Doing Business Indicators developed and measured by the World Bank compare the economies of over 180 countries based on a wide variety of statistics, from credit availability to cross border trading. In 2018, Bangladesh ranked 177/180 obtaining the DTF score 40.99/100. Some observations and recommendations are presented here.

1. Ease of Doing Business Index
Context: Bangladesh

2. Prepared for the course:
Politics and Development
MDS, BUP
Prepared by:
Shawkat Ara Begum

3. Doing Business 2018
• New Zealand first on ease of doing business for the
second consecutive year.
• 3,188 reforms implemented in 15 years since inception
of Doing Business.
• During the past year, 264 reforms have been carried out
in 119 economies.
• Sub-Saharan Africa carried out 83 reforms, a record
number for the second consecutive year.
• New case studies on starting a business, dealing with
construction permits, registering property and resolving
insolvency.

4. Ease of Doing Business Index
• An index published by World Bank.
• An aggregate figure that includes different parameters
defining ease of doing business in a country.
• First Doing Business report published in 2003 , covered
5 indicator sets and 133 economies.
• Doing Business Indicators compare the economies of
over 180 countries based on a wide variety of statistics,
from credit availability to cross border trading.
Overview of Doing Business

5. Methodology

6. Doing Business Report Methodology
Topic No. of
Indicator
Indicators
Starting a
business
7 Procedures (number) , Time (days), Cost (% of income per
capita) , Minimum capital (% of income per capita)
Dealing with
construction
permits
4 Procedures (number) , Time (days), Cost (% of warehouse
value) , Building quality control index (0–15
Getting
electricity
4 Procedures (number) , Time (days), Cost (% of income per
capita) , Reliability of supply and transparency of tariffs
index (0–8)
Registering
property
5 Procedures (number) , Time (days), Cost (% of income per
capita) , Minimum capital (% of income per capital, Quality
of land administration index (0–30)
Getting credit 4 Strength of legal rights index (0–12) , Depth of credit
information index (0–8)

7. Topic No. of
indicator
Indicators
Protecting
minority
investors
7 Extent of disclosure index (0–10) , Extent of director liability index
(0–10) , Ease of shareholder suits index (0–10), Extent of
shareholder rights index (0–10), Extent of ownership and control
index (0–10), Extent of corporate transparency index (0–10)
Paying taxes 4 (4 sub-
indicator
s)
Payments (number per year) , Time (hours per year) , Total tax
and contribution rate (% of profit) , Post filing index (0–100):Time
to comply with VAT refund (hours), Time to obtain VAT refund
(weeks), Time to comply with corporate income tax audit (hours),
Time to complete a corporate income tax audit (weeks)
Trading across
borders
14 Time to export (2 SI), Cost to export (2 SI), Time to import(2 SI), ,
Cost to import(2 SI),
Enforcing
contracts
5 Time (days), Cost (% of income per capita) , Quality of judicial
processes index (0–18)
Resolving
insolvency
2 Recovery rate (cents on the dollar) , Strength of insolvency
framework index (0–16)
Labor market
regulation
Additional Topic

12. Country
code
Economy DB Year
Rank
global
(DB18)
DTFglobal
(DB17-18
methodol
ogy)
DTFglobal
(DB16
methodol
ogy)
DTFglobal
(DB15
methodol
ogy)
DTFglobal
(DB10-14
methodol
ogy)
DTF-
Starting a
business
DTF-
Dealing
with
constructi
on
permits
(DB16-18
methodol
ogy)
BANG Bangladesh 2014 43.32 45.7 80.52
BANG Bangladesh 2015 40.67 43.81 81.36 60.37
BANG Bangladesh 2016 40.7 41.1 81.72 61.25
BANG Bangladesh 2017 40.84 41.22 81.51 61.6
BANG Bangladesh 2018 177 40.99 41.38 80.67 61.97
BGD_Chit Bangladesh Chittagong
2014 43.45 45.84 81.11
BGD_Chit Bangladesh Chittagong
2015 40.6 43.95 81.36 62.18
BGD_Chit Bangladesh Chittagong
2016 40.62 41.02 81.72 63
BGD_Chit Bangladesh Chittagong
2017 40.76 41.14 81.51 63.34
BGD_Chit Bangladesh Chittagong
2018 40.92 41.31 80.67 63.68
BGD Bangladesh Dhaka
2004 65.8
BGD Bangladesh Dhaka
2005 67.55
BGD Bangladesh Dhaka
2006 68.41
BGD Bangladesh Dhaka
2007 69.15
BGD Bangladesh Dhaka
2008 63.87
BGD Bangladesh Dhaka
2009 68.18
BGD Bangladesh Dhaka
2010 44.52 73.57

