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WORLD BANK GROUP SUPPORT TO BUSINESS ENTRY REFORMS Andrei Mikhnev Karim O. Belayachi
What kind of support we provide <ul><li>To improve regulatory requirements for setting up a formal business we provide ass...
Recent trends in business registration reforms <ul><li>Simplification of regulatory requirements for registering a busines...
WBG Business Entry Reform Projects We support business entry reforms in 50 countries
How do we support business entry reforms? <ul><li>Diagnostic and analytical work </li></ul><ul><ul><li>Doing Business </li...
Doing Business indicators <ul><li>Update of 2008  </li></ul><ul><li>Add 3 countries </li></ul><ul><li>Reformer’s Club: </l...
Starting a Business: the indicator <ul><li>All procedures for an entrepreneur to start up and formally operate an industri...
Top 20 on the ease of Starting a Business, 2009 1. New Zealand 11. Jamaica 2. Canada 12. Macedonia, former Yugoslav Republ...
Reforms inspired/informed by Doing Business 80 Completed Reforms
Ongoing reforms inspired/informed by Doing Business 94 Ongoing Reforms
Poland Belarus Antigua & Barbuda Colombia Dominica El Salvador Grenada Guatemala Guyana Haiti Honduras St. Kitts St. Lucia...
2005 2006 2007 2008 2009 Countries: 42  Cities: 272 Subnational Doing Business
<ul><li>Expands  Doing Business indicators beyond the most populous city </li></ul>3. M&E device Subnational   Engagement ...
Subnational Doing Business in AFRICA Nigeria First subnational DB report DB in Nigeria 2008  launched May 2008 Second roun...
<ul><li>Visibility of DB Report increases governments’ willingness to reform; DB tight deadlines help focus actions and in...
For more information visit: www.doingbusiness.org
Entrepreneurship Database <ul><li>Objectives </li></ul><ul><ul><li>To understand the universe of private enterprises aroun...
Results  (3-year average) Total and New Business Density Entry Rates
Ease of Doing business http://econ.worldbank.org/research/entrepreneurship.
World Bank | International Finance Corporation (IFC) Presentation CRF 2009
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World Bank | International Finance Corporation (IFC) Presentation CRF 2009

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World Bank | International Finance Corporation (IFC) Presentation CRF 2009

