ sion of the Property Chamber (First-tier the economy as a whole (a score of 2). Whether there is a national database Tribunal) gives a decision in less than Also, all privately held land plots are to verify the accuracy of identity one year (a score of 3). Finally, statistics mapped in both cities (a score of 2) documents. A score of 1 is assigned if about land disputes are collected and and the economy as a whole (a score such a national database is available; published; there were a total of 1,154 of 2). Adding these numbers gives 0 if not.

101 DOING BUSINESS 2019 94 Act [Cap 132], Sections 7, 45 and 82 (a land disputes in the country in 2017 (a official fee indexation to a price or wage score of -1). Adding these numbers gives score of 0.5). Adding these numbers index (for more details, see the chapter Tonga a score of -2 on the equal access gives the United Kingdom a score of 8 on the ease of doing business score to property rights index—which indicates on the land dispute resolution index. and ease of doing business ranking). unequal property rights between men For example, if the implementation of and women. a new electronic property registration Equal access to property rights system reduces time in a way that the index overall gap decreases by 2% or more, Quality of land administration The equal access to property rights index such change is classified as a reform. has two components: index ƒ Minor fee updates or other smaller The quality of land administration index is - Whether unmarried men and unmar changes in the indicators that have an ried women have equal ownership the sum of the scores on the reliability of aggregate impact of less than 2% on infrastructure, transparency of informa rights to property. A score of -1 is - the gap are not classified as a reform, - tion, geographic coverage, land dispute assigned if there are unequal owner ship rights to property; 0 if there is resolution and equal access to property but their impact is still re ected in fl indices. The index ranges from 0 to 30 equality. the most updated indicators for this ƒ with higher values indicating better indicator set. Whether married men and married quality of the land administration system. women have equal ownership rights to property. A score of -1 is assigned if Second, the overall score on the quality of If private sector entities were unable there are unequal ownership rights to land administration is also considered as to register property transfers in an property; 0 if there is equality. a criterion. Any change of 1 point or more economy between June 2017 and May - on the overall quality score is acknowl 2018, the economy receives a “no edged as a reform. For instance, the Ownership rights cover the ability to practice” mark on the procedures, time completion of the geographic coverage manage, control, administer, access, and cost indicators. A “no practice” of the land registry of the business city encumber, receive, dispose of and economy receives a score of 0 on the (2 points) is considered as a reform. transfer property. Each restriction is quality of land administration index even - considered if there is a differential treat if its legal framework includes provisions ment for men and women in the law The data details on registering property can related to land administration. considering the default marital property be found for each economy at http://www regime. For customary land systems, .doingbusiness.org. equality is assumed unless there is REFORMS a general legal provision stating a The registering property indicator set differential treatment. tracks changes related to the efficiency GETTING CREDIT and quality of land administration The index ranges from -2 to 0, with systems every year. Depending on the measures the legal rights Doing Business - higher values indicating greater inclu impact on the data, certain changes are of borrowers and lenders with respect siveness of property rights. In Mali, for classified as reforms and listed in the to secured transactions through one set example, unmarried men and unmarried reforms in Doing Business summaries of of indicators and the reporting of credit women have equal ownership rights to 2017/18 section of the report in order information through another. The first property (a score of 0). The same applies to acknowledge the implementation of measures whether certain features that to married men and women who can use significant changes. Reforms are divided facilitate lending exist within the appli- their property in the same way (a score into two types: those that make it easier cable collateral and bankruptcy laws. of 0). Adding these numbers gives Mali a to do business and those changes that The second measures the coverage, score of 0 on the equal access to property make it more difficult to do business. The scope and accessibility of credit rights index—which indicates equal prop - registering property indicator set uses information available through credit erty rights between men and women. By two criteria to recognize a reform. reporting service providers such as contrast, in Tonga unmarried men and credit bureaus or credit registries (figure unmarried women do not have equal First, the aggregate gap on the overall 8.9). The ranking of economies on the ownership rights to property according score of the indicator set is used to ease of getting credit is determined by to the Land Act [Cap 132], Sections assess the impact of data changes. sorting their scores for getting credit. 7, 45 and 82 (a score of -1). The same Any data update that leads to a change These scores are the sum of the scores applies to married men and women who of 2% or more in the score gap is for the strength of legal rights index and are not permitted to use their property classified as a reform, except when the depth of credit information index in the same way according to the Land the change is the result of automatic (figure 8.10).

102 95 DATA NOTES TABLE 8.9 What do the getting credit FIGURE 8.9 Do lenders have credit information on entrepreneurs seeking credit? Is indicators measure? the law favorable to borrowers and lenders using movable assets as collateral? Strength of legal rights index (0–12) Protection of rights of borrowers and lenders C r e d i t through collateral laws (0–10) i n f o r m a t i o n Protection of secured creditors’ rights through bankruptcy laws (0–2) Can movable assets be Potential used as collateral? borrower Depth of credit information index (0–8) Movable Collateral Credit bureaus Scope and accessibility of credit information Lender asset registry and registries distributed by credit bureaus and credit registries (0–8) What types can be Can lenders used as collateral? Credit bureau coverage (% of adults) access credit information on Number of individuals and firms listed in the largest borrowers? credit bureau as percentage of adult population Credit registry coverage (% of adults) Number of individuals and firms listed in a credit registry as percentage of adult population ƒ through teleconference calls or on-site LEGAL RIGHTS OF ABC has its headquarters and only visits in all economies. base of operations in the economy’s BORROWERS AND LENDERS largest business city. For 11 econo- The data on the legal rights of borrowers mies the data are also collected for and lenders are gathered through a Strength of legal rights index the second largest business city questionnaire administered to financial The strength of legal rights index (table 8A.1). lawyers and verified through analysis of measures the degree to which collateral ƒ laws and regulations as well as public and bankruptcy laws protect the rights of Both ABC and BizBank are 100% sources of information on collateral borrowers and lenders and thus facilitate domestically owned. and bankruptcy laws. Questionnaire lending (table 8.9). For each economy responses are verified through several it is first determined whether a unitary The case scenarios also involve rounds of follow-up communication with secured transactions system exists. Then assumptions. In case A, as collateral respondents as well as by contacting third two case scenarios, case A and case B, for the loan, ABC grants BizBank a parties and consulting public sources. - are used to determine how a nonpos nonpossessory security interest in one The questionnaire data are confirmed sessory security interest is created, category of movable assets, for example, publicized and enforced according to the its machinery or its inventory. ABC wants law. Special emphasis is given to how to keep both possession and ownership - the collateral registry operates (if regis of the collateral. In economies where the Getting credit: collateral FIGURE 8.10 tration of security interests is possible). law does not allow nonpossessory secu - rules and credit information The case scenarios involve a secured rity interests in movable property, ABC Rankings are based on scores for the sum of two indicators borrower, company ABC, and a secured and BizBank use a fiduciary transfer-of- lender, BizBank. title arrangement (or a similar substitute Regulations on nonpossessory security for nonpossessory security interests). interests in movable property In some economies the legal framework for secured transactions will allow only In case B, ABC grants BizBank a 100% case A or case B (not both) to apply. business charge, enterprise charge, Sum of strength of legal rights index (0–12) Both cases examine the same set of fl oating charge or any charge that gives and legal provisions relating to the use BizBank a security interest over ABC’s depth of credit information index of movable collateral. combined movable assets (or as much (0–8) of ABC’s movable assets as possible). Several assumptions about the secured ABC keeps ownership and possession Scope, quality and accessibility of credit borrower (ABC) and lender (BizBank) of the assets. information through credit bureaus and registries are used: ƒ The strength of legal rights index covers ABC is a domestic limited liability Note: Credit bureau coverage and credit registry - functional equivalents to security inter company (or its legal equivalent). coverage are measured but do not count for the ƒ ests in movable assets (such as financial ABC has up to 50 employees. rankings.

103 DOING BUSINESS 2019 96 acknowledge the implementation of documents) and does not perform a leases and sales with retention of title) significant changes. Reforms are divided legal review of the transaction. The only in its first component, to assess how in two types: those that make it easier registry also publicizes functional integrated or unified the economy’s legal to do business and those changes that equivalents to security interests. framework for secured transactions is. ƒ make it more difficult to do business. The The collateral registry has modern strength of legal rights index uses the The strength of legal rights index includes features such as those that allow following criteria to recognize a reform. 10 aspects related to legal rights in collat - - secured creditors (or their represen eral law and 2 aspects in bankruptcy law. tatives) to register, search, amend or All changes in laws and regulations that A score of 1 is assigned for each of the cancel security interests online. ƒ have any impact on the economy’s score following features of the laws: Secured creditors are paid first (for ƒ on the existence of a secured transac - example, before tax claims and The economy has an integrated or tion legal framework which regulates employee claims) when a debtor unified legal framework for secured the creation, publicity and enforcement defaults outside an insolvency transactions that extends to the of nonpossessory security interests and procedure. creation, publicity and enforcement of ƒ their functional equivalents. Each year, four functional equivalents to security Secured creditors are paid first (for - new laws and amendments are evalu interests in movable assets: fiduciary example, before tax claims and ated to see if they facilitate obtaining transfers of title; financial leases; employee claims) when a business credit by small and medium enterprises, assignments or transfers of receiv - is liquidated. ƒ ables; and sales with retention of title. allowing for maximum Secured creditors are subject to exibility in the fl ƒ an automatic stay on enforcement The law allows a business to grant choice of assets which can be used as procedures when a debtor enters a nonpossessory security right in a collateral. Guidelines, model rules, prin - a court-supervised reorganization ciples, recommendations and case law single category of movable assets procedure, but the law protects (such as accounts receivable, tangible are excluded. secured creditors’ rights by providing movable assets and inventory), clear grounds for relief from the without requiring a specific descrip- Reforms impacting the strength of legal automatic stay (for example, if the tion of the collateral. rights index include amendments to ƒ movable property is not used for the or the introduction of a secured trans - The law allows a business to grant reorganization or sale of the business actions act, insolvency code, or civil a nonpossessory security right in as a going concern, or if there is a risk code as well as the establishment or substantially all its movable assets, to its existence) and setting a time modernization of any of the features without requiring a specific descrip- limit for it. of a collateral registry as measured by tion of the collateral. ƒ ƒ the indicators. For example, introducing A security right can be given over The law allows parties to agree in the a law which provides for a collateral collateral agreement that the lender future and after-acquired assets, and registry and actually establishing that may enforce its security right out - extends automatically to the prod collateral registry—which is geographi - ucts, proceeds and replacements of of court; the law allows the assets cally centralized, unified for all types of the original assets. to be sold through public or private ƒ movable assets and for both incorporated auctions and permits the secured All types of debts and obligations can and non-incorporated entities searchable creditor to take the asset in satisfac - be secured between the parties, and by debtor’s name—would represent a tion of the debt. a general description of such debts reform with a 1 point increase and would and obligations is permitted in the therefore be acknowledged in the report. The index ranges from 0 to 12, with collateral agreement and in registra- higher scores indicating that collateral tion documents. ƒ and bankruptcy laws are better designed CREDIT INFORMATION A collateral registry or registration to expand access to credit. institution for security interests The data on the reporting of credit granted over movable property by information are built in two stages. First, incorporated and nonincorporated banking supervision authorities and REFORMS entities is in operation, unified public information sources are surveyed The strength of legal rights index tracks geographically and with an electronic changes related to secured transactions fi rm the presence of a credit to con database indexed by debtors’ names. and insolvency every year. Depending on reporting service provider, such as a ƒ the impact on the data, certain changes credit bureau or credit registry. Second, The collateral registry is a notice- are classified as reforms and listed in the where applicable, a detailed question - based registry—a registry that files reforms in Doing Business summaries of naire on the credit reporting service only a notice of the existence of a 2017/18 section of the report in order to provider’s structure, laws and associated security interest (not the underlying

104 97 DATA NOTES had no borrowing history in the past five web interface, a system-to-system rules is administered to the entity itself. years but for which a lender requested a connection or both). Questionnaire responses are verified ƒ credit report from the bureau in the period through several rounds of follow-up Bureau or registry credit scores are between January 2, 2017, and January communication with respondents at the offered as a value-added service to 1, 2018. The number is expressed as a credit reporting service provider as well as - help banks and other financial insti percentage of the adult population (the by contacting third parties and consulting tutions assess the creditworthiness population age 15 to 64 in 2017 according public sources. The questionnaire data of borrowers. to the World Bank’s World Development are confirmed through teleconference Indicators). A credit bureau is defined as calls or on-site visits. The index ranges from 0 to 8, with higher a private firm or nonprofit organization values indicating the availability of more that maintains a database on the credit - credit information, from either a credit Depth of credit information worthiness of borrowers (individuals or bureau or a credit registry, to facilitate index firms) in the financial system and facili- lending decisions. If the credit bureau The depth of credit information index tates the exchange of credit information or registry is not operational or covers measures rules and practices affecting among creditors. (Many credit bureaus less than 5% of the adult population, the the coverage, scope and accessibility support banking and overall financial score on the depth of credit information of credit information available through supervision activities in practice, though index is 0. either a credit bureau or a credit registry. this is not their primary objective.) Credit investigative bureaus that do not directly In Lithuania, for example, both a credit A score of 1 is assigned for each of the facilitate information exchange among bureau and a credit registry operate and following eight features of the credit banks and other financial institutions are cover more than 5% of the adult popu - bureau or credit registry (or both): ƒ not considered. If no credit bureau oper - lation. Both distribute data on firms and Data on firms and individuals ates, the coverage value is 0.0%. individuals (a score of 1). Although the are distributed. ƒ credit registry does not distribute data on Both positive credit information (for on-time repayments, the credit bureau example, original loan amounts, Credit registry coverage distributes full positive and negative outstanding loan amounts and a Credit registry coverage reports the credit information (a score of 1). While pattern of on-time repayments) and number of individuals and firms listed the credit registry does not distribute negative information (for example, in a credit registry’s database as of data from retailers or utilities, the credit late payments and the number and January 1, 2018, with information on bureau does (a score of 1). Both distribute amount of defaults) are distributed. their borrowing history within the past ƒ at least two years of historical data (a five years, plus the number of individuals Data from retailers or utility compa - score of 1). Both the credit registry and and firms that have had no borrowing nies are distributed in addition to data the credit bureau distribute data on loan history in the past five years but for from financial institutions. ƒ amounts below 1% of income per capita which a lender requested a credit report At least two years of historical data (a score of 1). Borrowers have the right to from the registry in the period between are distributed. Credit bureaus and access their data in both the credit bureau January 2, 2017, and January 1, 2018. The registries that erase data on defaults and the credit registry free of charge once number is expressed as a percentage as soon as they are repaid or distribute a year (a score of 1). Both entities provide - of the adult population (the popula negative information more than 10 data users access to databases through tion age 15 to 64 in 2017 according to years after defaults are repaid receive a web interface (a score of 1). Although the World Bank’s World Development a score of 0 for this component. ƒ the credit registry does not provide credit Indicators). A credit registry is defined Data on loan amounts below 1% of scores, the credit bureau does (a score of as a database managed by the public income per capita are distributed. ƒ 1). Adding these numbers gives Lithuania sector, usually by the central bank or the By law, borrowers have the right to - a score of 8 on the depth of credit infor superintendent of banks, that collects access their data in the largest credit mation index. information on the creditworthiness bureau or registry in the economy. of borrowers (individuals or firms) in Credit bureaus and registries that the financial system and facilitates the charge more than 1% of income Credit bureau coverage exchange of credit information among per capita for borrowers to inspect Credit bureau coverage reports the banks and other regulated financial their data receive a score of 0 for number of individuals and firms listed in institutions (while their primary objec- this component. a credit bureau’s database as of January 1, ƒ tive is to assist banking supervision). If 2018, with information on their borrowing Banks and other financial institu- no credit registry operates, the coverage history within the past five years, plus the tions have online access to the credit value is 0.0%. number of individuals and firms that have information (for example, through a

105 98 DOING BUSINESS 2019 PROTECTION OF REFORMS or registry is not operational or covers less than 5% of the adult population, SHAREHOLDERS FROM The depth of credit information index - the score on the depth of credit infor tracks changes related to the coverage, CONFLICTS OF INTEREST mation index is 0. The impact of the - scope and accessibility of credit infor ict of interest regula - The extent of con fl reform will depend on the characteris- mation available through either a credit tion index measures the protection of tics of the economy’s credit reporting bureau or a credit registry every year. shareholders against directors’ misuse system as it relates to the eight features Depending on the impact on the data, of corporate assets for personal gain of the index. Expanded coverage that certain changes are classified as reforms by distinguishing three dimensions does not reach 5% of the adult popu- and listed in the summaries of Doing icts of of regulation that address con fl lation is not classified as a reform, but reforms in 2017/18 section of the Business interest: transparency of related-party - report to acknowledge the implementa transactions (extent of disclosure fl the impact is still re ected in the most tion of significant changes. Reforms are index), shareholders’ ability to sue and up-to-date statistics. divided into two types: those that make it hold directors liable for self-dealing easier to do business and those changes (extent of director liability index) and Third, occasionally the credit informa - that make it more difficult to do business. access to evidence and allocation of tion index will acknowledge legislative The credit information index uses three - legal expenses in shareholder litiga changes with no current impact on the criteria to recognize a reform. tion (ease of shareholder suits index). - data as reforms. This option is typi To make the data comparable across cally reserved to legislative changes First, all changes in laws, regulations economies, several assumptions about of exceptional magnitude, such as and practices that have any impact on the business and the transaction are the introduction of laws allowing the - the economy’s score on the credit infor used (figure 8.12). operation of credit bureaus or laws on mation index are classified as reforms. personal data protection. Examples of reforms impacting the Assumptions about the business index include measures to distribute The data details on getting credit can be The business (Buyer): ƒ positive credit data in addition to nega - found for each economy at http://www Is a publicly traded corporation listed tive data, the distribution of credit data .doingbusiness.org. The initial methodology on the economy’s most important from utilities or retailers or the introduc- was developed by Djankov, McLiesh and stock exchange. If there are fewer than tion of credit scores as a value-added Shleifer (2007) and is adopted here with 10 listed companies or if there is no service. Any change that improves the minor changes. stock exchange in the economy, it is score of a given economy in any of the assumed that Buyer is a large private - eight features of the index is consid company with multiple shareholders. ƒ ered a reform. Some reforms can have Has a board of directors and a PROTECTING MINORITY an impact in more than one feature. chief executive officer (CEO) who INVESTORS For example, the introduction of a new may legally act on behalf of Buyer credit bureau covering more than 5% where permitted, even if this is not Doing Business measures the protection of the adult population that distributes specifically required by law. icts of of minority investors from con fl ƒ information on firms and individuals, as interest through one set of indicators and Has a supervisory board in econo- well as positive and negative data and mies with a two-tier board system on shareholders’ rights in corporate gover - provides online access to data users, which Mr. James appointed 60% of nance through another (table 8.10). represents a 3-point increase in the the shareholder-elected members. - The data come from a question ƒ index. In contrast, the introduction of naire administered to corporate and Has not adopted bylaws or articles legislation that guarantees borrowers’ securities lawyers and are based on of association that go beyond the rights to access their data in the largest securities regulations, company laws, minimum requirements. Does not credit bureau or registry in the economy civil procedure codes and court rules of follow codes, principles, recom- represents a reform with a 1-point evidence. The ranking of economies on mendations or guidelines that are increase in the index. - the strength of minority investor protec not mandatory. ƒ tions is determined by sorting their Is a manufacturing company with its Second, changes that increase the scores for protecting minority investors. own distribution network. coverage of the largest credit bureau or These scores are the simple average registry in an economy above 5% of the ict fl of the scores for the extent of con Assumptions about the adult population may also be classified transaction of interest regulation index and the ƒ as reforms. According to the getting extent of shareholder governance index Mr. James owns 60% of Buyer, sits credit methodology, if the credit bureau (figure 8.11). on Buyer’s board of directors and

106 99 DATA NOTES ƒ The transaction causes damages to What do the protecting minority investors indicators measure? TABLE 8.10 Buyer. Shareholders sue Mr. James Extent of disclosure index (0–10) Extent of shareholder rights index (0–10) and the executives and directors that Shareholders’ rights and role in major corporate Review and approval requirements for related-party approved the transaction. transactions decisions Internal, immediate and periodic disclosure Extent of disclosure index requirements for related-party transactions The extent of disclosure index has Extent of ownership and control index (0–10) Extent of director liability index (0–10) five components: Governance safeguards protecting shareholders Minority shareholders’ ability to sue and hold ƒ Which corporate body can provide from undue board control and entrenchment interested directors liable for prejudicial related- party transactions legally sufficient approval for the transaction. A score of 0 is assigned Available legal remedies (damages, disgorgement of profits, disqualification, rescission of if it is the CEO or the managing transactions) director alone; 1 if the board of Extent of corporate transparency index (0–10) Ease of shareholder suits index (0–10) directors, the supervisory board Corporate transparency on significant owners, Access to internal corporate documents or shareholders must vote and Mr. executive compensation, annual meetings and Evidence obtainable during trial audits James is permitted to vote; 2 if the Allocation of legal expenses board of directors or the supervisory board must vote and Mr. James is Extent of shareholder governance index Extent of conflict of interest regulation index (0–10) (0–10) not permitted to vote; 3 if share- Simple average of the extent of shareholder rights, Simple average of the extent of disclosure, extent holders must vote and Mr. James is extent of ownership and control and extent of of director liability and ease of shareholder suits not permitted to vote. corporate transparency indices indices ƒ - Whether an external body (an inde Strength of minority investor protection index (0–10) pendent auditor, for example) must Simple average of the extent of conflict of interest regulation and extent of shareholder governance indices review the transaction before it takes place. A score of 0 is assigned if no; 1 if yes. to 10% of Buyer’s assets and is higher elected two directors to Buyer’s ƒ than the market value. five-member board. Whether disclosure by Mr. James to ƒ ƒ the board of directors or the supervi- Mr. James also owns 90% of Seller, The proposed transaction is part sory board is required. A score of 0 is a company that operates a chain of of the company’s principal activity assigned if no disclosure is required; 1 retail hardware stores. Seller recently and is not outside the authority of if a general disclosure of the existence closed a large number of its stores. the company. ƒ ƒ Buyer enters into the transaction. All Mr. James proposes that Buyer ict of interest is required fl of a con required approvals are obtained, and eet of - fl purchase Seller’s unused without any specifics; 2 if full disclo all required disclosures made—that is, sure of all material facts relating to trucks to expand Buyer’s distribution the transaction was not entered into Mr. James’s interest in the Buyer- of its food products, a proposal to fraudulently. Seller transaction is required. which Buyer agrees. The price is equal FIGURE 8.12 How well are minority shareholders protected from conflicts of interest? FIGURE 8.11 Protecting minority investors: shareholders’ rights in conflicts of interest and corporate governance Rankings are based on scores for two indicators Extent of disclosure Mr. James t i Disclosure and approval requirements u s w a L 90% 60% ownership, ownership, Extent of director liability sits on board sits on board Ability to sue directors for damages of directors of directors 50% 50% Extent of Ease of shareholder suits Extent of Company A Company B conflict of Access by shareholders to documents shareholder (seller) (buyer) interest governance plus other evidence for trial Transaction regulation index involving index Minority conflict of interest shareholders

107 DOING BUSINESS 2019 100 ƒ ƒ The index ranges from 0 to 10, with Whether a shareholder plaintiff can Whether immediate disclosure of the higher values indicating greater liability of hold Mr. James liable for the damage transaction to the public, the regulator 3 - directors. In Austria, for example, deriva or the shareholders is required. the Buyer-Seller transaction causes to A tive suits are available for shareholders the company. A score of 0 is assigned score of 0 is assigned if no disclosure holding 10% of share capital (a score of if Mr. James cannot be held liable or is required; 1 if disclosure on the terms 1). Assuming that the prejudicial transac- can be held liable only for fraud, bad of the transaction is required but not tion was duly approved and disclosed, in faith or gross negligence; 1 if Mr. James on Mr. James’s con fl ict of interest; 2 if order to hold Mr. James liable a plaintiff uenced fl can be held liable only if he in disclosure on both the terms and Mr. ict of interest is required. must prove that Mr. James in the approval of the transaction or was fl uenced James’s con fl ƒ negligent; 2 if Mr. James can be held Whether disclosure in periodic the approving body or acted negligently liable when the transaction is unfair or - (a score of 1). To hold the other direc lings (for example, annual reports) fi prejudicial to shareholders. tors liable, a plaintiff must prove that is required. A score of 0 is assigned ƒ they acted negligently (a score of 1). If if no disclosure on the transaction is Whether a shareholder plaintiff can Mr. James is found liable, he must pay required; 1 if disclosure on the terms hold other executives and directors damages (a score of 1) and is required of the transaction is required but not (the CEO, members of the board of to disgorge his profits (a score of 1). Mr. - directors or members of the supervi on Mr. James’s con fl ict of interest; 2 if sory board) liable for the damage the ed (a fi James, however, cannot be disquali disclosure on both the terms and Mr. transaction causes to the company. A ict of interest is required. score of 0). The prejudicial transaction fl James’s con score of 0 is assigned if they cannot be cannot be voided (a score of 0). Adding held liable or can be held liable only for these numbers gives Austria a score of 5 The index ranges from 0 to 10, with higher fraud, bad faith or gross negligence; 1 if on the extent of director liability index. values indicating greater disclosure. In they can be held liable for negligence; - Poland, for example, the board of direc 2 if they can be held liable when the tors must approve the transaction and Ease of shareholder suits index transaction is unfair or prejudicial Mr. James is not allowed to vote (a score The ease of shareholder suits index has to shareholders. of 2). Poland does not require an external six components: ƒ ƒ body to review the transaction (a score Whether Mr. James pays damages for Whether shareholders owning 10% of 0). Before the transaction Mr. James of the company’s share capital have the harm caused to the company upon the right to inspect the Buyer-Seller a successful claim by the shareholder must disclose his con ict of interest to fl transaction documents before filing a plaintiff. A score of 0 is assigned if no; the other directors, but he is not required suit. Alternatively, whether they can 1 if yes. to provide specific information about it (a ƒ request that a government inspector score of 1). Buyer is required to disclose Whether Mr. James repays profits investigate the Buyer-Seller transac - immediately all information affecting made from the transaction upon a tion without filing a suit. A score of 0 successful claim by the shareholder fl the stock price, including the con ict of is assigned if no; 1 if yes. plaintiff. A score of 0 is assigned if no; interest (a score of 2). In its annual report ƒ 1 if yes. Buyer must also disclose the terms of the What range of documents is available ƒ transaction and Mr. James’s ownership in to the shareholder plaintiff from the Whether Mr. James is disqualified Buyer and Seller (a score of 2). Adding defendant and witnesses during trial. upon a successful claim by the these numbers gives Poland a score of 7 A score of 1 is assigned for each of the shareholder plaintiff. A score of 0 is on the extent of disclosure index. - following types of documents avail assigned if no; 1 if he is disqualified— able: information that the defendant that is, barred from representing or has indicated she/he intends to rely holding a managerial position in any Extent of director liability index on for her/his defense; information company for a year or more. The extent of director liability index has 4 ƒ that directly proves specific facts in seven components: - Whether a court can void the trans ƒ the plaintiff’s claim; and any informa- action upon a successful claim by a Whether shareholders can sue tion relevant to the subject matter of shareholder plaintiff. A score of 0 is directly or derivatively for the the claim. assigned if rescission is unavailable or damage the transaction causes to the ƒ is available only in case of fraud, bad company. A score of 0 is assigned if Whether the plaintiff can obtain cate - - faith or gross negligence; 1 if rescis suits are unavailable or are available gories of relevant documents from the sion is available when the transaction only for shareholders holding more defendant without identifying each is oppressive or prejudicial to the than 10% of the company’s share document specifically. A score of 0 is other shareholders; 2 if rescission capital; 1 if direct or derivative suits assigned if no; 1 if yes. ƒ is available when the transaction is are available for shareholders holding Whether the plaintiff can directly unfair or entails a conflict of interest. 10% or less of share capital. examine the defendant and

108 101 DATA NOTES Company (Ltd), the Limited Liability Extent of conflict of interest witnesses during trial. A score of 0 Company (LLC), the Sociedad de is assigned if no; 1 if yes, with prior regulation index Responsabilidad Limitada (SRL), approval of the questions by the The extent of con fl ict of interest regula - the Gesellschaft mit beschränkter judge or if the judge can set aside tion index is the average of the extent of Haftung (GmbH) and the Société à questions for any reason; 2 if yes, disclosure index, the extent of director Responsabilité Limitée (SARL). without prior approval. liability index and the ease of shareholder ƒ suits index. The index ranges from 0 to Whether the standard of proof for 10, with higher values indicating stronger civil suits is lower than that for a Extent of shareholder rights criminal case. A score of 0 is assigned icts of interest. fl regulation of con index if no; 1 if yes. For each component of the extent of ƒ shareholder rights index, a score of 0 is Whether shareholder plaintiffs can SHAREHOLDERS’ RIGHTS IN assigned if the answer is no; 1 if yes. The recover their legal expenses from the CORPORATE GOVERNANCE index has 10 components: company. A score of 0 is assigned if The extent of shareholder governance ƒ no; 1 if plaintiffs can recover their legal index measures shareholders’ rights in Whether the sale of 51% of Buyer’s expenses from the company upon corporate governance by distinguishing assets requires shareholder approval. ƒ a successful outcome of their legal three dimensions of good gover - Whether shareholders representing action; 2 if plaintiffs can recover their nance: shareholders’ rights and role in 10% of Buyer’s share capital have legal expenses from the company major corporate decisions (extent of the right to call for a meeting of regardless of the outcome of their shareholder rights index), governance shareholders. ƒ legal action. safeguards protecting shareholders from Whether Buyer must obtain its share- undue board control and entrenchment holders’ approval every time it issues (extent of ownership and control index) The index ranges from 0 to 10, with new shares. ƒ and transparency on ownership stakes, higher values indicating greater powers Whether shareholders automatically compensation, audits and financial pros - of shareholders to challenge the receive preemption rights when Buyer pects (extent of corporate transparency transaction. In Croatia, for example, issues new shares. ƒ index). The index also measures whether a shareholder holding 10% of Buyer’s Whether shareholders elect and a subset of relevant rights and safeguards shares can request that a government dismiss the external auditor. ƒ are available in limited companies. inspector review suspected misman- Whether changes to the rights of agement by Mr. James and the CEO a class of shares are only possible if without filing suit in court (a score the holders of the affected shares Assumptions about the business ƒ - of 1). The plaintiff can access docu approve. The business (Buyer) is a publicly ƒ ments that the defendant intends to - traded corporation listed on the econ Assuming that Buyer is a limited rely on for his defense (a score of 1). The omy’s most important stock exchange. company, whether the sale of 51% plaintiff must specifically identify the If there is no stock exchange in the of Buyer’s assets requires member documents being sought (for example, economy, it is assumed that Buyer is approval. ƒ the Buyer-Seller purchase agreement a large private company with multiple Assuming that Buyer is a limited of July 15, 2015) and cannot simply shareholders. Examples of company company, whether members repre- request categories (for example, all forms that can be listed and have a senting 10% have the right to call for a documents related to the transaction) large number of shareholders include: meeting of members. ƒ (a score of 0). The plaintiff can examine the Joint Stock Company (JSC), the Assuming that Buyer is a limited the defendant and witnesses during Public Limited Company (PLC), the company, whether all or almost all trial, without prior approval of the C Corporation, the Societas Europaea members must consent to add a new questions by the court (a score of 2). (SE), the Aktiengesellschaft (AG) member. ƒ The standard of proof for civil suits is and the Société Anonyme/Sociedad Assuming that Buyer is a limited the preponderance of the evidence, Anónima (SA). company, whether members must ƒ while the standard for a criminal case first offer their interest to the existing - In 10 of the questions, the assess is beyond a reasonable doubt (a score members before they can sell to ment is made “assuming that Buyer of 1). The plaintiff can recover legal non-members. is a limited company.” Buyer is expenses from the company only upon instead a limited liability company a successful outcome of the legal action or its functional equivalent: a distinct Extent of ownership and control (a score of 1). Adding these numbers and simpler company form that index gives Croatia a score of 6 on the ease of cannot offer shares to the public. For each component of the extent of shareholder suits index. Examples include the Private Limited ownership and control index, a score of

109 DOING BUSINESS 2019 102 ƒ investor protection are classified as a Whether shareholders representing 0 is assigned if the answer is no; 1 if yes. reform. The change must be mandatory, The index has 10 components: 5% of Buyer’s share capital can put ƒ meaning that failure to comply allows items on the general meeting agenda. Whether the same individual cannot ƒ shareholders to sue in court or for sanc - be appointed CEO and chairperson of Whether Buyer’s annual financial tions to be leveled by a regulatory body the board of directors. statements must be audited by an ƒ such as the company registrar, the external auditor. Whether the board of directors must ƒ capital market authority or the securities include independent nonexecutive Whether Buyer must disclose its and exchange commission. Guidelines, board members. audit reports to the public. ƒ ƒ model rules, principles, recommenda- Assuming that Buyer is a limited Whether shareholder can remove tions and duties to explain in case of company, whether members must members of the board of directors non-compliance are excluded. When a without cause before the end of their meet at least once a year. ƒ change exclusively affects companies term. Assuming that Buyer is a limited ƒ that are listed on the stock exchange, company, whether members repre- Whether the board of directors must it will be captured only if the stock senting 5% can put items on the have an audit committee. ƒ exchange has 10 or more equity listings. meeting agenda. Whether a potential acquirer must ƒ If the economy has no stock exchange or make a tender offer to all shareholders Assuming that Buyer is a limited a stock exchange with less than 10 equity upon acquiring 50% of Buyer. company larger than a threshold set ƒ listings, the change is taken into account by law, whether its annual financial Whether Buyer must pay declared only if it affects companies irrespective of statements must be audited by an dividends within a maximum period whether their shares are listed or not. external auditor. set by law. ƒ Whether a subsidiary cannot acquire Reforms impacting the protecting shares issued by its parent company. Extent of shareholder ƒ minority investors indicator set include Assuming that Buyer is a limited governance index amendments to or the introduction company, whether it must have a The extent of shareholder governance of a new companies act, commercial mechanism to resolve disagreements index is the average of the extent of code, securities regulation, code of civil among members. shareholder rights index, the extent of ƒ procedure, court rules, law, decree, order, ownership and control index and the Assuming that Buyer is a limited supreme court decision, or stock exchange extent of corporate transparency index. company, whether a potential acquirer listing rule. The changes must affect the The index ranges from 0 to 10, with must make a tender offer to all rights and duties of issuers, company higher values indicating stronger rights members upon acquiring 50% of Buyer. ƒ managers, directors and shareholders of shareholders in corporate governance. Assuming that Buyer is a limited - in connection with related-party trans company, whether Buyer must actions or, more generally, the aspects distribute profits within a maximum REFORMS of corporate governance measured by period set by law. The protecting minority investors indi - the indicators. For example, in a given cator set captures changes related to the economy, related-party transactions have regulation of related-party transactions as Extent of corporate to be approved by the board of directors well as corporate governance every year. transparency index including board members who have a Depending on the impact on the data, For each component of the extent of personal financial interest in seeing the - certain changes are listed in the summa corporate transparency index, a score of - transaction succeed. This economy intro reforms in 2017/18 Doing Business ries of 0 is assigned if the answer is no; 1 if yes. duces a law requiring that related-party section of the report in order to acknowl- The index has 10 components: ƒ transactions be approved instead by a edge the implementation of significant Whether Buyer must disclose direct general meeting of shareholders and that changes. They are divided into two types: and indirect beneficial ownership reforms that make it easier to do business stakes representing 5%. fl excludes shareholders with con icting ƒ and changes that make it more difficult interests from participating in the vote. Whether Buyer must disclose to do business. The protecting minority information about board members’ This law would result in a 2-point increase investors indicator set uses the following on the corresponding question in the - primary employment and director criteria to recognize a reform. ships in other companies. extent of disclosure index and would ƒ therefore be acknowledged in the report. Whether Buyer must disclose the All legislative and regulatory changes compensation of individual managers. ƒ that impact the score assigned to a given The data details on protecting minority Whether a detailed notice of general economy on any of the 48 questions investors can be found for each economy at meeting must be sent 21 calendar comprising the six indicators on minority http://www.doingbusiness.org. The initial days before the meeting.

110 103 DATA NOTES accounts, taxes include only compulsory, - Business 2015 , which is 26.1%. All econo methodology was developed by Djankov, La unrequited payments to general govern - mies with a total tax and contribution rate Porta and others (2008). ment. Doing Business departs from this below this threshold receive the same definition because it measures imposed score as the economy at the threshold. charges that affect business accounts, PAYING TAXES not government accounts. One main The threshold is not based on any difference relates to labor contributions. economic theory of an “optimal tax rate” s records the taxes and Doing Busines Doing Business The measure includes that minimizes distortions or maximizes mandatory contributions that a medium- government-mandated contributions efficiency in an economy’s overall tax size company must pay in a given year as paid by the employer to a requited system. Instead, it is mainly empirical in well as measures of the administrative - private pension fund or workers’ insur nature, set at the lower end of the distri - burden of paying taxes and contributions ance fund. It includes, for example, bution of tax rates levied on medium-size and complying with postfiling procedures Australia’s compulsory superannuation enterprises in the manufacturing sector (figure 8.13). The project was developed guarantee and workers’ compensation as observed through the paying taxes and implemented in cooperation with 5 insurance. For the purpose of calcu - indicators. This reduces the bias in the PwC. Taxes and contributions measured lating the total tax and contribution rate total tax and contribution rate indicator include the profit or corporate income tax, (defined below), only taxes borne are toward economies that do not need to social contributions and labor taxes paid included. For example, value added taxes levy significant taxes on companies like by the employer, property taxes, property (VAT) are generally excluded (provided the Doing Business standardized case transfer taxes, dividend tax, capital gains that they are not irrecoverable) because study company because they raise public tax, financial transactions tax, waste they do not affect the accounting profits revenue in other ways—for example, collection taxes, vehicle and road taxes, of the business—that is, they are not through taxes on foreign companies, and any other small taxes or fees. through taxes on sectors other than fl re ected in the income statement. They manufacturing or from natural resources The ranking of economies on the ease are, however, included for the purpose (all of which are outside the scope of of paying taxes is determined by sorting of the compliance measures (time and the methodology). their scores for paying taxes. These payments), as they add to the burden of scores are the simple average of the complying with the tax system. measures all taxes and Doing Business - scores for each of the component indica contributions that are government tors (figure 8.14), with a threshold and a Doing Business uses a case scenario to mandated (at any level—federal, state nonlinear transformation applied to one measure the taxes and contributions - or local) and that apply to the stan of the component indicators, the total paid by a standardized business and the 6 dardized business and have an impact tax and contribution rate. - complexity of an economy’s tax compli The threshold in its financial statements. In doing so, ance system. This case scenario uses a - is defined as the total tax and contribu - Doing Business goes beyond the tradi - set of financial statements and assump tion rate at the 15th percentile of the tional definition of a tax. As defined for tions about the transactions made over overall distribution for all years included the purposes of government national the course of the year. In each economy in the analysis up to and including Doing FIGURE 8.13 What are the time, total tax and contribution rate and number of payments necessary for a local medium-size company to pay all taxes and how efficient is it for a local medium-size company to comply with postfiling processes? Postfiling index Time Total tax and contribution rate Hours per year To prepare, file and pay value added or sales tax, profit tax and labor taxes and % of profit contributions before all taxes Number of payments Efficiency of postfiling processes (per year)

111 DOING BUSINESS 2019 104 or others. Therefore, even when limited liability company in the Paying taxes: tax FIGURE 8.14 such benefits are frequent, they are economy, the limited liability form compliance for a local manufacturing not added to or removed from the most common among domestic firms company taxable gross salaries to arrive at the is chosen. The most common form is Rankings are based on scores labor tax or contribution calculation. reported by incorporation lawyers or for four indicators ƒ the statistical office. Has a turnover of 1,050 times income Number of hours per Firm tax liability as ƒ per capita. Started operations on January 1, 2016. year to prepare, file % of profits before ƒ At that time the company purchased Makes a loss in the first year of returns and pay taxes all taxes borne all the assets shown in its balance operation. ƒ 25% sheet and hired all its workers. Has a gross margin (pretax) of 20% Total tax and ƒ (that is, sales are 120% of the cost of Operates in the economy’s largest 25% contribution Time rate goods sold). business city. For 11 economies the 25% 25% ƒ Postfiling data are also collected for the second Distributes 50% of its net profits as Payments index largest business city (table 8A.1). dividends to the owners at the end of ƒ the second year. Is 100% domestically owned and ƒ has fi ve owners, all of whom are Sells one of its plots of land at a profit Number of Score on: number of hours tax payments to comply with VAT refund, natural persons. at the beginning of the second year. per year number of weeks to obtain ƒ ƒ Is subject to a series of detailed At the end of 2016, has a start-up VAT refund, number of hours to comply with assumptions on expenses and trans- capital of 102 times income per capita. corporate income tax ƒ actions to further standardize the Performs general industrial or correction, number of weeks to complete a corporate case. For example, the owner who commercial activities. Specifically, it income tax correction is also a manager spends 10% of produces ceramic owerpots and sells fl income per capita on traveling for them at retail. It does not participate All economies below the threshold receive the Note: the company (20% of this owner’s in foreign trade (no import or export) same score in the total tax and contribution rate component as the economies at the threshold. If both expenses are purely private, 20% are and does not handle products subject VAT and corporate income tax apply, the postfiling for entertaining customers, and 60% to a special tax regime, for example, index is the simple average of the scores for each of the four components: time to comply with VAT refund, time are for business travel). All financial liquor or tobacco. to obtain VAT refund, time to comply with corporate ƒ statement variables are proportional At the beginning of 2017, owns two income tax correction and time to complete a corporate income tax correction. If only VAT or corporate income to 2012 income per capita (this is an plots of land, one building, machinery, tax applies, the postfiling index is the simple average of the scores for only the two components pertaining to update from Doing Business 2013 and office equipment, computers and one the applicable tax. If neither VAT nor corporate income previous years’ reports, where the truck and leases one truck. tax applies, the postfiling index is not included in the ranking of the ease of paying taxes. ƒ variables were proportional to 2005 Does not qualify for investment income per capita). For some econo- incentives or any bene fi ts apart from mies a multiple of two or three times tax experts from a number of different those related to the age or size of income per capita has been used to firms (in many economies these include the company. ƒ estimate the financial statement vari - PwC) compute the taxes and mandatory Has 60 employees—4 managers, 7 ables. contributions due in their jurisdiction 8 assistants and 48 workers. All The 2012 income per capita based on the standardized case study are nationals, and one manager is was not sufficient to bring the salaries facts. Information is also compiled on also an owner. The company pays of all the case study employees up to the frequency of filing and payments, the for additional medical insurance the minimum wage thresholds that time taken to comply with tax laws in an for employees (not mandated by exist in these economies. economy, the time taken to request and t. fi any law) as an additional bene process a VAT refund claim and the time In addition, in some economies Assumptions about the taxes taken to comply with and complete a reimbursable business travel and and contributions ƒ corporate income tax correction. To make client entertainment expenses are All the taxes and contributions the data comparable across economies, considered fringe benefits. When recorded are those paid in the second several assumptions about the business applicable, it is assumed that the year of operation (calendar year and the taxes and contributions are used. company pays the fringe benefit tax 2017). A tax or contribution is consid- on this expense or that the benefit ered distinct if it has a different name becomes taxable income for the or is collected by a different agency. Assumptions about the business employee. The case study assumes Taxes and contributions with the The business: ƒ no additional salary additions for same name and agency, but charged Is a limited liability, taxable company. meals, transportation, education at different rates depending on the If there is more than one type of

112 105 DATA NOTES these contributions would be included in business, are counted as the same tax What do the paying taxes TABLE 8.11 the number of payments. or contribution. indicators measure? ƒ The number of times the company Tax payments for a manufacturing company pays taxes and contributions in a Time in 2017 (number per year adjusted for electronic and joint filing and payment) year is the number of different taxes Time is recorded in hours per year. The Total number of taxes and contributions paid, or contributions multiplied by the indicator measures the time taken to including consumption taxes (value added tax, frequency of payment (or with - prepare, file and pay three major types sales tax or goods and service tax) holding) for each tax. The frequency of of taxes and contributions: the corporate Method and frequency of filing and payment payment includes advance payments income tax, value added or sales tax, and Time required to comply with three major (or withholding) as well as regular labor taxes, including payroll taxes and taxes (hours per year) payments (or withholding). social contributions. Preparation time Collecting information and computing the tax includes the time to collect all information payable necessary to compute the tax payable and Tax payments Completing tax return forms, filing with proper agencies to calculate the amount payable. If sepa - The tax payments indicator reflects the rate accounting books must be kept for - total number of taxes and contribu Arranging payment or withholding tax purposes—or separate calculations tions paid, the method of payment, the Preparing separate mandatory tax accounting books, if required made—the time associated with these frequency of payment, the frequency processes is included. This extra time is Total tax and contribution rate (% of profit of fi ling and the number of agencies before all taxes) included only if the regular accounting involved for the standardized case Profit or corporate income tax work is not enough to fulfill the tax study company during the second year Social contributions and labor taxes paid by the accounting requirements. Filing time of operation (table 8.11). It includes employer includes the time to complete all neces - taxes withheld by the company, such Property and property transfer taxes sary tax return forms and file the relevant as sales tax, VAT and employee-borne Dividend, capital gains and financial transactions returns at the tax authority. Payment time labor taxes. These taxes are tradition - taxes considers the hours needed to make the ally collected by the company from the Waste collection, vehicle, road and other taxes payment online or in person. Where taxes consumer or employee on behalf of Postfiling index and contributions are paid in person, the the tax agencies. Although they do not time includes delays while waiting. affect the income statements of the Compliance time of a VAT refund process company, they add to the administra- Time to receive a VAT refund tive burden of complying with the tax Total tax and contribution rate Compliance time of correcting an error in the system and so are included in the tax The total tax and contribution rate corporate income tax return including compliance with an audit process if applicable payments measure. measures the amount of taxes and Time to complete a corporate income tax correction mandatory contributions borne by the The number of payments takes into business in the second year of opera - even if paid to a private entity such as a tion, expressed as a share of commercial - ling. Where full elec account electronic fi requited pension fund), property taxes, Doing Business 2019 profit. reports tronic fi ling and payment is allowed and turnover taxes and other taxes (such as the total tax and contribution rate for it is used by the majority of medium-size municipal fees and vehicle taxes). Fuel calendar year 2017. The total amount businesses, the tax is counted as paid taxes are no longer included in the total of taxes and contributions borne is once a year even if lings and payments fi tax and contribution rate because of the sum of all the different taxes and are more frequent. For payments made the difficulty of computing these taxes contributions payable after accounting through third parties, such as tax on in a consistent way for all economies - for allowable deductions and exemp interest paid by a fi nancial institution or covered. The fuel tax amounts are in tions. The taxes withheld (such as fuel tax paid by a fuel distributor, only one most cases very small, and measuring personal income tax) or collected by payment is included even if payments are these amounts is often complicated the company and remitted to the tax more frequent. because they depend on fuel consump- authorities (such as VAT, sales tax or tion. Fuel taxes continue to be counted goods and service tax) but not borne - Where two or more taxes or contribu in the number of payments. by the company are excluded. The tions are filed for and paid jointly using the taxes included can be divided into five same form, each of these joint payments The total tax and contribution rate is categories: profit or corporate income is counted once. For example, if manda- designed to provide a comprehensive tax, social contributions and labor taxes tory health insurance contributions and measure of the cost of all the taxes paid by the employer (for which all mandatory pension contributions are a business bears. It differs from the mandatory contributions are included, filed for and paid together, only one of

113 DOING BUSINESS 2019 106 Commercial profit amounts to 59.4 times when applicable (see details below). statutory tax rate, which merely provides income per capita. the factor to be applied to the tax base. The de fi nition of a tax audit includes any - In computing the total tax and contribu interaction between the taxpayer and The methodology for calculating the tion rate, the actual tax or contribution the tax authority post fi ling of the tax total tax and contribution rate is broadly payable is divided by commercial profit. return and payment of the tax liability consistent with the Total Tax Contribution Data for Iraq are provided as an example due, including informal inquiries, formal framework developed by PwC and the (table 8.12). inquiries and formal tax audits to verify calculation within this framework for whether such taxpayers have correctly - taxes borne. But while the work under Commercial profit is essentially net profit assessed and reported their tax liability taken by PwC is usually based on data before all taxes and contributions borne. fi lled other obligations. and ful received from the largest companies in It differs from the conventional profit Doing Business focuses on the economy, before tax, reported in financial state - The indicators are based on expanded a case study for a standardized medium- ments. In computing profit before tax, case study assumptions. size company. many of the taxes borne by a firm are deductible. In computing commercial Assumptions about the VAT profit, these taxes are not deductible. refund process Postfiling index ƒ Commercial profit therefore presents a In June 2017, TaxpayerCo. makes a The postfiling index is based on four clear picture of the actual profit of a busi - large capital purchase: one additional components—time to comply with VAT ness before any of the taxes it bears in the refund, time to obtain VAT refund, time machine for manufacturing pots. ƒ course of the fiscal year. to comply with a corporate income The value of the machine is 65 times tax correction and time to complete a income per capita of the economy. ƒ Commercial profit is computed as corporate income tax correction. If both Sales are equally spread per month sales minus cost of goods sold, minus VAT and corporate income tax apply, the (that is, 1,050 times income per gross salaries, minus administrative postfiling index is the simple average of capita divided by 12). ƒ expenses, minus other expenses, minus the scores for each of the four compo - Cost of goods sold are equally provisions, plus capital gains (from the nents. If only VAT or corporate income expensed per month (that is, 875 property sale) minus interest expense, tax applies, the postfiling index is the times income per capita divided plus interest income and minus commer - simple average of the scores for only the by 12). ƒ cial depreciation. To compute the two components pertaining to the appli- The seller of the machinery is regis - commercial depreciation, a straight-line cable tax. If neither VAT nor corporate tered for VAT. ƒ depreciation method is applied, with income tax applies, the postfiling index is Excess input VAT incurred in June the following rates: 0% for the land, 5% not included in the ranking of the ease of will be fully recovered after four for the building, 10% for the machinery, paying taxes. consecutive months if the VAT rate 33% for the computers, 20% for the is the same for inputs, sales and the office equipment, 20% for the truck and The four components include the time machine and the tax reporting period 10% for business development expenses. to comply with and complete a tax audit is every month. Computing the total tax and contribution rate for Iraq TABLE 8.12 Total tax and Actual tax payable Commercial profit* c a = r x b b Taxable base Statutory rate contribution rate (ID) (ID) (ID) t = a/c (%) r (%) Corporate income tax (taxable income) 452,461,855 67,869,278 453,188,210 14.98 15 Employer paid—Social security 13.54 12 511,191,307 61,342,957 453,188,210 contributions (taxable wages) Employee paid—Social security 5.00 511,191,307 Not included contributions (taxable wages) Fixed fee Varies Small amount Small amount Stamp duty on contracts Real Estate Ownership Transfer tax 0–6 Value of property 10,480,197 453,188,210 2.31 Total 139,692,432 30.82 Source: Doing Business database. Note: Commercial profit is assumed to be 59.4 times income per capita. ID is Iraqi dinar. * Profit before all taxes borne.

114 107 DATA NOTES ƒ Input VAT will exceed output VAT in alue of the VAT input tax credit for Albania Computing the v TABLE 8.13 June 2017 (table 8.13). Output VAT VAT rate Input VAT (R x A + R x B) R R x Sales Assumptions about the Sales = ALL 7,479,772.97 20% corporate income tax correction ALL 37,398,864.84 process Capital purchase (A) = 20% ALL 5,556,402.78 ƒ An error in the calculation of the ALL 27,782,013.88 income tax liability (for example, use Raw material expenses (B) = 20% ALL 6,233,144.14 of incorrect tax depreciation rates, ALL 31,165,720.70 or incorrectly treating an expense as tax deductible) leads to an incorrect VAT refund ALL 4,309,773.95 R x A + R x B ) – ( R x Sales ) ( income tax return and consequently an underpayment of corporate Source: Doing Business database. ALL is Albanian lek. Note: income tax. ƒ TaxpayerCo. discovered the error and amount of the VAT refund. There is no for a VAT cash refund due to a capital ed the tax authority voluntarily noti fi additional time for preparing the refund purchase are pooled into additional of the error in the corporate income claim because taxpayers indicate in the review in 50% or more of cases. Time tax return. ƒ online VAT return that they want the includes: time spent by TaxpayerCo. The value of the underpaid income tax outstanding VAT balance to be refunded. on gathering information and liability is 5% of the corporate income Taxpayers must also prepare and have preparing any documentation (infor - tax liability due. ƒ available for review all purchase and sales mation such as receipts, financial TaxpayerCo. submits the corrected invoices for the past three months, a busi - statements, pay stubs) as required information after the deadline for ness explanation of VAT overpayment for by the tax auditor; time spent by submitting the annual tax return, but large purchases or investments, bank TaxpayerCo. on submitting the docu- within the tax assessment period. statements, any missing tax declaration ments requested by the auditor. and a copy of fiscal and VAT certificates. Time to comply with VAT refund Taxpayers spend four hours preparing A total estimate of zero hours is Time is recorded in hours. The indicator these additional documents. These docu - recorded if the process of claiming a has two parts: ƒ ments are submitted electronically at VAT refund is done automatically within The process of claiming a VAT the same time as the submission of the the standard VAT return without the refund. Time includes: time spent VAT return. Taxpayers must also appear need to complete any additional section by TaxpayerCo. on gathering VAT in person at the tax office to explain the or part of the return, no additional docu - information from internal sources, VAT refund claim and the reasons for the ments or tasks are required as a result including time spent on any additional excess input VAT in the month of June. of the input tax credit and, in 50% or analysis of accounting informa - This takes three hours. Additionally, the more of similar cases, the company is tion and calculating the VAT refund claim for a VAT refund would trigger not subjected to an audit. amount; time spent by TaxpayerCo. a full audit at the tax office. Taxpayers on preparing the VAT refund claim; spend 16 hours preparing the docu - An estimate of half an hour is recorded for time spent by TaxpayerCo. preparing ments requested by the auditor including submission of documents if the submis- any additional documents that are purchase and sales invoices, bills, bank sion is done electronically and is a matter needed to substantiate the claim for transactions, records on accounting of minutes. An estimate of zero hours the VAT refund; time spent submitting software, tax returns and contracts. is recorded in the case of a field audit if the VAT refund claim and additional Taxpayers submit the documents to the documents are submitted in person and documents if that submission is done auditor in person at the tax office (two at the taxpayer’s premises. separately from the submission of hours for submission). the standard VAT return; time spent In Kosovo, for example, taxpayers spend making representation at the tax 27 hours complying with the process of office if required; and time spent by Time to obtain VAT refund claiming a VAT refund. Taxpayers request TaxpayerCo. completing any other Time is recorded in weeks. Time measures the VAT refund in the standard VAT mandatory activities or tasks associ- the total waiting time to receive a VAT return. Taxpayers spend two hours gath- ated with the VAT refund (table 8.13). refund from the moment the request ƒ ering information from internal sources has been submitted. If companies with The process of a VAT audit. This is and accounting records to calculate the a request for a VAT cash refund due to captured if companies with a request

115 DOING BUSINESS 2019 108 time to obtain VAT refund. This is the - a capital purchase are pooled into addi completed. Taxpayers wait fi ve weeks for case in Sudan. If an economy has a VAT tional review in 50% or more of cases, the release of the VAT refund payment. In but input tax on a capital purchase is time includes time to start the audit from Albania the taxpayers must carry forward a cost on the business, the economy is the moment of claiming the VAT refund, the VAT refund for three consecutive VAT scored 0 for time to comply with VAT time spent by TaxpayerCo. interacting accounting periods (three months in the refund and time to obtain VAT refund. with the auditor from the moment an case of Albania) before a refund in cash is This is the case in Myanmar. audit begins until there are no further requested. The three months (13 weeks) interactions between TaxpayerCo. and carry forward period is included in the the auditor (including the various rounds total time to receive a VAT refund. The Time to comply with a corporate of interactions between TaxpayerCo. VAT return is filed monthly and thus 0.5 income tax correction and the auditor), time spent waiting for month (2.1 weeks) is included in the total Time is recorded in hours. The indicator the tax auditor to issue the final audit time to receive a VAT refund. has two parts: ƒ decision from the moment TaxpayerCo. The process of notifying the tax has submitted all relevant information If an economy does not have a VAT, the authorities of the error, amending and documents and there are no further economy will not be scored on the two the return and making additional interactions between TaxpayerCo. and indicators for a VAT refund process— payment. Time includes: time spent the auditor and time spent waiting for the time to comply with VAT refund and time by TaxpayerCo. gathering informa- release of the VAT refund payment from to obtain VAT refund. This is the case in tion and preparing the documents Bahrain. If an economy has a VAT and the required to notify the tax authorities; fi nal audit decision has the moment the purchase of a machine is not subject to time spent by TaxpayerCo. in submit - been issued by the auditor. VAT, the economy will not be scored on ting the documents; and time spent time to comply with VAT refund and time by TaxpayerCo. in making the addi - Time also includes an average waiting to obtain VAT refund. This is the case in tional tax payment if the payment is time to submit the refund claim. The Sierra Leone. If an economy has a VAT done separately from the submission average waiting time to submit the that was introduced in calendar year 2017 of the amended corporate income refund claim is half a month if the VAT and there is not sufficient data to assess tax return. refund claim is filed monthly. The average ƒ the refund process, the economy will not waiting time to submit the refund claim The process of complying with a be scored on time to comply with VAT is one month if the VAT refund claim is corporate income tax correction. This refund and time to obtain VAT refund. filed bimonthly. The average waiting time is captured if companies that had a to submit the refund claim is one and case of self-reporting an error in the If an economy has a VAT but the ability a half months if the VAT refund claim corporate income tax return resulting to claim a refund is restricted to specific is filed quarterly. The average waiting in an underpayment of the corporate categories of taxpayers that do not time to submit the refund claim is three income tax due liability were included include the case study company, the months if the VAT refund claim is filed in the pool of companies that were economy is assigned a score of 0 for semi-annually. The average waiting time exposed to additional review in 25% time to comply with VAT refund and to submit the refund claim is six months or more of cases. The threshold used time to obtain VAT refund. In Bolivia, if the VAT refund claim is filed annually. for assessing the corporate income for example, only exporters are eligible tax audit is lower than the threshold to request a VAT refund. As a result, Time includes the mandatory carry used in the case of the VAT cash Bolivia receives a score of 0 for time forward time before a VAT refund in refund. This is because the case study to comply with VAT refund and time cash can be paid. The carry forward time scenario of self-reporting an error in to obtain VAT refund. If an economy is zero if there is no mandatory carry the corporate income tax return and has a VAT and the case study company forward period. resulting in an underpayment of the is eligible to claim a refund but cash tax liability should only be an issue refunds do not occur in practice, the In Albania, for example, it takes 37 weeks - among a small sample of compa economy is assigned a score of 0 for to receive a VAT refund. The request for nies selected for a tax audit. On the time to comply with VAT refund and a VAT refund triggers an audit by the tax contrary to the VAT cash refund, it time to obtain VAT refund. This is authorities. It takes four weeks for the tax is common that a one-time request the case in Central African Republic. authority to start the audit. Taxpayers for a VAT cash refund be exposed If an economy has a VAT but there is spend 8.6 weeks interacting with the to a tax audit. Time includes: time no refund mechanism in place, the auditor and wait four weeks until the final spent by TaxpayerCo. on gathering economy is assigned a score of 0 for assessment is issued. Taxpayers only information and preparing any docu- time to comply with VAT refund and receive the VAT refund after the audit is mentation (information such as

116 109 DATA NOTES In Switzerland, for example, taxpayers that leads to a change of 2% or more on receipts, financial statements, pay with an amended corporate income tax the score gap is classified as a reform, stubs) as required by the tax auditor; return per the case study scenario are and time spent by TaxpayerCo. in except when the change is the result of subject to a single-issue audit conducted submitting the documents requested automatic official fee indexation to a at the taxpayer’s premises. Taxpayers by the auditor. price or wage index (for more details, see wait 30 days (4.28 weeks) until the tax - the chapter on the ease of doing busi authority starts the audit and interact ness score and ease of doing business An estimate of half an hour is recorded for a total of four days (0.57 weeks) - ranking). For example, if the implementa for submission of documents or payment with the auditor and wait for four weeks tion of a new electronic system for filing of the income tax liability due if the until the final assessment is issued by or paying one of the three major taxes submission or payment is done electroni - the auditor, resulting in a total of 8.86 (corporate income tax, VAT, labor taxes cally in several minutes. An estimate of weeks to complete a corporate income and mandatory contributions) reduces zero hours is recorded in the case of a tax correction. the time or the number of payments in field audit if documents are submitted in a way that the overall gap decreases by person and at the taxpayer’s premises. If an economy does not levy corporate 2% or more, such change is classified as income tax, the economy will not be a reform. Alternatively, minor updates to In the Slovak Republic, for example, scored on the two indicators: time to tax rates or fixed charges or other smaller taxpayers would submit an amended comply with a corporate income tax changes in the indicators that have an corporate income tax return elec - correction and time to complete a corpo - aggregate impact less than 2% on the tronically. It takes taxpayers one hour rate income tax correction. This is the gap are not classified as a reform, but to correct the error in the return, half case in Vanuatu. an hour to submit the amended return their impact is still re fl ected on the most online and half an hour to make the updated indicators for this indicator set. An economy receives a “no practice” additional payment online. Amending a mark on the payments, time, total tax corporate income tax return per the case The data details on paying taxes can be study scenario in the Slovak Republic found for each economy at http://www fi ling index and contribution rate and post would not be subject to additional review. .doingbusiness.org. This methodology was indicators if the economy does not levy This brings the total compliance time developed by Djankov and others (2010). any taxes or mandatory contributions. to two hours. REFORMS Time to complete a corporate The paying taxes indicator set tracks TRADING ACROSS BORDERS changes related to the different taxes and income tax correction mandatory contributions that a medium- Doing Business Time is recorded in weeks. Time includes records the time and cost size company must pay in a given year, associated with the logistical process the time to start an audit from the the administrative burden of paying taxes of exporting and importing goods. - moment the tax authority has been noti and contributions and the administrative measures the time and Doing Business ed of the error in the corporate income fi burden of complying with two postfiling cost (excluding tariffs) associated with tax return, time spent by TaxpayerCo. processes (VAT refund, and tax audit) per three sets of procedures—documentary interacting with the auditor from the calendar year. Depending on the impact compliance, border compliance and moment an audit begins until there on the data, certain changes are classified domestic transport—within the overall are no further interactions between as reforms and listed in the summaries of process of exporting or importing a ship - TaxpayerCo. and the auditor (including reforms in 2017/18 section Doing Business ment of goods. Figure 8.15, using the the various rounds of interactions of the report in order to acknowledge the example of Brazil (as exporter) and China between TaxpayerCo. and the auditor), implementation of significant changes. (as importer), shows the process of and time spent waiting for the tax auditor Reforms are divided into two types: those exporting a shipment from a warehouse to issue the final tax assessment from the that make it easier to do business and in the origin economy to a warehouse moment TaxpayerCo. has submitted all those changes that make it more difficult in an overseas trading partner through relevant information and documents and to do business. The paying taxes indi- a port. Figure 8.16, using the example there are no further interactions between cator set uses one criterion to recognize of Kenya (as exporter) and Uganda TaxpayerCo. and the auditor. a reform. (as importer), shows the process of exporting a shipment from a warehouse Time to complete a corporate income tax in the origin economy to a warehouse The aggregate gap on the overall score correction is recorded as zero if less than in a regional trading partner through a of the indicator set is used to assess the 25% of companies will not go through an land border. The ranking of economies impact of data changes. Any data update additional review.

