Big differences in ease of doing business in Asia

The ease of doing business across Asia varies significantly. According to the ‘Doing Business Report 2009’ prepared jointly by the International Finance Corporation and the World Bank, Singapore retains its number one position on the overall regulatory ease of doing business for a third consecutive year. While due to poignant regulatory reforms China’s rank improved from 83 from 90, out of 181 countries. India, however, slipped two notches to rank at 122nd, below its neighbors - Nepal, Bangladesh and Pakistan which have been placed at 121st, 110th and 77th place, respectively, in the overall ranking.

Among Asia-Pacific countries, the Philippines ranked 140th, lags most of Asia for ease of doing businesswas behind Cambodia at 135 and only ahead of Laos at 165 and East Timor at 170. The average ranking for East Asia is 8. Consequently, Bangladesh is ranked 110 and has reduced the time needed to register property from 425 to 245 days. Bhutan is ranked 124th.

Eastern Europe, Central Asia and the Caucasus, led by Azerbaijan, made more changes than any other region to make doing business easier over the past year, according to the report. Azerbaijan improved its ranking by a whopping 64 places and is this year’s top reformer. Large economies that fell in the rankings include Germany, which dropped to 25 from 20, Mexico, to 56 from 42, and Russia, to 120 from 112.

Doing Business ranks economies based on 10 indicators of business regulation that record the time and cost to meet government requirements in starting and operating a business, trading across borders, paying taxes, and closing a business.

The rankings do not reflect such areas as macroeconomic policy, quality of infrastructure, currency volatility, investor perceptions, or crime rates, said the report.