  1. 1. WORLD BANK GROUP SUPPORT TO BUSINESS ENTRY REFORMS Andrei Mikhnev Karim O. Belayachi
  2. 2. What kind of support we provide <ul><li>To improve regulatory requirements for setting up a formal business we provide assistance on: </li></ul><ul><li>Legal Solution </li></ul><ul><ul><ul><li>drafting new or amending existing laws and regulations </li></ul></ul></ul><ul><li>Institutional Solution </li></ul><ul><ul><ul><li>identifying the role and authority of state agencies </li></ul></ul></ul><ul><ul><ul><li>building their capacity </li></ul></ul></ul><ul><li>Procedural Solution </li></ul><ul><ul><ul><li>business process reengineering </li></ul></ul></ul><ul><li>Technological Solution </li></ul><ul><ul><ul><li>automation of processes through ICT </li></ul></ul></ul>
  3. 3. Recent trends in business registration reforms <ul><li>Simplification of regulatory requirements for registering a business </li></ul><ul><li>Integrating registration functions of various government agencies </li></ul><ul><li>Using ITC to make registration procedures effective and efficient </li></ul>
  4. 4. WBG Business Entry Reform Projects We support business entry reforms in 50 countries
  5. 5. How do we support business entry reforms? <ul><li>Diagnostic and analytical work </li></ul><ul><ul><li>Doing Business </li></ul></ul><ul><ul><li>Enterprise Surveys </li></ul></ul><ul><ul><li>Entrepreneurship Database </li></ul></ul><ul><li>Advisory services </li></ul><ul><li>Lending </li></ul>
  6. 6. Doing Business indicators <ul><li>Update of 2008 </li></ul><ul><li>Add 3 countries </li></ul><ul><li>Reformer’s Club: </li></ul><ul><ul><li>16 case studies </li></ul></ul>2008 2009 <ul><li>Starting a business </li></ul><ul><li>Dealing with construction permits </li></ul><ul><li>Employing workers </li></ul><ul><li>Registering property </li></ul><ul><li>Enforcing contracts </li></ul><ul><li>Getting credit </li></ul><ul><li>Trading across borders </li></ul><ul><li>Protecting investors </li></ul><ul><li>Paying taxes </li></ul><ul><li>Closing a business </li></ul><ul><li>Add Using infrastructure </li></ul><ul><li>Research program on regulation and business opportunities for women </li></ul>2010
  7. 7. Starting a Business: the indicator <ul><li>All procedures for an entrepreneur to start up and formally operate an industrial or commercial business </li></ul><ul><li>Pre-registration </li></ul><ul><li>Registration </li></ul><ul><li>Post-registration </li></ul>
  8. 8. Top 20 on the ease of Starting a Business, 2009 1. New Zealand 11. Jamaica 2. Canada 12. Macedonia, former Yugoslav Republic of 3. Australia 13. Azerbaijan 4. Georgia 14. France 5. Ireland 15. Hong Kong, China 6. United States 16. Denmark 7. Mauritius 17. Iceland 8. United Kingdom 18. Finland 9. Puerto Rico 19. Tonga 10. Singapore 20. Belgium
  9. 9. Reforms inspired/informed by Doing Business 80 Completed Reforms
  10. 10. Ongoing reforms inspired/informed by Doing Business 94 Ongoing Reforms
  11. 11. Poland Belarus Antigua & Barbuda Colombia Dominica El Salvador Grenada Guatemala Guyana Haiti Honduras St. Kitts St. Lucia Albania Macedonia Armenia Azerbaijan Kyrgyz Rep . India Bangladesh Mozambique Kenya Rwanda Burundi DRC Madagascar Central African Rep. Senegal Sao Tome Zambia Burkina Faso Cote d’Ivoire Ghana Liberia Mali Mauritania Jordan Kuwait, Iran Lebanon, Saudi Arabia, UAE Yemen Greece Singapore Lao PDR Cambodia Indonesia Vanuatu Timor Leste Tonga Vietnam DB Reform Unit Advisory: requests received
  12. 12. 2005 2006 2007 2008 2009 Countries: 42 Cities: 272 Subnational Doing Business
  13. 13. <ul><li>Expands Doing Business indicators beyond the most populous city </li></ul>3. M&E device Subnational Engagement 2. Reform instrument 1. Diagnostic tool <ul><li>Creates baseline </li></ul><ul><li>Allows locations to compete locally and globally </li></ul><ul><li>Entry point in countries averse to international comparisons </li></ul><ul><li>Puts regulatory reform on political agenda </li></ul>1. Diagnostic tool <ul><li>Comparisons within cities are strong drivers of reform </li></ul><ul><li>Uncovers bottlenecks and local good practices </li></ul><ul><li>Promotes peer to peer learning </li></ul>2. Reform instrument 3. M&E device <ul><li>Measures progress over time </li></ul><ul><li>Creates an incentive to maintain reform effort even when governments change </li></ul><ul><li>Actively involves local governments </li></ul><ul><li>and other reform stakeholders </li></ul><ul><li>High media appeal </li></ul>Initiate reform process
  14. 14. Subnational Doing Business in AFRICA Nigeria First subnational DB report DB in Nigeria 2008 launched May 2008 Second round started in January 2009 Kenya First subnational DB report has started in October 2009
  15. 15. <ul><li>Visibility of DB Report increases governments’ willingness to reform; DB tight deadlines help focus actions and increase speed of reforms </li></ul><ul><li>DB triggers several factors that are needed for successful reforms: </li></ul><ul><ul><li>Identify a “champion” to drive reforms; establish reform committees; identify technical leaders and working groups; get inputs from the private sector </li></ul></ul><ul><ul><li>Start with simple reforms: focus on administrative changes first, while preparing the ground for long-term reforms </li></ul></ul>Conclusions: Doing Business triggers reforms
  16. 16. For more information visit: www.doingbusiness.org
  17. 17. Entrepreneurship Database <ul><li>Objectives </li></ul><ul><ul><li>To understand the universe of private enterprises around the globe </li></ul></ul><ul><ul><li>To study the impact of regulatory, political, and macroeconomic institutional changes </li></ul></ul><ul><ul><li>To understand what drives entrepreneurs to graduate from the informal to the formal sector </li></ul></ul><ul><li>Indicators </li></ul><ul><ul><li>Business Entry Rate </li></ul></ul><ul><ul><li>New Business Density </li></ul></ul><ul><ul><li>Total Business Density </li></ul></ul>
  18. 18. Results (3-year average) Total and New Business Density Entry Rates
  19. 19. Ease of Doing business http://econ.worldbank.org/research/entrepreneurship.

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