117 DOING BUSINESS 2019 110 exporting economy and travels to a FIGURE 8.15 What makes up the time and cost to export to an overseas warehouse in the largest business trading partner? city of the importing economy. For 11 economies the data are also collected, under the same case study assump- São Paulo tions, for the second largest business Domestic transport: 8.6 hours, $763 city (table 8A.1). ƒ Border compliance: 49 hours, $862 The import and export case studies China assume different traded products. It is Documentary compliance: 12 hours, $226 assumed that each economy imports a standardized shipment of 15 metric tons of containerized auto parts (HS 8708) from its natural import Doing Business database. Source: partner—the economy from which it imports the largest value (price times What makes up the time and cost to export to a regional FIGURE 8.16 quantity) of auto parts. It is assumed trading partner? that each economy exports the product of its comparative advantage I (defined by the largest export value) I I Nairobi to its natural export partner—the I Domestic transport: 9 hours, $967 II I I economy that is the largest purchaser I I of this product. Precious metal and Border compliance: 15.5 hours, $143 Uganda gems, mineral fuels, oil products, live Documentary compliance: 19 hours, $191 animals, residues and waste of foods - and products as well as pharmaceu ticals are excluded from the list of possible export products, however, Doing Business database. Source: and in these cases the second largest The data on trading across borders on the ease of trading across borders is Trading across borders: FIGURE 8.17 are gathered through a questionnaire determined by sorting their scores for time and cost to export and import administered to local freight forwarders, trading across borders. These scores are Rankings are based on scores customs brokers, port authorities the simple average of the scores for the for eight indicators and traders. time and cost for documentary compli- ance and border compliance to export Cost for documentary Time for documentary compliance and border compliance and border and import (figure 8.17). If an economy has no formal, large-scale, compliance when compliance when exporting the product exporting the product private sector cross-border trade taking of comparative of comparative place as a result of government restric- Doing Business collects and Although advantage advantage publishes data on the time and cost for ict or a natural disaster, fl tions, armed con domestic transport, it does not use these it is considered a “no practice” economy. 25% 25% data in calculating the score for trading A “no practice” economy receives a Time Cost to export to export across borders or the ranking on the score of 0 for all the trading across 25% 25% ease of trading across borders. The main borders indicators. Time Cost reason for this is that the time and cost for to import to import domestic transport are affected by many Assumptions of the case study external factors—such as the geography To make the data comparable across Cost for documentary Time for documentary compliance and border compliance and border and topography of the transit territory, economies, several assumptions are compliance when compliance when road capacity and general infrastructure, made about the traded goods and the importing auto parts importing auto parts proximity to the nearest port or border, transactions: ƒ and the location of warehouses where For each of the 190 economies covered the traded goods are stored—and so are , it is assumed that a Doing Business by The time and cost for domestic transport and Note: shipment is located in a warehouse uenced by an economy’s fl not directly in the number of documents to export and import are in the largest business city of the trade policies and reforms. measured but do not count for the rankings.

118 111 DATA NOTES port authorities in Mumbai and to the up at 8:00 a.m. the next day. In this case product category is considered 8 customs agency in the United States. the time for customs clearance would be as needed. ƒ recorded as 24 hours because the actual A shipment is a unit of trade. Export The time and cost for documentary procedure took 24 hours. shipments do not necessarily need to compliance include the time and cost - be containerized, while import ship for obtaining documents (such as time ments of auto parts are assumed to Cost spent to get the document issued and be containerized. Insurance cost and informal payments for ƒ stamped); preparing documents (such which no receipt is issued are excluded If fees are determined by the value of as time spent gathering information to from the costs recorded. Costs are the shipment, the value is assumed to complete the customs declaration or reported in U.S. dollars. Contributors be $50,000. ƒ certificate of origin); processing docu - are asked to convert local currency into The product is new, not secondhand ments (such as time spent waiting U.S. dollars based on the exchange rate or used merchandise. ƒ for the relevant authority to issue a prevailing on the day they answer the The exporting/importing firm hires phytosanitary certificate); presenting questionnaire. Contributors are private and pays for a freight forwarder or documents (such as time spent showing - sector experts in international trade logis customs broker (or both) and pays for - a port terminal receipt to port authori tics and are informed about exchange all costs related to domestic transport, ties); and submitting documents (such rates and their movements. clearance and mandatory inspections as time spent submitting a customs by customs and other agencies, port declaration to the customs agency in or border handling, documentary Documentary compliance person or electronically). compliance fees and the like. Documentary compliance captures the ƒ - time and cost associated with compli The mode of transport is the one most All electronic or paper submissions of ance with the documentary requirements widely used for the chosen export information requested by any govern- of all government agencies of the origin or import product and the trading ment agency in connection with the economy, the destination economy and partner, as is the seaport or land - shipment are considered to be docu any transit economies (table 8.14). The border crossing. ƒ ments obtained, prepared and submitted aim is to measure the total burden of All electronic submissions of informa- during the export or import process. preparing the bundle of documents that tion requested by any government All documents prepared by the freight will enable completion of the interna- agency in connection with the ship- forwarder or customs broker for the tional trade for the product and partner ment are considered to be documents product and partner pair assumed in pair assumed in the case study. As a ship - obtained, prepared and submitted the case study are included regardless ment moves from Mumbai to New York during the export or import process. ƒ of whether they are required by law or City, for example, the freight forwarder A port or border is defined as a place in practice. Any documents prepared must prepare and submit documents (seaport or land border crossing) and submitted so as to get access to to the customs agency in India, to the where merchandise can enter or leave an economy. ƒ Government agencies considered What do the indicators on the time and cost to export and import cover? TABLE 8.14 relevant are agencies such as customs, port authorities, road police, Documentary compliance border guards, standardization agen - Obtaining, preparing and submitting documents during transport, clearance, inspections and port or border cies, ministries or departments of handling in origin economy - agriculture or industry, national secu Obtaining, preparing and submitting documents required by destination economy and any transit economies rity agencies, central banks and any Covers all documents required by law and in practice, including electronic submissions of information other government authorities. Border compliance Customs clearance and inspections by customs Time Inspections by other agencies (if applied to more than 20% of shipments) Time is measured in hours, and 1 day Port or border handling at most widely used port or border of economy is 24 hours (for example, 22 days are recorded as 22 × 24 = 528 hours). If Domestic transport customs clearance takes 7.5 hours, the Loading and unloading of shipment at warehouse or border data are recorded as is. Alternatively, Transport by most widely used mode between warehouse and border suppose that documents are submitted Transport by most widely used mode between border and warehouse to a customs agency at 8:00 a.m., are Traffic delays and road police checks while shipment is en route processed overnight and can be picked

119 DOING BUSINESS 2019 112 (the standard case). If inspections by border compliance time and cost could preferential treatment—for example, a other agencies take place in more than be negligible or zero, as in the case of certificate of origin—are included in the 20% of cases, the time and cost measures trade between members of the European calculation of the time and cost for docu- account for clearance and inspections by Union or other customs unions. mentary compliance. Any documents all agencies. Different types of inspec- prepared and submitted because of a tions may take place with different - If some or all customs or other inspec perception that they ease the passage probabilities—for example, scanning may tions take place at other locations, the of the shipment are also included (for take place in 100% of cases while phys- time and cost for these procedures are example, freight forwarders may prepare ical inspection occurs in 5% of cases. In added to the time and cost for those a packing list because in their experience situations like this, Doing Business would that take place at the port or border. In this reduces the probability of physical or count the time only for scanning because Kazakhstan, for example, all customs other intrusive inspections). it happens in more than 20% of cases clearance and inspections take place at while physical inspection does not. The a customs post in Almaty that is not at In addition, any documents that are border compliance time and cost for an the land border between Kazakhstan and mandatory for exporting or importing economy do not include the time and China. In this case border compliance are included in the calculation of time cost for compliance with the regulations time is the sum of the time spent at the and cost. Documents that need to be of any other economy. terminal in Almaty and the handling time obtained only once are not counted, at the border. however. And Doing Business does not include documents needed to produce Domestic transport - Doing Business asks contributors to esti and sell in the domestic market—such Domestic transport captures the time mate the time and cost for clearance as certificates of third-party safety stan - and cost associated with transporting and inspections by customs agencies— dards testing that may be required to sell the shipment from a warehouse in the defined as documentary and physical toys domestically—unless a government largest business city of the economy to inspections for the purpose of calculating agency needs to see these documents the most widely used seaport or land duties by verifying product classification, during the export process. border of the economy. For 11 economies confirming quantity, determining origin the data are also collected for the second and checking the veracity of other infor - largest business city (table 8A.1). This set Border compliance mation on the customs declaration. (This of procedures captures the time for (and Border compliance captures the time and category includes all inspections aimed cost of) the actual transport; any traffic cost associated with compliance with at preventing smuggling.) These are delays and road police checks; as well the economy’s customs regulations and clearance and inspection procedures that as time spent on loading or unloading at with regulations relating to other inspec - take place in the majority of cases and the warehouse or border. For a coastal tions that are mandatory in order for the thus are considered the “standard” case. economy with an overseas trading shipment to cross the economy’s border, The time and cost estimates capture partner, domestic transport captures the as well as the time and cost for handling the efficiency of the customs agency time and cost from the loading of the that takes place at its port or border. The of the economy. shipment at the warehouse until the ship- time and cost for this segment include ment reaches the economy’s port (figure time and cost for customs clearance also asks contributors Doing Business 8.15). For an economy trading through a and inspection procedures conducted to estimate the total time and cost for land border, domestic transport captures by other agencies. For example, the time clearance and inspections by customs the time and cost from the loading of the and cost for conducting a phytosanitary and all other agencies for the specified shipment at the warehouse until the ship- inspection would be included here. product. These estimates account for ment reaches the economy’s land border inspections related to health, safety, (figure 8.16). The computation of border compli- phytosanitary standards, conformity and ance time and cost depends on where the like, and thus capture the efficiency The time and cost estimates are based the border compliance procedures take of agencies that require and conduct - on the most widely used mode of trans place, who requires and conducts the these additional inspections. port (truck, train) and the most widely procedures and what is the probability used route (road, border posts) as that inspections will be conducted. If all If inspections by agencies other than reported by contributors. The time and customs clearance and other inspections customs are conducted in 20% or fewer cost estimates are based on the mode take place at the port or border at the cases, the border compliance time and and route chosen by the majority of same time, the time estimate for border cost measures take into account only contributors. For the 11 economies for compliance takes this simultaneity into clearance and inspections by customs which data are collected for both the account. It is entirely possible that the

120 113 DATA NOTES largest and the second largest business those that make it easier to do business TABLE 8.15 What do the indicators on Doing Business city, and those changes that make it more allows the most the efficiency of resolving a commercial widely used route and the most widely difficult to do business. The trading dispute measure? - across borders indicator set uses a stan used mode of transport to be different Time required to enforce a contract through dard criterion to recognize a reform. for the two cities. For example, ship - the courts (calendar days) ments from Delhi are transported by Time to file and serve the case train to Mundra port for export, while The aggregate gap on the overall score Time for trial and to obtain the judgment shipments from Mumbai travel by truck of the indicator set is used to assess the Time to enforce the judgment to Nhava Sheva port to be exported. impact of data changes. Any data update Cost required to enforce a contract through that leads to a change of 2% or more on the courts (% of claim value) the score gap is classified as a reform, Doing In the export case study, as noted, Average attorney fees Business except when the change is the result of does not assume a containerized Court costs automatic official fee indexation to a shipment, and time and cost estimates Enforcement costs may be based on the transport of 15 price or wage index (for more details, see tons of noncontainerized products. In - the chapter on the ease of doing busi average of the scores for each of the ness score and ease of doing business the import case study auto parts are component indicators (figure 8.18). - ranking). For example, if the implementa assumed to be containerized. In the cases where cargo is containerized, tion of a single window system reduces the time and cost for transport and time or cost in a way that the overall gap EFFICIENCY OF RESOLVING A decreases by 2% or more, such change is - other procedures are based on a ship COMMERCIAL DISPUTE classified as a reform. Minor fee updates ment consisting of homogeneous cargo The data on time and cost are built by or other small changes on the indicators belonging to a single Harmonized System following the step-by-step evolution of that have an aggregate impact of less (HS) classification code. This assumption a commercial sale dispute (figure 8.19). than 2% on the gap are not classified is particularly important for inspections, The data are collected for a specific court because shipments of homogeneous as a reform, yet, but their impact is still for each city covered, under the assump - products are often subject to fewer and tions about the case described below. re fl ected on the most updated indicators shorter inspections than shipments of The “competent court” is the one with for this indicator set. products belonging to various HS codes. jurisdiction over disputes worth 200% of income per capita or $5,000, which - The data details on trading across borders In some cases the shipment travels ever is greater. Whenever more than can be found for each economy at http:// from the warehouse to a customs post one court has original jurisdiction over www.doingbusiness.org. This methodology or terminal for clearance or inspections a case comparable to the standardized was initially developed by Djankov and and then travels onward to the port or case study, the data are collected based others (2008) and was revised in 2015. border. In these cases the domestic transport time is the sum of the time FIGURE 8.18 Enforcing contracts: for both transport segments. The time ENFORCING CONTRACTS efficiency and quality of commercial and cost for clearance or inspections dispute resolution are included in the measures for border measures the time and Doing Business Rankings are based on scores compliance, however, not in those for cost for resolving a commercial dispute for three indicators domestic transport. through a local first-instance court Days to resolve Attorney, court and (table 8.15) and the quality of judicial a commercial dispute enforcement costs, processes index, evaluating whether REFORMS through the courts as % of claim value each economy has adopted a series of The trading across borders indicator set good practices that promote quality records the time and cost associated 33.3% 33.3% and efficiency in the court system. The with the logistical process of exporting Cost Time data are collected through study of the and importing goods every year. 33.3% codes of civil procedure and other court Depending on the impact on the data, Quality of judicial regulations as well as questionnaires certain changes are classified as reforms processes index completed by local litigation lawyers and and listed in the summaries of Doing judges. The ranking of economies on the Business reforms in 2017/18 section of Use of good practices promoting ease of enforcing contracts is determined the report in order to acknowledge the quality and efficiency by sorting their scores for enforcing implementation of significant changes. contracts. These scores are the simple Reforms are divided into two types:

121 DOING BUSINESS 2019 114 under the sales agreement. The dispute Time FIGURE 8.19 What are the time and is brought before the court located in Time is recorded in calendar days, cost to resolve a commercial dispute the economy’s largest business city counted from the moment Seller through a local first-instance court? with jurisdiction over commercial decides to file the lawsuit in court Court cases worth 200% of income per until payment. This includes both the capita or $5,000, whichever is greater. days when actions take place and As noted, for 11 economies the data are the waiting periods in between. The Time also collected for the second largest average duration of the following three Cost business city. different stages of dispute resolution is ƒ recorded: (i) filing and service; (ii) trial At the outset of the dispute, Seller Company A Company B and judgment; and (iii) enforcement. decides to attach Buyer’s movable Commercial (Buyer & (Seller & dispute Time is recorded considering the case assets (for example, office equipment plaintiff) defendant) study assumptions detailed above and and vehicles) because Seller fears that Trial & Enforcement Filing & judgment service only as applicable to the competent Buyer may hide its assets or otherwise court. Time is recorded in practice, become insolvent. ƒ regardless of time limits set by law if The claim is disputed on the merits such time limits are not respected in because of Buyer’s allegation that the majority of cases. the quality of the goods was not adequate. Because the court cannot - on the court that would be used by liti decide the case on the basis of docu - gants in the majority of cases. The name The fi ling and service phase includes: ƒ mentary evidence or legal title alone, of the relevant court in each economy is The time for Seller to try and obtain an expert opinion is given on the Doing Business published on the website payment out of court through a non- quality of the goods. If it is standard at http://www.doingbusiness.org/data litigious demand letter, including the practice in the economy for each /exploretopics/enforcing-contracts. For time to prepare the letter and the party to call its own expert witness, the 11 economies for which the data are deadline that would be provided to the parties each call one expert - also collected for the second largest busi Buyer to comply. ƒ witness. If it is standard practice for ness city, the name of the relevant court The time necessary for a local lawyer the judge to appoint an independent in that city is given as well. to write the initial complaint and expert, the judge does so. In this case gather all supporting documents the judge does not allow opposing ling, including authenti fi needed for Assumptions about the case - ƒ expert testimony. cating or notarizing them, if required. The value of the claim is equal to ƒ ƒ 200% of the economy’s income per Following the expert opinion, the le the fi The time necessary to capita or $5,000, whichever is greater. judge decides that the goods deliv - complaint at the court. ƒ ƒ ered by Seller were of adequate The time necessary for Buyer to be - The dispute concerns a lawful trans quality and that Buyer must pay the served, including the processing action between two businesses contract price. The judge thus renders time at the court and the waiting (Seller and Buyer), both located in the economy’s largest business city. periods between unsuccessful a nal judgment that is 100% in favor fi For 11 economies the data are also attempts if more than one attempt is of Seller. ƒ usually required. collected for the second largest busi - Buyer does not appeal the judgment. ness city (table 8A.1). Pursuant to a Seller decides to start enforcing the contract between the businesses, The trial and judgment phase includes: judgment as soon as the time allo- ƒ Seller sells some custom-made cated by law for appeal lapses. The time between the moment the ƒ furniture to Buyer worth 200% of case is served on Buyer and the Seller takes all required steps for the economy’s income per capita or moment a pre-trial conference is held, - prompt enforcement of the judg $5,000, whichever is greater. After if such pre-trial conference is part of ment. The money is successfully Seller delivers the goods to Buyer, the case management techniques collected through a public sale of Buyer refuses to pay the contract used by the competent court. Buyer’s movable assets (for example, ƒ price, alleging that the goods are not office equipment and vehicles). It is The time between the pre-trial of adequate quality. Because they assumed that Buyer does not have fi conference and the rst hearing, if were custom-made, Seller is unable any money on her/his bank account, a pre-trial conference is part of the to sell them to anyone else. making it impossible for the judgment case management techniques used ƒ to be enforced through a seizure of by the competent court. If not, the Seller (the plaintiff) sues Buyer (the the Buyer’s accounts. time between the moment the case is defendant) to recover the amount

122 DATA NOTES 115 costs include the fees that the parties served on Buyer and the moment the TABLE 8.16 What does the quality of must pay to obtain an expert opinion, fi rst hearing is held. judicial processes index measure? ƒ regardless of whether they are paid The time to conduct all trial activities, Court structure and proceedings index (-1–5) to the court or to the expert directly. including exchanges of briefs and Availability of specialized commercial court, Enforcement costs are all costs that evidence, multiple hearings, waiting division or section (0–1.5) Seller (plaintiff) must advance to times in between hearings and Availability of small claims court and/or simplified enforce the judgment through a public obtaining an expert opinion. procedure for small claims (0–1.5) ƒ sale of Buyer’s movable assets, regard - The time necessary for the judge to Availability of pretrial attachment (0–1) less of the final cost borne by Seller. nal judgment once fi issue a written Criteria used to assign cases to judges (0–1) Bribes are not taken into account. the evidence period has closed. Evidentiary weight of woman’s testimony (-1–0) ƒ The time limit for appeal. Case management index (0–6) QUALITY OF JUDICIAL Regulations setting time standards for key court PROCESSES The enforcement phase includes: events (0–1) ƒ The quality of judicial processes index The time it takes to obtain an Regulations on adjournments and continuances enforceable copy of the judgment measures whether each economy has (0–1) adopted a series of good practices in its and contact the relevant enforce- Availability of performance measurement reports court system in four areas: court struc - ment office. (0–1) ƒ ture and proceedings, case management, The time it takes to locate, identify, Availability of pretrial conference (0–1) court automation and alternative dispute seize and transport the losing party’s Availability of electronic case management resolution (table 8.16). movable assets (including the time system for judges (0–1) necessary to obtain an order from the Availability of electronic case management system for lawyers (0–1) court to attach and seize the assets, Court structure and proceedings if applicable). index Court automation index (0–4) ƒ The time it takes to advertise, orga - The court structure and proceedings Ability to file initial complaint electronically (0–1) index has five components: nize and hold the auction. If more Ability to serve initial complaint electronically ƒ than one auction would usually be Whether a specialized commercial (0–1) required to fully recover the value court, section or division dedicated Ability to pay court fees electronically (0–1) of claim in a case comparable to solely to hearing commercial cases is Publication of judgments (0–1) the standardized case study, then in place. A score of 1.5 is assigned if Alternative dispute resolution index (0–3) the time between multiple auction yes; 0 if no. Arbitration (0–1.5) ƒ attempts is recorded. Whether a small claims court and/or Voluntary mediation and/or conciliation (0–1.5) ƒ a fast-track procedure for small claims The time it takes for the winning Quality of judicial processes index (0–18) is in place. A score of 1 is assigned if party to fully recover the value such a court or procedure is in place, of the claim once the auction is Sum of the court structure and proceedings, case management, court automation and alternative it is applicable to all civil cases and the successfully completed. dispute resolution indices law sets a cap on the value of cases that can be handled through this court Cost ƒ or procedure. The point is assigned Cost is recorded as a percentage of Whether cases are assigned only if this court applies a simplified the claim value, assumed to be equiva- randomly and automatically to procedure or if the procedure for small lent to 200% of income per capita or judges throughout the competent $5,000, whichever is greater. Three court. A score of 1 is assigned if the claims is simpli fi ed. An additional types of costs are recorded: average assignment of cases is random and score of 0.5 is assigned if parties automated; 0.5 if it is random but not attorney fees, court costs and enforce- can represent themselves before ment costs. automated; 0 if it is neither random this court or during this procedure. nor automated. If no small claims court or fast-track ƒ Average attorney fees are the fees procedure is in place, a score of 0 Whether a woman’s testimony carries that Seller (plaintiff) must advance is assigned. the same evidentiary weight in court ƒ to a local attorney to represent Seller as a man’s. A score of -1 is assigned Whether plaintiffs can obtain pretrial in the standardized case, regardless if the law differentiates between the attachment of the defendant’s of final reimbursement. Court costs evidentiary value of a woman’s testi - movable assets if they fear the assets include all costs that Seller (plaintiff) mony and that of a man in any type may be moved out of the jurisdiction must advance to the court, regardless of civil case, including family cases; 0 or otherwise dissipated. A score of 1 is of the final cost borne by Seller. Court if it does not. assigned if yes; 0 if no.

123 DOING BUSINESS 2019 116 to track the status of a case on their reports about the competent court The index ranges from -1 to 5, with higher docket; (v) to view and manage case to monitor the court’s performance, values indicating a more sophisticated documents (briefs, motions); (vi) to to track the progress of cases and streamlined court structure. In Bosnia assist in writing judgments; (vii) to through the court and to ensure and Herzegovina, for example, a special - semiautomatically generate court compliance with established time ized commercial court is in place (a score orders; and (viii) to view court orders standards. A score of 1 is assigned of 1.5), and small claims can be resolved and judgments in a particular case. A if at least two of the following four through a dedicated division in which score of 1 is assigned if an electronic reports are made publicly avail- self-representation is allowed (a score of case management system is available able: (i) time to disposition report 1.5). Plaintiffs can obtain pretrial attach - that judges can use for at least four of (measuring the time the court takes ment of the defendant’s movable assets these purposes; 0 if not. to dispose/adjudicate its cases); (ii) if they fear dissipation during trial (a ƒ clearance rate report (measuring score of 1). Cases are assigned randomly - Whether lawyers can use an elec the number of cases resolved versus - through an electronic case manage tronic case management system for the number of incoming cases); ment system (a score of 1). A woman’s at least four of the following purposes: (iii) age of pending cases report testimony carries the same evidentiary (i) to access laws, regulations and (providing a snapshot of all pending weight in court as a man’s (a score of 0). case law; (ii) to access forms to be cases according to case type, case Adding these numbers gives Bosnia and submitted to the court; (iii) to receive age, last action held and next Herzegovina a score of 5 on the court notifications (for example, e-mails); action scheduled); and (iv) single structure and proceedings index. (iv) to track the status of a case; (v) case progress report (providing a to view and manage case documents snapshot of the status of one single (briefs, motions); (vi) to file briefs Case management index case). A score of 0 is assigned if and documents with the court; and The case management index has only one of these reports is available (vii) to view court orders and deci- six components: ƒ or if none are. sions in a particular case. A score Whether any of the applicable laws or ƒ of 1 is assigned if an electronic case regulations on civil procedure contain Whether a pretrial conference is management system that lawyers can time standards for at least three of the among the case management tech - use for at least four of these purposes following key court events: (i) service niques used in practice before the is available; 0 if not. of process; (ii) first hearing; (iii) filing competent court and at least three of the statement of defense; (iv) of the following issues are discussed The index ranges from 0 to 6, with higher completion of the evidence period; during the pretrial conference: (i) values indicating a more qualitative and (v) filing of testimony by expert; and scheduling (including the time frame efficient case management system. In (vi) submission of the final judgment. - for filing motions and other docu Australia, for example, time standards A score of 1 is assigned if such time ments with the court); (ii) case for at least three key court events are standards are available and respected complexity and projected length of established in applicable civil proce - in more than 50% of cases; 0.5 if trial; (iii) possibility of settlement dure instruments and are respected in they are available but not respected or alternative dispute resolution; more than 50% of cases (a score of 1). in more than 50% of cases; 0 if there (iv) exchange of witness lists; (v) The law stipulates that adjournments are time standards for less than three evidence; (vi) jurisdiction and other can be granted only for unforeseen and of these key court events or for none. procedural issues; and (vii) narrowing ƒ exceptional circumstances and this rule down of contentious issues. A score Whether there are any laws regulating is respected in more than 50% of cases of 1 is assigned if a pretrial confer - - the maximum number of adjourn - (a score of 0.5). A time to disposi ence in which at least three of these ments or continuances that can tion report, a clearance rate report and events are discussed is held within the be granted, whether adjournments an age of pending cases report can be competent court; 0 if not. are limited by law to unforeseen ƒ generated about the competent court and exceptional circumstances and Whether judges within the compe- (a score of 1). A pretrial conference is whether these rules are respected tent court can use an electronic case among the case management tech- in more than 50% of cases. A score management system for at least niques used before the District Court of 1 is assigned if all three conditions four of the following purposes: (i) to of New South Wales (a score of 1). An are met; 0.5 if only two of the three access laws, regulations and case electronic case management system conditions are met; 0 if only one of the law; (ii) to automatically generate a satisfying the criteria outlined above is conditions is met or if none are. hearing schedule for all cases on their ƒ available to judges (a score of 1) and docket; (iii) to send notifications (for Whether there are any publicly to lawyers (a score of 1). Adding these example, e-mails) to lawyers; (iv) available performance measurement

124 117 DATA NOTES ƒ courts in more than 50% of cases. A numbers gives Australia a score of 5.5 Whether judgments rendered by score of 0.5 is assigned if yes; 0 if no. local courts are made available to the on the case management index, the ƒ highest score attained by any economy general public through publication in Whether voluntary mediation, official gazettes, in newspapers or on on this index. conciliation or both are a recog- the internet. A score of 1 is assigned nized way of resolving commercial if judgments rendered in commercial disputes. A score of 0.5 is assigned Court automation index cases at all levels are made avail- if yes; 0 if no. The court automation index has ƒ able to the general public; 0.5 if only four components: Whether voluntary mediation, ƒ judgments rendered at the appeal conciliation or both are governed Whether the initial complaint can and supreme court level are made by a consolidated law or consoli - be filed electronically through a available to the general public; 0 in dated chapter or section of the dedicated platform (not e-mail or all other instances. No points are applicable code of civil procedure fax) within the competent court. awarded if judgments need to be indi - encompassing substantially all their A score of 1 is assigned if such a vidually requested from the court, or aspects. A score of 0.5 is assigned if platform is available and litigants if the case number or parties’ details yes; 0 if no. are not required to follow up with ƒ are required in order to obtain a copy a hard copy of the complaint; 0 if Whether there are any financial incen- of a judgment. not. Electronic filing is acknowl - tives for parties to attempt mediation edged regardless of the percentage or conciliation (for example, if media - The index ranges from 0 to 4, with higher of users, as long as no additional tion or conciliation is successful, a values indicating a more automated, in-person interactions are required, refund of court filing fees, an income efficient and transparent court system. and local experts have used it tax credit or the like). A score of 0.5 is In Estonia, for example, the initial enough to be able to confirm that it assigned if yes; 0 if no. summons can be filed online (a score is fully functional. ƒ of 1), it can be served on the defendant The index ranges from 0 to 3, with Whether the initial complaint can be electronically (a score of 1), and court higher values associated with greater served on the defendant electroni- fees can be paid electronically as well availability of alternative dispute resolu- cally, through a dedicated system or (a score of 1). In addition, judgments in tion mechanisms. In Israel, for example, by e-mail, fax or short message commercial cases at all levels are made arbitration is regulated through a service (SMS), for cases fi led before publicly available through the internet dedicated statute (a score of 0.5), all the competent court. A score of 1 is (a score of 1). Adding these numbers relevant commercial disputes can be assigned if electronic service is avail - gives Estonia a score of 4 on the court submitted to arbitration (a score of 0.5), able and no further service of process automation index. and valid arbitration clauses are usually is required; 0 if not. Electronic service enforced by the courts (a score of 0.5). is acknowledged regardless of the Voluntary mediation is a recognized percentage of users, as long as no Alternative dispute resolution way of resolving commercial disputes additional in-person interactions are index (a score of 0.5), it is regulated through required, and local experts have used The alternative dispute resolution index a dedicated statute (a score of 0.5), has six components: it enough to be able to con fi rm that it ƒ and part of the filing fees is reimbursed is fully functional. Whether domestic commercial arbi- ƒ if the process is successful (a score of tration is governed by a consolidated Whether court fees can be paid elec - 0.5). Adding these numbers gives Israel law or consolidated chapter or section led before the fi tronically for cases a score of 3 on the alternative dispute - of the applicable code of civil proce competent court, either through a resolution index. dure encompassing substantially all dedicated platform or through online its aspects. A score of 0.5 is assigned banking. A score of 1 is assigned if fees if yes; 0 if no. can be paid electronically and litigants Quality of judicial processes ƒ are not required to follow-up with a Whether commercial disputes of all index hard copy of the receipt or produce a kinds—aside from those dealing with The quality of judicial processes index stamped copy of the receipt; 0 if not. public order, public policy, bankruptcy, is the sum of the scores on the court Electronic payment is acknowledged consumer rights, employment issues structure and proceedings, case manage - regardless of the percentage of users, or intellectual property—can be ment, court automation and alternative as long as no additional in-person submitted to arbitration. A score of dispute resolution indices. The index interactions are required, and local 0.5 is assigned if yes; 0 if no. ranges from 0 to 18, with higher values ƒ experts have used it enough to be able indicating better and more efficient Whether valid arbitration clauses judicial processes. or agreements are enforced by local fi to con rm that it is fully functional.

125 DOING BUSINESS 2019 118 fl ected on the most updated are still re REFORMS Resolving insolvency: FIGURE 8.20 indicators data. The enforcing contracts indicator set recovery rate and strength of insolvency tracks changes related to the efficiency framework and quality of commercial dispute resolu - Third, legislative changes of exceptional Rankings are based on scores tion systems every year. Depending on magnitude such as sizeable revisions for two indicators the impact on the data, certain changes of the applicable civil procedure, or are classified as reforms and listed in the enforcement laws, that are anticipated summaries of Doing Business reforms in cant impact on time and fi to have a signi 2017/18 section of the report. Reforms are cost in the future. 50% 50% Recovery Strength of divided into two types: those that make it insolvency rate framework easier to do business and those changes The data details on enforcing contracts can index that make it more difficult to do business. be found for each economy at http://www The enforcing contracts indicator set uses .doingbusiness.org. This methodology was three criteria to recognize a reform. initially developed by Djankov and others (2003) and is adopted here with several First, changes in laws and regulations changes. The quality of judicial processes that have any impact on the economy’s Doing Business index was introduced in Assumptions about the business score on the quality of judicial processes . The good practices tested in this index 2016 The business: ƒ index are classified as reforms. Examples were developed on the basis of internation- Is a limited liability company. ƒ of reforms impacting the quality of judi - ally recognized good practices promoting Operates in the economy’s largest cial processes index include measures judicial efficiency. business city. For 11 economies the to introduce electronic filing of the initial data are also collected for the second complaint, the creation of a commercial largest business city (table 8A.1). ƒ court or division, or the introduction Is 100% domestically owned, with RESOLVING INSOLVENCY of dedicated systems to resolve small the founder, who is also chairperson claims. Changes affecting the quality of the supervisory board, owning 51% Doing Business studies the time, cost of judicial processes index can be (no other shareholder holds more - and outcome of insolvency proceed different in magnitude and scope and than 5% of shares). ings involving domestic entities as well ƒ still be considered a reform. For example, as the strength of the legal framework Has downtown real estate, where it implementing a new electronic case applicable to judicial liquidation and runs a hotel, as its major asset. ƒ management system for the use of reorganization proceedings. The data for Has a professional general manager. ƒ judges and lawyers represents a reform the resolving insolvency indicators are Has 201 employees and 50 suppliers, with a 2-point increase in the index, while derived from questionnaire responses by each of which is owed money for the introducing incentives for the parties to local insolvency practitioners and verified last delivery. ƒ use mediation represents a reform with a through a study of laws and regulations Has a 10-year loan agreement with a 0.5-point increase in the index. as well as public information on insol - domestic bank secured by a mortgage vency systems. The ranking of economies over the hotel’s real estate property. Second, changes that have an impact on on the ease of resolving insolvency is A universal business charge (an the time and cost to resolve a dispute determined by sorting their scores for enterprise charge) is also assumed may also be classified as reforms resolving insolvency. These scores are - in economies where such collat depending on the magnitude of the the simple average of the scores for the eral is recognized. If the laws of the changes. According to the enforcing recovery rate and the strength of insol - economy do not specifically provide contracts methodology, any updates in for an enterprise charge but contracts fi vency framework index ( gure 8.20). legislation leading to a change of 2% or commonly use some other provi - more on the score gap, except when the sion to that effect, this provision is RECOVERY OF DEBT IN change is the result of automatic official specified in the loan agreement. INSOLVENCY ƒ fee indexation to a price or wage index The recovery rate is calculated based on Has observed the payment schedule (for more details, see the chapter on the time, cost and outcome of insolvency and all other conditions of the loan the ease of doing business score and up to now. proceedings in each economy. To make ƒ ease of doing business ranking) of the the data on the time, cost and outcome Has a market value, operating as a time and cost indicators is classified as of insolvency proceedings comparable going concern, of 100 times income a reform. Changes with lower impact across economies, several assumptions per capita or $200,000, whichever are not classified as reforms, but they about the business and the case are used. is greater. The market value of the

126 119 DATA NOTES - Time company’s assets, if sold piece TABLE 8.17 What do the indicators on meal, is 70% of the market value Time for creditors to recover their credit debt recovery in insolvency measure? of the business. is recorded in calendar years (table Time required to recover debt (years) 8.17). The period of time measured by Measured in calendar years Doing Business is from the company’s Assumptions about the case Appeals and requests for extension are included default until the payment of some or The business is experiencing liquidity Cost required to recover debt (% of debtor’s all of the money owed to the bank. problems. The company’s loss in 2017 estate) Potential delay tactics by the parties, reduced its net worth to a negative figure. Measured as percentage of estate value such as the filing of dilatory appeals It is January 1, 2018. There is no cash to Court fees or requests for extension, are taken pay the bank interest or principal in full, into consideration. - due the next day, January 2. The busi Fees of insolvency administrators ness will therefore default on its loan. Lawyers’ fees Management believes that losses will Cost Assessors’ and auctioneers’ fees be incurred in 2018 and 2019 as well. The cost of the proceedings is recorded as Other related fees a percentage of the value of the debtor’s ow to cover fl But it expects 2018 cash Outcome estate. The cost is calculated on the basis all operating expenses, including supplier Whether the business continues operating as of questionnaire responses and includes payments, salaries, maintenance costs a going concern or whether its assets are sold court fees and government levies; fees of and taxes, though not principal or interest piecemeal insolvency administrators, auctioneers, payments to the bank. Recovery rate for secured creditors (cents on the dollar) assessors and lawyers; and all other fees and costs. The amount outstanding under the loan Measures the cents on the dollar recovered by secured creditors agreement is exactly equal to the market Present value of debt recovered value of the hotel business and repre- Outcome sents 74% of the company’s total debt. Recovery by creditors depends on Official costs of the insolvency proceedings are deducted The other 26% of its debt is held by unse - whether the hotel business emerges from Depreciation of furniture is taken into account cured creditors (suppliers, employees, the proceedings as a going concern or the tax authorities). company’s assets are sold piecemeal. If Outcome for the business (survival or not) affects the maximum value that can be recovered the business continues operating, 100% The company has too many creditors of the hotel value is preserved. If the for furniture is taken to be 20%. The to negotiate an informal out-of-court assets are sold piecemeal, the maximum furniture is assumed to account for a workout. The following options are amount that can be recovered is 70% of quarter of the total value of assets. The available: a judicial procedure aimed at the value of the hotel. recovery rate is the present value of the the rehabilitation or reorganization of remaining proceeds, based on end-2017 the company to permit its continued Recovery rate lending rates from the International operation; a judicial procedure aimed The recovery rate is recorded as cents on Monetary Fund’s International Financial at the liquidation or winding-up of the the dollar recovered by secured creditors Statistics , supplemented with data company; or a judicial debt enforcement through judicial reorganization, liquida - from central banks and the Economist procedure (foreclosure or receivership) tion or debt enforcement (foreclosure or Intelligence Unit. against the company. receivership) proceedings (figure 8.21). The calculation takes into account the If an economy had zero completed outcome: whether the business emerges Assumptions about the parties cases a year over the past five years from the proceedings as a going concern The bank wants to recover as much as - involving a judicial reorganization, judi or the assets are sold piecemeal. possible of its loan, as quickly and cheaply cial liquidation or debt enforcement Then the costs of the proceedings are as possible. The unsecured creditors procedure (foreclosure or receivership), deducted (1 cent for each percentage will do everything permitted under the the economy receives a “no practice” point of the value of the debtor’s estate). applicable laws to avoid a piecemeal sale mark on the time, cost and outcome Finally, the value lost as a result of the of the assets. The majority shareholder indicators. This means that creditors are time the money remains tied up in wants to keep the company operating unlikely to recover their money through insolvency proceedings is taken into and under her/his control. Management a formal legal process. The recovery account, including the loss of value due wants to keep the company operating rate for “no practice” economies is zero. to depreciation of the hotel furniture. and preserve its employees’ jobs. All the In addition, a “no practice” economy Consistent with international accounting parties are local entities or citizens; no receives a score of 0 on the strength practice, the annual depreciation rate foreign parties are involved.

127 DOING BUSINESS 2019 120 Management of debtor’s assets FIGURE 8.21 Recovery rate is a function of the time, cost and outcome of insolvency index proceedings against a local company The management of debtor’s assets index has six components: Secured creditor ƒ Recovery rate Whether the debtor (or an insol - Outcome Time Cost with unpaid claim vency representative on its behalf) can continue performing contracts Reorganization, liquidation or essential to the debtor’s survival. debt enforcement proceedings A score of 1 is assigned if yes; 0 if continuation of contracts is not possible or if the law contains no provisions on this subject. assigned if debtors can initiate of insolvency framework index even if ƒ both types of proceedings; 0.5 if its legal framework includes provisions Whether the debtor (or an insolvency they can initiate only one of these - related to insolvency proceedings (liqui representative on its behalf) can - types (either liquidation or reorga dation or reorganization). reject overly burdensome contracts. nization); 0 if they cannot initiate A score of 1 is assigned if yes; 0 if insolvency proceedings. rejection of contracts is not possible STRENGTH OF INSOLVENCY ƒ or if the law contains no provisions Whether creditors can initiate FRAMEWORK on this subject. both liquidation and reorganization The strength of insolvency framework ƒ proceedings. A score of 1 is assigned index is based on four other indices: Whether transactions entered into if creditors can initiate both types of commencement of proceedings index, before commencement of insolvency proceedings; 0.5 if they can initiate management of debtor’s assets index, proceedings that give preference only one of these types (either reorganization proceedings index and to one or several creditors can be liquidation or reorganization); 0 creditor participation index (figure 8.22; - avoided after proceedings are initi if they cannot initiate insolvency table 8.18). ated. A score of 1 is assigned if yes; proceedings. 0 if avoidance of such transactions is ƒ not possible or if the law contains no Commencement of proceedings What standard is used for commence - provisions on this subject. ment of insolvency proceedings. A index ƒ score of 1 is assigned if a liquidity The commencement of proceedings Whether undervalued transactions test (the debtor is generally unable index has three components: entered into before commencement ƒ to pay its debts as they mature) is of insolvency proceedings can be Whether debtors can initiate used; 0.5 if the balance sheet test - avoided after proceedings are initi both liquidation and reorganiza- (the liabilities of the debtor exceed its ated. A score of 1 is assigned if yes; tion proceedings. A score of 1 is assets) is used; 1 if both the liquidity 0 if avoidance of such transactions is and balance sheet tests are available not possible or if the law contains no FIGURE 8.22 Strength of insolvency but only one is required to initiate provisions on this subject. framework index measures the quality ƒ insolvency proceedings; 0.5 if both Whether the insolvency framework of insolvency laws that govern relations tests are required; 0 if a different includes specific provisions that allow between debtors, creditors and the court test is used. the debtor (or an insolvency representa- Management of Commencement tive on its behalf), after commencement debtor’s assets of proceedings index index Court The index ranges from 0 to 3, with of insolvency proceedings, to obtain higher values indicating greater access financing necessary to function during to insolvency proceedings. In Bulgaria, the proceedings. A score of 1 is assigned for example, debtors can initiate both if yes; 0 if obtaining post-commence- liquidation and reorganization proceed- ment finance is not possible or if the law ings (a score of 1), but creditors can contains no provisions on this subject. ƒ initiate only liquidation proceedings (a Whether post-commencement finance Debtor Creditors score of 0.5). Either the liquidity test receives priority over ordinary unse - or the balance sheet test can be used cured creditors during distribution of Reorganization Creditor to commence insolvency proceedings assets. A score of 1 is assigned if yes; proceedings index participation index (a score of 1). Adding these numbers 0.5 if post-commencement finance is gives Bulgaria a score of 2.5 on the granted superpriority over all creditors, commencement of proceedings index. secured and unsecured; 0 if no priority

128 121 DATA NOTES ƒ rights are modified or affected by the Whether creditors are required to TABLE 8.18 What do the indicators plan. A score of 1 is assigned if yes; 0.5 approve the sale of substantial assets on the strength of the insolvency if all creditors vote on the plan, regard - of the debtor in the course of insol - framework measure? less of its impact on their interests; 0 vency proceedings. A score of 1 is Commencement of proceedings index (0–3) if creditors do not vote on the plan or assigned if yes; 0 if no. Availability of liquidation and reorganization to ƒ if reorganization is not available. Whether an individual creditor has the debtors and creditors (0–2) ƒ right to access financial information Whether creditors entitled to vote Standards for commencement of insolvency about the debtor during insolvency proceedings (0–1) on the plan are divided into classes, proceedings. A score of 1 is assigned each class votes separately and the Management of debtor’s assets index (0–6) if yes; 0 if no. creditors within each class are treated Continuation and rejection of contracts during insolvency (0–2) ƒ equally. A score of 1 is assigned if Whether an individual creditor can the voting procedure has these three object to a decision of the court or Avoidance of preferential and undervalued transactions (0–2) features; 0 if the voting procedure of the insolvency representative to Post-commencement finance (0–2) does not have these three features or approve or reject claims against the if reorganization is not available. debtor brought by the creditor itself Reorganization proceedings index (0–3) ƒ and by other creditors. A score of 1 is Whether the insolvency framework Approval and content of reorganization plan (0–3) assigned if yes; 0 if no. requires that dissenting creditors Creditor participation index (0–4) receive as much under the reorganiza - Creditors’ participation in and rights during The index ranges from 0 to 4, with higher tion plan as they would have received liquidation and reorganization proceedings (0–4) values indicating greater participation in liquidation. A score of 1 is assigned Strength of insolvency framework index (0–16) of creditors. In Iceland, for example, if yes; 0 if no such provisions exist or if Sum of the commencement of proceedings, the court appoints the insolvency reorganization is not available. management of debtor’s assets, reorganization proceedings and creditor participation indices representative, without creditors’ approval (a score of 0). The insolvency The index ranges from 0 to 3, with representative decides unilaterally on - higher values indicating greater compli is granted to post-commencement the sale of the debtor’s assets (a score of ance with internationally accepted finance or if the law contains no provi - 0). Any creditor can inspect the records practices. Nicaragua, for example, has sions on this subject. kept by the insolvency representative (a no judicial reorganization proceedings score of 1). And any creditor is allowed and therefore receives a score of 0 on The index ranges from 0 to 6, with higher to challenge a decision of the insolvency the reorganization proceedings index. values indicating more advantageous representative to approve all claims if In Estonia, another example, only treatment of the debtor’s assets from this decision affects the creditor’s rights creditors whose rights are affected by the perspective of the company’s stake - (a score of 1). Adding these numbers the reorganization plan are allowed to holders. In Mozambique, for example, gives Iceland a score of 2 on the creditor vote (a score of 1). The reorganization debtors can continue essential contracts participation index. plan divides creditors into classes, (a score of 1) and reject burdensome each class votes separately and credi- ones (a score of 1) during insolvency tors within the same class are treated proceedings. The insolvency framework Strength of insolvency equally (a score of 1). But there are no allows avoidance of preferential transac - framework index provisions requiring that the return to tions (a score of 1) and undervalued ones The strength of insolvency framework dissenting creditors be equal to what (a score of 1). But the insolvency frame- index is the sum of the scores on the they would have received in liquidation work contains no provisions allowing commencement of proceedings index, (a score of 0). Adding these numbers post-commencement finance (a score management of debtor’s assets index, - gives Estonia a score of 2 on the reor of 0) or granting priority to such finance reorganization proceedings index and ganization proceedings index. (a score of 0). Adding these numbers creditor participation index. The index gives Mozambique a score of 4 on the ranges from 0 to 16, with higher values management of debtor’s assets index. indicating insolvency legislation that is Creditor participation index better designed for rehabilitating viable The creditor participation index has four firms and liquidating nonviable ones. components: Reorganization proceedings ƒ index Whether creditors appoint the insol - vency representative or approve, REFORMS The reorganization proceedings index has ratify or reject the appointment of the three components: The resolving insolvency indicator set ƒ insolvency representative. A score of 1 tracks changes related to the efficiency Whether the reorganization plan is is assigned if yes; 0 if no. and quality of insolvency framework voted on only by the creditors whose

129 DOING BUSINESS 2019 122 - quality such as the availability of mater every year. Depending on the impact on impact is still re fl ected on the most nity leave, paid sick leave and the equal updated indicators. the data, certain changes are classified treatment of men and women at the as reforms and listed in the summaries of workplace (figure 8.23). reforms in 2017/18 section Doing Business Third, occasionally the resolving insol - of the report in order to acknowledge the vency indicator set will acknowledge The report does not present rankings of implementation of significant changes. legislative changes with no current economies on these indicators or include Reforms are divided into two types: those impact on the data as reforms. This this indicator set in the aggregate score that make it easier to do business and - option is typically reserved to legisla or ranking on the ease of doing business. those changes that make it more difficult tive changes of exceptional magnitude to do business. The resolving insolvency such as sizeable revisions of corporate indicator set uses three criteria to recog - Doing Business 2019 presents detailed insolvency laws. nize a reform. data for the labor market regulation Doing Business website indicators on the This methodology was developed by Djankov, (http://www.doingbusiness.org) The . First, all changes to laws and regulations Hart and others (2008) and is adopted here data on labor market regulation are based that have any impact on the economy’s with several changes. The strength of insol- - on a detailed questionnaire on employ score on the strength of insolvency vency framework index was introduced in ment regulations that is completed framework index are classified as reforms. . The good practices Doing Business 2015 by local lawyers and public officials. Examples of reforms impacting the tested in this index were developed on the Employment laws and regulations as well strength of insolvency framework index Principles for basis of the World Bank’s as secondary sources are reviewed to include changes in the commencement Effective Insolvency and Creditor/Debtor ensure accuracy. standard for insolvency proceedings, the (World Bank 2011) and the United Regimes introduction of reorganization procedures Nations Commission on International Trade - for the first time and measures to regu To make the data comparable across Legislative Guide on Insolvency Law’s late post-commencement credit and its economies, several assumptions about Law (UNCITRAL 2004). priority. Changes affecting the strength the worker and the business are used. of insolvency framework index can be different in magnitude and scope and LABOR MARKET Assumptions about the worker still be considered a reform. For example, The worker: REGULATION ƒ implementing a post-commencement Is a cashier in a supermarket or credit provision and designating it with grocery store, age 19, with one year of fl Doing Business studies the exibility of 9 certain priorities represents a reform with work experience. regulation of employment, specifically as ƒ a potential 2-point increase in the index, it relates to the areas of hiring, working Is a full-time employee. ƒ while changing the commencement Doing Business hours and redundancy. Is not a member of the labor union, standard from the balance sheet test to also measures several aspects of job unless membership is mandatory. the liquidity test represents a reform with a 0.5-point increase in the index. FIGURE 8.23 What do the labor market regulation indicators cover? Second, changes that have an impact on 2. Working hours the time, cost or outcome of insolvency proceedings may also be classified as reforms depending on the magnitude of the changes. According to the resolving 3. Redundancy 1. Hiring insolvency methodology any update in legislation leading to a change of 2% or more on the score gap, except when the change is the result of automatic official fee indexation to a price or wage index (for more details, see the chapter 4. Job on the ease of doing business score and quality ease of doing business ranking) of the recovery rate indicator is classified as a reform. Changes with lower impact are not classified as reforms but their

130 123 DATA NOTES Assumptions about the business What do the labor mark et regulation indicators measure? TABLE 8.19 The business: Employment ƒ Is a limited liability company (or the Hiring equivalent in the economy). Whether fixed-term contracts are prohibited for permanent tasks ƒ Operates a supermarket or grocery store in the economy’s largest busi- Maximum duration of fixed-term contracts (in months), including renewals ness city. For 11 economies the data Maximum length of probationary period (in months) for permanent employees are also collected for the second Minimum wage for a cashier, age 19, with one year of work experience (US$/month) largest business city (table 8A.1). Ratio of minimum wage to value added per worker ƒ Has 60 employees. Working hours ƒ Is subject to collective bargaining Maximum number of working days per week agreements if such agreements cover Premium for night work, work on weekly rest day and overtime work (% of hourly pay) more than 50% of the food retail sector and apply even to firms that Whether there are restrictions on night work, weekly holiday work and overtime work are not party to them. Whether nonpregnant and nonnursing women can work the same night hours as men ƒ Abides by every law and regulation Paid annual vacation days for workers with 1 year of tenure, 5 years of tenure and 10 years of tenure but does not grant workers more Redundancy benefits than those mandated by law, Whether redundancy is allowed as grounds for termination regulation or (if applicable) collective Whether third-party notification is required for termination of a redundant worker or group of workers bargaining agreements. Whether third-party approval is required for termination of a redundant worker or group of workers Employment Whether employer is obligated to reassign or retrain workers prior to making them redundant and to follow priority rules for redundancy and reemployment Data on employment cover three areas: Redundancy cost (weeks of salary) hiring, working hours and redundancy (table 8.19). Notice requirements and severance payments due when terminating a redundant worker, expressed in weeks of salary Job quality ve questions: Data on hiring cover fi (i) whether fixed-term contracts are Whether the law mandates equal remuneration for work of equal value prohibited for permanent tasks; (ii) Whether the law mandates nondiscrimination based on gender in hiring the maximum cumulative duration of Whether the law mandates paid or unpaid maternity leave fixed-term contracts; (iii) the length of Minimum length of paid maternity leave (calendar days) the maximum probationary period (in Whether employees on maternity leave receive 100% of wages months) for permanent employees; (iv) Availability of five fully paid days of sick leave a year the minimum wage for a cashier, age 19, Whether unemployment protection is available after one year of employment with one year of work experience; and (v) the ratio of the minimum wage to the Minimum duration of contribution period (in months) required for unemployment protection 10 average value added per worker. average paid annual leave for workers (v) whether the employer needs approval Data on working hours cover nine ques - from a third party to terminate a group tions: (i) the maximum number of fi ve years of with one year of tenure, of nine redundant workers; (vi) whether working days allowed per week; (ii) the tenure and 10 years of tenure. - the law requires the employer to reas premium for night work (as a percentage sign or retrain a worker before making of hourly pay); (iii) the premium for work Data on redundancy cover eight ques- the worker redundant; (vii) whether on a weekly rest day (as a percentage of tions: (i) whether redundancy is allowed priority rules apply for redundancies; hourly pay); (iv) the premium for over - as a basis for terminating workers; (ii) and (viii) whether priority rules apply for time work (as a percentage of hourly whether the employer needs to notify reemployment. pay); (v) whether there are restrictions a third party (such as a government on night work; (vi) whether nonpregnant agency) to terminate one redundant and non-nursing women can work the worker; (iii) whether the employer needs Redundancy cost same night hours as men; (vii) whether to notify a third party to terminate a group Redundancy cost measures the cost of there are restrictions on work on a weekly of nine redundant workers; (iv) whether advance notice requirements and sever - - rest day; (viii) whether there are restric the employer needs approval from a third ance payments due when terminating a tions on overtime work; and (ix) the party to terminate one redundant worker; redundant worker, expressed in weeks

131 DOING BUSINESS 2019 124 the total tax and contribution rate to the summary. Changes in minimum wages of salary. The average value of notice power of 0.8. requirements and severance payments are re fl ected in the Doing Business data 7. he economies for which a multiple of three T times income per capita has been used are applicable to a worker with one year but not acknowledged in the reform Honduras; Mozambique; West Bank and summary. The introduction of maternity of tenure, a worker with ve years fi Gaza; and Zimbabwe. Those for which a leave or an increase in the duration of and a worker with 10 years is consid- multiple of two times income per capita has been used are Belize; Benin; Bosnia and maternity leave would be acknowledged ered. One month is recorded as 4 and Herzegovina; Burkina Faso; the Central African in the reform summary. Occasionally the 1/3 weeks. Republic; Chad; Fiji; Guatemala; Haiti, Kenya; labor market regulation indicator set will Lesotho; Madagascar; the Federated States of Micronesia; Morocco; Nepal; Nicaragua; acknowledge legislative changes in areas Job quality Niger; Nigeria; the Philippines; the Solomon not directly measured by the indicators. introduced new data on Doing Business Islands; South Africa; South Sudan; Tanzania; This option is reserved for legislative Doing Business 2019 job quality in 2015. Togo; Vanuatu; and Zambia. 8. o identify the trading partners and export T changes of exceptional magnitude, such covers the following eight questions on product for each economy, Doing Business as the introduction of a new labor code. job quality: (i) whether the law mandates ows for the most collected data on trade fl equal remuneration for work of equal recent four-year period from international databases such as the United Nations The data details on labor market regu - value; (ii) whether the law mandates Commodity Trade Statistics Database (UN lation can be found for each economy nondiscrimination based on gender in ow fl Comtrade). For economies for which trade at http://www.doingbusiness.org. The hiring; (iii) whether the law mandates data were not available, data from ancillary 11 government sources (various ministries and Doing Business website also provides paid or unpaid maternity leave; (iv) departments) and World Bank Group country historical data sets. The methodology was the minimum length of paid maternity offices were used to identify the export product 12 developed by Botero and others (2004). leave (in calendar days); (v) whether and natural trading partners. he case study assumption that the worker is T 9. does not present Doing Business 2019 employees on maternity leave receive 19 years old with one year of work experience 13 rankings of economies on the labor market 100% of wages; (vi) the availability of is considered only for the calculation of the regulation indicators. fi ve fully paid days of sick leave a year; minimum wage. For all other questions where the tenure of the worker is relevant, Doing (vii) whether a worker is eligible for Business collects data for workers with one, an unemployment protection scheme ve and 10 years of tenure. fi after one year of service; and (viii) the NOTES T 10. he average value added per worker is the ratio of an economy’s income per capita to the minimum duration of the contribution working-age population as a percentage of the period (in months) required for unem - 1. hese are Bangladesh, Brazil, China, India, T total population. ployment protection. Indonesia, Japan, Mexico, Nigeria, Pakistan, 11. If no mat ernity leave is mandated by law, Russia and the United States. parental leave is measured if applicable. 2. T his correction rate re fl ects changes that he minimum number of days that legally 12. T REFORMS exceed 5% up or down. have to be paid by the government, the 3. T The labor market regulation indicator his matter is usually regulated by stock employer or both. If no maternity leave is exchange or securities laws. Points are mandated by law, parental leave is measured set tracks changes in labor rules every awarded only to economies with more if applicable. year. Depending on the impact on the rms in their most important than 10 listed fi 13. If no mat ernity leave is mandated by law, data, certain changes are classified as stock exchange. parental leave is measured if applicable. 4. When e valuating the regime of liability for reforms and listed in the summaries company directors for a prejudicial related- reforms in 2017/18 of Doing Business party transaction, Doing Business assumes section of the report in order to acknowl - that the transaction was duly disclosed and approved. does not measure Doing Business edge the implementation of significant director liability in the event of fraud. changes. Examples include a change in efers to the network of member firms of 5. PwC r the maximum duration of fixed-term PricewaterhouseCoopers International Limited (PwCIL) or, as the context requires, individual contracts, regulation of weekly holiday member firms of the PwC network. Each - work, redundancy rules, notice require member firm is a separate legal entity and does ments and severance payments for not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to redundant workers, introduction of clients. PwCIL is not responsible or liable for unemployment insurance and laws that the acts or omissions of any of its member mandate gender nondiscrimination in firms nor can it control the exercise of their professional judgment or bind them in any way. hiring and equal remuneration for work No member firm is responsible or liable for the of equal value in line with International acts or omissions of any other member firm nor Labor Organization (ILO) standards. The can it control the exercise of another member firm’s professional judgment or bind another introduction of a minimum wage in the member firm or PwCIL in any way. private sector is recognized as a major 6. T he nonlinear score for the total tax and reform and acknowledged in the reform contribution rate is equal to the score for

132 125 DATA NOTES Cities covered in each economy by the Doing Business TABLE 8A.1 report Economy Economy City or cities Economy City or cities Economy City or cities City or cities City or cities Economy Brazzaville Kabul Indonesia Montenegro Podgorica Solomon Jakarta, Honiara Congo, Rep. Afghanistan Surabaya Islands San José Iran, Islamic Albania Tehran Tirana Casablanca Somalia Mogadishu Costa Rica Morocco Rep. Abidjan Iraq Baghdad Mozambique Côte d’Ivoire South Africa Johannesburg Algeria Algiers Maputo Croatia Zagreb Ireland Dublin Myanmar Angola South Sudan Juba Luanda Yangon St. John’s Nicosia Israel Tel Aviv Cyprus Windhoek Spain Madrid Antigua and Namibia Barbuda Kathmandu Czech Italy Rome Nepal Prague Sri Lanka Colombo Buenos Aires Argentina Republic Denmark Copenhagen Jamaica Kingston Netherlands Armenia St. Kitts and Yerevan Basseterre Amsterdam Nevis Djibouti Djibouti Ville Japan Tokyo, Osaka Sydney Auckland St. Lucia Castries Australia New Zealand Vienna Dominica Roseau Jordan Amman Nicaragua Austria St. Vincent Managua Kingstown and the Grenadines Azerbaijan Baku Santo Dominican Kazakhstan Almaty Niger Niamey Sudan Khartoum Domingo Republic Nigeria Quito Kenya Nairobi Nassau Lagos, Kano Suriname Paramaribo Bahamas, Ecuador The Egypt, Arab Bahrain Cairo Kiribati Manama Norway Oslo Sweden Stockholm Tarawa Rep. Bangladesh El Salvador San Salvador Korea, Rep. Dhaka, Oman Muscat Switzerland Zurich Seoul Chittagong Bridgetown Equatorial Damascus Malabo Kosovo Barbados Pakistan Karachi, Syrian Arab Pristina Lahore Guinea Republic Koror Minsk Kuwait Kuwait City Palau Asmara Taiwan, Eritrea Taipei Belarus China Brussels Estonia Tallinn Kyrgyz Tajikistan Bishkek Panama Panama City Belgium Dushanbe Republic Belize Eswatini Mbabane Lao PDR Vientiane Papua New Belize City Port Moresby Tanzania Dar es Salaam Guinea Benin Ethiopia Addis Ababa Latvia Cotonou Paraguay Asunción Thailand Bangkok Riga Bhutan Thimphu Fiji Suva Lebanon Beirut Peru Lima Timor-Leste Dili Bolivia La Paz Helsinki Lesotho Maseru Philippines Quezon City Togo Lomé Finland Bosnia and Paris Liberia Monrovia Poland Warsaw Tonga Nuku’alofa Sarajevo France Herzegovina Gabon Trinidad Libya Tripoli Portugal Lisbon Gaborone Botswana Port of Spain Libreville and Tobago São Paulo, Brazil Banjul Lithuania Vilnius Puerto Rico Gambia, The San Juan Tunisia Tunis Rio de Janeiro (U.S.) Brunei Bandar Seri Istanbul Georgia Tbilisi Luxembourg Luxembourg Qatar Doha Turkey Begawan Darussalam Sofia Germany Berlin Macedonia, Bulgaria Skopje Romania Bucharest Uganda Kampala FYR Burkina Ouagadougou Ghana Accra Madagascar Antananarivo Russian Kiev Moscow, Ukraine St. Petersburg Faso Federation Bujumbura Greece Athens Malawi Blantyre Rwanda Kigali United Arab Burundi Dubai Emirates Samoa Praia St. George’s Malaysia Cabo Verde Grenada Apia United London Kuala Lumpur Kingdom Cambodia Phnom Penh Guatemala Guatemala New York City, Maldives Malé San Marino San Marino United States City Los Angeles Douala Cameroon Mali Bamako São Tomé Conakry São Tomé Uruguay Montevideo Guinea and Príncipe Toronto Guinea- Tashkent Bissau Malta Valletta Saudi Canada Riyadh Uzbekistan Arabia Bissau Central Port-Vila Bangui Guyana Georgetown Marshall Vanuatu Majuro Senegal Dakar African Islands Republic Nouakchott Haiti Port-au-Prince Chad N’Djamena Serbia Belgrade Venezuela, RB Caracas Mauritania Chile Santiago Honduras Tegucigalpa Mauritius Port Louis Seychelles Victoria Vietnam Ho Chi Minh City China Shanghai, Hong Kong Hong Kong Mexico City, Ramallah Sierra Freetown West Bank Mexico SAR SAR, China Beijing and Gaza Monterrey Leone Colombia Bogotá Hungary Budapest Micronesia, Sana’a Island of Yemen, Rep. Singapore Singapore Pohnpei Fed. Sts. Comoros Moroni Iceland Reykjavik Moldova Chi ̧sin ̆au Slovak Lusaka Bratislava Zambia Republic Harare Zimbabwe Kinshasa India Mumbai, Delhi Congo, Dem. Ulaanbaatar Slovenia Ljubljana Mongolia Rep.