13. Doing business , DTF
DOING Business-
DTF
Bangladesh-Ctg-Dhk
Starting a business, DTF

18. DTF of Getting Credit (considering both 14 and 15-18
methodology

19. DTF of Getting Credit (considering both 14 and 15-18
methodology

20. Comparison among 5 S.Asian Countries

21. Business Reforms in Bangladesh
Reforms inspired by Doing Business have been implemented by economies
in all regions. The following are the reforms for Bangladesh implemented
since Doing Business 2008.
• .
DB Year Reform
DB2018 Starting a Business: made more expensive by increasing cost of business
registration at Registrar of Joint Stock Companies and Firms. This reform applies
to both Chittagong and Dhaka.
DB2017 Paying Taxes: made more complicated for companies by increasing time it takes
to prepare VAT and corporate income tax returns. This reform applies to both
Chittagong and Dhaka.
DB2016 Paying Taxes: made less costly for companies by reducing the corporate income
tax rate. This reform applies to both Chittagong and Dhaka.
DB2015 Trading across Borders: made easier by introducing a fully automated,
computerized customs data management system, ASYCUDA (Automated System
for Customs Data) World. This reform applies to both Chittagong and Dhaka

22. DB year Reform
DB2014 Starting a Business: made easier by automating registration process and
reducing time required to obtain a trading license and to complete tax and
value added tax registration.
DB2013 Getting Electricity: made more difficult by requiring all customers to meet 7%
of their electricity needs through solar energy, making it necessary to install
solar panels.
Getting Credit: improved access to credit information by establishing an online
platform for sharing such information.
DB2012 Getting Electricity: made more difficult by imposing a moratorium on new
electricity connections from April 2010 to March 2011 because of an electricity
supply shortage. This moratorium has led to long delays for customers and has
increased the time to obtain an electricity connection.
DB2011 Starting a Business: made business start-up easier by eliminating the
requirement to buy adhesive stamps and further enhancing the online
registration system.
Registering Property: reduced the property transfer tax to 6.7% of the property
value.

23. DB Year Reform
DB2010 Starting a Business: made easier by launching a full- edged online business
name clearance and registration process.
Paying Taxes: made less costly for companies by reducing the corporate income
tax rate—though it also increased the capital gains tax rate.
Trading across Borders: reduced the time required to clear goods by
automating customs clearance procedures at the Chittagong port.
DB2009 Starting a Business: Bangladesh simpli ed business registration formalities,
reducing the time, cost and number of procedures
to start a business.
Registering Property: Bangladesh speeded up property registration by
increasing e ciency at the municipal deed registry o ce.
DB2008 Starting a Business: Bangladesh made starting a business more complicated by
introducing an additional process for verifying
the payment stamp duty
Paying Taxes: Bangladesh made paying taxes more costly for companies by
increasing the corporate income tax rate.

24. • The biggest fall is on Starting-a-Business indicator due
to an increase in the registration cost before starting a
business. There has been a significant improvement
regarding dealing with construction permits, but this is
not enough to offset the deterioration in starting a
business.
• “Other countries moved much faster than Bangladesh
and consequently our ranking slipped down a notch
despite slight improvement in our distance to frontier
(DTF) score”.
(Zahid Hussain, lead economist at the WB, Dhaka office)