The Government of Canada The Government of Australia Zenaida Hernandez May 26 th, 2008
Doing Business Indicators Starting a business Dealing with licenses Employing workers Registering property Getting credit Protecting investors Paying taxes Trading across borders Enforcing contracts Closing a business Update of 2007 Add 3 countries Reformer’s Club: 11 case studies Update of 2008 Research program on regulation and business opportunities for women
Focus on Procedures, Time and Cost is Doing Business basic methodology Registering a property in the Philippines procedures that take 33 days and 5.7% of property value. Notary prepares deed of sale Obtain CTC of tax declaration Pay stamp tax at bank Obtain certificate of real estate taxes at CTO Obtain CAR at BIR Payment of transfer tax at CTO Apply for new tax declaration Registration at Registry of Deeds
Reforms across the world – less so in East Asia and Pacific Countries with at least one positive reform in (%) E. Europe + Central Asia 78.6% 62.5% South Asia OECD 62.5% Middle East + N. Africa Sub-Saharan Africa East Asia + Pacific Latin America + Caribbean 35.5% 58.8% 52.2% 45.8%
Business entry reforms = more businesses Countries ranked by ease of doing business, quintiles Business Density (registered firms per capita) Business Entry (new firms in % of registered firms) Source: Doing Business database Easiest Most difficult Easiest
…Which Means More Formal Employment Source: Doing Business database, WDI Informal Sector (% of GDP) Unemployment (% of labor force) Easiest Most difficult Easiest Countries ranked by ease of doing business, quintiles
Doing Business subnational series Doing Business
Caloocan Las Piñas Makati Malabon Mandaluyong Manila Marikina Muntinlupa Navotas Parañaque Pasay Pasig Quezon City San Juan Taguig Tanauan Valenzuela Cebu Lapu-Lapu Mandaue Doing Business in the Philippines 2008 Davao Measures 3 indicators across 21 cities: Starting a business Dealing with licenses Registering property Indicators selected because they cover areas of national and local government jurisdiction Provides objective measures on procedures, time and costs Information collected from private professionals and public officials that administer or advice on regulatory requirements in each of the 21 cities
Procedures to start a business
Days to start a business Singapore (5 days) Malaysia (24 days) Indonesia (104 days)
Cost to start a business (% of income per capita) Indonesia (80%) Thailand (5.6%) Malaysia (18.1%)
Procedures to deal with licenses
Days to deal with licenses Korea (34 days) Indonesia (196 days) Thailand (156 days)
Cost to deal with licenses (% of income per capita) Thailand (11%) Malaysia (10%) Indonesia (287%)
Days to register property Thailand (2 days) Indonesia (42 days) Singapore (9 days)
Cost to register property (% of property value) Malaysia (2.4%) Indonesia (10.5%) Vietnam (1.2%)
Doing Business indicators are a tool to reform
Best practices in the Philippines can improve the ease of doing business IndicatorBest performing city Global rank per indicator (178 economies) Days to deal with licenses Tanauan6 Days to register property Mandaluyong35 Cost to register property (% of property value) Mandaue54 Cost to deal with licenses (% of GNI per capita) Makati, Manila61 Days to start a business Taguig76 Cost to start a business (% of GNI per capita) Lapu-Lapu79 Number of procedures to register property All cities124 Number of procedures to deal with licenses Taguig142 Number of procedures to start a businessManila, Marikina, Taguig168
Thank you Subnational.doingbusiness.org