133 DOING BUSINESS 2019 Ease of Doing Business Score and Ease of Doing Business Ranking Doing Business report presents results for two aggregate measures: The the ease of doing business score (formerly called the distance to frontier score) and the ease of doing business ranking, which is based on the ease of doing business score. The ease of doing business ranking compares economies with one another; the ease of doing business score benchmarks economies with respect to regulatory best practice, showing Doing the absolute distance to the best regulatory performance on each indicator. When compared across years, the ease of doing Business business score shows how much the regulatory environment for local entrepreneurs in an economy has changed over time in absolute terms, while the ease of doing business ranking can show only how much the regulatory environment has changed relative to that in other economies. component indicators are normalized EASE OF DOING BUSINESS to a common unit where each of the SCORE y (except for 41 component indicators the total tax and contribution rate) is The ease of doing business score rescaled using the linear transforma - captures the gap between an economy’s )/(worst − best). In this y tion (worst − performance and a measure of best formulation the highest score represents practice across the entire sample of 41 the best regulatory performance on the topics indicators for 10 Doing Business indicator across all economies since (the labor market regulation indicators 2005 or the third year in which data are excluded). For starting a business, for the indicator were collected. Both for example, New Zealand and Georgia the best regulatory performance and have the lowest number of procedures the worst regulatory performance are required (1). New Zealand also holds the established every five years based on shortest time to start a business (0.5 data for the year in the Doing Business days), while Slovenia has the lowest cost which they are established and remain (0.0). Australia, Colombia and 115 other at that level for the five years regardless economies have no paid-in minimum of any changes in data in interim years. capital requirement (table 9.1). Thus an economy may establish the best regulatory performance for an indicator Calculation of the ease of doing even though it may not have the highest business score score in a subsequent year. Conversely, Calculating the ease of doing business an economy may score higher than score for each economy involves two the best regulatory performance if the main steps. In the first step individual

134 127 EASE OF DOING BUSINESS SCORE AND EASE OF DOING BUSINESS RANKING Which economies set the best regulatory performance? TABLE 9.1 Best Worst regulatory regulatory Economy establishing best regulatory performance Topic and indicator performance performance Starting a business a Georgia; New Zealand 1 Procedures (number) 18 b 0.5 100 New Zealand Time (days) b 200.0 Slovenia Cost (% of income per capita) 0.0 c b 0.0 400.0 Australia; Colombia Minimum capital (% of income per capita) Dealing with construction permits a 30 Procedures (number) No economy was a best performer as of May 1, 2018. 5 b 26 No economy was a best performer as of May 1, 2018. Time (days) 373 b No economy was a best performer as of May 1, 2018. 20.0 Cost (% of warehouse value) 0.0 d 15 0 Building quality control index (0–15) Luxembourg; New Zealand; United Arab Emirates Getting electricity a e 3 9 Procedures (number) Germany; Republic of Korea; United Kingdom b 18 Republic of Korea; St. Kitts and Nevis; United Arab Emirates Time (days) 248 b 8,100.0 Cost (% of income per capita) China; Japan; United Arab Emirates 0.0 f d 8 0 Reliability of supply and transparency of tariffs index (0–8) Belgium; Ireland; Malaysia Registering property a 1 13 Procedures (number) Georgia; Norway; Portugal; Sweden b Georgia; New Zealand Time (days) 1 210 b Saudi Arabia 15.0 Cost (% of property value) 0.0 d 30 0 Quality of land administration index (0–30) No economy has reached the best performance yet. Getting credit g d Strength of legal rights index (0–12) 12 0 Montenegro; Puerto Rico (U.S.) d h Depth of credit information index (0–8) 8 0 Ecuador; United Kingdom Protecting minority investors d i Extent of disclosure index (0–10) 10 0 China; Malaysia d 0 10 Cambodia; Kenya Extent of director liability index (0–10) d Ease of shareholder suits index (0–10) Djibouti 10 0 d 10 Extent of shareholder rights index (0–10) India; Kazakhstan 0 d 10 0 Extent of ownership and control index (0–10) No economy has reached the best performance yet. d Azerbaijan; France; Lithuania; Norway; Saudi Arabia; 10 Extent of corporate transparency index (0–10) 0 Taiwan, China Paying taxes b Hong Kong SAR, China; Saudi Arabia 3 63 Payments (number per year) b j 49 Singapore 696 Time (hours per year) k l b 84.0 Canada; Singapore 26.1 Total tax and contribution rate (% of profit) No economy with both CIT and VAT has reached the best 100 0 Postfiling index (0–100) performance yet. m b T ime to comply with VAT refund (hours) Croatia; Netherlands 0 50 b T ime to obtain VAT refund (weeks) Austria; Estonia 3.2 55 b n 1.5 T ime to comply with corporate income tax correction 56 Lithuania; Portugal (hours) b o ime to complete a corporate income tax correction 32 T No CIT audit Sweden; United States (weeks) (continued)

135 DOING BUSINESS 2019 128 Which economies set the best regulatory performance? TABLE 9.1 (continued) Best Worst regulatory regulatory Economy establishing best regulatory performance Topic and indicator performance performance Trading across borders Time to export p q b 170 Documentary compliance (hours) 1 Canada; Poland; Spain r q b Austria; Belgium; Hong Kong SAR, China 160 1 Border compliance (hours) Cost to export b s 400 Hungary; Luxembourg; Norway Documentary compliance (US$) 0 t b 1,060 Border compliance (US$) 0 France; Netherlands; Portugal Time to import u b q 240 Republic of Korea; Latvia; Malta Documentary compliance (hours) 1 v b q 1 Bulgaria; France; Germany Border compliance (hours) 280 Cost to import b w Documentary compliance (US$) 0 700 Iceland; Latvia; United Kingdom x b 1,200 0 Armenia; Denmark; Estonia Border compliance (US$) Enforcing contracts b 1,340 Time (days) No economy was a best performer as of May 1, 2018. 120 b 0.1 Cost (% of claim) No economy was a best performer as of May 1, 2018. 89.0 d 18 0 Quality of judicial processes index (0–18) No economy has reached the best performance yet. Resolving insolvency d 92.9 0 Recovery rate (cents on the dollar) No economy was a best performer as of May 1, 2018. d No economy has reached the best performance yet. Strength of insolvency framework index (0–16) 0 16 Source: Doing Business database. a. W orst performance is defined as the 99th percentile among all economies in the Doing Business sample. b. orst performance is defined as the 95th percentile among all economies in the Doing Business sample. W Another 115 economies also have a paid-in minimum capital requirement of 0.0. c. W orst performance is the worst value recorded. d. In 23 other economies it tak e. es no more than 3 procedures to get an electricity connection. Another 24 economies score 8 out of 8 on the reliability of supply and tr ansparency of tariffs index. f. T g. hree additional economies score 12 out of 12 on the strength of legal rights index. h. Another 40 economies score 8 out of 8 on the depth of credit information index. i. Another 11 economies score 10 out of 10 on the extent of disclosure index. Defined as the lowest time recorded among all economies in the j. sample that levy the three major taxes: profit tax, labor taxes and mandatory contributions, Doing Business and VAT or sales tax. k. Another 30 economies have a total tax and contribution r ate equal to or lower than 26.1% of profit. l. Defined as the highest total tax and contribution r ate among the 15% of economies with the lowest total tax and contribution rate in the Doing Business sample for all years included in the analysis up to and including Doing Business 2015 . VAT refund of 0 hours. m. Another eight economies also have a compliance time for n. Another 11 economies also have a compliance time for corpor ate income tax audit of no more than 1.5 hours. Another 94 economies also do not impose a corpor o. ate income tax audit. p. Another 23 economies also have a documentary compliance time to export of no more than 1 hour . q. Defined as 1 hour even though in many economies the time is less . r. Another 16 economies also have a border compliance time to export of no more than 1 hour . s. Another 17 economies also have a documentary compliance cost to export of 0.0. t. Another 16 economies also have a border compliance cost to export of 0.0. u. Another 27 economies also have a documentary compliance time to import of no more than 1 hour . v. Another 22 economies also have a border compliance time to import of no more than 1 hour . w. Another 27 economies also have a documentary compliance cost to import of 0.0. x. Another 25 economies also have a border compliance cost to import of 0.0.

136 129 EASE OF DOING BUSINESS SCORE AND EASE OF DOING BUSINESS RANKING and strength of insolvency framework number of payments to pay taxes, and economy reforms after the best regula - index) and the recovery rate (figure 9.1). the time and cost indicators), and the tory performance is set. For example, the 99th percentile is used for number of best regulatory performance for the time In the second step for calculating the procedures. No outlier is removed for to get electricity is set at 18 days. In the ease of doing business score, the scores component indicators bound by defini - Republic of Korea it now takes 13 days to obtained for individual indicators for tion or construction, including legal index get electricity while in the United Arab each economy are aggregated through - scores (such as the depth of credit infor Emirates it takes just 10 days. Although simple averaging into one score, first mation index, extent of disclosure index the two economies have different times, both economies score 100 on the time to get electricity because they have How are scores calculated for indicators? FIGURE 9.1 exceeded the threshold of 18 days. A time-and-motion topic: getting electricity For scores such as those on the strength Getting electricity of legal rights index or the quality of land score for procedures Best regulatory performance 100 administration index, the best regula- tory performance is set at the highest Best regulatory performance: possible value (although no economy 3 procedures 80 has yet reached that value in the case of the latter). For the total tax and contri - bution rate, consistent with the use of 60 a threshold in calculating the rankings on this indicator, the best regulatory performance is defined as the total tax 40 and contribution rate at the 15th percen - tile of the overall distribution for all Worst regulatory performance years included in the analysis up to and 20 (99th percentile): Doing Business 2015 including . For the 9 procedures time to pay taxes, the best regulatory performance is defined as the lowest 0 2 3 5 10 76 4 1098 time recorded among all economies Procedures (number) that levy the three major taxes: profit tax, labor taxes and mandatory contri- A legal topic: protecting minority investors butions, and value added tax (VAT) Protecting minority investors or sales tax. For the different times to score for extent of disclosure index Best regulatory performance trade across borders, the best regulatory 100 performance is defined as 1 hour even though in many economies the time is 80 less than that. In the same formulation, to mitigate the 60 - effects of extreme outliers in the distri Best regulatory butions of the rescaled data for most performance: 10 points component indicators (very few econo - 40 mies need 700 days to complete the procedures to start a business, but many need 9 days), the worst performance is 20 calculated after the removal of outliers. Worst regulatory performance: The definition of outliers is based on the 0 points - distribution for each component indi 0 2 3 4 5 6 7 8 9 10 10 cator. To simplify the process two rules Extent of disclosure index (0–10) were defined: the 95th percentile is used for the indicators with the most dispersed distributions (including minimum capital, Source: Doing Business database.

137 DOING BUSINESS 2019 130 acknowledges the need of economies to tax and contribution rate than it would for each topic and then across all 10 collect taxes from firms. have had before this approach was topics: starting a business, dealing with adopted in Doing Business 2015 (line B is construction permits, getting electricity, smaller than line A in figure 9.2). And for registering property, getting credit, Calculation of scores for economies with an extreme total tax and protecting minority investors, paying economies with two cities contribution rate (a rate that is very high taxes, trading across borders, enforcing covered relative to the average), an increase has contracts and resolving insolvency. More For each of the 11 economies in which a greater impact on both these scores complex aggregation methods—such as collects data for the Doing Business than it would have had before (line D is principal components and unobserved second largest business city as well as bigger than line C in figure 9.2). components—yield a ranking nearly the largest one, the score is calculated as identical to the simple average used the population-weighted average of the 1 The nonlinear transformation is not based by Doing Business . scores for these two cities (table 9.2). Thus Doing Business on any economic theory of an “optimal tax This is done for the aggregate ease of uses the simplest method: weighting all rate” that minimizes distortions or maxi - doing business score, the scores for each topics equally and, within each topic, mizes efficiency in an economy’s overall topic and the scores for all the compo- giving equal weight to each of the 2 tax system. Instead, it is mainly empirical nent indicators for each topic. topic components. in nature. The nonlinear transformation along with the threshold reduces the bias An economy’s score is indicated on a Variability of economies’ scores in the indicator toward economies that scale from 0 to 100, where 0 represents across topics do not need to levy significant taxes on the worst regulatory performance and Doing Business topic measures a Each companies like the stan- Doing Business 100 the best regulatory performance. different aspect of the business regu- dardized case study company because All score calculations are based on a latory environment. The scores and they raise public revenue in other ways— maximum of five decimals. However, associated rankings of an economy can for example, through taxes on foreign topic ranking calculations and the ease of vary, sometimes significantly, across companies, through taxes on sectors doing business ranking calculations are - topics. The average correlation coef other than manufacturing or from natural based on two decimals. ficient between the 10 topics included resources (all of which are outside the in the aggregate ease of doing busi - scope of the methodology). In addition, it ness score is 0.49, and the coefficients The difference between an economy’s score in any previous year and its score in illustrates the extent Doing Business 2019 FIGURE 9.2 How the nonlinear transformation affects the paying taxes score for the to which the economy has closed the gap total tax and contribution rate between its score and the best regulatory performance over time. In any given year Paying taxes score for total the score measures how far an economy tax and contribution rate Best regulatory performance is from the best regulatory performance 100 at that time. 80 B Treatment of the total tax and A contribution rate 60 The total tax and contribution rate component of the paying taxes topic 40 enters the score calculation in a different D way than any other indicator. The score C - obtained for the total tax and contribu 20 tion rate is transformed in a nonlinear fashion before it enters the score for 0 paying taxes. As a result of the nonlinear 100 20 30 40 50 60 70 80 90 100 Total tax and contribution rate (% of profit) transformation, an increase in the total tax and contribution rate has a smaller Nonlinear paying taxes score for Linear paying taxes score for total tax and contribution rate total tax and contribution rate impact on the score for the total tax and contribution rate—and therefore database. Doing Business Source: on the score for paying taxes—for Note: The nonlinear paying taxes score for the total tax and contribution rate is equal to the paying taxes score for economies with a below-average total the total tax and contribution rate to the power of 0.8.

138 131 EASE OF DOING BUSINESS SCORE AND EASE OF DOING BUSINESS RANKING for classifying changes as reforms, see Figure 2.1 in the chapter About Doing TABLE 9.2 Weights used in calculating the data notes. - illustrates the degree of vari Business the scores for economies with two ability for each economy’s performance cities covered across the different areas of business Economies improving the most Weight (%) City Economy Doing Business regulation covered by . The Doing across three or more Dhaka Bangladesh 78 figure draws attention to economies with topics in 2017/18 Business Chittagong 22 a particularly uneven performance by Doing Business 2019 uses a simple method 61 Brazil São Paulo showing, for each economy, the distance to calculate which economies improved Rio de Janeiro 39 between the average of its highest three the ease of doing business the most. First, scores and the average of its lowest three it selects the economies that in 2017/18 China 55 Shanghai across the 10 topics included in this implemented regulatory reforms making Beijing 45 year’s aggregate ease of doing business it easier to do business in three or more India Mumbai 47 score. While a relatively small distance of the 10 topics included in this year’s 53 Delhi 3 between these two averages suggests a aggregate ease of doing business score. Jakarta Indonesia 78 broadly consistent approach across the - Forty-six economies meet this crite 22 Surabaya areas of business regulation measured by rion: Afghanistan; Armenia; Azerbaijan; Doing Business , a relatively large distance Brazil; Brunei Darussalam; Burundi; Tokyo 65 Japan suggests a more uneven approach, with Chad; China; the Democratic Republic 35 Osaka greater room for improvement in some of Congo; Côte d’Ivoire; Djibouti; the Mexico Mexico City 83 areas than in others. Arab Republic of Egypt; Ethiopia; France; 17 Monterrey Gabon; Georgia; Guinea; India; Indonesia; Lagos Nigeria 77 Variation in performance across topics is Jordan; Kazakhstan; Kenya; Kosovo; the 23 Kano not at all unusual. It reflects differences Kyrgyz Republic; Lithuania; Madagascar; Karachi Pakistan 65 - in the degree of priority that govern Malaysia; Mauritania; Mauritius; ment authorities give to particular areas Morocco; Niger; Nigeria; Pakistan; the Lahore 35 of business regulation reform and in the Russian Federation; Rwanda; Saudi 70 Russian Moscow Federation ability of different government agen - Arabia; Sri Lanka; Sudan; Thailand; St. Petersburg 30 cies to deliver tangible results in their Togo; Tunisia; Turkey; the United Arab United States New York City 60 area of responsibility. Emirates; Uzbekistan; Vietnam; and Los Angeles 40 Doing Business sorts Zimbabwe. Second, these economies on the increase in their United Nations, Department of Economic and Source: Change in the score gap Social Affairs, Population Division, World Urbanization ease of doing business score over the Many topics use the magnitude of the Prospects, 2014 Revision, “File 12: Population of Urban Agglomerations with 300,000 Inhabitants or previous year and the scores for both change in their score gap to classify More in 2014, by Country, 1950–2030 (thousands),” years are calculated using the same changes as reforms. The change in the http://esa.un.org/unpd/wup/CD-ROM/Default.aspx. prior year macroeconomic data (such as income score gap is defined as (score current year prior year per capita and currency conversion – score )/(100 – score ), between 2 topics range from 0.34 where “score” is the aggregate score (between getting credit and paying rates) to remove the effect of changes in - for the specific topic. For indicators taxes) to 0.63 (between getting elec these variables. using macroeconomic variables, such tricity and trading across borders; and also between dealing with construction as the cost of starting a business as a - Selecting the economies that imple percentage of income per capita, the permits and getting electricity). These mented regulatory reforms in at least macroeconomic data for the prior year correlations suggest that economies three topics and had the biggest improve - rarely score universally well or univer - are used to control for exogenous factors ments in their ease of doing business such as a change in income per capita. topics Doing Business sally badly on scores is intended to highlight econo - For example, in 2017/18 Algeria reduced (table 9.3). mies with ongoing, broad-based reform the time to trade across borders, resulting programs. The improvement in the ease in an improvement in Algeria’s aggregate Consider the example of Portugal. Its of doing business score is used to identify score for trading across borders from aggregate ease of doing business score the top improvers because this allows a 27.74 to 38.43. This reduced the score is 76.55. It scores 90.89 for starting a focus on the absolute improvement—in gap for Algeria by (27.74 – 38.43)/(100 business and 100.00 for trading across contrast with the relative improvement – 27.74) or 14.79% on trading across borders, but only 60.00 for protecting shown by a change in rankings—that . For a Doing Business 2019 borders in minority investors and 45.00 for economies have made in their regulatory complete discussion of the methodology getting credit. environment for business.

139 DOING BUSINESS 2019 132 Correlations between economy scores for Doing Business topics TABLE 9.3 Dealing with Protecting Trading Getting Getting construction Registering minority Paying Enforcing across Resolving permits electricity credit property taxes investors insolvency contracts borders 0.49 0.58 0.49 0.38 0.42 0.54 0.40 0.40 0.51 Starting a business Dealing with 0.41 0.41 0.48 0.63 0.39 0.51 0.46 0.46 construction permits 0.56 0.51 0.63 0.57 0.52 0.45 0.50 Getting electricity 0.47 0.53 0.51 Registering property 0.53 0.51 0.61 0.56 0.42 Getting credit 0.38 0.53 0.34 Protecting minority 0.61 0.42 0.47 0.48 investors 0.55 Paying taxes 0.50 0.44 Trading across borders 0.50 0.55 Enforcing contracts 0.46 database. Doing Business Source: NOTES EASE OF DOING BUSINESS RANKING See Djank 1. ov and others 2005. Principal components and unobserved components The ease of doing business ranking methods yield a ranking nearly identical ranges from 1 to 190. The ranking of to that from the simple average method because both these methods assign roughly economies is determined by sorting the equal weights to the topics, since the aggregate ease of doing business scores, pairwise correlations among topics do not rounded to two decimals. differ much. An alternative to the simple average method is to give different weights to the topics, depending on which are considered of more or less importance in the context of a specific economy. or getting credit, indicators are weighted 2. F proportionally, according to their contribution to the total score, with a weight of 60% assigned to the strength of legal rights index and 40% to the depth of credit information index. Indicators for all other topics are assigned equal weights. hanges making it more difficult to do C 3. business are subtracted from the total number of those making it easier to do business.

140 DOING BUSINESS 2019 Summaries Doing Business of Reforms in 2017/18 and law manual with clear rules and reforms affecting all Doing Business guidelines on tax audit, and by auto - sets of indicators included in this year’s report, implemented from June 2017 to mating the submission of tax returns. May 2018. ✔ Resolving insolvency Afghanistan made resolving insolvency Reform making it easier to do business ✔ easier by improving the continuation Change making it more difficult to do ✘ of the debtor’s business during insol - business vency proceedings, introducing the reorganization procedure and granting creditors greater participation in the Afghanistan proceedings. ✔ Starting a business Afghanistan made starting a business Albania less costly by reducing the fees for ✔ Enforcing contracts business incorporation. Albania made enforcing contracts ✔ Getting credit easier by amending the code of - civil procedure to establish a simpli Afghanistan strengthened access to fied procedure for small claims and credit by enacting a new insolvency introduce time standards for certain law. Secured creditors are now given court events. absolute priority over other claims within insolvency proceedings. Algeria ✔ Protecting minority investors ✔ Getting electricity Afghanistan strengthened minor - ity investor protections by requiring Algeria made the process for getting greater disclosure of transactions an electricity connection easier by - with interested parties, easing share streamlining internal administra- holder suits by extending access to tive processes and by granting new documents and evidence during trial, licenses to vendors selling pre-built increasing shareholders’ rights and substations. role in major corporate decisions, ✔ Trading across borders clarifying ownership and control struc- tures and requiring greater corporate Algeria made importing easier by transparency. implementing joint inspections between control agencies. Paying taxes ✔ Afghanistan made paying taxes easier by adopting a new tax administration Reforms affecting the labor market regulation indicators are included here but do not affect the ranking on the ease of doing business nor the list of economies that improved the most in 2017/18.

141 DOING BUSINESS 2019 134 ✔ Getting credit Getting electricity ✔ Angola Azerbaijan strengthened access to Armenia made getting electricity Getting electricity ✔ faster by imposing new deadlines for credit by introducing a new secured transactions law and insolvency law, procedures to obtain a new electrical Angola improved the monitoring connection. which implemented a functional and regulation of power outages by secured transactions system, broad - beginning to record data for the annual Protecting minority investors ✔ ened the scope of assets that can system average interruption duration be used as collateral and provided index (SAIDI) and system average Armenia strengthened minority secured creditors with grounds for interruption frequency index (SAIFI) investor protections by increasing dis - relief and time limits during an auto- for all the outages lasting longer than closure of related-party transactions, matic stay. Azerbaijan also set up a three minutes (down from 15 minutes - clarifying ownership and control struc - unified, modern and notice-based col previously). tures and requiring greater corporate lateral registry, and improved access transparency. Trading across borders ✔ to credit information by establishing a ✔ Paying taxes new credit bureau. Angola made exporting and importing easier by implementing an automated Armenia made paying taxes easier by Protecting minority investors ✔ customs data management system, introducing administrative measures ASYCUDA (Automated System for to ease compliance with corporate Azerbaijan strengthened minority - Customs Data) World, and by upgrad income tax, value added tax and labor investor protections by increasing ing its port community system to allow tax rules. shareholders’ rights and role in major for electronic information exchange corporate decisions, clarifying owner - ✔ Enforcing contracts between different parties involved in - ship and control structures and requir the import/export process. ing greater corporate transparency. Armenia made enforcing contracts easier by introducing a simplified Paying taxes ✔ procedure for small claims and time Antigua and Barbuda standards for key court events. Azerbaijan made paying taxes easier ✔ Getting credit by introducing electronic invoicing (e-invoicing) and a unified tax return Antigua and Barbuda improved access Azerbaijan for social security contributions and to credit information through the ✔ Dealing with construction permits enhancing the online platform for filing introduction of regulations that govern corporate income tax. the licensing and functioning of credit Azerbaijan made dealing with con - bureaus in the member states of the struction permits easier by stream- ✔ Trading across borders Eastern Caribbean Currency Union lining its construction permitting (ECCU). process. Construction permits are now Azerbaijan made trading across bor - issued only by the Baku City Executive ders faster by streamlining electronic Office’s single window. customs procedures and fully imple - Argentina menting the “green corridor” gating Starting a business ✔ Getting electricity ✔ system. Azerbaijan improved the reliability of Argentina made starting a business Resolving insolvency ✔ - power supply by investing in grid infra easier by introducing an expedited structure and establishing a national process for limited liability companies Azerbaijan made resolving insolvency regulator to monitor power outages. that includes company incorporation, easier by providing for the avoidance of - Azerbaijan also made getting electric - book legalization, tax and social secu preferential transactions. ity faster and less costly by establish - rity registration. Labor market regulation ing a single window. - Azerbaijan changed regulations pertain Armenia ✔ Registering property ing to the notice period for redundancy ✔ Starting a business dismissals and severance payments. Azerbaijan made registering property easier by increasing the transparency Armenia made starting a business of the land administration system. easier by allowing voluntary value added tax registration at the time of business incorporation.

142 135 SUMMARIES OF DOING BUSINESS REFORMS IN 2017/18 enforcement of the security interest. allowing the use of in-house or third- Bahamas, The Belgium also established a unified and party engineers. Getting credit ✔ modern collateral registry. The Bahamas improved access to Brazil ✔ Resolving insolvency credit information through the intro- ✔ Starting a business duction of regulations that govern the Belgium made resolving insolvency licensing, functioning and regulation of easier by streamlining the insolvency Brazil made starting a business credit bureaus in the country. framework, expanding the scope of the easier by launching online systems law and introducing new preventive for company registration, licensing Paying taxes ✔ measures. and employment notifications. This reform applies to both Rio de Janeiro The Bahamas made paying taxes and São Paulo. easier by establishing an online system Benin for filing and paying value added tax. Getting electricity ✔ ✔ Getting credit Brazil (São Paulo) improved the reli - Benin improved access to credit Bahrain ability of electricity by modernizing information by launching a new credit ✔ Protecting minority investors its grid network and introducing new bureau. software programs allowing better Bahrain strengthened minority investor ✔ Enforcing contracts outage management and distribution protections by increasing sharehold- planning. ers’ rights and role in major decisions, Benin made enforcing contracts easier clarifying ownership and control struc - by adopting a law that regulates all ✘ Registering property tures and requiring greater corporate aspects of mediation as an alternative transparency. dispute resolution mechanism. Brazil (Rio de Janeiro) made registering property more expensive by increasing Labor market regulation Trading across borders ✔ the municipal property transfer tax. Benin amended its regulations per - Bahrain reduced the time needed to Getting credit ✔ taining to fixed-term contracts. import by deploying portal scanners and upgrading the single window Brazil improved access to credit infor - system. mation by distributing at least two Bhutan years of historical data. This reform ✔ Paying taxes applies to both Rio de Janeiro and São Belarus Paulo. Bhutan made paying taxes easier by Starting a business ✔ introducing an online platform for filing ✔ Trading across borders corporate income tax and personal Belarus made starting a business income tax returns. easier by abolishing the requirement Brazil reduced the time required for to register the book of Registry of import documentary compliance by Inspections and allowing its purchase introducing electronic certificates of Bolivia within six months of incorporation. origin. This reform applies to both Rio ✔ Starting a business de Janeiro and São Paulo. ✔ Dealing with construction permits - Bolivia made starting a business eas Labor market regulation ier by eliminating the requirement for Belarus made dealing with construc - name reservation certificates, allowing tion permits easier by streamlining the Brazil changed regulations pertaining online publication of the deeds and process at the one-stop shop. to intermittent work, work scheduling, reducing publication and registration compensation, employee termination fees at the Ministry of Labor. and union representation. This reform Belgium applies to both Rio de Janeiro and São ✔ Getting credit Paulo. Botswana Belgium strengthened access to Dealing with construction permits ✔ credit by implementing a new Pledge Brunei Darussalam Law which allowed security interest - Botswana made dealing with con ✔ Starting a business to automatically attach to the prod - struction permits easier by streamlin - ucts, proceeds and replacements of ing the inspection system through Brunei Darussalam made starting a the original asset, and out-of-court business easier by merging the name

143 DOING BUSINESS 2019 136 insolvency law and introducing new verification into the incorporation Chad preventive measures. application, expediting incorporation Starting a business ✔ - applications and eliminating the prac tice of stamping share certificates. Chad made starting a business easier Cambodia by allowing registration of the articles ✔ Getting electricity Dealing with construction permits ✔ of association at the one-stop shop. Brunei Darussalam made getting elec - Cambodia made dealing with con- ✔ Registering property tricity easier by reducing the number struction permits less costly by reduc- of procedures needed to obtain a new ing the fees to obtain a building permit. Chad made property registration connection. easier by halving the registration fee. Cameroon ✔ ✔ Enforcing contracts Getting credit Starting a business ✔ Chad made enforcing contracts easier Brunei Darussalam improved access by adopting a law that regulates all to credit information by starting to Cameroon made starting a business aspects of mediation as an alternative provide consumer and commercial easier by publishing notices of com - dispute resolution mechanism. credit scores to banks and financial pany incorporation online through the institutions. one-stop shop. Chile ✔ Enforcing contracts ✔ Starting a business Bulgaria Cameroon made enforcing contracts easier by adopting a law that regulates Chile made starting a business easier Labor market regulation - all aspects of mediation as an alterna by replacing the requirement to print Bulgaria amended its legislation to tive dispute resolution mechanism. and present sealed accounting books extend the duration of the contribu - and invoices to the Internal Revenue tion period that is required before Service with an electronic system. Canada an employee can become eligible for unemployment protection. Enforcing contracts ✔ Enforcing contracts ✔ Chile made enforcing contracts easier Canada made enforcing contracts Burkina Faso by introducing an e-system that allows easier by introducing an e-system that plaintiffs to file the initial complaint allows plaintiffs to file the initial com- Enforcing contracts ✔ electronically. plaint and pay court fees electronically. Burkina Faso made enforcing contracts Labor market regulation easier by adopting a law that regulates China all aspects of mediation as an alterna - Canada amended its legislation to Starting a business ✔ tive dispute resolution mechanism. increase paid annual leave after five and ten years of employment and China made starting a business easier introduced two days of paid sick leave. by launching online company registra - Burundi tions and by simplifying social security ✔ Starting a business registrations. This reform applies to Central African Republic both Beijing and Shanghai. Burundi made starting a business less ✔ Starting a business expensive by reducing the cost of reg- ✔ Dealing with construction permits istering a business. The Central African Republic made starting a business easier by reducing China streamlined the process of Dealing with construction permits ✔ - the paid-in minimum capital require obtaining the building permit, the ment for business incorporation. - certificate of completion and register Burundi increased the transparency ing new buildings with the real estate of dealing with construction permits ✔ Enforcing contracts registry. It also improved its building by publishing regulations related to quality control by introducing stricter construction online free of charge. The Central African Republic made - qualification requirements for profes - enforcing contracts easier by adopt ✔ Resolving insolvency sionals in the construction industry ing a law that regulates all aspects of - and improving public access to infor mediation as an alternative dispute Burundi made resolving insolvency mation. This reform applies to both resolution mechanism. easier by streamlining the insolvency Beijing and Shanghai. framework, expanding the scope of the

144 137 SUMMARIES OF DOING BUSINESS REFORMS IN 2017/18 Getting electricity ✔ Labor market regulation Comoros China made getting electricity easier Costa Rica changed regulations ✔ Enforcing contracts in Beijing and Shanghai by expanding pertaining to the content of dismissal network capacity so that all connec - - The Comoros made enforcing con letters, non-discrimination, special tions of power loads of 160kW or tracts easier by adopting a law that protection for employees and limita - less are now made directly to the low regulates all aspects of mediation tions to strikes and implemented a - voltage network, for which the connec as an alternative dispute resolution new jurisdictional structure of the tion process is carried out entirely by mechanism. labor courts. the utility free of charge. The time to obtain an electricity connection was Congo, Dem. Rep. Côte d’Ivoire also reduced thanks to the rollout of a Registering property ✔ ✔ Starting a business new mobile application for customers. Côte d’Ivoire made starting a business The Democratic Republic of Congo ✔ Registering property easier by eliminating the requirement made property registration easier by to notarize company deeds. reducing the fees for securing property China made registering property easier titles. by streamlining administrative proce- Dealing with construction permits ✔ dures and by increasing the reliability ✔ Trading across borders and transparency of its land adminis - Côte d’Ivoire strengthened construc- tration system. This reform applies to tion quality control by appointing an The Democratic Republic of Congo both Beijing and Shanghai. independent architect in the commis - reduced the time needed to export and sion tasked with reviewing building import by implementing the national Protecting minority investors ✔ permit applications. trade single window. China strengthened minority investor Getting credit ✔ ✔ Enforcing contracts protections by increasing sharehold- ers’ rights and role in major corporate Côte d’Ivoire improved access to The Democratic Republic of Congo decisions, clarifying ownership and credit information by expanding its made enforcing contracts easier control structures and requiring reim- credit bureau’s borrower coverage by adopting a law that regulates all bursement of legal expenses incurred and beginning to distribute data from aspects of mediation as an alternative by shareholders. This reform applies to utility companies. dispute resolution mechanism. both Beijing and Shanghai. ✔ Paying taxes Congo, Rep. Paying taxes ✔ Côte d’Ivoire made paying taxes Registering property ✔ - easier by introducing an online plat China made paying taxes easier by form for filing corporate income tax abolishing the business tax, allowing The Republic of Congo made prop - and value added tax returns. for joint filing and payment of all stamp erty registration easier by reducing the duties and by implementing several property transfer fee. Enforcing contracts ✔ administrative reforms to lower the ✔ Enforcing contracts compliance time. These reforms apply - Côte d’Ivoire made enforcing con to both Beijing and Shanghai. Beijing tracts easier by adopting a law that The Republic of Congo made enforc - also made paying taxes less costly by regulates all aspects of mediation ing contracts easier by adopting a law reducing the housing fund rate paid by as an alternative dispute resolution that regulates all aspects of mediation the employer. mechanism. as an alternative dispute resolution mechanism. Trading across borders ✔ Croatia China reduced the time and cost to Costa Rica ✔ Registering property export and import by implementing a ✘ Starting a business - single window, eliminating administra - Croatia made transferring prop tive charges, increasing transparency erty more efficient by digitizing its land Costa Rica made starting a business and encouraging competition. These registry. more expensive by introducing a new reforms apply to both Beijing and legal entities tax. Shanghai.

145 DOING BUSINESS 2019 138 that can be used as collateral, allowing Cyprus Ecuador future assets to be used as collateral, Protecting minority investors Paying taxes ✔ ✔ allowing general description of debts and obligations and providing secured Ecuador made paying taxes easier and Cyprus strengthened minority investor creditors with absolute priority outside less costly by discontinuing the soli - protections by increasing disclosure bankruptcy. darity contributions introduced in 2016 of related-party transactions and and by allowing employers to deduct strengthening shareholders’ rights and ✔ Protecting minority investors an additional 100% on amounts paid role in major corporate decisions. to cover private medical insurance. Djibouti strengthened minority inves- Paying taxes ✔ tor protections by requiring greater - disclosure of transactions with inter Cyprus made paying taxes easier by Egypt, Arab Rep. ested parties, strengthening remedies abolishing the immovable property tax, against interested directors, extending discontinuing the special contribution Starting a business ✔ access to corporate information before for private sector employees, private trial, increasing shareholders’ rights sector pensioners and self-employed Egypt made starting a business easier and role in major corporate decisions, - individuals, introducing an online sys by removing the requirement to - clarifying ownership and control struc tem for filing value added tax returns obtain a bank certificate and estab - tures and requiring greater corporate and value added tax refund claims and lishing a one-stop shop. transparency. reducing the sewerage duty tax rates. Getting credit ✔ Enforcing contracts ✔ Egypt strengthened access to credit by Denmark introducing the possibility of granting Djibouti made enforcing contracts ✔ Enforcing contracts a nonpossessory security right in a easier by establishing a dedicated single category of movable assets division within the first-instance court Denmark made enforcing contracts - without requiring a specific descrip to resolve commercial cases and by easier by introducing an online - tion of the collateral. Secured credi adopting a new Code of Civil Procedure platform that allows users to file the tors are now given absolute priority that regulates voluntary conciliation initial complaint electronically and over other claims, such as labor and and mediation proceedings, as well as judges and lawyers to manage cases tax, both outside and within bank - time standards for key court events. electronically. ruptcy proceedings. ✔ Resolving insolvency Djibouti Protecting minority investors ✔ Djibouti made resolving insolvency Starting a business ✔ - easier by making insolvency proceed Egypt strengthened minority investors ings more accessible for creditors and Djibouti made starting a business protections by increasing corporate granting them greater participation in easier by creating a one-stop shop for transparency. the proceedings. business start-up. ✔ Paying taxes ✔ Registering property Egypt made paying taxes easier Dominican Republic by extending value added tax cash Djibouti made property transfer easier Protecting minority investors ✔ refunds to manufacturers in case of a and more transparent by reducing reg- capital investment. istration fees, implementing strict - The Dominican Republic strength - deadlines to register the sale agree ened minority investor protections Resolving insolvency ✔ ment with the tax authority, scanning by increasing the independence of the majority of land titles for Djibouti boards of directors, requiring the roles Egypt made resolving insolvency Ville and by requiring by law that all of chairperson and president to fall - easier by introducing the reorganiza property sales transactions be regis - - on different individuals and charg tion procedure, allowing debtors to tered at the land registry to become ing potential acquirers of significant initiate the reorganization procedure opposable to third parties. stakes to make their acquisitions and granting creditors greater partici- through a public offering. pation in the proceedings. ✔ Getting credit Djibouti strengthened access to credit by broadening the scope of assets

146 139 REFORMS IN 2017/18 SUMMARIES OF DOING BUSINESS Getting electricity ✔ Finland El Salvador Gabon improved the monitoring and Dealing with construction permits ✔ Paying taxes ✔ regulation of power outages by begin- ning to record data for the annual El Salvador made dealing with con- Finland made paying taxes less costly system average interruption duration by reducing the labor contribution struction permits less time-consuming index (SAIDI) and system average rates paid by employers and by intro by eliminating the requirement to - interruption frequency index (SAIFI). obtain a feasibility study for rainwater ducing a new and more efficient online Gabon also improved the regulatory drainage for land plots under 1,000 portal, MyTax, for filing corporate framework of the electricity sector as square meters. income tax returns. the national regulator now monitors Trading across borders ✔ - the utility’s performance on the reli France ability of supply. El Salvador made exporting easier by Getting electricity ✔ introducing an intermediate customs Registering property ✔ post for shipments transiting through France made getting electricity easier the Anguiatú land border. Gabon made registering property by streamlining the application process easier by increasing the transparency and reducing the time for the external of the land registry. works. Equatorial Guinea Registering property ✔ Paying taxes ✘ ✔ Enforcing contracts Equatorial Guinea made enforcing France made registering property - Gabon made paying taxes more dif contracts easier by adopting a law ficult by levying two new taxes: the easier by implementing an electronic that regulates all aspects of mediation special solidarity contribution tax and registration system and improving as an alternative dispute resolution efficiency at the land registry. the tax for professional training. mechanism. ✔ Paying taxes Enforcing contracts ✔ Gabon made enforcing contracts eas France made paying taxes less costly - Eswatini by decreasing the corporate income ier by adopting a law that regulates all ✔ Registering property aspects of mediation as an alternative tax rate, increasing the rate of the dispute resolution mechanism. competitiveness and employment tax Eswatini made registering property credit (CICE) and decreasing the rates easier by increasing the transparency - for the territorial economic contribu of the land registry. - tion as well as social security contribu tions paid by employers. Georgia Ethiopia Labor market regulation Starting a business Starting a business ✔ ✔ Georgia made starting a business France amended its labor code to Ethiopia made starting a business easier by allowing voluntary value - modify the amount of severance pay easier by removing the need to obtain added tax registration at the time of ments for employees after one, five a certificate of competence for certain business incorporation. and ten years of employment. types of businesses. Paying taxes ✔ Dealing with construction permits ✔ Georgia made paying taxes easier by Gabon - levying income tax on distributed prof Ethiopia made the process of obtaining Starting a business ✔ its rather than on taxable profits. At construction permits faster by reduc- the same time, Georgia made paying ing the time needed to obtain planning Gabon made starting a business easi - taxes more difficult by requiring value consent. er by publishing a notice of incorpora- added tax to be imposed on advance tion with the company registration at payments for goods and services. Enforcing contracts ✔ the one-stop shop. Enforcing contracts ✔ Ethiopia made enforcing contracts ✔ Dealing with construction permits Georgia made enforcing contracts easier by establishing specialized easier by introducing random and benches to resolve commercial cases. Gabon made dealing with construc - automatic assignment of cases to tion permits safer and less expensive judges throughout the courts. by implementing decennial liability and by reducing the cost to obtain a fire safety approval.

147 DOING BUSINESS 2019 140 Dealing with construction permits ✔ task force to undertake the trenching, Ghana excavation and reinstatement of the - Guinea made dealing with construc ✔ Dealing with construction permits underground cables. tion permits less expensive and time- Ghana strengthened construction consuming by reducing the cost and quality control by imposing stricter the time needed to obtain a building Hungary - qualification requirements for pro permit. fessionals in charge of technical Paying taxes ✔ inspections. Registering property ✔ Hungary made paying taxes less Trading across borders ✔ Guinea made property registration costly by decreasing the social tax Ghana made importing easier by - easier by reducing the property trans rate paid by the employer and by implementing a paperless customs fer fee. reducing the corporate income tax clearance processing system. rate to a flat rate. Trading across borders ✔ Greece Guinea made importing easier by India eliminating pre-shipment inspections Dealing with construction permits ✔ Starting a business ✔ for imports. Greece streamlined its construction India made starting a business easier permitting process as building owners Enforcing contracts ✔ - by fully integrating multiple applica must now use their in-house engineer tion forms into a general incorporation Guinea made enforcing contracts for the intermediate inspection, as form. India also replaced the value easier by adopting a law that regulates opposed to the municipality. added tax with the GST (Goods and - all aspects of mediation as an alterna ✘ Registering property - Services Tax) for which the registra tive dispute resolution mechanism. Greece made registering property more tion process is faster. These reforms burdensome by requiring a property apply to both Delhi and Mumbai. At Guinea-Bissau tax certificate for registering a property the same time, Mumbai abolished the transfer. ✔ Enforcing contracts practice of site inspections for register - ing companies under the Shops and - Guinea-Bissau made enforcing con Grenada Establishments Act. tracts easier by adopting a law that ✔ Getting credit regulates all aspects of mediation Dealing with construction permits ✔ as an alternative dispute resolution mechanism. India streamlined the process of Grenada improved access to credit obtaining a building permit and made information through the introduction it faster and less expensive to obtain a of regulations that govern the licens - Haiti construction permit. It also improved ing and functioning of credit bureaus ✔ Getting credit building quality control by introduc- in the member states of the Eastern ing decennial liability and insurance. Caribbean Currency Union (ECCU). - Haiti improved access to credit infor This reform applies to both Delhi and mation by launching a new credit Mumbai. registry. Guatemala Labor market regulation Getting electricity ✔ Starting a business ✔ Haiti amended its legislation pertain - The Delhi Electricity Regulatory Guatemala made starting a business ing to the 24-hour weekly rest period, Commission reduced charges for - easier by reducing the minimum capi low voltage connections. Getting weekly holiday and night work premi- tal requirement, reducing the registra - electricity was also made easier in ums, other work-related distribution of tion fees and streamlining registration Delhi through a reduction in the time hours, services and minimum working procedures. for the utility to carry out the external age requirements. connection works. Guinea Hong Kong SAR, China Getting credit ✔ ✔ Starting a business Getting electricity ✔ India strengthened access to credit Guinea made starting a business by amending its insolvency law. easier by allowing registration with the - Hong Kong SAR, China, made the pro Secured creditors are now given labor promotion agency at the one- - cess of getting an electricity connec absolute priority over other claims stop shop. tion faster by establishing a specialized

148 141 REFORMS IN 2017/18 SUMMARIES OF DOING BUSINESS within insolvency proceedings. This retailers and utility companies. This Italy reform applies to both Jakarta and reform applies to both Delhi and Paying taxes ✘ Mumbai. Surabaya. Italy made paying taxes more costly by ✔ Paying taxes introducing lower exemptions on social Iran, Islamic Rep. - security contributions paid by employ India made paying taxes easier by Paying taxes ✔ ers for employees hired between replacing many indirect taxes with January 1, 2016, and December 12, a single indirect tax, the GST, for the The Islamic Republic of Iran made 2016. entire country. India also made paying paying taxes easier by introducing an taxes less costly by reducing the corpo - online system for filing social security rate income tax rate and the employees’ contributions, allowing the possibility Jamaica provident funds scheme rate paid by of filing value added tax refund claims ✔ Getting credit the employer. This reform applies to online, amending corporate income tax both Delhi and Mumbai. returns online and making payment of Jamaica improved access to credit additional tax liability at the bank. information by distributing data from ✔ Trading across borders utility companies. Trading across borders ✔ India reduced the time and cost to export and import through various The Islamic Republic of Iran made Jordan initiatives, including the implementa - exporting and importing easier by ✔ Getting credit tion of electronic sealing of containers, enhancing the national trade single the upgrading of port infrastructure window. Jordan improved access to credit and allowing electronic submission information by reporting data on credit of supporting documents with digital payments from a retailer. Ireland signatures. This reform applies to both ✔ Protecting minority investors Registering property ✘ Delhi and Mumbai. - Jordan strengthened minority inves Ireland made property registration Labor market regulation tor protections by extending access more costly by increasing the stamp to evidence before trial, increasing duty on a non-residential property India (Mumbai) changed regulations shareholders’ rights and role in major transfer. pertaining to weekly holiday work, corporate decisions, clarifying owner - overtime hours and paid annual leave. ✔ Getting credit ship and control structures and requir - ing greater corporate transparency. Ireland improved access to credit infor - Indonesia mation by establishing a new credit ✔ Paying taxes Starting a business ✔ registry. Jordan made paying taxes easier by Indonesia made starting a business Enforcing contracts ✔ implementing an online system for easier by combining different social filing and payment of general sales tax. security registrations and by reducing Ireland made enforcing contracts notarization fees in both Jakarta and easier by introducing a consolidated ✔ Enforcing contracts Surabaya. Also, different registrations law on voluntary mediation. were combined at the one-stop shop Jordan made enforcing contracts easi- in Surabaya. er by introducing a system that allows Israel users to pay court fees electronically. ✔ Registering property Registering property ✔ Indonesia made registering property Israel made registering property easier Kazakhstan easier by reducing the time to solve by reducing the time needed to obtain Starting a business ✔ land disputes at the first-instance a municipal tax clearance certificate court and enhanced the transparency and by increasing the transparency of Kazakhstan made starting a business of the land registry. This reform applies the land registry and cadaster. easier by reducing the time required for to both Jakarta and Surabaya. value added tax registration. Labor market regulation ✔ Trading across borders Getting credit ✔ Israel changed regulations pertaining to working hours per week, overtime Kazakhstan made trading across Indonesia improved access to credit hours and maternity leave. information by distributing data from borders easier by introducing an

149 DOING BUSINESS 2019 142 ✔ Trading across borders - electronic customs declaration sys proceedings and granting creditors greater participation in the insolvency tem, ASTANA-1 IS, as well as reducing The Kyrgyz Republic made trading proceedings. customs administrative fees. - across borders easier by streamlin ing exports within the Eurasian Enforcing contracts ✔ Economic Union. Kosovo Kazakhstan made enforcing contracts ✔ Enforcing contracts Dealing with construction permits ✔ easier by making judgments rendered at all levels in commercial cases pub - The Kyrgyz Republic made enforcing Kosovo made dealing with construc - licly available and publishing perfor - contracts easier by introducing a pre- tion permits easier by streamlining the mance measurement reports on local trial conference as part of the case inspection system through the use of commercial courts. management techniques in court an in-house engineer. and adopting a consolidated law on Paying taxes ✔ voluntary mediation. Kenya Kosovo made paying taxes easier Resolving insolvency ✔ ✔ Registering property by allowing taxpayers to claim value added tax refund on the standard value The Kyrgyz Republic made resolving Kenya made registering property easier added tax return form, by streamlining insolvency easier by facilitating the by introducing an online system to clear the value added tax audit process and continuation of the debtor’s business land rent rates. by eliminating the requirement to during insolvency proceedings and Getting credit ✔ report purchases over €500 ($570). granting creditors greater access to information on the debtor’s financial Kenya strengthened access to credit by ✔ Trading across borders situation during the proceedings. - introducing a new law on secured trans actions that created a unified secured Kosovo made exporting easier by - transactions legal framework and estab streamlining customs clearance at the Lao PDR lishing a new unified and notice-based border. ✔ Trading across borders collateral registry. Lao PDR made trading across borders Kuwait ✔ Protecting minority investors faster by streamlining the customs Starting a business ✔ clearance process. Kenya strengthened minority investor protections by increasing disclosure Kuwait made starting a business easier requirements, regulating the approval by eliminating the paid-in minimum Latvia of transactions with interested parties capital requirement. Registering property ✘ and increasing available remedies if said ✔ Protecting minority investors transactions are prejudicial, increasing Latvia made property transfer less shareholders’ rights and role in major Kuwait strengthened minority investor transparent by not publishing sta- corporate decisions and requiring protections by requiring an indepen - tistical data on the number of land greater corporate transparency. dent review of related-party transac disputes for 2017. - tions and clarifying ownership and Paying taxes ✔ control structures. Lesotho Kenya made paying taxes easier by Trading across borders ✔ merging all permits into a single unified Kyrgyz Republic business permit and by simplifying the Lesotho made exporting and importing ✔ Protecting minority investors value added tax schedule on its iTax easier by implementing an automated platform. customs data management system, The Kyrgyz Republic strengthened ASYCUDA. minority investor protections by Resolving insolvency ✔ increasing shareholders’ rights and role in major corporate decisions, Kenya made resolving insolvency easier Lithuania strengthening the independence of by facilitating the continuation of the Protecting minority investors ✔ boards of directors and barring debtor’s business during insolvency subsidiaries from acquiring shares proceedings, providing for equal treat - Lithuania strengthened minority issued by their parent companies. ment of creditors in reorganization investor protections by introducing

150 143 SUMMARIES OF REFORMS IN 2017/18 DOING BUSINESS greater requirements for the disclo establishment, licensing and function inspection system. Malaysia also - - ing of credit bureaus. sure of the compensation of directors made importing and exporting easier and other high-ranking officers on an by improving infrastructure and the Enforcing contracts ✔ individual basis. port operation system at Port Klang. Madagascar made enforcing contracts ✔ Resolving insolvency Paying taxes ✔ easier by introducing an automated system that randomly assigns cases to Malaysia made resolving insolvency Lithuania made paying taxes easier by judges and that allows judges to man - merging the filing and payment of two easier by introducing the reorganiza - age cases electronically. tion procedure. labor contributions and issuing pre- populated value added tax returns. Labor market regulation Malawi ✔ Trading across borders Malaysia changed regulations pertaining ✔ Registering property to unemployment protection. Lithuania made exporting easier by enhancing its automated customs data Malawi made property transfer management system. faster by decentralizing the consent to Mali transfer property to local government Labor market regulation ✔ Enforcing contracts authorities. - Lithuania changed legislation on work Mali made enforcing contracts easier Enforcing contracts ✔ ing hours, paid annual leave, as well as by adopting a law that regulates all notice period and severance payments aspects of mediation as an alternative Malawi made enforcing contracts in case of redundancy. dispute resolution mechanism. easier by adopting new civil procedure rules regulating time standards for key Labor market regulation court events. Luxembourg Mali introduced language guarantee- Labor market regulation ing equal remuneration for work of Malaysia equal value in the legislation. Luxembourg increased post-natal ✔ Starting a business maternity leave, amended statutory provisions for leave for personal reasons Malaysia made starting a business Malta and family leave, introduced state co- easier by introducing an online reg - Dealing with construction permits ✔ financing of professional training and istration system for the goods and amended pre-retirement rules. service tax. Malta made dealing with construction permits easier by streamlining the Dealing with construction permits ✔ process of obtaining a building permit. Macedonia, FYR On the other hand, Malta increased Malaysia streamlined the process of Dealing with construction permits ✔ the time to issue a building permit. obtaining a building permit and made it faster to obtain construction permits. - FYR Macedonia made the construc tion permitting process less costly by Marshall Islands ✔ Getting electricity reducing the land development fees. Paying taxes ✘ - Malaysia made getting electric ity easier by eliminating the site The Marshall Islands made paying Madagascar visit for new commercial electricity taxes more costly by raising the retire - ✔ Dealing with construction permits connections. ment fund rate paid by employers. Madagascar strengthened construc- ✔ Registering property tion quality control by appointing an Mauritania - independent architect in the commis Malaysia made property transfer ✔ Starting a business sion tasked with reviewing building simpler by implementing an online permit applications and reduced the single window platform to carry out Mauritania made starting a business cost to obtain a building permit. property searches. less costly by eliminating the company deed registration fees. Getting credit Trading across borders ✔ ✔ ✔ Dealing with construction permits Madagascar improved access to Malaysia made trading across bor - ders easier by introducing electronic credit information through the intro- Mauritania increased the transparency duction of a new law governing the forms and by enhancing its risk-based of dealing with construction permits

151 DOING BUSINESS 2019 144 to publish the company’s deed. At the by publishing regulations related to Moldova construction online free of charge. - same time, Mozambique made start ✔ Starting a business ing a business less costly by replacing ✔ Getting credit the business license with a notification Moldova made starting a business of activity for some sectors. easier by removing the requirement to Mauritania improved its credit infor - file separately for registration with the mation system by guaranteeing by ✔ Getting electricity national statistics bureau. law borrowers’ right to inspect their personal data. Mozambique improved the monitor - ing and regulation of power outages Mongolia by beginning to record data for the Mauritius Enforcing contracts ✔ annual system average interruption ✔ Starting a business duration index (SAIDI) and system Mongolia made enforcing contracts average interruption frequency index easier by reducing the fees that are Mauritius made starting a business - (SAIFI). Mozambique also made get advanced by the plaintiff to enforce a easier by linking the database of the ting electricity faster by imposing new judgment. business registry with the database deadlines for connection procedures of the social security office. Mauritius and streamlining processes. also eliminated the requirement for Morocco married women to provide a marriage Paying taxes ✔ Starting a business ✔ certificate when applying for a national identity card. Mozambique made paying taxes Morocco made starting a business less easier by reducing the mandatory costly by abolishing the deed registra - ✔ Registering property carry-forward period before taxpayers tion fee and stamp duties. can request a value added tax cash Mauritius made registering property Registering property ✔ refund to four months (from 12 months easier by increasing the transparency previously). of the land administration system. Morocco made registering property easier by increasing the transparen- ✔ Protecting minority investors Trading across borders ✔ cy of the land registry and cadaster and by streamlining administrative - Mauritius strengthened minority inves Mozambique made trading across procedures. tor protections by clarifying ownership borders easier by streamlining the submission of documents for imports, and control structures and requiring ✔ Trading across borders greater corporate transparency. improving infrastructure at the Ressano Garcia border crossing and simplifying Morocco made exporting and import - Paying taxes ✔ export documentary compliance. - ing easier by implementing a paper less customs clearance system and Mauritius made paying taxes easier by Labor market regulation improving infrastructure at the port of introducing an expedited processing Tangier. system for value added tax refunds Mozambique introduced a new social and by upgrading its online platform security regulation. Resolving insolvency ✔ to allow for the online submission of invoices and amended corporate Morocco made resolving insolvency Myanmar income tax returns. easier by facilitating the commence - ✔ Starting a business ment of proceedings, encouraging the ✔ Trading across borders continuation of the debtor’s business Myanmar made starting a business during insolvency proceedings and by Mauritius made exporting easier by less expensive by reducing the regis- making insolvency proceedings more tration fee. introducing a risk-based management accessible for creditors and grant - system. ✔ Getting electricity ing them greater participation in the proceedings. Myanmar improved the monitoring Mexico and regulation of power outages by Dealing with construction permits ✘ beginning to record data for the annual Mozambique system average interruption duration Mexico (Mexico City) made deal - ✘ Starting a business index (SAIDI) and system average ing with construction permits more interruption frequency index (SAIFI). expensive by amending the tax code. Mozambique made starting a business Myanmar also made getting electricity more expensive by increasing the cost

152 145 DOING BUSINESS SUMMARIES OF REFORMS IN 2017/18 ✔ Getting electricity operations at Apapa Port. This reform more transparent by publishing elec - tricity tariffs online. applies to both Kano and Lagos. Niger made the process of getting an electricity connection faster by increas - Enforcing contracts ✔ - ing the stock of material the utility car Namibia ries and by allowing the internal wiring - Nigeria (Lagos) made enforcing con Enforcing contracts ✔ certificate of conformity to be obtained tracts easier by issuing new rules of at the same time as the external con- civil procedure for small claims courts Namibia made enforcing contracts nection works. which limit adjournments to unfore - easier by making performance mea - seen and exceptional circumstances. surement reports publicly available to ✔ Registering property show the court’s performance and the progress of cases through the court. Niger made registering property faster Norway - by decreasing the time needed to trans Labor market regulation fer and register property. Nepal Norway amended its legislation to Enforcing contracts ✔ ✘ Paying taxes allow for night work until 11:00 PM if an employer and employee enter into a Niger made enforcing contracts easier - Nepal made paying taxes more dif written agreement. by introducing a simplified procedure ficult by introducing a new labor for small claims, rules limiting adjourn - contribution (gratuity contribution), ments and mediation as an alternative - medical insurance and accident insur Oman dispute resolution mechanism. ance paid by the employer. ✘ Paying taxes Labor market regulation Oman made paying taxes more costly Nigeria Nepal changed regulations pertaining to by increasing the corporate income Starting a business ✔ tax rate and by eliminating the tax fixed-term contracts, probationary peri - ods, working hours, paid maternity and exemption on the first 30,000 Omani Nigeria made starting a business rials ($78,000) of taxable profits. sick leave, night work for women, third- easier by reducing the time needed to party approval in case of redundancy register a company at the corporate and unemployment protection. affairs commission and introducing an Pakistan online platform to pay stamp duty. This Starting a business ✔ reform applies to both Kano and Lagos. New Zealand Pakistan made starting a business ✔ Getting electricity Starting a business ✔ easier by enhancing the online one- stop registration system, replacing Nigeria made getting electricity easier New Zealand made starting a busi - several forms for incorporation with - by requiring that the distribution com ness less expensive by reducing the a single application and establishing panies obtain the right of way on behalf fees for name search and company information exchange between the of the customers and by turning on the incorporation. registry and the tax authority. This electricity once the meter is installed. change applies to both Karachi and This reform applies to both Kano and Nicaragua Lahore. Lagos. Getting credit ✔ Registering property ✔ Nicaragua strengthened access to ✘ Registering property - credit by establishing a unified col Pakistan (Lahore) made registering lateral registry. property easier by streamlining and Nigeria (Kano) made property registra - tion less transparent by no longer pub- automating administrative procedures lishing online the fee schedule and the and by increasing the transpar - Niger ency of its land administration system. list of documents necessary to register ✔ Dealing with construction permits Pakistan (Karachi) made registering a property. property easier by increasing the Niger made dealing with construction ✔ Trading across borders transparency of the land registry. permits less costly by reducing the fees associated with obtaining a build - Nigeria reduced the time needed to ✔ Resolving insolvency ing permit. export and import by implementing - joint inspections, the NICIS2 elec Pakistan made resolving insolvency tronic system and around-the-clock easier by introducing the reorganization

153 DOING BUSINESS 2019 146 Trading across borders ✔ procedure and improving the con- Poland tinuation of the debtor’s business during Paraguay reduced the time needed ✘ Paying taxes insolvency proceedings. This change - to import by introducing an elec applies to both Karachi and Lahore. tronic signature for import customs Poland made paying taxes more clearance. complicated by requiring the monthly reporting of value added tax returns, Panama extending the list of goods and services Peru ✔ Paying taxes subject to a reverse charge mechanism ✔ Starting a business - and introducing new reporting obliga Panama made paying taxes easier by tions for SAF-T files. establishing an online system for filing Peru made starting a business faster and payment of corporate income tax, by reducing the time required to obtain ✔ Enforcing contracts value added tax and real estate tax. the municipal license and building safety technical inspection from the Poland made enforcing contracts district council. easier by introducing an automated Papua New Guinea system to assign cases to judges Dealing with construction permits ✔ ✔ Getting electricity randomly. Peru strengthened construction quality Papua New Guinea improved the reli- control by imposing stricter qualification ability of the electricity supply in Port Portugal requirements for professionals in charge Moresby by increasing power genera- Registering property ✘ of technical inspections. tion capacity. Portugal made registering prop - Registering property ✔ erty more burdensome by reducing the Philippines number of officials that can register Papua New Guinea made registering ✔ Starting a business property transfers. property easier by increasing the - transparency of the land administra The Philippines made starting a tion system. business easier by simplifying tax Puerto Rico (U.S.) registration and business licensing Protecting minority investors ✔ Enforcing contracts ✔ processes. At the same time, the Philippines increased tax registration Papua New Guinea strengthened Puerto Rico (territory of the United costs. minority investor protections by States) made enforcing contracts introducing greater requirements easier by introducing a web-based Dealing with construction permits ✔ - for the disclosure of direct and indi platform that offers lawyers a single rect beneficial ownership stakes in access point for electronic filing of - The Philippines improved risk manage publicly-listed companies. the initial complaint and for electronic ment practices in the construction sec - payment of court fees. The system also tor, with latent defect liability insurance ✘ Paying taxes allows lawyers and judges to manage now commonly obtained by industry case files throughout the litigation players. Papua New Guinea made paying process. taxes more difficult by mandating Protecting minority investors ✔ bi-weekly reporting and payment of contributions paid by the employer to The Philippines strengthened minor - Qatar the superannuation fund. ity investor protections by increasing ✔ Starting a business shareholders’ rights and role in major corporate decisions and clarifying own - Qatar made starting a business easier Paraguay ership and control structures. by removing the requirement to open a Getting electricity ✔ bank account to deposit the minimum ✘ Trading across borders capital. - Paraguay increased the reliabil The Philippines made trading across ity of power supply by rolling out Getting credit ✔ a Supervisory Control and Data borders more difficult by increasing - Acquisition (SCADA) automatic the number of inspections for import Qatar improved access to credit infor - ing, thereby increasing the average energy management system for the mation by guaranteeing borrowers time for border compliance. monitoring of outages. the legal right to inspect their credit data from the credit registry.

