Click to edit Master title style Doing Business in Russia 2009 Igor Artemiev Investment Climate Advisory Services The World Bank Group Kazan, October 14, 2009

Click to edit Master title style Doing Business project overview Doing Business measures the regulations applying to domestic small and medium-size companies through their life cycle 10 indicators in 183 countries The objective: well-designed, streamlined regulations, accessible to all Every economy is represented by its largest business city in the global Doing Business study but several countries requested a Subnational Doing Business study… 2

Click to edit Master title style Subnational Doing Business Project Expands the DB indicators beyond the most populous city Captures local differences in regulations or enforcement Includes rules and regulations at all levels of government Gives specific locations an opportunity to present themselves Provides a tool for locations to compete globally Provides information on good practices within the same country that can be easily replicated Combines media appeal of DB with active participation of subnational governments in the reform process 3

Click to edit Master title style Countries: 41 Cities: 299 Subnational Doing Business has projects all around the globe

Click to edit Master title style 5 Doing Business in Russia 2009 Measuring 4 topics in Russia: Starting a business Dealing with construction permits Registering property Trading across borders Analyzing required procedures, time and cost to start and operate a business. Data were collected with the help of 200 public officials and private sector experts

Click to edit Master title style Doing Business in Russia covers 10 locations 6

Click to edit Master title style 1 Kazan (easiest) 2 Tver 3 Petrozavodsk 4 Rostov-on-Don 5 Tomsk 6 Irkutsk 7 Perm 8 St. Petersburg 9 Voronezh 10 Moscow (most difficult) Doing business in Russia: Where is it easiest?

Click to edit Master title style Starting a business: Time to start a business varies across Russia due to implementation 8

Click to edit Master title style Starting a business: Costs vary across cities as well 9

Click to edit Master title style Dealing with construction permits: Too many clearances before breaking ground 10

Click to edit Master title style 11 Dealing with construction permits: More than 3 years to complete procedures in Voronezh

Click to edit Master title style Registering property: Time varies significantly across cities 12

Click to edit Master title style Registering property: Kazan has the least expensive process to transfer property 13

Click to edit Master title style 14 Trading across borders: The time and cost vary across Russia

Click to edit Master title style 15 Variations across cities show potential to learn from the existing local best practices Indicator Best practice Difficult Procedures to start a businessMoscow (9 procedures)Voronezh (14 procedures) Days to start a businessRostov-on-Don (22 days)Petrozavodsk (37 days) Cost to start a businessKazan (3,000 rubles)Moscow (6,200 rubles) Procedures to deal with construction permitsRostov-on-Don (22 procedures)Moscow (54 procedures) Days to deal with construction permitsRostov-on-Don (194 days)Voronezh (1,207 days) Cost to deal with construction permitsPetrozavodsk (270.3% GNI)Moscow (2,612.8% GNI) Procedures to register property Kazan, Voronezh, Rostov-on- Don (5 procedures) Petrozavodsk (7 procedures) Days to register propertyTomsk (47 days)St. Petersburg (117 days) Cost to register propertyKazan (16,706 rubles)Rostov-on-Don (40,360 rubles) Time to exportKazan (24 days)Moscow (36 days) Time to importVoronezh (23 days)Moscow (36 days) Cost to export Petrozavodsk (1,050 USD per container) Moscow (2,150 USD per container) Cost to import Petrozavodsk (933USD per container) Moscow (2,150 USD per container)

Click to edit Master title style 75% 9 reformers 90% 28 reformers Number of states ► Great Initial Impact Political support for reform efforts has continued even after two rounds of local elections and one presidential election since first benchmark ► Great “bang for the buck” 58 reforms in 3 years for $1,125,000 reformersNon reformers Doing Business in Mexico 2005, 2007 & 2009 Competition and peer learning drive reforms

Click to edit Master title style Improving business start up is associated with an increase in economic growth and investment rate and with a smaller informal sector. Efficient property registration can make it easier to transfer property and can help boost the number of new title registrations. Good construction regulations that ensure safety standards while making the permitting process efficient, transparent and affordable result in increased construction activity, improved public safety with less projects in the informal economy, and higher revenues from construction spending and property taxes. Why does it matter?

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