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We're number 1: World Banks says Georgia best reformer this year
By Christina Tashkevich
The Messenger, Georgia
Sept 7 2006
A new report from the World Bank and the International Finance
Corporation (IFC) names Georgia as the country to have made the most
reforms in the world in 2006.
The Doing Business 2007 report, which covered 175 economies and
looked into the ease of doing business, placed Georgia as the 37th
easiest country in which to do business in the world, up from 100th
last year. Georgia improved in six of the 10 areas investigated.
Nine CIS economies implemented a total of 24 regulatory reforms
(Georgia implemented ten) reducing the time, cost, and hassle for
businesses to comply with legal and administrative requirements.
The minimum capital required to start a new business has been
reduced from GEL 2000 to GEL 200 (USD 85) in Georgia. New business
registrations rose by 20 percent between 2005 and 2006.
"Reforms in customs and the border police simplified border
procedures. It took 54 days to meet all the administrative requirements
to export in 2004-it now takes 13," the report says.
The time to resolve simple commercial disputes in courts fell from 375
days to 285. Georgia also reduced the social security contributions
paid by businesses from 31 percent of wages to 20 percent, making it
easier for employers to hire new workers.
The report also praises Armenia as a significant reformer, Armenia is
the only CIS country in which it is easier to business than Georgia,
placed at 34 in the world. After Georgia, Doing Business 2007 ranks
Kazakhstan at 62, Russia has a ranking of 96, Ukraine and Belarus
are at 128 and 129 in the global rankings.
"More progress is sorely needed. CIS countries would greatly
benefit from new enterprises and jobs, which can come with more
business-friendly regulations," the IFC's chief economist Michael
Klein said.
Other countries in the list of global top performers include Romania,
Mexico, China, France, Croatia, and Tanzania. Within the CIS, Armenia,
Azerbaijan, Belarus, Kazakhstan, the Kyrgyz Republic, Moldova, Russia,
and Ukraine each implemented at least one reform to make it easier
doing business. Tajikistan had no reforms and Uzbekistan made it even
harder to do business.
The top 30 economies in the world, are Singapore, New Zealand,
the United States, Canada, Hong Kong (China), the United Kingdom,
Denmark, Australia, Norway, Ireland, Japan, Iceland, Sweden, Finland,
Switzerland, Lithuania, Estonia, Thailand, Puerto Rico, Belgium,
Germany, the Netherlands, Korea, Latvia, Malaysia, Israel, St. Lucia,
Chile, South Africa, and Austria.
The report notes that globally the most popular reform in 2005-2006
was easing the regulations of business start-up. "Reforms should ease
the burden on all businesses: small and large, domestic and foreign,
rural and urban. This way there is no need to guess where the next
boom in jobs will come from. Any business will have the opportunity
to thrive," an author of the report Simeon Djankov explained.
He will visit Georgia next week to present the report and Georgia's
results.
From: Emil Lazarian | Ararat NewsPress
By Christina Tashkevich
The Messenger, Georgia
Sept 7 2006
A new report from the World Bank and the International Finance
Corporation (IFC) names Georgia as the country to have made the most
reforms in the world in 2006.
The Doing Business 2007 report, which covered 175 economies and
looked into the ease of doing business, placed Georgia as the 37th
easiest country in which to do business in the world, up from 100th
last year. Georgia improved in six of the 10 areas investigated.
Nine CIS economies implemented a total of 24 regulatory reforms
(Georgia implemented ten) reducing the time, cost, and hassle for
businesses to comply with legal and administrative requirements.
The minimum capital required to start a new business has been
reduced from GEL 2000 to GEL 200 (USD 85) in Georgia. New business
registrations rose by 20 percent between 2005 and 2006.
"Reforms in customs and the border police simplified border
procedures. It took 54 days to meet all the administrative requirements
to export in 2004-it now takes 13," the report says.
The time to resolve simple commercial disputes in courts fell from 375
days to 285. Georgia also reduced the social security contributions
paid by businesses from 31 percent of wages to 20 percent, making it
easier for employers to hire new workers.
The report also praises Armenia as a significant reformer, Armenia is
the only CIS country in which it is easier to business than Georgia,
placed at 34 in the world. After Georgia, Doing Business 2007 ranks
Kazakhstan at 62, Russia has a ranking of 96, Ukraine and Belarus
are at 128 and 129 in the global rankings.
"More progress is sorely needed. CIS countries would greatly
benefit from new enterprises and jobs, which can come with more
business-friendly regulations," the IFC's chief economist Michael
Klein said.
Other countries in the list of global top performers include Romania,
Mexico, China, France, Croatia, and Tanzania. Within the CIS, Armenia,
Azerbaijan, Belarus, Kazakhstan, the Kyrgyz Republic, Moldova, Russia,
and Ukraine each implemented at least one reform to make it easier
doing business. Tajikistan had no reforms and Uzbekistan made it even
harder to do business.
The top 30 economies in the world, are Singapore, New Zealand,
the United States, Canada, Hong Kong (China), the United Kingdom,
Denmark, Australia, Norway, Ireland, Japan, Iceland, Sweden, Finland,
Switzerland, Lithuania, Estonia, Thailand, Puerto Rico, Belgium,
Germany, the Netherlands, Korea, Latvia, Malaysia, Israel, St. Lucia,
Chile, South Africa, and Austria.
The report notes that globally the most popular reform in 2005-2006
was easing the regulations of business start-up. "Reforms should ease
the burden on all businesses: small and large, domestic and foreign,
rural and urban. This way there is no need to guess where the next
boom in jobs will come from. Any business will have the opportunity
to thrive," an author of the report Simeon Djankov explained.
He will visit Georgia next week to present the report and Georgia's
results.
From: Emil Lazarian | Ararat NewsPress