154 147 DOING BUSINESS SUMMARIES OF REFORMS IN 2017/18 ✔ Getting electricity San Marino Romania Rwanda improved the monitoring Registering property ✘ ✘ Starting a business and regulation of power outages by beginning to record data for the annual - San Marino made registering prop Romania made starting a business system average interruption duration erty more expensive by increasing the more cumbersome by introducing index (SAIDI) and system average property transfer tax. fiscal risk assessment criteria for interruption frequency index (SAIFI). value added tax applications, thereby ✔ Getting credit Rwanda also made getting electricity increasing the time required to register - more time and cost efficient by hav as a value added tax payer. San Marino improved access to ing the utility supply all connection credit information by launching a material. new credit registry. Russian Federation ✔ Registering property Dealing with construction permits ✔ São Tomé and Príncipe Rwanda made registering property Russia made the process of obtaining Enforcing contracts ✔ easier by improving the land dispute a building permit faster by reducing resolution mechanisms of the land the time needed to obtain construc- São Tomé and Príncipe made enforc - administration system. tion and occupancy permits. Russia ing contracts easier by adopting a also increased quality control during new code of procedural costs that ✔ Getting credit construction by introducing risk-based simplified and reduced court fees. inspections. This reform applies to Rwanda strengthened access to credit both Moscow and St. Petersburg. by enacting a new insolvency law. An Saudi Arabia automatic stay is now imposed on ✔ Getting electricity ✔ Getting electricity secured creditors for a period of six months and the law provides for relief Russia made getting electricity faster Saudi Arabia improved the reliability from such stay when the assets are by imposing new deadlines for con - of electricity supply by imposing a perishable or are not needed for the nection procedures and by upgrading - new compensation scheme to incen reorganization of the company. the utility’s single window as well as its tivize the utility to improve service internal processes. Getting electricity reliability. Trading across borders ✔ was also made cheaper by reducing ✔ Protecting minority investors the costs to obtain a connection to the Rwanda reduced the time required electric network. This reform applies to - to export and import by implement Saudi Arabia strengthened minority both Moscow and St. Petersburg. ing the Single Customs Territory, investor protections by providing clear risk-based inspections and online rules for the liability of directors and ✔ Paying taxes certificates. increasing the role of shareholders in major decisions. Russia made paying taxes less costly by ✔ Enforcing contracts allowing a higher tax depreciation rate ✔ Trading across borders for fixed assets. This reform applies to Rwanda made enforcing contracts both Moscow and St. Petersburg. easier by issuing new rules of civil Saudi Arabia made exporting and procedure which limit adjournments importing easier by launching a new ✔ Trading across borders to unforeseen and exceptional electronic single window and extend - circumstances. ing the hours of operation of customs Russia made trading across borders at the Jeddah port. easier by prioritizing online customs Resolving insolvency ✔ clearance and introducing shortened ✔ Enforcing contracts - time limits for its automated comple Rwanda made resolving insolvency tion. This reform applies to both - easier by making insolvency proceed Saudi Arabia made enforcing contracts Moscow and St. Petersburg. ings more accessible for creditors and easier by introducing an e-system that granting them greater participation in allows plaintiffs to file the initial com- the proceedings. Rwanda also made plaint electronically and amending the Rwanda resolving insolvency more difficult civil procedure rules to introduce time Starting a business ✔ by hindering the continuation of the standards for key court events. debtor’s business during insolvency Rwanda made starting a business less proceedings. costly by replacing electronic billing machines with free software for value added tax invoices.

155 DOING BUSINESS 2019 148 Sudan South Africa Senegal Registering property ✔ ✔ Starting a business Starting a business ✔ South Africa made starting a business Senegal made registering property Sudan made starting a business easier easier by reducing the time for online easier by decreasing the time needed by removing the requirement to have a business registration. to transfer and register property. site inspection to obtain the certificate of incorporation. ✔ ✔ Enforcing contracts Getting electricity Getting credit ✔ South Africa improved the monitoring Senegal made enforcing contracts and regulation of power outages by easier by adopting a law that regulates Sudan strengthened access to credit by - all aspects of mediation as an alterna beginning to record data for the annual amending its companies act. An auto - system average interruption duration tive dispute resolution mechanism. matic stay is now imposed on secured index (SAIDI) and system average creditors for a period of 30 days and interruption frequency index (SAIFI). the law provides for relief from such Serbia stay when the assets are perishable or ✔ Dealing with construction permits are not needed for the reorganization South Sudan of the company. Secured creditors are Serbia made dealing with construction Labor market regulation now given absolute priority over other - permits faster by introducing an elec claims, such as labor and tax, within tronic application system. South Sudan introduced a new Labor bankruptcy proceedings. - Act which modified the rules on work ing hours, leave benefits and severance Singapore Protecting minority investors ✔ payments. Starting a business ✔ Sudan strengthened minority inves- tor protections by easing access to Singapore made starting a business Sri Lanka evidence in shareholder litigation and easier by abolishing the corporate ✔ Dealing with construction permits increasing rights and role of sharehold - seals. ers in private companies. Sri Lanka made dealing with construc- Enforcing contracts ✔ tion permits easier by launching a sin- ✔ Enforcing contracts gle window, increasing transparency Singapore made enforcing contracts by providing online access to building easier by introducing a consolidated Sudan made enforcing contracts easier - regulations and reducing the process law on voluntary mediation. by recognizing voluntary conciliation ing times to issue several building and mediation as ways of resolving certificates. commercial disputes. Slovak Republic ✔ Resolving insolvency ✔ Registering property ✔ Enforcing contracts Sudan made resolving insolvency Sri Lanka made property registra- The Slovak Republic made enforcing tion easier by implementing a single easier by facilitating the continuation contracts easier by implementing window to streamline the process of the debtor’s business during insol - electronic service of process. vency proceedings, providing for the of delivering several certificates and increased transparency by providing rejection of undervalued transactions Slovenia online access to cadastral information. and overly burdensome contracts and Starting a business ✘ granting creditors greater participation ✔ Paying taxes in the proceedings. Slovenia made starting a business more complicated by requiring Sri Lanka made paying taxes easier by introducing online systems for filing companies to report their beneficial Taiwan, China ownership separately from business corporate income tax, value added tax Dealing with construction permits ✔ incorporation. and employee trust fund contributions. Taiwan, China, made dealing with con - Enforcing contracts Enforcing contracts ✔ ✔ struction permits less time-consuming by improving the efficiency of its single Sri Lanka made enforcing contracts Slovenia made enforcing contracts window counter in the Taipei City - - easier by introducing a pre-trial confer easier by introducing a pre-trial confer Construction Management Office. ence as part of the case management ence as part of the case management techniques used in court. techniques used in court.

156 149 REFORMS IN 2017/18 SUMMARIES OF DOING BUSINESS ✔ Protecting minority investors ✔ Paying taxes Timor-Leste Togo made paying taxes easier by Taiwan, China, strengthened minority ✔ Starting a business investor protections by enhancing own introducing an online platform for - ership and control structures in listed filing corporate income tax and Timor-Leste made starting a business value-added tax. Togo also made companies. less costly by reducing the paid-in paying taxes less costly by lowering minimum capital requirement. the corporate income tax rate. Tajikistan To g o Enforcing contracts ✔ ✔ Trading across borders Starting a business ✔ Togo made enforcing contracts easier - Tajikistan made trading across bor by adopting a law that regulates all ders easier by streamlining customs Togo made starting a business easier by aspects of mediation as an alternative clearance with Uzbekistan through - reducing the minimum capital require dispute resolution mechanism. the Simplified Customs Corridor ment, introducing an online platform for agreement. company name search, reducing the reg - istration fees and allowing entrepreneurs Trinidad and Tobago to pay the fees directly at the one-stop Tanzania ✘ Paying taxes shop. ✔ Starting a business Trinidad and Tobago made paying taxes Dealing with construction permits ✔ more costly by increasing the corporate Tanzania made starting a business income tax rate. easier by launching online company Togo made dealing with construc- registrations. tion permits safer by implementing decennial liability and insurance and Tunisia strengthening quality control before Thailand ✔ Starting a business construction. Togo also reduced the ✔ Starting a business cost to obtain a building permit. Tunisia made starting a business easier by combining different registrations at Thailand made starting a business less ✔ Getting electricity the one-stop shop. costly by introducing fixed registration fees. Togo improved the monitoring and Registering property ✔ - regulation of power outages by begin Getting electricity ✔ ning to record data for the annual Tunisia made registering property system average interruption duration easier by increasing the transparency of Thailand made getting electricity index (SAIDI) and system average the cadaster. easier by streamlining the number of interruption frequency index (SAIFI). procedures needed to obtain a new Protecting minority investors ✔ Togo also made getting electricity less connection. Thailand also increased costly by reducing the amount billed the transparency of electricity tariff Tunisia strengthened minority investor by the utility for the external works as changes. protections by improving disclosure well as the security deposit for a new - requirements of related-party transac Paying taxes ✔ connection. tions to the public and by requiring disclosure of directorships and primary Thailand made paying taxes easier by ✔ Registering property employment. enhancing its online platform for calcu - lating and filing corporate income tax. Togo reduced the time needed to ✔ Paying taxes transfer property by scanning the Trading across borders ✔ majority of land titles in Lomé and by Tunisia made paying taxes easier by not - creating an office exclusively dedi extending the exceptional corporate Thailand made trading across borders cated to property transfers. Togo also income tax contribution introduced in faster by introducing the E-Matching reduced the property transfer tax and 2016. system for electronic cargo control, increased transparency by making thereby reducing the time for border information on cadastral plans and compliance. land title ownership freely accessible to all citizens.

157 DOING BUSINESS 2019 150 ✔ Enforcing contracts Enforcing contracts ✔ Turkey Ukraine made enforcing contracts Turkey made enforcing contracts ✔ Starting a business easier by introducing a simplified easier by publishing judgments ren- procedure for small claims and pre- dered at all levels in commercial cases Turkey made starting a business easier and by introducing financial incentives trial conferences as part of the case - by removing the paid-in minimum cap management techniques used in all for mediation. ital requirement and by eliminating the commercial courts. notarization of company documents Resolving insolvency ✔ and legal books. Turkey made resolving insolvency United Arab Emirates ✔ Dealing with construction permits easier by introducing the possibil- ✔ Starting a business ity to obtain post-commencement Turkey increased the transparency of credit, improving voting arrange - its building regulations by publishing - The United Arab Emirates made start ments in reorganization and granting online all pre-application require - ing a business easier by improving creditors greater participation in the ments needed to obtain a construction online registration. proceedings. permit. Turkey also strengthened con- Getting electricity ✔ struction quality control by imposing stricter qualification requirements for The United Arab Emirates made getting Uganda professionals in charge of approving electricity easier by eliminating all costs Trading across borders ✔ architectural plans. for commercial and industrial connec- tions of up to 150 kilo-Volt-Amperes Uganda reduced the time needed to Registering property ✘ (kVA). export and import by further imple - menting the Single Customs Territory, Turkey made registering property more Registering property ✔ as well as by developing the Uganda expensive by increasing the costs of Electronic Single Window and the transferring property. - The United Arab Emirates made regis Centralized Document Processing tering property easier by increasing the ✔ Getting credit Centre. transparency of the land administra - tion system. Turkey strengthened access to credit by extending the security interest to Ukraine ✔ Getting credit products, proceeds and replacements ✘ Dealing with construction permits of the original collateral; secured The United Arab Emirates strength - creditors are now given absolute ened access to credit by introducing Ukraine made construction permit - priority over other claims, such as - the possibility of granting a nonposses ting more costly by increasing the labor and tax, both outside and within sory security right in a single category contribution fee to the city social and bankruptcy proceedings. Turkey also of movable assets without requiring a engineering-transport infrastructure. improved access to credit information specific description of the collateral, by - On the other hand, Ukraine made deal - by reporting data on arrears from tele allowing out-of-court enforcement of ing with construction permits easier by communications companies. the security interest and by establish - eliminating a requirement that inves - ing a unified and modern collateral tors obtain clearance from the State ✔ Paying taxes registry. Service of Ukraine for Emergency Situations. Turkey made paying taxes easier by improving the online portal for filing United Kingdom ✔ Protecting minority investors and payment of taxes. ✔ Getting electricity Ukraine strengthened minority investor ✔ Trading across borders protections by increasing the require - The United Kingdom made getting ments for the disclosure in annual electricity faster by implementing Turkey reduced the time and cost to reports of related-party transactions. several initiatives to expedite the export and import through various initiatives, including expanding the external connection works performed Trading across borders ✔ functionalities of the national trade by sub-contractors. single window, enhancing the risk Ukraine made trading across borders management system and lowering easier by eliminating the verification customs brokers’ fees. requirement on auto parts from the State Service of Export Control.

158 151 REFORMS IN 2017/18 SUMMARIES OF DOING BUSINESS ✔ Enforcing contracts and allowing joint payment of the United States business license tax and value added Zimbabwe made enforcing contracts Labor market regulation tax. Vietnam also made paying taxes easier by making judgments rendered less costly by reducing the employer’s at the appellate and supreme court The United States (New York City) contribution to the labor fund. level in commercial cases available changed regulations pertaining to to the general public online. parental leave. Enforcing contracts ✔ Vietnam made enforcing contracts Uruguay easier by making judgments rendered Dealing with construction permits ✔ - at all levels in commercial cases avail able to the public online. Uruguay improved the quality of its building regulations by creating an online portal providing information on West Bank and Gaza the requirements and fees to obtain a Registering property ✔ building permit. West Bank and Gaza made property registration easier by removing the man - Uzbekistan datory requirement to obtain a security ✔ Protecting minority investors check when issuing a purchase permit and publishing official statistics on prop - Uzbekistan strengthened minority erty transactions at the land registry. investor protections by clarifying the ownership and control structures of listed companies. Zambia Paying taxes ✔ ✔ Enforcing contracts Uzbekistan made paying taxes less Zambia made enforcing contracts - costly by introducing new classifica easier by making judgments rendered tion criteria for enterprises. The new in commercial matters at the appellate classification allows small enterprises and supreme court levels available to to pay a single social contribution at a the general public online. fixed rate, but not less than 65% of the minimum wage for each employee. Zimbabwe Trading across borders ✔ Starting a business ✔ Uzbekistan made trading across bor - Zimbabwe made starting a business ders faster by introducing an electronic easier by reducing the time needed to application and payment system for obtain a business license. several export certificates, reducing ✔ Dealing with construction permits the time for export documentary compliance. - Zimbabwe made dealing with con struction permits faster by issuing building permits through a one-stop Vietnam shop. ✔ Starting a business ✔ Getting credit Vietnam made starting a business Zimbabwe improved access to easier by publishing the notice of incorporation online and by reducing credit information by increasing the the cost of business registration. coverage of the credit registry and providing consumer and commercial ✔ Paying taxes credit scores to banks and financial institutions. Vietnam made paying taxes easier by no longer requiring hard copy submis- sion of the value added tax return

159 DOING BUSINESS 2019 Country Tables Reform making it easier to do business ✘ Change making it more difficult to do business ✔ 570 GNI per capita (US$) South Asia AFGHANISTAN Ease of doing business score (0–100) 47.77 Ease of doing business rank (1–190) 35,530,081 Population 167 Getting credit (rank) 99 (rank) (rank) 177 49 Trading across borders Starting a business ✔ ✔ Score for trading across borders (0–100) 30.63 Score for starting a business (0–100) 92.04 Score for getting credit (0–100) 50.00 12) 4.5 Time to export Procedures (number) Strength of legal rights index (0 – 10 – 0 Documentary compliance (hours) 228 Depth of credit information index (0 8.5 Time (days) 8) 0.0 Border compliance (hours) Cost (% of income per capita) 6.4 Credit bureau coverage (% of adults) 48 Cost to export Credit registry coverage (% of adults) Minimum capital (% of income per capita) 0.0 1.3 344 Documentary compliance (US$) Protecting minority investors (rank) 26 Border compliance (US$) 453 (rank) 184 Dealing with construction permits ✔ 71.67 Time to import Score for protecting minority investors (0–100) Score for dealing with construction permits (0–100) 34.54 Procedures (number) 10) 8 Documentary compliance (hours) 324 13 Extent of disclosure index (0 – Extent of director liability index (0 – 10) 1 Border compliance (hours) 96 199 Time (days) 9 – 10) Cost to import 73.0 Ease of shareholder suits index (0 Cost (% of warehouse value) 15) – – 10) 9 Documentary compliance (US$) 900 3.0 Building quality control index (0 Extent of shareholder rights index (0 Extent of ownership and control index (0 9 Border compliance (US$) – 10) 750 10) 7 – Extent of corporate transparency index (0 168 (rank) Getting electricity (rank) 181 Score for getting electricity (0–100) 44.51 Enforcing contracts Paying taxes 6 177 Score for enforcing contracts (0–100) 31.76 Procedures (number) (rank) ✔ 114 43.27 Time (days) Score for paying taxes (0–100) Time (days) 1,642 Cost (% of income per capita) 19 Cost (% of claim value) 29.0 2,448.3 Payments (number per year) 0 270 Quality of judicial processes index (0 – 18) 5.0 Reliability of supply and transparency of tariffs index (0–8) Time (hours per year) Total tax and contribution rate (% of profit) 71.4 Registering property 186 Postfiling index (0 (rank) 4.46 74 Resolving insolvency (rank) – 100) ✔ 27.50 Score for registering property (0–100) 51.78 Score for resolving insolvency (0–100) Time (years) 9 2.0 Procedures (number) Cost (% of estate) 25.0 Time (days) 250 Recovery rate (cents on the dollar) 26.5 5.0 Cost (% of property value) 3.0 Strength of insolvency framework index (0 – Quality of land administration index (0–30) 12.0 16) GNI per capita (US$) 4,320 Europe & Central Asia ALBANIA Ease of doing business score (0–100) 69.51 Population 2,873,457 Ease of doing business rank (1–190) 63 50 Getting credit 44 Trading across borders (rank) 24 (rank) Starting a business (rank) 70.00 96.29 Score for getting credit (0–100) Score for starting a business (0–100) 91.58 Score for trading across borders (0–100) Procedures (number) 5 Strength of legal rights index (0 Time to export – 12) 8 Depth of credit information index (0 – 6 Documentary compliance (hours) 6 Time (days) 5 8) 0.0 Border compliance (hours) 9 11.3 Cost (% of income per capita) Credit bureau coverage (% of adults) Cost to export 57.4 0.0 Minimum capital (% of income per capita) Credit registry coverage (% of adults) Documentary compliance (US$) 10 Protecting minority investors (rank) 26 Border compliance (US$) 55 151 (rank) Dealing with construction permits 71.67 Time to import Score for protecting minority investors (0–100) 57.01 Score for dealing with construction permits (0–100) Extent of disclosure index (0–10) 9 Documentary compliance (hours) Procedures (number) 18 8 – 10) 7 Border compliance (hours) 10 299 Time (days) Extent of director liability index (0 Ease of shareholder suits index (0 – 10) 7 Cost to import Cost (% of warehouse value) 5.6 – 15) 13.0 Extent of shareholder rights index (0 – 10) 6 Building quality control index (0 10 Documentary compliance (US$) Extent of ownership and control index (0 10) 6 Border compliance (US$) 77 – – 10) 8 (rank) 140 Getting electricity Extent of corporate transparency index (0 (rank) 98 57.71 Score for getting electricity (0–100) Enforcing contracts ✔ Paying taxes (rank) 122 Score for enforcing contracts (0–100) 56.44 Procedures (number) 6 Score for paying taxes (0–100) 134 Time (days) 525 Time (days) 64.91 504.7 35 Cost (% of claim value) 34.9 Cost (% of income per capita) Payments (number per year) 3 Time (hours per year) 252 Quality of judicial processes index (0 – 18) 7.5 Reliability of supply and transparency of tariffs index (0–8) Total tax and contribution rate (% of profit) 37.3 (rank) 98 Registering property Postfiling index (0 60.11 (rank) 39 100) Resolving insolvency – Score for resolving insolvency (0–100) Score for registering property (0–100) 62.08 67.42 5 Time (years) 2.0 Procedures (number) 19 Time (days) 10.0 Cost (% of estate) Cost (% of property value) Recovery rate (cents on the dollar) 44.0 9.2 Quality of land administration index (0 14.0 15.5 Strength of insolvency framework index (0 – 16) 30) – Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

160 153 COUNTRY TABLES Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 3,960 Middle East & North Africa ALGERIA 49.65 Ease of doing business score (0–100) Ease of doing business rank (1–190) Population 41,318,142 157 178 Starting a business Trading across borders 150 173 Getting credit (rank) (rank) (rank) ✔ Score for trading across borders (0–100) 38.43 78.07 Score for getting credit (0–100) Score for starting a business (0–100) 10.00 – 12) 2 Time to export Strength of legal rights index (0 12 Procedures (number) Time (days) 8) 0 Documentary compliance (hours) 149 17.5 Depth of credit information index (0 – Credit bureau coverage (% of adults) Border compliance (hours) 80 Cost (% of income per capita) 11.8 0.0 Cost to export 3.2 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) Documentary compliance (US$) 374 Dealing with construction permits (rank) 168 Border compliance (US$) 593 (rank) 129 Protecting minority investors Score for protecting minority investors (0–100) Score for dealing with construction permits (0–100) Time to import 63.28 35.00 19 – 10) 4 Documentary compliance (hours) 96 Procedures (number) Extent of disclosure index (0 Extent of director liability index (0 – 1 Border compliance (hours) 210 Time (days) 136 10) – 10) 5 Cost to import 7.8 Cost (% of warehouse value) Ease of shareholder suits index (0 15) 12.0 Extent of shareholder rights index (0 – 10) 3 Documentary compliance (US$) 400 Building quality control index (0 – – 10) Border compliance (US$) 409 Extent of ownership and control index (0 4 (rank) Extent of corporate transparency index (0 Getting electricity 106 – 10) 4 ✔ Enforcing contracts (rank) Score for getting electricity (0–100) 69.58 112 5 Paying taxes (rank) 156 Score for enforcing contracts (0–100) 54.78 Procedures (number) 93 Score for paying taxes (0–100) 53.91 Time (days) Time (days) 630 Cost (% of income per capita) Payments (number per year) 27 Cost (% of claim value) 21.8 1,478.3 5 Reliability of supply and transparency of tariffs index (0–8) Quality of judicial processes index (0–18) 5.5 Time (hours per year) 265 Total tax and contribution rate (% of profit) 66.0 – 100) 49.77 Resolving insolvency (rank) 76 Registering property (rank) 165 Postfiling index (0 49.24 Score for resolving insolvency (0–100) Score for registering property (0–100) 44.26 Procedures (number) 10 Time (years) 1.3 Cost (% of estate) 7.0 Time (days) 55 Recovery rate (cents on the dollar) 7.1 Cost (% of property value) 50.8 Quality of land administration index (0 30) Strength of insolvency framework index (0 – 16) 7.0 – 7.5 GNI per capita (US$) Sub-Saharan Africa 3,330 ANGOLA Ease of doing business score (0–100) 43.86 Ease of doing business rank (1–190) 173 Population 29,784,193 (rank) 139 Getting credit (rank) 184 174 Trading across borders (rank) Starting a business ✔ Score for starting a business (0–100) Score for getting credit (0–100) 5.00 Score for trading across borders (0–100) 36.15 80.52 7 Strength of legal rights index (0–12) Procedures (number) 1 Time to export 36 0 Documentary compliance (hours) 96 Time (days) Depth of credit information index (0–8) Credit bureau coverage (% of adults) 0.0 Border compliance (hours) Cost (% of income per capita) 13.9 164 Cost to export 0.0 Credit registry coverage (% of adults) 1.6 Minimum capital (% of income per capita) Documentary compliance (US$) 240 (rank) 87 Protecting minority investors (rank) 89 Border compliance (US$) Dealing with construction permits 825 Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 55.00 Time to import 68.93 10 – 10) 4 Documentary compliance (hours) 96 Procedures (number) Extent of disclosure index (0 173 Extent of director liability index (0 Time (days) – 10) Border compliance (hours) 72 6 – 10) 6 Cost to import 0.4 Cost (% of warehouse value) Ease of shareholder suits index (0 Building quality control index (0 – 15) 6.0 Extent of shareholder rights index (0 – 10) 7 Documentary compliance (US$) 460 – 6 Border compliance (US$) 1,030 10) Extent of ownership and control index (0 Getting electricity (rank) Extent of corporate transparency index (0 152 10) 4 – ✔ Enforcing contracts 186 Score for getting electricity (0–100) (rank) 54.08 (rank) 104 Score for enforcing contracts (0–100) Procedures (number) 7 Paying taxes 26.26 Score for paying taxes (0–100) 69.54 Time (days) 1,296 121 Time (days) Payments (number per year) 31 Cost (% of claim value) 44.4 Cost (% of income per capita) 786.7 8) – Time (hours per year) 287 Quality of judicial processes index (0 – 18) 4.5 3 Reliability of supply and transparency of tariffs index (0 49.1 Total tax and contribution rate (% of profit) 170 Postfiling index (0 – 100) 94.95 Registering property (rank) 168 (rank) Resolving insolvency 43.16 Score for resolving insolvency (0–100) 0.00 Score for registering property (0–100) 6 Time (years) no practice Procedures (number) Time (days) 190 no practice Cost (% of estate) 2.8 Recovery rate (cents on the dollar) Cost (% of property value) 0.0 Quality of land administration index (0 30) Strength of insolvency framework index (0 – 16) 0.0 – 7.0 GNI per capita (US$) 14,170 Latin America & Caribbean ANTIGUA AND BARBUDA Ease of doing business score (0–100) 59.48 Ease of doing business rank (1–190) 112 Population 102,012 (rank) 131 108 Getting credit (rank) 161 Trading across borders Starting a business (rank) ✔ 81.74 Score for getting credit (0–100) Score for trading across borders (0–100) 68.73 Score for starting a business (0–100) 25.00 9 Procedures (number) Strength of legal rights index (0 – 12) 5 Time to export Time (days) Depth of credit information index (0 – 8) 0 Documentary compliance (hours) 51 22 Cost (% of income per capita) 8.7 Credit bureau coverage (% of adults) 0.0 Border compliance (hours) 61 Cost to export 0.0 Credit registry coverage (% of adults) Minimum capital (% of income per capita) 0.0 121 Documentary compliance (US$) 97 Protecting minority investors (rank) 99 Border compliance (US$) 546 Dealing with construction permits (rank) Score for protecting minority investors (0–100) 51.67 Time to import Score for dealing with construction permits (0–100) 68.14 Extent of disclosure index (0 18 10) 4 Documentary compliance (hours) 48 Procedures (number) – 135 Extent of director liability index (0 – 10) 8 Border compliance (hours) 61 Time (days) 0.8 Cost (% of warehouse value) – 10) 8 Cost to import Ease of shareholder suits index (0 – 100 9.0 Extent of shareholder rights index (0 – 10) 4 Documentary compliance (US$) Building quality control index (0 15) – 10) 4 Border compliance (US$) 546 Extent of ownership and control index (0 – 10) 3 Getting electricity 63 Extent of corporate transparency index (0 (rank) Score for getting electricity (0–100) 80.39 Enforcing contracts (rank) 34 Procedures (number) 4 (rank) 144 Score for enforcing contracts (0–100) 68.11 Paying taxes 42 58.96 Time (days) 476 Time (days) Score for paying taxes (0–100) 109.9 Payments (number per year) 57 Cost (% of claim value) 27.1 Cost (% of income per capita) Reliability of supply and transparency of tariffs index (0 – 8) 4 Time (hours per year) 177 Quality of judicial processes index (0–18) 11.5 Total tax and contribution rate (% of profit) 42.8 Registering property (rank) 120 Postfiling index (0 – 100) 69.40 Resolving insolvency (rank) 132 Score for registering property (0–100) 56.63 35.40 Score for resolving insolvency (0–100) 7 Time (years) 3.0 Procedures (number) 32 Cost (% of estate) 7.0 Time (days) Cost (% of property value) 10.8 Recovery rate (cents on the dollar) 36.8 Quality of land administration index (0 16) 30) 19.0 Strength of insolvency framework index (0 – – 5.0 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

161 DOING BUSINESS 2019 154 Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 13,040 Latin America & Caribbean ARGENTINA 58.80 Ease of doing business score (0–100) Ease of doing business rank (1–190) Population 119 44,271,041 Getting credit 125 85 Trading across borders (rank) 128 Starting a business (rank) (rank) ✔ 55.00 Score for trading across borders (0–100) 65.36 81.99 Score for starting a business (0–100) Score for getting credit (0–100) Time to export 3 Strength of legal rights index (0–12) Procedures (number) 11 8 30 Time (days) Documentary compliance (hours) 11 Depth of credit information index (0–8) 100.0 Border compliance (hours) 21 Cost (% of income per capita) 5.3 Credit bureau coverage (% of adults) Cost to export 45.7 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) Documentary compliance (US$) 60 174 Protecting minority investors (rank) Dealing with construction permits Border compliance (US$) 150 (rank) 57 51.01 61.67 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) Extent of disclosure index (0–10) 7 192 Procedures (number) 21 Documentary compliance (hours) 2 60 Extent of director liability index (0–10) Time (days) 341 Border compliance (hours) 6 Cost to import 2.9 Cost (% of warehouse value) Ease of shareholder suits index (0–10) Extent of shareholder rights index (0–10) 8 Documentary compliance (US$) 120 Building quality control index (0–15) 11.0 Border compliance (US$) 7 Extent of ownership and control index (0–10) 1,200 103 7 (rank) Extent of corporate transparency index (0–10) Getting electricity Enforcing contracts (rank) 107 Score for getting electricity (0–100) 70.02 Paying taxes (rank) 169 Score for enforcing contracts (0–100) 55.66 6 Procedures (number) 92 Score for paying taxes (0–100) 49.34 Time (days) 995 Time (days) 21.0 Cost (% of income per capita) 9 Cost (% of claim value) 22.5 Payments (number per year) 5 Reliability of supply and transparency of tariffs index (0–8) Quality of judicial processes index (0–18) 11.5 Time (hours per year) 311.5 Total tax and contribution rate (% of profit) 106.0 Resolving insolvency (rank) 104 Postfiling index (0–100) 47.94 (rank) Registering property 119 41.24 56.73 Score for registering property (0–100) Score for resolving insolvency (0–100) Procedures (number) 7 Time (years) 2.4 Cost (% of estate) 16.5 Time (days) 51.5 Recovery rate (cents on the dollar) Cost (% of property value) 6.6 21.5 Strength of insolvency framework index (0–16) Quality of land administration index (0–30) 9.5 13.5 GNI per capita (US$) 4,000 Europe & Central Asia ARMENIA Ease of doing business score (0–100) 75.37 Ease of doing business rank (1–190) Population 2,930,450 41 Starting a business (rank) 8 Getting credit (rank) 44 Trading across borders (rank) 46 ✔ Score for starting a business (0–100) Score for getting credit (0–100) 70.00 Score for trading across borders (0–100) 89.22 96.21 3 Strength of legal rights index (0–12) Time to export Procedures (number) 6 Depth of credit information index (0–8) Documentary compliance (hours) 2 3.5 8 Time (days) Credit bureau coverage (% of adults) 80.0 Cost (% of income per capita) 39 0.8 Border compliance (hours) Cost to export 0.0 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) 150 Documentary compliance (US$) (rank) 98 Dealing with construction permits Protecting minority investors (rank) 51 Border compliance (US$) 100 ✔ Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 63.33 Time to import 68.06 20 Extent of disclosure index (0–10) 6 Procedures (number) 2 Documentary compliance (hours) Time (days) 98 Extent of director liability index (0–10) 6 Border compliance (hours) 3 Cost (% of warehouse value) 1.4 Ease of shareholder suits index (0–10) 8 Cost to import Building quality control index (0–15) 9.0 7 Documentary compliance (US$) 100 Extent of shareholder rights index (0–10) 3 Border compliance (US$) Extent of ownership and control index (0–10) 0 (rank) 8 17 Getting electricity Extent of corporate transparency index (0–10) ✔ Enforcing contracts 24 Score for getting electricity (0–100) (rank) 90.79 ✔ Paying taxes 3 82 Score for enforcing contracts (0–100) Procedures (number) (rank) 70.63 ✔ Score for paying taxes (0–100) 74.46 Time (days) 570 Time (days) 72 Payments (number per year) Cost (% of income per capita) Cost (% of claim value) 16.0 70.3 14 Time (hours per year) Quality of judicial processes index (0–18) 12.0 7 Reliability of supply and transparency of tariffs index (0–8) 262 Total tax and contribution rate (% of profit) 18.5 (rank) Postfiling index (0–100) 49.08 Resolving insolvency (rank) 95 Registering property 14 86.97 Score for resolving insolvency (0–100) Score for registering property (0–100) 43.99 Procedures (number) Time (years) 1.9 3 7 Cost (% of estate) Time (days) 11.0 Recovery rate (cents on the dollar) Cost (% of property value) 0.1 38.2 Quality of land administration index (0–30) 20.5 Strength of insolvency framework index (0–16) 7.5 GNI per capita (US$) OECD high income 51,360 AUSTRALIA Ease of doing business score (0–100) 80.13 Ease of doing business rank (1–190) 18 Population 24,598,933 (rank) 7 Starting a business (rank) 8 Trading across borders (rank) 103 Getting credit Score for starting a business (0–100) Score for getting credit (0–100) 90.00 Score for trading across borders (0–100) 70.30 96.47 3 11 Procedures (number) Strength of legal rights index (0–12) Time to export Time (days) Depth of credit information index (0–8) 7 Documentary compliance (hours) 7 2.5 Cost (% of income per capita) 0.7 Credit bureau coverage (% of adults) 100.0 Border compliance (hours) 36 Cost to export Minimum capital (% of income per capita) 0.0 0.0 Credit registry coverage (% of adults) 264 Documentary compliance (US$) 9 Protecting minority investors (rank) 64 Border compliance (US$) 766 Dealing with construction permits (rank) 84.59 Score for protecting minority investors (0–100) Time to import Score for dealing with construction permits (0–100) 60.00 11 8 Documentary compliance (hours) 4 Procedures (number) Extent of disclosure index (0–10) 121 Extent of director liability index (0–10) 2 Border compliance (hours) 39 Time (days) 0.7 Cost (% of warehouse value) 8 Cost to import Ease of shareholder suits index (0–10) 14.0 5 Documentary compliance (US$) 100 Building quality control index (0–15) Extent of shareholder rights index (0–10) 4 Border compliance (US$) 539 Extent of ownership and control index (0–10) Getting electricity 52 Extent of corporate transparency index (0–10) 9 (rank) Score for getting electricity (0–100) 82.31 Enforcing contracts (rank) 5 Procedures (number) 5 Paying taxes (rank) 26 Score for enforcing contracts (0–100) 79.00 Time (days) 75 85.64 Time (days) 402 Score for paying taxes (0–100) 12.5 23.2 11 Cost (% of claim value) Cost (% of income per capita) Payments (number per year) 7 Reliability of supply and transparency of tariffs index (0–8) 105 Quality of judicial processes index (0–18) 15.5 Time (hours per year) Total tax and contribution rate (% of profit) 47.4 Registering property (rank) 50 Postfiling index (0–100) 95.34 Resolving insolvency (rank) 20 Score for registering property (0–100) 74.09 78.87 Score for resolving insolvency (0–100) 5 Time (years) Procedures (number) 1.0 Time (days) 4.5 Cost (% of estate) 8.0 Cost (% of property value) 5.3 Recovery rate (cents on the dollar) 82.7 Quality of land administration index (0–30) 20.0 Strength of insolvency framework index (0–16) 11.0 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

162 155 COUNTRY TABLES Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 45,440 OECD high income AUSTRIA Ease of doing business score (0–100) 78.57 Population Ease of doing business rank (1–190) 26 8,809,212 Starting a business 85 Trading across borders (rank) 1 (rank) 118 Getting credit (rank) Score for trading across borders (0–100) 100.00 55.00 Score for getting credit (0–100) 83.21 Score for starting a business (0–100) Time to export 4 Strength of legal rights index (0–12) Procedures (number) 8 7 1 Time (days) Documentary compliance (hours) 21 Depth of credit information index (0–8) 52.2 Border compliance (hours) 0 Cost (% of income per capita) 4.8 Credit bureau coverage (% of adults) Cost to export 2.2 Credit registry coverage (% of adults) 11.9 Minimum capital (% of income per capita) Documentary compliance (US$) 0 42 Protecting minority investors (rank) 33 Border compliance (US$) 0 Dealing with construction permits (rank) Score for protecting minority investors (0–100) 75.08 Time to import Score for dealing with construction permits (0–100) 68.33 Extent of disclosure index (0–10) Procedures (number) 1 5 11 Documentary compliance (hours) 5 0 Extent of director liability index (0–10) Border compliance (hours) Time (days) 222 7 Cost to import Cost (% of warehouse value) 1.2 Ease of shareholder suits index (0–10) 7 Documentary compliance (US$) 0 Extent of shareholder rights index (0–10) 13.0 Building quality control index (0–15) Border compliance (US$) 0 Extent of ownership and control index (0–10) 9 28 Getting electricity 8 (rank) Extent of corporate transparency index (0–10) Enforcing contracts 10 87.72 (rank) Score for getting electricity (0–100) Paying taxes (rank) 40 Score for enforcing contracts (0–100) Procedures (number) 5 75.49 23 Score for paying taxes (0–100) 83.45 Time (days) 397 Time (days) 88.6 Cost (% of income per capita) 12 Cost (% of claim value) 20.6 Payments (number per year) Reliability of supply and transparency of tariffs index (0–8) Time (hours per year) 131 Quality of judicial processes index (0–18) 13.0 7 51.5 Total tax and contribution rate (% of profit) (rank) 21 98.54 Resolving insolvency Registering property 32 Postfiling index (0–100) (rank) Score for resolving insolvency (0–100) 77.47 Score for registering property (0–100) 79.97 1.1 Procedures (number) 3 Time (years) 10.0 20.5 Time (days) Cost (% of estate) 80.1 Recovery rate (cents on the dollar) Cost (% of property value) 4.6 Strength of insolvency framework index (0–16) 11.0 Quality of land administration index (0–30) 23.0 Europe & Central Asia GNI per capita (US$) 4,080 AZERBAIJAN 78.64 Ease of doing business score (0–100) 25 Population 9,862,429 Ease of doing business rank (1–190) 9 Starting a business (rank) (rank) 22 84 Trading across borders (rank) Getting credit ✔ ✔ 96.14 Score for getting credit (0–100) 80.00 Score for starting a business (0–100) 77.04 Score for trading across borders (0–100) Procedures (number) Strength of legal rights index (0–12) 8 3 Time to export Time (days) 8 Documentary compliance (hours) 33 3.5 Depth of credit information index (0–8) Credit bureau coverage (% of adults) 17 Border compliance (hours) 1.3 Cost (% of income per capita) 41.5 Cost to export 0.0 41.5 Minimum capital (% of income per capita) Credit registry coverage (% of adults) Documentary compliance (US$) 250 Dealing with construction permits (rank) 61 214 Protecting minority investors (rank) 2 Border compliance (US$) ✔ ✔ 73.11 81.67 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 18 Extent of disclosure index (0–10) 10 Procedures (number) 33 Documentary compliance (hours) Time (days) 116 Extent of director liability index (0–10) 5 Border compliance (hours) 14 Cost (% of warehouse value) 1.9 Ease of shareholder suits index (0–10) 8 Cost to import Building quality control index (0–15) 12.0 9 Documentary compliance (US$) 200 Extent of shareholder rights index (0–10) 7 Border compliance (US$) Extent of ownership and control index (0–10) 300 (rank) 74 10 Getting electricity Extent of corporate transparency index (0–10) ✔ Enforcing contracts 40 77.27 (rank) Score for getting electricity (0–100) Paying taxes 7 28 Score for enforcing contracts (0–100) Procedures (number) (rank) 67.51 ✔ Score for paying taxes (0–100) 85.23 Time (days) 277 Time (days) 41 Payments (number per year) 140.4 Cost (% of claim value) 18.5 Cost (% of income per capita) 6 Time (hours per year) Quality of judicial processes index (0–18) 6.5 7 159 Reliability of supply and transparency of tariffs index (0–8) Total tax and contribution rate (% of profit) 40.8 (rank) 17 Postfiling index (0–100) 83.79 Registering property Resolving insolvency (rank) 45 ✔ ✔ 84.63 Score for resolving insolvency (0–100) Score for registering property (0–100) 63.79 Procedures (number) Time (years) 1.5 3 5.5 Cost (% of estate) Time (days) 12.0 Recovery rate (cents on the dollar) Cost (% of property value) 0.1 40.1 Quality of land administration index (0–30) 17.5 Strength of insolvency framework index (0–16) 13.5 GNI per capita (US$) Latin America & Caribbean 29,170 BAHAMAS, THE Ease of doing business score (0–100) 58.90 Ease of doing business rank (1–190) 118 Population 395,361 (rank) 105 Starting a business Getting credit (rank) 144 Trading across borders (rank) 161 ✔ Score for starting a business (0–100) Score for getting credit (0–100) 30.00 Score for trading across borders (0–100) 53.07 84.47 7 6 Procedures (number) Strength of legal rights index (0–12) Time to export Time (days) Depth of credit information index (0–8) 0 Documentary compliance (hours) 12 21.5 Cost (% of income per capita) 11.4 Credit bureau coverage (% of adults) 0.0 Border compliance (hours) 36 Cost to export Minimum capital (% of income per capita) 0.0 Credit registry coverage (% of adults) 0.0 550 Documentary compliance (US$) Dealing with construction permits 91 Protecting minority investors (rank) 132 Border compliance (US$) 512 (rank) Score for protecting minority investors (0–100) 43.33 Time to import Score for dealing with construction permits (0–100) 68.64 Extent of disclosure index (0–10) Procedures (number) Documentary compliance (hours) 6 16 2 180 5 Border compliance (hours) 51 Time (days) Extent of director liability index (0–10) 0.7 Ease of shareholder suits index (0–10) 8 Cost to import Cost (% of warehouse value) 10.0 7 Documentary compliance (US$) 550 Extent of shareholder rights index (0–10) Building quality control index (0–15) Extent of ownership and control index (0–10) 1 Border compliance (US$) 1,385 (rank) 87 Extent of corporate transparency index (0–10) 3 Getting electricity Score for getting electricity (0–100) 73.56 (rank) 84 Enforcing contracts 5 Procedures (number) Paying taxes (rank) 50 Score for enforcing contracts (0–100) 59.07 ✔ Time (days) 67 80.13 Time (days) 545 Score for paying taxes (0–100) 90.4 28.9 20 Cost (% of claim value) Cost (% of income per capita) Payments (number per year) 4 Reliability of supply and transparency of tariffs index (0–8) 197 Quality of judicial processes index (0–18) 8.0 Time (hours per year) Total tax and contribution rate (% of profit) 31.5 Registering property (rank) 169 Postfiling index (0–100) 79.27 Resolving insolvency (rank) 69 Score for registering property (0–100) 43.31 53.38 Score for resolving insolvency (0–100) 7 Time (years) Procedures (number) 3.0 Time (days) 122 Cost (% of estate) 12.0 Cost (% of property value) 4.3 Recovery rate (cents on the dollar) 64.3 Quality of land administration index (0–30) 3.0 Strength of insolvency framework index (0–16) 6.0 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

163 DOING BUSINESS 2019 156 Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 20,240 Middle East & North Africa BAHRAIN 69.85 Ease of doing business score (0–100) Ease of doing business rank (1–190) Population 62 1,492,584 (rank) 77 Starting a business Trading across borders (rank) Getting credit (rank) 66 112 ✔ 45.00 Score for trading across borders (0–100) 77.77 89.57 Score for starting a business (0–100) Score for getting credit (0–100) Time to export 1 Strength of legal rights index (0–12) Procedures (number) 6.5 8 24 Time (days) Documentary compliance (hours) 8.5 Depth of credit information index (0–8) 28.0 Border compliance (hours) 71 Cost (% of income per capita) 1.1 Credit bureau coverage (% of adults) Cost to export 0.0 Credit registry coverage (% of adults) 3.1 Minimum capital (% of income per capita) Documentary compliance (US$) 100 57 38 Protecting minority investors (rank) Dealing with construction permits Border compliance (US$) 47 (rank) ✔ 73.40 66.67 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) Extent of disclosure index (0–10) 8 60 Procedures (number) 11 Documentary compliance (hours) 4 42 Extent of director liability index (0–10) Time (days) 174 Border compliance (hours) 5 Cost to import 3.9 Cost (% of warehouse value) Ease of shareholder suits index (0–10) Extent of shareholder rights index (0–10) 9 Documentary compliance (US$) 130 Building quality control index (0–15) 12.0 Border compliance (US$) 7 Extent of ownership and control index (0–10) 397 82 7 (rank) Extent of corporate transparency index (0–10) Getting electricity Enforcing contracts (rank) 128 Score for getting electricity (0–100) 74.82 Paying taxes (rank) 5 Score for enforcing contracts (0–100) 51.75 5 Procedures (number) 85 Score for paying taxes (0–100) 93.89 Time (days) Time (days) 635 Cost (% of income per capita) Payments (number per year) 14 Cost (% of claim value) 14.7 61.0 5 Time (hours per year) Quality of judicial processes index (0–18) 2.5 Reliability of supply and transparency of tariffs index (0–8) 28.5 Total tax and contribution rate (% of profit) 13.8 not applicable Resolving insolvency (rank) 93 Postfiling index (0–100) (rank) Registering property 26 44.57 81.07 Score for registering property (0–100) Score for resolving insolvency (0–100) Procedures (number) 2 Time (years) 2.5 Cost (% of estate) 9.5 Time (days) 31 Recovery rate (cents on the dollar) Cost (% of property value) 1.7 42.2 Strength of insolvency framework index (0–16) Quality of land administration index (0–30) 17.5 7.0 GNI per capita (US$) 1,470 South Asia BANGLADESH Ease of doing business score (0–100) 41.97 Ease of doing business rank (1–190) Population 164,669,751 176 (rank) 138 Getting credit (rank) 161 Trading across borders (rank) 176 Starting a business Score for starting a business (0–100) 80.82 25.00 Score for trading across borders (0–100) 31.76 Score for getting credit (0–100) 9 Strength of legal rights index (0–12) Procedures (number) 5 Time to export 19.5 0 Documentary compliance (hours) 147 Time (days) Depth of credit information index (0–8) Credit bureau coverage (% of adults) 0.0 Cost (% of income per capita) 168 21.2 Border compliance (hours) Cost to export 0.0 Credit registry coverage (% of adults) 3.2 Minimum capital (% of income per capita) 225 Documentary compliance (US$) Dealing with construction permits (rank) Protecting minority investors (rank) 89 Border compliance (US$) 408.2 138 60.82 55.00 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 15.8 Extent of disclosure index (0–10) 6 Procedures (number) 144 Documentary compliance (hours) Time (days) 273.5 Extent of director liability index (0–10) 7 Border compliance (hours) 216 Cost (% of warehouse value) 1.8 Ease of shareholder suits index (0–10) 7 Cost to import Building quality control index (0–15) 10.0 Documentary compliance (US$) 370 Extent of shareholder rights index (0–10) 5 Border compliance (US$) 3 900 Extent of ownership and control index (0–10) Extent of corporate transparency index (0–10) Getting electricity (rank) 5 179 (rank) 189 Score for getting electricity (0–100) 30.81 Enforcing contracts (rank) 151 Score for enforcing contracts (0–100) 22.21 Paying taxes Procedures (number) 8.6 1,442 56.13 Time (days) Score for paying taxes (0–100) 150.2 Time (days) Payments (number per year) 33 Cost (% of claim value) 66.8 2,155.9 Cost (% of income per capita) Time (hours per year) Quality of judicial processes index (0–18) 7.5 0 Reliability of supply and transparency of tariffs index (0–8) 435 Total tax and contribution rate (% of profit) 33.4 183 44.36 (rank) Resolving insolvency (rank) 153 Postfiling index (0–100) Registering property Score for resolving insolvency (0–100) 28.20 28.91 Score for registering property (0–100) 8 Time (years) 4.0 Procedures (number) 270.8 Time (days) Cost (% of estate) 8.0 Recovery rate (cents on the dollar) Cost (% of property value) 7.2 29.2 Quality of land administration index (0–30) 6.5 Strength of insolvency framework index (0–16) 4.0 GNI per capita (US$) Latin America & Caribbean 15,540 BARBADOS Ease of doing business score (0–100) 56.78 Ease of doing business rank (1–190) 129 Population 285,719 (rank) 101 Getting credit (rank) 144 Trading across borders (rank) 132 Starting a business 85.15 Score for starting a business (0–100) Score for trading across borders (0–100) 61.88 Score for getting credit (0–100) 30.00 Strength of legal rights index (0–12) 6 Procedures (number) 8 Time to export 15 Depth of credit information index (0–8) 0 Documentary compliance (hours) 54 Time (days) 7.3 Credit bureau coverage (% of adults) 0.0 Border compliance (hours) 41 Cost (% of income per capita) Cost to export 0.0 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) Documentary compliance (US$) 109 (rank) 154 (rank) 168 Border compliance (US$) 350 Dealing with construction permits Protecting minority investors Score for protecting minority investors (0–100) Time to import 56.64 35.00 Score for dealing with construction permits (0–100) Extent of disclosure index (0–10) 2 Documentary compliance (hours) Procedures (number) 9 74 442 Extent of director liability index (0–10) 2 Border compliance (hours) 104 Time (days) Cost (% of warehouse value) Ease of shareholder suits index (0–10) 7 Cost to import 0.2 Building quality control index (0–15) Extent of shareholder rights index (0–10) 4 Documentary compliance (US$) 146 6.5 1 1,585 Extent of ownership and control index (0–10) Border compliance (US$) (rank) 114 Extent of corporate transparency index (0–10) Getting electricity 5 Score for getting electricity (0–100) 65.12 Enforcing contracts (rank) 170 Procedures (number) 8 Paying taxes (rank) 93 Score for enforcing contracts (0–100) 38.02 Time (days) 88 71.88 Time (days) 1,340 Score for paying taxes (0–100) 61.3 19.7 29 Cost (% of claim value) Cost (% of income per capita) Payments (number per year) 6 Reliability of supply and transparency of tariffs index (0–8) 245 Quality of judicial processes index (0–18) 6.5 Time (hours per year) Total tax and contribution rate (% of profit) 35.3 Registering property (rank) 129 Postfiling index (0–100) 74.08 Resolving insolvency (rank) 34 Score for registering property (0–100) 54.33 69.79 Score for resolving insolvency (0–100) 6 Time (years) Procedures (number) 1.8 Time (days) 105 Cost (% of estate) 15.0 Cost (% of property value) 4.4 Recovery rate (cents on the dollar) 65.8 Quality of land administration index (0–30) 11.5 Strength of insolvency framework index (0–16) 11.0 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

164 157 COUNTRY TABLES Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 5,280 Europe & Central Asia BELARUS Ease of doing business score (0–100) 75.77 Ease of doing business rank (1–190) Population 37 9,507,875 (rank) 85 (rank) (rank) 25 Starting a business 29 Getting credit Trading across borders ✔ Score for trading across borders (0–100) 96.21 55.00 Score for getting credit (0–100) 93.39 Score for starting a business (0–100) Time to export 4 Strength of legal rights index (0–12) Procedures (number) 4 Depth of credit information index (0–8) Documentary compliance (hours) 4 Time (days) 9 7 0.0 5 Credit bureau coverage (% of adults) Border compliance (hours) Cost (% of income per capita) 0.5 Cost to export 0.0 Credit registry coverage (% of adults) Minimum capital (% of income per capita) 48.8 60 Documentary compliance (US$) (rank) 46 Protecting minority investors (rank) Dealing with construction permits Border compliance (US$) 108 51 ✔ Score for protecting minority investors (0–100) 63.33 Time to import Score for dealing with construction permits (0–100) 74.69 Extent of disclosure index (0–10) 7 4 Procedures (number) 15 Documentary compliance (hours) 2 0 Extent of director liability index (0–10) Time (days) 160 Border compliance (hours) 8 Cost to import 1.9 Cost (% of warehouse value) Ease of shareholder suits index (0–10) Extent of shareholder rights index (0–10) 6 Documentary compliance (US$) 0 Building quality control index (0–15) 13.0 Border compliance (US$) 7 Extent of ownership and control index (0–10) 0 20 8 (rank) Extent of corporate transparency index (0–10) Getting electricity Enforcing contracts (rank) 29 Score for getting electricity (0–100) 90.24 Paying taxes (rank) 99 Score for enforcing contracts (0–100) 69.44 3 Procedures (number) 105 Score for paying taxes (0–100) 70.68 Time (days) Time (days) 275 Cost (% of income per capita) Payments (number per year) 7 Cost (% of claim value) 23.4 97.8 8 Reliability of supply and transparency of tariffs index (0–8) Quality of judicial processes index (0–18) 8.5 Time (hours per year) 184 Total tax and contribution rate (% of profit) 53.3 50.00 Resolving insolvency (rank) 72 Postfiling index (0–100) (rank) Registering property 5 52.58 92.19 Score for registering property (0–100) Score for resolving insolvency (0–100) Procedures (number) 2 Time (years) 1.5 Cost (% of estate) 17.0 Time (days) 3 Recovery rate (cents on the dollar) Cost (% of property value) 0.0 39.6 Strength of insolvency framework index (0–16) Quality of land administration index (0–30) 23.5 10.0 GNI per capita (US$) 41,790 OECD high income BELGIUM Ease of doing business score (0–100) 73.95 Ease of doing business rank (1–190) Population 11,372,068 45 (rank) 33 Trading across borders Getting credit (rank) 60 Starting a business (rank) 1 ✔ Score for starting a business (0–100) Score for getting credit (0–100) 65.00 Score for trading across borders (0–100) 100.00 93.03 4 Strength of legal rights index (0–12) Procedures (number) 8 Time to export 4 5 Documentary compliance (hours) 1 Time (days) Depth of credit information index (0–8) Credit bureau coverage (% of adults) 0.0 Cost (% of income per capita) 0 5.4 Border compliance (hours) Cost to export 16.0 Credit registry coverage (% of adults) 95.7 Minimum capital (% of income per capita) 0 Documentary compliance (US$) Dealing with construction permits (rank) Protecting minority investors (rank) 57 Border compliance (US$) 0 38 75.42 61.67 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 10 Extent of disclosure index (0–10) 8 Procedures (number) 1 Documentary compliance (hours) Time (days) 212 Extent of director liability index (0–10) 6 Border compliance (hours) 0 Cost (% of warehouse value) 0.9 Ease of shareholder suits index (0–10) 7 Cost to import Building quality control index (0–15) 12.0 5 Documentary compliance (US$) 0 Extent of shareholder rights index (0–10) 4 Border compliance (US$) Extent of ownership and control index (0–10) 0 112 Getting electricity Extent of corporate transparency index (0–10) (rank) 7 (rank) Enforcing contracts 54 Score for getting electricity (0–100) 67.31 (rank) 60 Score for enforcing contracts (0–100) 64.25 Procedures (number) 6 Paying taxes 77.48 Time (days) 505 Score for paying taxes (0–100) 201 Time (days) Cost (% of income per capita) 11 Cost (% of claim value) 18.0 96.1 Payments (number per year) 8 136 Quality of judicial processes index (0–18) 8.0 Reliability of supply and transparency of tariffs index (0–8) Time (hours per year) 57.7 Total tax and contribution rate (% of profit) Registering property Postfiling index (0–100) 83.45 (rank) Resolving insolvency (rank) 8 143 ✔ 51.41 Score for resolving insolvency (0–100) 83.88 Score for registering property (0–100) 8 Procedures (number) 0.9 Time (years) 56 Cost (% of estate) Time (days) 3.5 Recovery rate (cents on the dollar) Cost (% of property value) 12.7 89.1 Quality of land administration index (0–30) 22.5 Strength of insolvency framework index (0–16) 11.5 GNI per capita (US$) 4,390 Latin America & Caribbean BELIZE Ease of doing business score (0–100) 57.13 Ease of doing business rank (1–190) 125 Population 374,681 (rank) 162 Starting a business (rank) 172 Trading across borders (rank) 111 Getting credit Score for starting a business (0–100) Score for getting credit (0–100) 20.00 Score for trading across borders (0–100) 68.13 73.22 9 4 Procedures (number) Strength of legal rights index (0–12) Time to export Time (days) Depth of credit information index (0–8) 0 Documentary compliance (hours) 38 43 Cost (% of income per capita) 34.7 Credit bureau coverage (% of adults) 0.0 Border compliance (hours) 96 Cost to export Minimum capital (% of income per capita) 0.0 0.0 Credit registry coverage (% of adults) 28 Documentary compliance (US$) 119 Protecting minority investors (rank) 132 Border compliance (US$) 710 Dealing with construction permits (rank) 65.24 Score for protecting minority investors (0–100) Time to import Score for dealing with construction permits (0–100) 43.33 16 3 Documentary compliance (hours) 36 Procedures (number) Extent of disclosure index (0–10) 127 Extent of director liability index (0–10) 4 Border compliance (hours) 48 Time (days) 2.5 Cost (% of warehouse value) 7 Cost to import Ease of shareholder suits index (0–10) 7.0 6 Documentary compliance (US$) 75 Building quality control index (0–15) Extent of shareholder rights index (0–10) 1 Border compliance (US$) 688 Extent of ownership and control index (0–10) Getting electricity 91 Extent of corporate transparency index (0–10) 5 (rank) Score for getting electricity (0–100) 72.96 Enforcing contracts (rank) 133 Procedures (number) 5 Paying taxes (rank) 52 Score for enforcing contracts (0–100) 50.11 Time (days) 66 79.90 Time (days) 892 Score for paying taxes (0–100) 321.3 27.5 29 Cost (% of claim value) Cost (% of income per capita) Payments (number per year) 4 Reliability of supply and transparency of tariffs index (0–8) 147 Quality of judicial processes index (0–18) 8.0 Time (hours per year) Total tax and contribution rate (% of profit) 31.1 Registering property (rank) 135 Postfiling index (0–100) 85.09 Resolving insolvency (rank) 87 Score for registering property (0–100) 52.42 45.94 Score for resolving insolvency (0–100) 9 Time (years) Procedures (number) 2.0 Time (days) 60 Cost (% of estate) 22.5 Cost (% of property value) 4.8 Recovery rate (cents on the dollar) 56.3 Quality of land administration index (0–30) 11.0 Strength of insolvency framework index (0–16) 5.0 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

165 DOING BUSINESS 2019 158 Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 800 Sub-Saharan Africa BENIN 51.42 Ease of doing business score (0–100) Ease of doing business rank (1–190) Population 153 11,175,692 Getting credit 107 144 Trading across borders (rank) Starting a business (rank) 61 (rank) ✔ 30.00 Score for trading across borders (0–100) 68.94 90.60 Score for starting a business (0–100) Score for getting credit (0–100) Time to export 6 Strength of legal rights index (0–12) Procedures (number) 5.5 0 48 Time (days) Documentary compliance (hours) 8.5 Depth of credit information index (0–8) 0.0 Border compliance (hours) 78 Cost (% of income per capita) 3.6 Credit bureau coverage (% of adults) Cost to export 0.8 Credit registry coverage (% of adults) 5.2 Minimum capital (% of income per capita) Documentary compliance (US$) 80 51 Protecting minority investors (rank) 149 Dealing with construction permits 354 (rank) Border compliance (US$) 73.95 40.00 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) Extent of disclosure index (0–10) 7 59 Procedures (number) 13 Documentary compliance (hours) 1 82 Extent of director liability index (0–10) Time (days) 88 Border compliance (hours) 5 Cost to import 2.9 Cost (% of warehouse value) Ease of shareholder suits index (0–10) Extent of shareholder rights index (0–10) 4 Documentary compliance (US$) 110 Building quality control index (0–15) 9.0 Border compliance (US$) 3 Extent of ownership and control index (0–10) 599 176 4 Getting electricity (rank) Extent of corporate transparency index (0–10) (rank) Enforcing contracts Score for getting electricity (0–100) 171 33.84 ✔ 5 Paying taxes (rank) 176 Score for enforcing contracts (0–100) 37.27 Procedures (number) 90 Score for paying taxes (0–100) 44.73 Time (days) Time (days) 750 Cost (% of income per capita) Payments (number per year) 57 Cost (% of claim value) 64.7 11,987.0 0 Time (hours per year) Quality of judicial processes index (0–18) 6.5 Reliability of supply and transparency of tariffs index (0–8) 270 Total tax and contribution rate (% of profit) 57.4 49.31 Resolving insolvency (rank) 110 Postfiling index (0–100) (rank) Registering property 130 40.68 54.19 Score for registering property (0–100) Score for resolving insolvency (0–100) Procedures (number) 4 Time (years) 4.0 Cost (% of estate) 21.5 Time (days) 120 Recovery rate (cents on the dollar) Cost (% of property value) 3.4 23.3 Strength of insolvency framework index (0–16) Quality of land administration index (0–30) 9.0 6.5 GNI per capita (US$) 2,720 South Asia BHUTAN Ease of doing business score (0–100) 66.08 Ease of doing business rank (1–190) Population 807,610 81 (rank) 91 Getting credit (rank) 85 Trading across borders (rank) 28 Starting a business Score for starting a business (0–100) 86.38 55.00 Score for trading across borders (0–100) 94.25 Score for getting credit (0–100) 8 Strength of legal rights index (0–12) Procedures (number) 4 Time to export 12 7 Documentary compliance (hours) 9 Time (days) Depth of credit information index (0–8) Credit bureau coverage (% of adults) 35.9 Cost (% of income per capita) 5 3.5 Border compliance (hours) Cost to export 0.0 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) 50 Documentary compliance (US$) Dealing with construction permits (rank) Protecting minority investors (rank) 125 Border compliance (US$) 59 88 68.85 46.67 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 21 Extent of disclosure index (0–10) 4 Procedures (number) 8 Documentary compliance (hours) Time (days) 150 Extent of director liability index (0–10) 4 Border compliance (hours) 5 Cost (% of warehouse value) 1.0 Ease of shareholder suits index (0–10) 6 Cost to import Building quality control index (0–15) 12.0 4 Documentary compliance (US$) 50 Extent of shareholder rights index (0–10) 5 Border compliance (US$) Extent of ownership and control index (0–10) 110 73 (rank) Extent of corporate transparency index (0–10) Getting electricity 5 (rank) Enforcing contracts 28 77.39 Score for getting electricity (0–100) Paying taxes Procedures (number) 15 Score for enforcing contracts (0–100) 69.99 4 (rank) ✔ Score for paying taxes (0–100) 89.28 Time (days) 225 Time (days) 61 Cost (% of income per capita) 18 Cost (% of claim value) 23.1 412.3 Payments (number per year) Time (hours per year) Quality of judicial processes index (0–18) 8.0 4 Reliability of supply and transparency of tariffs index (0–8) 52 Total tax and contribution rate (% of profit) 35.3 (rank) Postfiling index (0–100) 95.50 Resolving insolvency (rank) 168 Registering property 54 72.99 Score for resolving insolvency (0–100) 0.00 Score for registering property (0–100) 3 Procedures (number) no practice Time (years) 77 Cost (% of estate) Time (days) no practice Recovery rate (cents on the dollar) Cost (% of property value) 5.0 0.0 Quality of land administration index (0–30) 23.5 Strength of insolvency framework index (0–16) 0.0 GNI per capita (US$) 3,130 Latin America & Caribbean BOLIVIA Ease of doing business score (0–100) 50.32 Ease of doing business rank (1–190) 156 Population 11,051,600 Starting a business (rank) 96 Getting credit (rank) 134 Trading across borders (rank) 178 ✔ 64.33 35.00 Score for trading across borders (0–100) 71.59 Score for starting a business (0–100) Score for getting credit (0–100) 14 Strength of legal rights index (0–12) Procedures (number) 0 Time to export Time (days) 43.5 Depth of credit information index (0–8) 7 Documentary compliance (hours) 144 Cost (% of income per capita) 46.0 Credit bureau coverage (% of adults) 52.9 Border compliance (hours) 48 Cost to export Minimum capital (% of income per capita) 17.6 0.0 Credit registry coverage (% of adults) 25 Documentary compliance (US$) 160 Protecting minority investors (rank) 149 Border compliance (US$) 65 Dealing with construction permits (rank) 55.69 Score for protecting minority investors (0–100) Time to import Score for dealing with construction permits (0–100) 40.00 13 1 Documentary compliance (hours) 72 Procedures (number) Extent of disclosure index (0–10) 322 Extent of director liability index (0–10) 5 Border compliance (hours) 114 Time (days) 1.3 Cost (% of warehouse value) 6 Cost to import Ease of shareholder suits index (0–10) 7.0 6 Documentary compliance (US$) 30 Building quality control index (0–15) Extent of shareholder rights index (0–10) 2 Border compliance (US$) 315 Extent of ownership and control index (0–10) Getting electricity 111 Extent of corporate transparency index (0–10) 4 (rank) Score for getting electricity (0–100) 68.17 Enforcing contracts (rank) 113 Procedures (number) 8 Paying taxes (rank) 186 Score for enforcing contracts (0–100) 54.65 Time (days) 42 21.62 Time (days) 591 Score for paying taxes (0–100) 691.3 25.0 42 Cost (% of claim value) Cost (% of income per capita) Payments (number per year) 6 Reliability of supply and transparency of tariffs index (0–8) 1,025 Quality of judicial processes index (0–18) 5.5 Time (hours per year) Total tax and contribution rate (% of profit) 83.7 Registering property (rank) 148 Postfiling index (0–100) 50.00 Resolving insolvency (rank) 102 Score for registering property (0–100) 49.90 42.26 Score for resolving insolvency (0–100) 7 Time (years) Procedures (number) 1.8 Time (days) 90 Cost (% of estate) 14.5 Cost (% of property value) 4.7 Recovery rate (cents on the dollar) 40.8 Quality of land administration index (0–30) 7.0 Strength of insolvency framework index (0–16) 6.5 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

