Doing Business 2010: Eastern Europe and Central Asia Region Leads the World in Business Regulatory Reform

 

 

 

 

DB10_Overview.pdf (148kb)
http://www.doingbusiness.org/

Chisinau, September 9, 2009  — In a record year for regulatory reform worldwide, Eastern Europe and Central Asia led all regions in the pace of reforms. Doing Business 2010: Reforming through Difficult Times finds that 26 of 27 economies in the region reformed regulations to create more opportunity for domestic firms.

Globally, a record 131 of the 183 economies surveyed reformed business regulations between June 2008 and May 2009, according to the report, the seventh in a series of annual reports published by IFC and the World Bank.

The region was the most active worldwide in reforming insolvency regimes and easing access to credit. Six economies improved their insolvency regimes: Albania, Estonia, Lithuania, Poland, Russia, and Tajikistan. Seven reformed their credit information systems: Armenia, Azerbaijan, Latvia, the Former Yugoslav Republic of Macedonia, Serbia, Tajikistan, and Turkey. The Kyrgyz Republic and Poland strengthened the legal rights of borrowers and lenders.

"Governments in Europe and Central Asia continue implementing regulatory reforms as part of their long-term strategies, despite the many challenges of the past year," said Neil Gregory, Advisor, Financial and Private Sector Development, World Bank Group. "They recognize that the quality of business regulation helps determine how easy it is to reorganize troubled firms, rebuild entrepreneurs’ confidence, and start new businesses."

Reform activity among developing economies in the region is the strongest since 2004. The Kyrgyz Republic, the region’s leading reformer, moved up in the global rankings from 80 to 41 on ease of doing business, by implementing reforms in seven of the 10 areas measured by the report. Among other things, it expedited the issuance of construction permits and eased business start-up and property registration.

This year Rwanda was the top global reformer. There were 4 new reformers among the global top 10: Liberia, the United Arab Emirates, Tajikistan and Moldova. Others, aside from Rwanda, include Egypt, Belarus, the Former Yugoslav Republic of Macedonia, the Kyrgyz Republic, and Colombia.

Moldova jumped nine places and came 94 out of 183 economies in this year’s Doing Business report. The country registered reforms in three areas: starting a business, registering property and paying taxes. Rates for social security contributions paid by employers were reduced. Property registration was simplified by eliminating the requirement for a cadastral sketch, reducing procedures from six to five and days from 48 to 5. Business start-up was eased by implementing an expedited company registration service.

"I am delighted that Moldova features among the world’s top ten reformers in this year’s Doing Business ranking. Progress was made in 2008-2009, particularly in the area of property registration where the country came 17th in the world," highlighted Melanie Marlett, World Bank Moldova Country Manager. "However, critical reforms are still needed in a number of areas, including dealing with construction permits and employing workers. Areas such as cross-border trading and closing a business also remain on the reform agenda. The World Bank is committed to helping Moldova advance in these areas."

Doing Business analyzes regulations that apply to an economy’s businesses during their life cycles, including start-up and operations, trading across borders, paying taxes, and closing a business. Doing Business does not measure all aspects of the business environment that matter to firms and investors. For example, it does not measure security, macroeconomic stability, corruption, skill level, or the strength of financial systems.

About the World Bank Group

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), the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Each institution plays a distinct role in the mission to fight poverty and improve living standards for people in the developing world. For more information, please visit www.worldbank.org, www.miga.org, and www.ifc.org.

 The Doing Business project is based on the efforts of more than 6,700 experts – business consultants, lawyers, accountants, and government officials – and leading academics around the world who provided methodological support and review. The data, methodology, and names of contributors are publicly available online at www.doingbusiness.org 

For more information about the Doing Business report series, please visit: www.doingbusiness.org 

Contacts for region-specific queries on Doing Business 2010:

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Materials from the Doing Business 2010 Launch organized in Chisinau:

DB10_VC_SBagaudinova_ECA_Moldova_English.pptx (1,960kb)

DB10_VC_SBagaudinova_ECA_Moldova_Romanian.pptx (2,100kb)

DB10_Moldova_Scorecard.pdf (250kb)

DB10_Moldova_Score_CardROM.doc (101kb)

Cost_of_doing_business2010_TabeleROM.doc (377kb)