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ITIC continues to monitor comparative annual studies that analyze progress in economic reform, as a means of attracting foreign investment. Some findings of the ‘bell-wether’ World Bank report, entitled, Doing Business (2018): Measuring Business Regulations (published on 31 October), are set out below for select economies in which ITIC operates.

At the outset, it is important to understand the respective purposes and detailed assessment methodologies in the World Bank’s Doing Business report, as depicted below:

“Doing Business presents results for two aggregate measures: the distance to frontier score and the ease of doing business ranking, which is based on the distance to frontier score. The ease of doing business ranking compares economies with one another; the distance to frontier score benchmarks economies with respect to regulatory best practice, showing the absolute distance to the best performance on each Doing Business indicator. When compared across years, the distance to frontier score shows how much the regulatory environment for local entrepreneurs in an economy has changed over time in absolute terms, while the ease of doing business ranking can show only how much the regulatory environment has changed relative to that in other economies”.

Rankings for select countries in the following categories are below (with 2017’s data in parenthesis for comparative purposes): Doing Business (Rank: 1-190); Distance to Frontier (0-100); Paying Taxes; and DTFPT.

Doing Business

Distance to Frontier Paying Taxes DTFPT
Azerbaijan 57 (65) 70.19 (67.99) 35 (40) 84.21 (83.52)
Brazil 125 (123) 56.45 (56.53) 184 (181) 32.97 (33.03)
China 78 (78) 65.29 (64.28) 130 (131) 62.90 (60.46)
India 100 (130) 60.76 (55.27) 119 (172) 66.06 (40.58)
Indonesia 72 (91) 66.47 (61.52) 114 (104) 68.04 (69.25)
Iraq 168 (165) 44.87 (45.61) 129 (52) 63.55 (80.86)
Kazakhstan 36 (35) 75.44 (75.09) 50 (60) 79.47 (79.54)
Myanmar 171 (170) 44.21 (44.56) 125 (119) 63.94 (64.05)
Nigeria 145 (169) 52.03 (44.63) 171 (182) 48.44 (28.09)
Russia 35 (40) 75.50 (73.19) 52 (45) 79.29 (82.96)
South Africa 82 (74) 64.89 (65.20) 46 (51) 80.02 (81.09)
Ukraine 76 (80) 65.75 (63.90) 43 (84) 80.77 (72.72)
UAE 21 (26) 78.73 (76.89) 1 (1) 99.44 (99.44)

The latest World Bank findings can be usefully read in conjunction with another recent World Bank study (published on 25 October), entitled, “Global Investment Competitiveness Report 2017/2018: Foreign Investor Perspectives and Policy Implications.”

 

Douglas Townsend is a Senior Advisor for the International Tax and Investment Center (ITIC), based in the United Kingdom.

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