166 159 COUNTRY TABLES Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 4,940 Europe & Central Asia BOSNIA AND HERZEGOVINA 63.82 Ease of doing business score (0–100) Ease of doing business rank (1–190) Population 89 3,507,017 (rank) 37 Trading across borders (rank) Getting credit Starting a business (rank) 60 183 Score for trading across borders (0–100) 91.87 65.00 59.57 Score for starting a business (0–100) Score for getting credit (0–100) Time to export 7 Strength of legal rights index (0–12) Procedures (number) 13 6 4 Time (days) Documentary compliance (hours) 81 Depth of credit information index (0–8) 12.9 Border compliance (hours) 5 Cost (% of income per capita) 14.9 Credit bureau coverage (% of adults) Cost to export 43.7 Credit registry coverage (% of adults) 11.1 Minimum capital (% of income per capita) Documentary compliance (US$) 92 167 Protecting minority investors (rank) 72 Dealing with construction permits 106 (rank) Border compliance (US$) 53.22 58.33 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) Extent of disclosure index (0–10) 3 8 Procedures (number) 16 Documentary compliance (hours) 6 6 Extent of director liability index (0–10) Time (days) 193 Border compliance (hours) 5 Cost to import 16.3 Cost (% of warehouse value) Ease of shareholder suits index (0–10) Extent of shareholder rights index (0–10) 8 Documentary compliance (US$) 97 Building quality control index (0–15) 13.0 Border compliance (US$) 6 Extent of ownership and control index (0–10) 109 130 7 (rank) Extent of corporate transparency index (0–10) Getting electricity Enforcing contracts (rank) 75 Score for getting electricity (0–100) 60.26 Paying taxes (rank) 139 Score for enforcing contracts (0–100) 59.67 8 Procedures (number) 125 Score for paying taxes (0–100) 60.43 Time (days) 595 Time (days) 332.6 Cost (% of income per capita) 33 Cost (% of claim value) 36.0 Payments (number per year) 6 Time (hours per year) Quality of judicial processes index (0–18) 10.5 Reliability of supply and transparency of tariffs index (0–8) 411 Total tax and contribution rate (% of profit) 23.7 (rank) 37 Resolving insolvency Registering property Postfiling index (0–100) (rank) 47.68 99 67.83 61.99 Score for registering property (0–100) Score for resolving insolvency (0–100) Procedures (number) 7 Time (years) 3.3 Cost (% of estate) 9.0 Time (days) 24 Recovery rate (cents on the dollar) Cost (% of property value) 5.2 38.9 Strength of insolvency framework index (0–16) Quality of land administration index (0–30) 13.0 15.0 GNI per capita (US$) 6,820 Sub-Saharan Africa BOTSWANA Ease of doing business score (0–100) 65.40 Ease of doing business rank (1–190) Population 2,291,661 86 (rank) 157 Getting credit (rank) 85 Trading across borders (rank) 55 Starting a business Score for starting a business (0–100) 76.22 55.00 Score for trading across borders (0–100) 86.65 Score for getting credit (0–100) 9 Strength of legal rights index (0–12) Procedures (number) 5 Time to export 48 6 Documentary compliance (hours) 18 Time (days) Depth of credit information index (0–8) Credit bureau coverage (% of adults) 53.6 Cost (% of income per capita) 5 0.6 Border compliance (hours) Cost to export 0.0 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) 179 Documentary compliance (US$) Dealing with construction permits (rank) 31 Protecting minority investors (rank) 83 Border compliance (US$) 317 ✔ Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 56.67 Time to import 76.58 15 Extent of disclosure index (0–10) 7 Procedures (number) 3 Documentary compliance (hours) Time (days) 102 Extent of director liability index (0–10) 8 Border compliance (hours) 4 Cost (% of warehouse value) 0.4 Ease of shareholder suits index (0–10) 3 Cost to import Building quality control index (0–15) 10.5 6 Documentary compliance (US$) 67 Extent of shareholder rights index (0–10) 3 Border compliance (US$) Extent of ownership and control index (0–10) 98 133 (rank) Extent of corporate transparency index (0–10) Getting electricity 7 (rank) Enforcing contracts 134 59.43 Score for getting electricity (0–100) (rank) Procedures (number) Score for enforcing contracts (0–100) 49.99 5 Paying taxes 51 660 Time (days) 80.01 77 Time (days) Score for paying taxes (0–100) Payments (number per year) 34 Cost (% of claim value) 39.8 Cost (% of income per capita) 266.5 Time (hours per year) 7.0 Quality of judicial processes index (0–18) 0 Reliability of supply and transparency of tariffs index (0–8) 120 25.1 Total tax and contribution rate (% of profit) Registering property (rank) Postfiling index (0–100) 82.70 Resolving insolvency (rank) 81 80 65.43 Score for resolving insolvency (0–100) 47.99 Score for registering property (0–100) 4 Time (years) 1.7 Procedures (number) 27 Cost (% of estate) Time (days) 18.0 Recovery rate (cents on the dollar) Cost (% of property value) 5.1 65.9 Quality of land administration index (0–30) 10.0 Strength of insolvency framework index (0–16) 4.0 GNI per capita (US$) 8,580 Latin America & Caribbean BRAZIL Ease of doing business score (0–100) 60.01 Ease of doing business rank (1–190) 109 Population 209,288,278 Starting a business (rank) 140 106 Getting credit (rank) 99 (rank) Trading across borders ✔ ✔ ✔ 80.23 50.00 Score for trading across borders (0–100) 69.85 Score for starting a business (0–100) Score for getting credit (0–100) 10.6 Strength of legal rights index (0–12) Procedures (number) 2 Time to export Time (days) 20.5 Depth of credit information index (0–8) 8 Documentary compliance (hours) 12 Cost (% of income per capita) 5.0 Credit bureau coverage (% of adults) 80.5 Border compliance (hours) 49 Cost to export Minimum capital (% of income per capita) 78.7 0.0 Credit registry coverage (% of adults) 226.4 Documentary compliance (US$) 175 Protecting minority investors (rank) 48 Border compliance (US$) 862 Dealing with construction permits (rank) 49.86 Score for protecting minority investors (0–100) Time to import Score for dealing with construction permits (0–100) 65.00 19.2 5 Documentary compliance (hours) 24 Procedures (number) Extent of disclosure index (0–10) 434 Extent of director liability index (0–10) 8 Border compliance (hours) 30 Time (days) 0.7 Cost (% of warehouse value) 4 Cost to import Ease of shareholder suits index (0–10) 9.0 7 Documentary compliance (US$) 106.9 Building quality control index (0–15) Extent of shareholder rights index (0–10) 6 Border compliance (US$) 375 Extent of ownership and control index (0–10) Getting electricity 40 Extent of corporate transparency index (0–10) 9 (rank) ✔ 84.37 Enforcing contracts (rank) 48 Score for getting electricity (0–100) Procedures (number) 4 Paying taxes (rank) 184 Score for enforcing contracts (0–100) 66.00 Time (days) 64.4 34.40 Time (days) 731 Score for paying taxes (0–100) 52.5 22.0 10 Cost (% of claim value) Cost (% of income per capita) Payments (number per year) 6 Reliability of supply and transparency of tariffs index (0–8) 1,958 Quality of judicial processes index (0–18) 13.1 Time (hours per year) Total tax and contribution rate (% of profit) 65.1 77 Registering property (rank) 137 Postfiling index (0–100) 7.80 Resolving insolvency (rank) ✘ Score for registering property (0–100) Score for resolving insolvency (0–100) 48.48 51.94 13.6 Procedures (number) 4.0 Time (years) Time (days) 31.4 Cost (% of estate) 12.0 Cost (% of property value) 3.6 Recovery rate (cents on the dollar) 14.6 Quality of land administration index (0–30) 13.8 Strength of insolvency framework index (0–16) 13.0 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

167 DOING BUSINESS 2019 160 Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 29,600 East Asia & Pacific BRUNEI DARUSSALAM 72.03 Ease of doing business score (0–100) Ease of doing business rank (1–190) 428,697 55 Population (rank) 1 (rank) (rank) 149 Starting a business 16 Getting credit Trading across borders ✔ ✔ Score for trading across borders (0–100) 58.70 100.00 Score for getting credit (0–100) 94.92 Score for starting a business (0–100) Time to export 3.5 Strength of legal rights index (0–12) Procedures (number) 12 Depth of credit information index (0–8) Documentary compliance (hours) 155 Time (days) 5.5 8 0.0 117 Credit bureau coverage (% of adults) Border compliance (hours) Cost (% of income per capita) 1.2 Cost to export 0.0 Credit registry coverage (% of adults) Minimum capital (% of income per capita) 75.2 90 Documentary compliance (US$) 55 Protecting minority investors (rank) Dealing with construction permits Border compliance (US$) 340 (rank) 48 73.49 65.00 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) Extent of disclosure index (0–10) 4 132 Procedures (number) 20 Documentary compliance (hours) 8 48 Extent of director liability index (0–10) Time (days) 83 Border compliance (hours) 8 Cost to import 1.9 Cost (% of warehouse value) Ease of shareholder suits index (0–10) Extent of shareholder rights index (0–10) 7 Documentary compliance (US$) 50 Building quality control index (0–15) 12.0 Border compliance (US$) 4 Extent of ownership and control index (0–10) 395 (rank) Extent of corporate transparency index (0–10) 8 Getting electricity 31 ✔ Enforcing contracts (rank) 67 Score for getting electricity (0–100) 86.57 Paying taxes (rank) 84 Score for enforcing contracts (0–100) 60.95 5 Procedures (number) 35 Score for paying taxes (0–100) 74.03 Time (days) 540 Time (days) Cost (% of income per capita) Payments (number per year) 5 Cost (% of claim value) 36.6 40.1 7 Time (hours per year) Quality of judicial processes index (0–18) 10.5 Reliability of supply and transparency of tariffs index (0–8) 52.5 Total tax and contribution rate (% of profit) 8.0 Postfiling index (0–100) 0.00 Resolving insolvency (rank) 64 (rank) Registering property 142 55.11 51.48 Score for registering property (0–100) Score for resolving insolvency (0–100) Procedures (number) 7 Time (years) 2.5 Cost (% of estate) 3.5 Time (days) 298.5 Recovery rate (cents on the dollar) Cost (% of property value) 0.6 47.2 Strength of insolvency framework index (0–16) Quality of land administration index (0–30) 9.5 18.0 GNI per capita (US$) 7,760 Europe & Central Asia BULGARIA Ease of doing business score (0–100) 71.24 Ease of doing business rank (1–190) Population 7,075,991 59 (rank) 99 Getting credit (rank) 60 Trading across borders (rank) 21 Starting a business Score for starting a business (0–100) 85.38 65.00 Score for trading across borders (0–100) 97.41 Score for getting credit (0–100) 7 Strength of legal rights index (0–12) Procedures (number) 8 Time to export 23 5 Documentary compliance (hours) 2 Time (days) Depth of credit information index (0–8) Credit bureau coverage (% of adults) 0.0 Cost (% of income per capita) 4 1.1 Border compliance (hours) Cost to export 0.0 Credit registry coverage (% of adults) 75.4 Minimum capital (% of income per capita) 52 Documentary compliance (US$) Dealing with construction permits (rank) Protecting minority investors (rank) 33 Border compliance (US$) 55 37 75.46 68.33 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 18 Extent of disclosure index (0–10) 10 Procedures (number) 1 Documentary compliance (hours) Time (days) 97 Extent of director liability index (0–10) 2 Border compliance (hours) 1 Cost (% of warehouse value) 3.8 Ease of shareholder suits index (0–10) 8 Cost to import Building quality control index (0–15) 14.0 Documentary compliance (US$) 0 Extent of shareholder rights index (0–10) 8 Border compliance (US$) 4 0 Extent of ownership and control index (0–10) Extent of corporate transparency index (0–10) Getting electricity (rank) 9 147 (rank) 42 Score for getting electricity (0–100) 54.93 Enforcing contracts (rank) 92 Score for enforcing contracts (0–100) 67.04 Paying taxes Procedures (number) 6 Score for paying taxes (0–100) 72.00 Time (days) 564 Time (days) 262 Cost (% of income per capita) 14 Cost (% of claim value) 18.6 428.8 Payments (number per year) Time (hours per year) Quality of judicial processes index (0–18) 10.5 6 453 Reliability of supply and transparency of tariffs index (0–8) Total tax and contribution rate (% of profit) 27.7 67 Postfiling index (0–100) Registering property Resolving insolvency (rank) 56 (rank) 71.02 69.32 Score for resolving insolvency (0–100) 57.52 Score for registering property (0–100) 8 Time (years) 3.3 Procedures (number) 19 Time (days) Cost (% of estate) 9.0 Recovery rate (cents on the dollar) Cost (% of property value) 2.9 37.2 Quality of land administration index (0–30) 19.0 Strength of insolvency framework index (0–16) 12.0 GNI per capita (US$) Sub-Saharan Africa 610 BURKINA FASO Ease of doing business score (0–100) 51.57 Ease of doing business rank (1–190) 151 Population 19,193,382 (rank) 79 Getting credit (rank) 144 Trading across borders (rank) 120 Starting a business 88.19 Score for starting a business (0–100) Score for trading across borders (0–100) 66.58 Score for getting credit (0–100) 30.00 Strength of legal rights index (0–12) 6 Procedures (number) 3 Time to export 13 Depth of credit information index (0–8) 0 Documentary compliance (hours) 84 Time (days) 42.5 Credit bureau coverage (% of adults) 1.1 Border compliance (hours) 75 Cost (% of income per capita) Cost to export 6.6 Credit registry coverage (% of adults) 0.5 Minimum capital (% of income per capita) Documentary compliance (US$) 86 (rank) 58 (rank) 149 Border compliance (US$) 261 Dealing with construction permits Protecting minority investors Score for protecting minority investors (0–100) Time to import 73.25 40.00 Score for dealing with construction permits (0–100) Extent of disclosure index (0–10) 7 Documentary compliance (hours) Procedures (number) 14 96 121 Extent of director liability index (0–10) 1 Border compliance (hours) 102 Time (days) Cost (% of warehouse value) Ease of shareholder suits index (0–10) 5 Cost to import 4.7 Building quality control index (0–15) Extent of shareholder rights index (0–10) 4 Documentary compliance (US$) 197 12.0 3 265 Extent of ownership and control index (0–10) Border compliance (US$) (rank) 181 Extent of corporate transparency index (0–10) Getting electricity 4 Score for getting electricity (0–100) 29.42 Enforcing contracts (rank) 165 ✔ Procedures (number) 4 Paying taxes (rank) 153 Score for enforcing contracts (0–100) 41.05 Time (days) 169 55.89 Time (days) 446 Score for paying taxes (0–100) 9,353.5 81.7 45 Cost (% of claim value) Cost (% of income per capita) Payments (number per year) 0 Reliability of supply and transparency of tariffs index (0–8) 270 Quality of judicial processes index (0–18) 7.5 Time (hours per year) Total tax and contribution rate (% of profit) 41.3 Registering property (rank) 145 Postfiling index (0–100) 49.31 Resolving insolvency (rank) 107 Score for registering property (0–100) 50.47 40.90 Score for resolving insolvency (0–100) 4 Time (years) Procedures (number) 4.0 Time (days) 67 Cost (% of estate) 21.0 Cost (% of property value) 12.0 Recovery rate (cents on the dollar) 23.7 Quality of land administration index (0–30) 11.5 Strength of insolvency framework index (0–16) 9.0 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

168 161 COUNTRY TABLES Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 290 Sub-Saharan Africa BURUNDI Ease of doing business score (0–100) 47.41 Ease of doing business rank (1–190) Population 168 10,864,245 (rank) 178 (rank) (rank) 169 Starting a business 17 Getting credit Trading across borders ✔ Score for trading across borders (0–100) 47.34 10.00 Score for getting credit (0–100) 94.84 Score for starting a business (0–100) Time to export 3 Strength of legal rights index (0–12) Procedures (number) 2 Depth of credit information index (0–8) Documentary compliance (hours) 120 Time (days) 4 0 0.0 59 Credit bureau coverage (% of adults) Border compliance (hours) Cost (% of income per capita) 10.7 Cost to export 0.0 Credit registry coverage (% of adults) Minimum capital (% of income per capita) 4.0 150 Documentary compliance (US$) (rank) 162 Protecting minority investors (rank) Dealing with construction permits Border compliance (US$) 109 132 ✔ Score for protecting minority investors (0–100) 43.33 Time to import Score for dealing with construction permits (0–100) 55.14 Extent of disclosure index (0–10) 8 180 Procedures (number) 15 Documentary compliance (hours) 7 154 Extent of director liability index (0–10) Time (days) 70 Border compliance (hours) 2 Cost to import 10.7 Cost (% of warehouse value) Ease of shareholder suits index (0–10) Extent of shareholder rights index (0–10) 6 Documentary compliance (US$) 1,025 Building quality control index (0–15) 4.0 Border compliance (US$) 1 Extent of ownership and control index (0–10) 444 183 2 (rank) Extent of corporate transparency index (0–10) Getting electricity Enforcing contracts (rank) 158 Score for getting electricity (0–100) 26.45 Paying taxes (rank) 138 Score for enforcing contracts (0–100) 42.97 5 Procedures (number) 158 Score for paying taxes (0–100) 60.87 Time (days) Time (days) 832 Cost (% of income per capita) Payments (number per year) 24 Cost (% of claim value) 36.1 13,108.3 0 Time (hours per year) Quality of judicial processes index (0–18) 5.0 Reliability of supply and transparency of tariffs index (0–8) 232 Total tax and contribution rate (% of profit) 41.2 28.21 Resolving insolvency (rank) 147 Registering property (rank) Postfiling index (0–100) 97 ✔ Score for resolving insolvency (0–100) 30.61 Score for registering property (0–100) 62.58 Procedures (number) 5 Time (years) 5.0 Cost (% of estate) Time (days) 23 30.0 3.1 7.5 Cost (% of property value) Recovery rate (cents on the dollar) Strength of insolvency framework index (0–16) Quality of land administration index (0–30) 4.5 8.5 GNI per capita (US$) 2,990 Sub-Saharan Africa CABO VERDE Ease of doing business score (0–100) 55.95 Ease of doing business rank (1–190) Population 546,388 131 (rank) 116 Getting credit (rank) 134 Trading across borders (rank) 114 Starting a business 83.51 Score for starting a business (0–100) 35.00 Score for trading across borders (0–100) 67.41 Score for getting credit (0–100) 8 Strength of legal rights index (0–12) Procedures (number) 1 Time to export 18 6 Documentary compliance (hours) 24 Time (days) Depth of credit information index (0–8) Credit bureau coverage (% of adults) 0.0 Cost (% of income per capita) 72 14.4 Border compliance (hours) Cost to export 0.0 Credit registry coverage (% of adults) 19.9 Minimum capital (% of income per capita) 125 Documentary compliance (US$) Dealing with construction permits (rank) Protecting minority investors (rank) 165 Border compliance (US$) 780 43 75.01 36.67 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 16 Extent of disclosure index (0–10) 1 Procedures (number) 24 Documentary compliance (hours) Time (days) 108 Extent of director liability index (0–10) 5 Border compliance (hours) 60 Cost (% of warehouse value) 1.1 Ease of shareholder suits index (0–10) 6 Cost to import Building quality control index (0–15) 11.0 Documentary compliance (US$) 125 Extent of shareholder rights index (0–10) 3 Border compliance (US$) 5 588 Extent of ownership and control index (0–10) Extent of corporate transparency index (0–10) Getting electricity (rank) 2 155 (rank) 45 Score for getting electricity (0–100) 53.50 Enforcing contracts (rank) 77 Score for enforcing contracts (0–100) 66.69 Paying taxes Procedures (number) 7 Score for paying taxes (0–100) 75.02 Time (days) 425 Time (days) 88 Cost (% of income per capita) 30 Cost (% of claim value) 19.8 1,127.4 Payments (number per year) Time (hours per year) Quality of judicial processes index (0–18) 8.5 2 180 Reliability of supply and transparency of tariffs index (0–8) Total tax and contribution rate (% of profit) 37.0 70 Postfiling index (0–100) Registering property Resolving insolvency (rank) 168 (rank) 80.65 66.65 Score for resolving insolvency (0–100) 0.00 Score for registering property (0–100) 6 Time (years) no practice Procedures (number) 22 Time (days) Cost (% of estate) no practice Recovery rate (cents on the dollar) Cost (% of property value) 2.3 0.0 Quality of land administration index (0–30) 10.0 Strength of insolvency framework index (0–16) 0.0 GNI per capita (US$) 1,230 East Asia & Pacific CAMBODIA Ease of doing business score (0–100) 54.80 Ease of doing business rank (1–190) 138 Population 16,005,373 (rank) 185 Getting credit (rank) 22 Trading across borders (rank) 115 Starting a business 52.80 Score for starting a business (0–100) Score for trading across borders (0–100) 67.28 Score for getting credit (0–100) 80.00 Strength of legal rights index (0–12) 10 Procedures (number) 9 Time to export 99 Depth of credit information index (0–8) 6 Documentary compliance (hours) 132 Time (days) 47.4 Credit bureau coverage (% of adults) 50.4 Border compliance (hours) 48 Cost (% of income per capita) Cost to export 76.2 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) Documentary compliance (US$) 100 Dealing with construction permits (rank) Protecting minority investors (rank) 110 Border compliance (US$) 375 179 ✔ 44.23 Score for dealing with construction permits (0–100) Time to import 50.00 Score for protecting minority investors (0–100) 20 6 Documentary compliance (hours) 132 Procedures (number) Extent of disclosure index (0–10) 652 Extent of director liability index (0–10) 10 Border compliance (hours) 8 Time (days) 3.3 Cost (% of warehouse value) 4 Cost to import Ease of shareholder suits index (0–10) 8.0 1 Documentary compliance (US$) 120 Building quality control index (0–15) Extent of shareholder rights index (0–10) 3 Border compliance (US$) 240 Extent of ownership and control index (0–10) Getting electricity 141 Extent of corporate transparency index (0–10) 6 (rank) Score for getting electricity (0–100) 57.04 Enforcing contracts (rank) 182 Procedures (number) 4 Paying taxes (rank) 137 Score for enforcing contracts (0–100) 31.75 Time (days) 179 61.28 Time (days) 483 Score for paying taxes (0–100) 1,837.4 103.4 40 Cost (% of claim value) Cost (% of income per capita) Payments (number per year) 3 Reliability of supply and transparency of tariffs index (0–8) 173 Quality of judicial processes index (0–18) 4.5 Time (hours per year) Total tax and contribution rate (% of profit) 21.7 Registering property (rank) 124 Postfiling index (0–100) 25.97 Resolving insolvency (rank) 79 Score for registering property (0–100) 55.16 48.43 Score for resolving insolvency (0–100) 7 Time (years) Procedures (number) 6.0 Time (days) 55 Cost (% of estate) 18.0 Cost (% of property value) 4.3 Recovery rate (cents on the dollar) 14.5 Quality of land administration index (0–30) 7.5 Strength of insolvency framework index (0–16) 13.0 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

169 DOING BUSINESS 2019 162 Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 1,360 Sub-Saharan Africa CAMEROON 47.78 Ease of doing business score (0–100) Ease of doing business rank (1–190) Population 166 24,053,727 Getting credit 186 73 Trading across borders (rank) 92 Starting a business (rank) (rank) ✔ 60.00 Score for trading across borders (0–100) 15.99 86.26 Score for starting a business (0–100) Score for getting credit (0–100) Time to export 6 Strength of legal rights index (0–12) Procedures (number) 5.5 6 66 Time (days) Documentary compliance (hours) 13.5 Depth of credit information index (0–8) 0.0 Border compliance (hours) 202 Cost (% of income per capita) 24.8 Credit bureau coverage (% of adults) Cost to export 11.1 Credit registry coverage (% of adults) 12.1 Minimum capital (% of income per capita) Documentary compliance (US$) 306 132 Protecting minority investors (rank) 140 Dealing with construction permits 983 (rank) Border compliance (US$) 62.04 41.67 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) Extent of disclosure index (0–10) 7 163 Procedures (number) 15 Documentary compliance (hours) 1 271 Extent of director liability index (0–10) Time (days) 135 Border compliance (hours) 6 Cost to import 13.4 Cost (% of warehouse value) Ease of shareholder suits index (0–10) Extent of shareholder rights index (0–10) 4 Documentary compliance (US$) 849 Building quality control index (0–15) 13.0 Border compliance (US$) 3 Extent of ownership and control index (0–10) 1,407 129 4 Getting electricity (rank) Extent of corporate transparency index (0–10) (rank) Enforcing contracts Score for getting electricity (0–100) 166 61.04 ✔ 4 Paying taxes (rank) 182 Score for enforcing contracts (0–100) 39.91 Procedures (number) 64 Score for paying taxes (0–100) 36.34 Time (days) Time (days) 800 Cost (% of income per capita) Payments (number per year) 44 Cost (% of claim value) 46.6 1,552.7 0 Time (hours per year) Quality of judicial processes index (0–18) 5.0 Reliability of supply and transparency of tariffs index (0–8) 624 Total tax and contribution rate (% of profit) 57.7 49.31 Resolving insolvency (rank) 127 Postfiling index (0–100) (rank) Registering property 176 36.63 37.93 Score for registering property (0–100) Score for resolving insolvency (0–100) Procedures (number) 5 Time (years) 2.8 Cost (% of estate) 33.5 Time (days) 81 Recovery rate (cents on the dollar) Cost (% of property value) 18.7 15.8 Strength of insolvency framework index (0–16) Quality of land administration index (0–30) 7.0 9.0 GNI per capita (US$) 42,870 OECD high income CANADA Ease of doing business score (0–100) 79.26 Ease of doing business rank (1–190) Population 36,708,083 22 (rank) 3 Getting credit (rank) 12 Trading across borders (rank) 50 Starting a business Score for starting a business (0–100) 98.23 85.00 Score for trading across borders (0–100) 88.36 Score for getting credit (0–100) 2 Strength of legal rights index (0–12) Procedures (number) 9 Time to export 1.5 8 Documentary compliance (hours) 1 Time (days) Depth of credit information index (0–8) Credit bureau coverage (% of adults) 100.0 Cost (% of income per capita) 2 0.3 Border compliance (hours) Cost to export 0.0 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) 156 Documentary compliance (US$) Dealing with construction permits (rank) Protecting minority investors (rank) 11 Border compliance (US$) 167 63 72.98 78.33 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 12 Extent of disclosure index (0–10) 8 Procedures (number) 1 Documentary compliance (hours) Time (days) 249 Extent of director liability index (0–10) 9 Border compliance (hours) 2 Cost (% of warehouse value) 1.8 Ease of shareholder suits index (0–10) 9 Cost to import Building quality control index (0–15) 14.0 6 Documentary compliance (US$) 163 Extent of shareholder rights index (0–10) 7 Border compliance (US$) Extent of ownership and control index (0–10) 172 121 Extent of corporate transparency index (0–10) Getting electricity (rank) 8 Enforcing contracts 96 (rank) Score for getting electricity (0–100) 63.78 ✔ (rank) Procedures (number) Score for enforcing contracts (0–100) 57.13 7 Paying taxes 19 137 Time (days) Time (days) 910 Score for paying taxes (0–100) 88.05 Payments (number per year) 119.8 Cost (% of claim value) 22.3 Cost (% of income per capita) 8 Time (hours per year) Quality of judicial processes index (0–18) 11.0 6 Reliability of supply and transparency of tariffs index (0–8) 131 Total tax and contribution rate (% of profit) 20.5 (rank) Postfiling index (0–100) 73.23 Resolving insolvency (rank) 13 Registering property 34 79.31 Score for resolving insolvency (0–100) 81.46 Score for registering property (0–100) 5 Procedures (number) 0.8 Time (years) 4 Cost (% of estate) Time (days) 7.0 Recovery rate (cents on the dollar) Cost (% of property value) 2.9 87.5 Quality of land administration index (0–30) 21.5 Strength of insolvency framework index (0–16) 11.0 GNI per capita (US$) Sub-Saharan Africa 390 CENTRAL AFRICAN REPUBLIC Ease of doing business score (0–100) 36.90 Ease of doing business rank (1–190) 183 Population 4,659,080 Starting a business (rank) 163 Getting credit (rank) 144 Trading across borders (rank) 181 ✔ 60.90 30.00 Score for trading across borders (0–100) 52.36 Score for starting a business (0–100) Score for getting credit (0–100) 10 Strength of legal rights index (0–12) Procedures (number) 6 Time to export Time (days) 22 Depth of credit information index (0–8) 0 Documentary compliance (hours) 48 Cost (% of income per capita) 143.4 Credit bureau coverage (% of adults) 0.0 Border compliance (hours) 141 Cost to export Minimum capital (% of income per capita) 4.6 40.7 Credit registry coverage (% of adults) 60 Documentary compliance (US$) 181 Protecting minority investors (rank) 149 Border compliance (US$) 280 Dealing with construction permits (rank) 40.75 Score for protecting minority investors (0–100) Time to import Score for dealing with construction permits (0–100) 40.00 16 7 Documentary compliance (hours) 120 Procedures (number) Extent of disclosure index (0–10) 219 Extent of director liability index (0–10) 1 Border compliance (hours) 122 Time (days) Cost to import 15.5 5 Cost (% of warehouse value) Ease of shareholder suits index (0–10) 6.0 4 Documentary compliance (US$) 500 Building quality control index (0–15) Extent of shareholder rights index (0–10) 3 Border compliance (US$) 709 Extent of ownership and control index (0–10) Getting electricity (rank) Extent of corporate transparency index (0–10) 4 184 Score for getting electricity (0–100) Enforcing contracts (rank) 183 24.64 ✔ Procedures (number) 7 Paying taxes (rank) 187 Score for enforcing contracts (0–100) 31.39 Time (days) 98 18.89 Time (days) 660 Score for paying taxes (0–100) 11,557.5 82.0 56 Cost (% of claim value) Cost (% of income per capita) Payments (number per year) 0 Reliability of supply and transparency of tariffs index (0–8) 483 Quality of judicial processes index (0–18) 5.5 Time (hours per year) Total tax and contribution rate (% of profit) 73.3 Registering property (rank) 172 Postfiling index (0–100) 5.13 Resolving insolvency (rank) 154 Score for registering property (0–100) 41.94 28.13 Score for resolving insolvency (0–100) 5 Time (years) Procedures (number) 4.8 Time (days) 75 Cost (% of estate) 76.0 Cost (% of property value) 11.0 Recovery rate (cents on the dollar) 0.0 Quality of land administration index (0–30) 3.0 Strength of insolvency framework index (0–16) 9.0 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

170 163 COUNTRY TABLES Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 630 Sub-Saharan Africa CHAD 39.36 Ease of doing business score (0–100) Ease of doing business rank (1–190) Population 181 14,899,994 Getting credit 172 144 Trading across borders (rank) 186 Starting a business (rank) (rank) ✔ 30.00 Score for trading across borders (0–100) 40.12 52.09 Score for starting a business (0–100) Score for getting credit (0–100) Time to export 6 Strength of legal rights index (0–12) Procedures (number) 8 0 87 Time (days) Documentary compliance (hours) 58 Depth of credit information index (0–8) 0.0 Border compliance (hours) 106 Cost (% of income per capita) 172.3 Credit bureau coverage (% of adults) Cost to export 2.6 Credit registry coverage (% of adults) 26.0 Minimum capital (% of income per capita) Documentary compliance (US$) 188 153 Protecting minority investors (rank) 161 Dealing with construction permits 319 (rank) Border compliance (US$) 56.72 38.33 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) Extent of disclosure index (0–10) 7 172 Procedures (number) 13 Documentary compliance (hours) 1 242 Extent of director liability index (0–10) Time (days) 226 Border compliance (hours) 4 Cost to import 12.0 Cost (% of warehouse value) Ease of shareholder suits index (0–10) Extent of shareholder rights index (0–10) 4 Documentary compliance (US$) 500 Building quality control index (0–15) 11.5 Border compliance (US$) 3 Extent of ownership and control index (0–10) 669 177 4 Getting electricity (rank) Extent of corporate transparency index (0–10) (rank) Enforcing contracts Score for getting electricity (0–100) 153 32.17 ✔ 6 Paying taxes (rank) 188 Score for enforcing contracts (0–100) 45.51 Procedures (number) 67 Score for paying taxes (0–100) 17.92 Time (days) 743 Time (days) 9,916.3 Cost (% of income per capita) 54 Cost (% of claim value) 45.7 Payments (number per year) 0 Reliability of supply and transparency of tariffs index (0–8) Quality of judicial processes index (0–18) 7.0 Time (hours per year) 766 Total tax and contribution rate (% of profit) 63.5 Postfiling index (0–100) 13.07 Resolving insolvency (rank) 154 134 Registering property (rank) ✔ 28.13 Score for resolving insolvency (0–100) Score for registering property (0–100) 52.56 Procedures (number) 6 Time (years) 4.0 Cost (% of estate) Time (days) 44 60.0 8.1 0.0 Cost (% of property value) Recovery rate (cents on the dollar) Strength of insolvency framework index (0–16) Quality of land administration index (0–30) 8.0 9.0 GNI per capita (US$) 13,610 OECD high income CHILE Ease of doing business score (0–100) 71.81 Ease of doing business rank (1–190) Population 18,054,726 56 Starting a business (rank) 72 Getting credit (rank) 85 Trading across borders (rank) 71 ✔ Score for starting a business (0–100) Score for getting credit (0–100) 55.00 Score for trading across borders (0–100) 80.56 89.08 7 Strength of legal rights index (0–12) Time to export Procedures (number) 4 Depth of credit information index (0–8) Documentary compliance (hours) 24 6 7 Time (days) Credit bureau coverage (% of adults) 32.4 Cost (% of income per capita) 60 5.7 Border compliance (hours) Cost to export 0.0 Credit registry coverage (% of adults) 50.2 Minimum capital (% of income per capita) 50 Documentary compliance (US$) Dealing with construction permits (rank) Protecting minority investors (rank) 64 Border compliance (US$) 290 33 75.90 60.00 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 12 Extent of disclosure index (0–10) 8 Procedures (number) 36 Documentary compliance (hours) Time (days) 195 Extent of director liability index (0–10) 6 Border compliance (hours) 54 Cost (% of warehouse value) 1.3 Ease of shareholder suits index (0–10) 7 Cost to import Building quality control index (0–15) 13.0 Documentary compliance (US$) 50 Extent of shareholder rights index (0–10) 9 Border compliance (US$) 290 Extent of ownership and control index (0–10) 4 Extent of corporate transparency index (0–10) (rank) Getting electricity 36 2 Enforcing contracts (rank) Score for getting electricity (0–100) 85.67 49 ✔ Paying taxes (rank) 76 Score for enforcing contracts (0–100) 65.79 Procedures (number) 5 Score for paying taxes (0–100) 75.28 Time (days) 480 Time (days) 43 Payments (number per year) 48.9 Cost (% of claim value) 25.6 Cost (% of income per capita) 7 Time (hours per year) Quality of judicial processes index (0–18) 10.0 7 296 Reliability of supply and transparency of tariffs index (0–8) Total tax and contribution rate (% of profit) 34.0 61 Postfiling index (0–100) Registering property Resolving insolvency (rank) 51 (rank) 57.03 70.90 Score for resolving insolvency (0–100) 59.90 Score for registering property (0–100) 6 Time (years) 2.0 Procedures (number) 28.5 Time (days) Cost (% of estate) 14.5 Recovery rate (cents on the dollar) 41.6 1.2 Cost (% of property value) 12.0 Quality of land administration index (0–30) Strength of insolvency framework index (0–16) 14.0 GNI per capita (US$) 8,690 East Asia & Pacific CHINA Ease of doing business score (0–100) 73.64 Population 46 Ease of doing business rank (1–190) 1,386,395,000 28 Getting credit (rank) 73 Starting a business Trading across borders (rank) 65 (rank) ✔ ✔ 93.52 Score for starting a business (0–100) Score for trading across borders (0–100) 82.59 Score for getting credit (0–100) 60.00 Strength of legal rights index (0–12) 4 Procedures (number) 4 Time to export 8.6 Depth of credit information index (0–8) 8 Documentary compliance (hours) 8.6 Time (days) 0.4 Credit bureau coverage (% of adults) 0.0 Border compliance (hours) 25.9 Cost (% of income per capita) Cost to export 0.0 Credit registry coverage (% of adults) 98.1 Minimum capital (% of income per capita) Documentary compliance (US$) 73.6 Dealing with construction permits (rank) 121 Protecting minority investors (rank) 64 Border compliance (US$) 314 ✔ ✔ Score for dealing with construction permits (0–100) 60.00 Time to import Score for protecting minority investors (0–100) 65.16 Extent of disclosure index (0–10) 10 Documentary compliance (hours) 24 Procedures (number) 20.4 155.1 Extent of director liability index (0–10) 1 Border compliance (hours) 48 Time (days) 2.9 Cost (% of warehouse value) 5 Cost to import Ease of shareholder suits index (0–10) 11.1 7 Documentary compliance (US$) 122.3 Building quality control index (0–15) Extent of shareholder rights index (0–10) 4 Border compliance (US$) 326 Extent of ownership and control index (0–10) Getting electricity 14 Extent of corporate transparency index (0–10) 9 (rank) ✔ 92.01 Enforcing contracts (rank) 6 Score for getting electricity (0–100) Procedures (number) 3 78.97 Paying taxes (rank) 114 Score for enforcing contracts (0–100) ✔ Time (days) Score for paying taxes (0–100) 67.53 Time (days) 496.3 34 0.0 Cost (% of claim value) 7 Cost (% of income per capita) 16.2 Payments (number per year) 6 Reliability of supply and transparency of tariffs index (0–8) 142 Quality of judicial processes index (0–18) 15.5 Time (hours per year) Total tax and contribution rate (% of profit) 64.9 61 Registering property (rank) 27 Postfiling index (0–100) 50.00 Resolving insolvency (rank) ✔ Score for registering property (0–100) Score for resolving insolvency (0–100) 55.82 80.80 3.6 Procedures (number) 1.7 Time (years) Time (days) 9 Cost (% of estate) 22.0 Cost (% of property value) 4.6 Recovery rate (cents on the dollar) 36.9 Quality of land administration index (0–30) 23.7 Strength of insolvency framework index (0–16) 11.5 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

171 DOING BUSINESS 2019 164 Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 5,830 Latin America & Caribbean COLOMBIA 69.24 Ease of doing business score (0–100) Ease of doing business rank (1–190) Population 65 49,065,615 (rank) 133 Trading across borders (rank) Getting credit Starting a business (rank) 3 100 Score for trading across borders (0–100) 61.83 95.00 85.31 Score for starting a business (0–100) Score for getting credit (0–100) Time to export 12 Strength of legal rights index (0–12) Procedures (number) 8 7 60 Time (days) Documentary compliance (hours) 11 Depth of credit information index (0–8) 78.4 Border compliance (hours) 112 Cost (% of income per capita) 14.0 Credit bureau coverage (% of adults) Cost to export 0.0 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) Documentary compliance (US$) 90 89 Protecting minority investors (rank) 15 Dealing with construction permits 630 (rank) Border compliance (US$) 68.77 75.00 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) Extent of disclosure index (0–10) 9 64 Procedures (number) 13 Documentary compliance (hours) 7 112 Extent of director liability index (0–10) Time (days) 132 Border compliance (hours) 8 Cost to import 7.1 Cost (% of warehouse value) Ease of shareholder suits index (0–10) Extent of shareholder rights index (0–10) 6 Documentary compliance (US$) 50 Building quality control index (0–15) 11.0 Border compliance (US$) 9 Extent of ownership and control index (0–10) 545 80 6 (rank) Extent of corporate transparency index (0–10) Getting electricity Enforcing contracts (rank) 177 Score for getting electricity (0–100) 75.77 Paying taxes (rank) 146 Score for enforcing contracts (0–100) 34.29 5 Procedures (number) 92 Score for paying taxes (0–100) 57.85 Time (days) 1,288 Time (days) 519.0 Cost (% of income per capita) 11 Cost (% of claim value) 45.8 Payments (number per year) 6 Time (hours per year) Quality of judicial processes index (0–18) 9.0 Reliability of supply and transparency of tariffs index (0–8) 255.5 Total tax and contribution rate (% of profit) 71.9 (rank) 40 Resolving insolvency Registering property Postfiling index (0–100) (rank) 48.17 59 67.40 71.22 Score for registering property (0–100) Score for resolving insolvency (0–100) Procedures (number) 7 Time (years) 1.7 Cost (% of estate) 8.5 Time (days) 15 Recovery rate (cents on the dollar) Cost (% of property value) 2.0 67.2 Strength of insolvency framework index (0–16) Quality of land administration index (0–30) 16.5 10.0 GNI per capita (US$) 760 Sub-Saharan Africa COMOROS Ease of doing business score (0–100) 48.66 Ease of doing business rank (1–190) Population 813,912 164 (rank) 164 Getting credit (rank) 124 Trading across borders (rank) 118 Starting a business Score for starting a business (0–100) 72.25 40.00 Score for trading across borders (0–100) 66.87 Score for getting credit (0–100) 9 Strength of legal rights index (0–12) Procedures (number) 6 Time to export 16 2 Documentary compliance (hours) 50 Time (days) Depth of credit information index (0–8) Credit bureau coverage (% of adults) 0.0 Cost (% of income per capita) 51 82.5 Border compliance (hours) Cost to export 28.5 Credit registry coverage (% of adults) 13.0 Minimum capital (% of income per capita) 124 Documentary compliance (US$) Dealing with construction permits (rank) Protecting minority investors (rank) 149 Border compliance (US$) 651 85 69.22 40.00 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 10 Extent of disclosure index (0–10) 7 Procedures (number) 26 Documentary compliance (hours) Time (days) 108 Extent of director liability index (0–10) 1 Border compliance (hours) 70 Cost (% of warehouse value) 1.2 Ease of shareholder suits index (0–10) 5 Cost to import Building quality control index (0–15) 4.0 Documentary compliance (US$) 93 Extent of shareholder rights index (0–10) 4 Border compliance (US$) 3 765 Extent of ownership and control index (0–10) Extent of corporate transparency index (0–10) (rank) Getting electricity 139 4 Enforcing contracts (rank) Score for getting electricity (0–100) 57.72 179 ✔ Paying taxes (rank) 168 Score for enforcing contracts (0–100) 32.97 Procedures (number) 3 506 Time (days) 49.86 120 Time (days) Score for paying taxes (0–100) Payments (number per year) 33 Cost (% of claim value) 89.4 Cost (% of income per capita) 2,005.2 Time (hours per year) Quality of judicial processes index (0–18) 5.5 0 Reliability of supply and transparency of tariffs index (0–8) 100 Total tax and contribution rate (% of profit) 219.6 114 57.33 (rank) Resolving insolvency (rank) 168 Postfiling index (0–100) Registering property Score for resolving insolvency (0–100) 0.00 57.70 Score for registering property (0–100) 4 Time (years) no practice Procedures (number) 30 Cost (% of estate) Time (days) no practice Recovery rate (cents on the dollar) Cost (% of property value) 8.0 0.0 Quality of land administration index (0–30) 7.0 Strength of insolvency framework index (0–16) 0.0 GNI per capita (US$) Sub-Saharan Africa 450 CONGO, DEM. REP. Ease of doing business score (0–100) 36.85 Ease of doing business rank (1–190) 184 Population 81,339,988 (rank) 62 Getting credit (rank) 144 Trading across borders Starting a business (rank) 188 ✔ Score for starting a business (0–100) 30.00 Score for trading across borders (0–100) 3.45 90.24 Score for getting credit (0–100) Strength of legal rights index (0–12) 6 Procedures (number) 4 Time to export 7 Depth of credit information index (0–8) 0 Documentary compliance (hours) 192 Time (days) 26.7 Credit bureau coverage (% of adults) 0.0 Border compliance (hours) 296 Cost (% of income per capita) Cost to export 6.0 Credit registry coverage (% of adults) 0.7 Minimum capital (% of income per capita) Documentary compliance (US$) 500 (rank) 165 (rank) 165 Border compliance (US$) 2,223 Dealing with construction permits Protecting minority investors Score for protecting minority investors (0–100) Time to import 53.67 36.67 Score for dealing with construction permits (0–100) Extent of disclosure index (0–10) 7 Documentary compliance (hours) Procedures (number) 13 174 122 Extent of director liability index (0–10) 1 Border compliance (hours) 336 Time (days) Cost (% of warehouse value) Ease of shareholder suits index (0–10) 3 Cost to import 15.8 Building quality control index (0–15) Extent of shareholder rights index (0–10) 4 Documentary compliance (US$) 765 8.0 3 3,039 Extent of ownership and control index (0–10) Border compliance (US$) (rank) 174 Extent of corporate transparency index (0–10) Getting electricity 4 Score for getting electricity (0–100) 34.67 Enforcing contracts (rank) 178 ✔ Procedures (number) 6 Paying taxes (rank) 180 Score for enforcing contracts (0–100) 33.28 Time (days) 44 39.40 Time (days) 610 Score for paying taxes (0–100) 14,195.0 80.6 52 Cost (% of claim value) Cost (% of income per capita) Payments (number per year) 0 Reliability of supply and transparency of tariffs index (0–8) 346 Quality of judicial processes index (0–18) 5.5 Time (hours per year) Total tax and contribution rate (% of profit) 54.6 168 Registering property (rank) 156 Postfiling index (0–100) 27.08 Resolving insolvency (rank) ✔ Score for registering property (0–100) Score for resolving insolvency (0–100) 0.00 47.14 8 Procedures (number) no practice Time (years) Time (days) 38 Cost (% of estate) no practice Cost (% of property value) 10.3 Recovery rate (cents on the dollar) 0.0 Quality of land administration index (0–30) 10.0 Strength of insolvency framework index (0–16) 0.0 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

172 165 COUNTRY TABLES Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 1,360 Sub-Saharan Africa CONGO, REP. 39.83 Ease of doing business score (0–100) Ease of doing business rank (1–190) Population 180 5,260,750 (rank) 184 Trading across borders (rank) Getting credit Starting a business (rank) 134 179 Score for trading across borders (0–100) 19.68 35.00 64.10 Score for starting a business (0–100) Score for getting credit (0–100) Time to export 6 Strength of legal rights index (0–12) Procedures (number) 10.5 1 120 Time (days) Documentary compliance (hours) 49.5 Depth of credit information index (0–8) 0.0 Border compliance (hours) 276 Cost (% of income per capita) 75.5 Credit bureau coverage (% of adults) Cost to export 12.4 Credit registry coverage (% of adults) 2.9 Minimum capital (% of income per capita) Documentary compliance (US$) 165 127 Protecting minority investors (rank) 149 Dealing with construction permits 1,975 (rank) Border compliance (US$) 64.04 40.00 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) Extent of disclosure index (0–10) 7 208 Procedures (number) 12 Documentary compliance (hours) 1 397 Extent of director liability index (0–10) Time (days) 164 Border compliance (hours) 5 Cost to import 7.9 Cost (% of warehouse value) Ease of shareholder suits index (0–10) Extent of shareholder rights index (0–10) 4 Documentary compliance (US$) 310 Building quality control index (0–15) 9.5 Border compliance (US$) 3 Extent of ownership and control index (0–10) 1,581 182 4 Getting electricity (rank) Extent of corporate transparency index (0–10) (rank) Enforcing contracts Score for getting electricity (0–100) 155 29.00 ✔ 6 Paying taxes (rank) 185 Score for enforcing contracts (0–100) 43.99 Procedures (number) 134 Score for paying taxes (0–100) 26.79 Time (days) 560 Time (days) 6,769.0 Cost (% of income per capita) 50 Cost (% of claim value) 53.2 Payments (number per year) 0 Reliability of supply and transparency of tariffs index (0–8) Quality of judicial processes index (0–18) 5.0 Time (hours per year) 602 Total tax and contribution rate (% of profit) 54.3 12.29 Resolving insolvency (rank) 122 177 Postfiling index (0–100) Registering property (rank) ✔ 37.81 Score for resolving insolvency (0–100) Score for registering property (0–100) 37.87 Procedures (number) 6 Time (years) 3.3 Cost (% of estate) Time (days) 55 25.0 13.9 18.0 Cost (% of property value) Recovery rate (cents on the dollar) Strength of insolvency framework index (0–16) Quality of land administration index (0–30) 9.0 3.5 GNI per capita (US$) 11,040 Latin America & Caribbean COSTA RICA Ease of doing business score (0–100) 68.89 Ease of doing business rank (1–190) Population 4,905,769 67 Starting a business (rank) 142 Getting credit (rank) 12 Trading across borders (rank) 73 ✘ Score for starting a business (0–100) Score for getting credit (0–100) 85.00 Score for trading across borders (0–100) 79.32 79.92 10 Strength of legal rights index (0–12) Time to export Procedures (number) 10 Depth of credit information index (0–8) Documentary compliance (hours) 24 23 7 Time (days) Credit bureau coverage (% of adults) 87.9 Cost (% of income per capita) 20 9.5 Border compliance (hours) Cost to export 0.0 Credit registry coverage (% of adults) 34.5 Minimum capital (% of income per capita) 80 Documentary compliance (US$) Dealing with construction permits (rank) Protecting minority investors (rank) 122 Border compliance (US$) 375 74 71.05 48.33 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 17 Extent of disclosure index (0–10) 5 Procedures (number) 26 Documentary compliance (hours) Time (days) 135 Extent of director liability index (0–10) 5 Border compliance (hours) 80 Cost (% of warehouse value) 1.9 Ease of shareholder suits index (0–10) 8 Cost to import Building quality control index (0–15) 11.0 Documentary compliance (US$) 75 Extent of shareholder rights index (0–10) 4 Border compliance (US$) 4 420 Extent of ownership and control index (0–10) Extent of corporate transparency index (0–10) Getting electricity (rank) 3 38 (rank) 121 Score for getting electricity (0–100) 85.10 Enforcing contracts (rank) 57 Score for enforcing contracts (0–100) 53.33 Paying taxes Procedures (number) 5 Score for paying taxes (0–100) 77.99 Time (days) 852 Time (days) 45 Cost (% of income per capita) 10 Cost (% of claim value) 24.3 164.6 Payments (number per year) Time (hours per year) Quality of judicial processes index (0–18) 8.5 7 151 Reliability of supply and transparency of tariffs index (0–8) Total tax and contribution rate (% of profit) 58.3 47 Postfiling index (0–100) Registering property Resolving insolvency (rank) 134 (rank) 87.15 74.36 Score for resolving insolvency (0–100) 34.53 Score for registering property (0–100) 5 Time (years) 3.0 Procedures (number) 11 Cost (% of estate) Time (days) 14.5 Recovery rate (cents on the dollar) Cost (% of property value) 3.4 29.3 Quality of land administration index (0–30) 17.5 Strength of insolvency framework index (0–16) 6.0 GNI per capita (US$) Sub-Saharan Africa 1,540 CÔTE D’IVOIRE Ease of doing business score (0–100) 58.00 Ease of doing business rank (1–190) 122 Population 24,294,750 Starting a business (rank) 26 162 Getting credit (rank) 44 Trading across borders (rank) ✔ ✔ Score for getting credit (0–100) Score for trading across borders (0–100) 52.44 93.70 70.00 Score for starting a business (0–100) Strength of legal rights index (0–12) 6 Procedures (number) 4 Time to export 6 Depth of credit information index (0–8) 8 Documentary compliance (hours) 84 Time (days) 2.7 Credit bureau coverage (% of adults) 9.6 Border compliance (hours) 239 Cost (% of income per capita) Cost to export 2.7 Credit registry coverage (% of adults) 0.3 Minimum capital (% of income per capita) Documentary compliance (US$) 136 Dealing with construction permits (rank) Protecting minority investors (rank) 149 Border compliance (US$) 423 142 ✔ 59.37 40.00 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) Extent of disclosure index (0–10) 7 Documentary compliance (hours) Procedures (number) 21 89 162 Extent of director liability index (0–10) 1 Border compliance (hours) 125 Time (days) Cost (% of warehouse value) Ease of shareholder suits index (0–10) 5 Cost to import 5.2 Building quality control index (0–15) Extent of shareholder rights index (0–10) 4 Documentary compliance (US$) 267 10.0 3 456 Extent of ownership and control index (0–10) Border compliance (US$) (rank) 143 Extent of corporate transparency index (0–10) Getting electricity 4 Score for getting electricity (0–100) 56.23 Enforcing contracts (rank) 106 ✔ Procedures (number) 8 55.74 Paying taxes (rank) 175 Score for enforcing contracts (0–100) ✔ Time (days) Score for paying taxes (0–100) 46.49 Time (days) 525 53 2,147.3 Cost (% of claim value) 63 Cost (% of income per capita) 41.7 Payments (number per year) 4 Reliability of supply and transparency of tariffs index (0–8) 205 Quality of judicial processes index (0–18) 8.5 Time (hours per year) Total tax and contribution rate (% of profit) 50.1 Registering property (rank) 112 Postfiling index (0–100) 44.90 Resolving insolvency (rank) 80 Score for registering property (0–100) 58.03 48.00 Score for resolving insolvency (0–100) 6 Time (years) Procedures (number) 2.2 Time (days) 30 Cost (% of estate) 18.0 Cost (% of property value) 7.1 Recovery rate (cents on the dollar) 36.9 Quality of land administration index (0–30) 10.5 Strength of insolvency framework index (0–16) 9.0 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

173 DOING BUSINESS 2019 166 Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 12,430 Europe & Central Asia CROATIA Ease of doing business score (0–100) 71.40 58 Population Ease of doing business rank (1–190) 4,125,700 (rank) 1 Trading across borders (rank) Getting credit Starting a business (rank) 123 85 Score for trading across borders (0–100) 100.00 Score for getting credit (0–100) 82.62 Score for starting a business (0–100) 55.00 Time to export 8 Strength of legal rights index (0–12) Procedures (number) 5 Depth of credit information index (0–8) Documentary compliance (hours) 1 Time (days) 22.5 6 100.0 0 Credit bureau coverage (% of adults) Border compliance (hours) Cost (% of income per capita) 6.6 Cost to export 11.6 Credit registry coverage (% of adults) Minimum capital (% of income per capita) 0.0 0 Documentary compliance (US$) 159 Protecting minority investors (rank) 38 Border compliance (US$) 0 Dealing with construction permits (rank) Score for protecting minority investors (0–100) 55.70 Time to import Score for dealing with construction permits (0–100) 66.67 Extent of disclosure index (0–10) Procedures (number) 1 5 22 Documentary compliance (hours) 6 0 Extent of director liability index (0–10) Border compliance (hours) Time (days) 146 6 Cost to import Cost (% of warehouse value) 10.9 Ease of shareholder suits index (0–10) 8 Documentary compliance (US$) 0 Extent of shareholder rights index (0–10) 12.0 Building quality control index (0–15) Border compliance (US$) 0 Extent of ownership and control index (0–10) 8 61 Getting electricity 7 (rank) Extent of corporate transparency index (0–10) Enforcing contracts 25 80.50 (rank) Score for getting electricity (0–100) Paying taxes (rank) 89 Score for enforcing contracts (0–100) Procedures (number) 4 70.60 65 Score for paying taxes (0–100) 72.68 Time (days) 650 Time (days) Cost (% of income per capita) Payments (number per year) 34 Cost (% of claim value) 15.2 276.6 Reliability of supply and transparency of tariffs index (0–8) Time (hours per year) 206 Quality of judicial processes index (0–18) 13.0 5 20.5 Total tax and contribution rate (% of profit) Resolving insolvency (rank) 59 (rank) 51 Postfiling index (0–100) 66.66 Registering property ✔ Score for resolving insolvency (0–100) 56.20 Score for registering property (0–100) 74.07 3.1 Procedures (number) 5 Time (years) 14.5 47 Time (days) Cost (% of estate) 34.8 Recovery rate (cents on the dollar) Cost (% of property value) 4.0 Strength of insolvency framework index (0–16) 12.0 Quality of land administration index (0–30) 23.5 GNI per capita (US$) 23,719 Europe & Central Asia CYPRUS 71.71 Ease of doing business score (0–100) 57 Population 1,179,551 Ease of doing business rank (1–190) 52 Starting a business (rank) 73 Trading across borders (rank) 49 (rank) Getting credit 91.24 Score for getting credit (0–100) 60.00 Score for starting a business (0–100) 88.44 Score for trading across borders (0–100) Procedures (number) Strength of legal rights index (0–12) 7 5 Time to export Time (days) 5 Documentary compliance (hours) 2 6 Depth of credit information index (0–8) Credit bureau coverage (% of adults) 18 Border compliance (hours) 11.9 Cost (% of income per capita) 73.1 Cost to export 0.0 0.0 Minimum capital (% of income per capita) Credit registry coverage (% of adults) Documentary compliance (US$) 50 (rank) 126 300 Dealing with construction permits (rank) 38 Border compliance (US$) Protecting minority investors ✔ 64.08 66.67 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 8 Extent of disclosure index (0–10) 9 Procedures (number) 2 Documentary compliance (hours) Time (days) 507 Extent of director liability index (0–10) 4 Border compliance (hours) 15 Cost (% of warehouse value) 1.0 Ease of shareholder suits index (0–10) 7 Cost to import Building quality control index (0–15) 11.0 7 Documentary compliance (US$) 50 Extent of shareholder rights index (0–10) 6 Border compliance (US$) Extent of ownership and control index (0–10) 335 70 (rank) Extent of corporate transparency index (0–10) Getting electricity 7 (rank) Enforcing contracts 138 78.35 Score for getting electricity (0–100) Paying taxes Procedures (number) 47 Score for enforcing contracts (0–100) 48.59 5 (rank) ✔ Score for paying taxes (0–100) 80.78 Time (days) 1,100 Time (days) 137 Cost (% of income per capita) 27 Cost (% of claim value) 16.4 124.2 Payments (number per year) Time (hours per year) Quality of judicial processes index (0–18) 8.0 8 Reliability of supply and transparency of tariffs index (0–8) 122.5 Total tax and contribution rate (% of profit) 22.2 (rank) Postfiling index (0–100) 74.47 Resolving insolvency (rank) 26 Registering property 94 63.46 Score for resolving insolvency (0–100) 75.45 Score for registering property (0–100) 7 Procedures (number) 1.5 Time (years) 9 Cost (% of estate) Time (days) 14.5 Recovery rate (cents on the dollar) Cost (% of property value) 10.3 73.4 Quality of land administration index (0–30) 23.0 Strength of insolvency framework index (0–16) 11.5 GNI per capita (US$) OECD high income 18,160 CZECH REPUBLIC Ease of doing business score (0–100) 76.10 Ease of doing business rank (1–190) 35 Population 10,591,323 (rank) 115 Starting a business (rank) 44 Trading across borders (rank) 1 Getting credit Score for starting a business (0–100) Score for getting credit (0–100) 70.00 Score for trading across borders (0–100) 100.00 83.56 8 7 Procedures (number) Strength of legal rights index (0–12) Time to export Time (days) Depth of credit information index (0–8) 7 Documentary compliance (hours) 1 24.5 Cost (% of income per capita) 1.0 Credit bureau coverage (% of adults) 80.5 Border compliance (hours) 0 Cost to export Minimum capital (% of income per capita) 7.2 0.0 Credit registry coverage (% of adults) 0 Documentary compliance (US$) 156 Protecting minority investors (rank) 72 Border compliance (US$) 0 Dealing with construction permits (rank) 56.20 Score for protecting minority investors (0–100) Time to import Score for dealing with construction permits (0–100) 58.33 21 2 Documentary compliance (hours) 1 Procedures (number) Extent of disclosure index (0–10) 246 Extent of director liability index (0–10) 6 Border compliance (hours) 0 Time (days) 0.2 Cost (% of warehouse value) 9 Cost to import Ease of shareholder suits index (0–10) 8.0 6 Documentary compliance (US$) 0 Building quality control index (0–15) Extent of shareholder rights index (0–10) 7 Border compliance (US$) 0 Extent of ownership and control index (0–10) Getting electricity 10 Extent of corporate transparency index (0–10) 5 (rank) Score for getting electricity (0–100) 95.36 Enforcing contracts (rank) 99 Procedures (number) 3 Paying taxes (rank) 45 Score for enforcing contracts (0–100) 56.38 Time (days) 60 81.42 Time (days) 678 Score for paying taxes (0–100) 24.1 33.8 8 Cost (% of claim value) Cost (% of income per capita) Payments (number per year) 8 Reliability of supply and transparency of tariffs index (0–8) 230 Quality of judicial processes index (0–18) 9.5 Time (hours per year) Total tax and contribution rate (% of profit) 46.1 Registering property (rank) 33 Postfiling index (0–100) 90.75 Resolving insolvency (rank) 15 Score for registering property (0–100) 79.74 80.05 Score for resolving insolvency (0–100) 4 Time (years) Procedures (number) 2.1 Time (days) 27.5 Cost (% of estate) 17.0 Cost (% of property value) 4.0 Recovery rate (cents on the dollar) 67.4 Quality of land administration index (0–30) 25.0 Strength of insolvency framework index (0–16) 14.0 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

