1 Subnational Doing Business Marialisa Motta Mierta Capaul Luis Aldo Sanchez-Ortega 7 June 2010

Launched 8 years ago Focuses on regulations relevant to the life cycle of a small to medium- sized domestic business based on a standardized case Does not measure all aspects of the business environment The objective: efficient regulations, accessible to all, and simple to implement Doing Business compares business regulation in 183 economies

What is SNDB and what does it do? ► Expand Doing Business indicators beyond the country’s most populous city ► Measure progress over time and create an incentive to maintain the reform effort even when governments change ► Create a powerful public policy tool capable of guiding policymakers throughout the entire regulatory reform cycle

4 Countries: 41 Cities: 299 Where do we work? 4

Data Collection Data collection -Customized surveys to reflect local particularities -Training national government on DB methodology -Local governments involved in surveying process Period of Reply Right-of-Reply period - Presentation of preliminary results - Dialog with local / national governments about reforms - Active participation from local governments - Final data collection Preparation Phase - Demand driven - National and local governments involvement: Selection cities / indicators Coordination local governments -Road-Show with national government: Present project Train local governments on the methodology Ensure commitment local governments Active national and local government participation required at all stages Strong focus on knowledge sharing at all stages How do we work: design and implementation

Follow-up  Demand for reform at local and national level  Peer-to-peer learning and rapid response  Sustainability strategy / transfer of methodology Report  Compares performance of different cities in same country  Identifies bottlenecks and local good practices  Provides reform recommendations Launch  Media coverage  Country ownership  “We only have winners in Colombia: winners of today and winners of tomorrow” President Alvaro Uribe Active national and local government participation required at all stages How do we work: design and implementation

Indicators covered at the subnational level Subnational Doing Business typically measures those indicators where there are local differences in business regulations and their enforcement across locations with a shared legal and regulatory framework. 4 indicators typically measured at the subnational level: 1. Starting a business 2. Dealing with construction permits 3. Registering property 4. Enforcing contracts 3 indicators added depending on degree of subnational independence: paying taxes, trading across borders, closing a business. 3 indicators are legal indexes only: Protecting investors, Employing workers, Getting credit. City profiles: measure all indicators to benchmark additional city internationally. Examples: Veneto, Abu Dhabi, Juba in Southern Sudan We measure Procedures, Time and Cost related to these 4 indicators We also gather info on recent & planned reforms

The logic behind time and motion indicators Time (No. of days) Cost (% of GNI per capita) Follow the entrepreneur from the beginning to the end of a basic transaction Record every step of the process, and the associated time and cost Gather all the relevant laws, regulations, decrees, and fee schedules Time and motion indicators focus on the process.

Subnational Doing Business uncovers reform potential by identifying good practices within the country Large regional variations in regulations and implementation remain Indicator Best performing city Global rank Days to deal with construction permits Hyderabad19 Cost to enforce a contract Patna31 Days to register property Jaipur49 Days to importBhubaneshwar50 Time to pay taxesJaipur91 Cost to start a business Patna124 Recovery rate for closing a business Hyderabad133 To climb 55 places in the rankings, India would need to adopt: New Delhi’s regulations on starting a business Hyderabad’s rules on contract enforcement and bankruptcy Bhubaneshwar’s trade practices No need to go outside India for good practices

Remarkable progress in regulatory reforms across Colombia National and local reforms implemented in all cities benchmarked in 2007

Detailed information in 5 languages General description Links to specific country subnational websites Launching conference presentation s Services for clients and public in general

Country reports’ general description Ranking s Data analysis Main findings National reform simulator Free reports in local language (Italian) and English

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