1. Doing Business 2004 UNDERSTANDING REGULATION

2. Goals Motivating reforms through country benchmarking; Informing the design of reforms; Enriching international initiatives on development effectiveness; Informing economic theory.

3. Overview Poor countries regulate business the most; Heavier regulation brings bad outcomes; Regulatory reform in developed v developing countries: –Consistent  “One size fits all” –Continuous Many examples of good reform practices.

4. Analysis Starting a Business Hiring and Firing Workers Enforcing Contracts Getting Credit Closing a Business

5. Starting a Business Are Entry Regulations Good? –Some, Yes –Many, No What to Reform? –Administrative Reform –Legal Reform

6. Hiring and Firing Workers What is Employment Regulation? –Employment regulation; –Social security laws; –Industrial relations; –Workplace safety.

7. Hiring and Firing Workers Hiring –Full-time v part-time contracts Conditions of Employment –Hours of work; leaves; minimum wage Firing –Grounds; Procedures; Notice and Severance Payment; Job security

8. Enforcing Contracts What to Reform? –Establishing Information Systems and Judicial Statistics; –Taking nondispute cases out of court; –Simplifying judicial procedures; –Establishing specialized courts.

9. Getting Credit Sharing Credit Information –Public Credit-Information Sharing –Private Credit-Information Sharing Legal Rights of Creditors

10. Getting Credit What to Reform? –Facilitating Information Sharing; –Legal Security Creation of Rights Enforcement of Rights

11. Closing a Business What are the Goals of Bankruptcy? –Maximizing Value –Rescuing a Viable Business –Keeping the Order of Claims Stable –NOT Employment Protection

12. What to Reform? Choosing Appropriate Institutions; Involving Stakeholders in the Insolvency Process; Training Bankruptcy Judges and Administrators.

13. The Practice of Regulation Regulation varies widely around the world; Heavier regulation of business activity generally brings bad outcomes, while clearly defined and well-protected rights enhance prosperity; Rich countries regulate business in a consistent manner, poor countries do not.

14. Principles of Good Regulation Simplify and deregulate in competitive markets; Focus on enhancing property rights; Expand the use of technologies; Reduce court involvement in business matters; Make reform a continuous process.