174 167 COUNTRY TABLES Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 55,220 OECD high income DENMARK Ease of doing business score (0–100) 84.64 Population Ease of doing business rank (1–190) 3 5,769,603 Starting a business 44 Trading across borders (rank) 1 (rank) 42 Getting credit (rank) Score for trading across borders (0–100) 100.00 70.00 Score for getting credit (0–100) 92.52 Score for starting a business (0–100) Time to export 8 Strength of legal rights index (0–12) Procedures (number) 5 6 1 Time (days) Documentary compliance (hours) 3.5 Depth of credit information index (0–8) 7.4 Border compliance (hours) 0 Cost (% of income per capita) 0.2 Credit bureau coverage (% of adults) Cost to export 0.0 Credit registry coverage (% of adults) 13.2 Minimum capital (% of income per capita) Documentary compliance (US$) 0 4 Protecting minority investors (rank) 38 Border compliance (US$) 0 Dealing with construction permits (rank) Score for protecting minority investors (0–100) 86.94 Time to import Score for dealing with construction permits (0–100) 66.67 Extent of disclosure index (0–10) Procedures (number) 1 7 7 Documentary compliance (hours) 5 0 Extent of director liability index (0–10) Border compliance (hours) Time (days) 64 8 Cost to import Cost (% of warehouse value) 1.3 Ease of shareholder suits index (0–10) 6 Documentary compliance (US$) 0 Extent of shareholder rights index (0–10) 11.0 Building quality control index (0–15) Border compliance (US$) 0 Extent of ownership and control index (0–10) 5 21 Getting electricity 9 (rank) Extent of corporate transparency index (0–10) (rank) 14 90.22 Enforcing contracts Score for getting electricity (0–100) ✔ Paying taxes (rank) 9 Procedures (number) 73.92 4 Score for enforcing contracts (0–100) 38 Score for paying taxes (0–100) 91.14 Time (days) 485 Time (days) Cost (% of income per capita) Payments (number per year) 10 Cost (% of claim value) 23.3 103.4 Reliability of supply and transparency of tariffs index (0–8) Time (hours per year) 132 Quality of judicial processes index (0–18) 14.0 7 23.8 Total tax and contribution rate (% of profit) Resolving insolvency (rank) 6 Registering property 11 Postfiling index (0–100) 89.06 (rank) Score for resolving insolvency (0–100) 85.13 Score for registering property (0–100) 89.88 1.0 Procedures (number) 3 Time (years) 4.0 4 Time (days) Cost (% of estate) 88.5 Recovery rate (cents on the dollar) Cost (% of property value) 0.6 Strength of insolvency framework index (0–16) 12.0 Quality of land administration index (0–30) 24.5 GNI per capita (US$) 1,880 Middle East & North Africa DJIBOUTI 62.02 Ease of doing business score (0–100) 99 Population 956,985 Ease of doing business rank (1–190) (rank) 96 Starting a business Getting credit (rank) 161 Trading across borders (rank) 145 ✔ ✔ 85.73 Score for getting credit (0–100) Score for starting a business (0–100) Score for trading across borders (0–100) 59.37 25.00 Procedures (number) Strength of legal rights index (0–12) 5 Time to export 5 13 Depth of credit information index (0–8) Documentary compliance (hours) 60 Time (days) 0 Credit bureau coverage (% of adults) 72 Border compliance (hours) 41.9 Cost (% of income per capita) 0.0 Cost to export 0.0 0.4 Minimum capital (% of income per capita) Credit registry coverage (% of adults) Documentary compliance (US$) 95 (rank) 101 605 Dealing with construction permits (rank) 2 Border compliance (US$) Protecting minority investors ✔ 67.87 81.67 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 17 Extent of disclosure index (0–10) 8 Procedures (number) 50 Documentary compliance (hours) Time (days) 148 Extent of director liability index (0–10) 8 Border compliance (hours) 118 Cost (% of warehouse value) 5.1 Ease of shareholder suits index (0–10) 10 Cost to import Building quality control index (0–15) 12.0 7 Documentary compliance (US$) 100 Extent of shareholder rights index (0–10) 9 Border compliance (US$) Extent of ownership and control index (0–10) 1,055 119 Getting electricity Extent of corporate transparency index (0–10) (rank) 7 Enforcing contracts 140 (rank) Score for getting electricity (0–100) 64.23 ✔ (rank) 108 Score for enforcing contracts (0–100) Procedures (number) 4 Paying taxes 48.43 Score for paying taxes (0–100) 68.91 Time (days) 695 52 Time (days) Cost (% of income per capita) 35 Cost (% of claim value) 34.0 941.8 Payments (number per year) 0 76 Quality of judicial processes index (0–18) 5.5 Reliability of supply and transparency of tariffs index (0–8) Time (hours per year) 37.7 Total tax and contribution rate (% of profit) (rank) 110 Postfiling index (0–100) 49.57 Registering property Resolving insolvency (rank) 48 ✔ ✔ 58.17 Score for resolving insolvency (0–100) Score for registering property (0–100) 60.85 Procedures (number) Time (years) 2.3 6 24 Cost (% of estate) Time (days) 11.0 Recovery rate (cents on the dollar) Cost (% of property value) 5.7 37.6 Quality of land administration index (0–30) 7.0 Strength of insolvency framework index (0–16) 13.0 GNI per capita (US$) 6,990 Latin America & Caribbean DOMINICA Ease of doing business score (0–100) 61.07 Ease of doing business rank (1–190) 103 Population 73,925 (rank) 69 Starting a business (rank) 144 Trading across borders (rank) 89 Getting credit Score for starting a business (0–100) Score for getting credit (0–100) 30.00 Score for trading across borders (0–100) 74.26 89.39 5 6 Procedures (number) Strength of legal rights index (0–12) Time to export Time (days) Depth of credit information index (0–8) 0 Documentary compliance (hours) 12 12 Cost (% of income per capita) 14.7 Credit bureau coverage (% of adults) 0.0 Border compliance (hours) 36 Cost to export Minimum capital (% of income per capita) 0.0 0.0 Credit registry coverage (% of adults) 50 Documentary compliance (US$) 82 Protecting minority investors (rank) 99 Border compliance (US$) 625 Dealing with construction permits (rank) 70.09 Score for protecting minority investors (0–100) Time to import Score for dealing with construction permits (0–100) 51.67 11 4 Documentary compliance (hours) 24 Procedures (number) Extent of disclosure index (0–10) 191 Extent of director liability index (0–10) 8 Border compliance (hours) 39 Time (days) 0.3 Cost (% of warehouse value) 8 Cost to import Ease of shareholder suits index (0–10) 8.0 4 Documentary compliance (US$) 50 Building quality control index (0–15) Extent of shareholder rights index (0–10) 4 Border compliance (US$) 906 Extent of ownership and control index (0–10) Getting electricity 50 Extent of corporate transparency index (0–10) 3 (rank) Score for getting electricity (0–100) 82.51 Enforcing contracts (rank) 83 Procedures (number) 5 Paying taxes (rank) 75 Score for enforcing contracts (0–100) 59.17 Time (days) 61 75.65 Time (days) 681 Score for paying taxes (0–100) 439.5 36.0 37 Cost (% of claim value) Cost (% of income per capita) Payments (number per year) 7 Reliability of supply and transparency of tariffs index (0–8) 117 Quality of judicial processes index (0–18) 11.5 Time (hours per year) Total tax and contribution rate (% of profit) 32.6 Registering property (rank) 168 Postfiling index (0–100) 78.91 Resolving insolvency (rank) 134 Score for registering property (0–100) 43.42 34.53 Score for resolving insolvency (0–100) 5 Time (years) Procedures (number) 4.0 Time (days) 42 Cost (% of estate) 10.0 Cost (% of property value) 13.3 Recovery rate (cents on the dollar) 29.3 Quality of land administration index (0–30) 4.5 Strength of insolvency framework index (0–16) 6.0 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

175 DOING BUSINESS 2019 168 Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 6,630 Latin America & Caribbean DOMINICAN REPUBLIC 61.12 Ease of doing business score (0–100) Ease of doing business rank (1–190) Population 102 10,766,998 (rank) 63 Trading across borders (rank) Getting credit Starting a business (rank) 112 117 Score for trading across borders (0–100) 83.51 45.00 83.44 Score for starting a business (0–100) Score for getting credit (0–100) Time to export 1 Strength of legal rights index (0–12) Procedures (number) 7 8 10 Time (days) Documentary compliance (hours) 16.5 Depth of credit information index (0–8) 100.0 Border compliance (hours) 16 Cost (% of income per capita) 14.1 Credit bureau coverage (% of adults) Cost to export 26.3 Credit registry coverage (% of adults) 31.3 Minimum capital (% of income per capita) Documentary compliance (US$) 15 80 83 Protecting minority investors (rank) Dealing with construction permits Border compliance (US$) 488 (rank) ✔ 70.42 56.67 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) Extent of disclosure index (0–10) 5 14 Procedures (number) 15 Documentary compliance (hours) 4 24 Extent of director liability index (0–10) Time (days) 206 Border compliance (hours) 8 Cost to import 2.6 Cost (% of warehouse value) Ease of shareholder suits index (0–10) Extent of shareholder rights index (0–10) 7 Documentary compliance (US$) 40 Building quality control index (0–15) 13.0 Border compliance (US$) 5 Extent of ownership and control index (0–10) 579 116 5 (rank) Extent of corporate transparency index (0–10) Getting electricity Enforcing contracts (rank) 149 Score for getting electricity (0–100) 64.65 Paying taxes (rank) 148 Score for enforcing contracts (0–100) 46.86 7 Procedures (number) 67 Score for paying taxes (0–100) 57.44 Time (days) Time (days) 590 Cost (% of income per capita) Payments (number per year) 7 Cost (% of claim value) 40.9 276.7 4 Time (hours per year) Quality of judicial processes index (0–18) 4.5 Reliability of supply and transparency of tariffs index (0–8) 317 Total tax and contribution rate (% of profit) 48.8 Resolving insolvency (rank) 124 Postfiling index (0–100) 10.71 (rank) Registering property 77 37.54 65.73 Score for registering property (0–100) Score for resolving insolvency (0–100) Procedures (number) 6 Time (years) 3.5 Cost (% of estate) 38.0 Time (days) 45 Recovery rate (cents on the dollar) Cost (% of property value) 3.4 8.8 Strength of insolvency framework index (0–16) Quality of land administration index (0–30) 10.5 14.5 GNI per capita (US$) 5,890 Latin America & Caribbean ECUADOR Ease of doing business score (0–100) 57.94 Ease of doing business rank (1–190) Population 16,624,858 123 (rank) 168 Getting credit (rank) 112 Trading across borders (rank) 109 Starting a business Score for starting a business (0–100) 70.58 45.00 Score for trading across borders (0–100) 68.65 Score for getting credit (0–100) 11 Strength of legal rights index (0–12) Procedures (number) 1 Time to export 48.5 8 Documentary compliance (hours) 24 Time (days) Depth of credit information index (0–8) Credit bureau coverage (% of adults) 73.3 Cost (% of income per capita) 96 21.2 Border compliance (hours) Cost to export 0.0 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) 140 Documentary compliance (US$) Dealing with construction permits (rank) Protecting minority investors (rank) 125 Border compliance (US$) 560 113 66.38 46.67 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 17 Extent of disclosure index (0–10) 2 Procedures (number) 120 Documentary compliance (hours) Time (days) 132 Extent of director liability index (0–10) 5 Border compliance (hours) 24 Cost (% of warehouse value) 1.9 Ease of shareholder suits index (0–10) 6 Cost to import Building quality control index (0–15) 8.0 Documentary compliance (US$) 75 Extent of shareholder rights index (0–10) 9 Border compliance (US$) 3 250 Extent of ownership and control index (0–10) Extent of corporate transparency index (0–10) Getting electricity 3 94 (rank) Score for getting electricity (0–100) 72.22 Enforcing contracts (rank) 79 Paying taxes (rank) 143 Score for enforcing contracts (0–100) 59.38 7 Procedures (number) ✔ 523 59.38 Time (days) Score for paying taxes (0–100) 74 Time (days) Payments (number per year) 8 Cost (% of claim value) 27.2 614.7 Cost (% of income per capita) Time (hours per year) Quality of judicial processes index (0–18) 7.5 7 Reliability of supply and transparency of tariffs index (0–8) 664 Total tax and contribution rate (% of profit) 32.3 75 49.54 (rank) Resolving insolvency (rank) 158 Postfiling index (0–100) Registering property Score for resolving insolvency (0–100) 25.36 65.79 Score for registering property (0–100) 8 Time (years) 5.3 Procedures (number) 38 Cost (% of estate) Time (days) 18.0 Recovery rate (cents on the dollar) Cost (% of property value) 2.1 18.1 Quality of land administration index (0–30) 16.0 Strength of insolvency framework index (0–16) 5.0 GNI per capita (US$) 3,010 Middle East & North Africa EGYPT, ARAB REP. Ease of doing business score (0–100) 58.56 Ease of doing business rank (1–190) 120 Population 97,553,151 Starting a business (rank) 109 171 Getting credit (rank) 60 Trading across borders (rank) ✔ ✔ Score for getting credit (0–100) Score for trading across borders (0–100) 42.23 84.11 65.00 Score for starting a business (0–100) Strength of legal rights index (0–12) 5 Procedures (number) 6.5 Time to export 11.5 Depth of credit information index (0–8) 8 Documentary compliance (hours) 88 Time (days) 40.3 Credit bureau coverage (% of adults) 27.3 Border compliance (hours) 48 Cost (% of income per capita) Cost to export 0.0 Credit registry coverage (% of adults) 8.4 Minimum capital (% of income per capita) Documentary compliance (US$) 100 (rank) 68 Protecting minority investors (rank) 72 Border compliance (US$) 258 Dealing with construction permits ✔ 71.77 58.33 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 19 8 Documentary compliance (hours) 265 Procedures (number) Extent of disclosure index (0–10) 173 Extent of director liability index (0–10) 3 Border compliance (hours) 240 Time (days) 1.6 Cost (% of warehouse value) 3 Cost to import Ease of shareholder suits index (0–10) 14.0 5 Documentary compliance (US$) 1,000 Building quality control index (0–15) Extent of shareholder rights index (0–10) 7 Border compliance (US$) 554 Extent of ownership and control index (0–10) Getting electricity 96 Extent of corporate transparency index (0–10) 9 (rank) Score for getting electricity (0–100) 71.41 Enforcing contracts (rank) 160 Procedures (number) 5 42.75 Paying taxes (rank) 159 Score for enforcing contracts (0–100) ✔ Time (days) Score for paying taxes (0–100) 52.73 Time (days) 1,010 53 269.5 Cost (% of claim value) 29 Cost (% of income per capita) 26.2 Payments (number per year) 3 Reliability of supply and transparency of tariffs index (0–8) 392 Quality of judicial processes index (0–18) 5.5 Time (hours per year) Total tax and contribution rate (% of profit) 46.4 Registering property (rank) 125 Postfiling index (0–100) 36.54 101 Resolving insolvency (rank) ✔ Score for registering property (0–100) Score for resolving insolvency (0–100) 42.27 55.00 9 Procedures (number) 2.5 Time (years) Time (days) 76 Cost (% of estate) 22.0 Cost (% of property value) 1.1 Recovery rate (cents on the dollar) 23.4 Quality of land administration index (0–30) 9.0 Strength of insolvency framework index (0–16) 9.5 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

176 169 COUNTRY TABLES Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 3,560 Latin America & Caribbean EL SALVADOR Ease of doing business score (0–100) 65.41 85 Population Ease of doing business rank (1–190) 6,377,853 (rank) (rank) Starting a business Trading across borders Getting credit 44 (rank) 147 22 ✔ 80.00 Score for trading across borders (0–100) 89.76 78.41 Score for starting a business (0–100) Score for getting credit (0–100) Time to export 9 Strength of legal rights index (0–12) Procedures (number) 9 Depth of credit information index (0–8) Documentary compliance (hours) 9 Time (days) 16.5 7 33.6 24 Credit bureau coverage (% of adults) Border compliance (hours) Cost (% of income per capita) 45.1 Cost to export 2.7 Credit registry coverage (% of adults) Minimum capital (% of income per capita) 29.8 50 Documentary compliance (US$) (rank) 173 Protecting minority investors (rank) Dealing with construction permits Border compliance (US$) 128 161 ✔ Score for protecting minority investors (0–100) 38.33 Time to import Score for dealing with construction permits (0–100) 51.82 Extent of disclosure index (0–10) 3 13 Procedures (number) 17 Documentary compliance (hours) 0 36 Extent of director liability index (0–10) Time (days) 314 Border compliance (hours) 7 Cost to import 5.7 Cost (% of warehouse value) Ease of shareholder suits index (0–10) Extent of shareholder rights index (0–10) 6 Documentary compliance (US$) 67 Building quality control index (0–15) 10.0 Border compliance (US$) 1 Extent of ownership and control index (0–10) 128 97 6 (rank) Extent of corporate transparency index (0–10) Getting electricity Enforcing contracts (rank) 109 Score for getting electricity (0–100) 71.24 Paying taxes (rank) 62 Score for enforcing contracts (0–100) 55.30 7 Procedures (number) 56 Score for paying taxes (0–100) 77.30 Time (days) Time (days) 816 Cost (% of income per capita) Payments (number per year) 7 Cost (% of claim value) 19.2 553.4 6 Time (hours per year) Quality of judicial processes index (0–18) 8.0 Reliability of supply and transparency of tariffs index (0–8) 180 Total tax and contribution rate (% of profit) 35.6 49.54 Resolving insolvency (rank) 89 Postfiling index (0–100) (rank) Registering property 73 45.63 66.32 Score for registering property (0–100) Score for resolving insolvency (0–100) Procedures (number) 6 Time (years) 3.5 Cost (% of estate) 12.0 Time (days) 31 Recovery rate (cents on the dollar) Cost (% of property value) 3.8 32.5 Strength of insolvency framework index (0–16) Quality of land administration index (0–30) 14.0 9.0 GNI per capita (US$) 7,060 Sub-Saharan Africa EQUATORIAL GUINEA Ease of doing business score (0–100) 41.94 Ease of doing business rank (1–190) Population 1,267,689 177 (rank) 184 Getting credit (rank) 124 Trading across borders (rank) 175 Starting a business Score for starting a business (0–100) 55.74 40.00 Score for trading across borders (0–100) 32.05 Score for getting credit (0–100) 16 Strength of legal rights index (0–12) Procedures (number) 6 Time to export 33 2 Documentary compliance (hours) 154 Time (days) Depth of credit information index (0–8) Credit bureau coverage (% of adults) 0.0 Cost (% of income per capita) 132 101.2 Border compliance (hours) Cost to export 22.3 Credit registry coverage (% of adults) 8.7 Minimum capital (% of income per capita) 85 Documentary compliance (US$) Dealing with construction permits (rank) Protecting minority investors (rank) 149 Border compliance (US$) 760 163 55.01 40.00 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 13 Extent of disclosure index (0–10) 7 Procedures (number) 240 Documentary compliance (hours) Time (days) 144 Extent of director liability index (0–10) 1 Border compliance (hours) 240 Cost (% of warehouse value) 4.1 Ease of shareholder suits index (0–10) 5 Cost to import Building quality control index (0–15) 1.0 4 Documentary compliance (US$) 70 Extent of shareholder rights index (0–10) 3 Border compliance (US$) Extent of ownership and control index (0–10) 985 150 (rank) Extent of corporate transparency index (0–10) Getting electricity 4 Enforcing contracts 101 (rank) 54.41 Score for getting electricity (0–100) ✔ Procedures (number) 179 Score for enforcing contracts (0–100) 56.17 5 Paying taxes (rank) Score for paying taxes (0–100) 41.54 Time (days) 475 Time (days) 106 Cost (% of income per capita) 46 Cost (% of claim value) 19.5 872.2 Payments (number per year) Time (hours per year) Quality of judicial processes index (0–18) 3.5 0 Reliability of supply and transparency of tariffs index (0–8) 492 Total tax and contribution rate (% of profit) 79.4 (rank) Postfiling index (0–100) 93.12 Resolving insolvency (rank) 168 Registering property 164 44.45 Score for resolving insolvency (0–100) 0.00 Score for registering property (0–100) 6 Procedures (number) no practice Time (years) 23 Cost (% of estate) Time (days) no practice Recovery rate (cents on the dollar) Cost (% of property value) 12.5 0.0 Quality of land administration index (0–30) 4.0 Strength of insolvency framework index (0–16) 0.0 GNI per capita (US$) Sub-Saharan Africa 937 ERITREA Ease of doing business score (0–100) 23.07 Ease of doing business rank (1–190) 189 Population 5,918,919 (rank) 187 Starting a business (rank) 186 Trading across borders (rank) 189 Getting credit Score for starting a business (0–100) Score for getting credit (0–100) 0.00 Score for trading across borders (0–100) 0.00 51.91 13 0 Procedures (number) Strength of legal rights index (0–12) Time to export Time (days) Depth of credit information index (0–8) 0 Documentary compliance (hours) no practice 84 Cost (% of income per capita) 23.7 Credit bureau coverage (% of adults) 0.0 Border compliance (hours) no practice Cost to export Minimum capital (% of income per capita) 0.0 104.0 Credit registry coverage (% of adults) no practice Documentary compliance (US$) 186 Protecting minority investors (rank) 174 Border compliance (US$) no practice Dealing with construction permits (rank) 0.00 Score for protecting minority investors (0–100) Time to import Score for dealing with construction permits (0–100) 31.67 no practice 3 Documentary compliance (hours) no practice Procedures (number) Extent of disclosure index (0–10) no practice Extent of director liability index (0–10) 0 Border compliance (hours) no practice Time (days) no practice Cost (% of warehouse value) 5 Cost to import Ease of shareholder suits index (0–10) no practice 5 Documentary compliance (US$) no practice Building quality control index (0–15) Extent of shareholder rights index (0–10) 3 Border compliance (US$) no practice Extent of ownership and control index (0–10) Getting electricity 187 Extent of corporate transparency index (0–10) 3 (rank) Score for getting electricity (0–100) 0.00 Enforcing contracts (rank) 103 Procedures (number) no practice Paying taxes (rank) 152 Score for enforcing contracts (0–100) 55.93 Time (days) no practice 55.90 Time (days) 490 Score for paying taxes (0–100) no practice 16.6 30 Cost (% of claim value) Cost (% of income per capita) Payments (number per year) no practice Reliability of supply and transparency of tariffs index (0–8) 216 Quality of judicial processes index (0–18) 3.0 Time (hours per year) Total tax and contribution rate (% of profit) 83.7 Registering property (rank) 180 Postfiling index (0–100) 93.12 Resolving insolvency (rank) 168 Score for registering property (0–100) 35.30 0.00 Score for resolving insolvency (0–100) 11 Time (years) Procedures (number) no practice Time (days) 78 Cost (% of estate) no practice Cost (% of property value) 9.0 Recovery rate (cents on the dollar) 0.0 Quality of land administration index (0–30) 6.5 Strength of insolvency framework index (0–16) 0.0 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

177 DOING BUSINESS 2019 170 Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 18,190 OECD high income ESTONIA 80.50 Ease of doing business score (0–100) Ease of doing business rank (1–190) Population 16 1,315,480 (rank) 17 Trading across borders (rank) Getting credit Starting a business (rank) 44 15 Score for trading across borders (0–100) 99.92 70.00 95.25 Score for starting a business (0–100) Score for getting credit (0–100) Time to export 7 Strength of legal rights index (0–12) Procedures (number) 3 7 1 Time (days) Documentary compliance (hours) 3.5 Depth of credit information index (0–8) 26.9 Border compliance (hours) 2 Cost (% of income per capita) 1.1 Credit bureau coverage (% of adults) Cost to export 0.0 Credit registry coverage (% of adults) 14.6 Minimum capital (% of income per capita) Documentary compliance (US$) 0 14 Protecting minority investors (rank) 83 Dealing with construction permits 0 (rank) Border compliance (US$) 82.53 56.67 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) Extent of disclosure index (0–10) 8 1 Procedures (number) 10 Documentary compliance (hours) 3 0 Extent of director liability index (0–10) Time (days) 103 Border compliance (hours) 6 Cost to import 0.2 Cost (% of warehouse value) Ease of shareholder suits index (0–10) Extent of shareholder rights index (0–10) 8 Documentary compliance (US$) 0 Building quality control index (0–15) 11.0 Border compliance (US$) 3 Extent of ownership and control index (0–10) 0 46 6 (rank) Extent of corporate transparency index (0–10) Getting electricity Enforcing contracts (rank) 13 Score for getting electricity (0–100) 83.26 Paying taxes (rank) 14 Score for enforcing contracts (0–100) 74.34 5 Procedures (number) 91 Score for paying taxes (0–100) 89.56 Time (days) 455 Time (days) 154.2 Cost (% of income per capita) 8 Cost (% of claim value) 21.9 Payments (number per year) 8 Time (hours per year) Quality of judicial processes index (0–18) 13.5 Reliability of supply and transparency of tariffs index (0–8) 50 Total tax and contribution rate (% of profit) 48.7 (rank) 47 Resolving insolvency Registering property Postfiling index (0–100) (rank) 99.38 6 62.51 91.02 Score for registering property (0–100) Score for resolving insolvency (0–100) Procedures (number) 3 Time (years) 3.0 Cost (% of estate) 9.0 Time (days) 17.5 Recovery rate (cents on the dollar) Cost (% of property value) 0.5 40.7 Strength of insolvency framework index (0–16) Quality of land administration index (0–30) 27.5 13.0 GNI per capita (US$) 2,960 Sub-Saharan Africa ESWATINI Ease of doing business score (0–100) 58.95 Ease of doing business rank (1–190) Population 1,367,254 117 (rank) 159 Getting credit (rank) 85 Trading across borders (rank) 32 Starting a business Score for starting a business (0–100) 74.55 55.00 Score for trading across borders (0–100) 92.92 Score for getting credit (0–100) 12 Strength of legal rights index (0–12) Procedures (number) 4 Time to export 30 7 Documentary compliance (hours) 2 Time (days) Depth of credit information index (0–8) Credit bureau coverage (% of adults) 43.0 Cost (% of income per capita) 2 14.8 Border compliance (hours) Cost to export 0.2 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) 76 Documentary compliance (US$) Dealing with construction permits (rank) Protecting minority investors (rank) 140 Border compliance (US$) 134 107 66.81 41.67 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 14 Extent of disclosure index (0–10) 2 Procedures (number) 4 Documentary compliance (hours) Time (days) 116 Extent of director liability index (0–10) 5 Border compliance (hours) 3 Cost (% of warehouse value) 3.5 Ease of shareholder suits index (0–10) 6 Cost to import Building quality control index (0–15) 7.0 Documentary compliance (US$) 76 Extent of shareholder rights index (0–10) 6 Border compliance (US$) 3 134 Extent of ownership and control index (0–10) Extent of corporate transparency index (0–10) Getting electricity (rank) 3 163 (rank) 172 Score for getting electricity (0–100) 47.44 Enforcing contracts (rank) 63 Score for enforcing contracts (0–100) 36.72 Paying taxes Procedures (number) 6 956 77.09 Score for paying taxes (0–100) 137 Time (days) Time (days) Payments (number per year) 33 Cost (% of claim value) 56.1 Cost (% of income per capita) 689.2 Time (hours per year) Quality of judicial processes index (0–18) 7.5 0 Reliability of supply and transparency of tariffs index (0–8) 122 Total tax and contribution rate (% of profit) 35.7 119 (rank) Registering property 83.15 Resolving insolvency (rank) 107 Postfiling index (0–100) ✔ Score for registering property (0–100) 58.65 Score for resolving insolvency (0–100) 38.72 9 Time (years) 2.0 Procedures (number) 21 Cost (% of estate) Time (days) 14.5 Recovery rate (cents on the dollar) Cost (% of property value) 7.1 37.1 Quality of land administration index (0–30) 17.5 Strength of insolvency framework index (0–16) 6.0 GNI per capita (US$) Sub-Saharan Africa 740 ETHIOPIA Ease of doing business score (0–100) 49.06 Ease of doing business rank (1–190) 159 Population 104,957,438 Starting a business (rank) 167 Getting credit (rank) 175 Trading across borders (rank) 154 ✔ Score for starting a business (0–100) 15.00 Score for trading across borders (0–100) 56.00 70.79 Score for getting credit (0–100) Strength of legal rights index (0–12) 3 Procedures (number) 11 Time to export 32 Depth of credit information index (0–8) 0 Documentary compliance (hours) 76 Time (days) 52.7 Credit bureau coverage (% of adults) 0.0 Border compliance (hours) 51 Cost (% of income per capita) Cost to export 0.0 Credit registry coverage (% of adults) 0.4 Minimum capital (% of income per capita) Documentary compliance (US$) 175 Dealing with construction permits (rank) Protecting minority investors (rank) 178 Border compliance (US$) 172 168 ✔ 52.84 28.33 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) Extent of disclosure index (0–10) 3 Documentary compliance (hours) Procedures (number) 13 194 134 Extent of director liability index (0–10) 0 Border compliance (hours) 72 Time (days) Cost (% of warehouse value) Ease of shareholder suits index (0–10) 2 Cost to import 14.4 Building quality control index (0–15) Extent of shareholder rights index (0–10) 5 Documentary compliance (US$) 750 7.0 3 120 Extent of ownership and control index (0–10) Border compliance (US$) (rank) 131 Extent of corporate transparency index (0–10) Getting electricity 4 Score for getting electricity (0–100) 59.71 Enforcing contracts (rank) 60 ✔ Procedures (number) 4 Paying taxes (rank) 130 Score for enforcing contracts (0–100) 62.77 Time (days) 95 63.26 Time (days) 530 Score for paying taxes (0–100) 891.8 15.2 29 Cost (% of claim value) Cost (% of income per capita) Payments (number per year) 0 Reliability of supply and transparency of tariffs index (0–8) 300 Quality of judicial processes index (0–18) 7.0 Time (hours per year) Total tax and contribution rate (% of profit) 37.7 Registering property (rank) 144 Postfiling index (0–100) 51.56 Resolving insolvency (rank) 148 Score for registering property (0–100) 51.33 30.53 Score for resolving insolvency (0–100) 7 Time (years) Procedures (number) 3.0 Time (days) 52 Cost (% of estate) 14.5 Cost (% of property value) 6.0 Recovery rate (cents on the dollar) 27.7 Quality of land administration index (0–30) 6.0 Strength of insolvency framework index (0–16) 5.0 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

178 171 COUNTRY TABLES Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 4,970 East Asia & Pacific FIJI 61.15 Ease of doing business score (0–100) Ease of doing business rank (1–190) Population 101 905,502 (rank) 79 Trading across borders (rank) Getting credit Starting a business (rank) 161 161 Score for trading across borders (0–100) 77.57 25.00 73.39 Score for starting a business (0–100) Score for getting credit (0–100) Time to export 5 Strength of legal rights index (0–12) Procedures (number) 11 0 56 Time (days) Documentary compliance (hours) 40 Depth of credit information index (0–8) 0.0 Border compliance (hours) 56 Cost (% of income per capita) 15.9 Credit bureau coverage (% of adults) Cost to export 0.0 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) Documentary compliance (US$) 76 102 Protecting minority investors (rank) 99 Dealing with construction permits 317 (rank) Border compliance (US$) 67.72 51.67 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) Extent of disclosure index (0–10) 2 34 Procedures (number) 15 Documentary compliance (hours) 8 42 Extent of director liability index (0–10) Time (days) 141 Border compliance (hours) 7 Cost to import 0.5 Cost (% of warehouse value) Ease of shareholder suits index (0–10) Extent of shareholder rights index (0–10) 5 Documentary compliance (US$) 58 Building quality control index (0–15) 7.0 Border compliance (US$) 4 Extent of ownership and control index (0–10) 320 93 5 (rank) Extent of corporate transparency index (0–10) Getting electricity Enforcing contracts (rank) 97 Score for getting electricity (0–100) 72.45 Paying taxes (rank) 98 Score for enforcing contracts (0–100) 57.05 4 Procedures (number) 81 Score for paying taxes (0–100) 71.02 Time (days) 397 Time (days) 1,307.7 Cost (% of income per capita) 38 Cost (% of claim value) 42.6 Payments (number per year) 4 Time (hours per year) Quality of judicial processes index (0–18) 7.5 Reliability of supply and transparency of tariffs index (0–8) 247 Total tax and contribution rate (% of profit) 32.2 (rank) 96 Resolving insolvency Registering property Postfiling index (0–100) (rank) 81.62 57 43.77 71.86 Score for registering property (0–100) Score for resolving insolvency (0–100) Procedures (number) 4 Time (years) 1.8 Cost (% of estate) 10.0 Time (days) 69 Recovery rate (cents on the dollar) Cost (% of property value) 3.0 46.5 Strength of insolvency framework index (0–16) Quality of land administration index (0–30) 19.5 6.0 GNI per capita (US$) 44,580 OECD high income FINLAND Ease of doing business score (0–100) 80.35 Ease of doing business rank (1–190) Population 5,511,303 17 (rank) 43 Getting credit (rank) 60 Trading across borders (rank) 34 Starting a business Score for starting a business (0–100) 92.43 65.00 Score for trading across borders (0–100) 92.44 Score for getting credit (0–100) 3 Strength of legal rights index (0–12) Procedures (number) 7 Time to export 17 6 Documentary compliance (hours) 2 Time (days) Depth of credit information index (0–8) Credit bureau coverage (% of adults) 21.4 Cost (% of income per capita) 36 0.8 Border compliance (hours) Cost to export 6.1 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) 70 Documentary compliance (US$) Dealing with construction permits (rank) Protecting minority investors (rank) 72 Border compliance (US$) 213 34 75.79 58.33 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 17 Extent of disclosure index (0–10) 6 Procedures (number) 1 Documentary compliance (hours) Time (days) 65 Extent of director liability index (0–10) 4 Border compliance (hours) 2 Cost (% of warehouse value) 0.9 Ease of shareholder suits index (0–10) 8 Cost to import Building quality control index (0–15) 10.0 Documentary compliance (US$) 0 Extent of shareholder rights index (0–10) 6 Border compliance (US$) 2 0 Extent of ownership and control index (0–10) Extent of corporate transparency index (0–10) Getting electricity 9 25 (rank) Score for getting electricity (0–100) 88.98 Enforcing contracts (rank) 46 Paying taxes (rank) 11 Score for enforcing contracts (0–100) 66.40 5 Procedures (number) ✔ 485 Time (days) 90.64 42 Time (days) Score for paying taxes (0–100) Payments (number per year) 8 Cost (% of claim value) 16.2 Cost (% of income per capita) 25.9 Time (hours per year) Quality of judicial processes index (0–18) 8.5 8 Reliability of supply and transparency of tariffs index (0–8) 90 Total tax and contribution rate (% of profit) 37.3 28 93.09 (rank) Resolving insolvency (rank) 2 Postfiling index (0–100) Registering property Score for resolving insolvency (0–100) 92.81 80.73 Score for registering property (0–100) 3 Time (years) 0.9 Procedures (number) 47 Time (days) Cost (% of estate) 3.5 Recovery rate (cents on the dollar) Cost (% of property value) 4.0 88.3 Quality of land administration index (0–30) 26.5 Strength of insolvency framework index (0–16) 14.5 GNI per capita (US$) OECD high income 37,970 FRANCE Ease of doing business score (0–100) 77.29 Ease of doing business rank (1–190) 32 Population 67,118,648 (rank) 30 Getting credit (rank) 99 Trading across borders (rank) 1 Starting a business 93.27 Score for starting a business (0–100) Score for trading across borders (0–100) 100.00 Score for getting credit (0–100) 50.00 Strength of legal rights index (0–12) 4 Procedures (number) 5 Time to export 3.5 Depth of credit information index (0–8) 6 Documentary compliance (hours) 1 Time (days) 0.7 Credit bureau coverage (% of adults) 0.0 Border compliance (hours) 0 Cost (% of income per capita) Cost to export 0.0 Credit registry coverage (% of adults) 47.1 Minimum capital (% of income per capita) Documentary compliance (US$) 0 (rank) 19 (rank) 38 Border compliance (US$) 0 Dealing with construction permits Protecting minority investors Score for protecting minority investors (0–100) Time to import 79.30 66.67 Score for dealing with construction permits (0–100) Extent of disclosure index (0–10) 8 Documentary compliance (hours) Procedures (number) 9 1 183 Extent of director liability index (0–10) 3 Border compliance (hours) 0 Time (days) Cost (% of warehouse value) Ease of shareholder suits index (0–10) 6 Cost to import 3.0 Building quality control index (0–15) Extent of shareholder rights index (0–10) 5 Documentary compliance (US$) 0 14.0 8 0 Extent of ownership and control index (0–10) Border compliance (US$) Getting electricity (rank) 14 10 Extent of corporate transparency index (0–10) ✔ Score for getting electricity (0–100) 92.01 Enforcing contracts (rank) 12 Procedures (number) 4 74.89 Paying taxes (rank) 55 Score for enforcing contracts (0–100) ✔ Time (days) Score for paying taxes (0–100) 79.31 Time (days) 395 53 5.8 Cost (% of claim value) 9 Cost (% of income per capita) 17.4 Payments (number per year) 8 Reliability of supply and transparency of tariffs index (0–8) 139 Quality of judicial processes index (0–18) 12.0 Time (hours per year) Total tax and contribution rate (% of profit) 60.4 28 Registering property (rank) 96 Postfiling index (0–100) 92.40 Resolving insolvency (rank) ✔ Score for registering property (0–100) Score for resolving insolvency (0–100) 74.08 63.33 8 Procedures (number) 1.9 Time (years) Time (days) 42 Cost (% of estate) 9.0 Cost (% of property value) 7.3 Recovery rate (cents on the dollar) 73.8 Quality of land administration index (0–30) 24.0 Strength of insolvency framework index (0–16) 11.0 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

179 DOING BUSINESS 2019 172 Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 6,610 Sub-Saharan Africa GABON Ease of doing business score (0–100) 45.58 Ease of doing business rank (1–190) Population 169 2,025,137 (rank) 124 (rank) (rank) 170 Starting a business 124 Getting credit Trading across borders ✔ Score for trading across borders (0–100) 43.94 40.00 Score for getting credit (0–100) 82.59 Score for starting a business (0–100) Time to export 7 Strength of legal rights index (0–12) Procedures (number) 6 Depth of credit information index (0–8) Documentary compliance (hours) 60 Time (days) 31 2 0.0 96 Credit bureau coverage (% of adults) Border compliance (hours) Cost (% of income per capita) 6.1 Cost to export 2.5 Credit registry coverage (% of adults) Minimum capital (% of income per capita) 29.0 200 Documentary compliance (US$) (rank) 144 Protecting minority investors (rank) 161 Dealing with construction permits 1,633 Border compliance (US$) ✔ Score for protecting minority investors (0–100) 38.33 Time to import Score for dealing with construction permits (0–100) 59.23 Extent of disclosure index (0–10) 7 120 Procedures (number) 14 Documentary compliance (hours) 1 84 Extent of director liability index (0–10) Time (days) 276 Border compliance (hours) 4 Cost to import 1.0 Cost (% of warehouse value) Ease of shareholder suits index (0–10) Extent of shareholder rights index (0–10) 4 Documentary compliance (US$) 170 Building quality control index (0–15) 7.5 3 Border compliance (US$) Extent of ownership and control index (0–10) 1,320 (rank) Extent of corporate transparency index (0–10) 4 Getting electricity 161 ✔ (rank) Enforcing contracts Score for getting electricity (0–100) 180 49.58 ✔ 7 Paying taxes (rank) 183 Score for enforcing contracts (0–100) 32.84 Procedures (number) ✘ 148 Score for paying taxes (0–100) 35.92 Time (days) 1,160 Time (days) Cost (% of income per capita) Payments (number per year) 50 Cost (% of claim value) 34.3 1,294.9 3 Time (hours per year) Quality of judicial processes index (0–18) 4.0 Reliability of supply and transparency of tariffs index (0–8) 632 Total tax and contribution rate (% of profit) 47.1 178 Postfiling index (0–100) 42.47 Resolving insolvency (rank) 129 Registering property (rank) ✔ 36.29 Score for resolving insolvency (0–100) Score for registering property (0–100) 37.09 Procedures (number) 6 Time (years) 5.0 Cost (% of estate) Time (days) 102 14.5 11.5 15.2 Cost (% of property value) Recovery rate (cents on the dollar) Strength of insolvency framework index (0–16) Quality of land administration index (0–30) 4.5 9.0 GNI per capita (US$) 450 Sub-Saharan Africa GAMBIA, THE Ease of doing business score (0–100) 51.72 Ease of doing business rank (1–190) Population 2,100,568 149 (rank) 169 Getting credit (rank) 134 Trading across borders (rank) 113 Starting a business 69.91 Score for starting a business (0–100) 35.00 Score for trading across borders (0–100) 67.81 Score for getting credit (0–100) 7 Strength of legal rights index (0–12) Procedures (number) 7 Time to export 25 0 Documentary compliance (hours) 48 Time (days) Depth of credit information index (0–8) Credit bureau coverage (% of adults) 0.0 Cost (% of income per capita) 109 120.9 Border compliance (hours) Cost to export 0.0 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) 133 Documentary compliance (US$) Dealing with construction permits (rank) Protecting minority investors (rank) 165 Border compliance (US$) 381 123 64.51 36.67 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 12 Extent of disclosure index (0–10) 2 Procedures (number) 32 Documentary compliance (hours) Time (days) 144 Extent of director liability index (0–10) 5 Border compliance (hours) 87 Cost (% of warehouse value) 2.0 Ease of shareholder suits index (0–10) 5 Cost to import Building quality control index (0–15) 4.5 Documentary compliance (US$) 152 Extent of shareholder rights index (0–10) 4 Border compliance (US$) 326 Extent of ownership and control index (0–10) 1 Extent of corporate transparency index (0–10) Getting electricity (rank) 5 160 (rank) 117 Score for getting electricity (0–100) 50.12 Enforcing contracts (rank) 169 Score for enforcing contracts (0–100) Paying taxes Procedures (number) 5 53.91 Score for paying taxes (0–100) 49.34 Time (days) 407 Time (days) 78 Payments (number per year) 3,248.9 Cost (% of claim value) 37.9 Cost (% of income per capita) 49 Time (hours per year) Quality of judicial processes index (0–18) 5.0 0 326 Reliability of supply and transparency of tariffs index (0–8) Total tax and contribution rate (% of profit) 51.3 132 Postfiling index (0–100) Registering property Resolving insolvency (rank) 128 (rank) 53.46 53.29 Score for resolving insolvency (0–100) 36.59 Score for registering property (0–100) 5 Time (years) 2.0 Procedures (number) 66 Cost (% of estate) Time (days) 14.5 Recovery rate (cents on the dollar) Cost (% of property value) 7.6 27.3 Quality of land administration index (0–30) 8.5 Strength of insolvency framework index (0–16) 7.0 GNI per capita (US$) Europe & Central Asia 3,790 GEORGIA Ease of doing business score (0–100) 83.28 Ease of doing business rank (1–190) 6 Population 3,717,100 Starting a business (rank) 2 Getting credit (rank) 12 Trading across borders (rank) 43 ✔ Score for starting a business (0–100) 85.00 Score for trading across borders (0–100) 90.03 99.34 Score for getting credit (0–100) Strength of legal rights index (0–12) 9 Procedures (number) 1 Time to export 2 Depth of credit information index (0–8) 8 Documentary compliance (hours) 2 Time (days) 2.2 Credit bureau coverage (% of adults) 100.0 Border compliance (hours) 6 Cost (% of income per capita) Cost to export 0.0 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) Documentary compliance (US$) 0 (rank) 27 (rank) 2 Border compliance (US$) 112 Dealing with construction permits Protecting minority investors Score for protecting minority investors (0–100) Time to import 77.61 81.67 Score for dealing with construction permits (0–100) Extent of disclosure index (0–10) 9 Documentary compliance (hours) Procedures (number) 11 2 63 Extent of director liability index (0–10) 6 Border compliance (hours) 15 Time (days) Cost (% of warehouse value) Ease of shareholder suits index (0–10) 9 Cost to import 0.3 Building quality control index (0–15) Extent of shareholder rights index (0–10) 7 Documentary compliance (US$) 189 7.0 9 396 Extent of ownership and control index (0–10) Border compliance (US$) (rank) 39 Extent of corporate transparency index (0–10) Getting electricity 9 Score for getting electricity (0–100) 84.38 Enforcing contracts (rank) 8 ✔ Procedures (number) 3 76.90 Paying taxes (rank) 16 Score for enforcing contracts (0–100) ✔ Time (days) Score for paying taxes (0–100) 89.03 Time (days) 285 71 157.4 Cost (% of claim value) 5 Cost (% of income per capita) 25.0 Payments (number per year) 5 Reliability of supply and transparency of tariffs index (0–8) 220 Quality of judicial processes index (0–18) 13.0 Time (hours per year) Total tax and contribution rate (% of profit) 9.9 Registering property (rank) 4 Postfiling index (0–100) 85.89 Resolving insolvency (rank) 60 Score for registering property (0–100) 92.86 56.03 Score for resolving insolvency (0–100) 1 Time (years) Procedures (number) 2.0 Time (days) 1 Cost (% of estate) 10.0 Cost (% of property value) 0.0 Recovery rate (cents on the dollar) 40.2 Quality of land administration index (0–30) 21.5 Strength of insolvency framework index (0–16) 11.0 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

180 173 COUNTRY TABLES Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 43,490 OECD high income GERMANY Ease of doing business score (0–100) 78.90 Population Ease of doing business rank (1–190) 24 82,695,000 Starting a business 44 Trading across borders (rank) 40 (rank) 114 Getting credit (rank) Score for trading across borders (0–100) 91.77 70.00 Score for getting credit (0–100) 83.58 Score for starting a business (0–100) Time to export 6 Strength of legal rights index (0–12) Procedures (number) 9 8 1 Time (days) Documentary compliance (hours) 8 Depth of credit information index (0–8) 100.0 Border compliance (hours) 36 Cost (% of income per capita) 6.7 Credit bureau coverage (% of adults) Cost to export 2.0 Credit registry coverage (% of adults) 31.0 Minimum capital (% of income per capita) Documentary compliance (US$) 45 24 Protecting minority investors (rank) 72 Border compliance (US$) 345 Dealing with construction permits (rank) Score for protecting minority investors (0–100) 78.16 Time to import Score for dealing with construction permits (0–100) 58.33 Extent of disclosure index (0–10) Procedures (number) 1 5 9 Documentary compliance (hours) 5 0 Extent of director liability index (0–10) Border compliance (hours) Time (days) 126 5 Cost to import Cost (% of warehouse value) 1.2 Ease of shareholder suits index (0–10) 7 Documentary compliance (US$) 0 Extent of shareholder rights index (0–10) 9.5 Building quality control index (0–15) Border compliance (US$) 0 Extent of ownership and control index (0–10) 6 5 Getting electricity 7 (rank) Extent of corporate transparency index (0–10) Enforcing contracts 26 98.79 (rank) Score for getting electricity (0–100) Paying taxes (rank) 43 Score for enforcing contracts (0–100) Procedures (number) 3 70.39 28 Score for paying taxes (0–100) 82.11 Time (days) 499 Time (days) Cost (% of income per capita) Payments (number per year) 9 Cost (% of claim value) 14.4 38.5 Reliability of supply and transparency of tariffs index (0–8) Time (hours per year) 218 Quality of judicial processes index (0–18) 10.5 8 49.0 Total tax and contribution rate (% of profit) (rank) 4 97.67 Resolving insolvency Registering property 78 Postfiling index (0–100) (rank) Score for resolving insolvency (0–100) 90.12 Score for registering property (0–100) 65.70 1.2 Procedures (number) 6 Time (years) 8.0 52 Time (days) Cost (% of estate) 80.4 Recovery rate (cents on the dollar) Cost (% of property value) 6.7 Strength of insolvency framework index (0–16) 15.0 Quality of land administration index (0–30) 22.0 Sub-Saharan Africa GNI per capita (US$) 1,490 GHANA 59.22 Ease of doing business score (0–100) 114 Population 28,833,629 Ease of doing business rank (1–190) 108 Starting a business (rank) 73 (rank) Trading across borders (rank) 156 Getting credit ✔ 84.29 Score for getting credit (0–100) 60.00 Score for starting a business (0–100) 54.84 Score for trading across borders (0–100) Procedures (number) Strength of legal rights index (0–12) 6 8 Time to export Time (days) 6 Documentary compliance (hours) 89 14 Depth of credit information index (0–8) Credit bureau coverage (% of adults) 108 Border compliance (hours) 15.5 Cost (% of income per capita) 22.4 Cost to export 1.4 0.0 Minimum capital (% of income per capita) Credit registry coverage (% of adults) Documentary compliance (US$) 155 Dealing with construction permits (rank) 115 490 (rank) 99 Border compliance (US$) Protecting minority investors ✔ 66.16 51.67 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 16 Extent of disclosure index (0–10) 7 Procedures (number) 36 Documentary compliance (hours) Time (days) 170 Extent of director liability index (0–10) 5 Border compliance (hours) 80 Cost (% of warehouse value) 4.6 Ease of shareholder suits index (0–10) 7 Cost to import Building quality control index (0–15) 11.0 Documentary compliance (US$) 474 Extent of shareholder rights index (0–10) 6 Border compliance (US$) 3 553 Extent of ownership and control index (0–10) Extent of corporate transparency index (0–10) Getting electricity (rank) 3 86 (rank) 116 Score for getting electricity (0–100) 74.02 Enforcing contracts (rank) 115 Score for enforcing contracts (0–100) 54.00 Paying taxes Procedures (number) 4 710 66.77 Time (days) Score for paying taxes (0–100) 78 Time (days) Payments (number per year) 31 Cost (% of claim value) 23.0 906.0 Cost (% of income per capita) Time (hours per year) Quality of judicial processes index (0–18) 6.5 4 Reliability of supply and transparency of tariffs index (0–8) 224 Total tax and contribution rate (% of profit) 32.4 123 49.54 (rank) Resolving insolvency (rank) 160 Postfiling index (0–100) Registering property Score for resolving insolvency (0–100) 24.94 55.54 Score for registering property (0–100) 6 Time (years) 1.9 Procedures (number) 47 Time (days) Cost (% of estate) 22.0 Recovery rate (cents on the dollar) Cost (% of property value) 6.1 23.1 Quality of land administration index (0–30) 8.0 Strength of insolvency framework index (0–16) 4.0 GNI per capita (US$) OECD high income 18,090 GREECE Ease of doing business score (0–100) 68.08 Ease of doing business rank (1–190) 72 Population 10,760,421 (rank) 44 Getting credit (rank) 99 Trading across borders (rank) 31 Starting a business 92.39 Score for starting a business (0–100) Score for trading across borders (0–100) 93.72 Score for getting credit (0–100) 50.00 Strength of legal rights index (0–12) 3 Procedures (number) 4 Time to export 12.5 Depth of credit information index (0–8) 7 Documentary compliance (hours) 1 Time (days) 1.5 Credit bureau coverage (% of adults) 72.5 Border compliance (hours) 24 Cost (% of income per capita) Cost to export 0.0 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) Documentary compliance (US$) 30 Dealing with construction permits (rank) Protecting minority investors (rank) 51 Border compliance (US$) 300 39 ✔ 75.29 Score for dealing with construction permits (0–100) Time to import 63.33 Score for protecting minority investors (0–100) 17 7 Documentary compliance (hours) 1 Procedures (number) Extent of disclosure index (0–10) 123 Extent of director liability index (0–10) 4 Border compliance (hours) 1 Time (days) 1.9 Cost (% of warehouse value) 5 Cost to import Ease of shareholder suits index (0–10) 13.0 7 Documentary compliance (US$) 0 Building quality control index (0–15) Extent of shareholder rights index (0–10) 7 Border compliance (US$) 0 Extent of ownership and control index (0–10) Getting electricity 79 Extent of corporate transparency index (0–10) 8 (rank) Score for getting electricity (0–100) 75.97 Enforcing contracts (rank) 132 Procedures (number) 7 Paying taxes (rank) 65 Score for enforcing contracts (0–100) 50.19 Time (days) 55 76.89 Time (days) 1,580 Score for paying taxes (0–100) 69.9 14.4 8 Cost (% of claim value) Cost (% of income per capita) Payments (number per year) 7 Reliability of supply and transparency of tariffs index (0–8) 193 Quality of judicial processes index (0–18) 12.0 Time (hours per year) Total tax and contribution rate (% of profit) 51.9 62 Registering property (rank) 153 Postfiling index (0–100) 75.70 Resolving insolvency (rank) ✘ Score for registering property (0–100) Score for resolving insolvency (0–100) 55.39 47.59 11 Procedures (number) 3.5 Time (years) Time (days) 20 Cost (% of estate) 9.0 Cost (% of property value) 4.8 Recovery rate (cents on the dollar) 33.2 Quality of land administration index (0–30) 4.5 Strength of insolvency framework index (0–16) 12.0 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

181 DOING BUSINESS 2019 174 Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 9,650 Latin America & Caribbean GRENADA 52.71 Ease of doing business score (0–100) Ease of doing business rank (1–190) Population 147 107,825 Getting credit 135 144 Trading across borders (rank) Starting a business (rank) 85 (rank) ✔ 30.00 Score for trading across borders (0–100) 61.52 87.26 Score for starting a business (0–100) Score for getting credit (0–100) Time to export 6 Strength of legal rights index (0–12) Procedures (number) 6 0 13 Time (days) Documentary compliance (hours) 15 Depth of credit information index (0–8) 0.0 Border compliance (hours) 101 Cost (% of income per capita) 14.0 Credit bureau coverage (% of adults) Cost to export 0.0 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) Documentary compliance (US$) 40 130 Protecting minority investors (rank) Dealing with construction permits Border compliance (US$) 1,034 (rank) 132 62.53 43.33 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) Extent of disclosure index (0–10) 4 24 Procedures (number) 15 Documentary compliance (hours) 8 37 Extent of director liability index (0–10) Time (days) 146 Border compliance (hours) 8 Cost to import 1.7 Cost (% of warehouse value) Ease of shareholder suits index (0–10) Extent of shareholder rights index (0–10) 3 Documentary compliance (US$) 50 Building quality control index (0–15) 5.0 Border compliance (US$) 2 Extent of ownership and control index (0–10) 1,256 89 1 (rank) Extent of corporate transparency index (0–10) Getting electricity Enforcing contracts (rank) 80 Score for getting electricity (0–100) 73.34 Paying taxes (rank) 142 Score for enforcing contracts (0–100) 59.33 5 Procedures (number) 38 Score for paying taxes (0–100) 59.62 Time (days) 688 Time (days) 169.4 Cost (% of income per capita) 42 Cost (% of claim value) 32.6 Payments (number per year) 3 Reliability of supply and transparency of tariffs index (0–8) Quality of judicial processes index (0–18) 11.0 Time (hours per year) 140 Total tax and contribution rate (% of profit) 47.8 Resolving insolvency (rank) 168 Postfiling index (0–100) 48.85 (rank) Registering property 146 0.00 50.14 Score for registering property (0–100) Score for resolving insolvency (0–100) Procedures (number) 8 Time (years) no practice Cost (% of estate) no practice Time (days) 32 Recovery rate (cents on the dollar) Cost (% of property value) 7.4 0.0 Strength of insolvency framework index (0–16) Quality of land administration index (0–30) 7.0 0.0 GNI per capita (US$) 4,060 Latin America & Caribbean GUATEMALA Ease of doing business score (0–100) 62.17 Ease of doing business rank (1–190) Population 16,913,503 98 Starting a business (rank) 89 Getting credit (rank) 22 Trading across borders (rank) 83 ✔ Score for starting a business (0–100) Score for getting credit (0–100) 80.00 Score for trading across borders (0–100) 77.15 86.71 6 Strength of legal rights index (0–12) Time to export Procedures (number) 9 Depth of credit information index (0–8) Documentary compliance (hours) 48 15 7 Time (days) Credit bureau coverage (% of adults) 7.0 Cost (% of income per capita) 36 18.1 Border compliance (hours) Cost to export 0.6 Credit registry coverage (% of adults) 24.2 Minimum capital (% of income per capita) 105 Documentary compliance (US$) Dealing with construction permits (rank) Protecting minority investors (rank) 174 Border compliance (US$) 310 122 64.72 31.67 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 11 Extent of disclosure index (0–10) 3 Procedures (number) 32 Documentary compliance (hours) Time (days) 230 Extent of director liability index (0–10) 2 Border compliance (hours) 72 Cost (% of warehouse value) 6.3 Ease of shareholder suits index (0–10) 5 Cost to import Building quality control index (0–15) 11.0 Documentary compliance (US$) 37 Extent of shareholder rights index (0–10) 5 Border compliance (US$) 1 405 Extent of ownership and control index (0–10) Extent of corporate transparency index (0–10) Getting electricity (rank) 3 44 (rank) 176 Score for getting electricity (0–100) 84.12 Enforcing contracts (rank) 102 Score for enforcing contracts (0–100) 34.55 Paying taxes Procedures (number) 5 1,402 70.30 Time (days) Score for paying taxes (0–100) 44 Time (days) Payments (number per year) 8 Cost (% of claim value) 26.5 515.4 Cost (% of income per capita) Time (hours per year) Quality of judicial processes index (0–18) 6.0 7 Reliability of supply and transparency of tariffs index (0–8) 248 Total tax and contribution rate (% of profit) 35.2 86 33.04 (rank) Resolving insolvency (rank) 156 Postfiling index (0–100) Registering property Score for resolving insolvency (0–100) 27.59 64.90 Score for registering property (0–100) 7 Time (years) 3.0 Procedures (number) 24 Time (days) Cost (% of estate) 14.5 Recovery rate (cents on the dollar) 28.0 3.7 Cost (% of property value) 4.0 Quality of land administration index (0–30) Strength of insolvency framework index (0–16) 13.5 GNI per capita (US$) 820 Sub-Saharan Africa GUINEA Ease of doing business score (0–100) 51.51 Population 152 Ease of doing business rank (1–190) 12,717,176 111 Getting credit (rank) 144 Starting a business Trading across borders (rank) 167 (rank) ✔ ✔ 83.90 Score for starting a business (0–100) Score for trading across borders (0–100) 47.82 Score for getting credit (0–100) 30.00 Strength of legal rights index (0–12) 6 Procedures (number) 6 Time to export 15 Depth of credit information index (0–8) 0 Documentary compliance (hours) 139 Time (days) 38.2 Credit bureau coverage (% of adults) 0.0 Border compliance (hours) 72 Cost (% of income per capita) Cost to export 5.4 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) Documentary compliance (US$) 128 Dealing with construction permits (rank) Protecting minority investors (rank) 149 Border compliance (US$) 778 50 ✔ 74.04 40.00 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) Extent of disclosure index (0–10) 7 Documentary compliance (hours) Procedures (number) 15 156 151 Extent of director liability index (0–10) 1 Border compliance (hours) 79 Time (days) Cost (% of warehouse value) Ease of shareholder suits index (0–10) 5 Cost to import 1.6 Building quality control index (0–15) Extent of shareholder rights index (0–10) 4 Documentary compliance (US$) 180 12.0 3 809 Extent of ownership and control index (0–10) Border compliance (US$) (rank) 146 Extent of corporate transparency index (0–10) Getting electricity 4 Score for getting electricity (0–100) 55.54 Enforcing contracts (rank) 118 ✔ Procedures (number) 4 Paying taxes (rank) 181 Score for enforcing contracts (0–100) 53.87 Time (days) 69 38.93 Time (days) 311 Score for paying taxes (0–100) 3,160.3 45.0 33 Cost (% of claim value) Cost (% of income per capita) Payments (number per year) 0 Reliability of supply and transparency of tariffs index (0–8) 400 Quality of judicial processes index (0–18) 5.0 Time (hours per year) Total tax and contribution rate (% of profit) 61.4 116 Registering property (rank) 138 Postfiling index (0–100) 12.77 Resolving insolvency (rank) ✔ Score for registering property (0–100) Score for resolving insolvency (0–100) 39.10 51.92 6 Procedures (number) 3.8 Time (years) Time (days) 44 Cost (% of estate) 8.0 Cost (% of property value) 7.8 Recovery rate (cents on the dollar) 20.4 Quality of land administration index (0–30) 6.5 Strength of insolvency framework index (0–16) 9.0 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

