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WB VIEWS OVERLY RESTRICTIVE AND OBSOLETE LAWS AS IMPEDIMENT TO FOREIGN DIRECT INVESTMENT
/ARKA/
July 7, 2010
YEREVAN
Overly restrictive and obsolete laws are an impediment to foreign
direct investment and their poor implementation creates additional
costs to investment, finds Investing Across Borders 2010, a new report
by the World Bank Group.
The report sent to ARKA News Agency by the WB Yerevan Office is the
first World Bank Group report to offer objective data on laws and
regulations affecting foreign direct investment that can be compared
across 87 countries.
According to the report, leasing industrial land in Nicaragua and
Sierra Leone typically requires half a year as opposed to less than
two weeks in Armenia, Republic of Korea, and Sudan.
In Angola and Haiti excessive red tape means it can take half a year
to establish a subsidiary of a foreign company.
Pakistan, Philippines, and Sri Lanka it can take up to two years to
enforce an arbitration award.
"Foreign direct investment is critical for countries' development,
especially in times of economic crisis. It brings new and more
committed capital, introduces new technologies and management styles,
helps create jobs, and stimulates competition to bring down local
prices and improve people's access to goods and services," said
Janamitra Devan, Vice President of Financial and Private Sector
Development, World Bank Group.
The report finds that countries that do well on the Investing Across
Borders indicators also tend to attract more foreign direct investment
relative to the size of their economies and population. Conversely,
countries that score poorly tend to have higher incidence of
corruption, higher levels of political risk, and weaker governance
structures.
Investing Across Borders 2010 aims to help countries develop more
competitive business environments by identifying good practices in
investment policy design and implementation. It provides indicators
examining sector-specific restrictions on foreign equity ownership,
the process of starting a foreign business, access to industrial land,
and commercial arbitration regimes in 87 countries.
The World Bank Group is one of the world's largest sources of funding
and knowledge for developing countries. It comprises five closely
associated institutions: the International Bank for Reconstruction
and Development (IBRD) and the International Development Association
(IDA), which together form the World Bank; the International Finance
Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA);
and the International Centre for Settlement of Investment Disputes
(ICSID).
From: A. Papazian
/ARKA/
July 7, 2010
YEREVAN
Overly restrictive and obsolete laws are an impediment to foreign
direct investment and their poor implementation creates additional
costs to investment, finds Investing Across Borders 2010, a new report
by the World Bank Group.
The report sent to ARKA News Agency by the WB Yerevan Office is the
first World Bank Group report to offer objective data on laws and
regulations affecting foreign direct investment that can be compared
across 87 countries.
According to the report, leasing industrial land in Nicaragua and
Sierra Leone typically requires half a year as opposed to less than
two weeks in Armenia, Republic of Korea, and Sudan.
In Angola and Haiti excessive red tape means it can take half a year
to establish a subsidiary of a foreign company.
Pakistan, Philippines, and Sri Lanka it can take up to two years to
enforce an arbitration award.
"Foreign direct investment is critical for countries' development,
especially in times of economic crisis. It brings new and more
committed capital, introduces new technologies and management styles,
helps create jobs, and stimulates competition to bring down local
prices and improve people's access to goods and services," said
Janamitra Devan, Vice President of Financial and Private Sector
Development, World Bank Group.
The report finds that countries that do well on the Investing Across
Borders indicators also tend to attract more foreign direct investment
relative to the size of their economies and population. Conversely,
countries that score poorly tend to have higher incidence of
corruption, higher levels of political risk, and weaker governance
structures.
Investing Across Borders 2010 aims to help countries develop more
competitive business environments by identifying good practices in
investment policy design and implementation. It provides indicators
examining sector-specific restrictions on foreign equity ownership,
the process of starting a foreign business, access to industrial land,
and commercial arbitration regimes in 87 countries.
The World Bank Group is one of the world's largest sources of funding
and knowledge for developing countries. It comprises five closely
associated institutions: the International Bank for Reconstruction
and Development (IBRD) and the International Development Association
(IDA), which together form the World Bank; the International Finance
Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA);
and the International Centre for Settlement of Investment Disputes
(ICSID).
From: A. Papazian