182 175 COUNTRY TABLES Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 660 Sub-Saharan Africa GUINEA-BISSAU 42.85 Ease of doing business score (0–100) Ease of doing business rank (1–190) Population 175 1,861,283 (rank) 144 Trading across borders (rank) Getting credit Starting a business (rank) 144 158 Score for trading across borders (0–100) 59.60 30.00 75.22 Score for starting a business (0–100) Score for getting credit (0–100) Time to export 6 Strength of legal rights index (0–12) Procedures (number) 8.5 0 60 Time (days) Documentary compliance (hours) 8.5 Depth of credit information index (0–8) 0.5 Border compliance (hours) 118 Cost (% of income per capita) 91.0 Credit bureau coverage (% of adults) Cost to export 0.2 Credit registry coverage (% of adults) 6.0 Minimum capital (% of income per capita) Documentary compliance (US$) 160 178 Protecting minority investors (rank) 140 Dealing with construction permits 585 (rank) Border compliance (US$) 44.40 41.67 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) Extent of disclosure index (0–10) 7 36 Procedures (number) 13 Documentary compliance (hours) 1 84 Extent of director liability index (0–10) Time (days) 143 Border compliance (hours) 6 Cost to import 24.6 Cost (% of warehouse value) Ease of shareholder suits index (0–10) Extent of shareholder rights index (0–10) 4 Documentary compliance (US$) 205 Building quality control index (0–15) 6.5 Border compliance (US$) 3 Extent of ownership and control index (0–10) 550 180 4 Getting electricity (rank) Extent of corporate transparency index (0–10) (rank) Enforcing contracts Score for getting electricity (0–100) 169 29.57 ✔ 7 Paying taxes (rank) 154 Score for enforcing contracts (0–100) 38.61 Procedures (number) 257 Score for paying taxes (0–100) 54.93 Time (days) Time (days) 1,785 Cost (% of income per capita) Payments (number per year) 46 Cost (% of claim value) 28.0 1,219.8 0 Time (hours per year) Quality of judicial processes index (0–18) 8.5 Reliability of supply and transparency of tariffs index (0–8) 218 Total tax and contribution rate (% of profit) 45.5 Resolving insolvency (rank) 168 Postfiling index (0–100) 45.34 (rank) Registering property 128 0.00 54.50 Score for registering property (0–100) Score for resolving insolvency (0–100) Procedures (number) 5 Time (years) no practice Cost (% of estate) no practice Time (days) 48 Recovery rate (cents on the dollar) Cost (% of property value) 5.4 0.0 Strength of insolvency framework index (0–16) Quality of land administration index (0–30) 0.0 3.0 GNI per capita (US$) 4,460 Latin America & Caribbean GUYANA Ease of doing business score (0–100) 55.57 Ease of doing business rank (1–190) Population 777,859 134 (rank) 97 Getting credit (rank) 85 Trading across borders (rank) 146 Starting a business Score for starting a business (0–100) 85.61 55.00 Score for trading across borders (0–100) 59.33 Score for getting credit (0–100) 7 Strength of legal rights index (0–12) Procedures (number) 3 Time to export 18 8 Documentary compliance (hours) 200 Time (days) Depth of credit information index (0–8) Credit bureau coverage (% of adults) 60.5 Cost (% of income per capita) 72 9.4 Border compliance (hours) Cost to export 0.0 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) 78 Documentary compliance (US$) Dealing with construction permits (rank) Protecting minority investors (rank) 99 Border compliance (US$) 378 164 54.75 51.67 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 17 Extent of disclosure index (0–10) 5 Procedures (number) 156 Documentary compliance (hours) Time (days) 208 Extent of director liability index (0–10) 5 Border compliance (hours) 84 Cost (% of warehouse value) 1.4 Ease of shareholder suits index (0–10) 8 Cost to import Building quality control index (0–15) 4.0 6 Documentary compliance (US$) 63 Extent of shareholder rights index (0–10) 2 Border compliance (US$) Extent of ownership and control index (0–10) 265 165 (rank) Extent of corporate transparency index (0–10) Getting electricity 5 (rank) Enforcing contracts 93 45.91 Score for getting electricity (0–100) (rank) Procedures (number) Score for enforcing contracts (0–100) 57.87 8 Paying taxes 119 581 Time (days) 65.67 82 Time (days) Score for paying taxes (0–100) Payments (number per year) 35 Cost (% of claim value) 27.0 Cost (% of income per capita) 421.0 Time (hours per year) 7.5 Quality of judicial processes index (0–18) 0 Reliability of supply and transparency of tariffs index (0–8) 256 30.6 Total tax and contribution rate (% of profit) Registering property (rank) Postfiling index (0–100) 54.24 Resolving insolvency (rank) 162 117 57.48 Score for resolving insolvency (0–100) 22.38 Score for registering property (0–100) Procedures (number) 6 3.0 Time (years) 45 Cost (% of estate) Time (days) 28.5 Recovery rate (cents on the dollar) Cost (% of property value) 4.6 18.4 Quality of land administration index (0–30) 7.0 Strength of insolvency framework index (0–16) 4.0 GNI per capita (US$) 760 Latin America & Caribbean HAITI Ease of doing business score (0–100) 38.52 Ease of doing business rank (1–190) 182 Population 10,981,229 (rank) 189 Starting a business Getting credit (rank) 178 Trading across borders (rank) 86 ✔ Score for starting a business (0–100) Score for getting credit (0–100) 10.00 Score for trading across borders (0–100) 76.90 33.80 12 2 Procedures (number) Strength of legal rights index (0–12) Time to export Time (days) Depth of credit information index (0–8) 0 Documentary compliance (hours) 22 97 Cost (% of income per capita) 200.3 Credit bureau coverage (% of adults) 0.0 Border compliance (hours) 28 Cost to export Minimum capital (% of income per capita) 3.5 12.4 Credit registry coverage (% of adults) 48 Documentary compliance (US$) 180 Protecting minority investors (rank) 188 Border compliance (US$) 368 Dealing with construction permits (rank) 44.15 Score for protecting minority investors (0–100) Time to import Score for dealing with construction permits (0–100) 21.67 14 2 Documentary compliance (hours) 28 Procedures (number) Extent of disclosure index (0–10) 98 Extent of director liability index (0–10) 3 Border compliance (hours) 83 Time (days) 20.9 Cost (% of warehouse value) 4 Cost to import Ease of shareholder suits index (0–10) 5.0 3 Documentary compliance (US$) 150 Building quality control index (0–15) Extent of shareholder rights index (0–10) 1 Border compliance (US$) 563 Extent of ownership and control index (0–10) Getting electricity 142 Extent of corporate transparency index (0–10) 0 (rank) Score for getting electricity (0–100) 56.26 Enforcing contracts (rank) 124 Procedures (number) 4 Paying taxes (rank) 147 Score for enforcing contracts (0–100) 52.49 Time (days) 60 57.58 Time (days) 530 Score for paying taxes (0–100) 3,242.8 42.6 47 Cost (% of claim value) Cost (% of income per capita) Payments (number per year) 0 Reliability of supply and transparency of tariffs index (0–8) 184 Quality of judicial processes index (0–18) 7.0 Time (hours per year) Total tax and contribution rate (% of profit) 42.7 Registering property (rank) 181 Postfiling index (0–100) 48.17 Resolving insolvency (rank) 168 Score for registering property (0–100) 32.34 0.00 Score for resolving insolvency (0–100) 5 Time (years) Procedures (number) no practice Time (days) 312 Cost (% of estate) no practice Cost (% of property value) 6.8 Recovery rate (cents on the dollar) 0.0 Quality of land administration index (0–30) 2.5 Strength of insolvency framework index (0–16) 0.0 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

183 DOING BUSINESS 2019 176 Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 2,250 Latin America & Caribbean HONDURAS 58.22 Ease of doing business score (0–100) Ease of doing business rank (1–190) Population 121 9,265,067 (rank) 123 Trading across borders (rank) Getting credit Starting a business (rank) 12 154 Score for trading across borders (0–100) 65.85 85.00 77.06 Score for starting a business (0–100) Score for getting credit (0–100) Time to export 9 Strength of legal rights index (0–12) Procedures (number) 11 8 48 Time (days) Documentary compliance (hours) 13 Depth of credit information index (0–8) 47.4 Border compliance (hours) 88 Cost (% of income per capita) 40.7 Credit bureau coverage (% of adults) Cost to export 21.2 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) Documentary compliance (US$) 80 116 Protecting minority investors (rank) 140 Dealing with construction permits 601 (rank) Border compliance (US$) 66.10 41.67 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) Extent of disclosure index (0–10) 3 72 Procedures (number) 17 Documentary compliance (hours) 8 96 Extent of director liability index (0–10) Time (days) 94 Border compliance (hours) 6 Cost to import 6.9 Cost (% of warehouse value) Ease of shareholder suits index (0–10) Extent of shareholder rights index (0–10) 5 Documentary compliance (US$) 70 Building quality control index (0–15) 10.0 Border compliance (US$) 1 Extent of ownership and control index (0–10) 483 153 2 (rank) Extent of corporate transparency index (0–10) Getting electricity Enforcing contracts (rank) 152 Score for getting electricity (0–100) 53.78 Paying taxes (rank) 164 Score for enforcing contracts (0–100) 45.54 7 Procedures (number) 39 Score for paying taxes (0–100) 51.74 Time (days) 920 Time (days) 735.0 Cost (% of income per capita) 48 Cost (% of claim value) 35.2 Payments (number per year) 0 Time (hours per year) Quality of judicial processes index (0–18) 7.5 Reliability of supply and transparency of tariffs index (0–8) 224 Total tax and contribution rate (% of profit) 44.4 (rank) 143 Resolving insolvency Registering property Postfiling index (0–100) (rank) 35.14 95 32.09 63.43 Score for registering property (0–100) Score for resolving insolvency (0–100) Procedures (number) 6 Time (years) 3.8 Cost (% of estate) 14.5 Time (days) 29 Recovery rate (cents on the dollar) Cost (% of property value) 5.7 19.0 Strength of insolvency framework index (0–16) Quality of land administration index (0–30) 14.0 7.0 GNI per capita (US$) 46,310 East Asia & Pacific HONG KONG SAR, CHINA Ease of doing business score (0–100) 84.22 Ease of doing business rank (1–190) Population 7,391,700 4 (rank) 5 Getting credit (rank) 32 Trading across borders (rank) 27 Starting a business Score for starting a business (0–100) 98.15 75.00 Score for trading across borders (0–100) 95.04 Score for getting credit (0–100) 2 Strength of legal rights index (0–12) Procedures (number) 8 Time to export 1.5 7 Documentary compliance (hours) 1 Time (days) Depth of credit information index (0–8) Credit bureau coverage (% of adults) 100.0 Cost (% of income per capita) 1 1.1 Border compliance (hours) Cost to export 0.0 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) 12 Documentary compliance (US$) Dealing with construction permits (rank) Protecting minority investors (rank) 11 Border compliance (US$) 0 1 88.24 78.33 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 11 Extent of disclosure index (0–10) 10 Procedures (number) 1 Documentary compliance (hours) Time (days) 72 Extent of director liability index (0–10) 8 Border compliance (hours) 19 Cost (% of warehouse value) 0.6 Ease of shareholder suits index (0–10) 9 Cost to import Building quality control index (0–15) 14.0 Documentary compliance (US$) 57 Extent of shareholder rights index (0–10) 7 Border compliance (US$) 5 266 Extent of ownership and control index (0–10) 3 8 Getting electricity Extent of corporate transparency index (0–10) (rank) ✔ (rank) 30 Score for getting electricity (0–100) 99.34 Enforcing contracts (rank) 1 Score for enforcing contracts (0–100) 69.13 Paying taxes Procedures (number) 3 385 Time (days) 99.71 24 Time (days) Score for paying taxes (0–100) Payments (number per year) 3 Cost (% of claim value) 23.6 Cost (% of income per capita) 1.3 Time (hours per year) Quality of judicial processes index (0–18) 10.0 8 Reliability of supply and transparency of tariffs index (0–8) 34.5 Total tax and contribution rate (% of profit) 22.9 53 98.85 (rank) Resolving insolvency (rank) 44 Postfiling index (0–100) Registering property Score for resolving insolvency (0–100) 65.69 73.55 Score for registering property (0–100) 5 Time (years) 0.8 Procedures (number) 27.5 Time (days) Cost (% of estate) 5.0 Recovery rate (cents on the dollar) Cost (% of property value) 7.7 87.2 Quality of land administration index (0–30) 27.5 Strength of insolvency framework index (0–16) 6.0 GNI per capita (US$) OECD high income 12,870 HUNGARY Ease of doing business score (0–100) 72.28 Ease of doing business rank (1–190) 53 Population 9,781,127 (rank) 82 Getting credit (rank) 32 Trading across borders (rank) 1 Starting a business 87.89 Score for starting a business (0–100) Score for trading across borders (0–100) 100.00 Score for getting credit (0–100) 75.00 Strength of legal rights index (0–12) 9 Procedures (number) 6 Time to export 7 Depth of credit information index (0–8) 6 Documentary compliance (hours) 1 Time (days) 4.9 Credit bureau coverage (% of adults) 91.2 Border compliance (hours) 0 Cost (% of income per capita) Cost to export 40.1 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) Documentary compliance (US$) 0 (rank) 110 (rank) 110 Border compliance (US$) 0 Dealing with construction permits Protecting minority investors Score for protecting minority investors (0–100) Time to import 66.71 50.00 Score for dealing with construction permits (0–100) Extent of disclosure index (0–10) 2 Documentary compliance (hours) Procedures (number) 22 1 192.5 Extent of director liability index (0–10) 4 Border compliance (hours) 0 Time (days) Cost (% of warehouse value) Ease of shareholder suits index (0–10) 6 Cost to import 0.8 Building quality control index (0–15) Extent of shareholder rights index (0–10) 6 Documentary compliance (US$) 0 13.0 5 0 Extent of ownership and control index (0–10) Border compliance (US$) (rank) 122 Extent of corporate transparency index (0–10) Getting electricity 7 Score for getting electricity (0–100) 63.29 Enforcing contracts (rank) 22 Procedures (number) 5 70.98 Paying taxes (rank) 86 Score for enforcing contracts (0–100) ✔ Time (days) Score for paying taxes (0–100) 73.81 Time (days) 605 257 82.6 Cost (% of claim value) 11 Cost (% of income per capita) 15.0 Payments (number per year) 7 Reliability of supply and transparency of tariffs index (0–8) 277 Quality of judicial processes index (0–18) 12.5 Time (hours per year) Total tax and contribution rate (% of profit) 40.3 Registering property (rank) 30 Postfiling index (0–100) 63.94 Resolving insolvency (rank) 65 Score for registering property (0–100) 80.09 55.03 Score for resolving insolvency (0–100) 4 Time (years) Procedures (number) 2.0 Time (days) 17.5 Cost (% of estate) 14.5 Cost (% of property value) 5.0 Recovery rate (cents on the dollar) 44.2 Quality of land administration index (0–30) 26.0 Strength of insolvency framework index (0–16) 10.0 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

184 177 COUNTRY TABLES Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 60,830 OECD high income ICELAND Ease of doing business score (0–100) 79.35 Population Ease of doing business rank (1–190) 21 341,284 Starting a business 73 Trading across borders (rank) 53 (rank) 59 Getting credit (rank) Score for trading across borders (0–100) 86.71 60.00 Score for getting credit (0–100) 90.72 Score for starting a business (0–100) Time to export 5 Strength of legal rights index (0–12) Procedures (number) 5 7 2 Time (days) Documentary compliance (hours) 11.5 Depth of credit information index (0–8) 100.0 Border compliance (hours) 36 Cost (% of income per capita) 1.7 Credit bureau coverage (% of adults) Cost to export 0.0 Credit registry coverage (% of adults) 6.7 Minimum capital (% of income per capita) Documentary compliance (US$) 40 71 Protecting minority investors (rank) 30 Border compliance (US$) 365 Dealing with construction permits (rank) Score for protecting minority investors (0–100) 71.64 Time to import Score for dealing with construction permits (0–100) 70.00 Extent of disclosure index (0–10) Procedures (number) 3 7 17 Documentary compliance (hours) 5 24 Extent of director liability index (0–10) Border compliance (hours) Time (days) 84 8 Cost to import Cost (% of warehouse value) 0.4 Ease of shareholder suits index (0–10) 6 Documentary compliance (US$) 0 Extent of shareholder rights index (0–10) 8.0 Building quality control index (0–15) Border compliance (US$) 365 Extent of ownership and control index (0–10) 7 13 Getting electricity 9 (rank) Extent of corporate transparency index (0–10) Enforcing contracts 31 92.24 (rank) Score for getting electricity (0–100) Paying taxes (rank) 33 Score for enforcing contracts (0–100) Procedures (number) 4 69.10 22 Score for paying taxes (0–100) 84.64 Time (days) 417 Time (days) 9.3 Cost (% of income per capita) 21 Cost (% of claim value) 9.0 Payments (number per year) Reliability of supply and transparency of tariffs index (0–8) Time (hours per year) 140 Quality of judicial processes index (0–18) 7.5 7 29.4 Total tax and contribution rate (% of profit) (rank) 12 15 Registering property Resolving insolvency Postfiling index (0–100) (rank) 87.20 81.85 Score for resolving insolvency (0–100) Score for registering property (0–100) 86.61 1.0 3 Procedures (number) Time (years) 3.5 Cost (% of estate) Time (days) 3.5 Recovery rate (cents on the dollar) 85.3 Cost (% of property value) 3.6 26.5 11.5 Quality of land administration index (0–30) Strength of insolvency framework index (0–16) GNI per capita (US$) 1,820 South Asia INDIA Ease of doing business score (0–100) 67.23 77 Population 1,339,180,127 Ease of doing business rank (1–190) Starting a business (rank) 137 80 Getting credit (rank) 22 (rank) Trading across borders ✔ ✔ ✔ 80.96 Score for getting credit (0–100) 80.00 Score for trading across borders (0–100) 77.46 Score for starting a business (0–100) 10 Procedures (number) Time to export Strength of legal rights index (0–12) 9 Depth of credit information index (0–8) 14.5 Documentary compliance (hours) 16.5 Time (days) 7 14.4 55.9 Border compliance (hours) 66.2 Cost (% of income per capita) Credit bureau coverage (% of adults) Cost to export Credit registry coverage (% of adults) 0.0 0.0 Minimum capital (% of income per capita) Documentary compliance (US$) 77.7 Dealing with construction permits (rank) 52 Protecting minority investors (rank) 7 Border compliance (US$) 251.6 ✔ Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 80.00 Time to import 73.81 17.9 Documentary compliance (hours) 8 Procedures (number) 29.7 Extent of disclosure index (0–10) Time (days) Extent of director liability index (0–10) 7 Border compliance (hours) 96.7 94.8 Cost (% of warehouse value) 5.4 Ease of shareholder suits index (0–10) 7 Cost to import Building quality control index (0–15) 14.0 10 Documentary compliance (US$) 100 Extent of shareholder rights index (0–10) 8 Border compliance (US$) Extent of ownership and control index (0–10) 331 (rank) 8 24 Getting electricity Extent of corporate transparency index (0–10) ✔ (rank) Enforcing contracts Score for getting electricity (0–100) 163 89.15 Paying taxes 3.5 121 Score for enforcing contracts (0–100) Procedures (number) (rank) 41.19 ✔ Score for paying taxes (0–100) 65.36 Time (days) 1,445 Time (days) 55 Payments (number per year) Cost (% of income per capita) Cost (% of claim value) 31.0 29.5 11.9 Time (hours per year) Quality of judicial processes index (0–18) 10.5 6.5 Reliability of supply and transparency of tariffs index (0–8) 275.4 Total tax and contribution rate (% of profit) 52.1 (rank) Postfiling index (0–100) 49.31 Resolving insolvency (rank) 108 Registering property 166 43.55 Score for resolving insolvency (0–100) 40.84 Score for registering property (0–100) 9 Procedures (number) 4.3 Time (years) 69.1 Cost (% of estate) Time (days) 9.0 Recovery rate (cents on the dollar) Cost (% of property value) 8.3 26.5 Quality of land administration index (0–30) 8.7 Strength of insolvency framework index (0–16) 8.5 GNI per capita (US$) East Asia & Pacific 3,540 INDONESIA Ease of doing business score (0–100) 67.96 Ease of doing business rank (1–190) 73 Population 263,991,379 Starting a business (rank) 134 116 Getting credit (rank) 44 Trading across borders (rank) ✔ ✔ 81.22 70.00 Score for trading across borders (0–100) 67.27 Score for starting a business (0–100) Score for getting credit (0–100) 10 Strength of legal rights index (0–12) Procedures (number) 6 Time to export Time (days) 19.6 Depth of credit information index (0–8) 8 Documentary compliance (hours) 61.3 Cost (% of income per capita) 6.1 Credit bureau coverage (% of adults) 38.1 Border compliance (hours) 53.3 Cost to export Minimum capital (% of income per capita) 58.2 0.0 Credit registry coverage (% of adults) 138.8 Documentary compliance (US$) 112 Protecting minority investors (rank) 51 Border compliance (US$) 253.7 Dealing with construction permits (rank) 66.57 Score for protecting minority investors (0–100) Time to import Score for dealing with construction permits (0–100) 63.33 17 10 Documentary compliance (hours) 106.2 Procedures (number) Extent of disclosure index (0–10) 200.1 Extent of director liability index (0–10) 5 Border compliance (hours) 99.4 Time (days) 4.4 Cost (% of warehouse value) 2 Cost to import Ease of shareholder suits index (0–10) 13.0 7 Documentary compliance (US$) 164.4 Building quality control index (0–15) Extent of shareholder rights index (0–10) 7 Border compliance (US$) 382.6 Extent of ownership and control index (0–10) Getting electricity 33 Extent of corporate transparency index (0–10) 7 (rank) Score for getting electricity (0–100) 86.38 Enforcing contracts (rank) 146 Procedures (number) 4 Paying taxes (rank) 112 Score for enforcing contracts (0–100) 47.23 Time (days) 34 68.03 Time (days) 403.2 Score for paying taxes (0–100) 252.8 70.3 43 Cost (% of claim value) Cost (% of income per capita) Payments (number per year) 5.8 Reliability of supply and transparency of tariffs index (0–8) 207.5 Quality of judicial processes index (0–18) 7.9 Time (hours per year) Total tax and contribution rate (% of profit) 30.1 36 Registering property (rank) 100 Postfiling index (0–100) 68.82 Resolving insolvency (rank) ✔ Score for registering property (0–100) Score for resolving insolvency (0–100) 67.89 61.67 5 Procedures (number) 1.1 Time (years) Time (days) 27.6 Cost (% of estate) 21.6 Cost (% of property value) 8.3 Recovery rate (cents on the dollar) 65.2 Quality of land administration index (0–30) 14.5 Strength of insolvency framework index (0–16) 10.5 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

185 DOING BUSINESS 2019 178 Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 5,400 Middle East & North Africa IRAN, ISLAMIC REP. 56.98 Ease of doing business score (0–100) Ease of doing business rank (1–190) Population 128 81,162,788 (rank) 121 Starting a business Trading across borders (rank) Getting credit (rank) 173 99 ✔ 50.00 Score for trading across borders (0–100) 66.20 67.79 Score for starting a business (0–100) Score for getting credit (0–100) Time to export 2 Strength of legal rights index (0–12) Procedures (number) 10.5 8 33 Time (days) Documentary compliance (hours) 72.5 Depth of credit information index (0–8) 58.3 Border compliance (hours) 101 Cost (% of income per capita) 1.2 Credit bureau coverage (% of adults) Cost to export 57.5 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) Documentary compliance (US$) 60 86 Protecting minority investors (rank) 173 Dealing with construction permits 415 (rank) Border compliance (US$) 69.11 33.33 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) Extent of disclosure index (0–10) 7 40 Procedures (number) 16 Documentary compliance (hours) 4 141 Extent of director liability index (0–10) Time (days) 130 Border compliance (hours) 1 Cost to import 6.6 Cost (% of warehouse value) Ease of shareholder suits index (0–10) Extent of shareholder rights index (0–10) 3 Documentary compliance (US$) 90 Building quality control index (0–15) 12.5 Border compliance (US$) 3 Extent of ownership and control index (0–10) 660 108 2 (rank) Getting electricity Extent of corporate transparency index (0–10) Enforcing contracts (rank) 89 Score for getting electricity (0–100) 68.86 Paying taxes (rank) 149 Score for enforcing contracts (0–100) 58.21 Procedures (number) 6 ✔ 77 Score for paying taxes (0–100) 56.78 Time (days) Time (days) 505 Cost (% of income per capita) Payments (number per year) 20 Cost (% of claim value) 19.3 923.1 5 Time (hours per year) Quality of judicial processes index (0–18) 5.0 Reliability of supply and transparency of tariffs index (0–8) 216 Total tax and contribution rate (% of profit) 44.7 7.96 Resolving insolvency (rank) 131 Postfiling index (0–100) (rank) Registering property 90 35.57 63.98 Score for registering property (0–100) Score for resolving insolvency (0–100) Procedures (number) 6 Time (years) 1.5 Cost (% of estate) 15.0 Time (days) 31 Recovery rate (cents on the dollar) Cost (% of property value) 5.7 37.1 Strength of insolvency framework index (0–16) Quality of land administration index (0–30) 15.0 5.0 GNI per capita (US$) 4,770 Middle East & North Africa IRAQ Ease of doing business score (0–100) 44.72 Ease of doing business rank (1–190) Population 38,274,618 171 (rank) 155 Getting credit (rank) 186 Trading across borders (rank) 181 Starting a business Score for starting a business (0–100) 76.55 0.00 Score for trading across borders (0–100) 25.33 Score for getting credit (0–100) 8.5 Strength of legal rights index (0–12) Procedures (number) 0 Time to export 26.5 0 Documentary compliance (hours) 504 Time (days) Depth of credit information index (0–8) Credit bureau coverage (% of adults) 0.0 Cost (% of income per capita) 85 38.8 Border compliance (hours) Cost to export 16.6 Credit registry coverage (% of adults) 1.1 Minimum capital (% of income per capita) 1,800 Documentary compliance (US$) Dealing with construction permits (rank) Protecting minority investors (rank) 125 Border compliance (US$) 1,118 103 67.64 46.67 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 11 Extent of disclosure index (0–10) 4 Procedures (number) 176 Documentary compliance (hours) Time (days) 167 Extent of director liability index (0–10) 5 Border compliance (hours) 131 Cost (% of warehouse value) 0.3 Ease of shareholder suits index (0–10) 5 Cost to import Building quality control index (0–15) 5.5 Documentary compliance (US$) 500 Extent of shareholder rights index (0–10) 8 Border compliance (US$) 3 644 Extent of ownership and control index (0–10) Extent of corporate transparency index (0–10) Getting electricity (rank) 3 126 (rank) 143 Score for getting electricity (0–100) 61.73 Enforcing contracts (rank) 129 Score for enforcing contracts (0–100) 48.02 Paying taxes Procedures (number) 5 520 63.55 Time (days) Score for paying taxes (0–100) 51 Time (days) Payments (number per year) 15 Cost (% of claim value) 28.1 436.8 Cost (% of income per capita) Time (hours per year) Quality of judicial processes index (0–18) 1.5 0 Reliability of supply and transparency of tariffs index (0–8) 312 Total tax and contribution rate (% of profit) 30.8 113 21.43 (rank) Resolving insolvency (rank) 168 Postfiling index (0–100) Registering property Score for resolving insolvency (0–100) 0.00 57.74 Score for registering property (0–100) 5 Time (years) no practice Procedures (number) 51 Cost (% of estate) Time (days) no practice Recovery rate (cents on the dollar) Cost (% of property value) 7.0 0.0 Quality of land administration index (0–30) 10.5 Strength of insolvency framework index (0–16) 0.0 GNI per capita (US$) OECD high income 55,290 IRELAND Ease of doing business score (0–100) 78.91 Ease of doing business rank (1–190) 23 Population 4,813,608 (rank) 10 Trading across borders Getting credit (rank) 44 Starting a business (rank) 52 ✔ Score for starting a business (0–100) 70.00 Score for trading across borders (0–100) 87.25 95.91 Score for getting credit (0–100) Strength of legal rights index (0–12) 7 Procedures (number) 3 Time to export 5 Depth of credit information index (0–8) 7 Documentary compliance (hours) 1 Time (days) 0.1 Credit bureau coverage (% of adults) 100.0 Border compliance (hours) 24 Cost (% of income per capita) Cost to export 0.0 Credit registry coverage (% of adults) 90.3 Minimum capital (% of income per capita) Documentary compliance (US$) 75 (rank) 28 (rank) 15 Border compliance (US$) 305 Dealing with construction permits Protecting minority investors Score for protecting minority investors (0–100) Time to import 77.49 75.00 Score for dealing with construction permits (0–100) Extent of disclosure index (0–10) 9 Documentary compliance (hours) Procedures (number) 10 1 149.5 Extent of director liability index (0–10) 8 Border compliance (hours) 24 Time (days) Cost (% of warehouse value) Ease of shareholder suits index (0–10) 9 Cost to import 4.2 Building quality control index (0–15) Extent of shareholder rights index (0–10) 7 Documentary compliance (US$) 75 13.0 4 253 Extent of ownership and control index (0–10) Border compliance (US$) (rank) 43 Extent of corporate transparency index (0–10) Getting electricity 8 Score for getting electricity (0–100) 84.24 Enforcing contracts (rank) 102 ✔ Procedures (number) 5 Paying taxes (rank) 4 Score for enforcing contracts (0–100) 56.03 Time (days) 85 94.46 Time (days) 650 Score for paying taxes (0–100) 48.3 26.9 9 Cost (% of claim value) Cost (% of income per capita) Payments (number per year) 8 Reliability of supply and transparency of tariffs index (0–8) 82 Quality of judicial processes index (0–18) 7.5 Time (hours per year) Total tax and contribution rate (% of profit) 26.0 18 Registering property (rank) 64 Postfiling index (0–100) 92.93 Resolving insolvency (rank) ✘ Score for registering property (0–100) Score for resolving insolvency (0–100) 79.12 69.63 5 Procedures (number) 0.4 Time (years) Time (days) 31.5 Cost (% of estate) 9.0 Cost (% of property value) 6.5 Recovery rate (cents on the dollar) 86.0 Quality of land administration index (0–30) 21.0 Strength of insolvency framework index (0–16) 10.5 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

186 179 COUNTRY TABLES Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 37,270 OECD high income ISRAEL 73.23 Ease of doing business score (0–100) Ease of doing business rank (1–190) Population 49 8,712,400 (rank) 64 Trading across borders (rank) Getting credit Starting a business (rank) 60 45 Score for trading across borders (0–100) 82.85 65.00 92.35 Score for starting a business (0–100) Score for getting credit (0–100) Time to export 6 Strength of legal rights index (0–12) Procedures (number) 4 7 13 Time (days) Documentary compliance (hours) 12 Depth of credit information index (0–8) 70.3 Border compliance (hours) 36 Cost (% of income per capita) 2.8 Credit bureau coverage (% of adults) Cost to export 0.0 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) Documentary compliance (US$) 73 41 Protecting minority investors (rank) 23 Dealing with construction permits 150 (rank) Border compliance (US$) 75.10 73.33 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) Extent of disclosure index (0–10) 7 44 Procedures (number) 13 Documentary compliance (hours) 9 64 Extent of director liability index (0–10) Time (days) 207 Border compliance (hours) 9 Cost to import 1.8 Cost (% of warehouse value) Ease of shareholder suits index (0–10) Extent of shareholder rights index (0–10) 7 Documentary compliance (US$) 70 Building quality control index (0–15) 14.0 Border compliance (US$) 3 Extent of ownership and control index (0–10) 307 78 9 (rank) Extent of corporate transparency index (0–10) Getting electricity Enforcing contracts (rank) 90 Score for getting electricity (0–100) 76.24 Paying taxes (rank) 90 Score for enforcing contracts (0–100) 57.93 5 Procedures (number) 102 Score for paying taxes (0–100) 72.56 Time (days) 975 Time (days) 13.9 Cost (% of income per capita) 28 Cost (% of claim value) 25.3 Payments (number per year) 6 Time (hours per year) Quality of judicial processes index (0–18) 13.0 Reliability of supply and transparency of tariffs index (0–8) 239 Total tax and contribution rate (% of profit) 26.2 Resolving insolvency (rank) 29 89 Postfiling index (0–100) 61.36 Registering property (rank) ✔ 72.73 Score for resolving insolvency (0–100) Score for registering property (0–100) 64.19 Procedures (number) 6 Time (years) 2.0 Cost (% of estate) Time (days) 37 23.0 7.2 62.5 Cost (% of property value) Recovery rate (cents on the dollar) Strength of insolvency framework index (0–16) Quality of land administration index (0–30) 19.0 12.5 GNI per capita (US$) 31,020 OECD high income ITALY Ease of doing business score (0–100) 72.56 Ease of doing business rank (1–190) Population 60,551,416 51 (rank) 67 Getting credit (rank) 112 Trading across borders (rank) 1 Starting a business 89.50 Score for starting a business (0–100) 45.00 Score for trading across borders (0–100) 100.00 Score for getting credit (0–100) 6 Strength of legal rights index (0–12) Procedures (number) 2 Time to export 6 7 Documentary compliance (hours) 1 Time (days) Depth of credit information index (0–8) Credit bureau coverage (% of adults) 100.0 Cost (% of income per capita) 0 14.1 Border compliance (hours) Cost to export 0.0 Credit registry coverage (% of adults) 30.5 Minimum capital (% of income per capita) 0 Documentary compliance (US$) Dealing with construction permits (rank) Protecting minority investors (rank) 72 Border compliance (US$) 0 104 67.39 58.33 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 12 Extent of disclosure index (0–10) 7 Procedures (number) 1 Documentary compliance (hours) Time (days) 227.5 Extent of director liability index (0–10) 4 Border compliance (hours) 0 Cost (% of warehouse value) 3.5 Ease of shareholder suits index (0–10) 6 Cost to import Building quality control index (0–15) 11.0 6 Documentary compliance (US$) 0 Extent of shareholder rights index (0–10) 4 Border compliance (US$) Extent of ownership and control index (0–10) 0 37 (rank) Extent of corporate transparency index (0–10) Getting electricity 8 (rank) Enforcing contracts 111 85.28 Score for getting electricity (0–100) Paying taxes Procedures (number) 118 Score for enforcing contracts (0–100) 54.79 4 (rank) ✘ 1,120 66.32 Time (days) Score for paying taxes (0–100) 82 Time (days) Payments (number per year) 14 Cost (% of claim value) 23.1 151.8 Cost (% of income per capita) Time (hours per year) 13.0 Quality of judicial processes index (0–18) 7 Reliability of supply and transparency of tariffs index (0–8) 238 53.1 Total tax and contribution rate (% of profit) Registering property (rank) Postfiling index (0–100) 52.39 Resolving insolvency (rank) 22 23 81.72 Score for resolving insolvency (0–100) 77.28 Score for registering property (0–100) 4 Procedures (number) 1.8 Time (years) 16 Cost (% of estate) Time (days) 22.0 Recovery rate (cents on the dollar) Cost (% of property value) 4.4 65.2 Quality of land administration index (0–30) 26.5 Strength of insolvency framework index (0–16) 13.5 GNI per capita (US$) Latin America & Caribbean 4,750 JAMAICA Ease of doing business score (0–100) 67.47 Ease of doing business rank (1–190) 75 Population 2,890,299 (rank) 6 Starting a business Getting credit (rank) 12 Trading across borders (rank) 134 ✔ Score for starting a business (0–100) Score for getting credit (0–100) 85.00 Score for trading across borders (0–100) 61.54 97.35 2 9 Procedures (number) Strength of legal rights index (0–12) Time to export Time (days) Depth of credit information index (0–8) 8 Documentary compliance (hours) 47 3 Cost (% of income per capita) 4.4 Credit bureau coverage (% of adults) 27.7 Border compliance (hours) 58 Cost to export Minimum capital (% of income per capita) 0.0 0.0 Credit registry coverage (% of adults) 90 Documentary compliance (US$) 76 Protecting minority investors (rank) 89 Border compliance (US$) 876 Dealing with construction permits (rank) 70.71 Score for protecting minority investors (0–100) Time to import Score for dealing with construction permits (0–100) 55.00 19 4 Documentary compliance (hours) 56 Procedures (number) Extent of disclosure index (0–10) 141.5 Extent of director liability index (0–10) 8 Border compliance (hours) 80 Time (days) 1.6 Cost (% of warehouse value) 5 Cost to import Ease of shareholder suits index (0–10) 12.0 6 Documentary compliance (US$) 90 Building quality control index (0–15) Extent of shareholder rights index (0–10) 4 Border compliance (US$) 906 Extent of ownership and control index (0–10) Getting electricity 115 Extent of corporate transparency index (0–10) 6 (rank) Score for getting electricity (0–100) 64.96 Enforcing contracts (rank) 127 Procedures (number) 7 Paying taxes (rank) 123 Score for enforcing contracts (0–100) 51.87 Time (days) 95 64.79 Time (days) 550 Score for paying taxes (0–100) 203.9 50.2 11 Cost (% of claim value) Cost (% of income per capita) Payments (number per year) 5 Reliability of supply and transparency of tariffs index (0–8) 272 Quality of judicial processes index (0–18) 8.5 Time (hours per year) Total tax and contribution rate (% of profit) 35.1 Registering property (rank) 131 Postfiling index (0–100) 19.68 Resolving insolvency (rank) 33 Score for registering property (0–100) 53.61 69.83 Score for resolving insolvency (0–100) 8 Time (years) Procedures (number) 1.1 Time (days) 19 Cost (% of estate) 18.0 Cost (% of property value) 9.8 Recovery rate (cents on the dollar) 65.9 Quality of land administration index (0–30) 14.0 Strength of insolvency framework index (0–16) 11.0 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

187 DOING BUSINESS 2019 180 Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 38,550 OECD high income JAPAN Ease of doing business score (0–100) 75.65 Population Ease of doing business rank (1–190) 39 126,785,797 Starting a business 85 Trading across borders (rank) 56 (rank) 93 Getting credit (rank) Score for trading across borders (0–100) 86.51 55.00 Score for getting credit (0–100) 86.10 Score for starting a business (0–100) Time to export 5 Strength of legal rights index (0–12) Procedures (number) 8 6 2.4 Time (days) Documentary compliance (hours) 11.2 Depth of credit information index (0–8) 100.0 Border compliance (hours) 22.6 Cost (% of income per capita) 7.5 Credit bureau coverage (% of adults) Cost to export 0.0 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) Documentary compliance (US$) 54 44 Protecting minority investors (rank) 64 Border compliance (US$) 264.9 Dealing with construction permits (rank) Score for protecting minority investors (0–100) 74.95 Time to import Score for dealing with construction permits (0–100) 60.00 Extent of disclosure index (0–10) Procedures (number) 3.4 7 12 Documentary compliance (hours) 6 39.6 Extent of director liability index (0–10) Border compliance (hours) Time (days) 175 8 Cost to import Cost (% of warehouse value) 0.5 Ease of shareholder suits index (0–10) 6 Documentary compliance (US$) 107 Extent of shareholder rights index (0–10) 11.0 Building quality control index (0–15) Border compliance (US$) 299.2 Extent of ownership and control index (0–10) 3 22 Getting electricity 6 (rank) Extent of corporate transparency index (0–10) Enforcing contracts 52 89.88 (rank) Score for getting electricity (0–100) Paying taxes (rank) 97 Score for enforcing contracts (0–100) Procedures (number) 3.4 65.26 97.7 Score for paying taxes (0–100) 71.14 Time (days) 360 Time (days) Cost (% of income per capita) Payments (number per year) 30 Cost (% of claim value) 23.4 0.0 Reliability of supply and transparency of tariffs index (0–8) Time (hours per year) 129.5 Quality of judicial processes index (0–18) 7.5 8 46.7 Total tax and contribution rate (% of profit) (rank) 1 71.69 Resolving insolvency Registering property 48 Postfiling index (0–100) (rank) Score for resolving insolvency (0–100) 93.45 Score for registering property (0–100) 74.21 0.6 Procedures (number) 6 Time (years) 4.2 13 Time (days) Cost (% of estate) 92.4 Recovery rate (cents on the dollar) Cost (% of property value) 5.8 Strength of insolvency framework index (0–16) 14.0 Quality of land administration index (0–30) 24.8 Middle East & North Africa GNI per capita (US$) 3,980 JORDAN 60.98 Ease of doing business score (0–100) 104 Population 9,702,353 Ease of doing business rank (1–190) 106 Starting a business Getting credit (rank) 134 Trading across borders (rank) 74 (rank) ✔ 84.43 Score for getting credit (0–100) 35.00 Score for starting a business (0–100) 79.03 Score for trading across borders (0–100) Procedures (number) Strength of legal rights index (0–12) 0 7.5 Time to export Time (days) 7 Documentary compliance (hours) 6 12.5 Depth of credit information index (0–8) Credit bureau coverage (% of adults) 53 Border compliance (hours) 23.9 Cost (% of income per capita) 19.9 Cost to export 0.1 4.8 Minimum capital (% of income per capita) Credit registry coverage (% of adults) Documentary compliance (US$) 100 (rank) 139 131 Dealing with construction permits (rank) 125 Border compliance (US$) Protecting minority investors ✔ 60.47 46.67 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 20 Extent of disclosure index (0–10) 4 Procedures (number) 55 Documentary compliance (hours) Time (days) 66 Extent of director liability index (0–10) 4 Border compliance (hours) 79 Cost (% of warehouse value) 12.0 Ease of shareholder suits index (0–10) 3 Cost to import Building quality control index (0–15) 11.0 3 Documentary compliance (US$) 190 Extent of shareholder rights index (0–10) 6 Border compliance (US$) Extent of ownership and control index (0–10) 206 62 Extent of corporate transparency index (0–10) (rank) Getting electricity 8 Enforcing contracts 108 Score for getting electricity (0–100) (rank) 80.49 ✔ Paying taxes 5 95 Score for enforcing contracts (0–100) 55.56 Procedures (number) (rank) ✔ Score for paying taxes (0–100) 71.48 Time (days) 642 55 Time (days) 293.6 23 Cost (% of claim value) 31.2 Cost (% of income per capita) Payments (number per year) Time (hours per year) Quality of judicial processes index (0–18) 8.0 6 Reliability of supply and transparency of tariffs index (0–8) 126.8 Total tax and contribution rate (% of profit) 28.6 (rank) Postfiling index (0–100) 34.69 Resolving insolvency (rank) 150 Registering property 72 66.40 Score for resolving insolvency (0–100) 30.31 Score for registering property (0–100) 6 Procedures (number) 3.0 Time (years) 17 Cost (% of estate) Time (days) 20.0 Recovery rate (cents on the dollar) Cost (% of property value) 9.0 27.3 Quality of land administration index (0–30) 22.5 Strength of insolvency framework index (0–16) 5.0 GNI per capita (US$) Europe & Central Asia 7,890 KAZAKHSTAN Ease of doing business score (0–100) 77.89 Ease of doing business rank (1–190) 28 Population 18,037,646 Starting a business (rank) 36 102 (rank) 60 (rank) Trading across borders Getting credit ✔ ✔ 92.96 65.00 Score for trading across borders (0–100) 70.36 Score for starting a business (0–100) Score for getting credit (0–100) 5 Strength of legal rights index (0–12) Procedures (number) 6 Time to export Time (days) 5 Depth of credit information index (0–8) 7 Documentary compliance (hours) 128 Cost (% of income per capita) 0.3 Credit bureau coverage (% of adults) 59.3 Border compliance (hours) 105 Cost to export Minimum capital (% of income per capita) 0.0 0.0 Credit registry coverage (% of adults) 200 Documentary compliance (US$) 35 Protecting minority investors (rank) 1 Border compliance (US$) 470 Dealing with construction permits (rank) 75.77 Score for protecting minority investors (0–100) Time to import Score for dealing with construction permits (0–100) 85.00 18 9 Documentary compliance (hours) 6 Procedures (number) Extent of disclosure index (0–10) 101.5 Extent of director liability index (0–10) 6 Border compliance (hours) 2 Time (days) 2.0 Cost (% of warehouse value) 9 Cost to import Ease of shareholder suits index (0–10) 13.0 10 Documentary compliance (US$) 0 Building quality control index (0–15) Extent of shareholder rights index (0–10) 8 Border compliance (US$) 0 Extent of ownership and control index (0–10) Getting electricity (rank) Extent of corporate transparency index (0–10) 9 76 Score for getting electricity (0–100) Enforcing contracts (rank) 4 76.79 ✔ Procedures (number) 7 Paying taxes (rank) 56 Score for enforcing contracts (0–100) 81.25 Time (days) 77 79.28 Time (days) 370 Score for paying taxes (0–100) 43.2 22.0 7 Cost (% of claim value) Cost (% of income per capita) Payments (number per year) 8 Reliability of supply and transparency of tariffs index (0–8) 182 Quality of judicial processes index (0–18) 16.0 Time (hours per year) Total tax and contribution rate (% of profit) 29.4 Registering property (rank) 18 Postfiling index (0–100) 48.85 Resolving insolvency (rank) 37 Score for registering property (0–100) 84.62 67.83 Score for resolving insolvency (0–100) 3 Time (years) Procedures (number) 1.5 Time (days) 3.5 Cost (% of estate) 15.0 Cost (% of property value) 0.1 Recovery rate (cents on the dollar) 38.9 Quality of land administration index (0–30) 17.0 Strength of insolvency framework index (0–16) 15.0 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

188 181 COUNTRY TABLES Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 1,440 Sub-Saharan Africa KENYA 70.31 Ease of doing business score (0–100) Ease of doing business rank (1–190) Population 61 49,699,862 Getting credit 112 8 Trading across borders (rank) Starting a business (rank) 126 (rank) ✔ 90.00 Score for trading across borders (0–100) 68.06 82.41 Score for starting a business (0–100) Score for getting credit (0–100) Time to export 10 Strength of legal rights index (0–12) Procedures (number) 7 8 19 Time (days) Documentary compliance (hours) 23 Depth of credit information index (0–8) 29.9 Border compliance (hours) 16 Cost (% of income per capita) 24.9 Credit bureau coverage (% of adults) Cost to export 0.0 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) Documentary compliance (US$) 191 128 11 Protecting minority investors (rank) Dealing with construction permits Border compliance (US$) 143 (rank) ✔ 63.49 78.33 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) Extent of disclosure index (0–10) 10 60 Procedures (number) 16 Documentary compliance (hours) 10 180 Extent of director liability index (0–10) Time (days) 159 Border compliance (hours) 9 Cost to import 4.7 Cost (% of warehouse value) Ease of shareholder suits index (0–10) Extent of shareholder rights index (0–10) 7 Documentary compliance (US$) 115 Building quality control index (0–15) 9.0 Border compliance (US$) 6 Extent of ownership and control index (0–10) 833 75 5 (rank) Getting electricity Extent of corporate transparency index (0–10) Enforcing contracts (rank) 88 Score for getting electricity (0–100) 76.80 Paying taxes (rank) 91 Score for enforcing contracts (0–100) 58.27 Procedures (number) 3 ✔ 97 Time (days) 72.37 Time (days) 465 Score for paying taxes (0–100) Cost (% of income per capita) Payments (number per year) 25 Cost (% of claim value) 41.8 685.9 4 Time (hours per year) Quality of judicial processes index (0–18) 9.0 Reliability of supply and transparency of tariffs index (0–8) 179.5 Total tax and contribution rate (% of profit) 37.2 Postfiling index (0–100) 62.03 122 (rank) 57 Resolving insolvency Registering property (rank) ✔ ✔ 57.41 Score for resolving insolvency (0–100) Score for registering property (0–100) 55.97 Procedures (number) 9 Time (years) 4.5 Cost (% of estate) Time (days) 49 22.0 6.0 31.2 Cost (% of property value) Recovery rate (cents on the dollar) Strength of insolvency framework index (0–16) Quality of land administration index (0–30) 16.0 13.0 GNI per capita (US$) 2,780 East Asia & Pacific KIRIBATI Ease of doing business score (0–100) 49.07 Ease of doing business rank (1–190) Population 116,398 158 (rank) 149 Getting credit (rank) 172 Starting a business (rank) 131 Trading across borders Score for starting a business (0–100) Score for getting credit (0–100) 20.00 Score for trading across borders (0–100) 62.08 78.20 7 Strength of legal rights index (0–12) Procedures (number) 4 Time to export 31 0 Documentary compliance (hours) 24 Time (days) Depth of credit information index (0–8) Cost (% of income per capita) 0.0 Border compliance (hours) 72 36.1 Credit bureau coverage (% of adults) Cost to export Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) 12.9 310 Documentary compliance (US$) (rank) Protecting minority investors (rank) 125 Border compliance (US$) 420 Dealing with construction permits 117 65.73 Score for dealing with construction permits (0–100) 46.67 Time to import Score for protecting minority investors (0–100) Procedures (number) 15 Extent of disclosure index (0–10) 6 Documentary compliance (hours) 48 Time (days) 150 Extent of director liability index (0–10) 5 Border compliance (hours) 96 Cost (% of warehouse value) 0.3 8 Cost to import Ease of shareholder suits index (0–10) 6.0 Extent of shareholder rights index (0–10) Documentary compliance (US$) 120 Building quality control index (0–15) 5 Border compliance (US$) 685 Extent of ownership and control index (0–10) 2 Extent of corporate transparency index (0–10) 2 Getting electricity 170 (rank) Score for getting electricity (0–100) Enforcing contracts (rank) 120 44.05 Paying taxes (rank) 96 Score for enforcing contracts (0–100) 53.39 Procedures (number) 6 Score for paying taxes (0–100) 97 Time (days) 660 Time (days) 71.42 Payments (number per year) Cost (% of claim value) 25.8 3,196.1 11 Cost (% of income per capita) Time (hours per year) Reliability of supply and transparency of tariffs index (0–8) Quality of judicial processes index (0–18) 6.0 0 168 32.7 Total tax and contribution rate (% of profit) (rank) 149 Postfiling index (0–100) 26.68 Resolving insolvency (rank) 168 Registering property Score for registering property (0–100) 49.13 0.00 Score for resolving insolvency (0–100) 5 Time (years) Procedures (number) no practice Cost (% of estate) 513 no practice Time (days) Cost (% of property value) 0.0 Recovery rate (cents on the dollar) 0.0 Strength of insolvency framework index (0–16) Quality of land administration index (0–30) 9.0 0.0 OECD high income GNI per capita (US$) 28,380 KOREA, REP. Ease of doing business score (0–100) 84.14 Ease of doing business rank (1–190) Population 5 51,466,201 Starting a business (rank) Getting credit (rank) 60 Trading across borders (rank) 33 11 95.83 92.52 65.00 Score for trading across borders (0–100) Score for starting a business (0–100) Score for getting credit (0–100) 2 5 Procedures (number) Strength of legal rights index (0–12) Time to export Time (days) Depth of credit information index (0–8) 8 Documentary compliance (hours) 1 4 Cost (% of income per capita) 14.6 Credit bureau coverage (% of adults) 100.0 Border compliance (hours) 13 Cost to export Minimum capital (% of income per capita) 65.7 0.0 Credit registry coverage (% of adults) 11 Documentary compliance (US$) 10 Protecting minority investors (rank) 23 Border compliance (US$) 185 Dealing with construction permits (rank) 84.43 Score for protecting minority investors (0–100) Time to import Score for dealing with construction permits (0–100) 73.33 10 8 Documentary compliance (hours) 1 Procedures (number) Extent of disclosure index (0–10) 27.5 Extent of director liability index (0–10) 6 Border compliance (hours) 6 Time (days) 4.4 Cost (% of warehouse value) 8 Cost to import Ease of shareholder suits index (0–10) 12.0 7 Documentary compliance (US$) 27 Building quality control index (0–15) Extent of shareholder rights index (0–10) 6 Border compliance (US$) 315 Extent of ownership and control index (0–10) Getting electricity 2 Extent of corporate transparency index (0–10) 9 (rank) Score for getting electricity (0–100) 99.89 Enforcing contracts (rank) 2 Procedures (number) 3 Paying taxes (rank) 24 Score for enforcing contracts (0–100) 84.15 Time (days) 13 86.91 Time (days) 290 Score for paying taxes (0–100) 35.2 12.7 12 Cost (% of claim value) Cost (% of income per capita) Payments (number per year) 8 Reliability of supply and transparency of tariffs index (0–8) 188 Quality of judicial processes index (0–18) 14.5 Time (hours per year) Total tax and contribution rate (% of profit) 33.1 Registering property (rank) 40 Postfiling index (0–100) 93.93 Resolving insolvency (rank) 11 Score for registering property (0–100) 76.34 83.01 Score for resolving insolvency (0–100) 7 Time (years) Procedures (number) 1.5 Time (days) 5.5 Cost (% of estate) 3.5 Cost (% of property value) 5.1 Recovery rate (cents on the dollar) 84.6 Quality of land administration index (0–30) 27.5 Strength of insolvency framework index (0–16) 12.0 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

189 DOING BUSINESS 2019 182 Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 3,890 Europe & Central Asia KOSOVO Ease of doing business score (0–100) 74.15 44 Population 1,830,700 Ease of doing business rank (1–190) Starting a business 12 51 Trading across borders (rank) 13 (rank) Getting credit (rank) ✔ 85.00 Score for trading across borders (0–100) 87.46 Score for getting credit (0–100) 95.68 Score for starting a business (0–100) Time to export 3 Strength of legal rights index (0–12) Procedures (number) 11 Depth of credit information index (0–8) Documentary compliance (hours) 38 Time (days) 5.5 6 0.0 21 Credit bureau coverage (% of adults) Border compliance (hours) Cost (% of income per capita) 1.0 Cost to export 0.0 Credit registry coverage (% of adults) Minimum capital (% of income per capita) 41.3 127 Documentary compliance (US$) (rank) 100 Protecting minority investors (rank) Dealing with construction permits Border compliance (US$) 105 95 ✔ Score for protecting minority investors (0–100) 53.33 Time to import Score for dealing with construction permits (0–100) 67.92 Extent of disclosure index (0–10) 6 6 Procedures (number) 12 Documentary compliance (hours) 6 16 Extent of director liability index (0–10) Time (days) 150 Border compliance (hours) 4 Cost to import 4.9 Cost (% of warehouse value) Ease of shareholder suits index (0–10) Extent of shareholder rights index (0–10) 9 Documentary compliance (US$) 42 Building quality control index (0–15) 9.0 Border compliance (US$) 2 Extent of ownership and control index (0–10) 128 113 5 (rank) Getting electricity Extent of corporate transparency index (0–10) Enforcing contracts (rank) 50 Score for getting electricity (0–100) 66.16 Paying taxes (rank) 44 Score for enforcing contracts (0–100) 65.66 Procedures (number) 6 ✔ 36 Score for paying taxes (0–100) 81.92 Time (days) Time (days) 330 Cost (% of income per capita) Payments (number per year) 10 Cost (% of claim value) 34.4 206.0 2 Reliability of supply and transparency of tariffs index (0–8) Quality of judicial processes index (0–18) 9.5 Time (hours per year) 153.5 Total tax and contribution rate (% of profit) 15.2 Postfiling index (0–100) 55.50 Resolving insolvency (rank) 50 (rank) Registering property 37 60.28 78.13 Score for registering property (0–100) Score for resolving insolvency (0–100) Procedures (number) 6 Time (years) 2.0 Cost (% of estate) 15.0 Time (days) 27 Recovery rate (cents on the dollar) Cost (% of property value) 0.3 39.4 Strength of insolvency framework index (0–16) Quality of land administration index (0–30) 20.5 12.5 GNI per capita (US$) 31,430 Middle East & North Africa KUWAIT Ease of doing business score (0–100) 62.20 Ease of doing business rank (1–190) Population 4,136,528 97 Starting a business (rank) 133 Getting credit (rank) 134 Trading across borders (rank) 159 ✔ Score for starting a business (0–100) Score for getting credit (0–100) 35.00 Score for trading across borders (0–100) 54.24 81.40 7.5 Strength of legal rights index (0–12) Time to export Procedures (number) 1 Depth of credit information index (0–8) Documentary compliance (hours) 72 35.5 6 Time (days) Credit bureau coverage (% of adults) 30.7 Cost (% of income per capita) 96 2.0 Border compliance (hours) Cost to export 0.0 Credit registry coverage (% of adults) 15.5 Minimum capital (% of income per capita) 191 Documentary compliance (US$) (rank) 131 Dealing with construction permits Protecting minority investors (rank) 72 Border compliance (US$) 602 ✔ Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 58.33 Time to import 62.35 23 Extent of disclosure index (0–10) 5 Procedures (number) 96 Documentary compliance (hours) Time (days) 231 Extent of director liability index (0–10) 9 Border compliance (hours) 89 Cost (% of warehouse value) 1.2 Ease of shareholder suits index (0–10) 4 Cost to import Building quality control index (0–15) 13.0 Documentary compliance (US$) 332 Extent of shareholder rights index (0–10) 3 Border compliance (US$) 491 Extent of ownership and control index (0–10) 6 Extent of corporate transparency index (0–10) Getting electricity (rank) 8 95 (rank) 77 Score for getting electricity (0–100) 71.78 Enforcing contracts (rank) 7 Score for enforcing contracts (0–100) 59.58 Paying taxes Procedures (number) 7 Score for paying taxes (0–100) 92.48 Time (days) 566 Time (days) 65 Payments (number per year) 63.8 Cost (% of claim value) 18.6 Cost (% of income per capita) 12 Time (hours per year) Quality of judicial processes index (0–18) 6.5 6 98 Reliability of supply and transparency of tariffs index (0–8) Total tax and contribution rate (% of profit) 13.0 69 Postfiling index (0–100) Registering property Resolving insolvency (rank) 115 (rank) not applicable 67.54 Score for resolving insolvency (0–100) 39.29 Score for registering property (0–100) 9 Time (years) 4.2 Procedures (number) 35 Cost (% of estate) Time (days) 10.0 Recovery rate (cents on the dollar) Cost (% of property value) 0.5 32.4 Quality of land administration index (0–30) 17.0 Strength of insolvency framework index (0–16) 7.0 GNI per capita (US$) Europe & Central Asia 1,130 KYRGYZ REPUBLIC Ease of doing business score (0–100) 68.33 Ease of doing business rank (1–190) 70 Population 6,201,500 (rank) 35 Getting credit (rank) 32 Trading across borders Starting a business (rank) 70 ✔ Score for starting a business (0–100) 75.00 Score for trading across borders (0–100) 80.74 92.97 Score for getting credit (0–100) Strength of legal rights index (0–12) 9 Procedures (number) 4 Time to export 10 Depth of credit information index (0–8) 6 Documentary compliance (hours) 21 Time (days) 1.9 Credit bureau coverage (% of adults) 37.9 Border compliance (hours) 5 Cost (% of income per capita) Cost to export 0.0 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) Documentary compliance (US$) 110 (rank) 29 Protecting minority investors (rank) 38 Border compliance (US$) 10 Dealing with construction permits ✔ 77.10 66.67 Time to import Score for protecting minority investors (0–100) Score for dealing with construction permits (0–100) Extent of disclosure index (0–10) 7 Documentary compliance (hours) Procedures (number) 11 36 142 Extent of director liability index (0–10) 5 Border compliance (hours) 72 Time (days) Cost (% of warehouse value) Ease of shareholder suits index (0–10) 8 Cost to import 1.5 Building quality control index (0–15) Extent of shareholder rights index (0–10) 5 Documentary compliance (US$) 200 11.0 8 512 Extent of ownership and control index (0–10) Border compliance (US$) (rank) 164 Extent of corporate transparency index (0–10) Getting electricity 7 Score for getting electricity (0–100) 46.01 Enforcing contracts (rank) 131 ✔ Procedures (number) 7 Paying taxes (rank) 150 Score for enforcing contracts (0–100) 50.42 Time (days) 111 56.55 Time (days) 410 Score for paying taxes (0–100) 717.7 47.0 51 Cost (% of claim value) Cost (% of income per capita) Payments (number per year) 0 Reliability of supply and transparency of tariffs index (0–8) 225 Quality of judicial processes index (0–18) 5.0 Time (hours per year) Total tax and contribution rate (% of profit) 29.0 Registering property (rank) 8 Postfiling index (0–100) 37.38 82 Resolving insolvency (rank) ✔ Score for registering property (0–100) Score for resolving insolvency (0–100) 47.62 90.27 3 Procedures (number) 1.5 Time (years) Time (days) 3.5 Cost (% of estate) 15.0 Cost (% of property value) 0.2 Recovery rate (cents on the dollar) 36.2 Quality of land administration index (0–30) 24.0 Strength of insolvency framework index (0–16) 9.0 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

190 183 COUNTRY TABLES Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 2,270 East Asia & Pacific LAO PDR 51.26 Ease of doing business score (0–100) Ease of doing business rank (1–190) Population 154 6,858,160 (rank) 76 Starting a business Trading across borders (rank) Getting credit (rank) 180 73 ✔ 60.00 Score for trading across borders (0–100) 78.12 60.93 Score for starting a business (0–100) Score for getting credit (0–100) Time to export 6 Strength of legal rights index (0–12) Procedures (number) 10 6 60 Time (days) Documentary compliance (hours) 174 Depth of credit information index (0–8) 0.0 Border compliance (hours) 9 Cost (% of income per capita) 6.6 Credit bureau coverage (% of adults) Cost to export 14.5 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) Documentary compliance (US$) 235 99 Protecting minority investors (rank) Dealing with construction permits Border compliance (US$) 140 (rank) 174 67.94 31.67 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) Extent of disclosure index (0–10) 6 60 Procedures (number) 12 Documentary compliance (hours) 1 11 Extent of director liability index (0–10) Time (days) 92 Border compliance (hours) 3 Cost to import 4.9 Cost (% of warehouse value) Ease of shareholder suits index (0–10) Extent of shareholder rights index (0–10) 4 Documentary compliance (US$) 115 Building quality control index (0–15) 6.5 Border compliance (US$) 4 Extent of ownership and control index (0–10) 224 156 1 (rank) Extent of corporate transparency index (0–10) Getting electricity Enforcing contracts (rank) 162 Score for getting electricity (0–100) 52.77 Paying taxes (rank) 155 Score for enforcing contracts (0–100) 41.99 7 Procedures (number) 105 Score for paying taxes (0–100) 54.22 Time (days) Time (days) 828 Cost (% of income per capita) Payments (number per year) 35 Cost (% of claim value) 31.6 763.4 2 Time (hours per year) Quality of judicial processes index (0–18) 3.5 Reliability of supply and transparency of tariffs index (0–8) 362 Total tax and contribution rate (% of profit) 24.1 Resolving insolvency (rank) 168 Postfiling index (0–100) 18.57 (rank) Registering property 85 0.00 64.93 Score for registering property (0–100) Score for resolving insolvency (0–100) Procedures (number) 6 Time (years) no practice Cost (% of estate) no practice Time (days) 28 Recovery rate (cents on the dollar) Cost (% of property value) 3.1 0.0 Strength of insolvency framework index (0–16) Quality of land administration index (0–30) 10.5 0.0 GNI per capita (US$) 14,740 OECD high income LATVIA Ease of doing business score (0–100) 79.59 Ease of doing business rank (1–190) Population 1,940,740 19 (rank) 24 Getting credit (rank) 12 Trading across borders (rank) 26 Starting a business Score for starting a business (0–100) 94.13 85.00 Score for trading across borders (0–100) 95.26 Score for getting credit (0–100) 4 Strength of legal rights index (0–12) Procedures (number) 9 Time to export 5.5 8 Documentary compliance (hours) 2 Time (days) Depth of credit information index (0–8) Credit bureau coverage (% of adults) 44.6 Cost (% of income per capita) 24 1.6 Border compliance (hours) Cost to export 0.0 Credit registry coverage (% of adults) 93.3 Minimum capital (% of income per capita) 35 Documentary compliance (US$) Dealing with construction permits (rank) Protecting minority investors (rank) 51 Border compliance (US$) 150 56 73.46 63.33 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 14 Extent of disclosure index (0–10) 5 Procedures (number) 1 Documentary compliance (hours) Time (days) 192 Extent of director liability index (0–10) 4 Border compliance (hours) 0 Cost (% of warehouse value) 0.5 Ease of shareholder suits index (0–10) 9 Cost to import Building quality control index (0–15) 12.0 7 Documentary compliance (US$) 0 Extent of shareholder rights index (0–10) 5 Border compliance (US$) Extent of ownership and control index (0–10) 0 53 Getting electricity Extent of corporate transparency index (0–10) (rank) 8 (rank) Enforcing contracts 20 Score for getting electricity (0–100) 82.24 (rank) 13 Score for enforcing contracts (0–100) 71.66 Procedures (number) 4 Paying taxes Time (days) 469 89.74 Score for paying taxes (0–100) 107 Time (days) Cost (% of income per capita) 7 Cost (% of claim value) 23.1 258.9 Payments (number per year) 7 168.5 Quality of judicial processes index (0–18) 12.5 Reliability of supply and transparency of tariffs index (0–8) Time (hours per year) 36.0 Total tax and contribution rate (% of profit) 98.11 25 Postfiling index (0–100) Registering property Resolving insolvency (rank) 54 (rank) ✘ 81.45 Score for resolving insolvency (0–100) 59.60 Score for registering property (0–100) 4 Procedures (number) 1.5 Time (years) 16.5 Cost (% of estate) Time (days) 10.0 Recovery rate (cents on the dollar) Cost (% of property value) 2.0 41.1 Quality of land administration index (0–30) 21.5 Strength of insolvency framework index (0–16) 12.0 GNI per capita (US$) Middle East & North Africa 8,310 LEBANON Ease of doing business score (0–100) 54.04 Ease of doing business rank (1–190) 142 Population 6,082,357 (rank) 146 Starting a business (rank) 124 Trading across borders (rank) 150 Getting credit Score for starting a business (0–100) Score for getting credit (0–100) 40.00 Score for trading across borders (0–100) 57.90 78.63 8 2 Procedures (number) Strength of legal rights index (0–12) Time to export Time (days) Depth of credit information index (0–8) 6 Documentary compliance (hours) 48 15 Cost (% of income per capita) 40.0 Credit bureau coverage (% of adults) 0.0 Border compliance (hours) 96 Cost to export Minimum capital (% of income per capita) 23.6 38.9 Credit registry coverage (% of adults) 100 Documentary compliance (US$) 170 Protecting minority investors (rank) 140 Border compliance (US$) 480 Dealing with construction permits (rank) 52.69 Score for protecting minority investors (0–100) Time to import Score for dealing with construction permits (0–100) 41.67 22 9 Documentary compliance (hours) 72 Procedures (number) Extent of disclosure index (0–10) 277 Extent of director liability index (0–10) 1 Border compliance (hours) 180 Time (days) 7.1 Cost (% of warehouse value) 5 Cost to import Ease of shareholder suits index (0–10) 13.0 4 Documentary compliance (US$) 135 Building quality control index (0–15) Extent of shareholder rights index (0–10) 1 Border compliance (US$) 790 Extent of ownership and control index (0–10) Getting electricity 124 Extent of corporate transparency index (0–10) 5 (rank) Score for getting electricity (0–100) 62.75 Enforcing contracts (rank) 135 Procedures (number) 4 Paying taxes (rank) 113 Score for enforcing contracts (0–100) 49.85 Time (days) 89 67.94 Time (days) 721 Score for paying taxes (0–100) 119.4 30.8 20 Cost (% of claim value) Cost (% of income per capita) Payments (number per year) 0 Reliability of supply and transparency of tariffs index (0–8) 181 Quality of judicial processes index (0–18) 6.0 Time (hours per year) Total tax and contribution rate (% of profit) 31.1 Registering property (rank) 105 Postfiling index (0–100) 27.48 Resolving insolvency (rank) 151 Score for registering property (0–100) 59.44 29.55 Score for resolving insolvency (0–100) 8 Time (years) Procedures (number) 3.0 Time (days) 37 Cost (% of estate) 15.0 Cost (% of property value) 6.0 Recovery rate (cents on the dollar) 31.7 Quality of land administration index (0–30) 16.0 Strength of insolvency framework index (0–16) 4.0 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

191 DOING BUSINESS 2019 184 Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 1,280 Sub-Saharan Africa LESOTHO 60.60 Ease of doing business score (0–100) Ease of doing business rank (1–190) Population 106 2,233,339 (rank) 38 Starting a business Trading across borders (rank) Getting credit (rank) 119 85 ✔ 55.00 Score for trading across borders (0–100) 91.86 83.13 Score for starting a business (0–100) Score for getting credit (0–100) Time to export 5 Strength of legal rights index (0–12) Procedures (number) 7 6 1 Time (days) Documentary compliance (hours) 29 Depth of credit information index (0–8) 11.3 Border compliance (hours) 4 Cost (% of income per capita) 7.1 Credit bureau coverage (% of adults) Cost to export 0.0 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) Documentary compliance (US$) 90 171 Protecting minority investors (rank) Dealing with construction permits Border compliance (US$) 150 (rank) 110 52.36 50.00 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) Extent of disclosure index (0–10) 3 1 Procedures (number) 10 Documentary compliance (hours) 4 5 Extent of director liability index (0–10) Time (days) 183 Border compliance (hours) 9 Cost to import 11.7 Cost (% of warehouse value) Ease of shareholder suits index (0–10) Extent of shareholder rights index (0–10) 6 Documentary compliance (US$) 90 Building quality control index (0–15) 5.0 Border compliance (US$) 3 Extent of ownership and control index (0–10) 150 157 5 (rank) Extent of corporate transparency index (0–10) Getting electricity Enforcing contracts (rank) 95 Score for getting electricity (0–100) 52.38 Paying taxes (rank) 108 Score for enforcing contracts (0–100) 57.18 5 Procedures (number) 114 Score for paying taxes (0–100) 68.91 Time (days) Time (days) 615 Cost (% of income per capita) Payments (number per year) 32 Cost (% of claim value) 31.3 1,247.1 0 Time (hours per year) Quality of judicial processes index (0–18) 8.5 Reliability of supply and transparency of tariffs index (0–8) 327 Total tax and contribution rate (% of profit) 13.6 Resolving insolvency (rank) 126 Postfiling index (0–100) 66.94 (rank) Registering property 108 36.91 58.25 Score for registering property (0–100) Score for resolving insolvency (0–100) Procedures (number) 4 Time (years) 2.6 Cost (% of estate) 20.0 Time (days) 43 Recovery rate (cents on the dollar) Cost (% of property value) 8.0 27.9 Strength of insolvency framework index (0–16) Quality of land administration index (0–30) 9.5 7.0 GNI per capita (US$) 380 Sub-Saharan Africa LIBERIA Ease of doing business score (0–100) 43.51 Ease of doing business rank (1–190) Population 4,731,906 174 (rank) 80 Getting credit (rank) 112 Trading across borders (rank) 179 Starting a business Score for starting a business (0–100) 88.14 45.00 Score for trading across borders (0–100) 27.77 Score for getting credit (0–100) 5 Strength of legal rights index (0–12) Procedures (number) 9 Time to export 18 0 Documentary compliance (hours) 144 Time (days) Depth of credit information index (0–8) Credit bureau coverage (% of adults) 0.0 Cost (% of income per capita) 193 12.6 Border compliance (hours) Cost to export 0.0 Credit registry coverage (% of adults) 1.8 Minimum capital (% of income per capita) 155 Documentary compliance (US$) Dealing with construction permits (rank) Protecting minority investors (rank) 180 Border compliance (US$) 1,113 185 28.94 26.67 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 25 Extent of disclosure index (0–10) 4 Procedures (number) 144 Documentary compliance (hours) Time (days) 87 Extent of director liability index (0–10) 1 Border compliance (hours) 217 Cost (% of warehouse value) 38.1 Ease of shareholder suits index (0–10) 6 Cost to import Building quality control index (0–15) 2.0 3 Documentary compliance (US$) 230 Extent of shareholder rights index (0–10) 1 Border compliance (US$) Extent of ownership and control index (0–10) 1,013 172 (rank) Extent of corporate transparency index (0–10) Getting electricity 1 (rank) Enforcing contracts 175 35.06 Score for getting electricity (0–100) (rank) Procedures (number) Score for enforcing contracts (0–100) 35.23 4 Paying taxes 67 1,300 Time (days) 76.70 482 Time (days) Score for paying taxes (0–100) Payments (number per year) 33 Cost (% of claim value) 35.0 Cost (% of income per capita) 3,491.7 Time (hours per year) 7.5 Quality of judicial processes index (0–18) 0 Reliability of supply and transparency of tariffs index (0–8) 139.5 45.5 Total tax and contribution rate (% of profit) Registering property (rank) Postfiling index (0–100) 98.62 Resolving insolvency (rank) 111 182 31.09 Score for resolving insolvency (0–100) 40.50 Score for registering property (0–100) 10 Procedures (number) 3.0 Time (years) 44 Cost (% of estate) Time (days) 30.0 Recovery rate (cents on the dollar) Cost (% of property value) 13.8 17.2 Quality of land administration index (0–30) 3.5 Strength of insolvency framework index (0–16) 10.0 GNI per capita (US$) Middle East & North Africa 6,540 LIBYA Ease of doing business score (0–100) 33.44 Ease of doing business rank (1–190) 186 Population 6,374,616 (rank) 160 Starting a business (rank) 186 Trading across borders (rank) 128 Getting credit Score for starting a business (0–100) Score for getting credit (0–100) 0.00 Score for trading across borders (0–100) 64.66 73.56 10 0 Procedures (number) Strength of legal rights index (0–12) Time to export Time (days) Depth of credit information index (0–8) 0 Documentary compliance (hours) 72 35 Cost (% of income per capita) 23.0 Credit bureau coverage (% of adults) 0.0 Border compliance (hours) 72 Cost to export Minimum capital (% of income per capita) 0.6 26.6 Credit registry coverage (% of adults) 50 Dealing with construction permits Protecting minority investors (rank) 185 Border compliance (US$) 575 (rank) 186 Score for protecting minority investors (0–100) 25.00 Time to import Score for dealing with construction permits (0–100) 0.00 no practice 4 Documentary compliance (hours) 96 Procedures (number) Extent of disclosure index (0–10) no practice Extent of director liability index (0–10) 1 Border compliance (hours) 79 Time (days) no practice Cost (% of warehouse value) 4 Cost to import Ease of shareholder suits index (0–10) no practice 4 Documentary compliance (US$) 60 Building quality control index (0–15) Extent of shareholder rights index (0–10) 1 Border compliance (US$) 637 Extent of ownership and control index (0–10) 136 Extent of corporate transparency index (0–10) 1 (rank) Getting electricity Score for getting electricity (0–100) 59.13 Enforcing contracts (rank) 141 Procedures (number) 4 Paying taxes (rank) 128 Score for enforcing contracts (0–100) 48.41 Time (days) 118 63.61 Time (days) 690 Score for paying taxes (0–100) 270.8 27.0 19 Cost (% of claim value) Cost (% of income per capita) Payments (number per year) 0 Reliability of supply and transparency of tariffs index (0–8) 889 Quality of judicial processes index (0–18) 4.0 Time (hours per year) Total tax and contribution rate (% of profit) 32.6 Registering property (rank) 187 Postfiling index (0–100) 90.16 Resolving insolvency (rank) 168 Score for registering property (0–100) 0.00 0.00 Score for resolving insolvency (0–100) no practice Time (years) Procedures (number) no practice Time (days) no practice Cost (% of estate) no practice Cost (% of property value) no practice Recovery rate (cents on the dollar) 0.0 Quality of land administration index (0–30) no practice Strength of insolvency framework index (0–16) 0.0 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

192 185 COUNTRY TABLES Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 15,200 OECD high income LITHUANIA 80.83 Ease of doing business score (0–100) Ease of doing business rank (1–190) Population 14 2,827,721 (rank) 19 Starting a business Trading across borders (rank) Getting credit (rank) 31 44 ✔ 70.00 Score for trading across borders (0–100) 97.83 93.18 Score for starting a business (0–100) Score for getting credit (0–100) Time to export 6 Strength of legal rights index (0–12) Procedures (number) 4 8 3 Time (days) Documentary compliance (hours) 5.5 Depth of credit information index (0–8) 96.8 Border compliance (hours) 7 Cost (% of income per capita) 0.5 Credit bureau coverage (% of adults) Cost to export 51.6 Credit registry coverage (% of adults) 17.5 Minimum capital (% of income per capita) Documentary compliance (US$) 28 7 38 Protecting minority investors (rank) Dealing with construction permits Border compliance (US$) 58 (rank) ✔ 84.86 66.67 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) Extent of disclosure index (0–10) 7 1 Procedures (number) 13 Documentary compliance (hours) 4 0 Extent of director liability index (0–10) Time (days) 74 Border compliance (hours) 7 Cost to import 0.3 Cost (% of warehouse value) Ease of shareholder suits index (0–10) Extent of shareholder rights index (0–10) 6 Documentary compliance (US$) 0 Building quality control index (0–15) 13.0 Border compliance (US$) 6 Extent of ownership and control index (0–10) 0 26 10 (rank) Getting electricity Extent of corporate transparency index (0–10) Enforcing contracts (rank) 7 Score for getting electricity (0–100) 88.43 Paying taxes (rank) 18 Score for enforcing contracts (0–100) 78.80 Procedures (number) 4 ✔ 85 Score for paying taxes (0–100) 88.66 Time (days) 370 Time (days) Cost (% of income per capita) Payments (number per year) 10 Cost (% of claim value) 23.6 38.0 8 Time (hours per year) Quality of judicial processes index (0–18) 15.0 Reliability of supply and transparency of tariffs index (0–8) 99 Total tax and contribution rate (% of profit) 42.6 Postfiling index (0–100) 97.52 Resolving insolvency (rank) 85 (rank) Registering property 3 46.87 92.96 Score for registering property (0–100) Score for resolving insolvency (0–100) Procedures (number) 3 Time (years) 2.3 Cost (% of estate) 15.0 Time (days) 3.5 Recovery rate (cents on the dollar) Cost (% of property value) 0.8 40.6 Strength of insolvency framework index (0–16) Quality of land administration index (0–30) 28.5 8.0 GNI per capita (US$) 70,260 OECD high income LUXEMBOURG Ease of doing business score (0–100) 69.01 Ease of doing business rank (1–190) Population 599,449 66 (rank) 73 Getting credit (rank) 175 Trading across borders (rank) 1 Starting a business Score for starting a business (0–100) 88.73 15.00 Score for trading across borders (0–100) 100.00 Score for getting credit (0–100) 5 Strength of legal rights index (0–12) Procedures (number) 3 Time to export 16.5 0 Documentary compliance (hours) 1 Time (days) Depth of credit information index (0–8) Credit bureau coverage (% of adults) 0.0 Cost (% of income per capita) 0 1.7 Border compliance (hours) Cost to export 18.5 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) 0 Documentary compliance (US$) Dealing with construction permits (rank) Protecting minority investors (rank) 122 Border compliance (US$) 0 12 83.71 48.33 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 11 Extent of disclosure index (0–10) 6 Procedures (number) 1 Documentary compliance (hours) Time (days) 157 Extent of director liability index (0–10) 5 Border compliance (hours) 0 Cost (% of warehouse value) 0.7 Ease of shareholder suits index (0–10) 4 Cost to import Building quality control index (0–15) 15.0 Documentary compliance (US$) 0 Extent of shareholder rights index (0–10) 5 Border compliance (US$) 2 0 Extent of ownership and control index (0–10) Extent of corporate transparency index (0–10) Getting electricity (rank) 7 41 (rank) 15 Score for getting electricity (0–100) 84.30 Enforcing contracts (rank) 22 Score for enforcing contracts (0–100) 73.32 Paying taxes Procedures (number) 5 Score for paying taxes (0–100) 87.37 Time (days) 321 Time (days) 56 Cost (% of income per capita) 23 Cost (% of claim value) 9.7 35.3 Payments (number per year) Time (hours per year) Quality of judicial processes index (0–18) 8.5 7 55 Reliability of supply and transparency of tariffs index (0–8) Total tax and contribution rate (% of profit) 20.5 92 Postfiling index (0–100) Registering property Resolving insolvency (rank) 90 (rank) 83.75 63.85 Score for resolving insolvency (0–100) 45.46 Score for registering property (0–100) 7 Time (years) 2.0 Procedures (number) 26.5 Time (days) Cost (% of estate) 14.5 Recovery rate (cents on the dollar) Cost (% of property value) 10.1 43.8 Quality of land administration index (0–30) 25.5 Strength of insolvency framework index (0–16) 7.0 GNI per capita (US$) Europe & Central Asia 4,880 MACEDONIA, FYR Ease of doing business score (0–100) 81.55 Ease of doing business rank (1–190) 10 Population 2,083,160 (rank) 47 Getting credit (rank) 12 Trading across borders (rank) 29 Starting a business 92.08 Score for starting a business (0–100) Score for trading across borders (0–100) 93.87 Score for getting credit (0–100) 85.00 Strength of legal rights index (0–12) 10 Procedures (number) 4 Time to export 14 Depth of credit information index (0–8) 7 Documentary compliance (hours) 2 Time (days) 0.9 Credit bureau coverage (% of adults) 100.0 Border compliance (hours) 9 Cost (% of income per capita) Cost to export 0.0 Credit registry coverage (% of adults) 40.7 Minimum capital (% of income per capita) Documentary compliance (US$) 45 Dealing with construction permits (rank) Protecting minority investors (rank) 7 Border compliance (US$) 103 13 ✔ 83.38 Score for dealing with construction permits (0–100) Time to import 80.00 Score for protecting minority investors (0–100) 9 10 Documentary compliance (hours) 3 Procedures (number) Extent of disclosure index (0–10) 91 Extent of director liability index (0–10) 9 Border compliance (hours) 8 Time (days) 3.7 Cost (% of warehouse value) 5 Cost to import Ease of shareholder suits index (0–10) 13.0 8 Documentary compliance (US$) 50 Building quality control index (0–15) Extent of shareholder rights index (0–10) 7 Border compliance (US$) 150 Extent of ownership and control index (0–10) Getting electricity 57 Extent of corporate transparency index (0–10) 9 (rank) Score for getting electricity (0–100) 81.43 Enforcing contracts (rank) 37 Procedures (number) 3 Paying taxes (rank) 31 Score for enforcing contracts (0–100) 67.79 Time (days) 97 84.72 Time (days) 634 Score for paying taxes (0–100) 196.1 28.8 7 Cost (% of claim value) Cost (% of income per capita) Payments (number per year) 5 Reliability of supply and transparency of tariffs index (0–8) 119 Quality of judicial processes index (0–18) 14.0 Time (hours per year) Total tax and contribution rate (% of profit) 13.0 Registering property (rank) 46 Postfiling index (0–100) 56.36 Resolving insolvency (rank) 30 Score for registering property (0–100) 74.50 72.69 Score for resolving insolvency (0–100) 7 Time (years) Procedures (number) 1.5 Time (days) 30 Cost (% of estate) 10.0 Cost (% of property value) 3.2 Recovery rate (cents on the dollar) 48.0 Quality of land administration index (0–30) 25.0 Strength of insolvency framework index (0–16) 15.0 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

193 DOING BUSINESS 2019 186 Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 400 Sub-Saharan Africa MADAGASCAR Ease of doing business score (0–100) 48.89 161 Population 25,570,895 Ease of doing business rank (1–190) Starting a business (rank) 124 Trading across borders (rank) 81 (rank) 138 Getting credit ✔ 40.00 Score for trading across borders (0–100) 60.95 Score for getting credit (0–100) 88.10 Score for starting a business (0–100) Time to export 5 Strength of legal rights index (0–12) Procedures (number) 2 Depth of credit information index (0–8) Documentary compliance (hours) 49 Time (days) 8 6 0.0 70 Credit bureau coverage (% of adults) Border compliance (hours) Cost (% of income per capita) 33.0 Cost to export 0.0 Credit registry coverage (% of adults) Minimum capital (% of income per capita) 6.3 117 Documentary compliance (US$) (rank) 183 Protecting minority investors (rank) Dealing with construction permits Border compliance (US$) 868 99 ✔ Score for protecting minority investors (0–100) 51.67 Time to import Score for dealing with construction permits (0–100) 37.54 Extent of disclosure index (0–10) 7 58 Procedures (number) 16 Documentary compliance (hours) 6 99 Extent of director liability index (0–10) Time (days) 185 Border compliance (hours) 5 Cost to import 36.3 Cost (% of warehouse value) Ease of shareholder suits index (0–10) Extent of shareholder rights index (0–10) 4 Documentary compliance (US$) 150 Building quality control index (0–15) 6.0 Border compliance (US$) 5 Extent of ownership and control index (0–10) 595 185 4 Getting electricity (rank) Extent of corporate transparency index (0–10) (rank) Enforcing contracts Score for getting electricity (0–100) 150 22.48 ✔ 6 Paying taxes (rank) 132 Score for enforcing contracts (0–100) 46.55 Procedures (number) 450 Score for paying taxes (0–100) 62.62 Time (days) 871 Time (days) Cost (% of income per capita) Payments (number per year) 23 Cost (% of claim value) 33.6 4,866.9 0 Time (hours per year) Quality of judicial processes index (0–18) 7.0 Reliability of supply and transparency of tariffs index (0–8) 183 Total tax and contribution rate (% of profit) 38.3 Postfiling index (0–100) 21.84 Resolving insolvency (rank) 136 (rank) Registering property 162 34.24 44.72 Score for registering property (0–100) Score for resolving insolvency (0–100) Procedures (number) 6 Time (years) 3.0 Cost (% of estate) 8.5 Time (days) 100 Recovery rate (cents on the dollar) Cost (% of property value) 9.1 11.4 Strength of insolvency framework index (0–16) Quality of land administration index (0–30) 8.5 9.0 GNI per capita (US$) 320 Sub-Saharan Africa MALAWI Ease of doing business score (0–100) 59.59 Ease of doing business rank (1–190) Population 18,622,104 111 (rank) 153 Getting credit (rank) 8 Trading across borders (rank) 126 Starting a business Score for starting a business (0–100) 77.18 90.00 Score for trading across borders (0–100) 65.29 Score for getting credit (0–100) 7 Strength of legal rights index (0–12) Procedures (number) 11 Time to export 37 7 Documentary compliance (hours) 75 Time (days) Depth of credit information index (0–8) Credit bureau coverage (% of adults) 30.0 Cost (% of income per capita) 78 38.6 Border compliance (hours) Cost to export 0.0 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) 342 Documentary compliance (US$) Dealing with construction permits (rank) Protecting minority investors (rank) 110 Border compliance (US$) 243 136 61.17 50.00 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 13 Extent of disclosure index (0–10) 4 Procedures (number) 55 Documentary compliance (hours) Time (days) 153 Extent of director liability index (0–10) 7 Border compliance (hours) 55 Cost (% of warehouse value) 10.0 Ease of shareholder suits index (0–10) 7 Cost to import Building quality control index (0–15) 9.5 Documentary compliance (US$) 162 Extent of shareholder rights index (0–10) 6 Border compliance (US$) 143 2 Extent of ownership and control index (0–10) Extent of corporate transparency index (0–10) (rank) Getting electricity 169 4 Enforcing contracts (rank) Score for getting electricity (0–100) 44.40 145 ✔ Paying taxes (rank) 134 Score for enforcing contracts (0–100) 47.40 Procedures (number) 6 Score for paying taxes (0–100) 62.05 Time (days) 522 127 Time (days) Cost (% of income per capita) 35 Cost (% of claim value) 69.1 2,026.3 Payments (number per year) Time (hours per year) Quality of judicial processes index (0–18) 9.5 Reliability of supply and transparency of tariffs index (0–8) 0 177.3 Total tax and contribution rate (% of profit) 34.5 (rank) 83 Registering property 33.18 Resolving insolvency (rank) 141 Postfiling index (0–100) ✔ Score for registering property (0–100) 65.12 Score for resolving insolvency (0–100) 33.28 6 Time (years) 2.6 Procedures (number) 47 Time (days) Cost (% of estate) 25.0 Recovery rate (cents on the dollar) 12.5 1.6 Cost (% of property value) 8.5 Quality of land administration index (0–30) Strength of insolvency framework index (0–16) 10.5 GNI per capita (US$) 9,650 East Asia & Pacific MALAYSIA Ease of doing business score (0–100) 80.60 Population 15 Ease of doing business rank (1–190) 31,624,264 122 Getting credit (rank) 32 Starting a business Trading across borders (rank) 48 (rank) ✔ ✔ 82.78 Score for starting a business (0–100) Score for trading across borders (0–100) 88.47 Score for getting credit (0–100) 75.00 Strength of legal rights index (0–12) 7 Procedures (number) 9.5 Time to export 13.5 Depth of credit information index (0–8) 8 Documentary compliance (hours) 10 Time (days) 11.6 Credit bureau coverage (% of adults) 86.6 Border compliance (hours) 28 Cost (% of income per capita) Cost to export 0.0 Credit registry coverage (% of adults) 63.3 Minimum capital (% of income per capita) Documentary compliance (US$) 35 Dealing with construction permits (rank) Protecting minority investors (rank) 2 Border compliance (US$) 213 3 ✔ 86.96 81.67 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) Extent of disclosure index (0–10) 10 Documentary compliance (hours) Procedures (number) 11 7 54 Extent of director liability index (0–10) 9 Border compliance (hours) 36 Time (days) Cost (% of warehouse value) Ease of shareholder suits index (0–10) 8 Cost to import 1.4 Building quality control index (0–15) Extent of shareholder rights index (0–10) 8 Documentary compliance (US$) 60 13.0 6 213 Extent of ownership and control index (0–10) Border compliance (US$) Getting electricity (rank) 4 8 Extent of corporate transparency index (0–10) ✔ Score for getting electricity (0–100) 99.27 Enforcing contracts (rank) 33 Procedures (number) 3 Paying taxes (rank) 72 Score for enforcing contracts (0–100) 68.23 Time (days) 24 76.06 Time (days) 425 Score for paying taxes (0–100) 26.0 37.9 8 Cost (% of claim value) Cost (% of income per capita) Payments (number per year) 8 Reliability of supply and transparency of tariffs index (0–8) 188 Quality of judicial processes index (0–18) 13.0 Time (hours per year) Total tax and contribution rate (% of profit) 39.2 41 Registering property (rank) 29 Postfiling index (0–100) 52.65 (rank) Resolving insolvency ✔ ✔ Score for registering property (0–100) 80.38 Score for resolving insolvency (0–100) 67.17 Procedures (number) 6 Time (years) 1.0 Time (days) 11.5 Cost (% of estate) 10.0 Cost (% of property value) Recovery rate (cents on the dollar) 81.3 3.5 Quality of land administration index (0–30) 27.5 Strength of insolvency framework index (0–16) 7.5 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

194 187 COUNTRY TABLES Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 9,570 South Asia MALDIVES 54.43 Ease of doing business score (0–100) Ease of doing business rank (1–190) Population 139 436,330 (rank) 155 Trading across borders (rank) Getting credit Starting a business (rank) 134 71 Score for trading across borders (0–100) 55.87 35.00 89.17 Score for starting a business (0–100) Score for getting credit (0–100) Time to export 2 Strength of legal rights index (0–12) Procedures (number) 6 5 48 Time (days) Documentary compliance (hours) 12 Depth of credit information index (0–8) 0.0 Border compliance (hours) 42 Cost (% of income per capita) 4.0 Credit bureau coverage (% of adults) Cost to export 23.6 Credit registry coverage (% of adults) 1.3 Minimum capital (% of income per capita) Documentary compliance (US$) 300 62 Protecting minority investors (rank) 132 Dealing with construction permits 596 (rank) Border compliance (US$) 73.00 43.33 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) Extent of disclosure index (0–10) 0 61 Procedures (number) 10 Documentary compliance (hours) 8 100 Extent of director liability index (0–10) Time (days) 140 Border compliance (hours) 8 Cost to import 0.4 Cost (% of warehouse value) Ease of shareholder suits index (0–10) Extent of shareholder rights index (0–10) 5 Documentary compliance (US$) 180 Building quality control index (0–15) 7.0 Border compliance (US$) 1 Extent of ownership and control index (0–10) 981 145 4 (rank) Extent of corporate transparency index (0–10) Getting electricity Enforcing contracts (rank) 125 Score for getting electricity (0–100) 55.60 Paying taxes (rank) 117 Score for enforcing contracts (0–100) 52.47 6 Procedures (number) 75 Score for paying taxes (0–100) 66.42 Time (days) 760 Time (days) 228.1 Cost (% of income per capita) 17 Cost (% of claim value) 18.5 Payments (number per year) 0 Time (hours per year) Quality of judicial processes index (0–18) 5.5 Reliability of supply and transparency of tariffs index (0–8) 390.5 Total tax and contribution rate (% of profit) 30.2 (rank) 139 Resolving insolvency Registering property Postfiling index (0–100) (rank) 47.48 175 33.48 39.97 Score for registering property (0–100) Score for resolving insolvency (0–100) Procedures (number) 6 Time (years) 1.5 Cost (% of estate) 4.0 Time (days) 57 Recovery rate (cents on the dollar) Cost (% of property value) 15.7 50.6 Strength of insolvency framework index (0–16) Quality of land administration index (0–30) 8.5 2.0 GNI per capita (US$) 770 Sub-Saharan Africa MALI Ease of doing business score (0–100) 53.50 Ease of doing business rank (1–190) Population 18,541,980 145 (rank) 110 Getting credit (rank) 144 Trading across borders (rank) 92 Starting a business Score for starting a business (0–100) 84.05 30.00 Score for trading across borders (0–100) 73.30 Score for getting credit (0–100) 5 Strength of legal rights index (0–12) Procedures (number) 6 Time to export 11 0 Documentary compliance (hours) 48 Time (days) Depth of credit information index (0–8) Credit bureau coverage (% of adults) 1.6 Cost (% of income per capita) 48 56.8 Border compliance (hours) Cost to export 5.3 Credit registry coverage (% of adults) 0.1 Minimum capital (% of income per capita) 33 Documentary compliance (US$) Dealing with construction permits (rank) Protecting minority investors (rank) 149 Border compliance (US$) 242 109 66.74 40.00 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 13 Extent of disclosure index (0–10) 7 Procedures (number) 77 Documentary compliance (hours) Time (days) 124 Extent of director liability index (0–10) 1 Border compliance (hours) 98 Cost (% of warehouse value) 5.9 Ease of shareholder suits index (0–10) 5 Cost to import Building quality control index (0–15) 8.5 Documentary compliance (US$) 90 Extent of shareholder rights index (0–10) 4 Border compliance (US$) 3 545 Extent of ownership and control index (0–10) Extent of corporate transparency index (0–10) (rank) Getting electricity 159 4 Enforcing contracts (rank) Score for getting electricity (0–100) 51.57 159 ✔ Paying taxes (rank) 165 Score for enforcing contracts (0–100) 42.80 Procedures (number) 4 620 Time (days) 51.55 120 Time (days) Score for paying taxes (0–100) Payments (number per year) 35 Cost (% of claim value) 52.0 Cost (% of income per capita) 2,650.5 Time (hours per year) Quality of judicial processes index (0–18) 5.0 0 Reliability of supply and transparency of tariffs index (0–8) 270 Total tax and contribution rate (% of profit) 48.3 141 25.71 (rank) Resolving insolvency (rank) 97 Postfiling index (0–100) Registering property Score for resolving insolvency (0–100) 43.45 51.51 Score for registering property (0–100) 5 Time (years) 3.6 Procedures (number) 29 Time (days) Cost (% of estate) 18.0 Recovery rate (cents on the dollar) Cost (% of property value) 11.1 28.5 Quality of land administration index (0–30) 8.0 Strength of insolvency framework index (0–16) 9.0 GNI per capita (US$) Middle East & North Africa 23,810 MALTA Ease of doing business score (0–100) 65.43 Ease of doing business rank (1–190) 84 Population 465,292 (rank) 103 Getting credit (rank) 134 Trading across borders (rank) 41 Starting a business 84.86 Score for starting a business (0–100) Score for trading across borders (0–100) 91.01 Score for getting credit (0–100) 35.00 Strength of legal rights index (0–12) 2 Procedures (number) 8 Time to export 16 Depth of credit information index (0–8) 5 Documentary compliance (hours) 3 Time (days) 7.1 Credit bureau coverage (% of adults) 0.0 Border compliance (hours) 24 Cost (% of income per capita) Cost to export 1.0 Credit registry coverage (% of adults) 54.7 Minimum capital (% of income per capita) Documentary compliance (US$) 25 Dealing with construction permits (rank) Protecting minority investors (rank) 57 Border compliance (US$) 325 45 ✔ 74.75 Score for dealing with construction permits (0–100) Time to import 61.67 Score for protecting minority investors (0–100) 14 3 Documentary compliance (hours) 1 Procedures (number) Extent of disclosure index (0–10) 170 Extent of director liability index (0–10) 6 Border compliance (hours) 2 Time (days) 2.0 Cost (% of warehouse value) 8 Cost to import Ease of shareholder suits index (0–10) 13.0 7 Documentary compliance (US$) 0 Building quality control index (0–15) Extent of shareholder rights index (0–10) 4 Border compliance (US$) 230 Extent of ownership and control index (0–10) Getting electricity 77 Extent of corporate transparency index (0–10) 9 (rank) Score for getting electricity (0–100) 76.34 Enforcing contracts (rank) 39 Procedures (number) 4 Paying taxes (rank) 71 Score for enforcing contracts (0–100) 67.57 Time (days) 105 76.18 Time (days) 505 Score for paying taxes (0–100) 213.8 21.5 8 Cost (% of claim value) Cost (% of income per capita) Payments (number per year) 5 Reliability of supply and transparency of tariffs index (0–8) 139 Quality of judicial processes index (0–18) 10.5 Time (hours per year) Total tax and contribution rate (% of profit) 44.0 Registering property (rank) 151 Postfiling index (0–100) 52.51 Resolving insolvency (rank) 121 Score for registering property (0–100) 48.87 38.07 Score for resolving insolvency (0–100) 7 Time (years) Procedures (number) 3.0 Time (days) 15 Cost (% of estate) 10.0 Cost (% of property value) 13.4 Recovery rate (cents on the dollar) 38.8 Quality of land administration index (0–30) 12.5 Strength of insolvency framework index (0–16) 5.5 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

195 DOING BUSINESS 2019 188 Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 4,800 East Asia & Pacific MARSHALL ISLANDS Ease of doing business score (0–100) 51.62 Population Ease of doing business rank (1–190) 150 53,127 Starting a business 99 Trading across borders (rank) 75 (rank) 75 Getting credit (rank) Score for trading across borders (0–100) 78.86 50.00 Score for getting credit (0–100) 88.64 Score for starting a business (0–100) Time to export 10 Strength of legal rights index (0–12) Procedures (number) 5 0 24 Time (days) Documentary compliance (hours) 17 Depth of credit information index (0–8) 0.0 Border compliance (hours) 60 Cost (% of income per capita) 10.6 Credit bureau coverage (% of adults) Cost to export 0.0 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) Documentary compliance (US$) 20 73 Protecting minority investors (rank) 180 Border compliance (US$) 298 Dealing with construction permits (rank) Score for protecting minority investors (0–100) 71.23 Time to import Score for dealing with construction permits (0–100) 26.67 Extent of disclosure index (0–10) Procedures (number) 60 2 7 Documentary compliance (hours) 0 84 Extent of director liability index (0–10) Border compliance (hours) Time (days) 38 8 Cost to import Cost (% of warehouse value) 2.1 Ease of shareholder suits index (0–10) 3 Documentary compliance (US$) 43 Extent of shareholder rights index (0–10) 1.0 Building quality control index (0–15) Border compliance (US$) 298 Extent of ownership and control index (0–10) 1 132 Getting electricity 2 (rank) Extent of corporate transparency index (0–10) Enforcing contracts 103 Score for getting electricity (0–100) 59.47 (rank) (rank) Paying taxes Procedures (number) 70 5 55.93 Score for enforcing contracts (0–100) ✘ Time (days) 67 Score for paying taxes (0–100) 76.21 Time (days) 616 Cost (% of income per capita) Payments (number per year) 9 Cost (% of claim value) 32.1 606.2 Reliability of supply and transparency of tariffs index (0–8) Time (hours per year) 56 Quality of judicial processes index (0–18) 8.0 0 65.7 Total tax and contribution rate (% of profit) Resolving insolvency (rank) 167 Registering property 187 Postfiling index (0–100) not applicable (rank) Score for resolving insolvency (0–100) 9.19 Score for registering property (0–100) 0.00 2.0 Procedures (number) no practice Time (years) 38.0 no practice Time (days) Cost (% of estate) 17.1 Recovery rate (cents on the dollar) Cost (% of property value) no practice Strength of insolvency framework index (0–16) 0.0 Quality of land administration index (0–30) no practice Sub-Saharan Africa GNI per capita (US$) 1,100 MAURITANIA 51.99 Ease of doing business score (0–100) 148 Population 4,420,184 Ease of doing business rank (1–190) (rank) 46 Starting a business Getting credit (rank) 144 Trading across borders (rank) 141 ✔ ✔ 92.18 Score for getting credit (0–100) Score for starting a business (0–100) Score for trading across borders (0–100) 60.30 30.00 Procedures (number) Strength of legal rights index (0–12) 2 Time to export 4 6 Depth of credit information index (0–8) Documentary compliance (hours) 51 Time (days) 4 Credit bureau coverage (% of adults) 62 Border compliance (hours) 16.2 Cost (% of income per capita) 0.0 Cost to export 0.0 7.8 Minimum capital (% of income per capita) Credit registry coverage (% of adults) Documentary compliance (US$) 92 Dealing with construction permits (rank) 92 749 (rank) 110 Border compliance (US$) Protecting minority investors ✔ 68.63 50.00 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 13 Extent of disclosure index (0–10) 6 Procedures (number) 64 Documentary compliance (hours) Time (days) 104 Extent of director liability index (0–10) 3 Border compliance (hours) 69 Cost (% of warehouse value) 4.2 Ease of shareholder suits index (0–10) 7 Cost to import Building quality control index (0–15) 7.5 Documentary compliance (US$) 400 Extent of shareholder rights index (0–10) 5 Border compliance (US$) 580 5 Extent of ownership and control index (0–10) Extent of corporate transparency index (0–10) Getting electricity (rank) 4 151 (rank) 72 Score for getting electricity (0–100) 54.39 Enforcing contracts (rank) 178 Score for enforcing contracts (0–100) 60.43 Paying taxes Procedures (number) 5 Score for paying taxes (0–100) 42.63 Time (days) 370 67 Time (days) Cost (% of income per capita) 33 Cost (% of claim value) 23.2 4,277.4 Payments (number per year) Time (hours per year) Quality of judicial processes index (0–18) 5.0 2 270 Reliability of supply and transparency of tariffs index (0–8) Total tax and contribution rate (% of profit) 67.0 102 Postfiling index (0–100) Registering property Resolving insolvency (rank) 168 (rank) 17.20 61.32 Score for resolving insolvency (0–100) 0.00 Score for registering property (0–100) 4 Time (years) no practice Procedures (number) 49 Time (days) Cost (% of estate) no practice Recovery rate (cents on the dollar) 0.0 4.5 Cost (% of property value) 0.0 Quality of land administration index (0–30) Strength of insolvency framework index (0–16) 7.0 GNI per capita (US$) 10,140 Sub-Saharan Africa MAURITIUS Ease of doing business score (0–100) 79.58 Population 20 Ease of doing business rank (1–190) 1,264,613 21 Getting credit (rank) 60 Starting a business Trading across borders (rank) 69 (rank) ✔ ✔ 94.34 Score for starting a business (0–100) Score for trading across borders (0–100) 81.00 Score for getting credit (0–100) 65.00 Strength of legal rights index (0–12) 6 Procedures (number) 4 Time to export 5 Depth of credit information index (0–8) 7 Documentary compliance (hours) 9 Time (days) 0.9 Credit bureau coverage (% of adults) 0.0 Border compliance (hours) 24 Cost (% of income per capita) Cost to export 0.0 Credit registry coverage (% of adults) 100.0 Minimum capital (% of income per capita) Documentary compliance (US$) 128 (rank) 15 Protecting minority investors (rank) 15 Border compliance (US$) 303 Dealing with construction permits ✔ 82.51 75.00 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 15 7 Documentary compliance (hours) 9 Procedures (number) Extent of disclosure index (0–10) 98 Extent of director liability index (0–10) 8 Border compliance (hours) 41 Time (days) 0.5 Cost (% of warehouse value) 9 Cost to import Ease of shareholder suits index (0–10) 14.0 7 Documentary compliance (US$) 166 Building quality control index (0–15) Extent of shareholder rights index (0–10) 6 Border compliance (US$) 372 Extent of ownership and control index (0–10) Getting electricity 34 Extent of corporate transparency index (0–10) 8 (rank) Score for getting electricity (0–100) 86.24 Enforcing contracts (rank) 27 Procedures (number) 3 70.37 Paying taxes (rank) 6 Score for enforcing contracts (0–100) ✔ Time (days) Score for paying taxes (0–100) 93.50 Time (days) 490 81 212.9 Cost (% of claim value) 8 Cost (% of income per capita) 25.0 Payments (number per year) 6 Reliability of supply and transparency of tariffs index (0–8) 152 Quality of judicial processes index (0–18) 12.5 Time (hours per year) Total tax and contribution rate (% of profit) 22.1 35 Registering property (rank) 35 Postfiling index (0–100) 98.26 Resolving insolvency (rank) ✔ Score for registering property (0–100) Score for resolving insolvency (0–100) 69.06 78.74 5 Procedures (number) 1.7 Time (years) Time (days) 17 Cost (% of estate) 14.5 Cost (% of property value) 0.6 Recovery rate (cents on the dollar) 67.4 Quality of land administration index (0–30) 18.0 Strength of insolvency framework index (0–16) 10.5 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

196 189 COUNTRY TABLES Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 8,610 Latin America & Caribbean MEXICO Ease of doing business score (0–100) 72.09 Population Ease of doing business rank (1–190) 129,163,276 54 Starting a business 8 Trading across borders (rank) 66 (rank) 94 Getting credit (rank) Score for trading across borders (0–100) 82.09 90.00 Score for getting credit (0–100) 85.94 Score for starting a business (0–100) Time to export 10 Strength of legal rights index (0–12) Procedures (number) 7.8 8 8 Time (days) Documentary compliance (hours) 8.4 Depth of credit information index (0–8) 100.0 Border compliance (hours) 20.4 Cost (% of income per capita) 16.2 Credit bureau coverage (% of adults) Cost to export 0.0 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) Documentary compliance (US$) 60 (rank) 93 Protecting minority investors (rank) Dealing with construction permits Border compliance (US$) 400 72 ✘ Score for protecting minority investors (0–100) 58.33 Time to import Score for dealing with construction permits (0–100) 68.62 Extent of disclosure index (0–10) 8 17.6 Procedures (number) 14.7 Documentary compliance (hours) 5 44.2 Extent of director liability index (0–10) Time (days) 82.1 Border compliance (hours) 5 Cost to import 9.7 Cost (% of warehouse value) Ease of shareholder suits index (0–10) Extent of shareholder rights index (0–10) 7 Documentary compliance (US$) 100 Building quality control index (0–15) 11.7 Border compliance (US$) 6 Extent of ownership and control index (0–10) 450 99 4 (rank) Extent of corporate transparency index (0–10) Getting electricity Enforcing contracts (rank) 43 Score for getting electricity (0–100) 71.06 Paying taxes (rank) 116 Score for enforcing contracts (0–100) 67.01 6.8 Procedures (number) 100.4 Score for paying taxes (0–100) 66.65 Time (days) Time (days) 340.7 Cost (% of income per capita) Payments (number per year) 6 Cost (% of claim value) 33.0 290.4 7 Time (hours per year) Quality of judicial processes index (0–18) 10.1 Reliability of supply and transparency of tariffs index (0–8) 240.5 Total tax and contribution rate (% of profit) 53.0 Resolving insolvency (rank) 32 Postfiling index (0–100) 40.51 (rank) Registering property 103 70.77 60.42 Score for registering property (0–100) Score for resolving insolvency (0–100) Procedures (number) 7.7 Time (years) 1.8 Cost (% of estate) 18.0 Time (days) 38.8 Recovery rate (cents on the dollar) Cost (% of property value) 5.8 64.7 Strength of insolvency framework index (0–16) Quality of land administration index (0–30) 16.3 11.5 GNI per capita (US$) 3,590 East Asia & Pacific MICRONESIA, FED. STS. Ease of doing business score (0–100) 48.99 Ease of doing business rank (1–190) Population 105,544 160 (rank) 170 Getting credit (rank) 99 Trading across borders (rank) 61 Starting a business Score for starting a business (0–100) 69.56 50.00 Score for trading across borders (0–100) 84.00 Score for getting credit (0–100) 7 Strength of legal rights index (0–12) Procedures (number) 10 Time to export 16 0 Documentary compliance (hours) 26 Time (days) Depth of credit information index (0–8) Credit bureau coverage (% of adults) 0.0 Cost (% of income per capita) 36 141.7 Border compliance (hours) Cost to export 0.0 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) 60 Documentary compliance (US$) Dealing with construction permits (rank) Protecting minority investors (rank) 185 Border compliance (US$) 168 137 61.05 25.00 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 14 Extent of disclosure index (0–10) 0 Procedures (number) 35 Documentary compliance (hours) Time (days) 86 Extent of director liability index (0–10) 0 Border compliance (hours) 56 Cost (% of warehouse value) 0.5 Ease of shareholder suits index (0–10) 8 Cost to import Building quality control index (0–15) 0.0 Documentary compliance (US$) 80 Extent of shareholder rights index (0–10) 5 Border compliance (US$) 2 180 Extent of ownership and control index (0–10) Extent of corporate transparency index (0–10) Getting electricity (rank) 0 117 (rank) 184 Score for getting electricity (0–100) 64.49 Enforcing contracts (rank) 110 Score for enforcing contracts (0–100) 29.39 Paying taxes Procedures (number) 3 885 Time (days) 68.78 105 Time (days) Score for paying taxes (0–100) Payments (number per year) 21 Cost (% of claim value) 66.0 Cost (% of income per capita) 342.9 Time (hours per year) Quality of judicial processes index (0–18) 4.5 0 Reliability of supply and transparency of tariffs index (0–8) 128 Total tax and contribution rate (% of profit) 60.5 187 not applicable (rank) Resolving insolvency (rank) 123 Postfiling index (0–100) Registering property Score for resolving insolvency (0–100) 37.64 0.00 Score for registering property (0–100) no practice Time (years) 5.3 Procedures (number) no practice Cost (% of estate) Time (days) 38.0 Recovery rate (cents on the dollar) Cost (% of property value) no practice 3.2 Quality of land administration index (0–30) no practice Strength of insolvency framework index (0–16) 11.5 GNI per capita (US$) Europe & Central Asia 2,180 MOLDOVA Ease of doing business score (0–100) 73.54 Ease of doing business rank (1–190) 47 Population 3,549,750 Starting a business (rank) 14 Getting credit (rank) 44 Trading across borders (rank) 35 ✔ Score for starting a business (0–100) 70.00 Score for trading across borders (0–100) 92.32 95.55 Score for getting credit (0–100) Strength of legal rights index (0–12) 8 Procedures (number) 3 Time to export 4 Depth of credit information index (0–8) 6 Documentary compliance (hours) 48 Time (days) 5.0 Credit bureau coverage (% of adults) 15.8 Border compliance (hours) 3 Cost (% of income per capita) Cost to export 0.0 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) Documentary compliance (US$) 44 (rank) 172 (rank) 33 Border compliance (US$) 76 Dealing with construction permits Protecting minority investors Score for protecting minority investors (0–100) Time to import 52.19 68.33 Score for dealing with construction permits (0–100) Extent of disclosure index (0–10) 7 Documentary compliance (hours) Procedures (number) 28 2 276 Extent of director liability index (0–10) 4 Border compliance (hours) 4 Time (days) Cost (% of warehouse value) Ease of shareholder suits index (0–10) 8 Cost to import 1.4 Building quality control index (0–15) Extent of shareholder rights index (0–10) 8 Documentary compliance (US$) 41 12.0 5 83 Extent of ownership and control index (0–10) Border compliance (US$) (rank) 81 Extent of corporate transparency index (0–10) Getting electricity 9 Score for getting electricity (0–100) 74.88 Enforcing contracts (rank) 69 Procedures (number) 6 Paying taxes (rank) 35 Score for enforcing contracts (0–100) 60.87 Time (days) 87 84.55 Time (days) 585 Score for paying taxes (0–100) 647.1 28.6 10 Cost (% of claim value) Cost (% of income per capita) Payments (number per year) 7 Reliability of supply and transparency of tariffs index (0–8) 181 Quality of judicial processes index (0–18) 9.5 Time (hours per year) Total tax and contribution rate (% of profit) 40.5 Registering property (rank) 22 Postfiling index (0–100) 90.79 Resolving insolvency (rank) 68 Score for registering property (0–100) 82.62 54.12 Score for resolving insolvency (0–100) 5 Time (years) Procedures (number) 2.8 Time (days) 5.5 Cost (% of estate) 15.0 Cost (% of property value) 1.1 Recovery rate (cents on the dollar) 30.9 Quality of land administration index (0–30) 22.0 Strength of insolvency framework index (0–16) 12.0 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

197 DOING BUSINESS 2019 190 Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 3,290 East Asia & Pacific MONGOLIA 67.74 Ease of doing business score (0–100) Ease of doing business rank (1–190) Population 74 3,075,647 (rank) 117 Trading across borders (rank) Getting credit Starting a business (rank) 22 87 Score for trading across borders (0–100) 66.89 80.00 86.90 Score for starting a business (0–100) Score for getting credit (0–100) Time to export 9 Strength of legal rights index (0–12) Procedures (number) 8 7 168 Time (days) Documentary compliance (hours) 11 Depth of credit information index (0–8) 0.0 Border compliance (hours) 62 Cost (% of income per capita) 1.3 Credit bureau coverage (% of adults) Cost to export 50.3 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) Documentary compliance (US$) 64 23 Protecting minority investors (rank) 33 Dealing with construction permits 191 (rank) Border compliance (US$) 78.19 68.33 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) Extent of disclosure index (0–10) 6 115 Procedures (number) 17 Documentary compliance (hours) 8 48 Extent of director liability index (0–10) Time (days) 137 Border compliance (hours) 8 Cost to import 0.1 Cost (% of warehouse value) Ease of shareholder suits index (0–10) Extent of shareholder rights index (0–10) 3 Documentary compliance (US$) 83 Building quality control index (0–15) 14.0 Border compliance (US$) 7 Extent of ownership and control index (0–10) 210 148 9 Getting electricity (rank) Extent of corporate transparency index (0–10) (rank) Enforcing contracts Score for getting electricity (0–100) 66 54.88 ✔ 8 Paying taxes (rank) 61 Score for enforcing contracts (0–100) 61.36 Procedures (number) 79 Score for paying taxes (0–100) 77.32 Time (days) Time (days) 374 Cost (% of income per capita) Payments (number per year) 19 Cost (% of claim value) 22.9 659.6 3 Time (hours per year) Quality of judicial processes index (0–18) 5.5 Reliability of supply and transparency of tariffs index (0–8) 134 Total tax and contribution rate (% of profit) 24.7 Resolving insolvency (rank) 152 Postfiling index (0–100) 49.08 (rank) Registering property 49 29.39 74.14 Score for registering property (0–100) Score for resolving insolvency (0–100) Procedures (number) 5 Time (years) 4.0 Cost (% of estate) 15.0 Time (days) 10.5 Recovery rate (cents on the dollar) Cost (% of property value) 2.1 16.9 Strength of insolvency framework index (0–16) Quality of land administration index (0–30) 14.5 6.5 GNI per capita (US$) 7,350 Europe & Central Asia MONTENEGRO Ease of doing business score (0–100) 72.73 Ease of doing business rank (1–190) Population 622,471 50 (rank) 90 Getting credit (rank) 12 Trading across borders (rank) 47 Starting a business Score for starting a business (0–100) 86.65 85.00 Score for trading across borders (0–100) 88.75 Score for getting credit (0–100) 8 Strength of legal rights index (0–12) Procedures (number) 12 Time to export 12 5 Documentary compliance (hours) 5 Time (days) Depth of credit information index (0–8) Credit bureau coverage (% of adults) 0.0 Cost (% of income per capita) 8 1.3 Border compliance (hours) Cost to export 0.0 Credit registry coverage (% of adults) 56.6 Minimum capital (% of income per capita) 67 Documentary compliance (US$) Dealing with construction permits (rank) Protecting minority investors (rank) 57 Border compliance (US$) 158 75 70.88 61.67 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 8 Extent of disclosure index (0–10) 5 Procedures (number) 10 Documentary compliance (hours) Time (days) 152 Extent of director liability index (0–10) 8 Border compliance (hours) 23 Cost (% of warehouse value) 9.6 Ease of shareholder suits index (0–10) 6 Cost to import Building quality control index (0–15) 12.0 Documentary compliance (US$) 100 Extent of shareholder rights index (0–10) 6 Border compliance (US$) 3 306 Extent of ownership and control index (0–10) Extent of corporate transparency index (0–10) Getting electricity (rank) 9 134 (rank) 44 Score for getting electricity (0–100) 59.19 Enforcing contracts (rank) 68 Score for enforcing contracts (0–100) 66.75 Paying taxes Procedures (number) 7 545 Time (days) 76.67 142 Time (days) Score for paying taxes (0–100) Payments (number per year) 18 Cost (% of claim value) 25.7 Cost (% of income per capita) 418.7 Time (hours per year) Quality of judicial processes index (0–18) 11.5 5 Reliability of supply and transparency of tariffs index (0–8) 300 Total tax and contribution rate (% of profit) 22.2 76 70.49 (rank) Resolving insolvency (rank) 43 Postfiling index (0–100) Registering property Score for resolving insolvency (0–100) 65.99 65.78 Score for registering property (0–100) 6 Time (years) 1.4 Procedures (number) 69 Time (days) Cost (% of estate) 8.0 Recovery rate (cents on the dollar) 50.0 3.2 Cost (% of property value) 12.5 Quality of land administration index (0–30) Strength of insolvency framework index (0–16) 17.5 GNI per capita (US$) 2,863 Middle East & North Africa MOROCCO Ease of doing business score (0–100) 71.02 Population 60 Ease of doing business rank (1–190) 35,739,580 34 Getting credit (rank) 112 Starting a business Trading across borders (rank) 62 (rank) ✔ ✔ 92.99 Score for starting a business (0–100) Score for trading across borders (0–100) 83.58 Score for getting credit (0–100) 45.00 Strength of legal rights index (0–12) 2 Procedures (number) 4 Time to export 9 Depth of credit information index (0–8) 7 Documentary compliance (hours) 26 Time (days) 3.7 Credit bureau coverage (% of adults) 29.0 Border compliance (hours) 11 Cost (% of income per capita) Cost to export 0.0 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) Documentary compliance (US$) 107 (rank) 18 (rank) 64 Border compliance (US$) 156 Dealing with construction permits Protecting minority investors Score for protecting minority investors (0–100) Time to import 79.94 60.00 Score for dealing with construction permits (0–100) Extent of disclosure index (0–10) 9 Documentary compliance (hours) Procedures (number) 13 26 88 Extent of director liability index (0–10) 2 Border compliance (hours) 65 Time (days) Cost (% of warehouse value) Ease of shareholder suits index (0–10) 7 Cost to import 3.4 Building quality control index (0–15) Extent of shareholder rights index (0–10) 6 Documentary compliance (US$) 116 13.0 5 228 Extent of ownership and control index (0–10) Border compliance (US$) (rank) 59 Extent of corporate transparency index (0–10) Getting electricity 7 Score for getting electricity (0–100) 81.34 Enforcing contracts (rank) 68 Procedures (number) 5 Paying taxes (rank) 25 Score for enforcing contracts (0–100) 60.93 Time (days) 44 85.72 Time (days) 510 Score for paying taxes (0–100) 1,417.4 26.5 6 Cost (% of claim value) Cost (% of income per capita) Payments (number per year) 7 Reliability of supply and transparency of tariffs index (0–8) 155 Quality of judicial processes index (0–18) 8.0 Time (hours per year) Total tax and contribution rate (% of profit) 49.8 71 Registering property (rank) 68 Postfiling index (0–100) 98.62 (rank) Resolving insolvency ✔ ✔ Score for registering property (0–100) 67.86 Score for resolving insolvency (0–100) 52.84 Procedures (number) 6 Time (years) 3.5 Time (days) 20.5 Cost (% of estate) 18.0 Cost (% of property value) Recovery rate (cents on the dollar) 28.5 6.4 Quality of land administration index (0–30) 19.5 Strength of insolvency framework index (0–16) 12.0 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest business cities. For some indicators a result of “no practice” may be recorded for an economy; see the data notes for more details. In starting a business, procedures (number), time (days) and cost (% of income per capita) are calculated as the average of both men and women. For the postfiling index, a result of “not applicable” may be recorded for an economy.

198 191 COUNTRY TABLES Reform making it easier to do business ✘ Change making it more difficult to do business ✔ GNI per capita (US$) 420 Sub-Saharan Africa MOZAMBIQUE 55.53 Ease of doing business score (0–100) Ease of doing business rank (1–190) 29,668,834 135 Population (rank) 161 (rank) (rank) 91 Starting a business 174 Getting credit Trading across borders ✔ ✘ Score for trading across borders (0–100) 73.84 25.00 Score for getting credit (0–100) 67.56 Score for starting a business (0–100) Time to export 10 Strength of legal rights index (0–12) Procedures (number) 1 Depth of credit information index (0–8) Documentary compliance (hours) 36 Time (days) 17 4 0.0 66 Credit bureau coverage (% of adults) Border compliance (hours) Cost (% of income per capita) 120.5 Cost to export 0.0 Credit registry coverage (% of adults) Minimum capital (% of income per capita) 7.3 160 Documentary compliance (US$) 64 Protecting minority investors (rank) 140 Dealing with construction permits 602 (rank) Border compliance (US$) 72.57 41.67 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) Extent of disclosure index (0–10) 5 16 Procedures (number) 11 Documentary compliance (hours) 4 9 Extent of director liability index (0–10) Time (days) 118 Border compliance (hours) 7 Cost to import 6.5 Cost (% of warehouse value) Ease of shareholder suits index (0–10) Extent of shareholder rights index (0–10) 6 Documentary compliance (US$) 60 Building quality control index (0–15) 11.0 2 Border compliance (US$) Extent of ownership and control index (0–10) 399 (rank) Extent of corporate transparency index (0–10) 1 Getting electricity 100 ✔ Enforcing contracts (rank) 167 Score for getting electricity (0–100) 71.02 Paying taxes (rank) 125 Score for enforcing contracts (0–100) 39.78 4 Procedures (number) ✔ 40 Score for paying taxes (0–100) 64.04 Time (days) 950 Time (days) Cost (% of income per capita) Payments (number per year) 37 Cost (% of claim value) 53.3 3,214.4 4 Reliability of supply and transparency of tariffs index (0–8) Quality of judicial processes index (0–18) 8.5 Time (hours per year) 200 Total tax and contribution rate (% of profit) 36.1 Postfiling index (0–100) 50.19 Resolving insolvency (rank) 84 133 Registering property (rank) 46.89 52.94 Score for registering property (0–100) Score for resolving insolvency (0–100) Procedures (number) 8 Time (years) 1.5 Cost (% of estate) 20.5 Time (days) 43 Recovery rate (cents on the dollar) Cost (% of property value) 5.2 29.1 Strength of insolvency framework index (0–16) Quality of land administration index (0–30) 7.5 10.0 GNI per capita (US$) 1,190 East Asia & Pacific MYANMAR Ease of doing business score (0–100) 44.72 Ease of doing business rank (1–190) Population 53,370,609 171 Starting a business (rank) 152 Getting credit (rank) 178 Trading across borders (rank) 168 ✔ Score for starting a business (0–100) Score for getting credit (0–100) 10.00 Score for trading across borders (0–100) 47.67 77.33 12 Strength of legal rights index (0–12) Time to export Procedures (number) 2 Depth of credit information index (0–8) Documentary compliance (hours) 144 14 0 Time (days) Credit bureau coverage (% of adults) 0.0 Cost (% of income per capita) 142 24.8 Border compliance (hours) Cost to export 0.0 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) 140 Documentary compliance (US$) Dealing with construction permits (rank) Protecting minority investors (rank) 185 Border compliance (US$) 432 81 70.35 25.00 Time to import Score for dealing with construction permits (0–100) Score for protecting minority investors (0–100) 15 Extent of disclosure index (0–10) 3 Procedures (number) 48 Documentary compliance (hours) Time (days) 95 Extent of director liability index (0–10) 0 Border compliance (hours) 230 Cost (% of warehouse value) 3.7 Ease of shareholder suits index (0–10) 3 Cost to import Building quality control index (0–15) 9.0 Documentary compliance (US$) 210 Extent of shareholder rights index (0–10) 5 Border compliance (US$) 457 Extent of ownership and control index (0–10) 1 144 3 Getting electricity Extent of corporate transparency index (0–10) (rank) ✔ (rank) 188 Score for getting electricity (0–100) 55.67 Enforcing contracts (rank) 126 Score for enforcing contracts (0–100) Paying taxes Procedures (number) 6 24.53 Score for paying taxes (0–100) 63.94 Time (days) 1,160 Time (days) 77 Payments (number per year) 1,147.0 Cost (% of claim value) 51.5 Cost (% of income per capita) 31 Time (hours per year) Quality of judicial processes index (0–18) 3.0 1 282 Reliability of supply and transparency of tariffs index (0–8) Total tax and contribution rate (% of profit) 31.2 136 Postfiling index (0–100) Registering property Resolving insolvency (rank) 164 (rank) 45.54 52.30 Score for resolving insolvency (0–100) 20.39 Score for registering property (0–100) 6 Time (years) 5.0 Procedures (number) 85 Time (days) Cost (% of estate) 18.0 Recovery rate (cents on the dollar) Cost (% of property value) 4.1 14.7 Quality of land administration index (0–30) 5.5 Strength of insolvency framework index (0–16) 4.0 GNI per capita (US$) Sub-Saharan Africa 4,600 NAMIBIA Ease of doing business score (0–100) 60.53 Ease of doing business rank (1–190) 107 Population 2,533,794 (rank) 172 Getting credit (rank) 73 Trading across borders (rank) 136 Starting a business 69.06 Score for starting a business (0–100) Score for trading across borders (0–100) 61.47 Score for getting credit (0–100) 60.00 Strength of legal rights index (0–12) 5 Procedures (number) 10 Time to export 66 Depth of credit information index (0–8) 7 Documentary compliance (hours) 90 Time (days) 10.0 Credit bureau coverage (% of adults) 60.8 Border compliance (hours) 120 Cost (% of income per capita) Cost to export 0.0 Credit registry coverage (% of adults) 0.0 Minimum capital (% of income per capita) Documentary compliance (US$) 348 (rank) 83 (rank) 99 Border compliance (US$) 745 Dealing with construction permits Protecting minority investors Score for protecting minority investors (0–100) Time to import 69.79 51.67 Score for dealing with construction permits (0–100) Extent of disclosure index (0–10) 5 Documentary compliance (hours) Procedures (number) 12 3 160 Extent of director liability index (0–10) 5 Border compliance (hours) 6 Time (days) Cost (% of warehouse value) Ease of shareholder suits index (0–10) 6 Cost to import 2.2 Building quality control index (0–15) Extent of shareholder rights index (0–10) 4 Documentary compliance (US$) 63 8.5 3 145 Extent of ownership and control index (0–10) Border compliance (US$) (rank) 71 Extent of corporate transparency index (0–10) Getting electricity 8 Score for getting electricity (0–100) 78.25 Enforcing contracts (rank) 58 ✔ Procedures (number) 6 Paying taxes (rank) 81 Score for enforcing contracts (0–100) 63.44 Time (days) 37 74.52 Time (days) 460 Score for paying taxes (0–100) 304.4 35.8 27 Cost (% of claim value) Cost (% of income per capita) Payments (number per year) 6 Reliability of supply and transparency of tariffs index (0–8) 302 Quality of judicial processes index (0–18) 10.5 Time (hours per year) Total tax and contribution rate (% of profit) 20.7 Registering property (rank) 174 Postfiling index (0–100) 77.17 Resolving insolvency (rank) 125 Score for registering property (0–100) 40.19 36.97 Score for resolving insolvency (0–100) 8 Time (years) Procedures (number) 2.5 Time (days) 44 Cost (% of estate) 14.5 Cost (% of property value) 13.8 Recovery rate (cents on the dollar) 33.8 Quality of land administration index (0–30) 9.5 Strength of insolvency framework index (0–16) 6.0 Note: Most indicator sets refer to a case scenario in the largest business city of an economy, though for 11 economies the data are a population-weighted average for the two largest bu